This document discusses managing environmental risk for successful oil and gas shale investment. It outlines the economic opportunities in shale plays and the typical drilling and fracturing process. Some key environmental risks that must be managed include issues related to wellbore integrity, flowback water management, spills, air emissions, and induced seismicity from wastewater injection. Both state and federal statutes apply, including regulations around casing/cementing, waste transport and disposal, air and water quality. Litigation has been filed alleging environmental damages. Investors can evaluate risk by ensuring companies follow best practices around drilling, fracturing, and waste management to protect water and air quality.
Unconventional petroleum refers to oil and gas deposits that require advanced extraction technologies and greater investment compared to conventional methods. It includes sources like oil sands, oil shales, coal-based liquids, and gas from shale formations and coal beds that has not migrated from its source rock. While more difficult to extract, unconventional sources are increasingly important as conventional reserves dwindle and new technologies make extraction economically viable.
The document discusses the potential for shale oil and gas production in Pakistan. It begins by providing background on shale formations and the history of shale gas extraction. It then reviews global shale oil and gas resources and production, particularly in the United States. Technological and economic benefits of shale production are examined for both global and Pakistan-specific contexts. Environmental aspects and concerns related to various stages of shale extraction processes are also outlined. The document concludes by recommending that Pakistan establish policies and conduct thorough feasibility studies to minimize environmental impacts and ensure safe shale production.
PAS Shale Gas Exploration Planning Workshop (Nottingham & Manchester)PAS_Team
This document summarizes a planning workshop on shale gas exploration. It includes an overview of the Planning Advisory Service and updates from the UK government on shale gas regulations and infrastructure bill provisions. The document also provides background on shale gas exploration techniques, including hydraulic fracturing, and potential environmental impacts. Key topics discussed include UK shale gas resources, licensing rounds, exploration and production phases, and drilling and fracturing processes.
The document summarizes key aspects of shale gas development in North America and globally. It discusses how shale gas production differs from conventional reservoirs by requiring hydraulic fracturing to stimulate low permeability shale formations. The shale revolution has transformed expectations for natural gas supply by making vast shale gas resources technically and economically recoverable. This has major implications for North America's and the world's natural gas markets by reducing reliance on imports. However, issues around hydraulic fracturing continue to be debated regarding environmental and public health impacts.
The BP oil spill occurred in the Gulf of Mexico on April 20, 2010 when the Deepwater Horizon oil rig experienced a blowout and explosion. The blowout preventers failed to activate to control the oil and gas surge from the well. Over 1 million pounds of black carbon pollution was released into the atmosphere from controlled burns of the spilled oil. The spill had devastating impacts on the Gulf's biosphere that may last for decades by changing the ability of the hydrosphere to support some forms of life. BP's response was criticized for not acting quickly enough to contain the spill and limit environmental damage, though they did provide some compensation to affected residents and businesses.
The document discusses shale oil and gas, focusing on unconventional reservoirs like the Eagle Ford and Bakken shales. It provides details on:
1) How shale formations were deposited in anoxic marine environments and matured over time to generate oil and gas from organic-rich source rocks.
2) Technological advances like horizontal drilling and hydraulic fracturing that made extraction of shale oil and gas economically viable.
3) Key properties that make shales good targets, like total organic carbon content and thermal maturity levels in the oil and gas windows.
4) Major shale oil and gas plays in the US like the Eagle Ford and Bakken, their geologic settings, production characteristics influenced by maturity
This document provides an overview of a study on shale gas in India. It discusses the potential for shale gas extraction in India based on learnings from successful extraction in the US. Key sections cover the technology developments enabling economical shale gas extraction, India's identified shale gas basins and their potential, possible players in the Indian market, and increasing momentum for shale gas exploration in India with activities by public and private sector companies and the government. Challenges to shale gas extraction in India are also acknowledged.
Unconventional petroleum refers to oil and gas deposits that require advanced extraction technologies and greater investment compared to conventional methods. It includes sources like oil sands, oil shales, coal-based liquids, and gas from shale formations and coal beds that has not migrated from its source rock. While more difficult to extract, unconventional sources are increasingly important as conventional reserves dwindle and new technologies make extraction economically viable.
The document discusses the potential for shale oil and gas production in Pakistan. It begins by providing background on shale formations and the history of shale gas extraction. It then reviews global shale oil and gas resources and production, particularly in the United States. Technological and economic benefits of shale production are examined for both global and Pakistan-specific contexts. Environmental aspects and concerns related to various stages of shale extraction processes are also outlined. The document concludes by recommending that Pakistan establish policies and conduct thorough feasibility studies to minimize environmental impacts and ensure safe shale production.
PAS Shale Gas Exploration Planning Workshop (Nottingham & Manchester)PAS_Team
This document summarizes a planning workshop on shale gas exploration. It includes an overview of the Planning Advisory Service and updates from the UK government on shale gas regulations and infrastructure bill provisions. The document also provides background on shale gas exploration techniques, including hydraulic fracturing, and potential environmental impacts. Key topics discussed include UK shale gas resources, licensing rounds, exploration and production phases, and drilling and fracturing processes.
The document summarizes key aspects of shale gas development in North America and globally. It discusses how shale gas production differs from conventional reservoirs by requiring hydraulic fracturing to stimulate low permeability shale formations. The shale revolution has transformed expectations for natural gas supply by making vast shale gas resources technically and economically recoverable. This has major implications for North America's and the world's natural gas markets by reducing reliance on imports. However, issues around hydraulic fracturing continue to be debated regarding environmental and public health impacts.
The BP oil spill occurred in the Gulf of Mexico on April 20, 2010 when the Deepwater Horizon oil rig experienced a blowout and explosion. The blowout preventers failed to activate to control the oil and gas surge from the well. Over 1 million pounds of black carbon pollution was released into the atmosphere from controlled burns of the spilled oil. The spill had devastating impacts on the Gulf's biosphere that may last for decades by changing the ability of the hydrosphere to support some forms of life. BP's response was criticized for not acting quickly enough to contain the spill and limit environmental damage, though they did provide some compensation to affected residents and businesses.
The document discusses shale oil and gas, focusing on unconventional reservoirs like the Eagle Ford and Bakken shales. It provides details on:
1) How shale formations were deposited in anoxic marine environments and matured over time to generate oil and gas from organic-rich source rocks.
2) Technological advances like horizontal drilling and hydraulic fracturing that made extraction of shale oil and gas economically viable.
3) Key properties that make shales good targets, like total organic carbon content and thermal maturity levels in the oil and gas windows.
4) Major shale oil and gas plays in the US like the Eagle Ford and Bakken, their geologic settings, production characteristics influenced by maturity
This document provides an overview of a study on shale gas in India. It discusses the potential for shale gas extraction in India based on learnings from successful extraction in the US. Key sections cover the technology developments enabling economical shale gas extraction, India's identified shale gas basins and their potential, possible players in the Indian market, and increasing momentum for shale gas exploration in India with activities by public and private sector companies and the government. Challenges to shale gas extraction in India are also acknowledged.
This document discusses shale gas exploration and production. It begins by defining unconventional gas formations like shale gas, which form within organic-rich shale source rock rather than migrating to discrete traps like conventional gas. It then discusses properties of shale like total organic content and thermal maturity that determine gas potential. Key techniques for shale gas production include horizontal drilling and hydraulic fracturing. Fracturing fluid consists mainly of water and sand but also chemical additives. Produced water from drilling and fracturing requires management and often treatment due to high total dissolved solids.
Shale gas is natural gas i.e. trapped within Shale. For to extract it we have use some extraction techniques like Horizontal Drilling or Hydraulic Fracking.
British petroleum & gulf oil spill of 2010Aditi Podder
BP is the third largest energy company in the world. In 2010, an explosion on the BP-operated Deepwater Horizon rig caused the largest marine oil spill in history. Over 3 months, nearly 5 million barrels of oil spilled into the Gulf of Mexico, causing extensive environmental and economic damage. BP spent billions on cleanup and restoration efforts. New technologies were employed to contain, disperse, and remove the spilled oil, including booms, dispersants, and microbes. However, a large percentage of oil remains in the Gulf environment over a decade later. The spill significantly impacted tourism and fishing industries and wildlife in the region. BP continues restoration work and moving towards more sustainable biofuel production.
The document provides information on shale gas production from shale formations through horizontal drilling and hydraulic fracturing. It describes the multi-stage well construction process, including drilling vertically to depth before deviating the wellbore horizontally within the shale layer. Hydraulic fracturing is then used to create fractures in the shale, allowing natural gas to flow into the wellbore. Testing follows to measure gas and fluid recovery from the shale reservoir.
A brief presentation on the risks and likely benefits of allowing mining on the East Coast of NZ prepared for Ngāti Porou, May 2012.
More info at:
www.nodrilling.org.nz
www.frackfreetairawhiti.org.nz
Update on Hydraulic Fracturing:Preparing for Gasland 2Now Dentons
In this presentation, FMC Law's Alex MacWilliam discusses hydraulic fracturing. The presentation covers the hydraulic fracturing process; the legislative and regulatory management of key issues related to hydraulic fracturing; liability issues in fracturing litigation; finally, lessons and trends related to hydraulic fracturing.
Open Pit Mining Ban - Should the Philippines Jump into the Bandwagon?Fernando Penarroyo
The government should be circumspect in imposing such a ban because it may open itself to arbitration and litigation exposing itself to claims for damages by affected mineral agreement holders. Imposing a ban will further aggravate uncertainties concerning the administration of environmental regulations, public policy and the legal system. By not imposing a ban, the government can maintain an investment atmosphere conducive to risk capital and avoid the influx of illegal miners. There are other forms of legislation that will achieve the the purpose of environment protection and preventing negative impacts on the health of surrounding communities. Also, the government should strengthen the institutions involved in monitoring and supervising mining operations so that they will have the scientific and legal basis to close certain mining operations because of environmental degradation safety issues.
This document discusses hydraulic fracturing and proposes potential economic solutions to address its environmental and social costs. It summarizes that while hydraulic fracturing is touted as an economic necessity, it poses risks to groundwater and emissions. It lacks oversight and does not account for all costs. The document proposes repealing the 2005 law exempting fracking from Clean Water Act oversight, implementing performance standards to limit water impacts, and requiring performance bonds to cover cleanup costs from spills. Passing the proposed 2012 FRAC Act could bring fracking under a single federal authority to oversee risks.
Parry_2015_FORCE_Underexplored_Plays_Stavanger_Oil Seeps - the only real Dire...Chris Parry
Chris Parry presents on the importance of hydrocarbon seeps as direct indicators of oil and gas. Seeps have led to most major oil discoveries through visible oil staining and odors at the surface. Both macroseepage and microseepage occur, with microseepage traveling vertically from charged reservoirs. Offshore, seeps manifest as pockmarks and mud volcanoes and can be detected using satellite imagery by observing oil slicks on the surface that dampen wind ripples. Seep sampling through gravity coring and geochemical analysis of cores reveals subsurface characteristics like thermal maturity and source rock type through biomarkers. Seeps significantly reduce exploration risk by indicating the presence and maturity of source rocks.
On 20 April 2010, the semi-submersible exploratory offshore drilling rig Deepwater Horizon exploded after a blowout; it sank two days later, killing 11 people. This blowout in the Macondo Prospect field in the Gulf of Mexico resulted in a partially capped oil well one mile below the surface of the water. Experts estimate the gusher to be flowing at 35,000 to 60,000 barrels per day (5,600 to 9,500 m3/d) of oil.
This document discusses shale oil and gas development and outlines potential risks and solutions. It begins by explaining the key technologies and characteristics of shale development, including horizontal drilling and hydraulic fracturing across large areas requiring many wells. It then outlines various risks to air, water, land and communities from current practices, including water usage, chemical spills, induced seismicity and traffic accidents. The document proposes a framework for addressing these risks through best practices like green completions, closed loop systems, monitoring and public reporting of air and water quality data to demonstrate effective risk management.
A new report from the National Wildlife Federation looks at how 20 species that depend on a healthy Gulf are faring in the wake of the BP oil spill. The full extent of the spill’s impacts may take years or even decades to unfold, but Five Years & Counting: Gulf Wildlife in the Aftermath of the Deepwater Horizon Disaster examines what the science tells us so far.
GEF International Waters Focal Area (IWC5 Presentation)Iwl Pcu
Alfred Duda, Global Environment Facility
Presentation given during the 5th GEF Biennial International Waters Conference in Cairns, Australia during the opening plenary.
The document discusses the global impacts of toxic oil spills on marine life and habitats. It notes that oil spills release hydrocarbons and other pollutants that block sunlight and lower oxygen levels in water, creating barriers for marine life. Researchers are studying long-term impacts like mutations or adaptations in marine creatures exposed to polluted environments from past oil disasters. The frequency of oil spills is increasing with rising global energy consumption, putting more marine ecosystems at risk of damage that can last for decades.
This document discusses stormwater permitting requirements for oil and gas operations. It explains that stormwater runoff from oil and gas sites can pollute nearby waterways with sediments, debris, and chemicals from construction activities. While the Clean Water Act requires stormwater permits for most construction sites larger than 1 acre, oil and gas operations are exempt from some permitting requirements. In Pennsylvania, oil and gas activities disturbing less than 5 acres only need an Erosion and Sediment Control Plan, not an NPDES permit, though runoff from these small sites can still contaminate waterways. Stricter permitting is needed for all oil and gas construction sites to properly manage stormwater and protect water quality.
Deviprasad Goenka Management college of Media Studies
http://www.dgmcms.org.in/
Subject:COASTAL REGULATORY ZONE
Lesson :CRZ
Faculty Name: Saurabh Deshpande
Shell Canada has implemented several conservation offset projects to compensate for environmental impacts from its oil sands operations. Some key points:
- Shell follows a mitigation hierarchy to first avoid, minimize, and mitigate impacts before using offsets. It has a portfolio of conservation projects dating back 20 years.
- Shell supports the concept of conservation offsets as compensation for residual impacts in critical habitat areas and aims for land footprint neutrality in its heavy oil upstream business.
- Example projects include the True North Forest, a 121,000 hectare protected area, and the Buffalo Hills Conservation Ranch, a cattle ranch converted to a conservation property with diverse habitats.
- Implementation challenges include establishing clear policy, quantifying biodiversity impacts and
The document summarizes India's Coastal Regulation Zone (CRZ) Notification of 2018. It divides coastal areas into four categories - CRZ-I to CRZ-IV based on environmental sensitivity. CRZ-I are most ecologically sensitive, while CRZ-II are urban areas. CRZ-III are rural areas with population densities above or below 2,161 per square km. CRZ-IV covers sea, tidal waters and waters influenced by tides. The notification eases some construction restrictions but is criticized for potentially threatening coastal ecology and livelihoods for increased commercialization and tourism development.
The document discusses India's Coastal Regulation Zone (CRZ) notification and integrated coastal zone management. It defines the coastal zone and classifies it into four categories (CRZ-I, II, III, IV) based on environmental sensitivity. CRZ-I covers ecologically sensitive areas where construction is heavily restricted. The notification prohibits certain activities and regulates others in coastal areas to balance development with environmental protection. State coastal zone management authorities evaluate projects for clearance based on zonal classifications and coastal zone management plans.
This document discusses several issues related to hydraulic fracturing including water usage, fracking fluid disclosure, infrastructure concerns, wastewater discharge, groundwater protection, and other side effects like earthquakes and air pollution. It outlines recent federal actions by the EPA to regulate air emissions and require reporting. It also discusses a study by the National Academy of Sciences on fracking and earthquakes. Finally, it provides updates on state actions and regulations in places like North Carolina, Vermont, New York, Maryland, and Mississippi regarding hydraulic fracturing and related activities.
NRDC: Water Facts - Hydraulic Fracturing Can Potentially Contaminate Drinking...Marcellus Drilling News
A scare tactic sheet of recycled arguments agains hydraulic fracturing with no evidence to support their claims. Published by the National Resources Defense Council in July 2012.
Final project fracking example power point only fall 2013 1Altman Heddens
The document discusses hydraulic fracturing (fracking) and its implications for a rural landowner in Ohio. It provides background on the fracking process and its controversy, noting debates around economic benefits versus environmental and health risks. The landowner's neighbor signed a gas lease for $4,000 per acre, and the document explores factors for the landowner to consider, like revenue, jobs, and uncertainty around long term impacts. It summarizes different stakeholder perspectives and the complex, uncertain research landscape around fracking.
This document discusses shale gas exploration and production. It begins by defining unconventional gas formations like shale gas, which form within organic-rich shale source rock rather than migrating to discrete traps like conventional gas. It then discusses properties of shale like total organic content and thermal maturity that determine gas potential. Key techniques for shale gas production include horizontal drilling and hydraulic fracturing. Fracturing fluid consists mainly of water and sand but also chemical additives. Produced water from drilling and fracturing requires management and often treatment due to high total dissolved solids.
Shale gas is natural gas i.e. trapped within Shale. For to extract it we have use some extraction techniques like Horizontal Drilling or Hydraulic Fracking.
British petroleum & gulf oil spill of 2010Aditi Podder
BP is the third largest energy company in the world. In 2010, an explosion on the BP-operated Deepwater Horizon rig caused the largest marine oil spill in history. Over 3 months, nearly 5 million barrels of oil spilled into the Gulf of Mexico, causing extensive environmental and economic damage. BP spent billions on cleanup and restoration efforts. New technologies were employed to contain, disperse, and remove the spilled oil, including booms, dispersants, and microbes. However, a large percentage of oil remains in the Gulf environment over a decade later. The spill significantly impacted tourism and fishing industries and wildlife in the region. BP continues restoration work and moving towards more sustainable biofuel production.
The document provides information on shale gas production from shale formations through horizontal drilling and hydraulic fracturing. It describes the multi-stage well construction process, including drilling vertically to depth before deviating the wellbore horizontally within the shale layer. Hydraulic fracturing is then used to create fractures in the shale, allowing natural gas to flow into the wellbore. Testing follows to measure gas and fluid recovery from the shale reservoir.
A brief presentation on the risks and likely benefits of allowing mining on the East Coast of NZ prepared for Ngāti Porou, May 2012.
More info at:
www.nodrilling.org.nz
www.frackfreetairawhiti.org.nz
Update on Hydraulic Fracturing:Preparing for Gasland 2Now Dentons
In this presentation, FMC Law's Alex MacWilliam discusses hydraulic fracturing. The presentation covers the hydraulic fracturing process; the legislative and regulatory management of key issues related to hydraulic fracturing; liability issues in fracturing litigation; finally, lessons and trends related to hydraulic fracturing.
Open Pit Mining Ban - Should the Philippines Jump into the Bandwagon?Fernando Penarroyo
The government should be circumspect in imposing such a ban because it may open itself to arbitration and litigation exposing itself to claims for damages by affected mineral agreement holders. Imposing a ban will further aggravate uncertainties concerning the administration of environmental regulations, public policy and the legal system. By not imposing a ban, the government can maintain an investment atmosphere conducive to risk capital and avoid the influx of illegal miners. There are other forms of legislation that will achieve the the purpose of environment protection and preventing negative impacts on the health of surrounding communities. Also, the government should strengthen the institutions involved in monitoring and supervising mining operations so that they will have the scientific and legal basis to close certain mining operations because of environmental degradation safety issues.
This document discusses hydraulic fracturing and proposes potential economic solutions to address its environmental and social costs. It summarizes that while hydraulic fracturing is touted as an economic necessity, it poses risks to groundwater and emissions. It lacks oversight and does not account for all costs. The document proposes repealing the 2005 law exempting fracking from Clean Water Act oversight, implementing performance standards to limit water impacts, and requiring performance bonds to cover cleanup costs from spills. Passing the proposed 2012 FRAC Act could bring fracking under a single federal authority to oversee risks.
Parry_2015_FORCE_Underexplored_Plays_Stavanger_Oil Seeps - the only real Dire...Chris Parry
Chris Parry presents on the importance of hydrocarbon seeps as direct indicators of oil and gas. Seeps have led to most major oil discoveries through visible oil staining and odors at the surface. Both macroseepage and microseepage occur, with microseepage traveling vertically from charged reservoirs. Offshore, seeps manifest as pockmarks and mud volcanoes and can be detected using satellite imagery by observing oil slicks on the surface that dampen wind ripples. Seep sampling through gravity coring and geochemical analysis of cores reveals subsurface characteristics like thermal maturity and source rock type through biomarkers. Seeps significantly reduce exploration risk by indicating the presence and maturity of source rocks.
On 20 April 2010, the semi-submersible exploratory offshore drilling rig Deepwater Horizon exploded after a blowout; it sank two days later, killing 11 people. This blowout in the Macondo Prospect field in the Gulf of Mexico resulted in a partially capped oil well one mile below the surface of the water. Experts estimate the gusher to be flowing at 35,000 to 60,000 barrels per day (5,600 to 9,500 m3/d) of oil.
This document discusses shale oil and gas development and outlines potential risks and solutions. It begins by explaining the key technologies and characteristics of shale development, including horizontal drilling and hydraulic fracturing across large areas requiring many wells. It then outlines various risks to air, water, land and communities from current practices, including water usage, chemical spills, induced seismicity and traffic accidents. The document proposes a framework for addressing these risks through best practices like green completions, closed loop systems, monitoring and public reporting of air and water quality data to demonstrate effective risk management.
A new report from the National Wildlife Federation looks at how 20 species that depend on a healthy Gulf are faring in the wake of the BP oil spill. The full extent of the spill’s impacts may take years or even decades to unfold, but Five Years & Counting: Gulf Wildlife in the Aftermath of the Deepwater Horizon Disaster examines what the science tells us so far.
GEF International Waters Focal Area (IWC5 Presentation)Iwl Pcu
Alfred Duda, Global Environment Facility
Presentation given during the 5th GEF Biennial International Waters Conference in Cairns, Australia during the opening plenary.
The document discusses the global impacts of toxic oil spills on marine life and habitats. It notes that oil spills release hydrocarbons and other pollutants that block sunlight and lower oxygen levels in water, creating barriers for marine life. Researchers are studying long-term impacts like mutations or adaptations in marine creatures exposed to polluted environments from past oil disasters. The frequency of oil spills is increasing with rising global energy consumption, putting more marine ecosystems at risk of damage that can last for decades.
This document discusses stormwater permitting requirements for oil and gas operations. It explains that stormwater runoff from oil and gas sites can pollute nearby waterways with sediments, debris, and chemicals from construction activities. While the Clean Water Act requires stormwater permits for most construction sites larger than 1 acre, oil and gas operations are exempt from some permitting requirements. In Pennsylvania, oil and gas activities disturbing less than 5 acres only need an Erosion and Sediment Control Plan, not an NPDES permit, though runoff from these small sites can still contaminate waterways. Stricter permitting is needed for all oil and gas construction sites to properly manage stormwater and protect water quality.
Deviprasad Goenka Management college of Media Studies
http://www.dgmcms.org.in/
Subject:COASTAL REGULATORY ZONE
Lesson :CRZ
Faculty Name: Saurabh Deshpande
Shell Canada has implemented several conservation offset projects to compensate for environmental impacts from its oil sands operations. Some key points:
- Shell follows a mitigation hierarchy to first avoid, minimize, and mitigate impacts before using offsets. It has a portfolio of conservation projects dating back 20 years.
- Shell supports the concept of conservation offsets as compensation for residual impacts in critical habitat areas and aims for land footprint neutrality in its heavy oil upstream business.
- Example projects include the True North Forest, a 121,000 hectare protected area, and the Buffalo Hills Conservation Ranch, a cattle ranch converted to a conservation property with diverse habitats.
- Implementation challenges include establishing clear policy, quantifying biodiversity impacts and
The document summarizes India's Coastal Regulation Zone (CRZ) Notification of 2018. It divides coastal areas into four categories - CRZ-I to CRZ-IV based on environmental sensitivity. CRZ-I are most ecologically sensitive, while CRZ-II are urban areas. CRZ-III are rural areas with population densities above or below 2,161 per square km. CRZ-IV covers sea, tidal waters and waters influenced by tides. The notification eases some construction restrictions but is criticized for potentially threatening coastal ecology and livelihoods for increased commercialization and tourism development.
The document discusses India's Coastal Regulation Zone (CRZ) notification and integrated coastal zone management. It defines the coastal zone and classifies it into four categories (CRZ-I, II, III, IV) based on environmental sensitivity. CRZ-I covers ecologically sensitive areas where construction is heavily restricted. The notification prohibits certain activities and regulates others in coastal areas to balance development with environmental protection. State coastal zone management authorities evaluate projects for clearance based on zonal classifications and coastal zone management plans.
This document discusses several issues related to hydraulic fracturing including water usage, fracking fluid disclosure, infrastructure concerns, wastewater discharge, groundwater protection, and other side effects like earthquakes and air pollution. It outlines recent federal actions by the EPA to regulate air emissions and require reporting. It also discusses a study by the National Academy of Sciences on fracking and earthquakes. Finally, it provides updates on state actions and regulations in places like North Carolina, Vermont, New York, Maryland, and Mississippi regarding hydraulic fracturing and related activities.
NRDC: Water Facts - Hydraulic Fracturing Can Potentially Contaminate Drinking...Marcellus Drilling News
A scare tactic sheet of recycled arguments agains hydraulic fracturing with no evidence to support their claims. Published by the National Resources Defense Council in July 2012.
Final project fracking example power point only fall 2013 1Altman Heddens
The document discusses hydraulic fracturing (fracking) and its implications for a rural landowner in Ohio. It provides background on the fracking process and its controversy, noting debates around economic benefits versus environmental and health risks. The landowner's neighbor signed a gas lease for $4,000 per acre, and the document explores factors for the landowner to consider, like revenue, jobs, and uncertainty around long term impacts. It summarizes different stakeholder perspectives and the complex, uncertain research landscape around fracking.
Este documento analisa a representação do personagem bissexual Osmar na novela Viver a Vida. Osmar é um produtor de moda coadjuvante cuja bissexualidade só é revelada na última semana, sendo tratada de forma banal. No entanto, seu relacionamento com Alice e Narciso questiona a heteronormatividade ao formar um trio não monogâmico. O documento discute a gestualidade e vestimenta não estereotipadas de Osmar.
Sham Report on Fracking "Failures" in the Pennsylvania Marcellus ShaleMarcellus Drilling News
This document discusses environmental violations committed by oil and gas companies conducting fracking operations in Pennsylvania between 2011-2014. It finds:
- The top 20 fracking companies in Pennsylvania committed on average 1.5 violations per day, with thousands of violations in total related to water and air pollution, improper waste disposal, and other lapses posing risks to public health.
- Major companies like Cabot, Chesapeake, Range Resources, and Chief Oil & Gas ranked among the top violators, as did Pennsylvania-based firms. Some violations resulted in chemical spills into waterways and groundwater contamination.
- Both large multi-national corporations and smaller local companies were frequent violators. The number of violations
This document discusses the impacts of hydraulic fracturing (fracking) on rural communities. It argues that while media focuses on potential environmental issues, a more pressing problem is the impact on community relationships and infrastructure. Heavy truck traffic from fracking damages local roads, and financial gains from land leasing can divide communities. The document advocates for better partnerships between energy companies and local governments to manage these issues and ensure communities benefit from fracking.
Hydraulic Fracturing or ‘Fracking’: A Short Summary of Current Knowledge and ...Marcellus Drilling News
A small-scale study written by Dr. Dave Healy with the University of Aberdeen (Ireland), and released by the Irish Environmental Protection Agency. This 26-page "preliminary study" explores and summarizes current knowledge about the environmental considerations and impacts of shale gas exploration and extraction, and in particular the use of hydraulic fracturing technology.
University of Missouri researchers have discovered that an oil and natural gas drilling technique called hydraulic fracturing uses chemicals that can disrupt the body's hormones. The researchers found that the endocrine-disrupting chemicals used in the process could interfere with a class of hormones that includes testosterone and estrogen. The findings were published in the journal Endocrinology.
News = http://medicine.missouri.edu/news/0214.php
Study = http://medicine.missouri.edu/news/docs/en.2013-1697.full.pdf
Natural gas production is at an all-time high which has led to the lowest gas prices in a generation. Many suspect the United States will eventually be the world’s larger exporter of Natural Gas. The process of Hydraulic Fracturing has been one of the primary reasons for the abundant supply of
natural gas.
1. Hydraulic fracturing, also known as fracking, has been used since the 1940s to stimulate oil and gas production but recent technological advances have led to a modern fracking boom.
2. Possible pathways for groundwater contamination from fracking include leaking storage pits for wastewater, cracks in well casings allowing fluid migration, and connections between new and natural fractures.
3. Research on the health effects of contaminated water near fracking sites suggests increased risk of low birth weight, congenital heart defects, and neural tube defects. However, more research is still needed to fully understand risks to public health.
The Social and Environmental Effects of Hydraulic Fracturing in the United St...Imran Khan
This document is a dissertation submitted by Imran Sean Khan in partial fulfillment of the requirements for a Master of Science degree in Process Systems Engineering from the University of Surrey. The dissertation investigates the social and environmental effects of hydraulic fracturing in the United States. It begins with an introduction that provides background on unconventional natural gas extraction via hydraulic fracturing and discusses the energy shift in the U.S. toward increased natural gas usage. The document then outlines the research aims, objectives, and scope. It will analyze relevant literature to understand the social and environmental implications of fracking and develop a plan for the industry to minimize identified effects.
Chamber of Commerce report that asks and answers the important question: What would happen if the hydraulic fracturing for oil and gas was banned in the U.S.? According to research it would lead to the loss of 15 million jobs and an average increase in the price of electricity and gas doubling.
Hydraulic Fracturing and Marcellus Shale Gas 11 22 2011Michael Klein
The drilling technique of Hydraulic Fracturing has allowed natural gas producers to extract natural gas economically from deep shale formations. This innovative drilling technique has made enormous quantities of natural gas available in wide areas of the United States from Texas, Louisiana, Pennsylvania, New York, Wyoming, North Carolina, and Colorado. The drilling technique of hydraulic fracturing accounts for roughly a quarter of total natural gas production in the United States as cited by the Energy Information Administration. With the increased emphasis on the use of natural gas in our federal energy policy, there will be new regulations, processes, and resources that will be required to mitigate the risks to human health and the environment from this new drilling technique. The presentation discusses the process of hydraulic fracturing; the threats that are posed to human health and the environment, areas in the USA where the process is used with an emphasis on the Marcellus Shale formation, current and new regulations being put into place, and plaintiff challenges to the process.
Hydraulic fracturing is necessary to produce economic quantities of gas from shale reservoirs with very low permeability. Complex fracture geometry is important to maximize contact between the fracture and reservoir. The fracturing process involves pumping fluid to create fractures, then a slurry of proppant to prop open the fractures. Proppant and fluid selection depends on factors like embedment and closure stress. While aspects like rate, volume, and proppant quantity can be controlled, the natural variations in shale make the exact fracture geometry and productivity impacts difficult to predict. Monitoring tools provide some insight into the fracture treatment results.
This document provides an overview of shale gas in the USA. It discusses the US shale gas revolution, which began with increased production from the Barnett Shale play using horizontal drilling and hydraulic fracturing. This led US natural gas production to increase significantly between 2000-2010. It also discusses key shale gas basins in the US like the Marcellus shale and the production and distribution of shale gas across the US natural gas pipeline network. The large increase in shale gas production has positively impacted the US energy market through increased domestic supply, lower natural gas prices, and economic benefits.
This document outlines a public relations plan to oppose fracking. The plan aims to improve public opinion of the anti-fracking organization and sway audiences to understand why fracking should end within 6 months. The target audience is communities concerned about water contamination and health risks from fracking. Strategies include delivering an educational message through meetings, materials, and lobbying over 1-2 months, followed by 1-2 months of message delivery and lobbying. Effectiveness will be evaluated through surveys and comments on social media pages gauging audience attitudes after all objectives are met.
This document discusses hydraulic fracturing, which is a well stimulation technique used to increase production from low permeability reservoirs. It involves injecting fluid into the wellbore at high pressure to create fractures in the rock formation. Proppants, such as sand or ceramic beads, are placed in the fractures to keep them open after pressure is removed. Key aspects covered include fracture modeling, optimization of fracture size and conductivity, candidate well selection, and a case study showing production increases from hydraulic fracturing treatment.
1) The process of hydraulic fracturing involves six main steps: seismic exploration, site preparation, drilling the well, completing the well, finishing the site, and marketing the gas.
2) Drilling the well involves drilling an average of 1.5 miles below the surface and can extend horizontal laterals up to 3,500 feet with minimal surface disruption, reducing the industry's surface footprint by 90%.
3) Completing the well involves hydraulic fracturing or "fracking" which uses water, sand and additives pumped under high pressure to fracture the rock and release natural gas for extraction.
Will it leak?: Discussions of leakage risk from subsurface storage of carbon ...IEA-ETSAP
The document discusses carbon capture and storage (CCS) and the potential risks of leakage from subsurface storage of carbon dioxide. It provides background on CCS, explaining that carbon dioxide is captured from industrial sources and injected underground for permanent storage. It then discusses four main types of potential subsurface leakage: 1) capillary leakage if seal rocks have larger particles, 2) exceeding the fracture gradient of the seal, 3) leakage along or across faults, and 4) leakage from new or legacy boreholes. The document analyzes case studies of both CCS and carbon capture, utilization, and storage (CCUS) projects to illustrate examples of each leakage type. It concludes that CCS/CCUS has a low overall risk but is not
Hydraulic fracturing, or fracking, is used
to increase the flow of oil or natural
gas from a well. It has been used safely
around the world since 1949 in over two
and a half million wells.
Santos has used fracking to produce
oil and gas in South Australia and
Queensland for nearly 50 years. It has
also been used in other industries to
increase the flow of water wells or
to clean up hazardous waste sites4.
In over 60 years of operations, there
has not been one proven case of water
contamination as a result of fracking.
Studies in the United States, United
Kingdom and here in Australia have
concluded that fracking can be
undertaken safely.
This document discusses shale gas, including its formation, extraction through hydraulic fracturing and horizontal drilling, presence worldwide and in India, benefits and concerns. Shale gas forms from natural gas trapped within shale rock formations thousands of feet underground. It is extracted through hydraulic fracturing and horizontal drilling. While shale gas is a viable energy source and cleaner than other fossil fuels, there are environmental and social concerns around its extraction methods and impacts. The document outlines the current state of shale gas production globally and potential for development in India.
Hydraulic fracturing has become a core controversy over the last decade. It involves injecting water, chemicals and sand underground at high pressure to extract oil and gas from shale rock thousands of feet below the surface. While it has significantly increased US oil and gas production, concerns about potential water pollution and large water usage have been raised. New wastewater treatment methods are helping to address these issues and allow reuse of fracking water. Overall, hydraulic fracturing has had significant economic benefits for the US through job creation and reducing energy costs, though the long term environmental impacts require further study.
Hydraulic fracturing, also known as fracking, involves injecting fluid into shale rock formations to force open cracks and allow natural gas and oil to flow out. While fracking has increased US energy independence and reduced coal use, it also poses risks to the environment and public health. Fracking requires large amounts of water and chemicals and has been linked to groundwater contamination, air pollution, increased seismic activity, and health issues in humans and animals. However, replacing coal plants with natural gas could significantly reduce greenhouse gas emissions while more renewable technologies are developed. The dangers of fracking must be weighed against its current role in transitioning from coal to cleaner energy sources over the long run.
This document summarizes the health and environmental risks of unconventional gas extraction based on a study of the industry and government policies. It finds that while the government claims natural gas can be a "bridge" to renewable energy and that regulations will prevent issues, numerous studies have shown higher rates of water and air pollution near gas fields. The industrialization of the countryside with well pads, pipelines, and compressor stations also decreases quality of life. The risks of groundwater contamination, air pollution, and methane leaks are high given the large number of wells and extent of infrastructure involved despite claims by government and industry that best practices will prevent problems.
Fracking: A Sensible Response to Peak Conventional Oil? Paul BruceManu Caddie
This document summarizes Paul Bruce's concerns about fracking in New Zealand. It outlines several risks of fracking including water contamination, air pollution, health impacts, and increased greenhouse gas emissions exacerbating climate change. It notes bans on fracking in many countries and cites studies showing high rates of well casing failures and other infrastructure issues. The document advocates for transitioning to renewable energy and more sustainable practices to address energy needs and climate change challenges.
Marco Sully Perez said Oil and gas workers face unique health and safety challenges and are recognized by the National Institute for Occupational Safety and Health (NIOSH) as a priority industry sector under the National Workplace Research Initiative (NORA) to identify and develop intervention strategies in the labor sector Protect. health and safety issues. In 2011, the oil and gas and ancillary industries employed more than 450,000 people (Quarterly Census of Employment and Wages). Therefore, oil well drilling and field maintenance are two different types of business activities in the oil and gas industry.
The great shale-gas rush new product developementGaurav Singh
Horizontal drilling and hydraulic fracturing techniques allow natural gas to be extracted from shale rock formations deeper within the Earth's surface. This drilling process involves pumping highly pressurized fracking fluids into shale areas to create new channels for gas extraction. The well is then cased with cement and fractured to release the gas into the well for production. While shale gas extraction has occurred since the 1800s, modern horizontal drilling and multi-stage hydraulic fracturing have significantly increased production rates and made shale gas a major energy source.
This document discusses shale gas as a resource and its development from the Marcellus Shale formation. It notes the environmental and community concerns around extracting shale gas via hydraulic fracturing, as well as the economic benefits it provides through jobs and income. Both supporters and critics of shale gas development are mentioned. The document also provides background on the geology of shale gas formations and the technical process of extracting the natural gas resource.
Tight oil, also called light tight oil, refers to oil trapped in low-porosity shale or siltstone formations located deep underground. Horizontal drilling and hydraulic fracturing are used to extract the tightly locked oil. These formations have very low permeability and porosity and require advanced drilling techniques. North American tight oil production has grown significantly since 2005 using these methods, contributing to reduced oil imports. Future global production from shale is estimated to remain high through 2050 as more regions develop their shale resources.
Petroleum, or oil, is a nonrenewable energy source that is used to create many products beyond just fuel. One barrel of oil produces 20 gallons of gasoline and other byproducts that are used to make everyday items like plastic, paint, and medical supplies. Petroleum engineering involves exploring and producing oil and gas resources, with responsibilities including evaluating hydrocarbon potential, maximizing recovery, and transportation. As the world's demand for oil and gas increases, petroleum engineers will play a key role in meeting demand through new technologies while protecting the environment.
Hydraulic fracturing, also known as fracking, involves injecting fluid into shale rock formations at high pressure to extract oil and natural gas. While fracking has increased US energy production and economic benefits, there are also environmental concerns about potential groundwater contamination from the chemicals used in fracking fluids and increased air pollution near extraction sites. The document discusses the history, process, benefits and concerns of hydraulic fracturing for natural gas and oil extraction in the United States.
This document discusses meeting future energy needs in the UK through various sources such as shale gas fracturing, wind power, and natural gas. It notes that oil and gas currently make up 85% of UK energy supply and may still fill over 70% of demand through the 2040s. Shale gas is highlighted as a potential new source that could be extracted through hydraulic fracturing, though this process is variable and requires gas-fired plants as backup. Overall the document provides an overview of current and potential future energy sources and infrastructure in the UK.
The document discusses U.S. shale gas resources and the challenges of developing them. It notes that shale gas reserves are conservatively estimated at 500-1000 trillion cubic feet and that hydraulic fracturing and horizontal drilling first made shale gas production economically viable. However, each shale play has unique characteristics that require tailored solutions. The document summarizes characteristics of major shale plays like the Barnett, Woodford, Haynesville, Bakken and Fayetteville and notes that best practices must evolve locally to address specific challenges in each play. Unconventional resources like shale gas require unconventional solutions to optimize production and costs.
There are 3 main ways to categorize fossil fuel quantities: resources, probable reserves, and proved reserves. Estimates of coal reserves are more accurate than oil and gas reserves, which have uncertainties from over and underreporting. Conventional fossil fuels amount to around 4000 TW while unconventional sources could provide an additional 2000-25,000 TW. Unconventional sources like oil sands and shale require new extraction methods. Fossil fuels provide the majority of current energy but also have significant environmental and health impacts from pollution and greenhouse gas emissions.
Dismukes global brgs_presentation_08-16-10Jordan Lane
This document discusses the economic importance and trends of offshore oil and gas activity in the Gulf of Mexico. It notes that in 2008 the GOM produced over 420 million barrels of oil and 2.4 trillion cubic feet of natural gas. Deepwater areas accounted for 76% of oil production in 2007. The document summarizes trends showing the water depth barrier moving from 5,300 feet to over 9,500 feet in the past 20 years. It also discusses the large economic impact of the industry on Gulf Coast states and potential effects of the Deepwater Horizon oil spill such as reduced drilling activity and regulatory changes.
This document discusses the economic importance and trends of offshore oil and gas activity in the Gulf of Mexico. It notes that in 2008 the GOM produced over 420 million barrels of oil and 2.4 trillion cubic feet of natural gas. Deepwater areas accounted for 76% of oil production in 2007. The document summarizes trends showing the water depth barrier moving from 5,300 feet to over 9,500 feet in the past 20 years. It also discusses potential impacts of the Deepwater Horizon oil spill, including reduced drilling rig activity and job losses in the Gulf Coast region.
This document discusses frac sand mining in western Wisconsin. It begins by defining frac sand as highly rounded quartz sand that is strong and pure, making it suitable for use in hydraulic fracturing. It then outlines the geology of western Wisconsin, describing the regional sandstone formations that are the source of frac sand, including the Jordan and Wonewoc Formations in La Crosse County. The document discusses the markets and uses for frac sand, the process of hydraulic fracturing, and some of the economic and regulatory issues surrounding the frac sand mining industry in Wisconsin. In conclusion, it states that while frac sand mining presents new challenges, many issues can be addressed through existing regulations and practices, and the demand for sand should slow the pace
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3. OUTLINE OF DISCUSSION
• What Are the Economic Opportunities in Lending
and Investing in Shale Plays?
• What Actually Occurs During Shale Drilling and
Hydraulic Fracturing?
• What Environmental Risks Must Be Managed
During This Process?
• What State and Federal Statutes and Regulations
Apply?
• What Litigation Has Been Filed Alleging
Environmental Damages?
• How Can Lenders and Investors Evaluate and
Manage Environmental Risks in Investing in US
Shale Plays?
3
4. WHAT ARE THE ECONOMIC OPPORTUNITIES IN
LENDING AND INVESTING IN SHALE PLAYS?
4
7. DEFINITIONS
• Fracking is a process of pumping water, chemicals
and sand into a well to unlock the hydrocarbons
trapped in shale formations. Opening cracks
(fractures) in rock allows natural gas or oil to flow
from the shale into the well.
• Shales are fine-grained sedimentary rocks that can
be rich sources of petroleum and natural gas.
• Shale gas is found in shale “plays" -- shale
formations containing significant accumulations of
natural gas that share similar geologic and
geographic properties.
7
8. SHALE UNITS CAPABLE OF PRODUCING
NATURAL GAS IN LARGE QUANTITIES
• Shale plays and percent of US resources:
• Northeast: primarily the Marcellus (63%)
• Gulf Coast: Haynesville, Eagle Ford (13%)
• Southwest: Barnett & Barnett-Woodford (10%)
• Mid-Continent: Fayetteville, Woodford (8%)
• Rocky Mountain: primarily Mancos and Lewis (6%).
8
9. EMERGING NATIONAL ENERGY PROSPECTS IN
SHALE GAS
• The Energy Information Administration (“EIA”) projects in
its 2012 Annual Energy Outlook (“AEO”) pertaining to
the period 2010-2035:
• Natural gas production will increase throughout period.
• Growth in natural gas production will mostly be driven by
technological advances that continue throughout the period.
• Drilling in shale plays with high concentrations of natural gas
liquids and crude oil will have a higher value in energy
equivalent terms than dry natural gas.
• Shale gas resource base is lower than in 2011 AEO, but shale gas
production estimates increased between the 2011 and 2012
AEO.
9
10. TRENDS THAT MAY ULTIMATELY LEAD
TO HIGHER GAS PRICES
• "The U.S. could become the next Qatar, i.e. the
largest LNG producer in the world," said Thierry
Bros, a senior analyst at Société Générale. "The
U.S. is at a turning point.”
• “There are 8½ million 18-wheelers in the United
States. That’s 2½ million barrels of oil a day. So
that cuts OPEC in half if you had all the 18-
wheelers,” T. Boone Pickens said. “Is there any
obstacle from that happening? Not that I know of
because the fuel is so cheap.”
10
11. MOTIVATION TO INVEST IN SHALE
• U.S. is huge energy consumer, and natural gas usage expected to
increase every year.
• Shale gas production expected to increase from 5.0 trillion cubic
feet in 2010 (23 percent of total U.S. dry gas production) to 13.6
trillion cubic feet in 2035 (49 percent of total U.S. dry gas
production). Slide 6 depicts this increase.
• Increased production is driven by lower drilling costs and
continued drilling in shale plays with high concentrations of natural
gas liquids and crude oil.
• Investment returns in large part is a function of price of gas at sale
and fully-loaded costs of production, including lease payments
and regulatory compliance.
• Investors and lenders will finance shale plays to capture a return
stemming in part from dry gas displacement of other energy
resources, and more profitable extraction of oil and wet gas.
11
12. POTENTIAL PROFIT
FROM SHALE INVESTMENTS
• Even at current gas pricing, operators can strategically site
operations that can still make a profit or at least cover costs, but
search is mostly for oil and wet gas.
• Operators and partners can invest in shale for long-term in
anticipation expansion of types of usage of natural gas (i.e., fuel
fleets of cars, buses and trucks (e.g., 18-wheelers)).
• Shale gas trading, buying and hedging opportunities exist on
assumption that gas prices will rise in long-term.
• Larger operators have chance to acquire smaller shale interest
holders (i.e., industry consolidation) to achieve well-priced
acquisitions of shale assets for future gains.
• Technology is rapidly enhancing recoveries, increasing efficiency
and reducing operating costs that together can widen profit margins.
• Gas can be converted to LNG and other products for export, but the
market has not sorted out the complex issues associated with LNG,
including demand, production, infrastructure, pricing and shipping.
12
14. HISTORY OF HYDRAULIC FRACTURING
• Use of hydraulic fracturing to increase production
from conventional oil and gas wells grew rapidly
starting in late 1940s and continues to be used
routinely for reservoir stimulation.
• Hydraulic fracturing has been used to stimulate
approximately a million oil and gas wells.
• Improvements in horizontal drilling technologies led
to its increased application in conventional drilling
starting in the early 1980s.
14
18. STATEMENT BY AN ENVIRONMENTAL
GROUP REGARDING FRACKING
• "Liquefied natural gas is not only the dirtiest and
most polluting form of gas, but it also requires an
increase in fracking; a process we know to be
unsafe and dangerous," Deb Nardone, Sierra Club's
director of natural gas reform, said in a statement.
"The industry is pushing forward with these export
facilities with their profits in mind, not the families
who will bear the burden of increased fracking.“
(Emphasis added).
18
19. IDENTIFYING ENVIRONMENTAL RISKS
THAT MUST BE MANAGED
• Drilling in shale can be and has been conducted
in a safe manner.
• Thousands of wells drilled and fracked without
environmental impact.
• Hydraulic fracturing itself is not necessarily the
source of environmental risk.
• Key issue is whether and where pollutants can
be released from drilling or fracking and related
operations.
19
20. STUDY BY THE ENERGY INSTITUTE,
UNIVERSITY OF TEXAS
• Fact-Based Regulation for Environmental Protection in
Shale Gas Development (Feb. 2012)
• “Although claims have been made that ‘out-of-zone’ fracture
propagation or intersection with natural fractures, could occur,
this study found no instances where either of these has actually
taken place.” Id. at 18.
• “Particularly in areas underlain by gas-producing shales,
methane migrates out of the shales under natural conditions
and moves upward through overlying formations, including
water-bearing strata (aquifers).” Id. at 19.
• “The greatest potential for impacts from a shale gas well
appears to be from failure of the well integrity, with leakage
into an aquifer of fluids that flow upward in the annulus
between the casing and the borehole.” Id.
20
21. ENVIRONMENTAL MANAGEMENT
Flowback Water: Recycling and/or Proper
Disposal Protects Surface Water
Casing Installation
Protects Groundwater
1.5 miles below surface
Over 1 Mile of Rock
between Fracking and Groundwater: Serves
8,000 ft to Isolate Groundwater from Fracking
Average
3,500 feet average vertical
lateral length depth
2121
22. WELLBORE INTEGRITY
7 layers of protection isolate well bore
from its surroundings, preventing any
exposure of chemicals, gas, or
produced water with the environment:
1. Conductor casing
2. Cement, sealing conductor casing in
place
3. Surface casing
4. Cement, sealing surface casing in
place
5. Production casing
6. Cement, sealing production casing in
place
7. Tubing: In the Barnett Shale, for example,
the surface casing is drilled to a minimum
depth of between 50 to 100 feet below the
Trinity aquifer
2222
23. ISSUES IDENTIFIED IN UNIVERSITY OF
TEXAS STUDY
• Drill Pad Construction and Operation
• Hydraulic Fracturing
• Flowback Water Management
• Groundwater Impact
• Blowouts and House Explosions
• Water Consumption and Supply
• Spill Management and Surface Water Protection
• Atmospheric Emissions
• Health Effects
23
24. EARTHQUAKES
• Concern over small earthquakes from injection of
wastewater into disposal wells
• Approximately 144,000 wastewater injection wells in
the US
• Question of whether injection causing anything but
small tremors, not resulting in damage
24
25. WHAT STATE AND FEDERAL
STATUTES AND REGULATIONS
APPLY?
25
26. SHALE DRILLING AND FRACTURING HAS
MULTIPLE LEVELS OF CURRENT AND FUTURE
POTENTIAL REGULATION
• State Oil and Gas Regulation Applied to Shale Drilling
and Hydraulic Fracturing
• State Activity and Potential Future Regulation
• Federal Regulatory System as Applied to Shale
• Federal Activity and Potential Future Regulation
• Hydraulic Fracturing Fluid Disclosure
• Local Regulation
26
27. STATE REGULATION
• The laws and regulations related to hydraulic
fracturing are evolving, but states are regulating
environmental issues related to oil and gas drilling,
which includes drilling that utilizes hydraulic
fracturing.
• The federal approach has been to leave regulation
of hydraulic fracturing to the states, but some in
Congress have sought to impose federal regulation
of disclosure of fracturing chemicals and federal
permitting of hydraulic fracturing.
27
28. STATE REGULATION
• In most states, the drilling of shale gas wells using
hydraulic fracturing falls under the statutes and
regulations regulating oil and gas drilling.
• Texas
• Texas Natural Resources Code
• The Railroad Commission of Texas regulates oil and gas
drilling (“RRC”).
• Pennsylvania
• Oil and Gas Act
• Pennsylvania Department of Environmental Protection
(“DEP”) regulates oil and gas drilling through a division
called the Bureau of Oil and Gas Management.
28
29. GROUNDWATER PROTECTION:
WELL CASING AND CEMENTING
• The critical issue of properly casing and cementing
of wells is designed to protect potable groundwater
zones. See:
• 16 Tex. Admin. Code § 3.8 (Water Protection) (Drilling and
Completion Requirements)
• 25 PA. Code §§ 78.81-78.86; 58 P.S. Code § 601.207(b)
• Proper casing will prevent fracking water and
wastewater and any chemicals or contaminants
from being released from the well into the
groundwater.
• These requirements apply regardless of whether
hydraulic fracturing is used to stimulate the well.
29
30. SPILLS AND RELEASES
• Any spill or release of waste or wastewater would
be regulated by the RRC or DEP.
• 16 Tex. Admin. Code § 8
• 25 PA Code § 78.66 (reporting releases), § 91.33
(incidents causing or threatening pollution)
30
31. PITS
• A permit is required to maintain or use a pit for
storage of oil field fluids or oil and gas wastes.
• Only issued if regulatory agency determines
maintenance or use of such pit will not result in
pollution of surface or subsurface waters.
• See: 16 Tex. Admin. Code § 3.8(d)(6)
31
32. WASTE MANAGEMENT
• Permits are required for those transporting or
disposing of oil field wastes.
• Tex. Admin. Code § 3.8(d)(5)(A).
• 58 P.S. Code § 601.207(b)
• Waste disposal on-site without a permit that avoid
pollution of surface or groundwater is not permitted.
• Such disposal, whether intentional or not, would
generally result in an order to remediate and
potentially fines.
32
33. SURFACE WATER
• Discharges to surface water are governed by
state “Clean Water Acts”
• The Texas Commission on Environmental Quality
(“TCEQ”) regulates discharges to surface water
• The Texas Water Code prohibits discharges without a
permit.
• Federal Clean Water Act delegates to states National
Pollutant Discharge Elimination System program
responsibilities.
33
34. SURFACE WATER
• Discharge permits are required for discharges to
surface waters.
• Operators had been sending waste frack water to
municipal and private treatment works, who would
treat the wastewater and discharge with other treated
wastewater to surface waters.
• April 19, 2011, DEP announced that companies cease
sending waste fracking water (flow back water) to
these treatment works after detecting increased
bromide levels in surface waters.
34
35. AIR EMISSIONS
• Air emissions from oil and gas operations are
regulated by the relevant agencies under state
“Clean Air Acts.”
• Example: Texas Clean Air Act and regulations
promulgated under the Act prohibits air emissions
that would result in a nuisance or otherwise exceed
certain levels.
35
36. AIR MONITORING
• Over last few years, the TCEQ has conducted monitoring of
emissions from natural gas wells, compressors, etc. in Barnett
Shale based on complaints and testing by local governments.
• Spring 2009, the TCEQ installed automated gas
chromatograph monitors in two locations that are surrounded
by natural gas operations—the town of Dish, in Denton County,
and near Eagle Mountain Lake, in Tarrant County.
• Monitors operate around the clock, measuring levels of more than
45 Volatile Organic Compounds (“VOCs”), including benzene.
• Results: After months of continuous operation, there have been no
chemicals measured above levels of concern. The results from the
monitors are posted hourly on the TCEQ website.
36
37. PREPAREDNESS, PREVENTION, AND
CONTINGENCY PLAN
• In Pennsylvania, an operator must submit a
Preparedness, Prevention and Contingency Plan.
• Must be submitted and improved to obtain permit
• Must comply with during drilling and completion process
37
38. PRESUMPTION OF CAUSATION OF
CONTAMINATION AND DEFENSE
• The Pennsylvania Oil and Gas Act provides that an
oil and gas well operator is presumed responsible
for pollution of a water supply if it occurs within six
months of drilling and is within 1,000 feet of the well.
• One defense against presumption is pre-drilling
groundwater testing that shows contamination
previously existed.
• Statute and Regulations require operator to provide
DEP and landowner or water purveyor with results of
testing within 10 business days of receiving results,
and if not, may not be used to preserve operator's
defenses under the Act.
• 25 PA Code § 78.52(d); 58 P.S. § 601.208(d)(1).
38
39. PRE-DRILLING TESTING IN TEXAS
• Many operators drilling in Pennsylvania have been
testing water wells prior to drilling.
• Based on that experience, many operators are
conducting pre-drilling testing of water wells in
Texas and other states.
39
40. WATER SUPPLY FOR HYDRAULIC
FRACTURING
• Hydraulic fracturing requires a substantial amount of water.
• The average quantity of water used for a shale gas well varies
somewhat by the shale gas area:
• Barnett (4.0 million gallons (MG)), Fayetteville (4.9 MG), Marcellus and
Haynesville (5.6 MG), and Eagle Ford (6.1 MG).
• Water supply is thus a critical issue for shale development.
• In arid areas, such as Texas suffering a severe drought, water
supply becomes even more important.
• State law and agencies have so far insured water rights available for
oil and gas drilling
• State by state issue as water rights generally determined by state
law.
40
41. FEDERAL REGULATION
• Hydraulic fracturing is exempt from federal regulation
under the Safe Water Drinking Act (“SWDA”).
• SWDA is the regulatory program under which hydraulic
fracturing would be regulated.
• History of regulation stretches back more than a
decade.
• First issue in hydraulic fracturing was drilling wells to
extract natural gas from deep coal seems.
• Environmental group challenged EPA’s decision not to
regulate under the federal Safe Drinking Water Act
Underground Injection Control program (“UIC”).
41
42. ELEVENTH CIRCUIT OPINION FROM 1997
• “Nothing in the statutory definition [of “underground
injection”] suggests that EPA has the authority to
exclude from the reach of the regulations an
activity (i.e., hydraulic fracturing) which
unquestionably falls within the plain meaning of the
definition, on the basis that the well that is used to
achieve that activity is also used--even primarily
used--for another activity (i.e., methane gas
production) that does not constitute underground
injection.”
• Legal Environmental Assistance Foundation v. EPA, 118 F.3d
1467 (11th Cir. 1997)
42
43. EPA STUDY ON ENVIRONMENTAL IMPACT OF
HYDRAULIC FRACTURING
• EPA study resulted in report in 2004
• “Based on the information collected and reviewed,
EPA has concluded that the injection of hydraulic
fracturing fluids into [coalbed methane] wells poses
little or no threat to [underground sources of
drinking water] and does not justify additional study
at this time.”
• U.S. EPA, Evaluation of Impacts to Underground Sources of
Drinking Water by Hydraulic Fracturing of Coalbed Methane
Reservoirs, National Study Final Report
43
44. FEDERAL REGULATION
• Congress acted to exempt hydraulic fracturing.
• Section 322 of the Energy Policy Act of 2005
specifically excluded hydraulic fracturing
operations from regulation under the SWDA and the
Underground Injection Control (“UIC”) program.
• Exemption for: “The underground injection of fluids
or propping agents (other than diesel fuels)
pursuant to hydraulic fracturing operations related
to oil, gas, or geothermal production activities.”
• 42 U.S.C. § 300h(d)(1)(B)(ii).
44
45. REGULATION OF SALT WATER
INJECTION WELLS
• Salt water disposal wells, used in the oil industry to
dispose of water produced from drilling and
production, are currently regulated under the UIC.
• In Texas, this program is delegated to the RRC.
• In Pennsylvania, program is not delegated.
45
46. EPA STUDY OF HYDRAULIC FRACTURING
FOR SHALE GAS
• Congress provided funding for EPA study on
hydraulic fracturing.
• Feb. 2011, EPA submitted hydraulic fracturing study
plan to the EPA Science Advisory Board (“SAB”) for
review and comment and made it available to the
public.
• EPA stated that the scope of the study will include
full lifespan of water in hydraulic fracturing, from
acquisition of water, mixing of chemicals, actual
fracturing, management of flowback and produced
water, and ultimate treatment and disposal.
• April 21, 2011 and May 19, 25, 2011, SAB held
conference call to discuss EPA plan.
46
47. EPA STUDY OF HYDRAULIC FRACTURING
FOR SHALE GAS
• On April 28, 2011, SAB released draft comments on
plan, generally thought appropriate, concerns as
to:
• ability to meet study design by time frame set; and
• specificity in study as to actual research that will be
conducted
• 2012: EPA proposed year to release interim results
• 2012 to 2014: Additional results to be released as
particular investigations completed
• 2014: EPA proposed year to release another report
47
48. HYDRAULIC FRACTURING
FLUID DISCLOSURE
• Congress
• Bills have been filed to require disclosure of chemicals
added to water used for hydraulic fracturing.
• Attempts to end exemption under the SDWA and require
EPA permitting of hydraulic fracturing.
48
49. HYDRAULIC FRACTURING
FLUID DISCLOSURE
• Several states have passed laws requiring
disclosure
• Texas disclosure law has gone into effect
49
50. DIESEL USE
• Congressional investigation alleged that companies
were using diesel fuel in hydraulic fracturing.
• EPA has taken position that such use subjects
process to UIC regulation under the SDWA.
• EPA plans to issue guidance on diesel use in
fracking fluid.
• Question has been raised whether EPA must
promulgate regulations to impose a permitting
requirement.
50
51. EXAMPLE OF LOCAL ATTEMPTS AT
REGULATION
• Texas, Barnett Shale
• City of Fort Worth rules on drilling
• City of Dish attempted to block drilling
• City of Dallas to consider drilling requirements
51
52. LOCAL ATTEMPTS AT REGULATION
• Pennsylvania, Marcellus Shale
• In 2005, Salem Township sought to regulate hydraulic
fracturing through zoning ordinances.
• State Supreme Court ruled that local regulation was prohibited by
the Oil and Gas Act
• Independent Oil and Gas Association of Pennsylvania, et al v Salem
Township, Commonwealth of Pennsylvania, 931 A.2d 101 (PA.
Commonwealth Court 2007).
• Borough of Oakmont designated well locations using zoning
districts.
• State Supreme Court ruled that zoning is not covered in the Oil
and Gas Act, and, therefore, as has traditionally occurred, the
local government retained the ability to designate which areas
drilling may occur; but local regulations to provide drilling permits
is preempted by the Oil and Gas Act
• Huntley & Huntley, Inc. v Borough Council of the Borough of Oakmont,
929 A.2d 1252 (PA Commonwealth Court 2007).
52
53. A LOOK AHEAD
• States have promulgated regulations governing
the environmental issues related to hydraulic
fracturing and shale gas drilling in the form of
general oil and gas regulations.
• Additional regulation at the federal level may
not provide any additional environmental
protection not already occurring.
53
55. TYPES OF ENVIRONMENTAL
LITIGATION ARISING OUT OF SHALE
DEVELOPMENT
• Groundwater contamination
• Gas migration
• Fracturing fluids
• Water storage and disposal
• Air emissions/noise
• Earthquakes
55
56. GROUNDWATER CONTAMINATION:
GAS MIGRATION
• Fiorentino v. Cabot Oil & Gas Corp., No. 3:09-CV-
02284-JEJ (M.D. Pa. filed 2010).
• gas in water wells
• contamination and pressure
• property damage and personal injury
• U.S. v. Range Production Co., No. 3:11-CV-00116-F
(N.D. TX Filed 2011)
• gas in water wells
• injunction
• civil penalties of $16,500 per day per violation
• shallow gas/deep gas
56
57. GROUNDWATER CONTAMINATION:
FRACTURING FLUIDS
• Hagy v. Equitable Production Co., No. 2:10-CV-
01372 (S.D. W.Va. filed 2010).
• fracturing fluids allegedly contaminated water supply
• inadequate or improper casing
• injunction
• remediation
• property damage and personal injury
57
58. GROUNDWATER CONTAMINATION:
WATER STORAGE AND DISPOSAL
• Scoma v. Chesapeake Energy Corp., No. 3:10-CV-
01385-N (N.D. TX filed 2010).
• storage and injection of produced water
• allegedly contaminated water wells
• heavy metals and other chemicals
• color, odor, taste
58
60. EARTHQUAKES
• Hearn v. BHP Billiton Petroleum, No. 4:11-CV-00474-
JLH (W.D. Ark. filed 2011).
• class action
• theories that fracturing “excites” faults
• theories that disposal through injection wells triggers
earthquakes
60
61. HOW CAN LENDERS AND INVESTORS
EVALUATE AND MANAGE ENVIRONMENTAL
RISKS??
61
62. ENVIRONMENTAL DUE DILIGENCE
• Engage experienced environmental attorneys and
consultants in oil and gas matters
• Develop due diligence plan appropriate to size of
play, which can be as large as 600,000 acres
• Have environmental attorney explain how data and
information collected may affect potential liability,
and value of investment or collateral
62
63. EXAMPLES OF QUESTIONS THAT
SHOULD BE EVALUATED
• How is the operator casing its wells?
• How are fracking chemicals being managed?
• How is wastewater being managed?
• Have there been notices of violations or
enforcement actions brought against the company
in the relevant field or other areas of current or
historical operation?
• Have groundwater wells been tested to establish an
environmental baseline?
• Have any lawsuits been filed against the operator in
the current or other fields?
63
64. NO “INNOCENT PURCHASER” DEFENSE
• Relevant federal laws may not provide such as
defense as is found under the Comprehensive
Environmental Response, Compensation and
Liability Act (CERCLA).
• State statutes governing oil and gas
environmental liability generally do not include
such a defense.
• Joint Operating Agreement may contractually
bind non-operating interest owner (discussed
more later).
64
65. ENVIRONMENTAL LITIGATION RISK
MANAGEMENT
• Litigation due diligence
• business partners (track record, stability of
management)
• contractors
• neighbors
• Politics and education
• Baseline testing
• Monitoring and reports
• Best practices
• Insurance
• Agreements (allocation of risk)
65
66. CONTRACTUAL PROVISIONS
• Indemnities
• Care to ensure environmental claims are covered—
beware of drafting issues
• Representations and warranties
• Appropriate environmental definitions
• Covenants
• Insurance requirements
• Provision of environmental reports and due
diligence opportunities—access and adequate
time for review
66
67. IMPACT OF JOINT OPERATING
AGREEMENT ON NEW INVESTORS
• Once an investor buys into a non-operating working
interest, liability may attach to that party.
• The Joint Operating Agreement usually assigns
liability equal to the ownership interest, unless the
operating working interest owner is grossly
negligent or engages in willful misconduct.
67
68. ENVIRONMENTAL INSURANCE
• Larger companies have substantial self-
insurance retention.
• Smaller companies may rely more on
environmental insurance.
• Evaluate the insurance coverage that may be
available to cover environmental claims.
• Understand what claims are covered.
• Understand pollution and other exclusions.
• As an investor, lender or non-operating interest
owner, consider whether to purchase own
insurance.
68
69. CONCLUSION
• Hydraulic fracturing is not the area of focus for
investors and lenders; rather, they should
examine other environmental risks.
• These risks must be managed by operators.
• State, federal and local regulations may apply to
these risks.
• Future legislation not likely to stop shale drilling
or hydraulic fracturing—but may increase costs
and delay drilling permits.
• Appropriate due diligence and contracting
allow lenders and investors to evaluate and
manage environmental issues in shale plays.
69