Trumbull officials OK fees, rules for fracking companies

Staff report

WARREN

Trumbull County commissioners Thursday approved new fees, insurance and bonding requirements for companies conducting horizontal drilling and hydraulic fracturing in the county.

The commissioners earlier approved a standard road-use and maintenance agreement they hope all gas and oil drillers will use, then signed such an agreement with the first company planning to drill, CONSOL Energy/CNX Gas Corp. of Pittsburgh, for a well in Vienna Township.

The new fees, insurance and bonding are different from what the county and CNX approved earlier only in that the new requirements are $2 million in liability insurance instead of $1 million.

Drillers making improvements to roads, bridges and culverts before drilling operations begin will be asked to purchase a $100,000 bond for the first well or provide a bank letter of credit, said Randy Smith, county engineer.

The county can waive both of those requirements for a company drilling its second and subsequent wells, Smith said.

Companies drilling before making road, bridge and culvert improvements will be asked to buy a $350,000 bond per mile of road affected, Smith said.

CNX is expected to begin making its road improvements and begin to construct its drilling pad on Warren-Sharon Road “any day now,” Smith said.

Smith said the coordinator will be hired by the county engineer, with the engineer’s office paying half of the $89,707 annual pay, benefits and expenses and the other government bodies in the county — townships mostly — dividing up the rest equally.