Fracking bans face legal action by energy industry
January 5, 2015 | By
Doug Peeples
Communities that have passed laws banning or delaying hydraulic fracturing -- fracking -- have found oil and gas companies to be very tough opponents. In at least some instances, municipalities that passed no-fracking ordinances are being sued. Simply put, the bans are the result of fears about possible health hazards and environmental damage. Oil and gas companies, however, generally maintain that states -- not communities -- have the legal authority to establish rules for their industry. And states are feeling the heat too. New York's fracking ban, formally enacted in December 2014 by Governor Andrew Cuomo, is generally expected to face legal action from the industry, according to an article in The New York Times. New York's ban, the second statewide prohibition in the country, has been well-publicized. The New York decision followed a six-year fracking moratorium. While the concerns of both citizens and oil and gas companies are fairly easy to understand, the issue itself can be complex. For one thing, the communities and states with bans differ in how their restrictions are applied. Interior Department Secretary Sally Jewell recently spoke out on KQED public radio against the bans, commenting that the industry would have a very tough time effectively working with an array of different regulations. Fracking involves drilling into the ground and injecting a mix of water, chemicals and sand or gravel to release gas and oil from shale rock that would have been unreachable with other technologies now available. New York and other jurisdictions have cited studies outlining the health and environmental dangers of fracking, and the energy industry and others have predictably criticized and questioned the validity of the studies. Longmont is one of the Colorado communities that is facing the industry in court over its ban. While the city council there voted to defend itself, several communities gave up after considering the expense. The community of Denton, Texas, was sued in early November shortly after voting for a ban. It also should be pointed out that Vermont, which passed the first fracking ban in the country in early May 2012, seems to have backed off -- at least for one project. In October, 2014, regulators approved the first part of a gas pipeline project by Gaz Metro of Quebec and subsidiary Vermont Gas. Governor Peter Shumlin signed off on the 2012 ban, but now supports the new gas pipeline project. That controversial change of heart drew protests and questions about Shumlin's campaign finances. For more: Related article: © 2015 FierceMarkets, a division of Questex Media Group LLC. All rights reserved. http://www.fierceenergy.com/story/fracking-bans-face-legal-action-energy-industry/2015-01-05 |