LEAF V. EPA Issue Page http://web.archive.org/web/20000816113803/http://www.iogcc.... http://www.iogcc.oklaosf.state.ok.us/NEWS/LEAFVEPA.htm 44 captures JUL AUG 16 1999 2000 16 Aug 00 - 8 Nov 05 Background Go LEAF v. EPA The Threat to Oil & Gas Fracturing Operations in the U.S. Issues Resolution BACKGROUND ON LEAF V. EPA Reference Documents Testimony and Legal Documents Press Coverage IOGCC Resolutions Return to IOGCC Home Page This issue first surfaced in 1989, and has become a serious threat to the production of oil and natural gas in the United States. Right now, this issue is targeting the coalbed methane industry, but a large percentage of all oil & gas wells are fractured sometime during the drilling process. The demand for natural gas is growing dramatically, and a recent study by the National Petroleum Council projects a 32% increase in demand from 1998 to 2010. This increased need for natural gas makes the ability to produce coalbed methane and other natural gases more important than ever. In 1994, LEAF (Legal Environmental Assistance Foundation) sued EPA contending that natural gas well should be regulated as "injection" wells under the Safe Drinking Water Act (SDWA). In 1997, the 11th Circuit Court Decision (based on the definition of injection) ruled against EPA concluding that fracturing of natural gas wells (and arguably all oil & gas wells) must be regulated under SDWA. Hydraulic fracturing is required for producing gas from most coalbeds as the gas needs to be given a path out of the coal to the well. Following the 11th Circuit Court opinion, EPA required the State of Alabama to amend their regulations, which subsequently they have done. Under these regulations, operators must purchase drinking water for use in fracturing operations. These mandated changes to the regulations have increased the costs to the State of Alabama by approximately $300,000 per year, and the requirement that operators must use drinking water for fracturing has significantly increased their operating costs. [up] ISSUES There has never been any evidence that fracturing oil or gas producing structures, impacts shallow fresh water aquifers. All evidence is to the contrary. Thus the increased costs, administrative and operational, to comply with the 11th Circuit Court decision is a waste of resources. The Alabama decision sets a precedent and other litigation will surely follow. In fact, LEAF has already filed a motion challenging the basis upon which EPA is proceeding. If LEAF is successful, EPA could be ordered to regulate all fracturing operations nationally under the SDWA. It will take years and millions in legal fees to reach a conclusion that Congress could reach in a few weeks. [up] 1 of 2 4/10/16, 5:46 PM LEAF V. EPA Issue Page http://web.archive.org/web/20000816113803/http://www.iogcc.... RESOLUTION 44 captures The 16 Augbest 00 - way 8 Nov to 05 remedy the situation is c Siegelman has already written a letter to White House Chief of Staff, John Podesta (attached) urging that the White House contact the EPA. There is legislation being drafted on Capitol Hill under the leadership of Sen. Sessions (R, Al). In conversations with EPA officials, we need EPA to work with Congress in finding a legislative solution. Go JUL AUG 16 1999 2000 [up] REFERENCE DOCUMENTS Hydraulic Fracturing Primer Importance of Natural Gas [up] TESTIMONY & LEGAL DOCUMENTS 11th Circuit Court of Appeals Order - February 18, 1999 LEAF Petition - January 26, 2000 Testimony of Dennis Lathem, Executive Director of Coalbed Methane Association of Alabama July 29, 1999 September 9, 1999 November 22, 1999 [up] PRESS COVERAGE Durango Herald Article - February 18, 2000 Tuscaloosa News Article - November 9, 1999 [up] IOGCC RESOLUTIONS Resolution 99.603 Resolution 97.901 (Re-Authorized 2000) [up] Please address any questions or comments to the Michelle Evans, IOGCC staff liaison by e-mail or by calling 405/525-3556, ext. 117. Return to IOGCC Home Page 2 of 2 4/10/16, 5:46 PM