"More than 40 percent of officials regulating oil and gas production in the top drilling states, records show, come from the industry they are charged with policing," Mike Soraghan reports for Energy & Environment News. "It is a degree of self-regulation enjoyed by few other industries, if any. And it heightens suspicion among critics of the nation's drilling boom that companies are allowed to damage the environment with impunity."
Supporters of the approach, and the industry, say regulators need the technical experience that can be gained mainly through working in the industry. But critics say it's going too far when most members of the state oil and gas board have their own drilling companies, as is the case in Arkansas. "Among the 71 members of boards and commissions, at least 20 are actively engaged in the business they are regulating," Soraghan reports. Of the 95 commissioners, board members and agency heads in the top 27 major producing states, "39 had an oil and gas background, or 41 percent." Most Eastern states don't have boards or commissions, but are part of a governor's administration. "In at least eight states, the head of the state oil and gas agency comes from industry."
Soraghan notes, "The laws creating the governing panels often require that industry be guaranteed seats on commissions, along with royalty owners, local government officials and sometimes environmentalists. Others designate that some number of the board have 'substantial experience' in the industry, the environment or fields like petroleum geology." Arkansas requires the board to have three owners of oil or gas production companies, but the nine-member board has five. For the rest of the story and the figures from your state, click here.
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