The US Environmental Protection Agency has launched an extensive probe examining the possible health and water quality consequences of hydraulic fracturing, a technique used to extract oil and natural gas from the vast majority of wells in the US.
The study comes despite warnings from industry leaders who have said further scrutiny or regulation of the practice at the federal level could simply add red tape and dampen some of the explosive commercial interest in unconventional shale gas plays seen in recent years (NGW Jun.15,p1).
EPA announced it is realigning its budget to move ahead with a "detailed study design that will undergo external peer-review." The agency also said the review will include "a robust process for stakeholder input."
The study comes as environmental groups and some legislators continue to express fears that hydraulic fracturing poses a risk to groundwater supplies since it involves the injection of toxic chemicals into the ground.
New York policymakers, for example, have argued that spills or leaks from gas production in New York's portion of the Marcellus Shale could contaminate underground reservoirs that provide drinking water for New York City (NGW Mar.8,p1).
"There are concerns that hydraulic fracturing may impact ground water and surface water quality in ways that threaten human health and the environment," acknowledged Paul Anastas, assistant administrator for EPA’s Office of Research and Development.
Fracturing was first used to stimulate wells in the 1940s and is now used in nearly all natural gas wells in the US, particularly in shale plays, coal bed methane formations, and “tight” sandstone reservoirs.
The process is also used widely in unconventional oil formations, including the Bakken Shale of North Dakota and Montana.
Fracturing involves pumping fluids at high pressure into tight reservoirs, causing the rock to break apart and allowing oil or gas to flow more freely.
“We welcome this comprehensive study by EPA, which we believe will show that concerns about groundwater contamination from hydraulic fracturing are unfounded as long as companies are complying with numerous existing and stringent state regulations," said Natural Gas Supply Association president Skip Horvath. “Hydraulic fracturing is a time-tested method that has enabled the availability of clean, domestic natural gas from shale formations found in numerous states," he added. "Production from shale formations is the nation’s fastest growing source of natural gas, contributing to an unprecedented 39 percent increase in the estimated size of the natural gas resource base since 2006."
Lee Fuller, vice president of government affairs for the Independent Petroleum Association of America (IPAA), also characterized the EPA probe as a "welcome exercise" that may serve to expose the safety precautions already undertaken by producers. Fuller also directs the pro-industry Energy In Depth coalition in Washington.
"Simply put, new innovations are making these technologies better and better by the day -- a fact widely recognized by the agencies that regulate hydraulic fracturing in energy-producing states," he said.
Similarly, American Petroleum Institute spokesman Bill Bush said "its continued use is crucial."
“It is enabling access to massive new supplies of natural gas trapped in shale formations across the United States,” Bush said. “These new finds have multiplied the nation’s natural gas resources and will help generate electricity, heat homes and power vehicles for generations of Americans to come,” he added.
Washington energy policy analyst Kevin Book noted that past studies into the risks of hydraulic fracturing -- including one completed in 2005 -- have found that regulators need not worry about the process.
However, he said that observers should keep an eye on the Fracturing Responsibility and Accountability (Frac) Act which would require disclosure of well fluids and close a "loophole" that exempts the oil and gas industry from federal regulation under the Safe Drinking Water Act (NGW Jun.8,p1).
"We regard [fluids] disclosure as a potential driver of increased, intermediate-term litigation risks,” he cautioned in a research note.
The Frac Act is being spearheaded by House Energy and Commerce Committee vice chairman Diana Degette (D-Colorado), Rep. Maurice Hinchey (D-New York), and Sen. Bob Casey (D-Pennsylvania). The legislation could either be ignored this year -- or attached as a measure in a stand-alone energy bill, particularly as momentum for a cap-and-trade bill diminishes, Book said.
IPAA's Fuller expressed hopes that legislators will postpone consideration of the Frac Act until the EPA probe concludes. "Efforts underway in Congress to give EPA outright authority to regulate fracturing -- which could hamper domestic energy production and job growth -- should come to a standstill until this study is completed."
Lauren O’Neil, Washington
