1. Natural Gas A Maryland Perspective
AGA Conference
May 1, 2012
Brigid Kenney, Sr. Policy Advisor
MD Department of the Environment

2. Federal / State Partnership
States are the primary regulators of onshore oil and gas activities
The federal government has an important role in natural gas regulation
Regulating public lands
Supporting research and development
Setting environmental standards to implement federal law and augment state safeguards

3. Recent Federal Actions
EPA issued updated, achievable air pollution standards for oil and natural gas
EPA, DOI and DOE entered into MOU to align their research related to fracking
Secretary LaHood announced fast tracking of pipeline project
Executive Order establishing a new interagency working group

4. Functions of Working Group
Coordinate policy activities
Coordinate the sharing of scientific, environmental, and related technical and economic information
Engage in long-term planning and coordinate with respect to research, natural resources assessment, and the development of infrastructure
Promote interagency communication with stakeholders

5. The Marcellus Shale
Found throughout the Allegheny Plateau region of the northern Appalachian Basin
In Maryland, it is found in Garrett County and part of Allegany County
Recovering gas from the Marcellus became economically feasible
Advances in horizontal drilling and hydraulic fracturing
Higher wellhead prices for gas, but prices have fallen

6. State Approaches
Pennsylvania
West Virginia
Ohio
New York
Maryland

7. MDE Gas Well Permit
A permit is required before the drilling of any gas well
MDE has broad statutory authority to impose reasonable and appropriate permit conditions to protect public safety and the State’s natural resources
Regulations establish application requirements and the criteria for constructing and operating gas wells
Have not been amended since 1993
Not specific to Marcellus Shale, horizontal drilling or high volume hydraulic fracturing

8. Gov. O’Malley’s Executive Order
June 2011
Directs MDE and DNR, in consultation with an Advisory Commission, to conduct a study and issue reports on:
the short-term, long-term and cumulative effects of natural gas exploration in the Marcellus Shale
Best practices
Appropriate changes, if any, to the laws and regulations concerning oil and gas

9. In Addition to Best Practices
Economic Impacts
Cumulative Environmental Impacts
Forest fragmentation
Invasive species
Public Health and Safety Concerns
Social and Cultural Issues

10. Electricity Generation
Need for more electricity
Retiring coal-fired generation stations
Public concerns about nuclear power
Limitations on wind and solar

11. Implications for Global Warming
Natural gas has a lower carbon per unit energy than coal or oil
Methane is a more potent greenhouse gas than carbon dioxide (CO2), and has about a 12 year lifetime
Releases of methane (CH4) could offset the benefits of fuel switching
Need to get better CH4 emissions data and reduce leakage

12. Recent PNAS Paper At the current estimates of leakage rates
Switching from coal to natural gas to produce electricity has immediate and lasting benefits
Converting cars to compressed natural gas increases radiative forcing for 80 years before there is a net benefit
Converting heavy duty diesel vehicles increases radiative forcing for 300 years before there is a net benefit

13. What We Need Frank communication with E&P firms
Fracking chemicals
Incident investigations/Lessons learned
Better data on methane emissions
Water quality criteria for conductivity, dissolved solids and salinity in freshwater
Pretreatment standards for fracking flowback
More science, less emotion