Environmental Protection
And Unconventional
Well Development
in Pennsylvania
September 12, 2012
Overview of Well Development
3
Black Shale Formations
• Marcellus
• Utica
• Rhinestreet
• Huron
• Upper Devonian
•
•
•
•
•
Dunkirk
Pipe Creek
Middlesex
Geneseo
Burket
Generalized Stratigraphic
Section for Oil and Gas Region
Marcellus Shale Production Data (Base Map Depicts Thickness
of Organic Rich Material in Target Formation)
Marcellus Shale Advisory Commission
Marcellus Shale Advisory Commission
8
▪
Executive Order 2011-01 Created the Marcellus Shale
Advisory Commission
▪
March 8 – July 22, 2011
▪
Goal: outline a comprehensive plan with recommendations
on the safe and responsible development of unconventional
natural gas resources within Pennsylvania
A Comprehensive, Strategic Plan
9
▪
96 Recommendations outlining a comprehensive,
strategic plan for the responsible development of
natural gas drilling in the Commonwealth.
▪
Every environmental protection recommendation
that needed to be accomplished through legislation
was included in the Act.
▪
Unanimously approved by the commission on
Friday, July 15, 2011.
▪
Outlined the first major update of Oil and Gas Act in
nearly three decades.
Statutory and Regulatory Changes
Laws and Regulations
11
▪
2012 Oil and Gas Act (Act 13)
▪
▪
▪
▪
25 Pa. Code Chapter 78 (Oil and Gas Wells)
Oil and Gas Conservation Law
Coal and Gas Resource Coordination Act
Clean Streams Law
▪
▪
▪
▪
25 Pa. Code Chapter 91 (General Provisions)
25 Pa. Code Chapter 93 (Water Quality Standards)
25 Pa. Code Chapter 95 (Wastewater Treatment
Requirements)
25 Pa. Code Chapter 102 (Erosion and Sediment Control)
Recent Regulatory Changes
12
▪
Well Permit Fee Increase
▪
Act 15 of 2010
▪
Chapter 78 Well Construction Standards
▪
Chapter 95 Regulation Revisions
▪
Act 13 of 2012
▪
Act 9 of 2012
Marcellus Well Permit Fees
13
▪
Increased from a $100 fixed amount to
an average of $3,220
▪
The length of the well increases the fee
▪
Allowed DEP to increase O & G staff
▪
From 90 people in 2008
▪
To 202 people in 2012
Act 15 of 2010
14
▪
Repealed:
▪
▪
The 5 year production report confidentiality
Requires:
▪
▪
Marcellus operators to report production
every 6 months (instead of annually)
DEP to post all production reports online
25 Pa Code, Chapter 78 regs
15

Took effect February 5, 2011
 prevent methane gas migration,
 require drillers to detail the chemicals found in
flowback water,
 Flowback water is the ~ 10–30% of frack water
that returns to the surface within 30 days of
fracking.
 require drillers to electronically report production
and waste volume data
Chapter 78 Well Construction Standards
15
▪
Goal – further prevent gas migration and protect
water supplies
▪
Comprehensive update to well construction, casing
and cementing standards
▪
Expanded well completion reporting requirements,
including disclosure of hydraulic fracturing chemicals
Act 13/2012 Oil and Gas Act
ACT 13 of 2012
18
▪
Consolidated the Oil and Gas Acts into 58 Pa.C.S. (Act 13)
▪
Created six chapters
▪ Ch. 23 – Unconventional Gas Well Fee
▪ Ch. 25 – Oil and Gas Lease Fund
▪ Ch. 27 – Natural Gas Energy Development Program
▪ Ch. 32 – Development
▪ Permitting & Notifications
▪ Environmental Protections & Enhancements
▪ Inspections & Enforcement
▪ Ch. 33 – Local Ordinances Relating to Oil and Gas Operation
▪ Ch. 35 – Responsibility for Fee
Permitting & Notifications
Drilling Permit – What’s New
20
Notice requirements
•
•
•
•
Host/adjacent municipalities,
surface landowner,
water purveyors with water supplies within 3,000 ft.
Storage operators within 3,000 ft.
Compliance requirements
• Permit denials for continual violations
• Parent and subsidiary compliance considered
• Permit denial for failure to pay Impact Fee
Drilling Permit – What’s New
21
Water Management Plan Approval
•
•
•
•
•
Required for water used in drilling and stimulation
No adverse impacts to water quality/quantity
Maintain designated and existing uses of water sources
Available to third parties in the Ohio basin
Compliance with WMP a condition of well permit
Water withdrawals in accordance with:
•
•
•
Susquehanna River Basin Commission
Delaware River Basin Commission
Great Lakes Commission
Drilling Permit – What’s New
22
▪
Comments on the Permit by
▪
▪
Municipality where proposed well will be located
Storage Operators within 3,000 ft. of well bore
▪ Transparency
▪
Well permit must be posted at well site prior to
o earth disturbance activities and
o well construction.
Drilling Permit – What’s New
23
Notification of surface land owners at the well site

All drinking water supply owners within 1,000 feet
Setback Distances - Gas wells must be at least



200 feet from any drinking water supplies.
100 feet from any stream, spring, or body of water.
100-feet from any wetland greater than one acre
Bonding Requirements
24
Old: $2,500/well or $25,000 blanket bond
New: two bond schedules:
< 6,000 feet
o > 6,000 feet
Based on number of operating wells
Maximum blanket bond increased to $850,000
o
▪
▪
Chapter 95 Regulation Revisions
16
▪
Limits the discharge of TDS from new or expanded
facilities that take oil and gas wastewater to drinking
water standards
▪
Does not allow for new discharges that exceed 250
mg/l for chlorides and also removes radium
▪
Increases the use of recycled water, promotes the
development of alternative forms of disposal
Notifications to DEP
25
▪
▪
Spud date (commencement of drilling)
Resumption of drilling
o
▪
▪
▪
▪
30-day (or longer) break in drilling
Cementing of all casing strings
Conducting pressure tests of the production
casing
Stimulation of a well
Abandoning or plugging of a well
Environmental Enhancements &
Protections
DEP District Oil & Gas Operations
45
Well Location Restrictions
27
Setbacks Increased for Unconventional Wells
▪ Buildings & water wells - from 200 ft. to 500 ft.
▪ A water supply
- 1,000 ft.
▪ Any water body (stream, spring, or wetland > 1 acre
-from 100 ft. to 300 ft.
Well pads - 100 ft.
• Any water body (stream, spring, or wetland > 1 acre
Variance/waiver possible
Well Location Restrictions
28
A well site or well bore is prohibited in a Floodplain if site
will have a pit or impoundment for:
▪ drill cuttings,
▪ flowback water,
▪ produced water or
▪ hazardous materials,
▪ chemicals or wastes
A well site or well bore is prohibited in a Floodway if site
will have a tank for containing:
• hazardous materials,
• chemicals,
• condensate,
• wastes,
• flowback or produced water
Protection of Water Supplies
31
Operators are required to:


Protect drinking water supplies near gas wells,
Restore or replace any water supply determined by DEP
to be polluted by nearby gas well drilling.
Operators presumed to be responsible within
1,000 feet if it occurs within six months after
 completion of drilling
 alteration of the gas well.
Protection of Water Supplies
30
Rebuttable Presumption Increase
▪
▪
From 1,000 ft. to 2,500 ft. of the water supply
▪
From 6 months to 12 months after well completion,
drilling, stimulation or alteration, whichever is later.
Operator must notify landowner or water purveyor that
rebuttable presumption may be void if the landowner
or water purveyor refuses to allow operator to conduct
pre-drilling or pre-alteration survey (3218(e.1))
Oil & Gas Pre-Drill Testing
33
Analyte (Inorganic)
Analyte (Trace Metal)
Analyte (Organic)
Alkalinity
Barium
Ethane*
Chloride
Calcium
Methane*
Conductivity
Iron*
Hardness
Magnesium
Analyte (Microbiology)
Oil and Grease
Manganese*
Total Coliform/E. Coli
pH*
Potassium
Sulfate
Sodium*
Total Dissolved Solids*
Strontium
Residue - Filterable
Total Suspended Solids
Residue – Non Filterable
Protection of Water Supplies
32
Restoration/Replacement of Water Supplies
Temporary Water
Permanent Water
▪
▪
Replacement Water Quality
▪
Must meet Safe Drinking Water Standards or predrilling conditions
Transparency
▪
Any confirmed case of subterranean water supply
contamination will be reported on DEP’s website.
Who does the Testing?
35
The gas well company is required to hire an
independent state-certified water testing
laboratory to conduct the pre-drill testing.
Well Control Emergency Response
34
DEP may:
▪
Enter into contracts with well control specialists to
provide response services in the event of an
emergency
The Well Control Specialist:
▪
Shall be immune from civil liability for good faith
actions (except for breach of contract, intentional
tort or gross negligence)
Chemical Disclosure
37
Within 60 days of finishing hydraulic fracturing:
▪
▪
Operator must complete the chemical disclosure registry
form and
Post it using the chemical disclosure registry at
www.FracFocus.org
Air Contaminant Emissions
39
▪
Operators must submit a source report identifying and
quantifying actual air contaminant emissions to DEP
▪
Annually by March 1 for the preceding calendar year
▪
DEP submits the total air pollution emissions every three
years to EPA
Disposal of Drilling Fluids
39
2010 - new regs limit TDS discharges.
 2,000 mg/L TDS for new & expanding treatment
facilities.
 Tighter standards apply to wastewater from the
natural gas industry
 500
mg/L TDS,
 250 mg/L chlorides, and
 10 mg/L barium &strontium

These are based on monthly averages.
Act 9 0f 2012
40

Amended Title 35 (Health and Safety) to require
 Emergency regulations for well sites
 A a unique GPS coordinate address for
 the
access road entrance and
 The well site.
 Development
an emergency response plan
 Posting of a reflective sign at the entrance
Inspections & Enforcement
Types of Inspections
46
Well Pad Inspections (Surface)
▪
Water Quality Specialists
▪
▪
Erosion and Sedimentation Controls
Inspect waste containment
Well Drilling Inspections (Sub-surface)
▪
Oil and Gas Inspectors
▪
▪
▪
Perform inspections when well drilling commences and ongoing drilling activities
(setting casings, cementing jobs, etc.)
Inspect well fracturing operations
Other DEP Inspections
▪
▪
▪
Air Quality
Waste Management
Water Management (Water Quality)
(New) Inspection Requirements
47
Inspections of E&S Controls
▪
An operator may not commence drilling activities until after DEP has
conducted an inspection of the unconventional well site after the
installation of erosion and sedimentation (E&S) control measures.
Site Access
▪
The person in charge of a well site property, facility, operation or
activity subject to Chapter 32 of Act 13 must provide to DEP and its
agents access to the site and facilities for inspection purposes or to
remediate or respond to a well control emergency.
(New) Inspection Requirements
48
Availability of Inspection Reports
▪
▪
Inspection Reports are available for public review at each DEP District
office (ongoing practice)
DEP will post inspection reports on its website. The reports will
include:
▪
Nature and description of violations
▪
Operator’s written response to violation, if available
▪
Status of violation
▪
Remedial steps taken by operator or DEP to address a violation
Enforcement
45
Permit Denial (New)
•
DEP may deny a permit if:
•
Applicant, or any parent or subsidiary corporation, is in continuing violation
of:
•
•
•
Act 13
Any other statute administered by the Department
Any Plan Approval, permit or order of the Department
(3211(e.1)(5))
Enforcement
46
Permit Revocation (New)
•
DEP may suspend or revoke a well permit or registration for any well in
continuing violation of: (3251(b)(1))
•
•
•
•
•
•
Act 13
Clean Streams Law
Solid Waste Management Act
Any other statute administered by DEP
OR if the likely result of a violation is an unsafe operation or environmental
damage
Prior to suspension or revocation of the permit
•
DEP shall provide written notice to the operator or its agent
(32519(c))
South Newark Basin Field
47
Comments & Questions