Road-upkeep pacts mulled for drillers

Staff report

COLUMBUS

The Ohio Department of Natural Resources says it will consider requiring oil and gas shale drillers to sign road-maintenance agreements with local municipalities before applying for a drilling permit.

“It’s a priority of the governor’s, and it’s something we are currently working toward,” said Carlo LoParo, communications director at ODNR.

“The administration has taken a comprehensive look at what has been the experience of other states. We want to make sure our roads are able to withstand the traffic.”

Drillers such as Oklahoma City-based Chesapeake Energy Corp. have worked out road-maintenance agreements with individual counties but only after they had applied for and received a drilling permit from ODNR.

By requiring road- maintenance plans with permit applications, ODNR could ensure that drillers make the proper infrastructure investments.

In Mahoning County, Chesapeake spent about $1 million to improve a 1.7-mile stretch of Calla Road east of state Route 534, in an area with a handful of drilling sites.

The company’s willingness to work with county officials is the preferred method of improving infrastructure related to the drilling frenzy in Mahoning County, said Marilyn Kenner, chief deputy county engineer.

“We believe it works better for us,” she said.

Gov. John Kasich also has proposed a statewide impact fee on deep-shale wells. If enacted, it would eliminate the need for drillers to negotiate infrastructure- improvement agreements with individual counties.

The impact fee would cover infrastructure- improvement costs.