Ohio Sets an Example in Supporting Conventional Oil and Gas

Despite common perceptions, most conventional producers are not large corporations with unlimited resources. We are small, family-owned businesses that work hard to produce the energy Americans rely on, while facing the same economic pressures as other small businesses.

Our success depends on many factors we cannot control. Commodity prices fluctuate unpredictably, and a downturn can quickly erase already-thin profit margins. Meanwhile, the costs of equipment, materials, fuel, insurance, and labor continue to climb.  One of the greatest burdens is increasing regulatory requirements.

Regulations are necessary to protect public health and the environment. However, regulations should also recognize the differences between the high pressure-high volume shale wells, and our low pressure-low volume conventional wells. The risks are different—shale wells use many articles of equipment, where the high pressure and volumes present opportunities for significant methane leakage.  The small and more numerous conventional wells simply can’t leak that much methane.  In fact, federal projections say that what conventional wells produce overall is close to what shale wells leak! Imposing the same expensive leak detection requirements on shale wells and conventional wells is as ill-fitting as imposing semi-truck regulations on a Volkswagen.

Ohio is leading the way on addressing this problem.  Ohio’s Concurrent House Resolution 47 urges the U.S. Environmental Protection Agency (EPA) to reconsider portions of its Methane Rule that disproportionately affect small operators.  Ohio encourages the EPA to:

• Exempt low-production wells from certain methane requirements.

• Recognize conventional operations as "small well sites" rather than regulating them the same as large shale operations.

• Extend regulatory flexibility already granted to Alaska to remote areas without electrical service and to regions with extended freezing temperatures.

• Provide an exemption for marginal wells producing fifteen barrels of oil equivalent per day or less.

These recommendations are not about avoiding environmental responsibility. They are about recognizing that one-size-fits-all regulations fail to account for the realities of small conventional operations. Rules designed for large, high pressure-high volume shale wells can impose disproportionate costs on small well operators. In many cases, those costs can determine whether a family business continues operating or closes its doors.

Ohio lawmakers have also taken another important step by enacting Senate Bill 219. Now signed into law, the legislation clarifies the role and authority of the Ohio Division of Oil and Gas Resource Management, providing greater regulatory certainty for operators throughout the state.

Ohio's actions deserve recognition. By acknowledging the unique circumstances of conventional oil and gas producers, state leaders are demonstrating that environmental stewardship and economic opportunity do not have to be opposing goals.

Small, independent oil and gas producers play an important role in supplying affordable domestic energy, supporting local economies, and sustaining thousands of jobs. Policies that recognize the differences between conventional and large-scale operations help preserve those contributions while maintaining responsible environmental standards.

Ohio has shown that practical, balanced policymaking is possible. Pennsylvania—and federal regulators—should take notice.