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Ohio Utica Shale

North Carolina adds new provisions to drilling rules

By Bob Downing Published: June 26, 2013

From the Associated Press:

What's often considered an annual environmental housecleaning bill in the North Carolina Legislature drew fierce criticism Tuesday after lawmakers presented a sweeping new version of the bill with provisions governing hydraulic fracturing and air quality.

Environmentalists said the 43-page bill introduced in a Senate panel goes well beyond the reach of the four-page version passed by the House last month. But the Senate committee endorsed the bill unanimously on a voice vote with little debate, sending it to the full body.

Among other things, the bill would allow energy companies to withhold information about the fluids they inject into the ground to extract natural gas as a trade secret. The bill does leave an avenue for state or local governments and landowners to challenge the trade secret designation. It also leaves an exception in cases of public health emergencies.

Critics of hydraulic fracturing, known as "fracking," fear it will contaminate groundwater supplies. A 2012 law paving the way for fracking in North Carolina directed state mining and environmental officials to develop regulations. The state Mining and Energy Commission approved a rule in March requiring some disclosure of chemicals but later withdrew it under pressure from industry heavyweight Halliburton.

"This runs the Mining and Energy Commission off the road from the direction they were going," said Molly Diggins, state director of environmental group Sierra Club. "There's no issue the public cares more about with fracking than full disclosure."

The state Department of Environment and Natural Resources supports the bill and the fracking measure in particular because the law is unclear about how to treat trade secrets, opening the state to lawsuits for failing to adequately protect chemical formulas, said Assistant Secretary Mitch Gillespie.

The rules governing disclosure differ across the states that allow fracking, Gillespie said. Some are more strict while others are more lax, he said.

Department spokesman Drew Elliot pressed back against concerns that the bill compromises the Mining and Energy Commission's independence.

"They're crafting rules under the direction of the legislature," he said. "They weren't given a blank slate."

Another new provision in the bill exempts the Mining and Energy Commission and the Commission for Public Health from preparing cost estimates for proposed rules. Mary Maclean Asbill, a senior attorney with the Southern Environmental Law Center, argued that measure is designed to further fast-track drilling in the state.

Both chambers of the legislature have already passed measures this session setting a March 2015 date to begin issuing permits for fracking and offshore drilling, though the House explicitly requires legislative action for permits to take effect. The original 2012 law prohibited issuing permits before the legislature authorized them.

Asbill said a number of provisions could harm air quality. New additions to the bill relax rules for open-air burning of materials for land clearing and establishing criteria for governing air quality.

Another measure would effectively relax boundaries for waste disposal by eliminating buffers between properties, Asbill said. In all, she said she counted 10 new provisions that should draw some attention.

"We're looking at what was a simple, fairly straightforward bill ... (It is now turning into a grab-bag weakening of safeguards that will hurt North Carolina's families and businesses," she said.

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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.