And so it begins.
On March 20th the Obama administration released the first (of many I expect) major federal regulations on fracking. This ruling has 90 days before it goes into effect. So what is it all about?
The regulations come from the Department of Interior and are the first new federal rule in 30 years. After reading quite a bit, here is the creamy center of this new rule.
- Oil and gas drillers are now required to disclose the chemicals they are using during the fracking process within 30 days of fracking a well.
- Stricter standards are now in place for the construction of wells and well bores. Well integrity test on every drilled well is required. This is to ensure the cement in the well bore is strong and nothing will leak into groundwater
- Stricter standards are now in place for the disposal of frack water as well. Companies are not allowed to use water pits to store waste water flow back. Storage tanks must be utilized now.
- These regulations only apply to federally owned and Indian owned (tribal) land. They do not apply to state or private land. The administrations goal is for these regulations to the structure for future nationwide standard regulations
Now of course there has already been complaints from the industry and environmentalists.
The industry feels that most states are doing enough already to regulate fracking within their boarders. In their minds these regulations are creating more redundancy within our government. Already 31 states with fracking in them that have casing and cementing depth regulations. The chemicals that are in frack fluid are already ingested by consumers in products like toothpaste, laxatives, detergent and ice cream. Not to mention they are then diluted by the 99.95% of water that makes up frack fluid. One group, The Independent Petroleum Association of America (IPAA) and Western Energy Alliance, has gone as far as to file a lawsuit against the government. Per www.breitbart.com “The lawsuit charges that the new regulations are based on “Unsubstantiated concerns” that lack any scientific basis.”
The Environmental groups see things very different. Although they are happy the regulations have come to pass, the groups feel the regs just don’t go far enough. Some feel the government still gave too many concessions towards oil and gas industry groups.
All these regulations and bans really made something I heard recently stand out. While attending the the Gulf Coast Oil & Gas Awards 2015 Summit, one of the speakers, sorry I don’t remember which one, made a very poignant statement. He said that if our industry does not do a better job of self regulation, we, like the coal industry, will be legislated out of business. I think that is a fair statement. Another speaker commented on the poor job our industry does on grass roots activism within communities. If there are issues we just pay money for a t.v. add instead of getting people on the ground to truly educate communities living with fracking. Again, I agree. If you Google ‘fracking’ you will get way more negative pictures and articles than beneficial ones. I do believe that if community members (middle class in particular, like me) knew they had more access to the different process that oil and gas companies use for fracking, they would not be so quick to rally behind the bans. As in many situations, educations is key.
And if G.I Joe and my childhood have taught me anything,
“Knowing Is Half the Battle.”
Follow the link below to see how Croft Production Systems is already ahead of environmental regulations.
References:
http://www.cnbc.com/id/102522572
http://www.cnbc.com/id/102531124
http://www.popsci.com/article/science/epa-wants-piece-your-fracking-mind
