How to choose a dog fence for your yard<br>Check local fencing regulations. Your community may have laws about the materials and sizes allowed for residential fences. Don't rely on a fencing company to know the regulations.
Fencing companies have regulations about the materials and sizes allowed
The context state that communities may have laws/regulations, not that fencing company would. The system likely got confused between the two. 
( z1 regulate :ARG0 ( z2 company :ARG0-of ( z3 fence ) ) :ARG1 ( z4 and :op ( z5 material ) :op ( z6 size ) :ARG1-of ( z7 allow ) ) )