An appeals court in Ohio is required to reevaluate a case involving AWMS Water Solutions, a wastewater well operator, and the Ohio Department of Natural Resources (ODNR). The Supreme Court of Ohio found that the Eleventh District Court of Appeals did not follow its instructions when reviewing AWMS's claim for compensation after one of its wells was shut down due to seismic activity concerns.
In 2014, ODNR suspended operations at one of AWMS's two wells in Weatherfield Township after earthquakes were detected near well #2. This action led to a legal dispute over whether the shutdown constituted a "taking" under the Fifth Amendment, warranting compensation for AWMS. Although the Supreme Court had previously remanded the case back to the Eleventh District with instructions to evaluate evidence on this issue, the appellate court dismissed it without following through.
AWMS had invested $5.6 million in constructing and operating these disposal wells after securing permits from ODNR in 2013. Despite this investment, operations were halted following further seismic events near well #2 in 2014.
The Supreme Court emphasized that AWMS held a property interest in its lease and directed the appeals court to assess how much compensation might be due. However, instead of conducting this analysis, the Eleventh District questioned whether AWMS even possessed a compensable property interest.
The recent ruling by the Supreme Court criticized this approach, stating that "the court of appeals failed to perform the task we ordered it to do on remand." The matter has been sent back once more for proper evaluation.
The decision highlights ongoing debates about state regulation impacts on private business operations, particularly within industries like oil and gas drilling where environmental concerns are prevalent.