Sustaining shale
High court ruling will help industry in long run
While there will always be opposition to Marcellus Shale drilling, the industry must do a better job of cultivating public support and demonstrating that fracking can be done safely. That is why a state Supreme Court ruling Wednesday will be good for the industry in the long run.
The court struck down parts of a 2012 industry-friendly law that widened the gulf between drilling’s supporters and detractors. Struck down were provisions limiting mandatory notification of spills and leaks to public water agencies, meaning citizens who use wells for drinking water could be kept in the dark; eminent domain provisions, which could have allowed gas storage companies to use subsurface voids without the property owners’ consent; and a “gag rule,” limiting the information doctors can obtain and share about fracking chemicals.
The court also overturned a provision that allowed the Public Utility Commission to withhold impact fees from municipalities unfriendly to drillers. The court determined that the provisions amounted to a “special law” favoring the fracking industry, and special laws are prohibited under Article 3 of the Pennsylvania Constitution.
It’s easy to see why gas companies embraced this law and why critics felt besieged. The court’s ruling potentially adds cost and complications to industry operations. However, it also helps to level the playing field and reset the relationship among the companies, the property owners leasing to them, other supporters and industry critics. Transparency, especially in environmental matters, and respect for private property rights are crucial to the industry’s long-term future.
The court’s ruling also should send a message to lawmakers who approved the 2012 law. They need to do a better job of balancing the needs of industry and the concerns of opponents. They should seize the opportunity to reset the conversation about industry regulation and taxpayer expectations.
David Spigelmyer, president of the Marcellus Shale Coalition, said the 2012 law “modernized” regulation of the industry and that striking down key parts impedes development without bringing about any substantive environmental or safety gains. That is debatable. The Marcellus Shale is a tremendous boon to Pennsylvania, and operators’ investments are likely to yield dividends well into the future. The court’s ruling is not a step backward for the industry but an opportunity to press forward with a better game plan.