Category Archives: fracking

Oil and Gas Financial Journal: EPA issues NPDES permits for CA offshore oil and gas operations

http://www.ogfj.com/articles/2014/01/epa-issues-npdes-permit-that-includes-limited-chemical-disclosure-requirements-for-oil-and-gas-operations-offshore-california.html

January 22, 2014
Michael Weller and Jason Hutt
Bracewell & Giuliani LLP

Region 9 of the US Environmental Protection Agency recently made available the finalized National Pollutant Discharge Elimination System (NPDES) general permit applicable to discharges from oil and gas exploration facilities offshore Southern California. NPDES General Permit No. CAG280000 (2014 NPDES General Permit), issued under provisions of the Clean Water Act, authorizes discharges from exploration, development and production facilities located offshore of Southern California in accordance with specified effluent limitations, monitoring and reporting requirements and various other conditions.

The final 2014 NPDES General Permit includes certain new requirements that EPA indicates were added to address offshore hydraulic fracturing operations, including increases in the monitoring requirements associated with produced water discharges and new inventory and reporting requirements.

While operating offshore, waste streams generated by oil and gas operations are generally either treated and discharged via a NPDES permit or shipped back to shore for disposal. The 2014 NPDES General Permit authorizes discharges from 23 platforms operating offshore Southern California, including discharges of Drilling Fluids and Cuttings, Produced Water, Well Treatment, Completion and Workover Fluids, Bilge Water, and Water Flooding Discharges.

This reissuance of the 2004 NPDES general permit was initially proposed in 2012. During the public comment period, the U.S. Department of Interior, Bureau of Safety and Environmental Enforcement (BSEE), several California legislators and the California Coastal Commission (CCC) expressed interest in hydraulic fracturing operations offshore of California. To address the concerns raised over offshore hydraulic fracturing, EPA changed portions of the final general permit, adding new testing and reporting requirements.

Background
Section 301(a) of the Clean Water Act prohibits point source discharges of pollutants into navigable waters unless in compliance with a permit. To comply with the prohibition on point source discharges, businesses typically obtain CWA Section 402 permits from the state; however, because these operations are offshore, EPA issues the NPDES permits directly. Under the NPDES program, EPA may issue individual permits or general permits. The latter allows the Agency to authorize discharges from a large number of facilities engaged in the same activity. When EPA issues a general permit, a prospective permittee simply submits an application for coverage and then abides by the terms and conditions of the general permit.

Monitoring requirements
NDPES general permits typically contain monitoring requirements. In its response to public comments on the 2014 NDPES General Permit, EPA indicated that it has increased the mandatory Whole Effluent Toxicity or “WET” testing for produced water discharges from an annual to a quarterly requirement. EPA indicated that, because the chemicals used in hydraulic fracturing operations are “commonly commingled and discharged with produced water,” the mandatory tests applicable to produced water will address any concerns over discharges associated with hydraulic fracturing operations.

Inventory/reporting requirements
NPDES permits may also contain inventory and reporting requirements. In the 2004 version of this particular NPDES permit, EPA required that permittees maintain inventories and report drilling fluid constituents added downhole for all discharges of “Drilling Fluids and Cuttings.” In the 2004 version, the mandatory inventory and reporting requirement only applied to mud systems and there was no such requirement for “Well Treatment, Completion and Workover Fluids.”

The 2014 NDPES General Permit includes that same requirement for discharges of “Drilling Fluids and Cuttings.” However, the permittee must also now submit detailed information for discharges of “Well Treatment, Completion and Workover Fluids,” which includes chemicals used in hydraulic fracturing. Specifically, EPA added Part II.C.3 to the 2014 NPDES General Permit, which requires the permittee to:
1. maintain an inventory of the quantities and application rates of chemicals used to formulate well treatment, completion and workover fluids; and
2. if those fluids are discharged, report to EPA Region 9 the chemical formulation of the discharges and the discharge volume with the operators quarterly discharge monitoring reports.

The disclosures under the 2014 NDPES General Permit are not to the “public” and EPA has indicated that the inventory would be available to EPA where the Agency “deems it necessary to meet the purposes of the CWA. For example, in case of well failure or other accident resulting in an unexpected discharge, EPA may access such inventory in order to immediately assess emergency response needs.” It is not yet clear how the chemical formulations must be reported or to what extent trade secret protections are available.
The public comment period for the 2014 NPDES General Permit closed nearly one year ago on February 4, 2013. The effective date of the permit is March 1, 2014.

Michael Weller is member of the firm’s environmental and natural resources practice in Washington DC.
Jason Hutt is a partner in the firm’s Washington, DC office. He counsels clients on current and upcoming regulatory developments at the nexus of environmental and energy policy, with focused attention on natural gas development, including hydraulic fracturing.
Special thanks to Richard Charter

Common Dreams: Prominent Canadians Join Neil Young’s Call: Honor the Treaties, Stop the Tar Sands

http://www.commondreams.org/headline/2014/01/21-4

Published on Tuesday, January 21, 2014
‘Will we disregard the treaties we have with First Nations? Will we continue to allow oil companies to persuade our government to gut laws?’ asks open letter
– Andrea Germanos, staff writer

A group of prominent Canadians has added support to Neil Young’s challenge to Canada’s tar sands exploitation and to the country’s disregard for First Nations treaties.
honorthetreaties

(Photo: Light Brigading/cc/flickr)In an open letter issued Monday, the musicians, authors and scientists say the Canadian rocker’s campaign has raised questions the government should be forced to answer about whether it will have laws “written by powerful oil companies” or be a nation that respects the environment and the treaties it signed over 100 years ago.

Among the signatories are authors Naomi Klein and Michael Ondaatje, scientist David Suzuki and actor Neve Campbell.

Young’s “Honour the Treaties” tour, which just wrapped up, raised $500,000 to help the Athabasca Chipewyan legal challenges to the tar sands industry, which they say has brought “devastating environmental impacts” to their land.

“The Federal Government’s continued approval of new tar sands mines such as Shell’s Jackpine mine despite the devastating environmental impacts and inadequate consultation with First Nations is insulting and unlawful. We are encouraged and grateful for all the support we are receiving from across Canada. This is just the beginning,” said Chief Allan Adam of the ACFN.

Just ahead of the tour’s closing, the Athabasca Chipweyan First Nations (ACFN) held a teach-in to explain why they need to raise the legal funds, and also explain how their fight is a fight for all of us.

“If you breathe air and drink water, this is about you,” Crystal Lameman told the teach-in audience.

A spokesperson for Prime Minister Stephen Harper responded to Young’s criticisms during his tour by saying that “the lifestyle of a rock star relies, to some degree, on the resources developed by thousands of hard-working Canadians every day.”

In their open letter, the group writes:

“Instead of focusing on Neil Young’s celebrity, Prime Minister Harper should inform Canadians how he plans to honour the treaties with First Nations. This means ensuring the water, land, air, and climate are protected so the Athabasca Chipewyan First Nations and other First Nations communities be able to hunt, fish, gather plants and live off the land. Canada signed a treaty with them 114 years ago, and this must be honoured.

“The world is watching as we decide who we will become. Will we disregard the treaties we have with First Nations? Will we continue to allow oil companies to persuade our government to gut laws, silence scientists, and disassemble civil society in order to allow reckless expansion of the oil sands?”

* * *

The full letter is below:

On his Honour the Treaties tour, Neil Young is doing what poets do—forcing us to examine ourselves. This is hard enough on a personal level and it can be even more difficult when we are being asked to examine the direction in which our country is headed.

The time has come for Canada to decide if we want a future where First Nations rights and title are honoured, agreements with other countries to protect the climate are honoured, and our laws are not written by powerful oil companies. Or not.

Neil’s tour has triggered the Prime Minister’s Office and oil company executives. They have come out swinging because they know that this is a hard conversation and they might lose. But that should not stop the conversation from happening.

Instead of focusing on Neil Young’s celebrity, Prime Minister Harper should inform Canadians how he plans to honour the treaties with First Nations. This means ensuring the water, land, air, and climate are protected so the Athabasca Chipewyan First Nations and other First Nations communities be able to hunt, fish, gather plants and live off the land. Canada signed a treaty with them 114 years ago, and this must be honoured.

The world is watching as we decide who we will become. Will we disregard the treaties we have with First Nations? Will we continue to allow oil companies to persuade our government to gut laws, silence scientists, and disassemble civil society in order to allow reckless expansion of the oil sands?

We are proud to stand with Neil Young as he challenges us all to think about these larger, more profound and humane questions.

Now is the time for leadership and to honour promises that we have made, not personal attacks.

Michael Ondaatje, author, Officer of the Order of Canada
Margi Gillis, dancer,
Member of the Order of Canada
Clayton Ruby, lawyer, Member of the Order of Canada
Dr. David Suzuki, scientist,
Companion of the Order of Canada
Dr. David Schindler, scientist, Officer of the Order of Canada
Stephen Lewis, Companion of the Order of Canada
Joseph Boyden, author
Gord Downie, musician
Sarah Harmer, musician
Naomi Klein, author
Dr. John Stone, scientist
Tzeporah Berman, author
Amanda Boyden, author
Neve Campbell, actor
Wade Davis, author
Dr. Danny Harvey, climate scientist
J.B. MacKinnon, author
Dan Managan, musician
Sid Marty, author
Andrew Nikiforuk, author
Rick Smith, author
John Valliant, author
Ronald Wright, author

Common Dreams: Groups to Obama: Your Fossil Fuel-Driven Policies Equal ‘Catastrophic Climate Future’

Published on Friday, January 17, 2014
‘America’s energy policies must reduce our dependence on fossil fuels, not simply reduce our dependence on foreign oil.’
– Jon Queally, staff writer

While President Obama made a big deal out of delaying the northern half of the Keystone pipeline’s construction, he compensated by signing an executive order to expedite similar infrastructure projects everywhere else. (Photo/Matt Wansley via Flickr)Citing the glaring gaps between his sometimes encouraging rhetoric and the realities of his fossil fuel-laden policies, eighteen environmental, environmental justice, and public health advocacy organizations have written a pointed letter (pdf) to President Obama slamming his “all of the above” energy strategy as a “compromised” approach that “future generations can’t afford.”

The coalition behind the letter—which includes the Sierra Club, Friends of the Earth, NRDC, the Energy Action Coalition and others—is upset that Obama voices concern about climate change in lofty speeches and with compelling promises even as he oversees the most dramatic push in oil and gas extraction in a generation, continuing an aggressive fossil fuel expansion despite what the climate science is saying about the urgent need to dramatically cut carbon emissions.

“You can’t have it both ways,” said Sierra Club’s executive director Michael Brune in an interview with the Washington Post, which received advanced notice of the letter that was sent to the White House on Thursday.

“In the coming months your administration will be making key decisions regarding fossil fuel development — including the Keystone XL pipeline, fracking on public lands, and drilling in the Arctic ocean — that will either set us on a path to achieve the clean energy future we all envision or will significantly exacerbate the problem of carbon pollution.”

From the letter:

We believe that continued reliance on an “all of the above” energy strategy would be fundamentally at odds with your goal of cutting carbon pollution and would undermine our nation’s capacity to respond to the threat of climate disruption. With record-high atmospheric carbon concentrations and the rising threat of extreme heat, drought, wildfires and super storms, America’s energy policies must reduce our dependence on fossil fuels, not simply reduce our dependence on foreign oil.

As the Post reports:

The criticism came on the same day that the fossil-fuel industry and its congressional allies began separate efforts to challenge the administration’s environmental policies. That suggests that the White House will have to marshal additional resources to defend the work it is already doing to address climate change.

The American Petroleum Institute announced a new advertising and electoral campaign that will promote domestic oil and gas production. At the same time, Senate Minority Leader Mitch McConnell (R-Ky.) asked the Government Accountability Office to determine whether the Senate can use the Congressional Review Act to reverse a proposed rule to limit carbon emissions from new power plants.

Though President Obama has yet to make a final decision on approval of the contoversial Keystone XL pipeline, the green groups applauded his previous comments on the project when he said the climate impact of the tar sands pipeline would be a key aspect of the overall determination. The groups want to see that standard now applied to all fossil fuel related projects in the country.

“We believe that a climate impact lens should be applied to all decisions regarding new fossil fuel development,” the letter continues, urging Obama to replace his focus on coal, gas, oil, and nuclear development with a new paradigm that champions “carbon-reducing clean energy” strategies.

In the coming months your administration will be making key decisions regarding fossil fuel development — including the Keystone XL pipeline, fracking on public lands, and drilling in the Arctic ocean — that will either set us on a path to achieve the clean energy future we all envision or will significantly exacerbate the problem of carbon pollution. We urge you to make climate impacts and emission increases critical considerations in each of these decisions.

______________________________________________
This work is licensed under a Creative Commons Attribution-Share Alike 3.0 License.

Common Dreams: Californians Submit 100,000 Public Comments Opposing Gov. Brown’s Dangerous Fracking Regulations

http://www.commondreams.org/newswire/2014/01/14-8

FOR IMMEDIATE RELEASE January 14, 2014 4:51 PM

CONTACT: Environmental Groups
Alec Saslow: Alec@FitzGibbonmedia.com, (720) 319-4948
Sarah Lane, sarahlane@credoaction.com

SACRAMENTO, Calif. – January 14 – In the wake of the driest recorded year in California’s history, concerned Californians submitted more than 100,000 public comments today denouncing Governor Brown’s proposed fracking regulations and urged him to ban the water-intensive drilling activity. At today’s event, Californians Against Fracking delivered boxes filled with tens of thousands of public comments to DOGGR while chanting, “Climate leaders don’t frack,” a clear message to Gov. Brown, whose legacy as a climate leader is on the line as he green-lights a massive expansion of fracking in the state.

“As California faces a massive drought, the last thing Gov. Brown should be doing is letting oil companies frack our state and contaminate our drinking water,” said Zack Malitz, CREDO’s Campaign Manager. “The only way to protect Californians is with a ban on fracking, not weak regulations that will only encourage more drilling.”

“In order to protect our water, farms, and public health from toxic contamination Governor Brown should ban fracking now,” said Adam Scow, California Director of Food & Water Watch.

“The days of Big Oil calling the shots in Sacramento are over. Californians are rising up in record numbers to say no to these dangerous oil extraction techniques,” said Ross Hammond, Senior Campaigner, Friends of the Earth.

“Governor Brown needs to make a choice. He can stand with thousands of Californians for a safe climate future and stop fracking up our state, or he can stand with Big Oil and for more droughts, wildfires and threatened communities,” said David Turnbull, Campaigns Director at Oil Change International.

“The tide of history is quickly turning against Governor Brown on fracking,” said Hollin Kretzmann, a staff attorney for the Center for Biological Diversity. “The question is whether he’ll be remembered as the governor who unleashed fracking’s nightmare on California or the man who stood with his fellow Californians and protected the places we all love.”

“We’re told this is a record-breaking number of comments on environmental and health policy in the state,” said Victoria Kaplan, MoveOn.org Civic Action Campaign Director. “Governor Brown can listen to the voters and ban fracking, or he can be remembered as the governor who paved the way for more climate change and drought.”

“If Governor Brown wants California to continue to hold its reputation as national leader in environmental standards, banning fracking should be a no brainer,” said Democracy for America Chair Jim Dean.

“The Central Valley has some of the most impacted communities in California, who are a key part of the movement to stop fracking. Today, we’re showing our grassroots power,” says Valley Resident Juan Flores Organizer at Center on Race, Poverty & the Environment.

“2013 was the driest year in California’s history, and opening the state to fracking will only make the problem worse. If Governor Brown wants to get serious about stopping climate change, he should listen to the thousands of Californians calling for a ban on fracking, and stand up to big oil,” said Linda Capato, Fracking Campaigner at 350.org

Californians Against Fracking is a coalition of environmental, business, health, agriculture, climate, labor, environmental justice and political organizations working to win a statewide ban on fracking in California. Groups that participated in today’s delivery include CREDO, Food & Water Watch, Center for Biological Diversity, MoveOn.org Civic Action, Friends of the Earth, Center on Race, Poverty and the Environment, 350.org, Oil Change International, Greenpeace, Democracy for America, and 350 Bay Area.

Washington Examiner: Lawmakers spar over seismic testing for Atlantic Ocean drilling

http://washingtonexaminer.com/article/2541969

BY ZACK COLMAN | JANUARY 10, 2014 AT 2:04 PM

The National Oceanic and Atmospheric Administration warns that, “Increasing evidence suggests…
A long-awaited final federal study on the environmental impact of using seismic guns to search for oil and gas deposits off the Atlantic coast is due at the end of February, signaling future battles between Republicans and Democrats regarding offshore drilling.

The final environmental impact study on using seismic guns to explore for oil and gas from the Interior Department’s Bureau of Ocean energy Management has been five years in the making, and will be used to inform decisions on whether to open the Atlantic Ocean to offshore oil and gas drilling.

A seismic gun shoots compressed air into the water and reflects off the seabed to deliver information about whether oil and gas deposits lay beneath. Proponents say it reduces the costs and environmental damage of exploration, while opponents say the shots can deafen marine life, disrupt habitats and lead to eventual death.

While Democrats say the practice disturbs marine life, Republicans say it’s safe, noting that the federal government has never pinned a marine mammal death to seismic guns.
It’s a complicated matter, said Bureau of Ocean Energy Management Deputy Director Walter Cruickshank, who noted the environmental study has taken longer than usual.

“There’s a lot of species out there, a lot of ocean to cover, and we’re continuing to learn new things as we conduct this research,” he said during a Friday hearing in the House Natural Resources Subcommittee on Energy and Mineral Resources.

At its core, though, approval of seismic guns is a discussion of expanding offshore drilling, lawmakers noted at the hearing.

“There’s been a lot of talk about, ‘Let’s explore.’ But talk is cheap. Action is needed,” said Rep. Rob Wittman, R-Va., who noted the state’s Democratic Sens. Mark Warner and Tim Kaine, along with Democratic Gov.-elect Terry McAuliffe, support offshore drilling.

For now, the Obama administration’s current drilling plan that runs through 2017 blocks energy development in the Atlantic Ocean. Those Atlantic blocks were included in a draft of the president’s first five-year drilling plan, but he revised it following the April 2010 Deepwater Horizon disaster that killed 11 workers and spewed 4.2 million barrels of oil into the Gulf of Mexico.

Drilling supporters say wading into the Atlantic could be lucrative — an American Petroleum Institute report said it would provide 280,000 jobs and add $23.5 billion to the U.S. economy each year between 2017 and 2035.

If the federal government decides to offer oil leases in the Atlantic, it would likely come in the latter half of the next five-year drilling plan that would run through 2022, Cruickshank said.

Many Democrats hope that doesn’t happen.

They warned at the hearing that U.S. laws have not strengthened enough in the wake of the Deepwater Horizon incident — though Donald Boesch, a marine biologist who worked on a White House-convened independent commission evaluating the response to the spill, said federal regulations and industry have responded well.

Democrats maintained another spill would threaten tourism and fishing industries that support 200,000 jobs and bring in $11.8 billion annually, according to ocean conservation group Oceana.

Seismic testing would pose a risk to those industries too, said Boesch, who is president of the University of Maryland Center for Environmental Science.

“There’s legitimate concerns,” Boesch said. “It’s a matter of legitimate scientific controversy.”

The National Oceanic and Atmospheric Administration warns that, “Increasing evidence suggests that exposure to intense underwater sound in some settings may cause certain marine mammals to strand and ultimately die.” Oceana, citing federal projections, says seismic testing would injure 138,500 dolphins and whales through 2020.

“We should not be risking our fishing and tourism industries … because the energy companies want to get their hands on a quick oil buck,” said Rep. Rush Holt, D-N.J., the top Democrat on the subcommittee.

But Republicans and industry say seismic testing has greatly improved since its early use in the 1970s.

They also noted that none of the 60 “unusual mortality events” that killed marine life since 1991 and were documented by a federal working group were the result of seismic testing.

Suggestions of a link between seismic testing and marine mammal deaths “is likely a chimera,” said James Knapp, chairman of the department of earth and ocean sciences at the University of South Carolina.

Enhancements in seismic testing include the advent of 3D imaging, which witnesses credited with reducing environmental damage through curtailing exploration by drilling.

It also has helped shed light on the potentially vast resources available undersea. In the Gulf of Mexico, seismic testing revealed a resource basin five times larger than previously thought, Richie Miller, president of Spectrum Geo Inc., said during the hearing.
“We would expect the same thing just with this new technology off the East Coast,” he said.

Special thanks to Richard Charter