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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