>>>Localities are forced to deal with much of the problems associated with fracking, while states and the federal government rake in all the revenues<<<

From an Article by Frank Shafroth, Governing.com (Public Money), September 10, 2014

The shale gas market is an economic boon for the 30-odd states that permit fracking. The severance tax states impose on the process adds up. In 2010, it generated more than $11 billion. The flow of that revenue goes straight into state and federal piggy banks, as does increased corporate income tax revenue from energy companies profiting from fracking.

Localities, however, enjoy no such benefits. Instead, they get stuck with all the fracking problems: noise from blasting, storage of toxic chemicals, degraded water sources and heavy truck traffic, as well as the rising costs of cleaning up the detritus fracking leaves behind. North Dakota counties affected by hydraulic fracturing have reported to the state Department of Mineral Resources’ Oil and Gas Division that traffic, air pollution, jobsite and highway accidents, sexual assaults, bar fights, prostitution and drunk driving have all increased.

In addition, fracking, in many cases, negatively impacts property values, which in turn depresses property tax revenue. For property owners who own the rights to the oil and gas on their land, the effects of drilling can be offset by royalty payments. But localities have no revenue offset if properties lose value.

The financial risks posed by fracking have become significant enough to capture the attention of mortgage bankers and insurers, who appear to be adopting guidelines that forbid mortgage loans or insurance coverage on properties affected by drilling. According to a 2013 survey by business researchers at the University of Denver, persons bidding on homes near fracking locations reduced their offers by as much as 25 percent.

In North Texas, the Wise County Central Appraisal Review Board reduced the appraised value of a family’s home and 10-acre ranchette more than 70 percent. The board agreed to the extraordinary reduction as a result of numerous environmental problems related to fracking just one year after the first drilling rig went up on the property.

While a number of states continue to push to expand fracking, localities have some leverage. They control land use policies, zoning and property rights. Ironically, one of the earliest local-state challenges came from Exxon’s CEO. As a homeowner in an upscale community in Bartonville, Texas, the CEO found himself at odds with a local fracking operation.

He filed suit to block construction of a water tower near his home — a tower that would increase fracking in the area — alleging it would create “a noise nuisance and traffic hazards.”

The dispute in Texas is only the tip of the derrick, as it were. In New York, the state’s highest court upheld the right of two of the Empire State’s local governments to establish zoning laws that keep out fracking companies. The court’s 5-2 decision was based solely on reaffirming the towns’ rights to make their own zoning choices. In its ruling, the majority noted that the towns had engaged in a “reasonable exercise” of their zoning authority, that they had “studied the issue and acted within their home-rule powers in determining that gas drilling would permanently alter and adversely affect the deliberately cultivated small-town character of their communities.”

In Colorado, where the cities of Boulder, Broomfield, Fort Collins and Lafayette have adopted antifracking measures, Gov. John Hickenlooper recently announced the appointment of a task force to develop recommendations that would reduce land use conflicts when oil and gas facilities are located near homes, schools, businesses and recreation areas. He would also ask the Colorado Oil & Gas Conservation Commission to dismiss litigation challenging the city of Longmont’s ban on hydraulic fracturing and call on all parties to withdraw ballot initiatives on the topic. The task force will make recommendations to the legislature and issue majority and minority opinions.

As reported by the Wheeling Intelligencer, the Ohio County Board of Education is objecting to Chesapeake Energy’s proposed natural gas drilling site near Wheeling Park High School. In a letter to the WV Department of Environmental Protection, concern is about evacuation routes and increased truck traffic. The well site is less than 1,000 feet from the high school’s track and about a half-mile from the J.B. Chambers Performing Arts Center.

“Should an explosion, spill, trucking accident, fire or other emergency at the proposed well site occur, the close proximity creates a clear and present danger for the safety of approximately 2,000 individuals who either attend the school or work there daily,” states the letter, which was signed by all board members and Superintendent George Krelis. Krelis during Wednesday’s meeting noted the board of education previously decided against leasing any of the school system’s property to drilling companies.

Ohio County Schools Deputy Superintendent Dianna Vargo said Chesapeake Energy wants to meet with school system officials and other stakeholders to discuss the proposed well site. Krelis said the school system will express their opposition during that meeting, which has not yet been scheduled.

The land on which the well would be drilled is owned by the Parks System Trust Fund of Wheeling and the lease is signed by members of the Wheeling Park Commission. Park Commission President and Chief Executive Officer J. Douglas Dalby said Chesapeake Energy is following the proper procedures in preparing to drill the wells on the trust fund’s property. “We believe in safety first. If there are safety issues that need to be addressed, Chesapeake needs to address them,” Dalby said. “I believe the issue of truck traffic is a legitimate concern that the school has raised.”

Stacey Brodak of Chesapeake Energy said the company has drilled many wells safely in urban settings, including some near Bethany College and West Liberty University and is willing to address the concerns of Ohio County Schools officials. However, substantial concern also exists in Brooke County over heavy truck traffic and pollution from drilling and fracking.  The “March at Bethany College” is set for this Saturday, May 5^th.