A federal judge Wednesday blocked the Obama administration from implementing new regulations on hydraulic fracturing, saying that the administration does not appear to have the statutory authority to do so.
The rule, finalized in March by the Interior Department’s Bureau of Land Management (BLM), is the federal government’s first major attempt to regulate the innovative oil and gas extraction technique commonly known as fracking.
Recent Stories in Issues
Fracking is generally regulated at the state level. BLM sought to impose additional restrictions on the practice for oil and gas wells on federal land.
Judge Scott W. Skavdahl of the United States District Court for the District of Wyoming said that the agency appears to lack the statutory authority to do so and issued a preliminary injunction blocking BLM from implementing the rule.
"At this point, the Court does not believe Congress has granted or delegated to the BLM authority to regulate fracking," Skavdahl wrote in his opinion.
In fact, BLM "previously disavowed authority to regulate hydraulic fracturing," the judge noted.
The Environmental Protection Agency previously had the authority to regulate the fracking-related practices that the rule targets, but the 2005 Energy Policy Act stripped the agency of that authority.
"It is hard to analytically conclude or infer that, having expressly removed the regulatory authority from the EPA, Congress intended to vest it in the BLM, particularly where the BLM had not previously been regulating the practice," Skavdahl wrote.
The ruling marks a major setback for Obama administration efforts to crack down on fracking, which has spurred unprecedented increases in U.S. oil and gas production since 2009.
The ruling does not scuttle the regulations, but rather prevents their implementation while a lawsuit brought by Wyoming, Colorado, North Dakota, Utah, and the Ute Indian tribe makes its way though the federal courts.
Two industry groups, the Independent Petroleum Association of America and the Western Energy Alliance, have also sued to block the rule.
"Today’s decision essentially shows BLM’s efforts are not needed and that states are—and have for 60 years been—in the best position to safely regulate hydraulic fracturing," said IPAA spokesman Jeff Eshelman on the ruling.