Hydraulic Fracturing Remains a Key Issue in 2013

As natural gas prices remain at record lows and the United States moves closer to becoming a major natural gas exporter, the technology that made accessing these resources possible continues to be heavily debated at both the executive branch and in Congress. The ongoing concerns surrounding hydraulic fracturing are sure to continue for the foreseeable future as the federal government debates the appropriate level of regulation over the practice. Below are several developments of note for companies engaged in hydraulic fracturing and related industries:

Executive Branch

• The Environmental Protection Agency (EPA) is conducting a congressionally-directed study on the potential impacts of hydraulic fracturing on drinking water and ground water throughout the entire lifespan of the process.
• The nomination of Ken Kopocis as Assistant Administrator for Water at the EPA recently passed out of committee and is now pending before the full Senate. Once Kopocis is confirmed we expect the agency will finalize their hydraulic fracturing plans.
• The Bureau of Land Management (BLM) proposed draft regulations that would impose tough standards on hydraulic fracturing on public lands. An industry study projects the average cost per well to be $96,913, nearly 20 times what BLM estimates it would cost. This could become a template for new regulations on private lands.
• The BLM will conduct a study of the potential environmental impacts of hydraulic fracturing and other drilling activities in central California's Monterey Shale.
• The U.S. Department of Justice is conducting an investigation into possible anti-competitive practices among companies that provide pressure pumping services. A class-action lawsuit has been filed in this case.

Congress

• Bipartisan legislation was recently introduced in the Senate that would prohibit most Department of the Interior regulations of hydraulic fracturing on public lands in deferment to state rules.
• House Republicans are advancing legislation that would require the EPA to address specific factors in completing its study on the potential impacts of hydraulic fracturing on water.

If your organization has concerns about these or other developments pertaining to hydraulic fracturing, there is no better time to contact our Washington, D.C. office to discuss opportunities to educate the executive branch and Congress.