NORTH ROYALTON, Ohio - This week, the city will try once again to take a stand against oil and gas wells in residential zones.

On Wednesday, city officials will drive to Columbus and appeal an Ohio Department of Natural Resources ruling made last fall. The ODNR said the city must allow Cutter Oil Co., a West Salem company, to use municipally owned land as part of a drill site.

The 1.9-acre parcel, which is on Athena Drive in a subdivision nicknamed the Planets, is among about 40 parcels Cutter needs to drill a new well there. The company has signed leases with most of the property owners, but two landholders, in addition to the city, are holding out.

State law allows drillers to pool contiguous parcels - forcibly if necessary - to create a site large enough for a well. Drill sites must measure at least 1, 10, 20 or 40 acres, depending on the well depth. In this case, Cutter needs 20 acres.

Mayor Robert Stefanik said North Royalton didn't always oppose residential drilling. At one time, the city willingly leased some of its land to drilling companies. That's because the ODNR initially promised that drilling is an exact science, that it's safe, that it would cause no problems, he said.

But the city's position turned 180 degrees after a few drilling mishaps. Now, Stefanik doesn't trust drillers or the ODNR, which in 2004 took control of oil-and-gas-well regulations from local communities.

"They (the ODNR) represent the oil drillers, not the residents of Ohio," Stefanik said. He pointed out that six members of the ODNR's eight-member Technical Advisory Council, which helps settle mandatory-land-pooling cases, are in the oil and gas business, as required by law.

The case with Cutter is just one battle in North Royalton's war against residential drilling. For example, Stefanik said city officials have continuously lobbied state legislators to, if nothing else, create more stringent standards for residential drilling, compared to non-residential drilling.

Also, North Royalton and other Ohio communities, including Broadview Heights, signed a friend-of-the-court brief supporting Munroe Falls in its case against Beck Energy Corp.

Munroe Falls said Beck failed to obey municipal drilling regulations. Beck countered that it only must adhere to state law. The case is now before the Ohio Supreme Court, which heard testimony Feb. 26.

Meanwhile, natural gas drilling is alarming residents throughout Greater Cleveland. Gates Mills Mayor Shawn Riley wants property owners to form a real estate trust to control the location of controversial hydraulic fracturing sites if they are built in the village.

Mark Bruce, ODNR spokesman, disagreed with Stefanik that his agency favors drillers. He said trained state inspectors watch drillers build well bases to make sure that oil, gas and brine - a byproduct of drilling - stay out of ground water and the surface environment.

If a spill occurs, the ODNR works with the Ohio Environmental Protection Agency to supervise the cleanup. The agencies investigate and take enforcement action, including fines and stop-work orders, if necessary.

"We feel we have some of the best, most comprehensive laws in the country when it comes to oil and gas drilling," Bruce said.

Mike Chadsey, spokesman for the Ohio Oil and Gas Association, defended the industry and regulators by pointing to a Jan. 7 article on the Columbus Business First website. The article reported only six cases of water contamination from drilling since 2010, and none were caused by fracking.

Well-established history

Stefanik said North Royalton contains hundreds of wells, some dating to the 1920s and 1930s. Some of the old wells - which are on large lots in the southern, rural-residential districts and in industrial zones - are still active.

The push for wells in denser residential areas - by companies like Cutter and Bass Energy Inc. - started in 2007, three years after the state took regulatory control of oil and gas drilling.

At first, North Royalton supported drilling in residential zones and even leased city land to gas and oil companies. It was another source of municipal revenue.

"Knowing what we know now, we wouldn't have done it," Stefanik said. "You have to decide if the money is worth the end result. To me, the answer is no."

That's because accidents started happening. In September 2008, a Cutter well behind Valley Vista Elementary School exploded.

Kari Matsko, director of People's Oil and Gas Collaborative, an Ohio group that focuses exclusively on oil gas issues, said the explosion sent oil and steel flying. Children were playing outside at the time.

"Had the wind been going in the wrong direction, the children would have been covered with oil," said Pete Maizitis, a North Royalton resident who has spoken out against drilling in residential zones.

"As it turned out, the oil went over the trees around there."

Stefanik said Cutter didn't respond quickly enough to shut off the well.

On Monday, a woman answering the phone at Cutter said the company had no comment. She refused to give her name.

Then, in summer 2011, residents on Mercury Drive noticed oil in their yards, near a well, and called City Hall. The city summoned Cutter to the scene, and according to Stefanik, company workers moved dirt around but did not repair the well.

A month later, Mercury residents again saw oil on the ground, and city officials found oil in storm sewers. This time, Stefanik called the OEPA, which detected oil in Chippewa Creek and surrounding wetlands.

The oil flowed through the creek into Broadview Heights. The OEPA quarantined the area. It took the agency a month or two to clean up the mess, Stefanik said.

Linda Oros, spokesperson for the OEPA, said her agency ordered Cutter to pay for the cleanup costs. She was unable to provide the amount in time for this story.

Buyer beware





Maizitis, the North Royalton resident-activist, said the city should do more to warn residents about the pitfalls signing land leases with drilling companies.

"Residents are promised a lot of money and they're seeing a fraction of it, if that," Maizitis said.

Stefanik agreed. He said one driller told residents they could earn "up to" $500 a month, but the payoff rarely reaches that ceiling.

"Unfortunately, if the amount doesn't reach $25, they won't get a check that month," Stefanik said. "People were misled."

Stefanik said Planets residents have told him they now regret entering into lease agreements with Cutter.

Matsko, of People's Oil and Gas Collaborative, said such sales tactics occur throughout the state. She said that, based on conversations she's had with Ohio citizens, the average royalty payment is about $50 a month.

"That's not even close to enough if you need extra hazard insurance on your home," Matsko said. "None of the risks or problems are disclosed until after you sign the lease."

Stefanik said the city advises residents to consult with a land-use attorney before signing leases with drilling companies.

Stefanik said a couple of subdivisions - like Royal Valley, where Maizitis lives - ban the use of common green space for wells. But residents can still lease their own properties.

"At the end of the day, if people want to sign, we can't stop them," Stefanik said.

Bill Hlavin, president and owner of Bass Energy, said landowners typically receive 12.5 percent of the profits from a well. The problem is that if 40 property owners sign leases for one well - like residents in the Planets did - they have to split that 12.5 percent among them.

Hlavin said Bass salespeople explain that arrangement to property owners but he added that he can't speak for other companies.

Bill of rights

Maizitis said the city should draft a citizens' bill of rights - like one in Broadview Heights - that would prohibit future oil and gas drilling in town.

Also, the city's master plan, which has been under discussion since early last year, should more thoroughly address oil and gas drilling, Maizitis said.

Maizitis said the master plan should call on the city to educate residents on the dangers and environmental impacts of drilling.

Drilling is mentioned in the environmental section of the North Royalton master plan draft, which is on the city's website.

The section starts on page 37 and talks about controlling storm water, protecting natural resources and promoting cluster-home developments that use less land.

There is just one line about drilling. It says the city should "discourage drilling and natural resource extraction in residential-zoned areas."

Maizitis suggested the city isn't as strident as it should be about wells because it receives tax dollars from drillers.

According to Stefanik, the city last year received $31,418 in taxes from oil and gas drillers. But he said that has no bearing on municipal policy.

As for the citizens' bill of rights, Stefanik said the city's Law Department advised that it would not hold up in court - at least not with the state regulating wells.

"It (a citizens bill of rights) is a feel-good resolution," Stefanik said. "That's all it really is."

Meanwhile, Stefanik said the city over the past three years has organized several special meetings, including a joint meeting with Broadview Heights, dedicated to oil and gas drilling.

At those meetings, the city has made clear its opposition to drilling in residential zones, Stefanik said.

"We are doing everything we can, with the tools we have, to curtail, slow down and stop drilling in residential areas," Stefanik said.