NY Home rule upheld in a Hydrofracking case.

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  • 7/28/2019 NY Home rule upheld in a Hydrofracking case.

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    during the hydraulic racturing process, that their

    community character could be altered detrimentally

    as thousands o new gas wells are drilled each year

    across the Southern Tier and other parts o the state,

    or that local roads could be harmed rom millions o

    new, heavy truck trips needed during the process.

    The Towns o Dryden and Middleeld are two suchmunicipalities. In response to concerns about the

    impacts o heavy industrial uses, including natural

    gas drilling, the two towns enacted zoning laws

    outlawing hydraulic racturing within their borders.

    In order to protect their substantial investments,

    the drilling industry and a landowner ought back,

    challenging the zoning bans in two lawsuits led in

    the State Supreme Courts in Tompkins and Otsego

    Counties.

    The courts in these cases were asked to determineor the rst time whether a municipality has the

    legal authority to use its zoning laws to prohibit

    natural gas drilling within its borders, or whether

    its constitutionally guaranteed zoning authority is

    preempted by the State Environmental Conservation

    Law (ECL). Specically, the industry and

    landowners argued that the ECL was intended to

    In the latest skirmish in the legal battle over

    whether municipalities in New York State can use

    their zoning powers to control where natural gas

    drilling occurs using hydraulic racturing methods,

    the municipalities and their authority to use their

    zoning powers to make the local decision whether

    or where to permit heavy industrial uses, such asnatural gas drilling, within their borders came out

    on top.

    Although many municipalities are embracing

    natural gas drilling and the promises o millions

    o dollars in royalties, taxes, clean energy, energy

    independence, and the other signicant economic

    benets that it brings, other municipalities have

    not been as welcoming. As o May 1 o this year, 55

    municipalities across the state have adopted zoning

    bans on natural gas drilling within their borders,

    while another 105 have imposed zoning moratoria

    in order to halt the practice or a short period o

    time.

    Many o these municipalities consider hydraulic

    racturing or natural gas to be a heavy industrial

    use that conficts with their comprehensive plans

    or is not an appropriate land use or them. They

    are also concerned that their water supplies

    could be adversely aected by the chemicals used

    By David Everett and Robert Rosborough

    Home Rule Upheld in Hydrofracking Case

    PLANNING NEWS | SPRING 2013

    Continued on page 6

    Members o the Dryden Town Board celebrate their victory. (Photo: Deborah Cipolla-Dennis)

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    Hydroracking continued rom page 3

    preempt all municipal laws related to natural gas

    drilling, including zoning laws. In contrast, the

    towns argued that the statute was not intended

    to preempt generally applicable zoning laws that

    merely regulate land uses, not the specic activity

    o gas drilling. Clearly, the stakes were high.

    Ater the lower courts rejected the industrys

    and landowners challenge, the Appellate

    Division, Third Department (one o New Yorks

    intermediate appellate courts), aced the legal

    issue or the rst time in Norse Energy Corp,

    USA v. Town o Dryden, 2013 N.Y. Slip Op.

    515227 (3d Dept May 2, 2013) and Cooperstown

    Holstein Corp. v. Town o Middleeld, 2013

    N.Y. Slip Op. 515498 (3d Dept May 2,2013). Beginning with the principle that local

    municipalities are granted signicant rights under

    the New York Constitution to determine what

    is in the best interests o their residents health,

    saety and welare, the Court emphasized that one

    o the most undamental exercises o these rights

    is to oster productive land use by enacting zoning

    laws.

    Although the Court recognized that amunicipalitys exercise o its rights cannot confict

    with State law, it nonetheless soundly rejected

    the industrys and landowners position that the

    Environmental Conservation Law preempted

    zoning laws which prohibit natural gas drilling

    within a municipalitys borders. Addressing the

    particular provision o the ECL on which the

    industry and landowner relied ECL 23-0303(2)

    the Court held that it ound nothing in the

    language, statutory scheme or legislative history

    o the statute indicating an intention to usurp the

    authority traditionally delegated to municipalities

    to establish permissible and prohibited uses

    o land within their jurisdictions. Specically,

    the Court concluded that the provision, which

    expressly preempts only those local laws relating

    to the regulation o the oil, gas and solution

    mining industries, only precludes laws that

    deal with the operations o the oil and natural

    gas industries, not zoning laws that apply to all

    properties in the municipality, regardless o the

    type o business conducted.

    Indeed, the Court stated:

    Regulation is commonly defned as an authoritative

    rule dealing with details or procedure. The zoning

    ordinance at issue, however, does not seek to regulate

    the details or procedure o the oil, gas and solution

    mining industries. Rather, it simply establishes

    permissible and prohibited uses o land within the

    Town or the purpose o regulating land generally.

    While the Towns exercise o its right to regulate land

    use through zoning will inevitably have an incidentaleect upon the oil, gas and solution mining industries,

    we conclude that zoning ordinances are not the type o

    regulatory provision that the Legislature intended to

    be preempted. (Citations omitted).

    The Court also reused to accept the industrys

    and landowners contention that local zoning bans

    on hydraulic racturing confict with the policies

    underlying the provision o the Environmental

    Conservation Law stating that the State should

    minimize waste o its natural resources. The Court

    recognized that this statement o policy does

    not equate to an intention to require oil and gas

    drilling operations to occur in each and every

    location where such resource is present, regardless

    o the land uses existing in that locale. Instead,

    as the Court acknowledged, the policies require

    a balancing o the rights o all property owners,

    including the general public, which is best

    promoted by allowing municipalities to decide

    what is in the best interests o their residents.

    In sum, in a landmark decision or the rights

    o municipalities to decide what type o land

    uses should be permitted and/or prohibited

    within their borders, the Court held that local

    municipalities have the constitutional right to

    protect their community character through the

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    Welcome, New Memb ers

    Towns

    Town o Carroll

    Town o EnfeldTown o Montezuma

    Not-or-Profts

    New York State AgriculturalMediation Program

    The New York Planning Federation thanks

    the ollowing members who recently joinedour ranks. I your municipality or rm

    would like to know more about the benets

    o NYPF membership, which includes

    reduced conerence registration rates, we

    invite you to visit our website, www.nyp.

    org, or call the oce on our toll-ree number,

    1-800-366-NYPF.

    FirmsMorris Associates Engineering

    IndividualsStephanie W. Ferradino, Esq.

    CountiesCounty o Oswego

    PLANNING NEWS | SPRING 2013

    use o zoning powers. With the Third Departments

    decision, municipalities were rightully provided

    an additional measure o comort that no specic

    business concern is entitled to a unique exemption

    rom their generally applicable zoning laws merely

    because it is part o the oil and gas industry.

    Moreover, the Third Departments decision

    provides municipalities with protection or the

    countless hours they have spent studying and

    dening their vision or their uture, regardless o

    whether they decide to allow or orbid hydraulic

    racturing within their borders. In essence, by

    conrming that municipalities have the right

    to make the local decision regarding what is in

    the best interests o their residents, the ThirdDepartment properly let that decision in the

    hands o the local ocials who know their

    communities best.

    Only one nal ght remains in this battle between

    the right o municipal home rule powers to

    dene community character through zoning and

    the natural gas industrys contention that these

    powers are usurped by State Law. This will be in

    New Yorks highest appellate court the Court

    o Appeals. We anticipate that the industry and

    landowner in Norse Energy Corp. USA v. Town o

    Dryden and Cooperstown Holstein Corp. v. Town

    o Middleeld will seek a nal review o the third

    Departments decision rom the Court o Appeals.

    I the Court accepts the case, its decision will,

    once and or all, nally determine the extent o

    home rule authority with respect to oil and

    gas drilling.

    David Everett is a Partner in the Environmental Practice Group

    o Whiteman Osterman & Hanna, LLP in Albany, NY. His

    practice includes environmental, land use and energy related

    matters. Robert Rosborough is an Associate Attorney with

    Whiteman Osterman & Hanna. The Firm represented the Town

    o Middlefeld in the recent appeal beore the Appellate Division,

    Third Department in Cooperstown Holstein Corp. v. Town o

    Middlefeld, as well as approximately 50 municipalities, the

    Association o Towns o the State o New York, the New York

    Conerence o Mayors and the New York Planning Federation

    as amici curiae. The Firm also currently represents dozens o

    municipalities across the southern tier in connection with local

    road protection programs and a variety o local issues related to

    natural gas drilling and hydraulic racturing.

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