Marcellus Shale A Pennsylvania – Land Trust Perspective

1. Marcellus ShaleA Pennsylvania – Land Trust Perspective

2. Presentor Mr. Brian Oram, PG Professional Geologist, Soil Scientist, PASEO, Certified Geothermal Installer, Licensed Well Driller Wilkes University Center for Environmental Quality http://www.water-research.net

3. Project Sponsors • Wilkes University http://www.wilkes.edu • Pocono Northeast Resource Conservation & Development Councilhttp://www.pnercd.org • C-SAW Program - Consortium for Scientific Assistance to Watersheds Program http://pa.water.usgs.gov/csaw/

4. Center for Environmental Quality Non-profit/ equal opportunity employer, is operated and managed, within the Department of Environmental Engineering and Earth Sciences at Wilkes University Outreach Programs • Environmental and Professional Education and Training • Applied Research • Community and Business Outreach Programs Website: http://www.water-research.net

5. What the NBLT Does? • Preserve the Beauty and Open landscapes that Sustain Us. • It is a Conservation Organization • Preserve Property, Promote Healthy Communities • Develop Long-Term Grow Strategies • Accomplish Mission through – donation of land or development rights/subdivision rights or direct purchase of development rights.

6. How Do You Manage or Maintain these Valuable Assets? • Donations, Fundraisers, Grants • Do you timber harvest? • Do you harvest or grow biofuels? • Do you permit hunting, fishing, or farming? • Do you conduct Environmental Education Courses or Training Sessions? • Do you permit mineral resource extraction?

7. Marcellus Shale Photo Outcrops Along the Southeastern Border of Pike County Along Route 209 Main Fracture Orientation

8. Geological Sequence Deposit or Rock Type Time Period sand, silt, clay, and gravel Quaternary – Glaciation 0 to 1.8 million years 1.8 to 290 million Tertiary to Permian Not present (eroded and weathered) OL D E R Pennsylvanian 290 – 320 million Llewellyn (coal) and Pottsville ( minor coal) 320 – 354 million Mauch Chunk Pocono and Spechty Kopf Mississippian Catskill FormationTrimmers Rock FormationMahantango Formation Marcellus Formation(Black Shale)- Target OnondagaFormation(calcareous sandy shale) 354 - 417 million Devonian 417 – 443 million Silurian

9. Marcellus Shale- Natural Gas Play50 to 200 trillion cubic feet LuzerneCounty Shale may be 50 to 200 feet thick

10. This is why the term – Fairway is being used to describe the play. Source- Cabot – Marcellus Shale Thickness Map

11. Permitted Drilled Wells - 2009

12. 3.4 mmcf/day $ 12,400/day $ 3000/day (25%) 2.3 to 6.3 mmcf/day $ 23,900/day $ 5900/day (25%) Source: DUG Conference Presentation 1 MMcf = 1000 MMBtu $3.64 per MMBtu

13. Marcellus Shale Drilling Site Pads can be 5+ acres – but one pad may support drilling multiple horizontal wells.

14. The Concerns (Partial List) • Lack of Local and State Oversight • Regulated on the Federal/ State Level – not via local zoning and land-use. • Mineral Owner or Gas Rights Out-weigh Rights of Surface Owner • Habitat Destruction – Loss of Crop or Timber Value • Contamination • Water Resource • Air Quality – Noise Pollution- Compaction • Poor Oversight and Lack of Preparedness by State and Local Agencies

15. Concerns Related to Marcellus Shale • Based on Community Location – this could be a major concern or impact. • In general, the concerns are related to the following: • Erosion and Sedimentation • Volume of Water Used In Hydrofracturing- 2 to 9 million gallons per well. • Loss of Freshwater Aquifer or contamination by brine water and drilling fluids. • Drilling fluids may contain environmental contaminations (metals and organics). • Impacts to Roadways, Tourism, and Ecology • Groundwater and Surface Water Contamination

16. Typical Well Additional Cemented Zones This Zone should be cemented

17. Multiple CementedCasing Used in Drilling Process

18. Groundwater Moves - Slowlyfeet per year Confining Bed Sea Level Saline/Brine Water Stagnant Water – no to little flow

19. Injection Wells – Class II Class II wells inject fluids associated with oil and natural gas production. Most of the injected fluid is salt water (brine), which is brought to the surface in the process of producing (extracting) oil and gas. Regulated by: EPA -http://www.epa.gov/safewater/uic/wells_class2.html Does the UIC Program regulate hydraulic fracturing? Sometimes. The UIC Program regulates the following activities: Well injection of fluids into a formation to enhance oil and gas production (Class II wells). Fracturing used in connection with Class II and Class V injection wells to “stimulate” (open pore space in a formation). Hydraulic fracturing to produce methane from coal beds in Alabama. Note: Class V wells are shallow wells that inject water into or above a freshwater aquifer. http://www.epa.gov/ogwdw000/uic/

20. Getting to The Natural Gas Freshwater Well 5000 to 7000 feet Possible saline/ brine/ connate water Up to a few thousand feet

21. Types of Fluids • Top hole fluids – typically the water from the freshwater aquifer. This water from the first 600 to 800 feet. • Bottom hole fluids – brine or connate water. • Stimulation Fluids – fluid used to improve recovery (frac process) • Production Fluids – water produced along the natural gas release – similar to bottom hole fluid.

22. Active Marcellus Production Site – Frac Fluid Chemistry Typically Frac Water is comprised of clean water with a low probably for scale formation, but treated effluents and other sources being evaluated. The components include: Friction Reducer – anionic polymer high molecular weight (hold frac sand and other particles) Wetting Agent- nonionic surfactant – reduce surface tension and improve frac water flowback. Biocides- control growth or regrowth of microorganisms. Scale Inhibitor – phosphate based chemicals to inhibit precipitate formation and scale formation.

23. Arthur et. al., 2008 – All Consulting – “ Natural Gas Wells of the Marcellus Shale”, Presented at Groundwater Protection Council 2008 Annual Forum.

24. Available Frac Water Chemistry

25. Flowback Water Chemistry Flowback water is generated from drilling and it is what gets produced from the first 5% of water returned after a well is started May contain elevated levels of trace metals, nitrogen, bromide, uranium, and hydrocarbons. Most of the dissolved solids includes chloride and sodium. Source: http://www.prochemtech.com/

26. Production Water Produced water is wasted water that accompanies oil extraction and is high in saline. Typically, separated stored on site and then hauled to treatment/disposal facility. May contain elevated levels of trace metals, nitrogen, bromide, uranium, and hydrocarbons. Most of the dissolved solids includes chloride and sodium. Source: http://www.prochemtech.com/

27. Background Testing and Baseline(Work as a Community !) • Test wells / springs/surfacewater within at least 1000 feet of proposed well location. • If no wells on the property install or develop a baseline monitoring program. • Test wells/springs/surfacewater along horizontal testing leg with a minimum of 500 feet radius from horizontal leg. • Document static water levels, well production capacity, and spring flows • Pre Drilling Baseline – within 6 months of starting a production well. • Post Drilling Testing – within 6 months of completion.

28. Action as a Citizen Support proposed regulatory changes related to Marcellus Shale Development Encourage PA State Government to Invest in Oversight, Increase Fees, and Fines Support Proposed Changes in TDS, Chloride, and Sulfate Discharge Regulations. Use Organization To Properly Educate and Inform the Public, Local Government, and work with Royalty Owner Groups. Royalty Owner Group Members may be future Land Trust Clients.

29. Action as a Royalty Owner Get a Solid Lease with Addendums that Protect You and Surrounding Landowners. Use Bonus Payment to Establish Additional Ecological/ Environmental Baseline, Education Adjacent Landowners, and Leverage into Projects that generate or support local issues and community. Avoid the use of lined pits for storing frac, stimulation, and bottom hole fluids. Encourage Driller to Use Multiple Cemented Casings, Third Party Inspects, and Obtain Copies of Baseline Testing (Surface and Groundwater). Encourage Develop to Disclose Emergency Response Plan related to a surface or subsurface contamination. Prohibit on-site drilling, deep well inject for brine water disposal, and proper disclosure on water usage (cradle to grave) and frac chemicals.

30. Younger Older Younger Anticline Water Well 1200 + ft Fresh Water< 1000 mg/L 600 + ft Brackish1000 to < 10,000 mg/L Sea Level Brine- > 10,000 mg/L TargetFormation

31. General Geology Saline Water Brine Water

32. Water Testing Recommendations • Package # 1 – Based on Penn State University Recommendations and Workshops. • Parameters: total coliform, e. coli, chloride, barium, pH, and total dissolved solids. • Estimated Cost w/o Chain-of-Custody and Collection – Approximately $ 120.00 /sample. • Very inadequate !

33. Water Testing Recommendation Package # 2- Based on what the PADEP is Recommendations. • Chloride, T. Hardness, Magnesium, Strontium, Iron, Manganese, pH, Sodium, Conductivity, Calcium, Alkalinity, and Total Dissolved Solids • Oil & Grease, and Methane/Ethane. • Estimated Cost w/o Chain-of-Custody and Collection – Approximately $500.00 /sample. • Missing barium, MBAS, VOCs, radiologicals and other key parameters and can not conduct geochemical mapping.

34. Water Testing Recommendation Package # 3- Based on a combination of what local gas company’s are doing as part of their background or baseline analysis, plus added total coliform and pH. • Alkalinity, pH, Barium, Calcium, Chloride, Conductivity, T. Hardness, Iron, Magnesium, Manganese, Oil/Grease, Potassium, Sodium, Sulfate, Total Dissolved Solids, MTBE/VOC’s (includes BTEX), Sulfide, MBAS (Surfactants), Methane/Ethane,Total Coliform, pH and Total Suspended Solids. • Estimated Cost w/o Chain-of-Custody and Collection$ 900.00 per sample • Problem – Does not include Strontium, Bromide, Selenium, and radiological.

35. Water Testing Recommendations Package # 4 Based on Gas Company Background Testing and a review of the chemical analysis of used Frac Water. • pH, standard plate count, total coliform, nitrate, nitrite, alkalinity, chloride, bromide, sulfate, color, odor, conductivity, corrosion index, alpha/beta count, T. Hardness, Mercury, trace metals (13 metals- including strontium) • VOC & MTBE, Radium 226/ 228, Total Dissolved Solids, Uranium, Total Kjeldahl Nitrogen, total suspended solids, MBAS, Methane/Ethane , Oil/ Grease, and Sulfide. • Estimated Cost w/o Chain-of-Custody and Collection • $ 1850.00 per sample. • Estimated Cost without the radiological w/o Chain-of-Custody and Collection - $ 1500.00 per sample. • Comprehensive – Water Testing Package – Still missing phenol, 2-Butanone, Acetone, and other trace contaminants in frac water brine

36. Certificate of Completion Presented to Fill in Your Name Introduction to Environmental Issues for Natural Gas Development for Land Trusts 1– hour Education Series Presented by Mr. Brian Oram, PG Add Date B.F. Environmental ConsultantsDallas, PA 18612 http://www.bfenvironmental.com

37. Groundwater and Hydrogeology ofLuzerne County, PA Soils Evaluation Community Education Outreach Hydrogeological Assessments http://www.water-research.net