Pace Land Use Law Center/Yale Center for Environmental Law

and PolicyDecember 6, 2013

Mark K. Boling

President

CONTROLLING THE LOCAL IMPACTS OF

HYDROFRACKING THROUGH SMART

REGULATIONS

OIL & GAS COMPANIES

Generally honest and trustworthy

Make too much profit

Should be more regulated

4%

66%

77%

Perceptions of

Public Opinion of Hydraulic Fracturing

1

PENNSYLVANIAPercent of respondents in:

MICHIGANPercent of respondents in:

Believe HF is important to the state’s financial well being

Believe HF is important to the state’s financial well being 86%82%

Believe HF’s economic benefits outweigh environmental risks

Believe HF’s economic benefits outweigh environmental risks 58%52%

Favor a temporary ban on HF

Favor a temporary ban on HF 54%52%

What Does This Mean?

2

• The “economic benefits” argument is not enough to gain public acceptance of hydraulic fracturing operations.

• Industry, regulators and other stake-holders must do more to assure the public that hydraulic fracturing can be done safely.

• The Economy

• The Environment

• Energy Security

Current Regulatory Environment

Public Distrust

and Fear

Natural Gas

Industry

CertainEnvironmental

Activists/Groups

PoliticsGuidingPolicy

THEPERFECTSTORM

THEPERFECTSTORM

Developing Smart Regulations

• Dial down the rhetoric

• Identify the real risks

associated with responsible

development of this resource

• Develop “smart regulations” to

minimize these risks

4

What is Smart Regulation?

5

Smart Regulation = Effective Risk Management

1. Identify the risks

2. Assess the probability of occurrence and potential

impact of each risk

3. Implement appropriate risk mitigation strategies

Risk Identification

6

Surface Risks

Subsurface Risks

Subsurface Risks

7

Protecting Underground

Water Resources

Frac Fluid Disclosure

Surface Risks

8

Air Emissions

Water UseWater HandlingWater Reuse & Disposal

Surface Impact• Drilling Locations

• Truck Traffic & Road Damage

• Infrastructure

PERCEIVEDRISK

ACTUALRISKRISK

INFORMATIONGAP

Smart Regulation – Assessing Risk and Implementing Risk Mitigation Strategies

9

ACTUALRISK

PERCEIVEDRISK

COLLABORATIONAND RISK

COMMUNICATION

SMARTREGULATION

PERCEIVEDRISK

ACTUALRISK

PUBLIC TRUST& ACCEPTANCE

ACTUALRISK

PERCEIVEDRISK

SMARTREGULATION

PERCEIVEDRISK

ASSESSEDRISK

COLLABORATION AND RISK

COMMUNICATION

PUBLIC TRUST& ACCEPTANCE

Pace Land Use Law Center/Yale Center for Environmental Law

and PolicyDecember 6, 2013

Mark K. Boling

President

CONTROLLING THE LOCAL IMPACTS OF

HYDROFRACKING THROUGH SMART

REGULATIONS