Releases

As environmentalists and regulators raise concerns over the potential hazards associated with shale drilling, energy companies should anticipate pressure to disclose the risks and potential costs of their fracking activities. “It makes sense to enhance disclosure about the use of hydraulic fracturing and any related environmental, regulatory and litigation risks, particularly as companies enter their annual reporting phase,” says Harry Beaudry of the Houston office of Thompson & Knight. While fracking is mostly state-regulated, the EPA is drafting new regulations to protect water supplies and the SEC has requested information from several public companies. “The SEC wants assurances that investors are being adequately informed about any lawsuits or compliance costs that companies may be facing. Companies can request that the SEC keep some information confidential, but analyzing risk factors and making appropriate public disclosures may limit real or perceived problems down the line.” For more information, contact Barry Pound at 800-559-4534 or barry@androvett.com.