Table of Contents See also Summary of Contents on the previous page. Chapter One: PowerPoint: Environmental Impacts of Hydraulic Fracturing: Dispelling the Myths... 1 Kevin J. Garber, Esquire and Jean M. Mosites, Esquire I. Hydraulic Fracturing... 4 A. Marcellus Fairway... 4 B. Public Image... 5 1. Groups... 5 2. Organizations Online... 5 3. Movies and Television Shows... 5 C. STRONGER State Regulatory Reviews... 5 D. Marcellus Shale Advisory Commission Recommendations... 5 II. Pennsylvania Oil and Gas Wells... 6 A. Historical Wells... 6 B. O&G Wells in PA from 2005 to Present... 6 C. Relevant O&G Regulations... 6 III. Pennsylvania Statutes and Regulations... 7 A. Act 13 of 2012... 7 1. New Provisions... 7 a. Well Site Location Restrictions for UC Wells... 7 b. Setbacks for Unconventional Wells... 8 2. Protection of Fresh Groundwater... 8 a. Chapter 78... 9 b. Act 13 HF Disclosures... 9 f. Transfer, Storage and Disposal... 10 g. PA Safe Drinking Water Act... 10 3. Act 13 New GW Provisions... 11 4. Act 13 Presumed Liability... 12 a. Presumption of Liability Defenses... 12 5. Chapter 78 Water Replacement and Restoration... 12 6. Well Control Emergency Response... 13 7. Air Emissions from Hydraulic Fracturing... 13 8. Act 13 Preemption of Local Ordinances... 14 9. Proposed Chapter 78 Revisions... 14 B. PA Permits and Approvals... 15 C. Liability Scenarios GW Complaint... 15 D. River Basin Commissions... 16 IV. Other States Regulating HF... 17 V. Litigation Involving Fracking... 17 VI. Federal Agency Investigations and Rulemaking... 18 xiii
A. Federal Agencies... 18 B. EPA... 19 1. EPA Hydraulic Fracturing Study... 19 a. EPA s HF Research Activities... 19 b. Responses to EPA s RFI... 20 2. EPA s Regulatory Tool Box... 20 3. Litigation re EPA s Website... 21 C. Petitions for Rulemaking... 21 D. Other Federal Agency Activities... 22 Appendix A: Pennsylvania Hydraulic Fracturing State Review September, 2010... 23 Submitted by: Kevin J. Garber, Esquire and Jean M. Mosites, Esquire Appendix B: Study of the Potential Impacts of Hydraulic Fracturing on Drinking Water Resources: Progress Report Executive Summary December 2012... 67 Submitted by: Kevin J. Garber, Esquire and Jean M. Mosites, Esquire Chapter Two: Water Sourcing and Wastewater Issues Relating to Fracking... 73 Scott A. Gould, Esquire Introduction... 75 Waste Water... 75 I. Water Demands... 75 A. Water Usage for Each Frack Job... 75 B. Water Supply Considerations... 76 II. PADEP Regulation of Water Use and Storage... 76 A. Water and Wastewater Storage on Well Pads... 76 B. Water Management Plan... 76 C. Revised Chapter 78 Regulations to Implement Act 13... 77 D. Water Stored in Centralized Impoundments... 78 E. Current PADEP Worksheet for Permitting of Pits and Dams for Oil and Gas Operations... 78 F. Quality of Water Stored in Fresh Water Impoundments... 79 G. PADEP s White Paper on Use and Storage of Mine-Influenced Water... 79 III. Use of Mine-Influenced Water ( MIW )... 79 A. PADEP s White Paper for Identifying and Using Mine-Influenced Water for Natural Gas Extraction... 79 B. What the Term MIW Applies to in the PADEP White Paper... 79 C. How Clean is Clean?... 80 D. Options for Storing MIW for Use in Hydraulic Fracturing Operations... 81 E. Suggested Process... 81 F. MIW Treatment Facilities... 81 G. Process and Documentation Needed to Move MIW Use Forward... 81 H. Further Support for Use of MIW in Natural Gas Extraction... 81 I. Potential for Long-Term Liability... 82 J. Senate Bill 1346... 82 xiv
K. Potential Need for NPDES Discharge Permits for MIW Treatment Facilities... 84 IV. Susquehanna River Basin Commission ( SRBC ) and Delaware River Basin Commission ( DRBC ) Regulation of Water... 84 A. SRBC Regulates the Withdrawal and Use of Groundwater and Surface Water with in the Susquehanna River Basin... 84 B. Susquehanna River Basin Compact... 84 C. Surface and Groundwater Withdrawals Outside of the Susquehanna River Basin are Regulated by the DRBC... 87 D. Recent SRBC Policy and Proposed Regulatory Changes... 87 Waste Water... 91 V. Typical Types of Wastewater Generated... 91 A. Drilling Fluid or Drilling Mud... 91 B. Flowback Water... 91 C. Produced Water or Production Water... 92 D. Top Hole Water... 92 E. Slick Water, Slick Water Solution... 92 VI. Reusing, Processing and Disposing Drilling Fluids... 92 A. Residual Wastes... 92 B. Preparing and Implementing a Plan for the Control and Disposal of Fluids... 94 C. Drilling Fluids, Drill Cuttings, and Flowback and Produced Water... 94 D. Pits and Impoundments Used to Temporarily to Store Used Fluids, Flowback, and Produced Water... 94 E. Anticipated Changes to Chapter 78 to Implement Act 13... 94 F. Regulation of High TDS Wastewater... 95 G. Residual Waste Beneficial Use General Permits... 97 VII. Options for Reuse, Processing or Disposal... 99 A. Drilling Muds/Fluids... 99 B. Direct Reuse of Flowback/Mobile and On-Site Treatment... 99 C. Off-Site Disposal or Treatment... 100 VIII. PADEP Draft Spill Policy... 102 A. Draft Policy Addressing Spills and Releases from Oil & Gas Wells and Related Operations... 102 B. Reporting of any Release or Spills Causing or Threatening of Pollution of Water in the Commonwealth to PADEP... 102 C. The Responsible Party Must Take Immediate Action... 102 D. Remediation of Any Area Affected by a Spill or Release Related to Oil and Gas Operations... 103 Appendix A: PA DEP s White Paper : Utilization of Mine Influenced Water for Natural Gas Extraction Activities... 107 Submitted by: Scott A. Gould, Esquire Chapter Three: Regulatory Update: An Industry Perspective... 117 Andrew T. Bockis, Esquire xv
I. Introduction... 119 II. Discussion... 119 A. Industry Has Embraced Certain Guiding Principles... 119 B. Oil and Gas Activities Are Highly Regulated... 119 1. There May Be up to a Dozen or More Government Agencies... 119 2. Areas of Oversight... 120 a. Well Site Planning/Development... 120 b. Well Drilling... 121 c. Water Supply/Storage... 121 d. Residual Waste/Wastewater Management... 121 e. Site Restoration... 121 f. Natural Gas Processing Plants... 122 g. Compressor Station Construction... 122 h. Pipeline Construction... 122 C. Industry Best Management Practices Are Consistent with Pennsylvania Regulations... 123 1. Site Development and Restoration... 123 2. Health and Safety Considerations... 124 3. Water Issues... 124 a. Selection of a Reliable Source of Water... 125 b. Transportation of Water to Well Pad... 125 c. Hydraulic Fracturing... 125 d. Flowback and Produced Water... 127 e. Reuse... 128 f. Disposal... 128 Appendix A: Regulatory Analysis Form: DEP Emergency Response at Unconventional Well Sites... 131 Submitted by: Andrew T. Bockis, Esquire Appendix B: Report to the General Assembly on Pipeline Placement of Natural Gas Gathering Lines... 171 Submitted by: Andrew T. Bockis, Esquire Chapter Four: Cumulative Impacts... 193 John W. Jack Ubinger, Jr., Esquire I. Introduction... 195 II. Federal Department of Energy Impacts Studies... 197 A. Literature Research Projects... 198 1. U.S. EPA Region 8 Regional Case Study... 198 2. National Energy Technology Laboratory Modern Shale Gas Primer... 198 3. Interstate Oil & Gas Compact Commission Adverse Impact Reduction Handbook... 198 B. Field Research Projects... 199 III. Selected State Approaches... 199 A. New York Generic Environmental Impact Statement Process... 199 xvi
1. Generic Environmental Impact Statement for the Oil and Gas Industry... 200 2. Draft Supplemental Generic Environmental Impact Statement... 201 3. Executive Order Establishing Moratorium on Hi-Volume Hydraulic Fracturing in Horizontal Wells... 202 B. Colorado Comprehensive Planning Process... 202 IV. Impact Assessment and Mitigation in Pennsylvania... 203 A. Susquehanna River Basin Commission... 203 B. Delaware River Basin Commission... 204 1. Determinations Concerning Shale Gas Extraction Projects... 204 2. Proposed Water Quality Regulation... 205 C. Department of Environmental Protection... 206 1. Water Management Plan for Marcellus Shale Gas Well Development... 206 2. Air Emission Source Aggregation... 206 3. Revision of Air Permit Exemption Guidelines... 207 4. Short-term Ambient Air Monitoring Project... 209 D. Department of Conservation and Natural Resources... 210 1. DCNR Impact Assessments... 210 2. Pa. DEP and Pa. DCNR Joint Guidance on Evaluation of Impacts... 211 Chapter Five: PowerPoint: Hydraulic Fracturing 101... 213 Joe Lima I. Hydraulic Fracturing 101... 215 A. Characteristics of Conventional Reservoirs... 215 1. Hard Sandstone... 215 2. Soft Rock... 215 3. Carbonate... 215 B. Characteristics of Unconventional Reservoirs... 216 1. Tight Gas... 216 2. Gas Shales... 216 3. Coalbed Methane... 216 C. Resource Triangle... 216 1. Conventional Resources... 216 2. Unconventional Resources... 216 D. Reasons to Hydraulic Fracture a Formation... 217 E. What Does a Hydraulic Fracture Look Like?... 218 F. Frac Sand... 218 1. Purpose... 218 2. Key Characteristics... 218 G. Background of Hydraulic Fracturing... 219 1. First Generation... 219 2. Second Generation... 219 3. Third Generation... 219 4. Fourth Generation... 219 H. What Fracturing Means to Production... 219 1. Shale Gas... 219 xvii
xviii 2. Oil and Gas Wells... 219 3. U.S. Energy Information Administration Forecast... 219 4. Recoverable Resource Base... 219 I. Map of Major North American Plays... 220 J. Unconventional Resources Emerging Geographic Diversity... 220 K. Shales... 221 1. What are They?... 221 2. Common Traits... 221 3. Successful Shale Development Diagram... 221 4. Pad Well Development... 222 5. Development Cycle Chart... 222 6. Cementing Diagrams... 223 7. Shale Wall Completions Diagram... 224 L. Stage Designs & Fracturing Monitoring... 224 1. Technology Highlights... 224 2. Microseismic Monitoring... 225 M. Key Functionalities of Fracturing Fluid... 225 N. Key Initiatives in Shale Development... 226