Who wants to frack under an Ohio state park? State law keeps it a secret
The road to fracking under Ohio’s state parks and wildlife areas has been paved with secrecy, opponents say, and the application process is the latest example.
Sunday marked the deadline for companies to apply to extract for oil and gas under Salt Fork State Park in Guernsey County, Valley Run Wildlife Area in Carroll County and Zepernick Wildlife Area in Columbiana County.
But Ohioans won’t know who applied until after Ohio’s Oil and Gas Land Commission picks a winner. That’s because of a 2011 law that keeps the details of these bids confidential.
Fracking, or hydraulic fracturing, is a method that injects water, sand and chemicals into the ground to create new fractures in rocks and extract natural gas, oil and brine. The process can result in chemical spills at the surface, groundwater quality contamination and induced earthquakes, according to the U.S. Geological Survey.
The reason for the confidentiality in Ohio’s bids, according to state law, is to “encourage the submission of bids and the responsible and reasonable development of the state’s natural resources.”
“The thought process was,” explained Rob Brundrett, president of the Ohio Oil and Gas Association. “If the bids were not public when the bidding process was going on, it would encourage more bidders and hopefully better bids for the state.”
But opponents of fracking in Ohio contend that the secrecy is one more way that this process is rigged to favor oil and gas companies.
“The gas and oil industry in Ohio has made sure that Ohio law reflects their wants and needs, and that process is all about secrecy,” said Melinda Zemper, a steering committee member for Save Ohio Parks, which opposes fracking on state land.
“The public and the media can’t check the histories of these companies regarding any serious methane leaks or water contamination or other environmental harms that should disqualify them from doing business with the state,” Zemper said.
For Nathan Johnson, an attorney and public lands director with the Ohio Environmental Council, it begs the question: Why is secrecy needed to encourage bids?
“I think it’s because fracking public parks is deeply unpopular with the public,” Johnson said.
At least one company, Texas-based Encino Energy, has made its interest in leasing the oil and gas rights under Salt Fork State Park well known.
The company, which did not respond to a request for comment, has asked Guernsey County residents about leasing their well pads.
Cleveland.com reported that Encino offered to pay up to $1.8 billion between royalty payments and a signing bonus, according to a proposal that was ultimately rejected. Encino also has a new office in Carrollton near the Valley Run Wildlife Area, according to the Carroll County Messenger.
The number of possible applicants is also limited to companies with well pads in the area, said Julie Weatherington-Rice, a senior scientist at Bennett and Williams Environmental Consultants.
The top shale oil and gas producers in Ohio last year included Ascent Resources, Encino, Gulfport Appalachia, Southwestern Energy and Rice Drilling, according to Ohio Department of Natural Resources data. Nine companies operate in Guernsey County, four in Columbiana and three in Carroll, according to those records.
What happens next?
Details about each applicant will be publicly available after the commission picks the “highest and best bid,” according to state law.
There is no set deadline for the commission to select a winner.
Ohio lawmakers first approved fracking under state parks in 2011, but the process sped up after a series of changes were approved in recent years. Brundrett with the oil and gas association thinks the delays are behind them.
“It’s always better to have some sort of deadline to follow, but we’re confident the commission is going to continue to work to award a bid, and we think they’re going to do it in a reasonable time frame,” he said.
For environmental groups, the secrecy surrounding which companies have applied is the latest example of a process that hasn’t been accessible to the public.
Opponents were not able to speak at the Oil and Gas Land Commission’s November meeting where members voted to greenlight accepting bids. They instead loudly protested throughout the meeting. Cleveland. com found dozens of letters sent to the commission in support of fracking under state parks were fake, and the Ohio Attorney General’s office is investigating that.
State lawmakers have ensured the commission has little leeway to reject these bids based on public feedback, Weatherington-Rice said. “Everything is rigged in favor of the oil and gas companies . ... ”
Two lawsuits could impact the timeline. Last April, environmental groups sued Ohio to block the law allowing fracking under state parks and lands. In November, environmental groups challenged Ohio’s decision to greenlight applications. Ohio Attorney General Dave Yost’s office argued that the decision could not be appealed. The case is pending in court.