Wednesday, June 01, 2011
Houston Chronicle
by Tom Fowler
Texas lawmakers have passed a bill requiring disclosure of most of the chemicals used in hydraulic fracturing, a natural gas and oil production technique that has been a source of contention in some communities over the past year.
A final version of the bill sent to Gov. Rick Perry on Tuesday requires oil and gas well owners to file online forms detailing the chemicals that are mixed with sand and water and then pumped into wells at high pressure to break apart dense shale formations.
Opponents say the materials, often called frac fluids, can contaminate ground water supplies -- a worry the industry says is unfounded.
It may be up to two years before the law takes full effect, as the Texas Railroad Commission has to write the rules and submit them to public comment.
Commission Chairman Elizabeth Ames Jones said Tuesday the agency will begin crafting the rules soon, but the law gives it until July 1, 2013, to approve them. The Railroad Commission is the state's chief oil and natural gas regulator.
"A commonsense frac fluid disclosure policy will balance the Railroad Commission's dual mission to prevent the waste of Texas' energy resources, and to protect the environment and the public's health and safety," Jones said.
Under existing rules, companies must list just some of the chemicals used in fracturing on Material Safety Data Sheets, documents kept on worksites to help officials respond to emergencies such as spills or accidental exposures to hazardous chemicals. Some chemicals are exempt if the companies claim they are trade secrets, while others simply aren't covered by the requirements.
The industry voluntarily has begun sharing fracturing fluid information from the data sheets for specific wells through a website, FracFocus.org, in response to public concerns about hazardous chemicals.
The new Texas law makes that reporting mandatory for all wells drilled in Texas, and will require listing of chemicals not currently required on the data sheets.
The new law still exempts chemicals deemed trade secrets, but the landowner where the well is drilled, an adjacent landowner or a state agency can appeal the exemption.
The bill, introduced by Rep. Jim Keffer, R-Granbury, is the result of negotiations among industry, environmental groups and lawmakers.
A version of the bill discussed last week would have made it more difficult for the public to access some of the information by requiring reports be filed just with the Railroad Commission. But an amendment introduced by Rep. Lon Burnam, D-Fort Worth, required disclosure on public websites.
The Texas Oil and Gas Association praised the bills.
"As a result of the state's leadership, Texas will become a game changer when it comes to debunking myths or misconceptions about hydraulic fracturing," said Debbie Hastings, vice president of environmental affairs for the group. "The transparency and accessibility achieved by this legislation will reinforce how and why hydraulic fracturing has been safely used for more than 60 years."
The Environmental Defense Fund gave the bill mixed reviews, saying it's a milestone in some ways but has shortcomings that should discourage other states or the federal government from adopting it without revision.
"It represents a major shift in the debate because for the first time industry and Republican lawmakers acknowledge that disclosure should be mandatory and that it should address all fracturing chemicals that may be harmful to public health and the environment," said Matt Watson, senior energy policy manager for EDF. "Texas and the nation will be better off for it."
But it leaves the decision on disclosure exemptions with the Texas Railroad Commission, which Watson said tends to favor business interests.
The long timetable for new rules is also a concern, Watson said.
Ramona Nye, a spokeswoman for the Railroad Commission, said the commission "has discretion regarding this process for any particular rule-making and may hold workshops, stakeholders meetings or other opportunities to gather information before drafting a rule proposal."
Chairman Jones' chief of staff, Andrew Keefer, said discussions of the new rules may begin in late June.
"The intent is to get it done as quickly as possible," Keefer said, but public comments can drag the process out.
Copyright (c) 2011, Houston Chronicle
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