U.S. Chamber’s Energy Institute: BLM Fracking Rules “A Solution in Search of a Problem”

Press Release
May 16, 2013

WASHINGTON – Karen Harbert, president and CEO of the U.S. Chamber’s Institute for 21st Century Energy, today expressed concern about the impact that the Bureau of Land Management’s (BLM) new draft rule on hydraulic fracturing on federal lands will have on shale development in America.

“BLM’s rule is a solution in search of a problem,” said Harbert. “States are much better suited to regulate hydraulic fracturing and have done an effective job. The new rule is duplicative to state regulation and the Department of Interior’s rule fails to provide a credible rationale as to why another set of regulations are needed.”

Harbert noted that the rule itself notes the duplicity that would exist under the new regulation. The text reads, “some states…have issued their own regulations addressing disclosures and oversight for oil and gas drilling operations. Operators with leases on Federal lands must comply with both BLM’s regulations and with State operating requirements, including State permitting and notice requirements to the extent they do not conflict with BLM regulations.”

In March, the Congressional Research Service reported that oil production on federal lands has declined by six percent since 2009, while production on private and state lands increased by 31 percent. Similarly, natural gas production declined by 21 percent while production on private and state lands was up 25 percent.

“Given that over three quarters of federal lands onshore are already off limits to exploration thanks to this Administration, this draft rule will make what little remains even more expensive and less feasible,” said Harbert. “This effort by the Administration comes at a time when America should be taking greater advantage of our natural resources to create jobs and improve our economy. Even more troubling, it could be a harbinger for things to come by setting the stage for regulation on private and state lands as well."

The mission of the U.S. Chamber’s Institute for 21st Century Energy is to unify policymakers, regulators, business leaders, and the American public behind a common sense energy strategy to help keep America secure, prosperous, and clean. Through policy development, education, and advocacy, the Institute is building support for meaningful action at the local, state, national, and international levels.

The U.S. Chamber is the world's largest business federation representing the interests of more than 3 million businesses and organizations of every size, sector, and region.