Hydraulic Fracturing and Groundwater Quality Keith B. Hall Louisiana State University Law School Baton Rouge, Louisiana United States +1 (225) IUCNAEL Colloquium Tarragona, Spain *** July 2, 2014

Surface Drill site well bore drainage

Hydraulic Fracturing Surface Drill site well bore fractures

U.S. Natural Gas Production 4

U.S. Crude Oil Production 5

Main environmental concerns 1.Water use and source for water 2.Groundwater contamination fears 3.Disposal of wastewater (flowback) 4.Air issues (venting of natural gas) 5.Local inconvenience issues 6.Induced seismic activity

Debate Over Fracturing Public’s biggest concern is groundwater quality Debate is highly polarized Focus of debate is not on differing opinions regarding how to balance economic development vs. environmental protection 7

Debate Over Fracturing Focus of debate is whether hydraulic fracturing poses much risk to groundwater. Supporters of process say there is very little risk Some opponents say there is substantial risk 8

Two Questions Why does disagreement about level of risk persist? What can be done about it? 9

Two Questions Why does disagreement about level of risk persist? Different terminology Lack of data What can be done about it? 10

Terminology Hydraulic fracturing is one step in the process of drilling and completing some oil and gas wells But some people use “hydraulic fracturing” or “fracking” to refer to the entirety of oil & gas exploration and development process This use of terms is incorrect, it causes confusion, and should be avoided. 11

What is the “lack of data” issue? Hydraulic fracturing was developed in late 1940s Since then, more than one million wells have been hydraulically fractured There are few, if any, documented cases of hydraulic fracturing contaminating groundwater 12

Lack of Data Hydraulic fracturing was developed in late 1940s. Since then, more than one million wells have been hydraulically fractured There are few, if any, documented cases of hydraulic fracturing contaminating groundwater But there is relatively little actual data showing groundwater quality both before and after oil and gas activity 13

What is a partial solution? Baseline testing of groundwater quality should be performed prior to conducting oil and gas drilling or before fracturing 14

How would testing come about? Can be done voluntarily by Individual landowners Oil and gas companies Researchers Or, states can require companies to perform baseline testing 15

Benefits of Baseline Testing Baseline testing can help  Inform the public debate, improve the bases for regulatory and policy decisions  Preserve social license to operate  Resolve/avoid individual disputes regarding alleged contamination  Identify pre-existing water problems 16

Expense Per Sample Petroleum Association of Wyoming estimated about $1950 to identify sample location, collect sample, and pay for an analysis without isotopic testing for methane or $2500 per sample with isotopic testing. Pennsylvania study showed water well owners paid a median cost of $353 and a high end cost of $1640, but that they typically paid for a less comprehensive analysis than oil and gas companies did. 17

States with Baseline Testing Rules Alaska California Colorado Illinois North Carolina Pennsylvania West Virginia Wyoming 18

Disclosure of Composition Fracturing fluids are composed of Base fluid (typically water) Proppants (sand is most common) Additives Typically, the fracturing fluid is about 98 to 99.5% base fluid and proppants.

Types of Additives Corrosion inhibitors Biocides Friction reducers Scale inhibitors Crosslinkers Breakers Iron control agents Acids Surfactants pH adjusters Oxygen scavengers Gels

Mandatory Disclosure Alabama Alaska Arkansas California Colorado Idaho Illinois Indiana Kansas Louisiana Michigan Mississippi Montana New Mexico N. Dakota Ohio Oklahoma Penn. Texas Utah W.Virginia Wyoming

Rotary Drilling Rigs Operating in U.S. as of June 20, 2014 Location # of Rigs (based on Baker Hughes website data) % of Total Rigs % of Rigs Not in OCS Waters States with Mandatory Disclosure %99.8% States Without Mandatory Disclosure 40.2% 0.2% Federal OCS Waters 593.2%N/A

Fayetteville Shale Study U.S. Geological Survey and Duke University personnel conduct study Lacked baseline data, but compared sample data to multiple analogous sources found “no indication of systemic, regional effects” from shale gas activity 23

Rural Pennsylvania Study Penn State researchers Had before-and-after samples “no statistically significant increases in methane levels after drilling” “statistical analyses of post-drilling versus pre-drilling water chemistry did not suggest major influences from well drilling or hydrofraturing (fracking) on nearby water wells” 24

The Duke University Studies Duke University researchers Did not have before-and-after data Did not find any evidence of fracturing fluids in water wells Found methane in most water wells, regardless of proximity of gas drilling But they found, on average, higher methane concentration in water wells near gas wells The researchers opine that poor construction of gas wells is most likely culprit 25

Oil & Gas in the Energy Equation In 2013, oil and gas supply 63% of U.S. energy 55% of world energy In 2040, oil and gas will supply 55% of U.S. energy 51% of world energy Estimates and projections from U.S. Energy Information Administration 26

Non-Energy Uses of Oil & Gas Lubricants Fertilizers Plastics Synthetic rubber Petrochemicals 27

Oil and Gas Production U.S. is one of top three (and possibly the largest) producer of oil U.S. is the top producer of natural gas By some estimates, 90% of new wells in the U.S. are hydraulically fractured Hydraulic fracturing is used outside U.S., though not as frequently There is growing interest in using hydraulic fracturing in shale formations outside U.S. 28

Keith B. Hall LSU Law School Baton Rouge, Louisiana +1 (225)