State Environmental Agency Issues Draft Report on Hydraulic Fracturing; Public Meetings Scheduled for March 20 and March 27
RALEIGH
– Hydraulic fracturing can be done safely in North Carolina as long as
the right protections are in place prior to issuance of any permits for
the practice, according to a draft report issued today by the N.C.
Department of Environment and Natural Resources. The report also notes
the need for more information on groundwater resources in the area where
drilling for shale gas may occur before making final decisions on
environmental standards.
The
report issues the department’s findings following a study of the
potential environmental, social and economic impacts of shale gas
exploration and development in North Carolina. This study was directed
by Session Law 2011-276, which required DENR to study the issue of oil
and gas exploration in the state and to specifically focus on the use of
horizontal drilling and hydraulic fracturing to extract shale gas. The
draft report was issued today ahead of two public meetings scheduled for
later this month. The final report to the General Assembly is due May
1.
After
reviewing other studies and experiences in oil and gas-producing
states, the draft report concludes that hydraulic fracturing can be done
safely as long as the right protections are in place, prior to issuing
any permits for hydraulic fracturing in North Carolina. As part of the
draft report, DENR developed a set of initial recommendations in
consultation with the Department of Commerce in the event the General
Assembly acts to allow horizontal drilling and hydraulic fracturing in
North Carolina. The recommendations include:
· Collection of baseline data, including groundwater, surface water and air.
· Requirement
that oil and gas operators prepare and have a DENR-approved Water
Management Plan and limit water withdrawals to 20 percent of the lowest
stream flow that would be expected to occur for seven continuous days
once in 10 years, or the 7Q10 stream flow.
· Enhancement
of existing oil and gas well construction standards to address the
additional pressures of horizontal drilling and hydraulic fracturing.
· Development
of an oil and gas waste management regulatory program, as well as the
development of a state stormwater regulatory program for oil and gas
drilling sites.
· Development
of setback requirements and identification of areas (such as
floodplains) where oil and gas exploration and production activities
should be prohibited.
· Development of specific standards for management of oil and gas wastes.
· Requirement
of full disclosure of hydraulic fracturing chemicals and constituents
to regulatory agencies. And, with the exception of trade secrets,
requirement of public disclosure of hydraulic fracturing chemicals and
constituents.
· Prohibition of the use of diesel fuel in hydraulic fracturing fluids
· Assurance
that state agencies, local first responders and industry are prepared
to respond to a well blowout, chemical spill or other emergency.
· Development
of a modern oil and gas regulatory program, taking into consideration
the processes involved in hydraulic fracturing and horizontal drilling
technologies, and long-term prevention of physical or economic waste in
developing oil and gas resources.
· Location
of the environmental permitting program for oil and gas activities in
DENR where air, land and water quality permitting and enforcement
expertise is located.
· Determination
of the distribution of revenues from oil and gas excise taxes and fees
to support the oil and gas regulatory program, fund environmental
initiatives and support local governments impacted by the industry.
· Identification of a source of funding for repair of roads damaged by truck traffic and heavy equipment.
· Clarification of the extent of local government regulatory authority over oil and gas exploration and production activities.
· Completion
of additional research on impacts to local governments and local
infrastructure; and additional research into potential economic impacts.
· Determination
of the liability related to environmental contamination from the
industry, particularly for groundwater contamination.
Findings
from this draft report will be presented first in a public meeting to
be held at the Wicker Center in Sanford on March 20, 2012, from 6:30 –
9:30 p.m. The second public meeting has been scheduled for March 27,
2012, and will take place in the auditorium of East Chapel Hill High
School in Chapel Hill from 6:30 – 9:30 p.m. Both meetings will also be
streamed live online at https://its.ncgovconnect.com/denr_shale_gas/.
The
same information will be presented at both meetings, and public
comments will be accepted at both meetings as well as via mail and
email. Written comments on the draft report will be accepted through
April 1, in addition to any feedback received at the two public
meetings. Written comments can be sent via email to Shale_gas_comments@ncdenr.gov; or through the mail to NCDENR, attn: Trina Ozer, 1601 MSC, Raleigh, NC 27699.
The
draft report can be found online on a website that NCDENR created to
provide an overview of the shale gas issue; describe current regulations
associated with shale gas exploration; explain how the department will
study the issue (and provide study results when complete); and guide the
public in how to receive updates on the study, as well as how to
provide comment on the issue. This website can be found by visiting
DENR’s home page – www.ncdenr.gov – and clicking on the “Shale Gas” tab near the center of the page, and then clicking on the "DENR Study" link on the left side of the page.
