Water and Hydraulic Fracturing

An Overview

October 17, 2013

Adam Carpenter, Regulatory Analyst

Government Affairs Office – Washington, DC

acarpenter@awwa.org 202-326-6126

Outline 1. Overview of hydraulic fracturing

2. Risks of oil and natural gas development

3. Hydraulic Fracturing Regulation

4. Where to get more information

Recommendations and ideas presented here are not substitutes for state or federal regulations and guidance. Please contact the appropriate state or federal agency for assistance with regulatory compliance issues

AWWA White Paper

• Most of the content of this

presentation is based upon the

2013 AWWA White Paper

Water and Hydraulic Fracturing,

downloadable at

http://www.awwa.org/fracturing

Overview of hydraulic fracturing

• Hydraulic fracturing from a strict engineering perspective is one very specific step of the development of an oil or natural gas well

• In popular media, hydraulic fracturing or “fracking” often refers to the entire oil and natural gas development lifecycle

• Understanding this distinction is key to following the controversy and seemingly contradictory statements surrounding this issue

Source: ProPublica

In and Out of a Well

• In: – Fracturing fluid – Mostly water and sand (97%-

99%) with some chemical additives

• Out: – Flowback water – fluids that return to the surface

– Formation water – fluids that naturally exist

– Together, these are known as Produced Waters

– Usually managed together

Risks of oil and natural gas

development - Overview • Possibility of groundwater contamination

• Possibility of surface water contamination

• Volume and timing of water resource use

• Storm water quality degradation from land use change

• Induced seismicity

Many of these risks are common not only to all oil and gas development (not just those using hydraulic fracturing) but similar to risks found in many other industries

Groundwater Contamination

• Groundwater contamination is possible, but not likely – Several technical, regulatory, and procedural

safeguards designed specifically to prevent this • Casing & Cementing

• Separation of production zone from aquifers

• “Stray Gas” monitoring and mitigation

– Although contamination events are documented from oil and gas development, few are from modern wells and none have been identified to date to be from the hydraulic fracturing process itself

Surface Water Contamination

• Possibility of: – Spills / Accidents

– Leaks at well sites, pipelines, storage facilities

– Problems with delivery of fracturing fluid (mixed or chemical portions separately)

– Problems during removal of wastes

For example, an accident at a well causes a spill at the surface of hydraulic fracturing fluid, and some portion of the fluid escapes on-site containment and makes it to a nearby surface water body. Large spills of this kind are unlikely, but not impossible.

Volume and timing of water

resource use

• The drilling and fracturing of an oil or natural gas well uses a substantial amount of water – Typically 1-2 million gallons per well, but can be more

– Highly variable by location and situation

– Relatively small use compared to some other industrial uses and especially compared to agriculture, although more of the use is consumptive in this case (not returned to the watershed it was removed from)

– Can be an issue during times of drought, if groundwater tables are falling, if infrastructure is being used beyond capacity, and in some other instances

Water Acquisition / Use • Before it becomes a

waste, the water must be acquired

• Not generally problematic, but can be in select circumstances

– Drought

– Water scarce areas

– Consumptive use (although small overall)

Source: NPR

Storm water quality degradation

• When oil and gas development occurs where there previously was forest or otherwise undeveloped land:

– Land use change can result in storm water quality degradation and reduced retention time

– This is in the complete absence of any contamination from the facility itself, although significant construction runoff can occur if not protected using sound storm water control techniques

Induced Seismicity

• Class II Waste / Brine disposal wells (not the oil and gas wells themselves) have been linked to induced seismicity

• Most recorded events have resulted in no damage, although more research is underway and additional prevention techniques need to be developed and implemented

Source: EPA

Hydraulic Fracturing Regulation

• Oil and natural gas development is regulated

The nature and requirements of the regulation vary by: 1. Primary regulatory body (usually state agency)

- Usually a state oil and gas commission or sub-component of state environmental agency

- In some cases, Federal government acting as a land owner / lessor

2. Portion of the development lifecycle - Siting

- Drilling, casing, cementing

- Well stimulation (fracturing)

- Production

- Waste management

- Closure / abandonment

Regulatory Status • Mixture of Federal and State Regulations

– Waste Disposal – Federal programs with state primacy (UIC and NPDES)

– Other Aspects – Some Federal, most state

• Federal UIC program applicability to hydraulic fracturing itself only when diesel fuels are utilized

• Some states leading the way with chemical disclosure and drinking water protections, although far from uniform implementation – RFF and GWPC have catalogued state regulations

Well Siting • Practical and regulatory factors

limit where a well can be placed:

– Must have permission to access mineral rights (generally through lease or ownership)

– State and local regulations may include setback distances from water bodies, certain buildings, zoning requirements, and similar restrictions. Source: americanprogress.org

Drilling, casing, cementing

• Casings (with cementing to lock them in place) are generally steel cylinders designed to isolate wellbore from aquifers and non-production zones

• Most states require several layers of casing through at least the lowermost drinking water aquifer

Well stimulation and

chemical disclosure

• Hydraulic fracturing takes place during this portion of the process

• Many, but not all oil and natural gas wells are fracked

• Federal rules do not regulate this portion (except when done on federal lands), but most states have regulations or guidelines

• Chemical disclosure increasingly done, either voluntarily or by state requirement to www.FracFocus.org

Production

• This phase is when oil and/or natural gas are flowing from the well for use.

• Water also comes up, first as flowback (resulting from the fracturing process) and then as produced water over the life of the well

• The vast majority of the well’s lifecycle is this phase (often many years compared to weeks to months for all other stages combined)

• Governed by state regulations

Waste Management

• Wastewaters created through fracking and production must be managed and disposed:

– Often recycling is a possibility for use in future wells, with or without treatment

– When disposal is required, most commonly done through UIC Class II deep-injection brine disposal wells, although sometimes through commercial wastewater plant treatment (regulated through NPDES permit). Municipal wastewater facilities rarely used and increasingly falling out of favor

Closure / Abandonment

• When a well is no longer to be used for oil and natural gas production, it is closed through a process known as “abandonment”. – Generally involves creating cement plugs between

production zone, aquifers, and surface to prevent movement / transfer of materials, governed by state regulations

• In some states a well can be temporarily abandoned for use at a later date, with different requirements

Important Reminder

• Remember that not everywhere in the

United States has viable oil and natural

gas resources

– If in those areas, be prepared to answer

customer’s questions and monitor for changes

and trends that may allow for future

development

Where to get more information

• AWWA’s resource page on hydraulic

fracturing and related issues at

http://www.awwa.org/fracturing, including a

downloadable version of the white paper

• Links to other sources at EPA, DOE, NAS,

FracFocus, and others

Where to get more information

• For other resources, always consider:

– Potential for bias or exaggerated claims

– Whether information and data can be verified

and are cited

– Whether publication comes from reliable

sources and was either peer reviewed or has

undergone other scrutiny for accuracy

What is on the horizon - Research

• EPA’s major study on the potential impacts of hydraulic fracturing on drinking water recently published a progress report. Draft results expected in late 2014, final in 2015 or 2016

• USEPA, DOI (USGS), and DOE developing a multi-year collaborative research plan for unconventional oil and gas development, including hydraulic fracturing

Summary

• Remember that all risks need to be balanced against benefits

• The benefits of expanded oil and natural gas development are numerous and expansive

– Reduced energy costs (including for utilities)

– Increased economic activity and jobs

– National energy security

– Less pollution and fewer greenhouse gas emissions compared to coal, which it is most likely to displace

Summary

• Common sense measures, collaboration,

and monitoring can reduce and manage

these risks as currently known

• Careful assessment of risks in your area

and outreach and collaboration to reduce

them are likely to be highly productive

efforts

Summary

• Common sense measures, collaboration,

and monitoring can reduce and manage

these risks as currently known

• Careful assessment of risks in your area

and outreach and collaboration to reduce

them are likely to be highly productive

efforts

AWWA Remote Interns Program

• Looking for self-driven students with proposed summer 2014 water policy projects with potential regional or national significance

• Interns will:

– Work from home or school with minimal supervision

– Present results and findings at AWWA and other relevant conferences

– Receive a modest stipend

• We will also help you get your work

published.

• For more information and to receive

updates, contact Adam Carpenter at

acarpenter@awwa.org with your contact

info. Proposals will be due in the spring

AWWA Remote Interns Program

American Water Works Association Government Affairs Office 1300 Eye Street, NW, Suite 701W Washington DC 20005 Gen. Office: (202) 628-8303

Adam T. Carpenter Regulatory Analyst Email: acarpenter@awwa.org Direct: (202) 326-6126