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Illinois’ ‘fracking’ bill to police natural gas
By TIM ALEXANDER
Illinois Correspondent

SPRINGFIELD, Ill. — As energy companies ramp up efforts to lease farmland in southern Illinois, the state Senate last week moved to regulate the sometimes controversial practice of hydraulic fracturing, more commonly known as “fracking.”

The practice involves injecting water and chemicals into the ground to facilitate the extraction of natural gas. It has been met with concern by environmentalists in many states where fracking is conducted by oil and natural gas companies – mostly over possible water contamination concerns. “I believe we’ve managed to find an almost perfect compromise on fracking regulation,” said state Sen. David Koehler (D-Peoria), who cosponsored the bill with seven other state senators and one representative. “Environmentalists believe it’s strong enough to protect our groundwater, but the industry doesn’t find it so onerous that it will prevent them from creating jobs in Illinois.”

SourceWatch reported in April that energy companies were contacting landowners to strike deals for mineral rights in southeastern Illinois, home to the New Albany Shale formation. Though gas has been extracted from the shale through drilling for more than a century, higher gas prices and new technology such as fracking have increased drilling activity.

Some test well drilling will likely occur in the coming weeks for natural gas liquids such as ethane and propane. Chicago Business reported the leases offered by energy companies could be attractive in southeastern Illinois, where economic opportunities are scarce. The companies are offering more than $100 per acre for leasing deals with farmers and landowners, with royalties on production of up to 17.5 percent to farmers, according to SourceWatch.

The U.S. Energy Information Admini-stration reported last year that recoverable natural gas reserves contained in the shale could reach 11 trillion cubic feet – just under half of the entire nation’s consumption during 2010. Though the figure was questioned by The New York Times, up to $100 million has been spent by energy companies this year in securing mineral rights from landowners in 19 Illinois counties in order to tap the shale.

Along with increased natural gas extractions in southern Illinois should come well-paying jobs for skilled area workers, an increase in tax revenue and a boost for area businesses serving workers and their families, proponents claim. “Although I believe it’s very important to keep developing environmentally-friendly green technology, we’re going to continue to need traditional fuels for the foreseeable future. I’d rather see those jobs here in Illinois,” Koehler said.

The measure requires well owners to appraise the Illinois Department of Resources on how much liquid they use in fracking, chemical usage and individual wastewater storage plans. The law also requires regular integrity tests of all equipment by owners.
The legislation, S.B. 3280, advanced to the Illinois House, where it was referred to the Rules Committee last week.

There the Senate bill will likely be married with H.B. 3897, sponsored by state Rep. Naomi D. Jakobbson (D-Cham-paign). “Hopefully, we’ll have these regulations in place long before the first well opens,” said Koehler.
5/9/2012