A new study from Binghamton University and UNLV has uncovered the persistent and often aggressive tactics energy companies use to pressure landowners into allowing hydraulic fracturing (fracking) on their property. The research, published in Nature Energy, sheds light on the complex and sometimes contentious relationship between energy companies and private landowners in the United States.
The study focused on Ohio, a state that experienced a fracking boom in the 2010s. Researchers analyzed data from the Ohio Department of Natural Resources, covering every compulsory unitization application submitted between January 2014 and April 2021. This period represents the height of the fracking boom in the state.
Persistent Pressure and Legal Compulsion
Energy companies employ a range of tactics to secure land rights for fracking, including repeated phone calls, home visits, and even contacting family members and neighbors of reluctant landowners. In some cases, these efforts persist even when landowners are dealing with serious health issues or have explicitly refused to sign leases.
Benjamin Farrer, lead author and former PhD student at Binghamton University, emphasized the importance of considering individual experiences in the fracking debate: “Hydraulic fracturing is a controversial issue, but a lot of the controversy has been focused on the big-picture consequences, for the climate and the economy. One of our hopes for this paper is that it will encourage policymakers to pay more attention to the individual experiences of the people who are closest to the issue.”
The study revealed several concerning examples of pressure tactics. In one case, a landowner undergoing radiation treatment at a hospital was repeatedly contacted by a landman (a representative of the energy company) despite expressing a desire to postpone discussions until after their hospital stay.
The Role of Compulsory Unitization
When persuasion fails, energy companies often turn to a legal mechanism called compulsory unitization. This law, present in many oil- and gas-producing states, allows companies to force landowners to participate in drilling operations if a certain percentage of neighboring landowners have already given permission.
Robert Holahan, associate professor of political science at Binghamton University, explained the shift in how this law is being applied: “Under conventional vertical drilling, the use of compulsion generally was a net positive for mineral owners – it prevented holdouts looking for better contract terms from tanking a project and it allowed small properties or properties along the border of a drilling area to force themselves into a contract if the drilling company tried to shut them out. Under fracking, though, where the drilling happens horizontally under multiple properties, compulsory unitization can force mineral owners who otherwise don’t want to lease their property to do so.”
The researchers found that compulsory unitization is being used more broadly than originally intended, affecting a wide range of landowners rather than just economic holdouts or unreachable property owners.
Why it matters: This research highlights the power imbalance between energy companies and individual landowners in the fracking industry. It raises important questions about property rights, environmental concerns, and the role of government in regulating energy extraction. As the demand for domestic energy sources continues to grow, understanding these dynamics is crucial for developing fair and sustainable policies that balance economic interests with individual rights and environmental protection.
The findings of this study could have significant implications for future energy policy and land use regulations. Policymakers may need to reassess the application of compulsory unitization laws in the context of modern fracking techniques to ensure they are not being misused to override legitimate concerns of landowners.
Future research in this area will likely focus on verifying the accuracy of the conversation records used in the study and exploring public opinion on different forms of energy extraction. The research team is already conducting a follow-up survey with individuals whose records were used in the paper and a broader survey of 3,000 people in the Twin Tiers of New York and Pennsylvania to assess opinions on drilling and wind turbines.
As the energy landscape continues to evolve, studies like this one will be crucial in shaping policies that balance the need for energy production with the rights and concerns of individual property owners.
“Assessing How Energy Companies Negotiate With 31 Landowners When Obtaining Land for Hydraulic Fracturing,” was published in Nature Energy.
