Shale Siting, Permitting & Regulations


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Shale Siting, Permitting & Regulations

  1. 1. Walden Associates Technical, Regulatory and Public Policy Issues Hydrofracking Shale for New Energy Siting, Permitting and Regulations
  2. 2. Walden Associates Siting, Permitting & the Proposed Regulations (NY) In Pennsylvania, West Virginia and Ohio, fresh water and production water are stored either in central multi-pad lagoons and interconnected via temporary pipelines or dug adjacent to an active drilling pad.
  3. 3. Walden Associates • 6 NYCRR Parts 52 and 190 – prohibit drilling on state lands (note on state lands not under) • Parts 550-556 and 560 , Subchapter B: Mineral Resources Regulates drilling, underground activities and reporting • Parts 750.1 – 750.2 – SPDES permitting for high volume hydro fracturing (HVHF) effects operations on surface • Now let’s look at these in a bit more detail. NYSDEC Proposed Shale Gas Drilling Regulations
  4. 4. Walden Associates Limits of Shale in New York State Note: Regulations state shale must be at least 2,000 feet deep to be accessed by HVHF
  5. 5. Walden Associates • Permit Terms – 2 years to start • Defines HVHF as using more than 300,000 gallons to frack • Establishes minimum spacing limits • Requires use of three casing and set cementing requirements • Requires bottom casing separate potable water from the borehole • Requires surety for eventual abandonment of wells 6,000 feet or deeper true depth • Requires drill cutting disposal plan – disposal or BUD Pre-Drilling Considerations (550-556 and 560)
  6. 6. Walden Associates • 2,000 Feet from public drinking water supplies • 500 feet from boundaries of 18 primary aquifers • 500 feet minimum from private well – owner can waive this • 4,000 feet from New York City and Syracuse watersheds • Not in flood plains or on principal aquifers • Water well testing requirements 2,000 feet (prior to drilling) Groundwater Protection Considerations (560.4) Setbacks
  7. 7. Walden Associates • Reserve pit (30 mil) can be used for fresh water and drilling mud circulation only • Fracking fluids and flowback/production water must be contained in onsite tanks • All diesel must be stored in double walled tankage • Use of waste tracking forms required – cutting, flowback • Diesel fuel cannot be used as frack fluid • Fluid disposal plan must be developed Pad Operations and Drilling Considerations (560.6)
  8. 8. Walden Associates Invest in temporary tank company stock Closed Loop on Frack Fluid & Flow Back (New York State)
  9. 9. Walden Associates • SPDES permit must be filed and approved prior to drilling permit being issued • Defines reserve pit constructions requirements • Sets fracturing depth minimums – 2,000 feet below grade, 1,000 feet below potable zone • Sets SEQRA applicability SPDES (Part 750) – Permit Requirements for HVHF (Stormwater-Wastewater)
  10. 10. Walden Associates • Requires preparation of SWPPP • Regulates fracking additives and requires disclosure • Prepare SPCC plans for all chemicals on the drilling pad • Sets stormwater monitoring requirements for effluent flow • Prohibits pad construction on slopes greater than 25% SPDES (Part 750) – Permit Requirements for HVHF (Stormwater-Wastewater)
  11. 11. Walden Associates • Who regulates: SRBC or DRBC • Consumptive Use – Defined more than 20,000 gpd/30 day Ave (600,000) • Water Withdrawal – 100,000 gpd/30 Day Ave (3,000,000) • Consideration for 7Q10 issues • Cumulative effects Water Access for Drilling Use Permit Requirements
  12. 12. Walden Associates • Political…you bet • Drilling will take place in New York’s Southern Tier, west of Binghamton (who favors drilling) • Principle opposition is based in New York City and Westchester counties • 810,000 acres near Seneca Lake lease expired – No Action What’s the Big Fuss in NY?