Texas-based Range Resources (RRC:NYSE) recently challenged a drilling ordinance in a small Pennsylvania town in an attempt to get better access to the Marcellus shale.

The company argues that the ordinance passed by South Fayette banning drilling in buffer zones around schools, hospitals and certain other areas does not allow it to pursue its business interests. In addition, the ordinance requires operators to obtain permits for each well, which reportedly cost $5,000.

Range Resources said that the ordinance is in violation of a provision of Pennsylvania's Municipalities Planning Code requiring municipalities to "allow for reasonable development of minerals," reports the Pittsburgh Post-Gazette.

The company argues in its appeal filed with the town's zoning hearing board that the ordinances leave "no place within the township where oil and gas development can occur."

A number of municipalities located on top of the Marcellus shale have attempted to enact bans to prevent companies from attempting to extract natural gas. A West Virginia judge recently struck down the city of Morgantown's ban on the practice.

According to Raymond James, the company believes that its work in the Marcellus area will be able to fund itself by the end of 2013.

Investment dealer Dundee Securities reaffirmed its BUY rating for Tamarack Valley Energy (TVE:TSX) as well as its target share price of C$0.70. The Canada-based oil and gas company's stock closed at C$0.43 on August 15. A stronger-than-expected balance sheet for the second quarter and also a drilling program that should ramp up production in the second half of the year contributed to Dundee's valuation of Tamarack's stock.

Cash flow for Q2 was C$2.2 million, which was almost double Dundee's prediction of C$1.2 million. This uptick in cash flow was created by better-than-expected crude production and a C$310,000 royalty credit. Production during Q2 was 869 barrels of oil equivalent per day, which was a 10 percent increase over Q1. This boost in production was attributed to a 93 percent increase in the production of liquids.

The investment dealer values Tamarack's stock higher than its peers. This premium to the valuation of competitors comes from predictions of significantly increased production during the second half of the year. During the last 52 weeks, the oil and gas company's stock reached a low point of C$0.22 and a high point of C$0.65.  

A circuit court judge recently overturned the ban on Marcellus shale gas drilling in Morgantown, West Virginia.

The Associated Press reports that Morgantown – which is the home of West Virginia University – enacted an ordinance in June that prohibited hydraulic fracturing, commonly known as fracking, from being conducted within one mile of the city limits.

The ordinance affected two fracking sites in Morgantown Industrial Park operated by Northeast Natural Energy, which filed the lawsuit, according to the State Journal.

Monongalia County Judge Susan Tucker ruled that restrictions regarding drilling are the authority of the West Virginia Department of Environmental Protection, and not the Morgantown City Council, which attempted to ban the practice because it had fears about the city's water supply.

A Duke University study found that the process of fracking does not pose any risks to water supplies, rather the risk occurs when there is poor well construction during drilling, reports the New York Times.

West Virginia MetroNews reports that the city council will meet on August 16 to discuss the ruling, including whether or not an appeal should be filed.