may 2, 2013 - san joaquin valley apcd home page€¦ · –80% of monterey shale in san joaquin...

May 2, 2013

• There are a number of legislative proposals concerning

Hydraulic Fracturing:

– AB 288 (Levine)

– AB 7 (Wieckowski)

– AB 982 (Williams)

– AB 669 (Stone)

– SB 4 (Pavley)

– SB 395 (Jackson)

– SB 665 (Wolk)

• Staff will monitor Bills as the move through the

legislative process

• High pressure, high

volume injection of

fracking fluids

• Fluid fractures oil-

bearing rock strata

• “Proppants” (sand)

prop open fractures,

allowing flow of oil

Illustration: API, Hydraulic Fracturing;

Unlocking America’s Natural Gas

Resources July 19, 2010

• Diesel-powered Equipment

– Drilling rigs, pumps

• Dust from sand and mixing operations

• Toxic air contaminants from fracking fluids

– Pre-injection storage and handling

– Initial “flowback”

• VOC from produced fluids and gas

– Initial “flowback”

– Long-term production operations

• Permits Required (Rule 2010)

– New Source Review (Rule 2201)

• Best controls required, mitigation

– Some temporary equipment exempt

• Tanks capturing “flowback”

• Portable engines

• Portable Equipment Registration

– State requires reduced emissions from fleet

– California has cleanest portable engine fleet

• Rule 4401 – VOC controls on oil wells

• Rule 4402 – VOC control on first-line tanks and

sumps

• Rule 4409 – Fugitive VOC control from valves,

flanges, etc, light oil and gas ops.

• Rule 4623 – VOC controls on oil tanks

• US EPA 40 CFR 60 Subpart OOOO

– Performance standards for oil and gas prod

– Newly modified: control of emissions from hydraulic

fracking for natural gas production

• Water Quality

– Fracturing extending into water table

– Intrusion of methane, fracking chemicals

• Induced Seismicity (Earthquakes)

– Theory: added pressure and lubrication to

already-stressed geologic faults

• Increased GHG Emissions

– Portable, diesel-powered equipment

– Fugitive methane emissions

WSPA Presentation Here

Catherine Reheis-Boyd

President

Western States Petroleum Association

• District currently has a number of regulations pertaining

to fracking activities/emissions

• More reporting and monitoring warranted

• State (DOGGR) should be the lead

– Multimedia regulatory authority

– DOGGR already has extensive authority over oil exploration

– Duplication at local level not effective or efficient

• District will continue to work with DOGGR to assure air

quality issues are properly addressed

• Address workload issues in a timely fashion

– 80% of Monterey Shale in San Joaquin Valley

– Significant increase in permitting and compliance workload

Monterey Shale & Hydraulic Fracturing

Catherine Reheis-Boyd

Western States Petroleum Association

May 2, 2013

WESTERN STATES PETROLEUM ASSOCIATION


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Hydraulic Fracturing Safety: Myths and Facts

“If fracking is not immediately stopped,

the water table will become so highly

toxic and unusable that all of Culver

City and surrounding cities will all

become a desolate, (un)inhabitable

wasteland. Plants, trees and all living

species will cease to exist here.

I’m not an alarmist, but . . .”

Culver City Resident, Culver City Patch, May 16, 2012


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“In no case have we made a definitive determination that the fracking

process has caused chemicals to enter groundwater.”

U.S. Environmental Protection Agency Administrator Lisa Jackson, April 30, 2012

“I’m not aware of any proven case where the fracking process itself has affected

water.”

U.S. Environmental Protection Agency Administrator Lisa Jackson, May 24, 2011

“My point of view, based on my own study of hydraulic fracking, is that it can be

done safely and has been done safely hundreds of thousands of times.”

Former Secretary of the Interior Ken Salazar, February 15, 2012

“The Water Boards generally consider hydraulic fracturing a low threat to

groundwater . . .”

State Water Resources Control Board, Executive Director, Thomas Howard, February 8, 2013.



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Myth: There is a lack of science-based

information about hydraulic fracturing in

California

Fact: In October, 2012, an exhaustive year-

long study at Inglewood Oil Field in Los

Angeles looked at 14 environmental issues,

including public health, groundwater, air

quality, seismic, noise, vibration

All fractures separated from fresh water by

at least 7,700 feet (1.5 miles) or more

No impacts to any of the 14 areas studies

October 10, 2012



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Myth: Hydraulic fracturing is

destructive and unregulated

Fact: Hydraulic fracturing in

California has been used for 60

plus years; it is not destructive, has

never been linked to any

environmental harm in California

and has been closely regulated

The primary regulations that protect

groundwater are the state's well

construction and testing standards,

which are among the strictest in the

United States

Source: FracFocus, Courtesy of Texas Oil and Gas Association


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Myth: Hydraulic fracturing uses

millions of gallons of water

Fact: In 2012, the average amount

of water used during hydraulic

fracturing operations was 116,000

gallons of water

The total amount of water used in

the 528 wells that were hydraulically

fractured in 2012 was 202 acre feet

The average water used on golf courses is 312,000 gallons every day

Farming in California 2012 uses approximately 34 million acre feet of

water annually

Source: FracFocus; California Department of Water Resources


Myth: Hydraulic fracturing causes felt earthquakes

Fact: A recent study by the National Academy of Sciences concluded,

“The process of hydraulic fracturing a well as presently implemented for

shale gas recovery does not pose a high risk for inducing felt seismic

events.”

The NAS study and other research has concluded the energy deployed

in hydraulic fracturing is miniscule compared to the energy required to

trigger a felt earthquake

Seismic events associated with wastewater injection wells in other

states are not relevant to California; for many decades, thousands of

wastewater injection wells have been strictly permitted and used in

California without any link to seismic activity

Source: National Academy of Sciences, Hydraulic Fracturing Poses Low Risk for Causing Earthquakes,

But Risks Higher for Wastewater Injection Wells, June 15, 2012

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Hydraulic Fracturing: How Much, Where

Myth: We don’t know how much or

where hydraulic fracturing is occurring

Fact: 568 wells fractured in 2012

according to FracFocus

2,705 well permits issued in 2012

48,970 wells currently producing oil

and/or gas in CA

97 percent of hydraulic fracturing

operations were in 2012 were in Kern

County

Source: WSPA survey of FracFocus website 2012 data 8


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Voluntary Disclosure

Source: FracFocus website, California well reports posted as of November 6, 2012

19

800

32


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Hydraulic Fracturing Regulations

California Division of Oil, Gas & Geothermal

Resources (DOGGR) proposed regulations

Draft regulations require:

Advance notice to DOGGR before a well

is fractured

Enhanced testing and monitoring of

fractured wells

Safe storage and handling requirements

of fracturing fluids

Disclosure of chemicals used on

FracFocus website

Provides protection of trade secrets


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Legislation SB 395 (Jackson): Any produce water from an oil well is deemed a hazardous waste – regulated by

DTSC.

AB 288 (Levine): Deletes existing policy section 3203.5 PRC which outlines DOGGR’s authority to

facilitate oil production in California; requires permit for any well stimulation treatment

AB 7 (Wieckowski): Requires information related to the hydraulic fracturing be given to DOGGR;

requires disclosure and addresses trade secrets

SB 4 (Pavley): Imposes a moratorium on hydraulic fracturing unless a study is conducted by 2015;

requires a permit from DOGGR and pre-notification to land owners

AB 669 (Stone) : Requires regional water quality board to approve the method and location of

wastewater disposal; requires disclosure of the origin and volume of freshwater used

AB 982 (Williams): Requires operators to submit ground water monitoring plan to DOGGR and

regional water boards

SB 665 (Wolk): Indemnity bond amounts for oil and gas wells in statute – blank now.

AB 649 (Nazarian): Moratorium on hydraulic fracturing on any well located near an aquifer.

AB 1301(Bloom): Moratorium on hydraulic fracturing

AB 1323 (Mitchell): Moratorium on hydraulic fracturing


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WSPA’s Position

Allow DOGGR’s rulemaking to be

completed

Then address any perceived gaps in

statutes or regulations

“I support our Division of Oil and Gas. They are excellent people and I

look for them to navigate the issues as we go forward. The fossil fuel

deposits in California are incredible.”

California Governor Jerry Brown


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Potential Economic Benefits of Shale Production

Creation of 512,000 to 2,815,800 new

jobs, depending on the year

State per-capita gross domestic product

growth by $1,600 to $11,000, or by 2.6%

to 14.3%

Personal income growth by $40.6 billion

to $222.3 billion, or by 2.1% to 10.0%

Increase in state and local government

revenues (tax collections) of $4.5 billion

to $24.6 billion, or by 2.1% to 10.0%

Source: The Monterey Shale & California’s Economic Future, University of Southern California, March 2013


14

Shale Oil Plays in the U.S. Monterey

15.4 Billion

Barrels

63% of US

Shale Oil

Bakken

4 Billion Barrels

17% of US Shale

Oil

Eagle Ford

3 Billion Barrels

12% of US Shale

Oil

Avalon/Bone

Springs

2 Billion Barrels

8% of US Shale

Oil


Sources of Oil for California Refineries

Source: U,S, Energy Information Administration; California Energy Commission 15


Petroleum is a fuel of the future

Source: U.S. Energy Information Administration

January 2012

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Hydraulic Fracturing and Air Quality

Emissions from oil and gas operations - including hydraulic

fracturing - are currently regulated under arguably the most robust

body of rules in the nation

All oil & gas production operations require extensive permitting by

local air districts

Portable equipment used in the fracturing process is regulated

under CARB’s Portable Equipment Registration Program (PERP)

Many operations fall under California’s cap-and-trade program and

must receive federal Title V permits; therefore, greenhouse gas

emissions are quantified and must be mitigated

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Hydraulic Fracturing and Air Quality

What’s not happening

Unpermitted/uncontrolled venting of natural gas is not allowed

Unpermitted/uncontrolled flaring of gas is not allowed

Fracturing contracting companies do not store or transport

chemicals without permits from the appropriate federal, state

and local agencies

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SJVAPCD Air Quality Regulations Emissions from hydraulic fracturing have been and continue to be part of the San Joaquin Valley Air Pollution Control

Agency (SJVAPCD) permitting and reporting process for drilling activities.

SJVAPCD Rule 2201 is the new and modified stationary source review rule. It requires that new or modified

emission sources apply Best Available Control Technology (BACT), obtain emission offsets, and permit

application approval of the Air Pollution Control Officer.

SJVAPCD Rule 2540 is an administrative mechanism for incorporating requirements authorized by SJVAPCD

Rule 2201 permits into a Federal Part 70 Operating Permit (i.e., demonstrating compliance with the

requirements of 40 CFR 70.6, 70.7 and 70.8).

SJVAPCD Rule 4401 requires the capture and control or of emissions from existing and new enhanced crude oil

production wells.

SJVAPCD Rule 4402 requires the capture and control or replacement with tanks of sumps associated with crude

oil production wells.

SJVAPCD Rule 4409 limits emissions from leaking oil field components including valves, threaded connections,

flanges, pumps, compressors, pressure relief values, and polished rod stuffing boxes.

SJVAPCD Rule 4623 governs crude oil and petroleum distillate storage tanks. This rule requires controls on

tank emissions that include highly-effective vapor recovery system.

SJVAPCD Rule 4311 limits the emissions from the operation of flares. Specifically, this rule contains stringent

emission standards for ground-level enclosed flares as well as conditions for

other types of flares.


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may 2, 2013 - san joaquin valley apcd home page€¦ · –80% of monterey shale in san joaquin...

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