Industry campaign targets 'hydraulic fracturing' bill

Fearing a push by House Democrats to regulate a controversial form of natural gas production, an industry coalition launched a campaign yesterday arguing that new rules would kill jobs and batter the economy. The coalition of independent oil and gas companies says a Democratic proposal to allow new oversight over hydraulic fracturing would slash domestic oil and gas production and cost the Treasury $4 billion in lost taxes, royalties, rents and other payments. But environmentalists and an aide to a Democratic lawmaker backing regulation say the claim amounts to "scare tactics." The industry group says hydraulic fracturing, which uses high-pressure injections into the ground to force oil and gas to flow more freely, has a track record of safety and is regulated sufficiently by the states. Environmentalists and some congressional Democrats argue it threatens groundwater. In addition to adding oversight, they want companies using the process to reveal what chemicals are used -- information that is now considered proprietary. The 2005 Energy Policy Act exempted hydraulic fracturing from regulation under the Safe Water Drinking Act. But Rep. Diana DeGette (D-Colo.) proposed a bill last year to repeal that exemption. DeGette is now talking with Energy and Commerce Chairman Henry Waxman (D-Calif.) about either inserting her bill into pending climate legislation or reintroducing the measure on its own...NYTimes