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Utah energy advisor says new regulations are legally and pragmatically faulty

Utah’s Governor Gary Herbert announced that his state will be joining North Dakota, Colorado and Wyoming in their lawsuit against new federal rules regarding new hydraulic fracturing regulations on federal lands. OAG360® spoke with both Gov. Herbert and his energy advisor, Cody Stewart, about the matter recently.

Stewart told Oil & Gas 360® that Utah took time to determine the validity of the rule to see if it might work before deciding to join the states challenging the new regulations from the Bureau of Land Management (BLM). “After taking some time to really look over the law, we decided that it was flawed,” Stewart said.

“From a pragmatic point of view, this legislation duplicates laws that are already in place, adds unnecessary timelines and will hurt development. From a legal point of view, we think that the BLM does not have the authority to enforce these regulations.”

Earlier this month, OAG360® asked Governor Herbert about his thoughts on the lawsuit, to which he responded that states are in the best position to handle these kinds of issues. “I believe that states have done a very good job of regulating hydraulic fracturing themselves. I don’t believe we need an extra layer of oversight. I think it becomes redundant and just expensive and more costly when it comes to producing energy.”


 

To listen to OAG360®’s exclusive interview with Governor Gary Herbert, click here.


 

Collectively, the four states now involved in the suit against the BLM accounted for 600.6 MMBO of production in 2014, based off information from the Energy Information Administration. North Dakota made up the majority with 396.8 MMBO of production last year. Colorado, Wyoming and Utah accounted for 86.9 MMBO, 76.1 MMBO and 40.9 MMBO of production respectively in 2014.

Important disclosures: The information provided herein is believed to be reliable; however, EnerCom, Inc. makes no representation or warranty as to its completeness or accuracy. EnerCom’s conclusions are based upon information gathered from sources deemed to be reliable. This note is not intended as an offer or solicitation for the purchase or sale of any security or financial instrument of any company mentioned in this note. This note was prepared for general circulation and does not provide investment recommendations specific to individual investors. All readers of the note must make their own investment decisions based upon their specific investment objectives and financial situation utilizing their own financial advisors as they deem necessary. Investors should consider a company’s entire financial and operational structure in making any investment decisions. Past performance of any company discussed in this note should not be taken as an indication or guarantee of future results. EnerCom is a multi-disciplined management consulting services firm that regularly intends to seek business, or currently may be undertaking business, with companies covered on Oil & Gas 360®, and thereby seeks to receive compensation from these companies for its services. In addition, EnerCom, or its principals or employees, may have an economic interest in any of these companies. As a result, readers of EnerCom’s Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this note. The company or companies covered in this note did not review the note prior to publication. EnerCom, or its principals or employees, may have an economic interest in any of the companies covered in this report or on Oil & Gas 360®. As a result, readers of EnerCom’s reports or Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this report.


Important disclosures: The information provided herein is believed to be reliable; however, EnerCom, Inc. makes no representation or warranty as to its completeness or accuracy. EnerCom’s conclusions are based upon information gathered from sources deemed to be reliable. This note is not intended as an offer or solicitation for the purchase or sale of any security or financial instrument of any company mentioned in this note. This note was prepared for general circulation and does not provide investment recommendations specific to individual investors. All readers of the note must make their own investment decisions based upon their specific investment objectives and financial situation utilizing their own financial advisors as they deem necessary. Investors should consider a company’s entire financial and operational structure in making any investment decisions. Past performance of any company discussed in this note should not be taken as an indication or guarantee of future results. EnerCom is a multi-disciplined management consulting services firm that regularly intends to seek business, or currently may be undertaking business, with companies covered on Oil & Gas 360®, and thereby seeks to receive compensation from these companies for its services. In addition, EnerCom, or its principals or employees, may have an economic interest in any of these companies. As a result, readers of EnerCom’s Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this note. EnerCom, or its principals or employees, may have an economic interest in any of the companies covered in this report or on Oil & Gas 360®. As a result, readers of EnerCom’s reports or Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this report.