Senate advances bill changing DNR oil, gas permits

Missouri has a growing problem that means the Natural Resources department needs more people, state Sen. Mike Kehoe told colleagues Wednesday.

The Senate gave first-round approval to Kehoe's bill allowing DNR to change its fee structure for oil and gas permits - a change that could mean an increase in "fracking" in the state, several senators said.

"Missouri, believe it or not, has had a dramatic increase in the number of oil and gas wells, as technology has increased on how to develop products across the state," Kehoe, R-Jefferson City, explained.

"The number of producing wells and annual oil and gas permits has increased dramatically, from 12 new permits and 205 wells in operation in 2002 - to 618 new permits and 1,674 wells in operation in 2013.

"But there's been no additional resources to support this increased workload."

Kehoe said the industry wants additional DNR staff and support for permitting and technical assistance, and his bill is needed to give authority to the state Oil and Gas Council to advance a fee structure for Missouri oil and gas development.

State Sen. Rob Schaaf, R-St. Joseph, asked Kehoe if the bill makes "fracking more regulated in the state."

"Hydraulic fracturing" - commonly called "fracking" - is a process of drilling for oil and gas deposits, particularly in areas where traditional wells have been expensive or only marginally successful.

"Some people are concerned about fracking, concerned that it's an environmental hazard," Schaaf told Kehoe. "I don't think there's a consensus that fracking is such a good thing.

"I freely admit that it creates jobs, but some people have concerns that it allows for a lot of pollution to be injected down into the ground, and that some of that can come up around loose casings and get into the groundwater, and so on."

The Senate adopted Sen. Gary Romine's amendment spelling out an appeals process for permitting decisions.

"This came about last year, as we were working with the frack-sand mine issue in Ste. Genevieve County," the Farmington Republican explained. "The department and the mining industry liked the process and wanted to see it applied to all five commissions" - including the Hazardous Waste Management, Safe Drinking Water, Air Conservation, Clean Water and Missouri Mining commissions.

Kehoe said the changes help the industry's desire "to be able to get permitting faster" and have DNR officials visit proposed mine sites more quickly, "so (they) can go out on the job and go quicker."

The bill also includes the proposal to redefine the "waters of the United States" as "all waters within the jurisdiction of the state," so DNR and not the federal Environmental Protection Agency would monitor and regulate the clean water laws.

Kehoe acknowledged many people don't like the way DNR enforces its regulations - but they like the federal EPA even less.

Wednesday's approval came on a voice vote. A final, roll call vote is needed to adopt the proposed law and send it to the House.

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