The U.S. Environmental Protection Agency (EPA) might not be viewed as a friend to the natural gas and oil industries, but the agency is not an enemy to them either, according to Bob Sussman, senior policy counsel to EPA administrator Lisa Jackson.

"Make no mistake – EPA sees positives in the development of natural gas shales," he said during his keynote speech at Hart Energy's recent DUG East conference in Pittsburgh, Pa.

Sussman stated that both the Obama Administration and the EPA are committed to the continued domestic production of shale plays not only because of their potential to reduce America's dependence on foreign energy supplies, but also their potential to improve air quality by cutting back on the use of coal and oil for power generation. "Shales are important natural resources that can, and will, be extracted prudently."

While the administration and EPA both support this production, he noted that they also have a responsibility to ensure that this production is completed in a safe manner to both the citizenry and the environment.

This action has included drafting potential regulations requiring producers to use green well completions on hydraulically fractured wells in order to curtail emissions. In addition, midstream operators would be required to capture increased emissions from compressors, natural gas processing plants, and storage tanks.

It is with these two goals in mind that the agency has moved to address concerns regarding any possible effects of unconventional oil and gas production on drinking water. This includes studies on possible contamination of water supplies and aquifers through hydraulic fracturing as well as from the disposal of waste water.

Sussman also moved to dispel another notion – that the EPA is working to circumvent state and local environmental regulations in regards to oil and gas development. "EPA is working with states and local municipalities to create regulations to oversee the safe development of these shales."

This speech was a further effort by EPA to quell fears that it was seeking to operate unilaterally to regulate the oil and gas industries. While the agency has stated that it would seek to curb greenhouse gas emissions and was studying the effect of hydraulic fracturing on drinking water and fresh water supplies, officials have been attempting to distance themselves from earlier statements that they had the authority to impose regulations in both fields without Congressional approval because of the Clean Air Act and Safe Drinking Water Act.

Instead the agency has moved to state that such unilateral moves were a last resort only if Congress, state authorities and other agencies failed to act. Whether such claims are the result of Congressional warnings that to do so may cause the EPA’s budget to be reduced is another matter, but the EPA has softened its tone towards the oil and gas industry.

"We are looking at rules that are both practical and fair as well to producers, but also ensure the safety of the environment," he said.

Contact the author, Frank Nieto, at fnieto@hartenergy.com.

Comments