Wyoming Approves Hydraulic Fracturing Rules

We all expected it to happen at some point and now it has in Wyoming. The state's Oil and Gas Conservation Commission approved new rules surrounding drilling practices. They require oil and gas companies to disclose the chemicals used in the hydraulic fracturing aka fracking process. Wyoming may be the first, or one of the first, states to approve drilling rules.

Hydraulic fracturing involves pumping lots of water with sand and chemicals to crack the underground rock. Because of the chemicals involved, some environment groups and local citizens became concerned about the effects of the chemicals on public drinking water.

Natural Gas Companies and Environmental Agencies Respond

Oil and gas companies prefer not to share the details on the chemicals used in the fracking process mainly because of fears it will affect competitiveness. However, the approved rules state that any trade secrets in the companies' recipes will be protected in accordance to the Wyoming's open records laws.

Initial comments from oil and gas companies indicate agreement and understanding. However, some companies have said that hydraulic fracturing has been going on for years without any confirmed cases of chemicals spilling into groundwater. Environmentalists respond that the chemical information will help in the case of finding the source of pollution should the need ever come up.

Another rule requires that companies to list state-licensed water wells that are located within one-fourth of a mile from an oil or gas well.

Wyoming Activity and Companies

Royal Energy Resources, Inc. has held a three percent override royalty interest in almost 2000 mineral acres in Laramie County since 2009. EOG Resources, Inc. has recently received approval to drill a horizontal well in the Niobrara Formation of Laramie County.

Devon Energy has over 200,000 acres of leases in south-central Wyoming in the Washakie Basin with over 560 wells operating in Carbon and Sweetwater counties. In the Big Horn Basin located in northern Wyoming, Devon averages 220 barrels of oil and approximately eight million cubic feet of natural gas per day. The company has a natural gas plant in the Worland area.

In 2009, the oil and gas company produced over 100 million cubic feet of natural gas per day in Powder River Basin in northeast Wyoming. Powder River Basin contains one of the highest concentrations of hydrocarbons in the Rocky Mountains. Devon has 450 coalbed natural gas wells and almost 200 conventional oil wells in Powder River.

The Wind River Basin in central Wyoming is rich with limestone, sandstone, coal deposits, oil, natural gas and coalbed natural gas. This area may have undiscovered reserves including 2.4 trillion cubic feet of natural gas and 41 million barrels of oil.

Pinedale in southwestern Wyoming may see a lot of activity in the near future that would include the drilling of an estimated 800 oil and gas wells over its 200,000 acres. Companies interested in the property include EOG, ExxonMobil, Chevron and Wexpro. The project has attracted local attention as the Bureau of Land Management reports receiving over 1000 comments. Comments voice concerns over environment impacts and government regulators moving too slowly to approve the project.