Oil and gas drillers on public lands would be required to disclose the chemicals used in hydraulic fracturing operations only after a well has been stimulated, rather than before and after, under a draft Interior Department proposal obtained by E&ENews PM.

Interior is also working with state water regulators to determine whether the disclosure of chemicals could be integrated into an existing website known as FracFocus.org, the document states.

Both provisions suggest a break from a draft rule circulated months ago that would govern the use of hydraulic fracturing on public lands and American Indian reservations (Greenwire, Feb. 6).

An Interior official close to the rulemaking process would not confirm the authenticity of the document, which was obtained from an industry source.

"A draft rule is still under development as we address the preliminary feedback received from the public, industry, tribal representatives and other stakeholders, and it would be inappropriate to speculate on what the complete draft may include," the official said on the condition of anonymity. "We intend to propose a rule that supports the administration's goal of continuing to expand production of America's abundant oil and gas resources on federal and Indian lands by taking steps to ensure public confidence in hydraulic fracturing and other technologies that will play an integral role in our nation's energy security."

The Bureau of Land Management's impending rules come amid growing concern over whether hydraulic fracturing, known as fracking, could contaminate groundwater. Additional concerns have arisen over well integrity and the "flowback" of water that rises to the surface during and after fracturing operations.

BLM estimates 90 percent of wells on public lands, or about 3,400 each year, use hydraulic fracturing, a decades-old technique that injects large volumes of chemical-laced water underground to create fissures in shale rock to spur production of oil or gas.

As expected, the Obama administration appears poised to propose a rule that addresses disclosure of chemicals, well integrity and management of flowback waters. The draft rule would apply to both the agency's 700 million acres of mineral estate and an additional 56 million acres of Indian lands.

"The BLM has developed the draft with an eye toward improving public awareness and oversight without introducing complicated new procedures or delays in the process of developing oil and gas resources on public and tribal lands," the draft states.

Most of the requirements could be satisfied by augmenting filings that are already required during the process of oil and gas drilling on public lands, the draft says.

"The proposed rule would require that disclosure of the chemicals used in the fracturing process be provided to the BLM after the fracturing operation is completed," it says. "BLM is working with the Ground Water Protection Council to determine whether the disclosure can be integrated into the existing website known as FracFocus.org."

The draft says BLM's goal is to complement state efforts to regulate hydraulic fracturing "by providing a consistent standard across all public and tribal lands."

Interior Secretary Ken Salazar last week said the proposed rule would be released soon but indicated the draft was still undergoing edits.

"We want to make sure we get them right, and we want to make sure they are well-understood," Salazar told reporters last week after a speech at the National Press Club. "We are doing the kind of editing on them to make sure they will be clear."

Julia Bell, a spokeswoman for the Independent Petroleum Association of America, praised BLM's apparent willingness to integrate state-led efforts into its new rule.

"We appreciate that BLM's draft regulations are attempting to build off of the states' successful history of regulating hydraulic fracturing on federal lands," she said in an email. "In particular, the rules highlight the role of FracFocus.org, the chemical registry website operated by the Ground Water Protection Council, which has been crucial to a successful regulatory regime.

"However, it's important to note that these rules are draft regulations and, as of yet, have not been proposed," she added. "At this time, it's impossible to determine the full impact of these rules on America's independent oil and natural gas producers. We are working with our member companies to assess the effect."

Fracfocus has been criticized by an Obama administration advisory panel and others because it does not make the information available in spreadsheet or database format, and it does not require disclosure of some chemicals, namely chemicals not covered by worker safety laws.

Some states have ordered that disclosure in their states, through Fracfocus, include all chemicals. And officials at the Ground Water Protection Council, which administers the site, have said they are working on improvements to make the site more accessible. The council consists of state water regulators.

Renee Sharp, director of the Environmental Working Group's California office, said she found many positives in the draft rule, including BLM's apparent plan to require approval before fracking can take place and that disposal of reclaimed fluids be in tanks or lined pits. The draft also suggests BLM would expand the protection of water to include all "usable" waters, rather than just "fresh water," she said.

"It's not clear from what is outlined in the draft how much of the chemical information would become public, and how much of it would be claimed as trade secret or be otherwise hidden from public view," she said. "There are also several omissions that we find problematic."

Those include the lack of a provision for landowner notice and of a prohibition against fracking adjacent to a local property owner without his or her knowledge or input, she said.

Reporter Mike Soraghan contributed.