Fracking would provide economic benefits in a part of the state that badly needs them. But the current economy depends on tourism, including Deep Creek Lake, where many fear roads are not designed to accommodate truck traffic increases. A state level sales tax equivalent on motor fuels was passed in 2013 that focused heavily on transit investment. But Governor Hogan has expressed a willingness to invest instead on highways, and it could provide funding for needed infrastructure. Until now, progress has come in fits and starts, leading to a two-year moratorium that ends in 2017. In June 2011, then-Governor Martin O’Malley created the Marcellus Shale Safe- Drilling Initiative Advisory Commission to study the issue. It issued its final report in December 2014 stating that risks could be managed if best practices were followed and the state monitored and enforced compliance. The standards were strict but manageable. Governor Larry Hogan issued proposed fracking regulations in January 2015. In 2015, the General Assembly passed a law requiring the Department of the Environment to adopt regulations by October 1, 2016 and preventing the issuance of any permits for drilling until October 1, 2017. In September 2016, the department issued its final regulations that imposed the country’s highest safety standards. When drilling through potential drinking water
26 BEHIND THE WHEEL — Q4 Winter 2016
sources, operators can use only air- or fresh water-based drilling fluid as well as additives safe for drinking water. Strict standards were created regarding well construction and well pads. The proposed regulations were very specific to trucking, including the requirement that trucks have GPS systems and 2004 or later model engines. Idling is to be limited to five minutes except for engines kept in ready reserve.
Fracking would provide economic benefits in a part of the state that badly needs them. But the current economy depends on tourism, including Deep Creek Lake, where many fear roads are not designed to accommodate truck traffic increases.
Permit applicants are required to submit plans to ensure truck traffic has minimal conflicts with the public, avoids school buses, and minimizes conflicts with hunting and fishing.
Even if the regulatory environment
is cleared, it could be a while before any activity actually occurs. The new technologies have led to increased production of both oil and natural gas, depressing prices. According to Drew Cobbs, executive director of the Maryland Petroleum Council, five years ago more than 100,000 acres in Maryland were leased for development, but now the leases have largely expired
and companies have moved elsewhere. The fracking industry also represents a business opportunity for some carriers. Tanker trucks are needed to haul water, sand and chemicals, while flatbed trucks are used for piping and cement. The amount of truck trips depends on various factors such as the well’s depth and geology. Unlike oil, most of the work for motor carriers is available during drilling, not production, when the product is shipped using pipelines. Also, the petroleum industry is cyclical. North Dakota bet big on the technology when it was introduced, leading to temporary housing and services that are not nearly as needed now that prices are down. Drivers were enticed to move to the area and were being paid well, but have since moved to other opportunities.
But motor carriers are accustomed to up-and-down cycles, and it’s still an opportunity. As Campion said, “Whenever people talk about fuel prices being so low and the like, I think that is short-sighted just to base … major policy decisions around fuel prices today, because we know they’re going to go up.”
As a fuel source for motor carriers, natural gas has not fulfilled the promise of a few years ago. The same technology that made natural gas more available also opened up drilling opportunities for oil. Prices for diesel fell to levels that eliminated natural gas’ price advantages.
mmtanet.com
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