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:

“Land men” crackdown: State Rep. Mark Okey, a Democrat from Carrollton, touted legislation to thwart unethical land-lease practices, targeting those who prey on unsuspecting landowners. House Bill 528, offered May 1, would ensure that drilling companies accurately report their oil and gas production, while House Bill 493, introduced March 27 and titled the Truth in Leasing Act, would require licenses for oil company “land men” who seek out leases from property owners.

On April 25, Okey offered an amendment to a midbiennium budget bill that included provisions to protect landowners who unwittingly sign contracts, not understanding the true worth of their rights. That amendment failed.

And on May 4, Okey met with the Carroll Concerned Citizens group to discuss landowner property and water rights and legislation he has introduced on oil and gas issues.

Regulations working: The Republican leaders of the Ohio House and Senate and Gov. John Kasich touted their efforts to regulate Ohio’s emerging oil-and-gas-drilling industry during a conference in Columbus on May 2.

“I firmly believe ... that we can responsibly develop oil and gas resources in Ohio and protect the environment,” said Senate President Tom Niehaus, a Republican from New Richmond. “They are not mutually exclusive opportunities.”

Lawmakers also asked oil and gas producers and other companies to assist the state in forecasting future work-force needs to ensure a “pipeline of qualified help” is ready to fill job openings.

Rules OK’d: On May 7, the Joint Committee on Agency Rule Review let stand a series of proposed rules related to well construction and permitting that were proposed by the Ohio Department of Natural Resources.

Ethics issue: In an advisory opinion issued May 8, the Ohio Ethics Commission told Robert W. Chase, a member of the Ohio Oil and Gas Commission and creator of a limited liability corporation providing services to groups interested in leasing their properties for oil and gas production, to withdraw from consideration any matter before the state commission involving a producer or landowner with whom he had business dealings.

Public supports tax, drilling: The Connecticut-based Quinnipiac University Polling Institute, which regularly gauges Ohioans’ opinions on office-holders, candidates and issues, found that a majority of voters support Gov. John Kasich’s plans to increase taxes on oil and gas produced through fracking and use the corresponding collections to cut Ohio’s income tax rates.

The May 9 survey also found that 60 percent of the 1,069 registered Ohio voters questioned over the past week said they back the governor’s plan.

And 64 percent said the economic benefits of drilling for natural gas and oil outweigh the environmental concerns.

Frack tax loopholes: Communities could gain up to $1.8 billion over four years if taxes on oil and natural-gas drilling were increased to rates comparable to neighboring states, according to a May 10 study by Policy Matters Ohio, a liberal think tank.

The study also called for lawmakers to eliminate loopholes and tax cuts in the governor’s frack tax proposal.

“The industry has leased Ohio land because the resource is there,” said Wendy Patton, report author and senior project director. “Oil and gas production could be worth around $50 billion over the next four years. Reserving a share to restore jobs and services devastated by years of spending cuts, to assist impacted communities and to invest in tomorrow’s diversified economy is the right thing to do.”

Calls for investigation: State Rep. Bob Hagan, a Democrat from Youngstown, has been outspoken in his opposition to an expansion of fracking activities until after a full study is done. On May 11, he announced he would introduce a resolution calling for a federal investigation of groundwater contamination from oil and gas injection wells and for Congress to request an official study of the issue by the U.S. Government Accountability Office.