As we approach the end of 2014, it may be useful to reflect on the impact of several important court cases decided in New York this year relating to oil and gas. While the decisions have mainly been against the industry and landowners, other cases are now dealing with the consequences of local laws, particularly in the tax area.

Mark S. Wallach, as Chapter 7 Trustee for Norse Energy Corp. USA v. Town of Dryden et al. and Cooperstown Holstein Corporation v. Town of Middlefield (23 N.Y.3d 728). On June 30, 2014 the Court of Appeals held that towns may ban oil and gas production activities within town boundaries by adoption of local zoning laws. This is based on an interpretation that the supersession clause of the state Oil, Gas and Solution Mining Law (OGSML) does not preempt municipal land use regulation powers. On October 16, 2014, the Court of Appeals denied a motion for reargument of the case (2014 N.Y. LEXIS 2858).

Originally published in The Pipeline - Winter 2014.