Energi CEO, Brian K. McCarthy, and Senior Vice President of Safety and Loss Prevention, Justin Russo, discuss how various state rules complicate efforts to manage environmental liabilities in this article from Business Insurance.
Though the state-by-state regulatory landscape may add complications for companies using fracking in multiple states, state regulation that is done well is a good thing for the energy business and the insurance industry, said Brian K. McCarthy, president and CEO at Energi Insurance Services Inc., a Peabody, Mass., provider of specialized energy industry insurance programs in the United States and Canada.
“States like Pennsylvania and Ohio, North Dakota, Oklahoma have really taken the lead on regulation,” Mr. McCarthy said. “The regulation is no different than the regulation on other energy sectors where the regulation is really good for insurance.”
“The American Petroleum Institute has put together some general best practices, but what we’re seeing is the states are taking the best practices to the next level,” said Justin Russo, senior vice president of safety and loss prevention at Energi. “That’s really what has to be done when there are such differences in geology.”
Solid regulation including inspection of drilling facilities reduces exposures, Mr. McCarthy said. “Today the state of Pennsylvania has hundreds of inspectors on staff,” he said. “They have resources in place.”
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