The courts did not rule that a breach of contract had occurred or that the city was in any way legally liable to Bass Energy.
Bass Energy's breach of contract claim is pretty interesting. The drilling lease explicitly gives the city the unfettered right to choose drilling sites---and Bass Energy is required to accept those choices if it wants to drill. The lease also requires the city to give its prior written approval before any drilling can begin.
Bass's president admitted during his deposition that those conditions were highly unusual--they aren't part of the leases that Bass Energy customarily uses. Although Bass agreed to those conditions, it appears to be trying to get around them, by asserting a breach of contract claim.
Following the courts' rulings, Council had four choices: 1) file a legal appeal; 2) offer a cash settlement to end the litigation; 3) invest a little more time and money by going to arbitration; or 4) roll over, wave the white flag, and take orders from Bass Energy with regard to drilling in the park..
Unfortunately, residents discovered at last night's Committee of the Whole meeting, that Council (or at least a majority of Council members) have chosen option # 4: roll over, wave the white flag, and take orders from Bass Energy with regard to drilling in the park.
The majority of Council made that decision even though residents have very clearly indicated that they do not want gas wells in the park ( 73 % of Highland Heights voters approved a Charter Amendment to protect the park in November 2008).
Certainly the idea of going to arbitration using the same attorney who litigated in court would not be appealing. He gave up significant legal ground at the outset by conceding that the drilling lease was valid and binding on the city---even though, as Judge Gallagher stated in her ruling, Mayor Coleman had "no power" to do so when he signed the lease. And the attorney apparently also never argued the doctrine that those who do business with cities do so at their own risk, with the understanding that the transaction might not be legally binding if all proper procedures are not followed.
The good thing is that you start fresh in an arbitration. The city could assert all those arguments. And there are also lots of other attorneys out there. Council has the right to change attorneys at will.
But it seems that a majority of Council would rather cut and run.
So folks, it now looks like we'll all be hearing the sound of drilling rigs--- 24/7---early in the spring. A committee, hand-selected by Mayor Coleman and Council, will apparently decide where those rigs will go.
Why the rush? Bass Energy, apparently, has decided that it wants to drill before the baseball season begins. And what Bass Energy wants, a majority of Council is willing to give. I hate to think what other demands Bass Energy has made...or about the toxic fracking fluids that are going to be unleashed underground where our children play.
I acutally know a perfect place for the gas wells: Mayor Scott Coleman's backyard.
Since he's responsible for them, he should have to live next to them.
That makes perfect sense, don't you think?
That makes perfect sense, don't you think?
