Late last week, a Nevada legislative panel gave final approval to a set of rules for the regulation of hydraulic fracturing in oil and gas operations in the state. The new regulations, which were adopted despite protests from a number of environmental groups, were the product of a collaborative effort between the state and the primary operator in Nevada, Noble Energy, Inc.
Among other requirements, the new regulations require the monitoring of well casings for quality, the disclosure of all chemicals used, the notification of land owners and county commissioners, and the collection of multiple water samples for testing.
The regulations currently have minimal impact, as oil and gas activity in the state is primarily limited to certain areas in the northeast portion of the state. However, the clarity of the regulations and the certainty they apparently provide for operators, could well set the stage for the entry of other oil and gas operators and exploration and development in other areas of the state. In that regard, the state's new regulations appear to find the right balance between environmental protection and the reasoned exploration for and production of valuable natural resources, together with the well documented economic benefits derived from that activity.
Originally published October 29, 2014
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