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Presented by
Cindy Bishop
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Hydraulic Fracturing:
Myths and Maneuvers
I. Hydraulic Fracturing 101
1. What is it?
2. Why do we care?
3. What’s the problem?
II. Regulations – Who’s on First?
1. Texas
2. EPA
III. Myths (Studies)
IV. Maneuvers
1. US v. Range Production Company
2. Maryland v. Chesapeake Energy Corp.
3. Town of Dish v. Atmos Energy, et al.
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What is Hydraulic Fracturing (“Fracing”)?
General Steps
•Obtain water source
•Well construction
•Fracing
•Waste disposal
Fracing
•Liquid pressure
•Fissures
•Propping agent
•Flowback water
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Why do we care?
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It is projected that shale gas will comprise over 20%
of the total US gas supply by 2020 (EPA)
NATURAL GAS PRODUCTION BY SOURCE (TCF/YEAR)
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Effect Locally
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About 1/3 flowback
liquid returns
Disposal well
Surface impoundment
Land surface
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Waste Disposal – Surface
Impoundment
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WHAT’S THE PROBLEM?
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What’s the Problem?
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What’s the Problem?
Chemical Mixing
Well Injection
FIGURE 1. FUNDAMENTAL RESEARCH QUESTIONS POSED FOR EACH STAGE OF THE HYDRAULIC FRACTURING WATER LIFECYCLE
What
What
How
What
are
might
are
are
the
the
the
possible
large
possible
possible
volume
impacts
impacts
impacts
water
ofof
withdrawals
releases
ofthe
releases
injection
of hydraulic
of
from
flowback
and
ground
fracturing
fracturing
and
and
Wastewater
Flowback
Treatment
and
and
Produced
Waste Disposal
Water
surface
produced
process
fluids
water
water
on
on
impact
drinking
drinking
on drinking
Water drinking
water
waterwater
water
resources?
resources?
Acquisition resources?
resources?
Who’s on First?
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The Texas Railroad Commission has
primary jurisdiction over oil and gas
drilling.
Tex. Nat. Res. Code 81.051; 16 Tex. Admin Code 3.5
Texas Commission on Environmental
Quality has primary jurisdiction over
conservation of natural resources and
protection of the environment
30 Tex. Admin Code 5.012
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• Well Drilling/re-completion
• Disposal wells
• Pits for storage of oil field fluids or oil
and gas wastes.
• Spills associated with production
• Oil and Gas Waste
• Applicable Regs: 16 Tex. Admin. Code 3.8 (Water Protection); 3.13
(Casing, Cementing, Drilling, and Completion Requirements); RRC
Rule 38; 40 CFR 261.4(a)(12)
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Disclosure of Fracing Chemicals (16 TAC §
3.29)
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Disclosure of Fracing Chemicals (16 TAC §
3.29)
◦ Disclose:
Volume of water used
Each fracing chemical
Concentrations
Suppliers
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Surface water use
Air Emissions
◦ Permit by Rule (30 TAC §106.352)
New PBR: applies to Barnett Shale operations constructed
or modified after April 1, 2011
◦ Existing operations in Barnett Shale claiming old PBR
must notify TCEQ by Jan. 1, 2013
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Memorandum of Understanding:
16 TAC § 3.30
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Wastewater discharges
Stormwater
TSCA § 8(c)
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Energy Policy Act of 2005 specifically
excludes hydraulic fracturing operations.
◦ Exemption for: “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.”
42 U.S.C. 300h(d)(1)(B)(ii).
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No EPA action after 2005 Energy Policy Act
Summer 2010 – EPA posts on its website
that fracing with diesel requires a UIC
permit
August 2010 – Independent Petroleum
Association v. EPA (D.C. Cir.)
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Chemical disclosure statutes in Arkansas,
Pennsylvania, Wyoming and Colorado, Michigan,
Texas, California
Drilling moratoriums: NY, Maryland, PA
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Barnett Shale
◦ City of Fort Worth rules on drilling
◦ Town of Dish blocks drilling
◦ City of Dallas has not issued any drilling permits
task force for considering drilling requirements
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Sampled 68 drinking water wells in PA
and NY
Methane concentrations were 17 times
higher in water wells near active vs.
inactive wells
Methane was thermogenic
“Methane Contamination of Drinking
Water Accompanying Gas-well Drilling
and Hydraulic Facturing”
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85% of wells sampled contained
thermogenic methane – regardless of
location
No fracing fluid detected in shallow
water
Water properties consistent with
historical data
Methane likely did not come from actual
fracing
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Methane is a GHG
Fracing has a higher carbon footprint than
coal
3.6 to 7.9% escapes in fracing
1.7 to 6% escapes in regular drilling
“Hogwash”
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January 6, 2012 New Cornell Study
Prior study was “seriously flawed”
Fracing has a carbon footprint that is half to
a third that of coal
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2004 EPA study – little to no risk of drinking
water contamination during fracing of
coalbed methane wells
Al’s Study
2011 EPA study pending
Wyoming Study
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2012 - EPA proposed year to release
interim results
2012 to 2014 - additional results to be
released as particular investigations
completed
2014 - EPA proposed year to release
another report
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EPA Wyoming Study
Draft Study – Dec. 8, 2011
Studied rural water wells in response to
complaints
Wells in area since the 1950s
169 production wells
33 surface pits
EPA collected soil and gw samples
Conclusions: (1) pits are a source of
shallow gw contamination (2) likely impact
to gw from hydraulic fracturing
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EPA Wyoming Study - Problems
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UT Study
UT Energy Institute
Groundwater study in Barnett, Haynesville
and Marcellus formations
Final Report Expected January 2012
Preliminary findings – no direct link
between fracing and groundwater
contamination
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LITIGATION
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• 12/7/10 – EPA issued Emergency
Administrative Order against Range under
SDWA
• Methane in 2 drinking water wells in Parker
County “likely” due to fracing from Range
wells in the area
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EPA ordered Range to submit:
◦ A survey of all private water wells in the area
and a sampling plan for approval.
◦ A plan to conduct soil gas surveys and indoor
air analyses for all properties serviced by the
nearby water wells.
◦ A plan to identify and eliminate gas flow
pathways to the Trinity Aquifer.
◦ A plan to remedy the areas of the aquifer that
had been affected by Range’s activities.
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1 day after the EAO issued, Railroad Commission
sets a hearing on Range
Meanwhile, EPA sues Range to enforce the EAO
(1/18/11)
3/7/11 – RRC finds no evidence that Range caused
damage to the drinking water wells
3/22/11 – Range sues EPA, seeking dismissal of
EAO on constitutional and evidentiary grounds
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EPA seeks:
◦ Permanent injunctive relief to require
Range to comply with the EAO.
◦ Civil penalties up to $16,500 per day of
violation.
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4/19/11 – Chesapeake well blowout
releases flowback water onto
neighboring farmlands and into nearby
creek
4/29/11 – Maryland files Notice of Intent
to Sue under RCRA and CWA
◦ Injunctive relief
◦ Attorneys’ fees
5/17/11 – Chesapeake Settles with PA
for $1 million
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February 2011, Town of Dish, Texas sued
six natural gas pipeline companies that own
and operate compressor stations near the
town for releasing harmful substances into
the air
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TIMELINE
◦ 2005: residents complained of odors
but assured there were no harmful
gases
◦ April 2009: city officials confirmed
presence of hydrocarbons in the air
◦ Summer 2009: compressor stations
expanded; air quality allegedly
worsened
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◦ Sept 2009: independent testing confirmed
presence of Benzene, Xylene, Toluene and
Ethylbenzene
◦ April 2010: TCEQ installed permanent
monitoring stations
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Allegations
Nuisance
◦ Odor
◦ Noise
◦ Light
Trespass
No Allegations of Regulatory Violations
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DAMAGES
◦ Residents suffered loss of land market
value, eroded tax base and loss of
revenue in the amount of $15,000 per
year
◦ $45,000 in legal fees
◦ $15,000 in “other” costs associated
with Defendant’s activities
◦ Trespass damages of $1,000 per day
◦ Exemplary Damages
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Allegations of Drinking Water
Contamination
◦ 4 cases in TX
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Where’s the science?
How can we help?
◦ Technical/legal opinions
◦ Baseline study
◦ Disposal audits
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Hydraulic Fracturing
Myths and Maneuvers
Presented by
Cindy Bishop
214-893-5646
cbishop@cbishoplaw.com
www.cbishoplaw.com
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