Fracking, federalism, and private governance

Harvard Environmental Law Review

Volumn 39, Issue 1, 2015, Pages 107-156

  Leiter, Amanda C ^a  

^a AMERICAN UNIVERSITY   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

ADVANCED TECHNOLOGY; DRILLING; ENVIRONMENTAL RISK; EXTRACTION; FEDERAL SYSTEM; GOVERNANCE APPROACH; HEALTH RISK; HYDRAULIC FRACTURING; NATURAL GAS; PRIVATE SECTOR; REGULATORY FRAMEWORK;

UNITED STATES;

EID: 84983437648     PISSN: 01478257     EISSN: None     Source Type: Journal    
DOI: None     Document Type: Article

References (98)

1. The term "unconventional gas" refers to gas "trapped underground by impermeable rocks, such as coal, sandstone and shale." FAQs: Natural Gas, INT'L ENERGY AGENCY, http://perma.cc/JT5RKC2H. This Article concerns only two of the three main types of unconventional gas-shale gas and tight gas. The third, coal bed methane, is extracted using a somewhat different technology that is beyond the scope of this Article. For an explanation of the techniques used to extract coal bed methane, see generally ALL CONSULTING & MONT. BD. OF OIL & GAS CONSERVATION, COAL BED METHANE PRIMER: NEW SOURCE OF NATURAL GAS-ENVIRONMENTAL IMPLICATIONS (2004), http://perma.cc/HQ4Z-UD8L.
2. Some cities have also seen drastic changes. See, e.g., Increasing Drug Trade, Violence Mar Positive Effects of Bakken Boom, BILLINGS GAZETTE (Apr. 13, 2014), http://perma.cc/CF6UEJAW (describing the increase in crime in and near Williston, ND, accompanying the oil and gas boom).
3. Doug Clauson, Hydraulic Fracturing: New ASTM International Subcommittee to Develop Needed Standards, ASTM INT'L STANDARDIZATION NEWS (Nov./Dec. 2012), http://perma.cc/LL7G-Y8CK.
4. Performance Standards, CTR. FOR SUSTAINABLE SHALE DEV., http://perma.cc/SMS2-H49G.
5. GAS & PRESERVATION P'SHIP, http://perma.cc/X2LA-KXZM.
6. STATE REV. OF OIL & NATURAL GAS ENVTL. REGULATIONS, http://perma.cc/5W82-9X4J.
7. See generally Tracey M. Roberts, Innovations in Governance: A Functional Typology of Private Governance Institutions, 22 DUKE ENVTL. L. & POL'Y F. 67, 77-135 (2011) (identifying the roadblocks to government regulation of certain risks and the variety of private governance institutions that arise to fill the resulting regulatory gap).
8. For a discussion about the effectiveness of voluntary compliance programs, see generally Nicole Darnall & Stephen Sides, Assessing the Performance of Voluntary Environmental Programs: Does Certification Matter?, 36 POL'Y STUD. J. 95 (2008).
9. See Carl T. Montgomery & Michael B. Smith, Hydraulic Fracturing: History of an Enduring Technology, J. PETRO. TECH., Dec. 2010, at 26, 26.
10. Hannah Wiseman, Risk and Response in Fracturing Policy, 84 U. COLO. L. REV. 729, 753-54 (2013) ("[A]lthough fracturing is an old practice, it is distinctly new in two important ways. First, the specific practice of slickwater hydraulic fracturing has introduced new processes to old fracturing techniques. Higher water use in fracturing requires, for example, larger water withdrawals. Second, slickwater fracturing has enabled the development of thousands of new oil and gas wells in the United States." (citations omitted)).
11. See, e.g., ALEX TREMBATH ET AL., BREAKTHROUGH INST., WHERE THE SHALE GAS REVOLUTION CAME FROM: GOVERNMENT'S ROLE IN THE DEVELOPMENT OF HYDRAULIC FRACTURING IN SHALE (2012), http://perma.cc/S2MM-XJGE.
12. GEORGE E. KING, SOC'Y OF PETROL. ENG'RS, HYDRAULIC FRACTURING 101: WHAT EVERY REPRESENTATIVE, ENVIRONMENTALIST, REGULATOR, REPORTER, INVESTOR, UNIVERSITY RESEARCHER, NEIGHBOR, AND ENGINEER SHOULD KNOW ABOUT ESTIMATING FRAC RISK AND IMPROVING FRAC PERFORMANCE IN UNCONVENTIONAL GAS AND OIL WELLS (2012), http://perma.cc/GQW9-6YEG.
13. Jesse Jenkins, Energy Facts: How Much Water Does Fracking for Shale Gas Consume?, THE ENERGY COLLECTIVE (Apr. 6, 2013), http://perma.cc/ZK5C-XC7P.
14. Well Completion, NATURALGAS.ORG, http://perma.cc/MJL4-PV9P.
15. See generally J. Daniel Arthur et al., Plugging and Abandonment of Oil and Gas Wells (Nat'l Petrol. Council N. Am. Res. Dev. Study, Working Document Paper No. 2-25, 2011), http://perma .cc/4TGM-B3ZH (describing the risks posed by abandoned wells and some steps that can be taken at the time of abandonment to reduce those risks).
16. Richard J. Pierce, Jr., Natural Gas: A Long Bridge to a Promising Destination, 32 UTAH ENVTL. L. REV. 245, 246 (2012).
17. See Energy in Brief: What Is Shale Gas and Why Is It Important?, U.S. ENERGY INFO. ADMIN., http://perma.cc/4Z6L-SLS3.
18. See, e.g., Chris Tackett, Natural Gas: 6 to 12 Percent of the Methane Produced is Leaking, Study Finds, TREEHUGGER (Aug. 9, 2013), http://perma.cc/YKK3-PUX7.
19. See, e.g., Richard Fausset & Neela Banerjee, Tests Warned of Cement Problems Before Well's Blowout: BP and Halliburton Were Aware of Them But Used It Anyway, an Investigative Commission Reports, L.A. TIMES (Oct. 29, 2010), http://perma.cc/SXL6-KALF (citing findings of President Obama's special commission investigating the BP Deepwater Horizon spill); NEW MEXICO OIL CONSERVATION DIV., CASES WHERE PIT SUBSTANCES CONTAMINATED NEW MEXICO'S GROUNDWATER (2008), http://perma.cc/M2TU-3K35.
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24. Id. See also Katie M. Keranen et al., Potentially Induced Earthquakes in Oklahoma, USA: Links Between Wastewater Injection and the 2011 Mw 5.7 Earthquake Sequence, 41 GEOLOGY 699 (2013).
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27. See Darryl Fears, Maryland Inches Closer to Decision Time on Hydraulic Fracturing, WASH. POST (Dec. 8, 2012), http://perma.cc/CX9W-8LE3 (indicating that under an executive order issued by Governor O'Malley, the Maryland Department of the Environment may not approve drilling permits until 2014, when a costly statewide study of drilling impacts is due to be completed, unless other data prove drilling safe sooner).
28. H.R. 2825, 113th Cong. (2013). Bill tracking for the CLEANER Act is available online at Congress.gov, H.R. 2825-CLEANER Act of 2013, CONGRESS.GOV, http://perma.cc/H63A-M3UB.
29. H.R. 1154, 113th Cong. (2013). Bill tracking for the BREATHE Act is available online at Congress.gov, H.R. 1154-BREATHE Act of 2013, CONGRESS.GOV, http://perma.cc/VU3X-LBLE.
30. See generally EPA's Study of Hydraulic Fracturing for Oil and Gas and Its Potential Impact on Drinking Water Resources, EPA, http://perma.cc/N4AQ-PGRZ.
31. Natural Gas Extraction-Hydraulic Fracturing, EPA, http://perma.cc/MLV4-HECR. The proposed rule to amend the Clean Water Act effluent limitation guidelines for the Oil and Gas Extrac tion Category is scheduled for publication later this year. See Unconventional Extraction in the Oil and Gas Industry, EPA, http://perma.cc/8XAC-LPY7.
32. GABRIELLE PETRON ET AL., ESTIMATION OF EMISSIONS FROM OIL AND NATURAL GAS OPERATIONS IN NORTHEASTERN COLORADO (2012), http://perma.cc/JK72-PQET.
33. See generally Unconventional Gas Technical Engagement Program (UGTEP), U.S. DEP'T OF STATE, http://perma.cc/VMZ8-Q5XK.
34. See Memorandum from William L. Wehrum, Acting Assistant Adm'r, EPA, to Reg'l Adm'rs, on Source Determinations for Oil and Gas Industries (Jan. 12, 2007), http://perma.cc/EB28-56LY
35. The states in this category are: California, Utah, Montana, Colorado, Wyoming, New Mexico, North Dakota, South Dakota, Kansas, Nebraska, Oklahoma, Texas, Arkansas, Louisiana, Illinois, Indiana, Ohio, Kentucky, Tennessee, Mississippi, Alabama, Virginia, West Virginia, Maryland, Pennsylvania, and New York. NATHAN RICHARDSON ET AL., RES. FOR THE FUTURE, THE STATE OF STATE SHALE GAS REGULATION 25 (2013), http://perma.cc/VJ2L-F9CV.
36. Id.; see also MATTHEW MCFEELEY, NATURAL RES. DEF. COUNCIL, STATE HYDRAULIC FRACTURING DISCLOSURE RULES AND ENFORCEMENT: A COMPARISON 7 (2012), http://perma.cc/FDJ2-HEZF (noting that eight of the states with existing disclosure requirements allow companies to withhold information they deem confidential without any justification or oversight, while only one state "has a clear process for evaluating and approving or denying trade secret exemption claims").
37. Delaware River Basin Commission: Battleground for Gas Drilling, STATEIMPACT, http://perma .cc/A495-J38D.
38. See generally Grace Hood, Historic Greeley Ruling Looms Large Over Colorado Fracking Challenges, NPR (Feb. 24, 2014), http://perma.cc/YK43-URJR (discussing the historic case of Voss v. Lundvall Brothers, 830 P.2d 1061 (Colo. 1992) (holding that Colorado's Oil and Gas Conservation Act preempted the home-rule City of Greeley from enacting a land-use ordinance that banned drilling for oil, gas, or hydrocarbons within the City)).
39. Avery Fellow, Investors Demand Climate-Risk Disclosure in 2013 Proxies, BLOOMBERG
40. FracFocus is Live, FRACFOCUS, http://perma.cc/QTL8-7DYS. For a discussion of the controversial origins of FracFocus, see generally Miriam Seifter, States as Interest Groups in the Administrative Process, 100 VA. L. REV. 953, 1007-14 (2014).
41. FracFocus 2.0, FRACFOCUS, http://perma.cc/UE6X-LREE (showing "total well sites registered" as 85,659 as of November 15, 2014).
42. AM. PETROL. INST., AMERICAN PETROLEUM INSTITUTE STANDARDS 8 (2004), http://perma.cc/B8P6-SS4R.
43. See ASTM WK 42803 New Guide for Data Management and Reporting Associated with Oil and Gas Development Including Hydraulic Fracturing, ASTM INT'L, http://perma.cc/V6XMEK4W.
44. CTR. FOR SUSTAINABLE SHALE DEV., http://perma.cc/RJ6T-LB6S.
45. Performance Standards, CTR. FOR SUSTAINABLE SHALE DEV., http://perma.cc/WXM9-52F8.
46. GAPP's Mission, GAS & PRES. P'SHIP, http://perma.cc/TM9R-6FBD.
47. See About Us: Who We Are, STATE REVIEW OF OIL & NATURAL GAS ENVTL. REGULATIONS, http://perma.cc/T6ZQ-K6E7 (describing the group's funding).
48. See Our Team: Voting Members, STATE REVIEW OF OIL & NATURAL GAS ENVTL. REGULATIONS, http://perma.cc/ENE7-J999.
49. See State Reviews: The Process, STATE REVIEW OF OIL & NATURAL GAS ENVTL. REGULATIONS, http://perma.cc/Y8KT-YSMN.
50. STATE REVIEW OF OIL & NATURAL GAS ENVTL. REGULATIONS, 2013 STRONGER GUIDELINES § 1.1 (2013), http://perma.cc/H9YD-LYA8.
51. CTR. FOR SUSTAINABLE SHALE DEV., PERFORMANCE STANDARDS 4 (2013), http://perma.cc/ 3YXV-NKUQ.
52. AM. PETROL. INST., OVERVIEW OF INDUSTRY GUIDANCE/BEST PRACTICES ON HYDRAULIC FRACTURING (HF) (2012), http://perma.cc/LM5N-XS39.
53. STATE REVIEW OF OIL & NATURAL GAS ENVTL. REGULATIONS, 2014 STRONGER GUIDELINES §§ 1.1, 9.2 (2014), http://perma.cc/TL2J-7EVV.
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57. See generally, e.g., Michael S. Sparer & Lawrence D. Brown, States and the Health Care Crisis: The Limits and Lessons of Laboratory Federalism, in HEALTH POLICY, FEDERALISM, AND THE AMERICAN STATES 181 (Robert F. Rich & William D. White eds., 1996).
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59. Thomas W. Merrill, Capture Theory and the Courts: 1967-1983, 72 CHI.-KENT L. REV. 1039, 1050-52 (1997) (explaining capture theory);
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62. See, e.g., Steven G. Calabresi & Livia Fine, Two Cheers for Professor Balkin's Originalism, 103 NW. U. L. REV. 663, 681-82 (2009) ("The Framers themselves made it quite clear that they designed the Madisonian system of checks and balances to prevent temporary passions, which might engulf the body politic, from being legislated immediately into law. They guaranteed. . that change would be slow and incremental. . .").
63. David Snyder, Molecular Federalism and the Structures of Private Lawmaking, 14 IND. J. GLOBAL LEGAL STUD. 419, 431 (2007);
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66. The Court in Hollingsworth v. Perry, 133 S. Ct. 2652, 2660 (2013)
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68. Susan Rose- Ackerman, Risk Taking and Reelection: Does Federalism Promote Innovation?, 9 J. LEGAL STUD. 593, 594, 610-11 (1980);
69. Edward L. Rubin & Malcolm Feeley, Federalism: Some Notes on a National Neurosis, 41 UCLA L. REV. 903, 925-26 (1994);
70. David A. Super, Laboratories of Destitution: Democratic Experimentalism and the Failure of Antipoverty Law, 157 U. PA. L. REV. 541 (2008)).
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72. Richard L. Revesz, Rehabilitating Interstate Competition: Rethinking the "Race-to-the-Bottom" Rationale for Federal Environmental Regulation, 67 N.Y.U. L. REV. 1210 (1992) (arguing that competition among states will produce an efficient allocation of industrial activity).
73. Hannah Wiseman, Regulatory Islands, 89 N.Y.U. L. REV. (forthcoming 2014)
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75. See, e.g., Kate Galbraith, Strong Rules on Fracking in Wyoming Seen as Model, N.Y. TIMES (Nov. 22, 2013), http://perma.cc/5Y3X-BFVU.
76. See, e.g., Steve Everley, How Anti-Fracking Activists Deny Science: Water Contamination, ENERGY IN DEPTH (Aug. 13, 2013), http://perma.cc/X4MK-9BPS.
77. See How to Read a Fracturing Record, FRACFOCUS, http://perma.cc/Z2FT-D3ZS (noting that even FracFocus allows companies to redact proprietary ingredients in their fracturing fluid).
78. http://perma.cc/WZ8U-ELTW.
79. http://perma.cc/BW3A-HFTQ.
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81. Mike McIntire, Conservative Nonprofit Acts as a Stealth Business Lobbyist, N.Y. TIMES (Apr. 21, 2012), http://perma.cc/AP57-MU4F
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86. See, e.g., Reuters, Shell President: Fracking Safe, YOUTUBE (July 7, 2011), http://perma.cc/ TW6Z-MTT8.
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89. See, e.g., Snyder Bros., Inc., Hydraulic Fracturing Fluid Product Component Information Disclosure, Robert A Zaborowski #1M-47.5 Well, API # 37-019-21822, Fracture date 7/24/2012, FRACFOCUS, http://perma.cc/WMW9-ZMAY (disclosing the use of "iron control," "scale control," and "acid corrosion inhibitor," but providing little additional information about the properties or "proprietary" components of those additives).
90. See generally Catherine M. Sharkey, Products Liability Preemption: An Institutional Approach, 76 GEO. WASH. L. REV. 449, 454-76 (2008) (surveying Supreme Court jurisprudence on regulatory preemption).
91. Maxwell J. Mehlman, Professional Power and the Standard of Care in Medicine, 44 ARIZ. ST. L.J. 1165, 1224 (2012) (criticizing proposals to use medical practice guidelines as "safe harbors" to insulate physicians from malpractice liability).
92. Kevin Begos, Center for Sustainable Shale Development Fracking Coalition Upsets Environmentalists, Drillers, HUFFINGTON POST (Apr. 7, 2013), http://perma.cc/3QFV-SV64.
93. Kevin Begos, Fracking Coalition Upsets Both Greens and Drillers, AP (Apr. 7, 2013), http:// perma.cc/LYK6-FJV5.
94. Jason Morrison & Naomi Roht-Arriaza, Private and Quasi-Private Standard Setting, in THE OXFORD HANDBOOK OF INTERNATIONAL ENVIRONMENTAL LAW 498, 520 (Daniel Bodansky et al. eds., 2007)
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97. See, e.g., Michael D. Sant'Ambrogio, Agency Delays: How a Principal-Agent Approach Can Inform Judicial and Executive Branch Review of Agency Foot-Dragging, 79 GEO. WASH. L. REV. 1381, 1384-85 (2011) (documenting lengthy delays in agency action).
98. Mike Soraghan, Hydraulic Fracturing: FracFocus Straining Under Heavy Use as BLM Weighs Disclosure, ENERGYWIRE (Sept. 6, 2013), http://perma.cc/87CA-PP6H