American Oil and Gas Reporter - October 2016 - 18

IndustryDigest
Section 3215(b)," the opinion states.
PIOGA, along with the two
dissenting judges, contend the
Commonwealth Court's majority
misinterpreted the Supreme Court's
ruling and failed to consider the high
court's rationale in context.
"We believe the court erred in,
among other things, interpreting
specific words the Supreme Court used
concerning the severability of Section
3215 in a manner that ignores the
unambiguous use of these same words
elsewhere in the Robinson Township
opinion," says PIOGA Vice President
and General Counsel Kevin Moody.
"We believe the court also erred in
essentially conducting its own
severability analysis (since) the
Supreme Court had not remanded
review of the severability of these
provisions to that court."
The Commonwealth Court's
dissenting judges wrote that "to rely on
specific words in the Supreme Court's
conclusion misrepresents the court's
ruling, especially in light of the fact the

Supreme Court included a specific
discussion on Section 3215's
severability. Parsing certain words, as
the majority has done to support its
decision, becomes unnecessary when the
statute, and the Supreme Court's
rationale and ruling, are read in context."
Moody indicates PIOGA will appeal
the Commonwealth Court decision. r

TIPRO Settlement Ends
City's 'Fireman's Fee'
AUSTIN, TX.-The Texas
Independent Producers & Royalty
Owners Association announces it and
the Texas Oil & Gas Association
negotiated a successful settlement with
the city of Arlington, Tx., in early
September to end a "fireman's fee"
adopted by the city in December 2011.
TIPRO explains that the city
imposed the annual fee of $2,500 per
well to support hiring and training
additional fire personnel to handle
natural gas well issues. TIPRO and

TXOGA responded with a joint lawsuit
in 2012, in part because, under a
separate ordinance, operators already
were responsible for reimbursing the
city for the costs of responding to a gas
well incident, and because other
industries were not taxed similarly
despite graver dangers, TIPRO says.
Under the agreement, TIPRO
reports, Arlington repealed the
fireman's fee, which the associations
estimate saves operators $2.5 million. In
addition, an administrative fee on gas
well operations, which Arlington had
increased in an attempt to recoup some
of the money lost on the fireman's fee,
was negotiated down. TIPRO says this
saves industry nearly $500,000.
Importantly, TIPRO continues, the
settlement recognizes the associations'
standing in the matter. "This is
especially important to organizations
such as TIPRO because the city of
Arlington was challenging the
associations' ability to dispute
municipal regulations on behalf of its
members," the association says. r

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American Oil and Gas Reporter - October 2016

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