Texas passes hydrualic fracturing law as oil and gas industry cheers
July 15, 2011
By Phaedra Friend Troy
Texas Governor Rick Perry signed into law Friday a bill requiring companies drilling and developing the vast shale plays across the state to publicly disclose hydraulic fracturing components.
Home to the prolific Eagle Ford Shale, Haynesville Shale, Barnett Shale and Permian Basin, Texas is the first state in the Union to require companies to make ingredients of the hydraulic fracturing fluids public.
Hydraulic fracturing is a well completion method that uses water, sand and chemicals to crack tight formations of oil and gas, allowing hydrocarbons to be produced more easily. The law requires full disclose of the chemical composition of the fracking fluids on a well-by-well basis, while protecting confidential business information, in an effort to establish a clear model for other states to follow.
“My hope is that this bill takes some of the mystery out of the fracturing process,” said Texas House Committee on Energy Resources Chair Rep. Jim Keffer. “The oil and gas industry is vital to our economy, and the use of this technology is an important tool to increase domestic energy production. I believe the industry can coexist with the people of Texas, and this bill strikes a balance between creating a sustainable market for business and ensuring the health and safety of the public.”
House Bill 3328 was passed in the 82nd Session of the Texas Legislature at the end of May, and Gov. Perry signed the hydraulic fracturing bill into law on July 15.
The American Natural Gas Alliance (ANGA), as well as various oil and gas operators have publicly pledged their support of the new hydraulic fracturing legislation.
"The natural gas community's support of HB 3328 is a firm demonstration of our commitment to safe and responsible development and to the strong state-led oversight that exists to help ensure that natural gas development continues to occur in harmony with the needs of the local communities where we operate," said Regina Hopper, president of ANGA.
The industry contends that the hydraulic fracturing public disclosure law show that states and oil and gas firms can work together to increase public confidence in the safe development of domestic resources.
"Hydraulic fracturing has been used by the industry to unlock resources for more than 50 years," said G. Steven Farris, chairman and CEO of US independent Apache Corporation (NYSE:APA). "When done safely, it enables the nation to enjoy the economic and environmental benefits that come from greater use of the vast natural gas resources in shale formations found across Texas and the nation."
In addition to the hydraulic fracturing disclosure law, Gov. Perry signed a bill to encourage the development of natural gas-fueled transportation infrastructure in the "Texas Triangle," linking Houston, San Antonio, Austin and the Dallas-Fort Worth metroplex.