Hydraulic fracturing, or “fracking” as it is commonly known, involves injecting fluids down a well in order to access previously untapped sources of hydrocarbons. While this procedure is not new, it has recently become instrumental in the exploitation of shale gas which, in turn, has led to large increases in U.S. production and reserves. As it has grown in popularity, it has also courted controversy as it often calls for the use of chemicals or diesel fuel. Concerns have been raised by landowners and environmental groups about water pollution, air pollution, worker protections and even earthquakes.

Federal Regulation

In 2005, Congress excluded most fracking activities from federal regulation with the Energy Policy Act. Since that time, there have been calls by many regulatory agencies, environmental groups and landowners to provide a federal regulatory framework for this activity. Industry leaders have argued that federal regulation has been made unnecessary because of currently existing state law. Nevertheless, the Environmental Protection Agency (EPA) is currently conducting a two-year study into the possible adverse effects of fracking. While the report will be issued sometime in late 2012, some conclusions may not appear until 2014. Therefore, it should be unlikely that the federal government will move to regulate the industry anytime in the near future. However, the current administration has shown a propensity for taking action before all predicates have been addressed...

Article Authored by McAfee & Taft Attorney: Jared Burden.