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Ohio Utica Shale

Eco-group wants Ohio Legislature to tighten rules on drilling

By Bob Downing Published: September 9, 2013

The Ohio Environmental Council on Monday called for sweeping changes to upgrade Ohio’s laws on drilling natural gas and oil wells.

The statewide eco-group said it was pushing 32 different provisions, contending that Ohioans are not adequately protected from the risks of horizontal drilling and hydrological fracturing or fracking.

The proposal is designed to improve environmental safeguards, boost enforcement and strengthen property owner protections.

The eco-group is seeking public comment and even drilling industry comment on what it is calling the Safeguarding Appalachian Families with Environmental Regulation of Gas and Shale (the SAFER GAS) Act.

Earlier efforts to tighten Ohio’s rules didn’t go far enough and gaps are found in existing rules, said spokesman Trent Dougherty.

Key provisions of the proposed bill are:

•Imposing a 5 percent tax rate for the Ohio severance tax on oil and gas with all of that money going to increased drilling inspection and enforcement, capping abandoned orphan wells and addressing local impacts.

•Adopting stricter air pollution controls on all aspects of drilling and requiring the capture of escaping methane.

•Giving local landowners the right to challenge the terms and conditions state regulators often place on drilling.

That gives drillers an unfair advantage that no other industry has under Ohio law, Dougherty said. He called that proposal the most important in the package.

The OEC proposal drew a chilly response from the Ohio drilling industry.

"It’s a complete rehash of issues apparently not resolved to their satisfaction or issues they would like to see brought up…in a laundry list that rational minds do not want to approve," said Tom Stewart, executive vice president of the Ohio Oil & Gas Association, an industry group based in Granville.

The eco-group’s goal appears to be "to frustrate oil and gas development, not to protect public health and safety," he said.

Allowing neighbors to have a voice in permitting wells would be a move toward "mob rule" and should not be permitted, Stewart said.

His group remains strongly opposed to increasing Ohio’s severance tax and "nothing the OEC is going to say is likely to change our minds on that," he said.

Added ODNR spokesman Mark Bruce: "Through bipartisan legislative action and the rule-making process, Ohio’s oil and gas laws have been updated multiple times and are now regarded as some of the most comprehensive in the nation. ODNR and Ohio EPA continuously review the state’s regulatory laws and welcome input as part of that process."

In an unusual move, the eco-group released its proposal even though there is no bill and no legislative sponsor, said spokesman Jack Shaner in a teleconference.

"The oil and gas industry is poised to cash in the claims it’s staked in eastern Ohio," said Dougherty, the OEC staff attorney.

"Meanwhile, Ohio law continues to leave its citizens, landowners and air and water vulnerable to government inattention, industry exploitation and environmental contamination. The law should protect the well-being of ordinary citizens, first, and the oil and gas industry and its investors, second," he said in a statement.

"Health and safety is job one, and we need to get those protections right," he said.

Other provisions contained within what the OEC calls its megabill include:

•Giving the Ohio Department of Natural Resources oversight to deal with all aspects of fracking wastewater.

•Establishing safer definitions of radioactive waste from drilling and improved policies for dealing with that waste.

•Allowing local communities to propose to the Ohio Department of Natural Resources environmentally sensitive areas that should not be drilled.

•Increasing state penalties to assure that violators do not benefit financially by breaking the law.

•Imposing a "Scarlet Letter" provision that would ban flagrant, repeat or criminal offenders from continuing to operate in Ohio.

•Increasing state inspections and inspectors.

•Increasing public participation in the permitting process and increasing the right to appeal.

•Revising the Ohio Oil and Gas Commission.

•Allowing citizen-initiated rule-making to allow future rule changes.

•Increasing regulation and oversight of landmen who arrange lease between drillers and landowners.

•Allowing those who signed drilling leases to audit driller’s financial records to assure proper payment.

The OEC proposal does not address injection wells for drilling wastes or the question of local control. The Ohio Legislature is looking at injection wells that have been blamed for earthquakes in Youngstown. The Ohio Supreme Court is dealing with a case from Munroe Falls on whether local communities have any say in drilling. At present, all control rests with the state. The Ohio Environmental Council released its proposal one day before the one-year anniversary of law changes that Ohio Gov. John Kasich supported and that lawmakers passed last year: Senate Bill 315.

State regulators have yet to propose rule changes to implement the 2012 law changes.

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Utica and Marcellus shale web sites

Ohio Department of Natural Resources' Division of Oil and Gas Resources Management State agency Web site.

ODNR Division of Oil and Gas Resources Management. State drilling permits. List is updated weekly.

ODNR Division of Geological Survey.

Ohio Environmental Protection Agency.

Ohio State University Extension.

Ohio Farm Bureau.

Ohio Oil and Gas Association, a Granville-based group that represents 1,500 Ohio energy-related companies.

Ohio Oil & Gas Energy Education Program.

Energy In Depth, a trade group.

Marcellus and Utica Shale Resource Center by Ohio law firm Bricker & Eckler.

Utica Shale, a compilation of Utica shale activities.

Landman Report Card, a site that looks at companies involved in gas and oil leases.FracFocus, a compilation of chemicals used in fracking individual wells as reported voluntarily by some drillers.

Chesapeake Energy Corp,the Oklahoma-based firm is the No. 1 driller in Ohio.

Rig Count Interactive Map by Baker Hughes, an energy services company.

Shale Sheet Fracking, a Youngstown Vindicator blog.

National Geographic's The Great Shale Rush.

The Ohio Environmental Council, a statewide eco-group based in Columbus.

Buckeye Forest Council.

Earthjustice, a national eco-group.

Stop Fracking Ohio.

People's Oil and Gas Collaborative-Ohio, a grass-roots group in Northeast Ohio.

Concerned Citizens of Medina County, a grass-roots group.

No Frack Ohio, a Columbus-based grass-roots group.

Fracking: Gas Drilling's Environmental Threat by ProPublica, an online journalism site.

Penn State Marcellus Center.

Pipeline, blog from Pittsburgh Post-Gazette on Marcellus shale drilling.

Allegheny Front, environmental public radio for Western Pennsylvania.