Colorado Governor Announces Anticipated Fracking Disclosure Rule

The Denver Business Journal reported yesterday that Colorado Governor John Hickenlooper indicated in a speech before an oil and gas trade group that he expects the Colorado Oil and Gas Conservation Commission to promulgate a new rule requiring oil and gas companies to disclose the ingredients used in hydraulic fracturing (a.k.a. "fracking") fluids by the end of this year. According to the article, Colorado already requires oil and gas companies to provide the ingredients used in drilling operations at well sites, and disclose them to state regulators and emergency responders if an incident occurs. The rule envisioned by Gov. Hickenlooper would be similar to a Texas law passed this June, that requires drilling companies to disclose all chemicals used in fracking within the state. That law, which is the first of its kind in the United States, requires the Railroad Commission of Texas to adopt rules no later than July 1, 2012, requiring drilling companies to disclose the identity and amount of chemical ingredients used in fracking on the FracFocus website by July 2012. The Texas law allows companies to withhold information entitled to trade secret protection, and provides that owners of property on which affected wells are located, adjacent properties, and state agencies with jurisdiction, may challenge trade secret claims. Fracking disclosure regulations were adopted by the Wyoming Oil and Gas Conservation Commission in 2010. These initiatives indicate a desire by the states to begin regulating fracking ahead of anticipated federal regulations. Next week, we will discuss federal initiatives in this area, focusing on the ongoing EPA fracking study.