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Subject

The implications of new regulations on fracking.

Significance

The Department of the Interior on March 20 unveiled the first comprehensive federal rule to cover hydraulic fracturing ('fracking') operations on federally-owned and Native American lands. The rule adjusts construction standards to protect water resources and requires companies to disclose the chemical content of fracking fluid, as well as to give advance public notice of fracking activity.

Impacts

The United States may provide the template for shale regulations in other parts of the world.

Water scarcity will lead to additional public policy constraints on fracking.

The California drought will imperil the viability of the Monterey shale basin for years to come.

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