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Senate Energy Policy Issues Committee Approves Proposed "Fracking" Legislation

April 19, 2012

The proposed legislation legalizes hydraulic fracturing, but imposes a moratorium through July 1, 2014, in order to establish a regulatory framework, and governance body ("Oil and Gas Board"). Local government authority to impose ordinances which prohibit or have the effect of prohibiting oil and gas exploration and development activities is preempted. Local zoning controls are presumed to be valid, unless they "prohibit or have the effect of prohibiting" fracking. Local governments are authorized to impose one-time impact fees of up to $30,000 per wellhead.

Posted on April 19, 2012 by Paul Meyer