columbus

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

Dumping penalties: The head of the Ohio House committee considering legislation that would increase penalties for illegally dumping oil field waste said he hoped to have the bill ready for a floor vote when lawmakers return to session after the November election.

Rep. Dave Hall, R-Millersburg, chairman of the House’s agriculture committee, said he hoped to convene a hearing on HB 490 later this month and likely would focus some attention on law changes to combat algal blooms in lakes.

The latter comes in response to a Lake Erie algal bloom that left hundreds of thousands of residents without drinkable tap water earlier this month.

Among other provisions, HB 490 would expand the Ohio Department of Natural Resources’ authority to revoke or suspend drilling and related activities of those who break the state’s environmental regulations. The legislation also would tighten requirements for transporting brine and increase potential prison time and civil penalties for violators.

The bill was offered, in part, in response to a Youngstown-area dumping incident. The man involved, Ben W. Lupo of Springfield Township, was sentenced in August to 28 months in federal prison and fined $25,000.

Stiffer penalties: A Democratic lawmaker said the state needs tougher penalties for those who illegally dump oil field waste, in light of Lupo’s conviction.

“What we need are more-severe penalties for the bad actors in this industry,” Senate Minority Leader Joe Schiavoni of Boardman, D-33rd, said in a released statement. “This is not the first time illegal dumping has occurred in the state, and those who violate this law are often repeat offenders. ... While I encourage the continued exploration of oil and gas in the Mahoning Valley and throughout the state, we must have strong laws in place to preserve the environment and protect the public.”

Training center: The state Controlling Board released more than $2.5 million for Stark State College’s new Energy Industry Training Center.

The total includes more than $2.4 million for building renovations at the college’s new downtown Canton campus, where Stark State is consolidating its energy-industry programs to provide training for people working in oil and gas production and related industries in eastern Ohio.

Gubernatorial issues: Cuyahoga County Executive Ed FitzGerald said he would seek more involvement from communities in eastern Ohio’s emerging shale oilfields before considering substantive changes to tax rates on oil and gas produced via horizontal hydraulic fracturing.

The Democratic gubernatorial hopeful even floated on idea — providing tax breaks to companies that hire Ohioans to work in those oilfields rather than relying on out-of-staters.

“If we’re going to tax oil and gas additionally, we’re going to have an investment strategy where we work with local nonprofits and local government and local businesses about how to put those people back to work,” he told reporters during a press conference at a Columbus union hall. “The governor has said repeatedly that he wishes the oil and gas companies were hiring more Ohio residents. Why didn’t he sit down with the oil and gas industry and say your tax rate can be affected by the number of Ohioans that you train and place in those jobs?”

Marc Kovac is the Dix Capital Bureau Chief. Email him at mkovac@dixcom.com or on Twitter at OhioCapitalBlog.