1. 1 Shale Gas Development and Production Activities Understanding Air Quality Impacts Mike Abraczinskas, Deputy Director North Carolina Division of Air Quality Shale Gas Development and Production Activities Understanding Air Quality Impacts Mike Abraczinskas, Deputy Director North Carolina Division of Air Quality Air Quality Committee Environmental Management Commission March 13, 2013

2. 2 Overview Air emission sources and pollutant profiles Regulatory framework Air Permitting and Compliance –Understanding the processes, sources and emissions –Learning from others Emissions Inventories –What data is available? What data is needed? –Estimate emissions per well site –Estimate air quality impacts Ambient Air Quality Monitoring Plan

3. 3 Source Profile

4. 4 Regulatory Structure – Air Sources Overall, a regulatory framework is in place covering air emission sources (and the permitting process) at shale gas development and production facilities. Only minor tweaks to existing rules may be necessary. WV, PA, KY, WY, OK, TX, AR, LA - No new state air quality rules were required.

5. 5 Air Quality Permitting Learning from other states How have they handled the different phases of the shale gas development process? Looked at AR, CO, PA, WV, TX, WY, OK, LA, KS, UT, OH None cover the drilling/fracturing/completion stage of the process in air quality permits. –Drilling/fracturing not considered stationary sources –Although, completion may be rolled into permits. Several states have developed general permits for the production stage (mainly small air permits for storage vessels and generators) Most compressors require a permit. Processing facilities have the potential to be Title V major sources. This information will help shape DAQs permitting approach.

6. 6 Emissions Inventories Learning from others. –Gathering emission factors per pollutant to enable estimates of emissions per well developed. –Includes: truck trips and idling, land clearing and unpaved roads drilling and drilling mud fracturing completion Once DAQ has estimates on number of wells in a particular area, emissions estimates can be generated. –Allows air quality impacts to be assessed.

7. 7 Project Plan for Baseline Ambient Air Monitoring near Potential Hydraulic Fracturing Zones in Lee County, NC Mike Abraczinskas, Deputy Director North Carolina Division of Air Quality Project Plan for Baseline Ambient Air Monitoring near Potential Hydraulic Fracturing Zones in Lee County, NC Mike Abraczinskas, Deputy Director North Carolina Division of Air Quality March 13, 2013

8. 8 Background 2012 DENR Study – recommended collection of baseline air quality data. Session Law 2012-143 – requires rules related to collection of baseline data in areas where oil and gas exploration and development activities are proposed. DAQ has the authority and expertise to accomplish baseline monitoring objectives without additional rule making.

9. 9 What to monitor? Limited information in NC Relied on experiences of Arkansas, Colorado, Pennsylvania, Texas, Wyoming and USEPA. Helped indentify target air pollutants.

10. 10 Monitoring Objectives Collect data on targeted air pollutants to establish ambient air quality prior to start-up of possible emission sources from shale gas exploration. Minimum of one year of data is recommended to account for any seasonal, weekly and daily variations. Use standard monitoring protocols and methods to ensure consistent, high quality data.

11. 11 Where to monitor? Assessment of existing monitoring network relative to shale gas deposits. Identified existing, well-placed upwind and downwind multi-pollutant air monitoring locations in Montgomery and Wake counties. –Sites near the Triassic Basin, but not within the area that may be considered most promising for shale gas production. Sanford sub-basin in Lee County –No existing air monitoring in Lee County. Recommendation: Establish a multi-pollutant air monitoring site in Lee County.

12. NC Air Quality Monitoring Network Deep River basin Sanford sub-basin Dan River basin Recommended air monitoring location

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14. 14 Summary Expanding knowledge base –Gaining understanding of emission sources –Becoming familiar with federal rules that apply –Permitting team –Emissions Inventory team –Baseline monitoring plan in place. Will begin process of looking for an appropriate monitoring site – March 2013. Gathering information from other state air agencies where shale gas development activities are happening. Information will help shape DAQs approach.

15. 15 Contact Information Mike Abraczinskas, CPM, EIT Deputy Director NC Division of Air Quality (919) 707-8447 –Visit our web site: http://www.ncair.org/ Michael.Abraczinskas@ncdenr.gov