In a setback for the natural gas industry, a federal judge has refused to dismiss a lawsuit brought by scores of homeowners in Susquehanna County who claim that Cabot Oil & Gas Corp. used dangerous methods to extract gas from their properties which caused both property damage and physical illnesses.

Significantly, U.S. District Judge John E. Jones III of the Middle District of Pennsylvania rejected defense arguments that the homeowners cannot pursue a claim for strict liability because the Pennsylvania courts have already held that petroleum and natural-gas related activities are not “abnormally dangerous” or “ultra-hazardous.”

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