American Oil and Gas Reporter - June 2012 - 171

on the FracFocus.org website, she said. “Statewide Rule 29 applies to any hydraulic fracturing treatment performed on a well for which the RRC has issued a drilling permit on or after Feb. 1,” she said. No later than 15 days following completion of fracturing treatments on a well, service companies are required to provide operators with information to complete the FracFocus form for material safety data sheet chemicals, including chemical names, Chemical Abstract Service num-

bers, and an indication of relative volumes, Savage reported. On or before the date an operator submits the RRC well completion report, he must complete the FracFocus chemical disclosure form and upload the form to the website, she said. Other required information includes well location and depth, she said, adding that service companies or operators were not required to disclose trade secret information unless the Texas attorney general or an appro-

priate court determined the information was not entitled to trade secret protection under Texas Government Code Chapter 552. The landowner or adjacent landowners, as well as Texas agencies with appropriate jurisdiction, can challenge trade secret claims, Savage noted. While FracFocus is the official fracturing chemical registry, she said the RRC was required to store the information and make it publicly available if FracFocus was unavailable. r

BLM Frac Rules Redundant, Many Say
WASHINGTON–Industry groups offered mixed initial reactions toward the U.S. Department of Interior’s draft rule that would require companies to publicly disclose the chemicals they use in hydraulic fracturing operations on public and Indian lands. The measure, issued in early May through the federal Bureau of Land Management, incorporates input from the public, industry, tribal representatives, and other stakeholders, BLM says. It also describes the proposed rule as consistent with steps that some states already have taken toward frac chemical disclosure. According to the department, the proposal would include appropriate protections for proprietary information and would require disclosure after fracturing operations are complete. It also contains measures that improve assurances on well-bore integrity to verify frac fluids are not escaping and confirm that oil and gas operators have water management plans to handle flow-back fluids. “As we continue to offer millions of acres of America’s public lands for oil and gas development, it is critical that the public have full confidence that the right safety and environmental protections are in place,” declares Interior Secretary Ken Salazar. “The proposed rule will modernize our management of well stimulation activities–including hydraulic fracturing–to make sure that fracturing operations conducted on public and Indian lands follow common-sense industry best practices.” BLM indicates the draft rule is consistent with goals Salazar first outlined in November 2010 during a forum on best practices for hydraulic fracturing on public lands. Citing what it says is an example of the proposed rule’s complementarity to some states’ regulatory activities, BLM says it is working closely with the Ground Water Protection Council and the Interstate Oil & Gas Compact Commission to integrate the proposal’s disclosure requirements through those groups’ FracFocus.org Internet program. Reactions Independent Petroleum Association of America President and Chief Executive Officer Barry Russell says the proposed rule would complicate independent operators’ already steep challenges with obtaining permits to develop federal lands. “BLM’s proposed regulations, which would mandate one-size-fits-all regulations on well construction and hydraulic fracturing on these lands, are redundant,” he holds. “They undoubtedly will insert an unnecessary layer of rigidity into the permitting and development process.” Nevertheless, the association also praises the BLM for writing a rule that integrates the Web-based chemical registry site. IPAA believes that the decision to utilize FracFocus.org is the appropriate choice, Russell says, adding, “But the administration should recognize state success throughout the regulatory process and rely on it.” America’s Natural Gas Alliance also applauds the BLM for recognizing FracFocus, but raises concerns about duplicative or conflicting reporting requirements. ANGA Executive Vice President Tom Amontree questions the impetus for the proposed rule and suggests the BLM does not seem to fully appreciate states’ significant regulatory supervision. “State regulatory bodies have proven repeatedly they have the understanding of their state’s own unique geologic conditions, the onthe-ground expertise needed to oversee this important work, and most importantly, the ability to respond to rapid change,” he asserts. Cautions against regulatory redundancy come from the Western Energy Alliance as well, which laments a further disadvantage for public and tribal lands that the group says will divert jobs, revenue and economic activity away from Western states. While states average 30 days to process drilling permits, WEA says, BLM takes 298 days. WEA Vice President of Government and Public Affairs Kathleen Sgamma asserts that the government’s economic analysis is inadequate. “BLM claims to derive benefits of $12 million-$50 million from reduced risk, yet since states already are ensuring safety and there have been no incidents on public lands, those benefits are overstated while the costs are grossly underestimated. WEA estimates the costs will be about $127.2 million annually, and could range as high as $175.7 million. Since that exceeds the $100 million threshold for a major rule, we believe BLM needs to slow down and do a full economic analysis,” Sgamma says. American Petroleum Institute Upstream Director Erik Milito acknowledges the draft rule seems to incorporate some industry input, but also emphasizes that if new federal fracturing rules are to avoid needless bureaucratic red tape, they must reflect the history of successful state-led oversight. “While it appears constructive changes have been made, we still are reviewing the new proposal to see how the agency addresses the concerns we have raised,” he says. Published reports quote state officials telling a congressional hearing that the proposed rule seems an effort to reinvent the wheel. “There is no need for the federal government to step in and insert itself into a process that is working well,” holds Kathleen Clarke, director of the Utah Office of Public Land Policy Coordination. The Institute for Energy Research observes that fossil fuel production on federal lands stands at a nine-year low, and that the BLM’s proposal is one more unnecessary item the Obama administration has added to oil and gas producers’ regulatory checklists. IER notes, “The federal government only leases 3 percent of public lands for energy development, and what is available for leasing is so fraught with regulatory red tape that energy producers look instead
JUNE 2012 171


http://www.FracFocus.org http://www.FracFocus.org http://www.FracFocus.org http://www.FracFocus.org

American Oil and Gas Reporter - June 2012

Table of Contents for the Digital Edition of American Oil and Gas Reporter - June 2012

American Oil and Gas Reporter - June 2012
Contents
Reports
Calendar
Oil & Gas Counts
State Legislative
Industry Digest
Natural Gas NSPS Affects a Variety of Equipment
Federal Legislation
SPCC
EPA
Keystone XL
Tech Connections
Washington Watch
Anadarko Finds World-Class Reservoirs in Deepwater Mozambique
Variety of Projects Have Permian Basin Hopping
Infrastructure Bottlenecks Easing in Permian Region
Completion Design Optimizes Yeso-San Andres Oil Wells
Cover Story
Beaver Creek CO2 Flood Boosts Madison Production
Study Evaluates Low-Salinity Waterfloods
Variable Speed Drives Coming of Age
Activity Spurring Artificial Lift Innovations
Project Shows STMZ’s Viability for Lower Tertiary Completions
ICDs, Modeling Improve Horizontal Shelf Well Completion
Intelligent Gas Lift Maximizes Production, Recovery
KOGA
CIPA
TOGA
TAEP
Frac Rules
Marcellus Regs
Conventions
The American Well Servicing Directory, Summer 2012
Industry Focus
Classified Advertising
Advertisers Index
American Oil and Gas Reporter - June 2012 - American Oil and Gas Reporter - June 2012
American Oil and Gas Reporter - June 2012 - Cover2
American Oil and Gas Reporter - June 2012 - Contents
American Oil and Gas Reporter - June 2012 - Reports
American Oil and Gas Reporter - June 2012 - 5
American Oil and Gas Reporter - June 2012 - 6
American Oil and Gas Reporter - June 2012 - 7
American Oil and Gas Reporter - June 2012 - Calendar
American Oil and Gas Reporter - June 2012 - 9
American Oil and Gas Reporter - June 2012 - 10
American Oil and Gas Reporter - June 2012 - 11
American Oil and Gas Reporter - June 2012 - 12
American Oil and Gas Reporter - June 2012 - 13
American Oil and Gas Reporter - June 2012 - Oil & Gas Counts
American Oil and Gas Reporter - June 2012 - 15
American Oil and Gas Reporter - June 2012 - Industry Digest
American Oil and Gas Reporter - June 2012 - 17
American Oil and Gas Reporter - June 2012 - 18
American Oil and Gas Reporter - June 2012 - 19
American Oil and Gas Reporter - June 2012 - 20
American Oil and Gas Reporter - June 2012 - 21
American Oil and Gas Reporter - June 2012 - 22
American Oil and Gas Reporter - June 2012 - 23
American Oil and Gas Reporter - June 2012 - Natural Gas NSPS Affects a Variety of Equipment
American Oil and Gas Reporter - June 2012 - 25
American Oil and Gas Reporter - June 2012 - 26
American Oil and Gas Reporter - June 2012 - 27
American Oil and Gas Reporter - June 2012 - Federal Legislation
American Oil and Gas Reporter - June 2012 - 29
American Oil and Gas Reporter - June 2012 - 30
American Oil and Gas Reporter - June 2012 - 31
American Oil and Gas Reporter - June 2012 - SPCC
American Oil and Gas Reporter - June 2012 - 33
American Oil and Gas Reporter - June 2012 - Keystone XL
American Oil and Gas Reporter - June 2012 - 35
American Oil and Gas Reporter - June 2012 - 36
American Oil and Gas Reporter - June 2012 - Tech Connections
American Oil and Gas Reporter - June 2012 - 38
American Oil and Gas Reporter - June 2012 - Washington Watch
American Oil and Gas Reporter - June 2012 - Anadarko Finds World-Class Reservoirs in Deepwater Mozambique
American Oil and Gas Reporter - June 2012 - 41
American Oil and Gas Reporter - June 2012 - 42
American Oil and Gas Reporter - June 2012 - 43
American Oil and Gas Reporter - June 2012 - 44
American Oil and Gas Reporter - June 2012 - 45
American Oil and Gas Reporter - June 2012 - 46
American Oil and Gas Reporter - June 2012 - 47
American Oil and Gas Reporter - June 2012 - 48
American Oil and Gas Reporter - June 2012 - 49
American Oil and Gas Reporter - June 2012 - Variety of Projects Have Permian Basin Hopping
American Oil and Gas Reporter - June 2012 - 51
American Oil and Gas Reporter - June 2012 - 52
American Oil and Gas Reporter - June 2012 - 53
American Oil and Gas Reporter - June 2012 - 54
American Oil and Gas Reporter - June 2012 - 55
American Oil and Gas Reporter - June 2012 - 56
American Oil and Gas Reporter - June 2012 - 57
American Oil and Gas Reporter - June 2012 - 58
American Oil and Gas Reporter - June 2012 - 59
American Oil and Gas Reporter - June 2012 - 60
American Oil and Gas Reporter - June 2012 - 61
American Oil and Gas Reporter - June 2012 - 62
American Oil and Gas Reporter - June 2012 - 63
American Oil and Gas Reporter - June 2012 - Infrastructure Bottlenecks Easing in Permian Region
American Oil and Gas Reporter - June 2012 - 65
American Oil and Gas Reporter - June 2012 - 66
American Oil and Gas Reporter - June 2012 - 67
American Oil and Gas Reporter - June 2012 - 68
American Oil and Gas Reporter - June 2012 - 69
American Oil and Gas Reporter - June 2012 - 70
American Oil and Gas Reporter - June 2012 - 71
American Oil and Gas Reporter - June 2012 - Completion Design Optimizes Yeso-San Andres Oil Wells
American Oil and Gas Reporter - June 2012 - 73
American Oil and Gas Reporter - June 2012 - 74
American Oil and Gas Reporter - June 2012 - 75
American Oil and Gas Reporter - June 2012 - 76
American Oil and Gas Reporter - June 2012 - 77
American Oil and Gas Reporter - June 2012 - 78
American Oil and Gas Reporter - June 2012 - 79
American Oil and Gas Reporter - June 2012 - 80
American Oil and Gas Reporter - June 2012 - 81
American Oil and Gas Reporter - June 2012 - Cover Story
American Oil and Gas Reporter - June 2012 - 83
American Oil and Gas Reporter - June 2012 - 84
American Oil and Gas Reporter - June 2012 - 85
American Oil and Gas Reporter - June 2012 - 86
American Oil and Gas Reporter - June 2012 - 87
American Oil and Gas Reporter - June 2012 - 88
American Oil and Gas Reporter - June 2012 - 89
American Oil and Gas Reporter - June 2012 - 90
American Oil and Gas Reporter - June 2012 - 91
American Oil and Gas Reporter - June 2012 - Beaver Creek CO2 Flood Boosts Madison Production
American Oil and Gas Reporter - June 2012 - 93
American Oil and Gas Reporter - June 2012 - 94
American Oil and Gas Reporter - June 2012 - 95
American Oil and Gas Reporter - June 2012 - 96
American Oil and Gas Reporter - June 2012 - 97
American Oil and Gas Reporter - June 2012 - 98
American Oil and Gas Reporter - June 2012 - 99
American Oil and Gas Reporter - June 2012 - Study Evaluates Low-Salinity Waterfloods
American Oil and Gas Reporter - June 2012 - 101
American Oil and Gas Reporter - June 2012 - 102
American Oil and Gas Reporter - June 2012 - 103
American Oil and Gas Reporter - June 2012 - Variable Speed Drives Coming of Age
American Oil and Gas Reporter - June 2012 - 105
American Oil and Gas Reporter - June 2012 - 106
American Oil and Gas Reporter - June 2012 - 107
American Oil and Gas Reporter - June 2012 - Activity Spurring Artificial Lift Innovations
American Oil and Gas Reporter - June 2012 - 109
American Oil and Gas Reporter - June 2012 - 110
American Oil and Gas Reporter - June 2012 - 111
American Oil and Gas Reporter - June 2012 - 112
American Oil and Gas Reporter - June 2012 - 113
American Oil and Gas Reporter - June 2012 - 114
American Oil and Gas Reporter - June 2012 - 115
American Oil and Gas Reporter - June 2012 - 116
American Oil and Gas Reporter - June 2012 - 117
American Oil and Gas Reporter - June 2012 - Project Shows STMZ’s Viability for Lower Tertiary Completions
American Oil and Gas Reporter - June 2012 - 119
American Oil and Gas Reporter - June 2012 - 120
American Oil and Gas Reporter - June 2012 - 121
American Oil and Gas Reporter - June 2012 - 122
American Oil and Gas Reporter - June 2012 - 123
American Oil and Gas Reporter - June 2012 - 124
American Oil and Gas Reporter - June 2012 - 125
American Oil and Gas Reporter - June 2012 - 126
American Oil and Gas Reporter - June 2012 - 127
American Oil and Gas Reporter - June 2012 - 128
American Oil and Gas Reporter - June 2012 - 129
American Oil and Gas Reporter - June 2012 - 130
American Oil and Gas Reporter - June 2012 - ICDs, Modeling Improve Horizontal Shelf Well Completion
American Oil and Gas Reporter - June 2012 - 132
American Oil and Gas Reporter - June 2012 - 133
American Oil and Gas Reporter - June 2012 - 134
American Oil and Gas Reporter - June 2012 - 135
American Oil and Gas Reporter - June 2012 - 136
American Oil and Gas Reporter - June 2012 - 137
American Oil and Gas Reporter - June 2012 - 138
American Oil and Gas Reporter - June 2012 - 139
American Oil and Gas Reporter - June 2012 - 140
American Oil and Gas Reporter - June 2012 - Intelligent Gas Lift Maximizes Production, Recovery
American Oil and Gas Reporter - June 2012 - 142
American Oil and Gas Reporter - June 2012 - 143
American Oil and Gas Reporter - June 2012 - 144
American Oil and Gas Reporter - June 2012 - 145
American Oil and Gas Reporter - June 2012 - 146
American Oil and Gas Reporter - June 2012 - 147
American Oil and Gas Reporter - June 2012 - 148
American Oil and Gas Reporter - June 2012 - KOGA
American Oil and Gas Reporter - June 2012 - 150
American Oil and Gas Reporter - June 2012 - 151
American Oil and Gas Reporter - June 2012 - CIPA
American Oil and Gas Reporter - June 2012 - 153
American Oil and Gas Reporter - June 2012 - 154
American Oil and Gas Reporter - June 2012 - 155
American Oil and Gas Reporter - June 2012 - TOGA
American Oil and Gas Reporter - June 2012 - 157
American Oil and Gas Reporter - June 2012 - 158
American Oil and Gas Reporter - June 2012 - 159
American Oil and Gas Reporter - June 2012 - 160
American Oil and Gas Reporter - June 2012 - 161
American Oil and Gas Reporter - June 2012 - 162
American Oil and Gas Reporter - June 2012 - 163
American Oil and Gas Reporter - June 2012 - TAEP
American Oil and Gas Reporter - June 2012 - 165
American Oil and Gas Reporter - June 2012 - 166
American Oil and Gas Reporter - June 2012 - 167
American Oil and Gas Reporter - June 2012 - 168
American Oil and Gas Reporter - June 2012 - 169
American Oil and Gas Reporter - June 2012 - 170
American Oil and Gas Reporter - June 2012 - Frac Rules
American Oil and Gas Reporter - June 2012 - Marcellus Regs
American Oil and Gas Reporter - June 2012 - 173
American Oil and Gas Reporter - June 2012 - Conventions
American Oil and Gas Reporter - June 2012 - The American Well Servicing Directory, Summer 2012
American Oil and Gas Reporter - June 2012 - 176
American Oil and Gas Reporter - June 2012 - 177
American Oil and Gas Reporter - June 2012 - 178
American Oil and Gas Reporter - June 2012 - 179
American Oil and Gas Reporter - June 2012 - 180
American Oil and Gas Reporter - June 2012 - 181
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American Oil and Gas Reporter - June 2012 - 199
American Oil and Gas Reporter - June 2012 - 200
American Oil and Gas Reporter - June 2012 - 201
American Oil and Gas Reporter - June 2012 - 202
American Oil and Gas Reporter - June 2012 - Industry Focus
American Oil and Gas Reporter - June 2012 - 204
American Oil and Gas Reporter - June 2012 - 205
American Oil and Gas Reporter - June 2012 - 206
American Oil and Gas Reporter - June 2012 - 207
American Oil and Gas Reporter - June 2012 - 208
American Oil and Gas Reporter - June 2012 - Classified Advertising
American Oil and Gas Reporter - June 2012 - Advertisers Index
American Oil and Gas Reporter - June 2012 - Cover3
American Oil and Gas Reporter - June 2012 - Cover4
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