PCCA Journal|2
nd
Quarter 2015
25
O
n March 20, the U.S. De-
partment of the Interior
released final standards
that it said will sup-
port safe and respon-
sible hydraulic fracturing on public and
American Indian lands. The agency said
the standards “will improve safety and
help protect groundwater by updating
requirements for well-bore integrity,
wastewater disposal, and public disclo-
sure of chemicals.”
The following is excerpted from an
Interior Department press release on the
new standards:
There are more than 100,000 oil and
gas wells on federally managed lands. Of
wells currently being drilled, over 90 per-
cent use hydraulic fracturing. The rule
applies only to development on public
and tribal lands and includes a process
so that states and tribes may request
variances from provisions for which they
have an equal or more protective regula-
tion in place. This will avoid duplica-
tion while enabling the development of
more protective standards by state and
tribal governments. Today’s final rule is
a major step in the Department of the
Interior’s agenda to support a balanced,
prosperous energy future. Other reforms
will also include important measures to
target where oil and gas leasing occurs
and protect sensitive areas that are too
special to drill.
“Current federal well-drilling regula-
tions are more than 30 years old, and
they simply have not kept pace with the
technical complexities of today’s hydrau-
lic fracturing operations,” Interior Secre-
tary Sally Jewell said. “This updated and
strengthened rule provides a framework
of safeguards and disclosure proto-
cols that will allow for the continued
responsible development of our federal
oil and gas resources. As we continue
to offer millions of acres of public lands
for conventional and renewable energy
production, it is absolutely critical the
public have confidence that transparent
and effective safety and environmental
protections are in place.”
Key components of the rule, which
will take effect in 90 days, include:
• Provisions for ensuring the protection
of groundwater supplies by requiring a
validation of well integrity and strong
cement barriers between the wellbore
and water zones through which the
wellbore passes;
• Increased transparency by requiring
companies to publicly disclose chemi-
cals used in hydraulic fracturing to the
Bureau of Land Management through
the website FracFocus, within 30 days
of completing fracturing operations;
• Higher standards for interim storage of
recovered waste fluids from hydrau-
lic fracturing to mitigate risks to air,
water, and wildlife;
• Measures to lower the risk of cross-
well contamination with chemicals
and fluids used in the fracturing
operation by requiring companies to
submit more detailed information on
the geology, depth, and location of
preexisting wells to afford the BLM
an opportunity to better evaluate and
manage unique site characteristics.
“This rule will protect public health and
the environment during and after hydrau-
lic fracturing operations at a modest cost
while both respecting the work previously
done by the industry, the states, and the
tribes and promoting the adoption of more
protective standards across the country,”
said Assistant Secretary for Land and
Minerals Management Janice Schneider.
“It will be implemented in the most ef-
ficient way possible to avoid duplication
or unnecessary activities by industry, other
regulators, or BLM staff. We know how
important it is to get this right.”
The new rule is the culmination of
four years of extensive public involve-
ment to bring onshore oil and gas drill-
ing regulations into the 21st century. The
BLM published both a draft rule and a
supplemental draft rule, held regional
forums and numerous stakeholder meet-
ings on the proposal, and reviewed more
than 1.5 million public comments.
BLM staff studied state and tribal
regulations and consulted with state and
tribal regulators, industry, environmental
experts, and the public, including com-
munities affected by oil and gas opera-
tions. In many instances, provisions in
the new rule are similar to or based on
existing state or tribal rules and industry
best practices. The result of this careful
consultation is a rule that will enhance
environmental protection in a thoughtful
and cost-effective way. BLM estimates
the new rule will cost less than one-
fourth of 1 percent of the cost of drilling
a well, based on the Energy Information
Administration’s average per well cost of
$5.4 million.
The BLM oversees about 700 mil-
lion subsurface acres of federal mineral
estate and carries out regulatory duties
of the Secretary of the Interior for an
additional 56 million acres of Indian
mineral estate across the United States.
The Indian Mineral Leasing Act and
other laws require that Indian lands and
communities have the same protections
as U.S. public lands.
POWER NEWS
Continued on page 26
Interior Department Releases Fracking Rule