Bursic 2:00 R01 THE ETHICS INVOLVED IN HYDRAULIC FRACTURING Brian Edwards (bte6@pitt.edu) WHAT IS HYDRAULIC FRACTURING? Hydraulic fracturing is a process used to extract natural resources, such as shale gas and natural gas, from deep inside rock structures far under the earth’s surface. This process can be very difficult and very dangerous to the workers and the environment. If part of the process malfunctioned, there could be catastrophic damage to the environment. Due to this risk, we must be extremely careful in how we approach a hydraulic fracturing process and what techniques we use in order to extract the resources. WHY IS HYDRAULIC FRACTURING IMPORTANT? In recent years, different countries, including the United States, have started to realize that we must find alternative means for energy due to the immense decrease in the abundance of fossil fuels such as coal and oil. The dwindling of these other natural resources has put an extreme weight on the fact that we may need to look more into other types of gas, for example, natural gas. This gas is impacted in layers of shale, thousands of feet under the earth’s surface, which can be obtained through hydraulic fracturing. However, this process can result in leakage of natural gas and other chemicals into the atmosphere and the environment if not done correctly. If every aspect of the process is carried out with precision and planning, this will be a very profitable and safe way to answer the ever-persisting problem with the deteriorating amount of coal and oil left on our planet. HOW DOES HYDRAULIC FRACTURING WORK? Hydraulic fracturing—also known as fracing—is a twostep process that involves drilling vertically thousands of feet into shale deposits and then making a ninety degree turn to go horizontally into the natural gas deposit. The main reason for this horizontal drilling is to minimize the escape of natural gas in order to maximize profits and decrease, or even eliminate, the harm done to the environment [1]. In the second phase is the phase in which the shale is actually fractured. Once the drill has reached the goal point of contact, a liquid substance, either water, acid, or foam mixed with sand and a small amount of chemicals, is pumped into the well. The liquid is pumped, at high a very high pressure, into the well in order to break the rock. The sand is used as a substance to keep the well-bore open in order to aid in the extraction of natural gas. The different chemical additives are used so that the amount of bacteria University of Pittsburgh Swanson School of Engineering 2014-10-28 and buildup is minimized which keeps the extracted gas very high quality and very pure [1]. After the hydraulic fracturing process is complete, the excess water that was used to fracture the shale is mostly just left in the well. This does not have a very significant impact because the well is so far under the earth’s surface. Unfortunately, some of the water, about fifteen to twenty percent, can get pushed back up to the surface. This small percentage may not seem like an extremely large amount of fluid but when there are millions of gallons of water that are being pumped in, the fifteen percent can have a huge detrimental effect to the environment. There are many ways to clean up and collect this excess flowback fluid such as pumping it out and put into a lagoon or storage tank temporarily until it can be taken to a disposal facility, or sometimes the flowback water can be recycled and used at another fracing facility nearby in order to save the company costs. This process of cleaning up flowback water is extremely important because the water with the added chemicals can be extremely harmful to the environment if it is not all collected and disposed of properly [1]. THE ADVATAGES AND DISADVANTAGES OF DIFFERENT FRACTURING FLUIDS The three main types of fluids used in the fracturing process are water with added chemicals, acid-based fracturing, and foam-based fracturing. Each of these has advantages, disadvantages, and different situations that would make one type more useful than the others. In general water based fracturing is the more predominantly used and is much safer for the environment than acid fracturing but it can be more dangerous that foam based because the water must be pumped in at extremely high pressures where with foam-based fracturing it is pumped in lower volumes and then injected with different gases to allow it to expand. Acid-based fracturing can be useful in certain scenarios where there is gas trapped inside more reactive rocks, such as limestone, because the acid can dissolve it and allow easier access to the natural gas than other types of fracturing would. However, acid-based fracturing, if not done correctly, can be extremely harmful to the environment because if any of the acid leaks into the ground near the surface, it can significantly impact the environment negatively where it would be harmful to vegetation and different species living around the drilling site. Foam-based fracturing is look at as being the most environmentally friendly fracturing fluid. It is a much more stable alternative to acid fracing and does not have nearly as much of an issue with flowback as water-based fracturing does. If flowback Brian Edwards does occur with foam fracing, it is not as much of a concern as with water based because it does not contain the destructive chemicals that water-based fracturing does. Overall foam-based fracturing is the most useful and specifically when it comes to dealing with the environment, the safest method to use [2]. his company are heading toward being environmentally friendly. THE DILEMMA FROM AN ETHICAL STANDPOINT Almost everything my boss, the owner of Ohio Oil and Gas, has asked of me has been in violation of my personal code of ethics along with many other, professionally recognized code of ethics. For me to truly know how to deal with the tasks that have just been asked of me I need to consult various different resources and evaluate how to go about the rest of the project and how to effectively keep myself protected from anything that may endanger my wellbeing, the companies well-being, the well-being of the general population around the fracturing site, and the environment. I will consult and be referencing various codes of ethics including the National Society of Professional Engineers’ code of ethics, the Society of Petroleum Engineers’ code of ethics, and various case studies relating to situations of similarity. THE SCENARIO As a petroleum engineer, Ohio Oil and Gas has asked me to plan, construct, and carry out the process of creating a new hydraulic fracing site. They would like it to be constructed in Eastern Ohio where there is an abundance of Utica and Marcellus shale formations. As to where specifically they should put the well was in Monroe County. Monroe County is home to two of the largest natural gas producing hydraulic fracturing sites in the state of Ohio producing more than 1.3 billion cubic feet of natural gas just last quarter according to The Columbus Dispatch [3]. For this particular project I have advised Ohio Oil and Gas that we should be using a foam-based fracturing technique due to the large amount of wildlife throughout Monroe county and in order to help the companies image of being environmentally friendly. Even though this process— foam-based fracturing—does not require the cleanup of flowback fluid because it is virtually nonexistent. Since the volume of actual liquid that is pumped into the well is so minute, once the gas breaks the surface tension of the foam it is able to release up to the surface in the form of nonharmful, nitrogen and oxygen gas. In this case it would be more expensive than using water-based fracturing but it is the safer way so I feel it is more important to do that than to endanger the workers, the nearby towns, and the environment around the drilling site. NATIONAL SOCIETY OF PROFESSIONAL ENGINEERS’ CODE OF ETHICS This task of which I am being asked not only violates one, but two of the fundamental canons that appear in the National Society of Professional Engineers’ (NSPE) Code of Ethics. The first canon states “Hold paramount safety, health, and welfare of the public” [4]. Firstly just by changing it to a water-based process instead of foam-based it was a way of endangering the environment more than we truly needed to. When my boss asked me to take out the part of the process that disposes of the wastewater, it plainly violated this canon. By taking out the collection of flowback water the safety of the towns surrounding can be compromised due to the added chemicals in the flowback water. If I would choose not include the last step of the process by failing to collect the flowback water, the nearby rivers, streams, and lakes could be intensely affected by the contaminated waste-water which has been seen in various cases. Failing to collect this wastewater has been shown to have a negative health effect on, not only the animals living in the environment nearby, but also the people that inhabit neighboring towns due to the wastewater runoff into wells that supply water to houses [5]. Such a scenario happened in Wyoming in 2009 when fracing cause contamination into wells that people used for drinking water. The EPA conducted an investigation that concluded that the contamination was caused by hydraulic fracturing due to the amounts of natural gas and toxic chemicals that were found in the well water [6]. If this process of cleaning the flowback water is not dealt with the detrimental effects from the chemicals will be catastrophic to the citizens living near the drilling site. THE DILEMMA Once I presented this to my boss he seemed very pleased until he saw that the cost of the process was much higher than that of water based fracturing, which he had use on previous projects in more isolated areas, both from the general population and from heavily forested areas. He decided that he was going to ask me to change my plan in various ways. The first thing he asked was that change from foam-based fracing to water-based fracing. At first I thought that was fine and I would be able to do that but I would just have to make adjustments in order to collect the flowback water so it wouldn’t result in any harm to the community. He then told me that we were going to just skip over that process and construct a new version that does not include the cleanup of flowback in order to cut back on costs and maximize profits. In addition he asks that in my pubic statement tomorrow that I give the plan that I had originally showed to him because he would like it to seem like he and 2 Brian Edwards Also, by asking me to partake in an untruthful public statement, I would be in violation of the third canon in the NSPE Code of Ethics. This canon states that engineers must “Issue public statements in an objective and truthful manner” [4]. I would be in clear violation of this canon if I decide to go through with this public statement. Blatantly breaking two of the fundamental canons put in place by the NSPE is horrendous and is extremely unethical along with being tremendously unprofessional. In addition to violating these two fundamental canons, I would also be in violation of section III.2.2, section III.2.4, and section III.3.1. These three sections, in short, have to do with informing the public truthfully and completely, as well as making sure that the earth and environment will not be damaged and will be protected for generations to come [4]. Included in section III.2.2 is a statement that if my employer insists on me signing a deal or plan that does not stay in line with engineering standards then I am obligated to report them to the proper authorities [4]. In this case I feel that this could be a possible solution in that I would be able to effectively deal with the problem in an efficient manner simply by following the necessary steps laid out for me in the Code of Conduct. From the standpoint of strictly the different Codes of Ethics, it seems fairly clear that what I am being asked of is extremely unethical. In order to fully understand and be able to effectively come up with a reasonable solution to my predicament, I must also consult case studies with similar scenarios that could be of use to me. Additionally I would be able to seek out other sources, such as people, that are more experienced than myself due to their knowledge and expertise in this field of business. CASE STUDIES In the analysis of my dilemma I found one case study particularly helpful in providing insight into another way to look at the situation and find a solution. Case 1010 from the National Institute for Engineering Ethics (NIEE) can be very easily related to the scenario that I am involved with. In this particular case, Julie Adams, the owner of a small engineering firm, was asked to evaluate the structural integrity of the building and determined it was structurally sound. She then discovers that the quite massive granite blocks on the outside of the building are not securely attached and relays the information to her client in which he seems to be unbothered. Since the granite blocks were not part of her original task she was not able to put it into her report but felt it was important to share with her client that was selling the building. He seemed not to care much and said the sale was too far through to do anything about it. As an engineer it was her responsibility to make sure that the building was safe for the public however she must keep all the information between her and her client, therefore she was unable to share this with the general public. In this case it seems obvious that she must do something, so the best way for her to protect the safety and welfare of the public is to write a separate report to her client so that the public can be aware and she will not violate another code by sharing confidential information with the public without her client’s consent [8]. This was a way for her to get around the client confidentiality because she was able to issue a secondary report that did not violate any part of the Code of Ethics. It also ensured that she was able to keep the public safe because he public can now be aware that the granite blocks are potentially dangerous and can deal with it accordingly. In addition, it is a way for her to maintain a good relationship with her client so that he will seek out her services in the future. SOCIETY OF PETROLEUM ENGINEERS’ CODE OF ETHICS The Society of Petroleum Engineers (SPE) has also created a Code of Ethics, very similar to that of the NSPE. The SPE’s code of ethics, however, is slightly more focused on the specific jobs and daily tasks that would pertain more to a petroleum engineer than to most other types of engineers. For instance, the third fundamental idea in the SPE Code of Conduct states that engineers “Are honest, truthful, ethical, and fair in presenting information and in making public statements reflecting on colleagues professional matters and their professional role, whether verbal or through printed or electronic media” [7]. Again, the statement that my employer has asked me to give would be untruthful, dishonest, and unethical. By issuing this formal statement to the public I would be inadequately educating the people that would be put in harm’s way if something were to go wrong. In addition, the tenth point in the SPE Code of Conduct states that engineers are obligated to “Seek to adopt technical and economic measures to render potentially adverse impacts to environment or the health, safety, and security of the public as low as reasonably practicable” [7]. This simply means that it is my duty, as the head petroleum engineer on the project, to do what is in my power and ability to minimize the negative effect of fracing on the community and the environment. This is the complete opposite of what is being asked of me. I am capable of lessening the potential risk to the environment however, I am being asked to do what I can to save the company money but unfortunately in order to do that best, I would have to risk harming the environment catastrophically. SEEKING OUT ADDITIONAL GUIDANCE In my efforts to find the best possible solution I spoke to two individuals that were able to advise me and help me the more than any book source or case study could have. The first person I sought out was my dad. He is a quality assurance manager for Rotating Machinery Services and was previously employed by General Electric’s Oil and Gas 3 Brian Edwards division. He was able to help me to lie out what the positive and negatives were. The fact that he knows me so well and knows what type of a person I am helped me to be able to realize what I value and what is important to me. He knows that, for me, that if anything were to happen to other people because of something that I did, then I would not be able to live with that. His way of explaining to me my personal ideals was better than book or website could have done. He is able to help me see that if I don’t do this one job and keep thousands of people, plants, and animals healthy because of my choice, then it is going to be worth it [9]. I also had a conversation with one of my dad’s very good friends, Nigel Hearne. Mr. Hearne is the president of Chevron’s Appalachia business unit. I believe that his advice will be extremely helpful, due to his knowledge of the hydraulic fracturing business with Chevron’s involvement with Marcellus shale fracing, from a manager’s standpoint. He did end up being extremely useful because he was able to teach me that even though profits are an extremely important part of the business, no amount of money is worth endangering the lives of humans and the environment. One project that will potentially make a larger amount of revenue for the company will not make up for compromising personal views and violating the Code of Ethics put in place by the NSPE. It could possibly damage my reputation as an engineer as well as the reputation of the company that I am working for. He helped me to look at the situation from a futuristic standpoint and allow me to look at what might happen if I decided to go through with the process. Overall he was most beneficial in helping me to look at the “big picture,” instead of just this one project [10]. the end of the day, you need to do what feels right to you and what is ethically correct. REFERENCES [1] Ohio EPA. (2014). “Drilling for Natural Gas in the Marcellus and Utica Shales: Environmental Regulatory Basics”. (Online Article). http://oilandgas.ohiodnr.gov/portals/oilgas/pdf/EPA-factsheets/DrillingforNaturalGasintheMarcellusandUticaShales_ EnvironmentalRegulatoryBasics.pdf [2] J. Fink. (2013). Hydraulic Fracturing Chemicals and Fluids Technology. (Book). p. 20-23 [3] D. Gearino. (2014). “Ohio Oil, Gas Production From Shale Shifts South.” The Columbus Dispatch. (Online Article). http://www.dispatch.com/content/stories/business/2014/09/1 0/ohio-oil-gas-production-from-shale-shifts-south.html [4] National Society of Professional Engineers. (2007). “NSPE Code of Ethics for Engineers.” (Code of Ethics). http://www.nspe.org/Ethics/CodeofEthics/index.html [5] E. Hancox. (2012) “Hydrofracking Fact and Fiction: What You Need to Know About the Controversial Practice”. Policy.mic. (Online Article). http://mic.com/articles/10408/hydrofracking-fact-andfiction-what-you-need-to-know-about-the-controversialpractice [6] A. Mall (2013) “EPA Risks Crisis of Confidence in Protecting Drinking Water From Fracking” The Energy Collective. (Online Article). http://theenergycollective.com/amymall/241336/epa-riskscrisis-confidence-its-dedication-protecting-drinking-waterfracking-risks [7] Society of Petroleum Engineers (2013) “Code of Conduct for Petroleum Engineers.” (Code of Conduct). http://www.spe.org/about/docs/professionalconduct.pdf [8] NIEE (2014) “What’s the Angle? (Case 1010).” Texas Tech University: Ethics Cases. (Online Article). http://www.depts.ttu.edu/murdoughcenter/products/cases.ph p [9] T. Edwards (2014, October 25). Interview [10] N. Hearne (2014, October 25). Interview COMING TO AN ETHICAL CONCLUSION The answer to whether or not to go through with this process seems very evident. I have decided that what my boss is asking of me is too unethical and I cannot bring myself to change the original plan I had created. The shear fact that I would be violating ethical rules set in place by the NSPE and SPE along with my personal ethical values is just too much and I do not feel it is right to continue. In the case where he is extremely insistent on me changing the process and going through with the interview I will file a report with the proper authorities and remove myself from the project due to the misconduct that my employer will be asking of me [4]. I feel that discontinuing my involvement in this project and with this company is what will be best for my career and my personal well-being. If I would stay with this company and continue to work on projects with them, it would be a daily struggle within myself as to whether I am doing the right thing or if everything I am doing is unethical. If any aspiring engineers face a struggle similar to mine I would advise them to take a very similar course of action. In ADDITIONAL RESOURCES (2014) “Adoption of a Safe Component”. Stanford Biodesign: Ethics Case Studies in Biodesign. (Online Article). http://biodesign.stanford.edu/bdn/ethicscases/19safecompon ent.jsp NIEE (2014) “Priming the Town Pump (Case 1012).” Texas Tech University: Ethics Cases. (Online Article) http://www.depts.ttu.edu/murdoughcenter/products/cases.ph p 4 Brian Edwards ACKNOWLEDGMENTS I would like to thank all of my friends that I have made at college for helping me through this school year. Additionally I would like to thank all of my professors for making my classes enjoyable and helping me to gain the knowledge that is required for me to complete my college career. In addition I would like to thank Morgan Kappler for giving me inspiration to write this paper. 5