Monday, May 7, 2012

EPA, Department of the Interior announce additional fracking oversight

EPA, Department of the Interior announce additional fracking oversight:






Drafts of new regulations relating to hydraulic fracturing in natural gas production were released for public comment Friday. This follows on the heels of the new rules for air emissions released two weeks ago. The US Environmental Protection Agency announced new guidance for obtaining permits when diesel fuel is included as a component of the fracking fluid used to fracture source rocks and free the gas trapped inside. As we laid out in a previous story, a 2005 amendment to the Safe Drinking Water Act exempted fracking from regulation as an underground injection, except when diesel fuel is used. Despite that caveat, the industry continued using diesel fuel without reporting it, saying that the EPA had never explicitly provided a process for them to do so. That process is now laid out in the new guidance. This may become a moot point, however, as public pressure is forcing the industry to move to more innocuous alternatives.

The US Department of the Interior also announced new rules for fracking on federal and Indian land, greatly increasing oversight. Fracking must now be explicitly approved as part of the normal drilling permits companies apply for when operating on federal land. This will require them to submit details on the layers of rock they plan to frack and how they will manage and dispose of the spent fracking fluids. They will also have to submit documentation of tests performed to ensure integrity of the seal around the well before the actual fracking begins. After the process is complete, drillers will have to publicly disclose the chemicals used in the fracking fluid.

In the press release, Secretary of the Interior Ken Salazar says, “As we continue to offer millions of acres of America’s public lands for oil and gas development, it is critical that the public have full confidence that the right safety and environmental protections are in place. The proposed rule will modernize our management of well stimulation activities—including hydraulic fracturing—to make sure that fracturing operations conducted on public and Indian lands follow common-sense industry best practices.”

Several states (most notably Wyoming and Texas) already have some similar requirements on the books, and others may use the federal rules as a template in the future. The drafts of both the EPA guidance and DOI rules will be revised and finalized following the 60 day public comment period.






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