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North Carolina’s Shale Play: Not Yet By Ben Winikoff

North Carolina’s Shale Play: Not Yet By Ben Winikoff

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Page 1: North Carolina’s Shale Play: Not Yet By Ben Winikoff

North Carolina’s Shale Play: Not YetBy Ben Winikoff

Page 2: North Carolina’s Shale Play: Not Yet By Ben Winikoff

Brief History

Unlike conventional natural gas and oil which has pooled and collected under a layer of impermeable rock, shale oil and gas is trapped within an impermeable source rock and cannot escape on its own.

Page 3: North Carolina’s Shale Play: Not Yet By Ben Winikoff

USGS Assessments

These reserves are from ancient freshwater sources that formed during the Mesozoic period.

Much smaller than the Backken,Marcellus, and Barnett Shale

Page 4: North Carolina’s Shale Play: Not Yet By Ben Winikoff

Source: USGS

1, 709 Billion cubic feet of Gas. In Surveyed NC Basins

Compare to: Marcellus Shale, 141 trillion cubic feet (TCF)

Roughly 10 billion dollars in Natural Gas Reserves in the state

Page 5: North Carolina’s Shale Play: Not Yet By Ben Winikoff

Why a State Problem?

Lobbying groups have successfully carved out exemptions for natural gas

Source: http://www.americanprogress.org/issues/green/news/2011/06/03/9886/bringing-fracking-to-the-surface/

Page 6: North Carolina’s Shale Play: Not Yet By Ben Winikoff

Pre-Drilling Standards

Baseline Water Data on Water QualityBiggest problem states face is lack of information about the water quality before drilling begins

Page 7: North Carolina’s Shale Play: Not Yet By Ben Winikoff

Drilling Regulation Dispute: How to Deal

with Wastewater

Page 8: North Carolina’s Shale Play: Not Yet By Ben Winikoff

Environmental Recovery

Preventing Cleanup Costs From Shifting to Taxpayers

- Bonding Requirements

- Spill Response or Contingency Plans

- Strict Liability

Page 9: North Carolina’s Shale Play: Not Yet By Ben Winikoff

Side-By Side Comparison

Regulation Pennsylvania

Ohio BLM Winikoff

Pre-Drilling Water

Analysis

Waste Water Disposal ?

Underground

Treatment Facilities

ProtectionsBonds

Protection Plans

Strict Liability

Pennsylvania

✗Presumptive

Liability

Ohio

✓Mandatory

Testing

?

BLM

Winikoff

✓Mandatory

Testing