1. Hydraulic Fracturing in the Ohio River Basin

2. –Conventional vs. nonconventional (continuous) Overview of Hydraulic Fracturing

4. +/- 5 million gallons used to hydraulically frac a single well. +/- 5 million gallons used to hydraulically frac a single well. Much of the frac water returns to surface in short timeframe. Much of the frac water returns to surface in short timeframe. Marcellus return flows are high in total dissolved solids & bromide. Marcellus return flows are high in total dissolved solids & bromide. Primary concerns are: Primary concerns are: 1)Disposal of high conc. TDS return flows. 2)Surface water withdrawals.

6. Horizontal Wells Issued to Date 3/12/2013

7. Natural gas use in the electric power generation will grow 26% from 2009 to 2035 Natural gas use in the electric power generation will grow 26% from 2009 to 2035 Natural Gas Projection – Electricity Production

8. There are currently (3/12/2013) 6,634 horizontally drilled wells in OH, WV, & PA There are currently (3/12/2013) 6,634 horizontally drilled wells in OH, WV, & PA How many more wells can we expect? Shale Play Area (square miles) Average well spacing (wells per square mile) Percent of area untested Percent of area with potential Average EUR (billion cubic feet per well) Number of Potential wells TRR (billion cubic feet) Marcellus 104,067 5 99 18 1.56 90,216 140,565 Utica 16,590 4 100 21 1.13 13,936 15,712 A total of 104,152 wells will be needed to extract the natural gas, with 6,634 already in play, 97,518 more wells could be drilled. Nearly 15 times more

10. What are the Water Quality Concerns ? Water quality issues relating to disposal of flowback water seem to be diminished. Water quality issues relating to disposal of flowback water seem to be diminished. –Reuse and non-surface water disposal. ORSANCO recently established a TDS standard of 500 mg/L for Ohio River. ORSANCO recently established a TDS standard of 500 mg/L for Ohio River. Radionuclides – Minimal monitoring effort found no detections in upper river. Radionuclides – Minimal monitoring effort found no detections in upper river. Evaluating need for Bromide criterion Evaluating need for Bromide criterion –Pittsburgh Water was having issues. USEPA looking at trace additives. USEPA looking at trace additives.

11. Status of Disposal of Flowback Water WV – 81% of Frac Water is reused, 18% sent to Underground Injection Well, 1% other WV – 81% of Frac Water is reused, 18% sent to Underground Injection Well, 1% other PA – 99% reused, Underground Injection Well, industrial water treatment facility. PA – 99% reused, Underground Injection Well, industrial water treatment facility. OH – Sent to Underground Injection Wells or Reused OH – Sent to Underground Injection Wells or Reused

12. Status of State Regulations

13. Ohio DNR Division of Mineral Resources Mgnt Withdrawals – Withdrawals – –Must register for capacities > 100,000 gal/d –Obtain permit for capacities > 2,000,000 gal/d –Registration does not impose any restrictions. Disposal – Disposal – –Must be sent to Class II disposal wells or reused unless granted exemption. –City of Warren had been accepting flowback water; OEPA disallowing in their permit. Water well sampling required within 1500ft of well. Water well sampling required within 1500ft of well. Out of Basin Diversions > 100,000 gal/mo. requires permit. Out of Basin Diversions > 100,000 gal/mo. requires permit.

14. PADEP Bureau Oil & Gas Mgnt Withdrawals – Withdrawals – –Mandatory water management plans. –No restrictions on withdrawals < 10% of stream low flow. –Must establish pass-by flows for withdrawals > 10% of stream low flow. Multiple methodologies available. Multiple methodologies available. –SRBC & DRBC regulate withdrawals in PA. Disposal – voluntary program Disposal – voluntary program Contracting with nature conservancy to establish ecosystem flows for Ohio Basin; already completed for SRBC. Contracting with nature conservancy to establish ecosystem flows for Ohio Basin; already completed for SRBC.

15. Ohio Basin Ecological Flow Study The Nature Conservancy project for PADEP in Ohio Basin. The Nature Conservancy project for PADEP in Ohio Basin. What are the variety of hydroecological settings in the basin? What are the variety of hydroecological settings in the basin? Within each setting (type), how do flow conditions affect species and ecological processes throughout the year? Within each setting (type), how do flow conditions affect species and ecological processes throughout the year? What range of flows would protect these species and ecological processes? What range of flows would protect these species and ecological processes? Manage flows based on ecological protection. Manage flows based on ecological protection.

16. West Virginia DEP Office of Oil & Gas Water Mgnt Plan required if using > 210,000 gpmo. Water Mgnt Plan required if using > 210,000 gpmo. Withdrawals & Disposal: Where, when, how much. Withdrawals & Disposal: Where, when, how much. Withdrawals Withdrawals –Demonstration of sufficient instream flows to protect stream designated uses. –ID methods used to minimize aquatic life impacts. Disposal Disposal –No land disposal; WVDEP approval for WWTP disposal. –Quanitity, disposal locations, name hauling company. Online Water Withdrawal Guidance tool. Online Water Withdrawal Guidance tool.

17. Questions? Jason Heath, P.E., BCEE Technical Programs Manager & Assistant Chief Engineer jheath@orsanco.org www.orsanco.org