Thomas Mino Team 8 Course Project 2010

8/7/2019 Thomas Mino Team 8 Course Project 2010

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Analysis of the Benefits, Impacts, and Trade-Offs with Developing theMarcellus Shale Gas Potential in Broome County, NY

Summary

The Marcellus Shale has a significant role in the Southern Tier,

specifically Broome County. Unconventional methods have lead to

different views involving shale gas recovery. The economic gains will

greatly affect the local community, however, so will the environmentalimpacts that remain after drilling is complete. For this reason, detailed

analysis is done with regards to economic stimulation, GHG emissions

in comparison to coal and oil, water and chemical usage, risk

assessment, property value and social impacts.

Taniya Thomas

Sergio Mino

Table of Contents

1. Introduction and Objective 1

2. Natural Gas Consumption

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Sergio Mino & Taniya ThomasAnalysis of the Benefits, Impacts, and Trade-Offs with Developing the Marcellus ShaleGas Potential in Broome County, NY

3. Marcellus Shale

3

4. Hydraulic Fracturing

45. Vertical vs. Horizontal Drilling

5

6. Regulations 5

7. Evaluation of Benefits 6

i. Resource Assessment

6

ii. Oil and Coal Comparison

8

iii. Economic Benefits and Job Creations

9

8. Evaluation of Threats11

i. Water Usage

11

ii. Chemicals Used for Hydraulic Fracturing

12

iii. Risk Assessment

13

iv. Flowback Water

15 v. Impact on Land

16

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vi. Greenhouse Gas Emissions Methane Release

16

vii. Social Impacts

169. Conclusions

17

References

18

Appendix

20

20

1. Introduction and Objective

The Marcellus Shale development has divided the opinions of the

residents in New York State, more specifically Broome County where

there are proven reserves. While the prospects of economic

improvement, job creation and energy needs, may sound appealing to

some in the community, there are many concerns regarding potential

negative effects that also worry a large portion of the community.There are arguments that can support both sides.

Our objective is to address the potential positive and negative

effects of developing the Marcellus Shale in Broome County, evaluate

the current understanding of each effect and established conclusions

and recommendations.

2. Natural Gas Consumption

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Natural gas is an important energy source for the United States

and accounts for close to one-fourth of all consumption.1 The current

natural gas reserves in the United States is about 802.226 TCF, with

244.7 TCF corresponding to dry natural gas from which about 32.8 TCF

come from shale gas (not including the Marcellus Shale, Appendix I).

However, annual imports of natural gas are about 3.75 BCF, with

Canada being the primary natural gas supplier by pipeline while Egypt

and Trinidad supply liquefied natural gas (LNG) to the U.S.2

In 2009 alone, the United States was the biggest consumer of

natural gas in the world with a consumption of 22,816 BCF/Year

according to the Energy Information Administration (EIA 2009),

followed by Russia, which consumed 15,524 BCF/Year. Additionally,

natural gas accounts for nearly 24% of the total consumption of

primary energy sources and 21.97% of the total electrical generation in

the U.S.1

The EIA has established that the current growth of consumption

of natural gas will be 0.2 percent a year from 2008 to 2035. Under

these circumstances the U.S. needs to ensure the supply of natural gas

in order to satisfy the expected demand.

According to NYSERDA, New York consumption of natural gas

was about 1,172 BCF/Year for 2008, or 5% of the total U.S. demand in

the same year. Figure 1 separates how natural gas is used in New

York, with the most use of natural gas coming from residential and

electrical generation. Transportation consumes the least natural gas

relative to the other sectors, however it represents 64% of the total

use of natural gas for transportation purposes in the U.S. with 31 TBTU

in 2008.3

Figure 1. New York State primary natural gas consumption bysector

Based on Data from NYSERDA

In comparison, New York used about 240.6 TBTU in 2008 of coal

and 453.1 TBTU of nuclear, which was the principal source for

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electrical generation. However, the states primary source of energy

came from petroleum products with a total of 1,505 TBTU.4

New Yorks strong dependence on oil accounts for 37.4% of the

total energy consumption, but the state also depends strongly on

natural gas, which is 30% of the total energy consumption. (Appendix

II) The difference between the two fossil fuels is where they are used.

75.4% of all petroleum is used in transportation. (Appendix II) The

strong dependence on oil in New York coincides with the strong

dependence on oil for the U.S. Nevertheless, 91% of the New Yorks

total dependence on foreign oil greatly outweighs that of the U.S.,

which depends on 68% of foreign oil.5 Natural gas, as mentioned

earlier, is used more significantly in residential settings and electricity

generation, accounting for 66.6% of the total for both end uses.

It is evident that natural gas is of high demand in the United

States, specifically New York. Additionally, it can be argued to have

less environmental impacts than other fossil fuels. The discovery and

the development of the Marcellus Shale is of great importance to

places such as Broome County, (located in the Southern Tier region of

New York and a southern border with Pennsylvania) which sits on top

of significant shale gas from the Marcellus Shale. In 2008, about

50,975 homes in Broome County were using natural gas, which

accounts for a large percent of the natural gas consumed.1

However, in addition to possible benefits, there are also a

number of threats and consequences that are a result of drilling for

natural gas.

3. Marcellus Shale

The Marcellus Shale is a marine sedimentary rock formation thatit is characterized as black shale with limestone beds and

concentrations of iron pyrite and siderite.6 It covers an area between

52,000 and 95,000 square miles and is located in parts of Ohio,

Virginia, Pennsylvania, New York, Maryland and Kentucky.7 The latter

two states account for small areas.

The thickness of the Marcellus Shale changes considerably over

its total extent. In general, the Marcellus formation thins goes from

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east to west and ranges from 50 to 200 feet. In Broome County,

Marcellus shale is between 3000-4000 feet below ground level.8

The total amount of gas in the Marcellus Shale has been under

debate for years. In 2002, the United States Geological Survey (USGS)

estimated the total amount of gas to be 1.9 TCF. Later, in 2008,

Professor Lash Gary from The State University of New York at Fredonia

estimated the total to be about 490 TCF, of which only 10% was

recoverable.9 The most recent estimate comes from Professor Terry

Engelder of Pennsylvania State University who calculated a total of 489

TCF of gas was recoverable, with the possibility of up to 1,306 TCF if

the entire Marcellus formation has gas.10 A deeper analysis of

estimations will be discussed later.

The significant changes in these estimations have been made

possible as a result of new technology hydraulic fracturing.

4. Hydraulic Fracturing

Hydrocarbon and gas reservoirs depend highly on permeability in

order to provide acceptable yields of production. Once a mature

reservoir starts lowering production rates then a well stimulation

operation is necessary in order to enhance the recovery. On the other

hand, a conventional reservoir is characterized for having a geological

connectivity and permeability that allows recovery by conventional and

economical techniques for oil or gas. Recent technological

development can change the status of a reservoir and convert the

once unconventional reservoir to a conventional one. For the case of

shale formations, the gas is trapped inside fractures and pores of theshale, as the shale itself is characterized as a very low permeability

formation because it is in the form of fine grains. This allows the shale

to be cracked easily without disintegrating it when it is humidified.

Hydraulic fracturing is a well stimulation technique used to

enhance recovery of mature reservoirs as well as to make

economically and technically feasible to recover gas or oil from

unconventional reservoirs. The basis of the technique is to enhance the

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permeability of a formation by first opening fractures and then

stabilizing the fractures by injecting a low permeable matrix. This

allows the gas to be released into the fractures and then transported

through the injected permeable matrix towards the recovery well.

In order to enhance the operation conditions of the hydraulic

fracturing and the recovery, as well as the necessary protection for the

equipment, different types of substances are used in hydraulic

fracturing in what is known as hydraulic fluid. Typically, this fluid is

water, however other carriers such as oil, methanol and a

water/methanol mixture have been used. There has also been research

into the feasibility of CO2.11 The fluid is injected at a high pressure over

10,000 psi into the formation to create a conductive path from the

wellbore into the formation as well as carry the necessary proppant to

create a conductive path for hydrocarbons.The volumes of total

hydraulic fluid for one well range from less than one million for vertical

wells and up to five million for horizontal wells.12 The composition by

volume of the hydraulic fluid is 95 to 99.7% of water and sand and the

rest are additives as shown in (Appendix III, Figure 1)13

A perforation gun using electric charge opens fractures. Next,

acid is injected in order to clean the holes to assure that fractures are

smooth and the surface is uniform. Then, water and sand is injected as

the proppant. Other types of additives are used to reduce friction and

to prevent fouling and corrosion. The most common additives used are

biocides, surfactants, gels, acids and alcohols.

The necessary pressure to initialize fracturing is determined by

knowing all stress in the formation. This is determined using Equation

1. (Appendix IV)5. Vertical vs. Horizontal Drilling

Fracturing operations, requirements and yields are highly

dependent on whether it is applied in a vertical or horizontal well. The

vertical wells are the most common and were the first developed.

These wells are vertically drilled in sections. The first section is the

drilling through 50 -100 ft down the water table, were special

measures are taken to protect the aquifer by installing a steel casing

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and cementing the annulus. Then, the well is drilled even further down

into the formation. At that point different tests are made to make sure

the resource will be productive.

With horizontal drilling, drilling is initiated using the same

method as vertical, but at some point the drilling is turned horizontally

by using a mud motor. The mud motor is a device that contains a rotor

and a stator inside it that is turned by the force of drilling mud and is

able to remain in an established direction. Horizontal drilling can

extend up to 5,000 ft in the horizontal plane. For this reason the

fracturing is done in sections but surface contact of the wellbore with

the formation is notably increased. This also results in a higher use of

hydraulic fluid per well.

Between 2006 and 2010, 2000 wells have been drilled in the

Marcellus Shale. 710 of these wells were drilled in 2009 alone, of which

508 were horizontal wells.14

6. Regulations

At the federal level there are various regulations that apply to oil

and gas drilling operations. These regulations are dependent on the

waste that is to be regulated or the possible receptor of an emission

and depend upon a department of the government, such as the

Environmental Protection Agency (EPA), the Bureau of Land

Management (BLM) or the Bureau of Ocean Energy Management and

Enforcement (BOEMRE).

There have also been many laws passed in order to regulate

certain emissions and other consequences of drilling. These include the

Resource Conservation and Recovery Act (RCRA), the Clean Water Act

and the Safe Drinking Water Act. The RCRA regulates the release ofhazardous wastes. However, in 2005, Congress decided to exempt the

oil and gas industries from compliance of Subtitle C, Section 3001(b)(2)

(A) and Section 8002(m), pending more studies and regulatory

determination by EPA.15 The Clean Water Act requires that a permit

issued by the National Pollutant Elimination System (NPES) must

authorize any discharge of pollutants to the surface water.

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The subsurface regulation of the injection of wastewater is

regulated by the Safe Drink Water Act (SDWA). The purpose of this

regulation is to protect underground sources of drinking water, for this

purpose, the regulation distinguishes between different classifications

of wells. Depending of the well, there are some minimum requirements

for the construction, operation, maintenance and monitoring. Also at

the federal level, BLM has authority over onshore leasing, exploration,

development and production of oil or gas on federal land. This

regulation is ruled by the Title 43 CFR part 3160 where general

requirements for operations and leases are defined, for example leases

terms, operation conditions, permits to drill and methods for containing

disposal of wastes.16

Regulations at state level, for New York State, are found under

the New York Codes, Rule and Regulations (NYCRR). Regulations

specifically meant for oil and gas operations are stated in 6 NYCRR

parts 550 through 559 (Appendix V).

7. Evaluation of Benefits

i. Resource Assessment

There have been a wide range of estimates regarding how much

natural gas is present in the Marcellus Shale and how much of it can be

recovered. Values have been provided previously, however there are

many considerations that need to be accounted for in order to make a

valid estimation regarding the recoverable natural gas.17 Vertical and

horizontal drilling greatly impacts the amount of natural gas that can

be recovered. Hydraulic fracturing, can extract significantly more

natural gas from the Marcellus Shale than any other known method at

the moment. For this reason, all calculations are based on horizontaldrilling techniques for maximum yields.

In 2005, hydraulic fracturing was introduced to the Marcellus

Shale after successful production results from the Barnett Shale in

Texas.18 This resulted in some wells producing millions of cubic feet

worth of natural gas.

While the exact amount of natural gas in the Marcellus Shale is

unknown, it can be estimated over a range. The size of the Marcellus

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Shale spans between 54,000 square miles and 95,000 square miles.

For each area, a maximum and minimum for total natural gas was

calculated assuming that 70% of the land was usable. For the

minimum value, calculations were based on 0.5 BCF gas production of

a well per 80 acres and for the maximum value, 2.5 BCF was used over

the same area. Table 1 shows the results of these calculations.

Table 1. Natural Gas from the Marcellus Shale

Area (SquareMiles)

Minimum (TCF) Maximum (TCF)

54000 151.2 75695000 266 1330

Since there is not enough data on production, recoverable natural

gas is based upon various assumptions and calculations (Appendix VI)

The Federal Energy Regulatory Commissions (FERC) estimate for

recoverable natural gas from the Marcellus Shale is within the smaller

area range at 262 TCF.19 However, as previously mentioned, Engelder

predicts the recoverable natural gas from Marcellus to be 489 TCF.

Both of these values fall within the total range from Table 1.

The total natural gas available in Broome County was calculated

using similar methods as above. These results can be found in Table 2.

(Appendix VII)

Table 2. Natural Gas from the Marcellus Shale Broome County

Area (SquareMiles)

Minimum (TCF) Maximum (TCF)

707 1.98 9.90

ii. Oil and Coal Comparison

Petroleum (crude oil) is of important use to the United States. In

2009 about half of crude oil came from Texas, Alaska, California, North

Dakota and Louisiana.20 57% of petroleum is imported to the United

States from Canada, Saudi Arabia, Venezuela, Nigeria and Mexico.

21

The United States is currently the largest consumer of petroleum and

consumes close to 19.5 MMbbl a day.21 However, when petroleum

products are burned, they can have emit harmful products into the

environment such as carbon dioxide, carbon monoxide, sulfur dioxide,

nitrogen oxides, volatile organic compounds (VOC), particulate matter

and lead to name a few.20

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According to the EIA, the United States will become less

independent on foreign petroleum as 2030 approaches. Both oil prices

and natural gas production are proportional to each other. That is,

when prices for oil are higher, there is an increased demand in natural

gas production and vice versa. With the amount of natural gas in the

Marcellus Shale (and other shale) and better technology from

horizontal drilling and hydraulic fracturing, more gas is to be recovered

therefore bringing the natural gas to the market faster.21

While oils main use is in transportation, coal is primarily used for

electric power generation and accounts for over 50 percent of the

power used in the United States.22 In the Middle Atlantic states, coal

use for electric power generation came second only to nuclear and was

followed by natural gas in 2009.23

Last year, the U.S. consumed about one billion tons of coal,

which was a 10.7 percent decrease from the previous year, however

prices grew for the sixth year.24

Since coal and natural gas have significant use for electric power

generation, it is evident that natural gas will be a reliable substitute for

coal while emitting less greenhouse gases in the long term.

While greenhouse gas consists of many different gases, for the

purpose of comparison, carbon dioxide (CO2) emissions, which

accounts for a significant component of emissions, were compared for

the three fuel types. Table 3 shows the GHG emissions for Broome

County for natural gas, oil and coal.

Table 3. GHG emissions for natural gas, oil and coal - Broome

County

Sector Natural Gas(TCF) Oil (TCF) Coal (TCF)

Electric Generation 0.00277 0.000420 0.00260Residential 0.00277 0.00168 3.06 x 10-5 *Commercial 0.00210 0.00112 --Industrial 0.000588 0.000280 0.000428

Transportation 0.000168 0.0105 0TOTAL 0.00841 0.0140 0.00306

* Total for Residential and Commercial, Coal.Appendix VIIIIn New York, coal accounts for only six-percent of total primary

consumption while natural gas is 30 percent and petroleum is 37

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percent of the total.1 For this reason, the GHG emissions for coal seem

much lower than that for natural gas, on a percent basis, coal emits

more than natural gas. (Appendix VIII)

iii. Economic Benefits and Job Creations

From current trends, it is expected that gas production in the

Marcellus Shale will continue to expand as natural gas continues to be

used in a variety of ways. As mentioned earlier, horizontal drilling can

produce substantially more gas than vertical drilling.

Natural gas prices have varied substantially and are projected to

grow for the next two decades.25 The Marcellus Shale prices are lower

in comparison to other shale formations for two main reasons: drilling

costs are lower than for other shale as a result of gas deposits being

closer to the surface and the installation of the Millennium Pipeline.17

Recently, like in many counties across the country, Broome

County has reported negative economic growth.17 Developing the

Marcellus Shale can bring economic stimulation to the county since

prices for natural gas are expected to rise. Additionally, there will be

continued demand for natural gas in transportation, residential and

industrial uses.17

The Marcellus Shale itself can bring anywhere from $588 billion

to $5.2 trillion based upon the total possible natural gas extracted

using the current price of natural gas ($3.79/MM BTU on November 19,

2010).

For Broome County, the total possible revenue ranges from $7.7

billion to $38.5 billion. While it is unknown exactly how many wells will

be drilled in Broome County, the maximum estimated is 3959 wells

with eight wells per 640 acres (Appendix IX). That means that eachwell can bring between $1,946,165 and $9,730,825 to the County.

However, spending costs must also be taken into account. These costs

will include such things as leasing land, exploration, cost to drill wells,

operating costs and royalties to name a few.

From the production and time relation graph, it is concluded that

it will take about 30 years for all the resources in the Marcellus Shale in

Broome County to be depleted (Figure 2). This is a within the typical

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time frame for natural gas wells that normally have a 20-30 year

lifespan.

Figure 2. Production vs. Time Graph for Minimum and

Maximum Value

Calculation from Excel Spreadsheet

By calculating the net present value (NPV) in this case, it was

found that values were negative. The reason for this being that the

values were calculated based on the current value of natural gas.

However, as previously mentioned, the price of natural gas is to rise

significantly resulting in a higher retention of the total possible

revenue mentioned.

If gas companies decided to drill in Broome County, the county

has 6,000 acres of land that it owns. If it leased the right to the land to

a company, the money received could help reduce what taxpayers pay

to the county. Most recently, there was a $7.8 MM lease offer for 3200

acres with 20% royalties by Inflection Energy for County land which

was rejected.26 Additionally, property tax will be used toward schools,

therefore providing more funding for local schools and better

educational opportunities for the local community.With drilling of the Marcellus Shale, it is expected that companies

have a location in Broome County, which will additionally stimulate the

local economy with the number of people moving to the county to

relocate for new job opportunities. At the same time, local businesses

will correlate their business with gas production, which in turn will help

these businesses prosper.

Job creation is a beneficial result of natural gas drilling. There will

be more jobs available in many sectors including mining, construction,

wholesale trade, and transportation and warehousing to name a few,

both directly and indirectly.27 On average, there are about four jobs

created per well drilled. So, over 15,800 jobs will be created. This is

significant for a county that has seen a decline in population and a

negative percent change in employment between 2000 and 2009 for it

is largest city, Binghamton.17

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8. Evaluation of Threats

i. Water Usage

Water usage for hydraulic fracturing of a horizontal well is

between three to five million gallons per well.28 There are claims that

the available water in the Marcellus Shale region is ideal for shale gas

development in the area mainly because the annual precipitations

ranges between 710 billion and 1,250 billion gallons of water.29

However, the New York State Department of Environmental

Conservation states in its Water Impact Assessment that the actual

water demand for gas operations will only be known after applications

are received, reviewed and approved or rejected by the appropriate

regulatory agencies.30 But for projection purposes, data from the

current applications approved for shale gas operations in horizontal

drilling have been studied.

The NYS DEC states that the Delaware River Basin(DRB)

Commission received applications requesting up to one million gallons

per day (MGD) to support development and extraction activities in the

Delaware Basin. The Susquehanna River Basin (SRB) Commission has

approved up to 8.86 MGD to 9.24 MGD for almost 20 different locations

in Pennsylvania. Typically, range of water usage approval for this basin

has been between 0.041 MGD to 3 MGD.

The DEC report considered this usage low comparing other

current daily usages approved in the SRBC as the largest identified use

is for water supply at approximately 325 million gallons per day (MGD),

followed by power generation at 150 MGD and recreation with 150

MGD. While the current estimate for water usage in gas operations

related to the Marcellus Shale is about 30 MGD or near 6% of the totaluse for water supply.

The Susquehanna Basin comprises a south part of New York that

includes the areas of the Chenango, Otsego, Delaware, Tioga and

Broome Counties. The consumptive use for the upper Susquehanna

region, which is where Broome County is located, is estimated to be

41.4 MGD and projected to be 110.5 MGD.

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For 3959 wells, the total amount of water needed assuming a

rate of 5 MGD is 19,796 MGD. This amount is 2.27 times the total

available water withdrawal from the DRB, which is 8,736 MGD, and

22.43 times the total available water withdrawal from the SRB

assuming all wells were hydraulically fractured in one year, which is

unlikely. The proposed new regulatory framework for hydraulic

fracturing mentions that ideally only 30 MGD can be allowed for

consumptive use on hydraulic fracturing in the SRB, while the DRB can

allow almost 300 MGD, making a total of 330 MGD available for

Broome County.Later, the ideal number of wells will be calculated.

(Appendix XIII)

ii. Chemicals Used for Hydraulic Fracturing

Special attention is centered in the use of various types of

chemicals for hydraulic fracturing. The chemicals principally used are

acids and additives as breakers, biocides, fluid loss additives, friction

reducers, corrosion inhibitors, proppants, iron controllers, reducers,

surfactants, gels, cross link and scale inhibitors. A full explanation of

each chemical is available in Appendix X.

iii. Risk Assessment

According to industry and EPA studies, the amount of chemicals

that can be considered toxic, corresponds to less than five-percent of

the total volume of chemicals used in the hydraulic fracturing fluids,

and the exposure to humans and other species may be limited since

these fluids are injected at depths where it is unlikely for the chemicals

to migrate to an aquifer.31

Toxicological Analysis

The first step for the toxicological analysis was to identify thechemicals that are most likely to be used in the hydraulic fluid

available in Table 4.

Table 4. Toxicity information for fracturing chemicals29,32

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To calculate the data in Table 5, Equation 2 was use. (Appendix IV and

Appendix X)

From Figure, 3 the value of foc is found at 2% so that Kd will be

0.02. L/Kg. This means the concentration of absorbed chemical in the

formation is low compared to the dissolve chemical.

Figure 3. TOC levels for New York34

From Figure 5 it can be inferred that dissolve chemicals in the

aqueous phase may need to migrate through several permeable and

impermeable lawyers in order to reach groundwater for human

consumption. According to the USGS , the water table in Broome

County may be around 26 feet on the subsurface, while the top layer of

the Marcellus may lay under 4000 ft. This scenario makes it very

unlikely that the contaminants can migrate from the shale formation.

Figure 5. Marcellus Shale in New York35

iv. Flowback Water

According to EPAfluids recovered range from 15 to 80 percent of

the volume injected depending on the site.36 This fluid can be recycled

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if their physical and chemical conditions allow it, otherwise they must

be disposed according to the regulations and standards for the

industry.

The new proposed regulation for horizontal wells is going to

require the operator detailed information about the disposal process of

flowback water, including inventories of the amounts managed,

storage tanks information, facilities for treatment or disposal near the

PADs and other information related to waste handling.

v. Impact on Land

i. State of land after drilling is completed

After the production well finishes its life cycle, it is expected that

the operator return the leased site to the owner in an acceptable state.

If the operator fails to treat drilling fluids and flowback water properly,

the site is likely to be polluted.

ii. Impact on property value

Based on the experience with the Barnett Shale, it can be

inferred that the impact on property value will change with time.37

When natural gas is being extracted it is expected that the prices of

property increases due to more demand for housing and offices, and

because of higher income and expectation on leases from the natural

gas companies. There is evidence that certain industrial activities may

cause environmental stigma and therefore a decrease in property

value relative to the properties where there was not fracturing

operations.The decrease on property value can be from 8 to 20

percent in total.38

vi. Greenhouse Gas Emissions Methane Release

A recent study suggests the GHG emissions of natural gas fromhydraulic fracturing may be 2.4 times higher that the carbon dioxide

released in the combustion of natural gas.39 In this process 13.7 grams

C of CO2 per million joules are released, compared to 18.6 grams for

gasoline and 24.0 grams for bituminous coal combustion.40

Methane leakage during natural gas extraction from the

Marcellus Shale, can substantially increase the GHG emissions.39 In the

preliminary estimates this would make natural gas less competitive in

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terms of emissions compared with other fossil fuels as coal, or oil

(Appendix XII)

Engelder was consulted recently about the findings by Howarth

and argues that the numbers for methane are too large for current

advances and the comparison with other fossil fuels may not take into

account the location and accessibility of oil which may increase the

release factor of the other sources (Appendix XII).

vii. Social Impacts

There have been both positive and negative perceptions

regarding shale development. In a comparison between two counties in

Northern Texas, Wise County and Johnson County, both of which have

been affected by the Barnett Shale, have two different perceptions on

shale development.40 Johnson County sees development as a positive

outcome resulting from the economic benefits, job creation, rise in

property value and higher revenues for the County. Wise County,

where development began in 1980, sees the impact of development

after resources have depleted. They live in an environment where

there is environmental degradation, scarcity of available freshwater

and a decrease in quality of life.

This study can be used to assess the social impacts of the

Marcellus Shale. It will give insight into the current conditions and

future conditions of natural gas development.

9. Conclusions

Positive impacts are most visible in economic gains for the

Broome County in terms of royalties and tax payments, for the leasers

in terms on yearly earnings.

With our assumptions of a production well with a maximum of 2.5 BCFand costs of $3.5 MM per well, with the current price of natural gas

high profits are unlikely. However, since the price of natural gas is

expected to go up substantially over the next few decades, high profits

become more likely.

Water usage is a main concern when dealing with hydraulic

fracturing. In Broome County, the SRB and DRB can only provide a

maximum of about 330 MGD. For this reason, the maximum number of

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wells that must be allowed per year in Broome County must be no

more than 66. This number this must be specified in the regulations.

Other recommendations that involve water regulation include the

recycling of hydraulic fluids and new facilities for water, wastes

treatments and disposal.

Gas companies must design a strategy to get in contact with the

concerned community and address their worries responsibly. Other

concerns that can affect people are the possible decrease in quality of

life, caused by the increase of heavy trucks, noise and release of

pollution. In this case the County must account to set up funds that can

be used to remediate those externalities, this funds can be provide by

the royalties paid by the companies.

There must still be more analysis into GHG emissions and more

research into convert fuel type uses, such as the conversion of light

and heavy trucks to natural gas. This can help alleviate New Yorks

dependence on oil.

The role of an academic institution, such as Cornell University, is

to provide the necessary information based on science, economics and

the communitys well being.

References

1. NYSERDA: Patterns and Trends: New York State Energy Profiles: 1994 -2008, January20102. "International Energy Statistics." U.S. Energy Information Administration - EIA Independent Statistics and Analysis. Web. 10 Nov. 2010..3. "International Energy Statistics." U.S. Energy Information Administration - EIA -Independent Statistics and Analysis. Web. 10 Nov. 2010..4. "U.S. Natural Gas Consumption by End Use." U.S. Energy Information Administration -EIA - Independent Statistics and Analysis. Web. 10 Nov. 2010.

.5. NYSERDA: Patterns and Trends: New York State Energy Profiles: 1994 -2008, January20106."Marcellus Shale Gas: New Research Results Surprise Geologists!" Geology.com - EarthScience News, Maps, Dictionary, Articles, Jobs. Web. 12 Nov. 2010..7. Arthur, Daniel, Brian Bohm, and Mark Layne. "Hydraulic Fracturing Considerations forNatural Gas Wells of the Marcellus Shale." Proceedings of the 2008 Ground WaterProtection Council Annual Forum, Cincinnati, Ohio . ALL Consulting. Print.8. Presentation from Broome County Health Dept. Division of Environmental HealthServices.9. Engelder, Terry, Gary G. Lash, and Redescal S. Uzctegui. "Joint Sets That EnhanceProduction from Middle and Upper Devonian Gas Shales of the Appalachian Basin."AAPGBulletin 93.7 (2009): 857-89. Print.1

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10. Couturier, Greg, and Terry Engelder. "Marcellus Shale Appalachian Play Poised for'break Out' Year in '08." Natural Gas Week24 Dec. 2007. Print.11. Yost / DOE,METC, A. B., R. L. Mazza / Petroleum COnsulting Services, and G. B. Gerh /Natural Gas Resources Corp. "CO2/Sand Fracturing in Devonian Shales." Proceedings:1993 Eastern Regional Conference & Exhibition, Pittsburgh, Pennsylvania, November 2-4,1993. Vol. I. [Richardson, TX]: Society, 1993. 353-62. Print. Ser. 93114512. Moss / GRD External Minerals and Energy Coordinator, Kerry, Carol McCoy / GRDBranch Chief, and Pat ODell / GRD Petroleum Engineer. Development of the Natural Gas

Resources in the Marcellus Shale New York, Pennsylvania, Virginia, West Virginia, Ohio,Tennessee, and Maryland. Rep. Denver, CO: National Park Service U.S. Department of theInterior, 2009. Print. 13. Sergio -Need to Cite14. National Energy Technology Laboratory, Summer 2010 Oil and Gas ProgramNewsletter15. "Federal Regulations: Environmental Protection Agency." Web. 15 Nov. 2010..16. "Federal Regulations: Bureau of Land Management." Drilling Waste ManagementInformation System. Web. 20 Nov. 2010..17. Weinstein, Bernard L., and Terry L. Clower. "Potential Economic and Fiscal Impactsfrom Natural Gas Production in Broome County, NY." (Sept. 2009).18. National Energy Technology Laboratory, Summer 2009 Oil and Gas ProgramNewsletter

19. "Making A Big Productions: Shale's Growing Share of US Natural Gas Resource Base."NaturalGas.org. Web. 20 Nov. 2010..20. "EIA Energy - Oil (petroleum)." U.S. Energy Information Administration - EIA -Independent Statistics and Analysis. Web. 21 Nov. 2010..21. "EIA's Energy in Brief: How Dependent Are We on Foreign Oil?" U.S. EnergyInformation Administration - EIA - Independent Statistics and Analysis. Web. 19 Nov.2010. .22. "Impacts of Electric Power Industry Restructuring on the Coal Industry." U.S. EnergyInformation Administration - EIA - Independent Statistics and Analysis. Web. 19 Nov.2010. .23. "U.S. Coal Supply and Demand." U.S. Energy Information Administration - EIA -Independent Statistics and Analysis. Web. 20 Nov. 2010.

.24. "U.S. Coal Supply and Demand." U.S. Energy Information Administration - EIA -Independent Statistics and Analysis. Web. 21 Nov. 2010..25. "Natural Gas Demand." U.S. Energy Information Administration - EIA - IndependentStatistics and Analysis. Web. 19 Nov. 2010. .26. Campbell, Jon. "Broome County Legislature Rejects Inflection's $7.8M Gas Offer."Press Connects [Binghamton] 18 Nov. 2010.27. Considine, Timothy J. "The Economic Impact of the Marcellus Shale Implications forNew York, Pennsylvania, and West Virginia." Report to The American Petroleum Institute(July 2010).28. "Hydraulic Fracturing | Hydraulic Fracturing | US EPA." EPA Office of Water Home |Water | US EPA. Web. 24 Nov.2010..

29. Arthur, Daniel, Brian Bohm, and Mark Layne. "Hydraulic Fracturing Considerations forNatural Gas Wells of the Marcellus Shale." Proceedings of the 2008 Ground WaterProtection Council Annual Forum, Cincinnati, Ohio . ALL Consulting. Print.30.United States of America. New York State Department of Environmental Conservation.Division of Mineral Resources. Draft Supplemental Generic Environmental ImpactStatement on the Oil, Gas and Solution Mining Regulatory Program: Well Permit Issuancefor Horizontal Drilling and High-volume Hydraulic Fracturing to Develop the MarcellusShale and Other Low-permeability Gas Reservoirs, September 2009. Albany, NY: New YorkState, Dept. of Environmental Conservation, Division of Mineral Resources, Bureau of Oiland Gas Regulation, 2009.31. Evaluation of Impacts to Underground Source of Drinking Water by HydraulicFracturing of Coalbed Methane Reservoirs. Rep. no. EPA 816-R-04-003. Washington D.C.,2004.

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32. Fink, Johannes Karl. "Chapter 17: Hydraulic Fracturing." Oil Field Chemicals.Amsterdam: Gulf Professional Pub., 2003. And "Regional Screening Levels | Region 9:Superfund | US EPA." US Environmental Protection Agency. Web. 15 Nov. 2010..33. United States. E.P.A. Supplemental Guidance for Developing Soil Screening Levels forSuperfund Sites. Washington, D.C.: U.S. Environmental Protection Agency, 2002. Print.andBaes, C. F. "A Proposal for Estimation of Soil Leaching and Leaching Constants for Use in

Assessment Models."Journal of Environmental QualityJanuary-March 12.1 (1983).34.Smith, Langhorne B., and James Leone. "Integrated Characterization of Utica andMarcellus Black Shale Gas Plays, New York State." Search and Discovery. 31 Aug. 2010.Web. 15 Nov. 2010.35. Smith, Langhorne B., and James Leone. "Integrated Characterization of Utica andMarcellus Black Shale Gas Plays, New York State." Search and Discovery. 31 Aug. 2010.Web. 15 Nov. 2010. Figure 7.36. United States. U.S. E.P.A. Office of Research and Development. Hydraulic FracturingResearch Study. Washington, D.C.: U.S. Environmental Protection Agency, Office ofResearch and Development, 2010. Print.37.Baker, Sandra. "Barnett Shale Rig Report." Fort Worth Star Telegram. 19 Nov. 2010.Web. 24 Nov. 2010. .

38. Reichert, Alan K. "Impact of a Toxic Waste Superfund Site on Property Values."Appraisal Journal 1 Oct. 1997. and Hite, Diane, Wern Chern, Fred Hitzhusen, and AlanRandall. "Property-Value Impacts of an Environmental Disamenity: The Case of Landfills."The Journal of Real Estate Finance and Economics 0895-5638 22.2 (2001).39. Howarth, Robert W. "Preliminary Assessment of the Greenhouse Gas Emissions fromNatural Gas Obtained by Hydraulic Fracturing." Technology Review. Web. 15 Nov. 2010..40."Voluntary Reporting of Greenhouse Gases Program Fuel Carbon Dioxide EmissionCoefficients." U.S. Energy Information Administration - EIA - Independent Statistics and

Analysis. Web. 16 Nov. 2010. .41. Anderson, Brooklynn J., and Gene L. Theodori. "LOCAL LEADERS PERCEPTIONS OFENERGY DEVELOPMENT IN THE BARNETT SHALE." Southern Rural Sociology24.1 (2009):113-29.

APPENDIX I: Shale Gas Production U.S. Source: EnergyInformation Administration / U.S. Crude Oil, Natural Gas, and Natural GasLiquids Reserves, 2008

APPENDIX II: U.S. and New York Natural Gas Consumption

From the Patterns and Trends Study of NYSERDA 2008 the total energy

consumption in TBtu is 4,027 and the total for natural gas consumption

is 1,209.20 TBtu and for petroleum products is 1,504.60 TBtu.

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(1,209.20/4,027)x 100%= 30%

(1,504.20/4,027)x 100%= 37.4%

For the New York Consumption of Natural Gas Pie Chart:

Residential: (402.6/1,209)x100%= 33%

Commercial: (299.6/1,209)x100% = 25%

Industrial: (84.8/1,209)x100%= 7%

Transportation: (19.4/1,209)x100%= 2%

Electric Generation: (402.9/1,209)x100%= 33%

Appendix III

Figure 2. Hydraulic Fracturing Considerations for Natural GasWells of the Marcellus Shale.

Source: Arthur, Daniel, Brian Bohm, and Mark Layne. "Hydraulic FracturingConsiderations for Natural Gas Wells of the Marcellus Shale." Proceedings ofthe 2008 Ground Water Protection Council Annual Forum, Cincinnati, Ohio .ALL Consulting. Print.

Appendix IV: Equations

(Equation

1)

Where

Pb is the fracture initialization pressure

3sH,min is the minimal horizontal stress

sH,max is the maximal horizontal stress = minimal horizontal stress +tectonic stress.

Tis the tensile strength of the rock

P is the pore pressure

Kd = Koc*foc (Equation

2)

Where:

Kd is the soil-water partition coefficient

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Koc is the organic carbon partition coefficient

foc is the fraction of organic carbon in soil, which in a shale formation

can be related to the TOC (Total Organic Carbon).

APPENDIX V: State Regulatory Requirements forDrilling Operations.

The main New York State regulations for Oil and Gas operations are thefallowing stated in the 6 NYCRR parts from 550 to 559.

The main issues regulated regarding drilling activity are the fallowing:

550 Promulgation and Enforcement of Rules and Regulations

The aim of this chapter is to define the general rules and policiesthat must guide the licensing of oil and gas operations in thestate. The general policy is to develop a scheme in which oil andgas operations are done with the less environmental impactespecially in the reduction of wastes, contamination releases andprotect the rights of owners and the rights of all personsincluding land owners and the genera public.Contains a designation of authorities responsible for theadministration of enforcing rules, specifically to the Bureau ofMineral Resources. It also contains definitions, rules abouthearings and emergency orders, rules about the access to

properties and records and rules about offenses and penalties.Source: http://www.dec.ny.gov/regs/4467.html

551 Reports and Financial SecurityThis chapter establishes the rules about organizational reports,production and purchase reports, completion reports, gas oilreports, nonroutine incident report, plugging report, secondaryrecovery and pressure maintenance report. The oil and gasindustry must comply with specific requirements in their reportsincluding reporting exact quantities managed, the state ofoperations or any organizational change.

The chapter also establishes regulations about financial security,requiring specific requirements to file the oil and gas well withthe department and continuously keep in force financial securitypayable to the department, and setting amounts of financialsecurity to pay to New York State, by setting a total amount topay than goes from $ 2,500 per well to a maximum amount of $150,000 for over 100 wells.

Source: http://www.dec.ny.gov/regs/4466.html

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552 Permits to Drill, Deepen, Plug Back or Convert WellsThis chapter establishes specific regulations about drillingpermits, specifying the process for applying to the permit, andspecifying that starting operations without a permit will beconsidered as operating outside the law. The chapter alsoincludes rules about applications fees, issuance of permit,reissuance of permit, and permit in mining areas to personshaving mining operations or mining rights and under othercircumstances it may apply.


553 Well Spacing

This chapter emphasizes in requirements for well spacing as, forexample, minimum spaces between wells, minimum space

between property boundary and the well, and minimum spacingbetween different types of private and public facilities and thewell with some exceptions.


554 Drilling Practices and Reports

This chapter has the specific regulations, requirements andprohibitions regarding prevention of pollution from drilling wellsoperation. Other rules specified include the commencement of

operations, the cable tool drilling practices, the rotary tooldrilling practices, the deviation, the multiple completion, thecompletion reports, well logs and samples and other minorrequirements.


555 Plugging and Abandonments

A general policy guides the rules and requirements stipulated in

this chapter. The policy emphasizes that it would be unlawful toabandon any well, wells or lease without having pluggedabandoned such well or wells and effected surface restoration inthe manner prescribed in the chapter.The rest of the chapter specifies rules and detailed requirementsabout shut-in wells, temporary abandonment, permanentabandonment, plugging methods and the conversion to freshwater wells.


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556 Operating Practices

This chapter establishes practices for oil and gas wells strictly.Specifying requirements for the operation of the wells, forvacuum pumps, rules for safety assurance, requirements forpollution disposal, rules for the lease of the well, andrequirements for pool and field names.


557 Secondary Recovery and Pressure Maintenance

This chapter requires submitting a specific application before theoperator or anybody intent to initiate a secondary recovery or apressure maintenance operation. This chapter also requires theoperator to implement the necessary measures to assure that

the casing program will prevent migration, leakage or damage tooil, gas, or fresh potable water reservoirs.Other dispositions include the requirements for commencementand cessation of operation as well as records of the volumes offluids and injection pressures which must be included in anannual report.


558 Transportation

This charter establishes requirements for pipelines, specificallythe conditions for suspension or abandon of pipeline usage.Source: http://www.dec.ny.gov/regs/4459.html

559 "Bass Island" Regulations

This chapter specifies requirements only regarding Bass IslandwellsSource: http://www.dec.ny.gov/regs/4456.html

Appendix VI: Natural Gas Reserves Marcellus

Shale/Broome County

Assumptions:

Area:

Minimum Area of Marcellus Shale: 54,000 square miles

Maximum Area of Marcellus Shale: 95,000 square miles

Total Land Area of Broome County: 707 square miles

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*Only about 70% of total area can be used for reason including highly

populated towns, conservation, schools, etc.

Gas Production:

Minimum: 0.5 BCF per 80 acres

Maximum: 2.5 BCF per 80 acres

Equations:

Minimum = ((Total Area x 0.70) x 0.5 BCF)/80 Acres

Maximum = ((Total Area x 0.70) x 2.5 BCF)/80 Acres

Appendix VII: Broome County Natural Gas Consumption

* Data only available for NYS

Population of Broome County: 195, 018 (US Census)

Population of New York State: 19, 541,453 (US Census)

Ratio: 0.00997971

Table 1. Natural Gas Consumption in New York and Broome

County, NY

Sector NY (TBtu) Broome (TBtu)Residential 402.6 4.018Commercial 299.6 2.990

Industrial 84.8 0.846

Transportation 19.4 0.194Electric Generation 402.9 4.021

TOTAL 1209.3 12.07

Appendix VIII: Greenhouse Gas Emissions

Data:

New York State:1

Figure 2. CO2 emissions for each fuel type in NY

Fuel Type CO2 %Coal 12Natural Gas 33Petroleum 55

Using the information above and data from Figure 1, CO2 Emissions for

Each Fuel Type was calculated.

Figure 3. CO2 emissions for NY based on sector and fuel type.

Sector Total CO2 CO2 Natural CO2 Coal CO2

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(TCF) Gas (TCF) TCF) Petroleum(TCF)

ElectricGeneration

0.582 0.278 0.260 0.0421

Residential 0.4524 0.277 0.00306 0.168Commercial 0.3348 0.211 -- 0.112Industrial 0.2076 0.0590 0.0429 0.0281Transportation

0.9756 0.0168 0 1.052

TOTAL 2.5524 0.5638 0.30596 1.4022

Figure 4. CO2 emissions for Broome County, NY based on

sector and fuel type.

Sector CO2NaturalGas (TCF)

CO2 CoalTCF)

CO2Petroleum(TCF)

ElectricGeneration

0.00277 0.00260 0.000420

Residential 0.00277 3.057 x 10-5

0.00168

Commercial 0.00210 -- 0.00112Industrial 0.000588 0.000428 0.000280Transportation

0.000168 0 0.0105

TOTAL 0.00841 0.00306 0.0140

Figure 5. NY Fuel

Natural Gas = 30%; Petroleum = 37%; Coal = 6%

Appendix IX: Economic Analysis

Data: Current Price of Natural Gas = $3.79 (Bloomberg, November 19,

2010)

Calculation of Possible Revenue:

Minimum = (Minimum TCF for Area) x $3,892,330,000/TCF

Maximum = (Maximum TCF for Area) x $3,892,330,000/TCF

Marcellus Shale:

54,000 square miles -> 151.2 TCF x $3,892,330,000/TCF =

$588,520,296,000

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-> 266 TCF x $3,892,330,000/TCF =

$2,942,601,480,000

95,000 square miles -> 266 TCF x $3,892,330,000/TCF =

$1,035,359,780,000

-> 1330 TCF x $3,892,330,000/TCF =

$5,176,798,900,000

Broome County:Minimum: 1.9796 TCF x $3,892,330,000/TCF = $7,705,256,468Maximum: 9.898 x $3,892,330,000/TCF = $38,526,282,340

NPV Calculation:Data and Assumptions:Sales Price = $3.89/mcfCost per Well = $3.5 MM

Tax = 5%Discount Rate = 10%

APPENDIX X: Chemicals used in Hydraulic Fracturing,Calculations and Assumptions

Acids

One of the principal chemicals used in Hydraulic Fracturing operations

is Hydrochloric Acid or a mixture of hydrochloric acid and acetic or

formic acid. EPA 816-R-04003.

The average amount of acid use is about 5,000 gallons (Arthur 2008

ALL Consulting). The principal use of acid is to increase treatment

distance, but it is also use for to clean the perforations of the cement

surrounding the well.

Breakers

The breakers help to degrade the fracturing fluid viscosity, which

enhances the post-fracturing fluid recovery. The most typical breakers

are acids, oxidizers, or enzymes. Some known constituents are

ammonium persulfate, ammonium sulfate, copper compounds,

ethylene glycol, and glycol ethers. (EPA 816-R-04003)

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Biocides.

The presence of bacteria in the fracturing fluid is detrimental to the

fracturing process as the bacteria secrete enzymes to breakdown the

gelling agent as part of their metabolic process. The degradation of the

gelling agent affects the viscosity of the fracturing fluid, resulting in a

poor fracturing performance. As a method to inhibit bacterial growth

biocides are use and mixed in the fluid. Most biocides are hazardous by

nature and contain polycyclic organic matter and polynuclear

hydrocarbons (PAH). The general dilute solution is composed of about

0.1 to 0.2 gallons per 1,000 gallons of water. (EPA 816-R-04003)

Friction Reducers

The most common friction reducers are latex polymers or copolymers

of acryl amides. The average concentration is about 0.25 to 2 pounds

per 1,000 gallons. (EPA 816-R-04003.)

Corrosion Inhibitors

With the corrosive agents that can attack steel, like acids, a corrosion

inhibitor is needed. Acetone is a common chemical used as corrosion

inhibitor. These chemicals are considered hazardous in their undiluted

form. The dilution concentration is of 1 gallon per 1,000 gallons. (EPA

816-R-04003.)

Proppants

The purpose of to bring structure to an open fracture and to increase

the permeability from the formation to the wellbore, in order to create

a pathway for the gas stream.

The most common proppant use in hydraulic fracturing is sand.

Different estimates of the amount of proppant used can be found, but

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the average used is a range between 10,000 and 20,000 gallons per

stage. A total from 11,000 to 25,000 pounds of proppant are placed in

the formation. (ALL Consulting 2008, and EPA 816-R-04003)

Amount of Chemicals Released in Broome County

Acid: (5,000 Gallons (acid) / 1 Well ) x 3,959 Wells= 19.796 MG

Biocides: (0.2 Gallons/1000 Gallons of Water) x (5x106 MG/1 Well) x3,959 Wells = 3.95 MG

Friction Reducer: (2 Gallons/1000 Gallons of water) x ( 5 x 106 G ofwater/1 Well) x 3,959 Wells = 39,59 MG

Corrosion Inhibitor: ( 1 Gallons/1000 Gallons of water) x ( 5 x 106 G ofwater/1 Well) x 3,959 Wells = 19.79 MG

APPENDIX XII: Greenhouse Gas Emissions from theMarcellus Debate

Figure 6. GHG Emissions (Howarth)

39

A preliminary estimate if methane leakage in unconventional gasoperations may increase the release of greenhouse gases. However,the author recognizes that the complete analysis has not beenundertaken.

The following is the opinion about this claiming from Terry Engelder,professor of the Pennsylvania State University. (Taken as a forwardedmessage from Lawrence Cathles, Cornell University to Sergio Mino)

Sergio,

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Here is the email and link from Engelder. Ive not looked at it closely.Hope it helps.Larry

From: Terry Engelder [mailto:[email protected]] Sent: Friday, April 30,

2010 12:51 PMTo: Deborah Cipolla-DennisCc: 'Michael ARTHUR';'Seamus McGraw'; 'Thomas Murphy'; Anthony R Ingraffea; Lawrence M

CathlesSubject: RE: Gas drilling yields a gusher of hogwash

Thank you for your interest, Deborah:

Question #1:

http://www.pressconnects.com/apps/pbcs.dll/article?

AID=/201003280000/VIEWPOINTS/3280320

My source is one of your colleagues at Cornell. The reason that I linked

Prof. Howarths report to a discussion of disingenuous arguments by

environmentalists in the Philadelphia Inquirer is that Prof. Howarths

entire argument is based on leaking gas (fugitive emissions). Gas is

metered at the well site and at various intermediate locations on its

way to market so that leaks can be located, detected, and fixed. As

new infrastructure is built it will contain far fewer leaks than the old

infrastructure which is gradually being replaced. Fix the leaks and

Prof. Howarths other argument about climate forcing by methane

becomes irrelevant. What is left is a fuel that has half the global

warming potential as coal (Hence the statement This is simply not the

case). In fact, the stabilization of methane in the atmosphere in the

last 15 years might well be a sign that the Russians (Kings of the leaky

pipelines) are getting their collective acts together and fixing there

leaks. Remember that in a capitalistic economy, leaky pipelines mean

lost profits so there is every incentive for fixing the leaks as mankind

moves forward (to say nothing about its positive impact on global

warming).

1
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Question #2:

Science knows very well that the carbon footprint of burning natural

gas is less than that for coal or petroleum. There is a very famous

paper in Science (the publication) that talks about the Stabilization

Wedges (see attached). Natural gas is a substitute for coal in electrical

generating plants. Furthermore, compressed gas can replace diesel

fuel for interstate truck traffic. Large fleets of city trucks and buses are

now run on compressed natural gas. Converting interstate truck traffic

to CNG would virtually eliminate the need to import middle eastern oil

(thereby eliminating the need for a large military presence in the

region). This would reduce our imbalance of trade and focus the

remaining cash for fuel back into the USA where more cash in

circulation will create jobs (This sounds like Presidents Reagan, Bush,

Clinton, Bush, and Obama and it is true).

Worried about how much gas is present? I attach the best estimate

for how much gas can be produced from the Marcellus. These are hard

figures with which few can argue. It may also surprise you to learn

that the combined total of all potentially recoverable gas in the USA

will allow decades of supply without having to rely on imported natural

gas.

As for the article that you attached by Mrs. Barth, it was not peered

reviewed. Mrs. Barths agenda may be revealed in what Mr. Barth

wrote in the blogger shouting match that followed my InquirerCommentary. Check it out.

http://www.philly.com/inquirer/opinion/20100428_Gas_drilling_yields_a

_gusher_of_hogwash.html

Hope this helps your understanding,

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Terry

Terry Engelder

Professor of Geosciences

Department of Geosciences

334 A Deike Building

The Pennsylvania State University

University Park, PA 16802

Phone: 814-865-3620

From: Deborah Cipolla-Dennis [mailto:[email protected]] Sent:

Thursday, April 29, 2010 7:44 PMTo:[email protected]: Gas

drilling yields a gusher of hogwash

Thank you for providing your email for questions.Can you please cite

your source for the following statements:one New York academic

recently wrote that exploiting Marcellus Shale gas is comparable to

burning coal in terms of greenhouse-gas emissions. This is simply not

the case. - To my knowledge there has not been published data on

the total carbon footprint of hydrofracking. If there is, can you point me

towards it? It is a gift to the people of Pennsylvania and the greatestopportunity they will ever have to move away from foreign oil and

toward a fuel with a smaller global-warming footprint. - What is the

basis of this statement? Natural gas is not a substitute for oil. It cannot

be used as a direct substitute and as far as I know, the amount of

natural gas in the Marcellus Shale will not be enough to migrate the US

from its dependency on foreign crude oil. Again, I dont think science

has proven what the carbon footprint will be so I think it is premature

to say it will have a smaller global-warming footprint. Additionally,

there is data available to show that the economic advantage for areas

experiencing a boom is short lived and is actually less than that of a

similar region that diversifies its core businesses and grows its

economy in a slower steadier rate. Please refer to to the report cited

in this newspaper article.

http://www.pressconnects.com/article/20100401/NEWS01/4010400/Ne

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mailto:[email protected]:[email protected]://www.pressconnects.com/article/20100401/NEWS01/4010400/New+report+shows+natural+gas+economic+impact+will+be+minimalmailto:[email protected]:[email protected]://www.pressconnects.com/article/20100401/NEWS01/4010400/New+report+shows+natural+gas+economic+impact+will+be+minimal


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w+report+shows+natural+gas+economic+impact+will+be+minimal

Thank you and I look forward to your reply. Sincerely,Deborah Cipolla-

Dennis

APPENDIX XII: Water Usage Data and Assumptions.

Source: United States of America. New York State Department of EnvironmentalConservation. Division of Mineral Resources. Draft Supplemental GenericEnvironmental Impact Statement on the Oil, Gas and Solution Mining RegulatoryProgram: Well Permit Issuance for Horizontal Drilling and High-volume HydraulicFracturing to Develop the Marcellus Shale and Other Low-permeability GasReservoirs, September 2009. Albany, NY: New York State, Dept. of EnvironmentalConservation, Division of Mineral Resources, Bureau of Oil and Gas Regulation, 2009.

The total water available for gas drilling for the following years is 30MGD.

Water Consumption per well: Five million gallons a day. This representsthe upper limit, and is taken as a conservative value. Source:"Hydraulic Fracturing | Hydraulic Fracturing | US EPA." EPA Office ofWater Home | Water | US EPA. Web. 24 Nov. 2010.

Maximum Wells: 3,569. Calculated assuming 70% of the land area ofBroome County (707 Square miles) is available for unconventional gasdevelopment, and a well cover 80 acres.

Total water requirements: (3,569) x (5 x106 MGD)= 19,796

Total available water from the Susquehanna River Basin (SRB): 882.5MGDTotal available water from Delaware River Basin (DRB): 8,736 MGDTotal available water: (882.5 + 8736) = 9,618.5 MGD

(19,796/8,736) = 2.27 Times the water available from DRB forhydraulic fracturing.

(19,796/882.5) = 22.43 Times the water available from SRB forhydraulic fracturing.

The total water available for DRB is assumed to be in the samaproportion of the water available in the SRB. 30 MGD x 10 = 300 MGD

Total water available for both basins: 30 MGD + 300 MGD = 330 MGD

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http://www.pressconnects.com/article/20100401/NEWS01/4010400/New+report+shows+natural+gas+economic+impact+will+be+minimalhttp://www.pressconnects.com/article/20100401/NEWS01/4010400/New+report+shows+natural+gas+economic+impact+will+be+minimal


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Thomas Mino Team 8 Course Project 2010

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Transcript of Thomas Mino Team 8 Course Project 2010