Drilling down on shale gas.
Winter, Mary
Natural gas production hit a record high in 2012, with drillers
delivering nearly 30 million cubic feet, an increase of 25 percent since
2006. Legislatures have been working at a similar pace, discussing how
much to regulate the technology that's fueling the boom hydraulic
fracturing.
In 2013, lawmakers in 31 states have introduced more than 170 bills
related to hydraulic fracturing, a process in which drillers inject a
mixture of highly pressurized water, sand and chemicals into underground
shale, creating fractures that release trapped natural gas. Along with
other technological advances, many experts believe hydraulic fracturing
could make America energy independent by 2020 and supply the country
with relatively cheap, clean energy for the next 90 years.
The natural gas boom has produced a recession-fighting financial
windfall for local and state governments in Colorado, Louisiana, North
Dakota, Oklahoma, Texas, Wyoming, among others, in the form of jobs,
sales and severance tax revenue, lower gas prices and increased
industrial activity.
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But the fast-growing practice of hydraulic fracturing also has seen
stiff opposition. Homeowners in some suburban communities are concerned
about the 24-hour activity, noise, odors and infrastructure damage
drilling operations can cause, as well as their water consumption. Some
environmentalists say hydraulic fracturing pollutes water and air with
hazardous chemicals, endangering public health. They cite a 2011
Environmental Protection Agency study of water in heavily drilled
Pavillion, Wyo., where residents complained of brown, foul-smelling
water. The EPA said the groundwater contained compounds "likely
associated with gas production practices, including hydraulic
fracturing," and urged further study. Some have disputed the study,
however and the scientific peer review of the draft report has been
delayed.
Gas industry officials and others, including a number of government
leaders, claim fears about hydraulic fracturing are overblown, and that
charges against hydraulic fracturing are often untrue. They cite a
February 2012 report by the University of Texas at Austin that found
many water contamination problems blamed on the deep-underground
injection of hydraulic fracturing fluids in fact had other causes, such
as "well casing failures or poor cement jobs." Generally,
contamination "can be traced to above ground spills or other
mishandling of wastewater produced from shale gas drilling rather than
from hydraulic fracturing," according to a UT Austin news release.
Lawmakers are busy sorting through the evidence. In New York and
Vermont, they've passed temporary bans on hydraulic fracturing as
they study its impacts on health and the environment. Similar
legislation is under consideration in at least eight states, including
California, where three bills introduced in 2013 carry bans of up to
five years. If enacted, they would have a chilling effect on investment
in the state, a gas industry spokesman has warned.
Another topic on lawmakers' agenda is whether to require
drilling companies to disclose the names and concentrations of chemicals
used in hydraulic fracturing fluids. At least 14 states now require such
disclosure, although several allow companies to withhold the names of
chemicals they want to keep secret from competitors, and that's a
problem, say critics. A Bloomberg analysis last year showed that U.S.
companies claimed trade-secret exemptions on 22 percent of the chemicals
they used. Texas Representative Lon Burnam (D), a co-author of that
state's disclosure bill, says he had to make concessions to win
passage, and the resulting law falls short of keeping the public fully
informed of the chemicals drillers bring into their communities.
Additionally, in 2013:
* Lawmakers in at least 22 states introduced bills addressing
severance taxes on drilling operations; as of May, seven states enacted
legislation. The bills vary significantly. Some states look to impose
taxes or amend existing ones, while others seek to alter revenue
allocation methods or introduce tax exemptions and credits for certain
wells.
* In at least 16 states, lawmakers proposed regulations involving
well construction, spacing between wells, water withdrawal, wastewater
handling and other measures to protect water resources.
* In at least five states, legislatures considered proposals
addressing who should govern hydraulic fracturing, with most assigning
authority to the states.