SB 138 - An Interesting Idea

One of the more unique and interesting ideas from the 2009 Regular Session was SB 138, sponsored by Tom Jensen, co-sponsored by Robert Stivers. Both are seen as the energy experts in the state Senate majority.

SB 138 basically would have empowered the Finance Cabinet to allow for energy development on state-owned lands. For example, if there is a natural gas deposit or petroleum deposit under a state park and the development of that resource would not damage “the scenic, aesthetic or environmental quality of the land” then those resources could be developed and the state agency that has authority over that property could receive a royalty payment.

While some extreme environmentalists may find the concept offensive, the majority that understand how responsibly resources are developed these days (e.g. directional drilling) should be able to agree that it makes sense to tap these resources to enhance the state’s fiscal condition through non-traditional revenue sources while also harnessing our nation’s domestic energy supplies.

It is telling that 1) the bill passed 36-0 in the state Senate and 2) HFA 1 was sponsored by Representative Robin Webb – who is well known in Frankfort as someone that seeks to strike the proper balance between energy development, environmental stewardship and fiscal responsibility. HFA 1 would have built in some additional safeguards to help protect certain properties (like a particularly sensitive state nature preserve) but the basic concept would have remained intact.

SB 138 didn’t make it to a vote in the House but we can expect that it will be re-introduced in 2010.

It deserves the legislature’s support.