Colorado Politics

BLM seeks to rescind fracking rule ahead of Denver federal court case

Reactions are predictably split between environmental and oil and gas interests over a recent plan by federal regulators to rescind an Obama-era fracking rule.

The Bureau of Land Management’s 2015 rule sought to limit hydraulic fracturing on public lands. The rule was never in effect due to pending litigation, which continues in Denver on Thursday.

The plan to withdraw and rewrite the rule fits in with President Trump’s rhetoric around “reducing the burden of federal regulations that hinder economic growth and energy development,” according to a BLM news release announcing the proposal.

“Our proposal to rescind the 2015 final rule responds to the president’s call to reduce regulatory burdens, foster job growth, and serve the energy needs of America’s families, small businesses, and manufacturers,” Katharine S. MacGregor, acting assistant secretary for land and minerals management, said in a statement.

The goal is to create “flexibility” to regulate fracking.

Interior Secretary Ryan Zinke directed the BLM to review the 2015 rule with the goal of “promoting energy independence.” The BLM found that all of the 32 states with federal oil and gas leases have regulations to address hydraulic fracturing.

The review also found that the industry is more frequently disclosing chemicals in fluids used for fracking, something Colorado has led the way on.

The 2015 rule calls for drillers to disclose what chemicals are used in fracking fluids and to perform tests on the integrity of wells before drilling can begin.

The BLM estimates that about 90 percent of the approximately 2,800 production wells drilled in 2013 on federal and Indian lands used hydraulic fracturing techniques to stimulate production. During the past 15 years, there have been significant technological advances in horizontal drilling, which has led to a fracking boom.

Public comments on the proposed rescission are due to the BLM by Sept. 25.

Colorado, along with other Western states, challenged the rule in court. The plan to rescind the rule comes ahead of a Denver federal court case on Thursday before the 10th Circuit Court of Appeals. After a district court set aside the rule in 2016, BLM and environmental groups appealed to the 10th Circuit in late 2016.

“This is another cynical move by the Trump administration that sacrifices our public lands and public safety as a favor to the oil and gas industry,” said Michael Freeman, an attorney for Earthjustice who is representing environmental groups in the case.

“The timing of this proposal is obviously linked to this week’s oral argument. It is part of the administration’s effort to circumvent the law by asking to stay this appeal while leaving the lower court ruling in effect.”

But Mark Barron, a Denver-based BakerHostetler attorney representing industry groups in the pending litigation, said the agency’s proposal is “consistent with what the industry petitioners have been saying all along: that the 2015 version of the rule did not provide any incremental environmental protection and was just a meaningless imposition of costs on industry,” according to a report by Western Wire, which reports favorable oil and gas news.


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