Dirty Fuels, Clean Futures

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1 Dirty Fuels, Clean Futures A Call for a National Climate Action Plan that Keeps Dirty Fuels in the Ground Big Climate Disrupters 4. Oil and Gas Fracking, Coast to Coast Our nation is experiencing a rush of oil and gas drilling, brought about by the use of hydraulic fracturing (fracking). Fracking involves pumping billions of gallons of a toxic mix of water, sand, and chemicals deep underground to release oil and gas trapped inside. Fracking is creating severe environmental and health impacts for communities across the country. Fracking pollutes the air. Associated heavy truck traffic, diesel generators, gas venting, gas flaring, and leakage of toxic volatile air pollutants are pushing locales into dangerous air quality crises. Oil and gas fields in the Barnett Shale area of Texas produced more smog during the summer of 2009 than all the motor vehicles in Dallas- Fort Worth. In rural Sublette County in Wyoming, over 27,000 gas wells are responsible for higher levels of smog than Houston and Los Angeles, and the American Lung Association gave the county an F for air quality. Fracking poisons water. Fracking requires that millions of gallons of water, mixed with toxic chemicals, be pumped underground. Fracking can cause this injected fluid, as well as hazardous chemicals naturally occurring underground, to contaminate aquifers that provide fresh drinking water for millions of Americans. After fracking, ten to twenty percent of the toxic water mix is returned to the surface. Because this wastewater is difficult to treat, it is frequently disposed of by injection into other wells for permanent storage. These underground injection sites like fracking itself are increasingly linked to earthquakes in Texas, Arkansas, Ohio, and Oklahoma. Fracking destroys pristine wild lands. Fracking technology is driving a wave of new proposals to drill thousands of new oil and gas wells on public and private lands. Areas that were once not economically viable for oil and gas development are now being targeted for drilling. In a number of cases, subsurface mineral rights that have been unclaimed for years are now being activated, resulting in new oil and gas rigs popping up in people s backyards, and next to many of America s iconic special places. Fracking is the driving force for a dirty energy boom that is releasing billions of tons of new climate-disrupting carbon pollution into the air. In the past six years, fracking for natural gas has increased eightfold. Unfortunately, the Obama administration is bullish on increasing fracking and domestic natural gas production. MONTEREY, SAN JUAN BASIN AND MARCELLUS OIL AND GAS = 3x OIL AND GAS FRACKING (17.5B)

2 Lower 48 states shale plays Lower 48 oil and gas areas San Joaquin Monterey Monterey Santa Maria, Ventura, Los Angeles s Monterey- Temblor Montana Thrust Belt Cody Greater Green River Uinta Manning Canyon Mancos Hermosa Niobrara* Big Horn Paradox Lewis San Juan Avalon- Bone Spring Barnett- Woodford Bakken*** Heath** Williston Powder River Gammon Mowry Piceance San Juan Park Marfa Niobrara* Denver Pierre Raton Anadarko Palo Duro Bend Permian Pearsall Hilliard- Baxter- Mancos Excello- Mulky Woodford Ardmore Barnett Ft. Worth Western Gulf Cherokee Platform Eagle Ford Forest City Fayetteville Antrim New Albany Chattanooga Arkoma Black Warrior Conasauga Floyd- Valley & Ridge Neal Province TX-LA-MS Salt Tuscaloosa Haynesville- Bossier Michigan Illinois Shale plays Current plays Prospective plays Stacked plays Shallowest/ youngest Intermediate depth/ age Deepest/ oldest s s * Mixed shale & chalk play ** Mixed shale & limestone play ***Mixed shale & tight dolostonesiltstone-sandstone Appalachian Marcellus Devonian (Ohio) Marcellus Utica Miles ± Source: Energy Information Administration based on date from various published studies, According to the 2014 Annual Energy Outlook, produced by the U.S. Energy Information Agency (EIA) and the U.S. Department of Energy (DOE), oil and gas production is the second largest greenhouse-gas contributor, next to coal, and is projected to grow significantly. The EIA report projects that annual natural gas production will increase 56 percent by 2040 to 37.6 trillion cubic feet, equating to over 2 billion tons of carbon dioxide, nearly a third of the nation s total carbon dioxide emissions. A continued reliance on fracked oil and gas depresses the market for clean energy and harms public health and the environment. The absence of federal leadership is forcing state and local leaders across the country to step up and address the dangers of fracking to their communities. Fracking moratoria and bans are in place for the state of New York, and in a number of communities and counties in Colorado, Pennsylvania and Texas. Momentum behind local bans and a statewide moratorium is building quickly in California. Public outcry forced the governor of Ohio to back away from opening state parks to fracking. Seminole Indians are fighting plans to frack and store toxic waste in the middle of precious Florida panther habitat right next to the Everglades. Numerous health studies now link proximity of living near a fracked oil and gas well to low birth weight in children, birth defects, and greater risk for cancer. The mad rush to drill as quickly as possible and wherever possible is causing serious harm to people s health, to their communities, and to our climate. It s time to demand clean, renewable energy and not more of the same.

3 A. The Monterey Shale OIL MONTEREY SHALE OIL = 1x MONTEREY SHALE OIL (6B) The Monterey Shale Formation covers 1,700 square miles in Central and Southern California, containing both publicly and privately held shale oil deposits, also known as tight oil. Due to aggressive fracking and acidization technologies, California could soon resemble a giant pincushion, poked full with oil wells that would unlock and release billions of tons of new carbon emissions into our atmosphere, setting back a decade-long effort to reduce California s carbon pollution. The Monterey Shale is estimated to hold up to 15 billion barrels of technically recoverable oil, which would create more than 6 billion tons of carbon dioxide emissions that would otherwise be saved by standards. For years, California regulators denied that fracking was taking place until an investigative report released in early 2012 revealed that hundreds of wells have been drilled with virtually no oversight or regulation. It also recently came to light that fracking is occurring offshore, possibly discharging pollutants into the Pacific Ocean. Existing and proposed regulations do little to effectively protect public health and the environment from fracking and acidization practices in California. Californians are pushing for a statewide moratorium on all fracking and well-stimulation drilling. A moratorium would allow time to assess potential impacts to the environment, water supplies, and public health before fracking and well stimulation expands. It would also give California time to expand clean-energy alternatives in order to achieve the state s ambitious climate change reduction goals. Last year, a federal judge issued a landmark decision affirming that the BLM violated the law when it did not consider the environmental impacts of fracking and well stimulation when it issued new oil leases in Monterey County. The BLM has halted all federal oil and gas leasing in California to assess fracking s effects. This legal victory sets an important precedent for challenges to oil and gas leasing on the 759 million acres of minerals administered by the BLM across the nation. The Obama Administration should not issue any new leases or permits to drill utilizing fracking or other well stimulation methods. The BLM received over one million public comments last year, urging the agency to prohibit fracking on public lands and to fully analyze the impacts of fracking prior to finalizing federal drilling rules and issuing any new leases or permits. Currently, the BLM explicitly avoids analysis of the environmental effects of hydraulic fracturing, even though 90 percent of federal wells are fracked. California should implement a moratorium on shale oil extraction that uses advanced extraction techniques such as fracking and acid stimulation on both onshore and offshore minerals until it can be proven that fracking can be done without harming public health and the environment. This moratorium would give the public a chance to weigh in on this practice. It would provide the necessary time to develop alternatives to oil and natural gas and signal to investors that there are other, cleaner energy projects worth supporting. And it would ensure that a thorough analysis of fracking s impact on California s environment and public health occurs before fracking and well stimulation expands. The Bureau of Land Management must not move forward with any leasing on California public lands until the necessary studies are conducted and completed by both the BLM and the State of California. Nor should the BLM issue any permits to drill on existing leases until completion of required studies.

4 B. The San Juan GAS SAN JUAN BASIN GAS = 0.5x SAN JUAN BASIN GAS (3B) In the rush to drill all across our western public lands, the oil and gas industries have set their sights on fracking the relatively unexplored San Juan of northern New Mexico and southern Colorado. This area is known for its rich Native American culture and history, encompassing national treasures such as Mesa Verde National Park and Chaco Canyon National Historical Park. A USGS survey estimates that there could be as much as 50 trillion cubic feet of technically recoverable shale gas contained within the San Juan, equating to nearly three billion tons of carbon dioxide. The people who live in and near Farmington, New Mexico, located in the heart of the San Juan, have already seen their share of air and water pollution, mainly from the two large coal-fired power plants in the region, the San Juan Generating Station and the Four Corners power plant. As those polluting power plants finally start to be retired over the next few years, we will have a chance to replace that power with renewable wind and solar energy. But the local utility company and many elected local and state leaders favor an increased dependence on fracked natural gas. In fact, companies such as Encana have begun drilling fracking wells in the. Meanwhile, the state and federal agencies that regulate oil and gas production are playing catch-up, and are inadequately resourced to protect the public s interest. These agencies must put in place strong protections for groundwater and air quality, and put off limits lands that are important wildlife habitat or which contain irreplaceable cultural and historical treasures. Public outcry is mounting, and recent proposals by the BLM to offer new oil and gas leases next to Mesa Verde National Park and Chaco Canyon National Historical Park met fierce local opposition from neighboring town and county elected leaders and tribal leaders. Despite such public opposition, companies such as Encana are moving their rigs into the San Juan where ethane, butane, and propane are produced alongside natural gas. These liquids are much more profitable for companies. Nine companies currently hold leases in this area, including Anadarko, Chesapeake, Devon, and Encana. Though a relatively small number of fracked wells have so far been drilled in the New Mexico portion of the San Juan, numerous violations by these companies have been documented throughout the Rocky Mountain West. State agencies in New Mexico and Colorado must put in place strong protections for groundwater, surface water and air quality, and put priceless wildlife habitat and irreplaceable cultural and historical treasures off limits to drilling. The Bureau of Land Management must not move forward with any leasing on New Mexico or Colorado public lands until the necessary studies are conducted to determine cumulative environmental impacts on our public lands. Places such as Mesa Verde and Chaco Canyon National Parks should be permanently protected.

5 C. Marcellus UTICA Shale Gas MARCELLUS AND UTICA SHALE GAS = 1.5x MARCELLUS AND UTICA GAS (8.5B) The Marcellus Shale lies below nearly 31 million acres in Pennsylvania, West Virginia, New York, Ohio, Virginia, and Maryland. The USGS estimates it contains an estimated 84 trillion cubic feet of technically recoverable gas and 3.4 billion barrels of oil. This equates to six billion tons of carbon dioxide. Though the Marcellus is one of the most prolific shale basins in the world, drilling thus far has centered in Pennsylvania, West Virginia, and Ohio. In Pennsylvania alone, there are 59 drilling operators, with Chesapeake Appalachia LLC, Range Resources Appalachia LLC, and Shell Western E&P being the three largest. The Utica Shale lies a few thousand feet below the Marcellus Shale, underlying most of eastern North America. Estimates of technically recoverable oil and gas indicate that the Utica Shale could contain up to 38 trillion cubic feet of natural gas, 940 million barrels of oil, and 208 million barrels of natural gas liquids. This equates to 2.5 billion tons of carbon dioxide. Though the Utica Shale has not been extensively developed due to its great depth, deep fracked wells in eastern Ohio and western Pennsylvania are now yielding large amounts of natural gas, natural gas liquids, and crude oil. Pollution from fracking in the Marcellus and Utica shale is well documented and rapidly increasing in ecologically sensitive regions and closer to population centers. With the rapid pace of development in the Marcellus and Utica Shale, keeping fracked oil and gas in the ground will be increasingly difficult. It s essential that the Obama administration keep the following areas off limits to fracking: Delaware Water Gap National Recreation Area is a 70,000 acre natural area managed by the National Park Service, containing the Wild and Scenic River section of the Delaware River. In entirety, the Delaware River provides drinking water for over 15 million people. Currently, a moratorium prohibits fracking and water withdrawals in the Delaware River. Despite growing pressure on the interstate Commission that controls fracking in the River to lift the moratorium, the moratorium must remain in place until the Commission assesses the climate and environmental impacts of fracking, develops and adopts regulations governing gas extraction and proves that these rules will protect the public. The Wayne National Forest covers nearly 250,000 acres and is the only national forest in Ohio. It is a landscape complete with rivers, covered bridges, and rugged hills popular with hikers, mountain bikers, horseback riders, hunters and anglers. Under pressure to allow fracking in the forest, the U.S. Forest Service concluded that the existing land and resource management plan (completed in 2006, before fracking was common) adequately addresses any damage and risks associated with fracking. The Forest Service must conduct a new environmental impact assessment before allowing any leasing and drilling to occur. The George Washington National Forest covers 1.8 million acres primarily in Virginia, West Virginia and Kentucky. It

6 UTICA MARCELLUS UTICA UNDERLYING MARCELLUS The Utica underlies the MArcellus in many areas, coming closer to the surface in eastern Ohio (Source: Energy Information Administration) is home to historic sites and contains 230,000 acres of old-growth forest and over 2,000 miles of hiking trails. Rivers and streams that originate in the forest provide drinking water for 4.5 million people, including those living in Washington DC. To date, little oil and gas drilling is occurring on the forest and the U.S. Forest Service released a 2011 draft management plan that proposed banning horizontal drilling and fracking. The Forest Service must hold firm to the ban and not succumb to intense pressure from the oil and gas industry to frack the George Washington National Forest. Pennsylvania and Ohio state parks and forests are under threat. In Pennsylvania, more than 2.2 million acres of state managed forests are threatened by oil and gas extraction. These forested landscapes provide habitat for wildlife, recreation opportunities for millions of people, and are an economic driver for the state. However, Governor Corbett proposes to lift a drilling moratorium and allow the oil and gas industry to drill under our parks and forests. In Ohio, despite the public concern about protecting state parks, Governor Kasich continues to push for drilling on state lands. Of particular concern is the Sunfish Creek State Forest and two state parks, Barkcarp State Park and Wolf Run State Park in Noble County. Pennsylvania Department of Conservation of Natural Resources and the Ohio Department of Natural Resources must not lease on or under any of Pennsylvania s public lands. exemptions from elements of major federal environmental laws. Fracking for oil and gas must be held to the same standards as other polluting industrial activities. These exemptions must be revoked by the administration in order to protect public health and safety. The EPA has received five critical rulemaking petitions to fix these exemptions. The EPA should respond to these petitions and take swift administrative action to strengthen the Toxic Substances Control Act (TSCA), Resource Conservation and Recovery Act (RCRA), Toxics Release Inventory (TRI), and minimize safety risks from fracking and shale development. No liquid natural gas (LNG) exports. Global demand for LNG exports will increase fracking across the country to meet both domestic and foreign demand for natural gas. No LNG exports to non-free-trade countries should be approved until a complete economic and environmental public review is conducted. Additionally, the president must not allow the Trans-Pacific Partnership Trade Agreement to override environmental analyses of LNG exports. No issuance of new leases or permits to drill utilizing fracking or other well-stimulation methods. The BLM received over one million public comments last year, urging the agency to prohibit fracking on public lands and to fully analyze the impacts of fracking on the environment and our climate prior to finalizing federal drilling rules and issuing any new leases or permits. Currently, the BLM explicitly avoids analysis of the environmental effects of hydraulic fracturing, even though 90 percent of federal wells are fracked. The recent legal ruling in California confirms that the BLM and the Forest Service cannot issue any new leases to frack on federal lands until new environmental analyses are conducted. Reopen investigations of water contamination from fracking operations. The EPA s decision to abandon its responsibility to address serious situations in places like Dimock, Pennsylvania, Parker County, Texas, and Pavillion, Wyoming, undermines the president s commitment to protect the public from the impacts of fracking, leaving communities with contaminated drinking water and no conclusive explanation of causation. The EPA must reopen the investigations to protect the public. What the Obama Administration Can Do Restore protections in environmental and public health laws. The oil and gas industries have been given sweeping Sierra Club National 85 Second Street, 2nd Floor San Francisco, CA (415) Sierra Club Legislative 50 F Street, NW, Eighth Floor Washington, DC (202) sierraclub.org facebook.com/sierraclub twitter.com/sierraclub