President Barack Obama’s plan to tighten regulation of hydraulic fracturing for natural gas on US public land might cost more than 20 times US estimates, energy firms and local governments said on Friday. EOG Resources, the top oil producer in Texas shale formations, and officials from Wyoming and Utah cited a study by John Dunham and Associates that said it would cost $253 839 (R10.2 million) for each well to meet the proposal for disclosing chemicals being used and certifying the well was isolated to avoid leaks. The bureau of land management estimated costs at $11 833 for each well.
The rules for disclosing chemicals and well integrity were crafted after environmentalists and home owners said fracking might taint drinking water supplies or cause earthquakes. – Bloomberg