New Legislation Aims To Close 'Halliburton Loophole'

A group of Democratic legislators introduced bills in the Senate and House Tuesday to close the so-called "Halliburton Loophole" in the Safe Drinking Water Act that exempts hydraulic fracturing. The proposed legislation also requires the public disclosure of hydraulic fracturing chemicals.

The loophole authorizes oil and gas drillers, exclusively, to inject known hazardous materials–unchecked–directly into or adjacent to underground drinking water supplies. It passed as part of the Bush Administration’s Energy Policy Act of 2005.

Senators Casey (D-PA) and Schumer (D-NY), and Representatives DeGette (D-CO), Polis (D-CO) and Hinchey (D-NY) introduced the new legislation.

Hydraulic fracturing injects fluids under extremely high pressure into an oil or gas well to crack open underground oil and gas formations. The fluids usually contain highly toxic chemicals, and hydraulic fracturing is suspected of contaminating drinking water across the country. Hydraulic fracturing is now taking place in 34 states-from New York to Ohio to Colorado.

"When it comes to protecting the public’s health, it’s not unreasonable to require these companies to disclose the chemicals they are using in our communities–especially near our water sources," said U.S. Representative Diana DeGette (D-CO), Vice Chair of the Committee on Energy and Commerce. "Our bill simply closes an unconscionable Bush-Cheney loophole by requiring the oil and gas industry to follow the same rules as everyone else."

The exemption is known as the "Halliburton loophole" because former Vice President Dick Cheney, ex-CEO of Halliburton, is associated with its creation. Halliburton developed hydraulic fracturing in the 1940s, and remains one of the three largest manufacturers of fracturing fluids.

The proposed legislation would ensure that a federal minimum standard prohibits endangerment of underground sources of drinking water while allowing states flexibility in implementing that standard. These bills also require disclosure to relevant public agencies of the chemical constituents used in fracturing.

As so-called unconventional gas drilling expands across the country, the potential threats to water from this unregulated practice continue to grow. In response, local governments and water districts have passed resolutions that demand action to close the loophole and protect drinking water.

The Township of Nockamixon, Pennsylvania has recently taken steps to protect water and other community resources in the face of drilling. The Township amended local drilling regulations in 2006, and earlier this month they adopted a resolution calling for supporting Congressional action to require fracturing to comply with the Safe Drinking Water Act.

"Current regulation of hydraulic fracturing is not sufficient," said Supervisor Chair, Nancy Janyszeski of Nockamixon. "From where I sit, ensuring a federal minimum water standard and disclosing chemical makeup is essential." In 2008 the Delaware River Basin Commission (DRBC) adopted Special Protection Waters (SPW), this month they announced they will require anybody drilling for gas within the area to apply for a drilling permit. All of these efforts are achievements towards responsible drilling and protecting our extremely valuable resource, water."

 

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