Tom Reeder, Director of the Division of Water Resources, noted that the state will conduct a study to examine the potential impacts of hydraulic fracturing on groundwater, but at a later date. He also said the study would be conducted by a different agency than that which applied for the funding from the EPA. The Program Development Unit, which housed experts in aquatic ecosystems, would have received the grants, but that unit will no longer exist due to the Division of Water Resources’ reorganization.
At the request of the North Carolina Mining and Energy Commission, which is charged with developing rules on hydraulic fracturing, the DENR explained its return of the EPA funds at a meeting on September 27, 2013. At that meeting, Drew Elliott of DENR stated that although DENR had a “deep background knowledge” of the Sanford Basin, more information would be needed from the Mining and Energy Commission in order to conduct a detailed baseline study of hydraulic fracturing. Mr. Elliott stated that such information would include when and where hydraulic fracturing would occur first, the specific constituents of concern, and what, if any, groundwater could be potentially impacted. The federal grant contained no mention of coordination with the Mining and Energy Commission or the Department of Energy, Mineral and Land Resources. Mr. Elliott also stated that the DENR would be open to suggestions from the Commission about where and how the baseline study can be conducted in the future.
This article was prepared by Lauren Brogdon (lauren.brogdon@nortonrosefulbright.com or 713 651 5375) from Norton Rose Fulbright's energy practice.
