Filed under: CleanTech, Climate Change, Sustainability | Tags: DOE, EPA, Marcellus Shale
Fracking operations have traditionally been regulated by the states, but several federal agencies have spent the summer months exploring ways they may be able to get in on the action. Here’s a quick recap of what they’ve been up to over the last few months:
• On June 15, the U.S. Environmental Protection Agency’s Office of Water held a webinar for public stakeholders on potential approaches for issuing permits covering the use of diesel fuels in hydraulic fracturing operations as part of EPA’s Underground Injection Control program. Congress exempted most fracking activities from regulation under the Safe Drinking Water Act, but fluids containing diesel fuels are the exception. EPA expects to issue guidance in the fall, and questions are already surfacing about whether EPA can proceed by guidance document or must follow rulemaking procedures.
• On July 28, EPA published a proposed air rule for natural gas drilling operations that explicitly targets shale wells and would be the first national regulation of fracking, according to EPA. The rule would impose new requirements to capture natural gas that escapes into the air during fracking. Comments are due by Oct. 24, 2011, and EPA plans to hold three hearings, September 27, 28, and 29, in, respectively, Pittsburgh, Denver, and Arlington, TX.
• On August 4, a coalition of 100-plus environmental groups filed a petition with EPA, urging it to adopt a rule under the Toxic Substances Control Act that would require manufacturers and processors of fracking fluids to identify and conduct toxicity testing of all chemicals used in those fluids. EPA has 90 days to respond to the petition, and if it declines to initiate a rulemaking, must explain why; this decision may be challenged in court.
• On August 11, a Department of Energy advisory panel recommended that several measures should be taken to improve the safety and environmental performance of shale gas production. Stopping short of urging regulation under the Safe Drinking Water Act, the committee backed new requirements for disclosure of chemicals in fracking fluids, better measurement and reporting of water use during the drilling process, regulation of air emissions, and establishment of an industry-based best practices organization. The report is open for comment through November 18.
• On August 25, the Wall Street Journal reported that the Securities and Exchange Commission has asked publicly traded oil and gas companies to submit information on their fracking practices, including details about the chemicals they are using and likely environmental impacts. The SEC’s interest reportedly is in ensuring the companies are disclosing risks to investors, for instance, the likelihood of lawsuits, regulatory compliance costs, actual extent of reserves, or uncertainties surrounding drilling operations.
If this high level of activity throughout the summer is any indication of what is to come in the fall, shale gas developers would be well advised to keep an eye out for many potential sources of federal regulation of their operations in the coming weeks and months.
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