Illinois would have the strictest regulations for high-volume oil and gas drilling in the nation under a bill introduced Thursday and drafted with the help of industry and environmentalists, supporters said.
The Hydraulic Fracturing Regulatory Act would require oil and gas companies to test water before, during and after drilling -- and then hold them liable if contamination was found after drilling began.
It also would require companies to disclose the chemicals used in the process and control air pollution, as well as provide for public hearings and allow residents to sue if they believed they had been harmed.
Such provisions are uncommon in states where hydraulic fracturing, or "fracking," happens, and Illinois would be the first to require that many, environmental and industry officials said.
"This is a situation where Illinois really is leading the way," said Ann Alexander, a senior attorney with the Natural Resources Defense Council's Midwest program, who participated in negotiations. "We hope we are setting a floor for others to be able to build on (because) there is very much a gold rush mentality."
Fracking uses a high-pressure mixture of water, sand or gravel and chemicals to crack and hold open thick rock formations, releasing trapped oil and gas. Combined with horizontal drilling, it allows access to formerly out-of-reach deposits. The industry -- which is eyeing the New Albany Shale formation in southern Illinois -- insists the method is safe and could create thousands of jobs.
State Rep. John Bradley, the Marion Democrat who introduced the regulatory bill along with Olney Republican David Reis, said it would protect the environment and families while creating thousands of jobs in a cash-strapped region. He said if the bill is passed quickly, drilling could begin this year.
Reis called the bill -- and the unusual cooperation between industry, environmentalists, lawmakers and Attorney General Lisa Madigan -- "historic from an economic standpoint."
"The revenue that this is going to generate for the entire state of Illinois ... is going to be maybe one of the things we need to get out of our financial challenges that we face in this state," Reis said.
Two metro-east lawmakers have signed on as co-sponsors of the bill: Rep. Dwight Kay, R-Glen Carbon, and Rep. Charlie Meier, R-Okawville.
Kay said Illinois' fracking industry will be "one of the most-regulated in the country," and will mean jobs.
"Nearly 9 percent of Illinoisans are out of work. Allowing the expansion of fracking in Illinois will put people back to work," Kay said. "Illinois needs jobs and economic growth, and this legislation will help promote our economy and provide good paying jobs to Southern Illinois."
Meier said it was important to him that fracking not hurt the environment.
"As a farmer, conservation is very important to me. I was honored to be named the state of Illinois Conservation Farm Family of the Year in 2009. I still plan on drinking from the 205-foot-deep well at my farm," Meier said. "Fracking, done in a responsible and regulated way, will not only bring jobs and jump-start the economy, but can be done without harming nature."
But critics are urging lawmakers instead to support a 2-year moratorium on the practice to study scientific evidence surrounding contamination and potential health effects, as well as the impact on water supplies.
Sen. Mattie Hunter, a Chicago Democrat, introduced the moratorium bill, which is supported by some environmental groups, including the Sierra Club.
"How do you know (regulations are) going to work?" said Liz Patula, a Williamson County resident who belongs to Southern Illinoisans Against Fracturing Our Environment, a group of farmers, land owners and others. "A moratorium is about looking at scientific evidence before even saying the word 'regulation."'
Allen Grosboll, co-legislative director for the Environmental Law and Policy Center, said his group supported a moratorium that failed last fall, so it was crucial to help draft the strongest possible regulations.
"The reality is that thousands of acres of leases are being bought up, and fracking is going to come to Illinois," he said.
Leases already have been signed on tens of thousands of acres in southern Illinois, where studies have suggested that the New Albany Shale, roughly 5,000 feet below the surface, may hold significant gas and oil reserves.
Oil and gas companies are eager to begin drilling as soon as possible, despite what would be "unquestionably" the nation's toughest regulations, said Jim Watson, a former Illinois lawmaker who's now executive director of the Illinois Petroleum Council.
"Now it's time for the industry to invest and help us ... do the good things that can come out of this," Watson said. "I'm happy that the sides sat down and found that compromise."
Reporter Brian Brueggemann contributed to this story.