1. Overview of Hydraulic Fracturing May 31,2013 USDOL/OSHA Ronald Williams – Compliance Assistance Specialist 3300 Vickery Rd. North Syracuse, NY 13212 315-451-0808 ext. 3002

2. Art Dube, Area Director Gordon DeLeys, CAS Buffalo Area Office 130 S. Elmwood Avenue, Suite 500 Buffalo, NY 14202 (716) 551-3053 x244 Kim Castillon, Area Director Albany Area Office 401 New Karner Road, Suite 300 Albany, NY 12205 (518) 464-4338 Kay Gee, Area Director John Frowd, CAS Manhattan Area Office 201 Varick Street, Room 908 New York, NY 10014 (212) 620-3200 Tony Ciuffo, Area Director Long Island Area Office 1400 Old Country Road Suite 208 Westbury, NY 11590 (516) 334-3344 Chris Adams, Area Director Ron Williams, CAS Syracuse Area OSHA Office 3300 Vickery Road N. Syracuse, NY 13212 (315) 451-0808 x3002 Diana Cortez, Area Director Tom McCarthy, CAS Tarrytown Area Office 660 White Plains Road Tarrytown, NY 10591 (914) 524-7510

3. Introduction –What is hydraulic fracturing? –OSHA’s perspective –OSHA’s actions Safety concerns Health concerns and hydraulic fracturing fluid

4. Shale Plays

5. Hydraulic Fracturing Picture from Plan to Study the Potential Impacts of Hydraulic Fracturing on Drinking Water Resources, EPA 2011

7. Top Side Well head Frac Control Van Sand Trailer Water Storage Tanks Blender Chemical unit Pumper Units

8. Hydraulic Fracturing is one in many upstream operations in an industry with a high fatality rate (2006-2010) Source: Private Sector Fatality Rates- Bureau of Labor Statistics Census of Fatal Occupational injuries (CFOI) O&G Fatality Rates - OSHA calculated using CFOI fatality counts and employment data from the BLS Quarterly Census of employment and Wages. Rate per 100,000 Workers

9. Are HF Workers at Greater Risk of Occupational Injury? Increased Time On Site –Increased Potential for Injury –Longer hours/fatigue? Materials Transport –Increased Risk of MVAs Possible risks for consideration Are HF Workers at Greater Risk of Occupational Illness? Silica Diesel Chemicals Increased Time On Site – Increased Exposure to Chemicals – Increased Exposure to Heat

10. OSHA is including HF into existing O&G activities to assess any new risks Local Emphasis Programs on Oil and Gas –HF is part of the Oil and Gas field –HF inspections are occurring Better understand hazards –gathering inspection information –working with partners (e.g. NIOSH)

11. Hydraulic Fracturing Safety Hazards

12. Well Location/Pad Drilling High Pressure Loud Equipment Silica Exposure Permit-Required Confined Space Walking/Working Surfaces Fall Protection Control of Hazardous Energy (LOTO) Personal Protective Equipment (PPE) Pre-Job Meeting Flammable Gases and Vapors

13. Well Location Well head Frac Control Van Sand Trailer Water Storage Tanks Blender Chemical unit Pumper Units

15. Multiple or Pad Location Wireline Logging Unit Well heads Manifold Trailer Wireline Perforation truck Truck mounted crane

17. High Pressure Hazards (cont’d)

18. Chokers High Pressure Hazards (cont’d)

19. Loud Equipment

20. Manifold Trailer Blender

21. Triplex Pumper Quintuplex Pumper

22. Proppant Use Silica Exposure (discussed later) Field Sand Storage Trailer (aka Sand Hog) Sand Conveyor

23. Permit-Required Confined Space (PRCS) Cellar Waste Water Pit Portable Frac Tank

24. Other Examples of PRCS Sand Dump Truck Field Sand Storage Trailer

25. Chemical Unit Acid transport truck

26. Walking/Working Surfaces

27. Fall Protection

28. Control of Hazardous Energy (LOTO)

29. Personal Protective Equipment (PPE)

30. PPE (cont’d)

31. Pre-Job Meeting

32. Flammable Gases and Vapors

33. Hydraulic Fracturing Health Hazards

34. Background Water Base Fluids Silica Chemicals Potential Hazards & Solutions

35. Background Chemicals typically make up just 0.5 and 2.0% of the total volume of the fracturing fluid. When millions of gallons of water are being used, however, the amount of chemicals per fracking operation is very large. For example, a four million gallon fracturing operation would use from 80 to 330 tons of chemicals.Chemicals typically make up just 0.5 and 2.0% of the total volume of the fracturing fluid Fracture fluids may be based on either acid, gel, water, or oil –Most fracturing work is water based

36. Background (cont’d) Toxic chemicals exist in frack fluids Top health effects include: skin, eye, respiratory, & gastrointestinal effects, and brain and nervous system effects “NORM” in relatively small quantities of radium, radon and uranium NORM: Naturally Occurring Radioactive Material

37. Background (cont’d) Myth: Flow back and Produced Water pose a real risk to employees Fact: The chemicals used in fracking pose the highest risk when in bulk, concentrated form There is a X to X ratio of water to chemicals Health –Proper PPE –Portable Eyewash/Shower –Training

38. Water Water is the driving fluid used in the hydraulic fracturing process Depending upon the characteristics of the well and the rock being fractured a few million gallons of water can be required to complete a hydraulic fracturing job hydraulic fracturing

39. Water and Sand: 99.51% This water can be fresh water or recycled water Sand is the proppant Silicosis Alternatives are often available (e.g. ceramics)

40. Silica Exposures

41. OSHA/NIOSH Hazard Alert Summarizes some preliminary data on silica exposure Critical for raising awareness about this hazard

42. –Exposure data and operations where over exposures can occur 47% samples collected exceeded OSHA’s PEL 79% samples collected exceeded NIOSH REL –Control measures (engineering and respirators) –Assistance/Services/Tools

43. Controls for Silica Exposure Use local exhaust ventilation Enclose points where dust is released Reduce drop on sand transfers Replace transfer belts with screws Use water for dust control Limit worker exposure, rotations NIOSH designed control

44. Water Friction reducers Corrosion inhibitors Clay stabilizers Acids Gelling agents Oil Many Types of Fluids

45. ConstituentExamplesPurposeVolume %Gallons WaterDelivery902,700,000 ProppantSandKeep fracture open 9.51285,300 AcidHydrochloricDissolves minerals, opens fracture 0.1233.690 Friction Reducer Polyacrylamide, mineral oil Reduce friction between fluid and pipe 0.0882,640 SurfactantIsopropanolIncrease fluid viscosity 0.0852,550 Potassium Chloride Make brine0.061,800 Gelling AgentGuar gumSuspend proppant in fluid 0.0561,680 The following table shows an example of what hydraulic fracturing fluid contains: Note that this is an example of what may be used in hydraulic fracturing operations.

46. ConstituentExamplesPurposeVolume %Gallons Scale inhibitorEthylene glycolPrevent scale deposits in fluid 0.0431,290 pH bufferCarbonateProtect pH sensitive chemicals 0.011330 PrerservativeAmmonium persulfate Delay gel breakdown 0.01300 CrosslinkerBorate saltsMaintain viscosity with temperature 0.007210 Iron ControlCitric AcidPrevent metal oxide precipitates 0.004120 Corrosion Inhibitor n,n-dimethyl formamide Prevent corrosion0.00260 BiocideGlutaraldehydeInhibit bacterial growth 0.00130 The following table shows an example of what hydraulic fracturing fluid contains: Note that this is an example of what may be used in hydraulic fracturing operations.

47. Potential Health Hazards Ignition and respiratory hazards Potential ignition of flammable or combustible carrier or base fluids Chemical hazards (such as, silica, toxics, asphyxiants) Radiation associated with radioactive tracer materials

48. Possible Solutions Wear proper respirators Provide bonding and grounding for blending, pumping, and sand transfer equipment Use hose covers/shielding for transfer or suction lines containing flammable liquids Prevent contamination and exercise proper personal hygiene

49. Summary Steps to Safety and Health Site Preparation Traditional Safety Hazards traditionally found in oil and gas are present Management of Fluids and Proppants Controls, Safe Work Practices and PPE HazCom Monitoring and Measurement Equipment Emergency Response Procedures

50. Industry Reference and OSHA Info Most widely used industry consensus standards include: American Petroleum Institute (API) RP 54 Oil and Gas Well Drilling and Servicing Operations International Association of Drilling Contractors (IADC) Safety on the Rig Accident Prevention Reference Guide American Society for Testing and Materials (ASTM) 2733 Standard Specification for FR rainwear National Fire Protection Association (NFPA) 2113 Selection, Care, Use, and Maintenance of FR garments OSHA Website Oil and Gas Well Drilling and Servicing eTool Stimulation Wireline Operations Well Logging Perforating

52. www.osha.gov Ronald Williams (315) 451-0808 ext. 3002 williams.ronald@dol.gov