Natural Gas Drilling
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Notice of Public Hearing - Stone Energy Corporation
View Presentation Given by DRBC Staff at the February 24, 2010 Stone Energy Public Hearing (2 MB**)
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Extent of Marcellus Shale Formation in the Delaware River Basin |
Background
Much of the new drilling interest taking place in northeastern Pennsylvania and southern New York is targeted at reaching the natural gas found in the Marcellus Shale formation, which underlies about 36 percent of the Delaware River Basin. Because Marcellus Shale is considered a tight geologic formation, natural gas deposits were not previously thought to be practically and economically mineable using traditional techniques. New horizontal drilling and extraction methods, coupled with higher energy costs, have given energy companies reason to take a new interest in mining the natural gas deposits within the Marcellus Shale.
However, these new extraction methods require large amounts of fresh water to fracture the formation to release the natural gas. A significant amount of water used in the extraction process is recovered, but this "frac water" includes natural gas and chemicals added to facilitate the extraction process, as well as brine and other contaminants released from the formation.
Why Is The DRBC Involved?
The DRBC is a federal-interstate compact government agency that was formed by concurrent legislation enacted in 1961 by the United States and the four basin states (Pennsylvania, New York, New Jersey, and Delaware). Its five members include the basin state governors and a federal government representative appointed by the president. The commission has legal authority over both water quality and water quantity-related issues throughout the basin.
In connection with natural gas drilling, the commission has identified three major areas of concern:
DRBC Eliminates Review Thresholds for Gas Extraction Projects in Shale Formations in Delaware Basin's Special Protection Waters
DRBC Executive Director Carol R. Collier on May 19, 2009 announced that she has issued a determination notifying natural gas extraction project sponsors that they may not commence any natural gas extraction project located in shale formations within the drainage area of the basin's Special Protection Waters without first applying for and obtaining commission approval.
"This determination explains DRBC regulatory requirements on an interim basis and asserts commission review over all aspects of natural gas extraction projects in shale formations within the drainage area of the basin's Special Protection Waters, regardless of the amount of water withdrawn or the capacity of domestic sewage treatment facilities accepting fracking wastewater," Collier said. "The commissioners intend to adopt regulations pertaining to the subject matter contained in this determination after public notice and a full opportunity for public comment, but this rulemaking process can be lengthy. In the meantime, DRBC will apply this determination in combination with its existing regulations."
In taking this action, Collier considered and determined that as a result of water withdrawals, wastewater disposal, and other activities, natural gas extraction projects in shale formations may individually or cumulatively affect the water quality of Special Protection Waters by altering their physical, biological, chemical or hydrological characteristics. This finding is in accordance with Section 2.3.5 B.18 of the commission’s Rules of Practice and Procedure, which provide that any project "that the Executive Director may specially direct by notice to the project sponsor or land owner as having a potential substantial water quality impact on waters classified as Special Protection Waters" may be required to undergo review.
"The intent behind this executive director determination is to provide directional signals, not put up roadblocks," Collier said. "“Each of these activities, if not properly performed, may cause adverse environmental effects on water resources. The bottom line for the DRBC is to ensure that proper environmental controls are provided to safeguard our basin's water resources that are used by nearly 15 million people."
Most of the shale formations that may be subject to new horizontal drilling and hydraulic fracturing techniques requiring large volumes of water in the basin are located within the drainage area to DRBC's designated Special Protection Waters (SPW). The commission's SPW program is designed to prevent degradation in streams and rivers considered to have exceptionally high scenic, recreational, ecological, and/or water supply values through stricter control of wastewater discharges, non-point pollution control, and reporting requirements. Coverage of the DRBC's SPW anti-degradation regulations includes the 197-mile non-tidal Delaware River from Hancock, N.Y. south to Trenton, N.J. and the land draining to this stretch.
Under this determination, a natural gas extraction project encompasses the drilling pad upon which a well intended for eventual production is located, all accompanying facilities and related activities, and all locations of water withdrawals used or to be used to supply water to the project. Wells intended solely for exploratory purposes are not covered by this determination. An exploratory well is one that the project sponsor intends to plug and cap at the conclusion of exploratory activities without use for production or fracking. Exploratory wells are subject to state regulation.
"To determine whether the Rules of Practice and Procedure require DRBC review of any projects falling outside this determination, we continue to recommend that any company proposing natural gas extraction activities anywhere in the basin contact DRBC staff to schedule a pre-application meeting," Collier said.
The DRBC recognizes that each natural gas extraction project also will be subject to the review of the environmental agency of the state in which the project is located and, in some cases, subject to federal agency review. The commission intends to coordinate with and, where feasible, to utilize the review process and approvals of the applicable state or federal agency to minimize duplication of effort and redundant requirements imposed on project sponsors.
DRBC Executive Director Determination - May 19, 2009 (67 KB*)
Map Showing DRBC Special Protection Waters (SPW), SPW Drainage Area, and Marcellus Shale Formation (508 KB*)
Map: Extent of Marcellus Shale Formation in the Delaware River Basin (319 KB*)
DRBC Eliminates Review Thresholds for Gas Extraction Projects in Delaware Basin's Special Protection Waters (May 19, 2009 News Release)
DRBC Notifies Company That Water Used For Developing Natural Gas Wells In Delaware River Basin Needs Approval (June 9, 2008 News Release)
Link to New York State Department of Environmental Conservation
Link to Pennsylvania Department of Environmental Protection
Once an application for a natural gas well drilling project is submitted, commission staff will review the proposal and may require additional information. DRBC staff then will determine whether the project complies with the commission's rules and regulations and make a recommendation to the five commissioners. The decision to approve or deny a docket is made by majority vote of the commissioners at a duly noticed public hearing, not by the DRBC staff.
Most Recent Notice of Applications Received (NAR)
Project Application Status Page
Project Review Applications Page
Chesapeake Appalachia, LLC Withdraws Cutrone Surface Water Application (October 20, 2009)
The commission does not get involved in the private negotiations taking place between natural gas drilling companies and private property owners. However, property owners are advised to seek appropriate technical and legal representation to ensure that they obtain adequate protection of their property.
Questions? |
Last Updated: February 25, 2010
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