SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
CapitolFax.com
To subscribe to Capitol Fax, click here.
Fracking rules finally unveiled

Friday, Aug 29, 2014

* IDNR released its new fracking rules today. Lawrence Falbe took a quick look for us…

Rich,

My take on the revisions is that IDNR seems to worked very hard to digest an enormous body of public comment, and revise the regulations as it saw necessary and appropriate. I think that few people will be able to argue that IDNR rushed the process or otherwise did not fairly consider the staggering volume of comments it received, even if the end result is not considered perfect by either pro- or anti-fracking proponents.

Here is my “quick hit” list of what I saw that was important in my first very quick run-through.

    • Requirement to disclose specific fracking chemicals is strengthened and burden to prove protection as a trade secret is more stringent
    • Radioactivity is now addressed and a Radioactive Materials Management Plan is now required, among other things
    • The carve-out for adverse effects to water bodies that are “wholly contained” is much more stringent, with any hydrogeological connections to off-site groundwater sources now enough to exclude this caveat
    • The permit applicant must identify efforts to mitigate the impact of HVHHF on local roads
    • Burden is on the applicant to show if local first responders have adequate training and equipment to respond to emergencies
    • Changes to the permit application to address deficiencies identified by IDNR may trigger a new public comment/hearing period on those changes
    • Tightens up rules for when an objector can demand a public hearing by requiring specific facts and regulations at issue to be identified, but softens requirement to identify witnesses at time of request for public hearing
    • Public hearings must be held WITHIN THE COUNTY of the well site when possible but in no event more than 30 MILES OUTSIDE of county of well site
    • Applicants MUST appear at the public hearing (if there is one) except in a case of documented emergency, in which case the hearing can be rescheduled but applicant must pay costs
    • Clarifies that Hearing Officer does not render a “decision” but now makes only recommended findings, and the IDNR (presumably the Director but it’s not specified) makes the decision.
    • The permit decision still has to be made within 60 days of application completion unless waived by the applicant
    • The standard for granting a permit now specifically includes consideration of potential harm to property, wildlife, aquatic life and the environment
    • The IDNR has to make specific findings in its permit decision on key input from governmental agencies and objectors that was presented by public comment/hearing
    • The permit decision must consider the incremental impact and CUMULATIVE EFFECT of past, present and future fracking operations in the same vicinity or county
    • Significant deviations to the original permit application (including changes in well dimensions, boring locations, changes to proposed containment, etc.) requires another $13,500 fee
    • IDNR can impose ADDITIONAL SETBACKS as necessary to protect public health, public safety, property, wildlife, aquatic life, or the environment
    • Baseline groundwater monitoring requires GPS coordinates
    • Burden for claiming technical or economic infeasibility of complying with requirements to manage natural gas and hydrocarbon fluids produced during flowback periods is more stringent
    • Excess fluid in a reserve pit must be removed within 7 days after it is deposited
    • SITE Restoration is MANDATORY and cannot be contractually waived between site owner and permittee

Note that the new requirement that a well permit application decision must consider incremental impacts and “cumulative effects” (Section 245.300(c)(4)(vii)) is HUGE and could have a major impact on incentivizing companies to rush to get permitted, for fear that an overabundance of wells in a certain area may make additional permits harder to get as time goes on.

- Posted by Rich Miller        


17 Comments
  1. - VanillaMan - Friday, Aug 29, 14 @ 1:54 pm:

    Well.
    It was either this or video gaming at every McDonalds, Burger King and KFC booth and drive up window.


  2. - Anonymous - Friday, Aug 29, 14 @ 2:03 pm:

    Gee, thoughtful consideration of both sides and a balance between the two. I thought they were just slow rolling?

    Good job all involved, despite the hand-wringing from both sides IDNR were the adults I the room.


  3. - Hack in the Back - Friday, Aug 29, 14 @ 2:03 pm:

    The Commenter Index is unprecedented. It’s the who’s who of fracking in IL.


  4. - wordslinger - Friday, Aug 29, 14 @ 2:07 pm:

    OK, start making money.


  5. - Down South - Friday, Aug 29, 14 @ 2:19 pm:

    The Commenter Index is indeed quite interesting. It is basically a roster of every ecoreligionist in Illinois. Shows clearly the urgent involvement of those who wished to block the drillers.

    The Commenter Index also shows the lack of involvement of individuals who are in counties which stand to gain from fracking. Most names are from Chicago, Carbondale, etc.


  6. - dupage dan - Friday, Aug 29, 14 @ 2:32 pm:

    === OK, start making money. ===

    With that long list it could take awhile - I hope not. The applicants are keen - there is real money to be made.


  7. - John A Logan - Friday, Aug 29, 14 @ 2:41 pm:

    Finally, the savior of Southern Illinois has arrived! God Bless You Pat Quinn and the fracking industry! Hallelujah!


  8. - Just Saying - Friday, Aug 29, 14 @ 2:44 pm:

    Most of these proposed changes are non-starters with industry. Don’t see these passing.


  9. - Demoralized - Friday, Aug 29, 14 @ 2:54 pm:

    ==Most of these proposed changes are non-starters with industry. Don’t see these passing.==

    Let the whining begin. You figure out a way to 100% satisfy everybody you let us know.


  10. - Ghost - Friday, Aug 29, 14 @ 3:07 pm:

    about fracking time…..

    VMan you say that like its a bad thing? we could put these on parking meters, play for a free parking


  11. - dupage dan - Friday, Aug 29, 14 @ 3:08 pm:

    Apparently one company has allowed their lease to expire possibly due to the delays in the approval process. There’s plenty of gas to be drilled in Indiana. It’ll be interesting to see if the path of least resistance leads east.


  12. - Going nuclear - Friday, Aug 29, 14 @ 3:16 pm:

    I think DNR took a measured approach. It’s important to get this right from the start.

    Look what’s going on in Pennsylvania. The state environmental protection agency recently made public 243 cases of contamination of private drinking wells from oil and gas drilling operations.

    Let’s make sure fracking is done safely here.

    See: http://online.wsj.com/article/AP16a162b66b5946d0837c7395cab7a5f4.html


  13. - Judgment Day - Friday, Aug 29, 14 @ 3:33 pm:

    “Most of these proposed changes are non-starters with industry. Don’t see these passing.”
    ————————–

    It’s not just a matter of ‘passing’. It’s more Administrative Rules/JCAR, which as I look at more of a technical document writing process.

    And industry may howl initially, but IDNR, the anti-fracking folks, and eventually the legislature will be saying “what were we thinking of?” And that’s where the most noise will be coming from.

    This same type of issue, is why in many ways we were never able to get a real, custom designed statewide building code passed into law.

    Most, not all, but enough came to the realization that a ‘one fits all’ regulatory environment doesn’t work very well in practice across the entire state, even excluding Chicago (even all of Cook County). The law just can’t keep up with technology.

    And fracking technology is always changing. So that’s going to be a lot of $13.5k fees and paperwork, but remember, the fracking companies can far outpace the regulatory agencies in paperwork. After all, for the oil/fracking companies, it’s their BUSINESS. For the regulators, it’s just one area.

    And please note, the local health departments (Environmental Health) are going to be ‘players’ in this. Is anybody aware, for example, that Richland County (Olney, IL), which is right smack in the middle of the S. Illinois oil patch, has no chartered health department? I mean, NONE.

    That’s going to be an interesting ‘work around”.

    Also, with the rules on potential drilling (such as ‘incremental impacts’ and ‘cumulative effects’), you will have immediately created immediate litigation over those terms, but also a fairly immediate secondary market for existing wells and related support facilities.

    Just a thought, but you may want to re-think this particular one, as you are potentially kicking over a hornets nest known as MERS (Mortgage Electronic Registration Systems, Inc. (MERS)).

    The link is: http://en.wikipedia.org/wiki/Mortgage_Electronic_Registration_Systems

    Remember, MERS handles all UCC (Uniform Commercial Code) documents for virtually all places in the US, and that includes Southern Illinois. A secondary marketplace for the fracking business might very well fall under the UCC provisions. Oh, this could be some serious ‘fun’.

    Just a few initial thoughts to consider.


  14. - Illiana - Friday, Aug 29, 14 @ 4:02 pm:

    Either way the natural gas will be extracted eventually. Those who want to prevent fracking will fail for economic reasons & those who want it easier are not going to increase the amount of natural gas in the ground. The past of least resistance cannot increase the amount extracted over the long term.


  15. - 4 percent - Friday, Aug 29, 14 @ 4:02 pm:

    Unfortunately, many of these changes go beyond the scope of the legislation and fragile agreement that resulted in support from enviros, ag, and business community. While they may seem to “make sense” they don’t reflect the “give and take” that resulted in the historic agreement. Several items go far beyond what was negotiated by both sides.


  16. - wordslinger - Friday, Aug 29, 14 @ 4:05 pm:

    –Apparently one company has allowed their lease to expire possibly due to the delays in the approval process. There’s plenty of gas to be drilled in Indiana. It’ll be interesting to see if the path of least resistance leads east–

    So someone else will get it. They’ll drill where it’s juicy.

    For more 100 years, the elected Texas Railroad Commission has ruled where you can drill and how much you can take out of the ground, every month.

    I don’t think any drillers abandoned Texas over that hyper-regulation.


  17. - Judgment Day - Friday, Aug 29, 14 @ 4:14 pm:

    IF the fracking community is really smart, they will have performance time frames included for IL DNR. Because IL DNR will likely never be able to meet any reasonable time frames.

    And as a result, eventually there will be enough of a firestorm over IL DNR performance that moderating legislation will get passed that will be more in line with reasonable expectations.

    The State of Illinois will pass these hideously complicated rule sets, then do an ‘epic fail’ in terms of IL DNR regulatory performance, and as a result, will get their brains kicked out with new legislation meant to correct the resulting IL DNR regulatory failures.

    It’s going to be like the FOID card performance, only far bigger, and more complex. And somebody will come along and use IL DNR performance metrics as an example of why changes have to occur.

    Wait for it…..


TrackBack URI

Sorry, comments for this post are now closed.


* Ridiculous allegation withdrawn
* *** UPDATED x1 *** Question of the day
* Adventures in governing
* Rauner on Obama: "One of the most anti-business presidents we've had in the last 70 years"
* Callis recycles ad, reportedly lowers buys
* *** UPDATED x2 - Frerichs responds - Cross responds *** Frerichs says Cross is Rauner's "lapdog"
* Poll: Rauner leading by 6, Topinka up by 22, Cross up by 10
* Pumping up the base
* NRI head will testify next week
* *** UPDATED x2 *** Another day, another GTCR revelation
* Rate Rauner's three new TV ads
* SUBSCRIBERS ONLY - Supplement to today’s edition: Congressional crosstabs
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* Good morning, everybody!
* Yesterday's blog posts

Support CapitolFax.com
Visit our advertisers...

...............

...............


Search This Blog...

Search the 98th General Assembly By Bill Number
(example: HB0001)

Search the 98th General Assembly By Keyword

          
        * Apple Watch changes, Sony Xperia Z3X, Galaxy Note 4 dates & more – Pocketnow Daily
        * Apple Pay gets a rumored ETA, three weeks from now
        * Fashion industry working to accommodate today’s larger phones
        * Science Inc.’s Refame Connects Influencers With Advertisers On Vine And Instagram
        * Verizon Reverses Course on Plan to Throttle Unlimited LTE Customers
        * No, you’re not imagining that greatly improved Moto 360 battery life
        * Apple Updates 'Apple Store' App With iPhone 6 Support

        * iPhone 5c Found To Be Selling Better Than The iPhone 5s In The UK
        * Protesters In Hong Kong Reportedly Targeted With Malware
        * Logitech Type+ Keyboard Case For The iPad Air Announced
        * Analyst Predicts 10 Million Apple Watch Units To Be Sold In 2015
        * iPhone 6 WiFi Speed Gets Compared To The iPhone 5s
        * HTC “RE Camera” Stops By The FCC
        * Under Pressure From Gamers, Intel Pulls Advertising From Gamasutra

        * Third-base coach McEwing to interview for D-backs job
        * Guide to American League rooting interests for White Sox fans
        * Anderson, Edwards prospects to watch in AFL
        * Manager notes: How Robin Ventura and Chris Sale get along
        * Voting underway to decide Hank Aaron Awards
        * Development of young core in '15 can define Chicago's future
        * Improved White Sox take important step in 2014


        Main Menu
        Home
        Illinois
        YouTube
        Pundit rankings
        Obama
        Subscriber Content
        Durbin
        Burris
        Blagojevich Trial
        Advertising
        Updated Posts
        Polls

        Archives
        October 2014
        September 2014
        August 2014
        July 2014
        June 2014
        May 2014
        April 2014
        March 2014
        February 2014
        January 2014
        December 2013
        November 2013
        October 2013
        September 2013
        August 2013
        July 2013
        June 2013
        May 2013
        April 2013
        March 2013
        February 2013
        January 2013
        December 2012
        November 2012
        October 2012
        September 2012
        August 2012
        July 2012
        June 2012
        May 2012
        April 2012
        March 2012
        February 2012
        January 2012
        December 2011
        November 2011
        October 2011
        September 2011
        August 2011
        July 2011
        June 2011
        May 2011
        April 2011
        March 2011
        February 2011
        January 2011
        December 2010
        November 2010
        October 2010
        September 2010
        August 2010
        July 2010
        June 2010
        May 2010
        April 2010
        March 2010
        February 2010
        January 2010
        December 2009
        November 2009
        October 2009
        September 2009
        August 2009
        July 2009
        June 2009
        May 2009
        April 2009
        March 2009
        February 2009
        January 2009
        December 2008
        November 2008
        October 2008
        September 2008
        August 2008
        July 2008
        June 2008
        May 2008
        April 2008
        March 2008
        February 2008
        January 2008
        December 2007
        November 2007
        October 2007
        September 2007
        August 2007
        July 2007
        June 2007
        May 2007
        April 2007
        March 2007
        February 2007
        January 2007
        December 2006
        November 2006
        October 2006
        September 2006
        August 2006
        July 2006
        June 2006
        May 2006
        April 2006
        March 2006
        February 2006
        January 2006
        December 2005
        April 2005
        March 2005
        February 2005
        January 2005
        December 2004
        November 2004
        October 2004

        Blog*Spot Archives
        November 2005
        October 2005
        September 2005
        August 2005
        July 2005
        June 2005
        May 2005

        Syndication

        RSS Feed 2.0
        Comments RSS 2.0
        WordPress

        Loading


        * Chicago's African-American community takes side.....
        * Dems rip GOP wedding dress ads - Politico..
        * Emanuel won't rule out fee hikes in 2015 budget.....
        * Clayborne’s female associates enjoy government .....
        * New ad urges women to 'Say yes to Bruce Rauner'.....
        * Bruce Rauner stops by Chamber of Commerce for l.....
        * Gov. Quinn Proclaims “First Ladies Health Day” .....


        * Respiratory virus seen in 4 deaths; role unclear
        * Obama in Chicago for political appearances
        * Official: Donations drying up for Lincoln library
        * Flight operations at Chicago airports improving
        * Governor candidates' views on Obama library evolve
        * Illinois Woman, son charged with meth conspiracy
        * Ex-Chicago police commander getting out of prison
        * U of Chicago increases aid to needy students
        * Man charged in 2009 death of Chicago woman
        * Chicago man charged in Galesburg slaying

        * Donations drying up for Lincoln Presidential Library foundation, chairman tells lawmakers
        * ALPLM at center of legislative hearing in Chicago
        * Former head of anti-violence program to testify
        * Appellate court: State workers owed back wages
        * Quinn leans on top Democratic support — Obamas, Clinton
        * IDOC investigation prompts state prison warden to retire
        * Lawmaker panel plans to resume anti-violence program investigation
        * Quinn touts first year of Affordable Care Act
        * State-owned airplanes to be sold in online auction
        * GOP opposition to school funding bill irks Manar

        * Man with Ebola in U.S. flew part of trip on United
        * Harvard bank hit by loan fraud
        * The world's elite colleges: Where Northwestern and U of C stand
        * Secret Service Director Julia Pierson resigns
        * United stock dips on news of first U.S. Ebola case


        * CPS students with good GPA could get free ride to City Colleges
        * Let’s get a grip on Ebola fear in U.S.
        * Video shows Rauner opposing Medicaid expansion last year
        * Rauner’s biggest strength proving to be greatest weakness: Mihalopoulos
        * Union: CPS was warned that janitor job cuts could cause problems
        * Lawyer: Key witness to answer questions from panel probing NRI
        * Emanuel super PAC rakes in $2.4 million since late June
        * Pedicab operators say city rules putting brakes on their business
        * IHSA to boycott legislative hearing set for Friday in Chicago
        * Quinn urges City Council to tighten reins on small digital signs


        * Aurora releases FAA fire 911 call
        * Obama in Chicago area for fundraiser, speech
        * New Lenox war memorial vandalized
        * Neighborhood loses a protector to a street robbery
        * Skokie mayor: No arrests in shooting of 2 Skokie teens
        * Amid cancellations, O'Hare edges Atlanta airport in total flights
        * Carpentersville woman charged in sister's fatal stabbing
        * Worker arrested at Elgin water treatment plant: 'He had a bad day'
        * 4 wounded in separate South Side shootings
        * 2014 Chicago homicides on decline, but shootings on rise


        * LLCC Announces New Ag Programs
        * Tim Landis: Bike Lanes, Medical Marijuana And Meat
        * Clock Ticking On Illinois Prison Crowding
        * Decatur Unemployment Shows Biggest Drop In Nation
        * Quinn Lauds Affordable Care Act, Backs Down From State Marketplace
        * A Redo On Redistricting
        * Polls Showing Illinois Governor's Race A Draw
        * Bruce Rauner, Before He Was A Candidate (Author Interview)
        * Listen to State Week - September 19, 2014
        * Clearing The Air On Clean Air Plan


        * Donations drying up for Lincoln Presidential Library foundation, chairman tells lawmakers
        * Former head of anti-violence program to testify
        * Michael Gerson: Two cheers for Obama, not three
        * Appellate court: State workers owed back wages
        * Quinn leans on top Democratic support — Obamas, Clinton
        * IDOC investigation prompts state prison warden to retire
        * Panel plans to resume anti-violence program probe
        * Lawmaker panel plans to resume anti-violence program investigation
        * Quinn touts first year of Affordable Care Act
        * State-owned airplanes to be sold in online auction


        * Madison County Board member calls for investigation of treasurer's tax sale
        * LIVE! UI vs. Minnesota
        * Foundation to hold Indian Pride Weekend
        * Landmark Perry church destroyed by fire
        * HCE program to focus on technology
        * Barry Petersen to host Alzheimer's event
        * Old school gets new shingles
        * Belleville armed robbery suspect charged
        * Proposed candidate forum at UI not likely, organizer says
        * Voice your thoughts about St. E's at Thursday's public hearing


        * Bears' Allen happy to be back at work
        * Mirotic continues to impress
        * Football: Scouting Week 6, Northwest
        * Man guilty of theft from Naperville adoption agency
        * Naperville woman acquitted of resisting, obstructing cops

        * Representative Jan Schakowsky Sends Letter...
        * Rep. candidate pushes to uphold marriage b...
        * Reps. Schakowsky and Waxman Introduce Bill...
        * Statement by Representative Jan Schakowsky...
        * FAA Rejects Call For New O'Hare Noise Stud...
        * Representatives Quigley, Duckworth, Schako...
        * Representative Jan Schakowsky Statement on...
        * Representative Jan Schakowsky Statement in...
        * U.S. House Passes Resolution Condemning An...
        * Representative Jan Schakowsky Statement on...

        * Hagel: Military Health Care Acceptable Des......
        * Sources: Alleged FAA saboteur high when he......
        * Sources: Alleged FAA saboteur high when he......
        * Sources: Alleged FAA saboteur high when he......
        * Sources: Alleged FAA saboteur high when he......

        * Governor race focuses on labor, unemployment...
        * Israel On The Outs Over Iran?...

        * Defender: Chicago Seaway Bank’s New CEO Discusses Personal Journey to Top
        * Bronzeville & Lakeside cut from consideration for a Presidential library
        * Townhall Meeting on Hotel Development at 76th State
        * Important Community Meeting TONIGHT - 6pm at Chicago State
        * Englewood Tech Hub Aims to Fight Unemployment, Empower South Siders - Englewood - DNAinfo.com Chicago
        * FOX Chicago: Former city worker on 'do not rehire' list finds loophole in system
        * Some corrections regarding the "Grand Old Party" on 79th Street
        * Open House for the Method plant in Pullman NEXT Thursday
        * An old van and a deposit at a south side credit union...
        * DNA Info: Guess Who's Throwing a Grand Ol' Party In Chicago's Black Community?


        * Screwed Up
        * Jobs Governor
        * Wake Up
        * Rauner Launches Three New TV Ads
        * Quinn must take lame duck tax vote off the table




            Hosted by MCS SUBSCRIBE to Capitol Fax Advertise Here Mobile Version Contact Rich Miller