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More on the Denton fracking referendum

I think everyone agrees the Denton anti-fracking referendum will wind up in court if it passes. It’s just a question of how wired the courts will be for the plaintiffs.

Voters will decide whether the city will become the state’s first to ban hydraulic fracturing, or fracking – the method of oil and gas extraction that has led to a domestic energy boom. But passage of a ban would probably trigger another fracking fight: a legal clash over a city’s power to regulate for health and safety and the rights of mineral owners to develop their resources. The outcome could reshape Texas law at a time when drilling is causing tension in some of its urban areas.

“It’s going to be one of those first-time tests, and I don’t think there’s a clear answer out there in Texas law,” said Jim Bradbury, a Fort Worth-based lawyer who focuses on environmental and energy issues.

The Denton measure would not prohibit drilling outright; it would apply only to fracking, which involves blasting apart rock with millions of gallons of chemical-laced water hauled in by trucks. After gathering nearly 2,000 signatures on a petition calling for a ban on fracking, opponents forced the City Council to vote on it. Council members rejected the proposal last week, leaving the decision to voters.

Denton, a city of 121,000 with more than 270 gas wells scattered among its neighborhoods, is one of several cities that has tried to ban fracking. That includes towns in New York, whose highest court last month upheld local ordinances banning the practice. The state of Colorado has sued its cities that have banned fracking and is pushing back against ballot measures that would toughen regulations. The prospect of such a ban in Texas – a leading oil and natural gas producer — has put Denton in a bright spotlight, rankling industry leaders and the state”s Republican leadership.

“If one community after another continues to say ‘Not in my backyard,’ then before long, a tsunami of exclusion will jeopardize our freedom as a country profits as a corporate entity,” said Chris Faulkner, the chief executive of Breitling Energy in Dallas, one of many industry representatives who spoke at City Hall before the Council”s vote.

I fixed your quote for you, Chris. The debasement of the word “freedom” is one of the great travesties of the 21st century so far.

Though Texas courts have occasionally considered cities’ drilling regulations, they have yet to see a case of such size and scope, legal experts say.

Texas law says the state intends its mineral resources to be “fully and effectively exploited,” but courts have said the power is not absolute. The Railroad Commission has jurisdiction over all oil and gas wells in the state, with authority to adopt “all necessary rules for governing and regulating persons and their operations.” Local governments have the right to impose reasonable health and safety restrictions, and the Legislature has granted most Texas cities, including Denton, the power to “regulate exploration and development of mineral interests.”

The state has long regulated most aspects of drilling, including well integrity, pipeline safety, and air and water impact, while cities have typically controlled noise and authorized the location of wells or related facilities like compressor stations. Now, a key question is where fracking falls in that spectrum.

Tom Phillips, chief justice of the Texas Supreme Court from 1988 to 2004, said he would expect courts to side with the energy industry — by ruling that the ban unconstitutionally supersedes state law or that it makes gas beneath the city too difficult to tap and amounts to a taking.

Phillips, now a lawyer with the firm of Baker Botts, who was asked to review the proposal for the Texas Oil and Gas Association, said state law gave cities less stringent options for protecting health and safety at well sites, and that Denton “can’t just say no” to fracking.

Other legal experts acknowledge that state high courts tend to favor oil and gas interests, but say that Denton could make a compelling argument that a fracking ban would not wipe out all options to drill.

“To say that this is a slam dunk, it’s a taking, I think that’s painting with an overly broad brush,” said Terrence Welch, a lawyer who has helped write drilling ordinances in several Texas cities. “The property — the mineral estate isn’t left valueless. You can drill, but you just can’t frack.”

See here for the background. It’s hard to be optimistic about how the courts might rule if you’re a ban supporter, but I suppose anything is possible. And I’ll say again, if the Railroad Commission wasn’t such an utter lapdog for the industry and people in places like Denton had any reason to believe that true regulatory oversight with actual enforcement was in place, this referendum would not exist. There would be no need for it.

One more thing:

Jerry Patterson, Texas’ outgoing land commissioner, warned in a letter last week that the state would “pursue any available remedy to ensure the right to develop” those minerals.

George P. Bush, the Republican nominee in this year’s election to succeed Patterson, said he supported that stance. “We don’t need a patchwork approach to drilling regulations across the state,” he said. But John Cook, Bush’s Democratic opponent, disagreed, saying that “local communities need to have a say” in quality-of-life issues.

Know who you’re voting for this fall, people of Denton.

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One Comment

  1. byron schirmbeck says:

    I knew I heard that name for Tom Phillips before. Our buddies from ATS, the Houston red light camera company hired him in Denton too. Apparently Phillips will whore himself out for anyone. On the fracking issue in Denton he says basically the city doesn’t have the authority to make the decision on that issue. But if the city wants to put in speed cameras in violation of Texas law they have every right to do so. This appears to be the type of conflicting beliefs that arise from large stacks of money rubbing together. http://www.thenewspaper.com/news/42/4289.asp

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