North Carolina’s Shale
Play: Not Yet
By Ben Winikoff
Brief History
Unlike conventional natural gas and oil which has
pooled and collected under a layer of impermeable
rock, shale oil and gas is trapped within an
impermeable source rock and cannot escape on its
own.
USGS
Assessments
These reserves are from
ancient freshwater
sources that formed
during the Mesozoic
period.
Much smaller than the Backken,
Marcellus, and Barnett Shale
Roughly 10 billion dollars in Natural
Gas Reserves in the state
1, 709 Billion cubic feet of Gas. In Surveyed NC Basins
Compare to: Marcellus Shale, 141 trillion cubic feet
(TCF)
Source: USGS
Why a State Problem?
Lobbying groups have successfully carved out
exemptions for natural gas
Source: http://www.americanprogress.org/issues/green/news/2011/06/03/9886/bringing-fracking-to-the-surface/
Pre-Drilling Standards
Baseline Water Data on Water Quality
Biggest problem states face is lack of information about
the water quality before drilling begins
Drilling Regulation Dispute:
How to Deal with Wastewater
Environmental Recovery
Preventing Cleanup Costs From Shifting to Taxpayers
- Bonding Requirements
- Spill Response or Contingency
Plans
- Strict Liability
Side-By Side Comparison
Regulation
Pennsylvania
Ohio
BLM
Winikoff
Pre-Drilling
Water Analysis
✗
Presumptive
Liability
✓
Mandatory
Testing
✗
✓
Mandatory
Testing
Waste Water
Disposal ?
✓
✓
✗
✓
Underground
✗
✓
✗
Treatment
Facilities
✓
?
✗
Protections
Bonds
✓
✓
✗
✓
Protection Plans
✓
✓
✗
✓
Strict Liability
✗
✗
✗
✓
The Debate Goes On