- Officials Plan to Go Slow on O&G Drilling on Public Lands
Thursday, June 23, 2011
The Columbus Dispatch, Ohio
by Jim Siegel
A bill allowing oil and gas drilling in state parks and some other public lands is on its way to Gov. John Kasich for his signature, but state officials say it will be a year, and likely longer, before anyone starts putting holes in the ground.
"This will be a very deliberate, very measured process. There will be nothing happening fast," said Laura Jones, spokeswoman for the Ohio Department of Natural Resources.
Over Democratic objections, the House voted 57-38 to give final approval to House Bill 133, which would create a new five-member Oil and Gas Drilling Commission -- four gubernatorial appointees and a Natural Resources official -- to oversee drilling on state-owned land and grant leases.
While critics highlight potential hazards, supporters point to the $128million that Pennsylvania got in 2010 from leasing state lands for drilling, and the $178million collected by Michigan -- money they say is sorely needed to make a dent in the nearly $500million in backlogged maintenance projects at Ohio's state parks.
"Nobody ever comes up with another solution for closing the half-billion dollar shortfall the state has on taking care of their properties," said Tom Stewart, executive director of the Ohio Oil and Gas Association. "The park experience is degrading before our very eyes."
Stewart said it "would be wonderful if, within a year's time, we have some discoveries on state-owned property." Jones called that a very optimistic time frame.
No one is certain when the money will start flowing to the state.
Rep. John Adams, R-Sidney, the sponsor of the bill, said that while rules are being written, Natural Resources officials can immediately begin researching titles on land parcels to determine whether there are restrictions.
"The bill has been designed to allow the process to get moving as quickly as possible as the rules are promulgated," Adams said.
While the commission would have broad authority to lease public land where the state fully owns the mineral rights, Jones said much of the land under control of the Department of Natural Resources has some level of restriction that must be worked out. For example, she said, federal funds used to purchase and operate wildlife areas must be taken into account.
"We as the landholder will have an awful lot of say on what lands would not be available, or what restrictions would be on those lands," Jones said.
Eventually, drilling companies will nominate parcels of land for drilling. But Stewart expects that during the first year, the state will do the nominating.
The Ohio Environmental Council, among others, has expressed concern that the bill would give the commission, rather than state agencies that own the land, too much authority to grant drilling leases.
Sen. Teresa Fedor, D-Toledo, said drilling on public lands "remains unnecessary, unwanted and unsafe," echoing concerns about how drilling could impact the natural beauty of parks and about the use of a hydraulic fracturing technique on deep shale that could harm groundwater supplies.
Stewart said there is no evidence of "a direct correlation between groundwater contamination and the act of hydraulic fracturing."
As Ohio drillers plan to ramp up production, millions of barrels of toxic wastewater from natural-gas wells in Pennsylvania are coming into Ohio despite efforts by officials here to keep its injection wells open for Ohio brine.
The brine is a byproduct of hydraulic fracturing, or "fracking." Pennsylvania sewage plants dumped so much of it that it became a threat to drinking water, and state officials ordered plants to stop dumping brine.
Stewart said the Pennsylvania imports are a definite concern for Ohio-based drillers. "My members need someplace to properly dispose of their water."
In other legislative business:
- The House passed House Bill 25, which increases penalties for repeated convictions of cruelty to animals. Rep. Courtney Combs, R-Hamilton, said the current penalties are "no more than a slap on the wrist."
- The House voted 84-12 for House Bill 116, which would require schools to educate students and parents about their anti-bullying policies.
- The Senate moved to abolish or consolidate 85 state boards and commissions through Senate Bill 171, which adopts recommendations of the bipartisan Sunset Review Committee.
Copyright (c) 2011, The Columbus Dispatch, Ohio
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