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Drivers of the Environmental Renaissance August 31, 2010

Drivers of the Environmental Renaissance August 31, 2010. John R. Duda Director, Strategic Center for Natural Gas & Oil. A Tragic, Never-To-Be-Forgotten Disaster …But not the Genesis. Source: http://www.msnbc.msn.com/id/36880053. Outline. Historical context Fundamental drivers

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Drivers of the Environmental Renaissance August 31, 2010

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  1. Drivers of the Environmental RenaissanceAugust 31, 2010 John R. Duda Director, Strategic Center for Natural Gas & Oil

  2. A Tragic, Never-To-Be-Forgotten Disaster …But not the Genesis Source: http://www.msnbc.msn.com/id/36880053

  3. Outline • Historical context • Fundamental drivers • What’s at stake • What’s to be done

  4. First Earth Day EPA established Clean Air Act U.S. Environmental Milestones Santa Barbara (200 M gal.) Love Canal Macondo (~200 MM gal.) Exxon Valdez (11-32 MM gal.) 3 Mile Island 2000s 1970s 1990s 1980s 1960s CA auto emissions Roadless Rule “Silent Spring” Wilderness Act Superfund Bill Kyoto Protocol Clean Air Act + Oil Pollution Act Clean Water Act EPA to regulate CO2 Endangered Species Act

  5. 1950 to 2010 … from Gushers to Green

  6. Gas Shale Related Legislation FRAC Act introduced in Congress to make fractured wells Class II Disposal wells EPAct 2005: Congress excludes hydraulic fracturing from Safe Drinking Water Act (UIC) EPA concludes hydraulic fracturing no danger to drinking water Wellhead Natural Gas Price ($/Mcf) Other: Ohio Shale, Antrim, New Albany

  7. Most Active Shale Plays # rigs drlg for gas Source: EIA, with data from Smith International

  8. Result … Active Opposition to Development

  9. Fundamental Driver 1: Fear

  10. Fundamental Driver 2: Distrust Government Business

  11. Fundamental Driver 3: Confusion

  12. Dominion Post, September 15, 2009 “…showed a much higher level of total dissolved solids…”

  13. Perspective of 51 “Shale” Web Sites

  14. Web Site Tag Lines • “New York has the best drinking water in the world. Let's not frack it up!” • “What the frack?” • “Saving our land, air, & water- you can't drink gas” • “Your place to speak out on industrial-scale drilling for natural gas” • “Protecting our communities and environment from exploitative gas drilling of the Marcellus Shale” • “The Marcellus Shale: Energy to fuel our future” • “Your source for information about the benefits of natural gas exploration in the Marcellus Shale” • “A partnership established to provide the regional community and the natural gas industry with a central resource for workforce development and community education needs related to Marcellus Shale gas” Anti-Shale Pro-Shale

  15. New Yorkers Are Not Against All Development 1609 2009 Source: National Geographic Magazine, September 2009

  16. Marcellus Shale Drillers in Pennsylvania Amass 1435 Violations in 2.5 Years Discharge of Industrial Waste 154 Improper Erosion & Sediment Plans Developed/Implemented 277 Violations of PA Clean Stream Law 100 Permitting Violations 38 Faulty Pollution Prevention Practices 65 Improper Construction of Wastewater Impoundment 268 Improper Restoration of Extraction Site Improper Well Casing Construction 10 Improper Waste Management 7 1 PALTA identified companies that have had violations, according to news reports, but are not included in the data, received on 5/10/2010 and 7/10/2010, from the PA Department of Environmental Protection. The Association has not been able to reconcile this difference. 2 Pennsylvania Department of Environmental Protection News Release (6/23/2010) For information on methodology, contact Elana RIchman at 717.230.8560 or email erichman@conserveland.org. Source: Pennsylvania Land Trust Association (August 2, 2010)

  17. Benefits Need to be Recognized Table reflects PA analytical results

  18. Impact of No Shale Gas Development in 2035 Sensitivity Cases for AEO2010 Reference: Drilling moves ahead at current pace, unproved shale gas resource 347 Tcf No Gas Shale Drilling: No new onshore, lower 48 shale drilling after 2009 High Gas Shale Resource: Unproved shale gas resources increased to 652 Tcf Source: Energy Information Administration, 2010.

  19. Public Outreach Challenges • Finding ways to promote regulations that are science-based and reflect true costs and benefits • How to collect and analyze data needed to develop science-based regulations in a competitive, high-cost environment • How to quantify potential future costs and benefits • Finding ways to support an informed debate in an environment of misinformation • How to build public trust in objective assessments of risks • How to carry out public outreach in a way that reaches the widest possible audience with accurate information • How to engage constituencies with diametrically opposed viewpoints

  20. Standing Still is Not an Option • Get out the facts … via websites, publications, commercials, community meetings … whatever works • Promote reasonable, compromise solutions to address community concerns • Pursue collaborative research and development (industry, academia, and government) in support of science-based regulations • Maintain transparency and public accountability • Participate in joint public/private investment in workforce training to reduce accidents

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