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Idaho might soon be cooking with gas

by CHUCK MALLOY/Guest Opinion
| September 9, 2015 9:00 PM

Granny, Jethro, Elly May. We struck oil and we's movin' to Hollywood. Eeeee-haw!

The gold rush is over, and the natural gas rush is on in southwestern Idaho, which leaves some folks clicking their heels like Jed Clampett. One energy company, Alta Mesa, reportedly has invested $150 million in preparation for exploration, and the Department of Lands is laying the groundwork for drilling and extraction.

Tom Schultz, director of the Department of Lands, says Payette, Wash., and Gem counties appear to be the best areas for natural gas - putting a few more "treasures" in the Treasure Valley. Ed Ratchford, director of the Idaho Geological Survey office in Moscow, said time will tell how much natural gas is lying below the surface, but he is optimistic about the prospects.

"We're on the ground floor," he said. "I have been on several field trips, and what I've seen so far is encouraging."

Schultz says Idaho isn't likely to see anything on the level of North Dakota, Wyoming and other oil-rich states, but natural gas could provide a significant industry to the Gem State.

Idaho Lieutenant Governor Brad Little has a dual interest in development - one as a political leader who works to bring new industry to the state, and the other as a landowner with mineral rights in the area. A new industry would mean more money for schools and state and local governments, which is of interest to the entire state. Little says fuel production also would give Idaho a competitive boost.

"The states we compete against (such as North Dakota and Wyoming) are the ones where the economy is underwritten by energy production," Little said. For ranchers in the area, the prospects for development come at a time when prices for cattle and agriculture commodities are down.

"I can tell you, being in the ranching business, the profit per acre on a range is a really small number, but it's there for a long, long time. You put oil and gas in there, and that's real money," Little said. "When those checks start showing up in New Plymouth, Weiser and Payette, they're going to sell a few more pickups. There might be kids going to college who otherwise wouldn't go to college."

Interest also is high among legislators in the area, such as Rep. Judy Boyle of Midvale, who represents District 9.

"All new wealth comes from the earth, whether it is grown, mined or logged," she said. "District 9 is one of the poorest in the state with high unemployment rates resulting in too many citizens dependent on government handouts. More employment opportunities equal fewer taxes needed for dependent services."

It also could boost revenue for Idaho endowment lands, benefiting from royalty payments on the land. That means more money for schools, she said.

Little and others have reason to be excited about a new industry, but it's a stretch to say it could replace mining and logging in North Idaho.

"It will be money to the area, but there won't be a lot of jobs as with timber and mining," Little said. "There would be jobs initially with the drilling, but after that it would go pretty much on auto-pilot and there will not be a lot of human capital."

It's not all clear sailing in southwestern Idaho. Opposition has been expressed on several fronts, and a report from the College of Natural Resources at the University of Idaho outlines several concerns - chief among them are environmental risks.

"Water quality is the primary concern associated with developing known oil and gas resources in Idaho," the report states. "Human safety and community well-being are also issues, as is wildlife habitat." The report states that risks can be reduced through "careful planning."

In other words, it must be done right. Little says any drilling and extraction must be "compatible with our environment" and there must be transparency with the process. "It's a good deal, but that doesn't mean we shouldn't be careful."

Schultz says he's doing his part. This month, he appeared at a forum sponsored by District 9 legislators in which he explained the process and fielded questions. If drilling occurs, an inspector from his department will be on site to ensure that the groundwater is protected. Any other activities must comply with myriad rules and regulations, and Schultz says his department will make sure that happens.

"That's my job," he said.

Chuck Malloy is a Silver Valley native and longtime political reporter and editorial writer. He is a former political editor with the Post Register of Idaho Falls and a former editorial writer with the Idaho Statesman.