Natural Gas Horizontal Well Control Act

Transcription

1 Natural Gas Horizontal Well Control Act

2 Law Update Summer of 2011, Governor Tomblin issued an Executive Order calling for Emergency Rules Environmental issues only Targeted certified plans for sites 3 acres Required water management plans, site safety plans December 2011 in Special Session HB401 December 2011, in Special Session, HB401 passed

3 Permit Fees & Bonding Permit Fees $10,000 for the initial horizontal well $5,000 for each additional well located on the same well pad $300Application fee for an impoundment $100 annual registration fee Bonding: $50,000 separate bond may be furnished for each horizontal well $250, to furnish a blanket bond

4 Notice Requirements TYPE OF NOTICE TIME REQUIREMENT 1. SEISMIC ACTIVITY NOTICE AT LEAST THREE (3) DAYS PRIOR 2. ENTRY FOR PLAT SURVEY NOTICE AT LEAST SEVEN (7) DAYS but NO MORE THAN FORTY FIVE FIVE (45) DAYS PRIOR TO SUCH ENTRY 3. NOTICE OF INTENT TO DRILL AT LEAST TEN (10) DAYS PRIOR TO FILING PERMIT APPLICATION 4. PUBLIC NOTICE AT LEAST TEN (10) DAYS PRIOR TO FILING PERMIT APPLICATION 5. NOTICEOF OF PLANNED OPERATION NOLATER THAN FILING DATE OF PERMIT APPLICATION 6. NOTICE OF APPLICATION NO LATER THAN FILING DATE OF PERMIT APPLICATION 7. NOTICE OF WELL WORK OR SITE PREPARATION WITHIN SEVEN (7) DAYS but NO LESS THAN TWO (2) DAYS

5 Public Notice & Commenting In March 2012, Established a website dedicated to information about horizontal drilling Established an online notification mechanism for permit applications received and issued Established mechanism to review & submit comments online

6 Public Website WVDEP has created a public website that includes: Information sufficient to identify the county and approximate location of each well The referenced well application number Date of application Name of the applicant GIS Data Viewer WVDEP also established a registration and e-notification process for the public to receive electronic notice of horizontal well applications Go to Click on Office of Oil & Gas Click Horizontal Drilling Permits

7 Well Plans Erosion and Sediment Control Plan Site Construction Plan Well Site Safety Plan Water Management Plan (WMP) Required if more than 210,000 gallons of water will be withdrawn during any 30-day period. Notes: All plans to be reviewed by OOG and will be mailed by OOG to the respective inspector. Reminder to check with Corp of Engineers on 404 issues. Reminder to check with Flood Plain Coordinator

8 Water Management Plan WMP shall include the following: (1) The type of water source, such as surface or groundwater, the county of each source to be used by the operation for water withdrawals, and the latitude and longitude of each anticipated withdrawal location; (2) () The anticipated volume of each water withdrawal; (3) The anticipated months when water withdrawals will be made; (4) The planned management and disposition of wastewater after completion o from fracturing, refracturing, stimulation and production activities; (5) A listing of the anticipated additives that may be used in water utilized for fracturing or stimulating the well. Upon well completion, a listing of the additives that were actually used in the fracturing or stimulating of the well shall be submitted as part of the completion log or report required by subdivision (14), subsection (a), section five of this article; (6) For all surface water withdrawals, a water management plan that includes the information requested in subdivisions (1) through (5) of this subsection and the following: (A) Identification of the current designated and existing water uses, including any public water intakes within one mile downstream of the withdrawal location (B) For surface waters, a demonstration, using methods acceptable to the secretary, that sufficient in-stream flow will be available immediately downstream of the point of withdrawal. A sufficient in-stream flow is maintained when a pass-by flow that is protective of the identified use of the stream is preserved ed immediately downstream of the point of withdrawal; and (C) Methods to be used for surface water withdrawal to minimize adverse impact to aquatic life; and (7) This subsection is intended to be consistent with and does not supersede, revise, repeal or otherwise modify articles eleven, twelve or twenty-six of this chapter and does not revise, repeal or otherwise modify the common law doctrine of riparian rights in West Virginia law.

9 Water Withdrawal Locations Identification of Water Withdrawal Locations Within forty-eight hours prior to the withdrawal of water, the operator shall identify to the department the location of withdrawal by latitude and longitude and verify that sufficient flow exists to protect designated uses of the stream. The operator shall use methods deemed appropriate by the secretary to determine if sufficient flow exists to protect designated uses of the stream. Signage for Water Withdrawal Locations All water withdrawal locations and facilities identified in the water management plan shall be identified with a sign that identifies that the location is a water withdrawal point, the name and telephone number of the operator and the permit numbers(s) for which the water withdrawn will be utilized.

10 Record Keeping & Reporting Record Keeping / Reporting (To be retained by the operator) Production Water Quantity of flow-back water from fracturing. Quantity of produced water. Method of management or disposal of produced and flow-back water. Transportation activities shall be maintained and recorded by the operator. Quantity of water transported. Collection, delivery or disposal locations. Water handling company name. Keep on file for three (3) years after withdraw activity.

11 Well Location Restrictions 100 Distance from pad to any perennial stream, natural or artificial lake, pond or reservoir, or wetland. 300 Distance from pad to naturally reproducing trout t stream. Note 1: May apply for a variance from DEP to waive these restrictions. Condition Permit per waiver Distance from pad to surface / groundwater intake or public water supply. Surface intake on a lake or reservoir measured from the border. Surface water intake on a flowing stream measured in a semi-circular i radius extending upstream of the intake. Groundwater source measured from water well head. Note 2: These restrictions will not apply to wells on a multiple pad if at least one (1) well was permitted or has an application on file prior to Dec. 14, 2011.

12 Well Location Restrictions 250 Distance from well head to existing water well or developed springs. These limitations are applicable to what was in existence on the date notice given for planned entry or notice of intent to drill. Dwellings under construction prior to this date also apply. 625 Distance from center of pad to occupied dwelling, or a building used for cattle poultry that is 2500 ft 2 or larger. Waiver may be obtained from surface owner. Operator can request a variance from Secretary, if granted conditions which may include insurance, bonding, indemnification & tech requirements.

13 W. Va. Code 22-6A-8(g)(5) All drill cuttings and associated drilling mud shall be disposed of in an approved solid waste facility. If surface owner consents, they may be managed on site in a manner approved by the secretary. Register all water supply wells with OOG. All drinking water wells within 1,500 ft. of a water supply well shall be flow tested and quality tested if requested by the water well owner.

14 Water Rights & Replacement Unless rebutted by one of the defenses, in any action for contamination or deprivation of a fresh water source or supply within one thousand five hundred feet of the center of the well pad for horizontal well, there is a rebuttable presumption that the drilling and the oil or gas well or either was the proximate cause of the contamination or deprivation of the fresh water source or supply. To rebut the presumption of liability, the operator must prove by a preponderance of the evidence one of the following defenses: (1) The pollution existed prior to the drilling or alteration activity as determined by a predrilling or prealteration water well test. (2) The landowner or water purveyor refused to allow the operator access to the property to conduct a predrilling or prealteration water well test. (3) The water supply is not within one thousand five hundred feet of the well. (4) The pollution occurred more than six months after completion of drilling or alteration activities. (5) The pollution occurred as the result of some cause other than the drilling or alteration activity. The secretary may order the operator conducting the oil or gas operation to: (1) Provide an emergency drinking water supply within twenty-four hours; (2) Provide temporary water supply within seventy-two hours; (3) Within thirty days begin activities to establish a permanent water supply or submit a proposal to the secretary outlining the measures and timetables to be used in establishing a permanent supply. The total t time in providing a permanent water supply may not exceed two years. If the operator demonstrates that providing a permanent replacement water supply cannot be completed within two years, the secretary may extend the time frame on case-by- case basis; and (4) Pay all reasonable costs incurred by the real property owner in securing a water supply.

15 Required Studies The majority of multi-mediamedia monitoring and sampling efforts will take place during May August Studies will cost ~ $580,000 thru WVU Also, leveraging resources thru WVU that will include access to the Dept. of Energy s National Energy Technology Laboratory s air monitoring trailer and staff support, estimated at ~ $425,000

16 Required Studies Timeline The legislatively mandated studies are on tight timelines: 1) December 31, 2012 study dust, volatile organic compounds, light, & noise 2) January 1, pit and impoundment safety study - will focus on structural integrity, radioactivity, drilling waste, and groundwater associated with pits 3) July 1, 2013 another air quality report on whether additional regulations may be necessary

17 Rulemaking Drafting Oil and Gas Rule to implement 6A Environmental Advisory Council meeting June 21 Last day to file agency approved rule is August 31 Will be crafted similar to current rule 35CSR4 and cover much of the same areas Other areas that the draft rule may address or touch on include (but are not limited to): Certificates of approval Design & construction requirements for centralized pits Casing & cementing Well site safety plans Water well testing Requiring mineral tract boundaries on plats Submittal of as drilled location information Water management plans and stream gauging Reporting on produced natural gas liquids and fracturing additives Future rulemaking may include: Plugging horizontal wells, Karst, additional water well testing (i.e., methods for testing water flow and quality), civil action for contamination of fresh water, and the results of any studies