Oil and gas development is a big part of Oklahoma’s landscape and economy. As drilling expands, companies and residents may wonder about restrictions to those activities. Can oil and gas drilling be restricted by local zoning rules? The answer is both yes, and no. Certain aspects can be limited, while others are subject to complex requirements that local governments, companies, and individual residents play a part.
At Prado Law Offices, our Oklahoma City attorneys help you handle local zoning requirements and any restrictions to oil and gas drilling. Knowing the rules and how to handle them can make a big difference to your interests.
State Law Strongly Favors Statewide Control
Oklahoma greatly prefers state control for regulating oil and gas drilling. The Oklahoma Corporation Commission (OCC) has the primary authority over:
- Drilling
- Production
- Well spacing
- Enviornmental protections
- Operational safety
Having this controlled by the state helps create consistency across the industry statewide.
In 2015, the Oklahoma Legislature reinforced this approach by passing House Bill 2178, which expressly limits the ability of local governments to regulate oil and gas operations. Under this law, cities and counties cannot enact ordinances or zoning rules that effectively prohibit, restrict, or interfere with drilling or production activities.
This means local governments cannot:
- Ban drilling within city limits
- Impose setback requirements that make drilling impossible
- Regulate well design, casing, or completion
- Restrict hydraulic fracturing
- Control production methods or volumes
These areas fall squarely under the OCC’s jurisdiction.
What Local Governments Can Regulate
Local governments still have some power over surface-level issues, if they fall within their normal zoning powers.
These include:
- Traffic and road use
- Noise ordinances
- Light pollution
- Hours of operation for certain surface activities
- Emergency response requirements
- Local permits related to construction or site access
- Protections for public infrastructure
The regulations have to be reasonable, and can’t be a different way to simply block drilling.
The Key Legal Standard: “Reasonableness”
If a court has to look at a local zoning rule, it will see whether the regulation is reasonable. It will then consider whether it conflicts with state law. The rule may be upheld if it:
- Addresses legitimate local concerns
- Does not interfere with drilling operations
- Does not duplicate or contradict OCC regulations
- Applies uniformly to similar land uses
Can Cities Use Zoning to Keep Drilling Out of Residential Areas?
This question is one of the most commonly asked. Municipalities and homeowners may want to keep drilling out.
A city may:
- Designate industrial zones for certain surface facilities
- Require conditional-use permits for drilling sites
- Impose reasonable setbacks for noise or safety
But it may not:
- Zone all drilling into areas where no minerals exist
- Create zoning districts that make drilling impossible
- Deny permits solely because residents oppose drilling
Mineral rights are considered a protected property interest in Oklahoma. Zoning cannot be used to eliminate or substantially impair those rights.
Surface Owners vs. Mineral Owners: Who Has Priority?
Oklahoma follows the traditional rule that mineral rights are dominant over surface rights. This means mineral owners, and the operators who lease from them, have the legal right to access the surface to extract oil and gas.
Local zoning cannot override this principle. Even in areas zoned residential, operators may still drill if they comply with state regulations and reasonable local surface rules.
When Local Restrictions Become Unlawful
A local ordinance may be invalid if it:
- Conflicts with OCC regulations
- Imposes operational requirements beyond local authority
- Creates de facto drilling bans
- Interferes with mineral development
- Regulates technical aspects of drilling or production
Operators can challenge unlawful ordinances in court, and Oklahoma courts have consistently sided with state preemption.
Learn More About Local Zoning Restrictions on Oil and Gas Drilling
If you are facing local zoning issues, we are here to help. Our highly experienced oil and gas attorneys know the law and how to protect your rights.
Our team at Prado Law Offices can assist you with your drilling needs. We offer comprehensive services that best fit your requirements. Contact us today for a consultation.