Witnesses Highlight States’ Successes in Regulating Fracking
Tell Federal Government to Stay Out of the Process.
Alaska Officials, Giessel and Foerster Play Lead Roles
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Meanwhile, Senate Energy and Natural Resources Committee spokesman, Robert Dillon, responds that, "Sen. Lisa Murkowski believes that regulation of hydraulic fracturing should be done at the state level. There is no need for a federal backstop on this issue." -dh |
(We'll have more to say about LNG exports on Monday)
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We believe the amendment contained in HR 2728 is consistent from long-held positions adopted by the Interstate Oil and Gas Compact Commission. It is referred to as, ‘Protecting States’ Rights to Promote American Energy Security Act’. The bill deals with hydraulic fracturing which Alaska companies — and those operating throughout the United States — have employed for many years. In part, the bill proposes that, "The Department of the Interior shall not enforce any Federal regulation, guidance, or permit requirement regarding hydraulic fracturing, or any component of that process, relating to oil, gas, or geothermal production activities on or under any land in any State that has regulations, guidance, or permit requirements for that activity." -dh |
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Yesterday, Legislators representing the Energy Producing States Coalition — including Alaska Senator Cathy Giessel (NGP Photo) — sent Yesterday, the House Natural Resources Subcommittee on Energy and Mineral Resources held a legislative hearing on H.R. 2728, the Protecting States’ Rights to Promote American Energy Security Act. This bipartisan legislation, introduced by Representative Bill Flores (TX-17), would protect state rights, American jobs and American energy production by limiting the Obama Administration’s ability to impose duplicative federal regulations on hydraulic fracturing on federal lands.
Earlier this year, the Obama Administration proposed new federal hydraulic fracturing regulations. These new rules would add costly, duplicative, and unnecessary layers of red tape that will only stand in the way of developing America’s natural energy resources to create jobs, lower energy prices, and strengthen our energy security.
“The last thing the United States needs right now is duplicative regulation of an already stringently regulated process, unless, of course, we need increased federal spending and bureaucracy; delays in providing jobs, revenue, and affordable domestic energy; confusion among operators and regulators; and one-size-fits-all regulations that are ignorant to regional differences… As for Alaska in particular, approximately 25 % of Alaska’s wells have been hydraulically fractured and we have been performing hydraulic fractures for about forty years. Moreover in its history of oil and gas operations, Alaska has yet to suffer a single documented instance of subsurface damage to an underground source of drinking water. As long as each well is properly constructed and its mechanical integrity is maintained, (in other words as long as operators follow our regulations) hydraulic fracturing should have no potential to damage any fresh groundwater.” – Cathy P. Foerster, Chair and Engineering Commissioner of the Alaska Oil and Gas Conservation Commission (NGP Photo)
Fuel Fix: Controlling Our Own Destiny on Gas Prices Op-Ed by David  Holt. The price at the pump has had more swings than a schoolyard playground of the past couple of months, and consumers can expect more. Yet America is on track to take more long-term control over its destiny with fuel prices, as we continue to realize the benefits of increased domestic oil and natural gas production. |
“In Congress, we frequently address the powers of the states versus federalism on a myriad of issues from health care, to labor, to education. H.R. 2728, the ‘Protecting States’ Rights to Promote American Energy Security Act’ takes an important step towards recognizing the important role states play in balancing energy production and effective regulations. These are important components to provide a path forward for the House Republicans’ goal of American Energy Security by the year 2020. The bill before us at today’s hearing is not a question of regulating or not regulating hydraulic fracturing. The bill before us today is about empowering local self-government and placing a check on the growth of out-of-control, one-size-fits-all-government,” said Rep Bill Flores.
“The Administration continues to pursue implementation of its own needless one size fits all federal regulations, with practically no acknowledgement of the work the States have been doing for years in managing energy production while taking into consideration their own unique geography, hydrology, and production issues. This big government one size fits all generic approach to energy regulation will not work, yet this Administration continues to approach energy regulation like all 50 states are exactly the same,” said Subcommittee Chairman Doug Lamborn. “The ‘Protecting States’ Rights to Promote American Energy Security Act’ will require the Bureau of Land Management (BLM) to defer to existing State regulations and prohibit the Department from enforcing needless and duplicative federal regulations in states that have existing regulations in place.”
Witnesses testifying before the Subcommittee spoke from their firsthand experience with state regulation of hydraulic fracturing. They stressed how states are already effectively and safely regulating this process, and how federal regulations would be duplicative and burdensome:
“The Commission has in place a successful and comprehensive regulatory framework to ensure that all oil and gas activities, including fracking, do not impact groundwater or surface water…Commission records do not indicate a single documented water contamination case associated with the process of fracking in Texas, and this is due to consistent and thoughtful regulation from within our state by regulators who know Texas best…Unnecessary, cumbersome federal oversight will slow Texas’ current efficient processes. While the oil and gas industry is one of the top economic drivers in Texas, we know that efficient, consistent and predictable regulation within the energy industry is the key to our state’s economic success, and the success of domestic U.S. energy production.” – Christi Craddick, Commissioner of the Texas Railroad Commission
“The Division has always had very stringent rules concerning well bore construction and the protection of water resources. However, to make the process of hydraulic fracturing more transparent and alleviate the recent public fear of hydraulic fracturing, the Division adopted a formal hydraulic fracturing rule in October 2012… I believe that Utah DOGM does an excellent job in monitoring hydraulic fracturing in Utah. Also, it is my experience that other States also perform at a similar exceptional level.” – John C. Rogers, Utah’s Associate Director of the Division of Oil, Gas and Mining
Consumer Energy Alliance Clips- July 25, 2013
Businessweek: Biofuel Makers Seek to Ease Mandates to Avert Congressional Cuts – Makers of some renewable fuels are asking the federal government to ease quotas for use of their products in a bid to head off a congressional overhaul of a program that refiners say is driving up costs at the pump.
Platts: Seeing the AAA’s view on ethanol from both sides – It must be great to be the AAA. Everybody in the US ethanol business wants you to like them. That’s why a war of words erupted over the past few days as to whether the AAA, the country’s leading group representing motorists, likes ethanol or hates it. The idea that the AAA is not a fan of at least one usage of ethanol is an easy conclusion to reach, given that the organization late last year made it quite clear that it had issues with E15, gasoline with a 15% ethanol blend.
Washington Post: Fire rages on gulf rig leaking natural gas – Fire raged on an offshore drilling rig in the Gulf of Mexico on Wednesday, a day after a natural gas leak from the well forced the 44-person crew to evacuate. The Coast Guard said that portions of the rig had “folded” and collapsed and that firefighters were trying to protect the legs of the rig, which was standing in about 150 feet of water. Because it is a natural gas well, the Coast Guard said there would be no impact on shorelines and that a one-mile by 200 foot sheen from gas condensates was “dissipating.”
Fuel Fix: Offshore regulation critic in middle of latest Gulf well blowout – One of the biggest critics of the Obama administration’s regulation of the offshore industry since the Deepwater Horizon disaster three years ago now finds himself in the middle of a brewing firestorm as a jack-up rig continues to burn in the Gulf of Mexico after an undersea natural gas well blew out.
Huffington Post: Hercules Offshore Drilling Rig Partially Collapses Off Louisiana Coast – A shallow-water Gulf of Mexico drilling rig has partially collapsed off the coast of Louisiana after catching fire because of a ruptured natural gas well, U.S. regulators said on Wednesday.
NPR: Offshore Drilling Rig Remains On Fire In Gulf Of Mexico – A natural gas well off the Louisiana coast has caught fire after a blowout forced the evacuation of 44 workers. It is unclear how long it will take to extinguish the blaze.
CNN Money: Engineers get rich as talent war heats up – Experienced engineers are being offered sky-high salaries and are taking regular calls from headhunters as the booming shale gas industry fights for scarce talent, snapping up engineers from other sectors.
The Hill: GOP slams EPA on ‘fracking’ as committee leader weighs bill – House Science Committee Chairman Lamar Smith (R-Texas) is weighing legislation to alter the scope of the Environmental Protection Agency’s (EPA) study on the impact of oil-and-gas “fracking” on drinking water.
Plastics News: Sasol and Ineos form joint venture to build HDPE plant – Thanks to low-priced shale gas, another 1 billion pounds of polyethylene capacity is headed for North America. Sasol Ltd. and Ineos Group on July 24 announced plans to form a joint venture that would build a plant in southwest Louisiana with annual capacity of just over 1 billion pounds of bimodal high density PE. The final investment decision will be made in the first half of 2014, with physical start-up of the plant expected by the end of 2015.
Los Angeles Times: Lawmaker, others say state oversight of oil field fracking is lacking – Environmentalists including a lawmaker criticized state regulators Wednesday for not adequately tracking and overseeing fracking activity in California oil fields. Fracking, or hydraulic fracturing, involves the injection of water and chemicals into the ground to stimulate production in oil wells.
ChadRad KCSR: (Neb.)-County Board Rejects Anti-Keystone Pipeline Measure – The York County commissioners have rejected a resolution opposing placement of the proposed Keystone XL pipeline in the southeast Nebraska County. Two commissioners supported the measure at Tuesday morning's meeting, but three opposed it.
News & Observer: McCrory, GOP make last-minute push to lift state's fracking moratorium – Gov. Pat McCrory came to the legislative building Wednesday evening to whip votes on a newly crafted measure to lift the state's moratorium on fracking. The fracking provision — which would lift the moratorium July 1, 2015 — is tucked into a proposed conference report on Senate Bill 127, a measure to reorganize the state's commerce department and privatize part of the state's job recruitment efforts.
Tribune-Review: The fracking report: Positive news – owhere near a final report, much less the last word on the issue, a U.S. Department of Energy study's preliminary findings that Marcellus shale natural gas drilling is unlikely to contaminate water wells nevertheless brighten the outlook for an industry that must operate safely to maximize this clean, affordable domestic energy source's benefits.
WBAY2 News: Opposition to frack sand mine near Arcadia – Neighbors are opposed to a proposed frack sand mine near Arcadia in Trempealeau County. AllEnergy Silica needs approval from the town and county before beginning mining operations on 800 acres. About 60 residents who attended a meeting this week criticized the plan and expressed concern about health and environmental risks.
Sun Gazette: Natural gas caucus field hearing set – Bipartisan members of the congressional natural gas caucus will convene at Pennsylvania College of Technology at 8:30 a.m. Friday to hear testimony on the economic impacts of shale gas production. The event is open to the public but there will be no public comment.
The Foundry: Keystone Pipeline: Shaheen–Portman Bill the Wrong Place for a Keystone Amendment – The Heritage Foundation has already made the case that the Shaheen–Portman energy efficiency bill promises only more federal intervention and corporate welfare. Adding an amendment to approve the Keystone XL Pipeline project wouldn’t make the bill any better.
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