In another victory for state, as opposed to local, control over oil and gas activities, yesterday, the Ohio Supreme Court, in a 4-3 decision, held that local communities are not permitted to exercise their home-rule powers to regulate oil and gas activities to the extent those local regulations conflict with state law. State of Ohio ex rel. Jack Morrison Jr., Law Director for City of Munroe Falls, Ohio v. Beck Energy Corp.
Simply put, the municipal regulations at issue conflicted with a state law the provided for the general statewide regulation of "'all aspects' of the location, drilling and operation of oil and gas wells." The ruling is consistent with a number of recent decisions, including cases in Colorado and New Mexico, but it is significant because it is one of the first decisions from the highest court in a jurisdiction.
This case also is noteworthy because of its vigorous dissent, including the dissent from Justice William O'Neill, who could hardly have been more direct: "Let's be clear here. The Ohio General Assembly has created a zookeeper to feed the elephant in the living room. What the drilling industry has bought and paid for in campaign contributions they shall receive. The oil and gas industry has gotten its way, and local control of drilling-location decisions has been unceremoniously taken away from the citizens of Ohio."
The Munroe Falls case is not the first, nor will it be the last, word on the increasingly intense battles between state and local control over oil and gas operations.
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