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Group Urges 'Reasonable' Shale Drilling Tax
"Fracking, Fairness and the Future," a report released Thursday by Innovation Ohio, calls on Gov. John Kasich and state lawmakers to ensure that Ohio workers, landowners and taxpayers receive "a fair share and a fair shake" if the state decides to allow expanded drilling for gas and oil via the horizontal technique known as hydraulic fracturing or "fracking."
Innovation Ohio is aligned with the Progress Ohio advocacy group. Its report, following analysis of oil and gas reserve estimates from both the Ohio Department of Natural Resources and industry sources, projects that "an all-out shale boom could mean $86 billion in natural gas revenue for the developers over the next 20 years."
Additionally, Ohio's shale is estimated to have between $130 billion and $550 billion worth of oil as well as "an unspecified amount of additional value in natural gas liquids." However, "Ohio currently has the second lowest oil and gas severance tax in the nation and levies no tax at all on the extraction of valuable natural gas liquids," according to Innovation Ohio.
The report can be found on a fracking resource page on the Innovation Ohio website. The page also contains links to source materials cited in this report, relevant websites, and an interactive Ohio map showing all fracking site locations.
"Though a 'shale boom' potentially could bring tens of thousands of jobs to Ohio, environmental concerns -- including a series of earthquakes near Youngstown -- have raised doubts about whether fracking and its associated processes (including waste water disposal) are safe," the organization said.
State officials are investigating a series of earthquakes that have struck the Mahoning Valley since last year. The quakes' epicenter has been identified near a brine-injection well operated by D&L Energy Group. While the state investigation continues, Gov. John Kasich reportedly intends to highlight the economic benefits of fracking during his Feb. 7 "State of the State" address in Steubenville.
Environmental issues are not the primary focus of the report. Because "creating jobs will do little good if we poison our people and destroy our state," Innovation Ohio believes it is self-evident that fracking should be halted if threats to public health and safety can't be resolved. If fracking is permitted, however, "the economic benefits should be shared fairly with ALL Ohioans, not transferred out of state or allowed to flow down a one-way street in the direction of Big Oil," the organization said,
The report makes three major policy recommendations to address concerns it raises: a "Landowner Bill of Rights," enforced by the state attorney general, "to ensure Ohioans selling mineral rights are not cheated, kept in the dark about what chemicals or other hazardous materials will be used on their property, or left with polluted drinking water, despoiled acreage or unrepaired damages to access roads and other property"; a reasonable windfall profits tax on oil and gas companies; and a "Hire Ohio" policy designed to ensure that fracking jobs here go mostly to Ohioans, rather than workers from other states.
"If fracking goes forward in this state, ALL Ohioans should benefit," said Dale Butland, Innovation Ohio communications director. "After all, these natural resources belong to us, not the oil companies. The companies are certainly entitled to a fair profit for extracting it. But regular Ohioans also deserve a fair share and a fair shake -- and it's up to our elected officials to make sure we get it."
"ProgressOhio believes first and foremost the health and safety of Ohioans should take precedence over any discussion of revenue generated from fracking," said Brian Rothenberg, executive director. "ProgressOhio stands firmly with the 72% of Ohioans who are in favor of a moratorium on fracking until issues such as environmental impact, water quality, disclosure of chemicals and waste disposal issues are resolved."
Progress Ohio is organizing buses to take protestors to the site of Kasich's State of the State address. Youngstown is one of three locations where protestors will be picked up. Individuals can reserve a spot on the bus at this link.