ABOUT THE REPORT · About the HBW Fracking Report HBW Resources’ Fracking Report monitors shale...
Transcript of ABOUT THE REPORT · About the HBW Fracking Report HBW Resources’ Fracking Report monitors shale...
ABOUTTHEREPORT
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TableofContents
AboutHBWResources .................................................................................................................... 1
ExecutiveSummary......................................................................................................................... 2
California,Colorado ........................................................................................................................ 3
Florida,NewMexico ....................................................................................................................... 4
Oklahoma,Pennsylvania ................................................................................................................. 5
WestVirginia .................................................................................................................................. 6
References ...................................................................................................................................... 7
AbouttheHBWFrackingReport
HBWResources’FrackingReportmonitorsshaleenergyactivitiesacrosstheU.S.,assessesthenon-technicalriskfactors,andqualifiesthethreatstoproductionaseitherhigh(RED),medium
(YELLOW),orlow(GREEN).Thereportisupdatedmonthly,reassessingeachstate’sthreatlevelandanalyzingnewdevelopments.Thereportandfurtherupdatesareavailableonlineat:hbwresources.com/intelligence.
AboutHBWResources
HBWResourcesisanintegratedstrategicconsultingandadvocacyfirm.Ourmultidisciplinaryapproachprovidesourclientswithinnovativethinkingandhands-on,seasonedexperience.Ourapproachcutsthroughpartisanviewstorepresentnationalandinternationalcompanies,trade
associations,laborunions,non-for-profitorganizations,Federal-andState-levelofficialsandagencies,academia,andnon-governmentalorganizations(NGOs).WithofficesinHouston,Washington,D.C.,Denver,Lexington,LittleRock,andCalgary,HBWResourceshasforgedasolid
reputationofworkingeffectivelyatthecross-sectionofthepublicpolicy,regulatory,technicalandpoliticalarenastoprovidehighvalue,strategiccounselneededtoachieveresultsforourclients.
FormoreinformationontheHBWFrackingReport,contactAndrewBrowning,Partner,[email protected].
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ExecutiveSummary2016beganwithaslowstartascrudepricesdroppedtonewlowsandrigcountscontinuedtoplummet.Thoughnotahigh-volume,producingstate,Floridahasbecomeaproxybattlegroundasactivistscontinue
theirtacticstopushforlocalfrackingbans.Currently,nearly70localgovernmentshavebannedfrackingwithintheirjurisdictions.Theseeffortsshouldfacesignificantchallenges,however,astheFloridaHouse
advancedlegislationinsupportofoilandgasdevelopmentstatewide.TheStateSenateisnowconsideringthebill.Meanwhile,stateofficialsinColoradohaveapprovedrulesthatwilllimitlocalcontrol
overoilandgasoperations.
Nationally,onshoreenergydevelopmentischallengedbygrowingeffortstohaltfrackingonfederallands.GroupshaveimplementingpetitiondrivesandprotestsareplannedatseveralBureauofLand
Managementofficesinthecomingmonth.Also,thefederalScientificAdvisoryBoardissuedastatementexpressingconcernovertheU.S.EnvironmentalProtectionAgency’sassessmentoftheimpactsof
hydraulicfracturingondrinkingwaterresources.TheBoarddisagreeswiththeagency’sconclusionthatthereareno“widespread”and“systemic”impactstowaterresourcesandwillbeholdingpublicmeetings
throughoutFebruaryandMarchtodiscussisanalysis.
State-by-StateThreatLevel
HighThreat ModerateThreat LoworNon-ExistentThreatCalifornia Delaware NewMexico Alabama Mississippi
Colorado Illinois NorthCarolina Alaska Missouri
Florida Kentucky Ohio Arizona Montana
Maryland Louisiana Oklahoma Arkansas NorthDakota
NewJersey Maine Oregon Connecticut SouthCarolina
NewYork Massachusetts RhodeIsland Georgia SouthDakota
Pennsylvania Michigan Texas Hawaii Tennessee
Vermont Minnesota Virginia Idaho Utah
Nebraska Washington Indiana Wyoming
Nevada WestVirginia Iowa
NewHampshire Wisconsin Kansas
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CALIFORNIA(HIGH)RegulatorsImposeMoratoriumonAlisoCanyonNaturalGas:OnJanuary28,CalifornialawmakersbeganmovingtoenactamoratoriumonwellsinAlisoCanyon.ThisnewscomesinthewakeofaleakataSouthernCaliforniaGasCo.’soperationthatforcedapproximately3,000residentsofPorterRanchtoleavetheirhomes.Theleakoccurredatanolderwellandthecompanyhassincedecidedtostopproductionat18othersimilarwellsfollowingfurtherinspection.TheDivisionofOil,Gas&GeothermalResourceswillconducttheinspectionsofthewellsandallowcontinuedoperationoncetheyaredeemedsafe.ThebillwillnextgototheAssemblybeforeitisputintoplace.1
COLORADO(HIGH)ColoradoRegulatorsApproveLocalControlRules:OnJanuary25,regulatorsfromtheColoradoOilandGasConservationCommissionapprovedrules“dictatingwhenlocalgovernmentshaveasayinthestate’soilandgasdevelopments.”2Therewascontentionoverthespecificsoftherules,inparticularthat“largescale”facilitiesaredefinedaseightnewwellsor4,000barrelsofneworexistingstorage,notincludingwater.CountygroupswerenotappeasedbytherulesandmighttrytotakethisissuetotheNovemberballot.TheColoradoOilandGasAssociationisconcernedthattherulesgivelocalgovernmentstoomuchsay,whilelocalgovernmentsandotheropponentsarguethattherulesarenotstrongenough.Thenewrulemayonlyintensifytheconflict.TherulingcomesfromthefindingsofataskforcethatGov.Hickenlooperappointedtoeasetheconflictoverenergydevelopmentandhydraulicfracturinginparticular.3
AdamsCountyCommissionersRejectFrackingMoratorium:OnJanuary26,AdamsCountycommissionersrejectedaproposedmoratoriumtobannewoilandgasactivityinurbanpartsofthecounty.ThedecisiontonotimposeamoratoriumcomesfromtheeconomicopportunitiesthatoilandgasdevelopmenthasprovidedforAdamsCounty.Thedecisionalsocomesfromthecountywantingtoavoidgettingsuedbythestateorindustrylikeothercitiesthathaveplacedsimilarmoratoriums.Commissionersdidapproveamotiontoreviewhowthecountyshouldapproachfutureoilandgasdevelopment.4ThemajorconcernresidentsofAdamsCountyhavewithoilandgasdrillingistheproximitytoschoolsandhomes.Theyareworriedabouthealthconcernsaswellasnoiseandpropertyvalues.5
ReadmoreaboutfrackingdevelopmentsatthestateandlocallevelonHBWResources’IntelligenceBlog
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FLORIDA(HIGH)FloridaHouseApprovesFrackingBill:OnJanuary27,theFloridaHouseapproved,HB191,allowingthestatetoauthorizehydraulicfracturing.Thebillalsopreemptslocalgovernmentsfrombanningthepracticeintheircommunities.Thebillincludesamoratoriumonfracking,untilthecompletionofanenvironmentalstudytodetermineimpactsonthestate’sgeology,duein2017.6Uponcompletionoftheenvironmentalstudy,regulationswillbeproposedforlegislativeapproval.ThisisthethirdyearthattheHousehasapprovedthisbill.ItnowneedsapprovalbythestateSenate.LocalGovernmentsContinuetoOpposeFrackinginTheirCommunities:OnJanuary26,BrowardCountycommissionersvotedtooutlawfrackingwithinthecounty.ThisactionwaspromptedbyapplicationforaproposedwellonEvergladeslandwithinthecounty’sjurisdiction.ThisinterestalongwiththestateHouseandSenatebillstotakecontrolandregulationoverfrackinghasledthecountycommissionerstocometothedecisiontobanfrackinginBrowardaltogether.7OnJanuary5,LakeCountycommissioners,“unanimouslyvotedtoopposebillsmovingquicklythroughtheLegislaturethatwouldstripcountiesoftherighttoregulateorbanfracking.”8LakeCounty’sobjectionmarksthe33rdcountytoopposethestateintheirbilltocontrolfracking.Nowclosetohalfofthe67countiesinFloridaareopposingtheproposedrule.However,LakeCountyCommissionersdonotsupportastatebanonfrackingaltogether.TheirmainconcernisoverthehealthandsafetyofthecitizensofLakeCounty.Additionally,AlachuaCountyisseekingtodraftanordinancetobanfrackingasothercountiesandcitiesinFloridahavedone.TheproposedlegislationforthestatetocontrolfrackingintheFloridaHouseandSenatehascausedabacklashfromlocalgovernmentsinthestate.9
NEWMEXICO(HIGH)SandovalCountyPlanningandZoningBoardRecommendsAgainstFrackingPermit:TheSandovalCountyPlanningandZoningBoardvotedThursday,January28,torecommendcountycommissionersdenyafrackingpermit.Therewassignificantpublicsupportatthemeetingtodenythepermit.Citizenswereconcernedaboutthegroundwaterprotectionrules.TheSandovalCountyCommissionwillvoteanddecidethefinaloutcomeofthepermitattheirnextmeetingonFebruary18.10
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OKLAHOMA(HIGH)OklahomaCorporationCommissionOrdersReducedInjectionWellVolumes:TherecentincreaseinseismicityhasforcedtheOklahomaCorporationCommissioncameupwithaplantopreventmoreearthquakesfromhappening.ThisplanwillincludereducingthevolumeofwastewaterbeingdisposedinnorthwestOklahomabyabout18percent.Theremaybemorechangesaddedtothisplan.“TheOklahomaGeologicalSurveyhassaiditis‘verylikely’thatmostoftheearthquakesweretriggeredbythesubsurfaceinjectionofwastewaterfromthedrillingoperations.”11GovernorFallinFundsSeismicResearch:OklahomaGovernorMaryFallindedicatedasumof“$1.4millionfromanemergencyfundtopayformoreseismicresearch.”12TherateofearthquakesinOklahomahasincreasedsubstantiallysince2009andhassincegarneredpublicanger.Fallinisbeingcriticizedforherslowresponsetoaddressthisissue.Somehaveattributedtheincreasednumberofearthquakestohydraulicfracturingandnaturalgasproduction.ThemoneywillgototheOklahomaCorporationCommissionandthestate’sgeologicalsurvey.
PENNSYLVANIA(HIGH)GovernorWolfAnnouncesPlantoReduceMethaneEmissionsfromOilandGas:GovernorWolfofPennsylvaniaissuedanewrulingthatwillputmoreregulationsonnaturalgasproducers,specificallyinregardstomethaneemissions.Thesenewruleswillcoverbothnewandexistingwells.Industrywillberequiredtocheckformethaneleakseverythreemonthsaspartofthenewregulation.Industryrepresentativessaytherulesareredundantbecausetheyalreadyhavesystemstopreventmethaneleaks.GovernorWolf’sruleswillexceedthemethanerulessetbytheEPA.Thisisaresponsetoenvironmentalistswhowere,“concernedthatpendingfederalrulescoveronlynewwellsandfacilities.”13Thenewpermitswillgointoeffecteitherlaterthisyearorin18monthsfornewandexistingwellsrespectively.14
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WESTVIRGINIA(MEDIUM)FayetteCountyApprovesBanonWasteInjection:OnJanuary12,FayetteCounty,commissionersapprovedanordinancebanning“thestorage,disposaloruseofoilandnaturalgaswastecountywide.”15ThisvotecomesafterpublicoutcryfromastudyDukeUniversitythatidentifiedfrackingwasteinthedrinkingwaterfromWolfCreek.Industrywilllikelychallengetheordinanceincourt.Countyleadersincludedaseverabilityclausetokeeptherestoftheordinanceintactevenifonepartofitischallenged.
StateBoastsImpressiveNaturalGasProductionNumbers:Reportsfor2014fromtheWestVirginiaGeological&EconomicSurveyshowthatWestVirginiaexceededexpectationsandproducedfarmoreoilandnaturalgasthanexpected.“OilproductioninWestVirginiahasincreasedfromabout27,000barrelsin2009tothe5.2millionbarrelsproducedin2014.”16AlackofpipelinesinWestVirginiaiskeepingcompaniesfrommaximizingprofitsfromthisboom.TherearemultiplepipelinesbeingconsideredthatwouldaidWestVirginiaandOhioinreachingfullproducingpotential.Inthelong-term,theindustryispreparingforevengreaterproduction.
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REFERENCES1McGreevy,Patrick,“MoratoriumonAlisoCanyonnaturalgasoperationsgetsSenateapproval,”LosAngelesTimes,January28,2016,accessedFebruary3,2016,http://www.latimes.com/politics/la-pol-sac-moratorium-on-aliso-canyon-natural-gas-operations-20160128-story.html2Beck,Madelyn,“Colo.CommissionOksruleonlocalcontrol,”Energywire,January27,2016,accessedFebruary3,2016,http://www.eenews.net/energywire/2016/01/27/stories/10600311883Elliott,Dan,“ColoradoOksoil-gasrulesgivingcities,countieslimitedsay,”Bakken.com,January28,2016,accessedFebruary3,2016,https://bakken.com/news/id/250989/colorado-oks-oil-gas-rules-giving-cities-counties-limited-say/4Aguilar,John,“AdamsCountycommissionersnotinfavorofdrillingmoratorium,”TheDenverPost,January27,2016,accessedFebruary3,2016,http://www.denverpost.com/news/ci_29436572/adams-county-mulls-10-month-ban-new-oil5Gelardi,Liz,“HeateddebateaboutoilandgasdrillinginAdamsCounty,”DenverSevenNews,January27,2016,accessedFebruary3,2016,http://www.thedenverchannel.com/news/local-news/heated-debate-about-oil-and-gas-drilling-in-adams-county6Klas,MaryEllen,“FloridaHouseapprovesbilltoauthorize,regulatefracking,”MiamiHearld,January27,2016,accessedFebruary3,2016,http://www.miamiherald.com/news/politics-government/state-politics/article56938703.html7Sweeney,Dan,&Wallman,Brittany,“Browardoutlawsfracking,”SunSentinel,January27,2016,accessedFebruary3,2016,http://www.sun-sentinel.com/local/broward/fl-broward-anti-fracking-20160125-story.html8“Lakecommissionersdemandhomeruleinfrackingcontroversy,”OrlandoSentinel,January5,2016,accessedFebruary3,2016,http://www.orlandosentinel.com/news/lake/os-lk-fracking-lake-commission-20160105-story.html9Warren,April,“Countyasksattorneyforfrackingordinance,”Gainesville.com,January5,2016,accessedFebruary3,2016,http://www.gainesville.com/article/20160105/ARTICLES/16010986310Gregorczyk,Kasia,“SandovalCountyboardrecommendsdenyingfrackingsiteapplication,”KOB4,January28,2016,accessedFebruary3,2016,http://www.kob.com/article/stories/s4031958.shtml#.VrJ3rLIrKCj11“Oklahomaregulatorsorderreducedinjectionwellvolumesafterquakes,”Fuelfix.com,January13,
2016,accessedFebruary3,2016,http://fuelfix.com/blog/2016/01/13/oklahoma-regulators-order-
reduced-injection-well-volumes-after-quakes/12Soraghan,Mike,“Fallinputs$1.4MtowardseismicresearchinOkla.”Energywire,January29,2016,accessedFebruary3,2016,http://www.eenews.net/energywire/2016/01/29/stories/106003136413Conti,David,“Pa.Gov.Wolftargetsmethaneemissionsfromoilandgas,”TribLive,January19,2016,accessedFebruary3,2016,http://triblive.com/business/businessprojects/onthegrid/gas/9820927-74/gas-wells-methane#axzz3xmXJDfZt14Harball,Elizabeth,“Pa.planstoregulatemethanefromdrillingindustry,”Energywire,January20,2016,accessedFebruary4,2016,http://www.eenews.net/energywire/2016/01/20/stories/106003085715Plummer,Sarah,“Commissionapprovesfirstcounty-widebanonwasteinjection,”TheFayetteTribune,January14,2016,accessedFebruary4,2016,http://www.fayettetribune.com/news/commission-approves-first-county-wide-ban-on-waste-injection/article_b2440196-ba2a-11e5-b9ed-3f82b6d3ba3b.html
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16Junkins,Casey,“W.Va.ProductionNumbers‘Shocking’,”TheIntelligencer,January17,2016,accessedFebruary4,2016,http://theintelligencer.net/page/content.detail/id/651654/W-Va--Production-Numbers--Shocki---.html