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Officials: Fracking, with diesel fuel mixture, vital to N.D. oil boom

Oilfield companies engaged in hydraulic fracturing have injected more than 32 million gallons of fluids containing diesel fuel in North Dakota and other oil-producing states, according to congressional investigators.

Rig near Watford City, N.D.
A drill rig owned by Enid, Okla.-based Continental Resources Inc. aims for oil from the Three Forks-Sanish formation near Watford City, N.D. Dozens of fruitful wells beneath the rich Bakken shale in North Dakota continue to fuel a hunch among oilmen and geologists that another vast crude-bearing formation may be buried in the state's vast oil patch. (AP Photo/James MacPherson)

Oilfield companies engaged in hydraulic fracturing have injected more than 32 million gallons of fluids containing diesel fuel in North Dakota and other oil-producing states, according to congressional investigators.

Investigators found no evidence that the practice contaminated groundwater, the Associated Press reported Monday, but Democratic lawmakers said the companies involved had not obtained necessary permits, apparently in violation of the federal Safe Drinking Water Act.

The fracking process has been a key factor in the recent oil boom in North Dakota, and state regulators as well as industry spokesmen have declared it vital if the boom is to continue.

Lynn Helms, director of the state's Department of Mineral Resources, told a state legislative committee earlier this month that regulation of fracking by the federal Environmental Protection Agency could halt drilling activity for up to two years, resulting in a decline in production of 25 percent to 30 percent.

In a posting on the division's web site on Jan. 7, Helms indicated that "the threat of federal regulation of hydraulic fracturing has diminished."

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Hydraulic fracturing creates fractures in shale rock formations through the high-pressure injection of fluids deep underground, allowing more oil and gas to flow out of the formation.

Industry officials insist the process is environmentally sound, but some environmentalists fault oil and gas companies for not fully disclosing chemicals used in fracking, and they have raised questions about its potential impact on water supplies.

Helms was in meetings with Gov. Jack Dalrymple and others Monday, an aide said, and was not immediately available for comment on the congressional investigators' report.

Earlier this month, the state House Energy and Natural Resources Committee heard a bill that would declare fracturing "an acceptable recovery process in this state," as the practice's defenders sought to defray federal intervention.

Rep. Duane DeKrey, R-Pettibone, sponsored the proposal, which he called a "defensive measure" against potential new EPA regulations. He said it would not affect state regulators' authority to oversee the practice, the Bismarck Tribune reported.

Helms attended that hearing and explained the fracking process. He said any attempt to curtail it would be "devastating to our economy" in North Dakota, which has built a $1 billion state budget surplus thanks largely to oil activity.

Helms acknowledged that fracking's demands on water -- as much as 25 million gallons a day -- is cause for concern and monitoring, as is the toxicity of some chemicals used, though he said those chemicals are highly diluted.

"The real danger can be when these chemicals are transported," Helms said, but proper handling and storage should avoid problems.

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Todd Kranda, a spokesman for the North Dakota Petroleum Council, also advised the legislative committee that fracking is critical to continued development of the Bakken Oil Formation in western North Dakota.

"The Bakken is only possible through hydraulic fracturing," he said.

The bill was opposed by the North Dakota chapter of the Wildlife Society, which represents biologists, park rangers and educators, in part, a spokesman said, because the declaration would have little if any real effect.

Reach Haga at (701) 780-1102; (800) 477-6572, ext. 102; or send e-mail to chaga@gfherald.com .

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