As the Eagle Ford Shale becomes more and more prolific and as more companies rush to do business in South Texas, there are certain challenges and legal issues that all energy companies will face.

In June of this year, Gov. Rick Perry signed a law requiring hydraulic operators to disclose the chemical constituents of fluids used in the fracturing process, becoming the first state to have such a law.

Hydraulic fracturing fluid disclosure has been a controversial issue in the U.S., largely because of the potential risk that these fluids might come in contact with usable groundwater, contaminate it and cause health problems.

Under the terms of the new law, the Railroad Commission of Texas—which regulates oil and gas production—will draft hydraulic fracturing disclosure regulations. The bill passed a majority of...

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