Cox Colvin & Associates, Inc.

Thursday, November 29, 2012

GAO Reports: Regulatory Challenges Associated with Unconventional Oil and Gas Development

At the request of the Senate Environmental Panel, the Government Accounting Office (GAO) prepared two studies on the emerging North American shale oil and gas market. The reports, which are well researched and well written, present a good overview on the current status of the industry. Also included is a review of regulatory frameworks and challenges faced in six states, including Colorado, North Dakota, Ohio, Pennsylvania, Texas, and Wyoming.

A general lack of baseline groundwater data was noted as a source of the uncertainty as to how, or if, these new development techniques may impact drinking water supplies. This sense of a general lack of baseline data is mirrored by US EPA, which has called for a "Request for Information to Inform Hydraulic Fracturing Research Related to Drinking Water Resources" published in the November 9, 2012 Federal Register.
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