Alliance for the Chesapeake Bay

Citizens Advisory Committee

March 5, 2011

EPA and the Marcellus Shale

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Unconventional oil & gas development is conducted in a manner that is protective of human health and the environment

GOAL

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Shale Gas Development in the Mid-Atlantic States

Regional Conditions

• Rapid increase in development activity in one of world’s largest gas plays

• Densely populated areas• Hydrologic conditions• Formation containing uranium• Produced water rich in total dissolved solids

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Shale Gas Development Challenges

• Water availability

• Ensuring adequate treatment of flowback & produced waters

• Constructing infrastructure without adversely impacting streams and rivers

• Maintaining in-stream flows to provide assimilative capacity for permitted discharges, drinking water

• Maintaining groundwater resources

• Ensuring protective well casing to isolate underground sources of drinking water and prevent gas migration

• Abandoned oil & gas production wells 5

Shale Gas Development Challenges

• Notification for every release of reportable quantity

• Effective response to emergencies

• Management of air emissions in an Ozone Transport Region

• Protective handling of Technically Enhanced Naturally Occurring Radioactive Materials

• Frac water storage ponds

(construction, solids management, closure)

• Erosion & sediment control (stormwater discharges)

• Treatment & disposal of Total Dissolved Solids (salts) 6

EPA Efforts Underway

• Supporting States & Interstates• Research • Pre-Siting and Development• Operation of Injection Wells • Management of Air Emissions• Flowback and Produced Water Treatment & Disposal• Enforcement• Compliance Assistance• Other

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EPA Efforts Underway• National Hydraulic Fracturing Research Study

(EPA Office of Research and Development)– Initial results in 2012; final report in 2014– More information at:

http://water.epa.gov/type/groundwater/uic/class2/hydraulicfracturing/index.cfm

• Wetlands construction permits review & compliance investigations (Region 3)

• Working with National Park Service on Environmental Impact Statement (Region 3)

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EPA Efforts UnderwayManagement of Air Emissions

• Review major air preconstruction permits for subject facilities

• Rulemaking & policy development– Clean Air Act (NSPS & MACT)

• Collect methane, carbon dioxide, and nitrous oxide data through Greenhouse Gas Reporting Program

http://www.epa.gov/climatechange/emissions/subpart/w.html

• Encourage emissions reductions through Natural Gas Star Program

http://www.epa.gov/gasstar/ 9

EPA Efforts UnderwayFlowback and Produced Water Treatment & Disposal

• Pretreatment programs for publicly owned treatment works (POTWs)– Pretreatment training for POTW operators on

acceptance of oil & gas wastes (Region 3)– Qs&As for NPDES permit writers issued by EPA

Headquarters 3/16/11 and available at http://cfpub.epa.gov/npdes/hydrofracturing.cfm

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EPA Efforts UnderwayFlowback and Produced Water Treatment & Disposal

(Region 3)

• Considering Effluent Limit Guideline for Shale Gas Extraction

• Program Oversight– EPA requests for characterization of discharges & impacts

– PADEP requests to operators for monitoring at public drinking water systems and WWTP discharge points

– Determine if discharge permit modifications are needed

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State/Interstate Efforts Underway

• Updated oil & gas regulations for well construction in Pennsylvania

• DRBC gas drilling regulations for water use, site construction & operation, and wastewater management

• SRBC remote monitoring network

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DRBC Gas Drilling Regulations

• Comment period closed 4/15/11• EPA comments

– Ensure backstops for protection of groundwater– Ensure awareness of independent federal requirements

and those for which EPA maintains primacy– Full disclosure of chemical data prior to operation– Consistent requirements regardless of “high volume”

classification

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http://www.srbc.net/programs/remotenetwork.htm

EPA Efforts Underway• Underground Injection Control permits for waste

disposal Issued by authorized states with EPA oversight &

technical assistance Issued by EPA in “direct implementation” states Inspection of disposal of shale gas development

waste via wells• National Energy Extraction Initiative• Emergency and Accident Prevention and Response

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Managing RisksCompliance Assistance

• Underground Injection Control – Unpermitted injection of wastes– Injection of wastes not in compliance with permit

• Reporting of releases– National Response Center 1-800-424-8802

• Clean Air Act general duty clause

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Managing RisksCompliance Assistance

• Unpermitted discharges (spills) to U.S. waters• Discharge permits for treatment of oil & gas

wastewater• Pass-through or interference at POTWs• Construction

– Road crossings, pipeline crossings, well pads, compressor stations

– Stream diversions 17

Hydraulic Fracturing Flowback and Produced Water Destinations

• Underground Injection • Recycling• Evaporation/crystallization – centralized• Evaporation/crystallization – on-site

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Managing RisksProtecting Human Health

• Gas migration• Emergency response• Air releases & other routes of exposure

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Leadership in the Industry

• What will become standard practices for the industry? – Waste minimization

– Water conservation

– Baseline groundwater testing

– Baseline surface water quality monitoring

– Community relations (noise, road impacts, etc.)

– Monitoring ponds and other potential sources of discharges during storm events

– Responsible site reclamation20

Looking Forward & Gearing Up

• Providing UIC permitting assistance

• Increased communication with industry & cross-program communication

• Increased staffing to address new level of oil & gas activity, especially in Pennsylvania & West Virginia

• Looking forward to results of Hydraulic Fracturing Research Study

• Environmental sustainability21