Members of newly formed Idaho Petroleum Council present to interim Energy, Environment and Technology Committee

Council members include representatives from oil and gas companies, Bridge Energy and others who cite Idaho, with its geographic landscape, as a state with potential to be an important part of solving our nation's energy challenges.

Members noted that concerns about aquifer contamination don’t take into consideration the fact the seismic data that show the shallowest gas reservoir is at 1650 feet. The clay sands at the top (the deepest of which is 216 feet) hold the aquifer. There is further protection for the aquifer from surface casing used in the well drilling process, which extends a concrete and steel barrier down to 700'.

While some fracturing processes are designed to create reservoirs out of shale, the process proposed by Bridge Energy, representatives say, is more akin to “cleaning lint out of the dryer, allowing gas to flow,” with the amount of fluid injected equaling about the same as one and a half back yard swimming pools.

Representative Wendy Jaquet noted a Public Television program in which someone said that the ingredients in the injection fluid were proprietary information and did not need to be made public. Current rules of the state of Idaho would seem to be counter to that sort of secrecy.

Bridge Energy representative Kim Parsons noted that her company has maintained complete transparency as to injection materials.

The council presentation focused on three specific areas:

The Importance of Consistent Regulatory Framework – Such framework ensures good compliance, takes advantage of well understood programs administered nationally, and helps operators understand expectations. Idaho state statute is based on IOGCC Model Statutes and regulatory issues that govern hydraulic fracturing including acts focusing on air and water quality, the National Environmental Policy Act, OSHA, Emergency Planning and Community Right-to-know Act, and the National Pipeline Safety Act.

Economics - Arkansas commissioned a study in 2005 and 2009 as to the economic benefits in Arkansas and Council representatives have developed some estimates for Idaho based upon direct activities, extraction, production and supply chain. Industry employees are paid more than twice the average compensation in Arkansas. In 2007, the combined direct economic impact was $1.7 billion and 3776 jobs, indirect sources accounted for another 4,000 jobs and $400 million and state taxes of $54 million. The oil and gas industry is the only industry that receives no federal subsidies. Comparing these figures to Idaho specifics, this would equate to combined state and local taxes of $206 million, and additional revenues from severance taxes and royalties.

Environmental Considerations – With regard to protecting Idaho's water, council representatives cite physical and regulatory mechanisms already in place, including the design of the well with multiple layers of cement and steel in the bore hole, mechanical integrity testing, annual pressure monitoring and adherence to substantial federal and state rules and regulations.