Discussion areas

• My background (Deep River, UNC, US Senate Staff, Highly Regulated Entrepreneur)

• Shale “plays” in the nation and North Carolina • NCGA and the NC Mining and Energy

Commission• Drill down on water contamination• Conclusion, opinion and… • Questions?

Shale Gas Extraction Process

Horizontal drilling can extend up to 10,000 feet laterally

Image Source: Total brochure

Information and data to be submitted in association with applications for permits to conduct oil and gas exploration and development activities using horizontal drilling and hydraulic fracturing treatments, which may include submission of hydrogeological investigations and identification of mechanisms to prevent and diagnose sources of groundwater contamination in the area of drilling sites. In formulating these requirements, the Commission shall consider (i) how North Carolina's geology differs from other states where oil and gas exploration and development activities using horizontal drilling and hydraulic fracturing are common and (ii) the routes of possible groundwater contamination resulting from these activities and the potential role of vertical geological structures such as dikes or faults as conduits for groundwater contamination

GEO

Collection of baseline data, including groundwater, surface water and air quality in areas where oil and gas exploration and development activities are proposed. With regard to rules applicable to baseline data for groundwater and surface water, the Commission shall adopt rules that, at a minimum, establish standards to satisfy the pre-drilling testing requirement established under G.S. 113-421(a), including contaminants for which an operator or developer must test and necessary qualifications for persons conducting such tests.

Baseline

Disclosure of chemicals and constituents used in oil and gas exploration, drilling, and production, including hydraulic fracturing fluids, to State regulatory agencies and to local government emergency response officials, and, with the exception of those items constituting trade secrets, as defined in G.S. 66-152(3), and that are designated as confidential or as a trade secret under G.S. 132-1.2, requirements for disclosure of those chemicals and constituents to the public.

WHAT

To regulate and, if necessary in its judgment for the protection of unique environmental values, to prohibit the location of wells in the interest of protecting the quality of the water, air, soil, or any other environmental resource against injury, damage, or impairment.

WHERE

Appropriate siting standards for wells and other gas production infrastructure, such as storage pits and tanks, including appropriate setback requirements and identification of areas, such as floodplains, where oil and gas exploration and production activities should be prohibited. Siting standards adopted shall be consistent with any applicable water quality standards adopted by the EMC or by local governments pursuant to water quality statutes, including standards for development in water supply watersheds.

WHERE 2

Prohibitions on use of certain chemicals and constituents in hydraulic fracturing fluids, particularly diesel fuel.

WHAT 2

Drilldown > Water Contamination

Two key rules called for by statute:

1) Chemical Disclosure and Trade Secrets

2) Baseline Testing and presumptive liability

(Chemical Disclosure Rule is out Baseline is pending for next week)

Texas has 56,000 groundwater monitoring wells!

Ohio

Texas16,000 H-Fracks1993 - 2008

Testimony to NC Mining and Energy Commission re: Groundwater contamination

• EDF: Not a priority for them. Not aware of proven cases.

• USGWPC: Could not identify a single case• RFF: Does not appear in their risk matrix. • Former Gov. of Colorado Ritter (D): Not a

concern, move to the real challenges.• EPA: Dropped “Range,” retracted “Pavillion”• Rob Jackson at Duke: I found methane.

Information Required to be Disclosed PER WELL to DENR and FracFocus

The operator nameBeginning and ending date of treatment CountyAPI numberWell name and numberLongitude and latitude of the wellCertified directional surveyMeasured depth and true vertical depthTotal volume of water used in treatment including total volume of reused water,Volume of base fluid if something different than waterSource of water or fluidTrade name of each additive with a brief descriptionEach Chemical Ingredient and their CAS number Actual or maximum concentration CAS number for each chemical ingredient listed.

Not To Be DisclosedIncidental trace amounts\contaminationClaimed as Trade Secrets

Trade Secret Caveats:

Chemical family must be named.

DENR Director and MEC keep the trade secret information\CAS #

Trade Secrets challenged by anyone with an interest in real property adversely affected. Must be Revealed to Health Pros and First Responders immediately.

Arguably the strongest of 34 Oil and Gas states

Baldwin Hills Frack FieldLos Angeles, California

Next Up: Baseline Testing• Presumptive liability for contamination• 5000 foot testing range from pad• Pre- Post-and Longer Period testing for• Potential 48 wells per test

Major Ions: Alkalinity, Calcium, Chloride, Magnesium, Potassium, Sodium, Sulfate

Minor & Trace Elements: Arsenic, Barium, Boron, Bromide, Chromium, Iron, Manganese, Selenium, Uranium

Water Quality Parameters: pH, Specific Conductance, Total Dissolved Solids (TDS), Turbidity

Organic Chemicals: Benzene, Toluene, Ethylbenzene, Xylene (BTEX), Diesel Range Organics (DRO), Dissolved Methane, Gasoline Range Organics (GRO), & Total Petroleum, Hydrocarbons or oil and grease (HEM)

Thank you!

Please contact me with questions or concerns:

Office direct: 919-334-9105

Public email: mec.commissioner.howard@gmail.com

A Modest Proposal: LOCA-FUEL!

Decarbonize UNC by 50% using local shale gas