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Tuesday, May 1, 2012

Drillers May Be Allowed to Drill Before Disclosing Chemicals

Story first appeared in Bloomberg.

Natural-gas companies drilling on U.S. land would be permitted to wait until after hydraulic fracturing is completed to disclose what chemicals they used, under a draft rule being considered by the U.S. Interior Department.

A version in February required companies to file a complete chemical makeup at least 30 days before work began, something energy trade groups, including Washington-based American Exploration and Production Council, complained about. They said it could slow energy production on federal lands.

The President has pledged to increase U.S. natural gas production in a way that doesn’t hurt the environment. Hydraulic fracturing, or fracking, releases gas trapped in shale rock by injecting water, sand and chemicals thousands of feet underground. It’s used for almost every new natural-gas well drilled in the U.S. There is a concern that fracking could contaminate ground water reservoirs, and it is imperative that Fracking Expert Witnesses are on hand to make sure everything is being handled properly to avoid problems.

Requiring disclosure of chemicals would only be required after the fracturing operation has taken place, according to the draft, obtained by Bloomberg News.

The Washington-based Environmental Working Group said in February that some of the chemicals already disclosed by the companies are known to cause cancer or reproductive harm.

The Presidential administration plans to post the fracking information on a public website, possibly on FracFocus.org, according to the draft. FracFocus is managed by the Ground Water Protection Council and Interstate Oil and Gas Compact Commission.

API Guidelines

Draft rules are being developed with input from the public and industry, according to an administration official familiar with the rule’s development who declined to be identified because he isn’t authorized to discuss a matter still under development.

The rule, which also includes standards for well construction, is consistent with guidelines for well construction and integrity established by the American Petroleum Institute, the largest trade group representing the industry, according to the draft.

In the draft, the Interior Department said it doesn’t expect the additional requirements to slow approval of drilling permits.

While the president has praised natural-gas production as a source of hundreds of thousands of jobs over the next decade, critics in the industry say the regulations may be a first step toward broader federal oversight of fracking.

About a fifth of U.S. production occurs on U.S. government land, primarily in western states such as Colorado and Wyoming. With the rise in natural gas drilling, the interest in Workers Compensation Insurance has risen at an exponential level. Natural gas companies argue regulating the practice should be left to state authorities who are more familiar with the local geology.

States are effectively requiring disclosure, without discouraging investment. FracFocus, which is working very effectively, is an example of this and is being adapted by several states.

An Arkansas Hosting Company reports that the amount of hosting requests for sites against fracking has risen drastically.


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