South Dakota, Alaska Propose Revisions To Hydraulic Fracturing Regulations

In the past few weeks, two states in key shale regions joined the chorus of states that have updated their oil and gas rules to address the unique issues posed by high volume hydraulic fracturing operations. On December 18, South Dakota’s Board of Minerals & Environment (a subdivision of its Department of Environment & Natural Resources) proposed targeted amendments to its oil and gas well regulations. The proposal addresses two specific substantive topics: (1) reporting requirements for well data and chemical information on fracturing fluids to the FracFocus website; and (2) well site reclamation requirements for completed wells that are not subsequently used for production. South Dakota is part of the large Bakken shale region, which also encompasses parts of North Dakota, Montana, and Wyoming. However, the state has not seen large-scale multi-stage hydraulic fracturing to the extent that shale activity has occurred in western North Dakota and other areas with tight shale formations. The agency is accepting comments through January 9 on its proposed rules, which are scheduled to be addressed at a January 17, 2013 public hearing. Coverage of the proposed rules also can be found here and here. http://www.jdsupra.com/legalnews/south-dakota-alaska-propose-revisions-t-18417/

EPA releases progress report on its hydraulic fracturing study

On December 21, 2012, EPA released a progress report on its ongoing comprehensive study to evaluate the potential impact on drinking water resources of hydraulic fracturing activities. The study began in late 2011 and is expected to be completed by 2014. The report describes the progress that has been made as of September 2012 on 18 ongoing research projects and describes the additional work that will be conducted. Of note, the report does not provide any research findings or conclusions about potential drinking water impacts. EPA’s research is focused on the five stages of the hydraulic fracturing water cycle: water acquisition; chemical mixing; well injection; flowback and produced water; and wastewater treatment and waste disposal. The research projects include: analyses of existing data regarding hydraulic fracturing fluids, wells, and spills; scenario evaluations involving subsurface migration, surface water, and water availability modeling; laboratory studies regarding public water supplies, wastewater treatability, including a specific study on bromide and brominated compounds in hydraulic fracturing wastewater; a toxicity assessment of chemicals used in hydraulic fracturing fluids; and, retrospective case studies into potential drinking water impacts in Colorado, North Dakota, Pennsylvania, and Texas. The progress report lists specific hydraulic fracturing fluid chemicals that have been identified by EPA for further review, while noting that the chemical and physical properties of most of these chemicals have been analyzed and summarized. With respect to spills of hydraulic fracturing fluids or wastewater, EPA indicated it is reviewing spill records from the National Response Center database and spill databases maintained by Colorado, New Mexico, and Pennsylvania. To the extent available, EPA is compiling information from these databases regarding spill incidents that occurred between January 1, 2006 and April 30, 2012. EPA also provided an update on the progress of groundwater sampling at its retrospective case study locations. At least two sampling events have occurred at all locations, with additional sampling planned. Sampling results were not provided, but the progress report indicates specific sampling locations and provides information regarding the Agency’s research approach. EPA will be holding two webinars on January 3 and 4 to discuss both the progress report and “takeaways” from roundtable discussions that have been held with technical experts from various stakeholders, academia, and state and federal agencies. Information regarding these webinars can be found on EPA’s website. http://www.lexology.com/library/detail.aspx?g=1da37f00-ea8e-4be6-b8ea-38d24e80c463