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Gas drilling study fee debated

By Timothy B. Wheeler, The Baltimore Sun

8:23 p.m. EST, March 6, 2012

A study of how or whether to allow a controversial drilling method for extracting natural gas in Western Maryland cannot be finished without funding, state officials told lawmakers Tuesday.

O’Malley administration officials joined environmentalists in supporting a bill that would pay for their year-old study of hydraulic fracturing by levying a fee on the estimated 150,000 acres leased for gas exploration in Garrett and Allegany counties. Business and oil industry representatives opposed the fee, arguing that it could dampen prospects for drilling to boost the economically depressed region.

The bill, heard by the Senate Education, Health and Environmental Affairs Committee, would raise about $3 million over the next two years by charging gas companies $10 per acre on leased land. Officials said they need perhaps $2 million to finish their study of potential problems and safeguards. Hydraulic fracturing, commonly known as “fracking,” involves extracting natural gas by pumping large quantities of water mixed with sand and chemicals to fracture or break up fuel-containing shale layers deep underground.

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Fracking opponents want fee on land leased for drilling; bill would create $10-per-acre charge

By Associated Press, Published: March 6

ANNAPOLIS, Md. — Opponents of using new hydraulic fracturing drilling techniques in western Maryland joined state officials Tuesday in asking lawmaker to support a fee to fund a study of potential environmental impacts.

Industry officials, meanwhile, turned out in Annapolis to warn members of a Senate committee not to turn away what could be an economic boon for two western counties.

The $10-an-acre fee would apply to lands leased for hydraulic fracturing, a drilling method that extracts the gas by blasting through layers of shale rock with a combination of water and chemicals. The bill would use the fee to pay for a study commissioned by Gov. Martin O’Malley.

Sen. Brian Frosh, a bill sponsor, said the governor has asked a state panel to examine the impacts “but it can’t fully do its work because it doesn’t have the money.”

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Buying or selling real estate in Garrett County or Deep Creek Lake, Maryland? Call Jay Ferguson of Railey Realty for all of your real estate needs! I take great pride in referrals, and I assure you, I will take great care of your friends, family & colleagues!

877-563-5350 – toll free