Geologists and energy prospectors have long suspected that much of north Georgia sits atop a potentially very lucrative oil and gas belt that extends northeast from central Alabama to southeast Tennessee. The area is all part of the Conasauga Shale Field – which may contain as much as 625 trillion cubic feet of natural gas, Rome and Dalton are part of it as well. “Wildcatters” have been interested in the area for years, occasionally setting up exploratory sites.
One problem though – Georgia’s oil and gas drilling laws haven’t been updated since 1975. HB 205, signed on Tuesday by Governor Deal, changes that. The new law allows the state’s Environmental Protection Division to regulate fracking and collect a severance tax of three cents per barrel of oil or one cent per thousand cubic feet of gas. It also allows local governments to impose their own taxes if they so wish, up to but not exceeding nine cents per barrel of oil and two cents per thousand cubic feet of gas.
There are also some prohibitions in the measure:
(1) The waste of oil or gas as defined in this part;
(2) The sale, purchase, or acquisition or the transportation, refining, processing, or handling of illegal minerals or illegal products;
(3) The sale, purchase, or acquisition or the transportation, refining, processing, or handling in any other way of any mineral, including oil and gas, or any mineral product without complying with this part or any rule or regulation of the board promulgated pursuant to this part;
(4) Intentionally or negligently permitting any gas or oil well to get out of control;
(5) The drilling of any well without a permit.
Such is the language of the law that although it says in one part “permits are required for drilling,” in another part it says it is “illegal to drill without a permit.”
The conservation community, including the Georgia Conservancy and numerous Riverkeeper organizations, was supportive of the bill. The Georgia Water Coalition even honored House Rules Chairman John Meadows (R-5 Calhoun) as one of its recognized “Clean 13” list which highlights public and private efforts to protect Georgia’s water.
“I’m a fan of fracking,” Meadows said, citing the need for U.S. energy independence. “But, I’m not a fan of fracking at the expense of our drinking water. I read some of the articles about things that had happened, particularly up in Pennsylvania, where whole cities and counties have had their water sources invaded. I don’t want us to have to go through that.”
The bill also allows for the creation of an Oil and Gas Board under certain circumstances. The Board would be created by the director of the Department of Natural Resources and would be allowed upon the receipt of at least 12 applications during a calendar year for any permit to drill for either exploration or production purposes. The Board would consist of the state geologist and three members appointed by the governor. They would be charged with reviewing and issuing permits and regulating drilling activity.
Whether any of this will make any further news remains to be seen but now that there are clearer regulations in place, and some support from communities and conservation groups, it may be a little easier for companies to take the plunge.
