Gas flaring could be eliminated in most cases under proposed regulations. Photo courtesy of GreenPacks.

Some very exciting news just came out of the EPA.   In Ken Ward Jr.’s blog, Sustained Outrage, there is a July 28 post that informs us that the EPA just released Proposed Amendments to Air Regulations for the Oil and Natural Gas Industry (ONG).  An 8-page  Fact Sheet on the document is available on the EPA website.   Generally, the proposed changes fall into one of four categories: reducing volatile organic compound (VOC) emissions, reducing sulfur dioxide emissions, revising the air toxics standards (to reduce cancer risk and other ill health impacts) from oil and natural gas production and revising air toxic standards to reduce risk of health impacts from natural gas transmission and storage.   The EPA will accept public comment for 60 days after publication in the Federal Register.  Final action must be taken by the EPA by Feb. 28, 2012.

Here’s the very distilled recap :

REDUCING VOC EMISSIONS During the flowback stage of well completion, fracturing fluids, high-salinity water and gas come to the surface at a high velocity and volume.  Flaring is employed to burn off the gas during this gushing phase until the majority of the liquid and solid contaminants have been forced out by the pressures generated by the fracking process, the gas flows more purely, and is then collected and treated.

Much methane is lost during flowback and flaring, and other VOCs and hazardous air pollutants (HAPs) such as benzene, ethylbenzene and n-hexane are also released.  Raw natural gas is primarily composed of methane, a VOC and greenhouse gas which is 20 times as potent in greenhouse effect as carbon dioxide. Oil and natural gas production accounts for nearly 40% of all US methane emissions. VOCs contribute to the formation of ground-level ozone (smog).

The green completion process, also known as Reduced Emissions Completions, is a technology which captures gas which would otherwise be lost during well completion and puts it into the production line so that it can be treated and sold.

Interestingly, employing the green emission technology results in sizable savings to the natural gas industry.   The EPA estimates the net savings to industry through application of the proposed rule would be nearly $30 million annually.  (One seriously wonders why it takes a federal law to force an industry to employ technology that not only raises net revenue, but also reduces public health risks.)

EPA estimates that the use of green completion technology will reduce VOC emissions from hydraulic fracturing by almost 95%, methane being one of the VOCs.  VOCs across the ONG industry are expected to fall by nearly 25% if the proposals are implemented.  Wyoming and Colorado already require green completions.

Other equipment proposals: 1)Centrifugal compressors would have to be equipped with dry seal systems.  Reciprocating compressors would have to replace rod systems every 26,000 hours.  2)  The proposed regulations would require that new or replaced pneumatic controllers be driven by a non-gas power source.  3) Condensate tanks which handle a certain volume of condensate or crude oil must reduce VOC emissions by 95%.  4) Natural gas processing plants must strengthen leak detection an repair.

SULPHUR DIOXIDE Stronger source performance standards for sulfur dioxide would be required for plants processing gas with the highest sulfur dioxide content.  (Sulphur dioxide standards were issued in 1985.)

REDUCING CANCER RISK/HEALTH IMPACTS (for both ONG production and natural gas transmission and storage) All large dehydrators would have to reduce emissions of air toxics (such as benzene) by 95%.  Emissions standards would be established for small dehydrators at major sources.  The proposed regulations are expected to reduce emissions of air toxics by 30%.

BACKGROUND The Clean Air Act (CAA) requires a review every 8 years for  new source performance standards (NSPS) for industries that contribute to air pollution which endangers public health.  The existing NSPD for VOCs were issued in 1985.  You do the math. A similar story can be told about air toxics standards.  The CAA requires a one-time review after a standard is issued to find out what risks remain and whether or not more protective standards are needed.  The CAA also requires technical review every 8 years to identify better emission control technologies.  Both the standards for ONG production and those for natural gas transmission and storage were issued in 1999.  Environmental groups sued the EPA in Jan. 2009 for failing to review the NSPS.  The U.S. Court of Appeals for the D.C. District entered a consent decree in Feb. 2010 that required the EPA to sign proposals related to the review of those standards by July 28, 2011 and issue final standards by Feb. 28, 2012.

The Charleston Gazette reported on July 26 that the governor’s office has refused a Freedom of Information Act (FOIA) request from that newspaper to release records of correspondence between Acting Governor Earl Ray Tomblin and the oil and gas industry relating to Marcellus shale gas regulation.

Letters from individuals and environmental groups were shared with The Charleston Gazette, but correspondence between the Governor’s office and representatives of the oil and gas industry and related trade groups were withheld.  Per the Gazette, “(Kurt)Dettinger, (Tomblin’s General Counsel), said the Governor’s Office “consulted with members of the industry seeking their opinions and advice and we believe the opinions and advice on a regulatory proposal are exempt under West Virginia’s FOIA statute.”   Dettinger stated that withheld correspondence was part of the “deliberative process” and as such exempt from FOIA.

Full story in Charleston Gazette by Ken Ward, Jr.

The Wetzel Chronicle reported today that a press conference was held to announce that county commissioners from six Northern Panhandle counties had signed a joint resolution to bring an ethane cracker plant to that panhandle.  Commissioners from Ohio, Tyler, Wetzel, Marshall, Brooke and Hancock counties signed a joint resolution committing to “secure maximum investment for this region of West Virginia to the absolute best of their ability.”   Bayer Corp. has land and facilities at Institute, WV, near Charleston, and at New Martinsville in Wetzel County, and has previously expressed interest in participating in the development of a cracker plant.  The commissioners are concerned that a cracker plant would be built at Institute rather than in the panhandle where the gas is rich in ethane, the raw product converted to ethylene at a cracker plant.

From the Chronicle, “State Sen. Orphy Klempa, D-Ohio, later commended the commissioners for supporting the Northern Panhandle’s natural gas business. “We are in the area of the so-called ‘wet gas,’“ he said. “The Northern Panhandle should be rewarded for having the gas extracted here.” However, Corky DeMarco, executive director of the West Virginia Oil and Natural Gas Association, hopes more than one cracker will come to the state. “ I hate to see this become some sort of north-south struggle,” he noted. “We have plenty of room for two or more crackers here.”

In other news from the Northern Panhandle, the Weirton Daily Times reported on July 20 that the Wellsburg City Council had voted on a first  reading to repeal the ban on fracking within the city limits and one mile beyond following the governor’s announcement of emergency rules going into effect.  Chesapeake Energy had threatened a legal challenge to the ban.

Scott Rotruck, Vice President for Corporate Development for Chesapeake Energy, has stated to FrackCheckWV that the pledge for band funding to the Wellsburg Middle School (Brooke Co.) will be honored conditional upon the Wellsburg City Council voting on the second reading on August 9 to repeal the ban.

A report issue by the West Virginia Center on Budget and Policy, a nonpartisan, nonprofit research organization, points out that the economic benefits from coal mining were not sustainable and that the boom and bust cycle is poised to be repeated with Marcellus shale gas production.  The report is entitled Boom and Busts, The Impact of West Virginia’s Energy Policy.

The report states, “In the past, West Virginia counties with a concentration in mining saw their economic performance dramatically decline after an energy development boom. Today, their economies are weaker than the rest of the state, and they are ill-positioned to compete and grow. It is uncertain whether today’s energy boom, led by natural gas extraction, will bring the prosperity to West Virginia that it promises. While the potential revenues from this boom seem to be an attractive source of economic growth for communities, history shows that natural resource booms inevitably lead to busts.

This pattern is likely to repeat itself in counties that focus heavily on the Marcellus Shale development as the main source of economic growth. Indicators suggest that relying on an energy boom is not a definite solution for long-term growth and prosperity. The Marcellus Shale development has the potential to place unprecedented strains on the communities where drilling occurs. Researchers and analysts are just beginning to understand the environmental, health, and infrastructural impact of Marcellus Shale drilling. It remains unclear if natural gas drilling can create sustained economic growth for counties.”

The report concludes that sustainable long-term economic growth can only be achieved with a diversified economy and a well-educated workforce.  It recommends the creation of a Permanent Mineral Trust Fund financed by severance taxes.   The fund would be dedicated to education projects to encourage economic diversification and to infrastructure projects to “help ensure that the wealth generated by the energy boom stays in West Virginia and remains long after the mining resources are gone.”

Strike up the band?  Chesapeake Energy rained on the funding parade in Wellsburg, WV.  Chesapeake, a multinational corporation, has a well-greased public relations department.  From billboards and newspaper advertisements sporting photos of pristine waterfalls to contributions to local civic organizations, Chesapeake typically spends large sums to buy goodwill and encourage cooperation, especially in areas where their drilling rigs are active such as in Brooke County, WV.  According to the Intelligencer (July 14),  Wellsburg Middle School (Brooke Co.) was to have been the recipient of $30,000 in grant money from Chesapeake to subsidize the purchase of band instruments.  But that changed after Wellsburg voted to ban fracking in that community and within one mile of the municipality.  The beneficent Chesapeake revealed a vengeful streak. Now the funding is heading toward Follansbee Middle School, also in Brooke County.

“….(I)t is imperative that we focus our philanthropy where we and our operations are supported by the community and its leaders,” Chesapeake spokesperson (Stacy)Brodak said. “Unfortunately, with the imposition of a ban on our activity for a mile outside the city of Wellsburg, we are not now able to consider the current request for philanthropic gifts in this area. We are hopeful we can work together to eliminate the impediments and opposition to resource development in the area and can once again develop a mutually beneficial partnership with this community.”

The Preston County Solid waste Authority voted 3-0 to not change a site plan to allow for the development of a landfill that would have accepted Marcellus waste products.  The proposed 200 acre landfill would have been situated at the confluence of the Little Sandy and Big Sandy streams.  Approximately 30 local residents attended the PCSWA meeting.  None raised a hand when a show of hands was asked of those in favor of the landfill.

Friends of the Cheat Executive Director Amanda Pitzer shared the concerns of the FOC and the residents that the landfill would threaten the water quality of the streams.  Big Sandy is a tributary of the Cheat River and a popular boating and fishing stream.  After restoration efforts, the Big Sandy is close to being removed from the WVDEP’s list of impaired streams.

Full Story in Dominion Post (subscription required), July 7, 2011

The public is invited to attend a rally to demonstrate support for a moratorium on Marcellus shale drilling and fracking to be held from 10AM to 2PM on Monday, July 11, 2011 at the State Capitol Building in Charleston, WV. This event is sponsored by WV4MOM (West Virginia for a Moratorium on Marcellus). More info about an agenda, speakers, transportation, and parking will be released soon.   For more information contact frackinquestions@gmail.com.  For carpooling arrangements contact  wv4momcarpool@gmail.com.

Se. Jeff Kessler (D-Marshall)

West Virginia Media (owner of WBOY Clarksburg and WOWK  Huntington) has reported that an interim committee of the West Virginia Legislature has created a special committee to study Marcellus shale and develop legislation.  Acting Senate president Jeff Kessler (D-Marshall), serving as chair of the interim Joint Committee on Government and Finance, stated that it was hoped that the Marcellus committee will come to a resolution that will then set the stage for a special session to be called in the summer or fall.

At a public meeting held Thursday evening in Morgantown at Skyview Elementary School,  West Virginia Department of Environmental Protection Secretary Randy Huffman faced a crowd of incensed citizens.  The approval of two drilling permits within 1500 feet of the Monongahela River, 3000 feet from a public water intake, and close to two public schools has galvanized the Morgantown community into action.  Barry Pallay, cochair of the WV/PA Watersheds Compact, referred to the contentious permit as a “poster child for a permit that should not be approved”.   The Compact and The League of Women Voters cosponsored the meeting.

Slightly more than 200 people had turned out for the meeting to learn about and discuss the negative impacts of Marcellus shale drilling.  Roughly a third to a half had left before Huffman spoke in the latter part of the three hour program.  Pallay introduced Huffman and asked, “Using the powers you have, can you put together a regulatory program to protect the area” and the state?   Huffman explained that the oil and gas regulatory program in use now was developed for conventional vertical gas wells, not the new technology of horizontal drilling.  ”Quite frankly, our regulatory structure isn’t prepared to deal with it.”  The WVDEP, recognizing that the agency lacked the authority and the funding needed to properly regulate the industry, developed a 200 page hydraulic fracturing bill in 2010 which was introduced in the Legislature.  The West Virginia Legislature failed to pass any legislation relating to hydraulic fracturing in the 2011 session other than a bill that granted a tax credit package to industry primarily to provide incentives for chemical industry development.

The impacts of horizontal drilling on roads, water, air and public health and safety have not been considered in the aggregate.  ”We are learning so much about what is going on, we are making changes in our thinking every day” said Huffman.  At which point an audience member shouted, “Why don’t you stop the drilling until you know what you’re doing?”  Other audience members joined in the shouting; Pallay had to restore order.  ”I do not as the cabinet secretary of the DEP have the authority to stop gas drilling in the state of West Virginia,” Huffman said at one point in response to that sentiment in the room.  Two resolutions were presented and passed.  One calls for a moratorium on issuing permits until a regulatory framework is in place.  The second calls for the WVDEP evaluate permit applications for public health and safety impacts, flag those with potential problems, and seek public input regarding those flagged.  Huffman pledged to re-evaluate the DEP’s air quality control measures, and agreed that evaluating permits for public health and safety concerns, and flagging problem permits for further review is worth considering.

Morgantown Utility Board (MUB) General Manager Tim Ball spoke to concerns of the residents about potential for contamination of the drinking water supply.  He informed the crowd that MUB staff are at the drill site almost every day observing the safety tests and the results.  MUB also plans to conduct routine testing of the water in the Mon River at the base of the pad and at the intake. Contingency plans have been developed in the case of a spill or other contamination event.  The Cobun Creek reservoir can serve as an alternate water source for nine days. MUB is also planning on installing a backup intake upstream of the well pad.   Audience members asked who would cover the expenses of these additions to the system.  At this point in time, the costs are borne by the citizens.  Pallay called for a resolution to hold the drilling company responsible for these costs via a bond.  The audience approved that resolution.

Morgantown Deputy Mayor Don Spencer updated the crowd about the progress of the Morgantown City Council.   City Council is developing a resolution which calls for several items that were included in draft legislation that failed to pass the legislature this spring, and a few items that were not included in the legislature draft bills.   The City Council will have a first reading of a council resolution on June 7th.  A public hearing will be scheduled before the second reading of the council resolution.

Full story: Dominion Post by David Beard reprinted in Charleston Daily Mail

Concerned citizens showed up in force at the City Council meeting on Tuesday evening in Morgantown, WV.   About 20 people addressed the council members with concerns regarding a permitted Marcellus shale well near the Monongahela River within 3,000 feet of a public water intake that serves 100,000 people.   Many inquired about getting an injunction to stop the drilling of the wells permitted to Northeast Natural Energy, a West Virginia company.   The council responded with a letter to Randy Huffman, the Secretary of the WVDEP, supporting the permit modifications proposed by the Morgantown Utility Board.  The letter was faxed on Wednesday the 18th.  The WVDEP negotiated with Northeast and a modified permit which complies with the MUB requests is expected to be completed today.  Drilling can be expected to start as soon as the permit is issued as modified.

Wednesday morning, an estimated 120 concerned citizens assembled at the Courthouse Square in downtown Morgantown to protest the  controversial well permit.   Delegates Barbara Fleischauer and Charlene Marshall addressed the crowd to discuss their work on the issue of regulation of hydraulic fracturing.   Several citizens addressed the crowd, sharing their concerns about various aspects of hydraulic fracturing including the impact of industrialization on West Virginia, water contamination, air pollution, lack of regulation and lack of funding for the West Virginia Department of Environmental Protection.  Attorney Hiram Lewis, who represents clients with water contamination problems in Wetzel County, told that water is being contaminated with acrylonitrile, a toxic substance that is not being checked by testing.  He also observed that the concrete well casings may be incapable of withstanding the forces of fracking and may crack.  He stated that there is no proof that well casings can withstand more than 7,000 psi and that frack pressures exceed 10,000 psi.

As the protest demonstration was going on in the square outside the courthouse, inside the courthouse the County Commissioners were meeting.  Duane Nichols, representing the Mon Valley Clean Air Coalition, presented a position statement which expressed opposition to hydraulic fracturing in the Mon River Valley, noting in particular  dangerous threats to air quality.  ”The two Marcellus wells recently sited at or near the Morgantown Industrial Park are too close to the other facilities of the Industrial Park, too close to the Skyview Elementary School, too close to the Westwood Middle School, too close to the County Athletic Field between these schools, and too close to the City of Morgantown.”   Marc Glass is a certified soil remediation specialist who lives near the controversial drilling sites.  He described the Superfund site currently within the Morgantown Industrial Park where the wells are planned and the  proximity of a hazardous waste dump, both of significant concern if these come into contact with drilling fluids.  Glass also described the activities of the EPA and the Department of Energy toward developing best practices for drilling operations.

The three Commissioners agreed that that action at the state level is needed.  They agreed to draft a letter to the governor to call for a Special Session to create law for hydraulic fracking and pointing out that an untenable situation exists in West Virginia due to risks and uncertainties involved in Marcellus gas projects.