The House Appropriations Committee’s Subcommittee on Interior, Environment, and Related Agencies held a hearing on Tuesday to discuss the FY2014 budget for the Bureau of Land Management (BLM).  BLM manages over 700 million acres of federal lands and  is promulgating regulations for hydraulic fracturing on such lands. Neil Kornze, the Principal Deputy Director of the agency, was the only witness at the hearing. There was significant discussion at the hearing of the economic benefits of hydraulic fracturing, the prospect of new regulations on the practice, and the effects of sequestration on the agency and its ability to efficiently process permit applications.

Fracking Insider Readers: We are pleased to bring you Volume 19 of our State Regulatory Roundup, including updates in Nevada, New Mexico and California. As we explained in earlier volumes, we designed the Roundup to provide quick overviews on state regulatory activity. If you have any questions on any of these summaries, please do not hesitate to ask.

Fracking Insider Readers: We are pleased to bring you Volume 18 of our State Regulatory Roundup, including updates in California, Minnesota and Wyoming. As we explained in earlier volumes, we designed the Roundup to provide quick overviews on state regulatory activity. If you have any questions on any of these summaries, please do not hesitate to ask.

The EPA’s recently released draft annual GHG emissions inventory report includes new, lower estimates for the amount of methane (CH4) emitted during natural gas production. The new estimates are the result of a change in the way the agency calculates the amount of CH4 released during liquids unloading, or the process of flushing excess water from a well. The agency has incorporated data gathered by API and ANGA on liquids unloading, determining that the industry data was far superior because it covered more wells, was more recent, and included more information on plunger lifts and control technologies.

A novel partnership has emerged between energy firms involved in hydraulic fracturing, including Chevron, EQT Corp., and Royal Dutch Shell, and environmental groups usually opposed to fossil fuel development, including the Environmental Defense Fund, the Clean Air Task Force, and the Group Against Smog and Pollution. These entities have come together to establish the Center for Sustainable Shale Development (CSSD), which will provide independent, voluntary evaluations and certifications of shale gas developers. The center will establish standards to limit flaring, maximize water recycling, and reduce the toxicity of injection fluids.

Two companion pieces of legislation recently introduced in the House of Representatives target hydraulic fracturing for more stringent federal regulation.

H.R. 1154, the Bringing Reductions to Energy’s Airborne Toxic Health Effects Act, or BREATHE Act, was introduced by Rep. Polis (D-CO) on March 14^th. The bill would require the aggregation of emissions from disparate oil and gas sources in order to trigger permitting requirements under the Clean Air Act (§ 7412(n)(4)). The BREATHE Act would also require EPA to add hydrogen sulfide to the list of hazardous air pollutants under section 112(b) of the Clean Air Act, and to revise the list under section 112(c) to include categories and subcategories of major sources and area sources of hydrogen sulfide, including oil and gas wells.

H.R. 1175, the Focused Reduction of Effluence and Stormwater runoff through Hydrofracking Environmental Regulation Act, or FRESHER Act, was introduced by Rep. Cartwright (D-PA) on March 14^th. The bill would impose permitting requirements under the Clean Water Act (§ 1342(l)(2)) for industrial stormwater runoff for oil and gas exploration and production. The FRESHER Act would also require EPA to conduct a study of impacts to any area determined to be contaminated by stormwater runoff associated with oil or gas operations. This study is specifically required to include an analysis of measurable contamination, an analysis of groundwater resources, and an analysis of the susceptibility of aquifers to contamination from stormwater runoff associated with oil and gas operations.

The BREATHE Act has been referred to the Committee on Energy and Commerce, while the FRESHER Act has been referred to the Committee on Transportation and Infrastructure’s Subcommittee on Water Resources and Environment.

Three pieces of legislation recently introduced by Rep. Markey (D-MA) and Rep. Holt (D-NJ) would have major impacts on the oil and natural gas markets in the U.S.:

H.R. 1189, the American Natural Gas Security and Consumer Protection Act, would prohibit the exportation of natural gas without authorization from the Secretary of Energy. To grant authorization, the Secretary must determine whether the proposed exportation will be consistent with the public interest, and must specifically consider the effects of the proposed exportation on domestic energy expenditures, the economy, energy security, greenhouse gas emissions, and other factors.  Currently, DOE authorization is only required for exports to countries with which the U.S. does not have a free trade agreement.

Fracking Insider Readers: We are pleased to bring you Volume 17 of our State Regulatory Roundup, including updates in New Jersey, Pennsylvania, North Dakota and Wyoming. As we explained in earlier volumes, we designed the Roundup to provide quick overviews on state regulatory activity. If you have any questions on any of these summaries, please do not hesitate to ask.

Fracking Insider Readers: We are pleased to bring you Volume 16 of our State Regulatory Roundup, including updates in New York, Ohio and West Virginia. As we explained in earlier volumes, we designed the Roundup to provide quick overviews on state regulatory activity. If you have any questions on any of these summaries, please do not hesitate to ask.

The 2012 election results are in, the 113^th Congress has convened, and with them come shakeups in the House committees that drive policymaking and provide oversight for domestic energy policy, including for hydraulic fracturing.