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University of Colorado Law SchoolJune 6, 2014
Mark K. BolingPresident
EXPLORING NEW FRAMEWORKS OF
REGULATION: NEGOTIATING MODEL
REGULATIONS
• The Economy
• The Environment
• Energy Security
Hydraulic Fracturing Debate
Public Distrust and Fear
Natural GasIndustry
CertainEnvironmental
Activists/Groups
PoliticsGuidingPolicy
THEPERFECTSTORM
Refocusing the Debate
• Dial Down the Rhetoric
• Identify the Real Obstacles to Responsible Development of this Resource
• Develop Workable Solutions to Overcome these Obstacles
3
Development Considerations
4
Surface Considerations
Subsurface Considerations
Surface Considerations
5
Air Emissions• VOC’s/Methane• Criteria Pollutants• Hazardous Air Pollutants
Water Impacts• Water Use• Water Handling• Water Reuse & Disposal
Surface Impact• Drilling Locations• Truck Traffic & Road Damage• Infrastructure
Subsurface Considerations
6
Protecting Underground Water Resources
Frac Fluid Disclosure
Protecting Underground Water Resources
7
Well IntegrityIs the Key!
Well Integrity
8
Well Construction Standards2Evaluate Stratigraphic Confinement1
Evaluate Mechanical Integrity of Well3 Monitor Frac Job & Producing Well4
FRESH WATER AQUIFER ZONE
SHALLOW PRODUCING ZONE
CONDUCTOR PIPE
SURFACE CASING
PRODUCTION CASING
TARGET PRODUCING ZONE
GOOD MECHANICAL INTEGRITY
CEMENT CHANNELING
PRESSURE BUILDS UP
CONDUCTOR PIPE
SURFACE CASING
PRODUCTION CASING
FRESH WATER AQUIFER ZONE
SHALLOW PRODUCING ZONE
TARGET PRODUCING ZONE
CA
SIN
G
CE
ME
NT
FO
RM
AT
ION
Negotiating Model Regulations – Other Examples
• Frac Fluid Disclosure
• VOC/Methane Emissions
• Wastewater Treatment
• Water Disposal/Triggered Seismicity
11
PERCEIVEDRISK
ACTUALRISKRISK
INFORMATIONGAP
Smart Regulation = Effective Risk Management
12
ACTUALRISK
PERCEIVEDRISK
COLLABORATIONAND RISK
COMMUNICATION
SMARTREGULATION
PERCEIVEDRISK
ACTUALRISK
PUBLIC TRUST& ACCEPTANCE
ACTUALRISK
PERCEIVEDRISK
SMARTREGULATION
PERCEIVEDRISK
ASSESSEDRISK
COLLABORATION AND RISK
COMMUNICATION
PUBLIC TRUST& ACCEPTANCE
University of Colorado Law School
June 6, 2014
Mark K. Boling
President
EXPLORING NEW FRAMEWORKS OF
REGULATION: NEGOTIATING MODEL
REGULATIONS