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Illinois and fracking
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Energy companies are leasing farmland in southern Illinois, which is situated above the New Albany Shale, a large geologic formation that contains natural gas and oil shale deposits, including byproducts like ethane (used for propane and plastics). The Shale is difficult to access without fracking. As of April 2012, up to $100 million has been spent to secure mineral rights in nineteen counties considered favorable for gas exploration.[1]
A 2011 report by the U.S. Energy Information Administration estimated recoverable natural gas reserves in the New Albany shale at about 11 trillion cubic feet, or slightly less than half of what the entire nation consumed in 2010.[1] (A N.Y. Times analysis later questioned EIA estimates of shale gas reserves, saying they rely heavily on industry estimates and press releases.)[2]
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Introduction
On April 5, 2012, it was reported that energy companies are moving to strike lease deals with landowners and mineral rights owners in the southeastern part of Illinois, with the first test wells in the region expected to be drilled in the next month or two. If some of the wells are successful, it is expected to lead to more leases and drilling. Energy companies in Illinois are seeking natural gas liquids like ethane, a component in making plastics and the fuel propane, which is fetching higher commodity prices than heating-quality natural gas, the price of which has plummeted as supplies have surged with fracking.
Chicago Business noted that the leases could be attractive in places like Wayne County, a mainly farming area 270 miles south of Chicago, where economic opportunities are scarce. Companies are reportedly paying more than $100 an acre for leasing deals with owners, with royalties on anything produced at up to 17.5 percent.
Legislation moving through Springfield would require drillers to disclose the chemicals used and establish standards for concrete well casings and waste-water storage. The bill, sponsored by Sen. Michael Frerichs, D-Champaign, and backed by the group Faith in Place, is supported by the oil and gas industry after negotiations. The Senate is set to take it up in April 2012.[3]
History
New Albany Shale, Illinois Basin
Southeastern Illinois is home to the New Albany shale formation.[4] The Devonian-Mississippian New Albany Shale also stretches to Indiana and Kentucky. The New Albany shale has been drilled for gas in this area for more than 100 years, but higher gas prices and new, well completion technology have increased drilling activity. Wells are 250 to 2000 feet deep. The gas is described as having a mixed biogenic and thermogenic origin.[citation needed]
Citizen activism
March 2012: Illinois residents take on fracking
Several Illinois organizations state that fracking is not safe. One group includes Southern Illinoisans Against Fracturing Our Environment, or S.A.F.E., which is trying to warn homeowners that it could do a lot more damage than energy companies are leading on. The groups are forming a campaign to educate the public about fracking issues in the state.[5]
Legislative issues and regulations
SB3280 and HB3897 (2012) - would require drillers to disclose the chemicals used in fracking and establish standards for concrete well casings and waste-water storage. The Senate is set to take up SB3280 in April 2012.[6] An earlier bill, SB664, originally included language to require chemical disclosure and wastewater management, and to prohibit the use of benzene and other volatile organic compounds. After lengthy negotiations, the provisions were eliminated from the legislation that passed the Senate before failing to clear the House in 2011. The bill was reintroduced as SB3280.[1] The new disclosure bill uses language from ALEC model bills providing large loopholes for companies wanting to protect their fracking chemical “trade secrets.” According to the New York Times, the legislation was sponsored by ExxonMobil.[7]
HB4312 (2012) - would establish a twelve percent tax on oil and gas revenues.[1]
It's been reported that carefully crafted legislation in Illinois is expected to move forward this year. A bill establishing fracking rules almost passed in Illinois in 2012 with support from industry and environmentalists -- but failed after it was gutted and replaced with moratorium language.[8] The taxes would also take more than a year to reach residents in areas where fracking operations will have direct impacts.[9]
Citizen groups
Industry groups
Reports
Resources
References
- ↑ 1.0 1.1 1.2 1.3 Michael Piskur, "Don't Drink The Water? The Race To Keep IL Water Clean Before Fracking Begins," Progress Illinois, April 4, 2012.
- ↑ Ian Urbina, "Behind Veneer, Doubt on Future of Natural Gas" NY Times, June 26, 2011.
- ↑ Steve Daniels, "Fracking comes to Illinois, for better or worse," Chicago Business, April 05, 2012.
- ↑ Steve Daniels, "Fracking comes to Illinois, for better or worse," Chicago Business, April 05, 2012.
- ↑ "Residents Take On Fracking Companies" WSILTV.com, March 25, 2012.
- ↑ "What is Fracking?" Faith in Place, accessed April 2012.
- ↑ Mike McIntire, "Conservative Nonprofit Acts as a Stealth Business Lobbyist," New York Times, April 21, 2012.
- ↑ "New year prompts slew of fracking bills" Energy Wire, Ellen M. Gilmer, Feburary 20, 2013.
- ↑ "For Illinois counties, fracking taxes could be too little, too late" Julie Wernau, Chicago Tribune, March 31, 2013.
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External links
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