The Lawsuit

UPDATE / MISE À JOUR

On an April 15, 2013 case management call, Chief Justice Wittman introduced himself to the parties, advised that he will rule on the January 18, 2013 hearing (heard by Judge Veldhuis) by reading the filed briefs and transcripts, may request a hearing if he has questions, and asked EnCana if there was any reason why the company couldn’t file their statement of defence. Encana failed to come up with a good reason, so they agreed to file it right away.

On a February 20, 2013 case management call, it was decided that Chief Justice Wittmann will choose whether to read the transcripts of the arguments heard by Justice Veldhuis on January 18 and rule, or require a re-hearing which will add significant delay and costs.

On February 8, 2013, the Harper Government promoted Justice Barbara L. Veldhuis to the Court of Appeal of Alberta; she will not rule on the defendants’ applications she heard in Court of Queen’s Bench on January 18, 2013. Court of Queen’s Bench Chief Justice Neil Wittmann volunteered to take over case management.

Ernst Statement to the Calgary Court of Queen’s Bench, read by Murray Klippenstein, January 18, 2013, heard by Justice Barbara L. Veldhuis:

I wanted to attend today’s hearing, but I decided not to attend because I feel strongly that my lawsuit should be heard in the judicial district of Drumheller as it is the courthouse with the closest connection to my dispute. This is where I live; this is where my water is; this is where coalbed methane wells were drilled; and this is where my water is contaminated. It seems to me that it is important to rural Albertans that disputes and harms that occur in our communities are also judged in our communities. Today’s application is not a minor or merely procedural step – it will determine the core issue of whether a landowner can sue the Energy Regulator for failing to protect rural Albertans from the harmful effects of the oil and gas industry.

I have a lot of respect for the court, and because of this respect, I feel it is important to make my position known. I will continue to request that all major applications be heard in Drumheller with the closest connection to my dispute.

Jessica at Drumheller Court, 10 AM, January 18, 2013. Jessica spent the day there, with a witness. Video of the hearing in Calgary Court was not available, requested or the heart of the matter.

On January 18, 2013, in Calgary Court of Queen’s Bench, Judge B. L. Veldhuis heard the defendants’ applications.

Read the original full Statement of Claim filed in Drumheller Court April 21, 2011.

In the summer of 2011, Encana suggests that the case be moved to Calgary. Klippensteins respond by explaining to all defendants why it is best to proceed in the Drumheller judicial centre, which is where the harm took place.

On April 26, 2012, the first hearing took place in Drumheller Court. Rather than hear the defendants’ arguments to strike out the case, Judge Veldhuis requests a shortened statement of claim.

Read the Fresh Statement of Claim filed in Drumheller Court on June 25, 2012.

On October 1, 2012, during a case management call heard by Justice B.L. Veldhuis, Encana, the ERCB and Alberta Environment (HMQ) request the case be moved to Calgary for the convenience of the defendants’ lawyers despite the fact that Drumheller is clearly the court with the closest connections to the lawsuit.

Alberta Environment (HMQ): “It clearly tips in favour of the defendants’ position, that it ought to be in Calgary and not in Drumheller”

Encana’s Drumheller Office

Subsequently, the request to move this particular hearing to Calgary is granted by Judge Velduis and Alberta’s Chief Justice. The Plaintiff respectfully requests that all major applications be heard in Drumheller as it is the judicial district where the harm took place.

Read the ERCB’s Brief of Argument to strike the case against them, filed in Drumheller Court December 5, 2012.

Read Alberta Environment’s (HMQ’s) Brief of Argument on the Special Application to strike paragraphs referring to the other contaminated water wells in the Rosebud community, filed in Drumheller Court on December 5, 2012.

Encana did not file application to strike the case against them or any paragraphs, and argued nothing in court.

Read the Plaintiff’s Brief in Response to the ERCB, filed in Drumheller Court on December 21, 2012.

Read the Plaintiff’s Brief in Response to Alberta Environment (HMQ), filed in Drumheller Court on December 21, 2012.

Read the ERCB’s Reply Brief and Alberta Environment’s (HMQ’s) Reply Brief, filed in Drumheller Court on January 3, 2013.

December 15, 2012 – Encana frac’ing above the Base of Groundwater Protection at Rosebud, Alberta

Landmark Alberta Fracking Lawsuit Resumes in Calgary Court

Alberta’s Key Regulator Argues It Has No Duty of Care to Landowners and Groundwater

Friday Jan. 18 at Court of Queen’s Bench
Suite 705-N, 601 – 5th St SW, Calgary T2P 5P7

10 AM to 4 PM 

Jessica Ernst, a 55-year-old oil and gas industry consultant and scientist from Rosebud, Alberta, returns to court this Friday to continue her multi-million dollar lawsuit against EnCana, one of the continent’s largest unconventional gas producers, for negligence causing water contamination.

Her landmark lawsuit also alleges that the Alberta Energy Resources Conservation Board (ERCB), the province’s energy regulator, breached her Charter Rights and failed to “exercise a reasonable standard of care, skill and diligence in taking reasonable and adequate steps to protect her well water from foreseeable contamination caused by drilling for shallow methane gas.”

Recent Court of Appeal decisions show the ERCB has a history of not upholding its own laws and even the Royal Society of Canada chided the agency for a 2007 incident in which the regulator spied on landowners and damaged “its credibility as an independent quasi-judicial board.”

In a court document filed on December 5/2012, the ERCB argues that it is exempt from liability for its actions in the Ernst case and that it owes no “duty of care” to landowners impacted by oil and gas development.

“I suspect that most Albertans will be shocked to learn that the province’s oil and gas regulator is arguing that it is totally immune from legal accountability even if there is gross negligence and incompetence,” says Murray Klippenstein, lawyer for Jessica Ernst.

Last December, an ERCB investigation found a company guilty of “accidentally” perforating above the Base of Groundwater Protection and contaminating groundwater near Grand Prairie but issued no fine saying the incident “posed an insignificant risk to drinking water resources” in a sandstone aquifer. One third of Alberta’s population is dependent on groundwater for drinking purposes.

During the last decade, EnCana intentionally perforated and fractured hundreds of gas wells above the Base of Groundwater Protection at Rosebud. The regulators continue to allow EnCana to do this.

In December 2012, only after about 171,000 energy wells were already fractured in Alberta, did the ERCB release draft regulations. Public input closes the day of this hearing on January 18, 2013.

The $33-million lawsuit effectively puts on trial the practice and regulation of hydraulic fracturing: the controversial blasting of both shallow and deep coal, tight sands, oil and shale formations with toxic chemicals, sand and water.

The poorly studied technology, which can cause earthquakes and methane leaks, has sparked moratoriums, bans, debates and regulatory investigations from New Brunswick to South Africa due to growing concerns about groundwater contamination, property devaluation, air pollution, health impacts and climate change.

Neither EnCana nor the Alberta regulators have yet filed statements of defense on incidents that took place nine years ago that resulted in scores of groundwater complaints.

EnCana, whose CEO abruptly resigned last week, has been the subject of many recent public controversies.  It remains the subject of a major US government groundwater study in Pavillion, Wyoming linking hydraulic fracturing to aquifer contamination as well as an ongoing antitrust investigation in Michigan for allegedly colluding with Chesapeake Energy to keep land prices low. A grassroots organization of mothers has also challenged the company’s aggressive fracing operations in Colorado.

EnCana received record fines from Colorado’s Oil and Gas Commission for contaminating water in 2004.

Murray Klippenstein: 1-416-937-8634
Jessica Ernst: 1-403-677-2074 (cell: 403-436-2062) email hidden; JavaScript is required

Background

A 2008 scientific review panel report for Alberta Environment warned that “preliminary data from the Rosebud, Alberta area suggest groundwater gas concentrations are being underestimated by a factor of three.”

A 2008 presentation to the International Wellbore Intergrity Network in Paris, France, co-authored by the ERCB, admitted “high pressure fracturing” increased the potential to create pathways to groundwater, and “the likelihood that gas, due to migration through shallow zones, can accumulate in buildings.”

A 2009 paper also co-authored by the ERCB on gas migration being a chronic problem reports that “high buildup pressures may potentially force gas into underground water aquifers” and that the factors affecting gas leakage and migration “can be generalized and applied to other basins and/or jurisdictions.”

November 14, 2012 – EnCana spraying drilling waste at Rosebud

Procès marquant reprend à la cour de Calgary, en Alberta 

Un régulateur clé de l’Alberta prétend qu’il n’a pas le devoir de protection envers les propriétaires terriens et l’eau souterraine 

Vendredi le 18 janvier à la Cour du Banc de la Reine
Suite 705
-N, 601 – 5e Rue SO, Calgary T2P 5P7 

10:00 heures à 16:00 heures 

Jessica Ernst, une consultante  pour l’industrie pétrolière et gazière et scientifique de Rosebud en Alberta, âgée de 55 ans, revient devant le tribunal ce vendredi pour continuer son procès de plusieurs millions de dollars contre EnCana, l’un des plus important producteurs de gaz non conventionnel du continent, à cause de négligence qui aurait causé de la contamination de l’eau.

Son procès important prétend aussi que la commission Energy Resources Conservation Board (ERCB) de l’Alberta, le régulateur de l’énergie de la province, aurait violé sa Charte de Droits et aurait manqué à son devoir “d’exercer une norme raisonnable de protection, compétences et diligence en prenant des mesures raisonnables et adéquates pour protéger son eau de puits de la contamination prévisible causée en forant à la recherche de gaz de méthane peu profond.”

Des décisions récentes de la cour d’appel démontrent que la ERCB a une historique de ne pas faire respecter ses propres lois et même la Société royale du Canada a réprimandé l’agence pour  un incident de 2007 durant lequel le régulateur a espionné sur des propriétaires terriens et nuit à “sa crédibilité en tant qu’une commission indépendante quasi judiciaire.”

Dans un document de la cour déposé le 5 décembre 2012, la ERCB soutient qu’elle est exemptée de toute responsabilité de ses actions dans la cause Ernst et n’a pas “le devoir de protection” envers les propriétaires terriens impactés par le développement pétrolier et gazier.

“Je pense que la plupart des Albertains seraient choqués d’apprendre que le régulateur de la province argumente qu’il est complètement exonéré de toute responsabilité légale même s’il y a eu extrême négligence et incompétence,” dit Murray Klippenstein, l’avocat de Jessica Ernst.

En décembre dernier, une enquête de la ERCB a déclaré une compagnie coupable d’avoir “accidentellement” perforé au-dessus de la base de protection de l’eau souterraine et avait contaminé l’eau souterraine près de  Grand Prairie mais n’a émis aucune amende, disant que l’incident “ne posait pas de risque important à la ressource d’eau potable” dans un aquifère de formation de grès. Un tiers de la population de l’Alberta dépend de l’eau souterraine pour son eau potable.

Pendant la dernière décennie, EnCana a intentionnellement perforé et fracturé des centaines de puits de gaz bien au-dessus de la bas de protection de l’eau souterraine à Rosebud. Les régulateurs continuent de permettre  Encana de le faire.

En décembre 2012, une fois qu’environ 171,000 puits énergétiques avaient déjà été fracturés en Alberta, et seulement à ce moment-là, la ERCB a émit son ébauche de règlements. La période pour recevoir les commentaires du public termine en cette journée de séance le 18 janvier 2013.

En réalité, le procès de $33 millions met en cause la pratique et les règlements encadrant la fracturation hydraulique: le dynamitage controversé  des formations de charbon, qu’elles soient à faible profondeur ou très creuses, des réservoirs étanches dans le sable ou le schiste, des formations  contenant du pétrole ou du gaz,  avec des produits chimiques toxiques, du sable et de l’eau.

La technologie, si peu étudiée, qui peut provoquer des séismes et des fuites de méthane, a déclenché des moratoires, des interdictions, des débats et des enquêtes régulatrices du Nouveau-Brunswick jusqu’en Afrique du Sud à cause des préoccupations grandissantes pour les contaminations de l’eau souterraine, les dévaluations des propriétés, la pollution de l’air, les impacts sur la santé et les changements climatiques.

Ni EnCana, ni les régulateurs de l’Alberta n’ont encore déposé des requêtes pour la défense à propos des incidents qui ont eu lieu il y a de cela 9 ans maintenant et qui sont la source de plusieurs plaintes de problèmes d’eau souterraine.

EnCana, dont le PDG a brusquement démissionné la semaine dernière, a été  au coeur de plusieurs controverses publiques récemment.  La compagnie est toujours impliquée dans une étude gouvernementale sur l’eau souterraine aux États-Unis à Pavillion, au Wyoming, qui fait des liens entre la fracturation hydraulique aux contaminations de l’aquifère ainsi qu’avec une enquête antitrust toujours en cour au Michigan pour une présumée collusion avec Chesapeake Energy afin de garder les valeurs des terres à la baisse. Un groupe populaire de mères a aussi mis au défi les opérations agressives de la compagnie au Colorado.

EnCana a reçu amendes qui ont battu des record de la Commission pétrolière et gazière du Colorado pour avoir contaminé l’eau en 2004.

Murray Klippenstein: 1-416-937-8634
Jessica Ernst: 1-403-677-2074 (cell: 403-436-2062) email hidden; JavaScript is required

Mise en contexte

Un rapport de 2008 d’un comité de révision scientifique pour Environnement Alberta prévenait que les “données préliminaires venant de Rosebud, en Alberta, laissait penser que les concentrations de gaz dans l’eau souterraine sont sous-estimées par un facteur de trois.”

Une présentation au groupe International Wellbore Intergrity Network en 2008 à Paris, France, dont la ERCB était un coauteur, admettait que la “fracturation à haute pression” augmentait le potentiel de créer des passages vers l’eau souterraine, et “la probabilité que le gaz, à cause de la migration à travers les zones peu profondes, peut s’accumuler dans les bâtiments.”

Un papier dont ERCB est aussi un co-auteur datant de 2009 sur la migration du gaz étant un problème chronique rapporte que “l’accumulation importante de la pression peut potentiellement forcer le gaz à pénétrer dans les aquifères d’eau souterraine” et que les facteurs affectant les fuites de gaz et la migration “peuvent être généralisés et s’appliquer à d’autres basins et/ou d’autres juridictions.”

November 2012 – EnCana’s drilling waste at Rosebud

Bob Curran, Public Affairs Section Leader, ERCB on GlobalTV, January 17, 2013:
“We evolve the regulations on an ongoing basis to ensure that they’re protective of groundwater and public safety
and that waste is disposed of properly as well.”

Darin Barter, ERCB spokesman, March 2007: “If they are not following our regulations, we should be involved in it.” The report also found that a variety of products — including hazardous materials and lubricants — had been discarded or abandoned “with no apparent concern for the environment.” “A lack of responsibility and supervision are evident at other sites, wherein examples of poor industry practices and lackadaisical housekeeping abound”

Oil firms ‘negligent’ at Suffield, Wildlife areas damaged by industry: report March 8, 2007

CAPP’s 2006 Best Management [Voluntary] Practices for NGC/CBM:  “Drilling fluids are transported, stored and handled in tanks. Typically, drilling fluid waste will be transported off-site for re-use and treatment/disposal…. Some additives may be caustic, toxic, or acidic.”

Alberta Landspraying While Drilling (LWD) Review Public Lands and Forests Division, Alberta Sustainable Resource Development December 2003, released three years later, only after FOIP and public pressure.

2007: Suffield Files Reveal Disturbing Story of Environmental Degradation, Non-compliance by Energy Companies and Industry Giant EnCana