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Monday, June 6, 2011

Oil Industry, Environmentalists Pleased With New Bill

- Oil Industry, Environmentalists Pleased With New Bill

Monday, June 06, 2011
Odessa American, Texas
by Gabriella Lopez

Drilling is a way of life in West Texas, but not everyone knows exactly what chemicals go into the ground during the process.

Frac fluid, a combination of sand, water and various chemicals, opens up the oil and natural gas molecules locked in the micro pores of rocks, Ben Shepperd, president of the Permian Basin Petroleum Association said.

The Texas Legislature passed the country's first hydraulic fracking fluid disclosure bill last week, requiring oil and gas companies to publicly list the specific chemicals used in drilling.

"We're in favor of it, actually," Shepperd said, explaining the importance of providing the public with that information.

The bill still needs to be signed by Gov. Rick Perry and will be published in the Texas register for public comment.

After that, the Railroad Commission will vote to adopt the rules for implementation, although the length of the rule making process isn't definite, Railroad Commission of Texas spokeswoman Ramona Nye said.

"The timeline can vary," Nye said.

While some companies have concerns about revealing trade secrets through disclosure, others have already been disclosing information about the chemicals they use.

"Haliburton discloses the ingredients used in its fracturing operations," Haliburton representative Teresa Wong said in an email. "In fact, Haliburton goes a step further than the law requires by disclosing the constituents and additives used in typical fracturing formulas in its website."

And trade secrets would not be disclosed under the new bill, Texas Oil and Gas Association representative Deb Hastings said.

The chemicals would be posted on Frac Focus, the same website hazardous or carcinogenic chemicals are now voluntarily disclosed, Hastings said.

However, since non-hazardous and non-carcinogenic chemicals will also be disclosed due to the new bill, the Railroad Commission will need to create a system for listing these additional chemicals online, Hastings said.

Already some companies decide to list them with the other chemicals on Frac Focus, but the Railroad Commission may create a new spreadsheet for this additional group of chemicals, Hastings said.

The goal is to have all of the chemicals listed in one place, but the exact method is still being discussed, Hastings said.

While some environmental groups wish the bill were stricter, they still see it as a positive step.

"It still represents a major shift," Matt Watson of the Environmental Defense Fund said.

Sometimes during drilling chemicals can accidentally leak into the ground, Watson said.

And the main concern is that those chemicals could contaminate groundwater, Watson said.

Understanding the ramifications of contamination is difficult when the exact chemicals are unknown, Watson said.

Also, without knowing the exact chemicals involved it would be difficult to tell whether any plant life could be affected by leaks into the ground, Watson said.

When asked whether leaking chemicals were common, Shepperd said it was rare and usually came from a bad cement job or a casing leak.

"It has happened in the past," Shepperd said, adding that to his knowledge no actual fracking fluid had gotten into the drinking water.

But he didn't see plant-life contamination through the ground as an issue.

"(The chemicals) are rarely spilled on the ground," Shepperd said.

Most frac fluid is removed after drilling is completed, Shepperd explained, and he said drilling companies keep layers of cement and tubing between the drill site and fresh water.

The Texas Railroad Commission is required by law to begin the rule-making process by Sept. 1, but Hastings said she expected it to begin before then.

And after the rules to enact the potential law are created, it will become mandatory for oil and gas companies to provide a public listing of the chemicals, Hastings said.

"Texas will be better off for the bill having passed," Watson said.

Copyright (c) 2011, Odessa American, Texas

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