I thought the Halliburton loophole let them do this - exempt from Safe Drinking Water Act.
Jim Sconyers jim_scon@yahoo.com 304.698.9628
Remember: Mother Nature bats last.
From: "William V. DePaulo, Esq." <william.depaulo@gmail.com> To: Energy Committee <EC@osenergy.org> Sent: Tue, February 1, 2011 7:59:23 AM Subject: [EC] USE OF DIESEL AS PART OF HYDRAULIC FRACTURING PROCESS SAID TO VIOLATE SAFE WATER DRINKING ACT
Oil and gas service companies injected tens of millions of gallons of
diesel fuel into onshore wells in more than a dozen states from 2005 to
2009, Congressional investigators have charged. Those injections appear
to have violated the Safe Water Drinking Act, the investigators said
in a letter to the Environmental Protection Agency on Monday.
The diesel fuel was used by drillers as part of a contentious process
known as hydraulic fracturing, or fracking, which involves the
high-pressure injection of a mixture of water, sand and chemical
additives — including diesel fuel — into rock formations deep
underground. The process, which has opened up vast new deposits of natural gas to drilling, creates and props open fissures in the rock to ease the release of oil and gas.
But concerns have been growing over the potential for fracking chemicals
— particularly those found in diesel fuel — to contaminate underground
sources of drinking water.
“We learned that no oil and gas service companies have sought — and no
state and federal regulators have issued — permits for diesel fuel use
in hydraulic fracturing,” said Representative Henry A. Waxman of California and two other Democratic members of the House Committee on Energy and Commerce, in the letter. “This appears to be a violation of the Safe Drinking Water Act.”
Oil and gas companies acknowledged using diesel fuel in their fracking
fluids, but they rejected the House Democrats’ assertion that it was
illegal. They said that the E.P.A. had never properly developed rules
and procedures to regulate the use of diesel in fracking, despite a
clear grant of authority from Congress over the issue.
“Everyone understands that E.P.A. is at least interested in regulating
fracking,” said Matt Armstrong, a lawyer with the Washington firm
Bracewell & Giuliani, which represents several oil and gas
companies. “Whether the E.P.A. has the chutzpah to try to impose
retroactive liability for use of diesel in fracking, well, everyone is
in a wait-and-see mode. I suspect it will have a significant fight on
its hands if it tried it do that.”
Regardless of the legal outcome, the Waxman findings are certain to
intensify an already contentious debate among legislators, natural gas
companies and environmentalists over the safety of oil and gas
development in general, and fracking in particular.
Oil services companies had traditionally used diesel fuel as part of
their fracturing cocktails because it helped to dissolve and disperse
other chemicals suspended in the fluid. But some of the chemical
components of diesel fuel, including toluene, xylene and benzene, a
carcinogen, have alarmed both regulators and environmental groups. They
argue that some of those chemicals could find their way out of a well
bore — either because of migration through layers of rock or spills and
sloppy handling — and into nearby sources of drinking water.
An E.P.A. investigation in 2004 failed to find any threat to drinking
water from fracking — a conclusion that was widely dismissed by critics
as politically motivated. The agency has taken up the issue again in a
new investigation started last year, although the results are not
expected until 2012 at the earliest.
The House committee began its own investigation in February last year,
when Democrats were in the majority. In Monday’s letter, Mr. Waxman,
along with Representatives Edward J. Markey
of Massachusetts and Diana DeGette of Colorado, said that they were
so far “unable to draw definitive conclusions about the potential impact
of these injections on public health or the environment.”
Still, the investigators said that three of the largest oil and gas services companies — Halliburton, Schlumberger
and BJ Services — signed an agreement with the E.P.A. in 2003 intended
to curtail the use of diesel in fracking in certain shallow
formations.
Two years later, when Congress amended the Safe Water Drinking Act to
exclude regulation of hydraulic fracturing, it made an express exception
that allowed regulation of diesel fuel used in fracking.
The Congressional investigators sent letters to 14 companies requesting
details on the type and volume of fracking chemicals they used. Although
many companies said they had eliminated or were cutting back on use of
diesel, 12 companies reported having used 32.2 million gallons of diesel
fuel, or fluids containing diesel fuel, in their fracking processes
from 2005 to 2009.
The diesel-laced fluids were used in a total of 19 states. Approximately
half the total volume was deployed in Texas, but at least a million
gallons of diesel-containing fluids were also used in Oklahoma (3.3
million gallons); North Dakota (3.1 million); Louisiana (2.9 million);
Wyoming (2.9 million); and Colorado (1.3 million).
Where this leaves the companies in relation to federal law is unclear.
Mr. Waxman and his colleagues say that the Safe Drinking Water Act left
diesel-based hydraulic fracturing under the auspices of E.P.A.’s
“underground injection control program,” which requires companies to
obtain permits, either from state or federal regulators, for a variety
of activities that involve putting fluids underground.
No permits for diesel-based fracking have been sought or granted since
the Safe Drinking Water Act was amended in 2005.
Lee Fuller, a vice president for government relations with the
Independent Petroleum Association of America, said that was because the
E.P.A. had never followed up by creating rules and procedures for
obtaining such permits and submitting them for public comment.
The agency did quietly update its Web site last summer with language
suggesting that fracking with diesel was, indeed, covered as part of the
underground injection program, which would suggest that permits should
have been obtained. But Mr. Fuller’s organization, along with the U.S.
Oil and Gas Association, has gone to court to challenge the Web
posting, arguing that it amounted to new rule-making that circumvented
administrative requirements for notice and public commentary.
The E.P.A. said Monday that it was reviewing the accusations from the
three House Democrats that the companies named were in violation of the
Safe Drinking Water Act.
“Our goal is to put in place a clear framework for permitting so that
fracturing operations using diesel receive the review required by law,”
Betsaida Alcantara, an E.P.A. spokeswoman, said in an e-mail message.
“We will provide further information about our plans as they develop.”