December 22, 2011 GOVERNANCE FOR SUSTAINABILITY The Role of Regulations Terry R. Bossert September 27, 2013

2 SUSTAINABILITY  Operations that meet the needs of the present without compromising the ability of future generations to meet their own needs.  What are the “needs” v. the “wants.”  “You Can’t Always Get What You Want” Jagger/Richards

3 THE ROLE OF REGULATION  DIRECTIVE  MOTIVATIONAL  IN THE WAY

4 PROMOTING SUSTAINABILITY  DIRECTIVE –  No flowback treated at POTW; reduced TDS to streams.  E&S controls with post-construction storm water requirements.  MOTIVATIONAL  Air Emission Inventory reporting.  Frac fluid reporting.  Water Well impact presumption.

5 WHICH IS BETTER  Industry tends to prefer the motivational – it allows for innovation and variation.  Agencies seem to prefer directive – it allows for greater control and ease of administration.  EPA’s Quad O NSPS – an example of doing both.  Directive - emission controls, leak detection, etc.  Motivational – Green Completions required in the future.

6 IN THE WAY  Regulatory programs developed in a silo – fail to consider other media and other opportunities.  Overly rigid regulations that fail to adapt to new technologies or innovations – all liners must be the same.  Complicated regulations and/or time consuming application processes that discourage innovation.  If it does not move for ten minutes it must be a waste!  O&G Opportunities – storage for recycling flowback; drill cuttings as aggregate; habitat enhancing pad restoration; AMD usage.