There were few surprises when the National Association of Regulatory Commissioners' energy and environmental resources and natural gas committees held a joint meeting on hydraulic fracturing at NARUC's 2012 winter meeting in Washington on Feb. 7. There were several insights, however.
State utility commissioners clearly wanted more information about the technology and its applications, even though many had separate oil and gas commissions which directly regulate wellsite operations.
"What frustrates me is that years ago, when questions began to arise, federal agencies, [the US Environmental Protection Agency] foremost among them, said that if states worked hard to fill the regulatory void, they'd stay out of it," said James L. Keffer (R-Eastland), chairman of the Texas House of Representatives' Energy Resources Committee.
"This hasn't happened. We're getting mixed signals from the federal government now," he maintained. "There's a huge disconnect between Texas and federal regulators. Everybody else is caught in the middle."
Doug Louis, director of the Kansas Corporation Commission's conservation division, reinforced the idea that states are best qualified to regulate oil and gas operations and safeguard against adverse environmental impacts.
"The minimum depth for surface pipe is determined by state regulators who are well acquainted with groundwater depth in the region," he noted. The industry has worked out to match casing materials with varying downhole conditions to ensure well bore integrity, Louis added.
Two other panelists wanted to dispel preconceptions. Matt Watson, senior energy policy manager at the Environmental Defense Fund, said that the organization does not oppose gas resource development because it recognizes that gas is an important part of the domestic energy portfolio.
More transparency
EDF would like to see more transparency overall, he continued. Many in the oil and gas industry were defensive when questions first were raised about frac fluid ingredients, and created a perception of secrecy that lingers despite subsequent voluntary disclosures, according to Watson. Companies could combat this by willingly disclosing their regulatory compliance records, he suggested.
Interstate Oil & Gas Compact Commission Director Mike Smith said that five states require companies to use Frac-Focus, the voluntary registry IOGCC jointly launched last April with the Groundwater Protection Council, and four more are considering it.
Cal Cooper, special projects manager in the chief executive's office at Apache Corp., noted concerns over fracing's water requirements. It uses less than 2% of available water (and sometimes as little as 0.33%), compared to coal-fired power plants which consume about 4%, he said.
"The important thing is that it's never much," he told OGJ after the meeting. "We still need to respect water, however. Even if it's a small percentage, it can be a big deal."
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