An Assessment of Marcellus Shale Environmental Issues in West Virginia
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w w w . j a c k s o n k e l l y . c o m Kathy G. Beckett, Esquire 500 Lee Street East, Suite 1600, Charleston, WV 25301 Phone: 304-340-1019 • Fax: 304-340-1272 [email protected] • www.jacksonkelly.com June 21, 2011 An Assessment of Marcellus Shale Environmental Issues in West Virginia Presented at: Marcellus Shale in WV: Emerging Issues Morgantown, WV
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An Assessment of Marcellus Shale Environmental Issues in West Virginia. Presented at: Marcellus Shale in WV: Emerging Issues Morgantown, WV. Overview of Presentation. WV Oil and Gas Program Marcellus Shale activities in WV Well work permitting Water - PowerPoint PPT Presentation
Transcript of An Assessment of Marcellus Shale Environmental Issues in West Virginia
w w w . j a c k s o n k e l l y . c o m
Kathy G. Beckett, Esquire500 Lee Street East, Suite 1600, Charleston, WV 25301
Phone: 304-340-1019 • Fax: 304-340-1272
[email protected] • www.jacksonkelly.com
June 21, 2011
An Assessment of Marcellus Shale Environmental Issues in
West VirginiaPresented at:
Marcellus Shale in WV: Emerging Issues
Morgantown, WV
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Overview of Presentation
• WV Oil and Gas Program• Marcellus Shale activities in WV• Well work permitting • Water
– Zero discharge effluent guideline – Disposal options – TDS– Pit Solids – Water withdrawal– EPA Study
• Air issues • NORM• Legislative initiatives
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WV Oil and Gas Program
• Interstate Oil and Gas Compact Commission – minimum state program guidelines
• STRONGER – State Review of Oil and Gas Environmental Regulation– The 2003 West Virginia review consisted of
two parts. A follow-up review of the progress made since the 1993 Review and a supplemental review.
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Marcellus Shale activities in WV
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w w w . j a c k s o n k e l l y . c o m
Kathy G. Beckett, Esquire500 Lee Street East, Suite 1600, Charleston, WV 25301
Phone: 304-340-1019 • Fax: 304-340-1272
[email protected] • www.jacksonkelly.com
June 21, 2011
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Marcellus Shale Wells Drilled in West Virginia
Permitted Drilled
2009 426 125
2010 433 58
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Marcellus Shale Water Tracking in West Virginia
• In 2010, 28 of 58 wells reported: – 156.5 million gallons water withdrawn – 16 million gallons water recovered (10.2%)
• 2 million gallons UIC disposal
• 13 million gallons reuse
• 1 million gallons centralized treatment plant and reuse
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Well Work Permitting
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Well Work PermittingPermit required from Office of Oil and Gas for all
wells*
- bonding
- soil and erosion and sediment central plan
- notice to:
• surface owners
• coal operators
* W. Va. Code '22-6-6
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Water Quality
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Water Pollution Control PermitsAdditional permit required for any stream discharge*:
- applicable to individual or general permits - must meet water quality standards- must meet effluent guidelines
Onshore Oil and Gas Effluent Guideline (40 C.F.R. '435.32)- “no discharge of waste water pollutants” - exception: “stripper oil wells” - Appalachian Producers requested exemption “Marginal gas wells” – no action by USEPA - Are Marcellus Shale wells covered by effluent guidelines? See September 1976 Development Document
* W. Va. Code '22-6-7
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Water Disposal*- Prohibition against on-site stream
discharge
- UIC – “best option”
- Recycling
- POTW option heavily restricted; none authorized at this time
* Office of Oil and Gas, Industry Guidance, January 8, 2010
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Land Application General PermitGeneral Water Pollution Control Permit (GP-1-WV-
88) – “land application permit”
- no discharge to streams
- pit liquids treated / land applied
- pit solids disposed on site
July 30, 2010 Office of Oil and Gas memorandum “land application of any return fluids from completion activities in the Marcellus Shale formation is prohibited”
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Drilling Pit Reclamation*Requirements:
1. Pit liners remain intact
2. Pit contents must be solidified with approved materials
3. A liner must be placed over the top of pit
* Office of Oil and Gas, Memorandum, March 23, 2010
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Total Dissolved Solids- Existing water quality criteria
• chloride• sulfate
- On-going water quality concerns are causing some to call for TDS criteria of 500 mg/l • WV Legislature rejection of TDS criteria • ORSANCO?
- Issues • 500 mg/l is a non-enforceable drinking water criteria • no stream discharge of Marcellus Shale water • need for additional scientific research
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Water Withdrawal
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Water Withdrawal*- W.Va. Code Chapter 22, Article 26
requires after-the-fact reporting - Office of Oil and Gas now requires prior
reporting and approval: • supplemental permit application form • no withdrawal allowed “at volumes beyond
which the waters can sustain”• Water Withdrawal Guidance Tool
* Office of Oil and Gas, Industry Guidance, January 8, 2010
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USEPA Hydraulic Fracturing Study
- February 28, 2011 request to EPA Science Advisory Board
- Initial results: end of 2012 - Additional results: 2014- Scope:
• acquisition of water • chemical additives • fracturing • flow back management (including treatment and disposal)
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Air Issues
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Air Issues - Permitting:
• Minor source permitting (45 CFR 13) - individual compressors, etc.
• Major source permitting (45 CFR 14) - aggregation of activities? - McCarthy Memo (September 22, 2009) - aggregation criteria
1. adjacent property 2. common control 3. single industrial grouping
- Hughes v. DEP (10-3-AQB) – dismissed
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Air Quality Modeling*
* Performed by Alpine Geophysics for the Midwest Ozone Group
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O3 Trends by RegionsRPO Regional Average O3 Design Values
0.04
0.05
0.06
0.07
0.08
0.09
0.1
2000 2002 2004 2006 2008 2010
Ozo
ne C
once
ntra
tion
[ppm
]
CENRAP
MANE-VU
MRPO
VISTAS
Standard
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8-hour Ozone Modeling Results*
50
55
60
65
70
75
80
85
90
Bucks,
Pen
nsylv
ania
Harf
ord
, M
ary
lan
d
Suff
olk
, N
ew
York
Westc
heste
r, N
ew
York
Phila
delp
hia
, P
enn
sylv
an
ia
Fair
fie
ld,
Conne
cticut
Glo
uceste
r, N
ew
Jers
ey
Ham
ilton,
Oh
io
Ham
pden
, M
assa
ch
usett
s
Warr
en,
Ohio
Me
ckle
nbu
rg,
No
rth
Caro
lina
Cecil,
Mary
lan
d
Mo
nm
ou
th,
Ne
w J
ers
ey
Butle
r, O
hio
Alle
ga
n,
Mic
hig
an
Hud
son,
Ne
w J
ers
ey
New
Ha
ven,
Co
nne
cticut
County
Ozo
ne
DV
(p
pb
)
2008 DVB (Obs)
2014 DVF (BAU)
2018 DVF (BAU)
* Performed by Alpine Geophysics for the Midwest Ozone Group
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PM2.5 Trends: RegionsRPO Regional Average PM2.5 Annual Design Values
0
2
4
6
8
10
12
14
16
18
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
PM
2.5
Con
cent
ratio
n ug
/m3]
CENRAP
MANE-VU
MRPO
VISTAS
Standards
c
RPO Regional Average PM2.5 24-Hour Design Values
0
5
10
15
20
25
30
35
40
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
PM
2.5
Con
cent
ratio
n ug
/m3]
CENRAP
MANE-VU
MRPO
VISTAS
Standards
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PM 2.5 (Annual) Modeling Results*
8
10
12
14
16
18
20
Alle
gh
eny,
Pe
nnsylv
an
ia
Ma
dis
on,
Illin
ois
Wayn
e,
Mic
hig
an
Cu
ya
ho
ga,
Oh
io
Ha
milt
on
, O
hio
Bea
ver,
Penn
sylv
an
ia
Bro
oke
, W
est
Vir
gin
ia
Milw
aukee
, W
isco
nsin
Ne
w C
astle,
De
law
are
Co
ok,
Illin
ois
Sain
t C
lair,
Illin
ois
Cla
rk,
India
na
Ma
rion
, In
dia
na
Scott
, Io
wa
County
An
nu
al P
M2.5
dv
(µ
g/m
^3)
2008 DVB (Obs)
2014 DVF (BAU)
2018 DVF (BAU)
* Performed by Alpine Geophysics for the Midwest Ozone Group
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PM 2.5 (24-hour) Modeling Results*
20
25
30
35
40
45
50
55
60
County
24-h
r P
M2.5
Desig
n V
alu
e (
µg
/m3)
2008 DVB (Obs)
2014 DVF (BAU)
2018 DVF (BAU)
* Performed by Alpine Geophysics for the Midwest Ozone Group
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Air Quality Modeling Conclusion• The ozone NAAQS can be achieved with no new
controls no later than 2014
• The annual PM NAAQS can be achieved with no new controls no later than 2014 with the possible exception of local controls at the Allegheny PA location
• The 24-hr PM NAAQS can be achieved with no new controls no later than 2014 with the possible exception of local controls at the Allegheny PA and Brooke WV locations
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NORM
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NORMWVDEP presentation to legislative
committee (May 7, 2011) - testing shows “safe levels of radioactivity from drilling the Marcellus Shale” - radiation in WV may be of less concern than PA - testing in PA has shown radiation levels “at or below normal”
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Legislative Initiatives
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WVDEP Proposed Legislation SB 424 (2011)
1. $10,000 fee for horizontal drilling
2. Revised permitting requirements
3. Require a water management plan for horizontal drilling
4. Increased penalty authority
5. New regulation of large impoundments (independent of well work permit)
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WVDEP Proposed Legislation SB 424 (2011) (cont)
6. New BMP requirement (including protection of groundwater and fugitive particulate matter)
7. No water withdrawal beyond what the waters can sustain
8. Enhanced notice requirements 9. Enhanced inspection authority 10. Seismic activity subject to notice to Miss Utility
and to property owners 11. Regulate pooling of gas from horizontal shallow
wells
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Joint Judiciary Proposed LegislationHB 2878 (2011)
1. New well work permit required for horizontal wells
2. New water pollution permit required 3. Permit application must include certification of
Division of Highways4. Enhanced notice to property owners5. 1000 feet buffer from building / water wells 6. 2500 feet buffer from surface (1000 feet from
groundwater) source for horizontal wells 7. Enhanced enforcement authority
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Joint Judiciary Proposed LegislationHB 2878 (2011) (cont)
8. Expanded pre-drilling survey requirement
9. Disclosure of chemicals used in fracturing
10. Double liners for centralized impoundments
11. Water withdrawal plan required
12. Mandates surface use and compensation agreement
13. Appeal to Environmental Quality Board
14. Pre-empts local ordinances but not zoning
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Conclusion• WV DEP has developed a Marcellus Shale
regulatory program based upon its well work permit.
• New legislation will buttress the existing regulatory program and address important issues such as horizontal shallow well pooling.
• Even with new legislation, it is likely that some parties will continue to raise objections to horizontal drilling.
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Contact Information
Kathy G. Beckett
Jackson Kelly PLLC
PO Box 553
Charleston, WV 25322
Telephone: (304) 340-1019
Email: [email protected]
