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Chalk up a Victory for Property Rights
Posted Thursday, June 25, 2009 ; 06:00 AM | View Comments | Post Comment

A Logan County judge ruled last week that the state Department of Environmental Protection should grant Cabot Oil & Gas Corp. the permits it needs to develop gas wells in the 3,300-acre Chief Logan State Park.

Story by Dan Page
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A Logan County judge ruled last week that the state Department of Environmental Protection should grant Cabot Oil & Gas Corp. the permits it needs to develop gas wells in the 3,300-acre Chief Logan State Park.

Let's give a rousing cheer for Logan County Circuit Judge Roger L. Perry, whose opinion protects the Constitution and individual rights.

From this layman's perspective, this case is amazing because the facts suggest it should not have been a case at all.

Here's the background:

The Lawson family donated land in 1960 that now makes up the state park. The Lawsons, who had owned the land since the 1800s, deeded surface and coal rights to the Logan Civic Association. That group gave the property to the Conservation Commission of West Virginia, the agency that preceded the Division of Natural Resources.

Oil and gas rights weren't part of the deal. The deed that transferred the property to the state said the Lawson heirs and their lessees had a right to develop the gas and oil.

But DEP cited a state law that prohibits "the exploitation of minerals" for commercial reasons in any state park. As a result, DEP denied Cabot's permit application.

Get this: The judge noted that Cabot, which has been in business in West Virginia for more than a century, already operates gas wells in Chief Logan. And Division of Natural Resources, which manages state parks, owns mineral rights at North Bend State Park and "receives rentals and royalties" from gas wells there.

The judge said DEP erred in using a specific section of state code to deny the permits. In effect, Perry concluded the state attempted to control a mineral it does not own.

He added: "To apply it otherwise would deprive the mineral owners of their private property rights and would be blatantly unconstitutional."

DEP's attorney said the agency is deciding whether to appeal.

I cannot understand why a state agency would ignore its agreement with a family that donated land to the state and then seek to deprive that family's heirs of their property. I also wonder whether the state has cost itself money. In late 2007, natural gas prices were substantially higher than they are now. Given lower gas prices, Cabot may not be as eager to drill the Chief Logan wells.

This case was preposterous. Cabot and the Lawson heirs had to spend time and money defending their interests in circuit court.

The judge rightfully is forcing the state to live with the deal it made when it accepted the land that became Chief Logan State Park.

* * *

West Virginia coal executives may be interested in the U.S. Supreme Court's ruling this week that a gold mining company had received a valid permit from the Corps of Engineers to deposit mining waste in an Alaska lake.

The Wall Street Journal reported that the court ruled the Corps of Engineers can issue permits over the Environmental Protection Agency.

"The case came to the Supreme Court to clarify a division of power between the EPA and Army Corps of Engineers in making certain decisions regarding the Clean Water Act," the Wall Street Journal said.

Doesn't that sound similar to the ongoing tug-of-war involving federal regulatory agencies that review permits for surface coal mining in West Virginia?

One coal industry insider who understands the incredible subtleties of federal regulatory oversight suggested the Alaska mining case may be relevant to the way federal agencies and courts apply mining rules for Appalachian coal operators.

West Virginia coal interests have long sought some sense of predictability when it comes to federal agencies' handling of mining permits, especially those that involve water quality.

Is it possible the Alaska case could bring clarity to the mine permitting process?

* * *

Republican Bill Bolling recently won his party's nomination to seek a second term as Virginia's lieutenant governor.

An insurance executive, Bolling grew up in rural Boone County and graduated from the University of Charleston in 1979.

As the campaign for the Nov. 3 general election gets under way, Bolling has taken an aggressive stance against the Waxman-Markey energy bill pending before Congress. He said it would result "in higher taxes, higher unemployment and less prosperity for Virginians, while having minimal impact on our environment."

Bolling, who will face Democrat Jody Wagner in the general election, said he and GOP gubernatorial candidate Bob McConnell have created a More Energy, More Jobs plan that would create thousands of new jobs in Virginia.

"Our approach embraces the exploration and development of traditional sources of energy, such as oil, natural gas, clean coal and nuclear power; as well as alternative sources of energy, such as wind, solar and biodiesel," Bolling said in a news release.

McConnell faces state Sen. Creigh Deeds in the general election. Deeds defeated former Democratic Party Chairman Terry McAuliffe and state Delegate Brian Moran in the primary.

Dan Page is editor and publisher of The State Journal. His e-mail address is dpage@statejournal.com.

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User Comments [ post comment ]
User Comment
Dave
7/2/09 at 8:43 PM
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If we lose coal. This stae & country will have their lights turn out before you know it. I'm all for alternative energy. We first need to create it before we do away with our own form we have now.

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