Managing the Risks of Unconventional Oil and Gas Development

The report outlines a toolkit for local governments to manage the rapid expansion of unconventional oil and gas development, such as hydraulic fracturing. It details regulatory options like zoning and setbacks, non-regulatory strategies including community engagement and contractual agreements, and fiscal tools such as severance taxes and road maintenance agreements. The document emphasizes the challenge of state-level preemption and the need for local officials to act as 'honest brokers' between industry and concerned residents.

• Unconventional oil and gas development presents a complex balance of local benefits and costs. Benefits include wealth generation for mineral rights owners, job creation, and fiscal gains through taxes. Costs and risks encompass water stress and contamination, localized air pollution, noise, light pollution, seismic risks from wastewater injection, and socioeconomic pressures such as increased living costs.
• Local governments can employ several regulatory tools to manage risk, although their authority is often limited by state-level supremacy. Key tools include land use planning and zoning to ensure compliance with health and safety standards, the establishment of setbacks from residences and watercourses, and the implementation of nuisance regulations to control noise, dust, and light.
• Non-regulatory approaches provide alternatives when state laws preempt local regulatory action. These include community and industry engagement to resolve conflicts, the use of incentives (such as expedited permitting) for operators who adopt best practices, and legally binding contractual mechanisms to promote specific environmental or safety outcomes.
• To offset the financial burdens of development, such as road damage and increased demand for emergency services, local governments can utilize various fiscal strategies. These include collecting severance, property, and sales taxes, imposing permit and inspection fees, and negotiating road maintenance agreements to ensure operators cover the costs of heavy truck traffic.
• The report recommends several best practices for local officials, including maintaining transparency to serve as an 'honest broker' for residents, planning for the distinct phases of development (construction, production, and reclamation), and diversifying revenue streams to protect against the boom-bust cycles of the energy industry.

APA

Anair, D., & Mahmassani, A. (2015). Managing the Risks of Unconventional Oil and Gas Development. Union of Concerned Scientists. https://www.ucs.org/sites/default/files/attach/2015/06/ucs-managing-risks-unconventional-oil-gas-development-2015.pdf

Chicago

Anair, Don, and Amine Mahmassani. Managing the Risks of Unconventional Oil and Gas Development. Union of Concerned Scientists, 2015. https://www.ucs.org/sites/default/files/attach/2015/06/ucs-managing-risks-unconventional-oil-gas-development-2015.pdf.

Wikipedia

{{cite report |last1=Anair |first1=Don |last2=Mahmassani |first2=Amine |title=Managing the Risks of Unconventional Oil and Gas Development |publisher=Union of Concerned Scientists |date=June 2015 |url=https://www.ucs.org/sites/default/files/attach/2015/06/ucs-managing-risks-unconventional-oil-gas-development-2015.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{anair2015managing, author = {Anair, Don and Mahmassani, Amine}, title = {{Managing the Risks of Unconventional Oil and Gas Development}}, institution = {Union of Concerned Scientists}, year = {2015}, month = jun, url = {https://www.ucs.org/sites/default/files/attach/2015/06/ucs-managing-risks-unconventional-oil-gas-development-2015.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }