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Future of Belmont County injection well site in question

ST. CLAIRSVILLE — The future of an injection well site at the intersection of U.S. 40 and Ohio 331 is in question due to a lawsuit filed by the drilling company that worked on the site.

The Belmont County Sheriff’s Office confirmed that an online foreclosure sale of the property is scheduled for May 11, but a further hearing is set for May 1 with owner Omni Energy requesting a stay of sale.

According to court documents, Omni has been ordered to pay $463,551.52 to the Falcon Drilling Company.

Michael McCormick, the attorney representing Falcon Drilling, said his client was not paid for their work.

“They drilled the initial well,” he said. “(Falcon) filed a mechanic’s lien on the property, and we filed a foreclosure action of the mechanic’s lien.”

McCormick said Omni then tried to remove the case to the federal court level, but it was referred back to Belmont County Common Pleas and Falcon was awarded associated attorney’s fees.

He added that the original lien and lawsuit were filed in 2021, the removal continued into 2022 and was returned to the county, where judge John Vavra had made a default judgment in July 2022.

McCormick said the Ohio Department of Natural Resources, which monitors the well site, was not involved in the court action.

He said he believes Omni would remain responsible for the well until someone else takes it over, and ODNR would have to approve any transfer of well management.

Chris Gagin, the attorney representing Omni, submitted a motion for entry of a final appealable order and stay of the foreclosure sale. He indicated an appeal is likely.

“The completion of the foreclosure sale on May 11, 2023, is not a necessary prerequisite for the issuance of a final appealable order in this case. Indeed, it defies both logic and due process to order the sale of property to satisfy a judgment prior to the determination of the efficacy of that judgment on appeal,” he wrote in the motion.

He added that the entirety of the property is a “highly regulated property with two fully permitted Class 2 injection wells on them. Transfer of the property at a sheriff’s sale will not automatically transfer the permits to (operate) the injection wells.” He added that Omni has no intention of transferring the two permits to any buyer via sheriff’s sale.

“Thus a ‘buyer’ would acquire land that cannot be used or operated,” he wrote.

He added that Omni is engaged in litigation in Franklin County to secure a maximum allowable injection pressure sufficient to reopen the facility. He also said the valuation of the property is inaccurate and based on a $1 million appraisal prior to its sale to Omni and the company’s investment of $7 million.

There has been considerable local opposition to an injection well at this location for several years. Local residents, businesses, the Richland Township trustees and others, including Belmont County commissioners, have voiced concerns about potential health and environmental damage and the expected heavy traffic, with many pointing out the presence of residences, businesses and county agencies in the area.

The Richland Township Board of Trustees indefinitely tabled a proposed road use maintenance agreement with Omni in 2019. The late Robert E. “Bob” Murray, who owned the then-Murray Energy Corp. that is now American Consolidated Natural Resources with headquarters nearby, also filed suit in opposition to the well site.

McCormick said he hopes the injection well operations will cease.

“This site is an albatross on Belmont County’s neck,” he said. “The property needs to be foreclosed in a sheriff’s sale, and ODNR needs to order the well to be plugged.”

He elaborated.

“Murray tried to shut this down. The commissioners tried to shut this down,” he said. “Like a cat with nine lives, and we’re hoping that this lawsuit finally kills it.”

He added there has been little brine injected recently.

“My understanding is there have been no operations there since July of last year,” McCormick said.

Belmont County Commissioner J.P. Dutton said he has been in contact with ODNR regarding the state of the site.

“They were supposed to keep us apprised of things as they moved ahead,” he said, adding he believes the wells have not been in commercial use. “It’s my understanding that site has been basically … there’s been no work done at that site.”

Dutton added he believes Omni has been seeking permits to inject at higher pressures.

“That site has had a lot of difficulties since the beginning. Obviously we were opposed to the location of that site,” he said.

Neighbor Tom Rattine said there has been little activity recently.

“I have not seen any of the trucks, the ones carrying the brine. I’ve not seen them for almost a year,” Rattine said. “I think it was in June that I saw the last one. …Obviously he doesn’t have anybody in there depositing brine, and has not for quite awhile.”

ODNR was contacted, and representatives indicated they were gathering information but did not provide further updates by Friday.

The Richland Township trustees had no comment.

Gagin and Omni officials could not be reached for comment.

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