Tuesday, May 22, 2018
Business

Oversight lax for high-risk oil wells

WASHINGTON — The government has failed to inspect thousands of oil and gas wells it considers potentially high risks for water contamination and other environmental damage, congressional investigators say.

The report highlights substantial gaps in oversight by the agency that manages oil and gas development on federal and American Indian lands.

Investigators said weak control by the Interior Department's Bureau of Land Management resulted from policies based on outdated science and from incomplete monitoring data.

The findings from the Government Accountability Office come amid an energy boom in the country and the increasing use of hydraulic fracturing, or fracking. That process involves pumping huge volumes of water, sand and chemicals underground to split open rocks to allow oil and gas to flow. It has produced major economic benefits, but also raised fears that the chemicals could spread to water supplies.

The audit also said the BLM did not coordinate effectively with state regulators in New Mexico, North Dakota, Oklahoma and Utah.

The bureau has become a symbol of federal overreach to industry groups opposed to government regulations related to oil and gas drilling. Environmental groups say the Obama administration needs to do more to guard against environmental damage.

In the coming months, the administration is expected to issue rules on fracking and methane gas emissions.

The report said the agency "cannot accurately and efficiently identify whether federal and Indian resources are properly protected or that federal and Indian resources are at risk of being extracted without agency approval."

The report makes clear in many instances that the BLM's failure to inspect high-priority oil and gas wells is due to limited money and staff. BLM officials said they were in the process of updating several of its policies later this year.

Investigators reviewed 14 states in full or part: Arkansas, California, Colorado, Louisiana, New Mexico, North Dakota, Ohio, Oklahoma, Pennsylvania, South Dakota, Texas, Utah, West Virginia and Wyoming.

The report said the BLM had failed to conduct inspections on more than 2,100 of the 3,702 wells that it had specified as "high priority" and drilled from 2009 through 2012. The agency considers a well "high priority" based on a greater need to protect against possible water contamination and other environmental safety issues.

The report said the BLM has not reviewed or updated many of its oil and gas rules to reflect technological advances, as required by a 2011 executive order. They include guidance on spacing of wells, which the report said could help maximize oil and gas production.

The bureau acknowledged it had not updated its guidance on oil and gas drainage since 1999 or its guidance on mineral trespass — interference of drilling or mining activity — since 2003.

Congressional investigators found the BLM did not monitor inspection activities at its state and field offices and thus could not provide "reasonable assurance" that those offices were completing the required inspections.

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