There was an excellent article in the New York Times discussing the issues homeowners and landowners are facing when signing oil & gas leases- Learning Too Late of the Perils in Oil & Gas Leases.
The Times reviewed 111,000 oil & gas leases from Ohio, Pennsylvania, New York Texas and West Virginia. It found
Hydraulic fracking provides the opportunity to tap into massive natural gas reserves which is located deep beneath the earth. In Ohio and Pennsylvania, Marcellus and Utica Shale is sedimentary rock which contains huge quantities of natural gas.
Hydraulic fracking uses water injected at high pressure to break up the rock allowing the gas to be released into wells. The process uses
Last week, Governor-Elect Kasich named the new Director’s for Ohio EPA (Scott Nally) and the Ohio Department of Natural Resources (David Mustine). At the press briefing, Kasich reiterated his election theme of returning business growth to Ohio. This from the Columbus Dispatch:
"These departments are going to send a message to Ohio that we are open for
Ohio is facing a $8 billion dollar budget gap. Governor-elect Kasich has stressed the need to streamline state government as part of solving the budget crisis as well as making government more efficient.
During his campaign he already announced one very creative proposal to eliminate the Ohio Dept. of Development. Could an idea being tested in other states- combining State environmental programs-be a proposal worth considering in Ohio?
Good in Theory?
A brief overview of the current state structure suggests combining responsibilities would gain efficiencies. Similar functions and staff with similar capabilities are spread across five different state agencies.
Combining functions and potentially agencies could benefit those organizations. Greater efficiency is not only good for business, its good for agencies that are constantly fighting for funding to support their programs.
The counter argument is that combining large government agencies you run the danger of creating even a larger bureaucracy. Not only could there be even more layers of management the organization could become too large to effectively manage.
An Overview of the Current Ohio Structure
Most environmental regulatory functions are split between the Ohio EPA and the Dept. of Natural Resources. However, there are clean up, regulatory and grant programs related to the environment spread across a total of five different state agencies.
Here is just a quick look at various functions that have commonalities and are divided up between multiple agencies.
Brownfield Redevelopment and Clean Up
Federal Water Pollution Permitting Programs
Litter and Recycling
Wetlands
Ground Water Management
Surface Water and Lake Erie
Underground Storage Tanks
Diesel Emission Reduction Programs
The list of similar functions spread across multiple agencies is probably longer. In addition to similar regulatory functions, each of these agencies maintain their own Information Technology Offices, HR, Motor Pools, Facilities Management, Press Offices and Director’s Offices. Combining support offices could also gain efficiencies.
Not a Budget Fix
After modifications to its funding strategy, Ohio EPA utilizes no general revenue funds to support its programs. ODNR has substantially reduced its reliance on GRF. So combining agencies is not going to do much to fix the $8 billion dollar budget hole.
However, both agencies (as well as the other three agencies) assess multiple fees to business to support their programs. These fees have regularly been increased to support rising human resource expenses within the Agencies. Fees, while imposing costs on businesses, have traditionally not received the same political attention as GRF.
While streamlining and combining functions may not solve the $8 billion budget hole, it could avoid or reduce the need to raise fees on businesses.
For a discussion of what has occurred in other states…continue reading.Continue Reading Ohio EPA + ODNR?
During Governor Strickland’s State of the State he made the "no new taxes" pledge. However, the Governor did mention that to balance the budget he will propose "new fees, fines and penalties." No specifics were provided, however, now that details are beginning to take shape the Governor Strickland has been criticized for his roll out of
With Michigan and Pennsylvania’s passage of the Compact, all of the Great Lake States have now endorsed it. The next step is to go to Congress for ratification. While the press has almost exclusively concentrated on the diversion aspects of the Great Lakes Compact, there are other provisions that could have important ramifications for businesses. Ohio has yet to pass enabling legislation that will grant authority to the Ohio Department of Natural Resource to implement other important aspects of the Compact, most notably regulation of water withdraws.
The driving force behind the Compact was to ban diversions to other States and Countries. But the Compact also requires each of the eight states to establish a regulatory program for new or increased withdraws from the Great Lakes basin. Ohio’s enabling legislation will decide critical issues such as- how much water must be withdrawn before a permit will be required? The Compact sets a default number of 100,000 gallons per day (gpd). Other states have established higher thresholds, such as 1,000,000 gpd.
Another critical question – what type of review is required if a business triggers the need for a withdraw permit? The Compact contains very broad language that requires a review of impacts to the Great Lake basin from which the withdraw takes place. However, the Compact grants the states a tremendous amount of discretion to establish the level of review associated with new withdraws. For example, Ohio could prohibit issuance of a withdraw permit if the proposed project would result in decreased flow in a tributary of Lake Erie. Ohio could also require a detailed review of the impacts to the ecosystem if a withdraw is allowed.
While focus has rightfully been on protecting this tremendous freshwater resource from being diverted elsewhere, there are important policy questions that still remain unanswered. How Ohio and the other Great Lake States regulate withdraws within their states will arguably have a more direct and immediate impact on its constituents. Continue Reading Important Issues Unaddressed After Passage of Great Lakes Compact