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Florida Blocks Oil Drilling In The Everglades, For Now

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Florida Governor Ron DeSantis announced on Wednesday that he had reached a deal with a private company to purchase Everglades acreage on which it had proposed to drill a wildcat well in an attempt to find oil.

The company, Kanter Real Estate LLC, had originally applied for a permit to drill the exploratory well in 2016, targeting the lower Sunniland carbonate formation that underlies much of Southern Florida. That permit was initially declined by the state’s Department of Environmental Protection (DEP), but the state’s First District Court of Appeal overruled that decision last February, sending it back to the DEP for further consideration.

Despite concerns raised by activists alleging potential groundwater impacts from hydraulic fracturing, or “fracking,” Kanter said that it had no plans to use a frac job on this well, given the Sunniland’s fairly high degree of natural porosity. Concerns over Kanter’s drilling plans helped drive an effort in the state legislature’s 2019 session to move a bill that would ban fracking in the state of Florida, SB 200, but the bill ultimately failed.

For his own part, Governor DeSantis - one of the most popular governors in the U.S. according to recent polling - expressed his own opposition to fracking operations in Florida during his successful 2018 election campaign. The deal he announced on Wednesday helps him to keep that campaign pledge.

The announced agreement involves 20,000 acres west of Miramar owned by Kanter Real Estate. DeSantis said that the South Florida Water Management District would pay $16.5 million for the acreage, but the price rises to $18 million if the deal does not close by June 30. The DEP indicated that it plans to move forward with the purchase within the next 75 days.

The Governor said that the land will become state public lands to be used for recreational purposes and for Everglades restoration. “This will permanently save the land from oil production,” DeSantis said. “With this acquisition, there will be nearly 600,000 acres of wetlands in Water Conservation Area Three that will be protected by public ownership for recreation and restoration.”

Despite the court order directing DEP to allow the drilling project, Kanter would have still been required to obtain various permits by local government entities, as well as the federal government, in order to move forward. During the court hearing, the company’s own expert estimated that there was only a 23% chance of the well striking oil. He further estimated that a successful well might produce 180,000 to 10 million barrels at about $50 per barrel.

At the end of the day, Kanter apparently decided that the potential reward was not worth the risk and negative public attention that would take place if it kept moving ahead. The agreement announced on Wednesday provides a graceful resolution for the company, the Governor, the DEP and the public.

Kanter family representative John Kanter said that “It’s a very unique piece of property with incredible natural resources on it. We’re happy to know it’s going to be protected and kept in pristine condition for future generations. The family wants to thank the DEP sec and the Governor for stepping in and taking a leadership role in creating a situation that’s a win-win for everyone.”


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