Source: https://www.internationallawoffice.com/Newsletters/Energy-Natural-Resources/USA/Fulbright-Jaworski-LLP/Department-of-the-Interior-releases-draft-rule-on-well-stimulation
Timestamp: 2019-04-24 08:21:25+00:00

Document:
On February 3 2012 the Department of the Interior became the latest government entity to release draft regulations governing hydraulic fracturing. The rules are in draft, meaning that they are not yet being proposed for public comment. If adopted, the regulations would govern hydraulic fracturing on federal and Indian oil and gas leases only.
The department has not yet released documentation showing its compliance with the Paperwork Reduction Act.(3) Among other things, that act's purpose is to reduce duplicative paperwork; however, the requirements in the draft are duplicative of most information requirements of state oil and gas conservation commissions.
The draft regulations require well operators to disclose the trade names and purposes of additives used in fracturing fluid. As with many state regulations, the draft rule also includes an exemption for trade secrets. This action by the Department of the Interior comes shortly after President Barack Obama's State of the Union address, in which he indicated that his administration would require "all companies that drill for gas on public lands to disclose the chemicals they use".
The draft regulations are in line with the concerns expressed by the president regarding the protection of usable water, conservation of water, chemical disclosure, casing integrity and flowback water. Specifically, the regulations require that operators submit a proposal on Form 3160-5, entitled "Sundry Notices and Reports on Wells", and that the proposal contain specific information, such as fracturing fluid additives. If there is additional surface disturbance, operators must also submit a surface use plan. All well stimulation activities must be approved at least 30 days before operations commence.(4) Operators must also perform mechanical integrity tests of the casing, monitor well stimulation operations and submit a sundry notice subsequent to the stimulation of the well.
The most significant change is that the sundry notice must include substantial amounts of additional information before any operations are conducted, including geological formation information, fracturing fluid information, stimulation design information and information about recovered fluids.
For further information on this topic please contact L Poe Leggette, Barclay Richard Nicholson or Jennifer Cadena at Fulbright & Jaworski' by telephone (+1 713 651 5151), fax (+1 713 651 5246) or email (pleggette@fulbright.com, bnicholson@fulbright.com or jcadena@fulbright.com).
(1) 43 CFR § 3162.3-2(b).
(2) 43 CFR § 3162.3-3(a) (draft).
(3) 44 USC § 3501 et seq.
(4) 43 CFR § 3162.3-3(a) (draft).
(5) 43 CFR § 3162.3-3(a)(2) (draft).
(6) Id. § 3162.3-3(a)(3) (draft).
(7) Id. §§ 3162.3-3(a)(3)-(5) (draft).
(8) Id. § 3162.3-3(a)(6) (draft).
(9) Id. § 3162.3-3(a)(7) (draft).
(10) Id. § 3162.3-3(a)(8) (draft).
(11) Id. § 3162.3.3(a)(3) (draft).
(12) Id. § 3162.3-3(a)(9) (draft).
(13) Id. § 3162.3-3(e) (draft).
(14) Id. § 3162.3-3(b) (draft).
(19) Id. § 3162.3-3(c) (draft).
(22) Id. § 3162.3-3(d) (draft).
(24) Id. § 3162.3-3(f) (draft).
(26) Id. § 3162.3-3(g)(1)-(2) (draft).
(27) Id. § 3162.3-3(g)(3) (draft).

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