Walden Associates

Technical, Regulatory and Public Policy Issues

Hydrofracking Shale for New Energy

Siting, Permitting and Regulations

Walden Associates

Siting, Permitting & the Proposed Regulations (NY)

In Pennsylvania, West Virginia and Ohio, fresh water and production water are stored either in central multi-pad lagoons and interconnected via temporary pipelines or dug adjacent to an active drilling pad.

Walden Associates

• 6 NYCRR Parts 52 and 190 – prohibit drilling on state lands (note on state lands not under)

• Parts 550-556 and 560 , Subchapter B: Mineral Resources Regulates drilling, underground activities and reporting

• Parts 750.1 – 750.2 – SPDES permitting for high volume hydro fracturing (HVHF) effects operations on surface

• Now let’s look at these in a bit more detail.

NYSDEC Proposed Shale Gas Drilling Regulations

Walden Associates

Limits of Shale in New York State

Note: Regulations state shale must be at least 2,000 feet deep to be accessed by HVHF

Walden Associates

• Permit Terms – 2 years to start

• Defines HVHF as using more than 300,000 gallons to frack

• Establishes minimum spacing limits

• Requires use of three casing and set cementing requirements

• Requires bottom casing separate potable water from the borehole

• Requires surety for eventual abandonment of wells 6,000 feet or deeper true depth

• Requires drill cutting disposal plan – disposal or BUD

Pre-Drilling Considerations (550-556 and 560)

Walden Associates

• 2,000 Feet from public drinking water supplies

• 500 feet from boundaries of 18 primary aquifers

• 500 feet minimum from private well – owner can waive this

• 4,000 feet from New York City and Syracuse watersheds

• Not in flood plains or on principal aquifers

• Water well testing requirements 2,000 feet (prior to drilling)

Groundwater Protection Considerations (560.4) Setbacks

Walden Associates

• Reserve pit (30 mil) can be used for fresh water and drilling mud circulation only

• Fracking fluids and flowback/production water must be contained in onsite tanks

• All diesel must be stored in double walled tankage

• Use of waste tracking forms required – cutting, flowback

• Diesel fuel cannot be used as frack fluid

• Fluid disposal plan must be developed

Pad Operations and Drilling Considerations (560.6)

Walden Associates

Invest in temporary tank company stock

Closed Loop on Frack Fluid & Flow Back (New York State)

Walden Associates

• SPDES permit must be filed and approved prior to drilling permit being issued

• Defines reserve pit constructions requirements

• Sets fracturing depth minimums – 2,000 feet below grade, 1,000 feet below potable zone

• Sets SEQRA applicability

SPDES (Part 750) – Permit Requirements for HVHF (Stormwater-Wastewater)

Walden Associates

• Requires preparation of SWPPP

• Regulates fracking additives and requires disclosure

• Prepare SPCC plans for all chemicals on the drilling pad

• Sets stormwater monitoring requirements for effluent flow

• Prohibits pad construction on slopes greater than 25%

SPDES (Part 750) – Permit Requirements for HVHF (Stormwater-Wastewater)

Walden Associates

• Who regulates: SRBC or DRBC

• Consumptive Use – Defined more than 20,000 gpd/30 day Ave (600,000)

• Water Withdrawal – 100,000 gpd/30 Day Ave (3,000,000)

• Consideration for 7Q10 issues

• Cumulative effects

Water Access for Drilling Use Permit Requirements

Walden Associates

• Political…you bet

• Drilling will take place in New York’s Southern Tier, west of Binghamton (who favors drilling)

• Principle opposition is based in New York City and Westchester counties

• 810,000 acres near Seneca Lake lease expired – No Action

What’s the Big Fuss in NY?