The Trump administration is making good on its commitment to revoke or reform federal regulations impacting energy development with significant actions performed or underway regarding hydraulic fracturing, venting and flaring climate change, and the Clean Power Plan. At the same time, as cabinet level and other political appointments are filled, interagency efforts are underway to establish a more cohesive energy and environmental policy. At the heart of this effort is regulatory reform. It is widely believed that broader steps to achieve regulatory reform will coincide with infrastructure development activities. As federal agencies look to permit new infrastructure, reforms will be introduced to create more efficient, cost-benefit/science-based regulations. Industry best practices will be a critical component in developing these regulations.
Congress also is focused on regulatory reform, infrastructure development and tax reform. While congressional actions should complement administrative actions, political infighting highlighted by Congress’ inability thus far to reform the Affordable Care Act threaten to derail these efforts. Soon it will be determined whether Congress and the administration can work constructively to deliver meaningful reforms.
Federal actions
President Trump signs Energy Independence Executive Order: On March 28 President Trump signed an omnibus executive order that included a directive to the Department of Interior (DOI) to reconsider rules restricting methane emissions from oil and gas sites. A House joint resolution to overturn the Bureau of Land Management’s (BLM) venting and flaring rule is currently stalled in the Senate.
Administration announces plan to rescind BLM hydraulic fracturing rule: In mid-March the Justice Department requested the 10th U.S. Circuit Court of Appeals to delay oral arguments in the appeal over the fracturing regulation pending the administration’s work to rescind the rule. At issue in the appeal is the district court’s ruling that the DOI does not have authority to regulate fracturing.
State/local actions
Colorado
■ The Broomfield City Council voted to postpone a vote on a proposed hydraulic fracturing moratorium indefinitely. The city will begin work on a plan to determine siting of oil and gas wells.
■ With the current moratorium on new drilling permits set to expire on May 1, Boulder County commissioners recently approved stringent rules for oil and gas sites including land use restrictions and “disruption payments” for residents near drillsites.
■ House Bill 17-1256 by Rep. Mike Foote (D-Boulder County) requires future oil and gas wells to be at least 305 m (1,000 ft) away from any public or private schools’ property lines.
Maryland
■ On March 27 the Maryland General Assembly gave final passage to the state’s ban on hydraulic fracturing. The measure will be forwarded to Gov. Larry Hogan for his expected signature.
Texas
■ Railroad Commission Chair Christi Craddick has requested funding from the Texas Legislature to build an online database to track compliance as well as add new inspectors for energy production sites and pipelines.
■ House Bill 3403 by Rep. Terry Canales (D-Edinburg) allows municipalities to regulate new oil and gas operations located within 457 m (1,500 ft) of childcare facilities and schools.
Recommended Reading
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