New NRDC analysis finds major gaps in state oil and gas rules meant to protect communities

WASHINGTON, D.C. — A new report from NRDC finds that the 12 largest oil-and gas-producing states lack comprehensive regulations necessary to keep pace with the public health and environmental pollution hazards associated with modern drilling and fracking—leaving residents and workers exposed as production expands and federal safeguards remain riddled with loopholes.

The report, How States Stack Up on Oil and Gas Regulation: States are Not Adequately Protecting Their Communities from the Hazards of Drilling, reviews state regulatory changes from 2010–2025 in 10 categories directly tied to community harm, including setbacks from homes and schools, requirements for plugging idle wells, bonding and other financial assurances, notice and baseline water testing before drilling, and how states manage and dispose of oil and gas waste.

The report finds that while every state reviewed has updated some regulations over the past 15 years, no state has adequately updated protections across all 10 issue areas—and some states have weakened rules during that period.

Following is a statement from Amy Mall, director of Fossil Fuels at NRDC (Natural Resources Defense Council):

“States have the authority—and the responsibility—to protect people living and working near oil and gas operations, but this report shows they are not doing nearly enough. No state is checking every box on basic safeguards like meaningful setbacks, timely plugging of idle wells, strong financial assurance, and responsible waste management. With health risks well documented from dangerous pollution—especially for babies and children—states should be closing these gaps, not leaving families to bear the costs of weak rules and inconsistent enforcement.”

Key findings include:

• Setbacks remain dangerously inadequate. Three states—Alaska, New Mexico, and Oklahoma—have no statewide setback regulations for homes or schools that apply to oil and gas operations. Where setbacks exist, several states allow wells as close as 200 feet from sensitive locations, and most setbacks fall far short of what health experts recommend.

• Idle wells can remain unplugged indefinitely. Every state’s rules are undermined by extension processes that can be renewed multiple times, allowing wells to remain unplugged indefinitely—despite the pollution and climate risks posed by nonproducing wells.

• Bonding is not sufficient to cover cleanup. The report finds that financial assurance amounts in these states are generally insufficient to cover the true costs of plugging wells and reclaiming sites—raising the risk that taxpayers are left with the pollution and the clean-up bill.

• Waste rules have major loopholes. Only Alaska completely prohibits operators from permanently burying any waste on-site. The report also finds that some form of drilling waste “land spreading” is allowed across all 12 states reviewed.

• Produced-water road spreading remains a serious concern. Only Colorado, New Mexico, and Pennsylvania prohibit spreading produced water on roads. (The report notes that in Pennsylvania, residents report the practice has continued despite the state no longer authorizing it.)

• Wastewater discharges to surface waters are still permitted in most states. Only California, New Mexico, and North Dakota prohibit the discharge of oil and gas wastewater into rivers and streams.

• Local control is often constrained. Nine of the 12 states support some level of local control over oil and gas operations, but the report finds that local authority has been completely curtailed in Louisiana, Texas, and Ohio.

Why it matters

The report summarizes a growing body of peer-reviewed research linking proximity to oil and gas operations with significant adverse health outcomes—particularly for infants and children. Studies have found increased risks of adverse birth outcomes among babies born to mothers living near oil and gas operations during pregnancy, with some research finding elevated risks as far as 10 miles from oil and gas activities. Research has also found elevated risks of certain childhood cancers and increased asthma severity, including higher rates of pediatric hospitalizations.

The report further notes that longstanding loopholes in federal laws—including the Safe Drinking Water Act, the Clean Air Act, and the Resource Conservation and Recovery Act—leave critical gaps in protections from groundwater contamination, toxic and radioactive waste, and dangerous air pollution.

View the report here.

### 

NRDC (Natural Resources Defense Council) is an international nonprofit environmental organization with more than 3 million members and online activists. Established in 1970, NRDC uses science, policy, law and people power to confront the climate crisis, protect public health and safeguard nature. NRDC has offices in New York City, Washington, D.C., Los Angeles, San Francisco, Chicago, Beijing and Delhi (an office of NRDC India Pvt. Ltd).