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Decision coming on injection well foreclosure sale

ST. CLAIRSVILLE — Attorneys argued Monday whether a sheriff’s sale will go forward this month for property with an injection well site or if the sale should be delayed. Belmont County Common Pleas Judge John Vavra heard arguments and said he would likely make a decision this week on the site’s future.

The property in question is owned by Omni Energy and is located at the intersection of U.S. 40 and Ohio 331. According to court documents, Omni was ordered to pay $463,551.52 to the Falcon Drilling Company for drilling the initial well.

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

Afterward, he referred to his brief to the court, arguing that there is no local reason to stay the sheriff’s sale.

Chris Gagin, representing Omni, has argued that the matter is still being decided at the federal court level.

“We have the right to appeal that without having to go through a foreclosure sale,” he said. “The issue is if you can unring that bell.”

He argued that an appeal in his client’s favor would change circumstances.

“It makes no sense. Until we get the fundamental appeal on the contract issue itself and whether or not I was efficient in filing or not filing the answer, whether or not we otherwise defended — which obviously I contend we have — then the foreclosure again becomes this premature remedy on a judgment that is not yet on firm legal ground.”

Gagin elaborated afterward.

“It just comes down to what is a timely appeal,” he said. He added Omni is also in litigation with Franklin County to increase the maximum operating pressure necessary to use the site.

Also present was Lyle Brown of Steptoe & Johnson, representing Rice Drilling, who spoke briefly.

“There is language protecting the interest of Rice Drilling as the oil and gas lease and other interest in this property,” Brown said. “We would just ask the court whether the case proceeds to foreclosure sale or whether the case is stayed, that the protections the court has afforded Rice Drilling and its interests continue.”

Since Omni first announced plans to install an injection well several years ago, there has been local opposition including the Richland Township Trustees and the Belmont County Board of Commissioners, with many voicing concerns about businesses and residences nearby and, as well as county operations and potential heavy traffic.

A guest brought up the matter during this past Wednesday’s commissioners meeting. Commissioner J.P. Dutton said while the commissioners support the oil and gas industry, they had attempted to convince Omni to consider other locations.

“We’ve been opposed to the location of the Omni project since its inception. It’s been four years I believe. We’ve made every effort at the time – we had serious concerns about location from the very beginning. We did work through Belmont County Port Authority at the time to try to reach out to the project lead and try to express concerns,” he said. “We voiced all those opinions to leaders at the state level, because the county really had no standing in terms of making a determination of that location. We knew that it had to go through proper permitting with the Ohio Department of Transportation and the Ohio Department of Natural Resources.”

Dutton added the commissioners have been in touch with ODNR on the project’s status.

“The project hasn’t really proceeded,” Dutton said. “There’s still work that needs to be done on the project to meet the standards that the Ohio Department of Natural Resources has before they can do full injection at the site, which hasn’t occurred.”

Dutton said the commissioners have also taken action to restrict injection well sites in the future.

“We made that push with the State of Ohio, with our legislators and were able to get state law changed. That project couldn’t be cited today if it was requested, because it couldn’t meet the standard that are now in place,” he said. “It doesn’t change the Omni project, but it will change other projects across the state.”

According to Andy Chow, spokesman for the Ohio Department of Natural Resources, which regulates the site, ODNR is not involved, and plays no role, in the pending foreclosure and sale of property owned by Omni Energy Group LLC.

“The division is unable to speculate on what the property may be used for in the future. Like all oil and gas operations, the division will continue to enforce of Ohio’s rules and laws at the site, as necessary, to protect public health, safety, and the environment.”

He added brine injection did occur at the wells between November 2021 and June 2022. He said the division is involved in pending litigation with Omni Energy Group LLC. and cannot comment further.

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