The National Research Council of the National Academy of Sciences recently held the second of two workshops in Washington, D.C. dealing with the risks associated with shale gas development and the growing debate over how to regulate the industry. The workshops concluded without reaching a consensus on any of the issues. The workshops are, however, part of an ongoing series meant to frame the most talked-about issues concerning this rapidly growing industry, and give participants – from all sides of the spectrum – a forum in which to discuss how best to move forward.
The first workshop, which was held on May 30-31, 2013, discussed the most identifiable risks associated with shale gas development, including human health effects, greenhouse gas emissions, and other social stressors. Predictably, several of the presentations were focused on the effects that fracking can have on drinking water sources. Stakeholders from both industry and public interest groups, as well as academics, discussed the major studies performed so far and debated how all parties should consider the studies' conclusions. For example, a consistent theme running throughout the presentations was the need for improved data on actual human health effects.
Also of note, presentations dealt with greenhouse gas emissions resulting from shale exploration, focusing on the extent to which shale gas extraction results in the release of methane, which many acknowledge can have more a more significant impact on the environment than carbon dioxide. On the other hand, another consistent theme throughout these presentations was how natural gas burns relatively cleanly when compared to the effects that coal and other traditional sources of energy have on the environment, thus making it a cost-effective transition to renewable energy.
The second workshop, held on August 15-16, 2013, was entitled, "Governance of Risks of Shale Gas Development." The presentations on the first day were concentrated around the current status of, and possible challenges to, oversight of shale gas development by EPA and other federal agencies, in light of already-existing state and local regulation schemes. One interesting aspect of this debate was how the states' ability to control or oversee their local authorities' powers varies widely, from state to state. Another aspect of the debate running through these presentations was how the federal government could enhance – as opposed to preempt – state and local regulation, and produce and synthesize information needed to improve risk governance.
The second day's focus shifted, examining the role of internal corporate compliance, as well as the possibility of industry self-regulation. The last day's presentations gave some credence to self-governance, suggesting that businesses in this space should take note that the window is still open for responsible steps toward creating their own compliance systems. Notably, one of the presentations discusses the possibility of industry standards or codes, based on a case study of shale gas exploration in Pennsylvania.
When contrasted with the first day of the August workshops, businesses should realize their window for making headway on compliance and industry self-regulation may be waning, given the strong pressure for federal regulation. The nature and tone of the ongoing public debate on shale gas exploration and fracking is heated. While the workshops did not come to specific conclusions on whether the risks of the industry are outweighed by their benefits, it is clear that companies should conduct internal audits to make sure they are in compliance with all regulatory requirements and best practices, carefully monitor further developments, and participate in the public debate to make sure their perspectives continue to be heard.
Links to the two workshops, including agendas and video, can be found here.
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