Fracking regulation remains divisive
July 1, 2013 | By
Travis Mitchell
In just a matter of years, hydraulic fracturing -- or "fracking" -- has generated a fierce debate. The practice has gone from being a natural gas extraction procedure with limited exposure outside the energy industry to a controversial topic involving environmental groups, consumer advocates, lawmakers, energy companies and businesses. Everyone has an opinion about whether fracking should be allowed and, if so, how it should be regulated. Opponents cite a lack of understanding surrounding its environmental impacts, while supporters praise the potential of natural gas production to ignite the U.S. economy and drive down energy prices.
Given the amount of chatter in the industry, FierceEnergy looked at how states and the federal government are approaching the fracking question. States take different paths Natural gas reserves are peppered around the United States. A few states in these locations have taken aggressive stands against fracking, while some are just starting to get involved. Illinois is one state on track to implement significant hydraulic fracturing regulations. SB 1517 passed the state's senate in a 52-3 vote. The bill requires chemical records disclosure and water testing and sets in place new minimum boundaries between fracking sites and drinking water sources. North Carolina is also working through fracking legislation, though it's taking a more cautious approach than Illinois. The state iced its proposed fracking disclosure regulations in May after industry giant Halliburton pushed back against what it viewed to be overly burdensome mandates. Separate legislation, SB 76, sought to lift North Carolina's fracking moratorium by 2015 and spur natural gas development in the state. The bill handily passed in Senate several months ago, but it underwent a significant facelift before returning to the House with the moratorium provision back in place. This version of the legislation passed the House Committee on Commerce and Job Development, but could face further revisions when debated in the full House assembly. Over in California, fracking legislation failed to gain approval despite three bills aimed at halting or regulating the process. The Texas Railroad Commission, which regulates oil and gas, recently adopted new drilling standards. On a smaller scale, the City of Boulder's City Council last month unanimously approved a one-year fracking moratorium. Federal government looks for answers The Obama Administration has started its own investigations into fracking safety. Most notably, the U.S. Department of the Interior last month issued draft regulations addressing hydraulic fracturing on public and Indian lands. The proposals required companies to disclosure fracking chemicals and verify that harmful fluids stay out of groundwater. "As we continue to offer millions of acres of America's public lands for oil and gas development, it is important that the public has full confidence that the right safety and environmental protections are in place," said Secretary of the Interior Sally Jewell, in a recent statement. Critics of the rule say that it doesn't require companies to identify all types or amounts of chemicals used for fracking, allowing for the protection of certain business secrets. It also relies on reporting via the "FracFocus" website, which isn't run by the government and has been scrutinized over a lack of transparency and difficult data access. Representative Ed Markey has called the proposed rule "extremely disappointing." "It gives oil and gas companies the freedom to frack without the proper safety protections and disclosures the American public deserve. Oil and gas companies like to say that every well is different, but this fracking rule would treat wells like cookie cutter activities, potentially leaving huge holes in ensuring that fracking activities on public lands are being done properly and safely," he said in a statement. Bowing to this criticism, Secretary Jewell agreed to extend the public commenting period for the rules from 30 days to 60 days. The Hill reports that the proposed regulations have provoked more than 175,000 comments. The U.S. Environmental Protection Agency is another federal agency studying fracking. The EPA is currently undergoing a comprehensive investigation into possible effects of fracking on drinking water. The first progress report was released in December 2012, and final results are expected in 2014. As long as natural gas use remains high, so too will the debate over fracking processes. It is something the energy industry will have to reach a consensus on if it wants to advance U.S. energy independence in a way that can satisfy environmentalists, industry professionals and businesses alike. Sign up for our FREE newsletter for more news like this sent to your inbox! © 2013 FierceMarkets. All rights reserved. http://www.fierceenergy.com http://www.fierceenergy.com/story/fracking-regulation-remains-divisive/2013-07-01 |