Type of Protective Language: Coverage Of Professional Consultant Fees
Type of Protective Language: Coverage Of Professional Consultant Fees
Requiring provisions in your zoning scheme to shift the cost of professional consultant fees away from the municipality and onto the applicant is an example of some ways you can use zoning to shift financial burden away from local governments (and hence, you, the taxpayer).
Why you want it:
Reviewing an application for fracking infrastructure can be time and resource intensive. Furthermore, a municipal engineer, planning commission, or reviewing body may not have the specialty expertise required to accurately analyze all the information submitted in an application. For these reasons some townships have included a requirement that a fracking company must place a certain amount of funds in an escrow account for “professional consultants.”
For Example:
Crescent Twp.’s Oil & Gas ordinance states:
(H)(2) The express standards and conditions referenced herein shall also be addressed and submitted with the applicant's application. An escrow account for the review by professional consultants shall be established by the applicant in the amount of $25,000. The escrow account shall be immediately replenished in full by the applicant if the balance of the account reaches $10,000. The escrow account shall be maintained following final approval of the application to provide for inspections in accordance with Subsection I herein.
I. Professional consultants:
1. The Township may from time to time employ a professional consultant or consultants. The function of the consultant(s) shall be to advise, counsel, represent and/or aid the Township in ensuring compliance with this section and any other applicable Township codes on such matters relating to the oil and gas development within the Township.
2. During well site development, drilling/fracking operations, and completion/reclamation activities, the Township may require the services of an on-site inspector with proven background and experience in oil and gas development whose role will include and not be limited to the following:
(a) Review of all applications for oil and gas developments.
(b) Inspection of site during key phases of development.
(c) Inspection of siteupon receipt of a complaint.
(d) Communication with appropriate Township personnel if the inspector believes the operator is violating a Township code not addressed in this section.
(e) Authority to request and receive any records, logs, and reports relating to the status or condition of the approved development necessary to establish and determine compliance with this section and the permit approval.
(f)In the event a professional consultant is employed for the purpose of advising, counseling, or representing the Township relative to ensuring compliance with this section and the terms of the permit, or relative to an operator's or owner's particular set of circumstances, case or request relating to this section, then the cost for such services of the professional consultant shall be assessed against and paid for by such operation in addition to any fees or charges assess pursuant to this section.
The Forest Hills Oil & Gas Ordinance states:
B. In the event a professional consultant is employed for the purpose of advising, counseling, or representing the Borough relative to ensuring compliance with this chapter and the terms of the conditional use approval or relative to an operator's particular set of circumstances, case, or request relating to this chapter, then the cost for such services of the professional consultant shall be assessed against and paid for by such operator in addition to any fees or charges assessed pursuant to this chapter and the Borough's Subdivision and Land Development Ordinance [Chapter 22].
C. Prior to the employment of a professional consultant, the Borough shall inform the operator of the intended scope of work and the estimated costs and expenses.
Places with that type of language:
Conclusion
It is easy to imagine how quickly costs would add up if a municipality paid for all of those processional consultants out of their - and the taxpayer’s - pocket. An escrow account, along with additional bonding and insurance requirements are great ways to make sure your municipality does not ultimately subsidize the gas company.