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ARTICLE · 30 SEPTEMBER 2013

Litigation Claims Caused By Fracking

Fieldfisher
Fieldfisher
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Fieldfisher

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The greater amount of fracking in the USA and its perceived litigation culture has already generated many class action and other lawsuits for compensation, but that is unlikely to be experienced here.

United KingdomEnergy and Natural Resources

The 2012 English Supreme Court decision involving Mohammed Al Fayed and his damages claim for a percentage of the profits generated by the extraction of oil from under his Surrey estate without his knowledge or permission established that any claim by a landowner for the payment of a share of production profits by an exploration & production company will be nominal, based only on the loss to the landowner of the so called "amenity value" of his land. Calculation of that (small) amount of money is based on the principle (as was the case with Mr Al Fayed where oil was extracted from under his land by diagonal drilling) that no permission has been obtained from the landowner resulting in a civil damages claim for trespass because an owner of land owns not only the surface, but also all the rights to extract minerals beneath underneath it.

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