Collaboration, Not Confrontation with EPA

EPA’s big study of the impact of hydraulic fracturing on drinking water is due in 2014, but an interim report might surface as early as the end of the year. Needed is focused, scientifically solid research that that will advance public discussion of shale energy development that has so much potential for our economy and future energy security.

Unfortunately, EPA’s study plan has deficiencies that ultimately could sap the integrity of the study’s findings. That’s one of the conclusions in a new analysis by the Battelle Memorial Institute. Stephanie Meadows, API upstream senior policy advisor, shared some of the study findings in a conference call with reporters:

“Battelle’s analysis of the plan, which we are releasing today, reinforces many of our previously stated concerns and raises some new ones. It finds deficiencies in the rigor, funding, focus and stakeholder inclusiveness of EPA’s plan. … We’re not calling on EPA to stop its study. We’re calling on them to do it right.”

API and America’s Natural Gas Alliance (ANGA) commissioned the Battelle study after EPA declined to engage with industry in a collaborative review of hydraulic fracturing. Battelle’s Bernard Metzger said his broad-based multidisciplinary team of engineers, oil and natural gas experts, toxicologists and others examined EPA’s study plan to determine its soundness. The findings include:

EPA is reaching beyond the relationship between hydraulic fracturing and drinking water resources, which was its charge from Congress, to broader oil and natural gas industry production activities.The expanded scope suggests there will be added complexity, risk, and uncertainty in EPA’s study, raising the level of difficulty in ensuring a scientifically rigorous result.Site data collected from companies comes from the years 2006-2010, making it likely some data in the final 2014 report could be nearly 10 years old. Changes at company sites in the intervening years likely will “render the data obsolete for the purposes of the study.”Case studies were selected from a limited and statistically biased pool and lack necessary baseline information which may result in incorrect and flawed conclusions. The plan suffers from a lack of “significant” industry collaboration, given industry’s extensive experience and expertise in hydraulic fracturing and associated technologies.

Metzger said gaps in EPA’s study planning can impact data quality:

“Quality cannot be built into the back end of a project through rigorous review; it must be built into each step of a scientifically rigorous process to ensure that the end product is high quality data that is defensible and achieves the study goals.”

ANGA’s Amy Farrell:

“We continue to believe a well-designed, scientifically rigorous study of hydraulic fracturing will confirm our industry’s ongoing commitment to safe and responsible development and that communities don’t have to trade the protection of the environment for the many economic, energy security and clean air benefits natural gas offers. We hope (EPA) will not only consider additional efforts to collaborate with the industry and other key stakeholders moving forward, but that they will carefully review the (Battelle) report and consider the critiques and recommendations for improvement and make adjustments as appropriate.”

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Caution Warranted as E15 Launches in Kansas

From Kansas we hear that a gas station owner in Lawrence has become the first in the country to offer E15 fuel – gasoline with 15 percent ethanol instead of the 10 percent blend that’s standard around the U.S. According to the New York Times, Scott Zaremba may expand E15 to more of his eight stations.

Before motorists in the Lawrence area rush down to fill up, they might take the time to check their vehicle warranties. Even though the EPA has approved E15 for cars and light trucks from model year 2001 forward, a Coordinating Research Council study showed that the fuel can cause engine damage. Automobile manufacturers have said vehicle warranties will not cover damage from E15. Bob Greco, API downstream group director:

“We need to press the pause button on EPA’s rush to allow higher amounts of ethanol in our gasoline. The new fuel could lead to engine damage in more than 5 million vehicles on the road today and could void the manufacturer’s warranty.”

Greco said E15 also could damage engines in boats, recreational vehicles and lawn equipment. Consumers should follow the fueling recommendations in their owner’s manuals and carefully read all gasoline pump labels before refueling, he said.

Potential problems with E15 – which is being advanced as a way to help meet volume requirements set out by the Renewable Fuels Standard – were discussed at a hearing on Capitol Hill this week. API President and CEO Jack Gerard criticized EPA’s rush to push E15 into the marketplace:

“EPA should not have proceeded with E15, especially before a thorough evaluation was conducted to assess the full range of short- and long-term impacts of increasing the amount of ethanol in gasoline on the environment, on engine and vehicle performance, and on consumer safety.”

Greco said consumer protection is paramount:

“Our first priority should be protecting consumers and the investments they’ve made in their automobiles. EPA has an obligation to base this decision on science and not on a political agenda.”

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