1. Local Issues Associated With Fracking and Gas Production Ryke Longest Duke Law Environmental Policy Clinic

2. Drilling Impacts Seismic Survey Activity Well Pad Construction Local Roads with Heavy Rigs Access Roads for Well Pads Hauling in Tons of Gravel Surface Water impacts from Spills Surface Water Impacts from Pad Runoff Drilling Cuttings Disposal

3. Drill Rig Photo by Philly Workers Voice

4. Fracking Impacts Water Resource Use for Fracking Storage and Use of Fracking Chemicals Hydrocarbons in Surface Aquifer? Surface Water impacts from Spills and Runoff Water Hauling (200 plus tanker trucks) Produced Water Treatment & Disposal

5. Fracking Operation Graphic by ProPublica

6. Gas Production Impacts Gas Leakage from Surface Infrastructure Noise and Traffic Associated with Production Hydrocarbons in Surface Aquifer Defects in Well Casing Defects in Cement Thermogenic Gas Tracing

7. Graphic by ProPublica Producing Wells

8. Produced Water Impoundments Photo Courtesy of Marcellus Air

9. Gas Cleaning/Compressing Impacts Chemical Storage on Site Hazardous Air Pollutants Air Pollution from Compressor Engines Methane leaks–odorless in pure form BTEX leakage (sweet smell) Hydrogen Sulfide (rotten egg) Noise from Compressor Stations

10. Dehydrating Operation Picture by Marcellus Shale-US

11. Gas Distribution Impacts Chop down trees in right of way Soil Compaction Crossing property, streams, ditches Taking Private Property Safety of Transmission

12. Pipelines: Gathering and Supply Photo by Michael Greenfield

13. Gas Distribution-Compressor Photo by Marcellus Air

14. North Carolina Law Prohibits Injection into Producing Strata Oil and Gas Conservation Act §§ 113-378 to 113-415 regulates drilling. § 113-390. “Waste of oil or gas as defined in this law is hereby prohibited.” § 113-389 (14)(f) defines “drowning with water of any stratum or part thereof capable of producing oil or gas" as “waste.”

15. North Carolina Law: Prohibiting Horizontal Drilling § 113-393(d) prohibits horizontal drilling: “Whenever the Department fixes the location of any well or wells on the surface, the point at which the maximum penetration of such wells into the producing formation is reached shall not unreasonably vary from the vertical drawn from the center of the hole at the surface, provided, that the Department shall prescribe rules and orders governing the reasonableness of such variation.”

16. North Carolina Rules Applicable to Injection Wells Rule 15A NCAC 02C.0209 classifies injection wells and prohibits most types of injection wells This rule prohibits injection wells: – for oil and gas production, – for enhanced recovery of oil or natural gas – for hydrocarbon storage

17. North Carolina Rules Applicable to Injection Wells Rule 15A NCAC 02C. 0213 regulates injection wells. – (a)(5) “For all other well types the minimum horizontal separation between a well that is designed for injection and potential sources of groundwater contamination shall be the distance necessary to prevent migration of contaminants or a violation of groundwater standards as demonstrated by hydrogeologic computer modeling.” – (b) “Drilling fluids and additives shall not contain organic materials that cause the surrounding groundwaters to become non-potable nor toxic substances…”

18. North Carolina Rules Applicable to Injection Wells 15A NCAC 02C.0213(e)(1) PERMITS also requires: “ Pressure at the well head shall be limited to a maximum which will ensure that the pressure in the injection zone does not initiate new fractures or propagate existing fractures in the injection zone, initiate fractures in the confining zone, or cause the migration of injected or formation fluids outside the injection zone or area.”

19. North Carolina Rules on Horizontal Drilling Limitations Rule 15A NCAC 05D.0107(e) – “All wells shall be drilled in such a manner so that vertical deviation of the hole does not exceed three degrees between the bottom of the hole and the top of hole, and shall not deviate in such a manner as to cross property or unit lines, unless an exception is granted by the director.” – The Director is the Director of the Division of Land Resources

20. State Preemption of Local Controls- Craig Case If state law has created a complete and integrated system of regulation, local laws preempted. Chatham County’s hog farm zoning ordinances were preempted by the regulatory scheme created by the State of North Carolina including setbacks and permit requirements. See Craig v. County of Chatham, 143 N.C. App. 30, 545 S.E.2d 455 (2001).Craig v. County of Chatham, 143 N.C. App. 30, 545 S.E.2d 455 (2001).

21. NC DENR Draft Study House Bill 242 Mandated DENR Study Study Draft released Twenty recommendations to be completed before fracking can be permitted “Since there are only two data points and the two wells have significantly different values, it is not clear how well the average value represents the resource throughout the Sanford sub-­‐basin.”

22. NC DENR Recommendations Collect baseline data including groundwater, surface water, and air Water Management Plan limiting each to withdrawals < 20% of 7Q10 streamflow Ensure that state agencies, first responders and companies are prepared for emergencies Clarify Local Regulatory Authority Identify funding source for local road repairs

23. NC DENR Recs (Continued) Research impacts to local governments and infrastructure Develop setbacks Coordinated permit program in DENR Strengthen oil and gas well construction standards Prohibit diesel in fracking fluid and require disclosure of chemicals to DENR

24. North Carolina Law: Recent Changes House Bill 242 passed in June, 2011 Increased bonding amounts and fees relatively modestly Adds sections for increasing landowner protection Limitations on lease terms

25. Left Out of DENR Report and Recs Savings Clause on Pre-emption Local Government Role in Permitting Reducing adverse impacts of boom town Info on consumer issues with leases-DOJ did not provide input Assessment of impact on economy beyond drilling-too little data

26. State Preemption of Local Controls- New York Case Though the legislative history and the preamble to the Oil, Gas and Solution Mining Law [OGSML] suggested a desire to promote the development of the state’s oil and natural gas resources, nothing there indicates any intent “to encourage the maximum ultimate recovery of oil and gas regardless of other considerations, or to preempt local zoning authority.” See Anshutz Exploration Corp. v. Town of Dryden, No. 2011-0902 at *13 (N.Y.Sup. Ct. 2011), available at www.pressconnects.com/assets/pdf/CB185462221.PD F

27. Questions? Ryke Longest Director Duke Environmental Law and Policy Clinic Duke University School of Law Nicholas School of the Environment Box 90360 210 Science Drive Durham, N.C. 27708-0360 (919) 613-7207 longest@law.duke.edu