U.S. Silica Holdings Inc (SLCA), CARBO Ceramics Inc. (CRR), EOG Resources Inc (EOG): A New Back-Door Attempt to Thwart Fracking

Under the proposal, companies would have to cut in half the amount of silica exposure currently allowed for general industry and maritime workers, and by 80% in the construction industry. Part of the problem with the new rules, however, is there is a dearth of certified labs available that can measure the levels of silica dust OSHA wants to reduce them to, though the agency has magnanimously said it would be willing to delay the lab requirements for two years to allow the industry to catch up.

Most fracking sand is mined in Wisconsin because of its quartz purity (it needs to be about 99% quartz) and its high compressive strength, which needs to be between 6,000 and 14,000 psi, though Minnesota and several other states have a significant industry presence as well. Much of the sand is delivered to oil and gas industry services providers such as Halliburton, Schlumberger, and Baker Hughes, the very companies being targeted by the Justice Department probe.

Last year, as both federal workplace regulators — OSHA and the National Institute for Occupational Safety and Health — issued a safety alert over silica dust exposure, Wisconsin’s natural resources department rejected a move to regulate silica sand as a hazardous air pollutant, noting that the public was sufficiently protected by current regulations.

It would seem that when you combine this move with the other efforts of the administration to attack the oil and gas industry, the motto “if at first you don’t succeed, try, try again” is the guiding principle at work thwarting future growth.

The article A New Back-Door Attempt to Thwart Fracking originally appeared on Fool.com and is written by Rich Duprey.

Fool contributor Rich Duprey has no position in any stocks mentioned. The Motley Fool recommends Halliburton and owns shares of U.S. Silica Holdings (NYSE:SLCA).

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.