Posts Tagged ‘news’

States to U.S. Congress: Hands Off Hydraulic Fracturing

As Waxman, DeGette consider handing regulatory reins over to EPA,state legislatures speak up in support for maintaining,strengthening current state-federal partnership

WASHINGTON, DC – As their federal counterparts in Washington, D.C. look for new and creative ways to restrict the responsible use of a critical natural gas and oil extraction technique known as hydraulic fracturing, states with decades of experience in regulating the technology are not taking the effort lying down.

Earlier this week, the Louisiana House became the latest in a string of legislatures where resolutions affirming the chamber’s support for hydraulic fracturing – or opposition to Congress’s effort to disrupt the current partnership – were either formally filed or broadly approved. Many of these states have effectively regulated fracturing activities for more than a half century, and stand to lose the most – in jobs, revenue, royalties and energy output – should EPA be given regulatory authority over the proven technology. To learn more specifics about hydraulic fracturing technology, click here.

“If hydraulic fracturing were unsafe, unregulated, and largely unnecessary as a tool of producing American energy, Congress would have a good reason to step in, and states would have an even better one to step out,” said Lee Fuller, a spokesman for Energy In Depth, a new coalition of American oil and natural gas trade groups. “Clearly, that is not the case. And that’s why you’ve seen states from the Southeast to the Intermountain West stand up, shoulder-to-shoulder, and affirm their support for this safe, critical and increasingly valuable well stimulation technology”.

The latest effort out of Baton Rouge, La. was introduced by Rep. Joe Harrison, R-Napoleonville, and calls on Congress to maintain a provision in existing federal law preserving Congress’s intent not to regulate hydraulic fracturing under the Safe Drinking Water Act (SDWA) of 1974, legislation designed to protect public water supplies. In 1974, hydraulic fracturing had already been in commercial use for 25 years. At no time during its deliberation, nor in subsequent debates on amendments to SDWA in 1986 and 1996, was the concept of regulating hydraulic fracturing under SDWA ever a consideration.

The reason? Hydraulic fracturing was then, and continues to be now, aggressively regulated by the states, compiling an impressive record of safety and performance over that time. More than 60 years after its first commercial use, not a single case of hydraulic fracturing-related contamination has been documented by the federal government. In fact, a landmark 2004 study conducted by EPA found that hydraulic fracturing posed “no threat” to underground drinking water supplies.

Because of that, other states – such as Alabama, North Dakota, Utah, Wyoming, Oklahoma and Texas – have taken up or passed resolutions similar to the one being considered in Louisiana. In New Mexico, former U.S. Energy Secretary and current Governor Bill Richardson introduced a plan in February aimed at easing unnecessary compliance burdens, recognizing that thousands of jobs and millions in potential revenue were tied to safe, responsible, state-regulated natural gas and oil production.

Those conclusions are supported in full by a recent set of studies known collectively as Project BRIEF (Bringing Real Information on Energy Forward), commissioned by the Energy in Depth coalition. In particular, BRIEF found that proposed changes to federal regulations, including those related to hydraulic fracturing, could result in:

  • The forced closure of more than half of America’s oil wells, and a third of its gas wells
  • $4 billion in lost revenue to the federal government; state treasuries would lose $785 million
  • Domestic oil production slashed by 183,000 barrels per day; natural gas by 245 billion cubic feet per year
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Energy in Depth: Today’s News

New York Times: Industry Campaign Targets ‘Hydraulic Fracturing’ Bill. “An industry coalition launched a campaign yesterday arguing that new rules would kill jobs and batter the economy, writes the Times.

HumanEventsOnline: Obama’s Expensive Energy Economy Is Totally Unnecessary. Human Events writes about Washington’s new attempts to curb domestic fossil fuel production, including House Energy and Commerce Chairman Henry Waxman (D-Calif.): “He’s on a back-door mission to stop natural gas production in the Marcellus shale of Pennsylvania. A process known as “hydraulic fracturing” is necessary to gain access to the trillions of cubic feet of natural gas there. The state has regulated that process for the past 60 years, but Waxman would like to use the Safe Drinking Water Act to regulate it, thus giving the finally authority on its use to the anti-carbon Environmental Protection Agency.”

 1490NewsBlog: Gabler Endorses Energize PA Plan. 1490NewsBlog reports that “State Rep. Matt Gabler (R-Clearfield/Elk) has endorsed the Energize PA energy plan, a product of the House Republican Policy Committee, over Gov. Ed Rendell’s proposal to add a new severance tax to natural gas drilling operations in Pennsylvania.”

Tribune-Democrat (Johnstown, PA): Energy Exploration: Test Wells Planned to Determine Natural Gas Potential. Test wells will come on-line in the next month in the Ben’s Creek area of Portage Township, despite the fact that “the rush to tap natural gas stored in the Marcellus shale beds in Pennsylvania has eased since last year because of declining energy prices and the sluggish economy.”

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Energy In Depth: Today’s News

The American Spectator: People of Plenty. “Once again we have become a People of Plenty — this time in natural gas,” writes William Tucker. “Hats off to the oil-and-gas men with their 3-D computerized formation maps, their rented drilling rigs and their dirty hands. Once again, they have provided us with more energy than all the foundation studies, energy blogs, feed-in tariffs, production tax credits and renewable portfolios will ever generate. Only two years ago it appeared the Lower 48 was pretty well played out for natural gas, just as oil has been for three decades. Now it appears we have enough gas to get us through the 21st century.”

The Marshall News Messenger (Texas): Sales Tax Receipts Up. Thanks to energy activities in the are, “sales tax revenues for the city of Marshall are ‘kind of amazing’ for the first four months, City Manager Frank Johnson said…During that four-month period, sales tax receipts for Marshall are up 14.81 percent, $369,069 above the $2.5 million collected year-to-date in 2008…’I think a lot of the reason we’re seeing an increase here in East Texas is because of drilling activity,’ Johnson said. ‘I think Haynesville Shale insulated us a little from the general downturn the rest of the nation is seeing.’ There has been no surge of growth in the Marshall area of late. The city manager said residential construction is dropping off and commercial construction is down from last year. ‘The only thing new is drilling,’ he said. ‘That’s the big difference.’”

Press & Sun Bulletin (Binghamton, NY): Broome Offers Landfill, Airport for Drilling. Broome County has sent a proposal to energy firms asking them to bid on natural gas leasing rights at Greater Binghamton Airport and the Broome County Landfill. “The county believes it can partner with a gas company and do that without compromising environmental issues,” said Joe Sluzar, Broome County attorney.

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