Earlier today, the Pennsylvania Commonwealth Court issued a unanimous decision in the much-anticipated case of Gorsline v. Board of Supervisors of Fairfield Township, reversing the decision of the Court of Common Pleas of Lycoming County. In reversing the lower court, the Commonwealth Court upheld Fairfield Township’s decision to grant conditional use approval to Inflection Energy, LLC for an unconventional well pad. This case is significant for several reasons. First, the Commonwealth Court made it clear that it is insufficient for objectors to sustain their burden by merely stating concerns or asking questions of the developer’s expert witnesses. Instead, they must present evidence to substantiate those concerns. Second, the Commonwealth Court criticized the lower court for making its own findings of fact when it did not take additional evidence and where the municipality made its own findings of fact. Third, the Commonwealth Court recognized that the lower court erred by focusing on truck deliveries during the construction phase of the project because zoning regulates the use of land and not the particulars of development and construction. Finally, the objectors attempted to raise issues based on the Pennsylvania Supreme Court’s Robinson Township decision, arguing that natural gas development is an industrial use that is per se incompatible with a residential/agricultural zoning district and that approval of the natural gas development violated the Environmental Rights Amendment of the Pennsylvania Constitution. The Commonwealth Court summarily rejected these two arguments and noted that, because the record supported the township’s determination that the proposed well pad was compatible with the permitted uses in the residential/agricultural district and the objectors presented no evidence of harm, the objectors’ claims were unsupported by the accepted evidence of record. This final point is especially significant because many anti-industry opponents cite both the lower court’s opinion and the Delaware Riverkeeper Network’s amicus brief from this case in other zoning proceedings as support for the now rejected view that oil and gas development must only occur in industrial zoning districts.
During his March 3, 2015 budget address, Pennsylvania Governor Tom Wolf again proposed higher energy taxes. In response, the Marcellus Shale Coalition issued a statement, reiterating the vast benefits that have been realized by the Commonwealth as a result of natural gas development, including job creation and tax revenue. According to MSC President Dave Spigelmyer, the proposed budget “would undercut Pennsylvania’s positioning in the global fight to attract capital investments and stunt this economic momentum rather than fully capitalize on it.” Spigelmyer also stressed the concerns shared by small businesses, labor unions and local governments alike that higher energy taxes could result in job losses and revenue losses. In light of the fact that Pennsylvania voters overwhelmingly support policies that lead to the creation of affordable energy supplies and local jobs, the MSC stated that it will continue to collaborate with Governor Wolf and the General Assembly to help advance policies that seek to grow and expand opportunity.
Natural Gas Intelligence reports that the Marcellus Shale Coalition has awarded Pennsylvania-based consulting firm Environmental Standards Inc. with a contract to manage a study that will analyze the presence of methane in groundwater samples. Specifically, the study will seek to establish a consensus standard for analyzing light gases in groundwater, both before and after the drilling process. Although there are several published procedures for analyzing methane in water sources, none are widely adopted, nor has the U.S. Environmental Protection Agency published any particular one. The goal is to establish uniform standards that will provide more reliable test results. The study will examine the practices of the Pennsylvania Department of Environmental Protection’s laboratory, as well as 10-15 other private laboratories across the country. The final report is expected by the end of the first quarter of 2015.
The Marcellus Shale Coalition has announced the newly elected officers of its 2014 Executive Board. K. Scott Roy, Range Resources Corporation’s Vice President of Government and Regulatory Affairs, was elected as the chairman. Heather Lamparter (Vice President, Legal, Exco Resources (PA), LLC), Mark Hager (Senior Government Affairs Representative, Williams) and Gary Smith (Vice President and General Manager, EOG Resources) were elected as vice chair, treasurer and secretary, respectively.