Mining firm sues to halt township's regulations
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Calling Blaine Township's conduct in passing prohibitive mining and drilling laws in the community "an abuse of official power which shocks the conscience," a company yesterday filed a federal lawsuit against the Washington County municipality.
Range Resources - Appalachia LLC of Mount Pleasant Township filed the 34-page complaint in U.S. District Court, claiming that two ordinances and a resolution passed by the board of township supervisors violates the company's constitutional right to do business.
Range, which has oil and natural gas rights on 2,500 acres in the township, wants to develop a deep well in the Marcellus shale region.
The well, which would be drilled between 6,000 and 7,000 feet, would cost about $4 million and take approximately 30 days to complete.
According to the lawsuit, Blaine's requirements for corporations to mine or drill are so restrictive that they are unconstitutional.
One ordinance requires that corporations go through a lengthy application process and pay a fee of $350. Range claims that during the drilling process, the company would employ between 20 and 30 subcontractors -- some which may only be used for a few days or even a few hours.
"The practical result is that subcontractors that could be within the township only a few hours are required to submit an application of numerous pages and a fee up to $350," the lawsuit said. "Further, assuming Range uses 20-30 subcontractors per site, the township could collect between $7,000 and $10,500 in fees ... where drilling may be occurring for only a few weeks."
The lawsuit also cites a resolution passed on March 17, 2008, which requires a $300 permit for use of any temporary trailer or storage structure, but does not define what those are.
The township cited Range in June for not having permits for 22 structures on a 3-acre site, but the company claims that 18 of those were water tanks.
A court action was filed against Range to enforce the citations, and Magistrate Judge Jay H. Dutton found in favor of the township in October.
The company appealed, and the case is still pending in Washington County Court of Common Pleas.
Blaine has been sued before in federal court for similar concerns.
In October, two companies, Penn Ridge Coal LLC and Allegheny Pittsburgh Coal Co., filed a lawsuit against the township raising similar allegations.
At the time, Scott Weiss, a township supervisor, said the community was simply trying to protect the rural area's assets.
"It's just part of the ongoing battle in Blaine about who actually controls the township," said Thomas Linzey, an attorney for the township.
First Published March 25, 2009 12:00 am
