The agency responsible for managing federal lands released new rules for hydraulic fracturing operations there.
Hydraulic fracturing is a technique used by drillers of oil and natural gas to increase the porosity of shale formations deep in the Earth. Hydraulic fracturing increases the productivity of wells drilled in areas such as the Marcellus shale.
Department of Interior Secretary Ken Salazar said the new draft rules are part of President Barack Obama's overall energy strategy to boost domestic production.
"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," Salazar said. "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."
Michael Brune, executive director of the Sierra Club, said that the organization is carefully reviewing the rules and working to ensure the best possible protection of public land is provided. He said the DOI has a "chance to set the bar high and clean up an industry infamous for exploiting loopholes to operate with no regard for the health of our lands or the health of our families."
"While it is deeply disappointing that fracking on sensitive public lands has been considered at all, we fully expect the administration to implement the toughest safeguards possible to rein in irresponsible practices and protect our public spaces," Brune said. "We look forward to working closely with the administration to ensure that happens."
Environmental group Earthjustice also urged less activity on federal lands. Earthjustice Legislative Representative Jessica Ennis said the new rules fail to meet President Barak Obama's State of the Union promise to not allow the shale gas boom to happen at the expense of the public.
"Fracking for oil and gas is happening at a breakneck pace on our public lands — and edging ever closer to the places where people live. In light of the near-constant reports of fracking-related air and water pollution, an update to federal rules is long overdue. Unfortunately, these proposed rules from the Department of the Interior fall far short of what's needed to protect public health."
The new rules would apply to drillers utilizing hydraulic fracturing techniques on public and Indian lands. The rule requires public disclosure of the chemicals used in hydraulic fracturing, with care to protect proprietary information about the solutions used by companies for hydraulic fracturing.
The rules also add measures to increase vigilance in maintaining a well bore that does not allow leaking of the fracturing fluid and confirms operators have a wastewater management plan.
According to a news release from the Department of the Interior, current Bureau of Land Management regulations are more than 30 years old and do not address modern hydraulic fracturing technology.
"The BLM recognizes the importance of all domestic energy sources to the welfare and security of this nation," said BLM Director Bob Abbey. "The proposed rule will move our nation forward as we ensure responsible development while protecting public land resources."
American Petroleum Institute Upstream Director Erik Milito said any new federal regulations should carefully track what the organization called "successful state-led regulations."
"The states have proven time and again that they are the best place for responsible regulation of drilling operations," Milito said. "While it appears constructive changes have been made, we are still reviewing the new proposal to see how the agency addressed the various concerns that we've raised. The administration should exercise deference to the robust and comprehensive state regulations that already exist."
Tom Amontree, executive vice president of the American Natural Gas Alliance, also emphasized state regulation versus federal regulation.
"State regulatory bodies have repeatedly proven that they have the understanding of their state's own unique geologic conditions, the on-the-ground expertise needed to oversee this important work, and most importantly, the ability to respond to rapid change," Amontree said. "The proposal as drafted would create reporting requirements, regulatory impediments and certifications that could substantially affect the ability to produce resources that are placed in the BLMs stewardship for the benefit of all Americans."
Milito said the administration should be especially mindful not to squash potential jobs and economic impact associated with the drilling process.
"Energy production on federal lands has a history of driving job creation and creating significant revenue for the government," Milito said. "But this potential could be stifled by a federal regulatory program that duplicates existing state regulations. This could have a chilling effect on investment and jobs."
The regulations also prompted criticism from Barry Russell, president and CEO of the Independent Petroleum Association of America.
"America's independent oil and natural gas producers are already having a tough time obtaining permits to develop federal lands," Russell said. "BLM's proposed regulations, which would mandate one-size-fits-all regulations on well construction and hydraulic fracturing operations on these lands, are redundant. They will undoubtedly insert an unnecessary layer of rigidity into the permitting and development process.
The rule will be published in the Federal Register, and then a 60-day public comment period will begin. According to the DOI, the rule affects about 700 million subsurface acres of federal estate and 56 million subsurface acres of Indian mineral state managed by the BLM.
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