On October 18, 2012, the PUC issued an opinion after reviewing an ordinance enacted by South Fayette Township relating to natural gas drilling, which found the Township in violation of Act 13. Due to the violations, the Township is presently in jeopardy of missing out on potentially lucrative Marcellus Shale impact fee distributions. Neighboring Washington County is expected to receive $4.4 million in fee distributions in 2012. Because of the PUC’s opinion, South Fayette Township is poised to receive nothing.
In accordance with Section 3305 of Act 13, the PUC reviewed the South Fayette Township zoning ordinance regarding the development of oil and gas wells to determine whether it conformed with Act 13. If the ordinance failed to conform with Act 13’s municipal requirements, then South Fayette Township would be ineligible to receive any share of the impact fee that it would otherwise be entitled to. On October 18, 2012, after reviewing the ordinance, the PUC determined that the South Fayette Township ordinance violated Act 13.
Following an appeal of the PUC’s order, on October 26, 2012, Senior Judge Quigley of the Commonwealth Court issued a cease and desist order directing the PUC to permanently halt Act 13 ordinance reviews. Prior to Judge Quigley’s one-judge ruling, the Commonwealth Court, on July 26, 2012, in a divided 4-3 en banc ruling invalidated as unconstitutional several provisions of the Act. Robinson Twp. v. Commonwealth, 52 A.3d 463 (Pa. Cmwlth. 2012). Notably, the full Court did not invalidate Section 3305 of Act 13. The constitutionality issue is currently being reviewed by the Pennsylvania Supreme Court.
Judge Quigley’s cease and desist order was in response to an application made by several county and municipal governments seeking to enjoin the PUC from engaging in continued ordinance reviews. Section 3305 of the Act authorizes the PUC to review...
