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By Richard Whisnant UNC School of Government Thursday, March 29, 2012

Hydraulic Fracturing: Practical Considerations and First-Hand Experience Regulatory and Authority issues. By Richard Whisnant UNC School of Government Thursday, March 29, 2012. State/local division of responsibility: like stormwater regulation of new development.

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By Richard Whisnant UNC School of Government Thursday, March 29, 2012

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  1. Hydraulic Fracturing: Practical Considerations and First-Hand ExperienceRegulatory and Authority issues By Richard Whisnant UNC School of Government Thursday, March 29, 2012

  2. State/local division of responsibility: like stormwater regulation of new development • Statewide minima for technical standards: well construction, E&P waste handling, toxics disclosure, monitoring, reporting, etc. • Express local power to strengthen standards if a community wishes • Preservation of traditionalland use and developmentapproval authority:it’s essentially an industrialuse

  3. State regulation: centered in DENR Entia non suntmultiplicandapraeternecessitatem (entities must not be multiplied beyond necessity). Attrib. William of Ockham (c. 1285-1349). Keep it simple stupid. Kelly Johnson, Lockheed Martin (c. 1994). • SWOT already evaluated by STRONGER report • Lots of coordination challenges with Divisions of Land Resources, Water Quality and Water Resources; with separate agency, are you kidding? • Should be supplemented with specific oil and gas expertise • Separate agency: startup and fixed costs a mismatch with fiscal reality and government-cutting rhetoric

  4. Good vs. bad regulation: why have we lost the idea of good regulation? • Maximize industry self-regulation; that takes a strong external levelling of the field • DENR report conclusion vastly understates the scope of the problem in creating an entire new regulatory structure and standards • The shallowness of current thinking about regulation in general makes the odds of our creating an excellent regulatory structure on the first pass very low

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