Montana disclosure regulations, effective August 26, 2011

In Montana, before a well can be hydraulically fractured, acidized, or chemically treated, either in the drilling permit application or in a notice of intent to stimulate a well, the owner, operator, or service company must fully describe the activity by providing:

• the estimated total volume of treatment to be used;
• the trade name or generic name of the principle components or chemicals;
• the estimated amount of the principal components such as viscosifiers, acids, or gelling agents;
• the estimated weight or volume of inert substances such as proppants; and
• the maximum anticipated treating pressure or a written description of the well construction specifications which demonstrate that the well is appropriately constructed for the proposed fracture stimulation.

Upon completion of a well, the owner or operator must provide additional information relating to the hydraulic fracturing fluids used, namely (a) a description of the fluid identified by additive type (e.g., acid, biocide, brine, proppant, etc.) and (b) the chemical ingredient name and the Chemical Abstracts Service (CAS) Registry number for each ingredient of the additive used, including the rate or concentration for each additive. This information is to be posted by the owner or operator on the FracFocus website.

An owner, operator or service contractor need not disclose proprietary chemicals and trade secrets unless the information is needed to respond to (1) a spill or release or (2) a written request from a health professional who is treating a person who may have been exposed to the chemical concerned. The health professional must acknowledge verbally that he or she will maintain the confidentiality of the information and may be asked later to execute a nondisclosure agreement. In the case of a spill or release, upon request from the Montana Board of Oil and Gas, the trade secret information must be disclosed to Board members and staff or to a laboratory or other third-party, all of whom may be required to sign a nondisclosure agreement.

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This post was written by Barclay Nicholson (barclay.nicholson@nortonrosefulbright.com or 713.651.3662) from Norton Rose Fulbright's Energy Practice Group.