1. Dr. Jim Thomas Desert Research Institute
“Fracking In Nevada”
Dr. Jim Thomas
Desert Research Institute

2. “Fracking in Nevada”
Noble Energy is first company to do unconventional (hydraulic fracturing: “fracking”) oil exploration in Nevada Nevada Division of Mining is the state regulator for oil exploration in Nevada Nevada Division of Environmental Protection is state regulator for water quality

3. http://www. nobleenergyinc

4. Typical Life Cycle of Nevada Well
Site Preparation: 30 − 60 Days
Drilling:
Typical development wells take 7 – 14 days
Exploration wells may take up to 60 days
Hydraulic Fracturing: 2 − 3 Days
Evaluation of Facility Build: 30 − 60 Days
Long-term Production: 20 − 30 Years
Life of Well
7 – 60 days
2-3 days

5. Image source: www.cred.org

6. Conventional Reservoirs:
Oil and gas get generated in the Shales, then migrates until it hits a permeability barrier, where it is trapped. If the Porosity and permeability of the rocks are sufficient, wells can be drilled to recover the hydrocarbons.
Unconventional Reservoirs:
Oil and gas generated in the shales, but can’t all migrate away since permeability is very low.
Image source:

9. OIL PRODUCTION & ACTIVITY IN NEVADA
Field: bbls oil
Eagle Springs 39,819
Trap Spring ,909
Bacon Flat ,447
Currant
Grant Canyon ,517
Kate Spring ,401
Duckwater
Sans Spring ,318
Ghost Ranch ,231
Sand Dune ,567
Total RR Valley 291,522
Blackburn ,392
Tomera Ranch ,757
Total Pine Valley 44,149
Total Nevada , % from 2012

10. 7 OIL EXPLORATION
WELLS DRILLED
4 treated with HF
5 GEOTHERMAL
EXPLORATION OR
PRODUCTION

11. FOUR AGENCIES CAN BE INVOLVED WITH DRILLING AN OIL WELL IN NEVADA
BLM – drilling on Federal lands, leasing process, NEPA process
NDEP – Air permits for surface area disturbance,
UIC permits if water is to be re-injected, water
pollution control permits if water is to be discharged
outside of containment.
NDOM – Permits to drill on private/state lands, coordinates w/ BLM for drill permits on Federal lands.
NDWR – For any water used in drilling, dust control or hydraulic fracturing

12. SB 390 NRS 522.119 NRS 522.119 Development of program; regulations.
The Division of Minerals and the Division of Environmental Protection shall, jointly, develop a hydraulic fracturing program.

13. NRS 522.119 (SB390) Program to be developed by July 1, 2014
Regulations to implement the program to be adopted by January 1, 2015

14. DEVELOPMENT OF REGULATIONS
Reviewed regulations of 32 current oil-producing states
Reviewed BLM proposed rule on hydraulic fracturing
Utilized Interstate Oil and Gas Compact Commission (IOGCC) resources on HF
Staff discussed what works and what does not with regulators in Arkansas, California, Colorado, Kansas, North Dakota, Ohio, Pennsylvania, Texas and Utah.
Borrowed portions of “rule 609” from Colorado’s recent update: water well sampling.
Benchmarked regulatory elements with other States
Comments from public workshops in March in CC, Elko, LV

15. HOW PROGRAM AND REGULATIONS ADDRESS SB390
(a) Assess the effects of hydraulic fracturing on the waters of the State of Nevada
Permit application to include 1-mile radius Area of Review (AOR)
Groundwater baseline sampling and monitoring of up to 4 available water sources within one mile radius of proposed well by operator before, and twice after HF treatment
Source-control monitoring of well bore
Aqua Study at DRI

16. Well construction regulations

17. HOW PROGRAM AND REGULATIONS ADDRESS SB390
(b) Require a person who engages in hydraulic fracturing to disclose each chemical used to engage in hydraulic fracturing;
Division has approved list of HF chemicals on web site:
30-day approval process for additions to list
Division can deny use of any chemical proposed if deemed unsafe
Operator to post information and chemicals used on a publically-available chemical disclosure registry

18. HOW PROGRAM AND REGULATIONS ADDRESS SB390
(c) Provide for notice to members of the general public concerning activities relating to hydraulic fracturing in this state
Approved Applications for Permit to Drill (APD’s) and Conditions of Approval (COA’s) on Division web site:
14-day notification to land owners, county commission and Division prior to HF by operator