Maureen Lorenzetti
A multistakeholder group that reviews US state enforcement of oil and gas environmental rules hopes federal policymakers will help fund future audits.
The 4-year-old group is called STRONGER, an acronym for State Review of Oil & Natural Gas Environmental Regulations. It is an outgrowth of a 1998 volunteer assistance agreement made between the Interstate Oil & Gas Compact Commission and the US Environmental Protection Agency. STRONGER members include producers, government officials, and environmentalists.
Cost savings
Since 1999, the nonprofit group reviewed 18 state programs and conducted 8 follow-up audits. STRONGER supporters say industry and government saved an initial $42 billion near the beginning of the program and as much as $8 billion in subsequent years because of the group's efforts.
In an Oct. 16 letter to Sec. of Energy Spencer Abraham, Sen. Jeff Bingaman (D-NM) said, STRONGER "stands out as the efficient application of an innovative stakeholder consensus process that productively addresses the concerns of the public, state, tribal, and industry interests."
Bingaman called on the Department of Energy to continue funding, and said it should be a planning priority.
Past funding of the group's modest budget has come from federal and state agencies, industry and IOGCC. Most recently, the American Petroleum Institute contributed $100,000 in 2002, while EPA and DOE allocated $244,000 in 2001. STRONGER's 2003 budget is $322,500—the largest in its history because it conducted 4 reviews.
Neither DOE nor EPA's 2004 fiscal year budgets include specific earmarks, although STRONGER members hope the agencies can contribute discretionary funds.
Recent case study
The group last month released its review of Texas's environmental regulatory program. They found it well-managed but also called for improvements.
The 10-member review team said the state does a good job handling drilling and permit data as well as monitoring site waste. The review team also praised the state's voluntary cleanup and orphaned site cleanup program. But it also urged the state's regulator, the Texas Railroad Commission (TRC), to hire more staff, improve coordination with sister agencies, and make it easier for the public to participate in the rulemaking process.
TRC officials embraced the audit.
"The state review has been a very valuable experience for us because it provides an opportunity and a process for internal evaluation of our programs, as well as external evaluation of our programs by an independent, third-party stakeholder team," said a spokesman for TRC's oil and gas division.
Review team members included Michael Schmidt of the Oklahoma Corporation Commission, Don Neeper of the New Mexico Citizens for Clean Air & Water, Terri Lorenzon of the Wyoming Environmental Council, Allan Dees of ChevronTexaco Corp., Bill Stevens of the Texas Alliance of Energy Producers, and Ilan Levin of Henry & Levin, Attorneys at Law.
Observers included Dan Derkics of EPA's Office of Solid Waste, John Ford of DOE's National Petroleum Technology Office, Mark Carl of IOGCC, and A. Scott Anderson of the Texas Independent Producers & Royalty Owners Association.
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