EPA Empowered to Oversee Shale Extraction

Developers want states to lead

Ken Silverstein | Oct 26, 2011

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Shale gas epitomizes the Obama administration’s ambivalence when it comes to fossil fuels and pollution controls. The latest issue to flare up is that of how the federal government will regulate wastewater.

The White House sees this natural gas derivative as a bridge fuel until cleaner supplies are ready. But shale gas extraction has been sharply criticized for polluting surface water supplies. And while the Environmental Protection Agency is demanding a hand in how shale is regulated, the developers say that the states already monitor their activities and that any further action by the federal government would be onerous.

It is true that the states have taken the lead when it comes to overseeing shale gas production. The administration's position, however, is that it has the authority to regulate wastewater from oil and gas production. According to the EPA, such wastewater is prohibited from being directly discharged into U.S. waterways and while some of it is re-used or re-injected, a significant amount must still be disposed.

As a result, some wastewater associated with shale gas is transported to treatment plants that are not properly equipped, the agency adds. EPA says that it will consider standards based on economically achievable technologies for pre-treated wastewater from shale gas. It expects to have rules by 2014. The EPA, for example, says that the states need help solving the disposal of “solid wastes” like salts.  

“The president has made clear that natural gas has a central role to play in our energy economy. That is why we are taking steps -- in coordination with our federal partners and informed by the input of industry experts, states and public health organizations -- to make sure the needs of our energy future are met safely and responsibly,” says EPA Administrator Lisa Jackson.

Production from shale formations has grown from a negligible amount just a few years ago to almost 15 percent of total U.S. natural gas production and this share is expected to triple in the coming decades. By 2035, natural gas, generally, will make up about 45 percent of the utility generation market, says the Energy Information Administration.

Protecting Communities

The natural gas industry says that the administration’s plan is unnecessary. That’s because -- like all aspects of natural gas development -- wastewater disposal is regulated by the states. Developers go on to say that the states understand the geological characteristics of the shale plays and are thus better qualified to decide how the resulting wastewater will be discharged and treated.

“We are already in contact with the agency and expect to be an active and vocal stakeholder in helping them determine what, if any, additional regulation is necessary and appropriate,” says Daniel Whitten, vice president of strategic communications for America’s Natural Gas Alliance.

The EPA readily acknowledges that the states have played the lead role when it comes to natural gas development. But it is arguing that because shale gas is such a game changer that the federal government must work hand-in-hand with all the stakeholders to ensure that its extraction is safe and responsible.

In testimony before the U.S. Senate Energy and Natural Resources Subcommittee on Water and Power, the agency’s director of ground and drinking water said that improper regulation could harm water resources. Cynthia Dougherty says that the effects on surface water would be noticed in the groundwater supplies. Harmful elements such as metals, salts and radionuclides could infiltrate.

“The EPA is committed to using its authorities, consistent with the law and best available science, to protect communities across the nation from impacts to water quality and public health associated with natural gas production activities,” says Dougherty. “Where we know problems exist, the EPA will not hesitate to protect Americans whose health may be at risk.”

If EPA’s requests are doable and they conform with the pace of current technologies, developers would be smart to oblige the agency’s requests. Shale gas will be an economic driver -- but only if the public embraces it and feels that the developers share and address their concerns. By cooperating with the EPA, producers could get that stamp of approval.


EnergyBiz Insider has been been nominated in 2010 and 2011 for Best Online Column by Media Industry News, MIN. Ken Silverstein has also been named one of the Top Economics Journalists by Wall Street Economists.

Follow Ken on  www.twitter.com/ken_silverstein

energybizinsider@energycentral.com


Comments

Technically Viable Environmental Regulation – Shale Gas

The Shale Gas industry may have learned a lesson regarding bureaucratic ineptitude from the GOM Macondo Oil Spill. Their fear may be that lack of expertise in tight shale gas formations would create a ‘One-Size Fits All’ federal regulatory menu. The variation in geological formation from one region to another (i.e. Permian vs. Marcellus) is being dealt with at the state level. Introduction of USEPA federal mandate, lacking expertise and site specific knowledge, could lead to unnecessary delays.

Rather than generating technically insufficient National Standards, USPA could simply review the applicants proposed methodology – asking questions regarding areas of concern. Such a review would occur on the regional level and would include state regulators and project applicants.  This approach has worked well in other federal review processes e.g. Coal Ash Disposal Sites.

Richard W. Goodwin West Palm Beach FL    

Administration "Ambivalence" toward shale gas extraction.

Perhaps I don't understand the meaning of the word "ambivalence". It sounds to me that the current administration wants the EPA to take responsibility over fracking waste water disposition.

Where is the ambivalence? Perhaps your byline's purpose is just an attempt to make the current Federal Government administration look bad on this issue.

EPA involvement is critical to their agenda

EPA must be involved in order to advance their agenda--the elimination of fossil fuel power by making it as expensive as their uneconomical "green power" favorites.  I put green power in quotations because it is not nearly as green as they would have us believe.  Only by steadily driving up the cost of manufacturing and doing business in the USA can they achieve the end goal of driving the American standard of living down to equal that of third world countries to achieve a uniform global standard of living to atone for our evil affluence.  I have a bit of news for them, China will upset their applecart once it achieves its goal of being the world's dominant economic and military powers.

Remind us

Remind us again how those banking regulations worked out for the rest of us? We're still feeling it. EPA has to exert its influence here to cover all bases, not to over regulate.

EPA Oversight

Working in the Texas shale plays I can tell you that the state closely regulates all aspects of this industry.  The addition of more EPA regulations and requirements will only serve to add great expense and time to any development efforts, as always.  The industries best chance for a bright future lay in the results of the 2012 Presidential election and subsequent subordination of out of control agencies currently working to circumvent the will of the people and the process of congress.