What Is 'Frackgate?' Inside Ohio's Fracking Controversy.

A lame-duck legislative amendment passed by the Ohio Senate last week is the latest chapter in a debate over whether and how to allow oil and gas drilling under state parks and other public lands in Ohio.

ByKathian M. Kowalski

This story originally appeared onEnergy News Network

Barkcamp State Park is among the few places where visitors can experienceOhio'sforests as they existed before European settlement. Once the site of a historic logging camp, today it's a destination for camping, fishing, and other outdoor recreation.

It's also a place that could see new pressure for oil and gas development if Ohio lawmakers approve lame-duck legislation this month that would remove barriers to drilling under public lands.

Neither supporters nor critics have singled out specific parks that could be of interest to the industry, but a planning document from a previous governor's administration reveals at least three areas where oil and gas extraction might occur. They include Barkcamp, as well as Wolf Run State Park and Suncreek Fish State Forest.

文档——德战略沟通计划veloped by members of the Kasich administration and the Ohio Department of Natural Resources in 2012 — ignited a political controversy known asFrackgateafter it became public two years later. It also predicted the backlash that would be likely to follow any proposal to drill under state parks.

"Vocal opponents of this initiative will react emotionally, communicate aggressively to the news media and online, and attempt to cast it as unprecedented and risky state policy,"the communication plansaid.

For over a decade, Ohio law has said an agency "may" lease land for oil and gas drilling.House Bill 507,俄亥俄州参议院上周没有通过ny public testimony on its last-minute amendments, would change that to say the agency "shall" lease the land "in good faith."

If the bill becomes law, "the state agency essentially has to — must — lease the land when the oil and gas company shows up at the door and demands the lease," said attorney Nathan Johnson, director of public lands for the Ohio Environmental Council. In his view, the amendment would give free rein to oil and gas companies, with few safeguards for competing public interests or the environment.

The same legislation would alsodeclare natural gas to be "green energy."

Related: These Are The Ten Biggest Oil And Gas Equipment And Services Companies

The history

A2011 lawcreated an oil and gas leasing commission and outlined a framework for it to decide whether to grant permits for drilling and to enter into leases through a competitive bidding process. Lawmakers passed the bill, and Gov. John Kasich signed it roughly a year before another law opened the state to widespread fracking and horizontal drilling.

By the summer of 2012, members of theKasich administration, Ohio Department of Natural Resources and others put together thestrategic communications planbefore potentially moving ahead with drilling at Barkcamp, Wolf Run, and Sunfish Creek. All three are located in counties that are among Ohio'stop seven oil and gas producers.

The communications plan became public in early 2014 and resulted inoutcryfrom theSierra Club, the Ohio Environmental Council, ProgressOhio, and other groups. Days later, Kasichsaidhe hadchanged his positionabout drilling on state public lands. A pro-industry newsletter predicted "Frackgate" would remain an issue in Ohio for a while.

A 2015 billinitially would have required drilling in some cases under state public lands but was amended in committee to exclude drilling understate parks. The House passed the bill, but it didn't come to a vote in the Senate.

Meanwhile, Kasich did not appoint anyone to the leasing commission that would decide on permissive permits. Terms in a 2017 budget bill then sought tostrip the governor of his powerto name commission members, and the House voted tooverrideKasich's veto. Faced with possible defeat, he began making appointments.

Gov. Mike DeWine continued to appoint individuals to the commission, which has been taking some action. Comments on a proposed standard lease form aredue Jan. 13. However, final rules for the leasing procedures still have not yet been adopted.

In the meantime, the 2011 law leaves leasing issues up to individual state agencies. Somelimited drillingon state public lands has taken place under current law. Some political subdivisions have also entered into leases, including theMuskingum Watershed Conservancy District.

Where we are now

Oil and gas companies "currently have the right to drill under state land. But there is no deadline, there's not a real expedited process by which they can drill," said committee chair Sen. Tim Schaffer, R-Lancaster, when theAgriculture and Natural Resources Committeediscussed HB 507 on Dec. 6. Some proceedings drag on for years, he added.

"It's in current law that we can do this, and these drillers could do this," Schaffer said. "And it's very strictly designed to make sure that we are protecting the environment. We are protecting public lands."

Current statutes call for consideration of whether drilling would conflict with other uses of the public land, as well as its environmental impacts and possible geological consequences. It's unclear how those provisions would apply before the leasing commission adopts rules for reviewing proposed parcels to be drilled and accepting bids on them.

Language in the amendment appears to call for little more than a showing of parcel identification and registration, proof of insurance, and satisfaction of financial assurance requirements. Thelegislative synopsisfor the new bill language said it "requires, rather than authorizes, each state agency to lease agency-owned or -controlled oil and gas resources for development prior to the date that rules governing leasing procedures are adopted by the Oil and Gas Land Management Commission."

"This amendment is really a power grab by the oil and gas industry," said Johnson. Agencies would lose their discretionary authority, and the industry would get to say where and when drilling would happen on state public lands, he said. "It's putting the fox in charge of the henhouse."

"We strongly disagree," said Rob Brundrett, president of the Ohio Oil and Gas Association, noting that terms of a lease would still have to be just and reasonable. In his view, HB 507 would just move the process along, especially where smaller parcels are part of larger areas that horizontal drilling would pass under. Such plots of land are often owned or overseen by agencies like the Ohio Department of Transportation and Department of Administrative Services, he noted.

"The amendment does not interfere or conflict with any other interest in state lands," Brundett said. Any leases would still have to be "on just and reasonable terms," and using the surface of state lands for development purposes would be prohibited, "unless the state agrees."

Critics worry the new bill wording might not let agencies say no.

"The language change from 'may' to 'shall' changes the very basis of the review process from leasing being permissive to being required. It takes it from 'Youcando this' to 'Youhaveto do this,'" said Neil Waggoner, who heads the Sierra Club's Beyond Coal campaign in Ohio. He and others also worry about oil and gas operations in state parks and forests.

"This is all about going underground, from outside a park facility or whatsoever. … As citizens use the park, they would never know the difference because it's not above land," Schaffersaid.

But HB 507's wording contemplates possible agreement to surface operations, if an agency agrees. In contrast, the2015 bill俄亥俄州众议院通过明确排除任何operations in or under state parks and forbid surface drilling in state forests.

"No one wants a fracking rig in a state park," Waggoner said.

The House could agree to the amended version as early as Tuesday, Dec. 13.

Asked if DeWine would veto either the whole bill or portions dealing with natural gas, spokesperson Dan Tierney said they are reviewing the bill and have not yet taken a formal position.

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