City of DuBois Facing Lawsuit … in Texas

DUBOIS – After not hearing any more about Marcellus Shale, Sam Miles, of the DuBois Watershed Committee, posed a question to DuBois City Council members at Monday night’s meeting regarding Marcellus Shale and “what part of limbo is it in?”

John “Herm” Suplizio deferred the question to the city solicitor, Toni Cherry, who said, “I don’t believe the matter is in limbo.”  Cherry stated that it was the position of the solicitor’s office that Corrizo Marcellus LLC did not effectively execute its option.  The solicitor’s office then contacted the company and told them they considered the matter ended. 

Miles also asked council if anyone had tried to reach one of the major oil companies to which solicitor Cherry said they had received correspondence.  She stated that Corrizo did not exercise the option, which they themselves drew up.  The option is referring to the lease, which was drawn up by Carrizo and agreed upon by the city of DuBois, that stated it they wished to lease the land they would respond by written notice.  The notice would be delivered, either by certified, return receipt requested mail, or by personal service, accompanied by a check.  Cherry said they did neither of those things.

The leasing option expired on Jan. 15.  The lease would have included 2,000 acres of city-owned property, specifically giving Carrizo drilling rights on the watershed of Anderson Creek Reservoir.  The five-year lease prohibited Carrizo from using the city’s reservoir water or from drilling water wells without permission.

According to Cherry, “At this point it would not be appropriate to investigate other options.  I think it was the desire of council that this matter will be resolved and we will be participating in all of the lectures concerning the preservation of the city’s water and gaining additional knowledge.”

Carrizo Oil and Gas is an independent oil and gas exploration and production company based out of Houston, TX. 

Philip Cory, who spoke at a January 2010 DuBois City Council meeting, was contacted and confirmed that a lawsuit was being filed in Texas.  However, Cory stated, “I cannot address anything regarding the suit.”

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