From Benefits to Duplicates: IPAA Sets the Record Straight

News Media Contact
Jeff Eshelman / Julia Bell
202.857.4722 / 800.433.2851

For Immediate Release
May, 11 2012

WASHINGTON – The Independent Petroleum Association of America (IPAA) continued to set the record straight this week, highlighting America’s longstanding record of safe and responsible oil and natural gas production. From the jobs and revenues generated by development, to the threatening impact of duplicative federal regulations, IPAA provided the facts.

  • Offshore Potential: Last month, Interior Secretary Ken Salazar announced that energy companies may be permitted to conduct seismic testing along certain portions of the east coast of the United States. While opposition stirred, IPAA’s Dan Naatz, Vice President of federal resources and political affairs, emphasized the positive impact increased access to America’s offshore oil and natural gas reserves has for our nation. Featured in the Cape May County Herald, Naatz notes:
  • “As New Jersey Society for Environmental Economic Development’s Michael Drulis recently told the Associated Press, ‘Economic growth and environmental protection are not mutually exclusive.’ We agree, and so do a clear majority of the American people. Exploration and development of America’s abundant offshore oil and natural gas reserves holds enormous economic potential for the east coast and the nation. Importantly, these activities can provide a reliable source of domestic energy without sacrificing the health of our environment.
  • “It is beyond due for our nation to truly embrace an ‘all-of-the-above’ energy policy that safely leverages our homegrown resources into more jobs, opportunities, and heightened security for our nation.”
  • Duplicative Disclosure: Last week, the Obama administration issued a proposed rule governing hydraulic fracturing for oil and natural gas on federal, taxpayer-owned lands. IPAA President and CEO Barry Russell weighed in, and was quoted in New York Times, State Journal, Reuters, Houston Business Journal, Politico, The Hill, Bloomberg, and Grand Junction Sentinel:
  • “B.L.M.’s proposed regulations, which would mandate one-size-fits-all regulations on well construction and hydraulic fracturing operations on these lands, are redundant. They will undoubtedly insert an unnecessary layer of rigidity into the permitting and development process.”

While the rules did present a willingness from the federal agency to work with the state regulatory agencies, who are already leading the charge to ensure the continued safe regulation and development of our nation’s resources, the regulation may hinder development by slowing permitting and reducing access to job-creating, taxpayer-owned energy resources. As Julia Bell, a spokeswoman for the IPAA, noted for E&E News:

  • “We appreciate that BLM’s draft regulations are attempting to build off of the states’ successful history of regulating hydraulic fracturing on federal lands,” she said. “In particular, the rules highlight the role of FracFocus.org, the chemical registry website operated by the Ground Water Protection Council, which has been crucial to a successful regulatory regime.”
  • Diesel Deals: EPA has released a 54-page draft document on regulating the use of diesel in hydraulic fracturing under the EPA’s Underground Injection Control program. In an interview with Platt’s Gas Daily,  IPAA’s Vice President of government relations Lee Fuller discussed the proposal further, highlighting the destructive impact of federal regulations on a state-regulated practice:
  • “To what degree does the federal government need to be integrating itself into the regulatory system?” asked Lee Fuller, vice president of the Independent Petroleum Association of America. Our concern is, you have a basically well-balanced regulatory system in place where the states are the primary regulators. It works well; it creates a good development path for oil and gas and reasonably protects the environment,” he said.