1. JKLM Reese Hollow 118 2HU Gas Well Release
Potter County Natural Gas Resource Center
Coudersport, PA
December 17, 2015

2. Introduction DEP Representatives
Marcus Kohl – Regional Director, Northcentral Regional Office
Daniel Spadoni – Community Relations Coordinator, NCRO
Jennifer Means – Program Manager, Eastern Oil and Gas District
Dave Engle – Environmental Group Manager, Eastern O & G District
Mike Panettieri – Oil and Gas Inspector Supervisor, Eastern O & G District
Bill Kosmer – Professional Geologist, Eastern O & G District
John Hamilton – Program Manager, Safe Drinking Water Program, NCRO
Randy Farmerie – Professional Geologist Manager, Environmental Cleanup Program, NCRO

3. Site Location:

4. Timeline of Events
September 14 - JKLM began drilling the surface hole of the Reese Hollow 118 2HU Gas Well
Friday September 18, 2015 first report of “soapy water” in home well received and water sample collected by JKLM
Additional reports of impacts to home wells over the following week
Monday September 21 –additional home wells sampled by DEP and Penn E&R (JKLM’s environmental consultant)
September 22 – Public water supply wells sampled

5. Timeline of Events, Cont.
September 22 – Notice of Legal Presumption to JKLM for 2 private water supplies
58 Pa.C.S. §3218(c)(2): Unconventional operator is presumed responsible for pollution of a water supply:
If the water supply is within 2500’ of vertical well bore, and
If the pollution occurs within 12 months of certain activities (drilling, stimulation, etc.)

6. Timeline of Events, Cont.
September 23 – JKLM meeting with public water suppliers and Potter Co EMA
Use of public water supplies in area stopped as a precaution
September 26 –report that pond along Route 6 had been impacted

7. Timeline of Events, Cont.
September 30 – NOV issued to JKLM for release
Violations of Oil and Gas regulations:
Failure to prevent pollution of fresh groundwater;
Drilling through fresh groundwater with a substance other than air, freshwater or freshwater based drilling fluids; and
Violations of the PA Clean Streams Law:
Unpermitted discharge of a polluting substance: Violations of Pennsylvania’s Clean Streams Law

8. Timeline of Events, Cont.
October – November – Investigation continues with additional monitoring of water supplies
October 27 – Presumptive Determination letters sent to 2 water supply owners
Late October-early November - 4 Monitoring wells installed on the well pad and sampled
November 18 – Plugging of the Reese Hollow 118 2HU gas well completed

9. Timeline of Events, Cont.
November 19 – JKLM initiated post-plug sampling of water supplies and monitoring wells
December 14 - Determination letters sent to 4 additional property owners regarding impacts to water supplies

10. Investigation What was released Sampling of existing locations
Home wells
Public water supply wells
Surface water
Monitoring wells

11. Products used on well pad
Surfactant
Isopropanol based soap/foam booster
Rock Oil
Used to assist drilling, multiple different products may have been used
Not authorized products for top hole use
Is the last bullet a correct statement

12. Sampling DEP sampled for: MBAS – indicator of soap Isopropanol
65 Volatile organic compounds and 68 semivolatile organic compounds
precise makeup of rock oil not initially known, to be conservative tested for wide range of organic contaminants
this is a longer list of constituents than the drinking water list
23 Metals and General Chemistry parameters – brine constituents
Methane, ethane and propane

13. Environmental Sampling
Over 100 groundwater wells and springs sampled
9 stream and pond sampling locations
Over 500 water samples collected to date between JKLM and DEP

14. Private Water Supplies
Initial results found chemicals related to release in home wells
Isopropanol
Acetone – associated with surfactant and its degradation
BTEX (petroleum related)
MBAS
increased turbidity
Alternative water supplies provided to impacted residents
No groundwater sampling results from home wells currently exceed the primary drinking water standards for constituents related to the release
Some of the impacted wells still have slightly elevated turbidity
The impacted wells will continue to be monitored for any recurrence of the contamination

15. Private Water Supply Complaints
14 complaints received by DEP
6 positive impact determinations at this time
One non-impact determination
Seven currently still being evaluated, no determination made at this time

16. Public Water Supplies
Pumps turned off as a precautionary measure to not spread plume
No evidence of impact to Public Water Supplies as a result of release
Prior to making a determination on restarting the Public Water Supply wells, a 72-hour well purge will be conducted, followed by split sampling

17. Surface Water Sampling Results
8 sample points established along streams and sampled weekly
9 springs and 1 pond sampled
Results
1 spring and pond showed an initial impact
No current impacts observed

18. Monitoring Wells
4 monitoring wells installed on the well pad in late October and early November
Constructed to mimic home well construction
Packer tests performed to look at specific intervals within wells
Geophysical well logging completed of monitoring wells and gas well
Sampled before and after abandonment of gas well
Transducer also put in monitoring wells and nearby home wells to look for changes in groundwater elevation during gas well abandonment

19. Monitoring Well Results
Geophysics indicated wells intercepted fracture zones
Results of sampling
2 rounds completed
Low levels of MBAS, petroleum constituents (BTEX), tert-butyl alcohol and phthalates(plasticizer) found in samples.
Additional monitoring well locations being evaluated

20. Gas Well Plugging and Abandonment
October 21st
Notice of Intent to Plug a Well form submitted to DEP
November 17th
Cleaned out well bore from 0 to 684’ (attainable bottom at 684’)
Set bottom cement plug from 634’ – 684’
November 18th
Wait on bottom plug cement to set
Placed gravel from 374’ – 634’
November 19th
Placed gravel from 259’ – 374’
Placed sand filter from 190’ – 259’
Set top cement plug from 0 – 190’
Weld plate/monument on top of casing
Plugging Certificate due December 19th

21. Ongoing activities
Samples from 15 groundwater locations and 8 surface water locations collected on a weekly basis, includes public water supply wells and impacted home wells
Hydrogeologic evaluation and sampling of monitoring wells on-going
Department enforcement action still being developed

22. Planned Future Activities
Permanently restore/replace impacted water supplies
Resume operation of public water supply wells at request of water system operators after satisfactory testing results received
A report will be submitted summarizing all activities once investigation is complete

23. Contact
Dan Spadoni Community Relations Coordinator Department of Environmental Protection Northcentral Regional Office 208 West Third Street Suite 101 Williamsport, PA