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Risks, Benefits of Lake Drilling Argued
Mich. Governor Plans to Lift Restrictions to Supplement Critical Energy Supply

By William Claiborne
Friday, May 4, 2001

With the nation bracing for a summer of soaring energy prices and President Bush calling for more domestic drilling, the land beneath the world's largest supply of fresh surface water has begun to appeal to some as an exploitable energy source.

Increased drilling for oil and natural gas pockets beneath the Great Lakes is emerging as the latest flash point between the Bush administration and environmentalists, as Michigan's Republican governor, John M. Engler, prepares to lift leasing restrictions on Lake Michigan and Lake Huron that he imposed in 1997.

Engler supports a recommendation by the Michigan Department of Natural Resources that could clear the way for as many as 30 new wells to be drilled along the shores of the two lakes.

The wells would use directional, or "slant," drilling technology designed to minimize the risk of oil spills. Rigs would be placed on land about 1,500 feet from the shoreline and drills would bore at an angle beneath the lake bottom to reach underground deposits of oil and gas.

The eight Great Lakes states -- Michigan, Illinois, Wisconsin, Minnesota, Indiana, Ohio, Pennsylvania and New York -- do not allow drilling from platform rigs on the water.

Energy Secretary Spencer Abraham has not said whether he supports Great Lakes drilling. But environmentalists say Bush's bid to drill for oil in Alaska's Arctic National Wildlife Refuge and for gas off Florida's Gulf Coast does not bode well for opponents of lake drilling.

Environmental Protection Agency Administrator Christine Todd Whitman said only that the government should "look at all options" and that if the decision is made to drill, her agency's job would be to ensure the lakes do not suffer environmental damage.

The Commerce Department is expected to decide this summer whether to allow the drilling of as many as 21 gas wells in the Destin Dome field just south of Pensacola in the eastern Gulf of Mexico. The plan has created an awkward conflict between Bush and his brother, Florida Gov. Jeb Bush (R), who has said he fears damage to the state's tourism and fishing industries.

The Interior Department predicted the chances of a spill in the gulf are very low, and that if one did occur, it would pose a 30 percent risk of contaminating Florida's beaches.

Michigan officials say there is little or no risk of an oil or gas leak from the lake bottom with a directionally drilled well, and only a small risk of contamination at the well head. They say the additional energy supply at a time of need and the revenue generated is worth the minimal risk of environmental damage.

"We still have a tremendous need for energy and we have to tap available resources," said Ken Silfven, spokesman for the Michigan Department of Environmental Quality, which regulates the state's oil and gas industries.

Opponents, however, say the risk of oil spills or the accidental release of dangerous hydrogen sulfide far outweighs the relatively small potential energy yield.

Critics of Lake Michigan drilling maintain that even one accident could contaminate drinking water supplies for millions of people and disrupt fishing, tourism and other lake-derived businesses.

They also say studies have shown that 30 new wells would yield only enough oil to meet the needs of state residents for three weeks and enough natural gas for five weeks.

"It is the moral equivalent of trying to find more furniture in your house to burn to keep you warm this winter," said Cameron Davis, executive director of the Lake Michigan Federation, a public interest group.

Another staunch opponent, Michigan State Sen. Gary C. Peters (D), said, "Whatever the risks are, they're just not worth it. We're not sitting on a North Sea oil supply here. It would have no impact whatsoever on the price people pay for gas at the pump or for fuel to heat their homes."

Oil drilling on the Michigan shore began in 1979 with the first of 13 directional wells, seven of which are still producing modest amounts of oil and natural gas from beneath Lake Michigan and Lake Huron. But the controversy has resurfaced with renewed intensity as the Bush administration has suggested exploiting new sources of oil and gas in Alaska and protected lands in the Rocky Mountains.

Citing environmental concerns, Engler halted new oil leasing in 1997. He asked for a study by a board of science advisers, who concluded that directional drilling carries no risk of contamination directly above the bottom hole but a "small risk" of contamination at the well head.

Silfven says that politics, not science, is driving the debate over Great Lakes drilling and that environmentalists' talk of zero risk tolerance is misguided.

He said well leases have generated $15 million, which the state uses to buy and maintain parks, and could generate $100 million in new state revenue.

"Directional drilling is an environmental tool," he said. "The purpose is to tap resources that might be environmentally sensitive and reap the benefits safely."

Mindy Koch, chief of the forests, minerals and fire management division of the Natural Resources Department, said three oil and gas companies have expressed an interest in expanding drilling but that the issuance of new leases is still "several months down the road."

In Ohio, Gov. Bob Taft (R) said he could not conceive of any situation in which he would support drilling under Lake Erie, even though both oil and gas are taken from Canada's side of the lake.

Oil and natural gas producers in New York have played down the possibility of drilling under Lakes Erie and Ontario, citing intense opposition.

In Congress, the battle to fend off Great Lakes drilling is being led by Rep. Bart Stupak (D-Mich.), who said if the administration submits legislation for oil drilling in the Gulf of Mexico, Alaska or off the East Coast, he will try to attach amendments to ban drilling in the Great Lakes.

"The little amount of oil and gas doesn't justify opening up 30 new drill sites," he said.

Since 1979, Stupak said, only 438,000 barrels of oil have been extracted, a fraction of the amount produced in the United States each day. By comparison, the Arctic refuge is believed to contain between 5.6 billion and 16 billion barrels of oil.

"I think as this plan moves forward, there's going to be an outcry of public opinion," Stupak said.

He said he expects Engler to announce the issuance of new leases after the state legislature recesses next month.

Stupak has submitted bills to ban more directional drilling on the Great Lakes three times. Each time, they have died in committee.