John F. Peiserich Perkins & Trotter, PLLC [email protected] • The Clean Water Act regulates surface water discharges and storm-water runoff. • The Clean Air Act sets rules for air emissions from engines, gas processing equipment and other sources associated with drilling and production activities. • The Safe Drinking Water Act regulates the disposal of fluid waste deep underground. • The National Environmental Policy Act requires permits and environmental impact assessments for drilling on federal lands. • • • The Occupational Safety and Health Act sets standards to help keep workers safe. These include requiring Material Safety Data Sheets be maintained and readily available onsite for chemicals used at that location. The Emergency Planning & Community Right-to-Know Act requires storage of regulated chemicals in certain quantities to be reported annually to local and state emergency responders. The National Pipeline Safety Act sets standards for pipeline construction, operation and maintenance administered by U.S. Department of Transportation. Arkansas Department of Environmental Quality Arkansas Oil & Gas Commission Arkansas Natural Resources Commission – permitting of water use * The U.S. Army Corps of Engineers administers 404 permitting which is predominately related to potential impacts to surface water but requires an ADEQ water quality certification. Physical: • • • • Well Casing Program Cement Bond Log Mechanical Integrity Testing Annulus Pressure Monitoring Regulations: • • Federal Rules and Regulations Routinely Updated State Rules and Regulations Constituent Name Generic Name Common Use 1,2,4 Trimethylbenzene Alcohol, C12-16, Ethoxylated Aldehyde Aromatic Hydrocarbon Alcohols, Ethoxylated Aldehyde Paint, Mold Making Kit (Arts and Crafts), Unleaded Gasoline Ammonium Chloride Ammonium Phosphate Crystalline Silica, Quartz Ethanol Ethoxylated Fatty Acid Fatty Acid Tall Oil Blend Heavy Aromatic Petroleum Naphtha Industrial Cleaning Solution, Tire Repair, Agricultural Insecticide HydrocarbonPetroleum Distillate Yes Hydrochloric Acid Inorganic Acid Table Olives, Unripened Cheese, Cottage Cheese Yes Hydrotreated Light Petroleum Distillate Isopropanol Methanol Oil Wood Stain, Air Freshener, Surface Cleaner Aerosol Hydrocarbon – Petroleum Distillate Alcohol Tape Head Cleaner, Hops Extract used for Beer, Air Freshener Alcohol Furniture Refinisher, Liquid Hand Soap, Windshield Washer Concentrate, Hops Extract Ketone Paint Thinner, Wood Stain, Metal Adhesive, Automotive High Heat Paint Yes Polycyclic Aromatic Mothballs, Agricultural Insecticide, Heating Fuel Oil Hydrocarbon Ethoxylated Amine Toilet Bowl Cleaner Yes Methyl Isobutyl Ketone Naphthalene Polyethoxylated Fatty Amine Salt Quaternary Ammonium Salt Sodium Chloride Hazardous as Appears on MSDS Yes Car Wash Liquid, Laundry Stain Remover, Air Freshener No Yes Inorganic Salt Metal Cutting Fluid, Non-Alcoholic Beverages, Ice Cream, Candy, Baked Goods, Chewing Gum, Condiments and Meats Hand Wash, Shampoo, Breakfast Cereal Inorganic salt Milk Products No Silica Cat Litter, Tile Mortar, Arts & Crafts Ceramic Glaze Yes Alcohol Ethoxylated Fatty Acid Tall Oil Fatty Acid Ginseng, Deodorizer, Dish Soap, Cologne, Makeup (Mascara), Mouthwash Household Multipurpose Cleaner, Laboratory Hand Cleaner Yes No Car Polish, Industrial Hand Cleaner No Quaternary Ammonium Salt Inorganic Salt Yes Yes Yes No No Industrial and Commercial Water Acidity Neutralizing Solution Yes Macaroni and Noodle Products, Canned Corn, Tomato Concentrate, Frozen No As defined by OSHA Standard 1910.1200 (the OSHA Haz-com standard), a hazardous chemical is one which is a physical hazard or a health hazard. Health hazard means a chemical for which there is statistically significant evidence based on at least one study conducted in accordance with established scientific principles that acute or chronic health effects may occur in exposed employees. The term "health hazard" includes chemicals which are carcinogens, toxic or highly toxic agents, reproductive toxins, irritants, corrosives, sensitizers, hepatotoxins, nephrotoxins, neurotoxins, agents which act on the hematopoietic system, and agents which damage the lungs, skin, eyes, or mucous membranes. Physical hazard means a chemical for which there is scientifically valid evidence that it is a combustible liquid, a compressed gas, explosive, flammable, an organic peroxide, an oxidizer, pyrophoric, unstable (reactive) or waterreactive. Jackson said natural gas creates less air pollution than other fossil fuels “so increasing America’s natural gas production is a good thing.” She said Congress told the EPA to study the relationship between fracking and drinking water. “We are doing that, with input from technical experts, the public and industry,” she said. “In the meantime, EPA will step in to protect local residents if a driller jeopardizes clean water and the state government does not act.” Under questioning from a Pennsylvania Republican, Jackson said she was “not aware of any proven case where the fracking process itself” had affected water. UPDATE – April 2012 – Jackson says “in no case have we made a definitive determination that the fracing process has caused chemicals to enter groundwater.” This is after Pavillion, WY. It is responsible for creating 2.8 million American jobs. It is forecast to add 1 million U.S. manufacturing jobs over the next 15 years. It has led to an annual increase in U.S. household disposable income of $926. Shale gas alone is forecast to contribute $933 billion revenues to federal, state and local government coffers over the next 25 years, including helping pay for schools, law enforcement and other essential municipal priorities. It is the transportation fuel of choice of American cities large and small—as they seek to save money and promote clean air through their bus fleets. It has helped reduce U.S. power sector carbon emissions to levels not seen in 20 years as communities embrace this energy as a cleaner electricity choice. It allowed the top 100 U.S. power producers to reduce by one-third emissions of sulfur dioxide and smog-forming nitrogen oxide—in just a two-year period. And, as a transportation fuel it is allowing city bus fleets, large company fleets (AT&T, UPS, Verizon, Waste Management, et al) to rely on an American fuel that costs on average 40% less than diesel or gasoline. North Little Rock and Mayor Hays have brought PUBLIC CNG to Central Arkansas at $1.44 per gasoline gallon equivalent! It appears historic operations are the most likely cause of potential groundwater and drinking water issues. The O&G Industry risk of potential water issues is no different from any other industry that manages fluids. The development of new technologies, improved drilling and completion techniques, and “green” completion fluids all add layers of protection for water issues. Public outreach is a necessary component of any industrial activity and one that needs substantial additional effort in the O&G Industry.