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Breaking all the rules: The crisis in oil & gas regulatory enforcement

Ohio does not take many enforcement actions against oil and gas violators, and the number has been declining in the past few years. In 2008, one enforcement action was taken for every 23 violations, whereas in 2011 one enforcement action was taken for every 57 violations.

WASHINGTON, DC — “The U.S. faces a crisis in the enforcement of rules governing the oil and gas industry. The shale gas and shale oil boom has brought an expansion of oil and gas activity unseen in many parts the country since the 19th century. Unfortunately, as this report shows, states are dangerously unprepared to oversee current levels of extraction, let alone increased drilling activity from the shale boom.

“Based on their own data, every state we studied fails to adequately enforce regulations on the books. Among our findings:

  • Every year hundreds of thousands of oil and gas wells – 53 to 91% of wells in the states studied (close to 350,000 active wells in the six states in 2010) – are operating with no inspections to determine whether they are in compliance with state rules.
  • When inspections do uncover rule violations, the violations often are not formally recorded – and the decision whether or not to record a violation is often left to the discretion of the individual inspector.
  • When violations are recorded, they result in few penalties.
  • When penalties are assessed, they provide little incentive for companies to not offend again.”

— Lisa Sumi, Earthworks

Report: Oil well inspections lagging in Ohio

— Spencer Hunt, Columbus Dispatch 

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