Fracking Insider - Key Insights Into Federal Policy and Regulatory Developments

Join the authors of Fracking Insider for this informative one-hour webinar

Wednesday, June 19, 2013                                                   
1:00 pm Eastern/3:00 Pacific

Register HERE*

In recent years, technological advances in hydraulic fracturing and horizontal drilling have led to dramatic growth in natural gas development, with tremendous economic potential for state and local economies as well as the possibility of US energy independence. However, as unconventional shale plays across the United States transform the nation’s economic and energy future, federal regulators have been examining their statutory authority to regulate unconventional drilling techniques like hydraulic fracturing and horizontal drilling.

The Environmental Protection Agency (EPA) and the Bureau of Land Management (BLM) have initiated rulemaking that would profoundly affect natural gas development as well as the industries that are increasingly benefitting from this country’s natural gas supplies - either as consumers of the feedstock or suppliers to the natural gas market. Additionally, EPA, either on its own accord or in response to petitions for rulemaking, is examining the potential for further regulation of hydraulic fracturing under numerous environmental statutes.

This webinar will discuss important issues surrounding the federal regulation of natural gas in the US and its implications for US manufacturers and energy consumers. During this program, we will address the federal regulatory outlook and examine some of the rules under consideration. Speakers from Kelley Drye & Warren’s Environmental & Natural Resources practice will brief audience members on what to expect as the debate over the nation’s energy future intensifies.

Topics Include: 

• The profound changes in the US energy landscape over the past decade
• EPA’s Authority
  • Clean Air Act (CAA)
  • Toxic Substances Control Act (TSCA)
  • Emergency Planning & Community Right to Know Act (EPCRA)
  • Resource Conservation & Recovery Act (RCRA)
  • Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA)
  • Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA/Superfund)
  • Safe Drinking Water Act (SDWA)
  • Clean Water Act (CWA)
• The Bureau of Land Management – Regulation of Federal & Indian Lands
• The Endangered Species Act and National Environmental Policy Act

Faculty:

Wayne J. D’Angelo, Special Counsel, Kelley Drye & Warren LLP
Joseph J. Green, Special Counsel, Kelley Drye & Warren LLP

*we have a limited number of deeply discounted registrations.  Please contact us if you are interested.

In a May 12^th letter, thirteen state attorneys general warned the EPA not to negotiate with seven Northeastern states on the subject of potential federal regulation of methane emissions from oil and gas operations, including those employing hydraulic fracturing. The states argue in their letter that the threatened lawsuit is without merit, and that any negotiations should include states that “actually have oil and gas operations and facilities.”

The Northeastern states filed a notice of intent to sue on December 12^th, 2012 for an alleged violation of Section 111 of the Clean Air Act, arguing that EPA was required to complete a thorough review of air quality criteria and issue a decision on methane regulation at the end of that review process. These states further contended that the eight-year review period in the New Source Performance Standards (NSPS) required EPA to review new pollutants such as methane, which they argue endanger public health but have not been previously regulated.

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A spokeswoman for the House Natural Resources Committee indicated in a statement that the committee may consider a hydraulic fracturing bill as part of a broad legislative push to promote domestic energy development. “The committee intends to advance multiple bills to reduce red-tape and harness our nation’s offshore and onshore energy resources. This may include action on hydraulic fracturing,” committee spokeswoman Jill Strait said in her statement.

House Majority Leader Eric Cantor indicated in an early May memo that the GOP will take up energy bills on the floor this summer, with a bill to approve the Keystone XL pipeline being the only specific piece of legislation identified. Ms. Strait offered no specifics on the hydraulic fracturing legislation, but Republicans have generally supported regulation of the practice at the state and local levels, where regulations can be tailored to specific geological and hydrological conditions.

On May 16, 2013, The U.S. Bureau of Land Management (BLM) released its new proposed rule governing hydraulic fracturing operations on federal and Indian land. BLM originally proposed this rule on May 11, 2012 but, following 177,000 public comments, scores of agency and White House meetings, and an extensive level of stakeholder engagement, BLM decided to re-work and re-propose a new rule.

This is an important proposal. While most of the key shale formations occur on private land, BLM oversees over 700 million acres of onshore mineral estate and has trust responsibilities for over 56 million acres of Indian land holding more than 92,000 oil and gas wells. With upwards of 90% of all new wells expected to utilize hydraulic fracturing technology, unconventional resources on public lands will play a key role in America’s energy future. Therefore, how we regulate those activities matters.

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Fracking Insider Readers: We are pleased to bring you Volume 19 of our State Regulatory Roundup, including updates in Nevada, New Mexico and California. As we explained in earlier volumes, we designed the Roundup to provide quick overviews on state regulatory activity. If you have any questions on any of these summaries, please do not hesitate to ask.

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