Hydraulic Fracturing: State Regulation and Sustainable Economic Development

Abstract

This paper explores the natural gas plays currently under way in New York and Pennsylvania. Communities in both states have protested vociferously to the unrestrained exploitation of the Marcellus Shale, yet New Yorkers have enjoyed more success than Pennsylvanians at preserving local control over economic activity.16 This paper presumes that, generally, greater flexibility afforded to communities to manage the negative externalities of drilling empowers those who must endure its side effects. For the least well off in Appalachian communities, more empowerment improves their position to benefit from the burgeoning industry. First, the paper explores some of the costs and benefits of natural gas drilling for communities. Second, it outlines the regulatory frameworks in each state and the role that courts have played in demarcating the rights of localities relative to state regulatory authority. Finally, this paper makes certain recommendations that, if implemented, would cede more power to local communities in Pennsylvania, according them the flexibility to manage the “gas rush” responsibly and derive the greatest benefit for local citizens. [From Introduction]