Wastewater-Induced Earthquakes May Cause Rising Insurance Rates, But Are Costs Recoverable? Tenth Circuit Says No

The Tenth Circuit Court of Appeals recently dismissed a putative class action (i.e., an uncertified class), alleging that fracking operations by various natural gas companies in Oklahoma increased the risk of earthquakes in the state, causing property insurance premiums to rise for local residents.

In Meier v. Chesapeake Operating LLC, et. al., residents of Oklahoma claimed that wastewater disposal wells drilled into the Arbuckle formation, a 7,000-foot-deep sedimentary rock layer below the surface, have caused thousands of manmade earthquakes across the state since 2008.  …

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