New York ruling on fracking leaves shale industry weary
Now that fracking bans are left for New York cities and towns to decide, the shale industry sees the state's court ruling as a missed opportunity for energy and investment. More than 75 towns in New York already ban fracking, which may make companies hesitant to invest.
Now that fracking bans are left for New York cities and towns to decide, the shale industry sees the state's court ruling as a missed opportunity for energy and investment. More than 75 towns in New York already ban fracking, which may make companies hesitant to invest.
A recent聽court ruling聽giving cities and towns in New York State the authority to ban hydraulic fracturing (鈥渇racking鈥�) represents an enormous blow to the shale gas industry, which has been hoping to expand operations into the state for several years.
New York imposed a moratorium on fracking in 2008 so it could study the environmental impact, which聽industry opponents say聽includes adverse effects on groundwater supplies and public health. Fracking involves injecting a cocktail of water, sand, and chemicals deep underground at pressure high enough to fracture shale rock so the oil or gas within can be extracted.
Governor Andrew Cuomo has been under significant pressure from the industry to lift the moratorium, but has punted on the issue -- some say to avoid making a politically controversial decision.
New York sits atop the vast Marcellus and Utica shale formations, which hold huge volumes of shale oil and gas. But due to the moratorium, the state has not seen the expansion of drilling that nearby states like Pennsylvania and Ohio have experienced.
In the past six years, towns and cities across New York have acted on their own, passing municipal bans. One, the upstate town of Dryden, was taken to court by an energy company after it prohibited fracking.
By a 5-2 vote, the New York Court of Appeals, the state鈥檚 highest court,聽ruled聽that the actions taken by local communities to restrict fracking amounted to a 鈥渞easonable exercise鈥� of their zoning authority, particularly since high levels of drilling 鈥渨ould permanently alter and adversely affect the deliberately cultivated small-town character of their communities.鈥�
The court decision could have a deflating effect on future drilling prospects in New York, even if the statewide moratorium is lifted. Although there are plenty of counties and cities that would support fracking, the patchwork of municipal bans could make drilling on a large scale difficult. Navigating the maze of municipal zoning laws could deter investment altogether.
鈥淚t鈥檚 going to have a real chilling effect on the investment in New York,鈥� Thomas West, an attorney for Norse Energy, told聽Bloomberg News聽in an interview. 鈥淢ost of the major companies are not going to see New York as open for business if they have to develop the resource around municipalities with bans.鈥�
Brad Gill, executive director of the Independent Oil and Gas Association of New York, put in more bluntly, saying the decision is 鈥渙ne more nail in the coffin鈥� for fracking in the Empire State. (Related Article:聽5 Things You Probably Don鈥檛 Know About Fracking)
A map put together by聽FracTracker.org聽shows why drillers would hesitate before pouring millions of dollars into leases and infrastructure. Over 75 towns have banned fracking, with many more considering provisions to restrict the drilling practice.聽
鈥淭he oil and gas industry tried to bully us into backing down, but we took our fight all the way to New York鈥檚 highest court.鈥� Mary Ann Sumne, the Dryden, NY town supervisor,聽said in response to the ruling, 鈥淚 hope our victory serves as an inspiration to people in Pennsylvania, Ohio, Texas, Colorado, New Mexico, Florida, North Carolina, California and elsewhere who are also trying to do what鈥檚 right for their own communities.鈥�
Local control over fracking has cropped up as a major issue in several states across the country. The highest profile battleground is Colorado, where聽several cities have passed fracking bans, including Fort Collins, Longmont, and Lafayette. The oil and gas industry is fighting the bans in court, and trying to head off more bans in cities that have experienced an increase in drilling activity.
A movement to put the issue on a聽statewide ballot聽in November鈥檚 election is gaining steam. The industry has criticized the ballot push for being a stealth effort to enact an outright state ban on fracking while cloaking itself in the language of local sovereignty.
On June 30, the Colorado Supreme Court handed ballot organizers a victory聽with a ruling聽that says they can proceed with gathering signatures on petitions to put as many as six anti-fracking measures up for a vote. A deadline of August 4 has been set for the submission of signatures -- 86,105 of which are needed for each measure organizers want to see the public decide.
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