The federal government has new laid out new Hydraulic Fracturing Process regulations for oil and gas companies drilling on Federal land. The new rules require companies to disclose chemicals and procedures used in the Hydraulic Fracturing Process.
Oil companies have been required to disclose impacts and chemicals using during Hydraulic Fracturing Process to the state for years. Now the federal government, specifically the Bureau of Land Management, is asking for disclosure for Hydraulic Fracturing done on federal land. Alex Mill works for the Texas Alliance of Energy Producers.
"Hydraulic Fracturing lower the word fracturing is a political term to put fear into people," said Mills.
According to Mills "Fracking" has been going on for nearly 60 years. Mills said that the new requirement to disclose chemicals and procedures to the federal government is a double down for drillers who are already following state procedures paying for state permits.
"Every State that has oil and gas exploration has a department that you have to go through to get a permit to drill," said Mills.
The double down effect, according to Mills means a double down on cost.
"I would not say it's unfair it just creates additional cost time and effort when it is not needed it's going to be more expensive to do that," said Mills.
The interior department estimates that the new regulations could cost an additional $5,000 per well, per company. That additional $5,000 per well is roughly less than one percent of the cost to drill.
"Each state has been required to develop its own regulations based upon the geology of the state and to have permission for each drilling activity that goes on in that state. The federal government has never been involved in that," said Mills.
There is a total of three states that banned Hydraulic Fracturing all together. States like Maryland and New Jersey have put temporary bans on the process until more studies have been done.