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

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-bywell 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 Nuclear Conventional oil 0.60 – 5.80 8 – 14 8 – 20 3 11 14

Fuel ethanol from corn Biodiesel from soy

13 – 32
2,510 – 29,100 14,000 – 75,000

15,800 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
 Water Sourcing  Waste Management  Well and Surface Use Permitting  Air Quality  Pipeline  Delaware River Basin Commission

 Legislative Modernization
    Coal/Gas Coordination Municipal Regulations Fiscal Fair Pooling

   

Safety Best Practices Technical Best Practices Workforce Excellence Outreach and Public Relations

Thank you!
Marcellus Shale Coalition


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