Shale in Southwest Pennsylvania

heehawultraMechanics

Feb 22, 2014 (3 years and 1 month ago)

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The Opportunity and Impacts of Natural Gas from
Shale in Southwest Pennsylvania



Jared
Cohon

President Emeritus

University Professor of Civil and Environmental Engineering and
Engineering and Public Policy

From “The Hidden Costs of Energy,” National Research Council, 2010

SHALE PLAYS IN THE LOWER 48 STATES

3

TOP
5 SHALE
PLAYS
IN THE U.S. (USGS)

Shale Formation

Location

Shale Gas
Resources (Tcf)

Marcellus

PA, MD, NY, OH,
WV, VA

84.2

Haynesville

LA, TX

65.7

Eagle Ford

TX

50.2

Shublik

AK

38.4

Utica

PA, OH

37.3

4

5

UNCONVENTIONAL OIL AND GAS PERMITS ISSUED,
2001
-
2012

County

2001
-
2012

2010

2011

2012

Allegheny

63

2

9

43

Armstrong

338

66

127

61

Beaver

98

5

29

55

Butler

480

92

192

118

Fayette

416

83

103

74

Greene

1,239

228

423

281

Indiana

110

34

26

15

Lawrence

69

1

14

54

Washington

1,507

276

374

430

Westmoreland

527

92

158

115











10
-
County Total

4,847

879

1,455

1,246

Pennsylvania Total

14,710

3,691

4,618

3,397

SWPA % of State Total

32.95%

23.81%

31.51%

36.68%

6

7

In adopting
the final report, Roundtable members endorse
that
it was
built on
constructive dialogue
, was informed by sound research and
information, and
that the included recommendations
merit
consideration
by policymakers at all levels as they
seek to
effectively
and safely manage unconventional
oil and
gas development
.


While
the Roundtable has achieved general
agreement on
the report’s
value in informing decision
makers, individual
Roundtable members
may not agree
on the
details of every recommendation. The final
report reflects
the careful deliberations and findings of
the Shale
Gas
Roundtable; it does not necessarily
reflect the
views of the members’
affiliated
organizations or
of the Institute of Politics.

8

ROUNDTABLE SUMMARY


26 diverse and multi
-
sector members


Focused on 10 Southwestern Pennsylvania counties with
statewide and national implications


2 year research, benchmarking, stakeholder outreach, and
discussion process


Recommendations formed through extensive dialogue and
consensus building


8 core recommendations and many additional
recommendations in the areas of water management,
unitization and conservation, midstream development, and
research

9

MEMBERSHIP LISTING


William
Bates, Eat’n
Park Hospitality
Group


Cynthia
Carrow, Western
Pennsylvania
Conservancy


Jared
Cohon, Carnegie
Mellon
University,
Cochair


Kevin
Colosimo, Burleson


Caren
Glotfelty, The
Heinz Endowments


Tori
Haring
-
Smith, Washington
& Jefferson
College


Patrick
Henderson, Pennsylvania
Office of
the Governor


Norman
Hipps, Saint
Vincent College


Scott
Izzo, Richard
King Mellon
Foundation


Nels
Johnson, The
Nature
Conservancy


George
Jugovic
Jr., PennFuture


Jeffrey
Kupfer, Chevron


Grant
Oliphant, The
Pittsburgh Foundation


Barry
Osborne, Range
Resources Corporation


Scott
Perry, PA DEP


Andrew
Place, EQT
Corporation


Phil
Poux, Ducks Unlimited


James
Roddey, ParenteBeard, Cochair


Rod
Ruddock, Indiana
County


Kurt
Salvatori, CONSOL Energy


Edith
Shapira, Psychiatrist/Community
Volunteer


Pam
Snyder, PA
House of Representatives


Richard
Taylor, Imbue
Technology
Solutions


William
Thompson, Westmoreland
-
Fayette
Workforce Investment
Board


Elder
Vogel, Pennsylvania
State Senate


Davitt
Woodwell, Pennsylvania
Environmental Council

10

BACKGROUND & PROCESS, CONT.

“Our central question was this: As a region, how can we
most effectively and responsibly safeguard our
communities and environment, grow our economy, and
manage unconventional oil and gas development? Our
members recognized the value judgments and trade
-
offs inherent in attempting to answer this question and
the balancing act that would be necessary to make
progress.”

-
Cochair Letter, Final Report

11

“GETTING IT RIGHT” FRAMEWORK

2012
-
13


“The
economic benefits of unconventional resource
development are
often described as worthwhile as long as
that
development is
done right. Roundtable members agree,
but
‘done right’
often is not well
-
defined
.”


Roundtable ingredients for a “getting it right” framework:


a
strong, adaptive legal and regulatory system with
adequate
implementation
staff and
resources


aggressive
development and industry adoption of best
management
practices
and other operational performance
standards


investments
in technological and operational
innovation


carefully
targeted and balanced research to
inform the
continual
improvement of statutes,
regulations, best
management practices,
standards, and
technology

12

“GETTING IT RIGHT” FRAMEWORK, CONT.


If Pennsylvania and its surrounding states pursue
excellence in
these four areas, the Appalachian Basin could serve as
a national
model for getting unconventional upstream,
midstream, and
downstream development right.


Specifically
,
the Roundtable
believes that Pennsylvania could best
implement this
framework by aiming progress at three interrelated
goals:



Minimizing
the acute and cumulative impacts of oil
and gas
activity on the
environment, public health, and
local communities


Minimizing
surface disturbance from oil and gas activity
and maximizing
the efficiency of resource recovery and
transport


Enhancing
the regional use of natural gas and
supporting opportunities
for
regional economic growth based on
the full
natural gas value chain

13

RECOMMENDATIONS DEVELOPMENT


Within this framework and these goals, the Roundtable
selected
a small number of
focus areas:


Policy
-
relevant
research


Conservation
and
unitization


Water management


Midstream
development (pipelines and related infrastructure
)


In addition to these 4 areas, the Roundtable also made 8 core,
overarching recommendations

14

CORE RECOMMENDATIONS


The Commonwealth of Pennsylvania
should:


Increase investments
in improving the accuracy,
functionality, and
transparency of its oil and gas data
infrastructure


Develop
regulatory
staffing parameters
and oil and gas annual
reports


Restructure
the Oil
and Gas
Technical Advisory
Board


Continue
to regularly
evaluate the
ability of existing budget support
and permit
fees to support
oil and gas
regulation


Participate
in regular, comprehensive STRONGER reviews

15

CORE RECOMMENDATIONS, CONT.


The
federal government, state government, and
stakeholder
groups
should support efforts to increase
balanced research
on and rigorous monitoring of the
possible impacts
of
unconventional oil and gas
development


Government, industry, and regional universities
should
support
NETL as the premier national unconventional
oil and
gas technology research hub and, through NETL,
continue to
advance technology and operational
innovations


DEP should strengthen engagement with and support
of
various
cross
-
sector and industry efforts to develop
Best
Management Practices

16

MODERNIZATION OF THE

OIL & GAS CONSERVATION LAW


Balanced proposal for the first Conservation Law update since
1961 so that it:


Limits surface disturbance and well pad density


R
emoves different conservation rules for different shale layers


Increases the efficiency of natural gas extraction


A
ccounts for modern technology and approaches


DEP would be the primary implementing agency for the
updated law

17

WATER MANAGEMENT


Detailed recommendations in 9 categories:


Water sourcing


Hydraulic fracturing chemicals


Erosion and sedimentation


Impoundments and containers


Vehicle traffic and water transport


Wastewater treatment and disposal


Groundwater protection


Water
-
related violations


Regional water management

18

MIDSTREAM


THE NATURAL
GAS PRODUCTION,
TRANSMISSION, AND DISTRIBUTION
SYSTEM

19

MIDSTREAM RECOMMENDATIONS


Crafting legislative and regulatory provisions that,
in the
public interest, encourage the efficient
development of
intrastate midstream
infrastructure


Creating and leveraging opportunities for
enhanced
communication
between midstream operators
and other
key
stakeholders


Ensuring the availability of the necessary
expertise and
resources for state midstream permitting,
planning, and
inspection agencies

20

MIDSTREAM RECOMMENDATIONS, CONT
.


Maintaining the protective adequacy of pipeline
safety
regulations
, especially as larger volume, higher
pressure
gathering
and transmission systems are being
constructed


Minimizing and avoiding surface disturbance, forest
fragmentation, and
other impacts on sensitive

ecological areas


Monitoring and responding to the implications
of
cumulative
pipeline placement decisions on the
needs of
communities and citizens, on the potential for
Pennsylvania
consumers
to use gas produced within
the state’s
borders,
and on the future use and value of land

21

Founding Members


Chevron


Clean Air Task Force


CONSOL Energy


Environmental Defense Fund


EQT Corporation


Group Against Smog and
Pollution (GASP
)


Heinz
Endowments


Citizens
for Pennsylvania’s
Future (PennFuture)


Pennsylvania Environmental
Council


Shell


William Penn
Foundation

22

Board of Directors


Armond Cohen
, Executive Director,

Clean
Air Task
Force


Jared Cohon
, President
Emeritus of
Carnegie Mellon
University


Nicholas Deluliis
, President of

CONSOL Energy


Paul Goodfellow
, Vice President,

U
.S. Unconventionals,
Shell


Paul King
, President, Pennsylvania
Environmental
Council


Fred Krupp
, President, Environmental
Defense
Fund


Jane Long
, Principal Associate
Director
/Fellow, Lawrence Livermore
National Laboratory (retired
)


Nigel Hearne
,
President,

Chevron Appalachia


Paul O’Neill
, former Secretary of the

U
.S. Treasury Department and former

CEO
of
Alcoa


David Porges
, President and
CEO


of
EQT Corporation


Robert Vagt
, President,

The
Heinz
Endowments


Christine Todd Whitman
, former
Administrator of the U.S. Environmental
Protection Agency and former Governor

of
New
Jersey

23

Groundwater
Protection Standards


Zero discharge of wastewater until
adoption of a treatment standard.


Wastewater recycling



>
90%.


Closed loop containment of drilling
fluids.


D
ouble
-
lined
impoundments
with
leak
detection
.


Pad specific
Area of
Review and risk
analysis
.



Groundwater
monitoring


pre and
post
operation.


Casing and cement
standards.


D
isclosure
of well stimulation fluids.


Well pad
design

minimizing
risk
to
water sources.


Spill response and public notification
plans.


24

Regional Air and GHG Standards


Removal of
hydrocarbons
from flowback and produced water before storage.


Reduced Emissions Completions


with exceptions
.


Flaring
requirements


98% destruction
efficiency.


E
missions
standards for:


diesel drilling rig
engines


frac

pump engines


compressor engines


on
-
road truck
engines


Condensate tank emissions control.


Reciprocating compressor and pneumatic controller emissions reductions.

25