National Fuel Gas Supply Corp. has dropped its lawsuit against the Town of Colden and its anti-hydraulic fracturing moratorium.

The company challenged the town’s six-month ban on hydraulic fracturing because it also prohibits other types of horizontal drilling, a practice the company often uses to access its natural gas storage field in Colden.

Since then, the town has approved a new moratorium that prohibits shale drilling but allows for the type of drilling National Fuel uses in Colden.

The Colden storage field has been in existence for decades, and National Fuel has the necessary state and federal permits to drill a new horizontal well there.