Lower 48 Shale Experience –Will It
Translate to Alaska?
Speakers:
Craig P. Wilson – Partner & Practice Group Coordinator –
Environmental, Land and Natural Resources, K&L Gates,
Harrisburg
David Spigelmyer – Vice President, Government Relations,
Chesapeake Energy; Chair, Marcellus Shale Coalition
J. Daniel Arthur – Managing Partner, ALL Consulting
Audience Discussion Facilitators:
Ankur K. Tohan – Associate, K&L Gates, Seattle
Patrick S. Galvin – Vice President, External Affairs and Deputy
General Counsel, Great Bear Petroleum
July 31, 2012
Anchorage Marriott Downtown
Contents
“Lower 48 Shale Experience – Will It Translate to Alaska?”....................... A
Biographies ................................................................................................. B




Craig P. Wilson
David Spigelmyer
J. Daniel Arthur
Ankur K. Tohan
Supplemental Information ........................................................................... C
Diesel Fuel
 EPA: Call for Comment on Draft Permitting Guidelines for Oil and Gas
Hydraulic Fracturing Activities Using Diesel Fuels. 77. Fed. Reg. 27451 (May
10 2012).
Effluent Guidance
 EPA: Notice of Final Effluent Guidelines Program Plan. 76. Fed. Reg. 66286.
(Oct 26, 2011).
 Fact Sheet: EPA Initiates Rulemaking to Set Discharge Standards for
Wastewater from Shale Gas Extraction (Oct. 2011).
Memorandum of Understanding
 EPA – DOE – DOI Memorandum of Understanding (Apr. 13 2012).
Air Rules
 EPA Fact Sheet: Overview of Final Amendments to Air Regulations for the
Oil and Natural Gas Industry. (Apr. 17, 2012).
Federal Lands
 Bureau of Land Management: Proposed Rule to Regulate Hydraulic
Fracturing on Federal and Indian Lands. 77 Fed. Reg. 27691. (May 11,
2012).
Additional Supplemental Information.............. Available on Thumb Drive
Permitting - Army Corps of Engineers
 Reissuance of Nationwide Permits. 77 Fed. Reg. 10184 (Feb. 21 2012).
 Sierra Club Action for Declaratory and Injunctive Relief and Petition for
Review of Agency Action. (Jun. 29 2012).
Diesel Fuel
 EPA: Permitting Guidance for Oil and Gas Hydraulic Fracturing Activities
Using Diesel Fuels – Draft: Underground Injection Control Program Guidance
#84. EPA 816-R-12-004 (May 2012).
K&L Gates LLP
Effluent Guidance
 EPA: Notice of Final Effluent Guidelines Program Plan. 76. Fed. Reg. 66286.
(Oct 26, 2011).
 Fact Sheet: EPA Initiates Rulemaking to Set Discharge Standards for
Wastewater from Shale Gas Extraction (Oct. 2011).
 Fact Sheet: EPA Effluent Guidelines Program Plan (Oct. 2011).
Drinking Water
 EPA Progress Update: Study of the Potential Impacts of Hydraulic Fracturing
on Drinking Water Resources. (Feb. 2012).
 EPA Plan to Study to the Potential Impacts of Hydraulic Fracturing on
Drinking Water Resources. (Nov. 2011).
 EPA Memorandum: Guidance for Review and Approval of State UIC
Programs and Revisions to Approved State Programs. GWPB Guidance #34.
Memorandum of Understanding
 EPA News Release: Obama Administration Announces New Partnership on
Unconventional Natural Gas and Oil Research (Apr. 13 2012).
 EPA – DOE – DOI Memorandum of Understanding (Apr. 13 2012).
Greenhouse Gas Emissions
 EPA Final Rule - Mandatory Reporting of Greenhouse Gases: Petroleum and
Natural Gas Systems (Nov. 30, 2010).
 API/ANGA Fact Sheet: Methane Emissions From Hydraulic Fracturing of
Unconventional Natural Gas Wells Are Half What EPA Estimated (June
2012).
 API/ANGA Report: Characterizing Pivotal Sources of Methane Emissions
from Unconventional Natural Gas Production (June 2012).
Air Rules
 EPA Fact Sheet: Overview of Final Amendments to Air Regulations for the
Oil and Natural Gas Industry. (Apr. 17, 2012).
 EPA Final Rule: New Source Performance Standards and National Emission
Standards for Hazardous Air Pollutants Reviews. (Apr 17, 2012).
 EPA: Summary of Requirements for Equipment at Natural Gas Compressor
Stations.
 EPA: Summary of Requirements for Processes and Equipment at Natural
Gas Gathering and Boosting Stations.
 EPA: Summary of Requirements for Equipment Used in Oil Production.
 EPA: Summary of Requirements for Processes and Equipment at Natural
Gas Processing Plants.
 EPA: Summary of Requirements for Processes and Equipment at Natural
Gas Well Sites.
Toxic Substance Control Act
 Earth Justice: Petition Under TSCA Regarding Chemical Substances and
Mixtures Used in Oil and Gas Exploration or Production. (Aug. 4, 2011).
 EPA: Receipt of Earth Justice Petition. (Aug 15, 2011).
 EPA: Initial Response to Earth Justice Petition. (Nov. 2, 2011).
 EPA: Final Response to Earth Justice Petition; Partial Grant of TSCA
Request. (Nov. 23, 2011).
Marcellus Shale Environmental Impact Statement
 Citizen Petition Requesting the Completion of a Programmatic Environmental
Impact Statement and Regulations Addressing the Cumulative Impacts of
Drilling in the Marcellus Shale Formation in the Chesapeake Bay States.
(Apr. 4, 2011).
Resource Conservation and Recovery Act (RCRA)
 NRDC: Petition for Rulemaking Pursuant to Section 6974(a) of the RCRA
Concerning Regulation of Wastes Associated with Exploration, Development
or Production of Crude Oil or Natural Gas or Geothermal Energy. (Sep. 8,
2010).
Lower 48 Shale Experience –
Will It Translate to Alaska ?
Alaska Shale Oil and Gas
Conference
July 31, 2012
Agenda
•
•
•
•
•
•
•
Perspective: The Speakers’ Experiences
Overview of Lower 48 Plays
Development Context & Setting
Key Issues
State Reaction
Increasing Federal Involvement
NGO Engagement
• Open Discussion: How Does This Translate
to Alaska?
1
Perspective: The Speakers’
Experiences
• J. Daniel Arthur, P.E., S.P.E.C.
Managing Partner & Program/Project Manager, ALL
Consulting
• David Spigelmyer
Vice President, Government Relations, Chesapeake
Energy Corporation
Chair, Marcellus Shale Coalition
• Craig P. Wilson
Partner & Practice Group Coordinator – Environmental,
Land and Natural Resources, K&L Gates
2
Development Context & Setting
• Areas with no historic O&G drilling
– Some with prior conventional development
– Statutes /rules designed for conventional development
• Rural, suburban and urban areas
– Economic conditions
– Strength of local government
– Infrastructure
• Areas with historic mining & legacy impacts
• Areas with highly protected waters / resources
• Areas susceptible to drought
Key Issues
• Water Sources & Use
– Alternative sources
•
•
•
•
•
•
•
Water Disposal & Reuse
E&S Control – Wetlands – Water Quality
Roadway Maintenance
Groundwater Protection
Well Control – Spill Protection
Chemical Use & Storage
Noise, Lighting, Traffic
3
State Reaction
• Major recent legislative enactments
–
–
–
–
North Carolina
Ohio
Pennsylvania
West Virginia
• Enactments address severance taxes, uniformity-preemption, and
modernization of standards for unconventional development and
horizontal drilling, surface owner and groundwater protection,
chemical disclosure, waste handling, etc.
• Regulatory updates on wide ranges of topics – active
state agencies, particularly in eastern plays
• Ongoing studies by New York State and Delaware River
Basin Commission
– Development on hold pending regulatory action
Increasing Federal Involvement
• EPA National Enforcement Initiative 2011-2013
– focus on compliance by energy extraction sector
•
•
•
•
•
•
EPA hydraulic fracturing study
EPA draft guidance for use of diesel fuels in HF fluids
EPA shale gas effluent limitation guideline rulemaking
EPA NSPS/NESHAPs & GHG reporting rules
EPA TSCA disclosure rulemaking
BLM rule proposed for well stimulation on federal and
Indian lands
• Changes to Army Corps midstream permitting
• Other pending items
– NRDC 2010 petition to regulate produced water pursuant to
RCRA Subtitle C
– CBF 2011 Petition to CEQ for programmatic EIS
4
NGO Engagement
•
•
•
•
•
•
•
•
•
American Rivers
Clean Air Council
Earthjustice
Earthworks
Environmental Defense Fund
National Wildlife Federation
Natural Resources Defense Council
Sierra Club
WildEarth Guardians
• Many other national, regional & local organizations
Open Discussion: How Does
This Translate to Alaska
?
5
Craig P. Wilson
AREAS OF PRACTICE
HARRISBURG OFFICE
717.231.4509
TEL
717.231.4501
FAX
craig.wilson@klgates.com
Mr. Wilson is a partner and Practice Group Coordinator for K&L Gates’ global
Environment, Land and Natural Resources practice group. Mr. Wilson concentrates
his practice in the areas of energy, environment and natural resources, and has
counseled clients who are exploring for, producing and transporting natural gas,
clients who are developing and operating energy projects and other commercial and
industrial projects, clients who are seeking environmental permits and zoning and land
development approvals from government agencies, and clients who are parties to
business transactions or litigation involving potential environmental liabilities.
PROFESSIONAL BACKGROUND
Mr. Wilson has been associated with K&L Gates since 1992 and a partner with the
firm since 2001.
PRESENTATIONS













Hydraulic Fracturing, presented at Great Lakes Water Conference, November
2011.
New Permitting Challenges – Pennsylvania State Programmatic General Permit
(PASPGP-4), panel moderator, Shale Gas Insight, September 2011.
Water & Wetland Crossings – The Role of the State vs. U.S. Army Corps in
Permitting Linear Projects, presented at Fourth Annual Appalachian Basin Oil &
Gas Seminar, May 2011.
Environmental Impact of Marcellus Shale Drilling on Groundwater and Drinking
Water, presented at Pennsylvania Bar Institute’s Environmental Law Forum,
April 2011.
Water & Wastewater Issues in Shale Development, presented in connection with
Short Course on the Law of Shale Gas Plays, sponsored by The Institute for
Energy Law, The Center for American and International Law, June 2010.
Priorities for Permitting & Compliance in PA, WV and NY, panel moderator at
K&L Gates Third Annual Appalachian Basin Oil & Gas Seminar, April 2010.
Understanding Water Management Regulations, presented at Key Environmental
Issues Compliance Conference, Pennsylvania Chamber of Business and Industry,
October 2009.
Infrastructure Development – Navigating the Regulatory Maze, presented at K&L
Gates Second Annual Appalachian Basin Oil & Gas Seminar, April 2009.
Marcellus Shale – Water Resources Challenges, presented at Pennsylvania Oil &
Gas Association Annual Meeting, September 2008.
Legal/Regulatory Update of Matters Impacting Water Industry, presented at
Water Finance & Investment Summit, 2007.
Case Studies Involving Special Protection Waters, presented at Water Resources
Association of the Delaware River Basin Fall Conference, November 2007.
New Post-Rapanos Federal Wetlands Guidance, telebriefing by Law Seminars
International, June 2007.
Complying with New and Changing Water Regulations, presented at Key
Environmental Issues Compliance Conference, Pennsylvania Chamber of
Craig P. Wilson
Business and Industry, October 2006.
PUBLICATIONS












“What do a Mountain, a Keystone and a Buckeye Have in Common?”, Oil & Gas
Alert, by George A. Bibikos, David R. Overstreet, Bryan D. Rohm, and Craig P.
Wilson. June 2012.
“The Pennsylvania Environmental Hearing Board Clouds the Waters: Should
Well Operators Appeal PADEP Determinations that Oil and Gas Activities Have
Affected Water Supplies?”, Oil & Gas Alert, by Craig P. Wilson, Anthony R.
Holtzman, and Stephen J. Martzura. June, 2012.
“Municipal Mischief in the Marcellus: Challenging Restrictive Local
Ordinances,” Oil & Gas Alert, by Walter A. Bunt, Jr., Kenneth S. Komoroski,
Pierce Richardson, Craig P. Wilson, and Heather L. Lamparter. March 2010.
Entergy Corp. v. Riverkeeper: What Impact on the Future of Cost-Benefit in
Rulemaking?, Legal Backgrounder, by Craig P. Wilson, Robert A. Lawton. June
2009.
“U.S. Supreme Court Upholds Use of Cost-Benefit Analysis in Clean Water Act
Rulemaking,” Environmental Alert, by Craig P. Wilson and Robert A. Lawson.
April 2009.
“Water Resources,” Chapter 7 in Pennsylvania Environmental Law and Practice,
(5th edition 2008).
EPA and Army Corps Respond to Rapanos Decision, Environmental Alert, by
Craig P. Wilson, Christopher R. Nestor. June 2007.
“U.S. Supreme Court Opens Door to EPA Regulation of Greenhouse Gas
Emissions,” Environmental Alert, by Craig P. Wilson, Sandra Y. Snyder. April
2007.
“Coping with Carbon Dioxide,” Energy Magazine, by John F. Spinello, Craig P.
Wilson, Sandra Y. Snyder. Winter 2007.
“EPA Revises National Ambient Air Quality Standards for Particulate Matter,”
Environmental Alert, by Christopher R. Nestor, John F. Spinello, Craig P.
Wilson. October 2006.
“Structuring the Brownfields Transaction - Negotiating Transactional
Agreements,” Chapter 7 in Brownfields Law and Practice: The Cleanup and
Redevelopment of Contaminated Land, by Craig P. Wilson, R. T. Weston. 1998,
revised 2006.
“Structuring the Brownfields Transaction - Overall Structure of the Transaction,”
Chapter 6 in Brownfields Law and Practice: The Cleanup and Redevelopment of
Contaminated Land, by Craig P. Wilson, R. T. Weston. 1998, revised 2006.
PROFESSIONAL/CIVIC ACTIVITIES



American Bar Association (Vice Chair, Water Resources Committee; Co-Chair
Annual Water Law Conference 2011)
Federal Bar Association (Member)
Pennsylvania Bar Association (Member)
Craig P. Wilson
COURT ADMISSIONS









Supreme Court of Pennsylvania
United States Courts of Appeals for the Third Circuit
United States Courts of Appeals for the Fourth Circuit
United States Court of Appeals for the Sixth Circuit
United States Courts of Appeals for the Ninth Circuit
United States District Courts for the Eastern District of Pennsylvania
United States District Courts for the Middle District of Pennsylvania
United States District Court for the Western District of Pennsylvania
United States Supreme Court
BAR MEMBERSHIP
New York
Ohio
Pennsylvania
EDUCATION
J.D., Vermont Law School, 1992 (summa cum laude; Managing Editor, Vermont Law
Review)
M.S.E.L., Vermont Law School, 1992 (summa cum laude)
A.B., Dartmouth College, 1987
ACHIEVEMENTS
Martindale-Hubbell “AV” rating (very high to preeminent legal ability)
Selected by Chambers USA as one of Pennsylvania's leading Environmental lawyers
David Spigelmyer
Vice President, Government Relations, Chesapeake Energy
Chair, Marcellus Shale Coalition
Dave Spigelmyer has invested a 29-year career in the natural gas industry building bridges between state
and local government officials, communities and community leaders, philanthropic organizations and
advocacy groups. Dave began his career working as a director in his hometown YMCA and then moved
into the natural gas industry in 1983. He moved quickly into his government relations role by serving the
industry through a two-year loan program with the American Gas Association in Washington, DC. He has
an extensive background in natural gas pipeline and production operations and has served key
leadership roles in utility operations, legislative and regulatory relations, media and crisis management,
and philanthropic giving. Dave currently serves as Vice President of government relations for
Chesapeake Energy in its Eastern Division operations, is Chairman of the Marcellus Shale Coalition and
is a founding member in the development of that organization. Dave is responsible for Chesapeake
Energy’s state government relations program in Pennsylvania, West Virginia, New York, Ohio, Kentucky
and Virginia.
Dave currently serves on the Board of Directors for the Moraine Trails Council of the Boy Scouts of
America, is a former President of the Board of Directors for the West Virginia Oil and Natural Gas
Association, serves on the Board of the Pennsylvania Chamber of Business and Industry, serves on the
Board of Magee-Womens Research Institute and Foundation, is the Board Secretary for Energize West
Virginia, serves on the Board of Directors of the Keystone Elk Country Alliance, serves on the Board of
the Greater Pittsburgh Chamber of Commerce and he has served as the Gas Executive Committee
Chairman for the Energy Association of Pennsylvania. Dave is a 1982 Graduate of Penn State University
with a BS Degree in Public Service. Dave is a Pennsylvania native and resides with his wife Francie and
two children in Cranberry Township, Pennsylvania.
K&L Gates LLP
J. Daniel Arthur, P.E., SPEC
Managing Partner/Chief Engineer
ALL Consulting
Dan Arthur is a founding member and the Managing Partner of ALL Consulting. Mr. Arthur earned his
bachelors degree in Petroleum Engineering from the University of Missouri-Rolla. Professional
registrations include Professional Engineer in OK, WY, MT, TX and Certification from the Society of
Petroleum Engineers. He is a recognized authority on environmental issues pertaining to unconventional
resource development and production.
Mr. Arthur has served or is currently serving as the lead researcher on several significant projects
involving unconventional resources; environmental considerations pertaining to shale gas development;
produced water management and recycling; access to federal lands; and low impact natural gas and oil
development. He has also managed two U.S. Department of Energy (DOE) funded research projects
involving the development of best management practices utilizing GIS technologies for efficient
environmental protection during unconventional resource Development and Production; research to
develop a national primer on shale gas; research to develop a national primer on coal bed methane;
research to develop a Handbook on the preparation and review of environmental documents for CBM
development; and research with the Ground Water Protection Research Foundation (GWPRF) and
funded by DOE and BLM involving analysis of produced water management alternatives and beneficial
uses of coal bed methane produced water.
In 2010, Mr. Arthur was appointed to serve as a Sub-Group Leader for a National Petroleum Council
study on North American Resource Development. His Sub-Group focuses on technology that is and will
be needed to address development and environmental challenges through the year 2050. Mr. Arthur was
also appointed to a U.S. Department of Energy Federal Advisor Committee on Unconventional
Resources. Further, Mr. Arthur was nominated by the U.S Department of Energy to serve on the U.S.
Environmental Protection Agency’s Advisory Committing on Hydraulic Fracturing. And lastly, Mr. Arthur
has been asked to support the U.S. Department of Energy through the Annex III Agreement between the
United States and China to provide support relative to coal bed methane and shale development in
China. Mr. Arthur has published many articles and reports and has made numerous presentations on
environmental, energy, and technology issues.
Within the State of Alaska, Mr. Arthur has supported projects from the North Slope to the Kenai Peninsula
and supported the Alaska Oil & Gas Conservation Commission with the initial installation of their Risk
Based Data Management System (RBDMS). He has supported a variety of projects throughout the state
related to oil & gas development, federal land management & access, permitting, soil & groundwater
remediation, water sourcing/water management, Native American issues, air permitting issues, regulatory
planning and negotiations, as well as other issues.
K&L Gates LLP
Ankur K. Tohan
AREAS OF PRACTICE
Ankur Tohan is an associate in the firm’s Seattle office. He provides counsel to clients
on regulatory issues involving a range of environmental statutes, such as the Clean
Water Act (CWA), Safe Drinking Water Act (SDWA), Clean Air Act (CAA),
Endangered Species Act (ESA), National Environmental Policy Act (NEPA),
Administrative Procedure Act (APA), as well as federal Indian Law.
SEATTLE OFFICE
PROFESSIONAL BACKGROUND
206.370.7656 TEL
Prior to joining K&L Gates, Mr. Tohan was assistant regional counsel for the U.S.
Environmental Protection Agency where he worked on complex environmental
enforcement, civil defense, and permitting matters. Mr. Tohan served as a lead
attorney in Region 10 on wetland enforcement actions and jurisdictional issues under
the CWA; oil and gas NPDES permitting; and forestry matters under the CWA and
NEPA.
206.370.6238 FAX
ankur.tohan@klgates.com
In the oil and gas sector, Mr. Tohan counseled the U.S. EPA on several matters:






development of the Arctic General NPDES permits for oil and gas exploration in
the Beaufort and Chukchi Seas;
development of individual NPDES permits for production facilities on the north
slope;
CWA Section 404 permitting for production facilities;
SDWA permits for grind-and-inject facilities and oversight of the Alaska Oil and
Gas Conservation Commission - Class II underground injection control program;
ESA consultation; and
CAA enforcement actions.
Mr. Tohan has travelled throughout the Kenai Peninsula and the north slope, which
has allowed him to work directly with several native communities as well as the North
Slope Borough.
PRESENTATIONS




Presenter, Wetlands in Washington, Law Seminars International CLE, 2007,
2010, 2011.
Presenter, Fundamentals of Environmental Compliance Inspections, National
Enforcement Institute, July 2008.
Guest lecturer, Environmental Law Fundamentals, Seattle University Law
School, February 2008, 2010.
Presenter, Society for Ecological Restoration and Society of Wetland Scientists
Joint Conference, September 2007.
PROFESSIONAL/CIVIC ACTIVITIES

Washington State Bar Association
Ankur K. Tohan
BAR MEMBERSHIPS
Washington
EDUCATION
J.D., Lewis & Clark, 2005
M.S., University of Wisconsin, 2000
B.A., University of Vermont, 1992