Oklahoma next to ban drilling bans

OKLAHOMA CITY, June 1 (UPI) -- Oklahoma's governor said a "patchwork" approach to oil and gas regulation wasn't in the state's interest, reaffirming a state entity as the sole overseer.

Gov. Mary Fallin signed a bill establishing the state's Corporation Commission as the sole regulator of the oil and gas industry in the state.

"The bill aims to preserve a unified regulatory framework for the industry and prevent a confusing patchwork of inconsistent municipal regulations across the state," her office said in a statement. "A patchwork of regulations that vary across the state would be inconsistent with the goal of reasonable, easily understood regulations and could damage the state's economy and environment."

Fallin's signature follows last month's signing by Texas Gov. Greg Abbott of a law that prevents city-level ordinances against hydraulic fracturing. Abbott said the bill does a "profound job" of protecting property owners from the "heavy hand" of local regulation.

In a May estimate, data from oil field services company Baker Hughes show 108 active rigs in Oklahoma and all of them are exploring for oil. Oklahoma is the No. 5 oil producer in the nation and analysis from energy consultant group Wood Mackenzie finds investments in the region could top $4 billion for 2015.

Industry group American Petroleum Institute last week characterized Oklahoma as a global leader in terms of production. If it were a country, Oklahoma would rank 31st in the world in oil production, API said.

Fallin's signature established Senate Bill 809 as law. It prohibits municipalities from issuing moratoriums on drilling operations, but keeps in place their authority to "adopt reasonable ordinances, rules and regulations concerning traffic issues, noise, fencing requirements and placing of drilling rigs."

"We need to let these [state-level] experts do their jobs," Fallin said in a statement. "The alternative is to pursue a patchwork of regulations that, in some cases, could arbitrarily ban energy exploration and damage the state's largest industry, largest employers and largest taxpayers."

Fallin's administration in the past has took notice of the increase in the number of seismic events related in part to drilling operations in her state.

The Oklahoma chapter of the Sierra Club said days before the bill became law that no state entity can address all the potential issues a town or city may face. With nearly a century of precedent at stake, Johnson Bridgwater, the chapter's executive director, said it was "absolutely wrong" to strip some of the authority away from citizens or local leaders.