EID Ohio: Permitting in the State Isn't a "Rubber Stamp" Process

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The Columbus Dispatch published an article last week that said:
Ohio oil and gas drilling regulations are some of the most industry-friendly around, with short waits for permits and almost no ability for local governments to put up roadblocks, say company officials.
The comments, made yesterday at an industry conference in Lewis Center, show some of the contrast between Ohio’s rules and those in other states or on federal land.
“Ohio is probably the most regulatory-friendly state I’ve operated in,” said Randy Albert, chief operating officer for gas operations at Consol Energy of Canonsburg, Pa. He said it takes 14 days to obtain an Ohio drilling permit, as opposed to more than 300 days on federal land.
Matt Hammond, senior director of Ohio government affairs for Chesapeake Energy, had a similar sentiment.
“Ohio is actually a pretty friendly state to operate in as far as permitting,” he said.
You can read the whole article here.  Not surprisingly, industry media firm Energy in Depth felt the need to fend off the notion that the efficiency of Ohio's process is also a deficiency.

Here's a small sample of what EID has to say:
A recent article in the Columbus Dispatch, entitled “Drillers: Ohio easy place to do business in,” left readers with the impression that Ohio has a rubber stamp system for permitting oil and gas development, and by extension a lack of proper scrutiny on safety and environmental protection. While it’s true that Ohio has an incredibly efficient permitting system, make no mistake: bringing a well online requires a heckuva lot more than a handshake and a couple of signatures.
In preparation for developing a well in Ohio — that means before securing an actual permit to drill — an operator must first fill out and submit an authority and organization form to the Ohio Department of Natural Resources (ODNR), specifically the Division of Oil and Gas Resources Management (DOGRM).  This form essentially acts as a registration of your company to develop oil and gas in the state.
Once the company has filed its notice to operate in the state, the company must next follow the bonding requirements set forth by Ohio Revised Code.  In addition to fulfilling the bonding requirements, companies must also make sure they meet the liability insurance requirements, also established by the Ohio Revised Code.  Both of these requirements must be met before the division will even consider moving forward with permitting.
It’s not a perfect analogy, but to put this in perspective: think about filling out those lovely forms at the DMV to get a driver’s license or license plates. Not exactly a fun and simple process, is it?
Read that whole article here. 

What do you think?  Are Ohio's regulations too industry-friendly?  Share your thoughts in the comments.

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