North Dakota seeks to repurpose coronavirus aid for fracking [View all]
BISMARCK (AP) — North Dakota officials say they want to repurpose $16 million in federal coronavirus aid and spend it on grants to encourage fracking instead of using it to clean up abandoned oil well sites.
Regulators have presented the proposal as a way to create jobs and help stabilize state revenue, while some in the environmental community view it as a bailout for the oil industry, the Bismarck Tribune reported.
Under the proposal, which the North Dakota Emergency Commission will consider Friday, oil companies would be eligible for a $200,000 reimbursement per well they complete. They could use the money for acquiring and disposing of water used in the hydraulic fracturing process, in which water, sand and chemicals are injected underground to crack rock and release oil.
State Mineral Resources Director Lynn Helms said oil companies have been hit hard by the price drop resulting from the pandemic, leading to slow work in the state’s oil fields.
Read more: https://www.minotdailynews.com/wire/?category=5687&ID=121340
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