Gas firm’s suit targets 3 families

A natural gas company responded to a legal attempt to block part of a planned pipeline project with a $20 million lawsuit of its own Wednesday.

Attorneys for a Chief Gathering LLC, which is seeking to install a pipeline in Dallas Township, filed a federal lawsuit seeking close to $20 million in damages from three families the company claims interfered in the project without grounds and damaged the company’s reputation in the community.

Chief, a Texas-based natural gas company, plans to build a 24-inch gathering line to transport gas extracted from wells in Susquehanna County to the Transco interstate pipeline, connecting at a point near the Dallas School District Campus in Dallas Township.

The complaint claims that a lawsuit filed Tuesday in Luzerne County Court by William and Patricia Watkins, Scott and Kelly Watkins and Jeffrey and Jo Ann Dickson, all residents of the Goodleigh Estates development in Dallas Township, has delayed the project without grounds.

The pipeline is planned to pass through Goodleigh Estates beneath the properties of Tuula D’Anca and Patrick and Patricia Dougherty. The Watkins and Dickson families filed suit against D’Anca, who they allege violated neighborhood covenants by signing a pipeline right-of-way agreement.

Chief claims the Goodleigh Estates covenants do not prohibit or specifically address underground gas pipelines and that the pipeline and its construction would not constitute a nuisance, as alleged in the Watkins/Dickson suit.

The company alleges the Dickson and Watkins families are using the covenants to delay and eventually halt the pipeline project, and Chief is seeking a declaratory judgment in that dispute.

Kristi Gittins, vice president of Public Affairs for Chief Oil & Gas, said Chief “felt (the lawsuit) was necessary to protect our interests in the pipeline project,” but could not comment further because the company will not comment on ongoing litigation.

Suit contentions

Chief contends the families have caused “torturous interference” in their contract relations with right-of-way lease holders.

“The Dickson/Watkins Defendants’ true goal is to stop Chief Gathering from installing a pipeline not just in Goodleigh Estates, but in any location in Dallas Township,” the suit alleges. “The Dickson/Watkins Defendants’ arguments about the supposed violation of restrictive covenants for Goodleigh Estates is simply a ruse to effect Dickson/Watkins Defendants’ overall scheme to thwart Chief Gathering from conducting its lawful business in Dallas Township.

“Even after Chief Gathering began contracting for an alternate route that would not go through Goodleigh Estates, the Dickson/Watkins Defendants conspired to find the location for the Alternate Route and to block it.”

Suit cites Facebook

Chief bases that assertion on posts the defendants made on the Facebook page of the Gas Drilling Awareness Coalition, a group of local citizens opposed to natural gas drilling in the Marcellus Shale as it is currently occurring.

“I understand that Darling Farms signed a lease with Chief recently and that other residents of Hildebrandt Road are now being approached by Chief,” one post allegedly made by Dickson in July reads. “Please, if anyone has heard anything, let us know so we can plan to fight and also try and figure out their revised plans!”

Gas Drilling Awareness Coalition spokesman and co-founder Tom Jiunta declined comment. Chief claims the interference of the two families has forced Chief to purchase right-of-way options and prepare permit applications for an alternate pipeline route, costing the company $683,000 to date.

If the company is forced to use the alternate route, it would cost the company an additional $1.91 million and delay construction by 8 months because of permit requirements. The project is slated to break ground within 60 days, and each month the project is delayed beyond that start date would cost the company $2.2 to $3 million, Chief claims.

Punitive damages sought

Chief further alleges that the families maliciously disparaged the company’s reputation through statements their attorney, Robert Schaub of Rosenn, Jenkins & Greenwald, made in published newspaper articles. The company is seeking punitive damages.

Chief is represented by attorneys L. Poe Leggette, Kenneth Komoroski and Emily B. Thomas of Fulbright & Jaworski LLP in Pittsburgh and by Jeffrey Malak of Chariton, Schwager & Malak, Wilkes-Barre.