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Mineral Exploration & Extraction in
 Public Water Well Fields: an Ohio
 Legal & Public Policy Perspective
Julie Weatherington-Rice, PhD, CPG, CPSS
Bennett & Williams Environmental
Consultants Inc.
 Adj. Asst. Prof,
 Ohio State U.
 Food, Ag & Bio Eng.



                                        An Ohio Fracture Flow
                                   Working Group Presentation
                                                June 21, 2012
Oil & Gas Drilling in Ohio, 1860 - Present




Prime Class II
Brine
Injection
Wells
Mt. Simon SS
SW Ohio
                                    ~13,000’
Locations

            ~2,000’
            Cincinnati Arch
Mineral Exploration &
Extraction in Public
Water Well Fields & Their
Recharge Area are Non-
Conforming, Potentially
Polluting Land Uses
They are the ONLY remaining
major land uses of this category
that are NOT either precluded /
regulated by Federal / Ohio law in
Source Water Protection Areas or
subject to management under a
local Source Water Protection
Management Plan
Mineral Exploration & Extraction

   Since NOT precluded or locally
   managed, the siting and mineral
   rights for extraction are based on
   Federal / Ohio mineral laws
   (O&G, coal, rock, S&G, etc.)
   which DO NOT traditionally
   recognize the importance of
   source water protection
After the Fact Damages
• Dewatering – Ohio Cline vs. American
  Aggregates
• Contamination – Federal Clean Water
  Act
• Both conditions require litigation in
  Civil Court
• Both require that damage has already
  occurred
• Both are unsecured claims in
  Bankruptcy Courts
Preventing Damages Before
They Occur
• Ohio Courts typically find for the
  mineral owner
• Two major “Lands Unsuitable for
  Coal Mining” cases have shaped
  these decisions
• Ohio Environmental Council fact
  sheet about cases on line
  (http://www.theoec.org/PDFs/FactS
  heets/BarnesvilleWaterCase02.pdf)
Current Setbacks – Oil & Gas

• 50’ from streams and lakes (set by
  Sub SB 165) including in 100-yr
  floodplains and surface water source
  water protection areas
• 300’ from water wells public/private
• Nothing in the Ohio Revised Code or
  the Ohio Administrative Code to
  protect by exclusion public water
  supply well fields or recharge areas
How Did Locals Loose Control
on Oil & Gas?
• 2004, HB 278 (Tom Niehaus) pre-empts
    local communities from using local zoning
    authority to say where oil & gas wells and
    Class II injection wells can go, before
    2004, local zoning applied
•   2010 Sub SB 165 (Tom Niehaus again)
    upholds HB 278 & strengthens ODNR Oil &
    Gas’s power even over other state
    agencies; removes rights of locals to
    appeal; does not address source water
    protection management requirements
More Changes Coming
Sub SB 165 – Effective June 30, 2010
  * Mostly about money
  * “Grants the Division of Mineral
  Resources Management (now Oil & Gas)
  sole and exclusive authority to regulate
  production operations, as defined by the
  act, within the state”
  * Allows ODNR (ODH & OEPA) to revise
  rules through the Joint Committee on
  Agency Rule Review (JCARR)
Progress on Revising Rules
Finalized
• Ohio EPA – Air permit set
• Ohio Dept. Health: Radioactivity (NORM &
  TENORM) – all authority reverts to Oil &
  Gas
  - may be more radioactive than man-made
  wastes or SDWA levels allow but because
  “natural” doesn’t count, allows down
  blending in landfills, no Ohio data yet
  http://www.epa.state.oh.us/LinkClick.asp
  x?fileticket=cmfCggUBals%3d&tabid=502
  4
Progress on Revising Rules
Sent/Heading to JCARR; OEC/OFFWG
  comments submitted
• Well Construction Rules – Just Approved
• Revision ORC 1501:9-1-01 thru 1501:9-
  11-04 (Hodge-podge of rules) checked w/
  ODNR O&G 6-20-12 for updates but could
  not get one
• Ohio EPA wetlands reporting
Progress on Revising Rules
Coming Up
• Class II Injection Wells
    Revisions
    (above Pre-Cambrian
    basement rock now)
    Seismic rules just
    proposed 6-7-12
•   Everything else
•   Check web sites often
    http://www.ohiodnr.com/
    mineral/tabid/10352/Defa
    ult.aspx
Possible Options to Exclude Source
Water Protection Areas from Drilling
 • Currently ODNR O&G would have to buy
     the resource if they denied a permit
 •   Overturn the Ohio Supreme Court decision
     on Pleasant City (State ex rel. R. T. G. v.
     State of Ohio) possibly using the new Ohio
     Constitutional Amendment
 •   Pass a bill through the Ohio House and
     Senate providing exemptions to drilling in
     Source Water Protection Areas & 100-year
     flood plains
SB 315-Ohio Energy Bill-Now Signed
                 • Allows ODNR to require
                     additional permit
                     requirements in the
                     following areas if they so
                     choose
                 •   100-year floodplains
                 •   5-year time-of-travel,
                     public water supplies
                 •   DOES NOT overturn
                     Pleasant City or
                     Barnesville so may not
                     hold up in court if
                     challenged
What Can Locals Do?
• Find out if you even
    own your mineral
    rights (If there are old
    wells, the rights may
    have transferred)
•   Find out who owns
    your lease –
    selling/swapping like
    sub-prime mortgages
•   Remember, you can be
    bundled
Drilling Permit Issued in your
Source Water Protection Area?
Contact all applicable federal, state, regional
 & local agencies to MAKE SURE relevant
 permits have been obtained
  - Wetlands/Stream crossings (OEPA/ACE)
  - Flood plains (local admin/conservancy district)
  - Setbacks from private wells (local health dept.)
  - Roads & Bridge weight limits (Co. Engineer,
  Twp., Municipality)
  - Water withdrawal permits (ODNR DSWR)
If permitted sites violate laws/rules, notify
  ODNR O&G (Driller responsible for
  obtaining permits) & local Senator/Rep.
Test Your Water Before They Drill

• Test before drilling
• Test after drilling
• Test regularly after
  well is installed &
  producing
• Pros & Cons of
  fingerprinting
  methane
Learn from Munroe Falls
• Using the courts to
    protect water
•   Appeals to prevent
    drilling in 5-yr TOT
    area; denied but
    permits expired
•   Enforce building
    codes including
    permits for site
    construction;
    upheld & stiff fines
    collected
What are Your Rights?
               Local water suppliers can place
               an observer at drilling sites
               w/in 5-yr TOT if in Management
               Plan for all land-use activities
               Nothing in Sub SB 165 to
               preclude O&G drilling sites
• Observer needs OSHA certification
• Have all required oilfield safety equipment
• Stay out of way of drilling activities
• Coordinate w/ ODNR O&G
Be at the Rulemaking Table
• Advocate for your water system
• Comment on all rule changes, especially as
    they relate to YOUR supply
•   Provide technical comments, especially
    those related to impacts to your well field
•   Don’t comment, you may lose standing
•   Make sure your local Ohio Rep/Senator
    have copies of your comments
    Request they offer legislation to level the
    playing field and return local zoning &
    source water protection planning to the
    permitting process
Wellfield Recharge Area
    Leased?
• No Funding available to make
    communities whole if wellfield is
    damaged
•   Establish replacement cost & water
    needs ahead of time
•   Document service area, number of
    taps, average daily water usage
•   Document alternative sources
    available to you & level of water
    rationing needed to maintain services
•   Discuss plans needed to carry out
    emergency back-up water for your
    community including length of time
    to bring alternative system on line
Wellfield Recharge Area
Leased?
• Notify ODNR O&G in writing of water supply
    replacement information
•   CC your local Rep/Senator, ODNR Director & the
    Governor
•   Send Certified copy to the Drilling Company and
    Permit Holder
•   Ask them to submit a plan to fund cost of
    replacement and manage emergency supplies
    before drilling begins
•   Make all responses part of the public record in
    case of future litigation
•   Educate your customer base about your pro-
    active protection efforts
Join Forces with your Neighbors

             • Consider petitioning a Sole
                 Source Aquifer
             •   5 already in Ohio, parts of
                 20 counties
             •   NW Ohio MICHINDO SSA
                 Petition still open
             •   Tuscarawas Watershed
                 Combined SSA Petition in
                 progress
             •   Documents replacement
                 costs of ground water public
                 water supplies on the
                 Federal level
Contacts for Ohio Journal of
Science Papers & this Presentation
OFFWG, Dr. Julie Weatherington-Rice, B&W,
  OSU FABE, weatherington-ri.1@osu.edu
OFFWG, Dr. Ann Christy, OSU FABE,
  christy.14@osu.edu
Bennett & Williams, Linda Aller RS,
  Laller@bennettandwilliams.com
Ohio Journal of Science Web Link at OSU,
  https://kb.osu.edu/dspace/handle/1811/686
Ohio EPA Division of Drinking and Ground
  Waters Source Water Assessment and
  Protection Program,                    Keeping Ohio’s Water Clean
                                         Ohio Fracture Flow Working
  www.epa.ohio.gov/ddagw/swap_ssa.aspx                       Group

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Fracking-Legal & Public Policy Implications

  • 1. Mineral Exploration & Extraction in Public Water Well Fields: an Ohio Legal & Public Policy Perspective Julie Weatherington-Rice, PhD, CPG, CPSS Bennett & Williams Environmental Consultants Inc. Adj. Asst. Prof, Ohio State U. Food, Ag & Bio Eng. An Ohio Fracture Flow Working Group Presentation June 21, 2012
  • 2. Oil & Gas Drilling in Ohio, 1860 - Present Prime Class II Brine Injection Wells Mt. Simon SS SW Ohio ~13,000’ Locations ~2,000’ Cincinnati Arch
  • 3. Mineral Exploration & Extraction in Public Water Well Fields & Their Recharge Area are Non- Conforming, Potentially Polluting Land Uses They are the ONLY remaining major land uses of this category that are NOT either precluded / regulated by Federal / Ohio law in Source Water Protection Areas or subject to management under a local Source Water Protection Management Plan
  • 4. Mineral Exploration & Extraction Since NOT precluded or locally managed, the siting and mineral rights for extraction are based on Federal / Ohio mineral laws (O&G, coal, rock, S&G, etc.) which DO NOT traditionally recognize the importance of source water protection
  • 5. After the Fact Damages • Dewatering – Ohio Cline vs. American Aggregates • Contamination – Federal Clean Water Act • Both conditions require litigation in Civil Court • Both require that damage has already occurred • Both are unsecured claims in Bankruptcy Courts
  • 6. Preventing Damages Before They Occur • Ohio Courts typically find for the mineral owner • Two major “Lands Unsuitable for Coal Mining” cases have shaped these decisions • Ohio Environmental Council fact sheet about cases on line (http://www.theoec.org/PDFs/FactS heets/BarnesvilleWaterCase02.pdf)
  • 7. Current Setbacks – Oil & Gas • 50’ from streams and lakes (set by Sub SB 165) including in 100-yr floodplains and surface water source water protection areas • 300’ from water wells public/private • Nothing in the Ohio Revised Code or the Ohio Administrative Code to protect by exclusion public water supply well fields or recharge areas
  • 8. How Did Locals Loose Control on Oil & Gas? • 2004, HB 278 (Tom Niehaus) pre-empts local communities from using local zoning authority to say where oil & gas wells and Class II injection wells can go, before 2004, local zoning applied • 2010 Sub SB 165 (Tom Niehaus again) upholds HB 278 & strengthens ODNR Oil & Gas’s power even over other state agencies; removes rights of locals to appeal; does not address source water protection management requirements
  • 9. More Changes Coming Sub SB 165 – Effective June 30, 2010 * Mostly about money * “Grants the Division of Mineral Resources Management (now Oil & Gas) sole and exclusive authority to regulate production operations, as defined by the act, within the state” * Allows ODNR (ODH & OEPA) to revise rules through the Joint Committee on Agency Rule Review (JCARR)
  • 10. Progress on Revising Rules Finalized • Ohio EPA – Air permit set • Ohio Dept. Health: Radioactivity (NORM & TENORM) – all authority reverts to Oil & Gas - may be more radioactive than man-made wastes or SDWA levels allow but because “natural” doesn’t count, allows down blending in landfills, no Ohio data yet http://www.epa.state.oh.us/LinkClick.asp x?fileticket=cmfCggUBals%3d&tabid=502 4
  • 11. Progress on Revising Rules Sent/Heading to JCARR; OEC/OFFWG comments submitted • Well Construction Rules – Just Approved • Revision ORC 1501:9-1-01 thru 1501:9- 11-04 (Hodge-podge of rules) checked w/ ODNR O&G 6-20-12 for updates but could not get one • Ohio EPA wetlands reporting
  • 12. Progress on Revising Rules Coming Up • Class II Injection Wells Revisions (above Pre-Cambrian basement rock now) Seismic rules just proposed 6-7-12 • Everything else • Check web sites often http://www.ohiodnr.com/ mineral/tabid/10352/Defa ult.aspx
  • 13. Possible Options to Exclude Source Water Protection Areas from Drilling • Currently ODNR O&G would have to buy the resource if they denied a permit • Overturn the Ohio Supreme Court decision on Pleasant City (State ex rel. R. T. G. v. State of Ohio) possibly using the new Ohio Constitutional Amendment • Pass a bill through the Ohio House and Senate providing exemptions to drilling in Source Water Protection Areas & 100-year flood plains
  • 14. SB 315-Ohio Energy Bill-Now Signed • Allows ODNR to require additional permit requirements in the following areas if they so choose • 100-year floodplains • 5-year time-of-travel, public water supplies • DOES NOT overturn Pleasant City or Barnesville so may not hold up in court if challenged
  • 15. What Can Locals Do? • Find out if you even own your mineral rights (If there are old wells, the rights may have transferred) • Find out who owns your lease – selling/swapping like sub-prime mortgages • Remember, you can be bundled
  • 16. Drilling Permit Issued in your Source Water Protection Area? Contact all applicable federal, state, regional & local agencies to MAKE SURE relevant permits have been obtained - Wetlands/Stream crossings (OEPA/ACE) - Flood plains (local admin/conservancy district) - Setbacks from private wells (local health dept.) - Roads & Bridge weight limits (Co. Engineer, Twp., Municipality) - Water withdrawal permits (ODNR DSWR) If permitted sites violate laws/rules, notify ODNR O&G (Driller responsible for obtaining permits) & local Senator/Rep.
  • 17. Test Your Water Before They Drill • Test before drilling • Test after drilling • Test regularly after well is installed & producing • Pros & Cons of fingerprinting methane
  • 18. Learn from Munroe Falls • Using the courts to protect water • Appeals to prevent drilling in 5-yr TOT area; denied but permits expired • Enforce building codes including permits for site construction; upheld & stiff fines collected
  • 19. What are Your Rights? Local water suppliers can place an observer at drilling sites w/in 5-yr TOT if in Management Plan for all land-use activities Nothing in Sub SB 165 to preclude O&G drilling sites • Observer needs OSHA certification • Have all required oilfield safety equipment • Stay out of way of drilling activities • Coordinate w/ ODNR O&G
  • 20. Be at the Rulemaking Table • Advocate for your water system • Comment on all rule changes, especially as they relate to YOUR supply • Provide technical comments, especially those related to impacts to your well field • Don’t comment, you may lose standing • Make sure your local Ohio Rep/Senator have copies of your comments Request they offer legislation to level the playing field and return local zoning & source water protection planning to the permitting process
  • 21. Wellfield Recharge Area Leased? • No Funding available to make communities whole if wellfield is damaged • Establish replacement cost & water needs ahead of time • Document service area, number of taps, average daily water usage • Document alternative sources available to you & level of water rationing needed to maintain services • Discuss plans needed to carry out emergency back-up water for your community including length of time to bring alternative system on line
  • 22. Wellfield Recharge Area Leased? • Notify ODNR O&G in writing of water supply replacement information • CC your local Rep/Senator, ODNR Director & the Governor • Send Certified copy to the Drilling Company and Permit Holder • Ask them to submit a plan to fund cost of replacement and manage emergency supplies before drilling begins • Make all responses part of the public record in case of future litigation • Educate your customer base about your pro- active protection efforts
  • 23. Join Forces with your Neighbors • Consider petitioning a Sole Source Aquifer • 5 already in Ohio, parts of 20 counties • NW Ohio MICHINDO SSA Petition still open • Tuscarawas Watershed Combined SSA Petition in progress • Documents replacement costs of ground water public water supplies on the Federal level
  • 24. Contacts for Ohio Journal of Science Papers & this Presentation OFFWG, Dr. Julie Weatherington-Rice, B&W, OSU FABE, weatherington-ri.1@osu.edu OFFWG, Dr. Ann Christy, OSU FABE, christy.14@osu.edu Bennett & Williams, Linda Aller RS, Laller@bennettandwilliams.com Ohio Journal of Science Web Link at OSU, https://kb.osu.edu/dspace/handle/1811/686 Ohio EPA Division of Drinking and Ground Waters Source Water Assessment and Protection Program, Keeping Ohio’s Water Clean Ohio Fracture Flow Working www.epa.ohio.gov/ddagw/swap_ssa.aspx Group