Halliburton 2011 Annual Report Download - page 31

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16
The adoption of any future federal or state laws or implementing regulations imposing
reporting obligations on, or limiting or banning, the hydraulic fracturing process could make it more
difficult to complete natural gas and oil wells and could have a material adverse effect on our liquidity,
consolidated results of operations, and consolidated financial condition.
We are a leading provider of hydraulic fracturing services. Bills have been introduced in Congress
based on assertions that chemicals used in the fracturing process could adversely affect drinking water
supplies. The proposed legislation would require federal regulation of hydraulic fracturing operations and
the reporting and public disclosure of chemicals used in the fracturing process. This legislation, if adopted,
could establish additional levels of regulation at the federal level that could lead to operational delays and
increased operating costs. At the same time, legislation and/or regulations have been adopted in several
states that requires additional disclosure regarding chemicals used in the fracturing process but that
includes protections for proprietary information. Legislation and/or regulations are being considered in
other states that could impose further chemical disclosure or other regulatory requirements (such as
restrictions on the use of certain types of chemicals or prohibitions on hydraulic fracturing operations in
certain areas) that could affect our operations. In addition, governmental authorities in various foreign
countries where we have provided or may provide hydraulic fracturing services have imposed or are
considering imposing various restrictions or conditions that may affect hydraulic fracturing operations.
We are one of several unrelated companies who received a subpoena from the Office of the New
York Attorney General, dated June 17, 2011. The subpoena sought information and documents relating to,
among other things, natural gas development and hydraulic fracturing. After discussing the requests in the
subpoena with the New York Attorney General’ s office, we responded to certain requests and supplied
certain records and information as appropriate.
The adoption of any future federal, state, or foreign laws or implementing regulations imposing
reporting obligations on, or limiting or banning, the hydraulic fracturing process could make it more
difficult to complete natural gas and oil wells and could have a material adverse effect on our liquidity,
consolidated results of operations, and consolidated financial condition. For further information, see Part I,
Item 1 “Business.”