Energy In-depth: Oklahoma oil and gas regulators investigate spike in earthquake activity

Editor’s note: Each Friday, Talk Business & Politics provides “Energy In-depth,” a round-up of energy and regulatory news.

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OKLAHOMA OIL AND GAS REGULATORS INVESTIGATE SPIKE IN EARTHQUAKE ACTIVITY
The Oklahoma Corporation Commission’s oil and gas division announced Wednesday (July 13) that it is investigating all oil and gas activity in the Blanchard area in central Oklahoma in response to increased earthquake activity.

According to Oklahoma regulators, the United States Geological Survey data shows nine recent events in the region, including a 3.1 magnitude earthquake in the Blanchard area earlier this week.

The area being investigated is outside of the 15,000 square miles put in place earlier this year in which Arbuckle disposal injection well activities were restricted and new requirements placed on their operation. Because there are no Arbuckle disposal wells within at least a 20-mile area of the recent earthquakes, all oil and gas operations in the region are being examined.

Relevant data is also being given to the Oklahoma Geological Survey for further analysis.

FEDS AWARD $15 MILLION TO PROTECT ENERGY GRID FROM CYBER, PHYSICAL ATTACKS
As part of the Obama administration’s efforts to protect the nation’s energy grid, the U.S. Department of Energy announced $15 million in new funding to protect utility infrastructure from cyber and physical attacks.

The Energy Department will provide the funds, subject to congressional appropriations, to support efforts by the American Public Power Association (APPA) and the National Rural Electric Cooperative Association (NRECA) to further enhance the culture of security within their utility members’ organizations.

Over the next three years, the Energy Department funding will be used by APPA and NRECA to develop security tools, educational resources, updated guidelines, and training on common strategies that can be used by their member organizations to cultivate an improved cyber and physical security culture.

Activities to bolster their members’ security capabilities will include exercises, utility site assessments, and a comprehensive range of information sharing with their members. Approximately 26% of the nation’s electricity customers are served by municipal public power providers and rural electric cooperatives.

U.S. INTERIOR DEPARTMENT RELEASES FINAL RULES ON FUTURE ARCTIC DRILLING
The U.S. Department of Interior announced final regulations to ensure that any future exploratory drilling activities on the U.S. Arctic Outer Continental Shelf (OCS) are conducted under the highest safety and environmental standards and subject to strong and proven operational requirements. The Arctic-specific regulations focus solely on OCS exploratory drilling operations from floating vessels within the U.S. Beaufort and Chukchi Seas.

These rules require oil companies to ensure proper internal controls and planning for oil spill prevention, containment and responses – all issues identified by previous Interior reports regarding Shell’s 2012 exploration activities in the Arctic.

The regulations also codify and further develop current Arctic-specific operational standards to ensure that operators take the necessary steps to plan through all phases of OCS exploration in the Arctic, including mobilization, maritime transport and emergency response, and the conduct of safe drilling operations while in theater.

To view the final rules, click here.