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Sunday, August 3, 2014

property rights related to oil, gas and mineral extraction

The growing efforts by state and local governments to stop hydraulic fracturing, or "fracking," to extract natural gas could end up in the Supreme Court. These efforts may unconstitutionally limit property owners' ability to profit from their mineral rights.
More than 170 New York towns and cities have used zoning laws to restrict or prohibit fracking, and in June New York's Supreme Court turned back a challenge to this practice. Pennsylvania allows local municipalities to restrict fracking. Colorado and California are struggling with the issue.
Even in pro-energy Texas, the relatively small town of Denton, about 30 miles north of Dallas, has a fracking moratorium while the city considers whether to impose a permanent ban. At a recent contentious Denton city council meeting in which 500 people attended, the council moved to let voters decide in November.
Nevertheless, landowners and drillers are threatening to sue Denton if a ban is implemented. They may have a case.