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Regulation of Hydraulic Fracturing

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Regulation of Hydraulic Fracturing Municipal Analysts of NY January 20, 2012 Bill Holman Director of State Policy Duke University s Nicholas Institute – PowerPoint PPT presentation

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Title: Regulation of Hydraulic Fracturing


1
Regulation of Hydraulic Fracturing
  • Municipal Analysts of NY
  • January 20, 2012
  • Bill Holman
  • Director of State Policy
  • Duke Universitys Nicholas Institute
  • For Environmental Policy Solutions

2
Nicholas Institutes Mission
  • Help decision makers create timely, effective
    and economically practical solutions to the
    worlds most critical environmental challenges
  • We work with Duke Law School, Fuqua School of
    Business, Nicholas School of Environment, Pratt
    School of Engineering Sanford School of Public
    Policy

3
Duke and 21st Century Water Investments
  • How do we increase public private investments
    in water infrastructure?
  • What role do municipal analysts play?
  • What research and information is needed to inform
    analysts, investors, water utilities and the
    public?

4
Hydraulic Fracturing Research
  • Thermogenic methane found in drinking water in
    Marcellus region by Osborn, Vengosh, Warner
    Jackson _at_ Duke
  • Nicholas.duke.edu/hydrofracking

5
Research
  • Biogenic methane found in drinking water wells
    by Swistock _at_ Penn State

6
Research
  • Hydraulic fracturing chemicals found in
    groundwater wells by EPA in Pavillion, WY (draft
    under review)

7
Research
  • Significant estimates of methane emissions from
    gas wells and pipelines by Howarth, Santoro
    Ingraffea _at_ Cornell

8
Oil Gas Regulatory Framework
  • States are primary regulators
  • Oil Gas Commissions
  • Environmental agencies
  • Fragmented regulatory schemes
  • State Review of Oil Gas Regulation (STRONGER)
  • EPAs authority is limited
  • American Petroleum Institute HF standards

9
Regulatory Context
  • Oil gas industry is dynamic
  • New technology
  • New regions
  • State regulatory systems are reactive
  • Limited state local expertise
  • Limited data

10
Regulatory Innovation Chemical Disclosure
  • Oil Gas Compact Commission
  • Groundwater Protection Council
  • States TX, CO
  • Industry
  • EPA

11
State Environmental Regulations
12
Pre-Drilling Concerns
  • Collect baseline water air quality data
  • Require disclosure of chemicals, water use
    wastewater treatment
  • Fund regulatory programs w/ permit inspection
    fees and/or other revenues
  • Adequate penalties

13
Water Use
  • Regulate water withdrawals consider impacts on
    existing water users
  • Explore alternative sources
  • Wastewater recycling
  • brines

14
Well Bore Integrity
  • Casing cement
  • Critical to public health and groundwater
    protection
  • Poorly enforced for water wells
  • Oil gas wells?

15
Water Quality
  • Wastewater
  • Solids (TDS)
  • Salts (CL, BR)
  • Radioactivity (NORM)
  • Sediment stormwater from pad, road pipeline
    construction

16
Air Quality
  • Reduce emissions from wells, pumps, tanks
    pipelines
  • Ozone precursors
  • Particulates
  • Methane

17
Land Use State Local Roles
  • Exclusionary zones?
  • Drinking water supplies
  • Underground infrastructure
  • Property rights
  • Setbacks
  • Noise odor
  • Trucks and roads

18
Cumulative Impacts
  • Positive negative
  • NY Generic EIS
  • Delaware River Basin Commission
  • MD study
  • NC study

19
Accidents Spills
  • Storage
  • Chemicals
  • Wastewater
  • Liability
  • Performance bonds
  • Presumption
  • Strict?

20
Risks to Water Utilities
  • Competition for water resources
  • Trihalomethanes created by drinking water
    treatment
  • Conventional municipal wastewater treatment not
    designed for to treat hydrofracking wastewater
  • Underground infrastructure

21
Contact
  • http//nicholasinstitute.duke.edu
  • http//nicholas.duke.edu/
  • hydrofracking

22
Extra slides
23
Natural Gas Pros and Cons
Burns much cleaner than coal or oil, emitting approximately 45 less carbon than coal The rapid scale-up of large-scale unconventional natural gas extraction presents environmental challenges.
Emits very small amounts of sulphur dioxide, mercury, and particulate matter The cumulative impacts of natural gas drilling on communities can be significant.
Creates jobs and provides an economic boost to struggling rural communities Interfere with existing land uses, such as residential uses, and with natural resources, such as timber harvesting
24
Dan River Basin
Deep River Basin
25
(No Transcript)
26
Water Quantity
27
NYSERDA, 2009. "WATER-RELATED ISSUES ASSOCIATED
WITH GAS PRODUCTION IN THE MARCELLUS SHALE"
28
Source NPC, Prudent Development, 2011
29
Waste water management by shale gas basin
Source DOE National Energy Technology
Laboratory. 2009. Modern Shale Gas Development
in the United States A Primer
30
Natural Gas Extraction under Federal
Environmental Regulations
31
EPA Policies
  • Proposed rules to regulate ozone precursors,
    particulates and toxic air pollutants in July
    2011
  • Proposed new source performance standards for
    methane emissions from new hydraulic fracturing
    sites
  • Voluntary Natural Gas Star program

32
EPA Policies II
  • EPAs Office of Research Development (ORD)
    outlined a final plan to research impacts of
    hydraulic fracturing on drinking water resources
    in November 2011
  • US DOE has created some advisory panels and
    prepared reports

33
Shale Basins in North Carolina
Source North Carolina Geologic Survey
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