global-gas-stories-to-watch-for-in-2012

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Global Gas Stories to Watch for in 2012

By Susan L. Sakmar, Adjunct Professor of Law, University of San Francisco School of Law, Independent Consultant, and Global Shale Gas Course Instructor, CWC School for Energy

While some of the shale gas wastewater is re-used or re-injected, a significant amount still requires disposal. Some shale gas wastewater is transported to public and private treatment plants, many of which are not properly equipped to treat this type of wastewater. As a result, pollutants are discharged into surface waters such as rivers, lakes or streams where they can directly impact aquatic life and drinking water sources. The initiation of a rulemaking is the very start of the rulemaking process. In 2012, EPA plans to gather data, consult with stakeholders - including industry stakeholders - and solicit public comment on a proposed rule for wastewater discharges produced by natural gas extraction from coalbed methane and shale gas. While a final rule for shale gas is not expected until 2014, watch for notices of the rulemaking activities taking place in 2012.

c A special report on the “Golden Rules” will be released on May 29, 2012.

Guidance for Diesel Fuels

EPA is also currently working on guidance for hydraulic fracturing activities that use diesel fuels. Over the past year, there has been some confusion over whether the industry must disclose the use of diesel fuel in hydraulic fracturing and if so, how and when. EPA is now working on formulating those guidelines in response to uncertainties that have been raised over the past year. EPA is developing permitting guidance that is expected to be issued sometime in 2012. More information can be found at EPA, Underground Injection Control Guidance for Permitting Oil and Natural Gas Hydraulic Fracturing Activities Using Diesel Fuels, available at http://water.epa.gov/type/groundwater/uic/class2/hydraulicfracturing/index.cfm2

3 What Are the “Golden Rules” For Shale Gas Development?

The International Energy Agency (IEA) recently announced that it is working on a detailed analysis of the "Golden Rules" that are needed to support a potential "Golden Age of Gas." The IEA has indicated these rules will provide important insight into the environmental challenges linked to unconventional gas production and how best to deal with them. According to the IEA, as part of its work on the World Energy Outlook for 2012, a special report on the “Golden Rules” will be released on May 29, 2012. The IEA’s WEO 2012 is scheduled for release on November 12, 2012.5 While it is unclear how comprehensive the IEA’s “Golden Rules” will be, it is certainly worth watching since regulatory frameworks around the world are being adopted or modified to address the myriad of environmental issues that have been raised pertaining to shale gas development.

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5 IEA World Energy Outlook, http://www.worldenergyoutlook.org/


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