Memorandum
TO: Chris Andresen
Dutko Grayling
FROM: Danny Baranowski, StudentFreelance Policy Analyst
DATE: 5 October 2011
RE: Secretary of Energy Advisory Board’s Shale GasProduction hearing
______________________________________________________________________
Introduction
The senate hearing focused onthe testimonies of the Shale Gas Production Subcommittee’s 90-day reportcentered on the environmental issues imposed by natural gas extraction. At thestart of the hearing, the chairman reiterated that the focus of the hearing wasprimarily to discuss the reality of hydraulic fracturing contamination andsuggestions for improvements to the status quo.
During hydraulic fracturing,water and sand make up about 99.5% of the substances that are pumped into theground. Only about .05% of the substances are chemicals. These chemicalsconsist of gelling agents (found in different foods), surfactants (similar todawn dishwashing soap), and biocides (similar to Clorox bleach). Thesechemicals are fairly harmless in the small doses that are being applied duringthe fracking process.
Hydraulic Fracturing has beenmade the media scapegoat for anything that goes wrong during the natural gasextraction processes. Fracking does not affect the drinking water (Dr. StephenA. Holditch). There is no question that Shell gas products can be developed ina manner that utilizes hydraulic fracturing and still protects the environmentwhile minimizing the negative impacts it has on surrounding communities.
Natural Gas extraction is anindustrial activity so there will be impacts on the environment, however, theseimpacts can be managed more adequately so that the impact is minimal. Thefluids released during fracking are unlikely to contaminate drinking water, however,the methane that is unleashed from the Shale Formation does have a possibilityof reaching drinking water resources.
There are current regulationsin place at the State level. In general, these regulations are being upheld andgetting the job done. Additional steps do need to be taken to continue toimprove the process, however, most states have processes in place for takingthose additional steps. The subcommittee panel advised that over regulating theprocess at the federal level could make things more difficult for potentialinvestors, lower the efficiency of the overall extraction process, and couldmove further away from the specific needs of the communities directlysurrounding the sites.
The subcommittee recommendedseveral changes to the extraction process that would yield both environmentaland economical dividends. They counseled that heeding their recommendationswould reduce the possibilities of methane contamination, increase efficiency,have economic upside, and improve the relationships between State and Federalregulators.
Proposed Legislation/budget changes
The Federal Government needsto invest money into STRONGER (State Review of Oil and Natural GasEnvironmental Regulations) and into companies that develop technology thataddress environmental issues. These investments would require relatively smallamounts of money and would pay a large return.
Regulatory Changes and Implementation
ResearchThere is a lack of data andmeasurements. There needs to be baseline data such as measurements in the waterprior to fracking, to compare to tested data during and after. There needs tobe a more complete measurement of air quality and water quality and the effectsof methane. For this extra research that needs to take place, it will requireadditional government funding.
InclusionIndustries should be requiredto list on a publically available website, the volume and composition of whatthey are pumping into the ground and for what is coming out of the well. Thereneeds to be disclosure transparency between companies and regulators.
TechnologyBy increasing the fundingtoward developing new technology, it should increase productivity andefficiency, therefore lowering the cost to extract. New technologies shouldfocus on removing impurities from water used during fracking so water can bereused and new technologies for capturing methane at well-completion instead ofventing, this will benefit the environment and allow for reuse of the methane.
ConservationThere is a need to discoverways to minimize the use of fresh water during fracturing.
EfficiencyPad Drilling is drilling intomultiple wells from one pad. Pad Drilling will use minimal amounts of land, itwill lower the environmental impact on surrounding communities, makes planningan easier task to manage, and allows for temporary pipelines to be used. PadDrilling should become a common practice at sites.
ProtectionThe most important step thatcan be taken to protect the workers, surrounding communities, and the environmentis to avoid gas leakage from the wells by constructing strong wells that havemultiple cement castings. This will prevent most of the issues that come withgas extraction.
Toneand Direction AnalysisThefocus of the Senators appeared to be directed toward the following:
- Understanding ifthe regulation should be handled at a state or national level
- Ensuring that theenvironment and that the surrounding communities are protected
- Taking intoaccount the interests of the companies involved
- Whether or notthe subcommittees report was accurate and reliable
Itappeared that the Senators did not disagree with the recommendations of thepanel to allow regulations to primarily take place at the state and locallevels and to keep the federal levels involvement small. The panel did a goodjob backing up claims that Hydraulic Fracturing did not pose a serious risk tohealth of the communities or environment. The Senate grilled the panel on thatclaim and appeared satisfied with their responses. The panel will release a moredetailed report in about 6-weeks. The EPA is also currently working on a fracturingreport that is separate from the subcommittees, but will not be released untilSpring 2014. It appeared that the Committee has every intention of making somechanges based on the findings, they do not seem to be sure of the accuracy ofthe current data, but I anticipate a lot of regulations changes as well a morestrict adherence to current regulations.
TO: Chris Andresen
Dutko Grayling
FROM: Danny Baranowski, StudentFreelance Policy Analyst
DATE: 5 October 2011
RE: Secretary of Energy Advisory Board’s Shale GasProduction hearing
______________________________________________________________________
Introduction
The senate hearing focused onthe testimonies of the Shale Gas Production Subcommittee’s 90-day reportcentered on the environmental issues imposed by natural gas extraction. At thestart of the hearing, the chairman reiterated that the focus of the hearing wasprimarily to discuss the reality of hydraulic fracturing contamination andsuggestions for improvements to the status quo.
During hydraulic fracturing,water and sand make up about 99.5% of the substances that are pumped into theground. Only about .05% of the substances are chemicals. These chemicalsconsist of gelling agents (found in different foods), surfactants (similar todawn dishwashing soap), and biocides (similar to Clorox bleach). Thesechemicals are fairly harmless in the small doses that are being applied duringthe fracking process.
Hydraulic Fracturing has beenmade the media scapegoat for anything that goes wrong during the natural gasextraction processes. Fracking does not affect the drinking water (Dr. StephenA. Holditch). There is no question that Shell gas products can be developed ina manner that utilizes hydraulic fracturing and still protects the environmentwhile minimizing the negative impacts it has on surrounding communities.
Natural Gas extraction is anindustrial activity so there will be impacts on the environment, however, theseimpacts can be managed more adequately so that the impact is minimal. Thefluids released during fracking are unlikely to contaminate drinking water, however,the methane that is unleashed from the Shale Formation does have a possibilityof reaching drinking water resources.
There are current regulationsin place at the State level. In general, these regulations are being upheld andgetting the job done. Additional steps do need to be taken to continue toimprove the process, however, most states have processes in place for takingthose additional steps. The subcommittee panel advised that over regulating theprocess at the federal level could make things more difficult for potentialinvestors, lower the efficiency of the overall extraction process, and couldmove further away from the specific needs of the communities directlysurrounding the sites.
The subcommittee recommendedseveral changes to the extraction process that would yield both environmentaland economical dividends. They counseled that heeding their recommendationswould reduce the possibilities of methane contamination, increase efficiency,have economic upside, and improve the relationships between State and Federalregulators.
Proposed Legislation/budget changes
The Federal Government needsto invest money into STRONGER (State Review of Oil and Natural GasEnvironmental Regulations) and into companies that develop technology thataddress environmental issues. These investments would require relatively smallamounts of money and would pay a large return.
Regulatory Changes and Implementation
ResearchThere is a lack of data andmeasurements. There needs to be baseline data such as measurements in the waterprior to fracking, to compare to tested data during and after. There needs tobe a more complete measurement of air quality and water quality and the effectsof methane. For this extra research that needs to take place, it will requireadditional government funding.
InclusionIndustries should be requiredto list on a publically available website, the volume and composition of whatthey are pumping into the ground and for what is coming out of the well. Thereneeds to be disclosure transparency between companies and regulators.
TechnologyBy increasing the fundingtoward developing new technology, it should increase productivity andefficiency, therefore lowering the cost to extract. New technologies shouldfocus on removing impurities from water used during fracking so water can bereused and new technologies for capturing methane at well-completion instead ofventing, this will benefit the environment and allow for reuse of the methane.
ConservationThere is a need to discoverways to minimize the use of fresh water during fracturing.
EfficiencyPad Drilling is drilling intomultiple wells from one pad. Pad Drilling will use minimal amounts of land, itwill lower the environmental impact on surrounding communities, makes planningan easier task to manage, and allows for temporary pipelines to be used. PadDrilling should become a common practice at sites.
ProtectionThe most important step thatcan be taken to protect the workers, surrounding communities, and the environmentis to avoid gas leakage from the wells by constructing strong wells that havemultiple cement castings. This will prevent most of the issues that come withgas extraction.
Toneand Direction AnalysisThefocus of the Senators appeared to be directed toward the following:
- Understanding ifthe regulation should be handled at a state or national level
- Ensuring that theenvironment and that the surrounding communities are protected
- Taking intoaccount the interests of the companies involved
- Whether or notthe subcommittees report was accurate and reliable
Itappeared that the Senators did not disagree with the recommendations of thepanel to allow regulations to primarily take place at the state and locallevels and to keep the federal levels involvement small. The panel did a goodjob backing up claims that Hydraulic Fracturing did not pose a serious risk tohealth of the communities or environment. The Senate grilled the panel on thatclaim and appeared satisfied with their responses. The panel will release a moredetailed report in about 6-weeks. The EPA is also currently working on a fracturingreport that is separate from the subcommittees, but will not be released untilSpring 2014. It appeared that the Committee has every intention of making somechanges based on the findings, they do not seem to be sure of the accuracy ofthe current data, but I anticipate a lot of regulations changes as well a morestrict adherence to current regulations.
