RFF’s Center for Energy Economics and Policy Managing the Risks of Shale Gas: Cross-cutting findings and future research Alan Krupnick, PhD Director, Center for Energy Economics and Policy June 27, 2013 Cross-cutting findings (A sampler) • Risks to rivers and streams • The expert survey (water withdrawal, spills, leaks, stormwater flows, treatment of flowback and produced water) • The public survey: Willing to pay to reduce such risks, more so where water is more scarce (TX>PA) • PNAS study: Don’t worry so much about spills and leaks • Chemical assay study: very important to treat or safely dispose of flowback and produced water (high concentrations of chlorides and other substances) 2 Cross-cuts (2) • Risks to wells and aquifers • The public survey: very concerned about groundwater risks and willing to pay to reduce them • The property value study: This concern translates into housing price discounts for residential properties on water wells vs. on piped water • The expert survey: Don’t worry so much about groundwater pollution from fracking per se; do be concerned about leaky casing and cementing • Chemical assay: Flowback and produced water are a concern • Chlorides from 16-192 gm/L, average 100 gm/L; seawater: 19 gm/L 3 Cross-cuts (3) • State regulations and public attitudes • Public survey: not much difference in concern and willingness to pay between PA and TX regulations should be similar; PA=TX for groundwater risks; PA<TX for surface water risks • Regulatory comparison Metric PA TX # regulatory elements (max 20) 19 17 Overall Stringency (Method 1) 58% 80% More stringent 6 2 Equally stringent 3 na Water regulation stringency (Method 1) 4 Funded Future Research • Deep dive and dialogue on the consensus pathways • New project funded by Alfred P. Sloan Foundation • Partnering with Environmental Defense Fund • Participation by industry, states, NGOs • Health and welfare effects of: • Truck traffic (partnering with Geisinger Health Care) • Pads, pipelines and roads on habitat fragmentation (advisory role to The Nature Conservancy) • Water use and re-use (Susquehanna River Basin Commission permits; modeling - RFF) 5 Other Proposed Future Research • Governance and federalism • Community impacts and industry interactions • Partnering with The Keystone Center • Enforcement; better explanations for heterogeneity • Air and water pollution on health (partnering with Geisinger Foundation) • Effects on agriculture through irrigation water quality/quantity; water rights leasing to mitigate 6 Thank You! www.rff.org/shalegasrisks 7