Local governments want authority to address problems: The case of horizontal drilling and hydraulic fracturing in the United States

Abstract

Governments enact laws to protect their citizens. With the advent of hydraulic fracturing, local governments have asserted themselves by adopting laws delineating management practices to augment health and safety. Drilling firms inconvenienced by local laws espoused new state legislation to preempt time-consuming localized requirements. In Pennsylvania, the state legislature preempted local governance of fracturing activities in 2012, but a court subsequently ruled the state preemption provisions unconstitutional. An analysis of drilling activity before, during, and after the adoption of Pennsylvania’s preemption suggests that local governance does not curtail drilling activity. The benefits of preemption need to be balanced with the democratic ideals represented by local governance and the possible need for additional management practices to reduce negative externalities.