1. HYDRAULIC FRACTURING (FRACKING) AND OFFSHORE DRILLING IN FLAGLER COUNTY CITY COUNCIL WORKSHOP JUNE 9, 2015

2. “WHAT IS CONVENTIONAL DRILLING (OIL EXTRACTION)?” OIL AND GAS EXTRACTION IS THE EXPLORATION AND PRODUCTION OF PETROLEUM AND NATURAL GAS FROM WELLS. THE INDUSTRY GENERATES WASTEWATER FROM THE WATER EXTRACTED FROM THE GEOLOGICAL FORMATIONS AND FROM CHEMICALS USED DURING EXPLORATION, WELL DRILLING AND PRODUCTION OF OIL AND GAS. SOURCE: ~ US ENVIRONMENTAL PROTECTION AGENCY (EPA) 2015

3. “WHAT IS FRACKING?” OIL AND GAS COMPANIES UTILIZE HYDRAULIC FRACTURING (FRACKING) AS A MEANS TO EXTRACT NATURAL GAS OR OIL FROM TARGET ROCK FORMATION. FLUID IS PUMPED AT HIGH PRESSURE TO RELEASE TRAPPED FUEL. FRACTURING FLUID IS COMPRISED OF DIFFERENT SUBSTANCES INCLUDING, BUT NOT LIMITED TO WATER, SAND, HYDROCHLORIC ACID, METHANOL, HYDROTREATED LIGHT PETROLEUM, AND ADDITIVES (SINGLE OR MULTIPLE INGREDIENTS). SOURCE: ~ US ENVIRONMENTAL PROTECTION AGENCY (EPA) 2015

4. “WHERE ARE THE WELLS?” Source ~ Florida Department of Environmental Protection (DEP) 2015 Over 1,000 permitted wells have been drilled since 1943. During this timeframe, the petroleum industry has safely produced 611 million barrels of crude oil and 689 billion cubic feet of natural gas in Collier, Hendry, Lee, Dade, Escambia, and Santa Rosa counties. ~ DEP

5. SOME EXISTING LAWS Chapter 377, Florida Statutes: Energy Resources 377.371(1) A person drilling or producing oil, gas, or petroleum products, or storing gas in a natural gas storage facility, many not pollute land or water; damage aquatic or marine life, wildlife, birds, or public or private property; or allow any extraneous matter to enter or damage any mineral or freshwater-bearing formation 377.22(2)(d) To require the drilling, casing, and plugging of wells to be done in such a manner as to prevent the escape of oil or other petroleum products from one stratum to another 377.22(2)(w) To require that geophysical operations requiring a permit be conducted in a manner which will minimize the impact on hydrology and biota of the area, especially environmentally sensitive lands and coastal areas

6. 2015 LEGISLATION THAT FAILED HOUSE BILL 1205 / SENATE BILL 1468 SAMPLE OF PROPOSED REVISIONS (NOT ALL) Empower Florida Department of Environmental Protection (DEP) to issue a single permit that authorizes multiple Program activities; Define “high-pressure well stimulation” as a well intervention performed by injecting more than 100,000 gallons of fluid into a rock formation at high pressure that exceeds the fracture gradient of the rock formation in order to propagate fractures in such formation to increase production at an oil or gas well by improving the flow of hydrocarbons from the formation into the wellbore; Require DEP to conduct a study on the potential effects of performing high-pressure well stimulations and provides an appropriation for the study; Prohibit a county, municipality, or other political subdivision of the state from adopting or establishing programs to issue permits for any activity related to oil and gas drilling, exploration, or production;

7. PERSPECTIVES Water Fragile environment Limited studies JobsHome ruleTourism

8. STAFF IS SEEKING DIRECTION FROM CITY COUNCIL FOR POSSIBLE FUTURE ACTION ON A MORATORIUM ON FRACKING AND OFFSHORE DRILLING IN FLORIDA (FLAGLER COUNTY RESOLUTION ATTACHED AS GUIDELINE)