1. Hydraulic Fracturing in Virginia
Michael A. Skiffington
Policy and Planning Manager
Virginia Department of Mines, Minerals and Energy
League of Women Voters
Richmond, VA – October 27, 2016

2. ORGANIZATIONAL CHART DA = Administration DE = Energy DGMR = Geology
DGO = Gas & Oil
DM = Mine Safety
DMM=Mineral Mining
DMLR= Mined Land Reclamation

3. DMME’s MISSION
We enhance the development and conservation of energy and mineral resources in a safe and environmentally sound manner to support a more productive economy.

4. DMME STRATEGIC PLAN Goal 1: Goal 2: Goal 3:
Provide for safe and environmentally sound mineral and energy resource production.
Goal 2:
Encourage economic development through our customers’ wise management of Virginia’s resources.
Goal 3:
Enable DMME personnel to perform at their full potential.

6. 2015 Gas Production in Virginia

7. 2015 Producing Gas Wells in Virginia

8. Trend of Horizontal Wells Number of Producing Wells

9. WHAT IS HYDRAULIC FRACTURING?
Involves the use of pressurized liquids or gases such as nitrogen to stimulate or fracture rock formations to release the natural gas or oil.
The composition and volume of fluids used depend on many geological factors.

10. WHAT IS HYDRAULIC FRACTURING?
Sand is often pumped in with the fluids to help prop the fractures open.
Fracturing, along with horizontal drilling, has made previously inaccessible natural gas and petroleum resources producible in economic quantities.
The application of these technologies has greatly expanded U.S. oil and natural gas production over the past ten years.

12. FRACKING IN VIRGINIA
Technique has been utilized in the Commonwealth since the 1960s.
Over 8,000 wells have been fracked in Southwest Virginia.
There have been no documented instances of surface or groundwater degradation from fracking in Virginia.

13. FRACKING IN VIRGINIA
Hydraulically fracked wells in Virginia typically require 0-300,000 gallons of water.
Increasingly, operators are utilizing nitrogen- based foam to frack wells.
By contrast, fracked wells in the Marcellus shale can use 4-5 million gallons of water.

14. REGULATORY UPDATE
A comprehensive re-write of the regulations began in 2007 and was completed in 2013.
In the fall of 2013, DMME initiated a new regulatory action to review its requirements for drilling.
Chemical disclosure requirements
Review of selected industry best practices
Review to determine if additional requirements are necessary for different regions of the Commonwealth

15. NOIRA STAGE
The Notice of Intended Regulatory Action was published on January 13, 2014.
DMME received over 200 comments during the 30 day public comment period.
These comments supported disclosure of ingredients used in fracturing process.

16. PUBLIC/STAKEHOLDER INVOLVEMENT
DMME formed a Regulatory Advisory Panel (RAP) to offer recommendations in selected areas.
Wide variety of stakeholders involved.
DEQ
DGIF
Local government
Environmental community
Gas Industry

17. RAP MEETINGS Six meetings were held between June 2014 and January 2015
Public meetings across the Commonwealth
Three in Richmond
Two in Southwest Virginia (Abingdon, Lebanon)
One in King George County (Dahlgren)

18. RECOMMENDATIONS
The RAP offered 14 recommendations addressing the following areas:
Chemical disclosure
Groundwater protection
Well integrity
Drilling in different regions of the Commonwealth

19. HIGHLIGHTS All 14 recommendations have been incorporated.
Additionally, the proposed regulations codified an existing Memorandum of Agreement between DMME and DEQ related to potential future activity in Tidewater.

20. PROPOSED STAGE
Draft proposed regulations were submitted for executive branch review in April 2015.
Proposed regulations were published in October 2015.
60 day comment period opened.

21. PROPOSED STAGE DMME held three hearings to accept public comment.
Richmond
Lebanon
Dahlgren
DMME received over 1,000 comments during the comment period.

22. FINAL STAGE
Final regulations are currently under executive branch review.
Department of Planning and Budget
Secretary of Commerce and Trade
Governor’s Office

23. FINAL STAGE
Once approved by the Governor’s Office, the final regulation will be published in the Register.
Becomes effective after a 30 day final adoption period.

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25. Thank You!
Michael A. Skiffington DMME Policy and Planning Manager on.shtml