This article originally ran on Forbes.com on December 19, 2024. All rights reserved.
Daniel B. Markind is a Forbes.com energy column contributor. The views expressed in this article are not to be associated with the views of Flaster Greenberg PC.
By a 3-2 vote on November 11, the Board of Supervisors of Cecil Township in Western Pennsylvania increased the setback distance for fracking operations to 2,500 feet from protected structures like residences and businesses, and to 5,000 feet from schools and hospitals. (Source).
The vote was met by cheers from many in the audience at the meeting who have been voicing their concerns about fracking, most notably the claim that recent research shows a correlation between unconventional oil and gas drilling technologies like fracking and human health problems. While many of the studies do indicate some level of correlation between the two, the science continues to be unsettled on if, and to what extent, there truly are any adverse health impacts related to the process, and if so precisely what are those health effects.
Unlike in New York, Pennsylvania localities do not have the legal right to effectively ban fracking through the use of their local zoning laws. (Source). In addition, in many Pennsylvania communities with existing fracking operations, there remains substantial support for the process by the citizenry as a whole. Indeed, a recent poll by Muhlenberg College found that the percentage of Pennsylvanians who either strongly or somewhat support fracking has actually increased over the last ten years. (Source). However, that same study also showed that Pennsylvania residents overwhelmingly support stronger regulations for fracking than currently exist in that State.
One of those regulations concerns setback lines, meaning the amount of distance that a fracking well is allowed to be installed from certain existing structures. The balance is to both segregate a fracking operation from a public place or a private residence, while at the same time not excessively intrude upon a locality's ability to develop (and thus gain income from) its oil and natural gas reserves in Pennsylvania.
One notable problem confusing the issue of oil and gas regulation is that, despite what many people may hear or say, the science regarding the safety of fracking and its impacts on human beings continues to remain unsettled, even after all of the scientific study about the possible impacts of fracking on human life and health that has been undertaken by the scientific community. In a fascinating article that appeared last week in Science Daily, researchers at Pennsylvania State University found that, while many factors can and do contribute to low birth rate babies, higher regional incomes can actually correlate to higher birth weights among newborns. This means that, in areas where fracking has been allowed and average incomes have increased due to the prevalence of fracking royalty payments, one would expect to see higher birth rates and overall healthier babies than in other areas where fracking is banned or not allowed to the same degree. (Source).
Thus, while there is again, as noted, some evidence that fracking may have certain adverse health effects for some people, including infants, there is no question that fracking does also put money into local residents’ pockets from royalty payments, and the result of such increased economic performance tends to translate into higher birthrates. Therefore, this conclusion appears to contradict studies going back to 2016 that have previously shown a correlation between fracking operations and low birthweight babies. (Source). In fact, the more recent Penn State study was, if anything, quite specific that this is simply not the case. That study has actually found that each $1,000 increase in income at the school district level leads to a corresponding decrease in low-birthweight babies overall. (Source).
Therefore, despite fifteen years of trying and millions of dollars spent on research sponsored by those who want to see fracking banned, there are really few clear answers to the issue of what adverse health and overall environmental impacts, if any, actually relate to hydraulic fracturing operations. However, one overarching conclusion seems to be taking shape. To the extent that fracking results in a general improvement of the economic health of any areas where it occurs, it is not only a good thing economically, but it may also improve public health generally, at least in terms of increasing the birth weight of newborn babies. That being said, there remains no clear answer as to how close one must be located to a frack site to be too close, and exactly what precautions must be taken that will allow the industry still to flourish, yet protect people who are close to the actual sites from being harmed.
In the midst of the continuing contradictions and uncertainties, at least Pennsylvania is trying to find the answer but allow fracking to continue, as opposed to a State like New York, which has basically banned the technology completely. In a little more than a decade, Pennsylvania has become the second largest producer of natural gas in the country, with a massive 7.5 trillion cubic feet of natural gas produced in that State per year. It is the number one exporter of electricity to New York State. New York, on the other hand, produced less than 10 billion cubic feet in 2020, despite the fact that the Southern Tier of New York sits on the same Marcellus Shale formation as in Northeastern Pennsylvania. Having first banned fracking in 2010, New York residents need not worry about setback issues, yet they must still worry about where their power will be coming from as time marches on. The residents of the Southern Tier of New York will get no revenue from their natural gas bounty, and the residents of the New York City metropolitan region will continue to have an insecure supply of power.
Pennsylvania residents also may see some of their natural gas exported to Europe to help break Vladimir Putin’s energy hold on that continent. New York residents again will simply watch. The key issues involving energy production will take decades to sort out and will see many nasty fights and discussions, but they will take place in localities like Washington and Susquehanna County, Pennsylvania and not in Chemung or Broome County, New York. While there will be many disagreements along the way, it is likely that Pennsylvania, its residents, and the world at large will be better off in the long term because of Pennsylvania’s more balanced approach than due to New York’s ban.
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Daniel B. Markind has over 35 years of experience as an airport, real estate, energy, and corporate transactional attorney. During that time, he has represented some of the largest companies in the United States in sophisticated ...