Ohio Governor John Kasich signed Senate Bill 315, which sets a new regulatory standard for hydraulic fracturing operators.
Some of the major provisions of the new bill are as follows:
• Creates the nation’s first combined well construction and hydraulic fracturing chemical disclosure requirement.
• Requires the sharing of all chemical information with doctors.
• Establishes mandatory daily fines of up to $20,000 for well operators who violate the law.
• Requires well operators take pre-drilling well water samples within 1,500 feet of a proposed horizontal well and disclose the results in permit applications. Previously, only water wells within 300 feet were tested.
• Requires well operators to disclose the proposed source of water used in the well drilling and hydraulic fracturing process.
• Increases liability insurance for horizontal wells.
• Requires injection well owners to electronically transmit quarterly reports to ODNR with information about each shipment.
While many regulators were seeking more significant chemical disclosure provisions in what’s being called the full “spud to plug” approach, this new law was the result of collaboration and compromise by both the oil and gas industry as well as the legislature. This bill, which has been called the most transparent and comprehensive bill of its kind in the country, should help give Ohioans comfort about the safety of exploration and development of Ohio’s large untapped supply of natural gas while also helping to put Ohioans back to work as quickly as possible.
© 2012 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.
This advice is not intended or written to be used for, and it cannot be used for, the purpose of avoiding any federal tax penalties that may be imposed, or for promoting, marketing or recommending to another person, any tax related matter.