Regulations

OSHA Proposes New Silica Exposure Rule

Source: Sensear | 27 September 2013

The Occupational Safety and Health Administration (OSHA) in the United States recently released a proposed rule, the Notice of Proposed Rulemaking (NPRM) for Occupational Exposure to Respirable Crystalline Silica.

OSHA proposes reducing the permissible exposure limits for respirable crystalline silica to 50 μg/m3 or below. Among the suggested solutions are wearing respiratory equipment to protect the worker from exposure. OSHA has taken into consideration the difficulty this requirement brings to effective communications within certain industries. An excerpt from the proposed rule states: “Safety problems created by respirators that limit vision and communication must also be considered. In some difficult or dangerous jobs, effective vision or communication is vital. Voice transmission through a respirator can be difficult and fatiguing.”

 

California Legislature Sends Hydraulic Fracturing Bill To Governor’s Desk

Source: Bingham McCutchen via Mondaq | 17 September 2013

On 11 September 2013, California moved significantly closer to adopting a statewide regulatory framework for hydraulic fracturing operations after both the State Assembly and the Senate voted to approve Senate Bill 4. The bill requires energy companies to obtain state hydraulic fracturing permits, provide notice of planned hydraulic fracturing to nearby property owners, disclose chemicals used during operations (with certain trade secret exceptions), and monitor air and groundwater near hydraulic fracturing wells. The legislation now proceeds to the governor, who is expected to sign the bill into law.

Public Comment Period for Proposed Federal Hydraulic Fracturing Regulations Draws to a Close

Source: BakerHostetler via Mondaq | 3 September 2013

The public comment period for new federal regulations regarding hydraulic fracturing on public lands—the first substantive update to the rules in three decades—ended on 30 August with more than 1 million submissions from both critics and advocates evaluating the proposed rules. The proposed rules have garnered substantial attention, with demonstrators sporting both pro- and anti-fracturing messages turning out in force to protest President Obama’s recent appearance in New York. President Obama continued to express support for increased domestic production of natural gas, touting it as a replacement to dirtier fuels such as coal, although natural gas production on federal lands has fallen from 5,376 Bcf in 2009 to 3,724 Bcf in 2012.

Recent Accidents Highlight Shallow Water Dangers, Departing Regulator Says

Source: Fuel Fix | 3 September 2013

Recent accidents at offshore oil and gas facilities highlight the risks of producing energy on the shallow continental shelf as well as the Gulf of Mexico’s deepest frontiers, said a departing top US regulator.

The incidents include the evacuation of 44 workers after a natural gas well exploded in July and a production platform fire last November that killed three workers from the Philippines. Both episodes happened at older, established facilities in shallow waters—unlike the 2010 Deepwater Horizon disaster that was sparked by the blowout of an exploratory well located under a mile of water.

The accidents are a fresh reminder that offshore regulators and the oil industry need to remain vigilant both close to shore and in deep water, said James Watson as he ends his 1-year stint directing the Bureau of Safety and Environmental Enforcement.

Wyoming Requests Exemption From Federal Hydraulic Fracturing Rules

Source: BakerHostetler via Mondaq | 29 August 2013

On 19 August, Wyoming Sens. Michael B. Enzi and John Barraso as well as US Rep. Cynthia M. Lummis, wrote to Secretary of the Interior Sally Jewell requesting that the Department of the Interior exempt Wyoming, as well as other states currently regulating hydraulic fracturing, from the Bureau of Land Management’s (BLM) final rule concerning Oil and Gas: Hydraulic Fracturing on Federal and Indian Lands.

As background, BLM had previously published a proposed rule applying to hydraulic fracturing in the Federal Register dated 24 May 2013. The proposed rule purports:

“[T]o modernize BLM’s management of hydraulic fracturing operations by ensuring that hydraulic fracturing operations conducted on the public mineral estate … follow certain best practices, including: (1) The public disclosure of chemicals used in hydraulic fracturing operations on federal and Indian lands; (2) confirmation that wells used in fracturing operations meet appropriate construction standards; and (3) a requirement that operators put appropriate plans in place for managing flowback waters from fracturing operations.”

BSEE Proposes Stricter Rules for Offshore Production Systems

Source: Fuel Fix | 22 August 2013

The Obama administration proposed a rule to tighten standards for oil and gas production systems used offshore in a bid to keep pace with the industry’s march into deeper waters and more challenging terrain.

The 149-page proposal also would require more rigorous cradle-to-grave assessments of critical safety and pollution prevention equipment, such as foam firefighting systems and electronic emergency shutdown devices.

The measure has been in the works for years, as offshore regulators sought to update standards that haven’t been significantly revised since they were first published in 1988.

“Since that time, much of the oil and gas production on the outer continental shelf has moved into deeper waters, and the regulations have not kept pace with the technological advancements,” the Bureau of Safety and Environmental Enforcement said in the proposal.

 

Former Coast Guard Vice Admiral Becomes New BSEE Director

Source: US Department of the Interior | 15 August 2013
Salerno

Salerno

Secretary of the Interior Sally Jewell named former Vice Admiral Brian Salerno as the Director of the Bureau of Safety and Environmental Enforcement (BSEE), which provides federal oversight for oil and gas operations on the Outer Continental Shelf. Salerno, who retired from the US Coast Guard last year as its deputy commandant for operations, will assume his new position on August 26.

 

“Brian Salerno is an accomplished professional who brings proven expertise in maritime safety and emergency response management to the job,” Jewell said. “As we continue to strengthen the nation’s program to ensure safe and responsible offshore oil and gas exploration and development, I believe Brian has the experience, vision, and the leadership to be a great asset to the bureau, the department and the nation.”

Salerno will serve as the third director in BSEE’s history, following the departure of Jim Watson at the end of the month.

Understanding the Path for UK Shale Exploration

The UK government has recently published further details on a package of tax, planning, and community benefits to help kick-start shale gas exploration in the UK. These measures will be welcomed by those in (or looking to enter) the industry because they are generally favorable and increase the levels of clarity and certainty—prerequisites for an industry that relies on long-term investment.

The relevant documents published last week are a government consultation regarding a specific tax regime for shale gas and guidelines to local authorities for considering planning requests for onshore oil and gas exploration and extraction.

These measures have followed soon after studies showing that the UK’s shale gas resources are much larger than previously anticipated, and can be seen as the next step in developing a thriving shale gas industry in the UK.

 

GOP Advances Bill To Block Federal Fracturing Rules

Source: Fuel Fix | 1 August 2013

The House Natural Resources Committee on 31 July approved legislation that effectively would block the federal government from regulating the hydraulic fracturing process that is unlocking previously unrecoverable supplies of gas and oil.

On a mostly party-line vote of 23-15, the panel sent the measure to the full House of Representatives, which is expected to debate the legislation later this year. Rep. Jim Costa, D-Calif., bucked Democratic colleagues in supporting the bill; Rep. Jon Runyan, R-N.J., broke with Republicans to vote against it.

The measure would handcuff the Interior Department and other federal agencies just as the Bureau of Land Management finalizes new mandates for the design of oil and gas wells on public lands. The proposed rule—which would apply only on the sliver of territory managed by the Interior Department—also would force companies to disclose the chemicals they pump underground and would make drillers adopt plans for managing waters at wells.

 

Watson Plans To Resign as Director of BSEE

Source: Rigzone | 9 July 2013

Bureau of Environmental Safety and Enforcement (BSEE) Director James A. Watson will resign from BSEE and join the maritime classification society ABS on 2 September as president and chief operating officer of its Americas division.

Watson will replace Robert Gilman, who will move to the ABS Group of Companies as senior vice president of technical inspection services within the ABS affiliated company, Houston-based ABS said on 9 July.

In his new role at ABS, Watson will oversee activity in North, South, and Central America and the Caribbean. He will be based at the Division’s headquarters in Houston.

“Director Watson has served with distinction and has helped implement the most aggressive and comprehensive offshore oil and gas regulatory reforms in the nation’s history,” said Secretary of the Interior Sally Jewell.

Australia Adds Water Trigger to Environmental Act

Source: K&L Gates via Mondaq | 9 July 2013

The “water trigger” amendment to Australia’s Environment Protection and Biodiversity Conservation Act 1999 was recently approved by the senate and has become law.

The water trigger adds another layer of analysis and approvals to coal seam gas and large coal mining developments.

To summarise, if a coal seam gas or large coal mining development will have, or is likely to have, a significant effect on a water resource, the developments will now require federal assessment and approval. The amendment responds to community concerns about insufficient state water resource regulation. The commonwealth is given the ability to ensure the protection of water resources and impose water-specific conditions on coal seam gas and large coal mining developments.

In addition to affecting new developments, the amendment may affect existing developments. Existing developments being assessed under the act may be required to provide additional information and seek approval under the water trigger.

Illinois Governor Signs Hydraulic Fracturing Legislation

Source: Reed Smith via Mondaq | 2 July 2013

Claiming that the legislation will give the state the strongest environmental standards for hydraulic fracturing operations in the United States, Illinois Gov. Pat Quinn signed into law on 17 June a bill regulating the practice. The Hydraulic Fracturing Regulatory Act introduces the first comprehensive controls on hydraulic fracturing in the state. Among other things, it requires oil and gas drillers to disclose which chemicals they are using both before and after fracturing operations and requires water sampling of pre- and post-fracturing groundwater with operators liable for any ensuing water pollution. The New Albany shale formation in southern Illinois, believed to contain billions of cubic feet of natural gas, is the focal point of the now settled fracking debate in Illinois.