O c t o b e r 1 0 th,

Transcription

1 Oil and Gas Study Octber 10 th, 2011

2 Agenda 1. Intrductins 2. Shale gas extractin and resurces in NC 3. Prcess f the DENR il and gas study 4. Public input pprtunities 5. Prpsed utline fr the il and gas study 6. Yur cmments

3 Categries f Hydrcarbn Occurrence (Schmker, 1995)

4 Hydraulic Fracturing and Hrizntal Drilling Image taken frm the U.S. Department f Energy Natinal Energy Technlgy Labratry.

5 Gelgic Assessment

6 NCDENR Study Internal DENR study team STRONGER review Nnprfit grup, cmpares ur regulatins t guidelines Panel review is Octber th Opprtunity fr STRONGER t ask questins f DENR staff members Public may bserve frm 8 am 2 pm Octber 24 Parker Lincln cnference rm, 2728 Capital Blvd., Raleigh Octber Dbbs Bldg Rm. 2115, 430 N. Salisbury St., Raleigh

7 Public Input Public Meetings (tday and in early 2012) Written Cmments t: Mail t: NCDENR, attn: Trina Ozer 1601 MSC Raleigh, NC Get updates Send an t: Visit ur website: Technical Advisry Grup Available t answer DENR s questins n science, law, engineering

8 Prpsed Outline f the Study Under S.L [1] Althugh the study language in Sessin Law speaks in terms f all f the state s il and gas resurces, the study will fcus n the shale gas resurce that has been identified in the Triassic Basin. The study will nte where any findings and recmmendatins may have brader applicatin t ther ptential il and gas resurces.

9 Sectin 1 Ptential Oil and Gas Resurces A. Overview f the Triassic basins Sanfrd sub-basin f the Deep River Basin Dan River Basin Durham and Wadesbr sub-basins f the Deep River Basin Buried Castal Plain basins B. Estimates f technically recverable gas Sanfrd sub-basin Dan River Basin C. Anticipated industry behavir Rates f well drilling Rates f gas extractin

10 Sectin 2 Oil and Gas Explratin and Extractin A. Hw hydrcarbns are generated and trapped in the Earth B. Methds used t find hydrcarbns Gephysical methds Seismic reflectin Gravity and magnetics Lithlgic and gephysical lgs Organic gechemistry indicatrs C. Methds t extract hydrcarbns Cnventinal drilling and well treatment Hrizntal drilling Hydraulic fracturing

11 Sectin 3 Ptential Infrastructure Impacts A. Water supply Existing water surces Existing water use Prjected water demand (based n lcal water supply plans) Expected additinal water use fr drilling and hydraulic fracturing B. Rad and bridge infrastructure C. Pipeline availability D.Wastewater treatment Existing wastewater treatment capacity Wastewater treatment needs assciated with il and gas activity (bth industrial and dmestic wastewater)

12 Sectin 4 Ptential Envirnmental Impacts A. Cnstituents and cntaminants assciated with hydraulic fracturing B. Grundwater impacts Lcatin f water supply wells (public and private) Ptential fr cntaminatin by cnstituents f fracturing fluids Ptential fr methane release C. Prcess wastewater Dispsal Ptential fr recycling D. Strmwater management Envirnmentally sensitive site design Ersin and sedimentatin Pst-develpment runff Surface spills and releases frm the well pad

13 Sectin 4 Ptential Envirnmental Impacts, cnt d E. Air quality impacts Air emissins Current permitting requirements F. Impacts n fish, wildlife and imprtant natural areas Threatened and endangered species Lcatin f parks, designated state nature preserves, ther significant natural areas G. Management and reclamatin f drilling sites (including rphaned sites) H. Management f naturally ccurring radiactive materials (NORM) I. Ptential fr seismic activity J. Slid and hazardus waste generated in the extractin prcess

14 Sectin 5 Ptential Ecnmic Impacts A. Estimate f jbs created Temprary vs. permanent jbs Industry use f lcal labr vs. imprted labr B. Cmparisn f existing bnding requirements t thse in ther il and gas states C. Cmparisn f existing severance taxes t severance taxes r ryalty payments in ther il and gas states D. Fiscal impacts t lcal gvernment (infrastructure and services) E. Use f special assessments F. Estimate f revenue generated by severance taxes r ryalties at levels cmparable t ther il and gas states

15 Sectin 5 Ptential Ecnmic Impacts, cnt d G. Fees fr permitting f il and gas explratin and extractin activities Current envirnmental permitting fees in Nrth Carlina Fees in ther il and gas prducing states Recmmendatins fr new r mdified permit fees H. Additinal state resurces needed t prvide regulatry versight I. Other recmmended uses fr il and gas revenue Imprvement f water and wastewater infrastructure Remediatin f cntaminated sites Land and water cnservatin

16 Sectin 6 Ptential Scial Impacts A. Impacts n nearby cmmunities frm drilling peratins Husing availability Prperty values Demand fr scial services B. Impacts n quality f life within nearby cmmunities, including impacts n: Recreatinal activities Cmmercial and residential develpment Nise frm cnstructin and drilling peratins Visual impacts frm cnstructin and drilling peratins

17 Sectin 7 Prpsed Regulatry Framewrk A. Guidance fr develpment f a regulatry framewrk STRONGER standards fr state il and gas prgrams State-by-state review f il and gas prgrams Public cmment Existing state plicy B. Recmmended plicies t guide regulatin f il and gas develpment C. Recmmended regulatry framewrk Public participatin Interagency crdinatin Criteria fr permit issuance r denial Scpe and frequency f inspectin Cmpliance and enfrcement prcedures Data management

18 Sectin 8 Cnsumer Prtectin and Legal Issues A. Mineral leases B. Surface landwner rights C. Disclsure t landwners (bth surface and subsurface) D. Cmpensatin fr damages Sectin 9 Other Issues Appendix Sessin Law Summary f Public Cmment

19 Yur Cmments