FW: Flores Fracturing Bill No t e b o o k: Cre at e d : jesse-coleman's notebook 8/19/2014 12:01 PM A u t h o r: Mike Smith Subject: FW: Flores Fracturing Bill From: Mike Smith To: John Baza; Foerster, Catherine P (DOA); Bill Daugherty; Nick Tew; Lisa Ivshin ; Jim Welsh; Larry Bengal; David Porter; Jay Albert; Dana Murphy; Helms, Lynn D.; matt.lepore@state.co.us; Grant Black; Harold Fitch; sperry@state.pa.us; Jami Bailey; Nechodom, Mark@DOC CC: Brown, Maryam; Gerry Baker; Carol Booth; Erica Carr Date Sent: 9/17/2013 9:08:37 AM All Yesterday I had a long talk with Maryam Brown from Speaker Boehner's office concerning H.R. 2728 (attached) the "Protecting States' Rights to Promote American Security Act". The purpose of the Act is to codify a requirement for DOI deference to the states HF regs (if a state has HF regs in place). Many of you have already reviewed the Act and some have expressed support. The Act has Republican and Democrat co-sponsorship and is scheduled to be heard on the House floor in early October. As noted in Maryam's email below the Act has already received a lot of broad support. As also noted, she is requesting your support as a state regulator. I mentioned to Maryam that a resolution on the Act could be considered at our Long Beach meeting in November, but she also needs support letters from individual states by early October. If you are able to send a letter you might consider the language in the others attached, and please send me a copy for our files. Thanks, Mike From: Brown, Maryam [mailto:Maryam.Brown@mail.house.gov] Sent: Monday, September 16, 2013 3:49 PM To: Mike Smith Subject: Flores Fracturing Bill Good to visit with you, Mike. As discussed, I would sincerely appreciate your help with obtaining state oil and gas commission letters of support for H.R. 2728. Attached is the bill, as amended in committee. Also attached is a one pager developed by the committee as well as letters of support from the Governor of Utah, Chamber, NAM, ACC, AEA and AFPM. While there is a strong energy industry support, as you can see, there is a great deal of manufacturing support as well. As you know, the legislation is focused on the DOI rule; however, the risk is much broader than Federal lands, as the DOI rule is being touted as a “Federal baseline” that should ultimately apply to all lands (not just Federal lands). Thank you very much for the opportunity to work on this with you. Please don’t hesitate to call or email with questions. 202-225-5273 is my direct. Best regards, Maryam :xe1ms-1:w1:mrumm CHAMBER ov COMMERCE UNITED STATES AMERICA R. (Ema-.5111! AWME 101461-51IU July 2m} The Honorable Doe llaisting The Honorable Peter DeFaizio lIC'hairman Emil-ting Member 'Committee on Natural Remuroes 'Committee on Hat ural Resouroes L15. llouse of Representatives llouse of Representatives: Washington. DC EDSIS IIhr'aishington DC Dear llZ'hairman llaist ings and Emil-ting Member [IeFaizio: The L15. lIEhamber ol'Commeroe. the world?s largest business federation representing the interests ol'more than three million bus inesses .and orgmtizatiens of all sizes. seetors. .and regions. as well as state .and loeal ehambers ard industr assoeiat ions. and dedieated to promoting. proteeting. and defending Ameriea?s free enterprise system strongly supports ILFL. 21'23. the ?Proteeting States? Rights to Promote Ameriean Energy Seeurity Aet.? ard an amendment expeeted to be offered by Rep. Mullin that would extend the important provisions of the legislation totribal lands. The ?ureauol'Land Management has twioe proposed new regulationol'hydraulie Iraeturing on federal and tribal lands. ineluding the proposed rule eurrently open for eomment. llowever. in neither ease has ustil'ied additional regulation. State regulatory authorities have maintained primaey inthe regulation ol'oil and natural gas exploration and produetion within eaeh respeetive state?s bquders. ineluding. to a larg extent. federal lands. State regulators not only possess the regulatory mandate [run their respmtive state laws. but they have also developed the expertise neoessary to understand the speeil'ie geology. hydrology. and other physieal nuanees ol' the lands intheir respeetive states. As sueh. the nation has bene lited froth elTieient extraction of oil and natural gas from produeing states while also proteetinghuman health and the environment. produoers must with applieable state re gulations when operating on federal lands. they must aLso navigate the moribund I?ederal permitting prooess. As sueh. oil and natural gals exploration and produetionon federal lands has grown inereaisingly ineITie ient preventing Mariners I'rom realizing _job ereation. eoonomie growth. and inereased energy seeurity that aoeompany additional domestie produet ion. The additional time required by the federal permitting prooess. in addition to existing regulatory requirements. inereaises the oost ol? produetion and makes operations on federal lands less eoonomieal thanon state and private lands. Dd' 113151-3333 ?ff. can? mm Hum 155:" Warmest-3 msarmmotte 33.562515de Edam-Eamon; July 30. The Honorable Doc lIastings LIE. lIouse on Natural Resources l324 Longworth lIouse lI'Jlflice Building Washington. DC EDSID Dear Chairman lIastings: Re: Support for Hill. 2123., Protecting State-3? Rights to Promote American Energy Security Act. The American Fuel 3.: Petrochemical Manufacturers writes today to express its support for ILR. 21'23. Protecting States? Flights to Promote American Energy Security Act. introduced by Rep. Bill Flores This bipartisan legislation would reaffirm states? rights and prohibit the Department of Interior from enforcing federal hydraulic fracturing regulations in states that already ha 1e laws regulatingthe activity. AF PM is a trade association representing high?tech American manufacturers ofvirtually the entire supply of gasoline. diesel. jet fuel. other fuels ard home heating oil. as well as the petrochemicals used as building blocks for thousands of vital products in daily life. lI'JIur members make modern life possible and keep America moving and growing as they meet the needs of our nation and local communities. strengthen economic and national security. and support two million Americanjobs. Many states have long and successful histories ofregulating oil and gas activities effectively and decisions to tailor laws to local gology and hydrology should remain with them. AFFM supports this legislation that recognizes anddefers to the states. rather than a one-s i-ze-fits-all approach by the federal government on regulating hydraulic fracturing. lIydraulic fracturing has led to a revolution in gas and oil recovery shale. The has an abundant supply of oil. natural gas and other energy murces. more than just about any country on Earth. Energy from abundant and affordable natural gas and new domestic supplies of crude oil from hydraulic fracturing have helped ensure domestic refiners. specifically in the Northeast. remain competitive in a global marketplace. In addition. natural gas liquids that are used to manufacture petrochemica Ls are providing tremendous growth opportunity for petrochemical producers. lli?ir'itJ'iout hydraulic fracturing. tl'e nation would not enjoy the economic andjob creation benefits our nation?s abundant supplies of natural gm can provide. -..- America's Energy Advantage . august an. aura The Little Hastings Chalmiaa Enmmittee nut Natural LLB. Home or Ropt?esmtuliues. Washingten. in: 241515 The Honorable Pete: Dequ Ranking Member Cummitiee an Natural Resets-nee Hausa: of?apresentatiwa DC EDSJS Deal Chairman Hastings and Haltle Member DeFlizio: America?s Energy Advantage (HEM is pleased tu- uft?er our supp-art the HR. 2713, the ?Protesting States" Rights in American Energy Beaurity a bill inrredueed by Representative Bill Flares (Ft- This legislatiun wilt [st-wide nwded assure-rue in our nation?s energy adapt}- and build mare eun?dts'rce in the manufacturing renaissance mles?amjr serene the enema-y. AEA is a. trade assa-ciatiun represmiing many at the Hand?s leading manttiaeturers and prudrtears. as 1.uell as 111:: United States? pubiiely ewned laeal natural gas disu-ihutinn enmpanits. members [amid-a thuieands et'prudiaas tn- .ltrnerieen consumers, and tens nf high-wagejnhe fer American writers. REA. is dedicated. to raising awareness nf the in American manufacturing made paesihle by uur new slain-idem and affair-debts supplies at natural gas. Which has mute than manufacturing jnlJ-s in the United. States since extraction techniques are directly reapurrsihle ?st America?s newiuund abundanee nt? natural gas. The shale ?gale? is pestering an American manufacaul'ing renalssanee that presents it one: in-a- generatlalt lu- nahuild and mndemize nut manufacturlng haste, increase mn- Insomnia euntpetltivenaas and create of high-skilled middle-class jobs. IRS is impedanl legisJat'ien that 1mill help this manuEaetui-ing resurgence eentinue while ensuring the respunsible een?nued deseluputant at our natural mama. Am?lc?'? natural gas advantage has already led in the anneunnement of Sill] billion ofnnw capital investmem in mere than IEEI pajama. This renaissaltee is not unis till-Diving, new ?rieilides to he built, but it is alau allewing companies in ?teshera? their prudnetiart promises here in the United States, a museum-rt that a meal Beaten Consulting Gmup study predicted wuubd {nettle an additional ?ve millinn the nest seem yams. The manufacturingtenaissauee is an exciting. museum and an: that is still in its infamy. hmeriea has a sheath.I and abundant supply ?lmed-liable t'i?iun'll gas. priced well helm-rm: enmpetilirrtt in Eur-ape and H.R. HEB, Protecting StatE' Flights to Promote American 12:01 PM, 1MB American Chemistry Council EM mum'- .il ?1l '6th July 31}. The Honorable Doc Hastings Chairman House Eonuuittee on Hautral Resources 1314 Longworth HIDE- DC. 205 Id The Honorable Peter DeFaeio Ranking Member House ll'Z?omrnitteve on Natural Resources 1329 Longwonl'l HUB Washington. DE. 20515 Dear Chaim Hastings and Ranking Member DeFaIio: The American Chemistry Council representing the nation's largest industrial users of natural gas. urges you to support policirs Iltat create a robust supply ol'natural gas produced on federal lands. Legislation being introduced by Congressman Hill Flores. the ?Protecting States? Rights to Promote American Energy Security Act.? will help maintain a healthy supply of rely-priced natural gas produced on public lands. We strongly recommend that tlte House Committee on Natural Resources pass this bill out ol'eornmit'lec and send it to the House floor for camideralicn. Natural gas is a Itey cost uFdoing business for energy-intensive industries liite the business of' American chemistry. Today?s abundant and affordable supplies oi? natural gas are creating a manufacturing. renaissance in the United Stat. Unfortunately. policies proposed by the Bureau ct'Larud Management may lead to reduced gas production on federal lands and highEr costs [or industrial gas consumers. Access to a robust supply of neutral gas on federal lands is especially important to chemical manufacturers. who use energy inputs. mainly natural gas and natural gas liquids. as both our major fuel source and crucial feedstock. Approximately T5 percent of the cost of producing petrochemicals and plastics is related to the cost ofenergy-deriued raw materials. Consequently. our ability to compete in global markets is largely determined by the price and availability of natural gas and natural gas liquids- And. since we supply inpuls to 96 percent :3ch goods manufactured in the U.S.. a more competitive chemical industry makes the entire manufacttu'ing sector more competitiye in global markets. Willi the advent of more abundant. reliable. and a?'ordable supplies of natural gas. particularly from shale. LLS. chemical otanufaettn'ers are now globally competitive. his essential that we maintain this critical national advantage. STATE ors UTAH Gains R. DFFIE-E Us THE GOVEHHDFI Enact BELL SALT LAKE CITY. UTAH Hill .Fuly Ill}. 2013 Chairman Doe Hastings House Natural Resources lElonunittee [3-24 Longworth House llilfi?ice Building Washington. TILE. H.515 Ranking Member Peter DeFaaio House Natural Resources Committee 2134 Rayburn Of?ce Building Washington. 20515 Dear Chairman Hastings and Ranking Member The State of Utah has. for decades. promulgated and maintained rules that proyide for the integrity et'eil and gas wellberes, and regulate the proeuises oI'well-bore stimulalion and management, including the process ofl'tydraulie fracturing. Utah?s oil and gas regulatory programs have been thoughtfully designed by experts to address statevspecifie geologic and aquifer protection factors. "l'l'rey are Eq?rpli?li consistently by highly trained staff. reviewed regularly, and subjected continuously to careful administrative oversight- Currently, Utah regulators oversee operations ef?ciently on all lands within our state borders (stature federal, and let] and issue pennits in a timely manner. in contrast. a federal permitting program is notorious for chronic and protracted delays- As you may Imour. the Bureau oi~ Land Management is proposing new regulations concerning all and gas well-bore integrity and hydraulic fracturing However. it has failed to demonstrate the need for a neu.I federal regime concerning [hose 1' Elli-1.1.111. htym'rd simply asserting that it has 1hr: authority to do so. its a result. the Eth'l's proposals. lt'enacted. 1?IreruJ-rl create an Unwieldy and dupliealiye regulatory structure without any concomitant protection for the ent-?lrorunent. States are in an inherently betler position to regulate oil and gas actiyity precisely ilieoanse they have greater ?exibility than the federal goyemrnent to respond to new information and modify or update their niles in order to lespond to improvements in both Ieehnnlogies and best practices- This fact was acknowledged recenlly by the 1 Western Governors? Association. II.I..4 Union Calendar N0- h-Tnmumx - - [Report No. Il3?] Tc: I'zt'caglli?k' H11 i-zaln-c .'Illd ?I'm-Immu- z-Ix-Im' Hc'c'l'll'i1jf. d?'z'kihllh'l?. and jg]: IN THE all'IJ.? IH. Hill-'5 I'I'cal' llillm-II'. l?l .'lull'. .'Illd ill1l'ca-c1l'lwd 11w 1u'l'II1-i'1l Inn-i I'v- IE-l'l'q'd 51.11 ?ll-'3 I?Ez'hzil'h'd ?'11 II II 1 :i11l1' 11w Hull-:1- 11w ?lth-I'm] 1-:1-1Iz' .aTl .aI'1u-I iIm-n In? In HAITI-I hil'l. 351'" mp}: hill .45 --II Jul]: H. lawnmmu1amm1a.m .trrl Augml 2U. 213131-115 pm