2 companies chosen to frack for oil and gas under Ohio state park, wildlife areas

An Ohio commission picked West Virginia-based Infinity Natural Resources to drill for oil and gas under Salt Fork State Park in a Monday meeting where opponents protested with signs, yelling and tears.

The Ohio Oil and Gas Land Management Commission also selected Texas-based Encino Energy for fracking under Valley Run Wildlife Area in Carroll County and Zepernick Wildlife Area in Columbiana County.

Stay informed: Sign up for our weekly Scoop newsletter for the latest on Ohio politics.

Fracking, or hydraulic fracturing, is a method that injects water, sand and chemicals into the ground to create new fractures in rocks and extract natural gas, oil and brine. Environmentalists oppose the process, saying it can result in chemical spills at the surface, groundwater quality contamination and induced earthquakes, according to the U.S. Geological Survey.

Monday's meeting cleared the way for the companies to receive leases. Each lease includes a 12.5% royalty paid to the state for production. In addition, the Ohio Department of Natural Resources will receive $59.7 million in lease bonuses.

In its application, Infinity Natural Resources stated it intended to begin drilling under Salt Fork State Park by Jan. 1, 2025.

Monday's votes came about three weeks after an undisclosed number of companies applied to frack under state lands. The bids for oil and gas drilling under Salt Fork State Park, the state's largest, were approved, 4-1. Commission member Matthew Warnock, a representative of the oil and gas industry, declined to explain why he voted "no."

Some of the land under the Salt Fork State Park was not approved for fracking because Encino Energy rescinded its bid and Ascent Resources wanted to frack only a portion of it, making that offer invalid.

"Encino takes a disciplined approach to deploying capital sustainably, guided by commercial factors and market dynamics aimed at mitigating risk and maximizing value for our stakeholders," Encino spokesperson Jackie Stewart said of its decision. "We remain enthusiastic about the Utica’s oil, liquids and gas potential and we continue expanding our position in the play.”

State law prohibits the commission from disclosing who applied until after it picks a winner. Opponents of fracking under state parks have criticized the application process as secretive and inaccessible to the public.

'A sad day' or a win for Ohio?

Ohio Oil and Gas Association President Rob Brundrett called Monday's votes “a big win for the state of Ohio" and the culmination of a "fair and equitable process."

"Our members are committed to responsibly developing these resources in the safest and most environmentally sound manner using today’s most advanced technologies," Brundrett said. "We are committed to work with the communities our members operate in and are excited for Ohio’s future.”

Infinity Natural Resources, which is based in Morgantown, W.Va., has 72 fracking permits in Ohio − nearly all of those are in Carroll County. In its application, the company proposed developing the land under Salt Fork State Park from two well pads to reduce the environmental impact.

The company's CEO Zach Arnold grew up in Washington County and attended Marietta College, according to the application. "As an avid trail runner and nature enthusiast, he recognizes the imperative to keep these parks in their pristine and wild state."

However, Save Ohio Parks' Cathy Cowan Becker called the decision "highly disappointing but not unexpected." She was surprised that Infinity Natural Resources won the Salt Fork State Park bid instead of Encino, which was already building well pads next to the park.

At Monday's meeting, fracking opponents held signs that read: "Gov. DeWine, don't be a climate criminal" and “The world is a beautiful place so why are we destroying it?” Some wore sacks with phrases like "extinction" and "climate chaos." One questioned what assurances they had that surface drilling would be banned under future administrations.

Terri Sabo, who has lived just outside Salt Fork State Park for 44 years, broke down when the commission announced its pick for fracking under the park. "It's just a very sad day."

Environmental groups sued over the 2022 state law that allowed fracking under state parks to move forward and over the commission's November decision to open bids. On Friday, Franklin County Common Pleas Court Judge Jaiza Page dismissed the second lawsuit, ruling there was nothing to appeal yet.

Jessie Balmert is a reporter for the USA TODAY Network Ohio Bureau, which serves the Columbus Dispatch, Cincinnati Enquirer, Akron Beacon Journal and 18 other affiliated news organizations across Ohio.

This article originally appeared on Cincinnati Enquirer: 2 companies chosen to frack under Ohio state park, wildlife areas