Good news for the oil and gas industry in Ohio came last week in the form of a Supreme Court decision invalidating local ordinances that sought to regulate oil and gas production activities, weighing in on what has recently become one of the most contentious issues in the Appalachian Basin. Specifically, the Court held that the Home Rule Amendment to Ohio's Constitution does not grant municipalities the power to enact their own oil and gas permitting schemes, as the state government holds "sole and exclusive" authority over the regulation of oil and natural gas. However, the Court's 4-3 ruling was narrowly confined to the ordinances in question, leaving open the possibility of permissible local regulation through zoning.
Bittersweet for the industry in Ohio:
The Supreme Court invalidated five local permitting ordinances that conflicted with R.C. 1509.02, but left the door open for potentially valid local regulation in the zoning context.
In State ex rel. Morrison v. Beck Energy Corp., No. 2013-0465...
