Friday, May 17, 2013

In-Depth Article On BLM's Fracking Rules -- Entering 30-Day Comment Period

Oil and Gas Journal also reports

Rigzone is reporting:
An updated draft rule that would empower the Bureau of Land Management (BLM) to regulate hydraulic fracturing on U.S. federal and Indian lands will be made available for an additional 30-day public comment period before the rule is finalized.

BLM, an agency within the Department of Interior (DOI), initiated plans to update federal hydraulic fracturing regulations in late November 2010, when federal and state officials and NGO representatives discussed the need to modernize hydraulic fracturing regulations. Using information gathered from eight public forums across the United States and consultation with tribal officials, an initial proposed rule was written and released in May 2012, said DOI Deputy Secretary David J. Hayes during the conference call.

The updated proposed rule takes into account the more than 177,000 comments gathered in a 120-day comment period last year from the oil and gas industry, tribal officials, and other stakeholders. In January, BLM said it would publish an updated proposal to maximize flexibility, facilitate coordination with state practices and ensure operators utilize best practices on public lands.
That has been published and now the 30-day comment period begins.

Of the three rules, this has huge implications:
"Although the BLM is not proposing a material change in the provision that allows hydraulic fracturing flowback fluids to be stored either in tanks on in lined pits, the BLM is seeking comments on the costs and benefits of requiring flowback fluids to be stored in closed tanks," DOI said in a statement Thursday.
The updated rule is more reasonable than the original proposal, indicating that BLM actually listened to the industry and responded to most of their comments in a positive way, such as allowing the disclosure of hydraulic fracturing chemicals through Fracfocus, said Larry W. Nettles, Energy industry Group Leader with Houston-based law firm Vinson & Elkins in an interview with Rigzone.
If the BLM sticks to their word, this is encouraging:
States can also apply to BLM to administer permits on public lands within their border if they can show their requirements are as strict or stricter than BLM requirements, Nettles said. This idea was initially floated by former Massachusetts governor and Republican presidential candidate Mitt Romney last year.
The rules certainly suggest that the administration has accepted fracking. 

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