October 15, 2015 TALKING POINTS FOR TESTIFYING AT PUBLIC HEARINGS ON PROPOSED REVISIONS TO VIRGINIA’S GAS DRILLING REGULATIONS “We should not do any of these techniques here in Virginia until everyone is 100 percent – 100 percent – sure of safety.… Let’s look at all the alternatives. Wind is clean, wind is safe. Solar is clean, solar is safe.” - Terry McAuliffe, as candidate for Governor, September 2011 Thank you for your interest in testifying. Below are background notes and talking points, followed by information on the dates and locations of the upcoming hearings. Background The natural gas industry would like to use unconventional shale gas drilling methods — including hydraulic fracturing combined with horizontal drilling that can extend 1.5 miles horizontally from the drilling pad -- (“fracking”) in at least two areas of Virginia: shale deposits, including the Marcellus Shale, in the western part of the state, and the Taylorsville Basin in the Tidewater area. While no permits for unconventional methods have been granted yet in the Tidewater area, and no high-volume fracking has yet occurred in Virginia, more than 80,000 acres in the Tidewater area have been leased with the intent to frack. Virginia needs to be prepared with strong regulations that address the many risks. Industry points to forms of fracking that have occurred in the southwestern part of the state without publicized environmental harm. These include coal bed methane and lower-volume fracking which reportedly use far less water, fewer chemicals, and produce far less toxic wastewater than high-volume techniques. The forms of fracking now under consideration present a greater threat to our natural resources and health. Virginia had the least protective gas drilling regulations of all 31 states with actual or potential shale gas production, according to a 2013 survey of shale gas regulations by Resources for the Future. The proposed changes will not adequately improve the regulations. The agency that oversees gas drilling, the Department of Mines, Minerals and Energy (DMME), started a process to revise its regulations in late 2013. The original notice filed by DMME indicated that it would revise gas drilling rules to bring them up to “best industry practice.” However, in conducting the review of its regulations, DMME chose to focus on only a handful of issues including requiring disclosure of fracking fluid ingredients, limited baseline testing of groundwater, some improvements to well integrity, requiring submission of an emergency response plan, and requiring fences around open storage pits. DMME refused to conduct a thorough review of its regulations and did not respond to detailed comments filed by environmental groups. Page | 1 Sample Talking Points NOTE: For more detail, look to the links at the end of this summary. For more impact, explain why this issue matters to you personally. In spoken testimony, there will only be time to focus on a few key points. Written comments can be any length. More tips on preparing comments are provided at the end of this document. Interagency study needed in advance of regulation. This proposed regulation fails to consider the most important question: Is it in Virginia’s interest to allow these new forms of unconventional drilling at all? The Governor should order a rigorous interagency study of the health, environmental, economic and other risks and benefits to Virginia, as Governors of Maryland and New York have done. Comprehensive review of drilling regulations is essential. If the interagency study finds that it is possible to safely regulate unconventional shale drilling techniques, a rigorous and comprehensive review of existing drilling regulations will be needed. No permits for unconventional shale gas drilling should be approved until this thorough review has been completed and rules that adequately protect the public have been implemented. Health experts must be involved in the regulatory review. Many of the most serious risks of fracking are to human health. It is surprising that no one with public health expertise was appointed to the Regulatory Advisory Panel convened by DMME, and that the Virginia Department of Health (VDH) does not appear to be involved. A more rigorous and thorough review of these regulations should be conducted, and should rely on public health professionals with expertise in the health issues associated with shale gas fracking operations. In addition, a complete health impact assessment (HIA) should be conducted prior to approving new shale drilling methods in Virginia. Open-air waste pits must be prohibited. The proposed regulations would continue to allow the use of open-air pits to store toxic wastewater, a practice that has led to overflows and harm to surrounding land, groundwater and wildlife in other states. The air pollution that escapes into the atmosphere from open pits also can cause disease in people living nearby. Given the dangers, other states such as New York and Pennsylvania now require closed tanks for capturing flowback water from a well. Virginia should adopt this best practice. Fracking wastewater must not be disposed of by spreading it on roadways, agricultural and forest land. The proposed regulations would continue to allow the practice of spreading fracking wastewater on roadways, agricultural and forest land as a means of disposal, assuming the fluids do not exceed certain chemical limits. “Best practice” is to prohibit this fundamentally unsafe practice, as other states have done. Regulations must provide for safe testing, labeling, transportation, storage and disposal of drilling wastewater. Drilling produces large amounts of briney wastewater, usually toxic and sometimes radioactive, that cannot be properly treated in any wastewater treatment plant in Virginia. Testing, labeling, transportation, storage and disposal of such wastewater has presented huge problems in other states and must be addressed in Virginia’s regulations in consultation with the Department of Page | 2 Environmental Quality (DEQ) and VDH. Permits for unconventional shale fracking must not be issued unless these public health and environmental risks have been fully addressed. Regulations should provide similar protections to all Virginians. The Virginia Gas and Oil Act protects Tidewater Virginia from some of the risks associated with drilling, but these protections are not extended to the rest of the state. For example, drilling companies are required to follow “best practice” by safely disposing of drilling muds and cuttings (toxic drilling waste) in Tidewater, but are allowed to bury the waste on-site in western Virginia, despite the obvious risk that toxics will contaminate groundwater and land. There is no reason for this double-standard. Oil and gas drilling regulations should extend “best practice” protections to all Virginians, not just those in Tidewater. Protective setbacks are an essential “best practice” missing from the proposed regulation. Given the risks inherent in drilling for oil and natural gas, wells and infrastructure need to be set far back from floodplains, public water supply watersheds, fisheries, schools, hospitals and other sensitive areas. Other states provide protective setback requirements in their regulations. Yet Virginia’s only requirement for wells is that they are a mere 200 feet from an occupied building. Much more protective setbacks are another “best practice” that Virginia should adopt. Regulations must address serious air pollution caused by drilling operations. Pollution from methane, a powerful greenhouse gas, ozone, and other harmful gasses associated with shale drilling has been a major problem in states that allow shale drilling. Air pollution must be addressed by the regulations, as it is in other states. Moreover, testing for methane must continue for years after closing the well, because this potent greenhouse gas can leak from wells many years after the well is abandoned. EPA’s proposed regulations may provide a floor in this area, but are subject to litigation and other uncertainties. Virginia should provide higher and more certain standards. State regulations should support local authority. State regulations should ensure that operators respect local land use and zoning ordinances by requiring certification of compliance by the operator. Operators should be required to certify that they are complying with all local, state and federal requirements at regular intervals, not just at the time they apply for a permit. Companies also should be required to report any violations of local, state and federal law to DMME promptly, along with a description of measures that will be taken to correct any errors or omissions. Preapplication meetings publicizing the drilling plans and inviting the public to ask questions should be required for all fracking proposals, not just those in the Tidewater area. Other issues that could be addressed in comments include: Weak water testing requirements need to be strengthened. The regulations establish some baseline water testing and monitoring requirements, but only for groundwater, only within a quarter mile of the wellpad and only for a limited number of chemicals. There are no requirements to test surface water. Testing requirements stop 12 months after the well is completed, while other states such as Colorado require testing for five to six years. The regulations should be amended to provide “best practice” protection for Virginia’s groundwater and surface water supplies, including testing for all the chemicals used to frack the wells. Page | 3 Water supply issues should be addressed. Shale fracking can require large quantities of water, putting local water supplies at risk. Identification of quantities and sources of water and permitting should be required. While some protections are provided for the Tidewater area, similar protections should be extended to western Virginia. Bond requirements are inadequate. DMME does not require bonds that are sufficient to cover the costs of addressing major spills, blowouts, polluted aquifers, and other risks. DMME has promised to address bond requirements in a separate Guidance Document. This is an important issue to all Virginians concerned with the potential shifting of costs and risks from the drilling industry to state and local jurisdictions and landowners. Ingredient disclosure should be strengthened. The regulations continue to provide companies with substantial latitude to conceal the identity of harmful ingredients of fracking fluids by claiming that they are proprietary, except under very limited emergency circumstances. Public disclosure of the identities of injected or spilled chemicals should be required. Disposing of fracking waste in injection wells is strongly linked to earthquake risk and should not be allowed in seismically active regions of Virginia. This is especially true in light of the presence along fault lines in central Virginia of the North Anna Nuclear Generating Station, which suffered damage in Virginia’s 2011 earthquake. For more details For help in developing comments, and for more detailed information about fracking in Virginia, please consult the following resources: 1. We will provide a link to Sierra Club comments as soon as they are available. 2. The full text of the proposed amendments: Virginia Register of Regulations, Volume 32, Issue 3, October 5, 2015, available online at http://register.dls.virginia.gov/vol32/iss03/v32i03.pdf 3. “Governor McAuliffe considers changes to Virginia fracking regulations, currently among worst in nation” Power for the People VA, June 15, 2015, available online at http://powerforthepeopleva.com/2015/06/15/governor-mcauliffe-considers-changes-tovirginia-fracking-regulations-currently-among-worst-in-nation/ 4. A Compendium of Scientific, Medical, and Media Findings Demonstrating Risks and Harms of Fracking (Unconventional Gas and Oil Extraction), Concerned Health Professionals of New York, Oct. 14, 2015, available online at http://concernedhealthny.org. 5. Nathan Richardson et al, The State of State Shale Gas Regulation, at pages 18, 20 (June 2013), available at http://www.rff.org/rff/documents/RFF-Rpt-StateofStateRegs_Report.pdf. 6. Marcellus Shale Safe Drilling Initiative Study, Part III, Final Report, Findings and Recommendations, December 19, 2014; available online at http://www.mde.state.md.us/programs/Land/mining/marcellus/Documents/Final_Marcellu s_Shale_Report.pdf. Page | 4 When and where are the hearings and what should you expect? There will be three public hearings: 1. October 20, 2015, 2:00 p.m., Russell County Office Building, 139 Highland Drive, Lebanon, Va. 2. November 2, 2015, 2:00 p.m., University of Mary Washington, Dahlgren Campus, 4224 University Drive, King George, Va., 22485 3. November 3, 2015, 2:00 p.m., Virginia State Capitol House Room 3, 1000 Bank Street, Richmond, Va. 23219 Anyone with a concern is welcome to speak at these hearings and make their concern a part of the record. There will be a table near the entrance to the room to sign up to speak, and speakers will be called in the order they signed up. Arrive and sign up early if you wish to be one of the first speakers. Expect your time to be limited to 3 minutes. The sole intent of the hearing is to hear from the public. There may be some opening comments from DMME staff, but there will not be a question and answer period. How to prepare a comment for a hearing Introduce yourself and why you are commenting. If you are the designated speaker for a group, briefly describe the group and its mission. Do not suggest that you are speaking on behalf of a group unless you’re sure you have authority. Briefly state the key points (focus on just a few) that you would like to see addressed before these regulations become final. Your comments will become part of the official record. Make sure to state a clear request for DMME to do something specific to address your concerns. The more concrete you can be, the more likely it is that DMME will respond to your comment when it develops the final rule. DMME is required to explain why it does or does not address specific concerns raised in comments. You may use these talking points as a starting point for developing a comment. You can learn more by reading the materials referenced at the end of the talking points. Illustrate your most important point with a personal story if possible. Your story should show why this issue matters to you. If time allows you may reinforce some of the good points made by other speakers without restating what they have said. Always be polite, even if you are sharing strong feelings. Please provide a copy of your comments in writing to staff at the hearing. This will help ensure that your words are made part of the record. Include your full name and address with your written comments. If you do not have a written copy at the hearing, you may submit a copy before December 4, 2015, by mail or electronically. Written comments may be any length. They should be submitted to DMME’s Regulatory Coordinator for this issue, Michael Skiffington, at: Email: mike.skiffington@dmme.virginia.gov; FAX: 804-692-3237. For more information, please contact John Bloom at johnbloom@mindspring.com. Bloom serves as chair of public health issues for the Sierra Club’s Virginia Chapter. Page | 5