Trust is at the heart of much of the controversy over Colorado Oil and Gas Conservation Commission (COGCC) rules related to fracking fluids used to bring oil and gas to the surface out of shale 8000 feet under the earth's surface. On one side, oil and gas drillers want to preserve their fluid mix trade secrets. On the other, public interest groups want to know what's in the chemical mix for public safety.

The COGCC will navigate these fault lines revising its chemical disclosure rules. The proposed revisions will require, in short:

• Vendor and service provider disclosure of each "hydraulic fracturing additive" used in the fracking fluid, including the trade name and intended use. Disclosure must occur within 60 days of the end of the fracking or no later than 120 days from the beginning of the fracking.
• Disclosure of each chemical intentionally added to the base fluid.
• Maximum concentrations, in percent of mass, of each chemical.
• Notification that certain chemicals in the fracking fluid are "trade secrets," which do not have to be disclosed other than the chemical family associated with the chemical.
• A form containing contact information in the case of trade secrets to ensure proper treatment in emergencies.
• A database that searches for chemicals by geographic area, ingredient, chemical abstract service number, time period, and operator.

The oil and gas industry argues that chemical additives in fracking fluid represent only 1% of the total fluid, which consists of approximately 90% water and 9% sand. The additives swim in 16 acre feet of water, or approximately 5-6 million gallons of water and sand. That figures to roughly 50,000 gallons of additives that are trucked to the well site, mixed, pumped down to the shale, and then ooze back up with the released oil or gas.

When the goop returns to the surface, it's contained in ponds for evaporation or collected and trucked to waste disposal sites.

COGCC sees fracking fluid disclosure as a tertiary issue related to public safety. From a practical perspective, it believes, proper well construction and maintaining safety in the fracking process is more important. The main reason for rule revision, states the COGCC, is that "Members of the public have expressed interest in learning the identity of chemicals in hydraulic fracturing fluid."

The Western Colorado Congress sees the COGCC attitude as "dismissive of the potential real health effects of exposure to hydraulic fracturing fluids." The Congress believes "the draft rule is insufficient to protect the public living in regions being drilled for oil and gas."

Drillers such as Andarko and Noble Energy claim that disclosure of trade secret chemicals will reduce drilling in Colorado as companies protect their products. They also state that additional disclosure will be expensive for the state, as staff time will be diverted to disclosure rather than well monitoring.

Public interest groups argue that disclosure is already legislated in other states, such as Texas, Montana, and Wyoming. They also contend that fracking fluid notification should occur before the wells are fracked rather than 60 days after.

These issues will become more contentious as drilling creeps ever closer to residential neighborhoods and water supply sources. Home rule cities are looking for ways to prevent drilling within city limits. Rural areas and unincorporated spaces may have little redress to prevent drilling.

Already, the State Land Board has sold millions of acres of mineral rights to oil and gas companies, and the federal government, primarily through the Bureau of Land Management, has sold additional millions.

Drillers have five to ten years to make progress on wells, or they give up on their rights. That time frame explains some of the drilling buildup, especially in eastern Colorado. The drilling will only increase as more lands go under lease. Recent Land Board auctions involved rights from Larimer County down to southeast Colorado, and as far west as Park County, home to the Denver water supply.

COGCC will set its rules on Monday, December 12, in Greeley.

This post was published on December 7, 2011. Permalink »