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Listed below are 8 proposed rule changes to the Regulation regarding Oil and Gas Drilling in Virginia. The focus is on natural gas recovery via fracking. Given the potential long-term effects of this type of dirlling and recovery the regulatory process needs to be tightened up significantly.
Proposed Rule Change 1: Permit applicant must disclose the method of gas recovery (a.k.a. fracking method) to be used for the designated well site (singular well site, not to be confused with multiple well sites on the same property or multiple property sites), including the means of environmental controls for both initial drilling, recovery, remediation, and end of life operations. If applicant changes the intended method of gas recovery after the initial application has been submitted, then the permit application must be changed to reflect the new method and the applicant must then render within a set period of time all of the required information and certifications for the new method or the permit shall not be approved. No permit shall be approved until the recovery method has been identified and described in detail. Only one method of gas recovery shall be allowed per permit application.
If the applicant wishes to change the method of recovery after the permit has been approved, then the permit is suspended until the new process and all attendant information and certifications are rendered to DMME and local authorities for proper review. A timetable shall be established for this case.
If the applicant has begun site work and wishes to change the gas recovery method, then upon formal notification to the local authorities and DMME all site work shall cease and desist with the exception of that work which secures the well site for environmental preservation and remediation purposes until the new method is review for approval or denial. If the method change is approved, the permit holder shall proceed in accordance with the new permit plan. If denied, the permit holder may proceed with the original approved method or immediately declare the well site “non-functional” and begin end of life well remediation and security work to close the well site down.
The intent of this rule change is to allow the permit applicant to detail their desired method of operation, include environmental controls as part of the application facilitating review by other state and federal regulatory agencies, and to forbid after the fact changes that were not briefed or expected by the local community where the well site is located.
Proposed Rule Change 2: For natural gas recovery operations, the permit applicant must disclose the full details of the working process, including chemical and physical descriptions the individual components of the intended working fracking fluid (i.e., carrier fluid(s), proppants, chemical additives, etc.), their expected volumes fraction and concentrations shall be disclosed to the DMME and local approval authorities on the permit application, with set tolerance limits for each component. DMME or the local approval authority may accept the submitted composition profile as is or restrict certain elements further during the application process. If the permit holder desires to change the composition of the working fluid
The intent of this rule change is to force disclosure the fluids planned for use at the well site to facilitate proper risk analysis and assessment by the state and local regulatory and approval authorities.
Proposed Rule Change 3: If the desired method is not compatible with any of the local well site’s geology components throughout the entire drilling and recovery site profile the permit shall be denied until such time an acceptable method is submitted for approval. This does not abrogate the right of the DMME or the local approval authority to deny permits for acceptable methods. Compatibility shall be determined by the Virginia regulatory authorities, including but not limited to DMME and the DEQ.
The intent of this rule is to restrict permit applications to those which are deemed compatible with the local well site geology and vicinity. This is to reduce both the number of “sight-unseen” permit applications that do not have proper knowledge of the leased sites and to prevent gas recovery methods that pose a high risk of either short- or long-term impacts to the local community and environment from being used.
Proposed Rule Change 4: At end of life for the well site, end of life being when the operator has completed drilling and gas recovery operations and is preparing to shut the well site down, the well bore shall be evacuated and filled with an appropriate solid set material such as Ultra High Performance Concrete (UHPC). The fill shall extend into the gas recovery substrate sufficiently to seal the end of the well bore. The bore itself shall be filled with minimal voids from the recovery zone to the well head.
The intent of this rule is to reduce the risk of environmental impact from seismic or other events which may compromise the well bore casing after the well is done operating. This process will add cost but will reduce or eliminate the risk of up-flow from the recovery zone of undesired produced water or other environmental contaminants, maintain a plugged and near 100% sealed bore, and prevent pollution of aquifers or other sensitive geological strata down the length of the well bore in the event that the well bore casing is structurally compromised.
Proposed Rule Change 5: The parties in partnership shall be responsible for the safe and secured well site and well bore into perpetuity if the well bore intersects with an aquifer.
Proposed Rule Change 6: The permit applicant shall disclose in each permit all parties in partnership to the permit applicant that: 1) have a financial stake or investment in the process, including any and all partners both public, private, active, silent, corporate, non-government agency or association, or individual 2) stand to gain financially with or without an actual financial stake or investment at risk, 3) members of the state and local review and approval authorities that are in line to influence the permit process and have a financial, familial, legal, or other conflict of interest, 4) operator and sub-contractors legally bound to the operator, and 5) involved with leasing the mineral rights of the designated well site property, including the property owner(s). If a party to the permit changes during the application process or is added or deleted after the fact, that party shall be added or deleted as required from the list of parties in partnership.
This rule change is intended to disclose any and all partners involved in the leasing, application, preparation, operation, exploitation (including transportation of supplies and product), and sale of the recovered product. While many will be private companies or individuals, the well sites can affect the livelihoods of many private citizens and other private companies even after the well site is closed down and thus proper identification of those required for legal redress is desired.
Proposed Rule Change 7: The permit, if approved, is not transferable to another permit holder without a full review of the current well site conditions, present liens or ending legal action. DMME or the local authorities may deny the transfer. Transfer due to acquisition, merger, etc., must be approved after formal review. If transferred, the permit will list the proper deletions and additions of the updated set of parties in partnership.
This rule change is intended to disclose any and all partners involved in the leasing, application, preparation, operation, exploitation (including transportation of supplies and product), and sale of the recovered product. While many will be private companies or individuals, the well sites can affect the livelihoods of many private citizens and other private companies even after the well site is closed down and thus proper identification of those required for legal redress is desired.
Proposed Rule Change 8: Falsification, deliberate destruction, or alteration of documents, media products, paper and electronic records relating to the permit process, parties in partnership, operation, method used and fluid composition, and end of life operations to secure the well site shall be grounds for voiding the permit, barring the applicant from further applications, and possible civil and criminal penalties.
The Virginia Oil and Gas Association (VOGA)[i] supports the role of the Virginia Department of Mines, Minerals and Energy (DMME) in regulating natural gas production in Virginia, including production methods involving hydraulic fracturing. Virginia’s regulations are among the toughest in the nation and for many years have been fully and consistently enforced by DMME for the protection and benefit of Virginia’s citizens and in a manner that has allowed the successful and safe production and development of this resource which is increasingly crucial in meeting the significant energy needs of the Commonwealth and our nation.
VOGA recognizes and respects the increasing public desire for transparency regarding the chemicals used in the hydraulic fracturing process. VOGA supports full disclosure of the chemicals used in hydraulic fracturing and therefore recommends that DMME adopt a requirement that all operators using a hydraulic fracturing process in Virginia be required to participate in FracFocus, the national hydraulic fracturing chemical registry.
FracFocus is a publicly available website created to provide public access to location specific information on chemicals used for hydraulic fracturing.[ii] To help users put this information into perspective, the site also provides objective information on hydraulic fracturing, the chemicals used, the purposes they serve and the means by which groundwater is protected. The primary purpose of this site is to provide factual information concerning hydraulic fracturing and groundwater protection.
FracFocus is managed by the Ground Water Protection Council and Interstate Oil and Gas Compact Commission, two organizations whose missions both revolve around conservation and environmental protection.
FracFocus is already used by ten states as a means of official state chemical disclosure: Colorado, Oklahoma, Louisiana, Texas, North Dakota, Montana, Mississippi, Utah, Ohio and Pennsylvania.
A requirement that Virginia operators participate in FracFocus will ensure the availability of information valuable to Virginia citizens and others without cost to the Commonwealth and without taxing the resources and staffing of DMME which can be better put to use in fulfilling its other regulatory responsibilities.
DMME has overseen the permitting and regulation of natural gas extraction in Virginia, including hydraulic fracturing processes, in a manner that has protected Virginia and its citizens while also promoting the economic benefits arising from the development of this valuable natural resource. DMME, in coordination with other state and Federal agencies, is uniquely qualified to regulate all aspects of the permitting and enforcement programs including hydraulic fracturing.
A requirement for operators to participate in FracFocus is entirely consistent with DMME’s ongoing efforts to ensure that best practices are incorporated into Virginia’s regulations, as has been its practice since the agency was formed. VOGA supports such a requirement.
[i] The Virginia Oil and Gas Association is a non-profit trade association representing the interests of companies, partnerships, individuals and other entities having an interest in the oil and gas industry and who are primarily engaged in the exploration, production, development, transportation and distribution of natural gas and oil in Virginia. These clean, dependable, affordable and domestic energy resources are vitally important to our nation’s energy independence and economy. The Virginia Oil and Gas Association supports and encourages the development of these resources in a safe and environmentally sound manner and its member companies daily demonstrate the ability to do so.
[ii] FracFocus contains the following information as to each reported hydraulic fracturing site:
1. Fracture date: This is the date on which the fracturing associated with the record occurred.
2. State: The name of the state in which the surface location of the well is located.
3. County: The name of the county within the state.
4. API Number: This number is assigned under a system developed by the American Petroleum Institute. API numbers are formatted as nn-nnn-nnnnn-nn-nn with the first 2 numbers designating the state, the second 3 numbers designating the county within the state and the next 5 numbers designating the particular well within the county. When present, the next 2 numbers are a directional sidetrack code to designate the number of horizontal or directional offshoots from a single vertical borehole and the final 2 numbers are an event sequence code used to designate multiple activities conducted at a single well such as recompletion, treatment etc… (A list of the state and county codes can be found at http://www.spwla.org/technical/api-codes) ‡
5. Operator Name: This is the name of the company.
6. Well Name: This is typically the name of the property owner on whose land the well is located. In the case of multiple property owners pooled under a single unit, the name of the majority property owner is often used. The number on the well may designate the chronological sequence of wells drilled. (Example: The Smith #2 might designate the second well drilled on the Smith lease). However, this is not a universal naming convention.
7. Longitude: This the east-west coordinate location of the well on the earth in degrees, minutes and seconds.
8. Latitude: This is the north-south coordinate location of the well on the earth in degrees, minutes and seconds.
9. Latitude/ Longitude Projection: This is the particular projection method for the Latitude/ Longitude (e.g. North American Datum (NAD) 27 or 83).
10. True Vertical Depth: This is the absolute depth of the well measured from the surface to the deepest point of penetration.
11. Total Water Volume: This is the total amount of water in gallons used as the carrier fluid for the hydraulic fracturing job. It may include recycled water and newly acquired water.
12. Production Type: This designates the well type (e.g. Oil, Gas) In addition to the general information shown above, each record contains information about the specific chemicals used during the fracturing process.
The following is a list of the chemical information shown on the fracturing record:
1. Trade Name: This is the name of the product designated by the supplier.
2. Supplier: This is the name of the service company that supplied the product (e.g. Schlumberger, Halliburton).
3. Purpose: This is the function served by the additive (Trade Name) in the fracturing process (e.g. surfactant, biocide etc…).
4. Ingredients: This is the scientific name of the chemical (e.g. Ethanol, Naphthalene etc…)
5. Chemical Abstract Service ‡ or CAS Number: This is a number assigned by a division of the American Chemical Society for the purpose of identifying a specific substance. You can learn more about the toxicity characteristics of chemicals by searching for the chemical using the name or CAS number on the USEPA National Center for Computational Toxicology ‡ website. USEPA also maintains a Drinking Water Hotline that is available Monday-Friday from 8:30 AM-4:30 PM Eastern time at 1-800-426-4791.
6. Ingredient Percentage in Additive by % Mass: This describes the amount of ingredient within the additive (Trade Name) as a percent of the total mass of the additive7. Ingredient Concentration in HF (Hydraulic fracturing) fluid % by mass: This describes the amount of ingredient as a percent of the total mass of the HF fluid including carrier fluid and additives.
7. Ingredient Concentration in HF (Hydraulic fracturing) fluid % by mass: This describes the amount of ingredient as a percent of the total mass of the HF fluid including carrier fluid and additives.
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