Administrative Watch
The Ohio Supreme Court rendered a decision on February 17, 2015, in a closelywatched case on the extent to which local governments may regulate oil and gas drilling and production operations, State, ex rel. Morrison v. City of Munroe Falls, 2015-Ohio-485. At issue was whether Beck Energy Corporation, having obtained a drilling permit from the Ohio Division of Oil and Gas Resources Management, must also comply with ordinances of the City of Munroe Falls in Summit County, Ohio, that required a well driller to obtain a drilling permit from the City, post a performance bond, and go through the process of obtaining a conditional zoning certificate for the well. The certificate may issue only upon demonstration of compliance with the permitting and bonding requirements and only upon approval of City council and several City agencies. The Court, voting four to three, held that the state oil and gas regulatory program preempted the City’s permitting, bonding, and conditional use ordinances imposed upon oil and gas operations, and Beck Energy is therefore not subject to those ordinances. The City’s ordinances addressing the use of City streets, however, were not preempted, and Beck Energy is subject to those ordinances insofar as those ordinances are indiscriminately and fairly applied to oil and gas activities.