Coach Mike Mularkey might not be around for the move.

The Jaguars fired general manager Gene Smith on Monday after four disappointing seasons, including the worst year in franchise history.

Mularkey could be next.

Owner Shad Khan is waiting to decide Mularkey's fate until he hires a new general manager, which could happen this week.

Mularkey failed to make the Jaguars (2-14) better in his first season, setting a team record for losses and dropping eight games by 16 or more points.

Smith was the architect of the roster. He had been with the team since its inception in 1994, working his way up from regional scout to general manager. He has been GM since 2009, compiling a 22-42 record. Not one player he acquired made the Pro Bowl.

"Now it is time for the Jacksonville Jaguars to begin a new chapter," Khan said in a statement. "We're not looking back. I've made it clear from Day One that we pledge nothing less than to deliver the first Super Bowl championship to Jacksonville. Our fans have been remarkably loyal over the years, and they were truly outstanding this past season. We simply must do better for our fans."

Khan said the search for a new GM will begin immediately.

Arizona director of player personnel Jason Licht, San Francisco director of player personnel Tom Gamble, and Atlanta director of player personnel David Caldwell have been mentioned as potential replacements.

"I'm determined to find the right man to lead our football operations, someone who shares my vision, understands the commitment we will demand and is qualified and ready to seize this opportunity," Khan said.

Khan informed Smith of his decision Monday morning and then delivered the news to Mularkey.

Mularkey said he received no assurances he would be retained for a second season.

"It was a conversation about Gene's status," said Mularkey, the former Buffalo Bills head coach who now has lost 20 of his last 23 games. "My status was not discussed, and I won't go into detail what was. But until I'm told otherwise, I'm the head coach of this team."

So the Jaguars are in limbo again, much like they were late last season when Khan bought the team from Wayne Weaver for $770 million. Weaver fired coach Jack Del Rio the same day he gave Smith a three-year extension despite Smith's numerous mistakes in the draft and in free agency.

Smith handled the coaching search, which started and ended with Mularkey.

But the Jaguars made no progress under Mularkey, finishing the year ranked 29th in offense and 30th in defense.

"You knew something was going to happen," defensive tackle Terrance Knighton said. "You didn't know where it was going to start. It obviously started from the top and it will probably make its way down."

Knighton is one of numerous free agents who could make the Jacksonville job enticing for prospective GMs. The new GM would be able to rebuild the roster, and the Jaguars have plenty of room under the salary cap and few dead-money contracts.

Nonetheless, changes are never easy inside a locker room.

"With a year like this, you can point fingers everywhere," tight end Marcedes Lewis said. "I'm not sure what the final straw was, but it happened. Kind of got to move forward and do what you do."

Smith changed the way Jacksonville approached personnel moves. He made character as important as ability, but it never paid off the way he envisioned.

Finding talent seemed to be the main issue.

Smith whiffed on offensive tackle Eben Britton (39th overall pick in 2009), defensive tackle Tyson Alualu (10th pick in 2010) and quarterback Blaine Gabbert (10th pick in 2011). Smith traded up to select Gabbert even though several teams with quarterback needs passed on the former Missouri starter.

He also drafted a punter in the third round in April, a move that was mocked locally and nationally.

Equally alarming for Khan had to be Smith's penchant for overpaying in free agency: Torry Holt, Aaron Kampman, Paul Posluszny, Clint Session, Dawan Landry, Laurent Robinson and Aaron Ross.

Smith did hit on some players, including left tackle Eugene Monroe (eighth pick in 2009), cornerback Derek Cox (73rd pick in 2009) and receivers Cecil Shorts (114th pick in 2011) and Justin Blackmon (fifth pick in 2012). But none of those starters has become a star. And Smith gave up a second-round pick to get Cox and a fourth-rounder to trade up and get Blackmon.

Smith's most controversial act came in April, when he chose punter Bryan Anger in the third round (70th pick). Anger was terrific as a rookie, but adding him never seemed like the best call for a team that needed talent and depth at so many other positions.

Smith defended the pick by saying he would "rather take a starter over a backup." Terry McDonough, the team's personnel director, challenged reporters to compare Anger to other third-rounders in four years and see who has been more productive.

Eight months later, quarterback Russell Wilson (75th pick) has Seattle in the playoffs. The Jaguars, meanwhile, are out of the postseason for the 11th time in the last 13 years. And they're looking for a new GM and maybe a new coach.

"Obviously, 2-14 isn't the season you want to kind of hang your hat on," running back Maurice Jones-Drew said. "When you don't produce, this is what happens."

___

Online: http://pro32.ap.org/poll and http://twitter.com/AP_NFL

Predictably, they failed. The ubiquitous and huge security force policing the World Economic Forum in Davos carried the women away, kicking and screaming.

The women, from Ukrainian feminist activist group Femen, scaled a fence and set off pink flares in the protest Saturday. Their chests were painted with "SOS Davos," as they sought to call attention to poverty of women around the world.

Critics of the Davos forum say the business and political leaders at the gathering spend too little time doing concrete things to solve the world's problems and help the needy.

Mortgage buyer Freddie Mac said Thursday that the rate on the 30-year loan dropped to 3.40 percent. That's down from last week's rate of 3.49 percent, which was the lowest since long-term mortgages began in the 1950s.

The average on the 15-year fixed mortgage, a popular refinancing option, fell to 2.73 percent, down from the record low of 2.77 percent last week.

The Fed is spending $40 billion a month to buy mortgage-backed securities. The goal is to lower mortgage rates and help the housing recovery. Fed Chairman Ben Bernanke says the program will continue until there is substantial improvement in the job market.

Some economists expect mortgage rates to fall even further because of the Fed's bond purchases.

The housing market already is benefiting from the lowest mortgage rates on record.Sales of both previously occupied and newly built homes in the U.S. are up from last year. Home prices are rising more consistently. And builders are more confident in the market and are starting to build more homes.

The broader economy is also likely to benefit from a revival in the housing market. When home prices rise, Americans typically feel wealthier and spend more.

Still, the housing market has a long way back. Sales and construction rates remain below healthy levels.

And some economists question whether lower rates will make much of a difference. The average rate on the 30-year fixed mortgage has been below 4 percent since early December. So most people who can qualify have likely already taken advantage of the lower rates.

Many people who would like to refinance or buy a home can't because they fail to meet stricter lending requirements or don't have enough money to make a down payment.

To calculate average rates, Freddie Mac surveys lenders across the country on Monday through Wednesday of each week.

The average does not include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.

The average fee for 30-year loans was 0.6 point, unchanged from last week. The fee for 15-year loans also held steady at 0.6 point.

The average rate on one-year adjustable-rate mortgages dipped to 2.60 percent from 2.61 percent. The fee for one-year adjustable rate loans was unchanged at 0.4 point.

The average rate on five-year adjustable-rate mortgages fell to 2.71 percent from 2.76 percent. The fee remained at 0.6 point.

Coach Mike Mularkey might not be around for the move.

The Jaguars fired general manager Gene Smith on Monday after four disappointing seasons, including the worst year in franchise history.

Mularkey could be next.

Owner Shad Khan is waiting to decide Mularkey's fate until he hires a new general manager, which could happen this week.

Mularkey failed to make the Jaguars (2-14) better in his first season, setting a team record for losses and dropping eight games by 16 or more points.

Smith was the architect of the roster. He had been with the team since its inception in 1994, working his way up from regional scout to general manager. He has been GM since 2009, compiling a 22-42 record. Not one player he acquired made the Pro Bowl.

"Now it is time for the Jacksonville Jaguars to begin a new chapter," Khan said in a statement. "We're not looking back. I've made it clear from Day One that we pledge nothing less than to deliver the first Super Bowl championship to Jacksonville. Our fans have been remarkably loyal over the years, and they were truly outstanding this past season. We simply must do better for our fans."

Khan said the search for a new GM will begin immediately.

Arizona director of player personnel Jason Licht, San Francisco director of player personnel Tom Gamble, and Atlanta director of player personnel David Caldwell have been mentioned as potential replacements.

"I'm determined to find the right man to lead our football operations, someone who shares my vision, understands the commitment we will demand and is qualified and ready to seize this opportunity," Khan said.

Khan informed Smith of his decision Monday morning and then delivered the news to Mularkey.

Mularkey said he received no assurances he would be retained for a second season.

"It was a conversation about Gene's status," said Mularkey, the former Buffalo Bills head coach who now has lost 20 of his last 23 games. "My status was not discussed, and I won't go into detail what was. But until I'm told otherwise, I'm the head coach of this team."

So the Jaguars are in limbo again, much like they were late last season when Khan bought the team from Wayne Weaver for $770 million. Weaver fired coach Jack Del Rio the same day he gave Smith a three-year extension despite Smith's numerous mistakes in the draft and in free agency.

Smith handled the coaching search, which started and ended with Mularkey.

But the Jaguars made no progress under Mularkey, finishing the year ranked 29th in offense and 30th in defense.

"You knew something was going to happen," defensive tackle Terrance Knighton said. "You didn't know where it was going to start. It obviously started from the top and it will probably make its way down."

Knighton is one of numerous free agents who could make the Jacksonville job enticing for prospective GMs. The new GM would be able to rebuild the roster, and the Jaguars have plenty of room under the salary cap and few dead-money contracts.

Nonetheless, changes are never easy inside a locker room.

"With a year like this, you can point fingers everywhere," tight end Marcedes Lewis said. "I'm not sure what the final straw was, but it happened. Kind of got to move forward and do what you do."

Smith changed the way Jacksonville approached personnel moves. He made character as important as ability, but it never paid off the way he envisioned.

Finding talent seemed to be the main issue.

Smith whiffed on offensive tackle Eben Britton (39th overall pick in 2009), defensive tackle Tyson Alualu (10th pick in 2010) and quarterback Blaine Gabbert (10th pick in 2011). Smith traded up to select Gabbert even though several teams with quarterback needs passed on the former Missouri starter.

He also drafted a punter in the third round in April, a move that was mocked locally and nationally.

Equally alarming for Khan had to be Smith's penchant for overpaying in free agency: Torry Holt, Aaron Kampman, Paul Posluszny, Clint Session, Dawan Landry, Laurent Robinson and Aaron Ross.

Smith did hit on some players, including left tackle Eugene Monroe (eighth pick in 2009), cornerback Derek Cox (73rd pick in 2009) and receivers Cecil Shorts (114th pick in 2011) and Justin Blackmon (fifth pick in 2012). But none of those starters has become a star. And Smith gave up a second-round pick to get Cox and a fourth-rounder to trade up and get Blackmon.

Smith's most controversial act came in April, when he chose punter Bryan Anger in the third round (70th pick). Anger was terrific as a rookie, but adding him never seemed like the best call for a team that needed talent and depth at so many other positions.

Smith defended the pick by saying he would "rather take a starter over a backup." Terry McDonough, the team's personnel director, challenged reporters to compare Anger to other third-rounders in four years and see who has been more productive.

Eight months later, quarterback Russell Wilson (75th pick) has Seattle in the playoffs. The Jaguars, meanwhile, are out of the postseason for the 11th time in the last 13 years. And they're looking for a new GM and maybe a new coach.

"Obviously, 2-14 isn't the season you want to kind of hang your hat on," running back Maurice Jones-Drew said. "When you don't produce, this is what happens."

___

Online: http://pro32.ap.org/poll and http://twitter.com/AP_NFL

at the close on the third day of the second cricket test between

South Africa and New Zealand at St. George's Park on Sunday:

South Africa won the toss and elected to bat

South Africa first innings 525 for eight declared (F. Du

Plessis 137, H. Amla 110, D. Elgar 103 not out)

New Zealand first innings 121 all out (BJ Watling 63; D.

Steyn five for 17)

New Zealand innings

M. Guptill b Kleinveldt 48

B. McCullum lbw b Peterson11

K. Williamson b Peterson11

D. Brownlie not out 44

D. Flynn c De Villiers b Kleinveldt0

BJ Watling not out41

Extras (lb 1, w 1) 2

Total (for four wickets; 67 overs) 157

Fall of wickets: 1-40, 2-64, 3-84, 4-84.

Still to bat: C. Munro, D. Bracewell, N. Wagner, J. Patel,

T. Boult.

Bowling: Steyn 13-1-41-0, Morkel 13-4-32-0 (1w), Kleinveldt

12-8-31-2, Peterson 20-11-29-2, Kallis 5-3-8-0, Smith 1-0-10-0,

Petersen 3-0-5-0.

(Compiled by Jason Humphries in Durban; Editing by Clare

Fallon)

Life at the zoo can be a ball, literally.

The belle of the ball at the San Diego Zoo on Thursday was , the newest addition to the zoo's panda family, who was captured on camera enjoying a slew of new toys, including a plastic ball.

"He was really enjoying hugging it, rolling on it and doing those kinds of rolly, tumbling things that panda cubs are so notoriously cute for doing," veterinarian Beth Bicknese .

The ball wasn't all fun and games for Xiao Liwu, however, as it was used, along with a stick of bamboo and a plastic ring shaped like a doughnut, at his most recent checkup to test his coordination, growth and development.

The good news?Xiao Liwu, who was born at the zoo in July, passed his exam - comprised of 10 to 15 measurements, according to the zoo - with flying colors.

'Everything looks good he's still a little on the smaller side but overall he's in good body condition, everything's growing, his teeth are coming in,' Meg Sutherland-Smith, the zoo's associate director of veterinary services, .

Xiao Liwu, whose name, which means "little gift," , weighed just four pounds when he became the sixth panda cub born at the zoo under a 12-year agreement with China that included the loan of two giant pandas.At his exam on Thursday, his 19 th since his birth, the 20-week-old cub weighed in at 14.5 pounds.

Zoo officials are waiting to put Xiao Liwu on public display at the zoo until he develops the "bear behavior" of following his mother and being a better climber, according to Bicknese.

Until then, Xiao Liwu's fans can still keep track of the playful cub online with the , a live stream that has documented the cub's nearly every movement since his birth.

To watch the baby panda's latest veterinary exam,

World number four Rose and ninth-ranked Dufner join former world number one Martin Kaymer and Ryder Cup teammates Sergio Garcia and Paul Lawrie, who announced on Monday they would play in the $2.5 million event.

Olazabal, 46, captained Europe to a memorable comeback victory over the United States in the biennial Ryder Cup in September and won his last title in 2005.

"Jose Maria Olazabal is a golfing great... he is assured of an especially warm reception at Doha Golf Club," Qatar Golf Association president Hassan Al Nuaimi said on the European Tour website (www.europeantour.com).

The January 23-26 event is part of the European Tour's Middle East swing which also includes next week's Abu Dhabi Championship featuring world number one Rory McIlroy and 14-times major winner Tiger Woods and the January 31-February 3 Dubai Desert Classic.

(Writing by Tom Pilcher, Editing by Pritha Sarkar)

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1940s-1960s: "Little Chicago"

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That's not a good nickname to be carrying around in the Midwest's heyday of mobsters, and the monicker in the "corruption"-laden little Ohio metropolis. "Steubenville is trying to live down its reputation for brothels, gambling joints, and crooked machine politics," .During the late 80s, according to Grace, the city began to take its corrupt officials to task, but...

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1996-1997: The United States vs. The City of Steubenville

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After a year-long investigation, the Justice Department made Steubenville's police department just the second in history forced to sign an agreement setting up new measuresto combat police corruption under the 1994 Crime Bill. Here is part ofon misconduct involving the city police and the city manager the same two offices, it turns out, that spoke out in this weekend's new fact-finding mission:

The United States brings this action to enforce Section 210401 of the Violent Crime Control and Law Enforcement Act of 1994, 42 U.S.C. 14141. The United States alleges that officers of the Steubenville Police Department have engaged in a pattern or practice of conduct that deprives persons of rights, privileges, or immunities secured and protected by the Constitution and the laws of the United States, and that the City of Steubenville, the Steubenville Police Department, and the Steubenville City Manager (in his capacity as Director of Public Safety) have caused and condoned this conduct through inadequate policies and failure to train, monitor, supervise, and discipline police officers, and to investigate alleged misconduct.

Part of that agreement involved promising to start a new training program for all police officers, including a special section on domestic violence, as well as a new internal-affairs policy.

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The Celebrity Testimonies

When it comes to famous people claiming Steubenville as home, Dean Martin is the crown jewel. Then there's former porn star Traci Lords,who fled town. And, as has been making ripples on Twitter over the last week, there is the experience of Rza, the poetic rapper and filmmaker most famous for leading the Wu-Tang Clan.In his 2010 memoirThe Tao of Wu, Rza wrote the following of his hometown:

Sheriff Abdalla and Rape

The New York Times that first brought the case to national attention focused on the plight of city police chiefWilliam McCafferty, who was having trouble gathering eyewitness accounts. Collecting that kind of information was ostensibly the point of the efforts by Anonymous, but the hacking collective has focused instead onJefferson County Sheriff Fred Abdalla, suggesting that he is close with Steubenville football coach Reno Saccoccia and that he was responsible for "inadvertently" deleting key video evidence.Over the weekend Abdalla, but as the spotlight refocuses on Abdalla, stories have surfaced all across social media suggesting that the sheriff might not be sympathetic to rape victims. Here's currently being highlighted by Anonymous:

Trippanti has not yet responded to a request for clarification from The Atlantic Wire, but according to LocalLeaks, to get the full story, but according to LocalLeaks, the WikiLeaks-style site amassing tips with Anonymous, the alleged victim of the controversial August incident had a similar experience talking to prosecuting attorney for Jefferson County, who is also the mother of a football playerfor allegedly throwing the party in question.

Meanwhile, the Steubenville Facts blog put together by city officialsthis weekend, , explains why Sheriff Abadala hasn't been as involved as much as people watching the case would like to him to be:

Crimes allegedly committed within the City of Steubenville fall within the jurisdiction of Steubenville Police. Crimes allegedly committed outside of the City but within Jefferson County fall within the jurisdiction of the County Sheriff.Because the information about alleged criminal activities in this case was first reported to city officials, the Steubenville Police Department investigated the case with the assistance of the Ohio Bureau of Criminal Identification and Investigation.

Steubenville Facts

"When people are saying that our police department did not follow procedure, that the football team runs the city, that is not the case," Steubenville City ManagerCathy Davisonannouncing the new fact-finding mission by local leaders to counter the Anonymous leaks."They went by the book. Everything was handled in an aboveboard fashion to make sure that the case can benefit from the fullest extent of the law."

And while many of the details of the case remain sealed by a judge's gag order on town officials ahead of initial hearings in the case (), the siteseems more defensive than informative. The "official" blog highlights several talking points, including why the local police acted to the best of their ability:

The Chief of Steubenville Police has been in this position for 13 years and is not a graduate of Steubenville City Schools (home of the Big Red sports teams). His child attends another school district.

The fact-finding site also seems to be setting expectations for a judicial timetable...

With respect to other charges that could be brought aside from allegations of sexual assault, prosecutors and police have up to two years (for misdemeanors) and up to six years (for felonies) to bring charges. Often, charges are deferred until after a trial, to evaluate the sworn testimony of witnesses at the trial.

...and a plea for patience:

Ohio public records law provides the public the ability to review nearly the entire work product of the investigators once the case is completed.This will allow anyone, within the confines of the Public Records Act, to scrutinize what occurred between the reporting of the incident and the trial.

The comments by U.S. Deputy National Security Adviser Ben Rhodes were the clearest signal yet that, despite initial recommendations by the top military commander in Afghanistan to keep as many as 15,000 troops in the country, Obama could opt to remove everyone, as happened in Iraq in 2011.

Asked about consideration of a so-called zero-option once the NATO combat mission ends at the end of 2014, Rhodes said: "That would be an option that we would consider."

Rhodes made clear that a decision on post-2014 troop levels is not expected for months and will be made based on two U.S. security objectives in Afghanistan - denying a safe haven to al Qaeda and ensuring Afghan forces are trained and equipped so that they, and not foreign forces, can secure the nation.

"There are, of course, many different ways of accomplishing those objectives, some of which might involve U.S. troops, some of which might not," Rhodes said, briefing reporters to preview Karzai's visit.

In Iraq, Obama decided to pull out all U.S. forces after failing in negotiations with the Iraqi government to secure immunity for any U.S. troops who would remain behind.

The Obama administration is also insisting on immunity for any U.S. troops that remain in Afghanistan, and that unsettled question will figure in this week's talks between Obama and Karzai and their aides.

"As we know from our Iraq experience, if there are no authorities granted by the sovereign state, then there's no room for a follow-on U.S. military mission," said Douglas Lute, special assistant to Obama for Afghanistan and Pakistan.

Jeffrey Dressler, an Afghanistan expert at the Washington-based Institute for the Study of War who favors keeping a larger presence in Afghanistan, questioned whether the White House comments might be part of a U.S. bargaining strategy with Kabul.

"I can't tell that they're doing that as a negotiating position ... or if it is a no-kidding option," Dressler said. "If you ask me, I don't see how zero troops is in the national security interest of the United States."

SHOULDN'T JUST "LEAVE THEM"

U.S. officials have said privately that the White House had asked for options to be developed for keeping between 3,000 and 9,000 troops in the country, a lower range than was put forward initially by General John Allen, the top U.S. and NATO commander in Afghanistan.

Allen suggested keeping between 6,000 and 15,000 troops in Afghanistan.

Retired General Stanley McChrystal, a former U.S. commander of the Afghan mission who resigned in 2010, said in an interview with Reuters on Monday there was a value to having an overt U.S. military presence in Afghanistan after 2014 - even if it wasn't large.

"The art, I would say, would be having the smallest number so that you give the impression that you are always there to help, but you're never there either as an unwelcome presence or an occupier - or any of the negatives that people might draw," he said, without commenting on any specific numbers.

The United States now has about 66,000 troops in Afghanistan and Rhodes confirmed there would be steady reductions in troop levels through 2014.

Also on the agenda for the Obama-Karzai talks are tentative reconciliation efforts involving Taliban insurgents. Those efforts have shown flickers of life after nearly 10 months of limbo.

Still, hopes for Afghan peace talks have been raised before, only to be dashed. Last March, the Taliban suspended months of quiet discussions with Washington aimed at getting the insurgents and the Karzai government to the peace table.

Washington has also had a strained relationship with Karzai, who in October accused the United States of playing a double game in his country by fighting the war in Afghan villages instead of going after those in Pakistan who support insurgents.

Karzai will give a joint press conference with Obama on Friday and will visit the Pentagon on Thursday, meeting with Defense Secretary Leon Panetta and the U.S. top military officer, General Martin Dempsey.

Still, it is unclear what, if any, concrete agreements might emerge from Karzai's visit to Washington.

Michael O'Hanlon, a defense analyst at Brookings, cautioned against expecting too much from the visit, which he said is best seen as an opportunity for Washington and Kabul to "shore up this partnership that has had such a troubled status and a weak foundation."

"There are a lot of scars in this relationship. There are a lot of hurt feelings," O'Hanlon said. "It's sort of like a bad marriage and it's very easy for just the wrong word to immediately set people off in an emotional way."

(Additional reporting by David Alexander.; Editing by Eric Beech and Christopher Wilson)

Following Lisa Jackson's resignation on Wednesday, her successor will inherit the tricky task of regulating a drilling boom that has revolutionized the energy industry but raised fears over the possible contamination of water supplies.

The controversial technique at the center of the boom, hydraulic fracturing, involves injecting millions of gallons of water laced with chemicals deep into shale rocks to extract oil and gas. It has become a flashpoint issue, putting the EPA -- charged with safeguarding the nation's water -- in the middle of a fight between environmentalists and the energy industry.

Both sides now eagerly await a major EPA research project into fracking's effects on water supplies due in 2014, as well as final rules on issues including the disposal of wastewater and the use of 'diesel' chemicals in the process.

It is unclear who will take the role, but the incoming chief may have a "huge impact" on the oil and gas industry, says Robert McNally, a White House energy adviser during the George W. Bush administration who now heads the Rapidan Group, a consulting firm.

On the one hand, energy industry and big manufacturers are warning the EPA not to impede a drilling boom that offers the promise of decades' worth of cheap energy. Meanwhile, environmentalists are pressing President Barack Obama to ensure the drilling bonanza is not endangering water resources.

"This administration clearly needs contributors to economic growth for its economic legacy as much as it needs to add to its environmental legacy," said Bruce Bullock of the Maguire Energy Institute at Southern Methodist University in Dallas.

"This appointment could be key in seeing which of those two legacies is more important."

There are many contenders for the role, but no clear front-runner as yet. Obama may seek an insider to avoid a difficult confirmation process, with possible candidates including Bob Perciasepe, the EPA deputy administrator and interim chief, and Gina McCarthy, who runs the air quality division.

Obama is unlikely to win Congressional approval for a heavy-handed regulator, and there is no suggestion of a stringent crackdown.

Even Jackson, who suffered withering criticism from big industry and Republicans for her efforts to curb pollution and limit greenhouse gas emissions, has cautiously condoned the practice as safe, while acknowledging the need for greater study and, in some cases, oversight.

"(Fracking technology) is perfectly capable of being clean," Jackson said in February. "It requires smart regulation, smart rules of the road."

Jackson's successor may now be charged with refining those rules, and both energy companies and fracking critics are anxious about the outcome.

Industry body Independent Petroleum Association of America said the EPA has "hindered development" of oil and gas for four years, and looks forward to a new chief who will promote energy drilling "hand in hand" with environmental regulation.

Executive director of the Sierra Club environmental group Michael Brune says the EPA has "unfinished business" in addressing things such as the release of methane emissions during fracking.

APPETITE TO REGULATE

Some analysts say Obama will not risk the economic stimulus of cheaper, domestic energy by pushing for tougher regulations. The oil sector is one of the few bright spots in the U.S. economy; natural gas prices are near their lowest in a decade, a boon for manufacturers, and U.S. oil output is the highest in 18 years.

"Even before (Jackson's resignation) there didn't seem to be much of an appetite in the White House to regulate shale drilling on a federal level in the next couple of years," says Nitzan Goldberger, U.S. energy policy analyst with Eurasia Group.

But big drillers such as ExxonMobil and Chesapeake who have plowed billions of dollars into shale fields are watching carefully for any sign of new rules or oversight.

Mark P. Fitzsimmons, a former lawyer in the Department of Justice's environmental division, and now a partner at Steptoe & Johnson LLP in Wash DC, says there is "a risk of overregulation." Some drilling activity has already slowed sharply this year due to the slump in natural gas prices.

"Regulatory overlays that add to the cost of production will further slow down development" but won't stop it, he said.

While fracking technology has been around for decades, it has only gained widespread use across dozens of states in recent years. The EPA, like many groups, has struggled to keep up with the expansion, according to Government Accountability Office reports released earlier this year.

After years in which states were mostly responsible for regulating onshore drilling, the new EPA administrator will be pressed to take a more central role.

A year ago, in the first U.S. government report of its kind, the EPA drew a potential link between water contamination in rural Pavillion, Wyoming and fracking, based on samples of ground water from the area. That study has been contested, and subsequent research has been inconclusive.

A firmer word on the impact may not emerge until 2014, when the EPA is expected to release the first exhaustive in-depth government study on the long-term effects of fracking on drinking water, commissioned by Congress over two years.

While climate change issues and air pollution may remain larger agency priorities, fracking is moving up the agenda.

"I don't think they would be capable of ignoring something that Matt Damon makes a movie about," said Fitzsimmons.

Damon and John Krasinski star in "Promised Land," a new film that opened on Friday exploring the social impact of fracking. It received mixed reviews from critics, but is being closely watched by an energy industry that fears it could further antagonize public opinion over domestic drilling.

A Gallup poll this year showed drinking water contamination is the leading environmental concern among Americans.

DIESEL, WASTEWATER AND FLARING

The debate rages over a diverse range of issues.

While fracking was exempted from the Federal Clean Water Act in 2005, operations that used diesel fuel, which contains a number of toxic chemical compounds, were not exempted.

However, what exactly constitutes "diesel" has been a bone of contention among oil firms and environmental groups.

"The question is how to define "diesel" - broadly or narrowly," says consultant McNally.

"It's a big issue especially for Bakken producers," he said, referring to the region of North Dakota where crude oil output has more than tripled in two years.

The EPA published a draft definition in May, which met with criticism from the industry and some legislators, but it will fall to the new administrator to set a final definition.

Under Jackson, the EPA also said it would begin to regulate the millions of gallons a day of wastewater that is withdrawn from wells after the fracking process, probably in 2014. This is usually trucked offsite and sometimes re-injected elsewhere, although increasingly it is being reprocessed for further use.

And eventually, the EPA could face pressure to backtrack on previous initiatives. In April, the agency relented to pressure from the industry, giving drillers until January 2015 to end the practice of "flaring" excess natural gas from wells that were not connected to pipelines. It had initially proposed that firms cease almost immediately.

For Jackson's successor, a central question is whether the EPA takes a broader role in the industry, or, as Jackson hinted a year ago, allows state officials to call most the shots when it comes to drilling:

"It's not to say that there isn't a federal role, but you can't start to talk about a federal role without acknowledging the very strong state role."

(Additional reporting by Selam Gebrekidan and Valerie Volcovici; Editing by Joseph Radford and Andrew Hay)