may 2, 2013 - san joaquin valley apcd home page€¦ · –80% of monterey shale in san joaquin...
TRANSCRIPT
• 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
• 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
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
WESTERN STATES PETROLEUM ASSOCIATION
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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.
Hydraulic Fracturing Safety: Myths and Facts
WESTERN STATES PETROLEUM ASSOCIATION
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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
Hydraulic Fracturing Safety: Myths and Facts
WESTERN STATES PETROLEUM ASSOCIATION
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Hydraulic Fracturing Safety: Myths and Facts
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
WESTERN STATES PETROLEUM ASSOCIATION
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Hydraulic Fracturing Safety: Myths and Facts
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
WESTERN STATES PETROLEUM ASSOCIATION
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 Safety: Myths and Facts
WESTERN STATES PETROLEUM ASSOCIATION
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
WESTERN STATES PETROLEUM ASSOCIATION
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Voluntary Disclosure
Source: FracFocus website, California well reports posted as of November 6, 2012
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800
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WESTERN STATES PETROLEUM ASSOCIATION
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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
WESTERN STATES PETROLEUM ASSOCIATION
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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
WESTERN STATES PETROLEUM ASSOCIATION
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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
WESTERN STATES PETROLEUM ASSOCIATION
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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
WESTERN STATES PETROLEUM ASSOCIATION
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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
WESTERN STATES PETROLEUM ASSOCIATION
Sources of Oil for California Refineries
Source: U,S, Energy Information Administration; California Energy Commission 15
WESTERN STATES PETROLEUM ASSOCIATION
Petroleum is a fuel of the future
Source: U.S. Energy Information Administration
January 2012
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WESTERN STATES PETROLEUM ASSOCIATION
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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WESTERN STATES PETROLEUM ASSOCIATION
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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WESTERN STATES PETROLEUM ASSOCIATION
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.