Environmental and Fracking - NAR - Sept 2013
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Transcript of Environmental and Fracking - NAR - Sept 2013
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8/12/2019 Environmental and Fracking - NAR - Sept 2013
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1. Overview on Environmental Contamination
2. Vapor IntrusionAn Emerging Risk
3. Disclosure and Common Law
4. FrackingReality and Myth
Todays Webinar
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Page 4
PHOENIXLAS VEGAS
POMPTON LAKES MADISON
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Page 5
Residential properties are routinely
impacted by environmental
contamination
SOURCES
Meth Labs
LandfillsGas Stations
Dry Cleaners
Former Industrial Sites
Fracking
EXAMPLESPompton Lakes
Maryland Square
Middlefield-Ellis-Whisman
ISSUES
Vapor Intrusion
Soil contamination
Groundwater pollution
Meth contamination
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Numerous references exist regarding
the consideration of environmental
contamination for residential properties
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Freddie Mac Form 70
Fannie Mae Form 1004
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Freddie Mac Single-Family Seller/Servicer Guide
Volume I, Section 44.15(i)
Page 8
The appraiser mustconsider any known Contaminated Sites or
Hazardous Substances that affect the property or the neighborhood in
which the property is located. The appraiser mustalso note the
presence of Contaminated Sites or Hazardous Substances in theappraisal report, make appropriate adjustments to reflect any impact on
market value, and comment on the effect they have on the marketability
of the subject property.
Proximity of the property and/or its neighborhood to aContaminated Site
Proximity of the property to ground water contamination,
chemical or petroleum spills or other Hazardous Substances
that are expected to impact the area for more than one year
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Why now?
Greater scrutiny then ever before
Consumer protection on all agencies radar
Vapor intrusion a better understood risk
Technology now allows for inexpensive screening/disclosure
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PART 2: Vapor IntrusionEmerging Risk
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Dry cleaner release Plume over 1 mile long
Under affluent residential
neighborhood
Case Study #1Maryland Square
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LAS VEGAS
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White Swan Cleaner-Sea Girt
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Roxana, Illinois Benzene Plume
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Roxana Groundwater Plume
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Roxana Cross-section GW and VI
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PART 3: Disclosure and Common Law
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Dealing with OFFSITE contamination in most cases
The Issue
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Pall-Gelman 1,4-dioxane plume - Ann Arbor, MI
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Is order of the day and trends create new considerations
Urban Renewal Suburban Sprawl
Examples
MA, TX and LA explosions
Consumer Protection
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June 19th.AUSTIN The state plans to compile a registry of businesses with dangerous chemicals so
citizens can learn about hazards like the fertilizer plant in West, where a fire triggered a massive blast of
ammonium nitrate.
http://www.dallasnews.com/news/west-explosion/headlines/20130617-after-west-explosion-texas-may-
compile-public-database-of-hazardous-chemical-sites.ece
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PART 4: FrackingReality from Myths
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Not new!Developed in late 1940s, Large scale in late 60s Goal is to get petroleum hydrocarbons out of low permeability
rock (i.e. Stuff wont move unless there is a path
These are Secondary and Tertiary plays
Today it is largely about shaleand natural gas Largest possible seismic event know was 3.3
Fracturing fluids are a concernmost of them are patented
and about 90% is water with 10% being sand and chemicals
(known carcinogens in some cases)
It occurs deep, typically 2000-3000 feet downwe get our
drinking water 200-300 feet down typically so fairly large
separation.
Some Background on Fracking
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Short for Induced Hydraulic Fracturing
Injection of a fluid (typically water based) into rock layers with
the purpose of extracting oil or gas
What is Fracking?
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Shale formations
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Casing to Depth
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Fracking in Detail
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Marcellus Shale
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North Dakota BOOM!
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Casing Failure
Above Ground Tanks
Surface ponds
Most common risks
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Bringing in LOTS of Water
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Surface Lagoons
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Surface StorageAbove Ground Tanks
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Safe Drinking Water Act- Underground Injection Control
Clean Air Act (well head emissions)
State Oil and Gas Programs
Permitting, well design, siting pits/tanks,
State Environmental Laws
groundwater, surface water, air emissions
Local Ordinances
Regulatory Regime
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SWDA UIC Program
Underground Injection Subsurface emplacement of fluids by well injection
Endangers DWS if results or reasonably expected to result in
presence of contaminants causing non-compliance or adversely
affecting health 300h(d)(2)
Fracking Exclusion- 300h(d)(1)(B)(ii)
Underground injection of fluids or propping agents (other than
diesel fuels)pursuant to hydraulic fracturing related to oil, gas or
geothermal production
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Leasing Issues
Royalties, term, bonus, rental payments, delays, etc
Operations May Be Larger and Closer Than Thought
Landowners left with impacted land
Traffic in towns that never had traffic
Damage to roads through heavy equipment transport
Additional Issues
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Separation of thousands of feet from actual fracking to water
supply wells
Fact from Fiction
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Questions!
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