5. Federal Actions
Hydraulic Fracturing
April 2012 – EPA promulgated new air regulations with
a goal to reduce VOC emissions:
Phased requirements for all NEW natural gas wells
Before Jan 2015 – flare or capture
After Jan 2015 – capture
New requirements for production controllers, storage
vessels and dehydrators
6. Federal Actions
Exceptions for new wells: “Green” completions
are not required for:
New exploratory (“wildcat”) wells or delineation wells
(used to define the borders of a natural gas reservoir),
because they are not near a pipeline to bring the gas to
market.
Hydraulically fractured low-pressure wells, where natural
gas cannot be routed to the gathering line.
Owners/operators must reduce emissions from these wells
using combustion during the well-completion process, unless
combustion is a safety hazard or is prohibited by state or local
regulations.
7. Federal Actions
EPA has added notification and reporting
requirements:
must notify EPA by e-mail no later than two days before
completion work begins.
owners/ operators must submit a report on their well
completions that is certified by a senior company official
attesting to the report’s truth, accuracy and
completeness
8. Federal Actions
Requirements for Storage Vessels at the Well Site
New storage tanks with VOC emissions of 6 tons a year
or more must reduce VOC emissions by at least 95
percent. EPA expects this will generally be accomplished
by routing emissions to a combustion device.
9. Federal Actions
NSPS Requirements for New and Modified
Compressors
Capture and reroute or flare
Required maintenance schedules on seals etc.
10. Title V case – 6th Circuit
Summit Petroleum
41 sites
Common Control
Court overturn EPA
11. Prior Federal Action
Hydraulic Fracturing
Energy Policy Act of 2005, Congress revised the SDWA
definition of “underground injection” to specifically
exclude from UIC regulation the “underground
injection of fluids or propping agents (other than
diesel fuels) pursuant to hydraulic fracturing
operations related to oil, gas, or geothermal
production activities
12. Hydraulic Fracturing
EPA published on May 10, 2012, Permitting Guidance for Oil
and Gas Hydraulic Fracturing Activities Using Diesel
Fuels—Draft. The initial public comment period for this
proposal was 60 days –the deadline was extended to August
23, 2012
Not exempt activity (as other hydraulic fracturing fluids
currently are) - diesel hydraulic fracturing will require UIC
permit
Important threshold question – how will diesel be defined?
13. EPA's Study of Hydraulic
Fracturing
At the request of Congress, EPA is conducting a study
to better understand any potential impacts of
hydraulic fracturing on drinking water and ground
water
first progress report is planned for late 2012. A final
draft report is expected to be released for public
comment and peer review in 2014
15. Bureau of Land Management
Proposing Hydraulic Fracturing
Rule
May 2012 – Rule will regulate hydraulic fracturing on
public land and Indian land. The rule would:
(1) provide disclosure to the public of chemicals used in
hydraulic fracturing on public land and Indian land
(2) strengthen regulations related to well-bore integrity
(3) address issues related to flowback water
(wastewater)
Public comments were extended thru September 10,
2012
16. BLM – not just out west – in the
Southern Section of AWMA
Currently there are several oil and gas leases in process
in Alabama and Mississippi for oil and gas leasing in
2012 and 2013
Recent oil and gas leases completed in Alabama and
Mississippi in 2012
US Forest Service delayed certain leases this year due
concerns over environmental issues
17. National Academy of Sciences -Report
on Hydraulic Fracturing and
Earthquakes
Three major findings emerged from the study:
(1) the process of hydraulic fracturing a well as presently
implemented for shale gas recovery does not pose a high
risk for inducing felt seismic events
(2) injection for disposal of waste water derived from
energy technologies into the subsurface does pose some
risk for induced seismicity, but very few events have been
documented over the past several decades relative to the
large number of disposal wells in operation
(3) Carbon Capture and Storage operations, due to the
large volumes of injected fluids, may have potential for
inducing larger seismic events.
18. Recent State Action
North Carolina passed new law – new commission
with broad authority, prohibits certain hydraulic
fracturing chemicals, requires additional controls and
reporting
Vermont banned hydraulic fracturing in May 2012
(had no oil or gas ongoing activities)
New York and New Jersey – under moratorium
19. Other State Legislation
Maryland –
new law this summer that creates a presumption that
contamination found in a drinking water well in the area (a
2500 foot radius) of a gas well is caused by the gas exploration
or production activity.
Presumption lasts one year from the last drilling, well
completion or fracking activity.
Eliminate presumption if offer to test, share results and land
owner refuses to allow access to drinking water well
Note - Maryland under drilling ban until study complete in
2014
26. Mississippi
Current operators in early stages of development thru
2013 – limited number of wells utilizing fracking
If decision makes business sense – by 2014 could see
up to 20 wells a month underway
27. Mississippi Oil and Gas Board
Proposed Rule 26 – Requirements For Hydraulic
Fracture Stimulation - Report Of Shooting Or Treating
Must obtain prior approval
Demonstrate casing is sufficient to protect
Reporting Currently 2 wells reported in Miss and 55 in Ala.
Disclosure
Identify fracking fluids - (Fracfocus.org)
Based on recently passed Louisiana regulations
Will be taken up at September 19th Board meeting
Potentially effective early November
28. Mississippi Department of
Environmental Quality
Working closely with operators
Wells using up to 12 million gallons of water to develop
up to 8000 foot horizontal well
300,000 to 400,000 gallons per stage
Local geology is important – for example the average
amount of water used in hydraulic fracturing in
California is 164,000 gallons per job
29. Mississippi
Currently using surface water – rivers and farm ponds
Limit to flows above minimum
Trucking and piping water to sites
Industry considering pipe line from Mississippi River
No requests to use groundwater - yet
31. Hydrocarbon Formations – Post
Removal
Who has legal ownership of the pore space post gas/oil
removal ?
32. Kansas
S.B. 271 – Ownership of Pore Space
The ownership of all pore space in all the strata below
the surface lands and waters of Kansas would be vested
in the owners of the surface above the strata.
33. Wyoming
34-1-152. Ownership of pore space underlying
surfaces.
(a) The ownership of all pore space in all strata below
the surface lands and waters of this state is declared to
be vested in the several owners of the surface above the
strata
34. North Dakota
Title to pore space. Title to pore space in all strata
underlying the surface of lands and waters is vested in
the owner of the overlying surface estate.
35. Mississippi Geologic Sequestration
of Carbon Dioxide Act
(§53-11-1)
Oil and Gas Board determines use of reservoir
Oil/gas production or carbon storage or both
If determined (by O & G Board)that sequestration is
best use – must obtain approval of the majority
interest of surface owners
Must obtain full approval from owners within 12 months
from Order
