Ohio Senate OKs package of fracking rules

May 16, 2012 at 12:00a.m.

COLUMBUS

Oil and gas drillers would be required to disclose to the state the chemicals, water sources and volumes used when fracking, under legislation approved by the Ohio Senate on Tuesday.

Substitute Senate Bill 315, offered initially by Gov. John Kasich as part of his mid-biennium budget and policy review and amended by senators after weeks of hearings, passed on a vote of 27-6 and heads to the Ohio House for further consideration.

Proponents say the proposed package of law changes will enhance the state’s existing drilling requirements, protect public safety and the environment and establish Ohio’s oil and gas regulations as “one of the most if not the most stringent” in the country.

“We have all heard the statistics about this new industry on the verge of explosion here in Ohio,” said Sen. Shannon Jones, a Republican from Springboro. “Clearly, the time to act is now.”

The bill includes numerous provisions related to the state’s energy laws, with language concerning conservation, alternative-fuel programming and wastewater treatment.

But much of the floor debate in the Senate on Tuesday focused on portions of the bill related to horizontal hydraulic fracturing, or fracking, an emerging means of extracting oil and gas by pumping large volumes of water, chemicals and sand into deep underground shale formations.

Jones, citing statistics compiled by the Ohio Department of Natural Resources, said 72 such horizontal wells have been drilled to date, with 2,250 expected in the next three years. Various studies estimate billions of dollars in economic impact and tens of thousands of jobs created as a result of fracking.

Senate President Tom Niehaus, a Republican from New Richmond said, “If done right, we have the ability to build a strong foundation of growth for decades to come.”

Substitute SB 315 would require additional documentation from oil and gas companies applying for drilling permits, including copies of any agreements with local governments related to road maintenance; identification of water sources and withdrawals at well sites; and water-well sampling within 1,500 feet of proposed horizontal wells.

Additionally, it would require companies to report the total volume and trade names of chemicals used in fracking, with chemical information posted online for public review.

Supporters said that “cradle-to-grave” provision is a first for the country, with a focus on the part of the drilling process that presents the biggest potential negative impact on the groundwater.

“We’re breaking new ground when it comes to disclosure,” said Sen. Frank LaRose, a Republican from Akron. “Ohio can proudly say, with the passage of SB 315, that we are leading the nation in regard to making sure that Ohioans know what it is chemical-wise that’s being used in the oil- and-gas process.”

Under the legislation, shipments of brine and other waste fluids would have to be disclosed prior to injection into disposal wells, with additional requirements for brine transporters.

Sub. SB 315 also would require increased inspections of wells and liability-insurance coverage for well owners.

The Ohio Department of Taxation would be required to disclose severance-tax payments to the Ohio Department of Natural Resources, to ensure companies are making required payments.

And the bill would require the Ohio Department of Job and Family Services’ Office of Workforce Development to prepare an annual report on the economic impact of horizontal hydraulic fracturing.

All six “no” votes on the legislation came from Democrats, who voiced concern that public disclosures and other provisions didn’t go far enough.

Drillers who fail to meet the bill’s requirements could face criminal and civil penalties.

Sen. Joe Schiavoni of Canfield, D-33rd, offered several amendments, calling for public-comment periods and notice for fracking-well permits and funding for geological surveys. All failed.

Schiavoni also voted against the bill in the end, as did Sen. Capri Cafaro of Hubbard, D-32nd.

The final vote was not along strict party lines, however. Sen Lou Gentile of Steubenville was among several Democrats who voted “yes” on the legislation.