American Oil and Gas Reporter - January 2015 - 187

Illinois Oil & Gas
Association
TODD SHULMAN
Vice President
Shulman Brothers Inc.
Vandalia, Il.

FROM THE PRESIDENT
In preparation for this year's Presidential Paper, I reread last year's paper,
thinking it might provide some ideas or
inspiration. I am not sure I gained much
in the way of inspiration, but I was reminded of precisely how difficult and tumultuous 2014 proved to be.
In June 2013, a bill regulating horizontal high volume hydraulic fracturing
(HVHF) was signed into law by Governor
Patrick Quinn, who seemed quite uncomfortable with even the appearance of
support for oil and gas development. He
touted the bill as creating the toughest
environmental protections in the nation,
but was largely silent on the huge potential
economic development.
Quinn was defeated in the November

2014 election and will be replaced by
Bruce Rauner. The governor-elect based
his campaign on reversing Illinois' economic freefall. Rauner, unlike his predecessor, made the potential for large scale
oil and gas development utilizing HVHF
a cornerstone of his economic agenda.
Contentious Negotiations
This time last year I commented that
the HVHF legislation and rule making
were largely behind us. I did not know
the Quinn administration and the Illinois
Department of Natural Resources would
take more than 500 days to complete the
rules. The delay was a de facto moratorium.
IDNR attributed the delay to the huge

volume of submissions filed during the
public comment period. However, more
than 30,000 comments were of the "fracking is bad" sort or criticized the legislation.
These remarks were irrelevant to the rule
making and should have been ignored.
Instead, IDNR vetted and deliberated
over every comment, no matter how superficial.
IDNR finalized the rules in the first
week of November. On Nov. 6, only days
after the election, the Joint Committee
on Administrative Rules approved the
regulations by unanimous vote. One court
challenge to place an injunction on the
rules' publication already has been heard
and rejected. It is safe to assume more
frivolous litigation will follow.
Last year's Presidential Paper also
lamented how the contentious HVHF
rule negotiations had created friction between the industry and IDNR. Particularly
upsetting was the lack of communication
between producers and regulators. The
Oil and Gas Advisory Board, which for
years had served as the conduit for open
communication, was largely disbanded
and completely shut out of the HVHF
rule discussions.
Claiming pressure from environmental
groups, IDNR began an enforcement initiative without warning that resulted in a

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JANUARY 2015 187



American Oil and Gas Reporter - January 2015

Table of Contents for the Digital Edition of American Oil and Gas Reporter - January 2015

Contents
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American Oil and Gas Reporter - January 2015 - Cover3
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