New York landowners are having a hard time evicting an unwanted tenant, it seems. That's why over 200 people residing in the Marcellus Shale are suing energy companies such as Chesapeake Energy Corp. and Inflection Energy, arguing that the land leases they originally signed with the companies over 5 years ago are now expired.
Originally, land owners signed on with companies like Chesapeake thinking it was a way to earn much needed revenue from their lands. However, citing New York's moratorium and descending gas prices alongside emerging environmental and health complications, many want out. With many of the contracts past their end dates, you would think that wouldn't be such a huge problem.
Except with thousands of acres of land at stake, the oil and gas companies aren't releasing or renegotiating any new leases any time soon, invoking the act of God and natural disaster clauses of the leases.
In legal speak, it's called “force majeure.” It allows the terms of a lease to continue based on unforeseen circumstances. Usually this counts for natural disasters or “acts of God”, but in this case, the companies are arguing that the moratorium on fracking in New York state should fall under this clause and allow them to retain the land.