This “green completion” rule, required for all natural gas wells since January 2015, requires equipment and procedures designed to prevent the emission of a group of chemicals called volatile organic compounds (VOC), 15 and also capture methane, a potent greenhouse gas. The EPA requires the capture of all gases and fluids that come out of a well as it is being prepared for oil/gas production, including during hydraulic fracturing.In a few areas, the EPA’s regulatory role is more direct: 14 In most cases, the EPA allows states to develop and implement the regulations necessary to meet federal standards. The Environmental Protection Agency (EPA) sets standards on drinking water and air quality under the authority of the Clean Air Act, the Clean Water Act, and the Safe Drinking Water Act. The federal role in regulating exploration and production primarily focuses on environmental protection. 13 Federal Regulation of Exploration and Production Colors indicate which federal agency oversees and regulates activities on these lands. States enforce their regulations through permitting and regulatory inspections.įederal and Native American lands in the United States. 9 State-regulated activities include seismic and other geophysical surveys, leasing, drilling, hydraulic fracturing, oil and gas production, well closure, and site restoration. Environmentally focused regulations have become increasingly prominent over time, especially since the 1970s. Early state regulations were largely focused on preventing waste, ensuring the rights of mineral owners to develop their resources, and conserving resources to ensure the viability of future production. State regulations vary from state to state and over time. Local zoning may control some activities such as the minimum distance wells and other facilities must be set back from homes and businesses. States also regulate all oil and gas operations in state waters that extend from the coast to 3 to 9 nautical miles from the shoreline, depending on the state. 6 State Regulation of Exploration and Production 8Įxploration and production on state and private land are regulated by each of the 33 oil- and gas-producing states. 5 Image credit: American Geosciences Institute, produced with. States belonging to the Interstate Oil & Gas Compact Commission. State roles in regulating oil and gas drilling and production were formalized by the Interstate Oil & Gas Compact Commission (IOGCC), which formed in 1935 to set standards for oil and gas drilling and develop production regulations that the states agreed to enact. The Clean Air Act (1963), the Clean Water Act (1972), and the Safe Drinking Water Act (1974), including later revisions to these laws, form the basis of most federal regulation of the oil and gas industry. Public input is a formal part of regulation development. Regulations are implemented by the executive branches of local, state, and federal government based on the laws enacted by local, state, and federal legislators. Federal regulations primarily safeguard water and air quality and worker safety, as well as exploration and production on Native American lands, federal lands, and the Outer Continental Shelf. In general, most drilling and production is regulated by the states. Who regulates what depends on land ownership and whether federal regulations or state laws apply. 2,3,4įederal, state, and local governments each regulate various aspects of oil and gas operations. 1 Regulation has several objectives: protecting the environment (including air and water quality), protecting cultural resources, protecting workers’ and the public’s health and safety, and reducing wasted resources. Regulation of oil and gas operations has existed in various forms for over 100 years.
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Mandler for AGI, 2018 Download Print Version Overview Petroleum and the Environment, Part 21/24
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