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Industry Applauds Obama Order on Unconventional Gas Development

Singling out natural gas as an economic engine for the nation, President Obama Friday signed an executive order establishing a high-level, interagency task force to support and oversee the development of unconventional natural gas resources and associated infrastructure.

Natural gas production "creates jobs and provides economic benefits to the entire domestic production supply chain, as well as to chemical and other manufacturers who benefit from lower feedstock and energy costs," the president said. He pointed out that greater use of natural gas in transportation would help reduce the country's dependence on oil. "And with appropriate safeguards, natural gas can provide a cleaner source of energy than other fossil fuels."

The task force will coordinate the efforts of the various federal agencies to promote the clean and responsible development of the natural gas resource.

The Interagency Working Group to Support Safe and Responsible Development of Unconventional Domestic Natural Gas Resources will include representatives of eight cabinet-level departments: Defense, Interior, Agriculture, Commerce, Health and Human Services, Transportation, Energy, and Homeland Security. It also will include a handful of separate agencies, including the Environmental Protection Agency (EPA), the Council on Environmental Quality, the Office of Science and Technology Policy, the Office of Management and Budget, and the National Economic Council.

The task force has been given the task of coordinating the Obama administration's policy efforts with respect to the production of natural gas, particularly shale gas, as well as sharing scientific, environmental and related technical and economic information.

"It is vital that we take full advantage of our natural gas resources while giving American families and communities confidence that natural and cultural resources, air and water quality, and public health and safety will not be compromised," the executive order said.

"Because efforts to promote safe, responsible and efficient development of unconventional domestic natural gas resources are under way at a number of executive departments and agencies, close interagency coordination is important for effective implementation of these programs and activities," it said. The task force will include deputy-level or equivalent representatives from the federal agencies. It will be chaired by Cecilia Munoz, director of the Domestic Policy Council.

Industry groups were widely supportive of the president's move. "President Obama highlighted the benefits of natural gas in his State of the Union address, and has been promoting responsible production and broader use of this domestic, abundant, affordable, clean and reliable energy source," said Dave McCurdy, president and CEO of AGA. "We are pleased to see this action today, which will help promote consistency between the Administration and policies that are put in place. This working group will foster improved government communication and coordination that will help our members continue to safely deliver this foundation fuel to 177 million Americans every day."

Jack Gerard, president of the American Petroleum Institute, added, "We're pleased that the White House recognizes the need to coordinate the efforts of the 10 federal agencies that are reviewing, studying or proposing new regulations on natural gas development and hydraulic fracturing. We have called on the White House to rein in these uncoordinated activities to avoid unnecessary and overlapping federal regulatory efforts and are pleased to see forward progress."

Interior Department's Bureau of Land Management (BLM) reportedly is close to issuing a rule that would require companies drilling for natural gas on public lands to disclose the chemicals used in their hydraulic fracturing operations (see Shale Daily, Feb. 6). Several other federal agencies are working on shale gas and oil drilling rules.

And the EPA is scheduled to come out Tuesday with a final rule aimed at reducing air emissions from oil and natural gas operations (see Shale Daily, April 4).

"While natural gas production is carried out by private firms, and states are the primary regulators of onshore oil and gas activities, the federal government has an important role to play by regulating oil and gas activities on public and Indian trust lands, encouraging greater use of natural gas in transportation, supporting research and development aimed at improving the safety of natural gas development and transportation activities, and setting sensitive, cost-effective public health and environmental standards to implement federal law and augment state safeguards," the presidential order said.

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