Rover's First Two Days in Court

Late this afternoon, Energy Transfer Partners' (ETP) counsel and eighteen counsel for the defendant landowners were in U.S. District Court, Northern District of Ohio (Akron) seeking to resolve 55 of 224 outstanding tracts of land located in that jurisdiction. As we have discussed in prior notes, Rover initiated seven condemnation lawsuits in order to resolve outstanding easements in Ohio, Michigan, Pennsylvania, and West Virginia. The hearing today in the Northern District of Ohio involved the second condemnation hearing. Yesterday, the U.S. District Court Eastern District of Michigan (Detroit) held the first such hearing, but did not resolve the outstanding easements. Today, the Eastern District of Michigan judge issued an Order calling for further briefings and setting a status conference for March 7. 


In the Northern District of Ohio today, during the second scheduled condemnation hearing, counsel for ETP explained that of the 55 remaining tracts of land, 31 tracts involve trees that need to be felled before the March 31 deadline. However, six of the remaining 31 tracts of land involve defendants that were not in court today. After an afternoon of legal argument and nearly two hours of settlement discussions, only one tract of land settled. The judge concluded the hearing by extending the time for the landowner defendants to file answers and left open March 9 for another hearing.


Also today, Rover received permission from FERC to conduct non-mechanized tree felling in both uplands and wetlands throughout the pipeline route in which it is authorized to access the property. At this point there appear to be two key variables associated with Rover's ability to meet the March 31 deadline: (1) the rate at which Rover can fell trees by hand and (2) the speed at which Rover can resolve its condemnation proceedings so that it can access the property and fell trees. Another issue brought up again by FERC involves allegations that Rover Pipeline or its contractors have engaged in unauthorized tree felling or cutting. As such, FERC noted that it may initiate an enforcement action against Rover Pipeline.