CQ - "Fracking' Foes Have Their Say on Natural Gas Exports

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By Geof Koss

Democratic opponents of hydraulic fracturing want the Obama administration to conduct a broad review of environmental risks associated with pending proposals to ship liquefied natural gas, or LNG, overseas to foreign markets.
In a letter on Wednesday, 20 House Democrats urged Energy Secretary Steven Chu to prepare an environmental impact statement of the effects of the export push on local communities where increased natural gas production is extracted using the method known as "fracking.

"We are concerned that exporting more LNG would lead to greater hydraulic fracturing activity thus threatening the health of local residents and jobs," wrote the group, led by Reps. Jared Polis of Colorado and New York's Maurice D. Hinchey.

Both lawmakers are leading critics of fracking, which involves injecting high-pressure streams of water, sand and chemicals to free gas trapped in underground shale formations. Opponents say the practice potentially contaminates water supplies and emits air pollution and should be subject to greater federal regulation.

Supporters insist fracking is safe and already well-regulated by state officials.

While widespread fracking has led to a boom in U.S. natural gas production in recent years, falling domestic prices has producers looking overseas to the high prices commanded for LNG in Asian markets.

The Energy Department is required to evaluate whether exports are in the "public interest," but the Democrats say it has yet to prepare a broad environmental impact statement, or EIS, required under the National Environmental Policy Act (PL 94-52). That law requires federal agencies to weigh the environmental risks of every "major federal action."

"A comprehensive EIS is essential to understanding the upstream public health and environmental effects resulting from increased domestic fracking," states the letter. "Further, an EIS ensures that decision-makers are fully analyzing the environmental risks posed by exporting LNG."

The letter marks the second time this week that members of Congress have weighed in on LNG exports with the Energy Department. On Monday, a bipartisan group of mostly Western lawmakers urged Chu to move quickly on the growing number of export proposals.

A spokeswoman this week said the Energy Department is awaiting a review of the economic impact of sending more exports abroad before acting on the applications. Exports to countries with trade agreements with the United States are automatically considered to meet the public interest requirement.

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