Local Drilling Bans and Pending State Rules Expected to Limit Opportunities in New York
John Holko, president of Lenape Resources, recently filed suit against the New York State Department of Environmental Conservation and the town of Avon, NY (Livingston County), seeking $50 million in damages for lost business since the town enacted a drilling ban last summer. Lenape Resources has acquired drilling rights on over 100,000 acres in various towns in New York. Like many operators, Mr. Holko must determine if it is economically viable to pursue further drilling in New York in light of local drilling bans and proposed state regulations. Governor Cuomo has said that towns and cities should have a say in a decision about whether to allow drilling within their boundaries. The public comment period for the proposed regulations ends next week, but some public interest groups want additional time to comment.