Give it a go
Friday, Mar 8, 2013 - Posted by Rich Miller
* My Sun-Times column…
Before “fracking” and horizontal oil drilling was tried in North Dakota, the state was producing about 80,000 barrels of the sticky black stuff a day, not much more than Illinois.
Last December, North Dakota pumped out almost 800,000 barrels a day, making it the second-largest oil producer in the nation, ahead of Alaska.
Thanks to fracking, jobs are now so bountiful that the biggest problem is persuading qualified workers to move to the remote state.
North Dakota’s state government coffers are bursting with cash, and the governor wants to cut taxes and embark on a major infrastructure program for roads and schools, with plenty of money left over.
Fracking is legal in Illinois, but our regulations are ancient and nobody really knows if anybody is even doing it. The big companies say they’re waiting on new state regulations that are working their way through the General Assembly and new extraction fees, which have yet to be agreed to.
Some say that Illinois could be another North Dakota. We have gigantic shale deposits that have produced big results elsewhere. But not all shale deposits are equal. With our state’s notoriously bad luck, maybe nothing is actually there.
Then again, maybe there is something out there, and I think it’s worth a look.
I came to that conclusion even after watching the documentary “Gasland.” It’s a shocking film about how a reckless search for energy resources has hurt innocent people. A family in the movie can’t drink their own water because their well is so full of gas that they can literally light their tap water on fire. It’s a scary sight. Worse yet, nobody in the government wanted to do anything about it.
The movie has freaked people out all over the country. New York has banned fracking, which involves injecting fluids into the cracks of rock formations to force out gas and oil. The lower chamber in that state’s legislature just passed a bill to ban it for two more years, but the measure apparently faces an uphill climb in the Senate.
Illinois legislators, who can’t seem to get anything else done, found a way to bring the energy industry and environmentalists to the table and produce an agreement. The Sierra Club calls the proposed law the “strongest set of protections of any state in the country.” A representative with the Natural Resources Defense Council said the proposal will be “the strongest and most comprehensive law governing hydraulic fracturing — or ‘fracking’ — in the nation.”
There are some opponents, mainly some small groups in southern Illinois that don’t believe fracking can ever be done safely.
But this fracking proposal is immensely superior to anything in any other state. There’s actually a presumption of liability for contamination near fracking sites. So, if somebody’s tap water becomes flammable, they can more easily sue and recover damages.
There are mandated setbacks for population centers and water resources, some very toxic chemicals are banned, there are protections for the water supply during droughts and even regulations to help prevent fracking-induced earthquakes.
The list goes on. Strict waste storage rules, to stop the practice elsewhere of dumping waste into open ponds. Restrictions on venting of gas, which can cause smog. Public hearings, lots of testing, even citizen enforcement of the laws.
The next step is negotiating the extraction tax. The state can obviously use the money, so this is really important.
Maybe Illinois will finally do something right for a change, and maybe we’ll even get lucky and create a new industry here and lots of jobs. I think it’s definitely worth a shot.
* The AP is also running a story entitled “Illinois deal on fracking could be national model.” From the piece…
Michigan’s largest environmental coalition might be willing to take a cue from Illinois if lawmakers decide that fracking should be part of Michigan’s energy mix.
“We would love to see that kind of bipartisan cooperation,” said Hugh McDiarmid, spokesman for the Michigan Environmental Council. The Illinois bill “has a lot of good ideas and a lot of things … that mirror what we’re trying to achieve in Michigan” because stopping or banning fracking would be unrealistic. […]
California state Sen. Hannah-Beth Jackson said Illinois was able to negotiate many of the same protections she wants in her state, where energy companies are eying a shale formation near Santa Barbara that may have four times more oil than North Dakota. She said regulations proposed by the governor’s office were inadequate.
“It would be wonderful, frankly, if we could get everybody to sit down,” said Jackson, who introduced a bill to regulate fracking wastewater. “In California, there is the perception the companies are stonewalling and do not want to be subject to any oversight. I think if they are willing to sit down and talk, that would certainly be best way to do it.”
* Meanwhile…
The state Department of Employment Security says Illinois unemployment rose to 9 percent in January.
That was up from 8.7 percent in December and back to almost the 9.1 percent rate of January 2012.
Department Director Jay Rowell blamed the uneven recovery the state has experienced since the recession.
The number of unemployed people in the state rose by 4 percent to 594,800. The state added a relatively small 7,100 jobs in January.
- MrJM - Friday, Mar 8, 13 @ 9:11 am:
I’m sorry, Rich — your proposal is simply too reasonable to be taken seriously.
– MrJM
- Old Shepherd - Friday, Mar 8, 13 @ 9:16 am:
Rep. John Bradley deserves much of the credit for this landmark legislation. He really showed true leadership, and I am proud to call him my representative.
- walkinfool - Friday, Mar 8, 13 @ 9:20 am:
Nice to be a leader.
- Cook County Commoner - Friday, Mar 8, 13 @ 9:31 am:
Excellent article. Many folks in Illinois aren’t aware of Illinois’ oil and gas production. I helped some folks out years ago with a mineral lease for oil/gas exploration on their farmland in Clark county. That’s when I learned about it. Contrary to envirnmentalist hysteria, I found the industry folks to be professional and lived up to their agreement to return the land to plowable condition after, unfortunately, no oil or gas was found. Let’s hope the GA can move more quickly on this issue.
- wordslinger - Friday, Mar 8, 13 @ 9:36 am:
Given that the players have gotten together on the ground rules, let’s get it rolling.
It’s not like drilling for oil, digging for coal or splitting atoms to produce energy have been risk-free propositions up to now. The key will be environmental regulation and enforcement to protect groundwater. Will the state be up for that?
As far as an extraction tax, North Dakota puts 5% on gross market value for oil and has a variable rate on natural gas. They produce:
–In 2010, the industry paid nearly $750 million to North Dakota in oil and gas production and extraction taxes, $85.2 million in royalties and another $295 million in lease bonuses to trust funds managed by the North Dakota State Land Department (Source: North Dakota Petroleum Council). And a recent North Dakota State University study reports that the petroleum industry paid $821.8 million in state and local taxes in 2009.–
Tax revenues aside, you have to explore every avenue for potential new jobs down south. During this domestic oil and gas boom, there’s hardly huge growth potential in high-sulphur coal. China, with it’s severe air pollution problems, is even trying to get off it.
- Palos Park Bob - Friday, Mar 8, 13 @ 9:36 am:
Rich, you DO know that “gasland” was a work of fiction, right? I’ve worked a lot in the “fracking” areas of Pennsylvania, and there is a lot of naturally occuring surface methane (natural gas) out there. One of the things the drillers do is take environmental assessments in the drilling areas prior to fracking operations being performed, and it was frequently found that naturally occurring methane deposits were, indeed, resulting in flammable gasses near ponds,and there were natural pollution problems. This is not unusual in areas where there are large natural deposits of methane or other fossil fuel deposits.
To my knowledge, NONE for the surface methane found in ponds or drinking water has been linked to fracking, although a number of farmers have tried to create legal scams making that claim.
The gas that’s being extracted are typically more than a mile below the surface with an impermeable rock layer far below any water tables. The biggest environmental risk is that methane natturally near the surface may be released due to vibration from the process.
There are logistical problems associated with all this new drilling, like county roads needing upgrading for heavier trucks (paid for by the gas comanpies “user fees”), large numbers of highly paid roughnecks coming into small towns and driving housing rentals through the roof and the “usual” prostitution, drugs, and drunkeness issues associated with big construction projects in small towns.
A number of bullying Texas pipeline companies made a lot of enemies in the area by intimidating landowners for pipeline and drilling rights.
From what I’ve observed (and I’ve observed a LOT), the problems brought in by this drilling bonanza has been social and economic, NOT environmental.
That’s just my two cents worth.
- Small Town Liberal - Friday, Mar 8, 13 @ 9:55 am:
- “gasland” was a work of fiction, right? -
Come on, let’s not pretend there aren’t any risks. I worked in the natural gas industry for a number of years, and when things aren’t done properly there are consequences. Gasland may be biased, but it’s not a work of fiction.
Which is why it’s great that Illinois has pulled together the interested parties to be a role model on this issue. More like this please.
- Dirty Red - Friday, Mar 8, 13 @ 10:04 am:
We can set our well water on fire when it first comes out of the tap in central Illinois because of all the methane in it. Of course it’s not recommended for drinking, but you can still do laundry, dishes, and shower in it. But it’s not what we would pour into glasses at the dinner table.
- MrJM - Friday, Mar 8, 13 @ 10:08 am:
“Gasland” is not a work of fiction.
As far as I can tell, the only people claiming it is anything other than a straight-forward documentary are people in the extraction business. (This is in stark contrast to the sometimes staged “documentaries” of Michael Moore.)
With regard to the burning tap water, a 2011 study by Duke University concluded that leakage from the cement seal of a borehole passing through an aquifer is the most likely cause of such incidents. http://www.nicholas.duke.edu/cgc/pnas2011.pdf
That’s just my two cents worth.
– MrJM
- Out Here In The Middle - Friday, Mar 8, 13 @ 10:25 am:
I know very little about the fracking issue but it was wonderfully refreshing to see a national news item about Illinois was NOT about corruption or pension/budget problems!
- 47th Ward - Friday, Mar 8, 13 @ 10:32 am:
We’ve got this thing and it’s fracking golden. And we’re not just going to give it away for nothing.
- Grandson of Man - Friday, Mar 8, 13 @ 10:33 am:
Great article. Illinois needs more jobs, and the best idea for helping solve budget deficits is new revenue.
This plan shows what good can happen when two opposing sides sit down and work out differences. This happened also in Chicago with McCormick Place, when labor made concessions so that it can have a smaller piece of a large pie rather than no pie at all. I think that the union involved in this (electrical workers?) and McCormick Place management went to DC to promote the deal.
- Former Titan - Friday, Mar 8, 13 @ 10:44 am:
For those who have seen “Gasland” I recommend “FrackNation.” It’s an independent documentary that attempts to counter some of Gasland’s claims. Worth viewing for a different perspective on fracking’s impact and potential.
- dupage dan - Friday, Mar 8, 13 @ 10:48 am:
There was a decent article in the Philadelphia Enquirer last year that discussed the issue and the movie. It does seem as tho the outcome of the issue showed that it was the leagage from the drill hole cement seal that accounted for the problem. Repeated tests of wells by various state and federal agencies failed to show that fracking chemicals were leeching into the ground water. There sure was alot of hard feelings on the part of residents who were pro/con on the issue. I have not been able to figure out how to create a link but for those who wish to seek the article, I found it on “philly.com”. The article was dated 8/27/12 and was written by an enquirer staff writer by the name of Andrew Maykuth.
Frankly, the idea that a driller should seal the well so that natrual gas doesn’t escape seems good business to me, since it is that very gas they are seeking to recover and sell. just sayin
- JoeVerdeal - Friday, Mar 8, 13 @ 10:58 am:
The film “Gasland” is a piece of propaganda that would make Dr. Goebbels proud. It has been thoroughly debunked.
The greatest fear of those who oppose oil and gas drilling in Illinois is that the first few wells will be drilled and it will become baldly obvious that they offer no harm to anyone. The extremists are straining to kill whatever prospects exist before they have a chance to get started.
- wordslinger - Friday, Mar 8, 13 @ 11:10 am:
–The greatest fear of those who oppose oil and gas drilling in Illinois is that the first few wells will be drilled and it will become baldly obvious that they offer no harm to anyone.–
Why would they fear that? Do they wish harm upon people?
What’s the hangup on movies, anyway? There’s a compromise deal on the table here in Illinois that needs to be looked at. Not every issue needs to be viewed as an extension of Cable-TV yakfests.
- MrJM - Friday, Mar 8, 13 @ 11:12 am:
“It has been thoroughly debunked and I will provide no support for that claim!”
How compelling!
– MrJM
- Pot calling kettle - Friday, Mar 8, 13 @ 11:37 am:
==One of the things the drillers do is take environmental assessments in the drilling areas prior to fracking operations being performed==
Actually, they should, but many do not. Therein lies some of the problems in PA. There is no way to know why the prior conditions were because the drillers did not test local wells prior to drilling.
While the gas is typically in rock units far below the surface, there are migration pathways (such as abandoned wells and natural fractures) that can connect those deep formations to surface aquifers and fracking can facilitate the movement of gas into those pathways.
The Bradley bill goes a long way toward addressing the concerns reasonable people can and should have about horizontal drilling and fracking.
- JoeVerdeal - Friday, Mar 8, 13 @ 11:52 am:
Need support MrJM? Here ya go!
http://www.energyindepth.org/wp-content/uploads/2011/11/Debunking-Gasland.pdf
If you Google it, there’s a lot more out there. This is just a small start on the subject. Enjoy!
- Lefty Lefty - Friday, Mar 8, 13 @ 11:55 am:
As a geologist by training and an environmentalist at heart I am glad to see government, industry, and the movement working together on this. From what I’ve heard at conferences, it’s probably a dead end and certainly no N Dakota-scale of gas production. But as long as the rules are in place there seems to be reason to allow the exploration to go forward.
- Small Town Liberal - Friday, Mar 8, 13 @ 12:31 pm:
- Need support MrJM? Here ya go! -
Right Joe, because if you can’t trust the Independent Petroleum Association of America to provide an unbiased opinion on their methods of extraction, who can you trust?
- Newsclown - Friday, Mar 8, 13 @ 12:59 pm:
BTW, fracking is good for something: killing the coal business.
Halliburton has created a non-toxic, biodegradable fracking fluid. It costs a bit more than the cancer-laden stuff used elsewhere. Which is why nobody in IL will use it UNLESS Springfield makes it mandatory.
- Milootis - Friday, Mar 8, 13 @ 1:10 pm:
All I will say is that any documentary should be taken with a huge grain of salt. Just like “reality” TV, the “reality” is subject to manipulation and can be made to be whatever the film maker desires it to be. After all is said and done, the film maker is mainly interested in getting enough publicity to make more films-truth and accuracy are likely a secondary concern
- Going nuclear - Friday, Mar 8, 13 @ 1:43 pm:
I think my biggest concern with the fracking legislation is DNR’s ability to oversee the new environmental safeguards that will be put in place. This agency has been decimated by budget cuts and staffing reductions. I hope this legislation results in additional staffing and improved management in DNR’s Office of Mines and Minerals that leads to effective monitoring and enforcement of the regulations.
- wordslinger - Friday, Mar 8, 13 @ 2:03 pm:
Going Nuke, those are great points.
If fracking ever takes off here at any level near that of North Dakota, I’d imagine the state would have to staff up in a hurry. And that probably wouldn’t be easy.
One hopes there’s some contingency planning going on within the administration. That’s what executives are supposed to do.
Also, I wonder if energy extraction and state parks and historic sites should really fall within the same department.
Don’t get me wrong — I think DNR and state parks and historic sites have been shamefully neglected over the years and need to be restored. But the missions don’t seem to be complimentary.
That brings you to the point of extraction fees. When you’re allowing private enterprise to profit from non-renewable state resources, some thought should be given to foundation funds for state conservation.
- girllawyer - Friday, Mar 8, 13 @ 2:57 pm:
Years ago Illinois had a separate “Department of Mines and Minerals”. I didn’t realize it had been absorbed into DNR.
- Amalia - Friday, Mar 8, 13 @ 3:01 pm:
Maybe the fracking matter will help all of us know more about the swamp now known as Chicago, the water that runs underneath the City and water movement in general in our state. one benefit of that, besides safe fracking, is more information that can help with flooding problems, residential sprawl, and infrastructure needs.
- Classical Gas - Friday, Mar 8, 13 @ 4:00 pm:
My only comment is that Illinois MUST either by law or contract PROTECT residents wells if they are contaminated by fracking. If you have livestock or a large family that depends on that well, they had better be prepared to financially compensate any incident of contamination. In addition, it would drastically drop your property values.
- wordslinger - Friday, Mar 8, 13 @ 4:03 pm:
–Maybe the fracking matter will help all of us know more about the swamp now known as Chicago, the water that runs underneath the City and water movement in general in our state.–
Amalia, one thing I know is that Chicago wouldn’t be as big as it is today if it didn’t reverse the river and start discharging treated (maybe not so much, back in the day) down to the Illinois rather into Lake Michigan.
Horrible chloera outbreaks in the city til then.
But you’re absolutely right about fresh water. Literally, can’t live without it. More precious than oil or gold.
Just like the High Plains collapsed and depopulated over lack of water, I imagine we’ll see the same in the future in the Southwest.
The Colorado is stressed, Lake Powell and Lake Mead are puddles, and the Ogalala Reservoir is under fire.
Watch your fresh water, folks. At the end of the day, it’s all that matters.
- Small Town Liberal - Friday, Mar 8, 13 @ 4:07 pm:
- they had better be prepared to financially compensate any incident of contamination -
As Rich mentioned, there is a presumption of liability near the fracking sites. So unless the drillers can prove they didn’t cause it, they’re going to have to pony up.
- Just The Way It Is One - Friday, Mar 8, 13 @ 4:10 pm:
Nice column–shucks, I never even knew such a thing as “fracking”existed up until about 3 months ago when I saw a couple of movie stars on the Late Show with David Letterman touting their latest movie heading to Theatres all about it…and now, here in Illinois, it’s obviously quite a big deal!
- Six Degrees of Separation - Friday, Mar 8, 13 @ 5:06 pm:
Watch your fresh water, folks. At the end of the day, it’s all that matters.
True, and the 5 Great Lakes have an abundance of it as well as some high quality groundwater aquifers in relation to the rest of the US. Who knows, in 100 years we may be pumping desalinated water from the coasts to the areas that need it. And you think there’s a lot of pipelines now.
- dupage dan - Friday, Mar 8, 13 @ 5:25 pm:
SDofS,
Your post is not clear about the pumping of water from the coasts - I assume you mean from east and west US rather than from Great Lakes coasts due to your reference to desalination. If so, ignore the rest of my post.
Pumping water from the Great Lakes anywhere is strictly regulated by a compact signed by the states surrounding the GLs and Canada. No water can be pumped beyond the watershed which is not as large as you may think it is. Western suburbs of Chicago can tap in but you get farther out - DeKalb say, and it ain’t gonna happen.
Most Chicago suburbs stopped pumping from wells years ago and laid pipe to the Lake to get water. The aquifer just couldn’t support the usage levels and were subsiding.
- Excessively Rabid - Friday, Mar 8, 13 @ 5:41 pm:
When I invested in oil wells in Christian County in the 1980’s, they were doing fracking at that time. They used it on new wells and they also treated older marginal wells that were producing very little to get a last gasp of production out of them. Whether the equipment and substances are the same as what we are talking about now, I don’t know. My feeling about the natural gas boom is go ahead but slow down. We don’t have to extract it all in the next five years.
- Kasich Walker, Jr. - Monday, Mar 11, 13 @ 8:24 am:
There aren’t justifiable cost benefit justifications for some forms of energy production & resource extraction.
Nuke power & fracking are two examples.
Safer alternatives exist.
The endorsements of popular environmental groups remind me of Arthur Andersen giving Enron unqualified audits,
- Kasich Walker, Jr. - Monday, Mar 11, 13 @ 8:54 am:
Look above.
“…justifiable justifications…”
Wow.
Incredibly incredible.