Roth: Hey Congress, look to Oklahoma!
by Jim Roth | November 14th, 2011
Between the tornadoes, heavy rain and earthquakes, there certainly are a lot of different things going on in Oklahoma. None, however, could be as exciting as Oklahoma’s energy future.
Recently, I had the privilege of attending the Governor’s Energy Conference, where Gov. Mary Fallin outlined a bold plan for Oklahoma’s energy future. A critical part of the plan was supporting the increased production and utilization of natural gas, which accounts for 80 percent of Oklahoma’s energy impact. The governor supported the continued use of the process known as hydraulic fracturing, or fracking. This is a method that utilizes water and chemicals at high pressures to extract natural gas from once-unrecoverable formations and underground supply.
Like all forms of environmental extraction, there are risks. Members of Congress are beginning to pay more attention and are considering federal regulations. In fact, recently the Environment Protection Agency announced its final research plan for understanding the effects of hydraulic fracturing. Congress will be using this research to help craft and inform its own federal regulations. I am hopeful that Congress will look to the effective regulations already in practice by many states and local governments. I hope they will look to Oklahoma, a proven leader in effective oil and gas regulation.
The Oklahoma Corporation Commission regulates hydraulic fracturing in our state. The rules, OAC 165: 10-3-10b, for those of you taking notes, require inspections, reporting, investigation, and enforcement mechanisms. Plus, the rules forbid the pollution of fresh water, which has been a concern voiced by many who are new to the hydraulic fracturing process. In addition to permitting and construction of wells, the rules also address fluid management and disposal of waste used in the fracturing process.
Oklahoma’s regulations are smart because they work to protect Oklahomans from risks and promote quality and safe industry practice, and have done so for many decades.
The Shale Gas Subcommittee believes that states are getting it right. U.S. Secretary of Energy Steven Chu formed the subcommittee. The subcommittee told members of the U.S. Senate that they should look to states as they form federal regulations. States like New York, Montana, West Virginia, New Mexico and Texas have all added laws that increase the transparency of hydraulic fracturing. Fallin encouraged those attending the conference to also support transparency in industry practices and that is happening here.
The most recent estimates by the Department of Energy say that the recoverable barrels equivalent of shale gas is about 1.8 trillion. Compare that to Saudi Arabia’s current 2.6 trillion barrels of oil reserves. This is a resource that is absolutely essential to America’s energy independence and Oklahoma is a leader in securing that future.
This coming week, OCC Chairwoman Dana Murphy, also an accomplished oil and gas lawyer, will be testifying before Congress at the request of U.S. Rep. James Lankford. I’m excited that Oklahoma’s voice will be heard because when it comes to safe and responsible state-based regulation, which both protects our people and grows our economy, Oklahoma is a real leader and the nation should follow our example.
Jim Roth, a former Oklahoma corporation commissioner, is an attorney with Phillips Murrah P.C. in Oklahoma City, where his practice focuses on clean, green energy for Oklahoma.