Public reporting of hydraulic fracturing chemicals in the USA, 2011-18: a before and after comparison of reporting formats

Abstract

Background: Hydraulic fracturing often involves the injection of millions of gallons of fracturing fluids into underground shales to extract oil and natural gas, raising health concerns over potential water contamination. Many state and federal governmental agencies rely on the third-party FracFocus online registry for disclosure of chemical ingredients in fracturing fluids, but withholding chemicals as trade secrets is common. In 2016, a new format, known as the systems approach was widely encouraged as a method of reducing withholding by decoupling disclosed chemicals from their functions, protecting against reverse-engineering of fracture fluid formulas by competitors. In this study, we assess the extent to which elevated use of the systems approach in FracFocus version 3.0 translated into greater chemical disclosure.

Methods: We analysed 108 137 disclosure forms submitted to FracFocus between Jan 1, 2011, and Dec 31, 2018, to estimate the effect of expanded use of the systems approach on chemical withholding. We compared the proportion of forms withholding at least one chemical ingredient across time, between approaches, and by state and drilling operator.

Findings: Since the 2016 expansion of the systems approach, 15 677 (82%) of systems approach forms have withheld an ingredient. 13 462 (89%) of 15 062 traditional FracFocus version 3.0 forms withheld an ingredient. In the quarter following the transition (July, to September, 2016), 1211 (93%) of 1304 traditional forms withheld an ingredient, compared with only 958 (76%) of 1262 systems approach forms. However, withholding rates increased throughout 2017 and, by 2018, 6949 (87%) of 8016 systems approach forms were withholding ingredients. At the end of our analysis period in the fourth quarter of 2018, systems approach forms had even greater withholding (903 [88%] of 1025 forms) than did traditional forms (855 [85%] of 1004 forms). We did not find that states or operators that submitted more systems approach forms had lower withholding.

Interpretation: The systems approach has not reduced FracFocus chemical withholding, which continues to occur in around 87% of well fracture disclosures. FracFocus might not be an appropriate substitute for regulatory action, and measures are urgently needed for environmental and public safety.

Funding: University of Chicago Argonne National Laboratory Seed Grant.