On January 25, 2023, the Third Circuit Court of Appeals conducted oral argument in an appeal from dismissal of Epsilon Energy USA, Inc.’s declaratory judgment action against Chesapeake Appalachia based upon a series of joint operating agreements to which Chesapeake Appalachia, Epsilon, and multiple, unnamed entities are party.  Although Chesapeake Appalachia prevailed in the Middle District of Pennsylvania, Chesapeake Appalachia cross-appealed an important question of subject matter jurisdiction which arose because Epsilon failed to join all necessary and indispensable parties in an effort to invoke diversity jurisdiction.

One of the absent JOA Party shared Texas citizenship with Epsilon.  The result, pursuant to Fed. R. Civ. P. 19 and as argued by Chesapeake Appalachia on appeal, is that the District Court lacked subject matter jurisdiction and dismissal was required.  Chesapeake Appalachia is represented by Myers, Brier & Kelly Energy Team members Dan Brier, Jack Dempsey, Nick Kravitz and Rich Armezzani.  Jack Dempsey presented the oral argument for Chesapeake Appalachia.  [Third Circuit Oral Argument – January 25, 2023].  The Third Circuit has the matter under advisement.