8/9/2019 Statement of Joe Kiely EPA Hearing on Hydraulic Fracturing

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STATEMENT OF JOE KIELY, VICE PRESIDENT OF OPERATIONS

PORTS-TO-PLAINS ALLIANCE

BEFORE

UNITED STATES ENVIRONMENTAL PROTECTION AGENCY

OPPORTUNITY FOR STAKEHOLDER INPUT ON HYDRAULIC FRACTURING

DENVER, CO

JULY 13, 2010

I am Joe Kiely, Vice President of Operations for the Ports-to-Plains Alliance. The Ports-to-Plains Alliance is a coalition of local governments, economic development agencies, chambersof commerce and business interests representing primarily rural areas in the Ports-to-Plains

region that reaches from Texas on the south and Montana and North Dakota on the north. ThePorts-to-Plains Alliance supports a national all-energy strategy because all forms of energy areneeded to support a strong economy. Oil, gas, wind and other renewables create jobs in ourcommunities and fuel our nation. North American energy makes our nation more secure.

Thank you for the opportunity to comment on this important topic that will affect the economiesof the communities I represent. The new opportunities for natural gas plays in our region couldhave a significantly positive economic effect on the Ports-to-Plains communities. Reducing theability to use hydraulic fracturing could also result in a significantly negative economic effect.

Hydraulic fracturing is not something new. It has been used in various forms for over 25 yearsand has been regulated well by state regulatory agencies. It is a primary question: Why is the

federal government now studying something that has been successfully regulated by states inthe past?

ECONOMIC AND JOBS

In the ten states I represent, over 2.7 million jobs depend on the oil and gas industry. Oil andgas represents over $400 billion of the U.S. GDP reaching 31% of GDP in Oklahoma, 29% inWyoming, and 24% in Texas.

Since we are meeting in Colorado, I offer the following:

Oil and natural gas development, of which 90 percent is accomplished via hydraulic

fracturing, is integral to Colorados economy. In fact, the total economic contribution forall oil and gas related activity in Colorado is $22.9 billion.

Energy activity within the State employs approximately 71,000 people. For every onedirect job that is created by oil and gas activities, almost 2 additional indirect jobs aregenerated by this activity, according to a Colorado School of Mines report.

Natural gas development also contributes to the economic well-being of many otherindustries within Colorado. From all of the oil and gas activities in Colorado,approximately 22 percent of employment is specific to oil and gas industry, followed by14 percent in government, nine percent in professional services, eight percent in retail

8/9/2019 Statement of Joe Kiely EPA Hearing on Hydraulic Fracturing

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and seven percent in health care and social services. All of these major industriesemployment rates are significantly impacted by oil and gas activity.

Oil and natural gas activities within Colorado account for approximately 6.1 percent ofColorados total industry revenues, 2.2 percent of employment and 3.2 percent of totalearnings. In general, oil and gas development generates average earnings ofapproximately $61,000 32 percent higher than the states average.

ADDRESSING REGULATORY CHANGES

The Ports-to-Plains Alliance asks that any federal study looking to additional regulationsaddressing hydraulic fracturing address the following points:

The Science Advisory Board should make sure that any study examining the impacts ofhydraulic fracturing on drinking water is an objective assessment that takes into accountthe impacts of current state regulatory programs covering hydraulic fracturing.

The EPA study needs participation from industry experts with extensive experience inhydraulic fracturing best practices. This study should be based on the principles ofsound science and include valid and accurate data from independent, credible sources.

The EPA should also include the participation of the state regulatory agencies, theInterstate Oil and Gas Compact Commission and the Groundwater Protection Council,as well as state-level regulatory officials who have been involved in developing andimplementing hydraulic fracturing regulations for decades.

OPPORTUNITY GAINED OR LOST

I will close this comment with several points that show the opportunities that may be gained orlost by the federal government begins engaging in regulation where state agencies havesuccessfully managed in prior years.

We are now able to produce natural gas from places previously thought impossible to

develop because of advances in technology this has given us the potential totransform our nations energy future, especially as we consider how to develop cleanerand more efficient energy.

New shale gas supplies can provide us with over a hundred years of natural gas if theyare allowed to be developed. This significant domestic resource has the potential toreduce foreign oil imports, increase and diversify U.S. fuel supplies, create thousands ofAmerican jobs and fuel U.S. economic growth.

Development of U.S. oil shale resources will generate significant employmentopportunities and substantial government revenues.

Hydraulic Fracturing of unconventional shale gas is a game-changer. Development ofclean, domestic, natural gas could potentially reduce our reliance on imported oil fromOPEC.

U.S. manufacturing grows when natural gas is stable, reliable and affordable.Development of domestic, natural gas supplies is essential to keep us competitiveglobally.

U.S. Manufacturing can grow again with stable, reliable development of newunconventional natural gas supplies.

Shutting down, or over-regulating hydraulic fracturing will cause too much volatility innatural gas markets and will cause production to move overseas.

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The overall natural gas industry employed 550,000 workers nationwide in 2008 and wasresponsible for the creation of an additional 2.4 million jobs in supporting industries,adding more than $400 billion to the U.S. economy, according to IHS Global Insight.

Even temporarily halting hydraulic fracturing while federal regulations are determinedand/or implemented by industries could result in significant loss to U.S. GDP andemployment.

A 2009 study determined that if fracturing were prohibited between 2009 and 2012, theloss to real GDP would total $255 billion and 1.859 million jobs could be lost.