Legislative hearing set for Sidney on Tuesday

Members of the Nebraska Legislature's Natural Resources Committee will be in Sidney on Tuesday as part of an ongoing study into how the oil and gas industry is regulated in the state.

A Legislative fact-finding hearing will be held in the Sidney High School Performing Arts Center from 9 a.m. to 1 p.m. for a pair of reviews examining the Nebraska Oil and Gas Conservation Commission.

The Commission, based in Sidney since its creation in 1959, approved an application for a commercial wastewater disposal well near Mitchell in April.

That decision raised the ire of some state lawmakers, residents and environmental organizations.

Sen. John Stinner, of Gering, said he introduced a bill last legislative session initially regarding the specific application approved by the Commission.

"[The legislation] then morphed into a whole lot more," he said. "Obviously, local media has picked it up, statewide media has picked it up – along with constituents in my district concerned about things like water quality, things like traffic."

New questions subsequently arose, he said.

"So that's what this legislative review is about – to look at the issues, to see what, today, is in place with the Oil and Gas Commission as it relates to regulation," he said, "and then take a look at what the issues are and have expert testimony on those issues, and then try to make some kind of recommendation to the Oil and Gas Commission."

Stinner said he intends to work within the Commission to introduce any recommendations.

"I'd just as soon it happen within the Commission, simply because when we pass legislation, sometimes we get outcomes that we don't like, and sometimes it's too rigid – as opposed to allowing the Oil and Gas Commission some level of flexibility depending on what is happening in the industry."

The process could include further review, he added.

"It may end up as a process where we actually have additional experts come in and take at look at various areas so that, at the end of the day, the Oil and Gas Commission has a mechanism to communicate what they do and how they do it, and assure the people that they're doing it in the right fashion," he said.

On Tuesday, experts will talk about numerous issues, Stinner said, including seismic activity and water quality, as well as testimony from individuals working within the oil and gas industry.

"We've tried to line up a fairly comprehensive group of folks to give testimony," the lawmaker said. "And certainly, anybody who wants to give testimony one way or the other will have that opportunity."

A second hearing scheduled for Monday, stemming from a Legislative Resolution introduced by Sen. Ken Haar, will study eliminating the Commission altogether and incorporating its duties into other agencies.

Oil and Gas Commission Director Bill Sydow said the role of the Commission is to regulate the oil and gas industry in Nebraska.

"The Commission was first set up by the people of Nebraska through state law by the Legislature in 1959," he explained. "It's always been headquartered in this town – it's one of three state agencies that are not headquartered in Lincoln."

The agency's three commissioners are appointed by the governor, undergo an appointment process and are ultimately voted upon by the full Legislature.

"Our commissioners, historically, have always been someone from, generally, the Kimball area, Sidney area, Big Springs or Southwest Nebraska.

The current commissioners are Thomas Oliver, Robert Goodwin and John Rundel.

If you go

What: Legislative hearing regarding the Sidney-based Nebraska Oil and Gas Conservation Commission

When: Tuesday

When: 9 a.m. to 1 p.m.

Where: Sidney High School Performing Arts Center

Who: Experts will provide testimony about the oil and gas industry; members of the public are also welcome to offer testimony