Rick Henderson, Field Operations Supervisor DEQ Office of Oil, Gas, and Minerals

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1 Rick Henderson, Field Operations Supervisor DEQ Office of Oil, Gas, and Minerals 1

2 Contamination Conservation Uses Remediation Protection Groundwater Protection

3 DEQ Supervisor of Wells Part 615 Oil and Gas Regs Regulatory Control over all Oil and Gas activities Permitting, Drilling, Completion, Production, Remediation, Plugging, Restoration- Cradle Regulatory Framework Grave

4 Important Protections Prevention of Waste Statute Protect Public Health and Safety (Rule 1014) Set Backs (Rule 301) Houses and Water Wells Secondary Containment (Rule 1002) No Pits for Storage (Rule 1005) Clean-up of Losses 201 Criteria (Rule 1006) Spills and Losses (Rule 1008) Flow Line Abandonment (Rule 1011)

5 DEFINITIONS. (q) "Waste" in addition to its ordinary meaning includes all of the following: Unreasonable damage to underground fresh or mineral waters, natural brines, or other mineral deposits from operations for the discovery, development, and production and handling of oil or gas. The unnecessary damage to or destruction of the surface; soils; animal, fish, or aquatic life; property; or other environmental values from or by oil and gas operations. The unnecessary endangerment of public health, safety, or welfare from or by oil and gas operations. A person shall not commit waste in the exploration for or in the development, production, handling, or use of oil or gas, or in the handling of any product of oil or gas

6 Groundwater Protection Contamination Spills Losses Leaks Drips Well control Explosions Illegal dumping Accidents

7 Contamination Groundwater Protection Spills - Losses - Leaks - Drips - Well and Facility Location

8 WELL CONSTRUCTION Conductor Pipe Surface Casing Base of Fresh Water At least 100 feet into bedrock and 100 feet below all fresh water 100

9 WELL CONSTRUCTION Base of Surface Casing Intermediate Casing

10 Surface Casing Intermediate Casing Production Casing

11 Aquifer Monitoring

12 HVHF Chemical Disclosure Proposed Chemical additives are submitted with application Disclose chemical information online at FracFocus.org Chemical name and concentration Chemical family and trade name for trade secret chemicals

13 Hydraulic Fracturing Site

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17 Management of Flowback Water Flowback Water or Produced Water Water based fracturing fluid may be mixed with native water from the formation Flows back through well casing to the wellhead when pumping pressure (of fracturing) has been relieved. No fluid to pits deep well disposal - reporting

18 Pollution Prevention Measures Taken At Oil and Gas Sites Secondary Containment At the wellhead At production facilities All wellheads since September 1996 All production facilities since November 1989

19 Groundwater Protection Current Statistics 349 Active Remediation sites Zero from Hydraulic Fracturing 88 Spills in 2014* 58 Spills so far in 2015* Most Spills Cleaned up within 30 days Many Spills Occur in Secondary Containment Flow Lines Illegal Dumping

20 Groundwater Protection Uses and Conservation Drilling Fluid Hydraulic Fracturing Secondary Recovery Enhanced Oil Recovery Production

21 Freshwater Storage

22 HVHF Water Withdrawal Water Withdrawal Assessment Tool Required for Large Volume Water Withdrawals Withdrawal not approved if adverse impact Contingency Plan for potential impacts to wells Baseline Sampling Baseline water well samples within 1/4 mile

23 HVHF Monitoring and Reporting Install monitor well to check water levels Receive advance approval before each HVHF Notify DEQ 48 hours in advance Measure and report pressures and volumes

24 WATER USE Shallow shale well: 50,000 gallons of water Deep horizontal well: 2 30 million gallons DEQ requires Water Withdrawal Assessment DEQ will not approve if adverse resource impact DEQ requires ground water level monitoring if water well within 1320 feet

25 Uses and Conservation Secondary Recovery & Enhanced Oil Recovery Hydrogeological Study Effect on aquifer during extreme conditions WWAT Groundwater Protection

26 Water Use in Michigan Food For Thought Total Groundwater Withdrawals in MI = 267,910,000,000 gallons/year (USGS, 2000) Berrien County 10 mgd with up to 90% lost N. Branch Manistee River Annual Recharge 8.8 Billion Gallons

27 Water Produced by Burning Natural Gas 90 1 gal. Cubic Feet

28 Remediation Groundwater Protection Clean up to Part 201 Standards Safe for all uses!

29 Lessons Learned Groundwater Protection More Effective to Prevent than to Clean-up Immediate Response Limits Impact Use Science and Real-life Information to Develop Effective Rules

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