A recent study led by researchers at Binghamton University, State University of New York, and UNLV sheds light on the strategies employed by energy companies to secure permissions for hydraulic fracturing (fracking) from landowners, even resorting to legalized compulsion when faced with refusals.
Benjamin Farrer, the lead author and former PhD student at Binghamton University, emphasized the importance of considering the individual experiences of those closest to the fracking issue, beyond the broader climate and economic implications.
Given that many fossil field reservoirs in the U.S. are situated under private land, energy firms often engage in negotiations with landowners, offering compensation for access to the minerals beneath their properties. However, challenges arise when landowners resist for various reasons such as concerns about health risks, financial considerations, or inaccessibility.
Compulsory unitization, a legal mechanism in several oil- and gas-producing states, comes into play when a portion of the land above an oil/gas reservoir is already permitted for drilling. This law allows the remaining landowners to be compelled to participate in the drilling process.
Robert Holahan, an associate professor of political science at Binghamton University, highlighted how compulsory unitization, while beneficial in traditional vertical drilling scenarios, can impose lease agreements on mineral owners who are reluctant to participate in fracking due to the horizontal nature of the drilling process.
The research team, including Holahan, Farrer, and former Binghamton students Kellyanne Allen and Tara Riggs, analyzed data from Ohio, a state that experienced a fracking boom in the 2010s. By examining compulsory unitization applications in Ohio from 2014 to 2021, the team uncovered instances where energy companies employed persistent and personalized tactics to secure permissions, often resulting in compulsory agreements rather than voluntary consent.
The study also revealed that compulsory unitization is utilized across various landowner profiles, indicating a broader application beyond economic holdouts or unreachable landowners.
Holahan stressed the need for continuous legal adaptation to evolving technologies to ensure effective resource policy. The researchers are currently verifying their findings through a follow-up survey and exploring public opinions on drilling and renewable energy sources in the Twin Tiers region to gauge perceptions of ‘green energy’ versus ‘conventional energy’ among property owners.