What the Waxman Report Doesn’t Report
Energy In Depth Corrects the Record on State Disclosure
EID responds to mistaken assertions made during recent markup of Energy & Commerce Committee
WASHINGTON – The federal government mandates the disclosure of materials used in the commonly used, 60-year-old process of hydraulic fracturing – but do any of the states? Late last month during a markup in the House Energy and Commerce Committee, U.S. Rep. Diana DeGette (D-Colo.) told her colleagues on the panel that “only three states have laws requiring reporting.” But according to the Ground Water Protection Council, the actual number is significantly higher than that – and as recently as this week, growing.
Earlier today, Energy In Depth executive director Lee Fuller sent a detailed letter and accompanying packet of information on disclosure to every member of the Energy and Commerce Committee, seeking to dispel any misconceptions that may exist on what is fundamentally a basic, verifiable question. The text of that letter, along with links to the various addenda included with it, can be found below.
June 11, 2010
The Honorable Henry Waxman
Chairman, Committee on Energy and Commerce
2125 Rayburn House Office Building
Washington, DC 20515-6115
The Honorable Joe Barton
Ranking Member, Committee on Energy and Commerce
2322A Rayburn House Office Building
Washington, DC 20515-6115
Dear Chairman Waxman and Ranking Member Barton:
On May 26, the Energy and Commerce panel held a full committee markup of H.R. 5320, the Assistance, Quality, and Affordability (AQUA) Act of 2010, a bill that was reported favorably to the House by a vote of 45-1. One of the amendments brought up for consideration that afternoon, offered by U.S. Rep. Diana DeGette (D-Colo.), sought to amend the Safe Drinking Water Act (SDWA) to target the continued use of hydraulic fracturing, a key energy technology never previously regulated under SDWA, but over the past 60 years, one that has been aggressively regulated by the many states in which the technique is commonly deployed.
Although the DeGette language was ultimately withdrawn — a motion that was supported by the chairman – the debate that was spurred by the introduction of the amendment included several assertions which, upon closer scrutiny, don’t quite reflect the current reality as it relates to state involvement in the regulation and oversight of fracturing activities. I appreciate the opportunity to correct that record on behalf of the Independent Petroleum Association of America and Energy In Depth, of which I have the pleasure to serve as executive director.
Reviewing the archived video of the debate on the committee’s website, Rep. DeGette on several occasions makes reference to what she believes to be an inadequate number of states currently requiring service companies to disclose information related to the materials used in the fracturing process. In particular, she suggests that “only three states have laws requiring reporting,” and that two other states “are considering implementing those laws” as well. All told, she estimates that “only one-tenth of the states require this type of reporting,” and proceeds to use that premise as the foundation for constructing a broader argument in support of her amendment.
But those numbers don’t quite align with research jointly published last year by the Ground Water Protection Council (GWPC) and the U.S. Department of Energy. According to that report, of the 27 states in which 99.9 percent of oil and gas activity takes place:
- 25 of those states require a detailed well treatment report to be submitted to state regulatory agencies;
- 18 states require the submission of a list of materials used (water, sand, additives) in the process;
- 19 states require the volumes of those materials to be disclosed; and
- 10 states demand a list of specific additives the service company intends to use on site.
Attached for your convenience, please find a previously unpublished addendum to the GWPC report providing a detailed summary of how these states regulate hydraulic fracturing, as well as other rules in place governing every stage of the energy exploration, production and delivery process. Please note that since this addendum was compiled, a number of states – such as Colorado, Pennsylvania, and most recently Wyoming – have updated their disclosure rules to provide for even greater level of transparency in the process.
In analyzing the disclosure requirements currently in place in the individual states, it’s important also to recognize that the federal government also requires the forthright disclosure of additives used in the fracturing process in the form of Material Safety Data Sheets (MSDS), which are mandated by the Occupational Safety and Health Administration (OSHA) to be present at every well site in America where a minimum amount of chemicals are found. In states such as New York, Pennsylvania and West Virginia, these sheets and aggregations thereof can be accessed easily by navigating to the website of the appropriate state regulatory office. In other states, similar information can be obtained by submitting a simple request to the agency.
In closing, one additional comment made by Rep. DeGette during the debate over her amendment last week may warrant further explanation – specifically, the assertion that “in 2005, the oil and gas industry got itself exempted from the Safe Drinking Water Act, the only industry which is exempt from that legislation.”
As senior members of the committee during that time, certainly you remember that the provision of the Energy Policy Act of 2005 dealing with hydraulic fracturing did not result in a substantive change to existing law; it merely clarified Congress’s long-standing position that hydraulic fracturing had never been – and, in fact, was never intended to be – regulated under SDWA. But that doesn’t mean other aspects of the process aren’t regulated under SDWA and a host of other federal rules and statutes. For your convenience, I’ve attached a fact sheet depicting the various forms of federal regulation (SDWA, Clean Water Act, etc.) that apply to each step of that process.
Thank you for the opportunity to address some of the misconceptions that exist regarding ongoing efforts by the states to discharge their long-held responsibilities related to the regulation of oil and natural gas. Please don’t hesitate to contact me directly should you have any additional questions, concerns or comments.
Sincerely,
Lee O. Fuller
Executive Director
Energy In Depth
cc: All members of the House Energy and Commerce Committee
Enclosures
ICYMI – Rep. DeGette Withdraws Potentially Destructive Amendment Targeting Hydraulic Fracturing
Chairman Waxman: “I would ask that you withdraw the amendment at this time … Now is not the right time for this change.”
Energy In Depth
“A proposed amendment to rewrite the Safe Drinking Water Act that may be considered by the House Energy and Commerce Committee today could have “serious consequences” for hydraulic fracturing, a key technology used for decades to extract natural gas from shale formations, Energy In Depth executive director Lee Fuller warned in a letter to chairman Henry Waxman, D-CA, and ranking member Joe Barton, R-TX. … “As it relates to the composition of fluids commonly used in the fracturing process today, it’s important to note that greater than 99.5 percent of the mixture is comprised of water and playground sand,” Fuller said in the letter.” (Washington Examiner, 5/25/10)
“The oil and gas industry opposes DeGette’s legislation. In a letter sent to lawmakers Tuesday, Lee O. Fuller, VP of government affairs for the Independent Petroleum Association of America, argues that fracturing is safe and has been sufficiently monitored by state-level regulators such as the Texas Railroad Commission: The fact is, hydraulic fracturing has been ably and aggressively regulated by the states almost since the moment of its invention, with regulators compiling an impressive record of enforcement and oversight during that time.” (Dallas Morning News, 5/25/10)
“States would have to sacrifice other functions to generate the information,” Fuller wrote. “Of course, if they choose not to do that, states would have to give up their regulatory responsibilities under [the Safe Drinking Water Act] and turn those functions over to EPA. Not only would this burden EPA — since it is not staffed with the capabilities to undertake daily regulatory responsibilities — but it would also lead to duplicative regulations.” (E&E News, 5/25/10)
“It’s a record that continues to be acknowledged by regulators and lawmakers on the federal level as well, most recently by EPA’s director of drinking water protection, who told a reporter in February that there existed “no evidence” that “states aren’t doing a good job already” when it comes to regulating fracturing activities.” (Letter, 5/25/10)
U.S. Chamber of Commerce
“For the past 60 years, hydraulic fracturing has been safely and effectively regulated by the states. Oil and gas companies already provide full chemical disclosure in accordance with all applicable federal and state laws and regulations. In contrast to the assertions on which this amendment is premised, these materials are well known to state regulators and information about them are generally available to members of the public by request to the state.
“More importantly, Rep. DeGette’s amendment could reduce oil and gas production in the United States. … The loss of these new and innovative products would mean greatly reduced oil and gas production in the United States, greater reliance on imports, and the loss of high-paying jobs.
“This amendment would do nothing more than add an unnecessary layer of bureaucracy that would stifle domestic energy production, increase energy costs for American consumers and small businesses, and potentially force U.S. manufacturing overseas. At a time when the United States is trying to become energy independent, fight an ailing economy, and put Americans back to work, now, more than ever, is the time to harness the power of proven technologies that will develop American energy resources.” (Letter, 5/25/10)
National Association of Manufacturers
“The amendment … is expected to include language taken from H.R. 2766, and will seek to rewrite the Safe Drinking Water Act in a manner that will limit energy producers’ ability to deploy a key technology, known as hydraulic fracturing, which is needed to access abundant energy resources from shale formations onshore.
“Manufacturers rely on natural gas not only as a source of electricity, but as a feedstock for products such as plastics, fertilizer and pharmaceuticals. U.S. manufacturers use approximately one-third of the nation’s natural gas supplies. Because natural gas is a regional commodity, U.S. manufacturers need reliable and increased access to domestic supplies, especially to the large reserves contained in the nation’s natural gas shale formations.” (Letter, 5/25/10)
Press Release: EID Statement on House Inquiry into Safe, Responsible Use of Hydraulic Fracturing
“Fracturing is safe, effective and very much needed in the context of today’s enormous challenges
related to energy, the economy, and the environment”
WASHINGTON – Energy In Depth executive director Lee Fuller issued the following statement today subsequent to news from the House Energy & Commerce Committee that the panel is interested in learning more about a critical, 60-year-old energy technology known as hydraulic fracturing:
“Hydraulic fracturing is an essential component of producing clean-burning energy in America today, and to the extent the committee’s inquiry into this process helps clear up some of the misconceptions that have come to be associated with the technology, it’s a study we look forward to contributing to. In our view, the committee will benefit enormously from learning more about the procedures, practices and regulations in place to safeguard underground sources of drinking water – and in particular, the steps that are taken at every wellsite in America to ensure the proper casing and cementing acts as an effective barrier between the inside of the wellbore and the environment outside it.
“If the responsible development of shale gas represents a potential game-changer for the United States, hydraulic fracturing represents a non-negotiable tool needed to leverage that potential into reality – and the jobs, revenue and opportunity that come with it.
“It’s understandable that lawmakers would take an interest in learning more about this critical technology moving forward. But as they begin their latest study of the fracturing process, we’d also commend to their attention the various statements, studies and testimonials by and from organizations like EPA, the Department of Energy, and the Ground Water Protection Council – all of which have found, and consistently so, that fracturing is safe, effective and very much needed in the context of today’s enormous challenges related to energy, the economy and the environment.”
READ MORE
- Frac In Depth: For more than 60 years, America’s energy producers have relied on an innovative technique known as hydraulic fracturing, used more than 1 million times
- Top EPA Water Official: No “documented cases that the hydro-fracking process was contaminating water supplies”
- EPA Report on HF: “No credible evidence” that hydraulic fracturing endangers groundwater
- Senate Hearing: Top Brass from Obama Admin Tell Congress They’re “Not Aware” of Even “One Case” of HF-Related Contamination
- Fact Sheet: HF Opponents Say the Darndest Things
- Issue Alert: When Gummy Bears Attack
- Graphic: What’s In Frac Fluids?
- Browner Memo: Letter of Support for Hydraulic Fracturing from Carol Browner, Fmr. EPA Administrator
Energy In Depth: “Fracturing is safe, effective and very much needed in the context of today’s enormous challenges related to energy, the economy, and the environment”
EPA Officials Confirm Fracturing’s Safety
Steve Heare, director of EPA’s Drinking Water Protection Division: “State regulators are doing a good job overseeing a key natural gas production technique called hydrofracking and there’s no evidence the process causes water contamination, a senior federal environment official said Monday. … I have no information that states aren’t doing a good job already. He also said despite claims by environmental organizations, he hadn’t seen any documented cases that the hydro-fracking process was contaminating water supplies.” (Dow Jones, 2/15/10)
EPA Water Chief Peter Silva, EPA Compliance Administrator Cynthia Giles, and Assoc. EPA Water Director Matthew Larsen were asked the following straightforward question at a recent Senate hearing:
- “Do any one of you know of one case of ground water contamination that has resulted from hydraulic fracturing?”
Their answer?
- “Not that I’m aware of, no.”
Fmr. EPA administrator and current White House energy czar Carol Browner: “EPA does not regulate – and does not believe it is legally required to regulate – the hydraulic fracturing of methane production wells … Moreover, given the horizontal and vertical distance between the drinking water well and the closest methane gas production wells, the possibility of contamination or endangerment of [drinking water] in the area is extremely remote.” (5/30/95)
EPA Study: “EPA found no confirmed cases that are linked to fracturing fluid injection into CBM wells or subsequent underground movement of fracturing fluids.” (2004)
U.S. House Members
Congressman Ed Markey (Mass.): “Ninety percent of all new electrical capacity in America since 1990 has been natural gas, and it’s going to continue on that way as a base load with the new mandates for renewable electricity in the states having a higher percentage increasingly coming from that source. But natural gas is going to do very well in the future, and the discoveries from the Marcellus Shale all the way through Barnett, that is all the way from New York down to Texas, are going to be big source of new electrical generation.” (12/2/09)
Congressman Doug Lamborn (Colo.): “Shale gas and other unconventional natural gas sources such as tight sands and coal bed methane provide more than 47 percent of the natural gas consumed in the U.S. annually. According to the Energy Information Administration, by 2030 these unconventional natural gas resources will provide 56 percent of the natural gas consumed by the United States. All of this was made possible through development of the Barnett Shale in Texas in the 1980s and 1990s, where innovative drilling techniques, horizontal drilling, combined with the safe long-standing practice of hydraulic fracturing, demonstrated that this unconventional fuel could be economically produced on a large scale.” (Roll Call, 2/8/10)
Congressman Dan Boren (Okla.): “Boren said he is working with Rep. Diana DeGette, D-Colo., to tone down her bill to regulate hydraulic fracturing of oil- and gas-bearing formations. The legislation was introduced to protect water supplies from the contamination, but Boren said the procedure is already safe. ‘If you shut down fracking, you shut down the industry,’ he said.” (Tulsa World, 7/21/09)
Congressman John Sullivan (Okla.): “Hydraulic fracking is one of the ways that we’ve been able to get these 120 year reserves. … For 60 years, they’ve been using. There’s not one – not one instance – that it’s leaked into groundwater. … There’s not one instance of it. … It’s going to create jobs in America.” (CNBC’s Mad Money, 2/8/10)
Congressman John Fleming (La.): “For years this process has been safely and effectively regulated by individual States; and of the more than 1 million wells fractured, not a single case of drinking water contamination has ever been recorded. … The casing, cement specifications and cementing process are governed by state and federal regulations as well as industry standards. In every case this process is supervised by state agency officials. Federal regulation of “hydrofracking” under the EPA would result in a sharp increase in costs to small and independent producers, as well as a dramatic decrease in output and job creation.” (Floor remarks, 6/23/09)
Congressman Earl Pomeroy (N.D.): “The [FRAC Act] is potentially very threatening to the oil exploration and recovery activity underway in North Dakota. It’s one of these pieces of legislation that is a solution in search of a problem.” (Dickinson Press, 7/17/09)
Congressman Cliff Stearns (Fla.): “Since the 1940s, hydraulic fracturing has helped to produce more than 7 billion barrels of oil and 600 trillion cubic feet of natural gas in the United States. … Hydraulic fracturing is essential to produce more of the oil and natural gas that the U.S. will consume in the next decades ahead. … Without [fracturing] most of our country’s abundant natural gas resources cannot be produced.” (Committee remarks, 1/20/10)
Congressman Glenn Thompson (Pa.): “Despite its clear record of environmental safety (a million wells drilled, not a single documented case of contamination) and stringent regulation by the states, a bill introduced earlier this summer would hand the regulatory reins over fracking to the Environmental Protection Agency in Washington. … In hydraulic fracturing, we now have the tools we need to confront these challenges in a safe and effective way. And if history is a guide, you can bet that’s exactly what we’ll do.” (Washington Examiner, 9/20/09)
Congressman Gene Greene (Texas): “Hydraulic fracturing is a well-tested technology that has been used to develop energy for over 60 years. … Hydraulic fracturing, as used to produce natural gas from shale formations, has created new opportunities for clean energy and employment without causing environmental damage. Recent studies on fracturing conducted by the Environmental Protection Agency in 2004 found no confirmed evidence of contamination of drinking water. …. Congress should not restrict a technology that plays such an integral part of our nation’s energy strategy.” (Floor remarks, 6/25/09)
“With recent advances in technology to extract more natural gas from unconventional gas resources, such as extended reach, horizontal drilling or hydraulic fracturing, we can unlock America’s 100 years’ supply of natural gas. This hydrofracking, U.S.?developed technology, is being exported to Europe and China.” (Committee remarks, 1/20/10)
Congressman John Shadegg (Ariz.): “A vast majority of our domestic supply is accessible only through hydraulic fracturing, a technique that has been used to extract gasoline or oil for more than 50 years. The EPA itself found, quote, “no confirmed cases that are linked to fracturing fluid injection into CBM wells or subsequent underground movement of fracturing.” … EPA did not find confirmed evidence that drinking water wells have been contaminated by hydraulic fracturing. … If we ban hydraulic fracturing, either outright or through the unintended consequences of legislation we pass, then all of these numbers that we have been talking about ?? the 100?year supply, the reasonable price that you just talked about ?? you would tell me are gone.” (Committee remarks, 1/20/10)
Congressman Fred Upton (Mich.): “The oil and natural gas industry supports more than 9 million American jobs and adds more than $1 trillion to the national economy. I hope I don’t need to remind our colleagues about the state of our economy, that unemployment is still in double digits nationally and 15 percent in Michigan. … Without that hydraulic fracturing, you wouldn’t be able to get, what, 20 percent, maybe out of these fields?” (Committee remarks, 1/20/10)
Congressman Mike Doyle (Pa.): “Last year alone Pennsylvania could attribute nearly 50,000 jobs to environmentally safe natural gas production.” (Committee remarks, 1/20/10)
Congressman Greg Walden (Ore.): “It looks to me like if we can invest in our own resources using new technologies in environmentally safe ways, we can generate revenues to the government and create jobs in our hometowns. (Committee remarks, 1/20/10)
Congressman Steve Scalise (La,): “So this really has nothing to do with safety. It is about a policy decision we are going to make, and do we really want to utilize the resource that this country has and the ability that we have to make our country independent of especially Middle Eastern oil, countries that don’t necessarily want to do good things with the money that they are getting to our country.” (Committee remarks, 1/20/10)
U.S. Senators
Senator Dorgan Byron Dorgan (N.D.): “Decade after decade, no one has found any evidence that there is any contamination with hydraulic fracturing. … I am not aware of any evidence that there is any contamination of groundwater with hydraulic fracturing when companies have followed the appropriate guidelines and regulations.” (Floor remarks, 7/27/09)
Senator Sen. Jim Inhofe (Okla.): “America has tremendous natural gas reserves. The exploration and production of these reserves using hydraulic fracturing has been regulated by the States and conducted safely for 60 years.” (Floor remarks, 7/27/09)
READ MORE
- Release: EID Statement on House Inquiry into Safe, Responsible Use of Hydraulic Fracturing
- Frac In Depth: For more than 60 years, America’s energy producers have relied on an innovative technique known as hydraulic fracturing, used more than 1 million times
- Fact Sheet: HF Opponents Say the Darndest Things
- Issue Alert: When Gummy Bears Attack
- GWPC Study: State Oil and Natural Gas Regulations Designed to Protect Water Resources
- Graphic: What’s In Frac Fluids?
