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Presented by: Thomas Beeching, CRA Illinois Hydraulic Fracturing Rules 2 nd Annual Midwest Environmental Compliance Conference Overland Park, KS May 13, 2015

Beeching, Thomas, Conestoga-Rovers & Associates, Illinois Hydraulic Fracturing Rules, 2015 MECC-KC

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Page 1: Beeching, Thomas, Conestoga-Rovers & Associates, Illinois Hydraulic Fracturing Rules, 2015 MECC-KC

Presented by:Thomas Beeching, CRA

Illinois Hydraulic Fracturing Rules

2nd Annual Midwest Environmental Compliance ConferenceOverland Park, KS

May 13, 2015

Page 2: Beeching, Thomas, Conestoga-Rovers & Associates, Illinois Hydraulic Fracturing Rules, 2015 MECC-KC

1.0 The Law and The Rule

The Law Illinois Hydraulic Fracturing Regulatory Act

(HFRA), June 17, 2013 (225 ILCS 732/1-1)

The Rule 62 IAC 245,

December 5, 2014

Page 3: Beeching, Thomas, Conestoga-Rovers & Associates, Illinois Hydraulic Fracturing Rules, 2015 MECC-KC

The HFRA – “Strongest package of regulations in the Country”– Ann Alexander, Senior Attorney, Chicago Office,

Natural Resources Defense Council

Complexity of the Rule– California’s draft regulations for hydraulic

fracturing were contained in 13 pages. Illinois regulations required 130 pages.

1.0 The Law and The Rule

Page 4: Beeching, Thomas, Conestoga-Rovers & Associates, Illinois Hydraulic Fracturing Rules, 2015 MECC-KC

2.0 Overview of Fracking Regulations in Illinois

The Illinois Department of Natural Resources will have the primary authority to administer the Act. Other Groups with Regulatory Involvement include:– Illinois State Geological Society– Illinois State Water Survey– Illinois State Fire Marshal– Illinois Environmental Protection Agency

The HFRA vs. the Illinois Gas and Oil Act (IGOA) – If conflict exists, the HFRA takes precedence over the IGOA

Page 5: Beeching, Thomas, Conestoga-Rovers & Associates, Illinois Hydraulic Fracturing Rules, 2015 MECC-KC

2.0 Overview of Fracking Regulations in Illinois

Applicability Pertains to High Volume Horizontal Hydraulic

Fracturing (HVHHF) operations in which:– > 80,000 gallons – Stimulant (single stage); or,– > 300,000 gallons – Stimulant (all stages)

Medium Volume Horizontal Hydraulic Fracturing Operations (MVHHF) operations in which:– > 80,000 gallons – Stimulant (all stages) and – < 300,000 gallons – Stimulant (all stages).

Page 6: Beeching, Thomas, Conestoga-Rovers & Associates, Illinois Hydraulic Fracturing Rules, 2015 MECC-KC

2.0 Overview of Fracking Regulations in Illinois

The original HFRA signed into law by Governor Pat Quinn included: – Well construction standards

– Chemical Disclosure Standards (posted by IDNR)

– Standards placing health needs above privacy concerns

– Natural gas must be captured and used

– Trade secret claims can be challenged

– Citizen law suits

– Public hearings and appeals

– Open-air ponds prohibited (wastewater [WW] must be stored in closed tanks)

– WW must be tested for dangerous chemicals

– Wells must be closed if fracking fluids are released outside of shale rock formation

– Baseline and periodic post-frack testing of water

– Mandatory setbacks from water sources

– Liability insurance provisions for environmental and health damages

Page 7: Beeching, Thomas, Conestoga-Rovers & Associates, Illinois Hydraulic Fracturing Rules, 2015 MECC-KC

2.0 Overview of Fracking Regulations in Illinois

The HFRA Rule published in December 2014 included some modifications:– WW can be stored in open-air ponds for extended periods of

time if closed tanks could not be emptied expeditiously– Companies must explain why it is not economically feasible

to capture and/or use escaping gas

Page 8: Beeching, Thomas, Conestoga-Rovers & Associates, Illinois Hydraulic Fracturing Rules, 2015 MECC-KC

3.0 Setbacks and Prohibitions

Fracking Wells No well may be located as follows:

– Within 500 feet of any residence or place of worship (w/out written agreement)

– Within 500 feet of any school, hospital, or licensed home facility

– Within 500 feet of surface location of existing water well or spring used for human (or domestic) consumption

– Within 300 feet of a perennial stream or ordinary high water mark of any river, natural or artificial lake, pond, or reservoir

– Within 750 feet of a natural preserve or a site listed on the Register of Land and Water Resources

– Within 1,500 feet of a surface water or groundwater intake of a public water supply

It is unlawful to discharge hydraulic fracturing fluid, produced water, BTEX, diesel, or petroleum distillates into fresh water

It is unlawful to perform high volume horizontal hydraulic fracturing operations by knowingly or recklessly injecting diesel

Page 9: Beeching, Thomas, Conestoga-Rovers & Associates, Illinois Hydraulic Fracturing Rules, 2015 MECC-KC

4.0 Required Permits/Information

A permit is required to drill, deepen, or convert a horizontal well where HVHHF operations are planned

Permit Requirements- Applicant must first register with the IDNR, 30 days prior to applying for a permit.– Registration Form must provide:

– Name, address and legal status of the registrant and all subsidiaries or affiliates

– Full disclosure of any serious violations w/in past 5 years

– Proof of insurance to cover injuries, damages or loss related to pollution or diminution in the amount of $5,000,000

Upon successful registration, the applicant will receive a HVHHF registration number which must be used when making application for a HVHHF Permit. This registration number must be renewed every two years on, or before, September 1.

Page 10: Beeching, Thomas, Conestoga-Rovers & Associates, Illinois Hydraulic Fracturing Rules, 2015 MECC-KC

4.0 Required Permits/Information

Every applicant for a permit must provide the following information to the IDNR on the requisite permit application form – Name, email address, and address of applicant and the HVHHF

registration number

– The proposed well name, location, and legal description of the well, well site, and its unit area (PE/PG certified)

– A statement certifying that the well site is in compliance with setbacks (property boundaries)

– A detailed description of the proposed well to be used for hydraulic fracturing

– The estimated depth and elevation of the well and the lowest potential fresh water along the proposed wellbore

Page 11: Beeching, Thomas, Conestoga-Rovers & Associates, Illinois Hydraulic Fracturing Rules, 2015 MECC-KC

4.0 Required Permits/Information

Detailed description of the proposed HVHHF operations, including, but not limited to:– Geological formation name affected by the fracking operations

– Anticipated surface treating pressure range

– Maximum anticipated injection treating pressure

– Estimated or calculated fracture pressure of the producing and confining zones

– Planned depth of all proposed perforations or depth to the top of the open hole section

Scaled plat maps, diagrams, or cross-sections - all known wells within 750 feet of the horizontal well bore that penetrated within 400 feet of the formation to be stimulated

Page 12: Beeching, Thomas, Conestoga-Rovers & Associates, Illinois Hydraulic Fracturing Rules, 2015 MECC-KC

4.0 Required Permits/Information

A chemical disclosure report that will include:– Total volume of water anticipated to be used in hydraulic

fracturing treatment of the well – Each hydraulic fracturing additive to be used – Each chemical anticipated to be added to the base fluid – The concentration in the base fluid of each chemical to be

added to the base fluid– A master list of chemicals on file with IDNR

Page 13: Beeching, Thomas, Conestoga-Rovers & Associates, Illinois Hydraulic Fracturing Rules, 2015 MECC-KC

4.0 Required Permits/Information

A certification of compliance with the Water Use Act of 1983 and applicable regional water supply plans

Owner information:– Names and addresses of all owners of real property within

1,500 feet of the proposed well site as disclosed by the County Recorders Office

Public Notice Drafts Restoration Statement (strategy for reclamation) Proof of Insurance –$5 million per occurrence to cover

injuries, damages, or losses related to pollution Applicant Disclosure – disclosure of any conviction or

finding occurring after application was submitted Nine separate plans

Page 14: Beeching, Thomas, Conestoga-Rovers & Associates, Illinois Hydraulic Fracturing Rules, 2015 MECC-KC

5.0 Required Plans

Water Source Management Plan – a fresh water withdrawal and management plan. Plan must identify the following:– Name, location (lat./long.), volume, anticipated frequency of

withdrawal, methods used to minimize withdrawals, and methods to minimize impacts to aquatic life

Hydraulic Fracturing Fluids and Flowback Plan A Well Site Safety Plan

- Emergency response arrangements Containment Plan – description of containment practices

and equipment. Directional Drilling Plan

Page 15: Beeching, Thomas, Conestoga-Rovers & Associates, Illinois Hydraulic Fracturing Rules, 2015 MECC-KC

5.0 Required Plans

Casing and Cementing Plan Traffic Management Plan Restoration Statement – Reclamation Plan Water Quality Monitoring Work Plan – PE/PG

Certification– Ensure accurate and complete sampling/testing of area

groundwater supply wells. This may be the most significant part of the new permit requirements!

Page 16: Beeching, Thomas, Conestoga-Rovers & Associates, Illinois Hydraulic Fracturing Rules, 2015 MECC-KC

6.0 Filing and IDNR Review

The hydraulic fracturing permit shall be accompanied by a bond in the amount of $50,000 per permit or a blanket bond of $500,000 for all permits

Each application for a permit under the HFRA shall include a non-refundable fee of $13,500

Permit application shall be submitted to the IDNR in both electronic (searchable format) and hard copy version

Pre-notification of permit filing (5 business days) Post permit application on website within 5 days of

receipt The IDNR shall have 60 calendar days after it receives the

permit application to approve it or reject it, or send it back for additional information

Page 17: Beeching, Thomas, Conestoga-Rovers & Associates, Illinois Hydraulic Fracturing Rules, 2015 MECC-KC

7.0 Public Notice and Comment

Applicants shall mail specific requisite public notices by certified mail within 3 calendar days after submittal of the permit

- Notices to all property owners within 500 feet of the proposed well site and to each municipality and county in which the well site is to be located

Applicants must provide general public notice by publication– Once each week for 2 consecutive weeks beginning no later than 3

calendar days after submittal of the permit

Public comment period begins 7 calendar days after IDNR-receipt of permit application and lasts for 30 days

During public comment period, any person may file written comments to the IDNR concerning any portion of the permit application

Provisions for filing a written objection to the permit:– demonstrate that a party has an interest that will be significantly

affected

Page 18: Beeching, Thomas, Conestoga-Rovers & Associates, Illinois Hydraulic Fracturing Rules, 2015 MECC-KC

8.0 Permit Issuance

Permit shall be reviewed and issued by the IDNR if the following are demonstrated:– Well location restrictions (set backs and prohibitions) of the

Act are satisfied– The applicant satisfies the permit requirements – The Plans required under the Act are adequate and effective– Hydraulic fracturing will be conducted in a manner that

protect public health and safety and prevents pollution of any water source

– Applicant has abated any violation of this Act or of the IOGA– IDNR will also consider all written comments received during

public comment periods and responses to those comments provided by the applicant and any historical information about the company

Page 19: Beeching, Thomas, Conestoga-Rovers & Associates, Illinois Hydraulic Fracturing Rules, 2015 MECC-KC

9.0 Permit Denial

IDNR may suspend, revoke, or refuse to issue a hydraulic fracking permit under this Act for one or more of the following:– Providing incorrect, misleading, incomplete, or materially

untrue information – Violating any condition of the permit– Violating any provision or any regulation – Unethical or dishonest business practices– Demonstration of financial irresponsibility– Revocation of a permit in any other state or province– Emergency condition exists which could impact health and

or safety of the public

Page 20: Beeching, Thomas, Conestoga-Rovers & Associates, Illinois Hydraulic Fracturing Rules, 2015 MECC-KC

10.0 Well Preparation, Construction, and Drilling

Applies to all wells that are to be completed using high volume hydraulic fracturing operations at the site:– Access roads must be located away from occupied

structures, places of assembly, and property lines of unleased properties

– Topsoil usage – Piping, conveyances, valves, and tanks must be compatible

with fluids contained– Site maintenance standards

Page 21: Beeching, Thomas, Conestoga-Rovers & Associates, Illinois Hydraulic Fracturing Rules, 2015 MECC-KC

11.0 High Volume Horizontal Fracking Operation

Permittee shall comply with the terms of the permit at all times IDNR notification at least 48 hours prior to start of fracking

activities All containment inspections and mechanical integrity tests

required under the HFRA be completed All hydraulic fracturing flowback, fluids and produced water

must be stored in above ground tanks Reserve pit is only allowed for temporary storage of fracturing

flowback Tanks used to contain flowback must be routinely corrosion

tested Flowback materials must be tested for VOCs, inorganic

chemicals, heavy metals and naturally occurring radioactive material prior to removal from the site

Subsurface injection of flowback in accordance with internal/external mechanical integrity testing and all applicable IOGA requirements.

Page 22: Beeching, Thomas, Conestoga-Rovers & Associates, Illinois Hydraulic Fracturing Rules, 2015 MECC-KC

11.0 High Volume Horizontal Fracking Operation

Produced water may be disposed of by injection in a permitted enhanced oil recovery operation

Discharge of hydraulic fracturing fluids, hydraulic fracturing flowback, and produced water into any surface water or water drainage way is prohibited

Transportation of hydraulic fracturing fluids, flowback and/or produced water for disposal must be by a liquid oilfield waste hauler permitted by the IDNR under Section 8c of the IOGA

Spills/releases of hydraulic fracturing fluids, additives, or flowback must immediately be cleaned up.

- Release > 42 gallons must be reported to the IDNR. If RQ is exceeded, CERCLA must also be notified.

Page 23: Beeching, Thomas, Conestoga-Rovers & Associates, Illinois Hydraulic Fracturing Rules, 2015 MECC-KC

12.0 Water Quality Monitoring

Each applicant for a HVHHF permit shall provide the IDNR with a Work Plan to ensure accurate and complete sampling and testing. The Work Plan shall include at a minimum the following:– Information identifying all water sources within the range of

testing under this section– A sampling plan and protocol, including notification to the

IDNR at least 7 calendar days prior to sample collection– The name and contact information of an independent third

party under the supervision of a PE/PG that shall be designated to conduct sampling to establish a baseline as provided for under subsection b of this section

Page 24: Beeching, Thomas, Conestoga-Rovers & Associates, Illinois Hydraulic Fracturing Rules, 2015 MECC-KC

12.0 Water Quality Monitoring

– Name and contact information of an independent 3rd party under supervision of a PE/PG

– Name and contact information of an independent certified contract laboratory

– Proof of access and the right to test within the area for testing prescribed

– Identification of practicable contingency measures, including provisions for alternative drinking water supplies which could be implemented in the event of pollution of a water source

Sampling of all water sources within 1,500 feet of the well site prior to any fracturing activities (baseline)

Sampling/analysis - minimum of 3 samples for each water source tested

Analytical results provided to IDNR and within 7 days of receipt or to the owner of the water source

Page 25: Beeching, Thomas, Conestoga-Rovers & Associates, Illinois Hydraulic Fracturing Rules, 2015 MECC-KC

12.0 Water Quality Monitoring

All water sources shall be subjected to retesting in the same manner at 6 months, 18 months, and 30 months after HVHHF operations have been completed

Permittee shall notify the IDNR whenever water quality data indicates that concentrations exceed the standards or criteria referenced in the definition of pollution under section I-5 of the HFRA

Analytical data for each set of sample shall include the following:– pH

– TDS, dissolved methane, dissolved propane, dissolved ethane, alkalinity, and specific conductance

– Chloride, sulfate, arsenic, barium, calcium, chromium, iron, magnesium, selenium, cadmium, lead, manganese, mercury, and silver

– BTEX

– Gross alpha and beta particles

Page 26: Beeching, Thomas, Conestoga-Rovers & Associates, Illinois Hydraulic Fracturing Rules, 2015 MECC-KC

Contact Information

Questions regarding Illinois Fracking Rules?

Please contact:

Thomas Beeching—[email protected]