Interior sets new rules for drilling on public land

President Barack Obama speaks during his visit to oil and gas production fields located on federal lands outside of Maljamar, N.M., Wednesday, March, 21, 2012.

/ AP Photo/Pablo Martinez Monsivais

(AP) WASHINGTON — The Obama administration said Friday it will for the first time require companies drilling for oil and natural gas on public and Indian lands to publicly disclose chemicals used in hydraulic fracturing operations.

The proposed "fracking" rules also set standards for proper construction of wells and wastewater disposal.

Interior Secretary Ken Salazar said the long-awaited rules will allow continued expansion of drilling while protecting public health and safety.

"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 rules 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," he said.

The new rules, which have been under consideration for a year and a half, were softened after industry groups expressed strong concerns about an initial proposal leaked earlier this year. The proposal would allow companies to file disclosure reports after drilling operations are completed, rather than before they begin, as initially proposed. Industry groups said the earlier proposal could have caused lengthy delays.

Some environmental groups criticized the change as a cave-in to industry, but Salazar said the rules were never intended to cause delays, but to ensure that the public is "fully aware of the chemicals that are being injected into the underground" by companies seeking to produce oil and natural gas.

The Bureau of Land Management, which oversees drilling on public lands, estimates that 90 percent of the approximately 3,400 wells currently drilled on federal and Indian lands using hydraulic fracturing techniques.

The rules would not affect drilling on private land, where the bulk of shale exploration is taking place. A nationwide drilling boom in formations such as the Marcellus Shale in the Appalachian region and the Bakken in North Dakota and Montana, as well as in traditional production states such as Texas, Oklahoma and Louisiana, has led to 10-year lows in natural gas prices.

Still, Salazar said he hopes the new rules could be used as a model for state regulators.

"We hope our leadership is followed," he said at a news conference.

Industry groups and Republican lawmakers say federal rules are unnecessary, arguing that states already regulate hydraulic fracturing, in which water, sand and chemicals are in injected underground to break up dense rock that holds oil and gas.

The industry also has complained that disclosure of chemicals used in fracking could violate trade secrets, although Salazar said the rule would include exemptions for specific formulas. Some of the chemicals used in fracking include benzene, toluene, ethylbenzene and xylene, all of which can cause health problems in significant doses.

Critics say fracking chemicals have polluted water supplies, but supporters say there is no proof.

Tom Amontree, executive vice president for America's Natural Gas Alliance, an industry group, said the Obama administration "may not fully appreciate" significant regulatory steps taken by states such as Colorado, Texas and Wyoming to oversee hydraulic fracturing.

"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. As drafted, the federal proposal would create reporting requirements and "regulatory impediments" that could substantially affect the ability of companies to drill on public lands, he said.

The proposed rules will be subject to public comment for 60 days, with a final order expected by the end of the year, said Bob Abbey, director of the land management bureau.

[victry13]

This is nothing short of an atrocity! Has anyone noticed that not one individual native american person living on these reservations has been asked what they think or if they even want such a heinous thing happening on their homeland? has even 1 indian been notified of the dangers and hazards to their children, their lands, their air, their water, everything they have left, which isn't much? has even 1 been offered liquidation so they can afford to take their families and remove to a safer location. Indian removal being the only course left... again. No. I know becuase I'm living on one of them and i am one of them and i have children and grandchildren growing up here. And my heart is once again laying on the floor right now as I write this and the tears are about to flow. i guess it will just never end. I hate mankind, he should be destroyed, he is a failed biological experiment.

[mryoubrian]

My guess is that the "proprietary recipe" of the chemicals used is because they are illegal. What company has access to cheap chemicals that other companies do not. You can frack with water in some cases but even water cost money to ship in to the fracking site. ALL chemicals cost money to ship into the fracking site...... unless........ you found a way to actually charge people to bring in chemicals to the fracking site for free.
I wonder what companies would be willing to load chemicals on a truck, pay to have them shipped to the site and then give them away for free?
Answer- chemicals you normally have to pay a high cost to dump... like old gasoline and diesal fuel, benzene and a thousand other chemicals. Plus you don't have anyone on a fracking site asking you where you got the chemicals from or what they are. THAT is why they want to protect the "proprietary recipes" from becoming public.

Tens of thousands of other companies have to release their "recipes" to the oversight of the gov't to make sure they are safe. Food companies, medical companies, hair products,deodorants, floor cleaners, paint, stains, laundry detergents, skin care products, etc.

Can you imagine if your doctor would not tell you what he injected into you because it was a "proprietary recipe"? Or your dentist? Or how about beef products?

Colonel Sanders recipe may be a secret but I guarantee you the gov't knows whether it is safe or not.

Amazing that Haliburton got this unique, industry wide, exception for their company passed so easily through the congress.

I wonder how they did that?