1

From Reid and Milici. 2008. “Hydrocarbon Source Rocks in the Deep River and Dan River Triassic Basins, North Carolina”
2

Undiscovered Unconventional
Resources
Assessment Unit
Natural Gas
(mean, BCFG)
Natural Gas Liquids
(mean, MMBNGL)
1,709 83 NC Triassic Basins 1
Marcellus Shale
(PA, NY, WVa, OH) 2
84,198 3,379
Barnett Shale (TX) 3 26,228 1,049
Sources:
(1) USGS Fact Sheet 2012-3075
(2) USGS Fact Sheet 2011-3092
(3) USGS Fact Sheet 2004-3022
BCFG: billion cubic feet of gas
MMBNGL: million barrels of natural gas liquids
3

Major Provisions of S.L. 2012-143
Creates Mining & Energy Commission
Authorizes hydraulic fracturing and horizontal drilling
Prohibits issuance of drilling permits until legislature acts
Updates statutory regulations of oil & gas activities
Directs EMC, Commission for Public Health, and Mining &
Energy Commission to adopt necessary rules by October 1,
2014
4

Mining & Energy Commission
Rulemaking Responsibilities
Drilling permit application requirements
Baseline sampling rules
Oil and gas well construction standards
Siting standards for oil & gas wells and other production infrastructure
Limits on water use and establishment of water management plans
Management of wastes
5

Mining & Energy Commission
Rulemaking Responsibilities (cont’d)
Prohibitions on use of certain chemicals
Disclosure of chemicals used
Blowout and spill prevention and response
Well closure and site reclamation
6

EMC Rulemaking Responsibilities
Stormwater control for oil & gas exploration and development sites;
Regulation of toxic air emissions from drilling operations;
“…matters within its jurisdiction that allow for and regulate horizontal drilling and hydraulic fracturing for the purpose of oil and gas exploration and development.”
7

Water Quality Rule Development
Process for SL 2012-143
May 2012 DENR Study Report
Staff review of all EMC water quality rules
Staff level coordination with DEMLR Energy Program
DWR staff coordination with MEC & MEC members
Rules presented to MEC Oil & Gas Stakeholder Group
DWR & Stormwater participation in the MEC’s Coordinated
Permitting Study Group
Rule overview presented to MEC’s November 2013 meeting
8

Recommended EMC Water Quality
Rule Revisions
Adopt:
15A NCAC 2H .1030 – New Stormwater rule
Amend:
15A NCAC 2T – Wastes not discharged to surface waters
◦ 2T .0113 – Permitting by Regulation
◦ 2T .1001 – Closed-loop recycle
◦ 2T .1501 – Soil Remediation
15A NCAC 2U – Reclaimed Water
◦ 2U .0113 - Permitting by Regulation
9

Stormwater
Oil & Gas operations exempt from federal NPDES stormwater requirements until after a release or water quality standard violation
State stormwater regulations recommended by STRONGER and DENR study; required by SL 2012-143
10

Stormwater
Stormwater discharges and major pollutant concerns:
◦ Initial grading – sediment
◦ Initial drilling – sediment, trace hydrocarbons, brines
◦ Production, stimulation, and maintenance – sediment, peak flow, residuals
11

Stormwater

New Stormwater Rule
(15A NCAC 2H .1030)
Proposed stormwater rule requirements for O&G:
◦ Site stabilization similar to the current NPDES
Construction Stormwater permit elements
◦ Structural BMPs required: extend existing rules in 15A
NCAC 2H .1000
Full pad containment and around battery units: already provided for within the Energy Program rules, but not in
15A NCAC 2H .1030
15

New Stormwater Rule
(15A NCAC 2H .1030)
Design Rainfall criteria (2H .1030(c)(4)):
◦ Control and treat runoff from the 1” rainfall
OR
◦ Control and treat the difference in pre- and postdevelopment runoff for the 90 th percentile storm
16

Non-Discharge Rule Amendments
(15A NCAC 2T)
2T .0113 – Permitting by Regulation
◦ On-site disposal of drilling muds, cuttings and produced water should not be permitted by rule
17

Non-Discharge Rule Amendments
(15A NCAC 2T)
2T .1001 – Closed-loop recycle
◦ Clarify that reuse of flowback water or drilling fluids is not a “closed-loop recycle system”
2T .1501 – Soil Remediation
◦ Clarify that soil remediation permits are not appropriate for spreading of oil and gas drilling muds and cuttings
18

Reclaimed Water Rule Amendments
(15A NCAC 2U)
2U .0113 – Permitting by Regulation
◦ Reuse of flowback water in oil and gas operations should be permitted by rule under conditions approved by
DEMLR
19

EMC Action - send rules to public comment: May 8, 2014
NC Register filing deadline: May 9, 2014
Start of Comment period: June 2, 2014
Earliest Hearing: June 17, 2014
End Comment period: August 1, 2014
20

For More Information
Evan Kane, Groundwater Planning & Environmental Review
Branch Supervisor
Division of Water Resources
919-807-6461 evan.kane@ncdenr.gov
Jon Risgaard, Non-Discharge Unit Supervisor
Division of Water Resources
919-807-6458 jon.risgaard@ncdenr.gov
Ken Pickle, Stormwater Program Engineer
Division of Energy, Mineral, and Land Resources
919-807-6376 ken.pickle@ncdenr.gov
21