1. “(1) CLEAN ENERGY.—The term ‘clean energy’ means electric energy that is generated— (A) at a facility placed in service after December 31, 1991, using— (i) renewable energy; (ii) qualified renewable biomass; (iii) natural gas; (iv) hydropower; (v) nuclear power; or (vi) qualified waste-to-energy;” Sen. Bingaman Introduces Clean Energy Standard Act of 2012 1

2. But Production of Natural Gas from Shale Formations Produces Unacceptable Risks to… Both Underground and Surface Sources of Drinking Water, and Acceleration of Climate Change 2

3. Shale Gas Production Requires 100’s of Thousands of New Wells 3 Here is one of hundreds of failed wells in PA. There is an unacceptable rate-of-failure to contain hydrocarbon migration

4. “Since the earliest gas wells, uncontrolled migration of hydrocarbons to the surface has challenged the oil and gas industry.” Brufatto et al., Oilfield Review, Schlumberger, Autumn, 2003 SCP=Sustained Casing Pressure. Also called sustained annular pressure in one or more of the casing annuli. 4 About 5% of wells fail soon More fail with age Most fail by maturity

5. PA DEP Compliance Database: 121 Violations for Methane Migration in 2011 5 http://www.depreportingservices.state.pa.us/ReportServer/Pages/ReportViewer.aspx?/Oil_Gas/OG_Compliance 1,454 wells drilled in 2010. 90 well failures. 6.2% rate of failure. 1,937 wells drilled in 2011. 121 well failures. 6.2% rate of failure. Consistent with previous industry data, and not improving.

6. (Howarth et al. 2012, based on 2011 EPA data for 2009) 6 Natural Gas Systems Now Produce 39% of Total U.S. Methane Emissions Methane contribution to entire greenhouse gas inventory

7. 7 Howarth & Ingraffea, Nature, 15 September 2011

8. Why Is Controlling Methane (CH 4 ) Emission So Important? 8 Shindell, et al. Science 335, 183 (2012)