Drilling on public lands in Ohio endorsed

By Marc Kovac | March 23, 2011 at 12:00a.m.

COLUMBUS

Allowing oil and gas drilling in state parks and other public lands could provide more than $300 million in lease and royalty payments, a trade group told lawmakers Tuesday.

“Of all the energy-source issues that have been recently debated at the Statehouse, the state lands leasing proposal is the only one that generates significant cash flow for the state, doesn’t require subsidies or mandates to make economic sense and actually provides an immediate benefit to taxpayers,” said Tom Stewart, executive vice president of the Ohio Oil and Gas Association. “This is about the state doing something to help itself.”

Stewart testified Tuesday before the Senate Agriculture, Environment and Natural Resources Committee on Senate Bill 108, which would create a new state board to oversee leasing of state-owned lands for oil and gas production.

Proceeds from the leases would be directed to the agency that owns the land and used to cover operating or capital costs. The board would be required to keep public records on leased lands and post public notices about potential deals.

Proponents believe well infrastructure would be minimal in size and not detrimental to the surrounding environment. And oil and gas deposits beneath state parks could be tapped at a time of rising fuel costs, they said.