The Rising Influence of Rising Affluence

[DewDiligence]

EPA Questions Gas Drillers

http://online.wsj.com/article/SB10001424052748704644404575482060132963700.html

›SEPTEMBER 10, 2010
By SIOBHAN HUGHES

WASHINGTON—The Environmental Protection Agency on Thursday asked nine big natural-gas companies and contractors to disclose the chemicals used in a controversial technique for accessing the fuel from vast underground gas fields.

The request, made to companies including Halliburton Co. and Schlumberger Ltd., comes amid a growing public backlash over a relatively new method of gas drilling. The debate is coming to a head as the EPA next week wraps up a series of public hearings in preparation for a study on the effect of the procedure, known as hydraulic fracturing.

"Natural gas is an important part of our nation's energy future, and it's critical that the extraction of this valuable natural resource does not come at the expense of safe water and healthy communities. By sharing information about the chemicals and methods they are using, these companies will help us make a thorough and efficient review of hydraulic fracturing and determine the best path forward," EPA Administrator Lisa Jackson said in a statement.

Halliburton said in a statement that "we will of course fully cooperate."

The EPA said that in addition to the chemical composition of the fluids, it also wants data on the chemicals' effects on human health and the environment, standard operating procedures at their hydraulic fracturing sites and the locations of sites where fracturing has been conducted.

"This information will be used as the basis for gathering further detailed information on a representative selection of sites," the EPA said in a statement.

Residents in areas that sit atop the gas locked in underground rock formations, or shale, fear the chemicals used in the drilling procedure will contaminate drinking water. Companies say that while the chemicals aren't publicly disclosed because they are commercially sensitive, the information is shared with local regulators. Companies also say that no evidence exists showing that the techniques are unsafe.

The EPA asked that the information be provided on a voluntary basis within 30 days, and asked companies to respond within seven days on whether they would comply.

The EPA said it expects companies to cooperate since the data are similar to information that has been provided separately to Congress. The EPA said that if companies do not comply voluntarily, it is "prepared to use its authorities to require the information needed to carry out its study."‹