Michigan Adds New Fracking Regulations

The promise of energy independence has resulted in a natural gas boom across the nation. New technologies in hydraulic fracturing have allowed energy companies to drill into the various shale formations in the Northeast. The hydraulic fracturing process, which pumps water into wells at great pressures to break open tight formations, has come under pressure from regulators and the general public as some high profile pollution and contamination claims have been stated. To that end, many states have now issued new regulations regarding fracking including mud disposal guidelines and “ingredient” listing. Michigan becomes the next state to issue advanced guidelines regulating fracking. Almost 12,000 wells have been hydraulically fractured throughout the states Utica Shale. Following the lead of other states, Michigan's new rules in the state include requiring operators to document where they plan to source fresh water used in the fracking process, reporting the chemical additives used in fracking fluids on a public Material Safety Data Sheet, and submitting the fracturing records of service companies used in the completions process. Crushed by the downturn of the American auto industry, the Michigan economy could be boosted by the natural gas offered in the shale. Unlike, some of the more popular shale formations like the Marcellus; the Utica build-out is still in its infancy. For investors, the future growth can be key. Both EnCana (NYSE: