The rise of drilling in the Harrisburg area has led to proposals and regulations affecting new industries and those expanding business in Harrisburg, and now it appears this is happening in New York as well.

A news article published this week examined the effects that the drilling of the Marcellus Shale formation under Pennsylvania is having on nearby counties in New York. Some New York counties are feeling an economic boom from drill site workers who cross the border seeking amenities. Similar to what is happening in Harrisburg, local agencies and authorities in New York are pursuing legal issues surrounding these changes.

Last year, Chemung County reportedly beat out all counties in New York in sales tax growth, hotel tax revenue, and the expansion of its tax base. A boutique owner in Chemung County said sales are up 60 percent at her shop. And, two hotels in the county have reportedly remained at or near capacity for several months at a time. Workers are seemingly heading to New York for amenities because the rural drilling sites in Pennsylvania are not home to too many businesses.

In regard to the divisive issue of drilling, there are many factors that are pushing county and state authorities to study potential problems related to drilling in both New York and Pennsylvania. Business planning elements that are complicated by gas exploration include preparing for the influx of workers and support industries. Many businesses are currently developing to provide services to the gas fields and workers.

For example, in Horseheads, New York, a gas field support and technological service company is currently completing a 400,000-square-foot plant and plans to employ 400 people by next year.

With such changes and growth in these new industries, there are also critics and concerns about the long-term consequences of drilling and the environmental impacts. Because of the many issues surrounding drilling, businesses that change or develop around this industry will face evolving legal issues and regulations. It will be important for these business owners to enlist legal professionals who are staying up-to-date on changing issues involving Marcellus Shale.

Source: New York Times, "With Gas Drilling Next Door, County in New York Gets an Economic Lift," Mireya Navarro, Dec. 27, 2011