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FEMA POLICY: Hazard Mitigation Assistance Acquisition Projects: 

Hydraulic Fracturing and Horizontal Directional Drilling

FEMA Policy #302-094-03

BACKGROUND

This policy applies to all Hazard Mitigation Assistance (HMA) programs. HMA is comprised of 

the Hazard Mitigation Grant Program (HMGP), Pre-Disaster Mitigation (PDM) program, and 

the Flood Mitigation Assistance (FMA) program. This policy is intended for federal, state, local,

tribe, and territory officials involved in the administration of HMA programs.

This policy supersedes FEMA Policy Limits on Subsurface Uses of Hazard Mitigation 

Assistance Acquired Lands (FP 302-405-146-1). FP 302-405-146-1 was incorporated into the 

HMA Guidance dated February 27, 2015 and then sunset. Thus, this policy also supersedes 

the associated sections of the HMA Guidance that incorporated FP 302-405-146-1.

PURPOSE

The purpose of this policy is to provide HMA program guidance on the compatibility of 

subsurface hydraulic fracturing and horizontal directional drilling (hydraulic fracturing/HDD)

uses occurring on or under properties acquired for open space with HMA funds. 

FEMA property acquisitions under the HMA programs permanently remove structures from risk 

of damage and seek to conserve natural floodplain functions. Properties eligible for acquisition 

must be able to demonstrate clear title, or that any easements or other encumbrances to the 

property are compatible with open space that conserves the natural and beneficial floodplain 

functions. Post-acquisition land uses and structures must be approved by FEMA. 

PRINCIPLES 

A. Hydraulic fracturing/HDD activities occurring in subsurface layers to extract natural gas or 

oil are uses that are generally compatible with open space. 

B. Surface activities and related appurtenances, equipment, and/or wastewater disposal 

associated with hydraulic fracturing/HDD are not uses compatible with open space and are 

not allowed on the acquired parcel.

REQUIREMENTS

Every three years, the HMA funding recipient and subrecipient must submit a report to the 

FEMA Regional Administrator. The report must certify that the acquired property was 

inspected within the preceding month and that the property continues to be maintained 

consistent with the provisions of open space requirements, the deed restrictions, and the grant 

award. (44 C.F.R § 80.19(d) Land use and oversight, Monitoring and reporting).
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A. Compatible Use

Outcome: Provide guidance on the compatibility of surface and subsurface activities 

associated with hydraulic fracturing and horizontal directional drilling with FEMA’s open space 

requirements under HMA property acquisitions.

1. Property acquisitions under the HMA programs permanently remove structures from risk of 

damage and seek to conserve natural floodplain functions in perpetuity. 

a. Properties acquired under HMA are subject in perpetuity to strict limitations on 

development for the purpose of maintaining open space for the conservation of natural 

floodplain functions. The FEMA regulation at 44 C.F.R. §80.19(a) provides examples of 

activities that are generally compatible and incompatible with open space for the 

conservation of natural floodplain functions. 

b. Properties must be acquired under the HMA programs with clear title (44 C.F.R. 

§80.17(b)).

c. Any easements or other encumbrances to the property that are incompatible with open 

space requirements must be extinguished before acquisition (44 C.F.R. §80.17(b)). 

d. After acquisition, FEMA must approve any land use changes prior to implementation to 

ensure the proposed use is compatible with open space requirements. This includes 

FEMA approval for changes to leases or encumbrances prior to the subrecipient leasing 

the property to a private individual or entity. 

e. FEMA, the recipient, and the subrecipient are required to enforce compliance with open 

space restrictions (44 C.F.R. §80.19(e)).

2. Hydraulic fracturing/HDD is a practice of producing energy by accessing fossil fuel 

resources buried in geologic strata. Wells may be drilled vertically hundreds to thousands 

of feet below the ground surface and may include horizontal or directional drilling sections. 

A hydraulic fracturing/HDD operation includes actions that occur on the ground surface and 

actions that are conducted underground in a subsurface geologic formation.

a. The subsurface actions associated with hydraulic fracturing/HDD include but are not 

limited to horizontal and/or directional drilling and fracturing the rock formation. FEMA 

has considered the practice of hydraulic fracturing/HDD and determined based on the 

available information the subsurface actions associated with hydraulic fracturing/HDD

generally do not present an obstruction in the floodplain, generally do not increase flood 

risk, and generally do not obstruct the natural and beneficial floodplain functions. Thus, 

the subsurface actions associated with hydraulic fracturing are uses that are compatible 

with open space. 

i. New property acquisitions for properties encumbered with leases or other 

instruments allowing for subsurface hydraulic fracturing/HDD activities may be 

eligible for HMA funding.

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ADDITIONAL INFORMATION

REVIEW CYCLE

FEMA Policy #302-094-03: Hazard Mitigation Assistance Acquisition Projects: Hydraulic 

Fracturing and Horizontal Directional Drilling will be reviewed, reissued, revised, or rescinded 

within 4 years of the issue date. 

AUTHORITIES

A. Sections 203 and 404 of the Robert T. Stafford Disaster and Emergency Assistance 

Act, 42 U.S.C. §§5133, 5170c(b)(2)

B. Section 1366 of the National Flood Insurance Act of 1968 (NFIA), as amended by the 

Biggert-Waters Flood Insurance Reform Act of 2012, 42 U.S.C. §4104c

C. Title 44 Code of Federal Regulations Part 9, Part 79, Part 80 and Part 206, Subpart N

D. FEMA Directive 108-1 and FEMA Instruction 108-1-1

REFERENCES

A. FEMA Policy Limits on Subsurface Uses of Hazard Mitigation Assistance Acquired 

Lands (FP 302-405-146-1), dated May 5, 2014

B. Hazard Mitigation Assistance Guidance, issued February 27, 2015

DEFINITIONS

Clear Title: a title that is free of any encumbrances, burdens, or limitations.

Encumbrance: any right to, or interest in, land which may subsist in third persons, to the 

diminution of the value of the estate of the tenant, but consistently with the passing of the fee.

Horizontal Directional Drilling: is a mechanism to conduct hydraulic fracturing to reach 

targets beneath adjacent lands by drilling non-vertical wells.

Hydraulic Fracturing: (commonly known as “fracking”) is a process in which fractures in rocks 

below the surface are opened and widened through high pressure injection of a fracturing 

solution at high pressure. The process is used to extract natural gas or oil.

ABBREVIATIONS

CFR Code of Federal Regulations

FEMA Federal Emergency Management Agency

FIMA Federal Insurance and Mitigation Administration 

FMA Flood Mitigation Assistance Program

HDD Horizontal Directional Drilling 

HMA Hazard Mitigation Assistance 

HMGP Hazard Mitigation Grant Program 

PDM Pre-Disaster Mitigation Program
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MONITORING AND EVALUATION

Every three years, the recipient and subrecipient must submit a report to the FEMA 

Regional Administrator. The report must certify that the acquired property was inspected 

within the preceding month and that the property continues to be maintained consistent 

with the provisions of open space requirements, the deed restrictions, and the grant award. 

(44 C.F.R § 80.19(d) Land use and oversight, Monitoring and reporting)

QUESTIONS

Direct questions to the HMA Grants Policy branch at fema-hma-grants-policy@fema.dhs.gov.