Video courtesy of Rod Bryan at the Arkansas Conservation Alliance
John Williams keeps a pretty keen eye on the legislature. He has more to say about HB 1026, which has received a lot of attention in this space. Check out more from John at the Legislative Beat. Be sure to read down to the bottom for comments from Sen. Joyce Elliot, who says it's bad public policy for the interest being regulated to be in the majority on a commission doing the regulating.
Although they are frequently drowned out by braying over guns in church or what have you, there have been quiet debates this session over several issues that could have an major practical impact. One such debate came to a head yesterday when the Senate voted to require that a majority of the Oil and Gas Commission be experienced in the business of oil and gas.
On its face, this is not an objectionable proposal. I’d really not paid it much mind until yesterday. You want people who know how the technology works on the commission, right? Besides, if earlier testimony on the House floor is to be trusted — not always a given, I’ve found — the Oil and Gas Commission has traditionally been controlled by a majority in the business. The current law says four members have to be experienced; the change just reflects that the commission has expanded from seven to nine in recent years.
Yet a review of the gas industry in Arkansas and look at the Oil and Gas Commission’s responsibilities brings second thoughts.
Let’s take the latter first. As stated by Arkansas Code 15-17-110, the Oil and Gas Commission is to require that wells be drilled, operated and plugged so as to “prevent the pollution of fresh water supplies and unnecessary damage to property, soil, animals, fish, or aquatic life by oil, gas, or salt water.” And witness the commission’s own mission statement:
The purpose of the Arkansas Oil and Gas Commission is to serve the public regarding oil and gas matters, prevent waste, encourage conservation, and protect the correlative rights of ownership associated with the production of oil, natural gas and brine, while protecting the environment during the production process, through the regulation and enforcement of the laws of the State of Arkansas.
In short, the Oil and Gas Commission is charged with significant stewardship over the environment. But I think it’s safe to say that clean water is not the first thing on a gas driller’s mind when there’s a bonanza to be had.
Which brings us to the current state of the gas industry in Arkansas. The Fayetteville Shale has changed the game. A majority of energy people on the Oil and Gas Commission did not have the same impact a decade ago as does now, when drilling is exploding to unheard of proportions.
Sen. Joyce Elliott, who led a floor debate against the measure yesterday afternoon, brought up some of these concerns in a later interview.
More on the jump including comments from Sen. Elliot“It’s bad public policy to guarantee that the interest being regulated is in the majority,” Sen. Elliott said. “The future consequences could be devastating for the state.” She was concerned that the bill will tie the hands of future governors. She added that members of the commission should be selected because they will serve the state’s interest, not because they represent a particular industry.