Rising to the Challenges in the

Marcellus

Kathryn Z. Klaber
Marcellus Shale Coalition

November 2010
Marcellus Shale Coalition

About the MSC

130+ members and growing
Nearly all PA Marcellus rigs now
operated by MSC members
Midstream integral

Our Focus
Long-term development of resource
Protecting the environment and
responsible use of water resources
Addressing landowner, government
and public issues
Benefits to PA/WV/NY and the
nation’s future
Challenges
Well Permitting/Construction

Water Sourcing

Hydraulic Fracturing

Air Quality

Site Reclamation
Well Permitting/Construction

 Increase in drilling permit fees

allowed state regulator to
increase staff, inspections
 Industry supportive of revised
well casing and design
standards
 More stringent construction
standards to mitigate gas migration
 New wastewater reporting
requirements
 Disclosure of HF fluids on well-by-
well bases
 Emergency contact numbers on
site
Water Sourcing

General approximation for illustrative purposes

Susquehanna River Basin total water demand
According to the Gas Technology Institute
Energy Source Water Requirements

Gallons per million BTU

Range Mid-point
Deep shale natural gas 0.60 – 5.80 3

Nuclear 8 – 14 11

Conventional oil 8 – 20 14

Coal 13 – 32 23

Fuel ethanol from corn 2,510 – 29,100 15,800

Biodiesel from soy 14,000 – 75,000 44,500

Source: Ground Water Protection Council, U.S. Department of Energy

Hydraulic Fracturing

 30 State and federal agencies monitor hydraulic fracturing

 PA casing and cementing regulations among toughest in the U.S.

 1,000’ rebuttable presumption rule; DEP aggressively investigates all claims

 DEP issued only 80 orders to repair or replace water supplies impacted by drilling
in past 15 years; 32,000 oil and gas wells drilled; 0.25% incident rate; all impacted
water supplies replaced by drillers

 Center for Rural PA 2009 study – >40% of PA’s 1.2 million private water wells and
springs do not meet safe drinking water standards; common causes of
contamination are septic systems, agricultural practices, poor well construction

The Fact: There have been no confirmed cases of negative

groundwater impacts from hydraulic fracturing

And the Reality: We need to keep it that way!

Air Quality

 Gas Processing Plants

 Plan approval/air permit
 Compressors
 Covered by GP-5
 Fugitive emissions
 Roads
 Compressor stations
 Flares
 Temporary sources
 Source Aggregation
 White paper
Site Reclamation

 Landowner consultation

 Education – drilling rig

and truck traffic is
temporary

 Working relationship with

Conservation and
Sportsmen’s groups
Active Engagement on Key Issues

 Smart Regulations  Legislative Modernization

 Water Sourcing
 Coal/Gas Coordination
 Waste Management
 Well and Surface Use  Municipal Regulations
Permitting  Fiscal
 Air Quality  Fair Pooling
 Pipeline
 Delaware River Basin
Commission

 Safety Best Practices

 Technical Best Practices
 Workforce Excellence
 Outreach and Public
Relations
Thank you!
Marcellus Shale
Coalition

www.marcelluscoalition.org