Model Regulatory Framework for Hydraulic Fracturing in the Works

The State Journal
28 October 2011
By Pam Kasey

An environmental nonprofit and an oil and gas producer have teamed up resolve some of the major environmental issues related to hydraulic fracturing.

Their product, a model regulatory framework for hydraulic fracturing, has helped a couple of states improve their own regulations and will soon be available to the general public.

The project was presented by Mark Boling, executive vice president and general counsel for Southwestern Energy, and Matt Watson, senior energy policy manager for the Environmental

Defense Fund, at "Drilling Down on Regulatory Challenges," a conference hosted Oct. 27-28 by the West Virginia University College of Law's Center for Energy and Sustainable Development.

It started, in part, as EDF began looking at cases of groundwater contamination associated with hydraulic fracturing, according to Watson.

"We knew the real issue was probably well integrity, casing, cementing," Watson said. "That confirmed what we thought: in every case there was a problem with well integrity."

About that time, Boling called the organization with an idea for model regulatory framework, regulatory language that state agencies could use to update their regulations for well construction and operation.

They put together a group of stakeholders from both sides and followed three principles, Watson said: that the framework should be as environmentally protective as possible, that it should recognize the important role of natural gas with regard both to the economy and the environment, and that it should acknowledge interim progress and variation among states' regulations.

The overall goal of the collaboration, Boling said, was to refocus the debate: to identify the real obstacles to responsible development of the resource and to propose workable solutions.

The group conducted a review of existing information and began drafting, eventually seeking feedback from about 10 industry partners.

"We found (the feedback) was reasonable," Watson said. "We incorporated probably two-thirds of it. It gave EDF the confidence that there was a basis for this cooperation."

Boling reviewed the subsurface aspect of the framework, relating to EDF's original research into wellbore integrity.

"There are four step to ensuring wellbore integrity," said.

First, evaluate stratigraphic confinement. What geographic formations lie between the lowest freshwater zone and the target formation? Those will be expected to contain the migration of fluids.

Second, observe quality well construction standards. Most states that have histories of oil and gas development have some standards, he said, and most could be improved.

Third, evaluate internal and external mechanical integrity of the well before hydraulic fracturing begins. Several types of problems can develop during casing and its ability to withstand the high pressure of hydraulic fracturing should be confirmed.

Finally, monitor the fracturing job and the producing well.

No state law the group reviewed had affirmative obligation on the part of the fracturing or producing party to conduct monitoring and to take preventive action or responsive action in the event of a problem, Boling said.

Arkansas and Pennsylvania already have adopted portions of the model framework, according to Watson.

The model framework runs to about 40 pages and is still in draft.