An update on lawmaker action and other activities at the Ohio Statehouse related to horizontal

An update on lawmaker action and other activities at the Ohio Statehouse related to horizontal hydraulic fracturing:

Study criticized: On May 16, the Ohio Oil and Gas Association called into question an analysis by the Ohio Business Roundtable, a conservative think tank, on Gov. John Kasich’s proposal to increase tax rates on oil and gas produced through fracking. The trade association, which represents 2,500-plus drillers and others involved in the industry, said the study underestimated the up-front cost of developing horizontal wells and assumed larger-than-realistic production volumes from such wells, among other issues.

“We’re also very curious as to why the CEOs and business leaders that comprise Ohio’s Business Roundtable would support a tax increase on another business, particularly when they pay a commercial activity tax rate of just 26 cents per $100 in revenue, while asking one industry to pay a rate nearly 16 times higher,” the association wrote.

Parks coalition: On May 17, environmental and like-minded groups launched the Coalition to Protect Ohio’s Parks (online at www.ProtectOhiosParks.org) in an effort to dissuade state officials from allowing fracking in state parks.

“It does boggle the mind that we would go into parks and drill,” state Rep. Denise Driehaus, a Democrat from Cincinnati, said during a kickoff press conference at the Statehouse. “Of all places. ... Is nothing sacred? Do we not value anything by way of our lands in Ohio where we allow fracking to go in and adulterate that land?”

The Ohio Department of Natural Resources downplayed the concerns, saying no parks have been identified yet for drilling and rules have not yet been developed to lease state lands to drillers.

Another workshop: Ohio University, county engineers, drillers and others gathered June 4 at a Columbus-area hotel for a daylong session titled “Addressing Impacts on Transportation Infrastructure from Oil and Gas Development Activity.”

The daylong event gave attendees an opportunity to discuss the challenges local communities face in dealing with road maintenance and other infrastructure issues resulting from increased fracking activities.

Study request: Several environmental groups on June 5 asked state officials to complete additional studies of the potential impact of horizontal hydraulic fracturing on Wayne National Forest, saying that an earlier analysis did not adequately address how fracking could affect surface and groundwater, wildlife and other aspects of the natural environment.

Signed, sealed, delivered: Gov. John Kasich traveled to Akron on June 11 to sign energy legislation that included a number of provisions related to fracking. He called Senate Bill 315 “the most aggressive, clearest, fairest and strongest fracking regulations that you can find anywhere in the country.”

The law changes will require increased disclosure of fracking chemicals and water usage, water-well sampling within 1,500 feet of proposed horizontal wells and so-called “cradle-to-grave” documentation and tracking of oil and gas wells from the time they are started until they are capped.

The bill also requires increased inspections of wells and liability insurance coverage for well owners. Drillers who break the law could face up to $20,000 in daily fines.

Frack tax: Kasich used the bill signing June 11 and a subsequent press conference June 14 to reiterate his support for increasing the severance tax rates on oil and gas produced via fracking while using the proceeds for a corresponding cut to the state’s income tax rates.

“We’re going to have [an increase in the severance tax rate],” he said. “It’s going to be modernized. It’s really a matter of when, and not if, it will be done.”

Statehouse rally: Opponents of the new state law changes rallied at the Statehouse on June 18, drawing attention to the potential dangers of fracking. More than 1,000 people reportedly participated, vowing to continue in their efforts to stop fracking.

“I am dedicated to defending my community from the negative economic and health impacts related to the process of hydraulic fracturing,” Josh Harris, one of the event’s organizers, said in a released statement.