Petroleum And Geothermal Energy Resources (hydraulic Fracturing) Regulations 2017
Gene Cryder
Wastes generated from crude oil and natural gas exploration and production are generally subject to regulation under Subtitle D of the Resource Conservation and Recovery Act (RCRA) and state regulations, and many state governments have specific regulations and guidance for exploration and production wastes. In addition, some states are developing legislation and regulations in response to the increase in the use of hydraulic fracturing, including requirements related to waste management.
As the use of hydraulic fracturing has increased, so too have concerns about potential impacts on public health and the environment, including potential impacts arising from improper management of wastes from exploration and production activities. Proper waste management is important for all exploration and production wastes, including those that are associated with hydraulic fracturing activities.
Section 2002(b) of RCRA requires every regulation promulgated under the Act to be reviewed and, where necessary, revised not less frequently than every three years. On May 4, 2016, the Environmental Integrity Project and others filed a lawsuit with the U.S. District Court for the District of Columbia that alleged EPA had failed to perform its non-discretionary duty under Section 2002(b) to evaluate the federal Subtitle D solid waste regulatory requirements for the management of wastes associated with exploration, development and production wastes from crude oil, natural gas and geothermal energy (oil and gas) activities.
In response, EPA entered into a consent decree to conduct a review and determine whether revisions to the federal solid waste management regulations are necessary. To support this effort, EPA conducted an extensive literature review of government, industry and academic sources to supplement the information available from previous Agency actions. This review, to determine whether changes to the federal solid waste regulations are necessary, evaluated factors such as waste characteristics, management practices, damage cases and the coverage of state programs.
Natural gas plays a key role in our nation's clean energy future. The United States has vast reserves of natural gas that are commercially viable as a result of advances in horizontal drilling and hydraulic fracturing technologies enabling greater access to gas in shale formations. Responsible development of America's shale gas resources offers important economic, energy security, and environmental benefits.
During hydraulic fracturing specially engineered fluids containing chemical additives and proppant (eg., sand) are pumped under high pressure into a well to create and hold open fractures within the geologic formation. Hydraulic fracturing is often performed in stages, and following each stage, some fluids return to the surface as fracturing fluid returns ('flowback').
It is important to note that the use of horizontal drilling in conjunction with hydraulic fracturing can often result in large volumes of flowback, a key attribute distinguishing wastes generated during hydraulic fracturing in unconventional reservoirs from wastes generated during other types of exploration and production activities. For example, larger volumes of flowback require larger on-site storage capacity, either using land-based units (pits) or tanks.
While many exploration and production wastes are exempt from regulation as hazardous waste under Subtitle C of RCRA, these wastes are generally subject to non-hazardous waste regulation under RCRA Subtitle D and applicable state regulations. Many state governments have specific regulations and guidance for exploration and production wastes.
Over the last several years, many states have been developing and updating legislation and regulations in light of the increase in the use of hydraulic fracturing, including requirements related to waste management. Exploration and production activity occurring on federal lands is regulated under the jurisdiction of the Department of Interior's Bureau of Land Management (BLM), subject to BLM regulations and guidance. EPA strongly believes that the management of exploration and production wastes should occur in a manner that prevents releases of hazardous constituents to the environment, particularly releases that may impact groundwater and surface water resources.
EPA reviewed the waste-related provisions of state regulations as of March 2014, for oil and natural gas waste pits and storage tanks for 26 of 33 gas producing states (ie., states with the most significant shale gas activity). The review examined only the state statutes and regulations and did not include a review of permitting decisions, compliance monitoring, or enforcement actions. EPA consulted the following sources:
In addition, EPA staff contacted each of the 26 reviewed states' primary regulatory agencies to verify cited regulations and ensure recent and ongoing updates to regulations were reflected in the review.
State regulations continue to evolve as hydraulic fracturing issues become more prevalent and additional information becomes available. Below are individual state summaries and a link to a resource for state regulatory programs.
In concert with the application of state regulatory requirements, there are a variety of voluntary management practice guidance (often referred to in industry as "Best Management Practices," or "BMPs") for operators to evaluate and use in the development of site-specific exploration and production waste management plans.
EPA strongly urges operators to evaluate and, as appropriate, employ practices best suited to prevent releases during the generation and management of exploration and production wastes including wastes from hydraulic fracturing. EPA agrees with the statement from the Bureau of Land Management that voluntary management guidance for oil and gas exploration and production wastes should be matched and adapted to meet the site-specific requirements of the project and local environment. Operators should also integrate source reduction and recycling measures into their operations, where practicable.
EPA conducted a literature review/internet search and developed a list of more than 80 publicly available sources of voluntary management practices for oil and gas exploration and production wastes as they relate to pits, tanks, and land application/disposal. From this list, EPA focused on fourteen key documents/websites that are widely used and developed summaries of the pit, tank, and land application-related management practices contained in the fourteen selected sources.
There is much existing guidance developed and being used by industry, federal, state, and non-governmental organizations. The scope ranges from local to state, regional, national, and international. The guidance documents/websites compiled in this review are readily available to the public. In addition, there are ongoing efforts by the various groups to continuously develop additional guidance and improve existing ones.
The summaries in Section five contain the following information for each document: sponsoring organization, document/website title, date of publication, website location, general description, and excerpts of the specific sections that concern pits, tanks, and/or land application.
Natural gas plays a key role in our nation's clean energy future. The U.S. has vast reserves of natural gas that are commercially viable as a result of advances in horizontal drilling and hydraulic fracturing technologies enabling greater access to gas in shale formations. Responsible development of America's shale gas resources offers important economic, energy security, and environmental benefits.
EPA is working with states and other key stakeholders to help ensure that natural gas extraction does not come at the expense of public health and the environment. The Agency's focus and obligations under the law are to provide oversight, guidance and, where appropriate, rulemaking that achieve the best possible protections for the air, water and land where Americans live, work and play. The Agency is investing in improving our scientific understanding of hydraulic fracturing, providing regulatory clarity with respect to existing laws, and using existing authorities where appropriate to enhance health and environmental safeguards.
Because natural gas development is increasing rapidly in many regions, prudent steps to reduce these impacts are essential now even as further research to understand potential risks continues. EPA is:
A core element of the Safe Drinking Water Act's (SDWA) Underground Injection Control (UIC) program is setting requirements for proper well siting, construction, and operation to minimize risks to underground sources of drinking water. The Energy Policy Act of 2005 excluded hydraulic fracturing, except when diesel fuels are used, for oil, gas or geothermal production from regulation under the UIC program. This statutory language caused regulators and the regulated community alike to raise questions about the applicability of permitting practices.
As the number of shale gas wells in the U.S. increases, so too does the volume of shale gas wastewater that requires disposal. Wastewater associated with shale gas extraction can contain high levels of salt content also called total dissolved solidstotal dissolved solidsThe quantity of dissolved material in a given volume of water. or TDS. The wastewater can also contain various organic chemicals, inorganic chemicals, metals, and naturally occurring radioactive materials (also referred to as technologically enhanced naturally occurring radioactive material or TENORM). In partnership with states, EPA is examining the different management methods employed by industry to ensure that there are regulatory and permitting frameworks in place to provide safe and legal options for disposal of flowback and produced water. These options include:
The Clean Water Act (CWA) effluent guidelines program sets national standards for industrial wastewater discharges to surface waters and municipal sewage treatment plants based on the performance of treatment and control technologies. Effluent guidelines for on-shore oil and gas extraction facilities prohibit the discharge of pollutants into surface waters, except for wastewater that is of good enough quality for use in agricultural and wildlife propagation for those onshore facilities located in the continental United States and west of the 98th meridian.
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