Hess will pay $593 million for a stake in an Ohio oil and gas field owned by Consol Energy, even as the state moves to ban shale gas drilling, The Associated Press reports.
Democratic state Sen. Michael Skindell of suburban Cleveland introduced a bill Tuesday calling for a moratorium on hydraulic fracturing, or “fracking,” to await results of a U.S. Environmental Protection Agency study of potential environmental hazards.
Ohio would join New York and New Jersey among states above the fuel rich Marcellus shale if it imposes the ban. Calls for bans in West Virginia and Michigan have been unsuccessful.
Hess’ and Consol’s field, located in eastern Ohio, is spread over nearly 200,000 acres with access to underground shale deposits.
Hess will pay CONSOL $59 million when the deal closes in October. It will invest another $534 million in the operation over the next five years.
As part of its investment, Hess will operate 80,000 acres in Jefferson, Harrison, Guernsey and Belmont counties, while Consol will operate the remaining areas including its acreage in Portage, Tuscarawas, Mahoning and Noble counties. Exploratory drilling operations are expected to begin in the fourth quarter.
The Ohio Chamber of Commerce has commissioned a separate study on the potential economic benefits of gas drilling.
