University of Colorado Law SchoolJune 6, 2014

Mark K. BolingPresident

EXPLORING NEW FRAMEWORKS OF

REGULATION: NEGOTIATING MODEL

REGULATIONS

• The Economy

• The Environment

• Energy Security

Hydraulic Fracturing Debate

Public Distrust and Fear

Natural GasIndustry

CertainEnvironmental

Activists/Groups

PoliticsGuidingPolicy

THEPERFECTSTORM

Refocusing the Debate

• Dial Down the Rhetoric

• Identify the Real Obstacles to Responsible Development of this Resource

• Develop Workable Solutions to Overcome these Obstacles

3

Development Considerations

4

Surface Considerations

Subsurface Considerations

Surface Considerations

5

Air Emissions• VOC’s/Methane• Criteria Pollutants• Hazardous Air Pollutants

Water Impacts• Water Use• Water Handling• Water Reuse & Disposal

Surface Impact• Drilling Locations• Truck Traffic & Road Damage• Infrastructure

Subsurface Considerations

6

Protecting Underground Water Resources

Frac Fluid Disclosure

Protecting Underground Water Resources

7

Well IntegrityIs the Key!

Well Integrity

8

Well Construction Standards2Evaluate Stratigraphic Confinement1

Evaluate Mechanical Integrity of Well3 Monitor Frac Job & Producing Well4

FRESH WATER AQUIFER ZONE

SHALLOW PRODUCING ZONE

CONDUCTOR PIPE

SURFACE CASING

PRODUCTION CASING

TARGET PRODUCING ZONE

GOOD MECHANICAL INTEGRITY

CEMENT CHANNELING

PRESSURE BUILDS UP

CONDUCTOR PIPE

SURFACE CASING

PRODUCTION CASING

FRESH WATER AQUIFER ZONE

SHALLOW PRODUCING ZONE

TARGET PRODUCING ZONE

CA

SIN

G

CE

ME

NT

FO

RM

AT

ION

Negotiating Model Regulations – Other Examples

• Frac Fluid Disclosure

• VOC/Methane Emissions

• Wastewater Treatment

• Water Disposal/Triggered Seismicity

11

PERCEIVEDRISK

ACTUALRISKRISK

INFORMATIONGAP

Smart Regulation = Effective Risk Management

12

ACTUALRISK

PERCEIVEDRISK

COLLABORATIONAND RISK

COMMUNICATION

SMARTREGULATION

PERCEIVEDRISK

ACTUALRISK

PUBLIC TRUST& ACCEPTANCE

ACTUALRISK

PERCEIVEDRISK

SMARTREGULATION

PERCEIVEDRISK

ASSESSEDRISK

COLLABORATION AND RISK

COMMUNICATION

PUBLIC TRUST& ACCEPTANCE

University of Colorado Law School

June 6, 2014

Mark K. Boling

President

EXPLORING NEW FRAMEWORKS OF

REGULATION: NEGOTIATING MODEL

REGULATIONS