Communications and Legislation Committee August 21, 2012

Communications and Legislation CommitteeItem 8-5August 21, 2012

Communications and Legislation Committee August 21, 2012

Growth of Energy Development

Potential Water Quality and Supply Impacts

Numerous Regulatory/Legislative Proposals

Need for Clear Staff Direction

Advocate for Source Water Quality Protections

Natural Gas Well

Communications and Legislation Committee August 21, 2012

Hydraulic Fracturing

Public•Local Impacts•Lack of Disclosure•Potential Health Effects

Environment•Air•Groundwater•Surface Water•Land

Energy•Cheap, Clean, and Domestic Supply

•National Security•Economic Stimulus

Government•Federal Exemptions•Who’s to Govern?•What to Govern?

Communications and Legislation Committee August 21, 2012

The use of pressurized fluids (water, sand, and chemicals) to create fractures in rock, allowing for the extraction of oil

and natural gas from hard-to-reach deposits

Source: thepilot.com

Communications and Legislation Committee August 21, 2012

719

5

1272

Source: FracFocus.org/ Accessed August 6, 2012

7

270

690

270

19

Communications and Legislation Committee August 21, 2012

Source: www.epa.gov/hfstudy/hfwatercycle.html

Well

Aquifer

Pumping Equipment

Storage Pond

Treatment Facility

Sealing Rock Formation

Gas Bearing Formation

Product Delivery

Fracturing Zone

Raw Materials

Communications and Legislation Committee August 21, 2012

Source: www.epa.gov/hfstudy/hfwatercycle.html

Water Acquisition Chemicals

High-Pressure Injection

Wastewater Storage, Treatment,

and Disposal

Improper Well Closure

Communications and Legislation Committee August 21, 2012

Current StatusEnergy Policy Act of 2005 largely exempts hydraulic fracturing from Federal statutes

Proposed RulesUS Environmental Protection Agency

Clean Air Act (Awaiting Adoption)

Safe Drinking Water Act (Draft)

Clean Water Act (In Process)

Toxics Substances Control Act (In Process)

US Department of InteriorRegulations for Public Lands (Draft)

Communications and Legislation Committee August 21, 2012

Federal AuthorityH.R. 1084 (DeGette) and S. 587 (Casey)

Repeal Safe Drinking Water Act exemption

Disclose hydraulic fracturing chemicals

State AuthorityH.R. 2133 (Matheson)

Keeps Safe Drinking Water Act exemption

H.R. 4322 (Gohmert) and S. 2248 (Inhofe)

States have the sole authority to regulate hydraulic fracturing on Federal lands

Communications and Legislation Committee August 21, 2012

State Well Drilling, Construction, and Operation

Tracking of Hydraulic Fracturing

Disclosure of Fracking

Chemicals

Arizona √ √

California √

Colorado √ √ √

Nevada √

New Mexico √ √ √

Utah √

Wyoming √ √ √

Communications and Legislation Committee August 21, 2012

California Division of Oil, Gas, and Geothermal Resources (DOGGR)

Draft rules anticipated August/September 2012Well integrity

Public notification

Disclosure of chemical and flowback/produced water data

Adoption by January 1, 2014

South Coast Air Quality Management DistrictAir emissions (TBD)

Communications and Legislation Committee August 21, 2012

AB 591 (Wieckowski)Documentation of well drilling history

Disclosure of chemicals

Data on water and fluids recovered from wells

AB 972 (Butler)Fracking moratorium

S.B. 1054 (Pavley)—FailedPublic notification

S.B. 1139 (Rubio)Carbon sequestration

CO2 for enhanced oil recovery

Communications and Legislation Committee August 21, 2012

Source Water Quality Protection Policy PrincipleAdvocate for the inclusion of source water protection provisions in energy development policies, legislation, and regulations. Covered energy development activities may include, but are not limited to, oil and gas extraction that use enhanced recovery techniques such as hydraulic fracturing.

Communications and Legislation Committee August 21, 2012

Acknowledges domestic energy development needs and protects surface water and groundwater quality

Provides staff direction in commenting on legislative and regulatory proposals

Consistent with AWWA, AMWA, and NAWC’s positions

Communications and Legislation Committee August 21, 2012

Option 1: Adopt the CEQA determination and amend Board Policy Principle to address hydraulic fracturing

Option 2: Take no position on amended Board Policy Principle

Communications and Legislation Committee August 21, 2012

Staff Recommendation: Option 1

Communications and Legislation Committee August 21, 2012