DISCLAIMER. Presentation is not legal advice. Presentation is designed to advise the public on steps taken by Broome County

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1 DISCLAIMER Presentation is not legal advice. Presentation is designed to advise the public on steps taken by Broome County Our research Our plans I suggest that individuals and coalitions retain their own attorneys for advice.

2 Natural Gas Industry stages. Each stage has different issues Geological testing, seismic testing Drilling/Exploration/Frac ing Production Transmission, storage, distribution

3 Marcellus Shale Natural Gas Play There are obviously many environmental, legal and political issues attached to gas drilling. Gas deposits have the potential to increase property values, sales tax revenues and personal income. We want County residents and taxpayers to benefit from these economic opportunities. Residents and local leaders are also properly concerned with potential water and soil contamination, damage to roads, noise pollution, air pollution and similar issues. Our job is to balance these various and sometimes competing interests. Barbara Fiala, July 8, 2008.

4 Marcellus Shale Natural Gas Play Actions by County Administration. Due Diligence/Patience Balance opportunity with protection Learn from other communities Rely on expert opinions Draft documents/lls Draft RFPs/leases Municipal Agency Cooperation

5 Natural Gas Plays Chemung County Trenton Black River Shale Rural setting Focus on testing & drilling/exploration. Ft Worth Barnett Shale; mature natural gas play/industry. Rural, suburban & urban setting; increased public debate. Focus on geological testing, drilling/exploration, production & transmission. Broome County Marcellus Shale; natural gas industry/play has not yet developed Setting?????? Focus on drilling/exploration

6 Geologic/Seismic Testing Thumper trucks. Sound waves are sent underground. Pending seismic test permit applications NYS Highway Law Title to road way County own land Simple easement Abutting landowners

7 Natural Gas Production Compressors--lift the gas from the well and pump the gas along the sales lines. Separators-- isolate the extracted gas from waste water and other contaminants. Waste water tanks-- store the waste water and contaminants before they are trucked away. Each well site looks different: Producer Number of wells on pad and well pressure Pressure in transmission lines Number of wells in the play Compressors get larger as number of wells in play increase.

8 Producing Wells Chemung Well head, compressor, separators and waste tank. Compressor noise is low; ICU County

9 Producing Wells-Chemung Rural settings. Vertical well, no fracturing. Trenton Black River formation. County

10 Non Producing Well-Chemung County

11 Natural Gas Play... the size requirements for drilling sites, usually 40 acres or more, pretty much guarantees that well sites will be in very rural settings... Southern Tier East Regional Planning Board. DEC website photo.

12 FT WORTH Barnett Shale, similar to Marcellus shale? Industry is fully engaged in testing, drilling/exploration, production & transmission. Rural, suburban & urban settings. Drill Rigs Horizontal drilling Drill pits-closed loop system Decibel testing Frac ing Frac ponds Storage tanks Producing wells Well heads Compressors Separators Waste tanks

13 Rural vs Urban Well site Downtown Ft Worth Well has been drilled. Frac process not completed. Driller is considering frac tanks or frac pond. Ft Worth photo

14 Rural vs Urban Well Site Downtown Ft Worth. Asbestos wrap on site. Sound measuring equipment. Photo courtesy Don Behrens

15 DRILL RIG HIGH IMPACT Chesapeake drill rig. High Impact: Located within 600 feet of house, school, church or non industrial building. City of FT Worth; near a church and nestled between interstates.

16 DRILL RIG HIGH IMPACT More rigorous permit process by locality. Truck routes and emergency response measured. Ambient noise level parameters Benchmarks established Local traffic, industry. Measured daily during drilling

17 Drilling generates borings and other waste. Borings are put into open pit or steel tanks closed loop system. Disposed according to state waste management regulations. DRILL PIT. Dale Roe photo

18 DRILL PIT-Closed Loop

19 DRILL PIT- Closed Loop

20 HORIZONTAL DRILLING Fracturing (Frac ing) Requires between 800 thousand to 5 million gallons of fresh water per well bore. Chemical is added to lubricate the water; chemical is silicone based. Sand is added to the water to keep fractures open. Water pumped at 4,000+ lbs pressure Completed in stages; 4 or 5 days By product is production/salt water and contaminants ejected from wells. Typically very caustic.

21 FRAC JOB Several days. 800,000 to 5,000,000 gallons of water. Cable truck, compressor/pumping truck. Noisy Eastern Energy photo

22 FRAC POND Typically 3 million to 5 million gallons. Fresh water. Usually lined with plastic; security issues. Ponds in Ft Worth are supplied thru City water meter or private supply.

23 FRAC POND

24 Frac Tank Each frac tank; 21,000 gallons, about 175,000 lbs when full. Tanker trucks used to transport fresh water to store in frac tanks and to transport salt water from frac tanks at well site. Ft Worth photo

25 Frac Tanks Increased traffic, noise, dust & work zone size. Ft Worth photo

26 PRODUCING WELL-FT Next to Frac pond. Each well pad site is unique. There may be more than one well bore on a site. Size of equipment on each well site is different. Separators, compressors, etc are engineered for the physics of each well. WORTH

27 PRODUCING WELL-FT Separators. Gas is separated from water and contaminants. Gas is sent into lines. By product goes into waste tanks. WORTH

28 PRODUCING WELL-FT By product is held in waste tanks, then trucked away. Security issues. Thief hatches to check contents. Lightning rods. Explosions from lightning and vandalism. WORTH

29 PRODUCING WELLS-FT WORTH-One site; Two wells Waste tanks on one end. Compressor and separators on other end. Secondary concrete barrier for separators and waste tanks. NOISE

30 COMPRESSOR Compressor. Building is for noise abatement. Number one complaint in Ft Worth is noise from compressors. ICU, not.

31 PR CAMPAIGN--FT WORTH Well sites in suburban & urban areas. New issues surrounding production and transmission. More vocal opposition. Billboards; Mr. Jones Shale TV Online broadcasting Local TV anchor personalities Citizens of the Shale

32 ACTUAL ISSUES in FT WORTH POSSIBLE ISSUES in BROOME COUNTY? More high impact permit applications; suburban & urban locations. Disposal of production/salt water: Regulated by state. Trucked or piped away to disposal wells. Preferred option is recycle the water. Damage to roads; traffic in residential neighborhoods. Emergency response, infrequent incidents. Blowouts are rare; one known blowout during frac. Fires by vandalism or lightning strikes. Available workforce; worker error. Noise from drill rigs and compressors. Location of new pipelines. Eminent domain. Very controversial. Financial accounting of royalty payments.

33 NYS DEC NYS Pre-emption of gas drilling regulation. NYS Regulations (DEC permit) address: Spacing units. Setback requirements. Financial requirements for well abandonment. Drill casing; related operational requirements. Waste disposal, prevention of pollution. New GEIS by DEC Issues can be addressed in leases.

34 COUNTY ACTIONS Consult with experts Leases/RFPs Local Laws/Regulations Public Agency Cooperation.

35 BROOME COUNTY--LEASES RFP; Leases; Balance opportunity with protection. Contract clauses. Marcellus Shale only???? Request lessee commitments County wide???? Closed loop drill system for drilling and frac Frac during daytime only. Noise management at producing wells. Water supply/disposal of production water. Set backs, security. Roads specs for access roads, location, route. Incidental substances produced. Reclamation parameters. Record keeping. Standard lease clauses re indemnity, assignments, etc.

36 Local Laws/Regulations Road preservation LL Route designation Benchmark condition of roads Maintenance agreement, indemnity and bond for damage Road maintenance fee for enhanced wear and tear Noise abatement. Permit classification; closest buildings. Benchmark ambient noise levels of site Permitted ambient noise levels with drilling/production Security Pre-emption issue Fencing at site/set backs. Closed loop system Access road for emergency response

37 Municipal Cooperation I have told our County Department Heads that our information and research will be shared with the local municipalities. Barbara Fiala July 8, 2008 County Exec. invite to localities and BOCES Share information Municipal attorneys meeting Discussing RFPs Uniform local laws Coalitions with municipalities Information for residents Meeting with private coalitions County Natural Gas web page

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