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.
