1. HYDRAULIC FRACTURING: PRACTICAL CONSIDERATIONS AND FIRST-HAND EXPERIENCE REGULATORY AND AUTHORITY ISSUES By Richard Whisnant UNC School of Government Thursday, March 29, 2012

2. State/local division of responsibility: like stormwater regulation of new development  Statewide minima for technical standards: well construction, E&P waste handling, toxics disclosure, monitoring, reporting, etc.  Express local power to strengthen standards if a community wishes  Preservation of traditional land use and development approval authority: it’s essentially an industrial use

3. State regulation: centered in DENR Entia non sunt multiplicanda praeter necessitatem (entities must not be multiplied beyond necessity). Attrib. William of Ockham (c. 1285-1349). Keep it simple stupid. Kelly Johnson, Lockheed Martin (c. 1994).  SWOT already evaluated by STRONGER report  Lots of coordination challenges with Divisions of Land Resources, Water Quality and Water Resources; with separate agency, are you kidding?  Should be supplemented with specific oil and gas expertise  Separate agency: startup and fixed costs a mismatch with fiscal reality and government-cutting rhetoric

4. Good vs. bad regulation: why have we lost the idea of good regulation?  Maximize industry self-regulation; that takes a strong external levelling of the field  DENR report conclusion vastly understates the scope of the problem in creating an entire new regulatory structure and standards  The shallowness of current thinking about regulation in general makes the odds of our creating an excellent regulatory structure on the first pass very low