PA Marcellus News Digest 2/19/13

PA Marcellus News Digest 

February 19, 2013

Special: Monitoring of Air, Land, and Water Resources during Shale Gas Production
Department of Energy
Link: http://www.netl.doe.gov/publications/factsheets/rd/R&D167.pdfRelease follows articles.)

Releases

Local Residents Deploy President's Day Actions and Civil Disobedience to Stop Tennessee Pipeline Construction
Wallaby
Feb 19
MILFORD TOWNSHIP, PA. - Early this morning, two local residents engaged in civil disobedience by locking themselves through the Delaware State Forest gate that is being used by pipeline workers to clear cut trees for the Tennessee Gas Pipeline Northeast Upgrade construction. (Photos, video attached.)
Link: http://wallaby.telicon.com/PA/library/2013/2013021979.HTM

MarkWest Utica EMG and Rex Energy Announce Agreement for the Development of Midstream Infrastructure in the Utica Shale
Wallaby
Business Wire
Feb 15
DENVER-MarkWest Utica EMG, L.L.C. (MarkWest Utica EMG), a joint venture between MarkWest Energy Partners, L.P. (NYSE: MWE) (MarkWest) and The Energy and Minerals Group (EMG), today announced definitive agreements with Rex Energy Corporation (NYSE:REXX) (Rex) to provide gathering, processing, fractionation, and marketing services in the Utica Shale.
Link: http://wallaby.telicon.com/PA/library/2013/2013021591.HTM

MSC Responds to President Obama’s State of the Union Address
Marcellus Shale Coalition Newsroom
Feb 12
Pittsburgh, Pa. – Marcellus Shale Coalition (MSC) chief executive officer Kathryn Z. Klaber issued this statement regarding President Barack Obama’s State of the Union address:“Tonight, President Obama laid out an aggressive agenda for America’s future, with energy, job creation and manufacturing leading the way. As the President made clear, the responsible and effectively-regulated development of clean-burning American natural gas has lowered ‘nearly everyone’s energy bills’ all while safeguarding our environment and strengthening our economy.
Link: http://marcelluscoalition.org/2013/02/msc-responds-to-president-obamas-state-of-the-union-address/

Articles

Highland to plot response to Seneca legal threat
Kane Republican
Ted Lutz
Feb 13
AMES CITY – The Highland Township supervisors plans to meet with attorneys to map out a response to a threat of legal action by Seneca Resources.
In a letter, Seneca said it plans to file litigation in federal court to "invalidate" a Highland Township ordinance on the disposal of drilling wastewater in a proposed "injection" well near James City.
Link: http://www.kanerepublican.com/node/5067

Frack water treatment plant construction moving forward
WJACTV
Maria Miller
Feb 13
JOHNSTOWN, Pa. — After years of planning, officials said a new frack water treatment site that's expected to bring hundreds of jobs to the region could be just months away from completion.
Link: http://www.wjactv.com/news/news/frack-water-treatment-plant-construction-moving-fo/nWN52/

ODNR: "Charges today should serve as a warning."
WFMJ
Feb 15
YOUNGSTOWN, Ohio - The Ohio Department of Natural Resources wants to use Ben Lupo as an example for any other companies illegally dumping in the state or country.
Link: http://www.wfmj.com/story/21198434/presser

UPDATED: In wake of major spill, hearing set for D&L energy owner and ODNR tomorrow
WFMJ
Michelle Nicks
Feb 12
YOUNGSTOWN, Ohio - An informal hearing is scheduled between The owner of Hardrock Excavating and D&L Energy and ODNR, to request that their permits reinstated.
Link: http://www.wfmj.com/global/story.asp?s=21141248

Ohio seeks radioactivity testing on drilling wastes
Columbus Dispatch
Spencer Hunt
Feb 13
A proposed law would require oil and gas companies to conduct radioactivity tests on the tons of waste rock, dirt and drilling lubricants produced at drilling sites before those wastes are dumped in Ohio landfills.
Link: http://www.dispatch.com/content/stories/local/2013/02/13/ohio-seeks-radioactivity-testing-on-drilling-wastes.html

DEP opens investigation of methane in Dimock water well
Times-Tribune
Laura Legere
Feb 13
State environmental regulators are investigating high levels of methane in a Dimock Twp. water well in an area of the community still off-limits to some natural gas drilling operations because of a past methane incident.
Link: http://thetimes-tribune.com/news/dep-opens-investigation-of-methane-in-dimock-water-well-1.1443921

DEP gas data released
Times Leader
Feb 13
The Department of Environmental Protection on Tuesday released data about the emissions that natural gas production and processing facilities, including wells and compressor stations, produced in 2011.
Link: http://www.timesleader.com/stories/News-In-brief,263264?category_id=112&town_id=1&sub_type=stories

DEP: Air quality in Pennsylvania improved 2008 to 2011
Post-Gazette
Don Hopey
Feb 13
Air pollution in Pennsylvania has declined significantly since 2008 because of regulations mandating pollution controls and increased use of natural gas for power production, according to 2011 emissions data released Tuesday by the state Department of Environmental Protection.
Link: http://www.post-gazette.com/stories/news/environment/dep-air-quality-in-pa-improved-2008-to-2011-675131/

DEP calculates health benefits of reduced air pollution; methodology questioned
Pitt Trib
Timothy Puko
Feb 12
Pennsylvania's air quality improvement resulted in $14 billion to $37 billion in annual public health benefits, in part because of a shift to more natural gas power generation, state environmental officials said on Tuesday.
Link: http://triblive.com/news/adminpage/3473405-74/pollution-state-gas#axzz2KhovbE95

Range Resources resumes legal offensive against Washington County communities
Pitt Trib
Timothy Puko
Feb 12
Gas drilling company Range Resources is on a legal offensive in Washington County weeks since calling a truce with frequent foes in places such as Cecil.
Link: http://triblive.com/news/allegheny/3471593-74/range-cecil-robinson#axzz2KhovbE95

Good deal? Time will tell on Consol's airport drilling lease
Post-Gazette
Editorial
Feb 13
The 20-year deal that the Allegheny County Airport Authority just approved with an affiliate of Consol Energy Inc. sure sounds good.
Link: http://www.post-gazette.com/stories/opinion/editorials/good-deal-time-will-tell-on-consols-airport-drilling-lease-675130/

Briny water flows into area streams
Observer-Reporter
Natasha Khan
Feb 12
In the January cold, Ken Dufalla’s hands, chapped and raw, shake as he grips a five-foot metal pole with a small, stained plastic container attached and dunks it into the icy, orange-colored water rushing into Ten Mile Creek.
Link: http://www.observer-reporter.com/article/20130212/NEWS01/130219796#.USQFUR1weSp

SRBC Releases “State of the Susquehanna”
NPR State Impact
Susan Phillips
Feb 13
Link: http://stateimpact.npr.org/pennsylvania/2013/02/13/srbc-releases-state-of-the-susquehanna/

Liquefied gas exports would boost growth
Post-Gazette
Jack Rafuse
Feb 9
LNG is a commonly used acronym for liquefied natural gas, essentially natural gas that is put into liquid form, often for the purpose of transportation.
Link: http://www.post-gazette.com/stories/business/opinion/liquefied-gas-exports-would-boost-growth-674067/

ShaleNET: Government-funded program helps job-seekers find work in energy industry
ShaleNET's new round of funding is being used to add training for more stable career paths
Post-Gazette
Erich Schwartzel
Feb 10
One student was a homeless man with welding experience who slept in a tent throughout training. Two were brothers from the state of Indiana who drove to Pennsylvania and stayed in a motel room for four weeks. Another was a veteran just home from being stationed in Korea.
Link: http://www.post-gazette.com/stories/business/news/shalenet-government-funded-program-helps-job-seekers-find-work-in-energy-industry-674190/

Robinson, Washington County, denies request to drill gas wells
Pitt Trib
Tim Puko
Feb 12
Officials in Robinson in Washington County denied permits for two Range Resources Corp. gas well sites Monday night amid mounting legal pressure and lawsuits from the company.
Link: http://triblive.com/news/washington/3464037-74/range-supervisors-township#axzz2KcKCWEiV

Shale permits not on 'trigger list' for extra review in poor areas
Post-Gazette
Don Hopey
Feb 10
The state Department of Environmental Protection has granted hundreds of permits for Marcellus Shale gas development in Pennsylvania's poor and minority communities.
Link: http://www.post-gazette.com/stories/local/marcellusshale/shale-permits-not-on-trigger-list-for-extra-review-in-poor-areas-674155/

Environmentalists Call on EPA to Revisit Range Contamination Case
NPR State Impact
Susan Phillips
Feb 11
Link: http://stateimpact.npr.org/pennsylvania/2013/02/11/environmentalists-call-on-epa-to-revisit-range-contamination-case/

Here we go again
Patriot-News
Louis D. D'Amico, Pennsylvania Independent Oil & Gas Association
LTE
Feb 11
[...]
Less than five months after the first dollars flowed from Pennsylvania’s impact fee on Marcellus Shale wells across the Commonwealth and less than two months before the second- year fees are due, an article in the Patriot, “Budget Boom?”, by StateImpact raises the call for a severance tax. That story did not learn from the facts or the history of taxes paid by all Pennsylvania businesses, including the natural gas industry.
Link: http://www.pennlive.com/letters/index.ssf/2013/02/letters_here_we_go_again.html#incart_river

Range cooperates with communities
Observer-Reporter
Jim Cannon, manager of local government relations for Range Resources
Opinion
Feb 10
There have been recent stories and letters in the Observer-Reporter related to Range Resources and Robinson Township, and we’d like to set the record straight.
Link: http://www.observer-reporter.com/article/20130210/OPINION02/130219969#.USP-7x1weSp

Energy event: State in good position with natural gas
Public Opinion
Samantha Cossick
Feb 11
CHAMBERSBURG - With natural gas comprising 26 percent of the nation's fuel consumption, Pennsylvania is posed to play a major role. However, that role comes with costs, as well as, benefits.
Link: http://www.publicopiniononline.com/latestnews/ci_22557579/energy-event-state-good-position-natural-gas

Enviros want political meddling added to agency's Range probe
E&E News
Energy Wire
Mike Soraghan
Feb 12
(full text below)
Environmental groups want an investigation started by supporters of the oil and gas industry to turn to alleged political meddling by a drilling company.

The groups yesterday asked U.S. EPA Inspector General Arthur Elkins Jr. to look into whether the agency improperly dropped its investigation into Range Resources Corp.'s involvement in a Texas methane migration case.

"We want to ensure that your investigation encompasses issues that have recently come to light that raise questions about EPA's commitment to protecting the public from oil and natural gas drilling pollution," said the letter: http://www.earthworksaction.org/files/publications/2013-EWG-IG-Letter.pdf , signed by representatives of Earthworks, the Environmental Working Group and more than 80 other environmental groups.

Sen. James Inhofe (R-Okla.), one of the most outspoken supporters of the oil and gas industry in Congress, sought the IG investigation in June 2012 along with Texas' two senators and three other Republicans (EnergyWire, June 19, 2012).

In the wake of EPA's decision to drop the case and the resignation of an EPA regional administrator, they called on Elkins to investigate why the case was brought against Range. The environmental groups don't think the case should have been dropped and want the agency's internal watchdog to see whether political influence played a role.

Dallas-based EPA regional officials brought the case in December 2010 with an emergency order. They alleged that Range's Barnett Shale drilling operations had allowed natural gas to leak into the water supply of two homes in Parker County, Texas, outside Forth Worth.

The agency dropped the case in March 2012 for reasons never fully explained.

Range denied EPA's allegations and says it has proved that its operations could not have caused the methane in their wells.

"We're pleased that every expert who has examined this case has determined that Range did not cause or contribute to the long-standing matter of naturally occurring methane in the Trinity aquifer, an issue that thousands of homeowners and state agencies have effectively managed for decades," Range spokesman Matt Pitzarella said in a statement last week. "We encourage any interested parties to examine the extensive hearing from 2011 by the Texas Railroad Commission."

EPA and homeowners declined to attend that hearing of the Railroad Commission, which regulates oil and gas, but not trains.

The political influence the groups referred to includes former Democratic Pennsylvania Gov. Ed Rendell's intervening on Range's behalf in a 2011 meeting with EPA Administrator Lisa Jackson (EnergyWire, Feb. 5).

The environmental groups' statement also references an Associated Press story that said EPA officials dropped the case despite findings bolstering it. Geologist Geoffrey Thyne, who worked at the time for the University of Wyoming's Enhanced Oil Recovery Institute, concluded from chemical testing that the gas in the drinking water could have originated from Range Resources' nearby drilling operation.

The AP story also indicated that the case might have been dropped in an attempt to secure Range's cooperation with EPA's national study of hydraulic fracturing.

Dallas-based Regional Administrator Al Armendariz, who brought the case, resigned a month after the case was dropped when Inhofe circulated a 2-year-old video of remarks Armendariz had made at a town hall meeting. In it, Armendariz compared his strategy of making examples of violators to Roman conquerors' strategy to "crucify" random villagers.

###

Obama's 'not if, but when' pledge on climate actions thrusts gas into spotlight
E&E News
Energy Wire
Joel Kirkland
Feb 13
(full text below)
In the first State of the Union address of his new term, President Obama embraced a series of policy trade-offs that fall under the White House's "all of the above" energy rubric, including the expansion of oil and gas drilling and actions to combat global warming by reinvesting in clean energy technology.

The speech reflected positions that emerged quickly over the past year, as the president barnstormed outside the oil hub in Cushing, Okla., and shaped his energy message in preparation for a re-election campaign. Last night's message to Congress again put the energy security gained from more U.S. oil and gas production on the same fleet of energy and environmental prescriptions as technologies designed to replace carbon-intensive fossil fuels.

"We produce more natural gas than ever before -- and nearly everyone's energy bill is lower because of it," Obama said. "And over the last four years, our emissions of the dangerous carbon pollution that threatens our planet have actually fallen.

"But for the sake of our children and our future, we must do more to combat climate change."

The president called for a "bipartisan, market-based" climate bill, reiterating that if Congress "won't act soon to protect future generations, I will."

The agency most directly responsible for regulating greenhouse gas emissions, U.S. EPA, is considering whether to set emissions limits on existing power plants. The top-down regulatory approach through the Clean Air Act is opposed by electric utilities concerned about having to transition to cleaner power generation too rapidly, requiring big capital expenditures and, some argue, threatening electricity system reliability.

The big loser in such a scenario would be coal-fired power plants, of which many of the older and least efficient are already scheduled to close down. Depending on where the limits are set, the main beneficiaries of such a plan could be natural gas-burning power plants, which produce less carbon dioxide emissions, but are not the zero-emissions solution environmental groups are promoting.

"The president has a full box of tools to strike back at climate chaos," said Francis Beinecke, president of the Natural Resources Defense Council. "The best tool he has is the Clean Air Act."

"The president was clear about the magnitude of the challenge and resolute in his determination to use his executive authority to take action, especially if Congress won't," said Carol Browner, Obama's former top White House energy and climate policy adviser, now at the liberal-leaning Center for American Progress.

Energy Security Trust proposal

To the Washington interest groups that listen carefully for tone and substance, the president's speech appeared to resonate. But for hot-button issues, including the prospect of exporting U.S.-produced natural gas, Obama's speech required reading between the lines. He urged Congress to adopt programs meant to boost manufacturing, a broad sector that includes companies aggressively opposing liquefied natural gas (LNG) exports out of fear that shipping more overseas could raise energy prices here.

One other big trade-off is the government's use of royalties, taxes and fees collected from oil and gas producers operating on public land. Obama floated the Energy Security Trust, an idea generated outside the White House.

"I propose we use some of our oil and gas revenues to fund an Energy Security Trust that will drive new research and technology to shift our cars and trucks off oil for good," Obama said. "If a nonpartisan coalition of CEOs and retired generals and admirals can get behind this idea, then so can we. Let's take their advice and free our families and businesses from the painful spikes in gas prices we've put up with for far too long."

The president was referring to a group called Securing America's Future Energy, or SAFE. The group bills itself as a nonpartisan organization that aims to improve U.S. national security by slashing the nation's economic dependence on oil.

That means cutting petroleum imports, a goal that has been partially met in the past four years as the economic slump decreased demand, cars became more fuel-efficient and the United States produced more of its own oil.

The group, which includes corporate luminaries like FedEx CEO Fred Smith and a number of former military brass, presses policy agendas that tack toward both ends of the political spectrum. It supports opening up Alaska wildlife refuges to drilling and the expanding use of electric cars. It also promotes policies to promote natural gas vehicles because so much of the gas is developed in the United States.

Robbie Diamond, the head of SAFE, said after the speech that the group supported the establishment of an "Energy Security Trust" to shift some of the oil and gas largesse to advancing new technologies.

"The oil boom has created a unique opportunity to have our cake and eat it, too," he said. "We can use part of the revenue generated from expanded oil production to fund the research and development of the alternative fuels and vehicles required to end America's oil dependence."

He called on the fund to be "laser-focused" on technologies that create competition in the transportation sector.

Getting at more -- and cleaner -- natural gas

Still, Obama said the administration would speed up permits for drilling on public land, which so far has not been the focus of a natural gas boom that has played out primarily on private land.

In a statement reflecting the American Petroleum Institute's traditional position that oil and gas companies should be able to explore and drill on nearly every corner of public land and protected water managed by the U.S. government, API President Jack Gerard repeated his call on the White House to lift restrictions and "burdensome regulations."

"Unfortunately, 83 percent of the land and offshore areas controlled by the federal government are still off-limits to oil and natural gas development," Gerard said. "President Obama must follow through by implementing a national energy policy, lifting existing restrictions in support of responsible development of our vast energy resources, approving the Keystone XL pipeline, and standing up against unnecessary and burdensome regulations that chill economic growth."

For perhaps the first time, Obama talked about using research and technology to help "natural gas burn even cleaner and [protect] our air and water."

While the president wasn't specific, the Energy Department has continued to pursue technological breakthroughs tied to carbon capture and storage. That goal primarily targets coal-fired power stations, but advanced technology could also slash emissions at natural gas-burning plants.

Upstream, there continues to be tension between environmental groups and the president's "all the above" energy strategy when it comes to natural gas development. Critics of the process have urged the administration, through U.S. EPA, to take a stronger stand against shale gas drillers found to have polluted air or water. Today, much of the focus at U.S. national labs is on cracking geological codes still holding back some oil and gas production, but some of the emphasis has turned to shrinking the environmental footprint during the shale gas production process.

Obama's comment also suggests an emphasis on harnessing private-sector investment in advanced drilling and "green completion" technology. On some levels, General Electric Co., Halliburton Co. and Schlumberger Ltd. are pursing technology that could make the process safer.
###

Fracking study helped drive Range case to dismissal
E&E News
Energy Wire
Mike Soraghan
Feb 13
(full text below)
Top U.S. EPA officials were concerned about Range Resources Corp.'s participation in a national hydraulic fracturing study as they prepared to withdraw a high-profile Texas pollution case against the oil and gas company last year, emails obtained by EnergyWire show. They also show that the agency was worried EPA officials could get dragged into court in a related lawsuit.

The emails, released yesterday in response to a Freedom of Information Act request, also show that then-Administrator Lisa Jackson took a close interest in the case. She hosted several meetings on the case and weighed in when it was over.

"I know it has been a hard few weeks, but I think it is the best way forward," Jackson wrote to Assistant Administrator Cynthia Giles on March 29, the night before the case was dropped.

The EPA officials were concerned enough about the study that they reviewed Range executives' letter about it a day before it was officially sent to EPA. And the talking points they prepared for the day the case was withdrawn specifically cite participation by Range as an advantage of dropping the case.

"Range will also provide useful information and access to EPA in support of EPA's scientific inquiry into the potential impacts of energy extraction on drinking water," the EPA memo states. The study is a broad, multiyear look at how fracturing and drilling affect the safety of drinking water.

But it is not clear what EPA gained. Range spokesman Matt Pitzarella said the company is not part of the study, due to be completed in 2014.

"We are however, and have been, partners with the DOE [Department of Energy] and NETL [National Energy Technology Laboratory] on various studies and testing of BMPs [best management practices]," Pitzarella explained in an email.

The messages, between both political appointees and career staff, provide a glimpse behind the scenes at a crucial point in the Obama administration's handling of the nation's shale boom.

In the weeks before the case was withdrawn, EPA had also agreed to retest groundwater in Pavillion, Wyo., that it had deemed contaminated with hydraulic fracturing fluid and announced that its high-profile intervention in Dimock, Pa., had yielded benign results. The three-pronged retreat was a dramatic turn away from what had been an assertive posture in shale drilling cases.

The Associated Press has reported previously the link between the withdrawal of the case and the national study (EnergyWire, Feb. 12). The emails released yesterday offer the first details of EPA officials' concerns and the extent of their interest in gaining Range's participation.

But the emails, heavily redacted in some places, do not offer a clear reason for EPA's legal retreat, which has never been fully explained in public. EPA's Office of Inspector General belatedly confirmed yesterday in an email that it is currently investigating how the agency got into the case and how it got out.

Timeline

Dallas-based EPA Regional Administrator Al Armendariz brought the high-profile Safe Drinking Water Act case in December 2010. In an emergency order, the agency alleged that Range's Barnett Shale gas wells were leaking methane gas into two homes in the Silverado subdivision in Parker County, west of Fort Worth. The order also accused the Texas Railroad Commission, which regulates oil and gas but not trains, of failing to protect the homeowners in the neighborhood.

Range denied the accusations then and denies them now. Company officials also stress that they did not settle the case -- EPA withdrew it.

The Railroad Commission exonerated Range after a January 2011 hearing in which EPA and the homeowners didn't testify.

The first hints of settlement came about two months later, apparently arising out of a discussion between Jackson and former Pennsylvania Gov. Ed Rendell, who was newly out of office. An EPA lawyer wrote that Rendell "proposed certain terms to the Administrator," acting as "a spokesman for Range." Rendell has confirmed he interceded on behalf of Range Resources Corp. but said he didn't go in with a settlement proposal (EnergyWire, Feb. 7).

Discussions kicked into high gear about a year later, as Jackson prepared to meet with Ignacia Moreno, head of the Environment and Natural Resources Division at the Justice Department, which was in charge of prosecuting the case.

The March 5 meeting drew a reaction when Giles learned of it.

"I am not comfortable with where we are re meeting with DOJ on Monday, and would like to discuss with you tomorrow [morning]," Giles emailed Jackson.

Two days later, Jackson emailed Giles, head of EPA's Office of Enforcement and Compliance Assurance, in the evening.

"Hi. Can I get an update tomorrow morning on Range?" Jackson wrote. Giles responded three minutes later: "Yes -- will set it up."

No details of that March 8 meeting were disclosed. But that day, Giles called Range's attorney, leaving a message "that we want to get this back on track and to make a serious attempt to see if we can resolve the matter quickly." Deputy Assistant Administrator Steven Chester lined up EPA's Office of General Counsel and Department of Justice lawyers to do a call the next day.

It was understood at that point that both cases were going to be dropped.

"Dismissing both matters is implicit," Giles wrote to a colleague.

A swipe at enforcement and 'an additional concern'

The acceleration in the pace of the case came before the March 21, 2012, Supreme Court ruling in the Sackett v. EPA case that took a broad swipe at EPA's enforcement authority. Some have attributed EPA's decision to bail out of the Range case to its loss in the Sackett case.

Another factor in EPA's reasoning appears to have been a lawsuit winding its way through state court and whether EPA officials could get pulled into it. A Texas judge had dismissed landowner Steve Lipsky's case against Range because the Railroad Commission had ruled the company wasn't at fault. But Range's defamation and conspiracy counterclaim against Lipsky was going forward.

Bernadette Rappold, director of EPA's Special Litigation and Projects Division, indicated to colleagues that EPA employees could get dragged into the case. In an email titled "an additional concern," she explained that EPA could become a key part of the case.

"Range's conspiracy claims expressly reference EPA," she wrote, including Armendariz and two other EPA staffers.

"I understand that Range started this week on the process for trying to get depositions of three EPA Region 6 employees," Rappold wrote on March 16.

But the national study into hydraulic fracturing loomed large for the headquarters team figuring out what to do with the Range case.

The study was urged on EPA by members of the House Appropriations Committee when the chamber was controlled by Democrats. It has been contentious from the start, as drilling critics packed hearing halls for the "scoping" process, environmental groups and industry lobbied to get their favored scientists on the peer review panel and the agency tangled with Halliburton Co. about what information the company should hand over.

In a March 14 memo marked "CONFIDENTIAL," Rappold laid out Range's actions regarding the national study. The memo noted that Range had "denied access" to sites in Pennsylvania, while adding that "it continues to provide access to USGS [U.S. Geological Survey] and DOE."

EPA senior policy counsel Bob Sussman noted in emails that officials from the EPA research branch conducting the fracturing study would be joining a conference call about the case.

Studies with Range

Range is one of the major drillers in Pennsylvania, but nothing in the emails released yesterday explains why the participation of Range, one of many shale drilling companies, was important to the study.

Pitzarella said that Range wasn't going to work with an agency that was pursuing it in court.

"Our prior refusal to voluntarily participate in the [hydraulic fracturing] study was the same as it would be with anyone that we were locked in a legal dispute with," Pitzarella said. "If we were in a suit with a contractor over something we strongly disagreed with, we would suspend other work with that contractor if we could. That was our approach with the EPA as well."

At the time the case was withdrawn, it looked like Range would participate. On April 4, 2012, several days after the case was dropped, Range CEO Jeff Ventura and Executive Chairman John Pinkerton signed a letter to EPA that is still posted to the company's website.

"We are pleased that, with the matter of the emergency order resolved, Range is now able to cooperate with the agency in providing access to study sites as part of the EPA's hydraulic fracturing study," they wrote.

The night before, Giles, Sussman and EPA Deputy Administrator Bob Perciasepe were on an email thread examining a draft of the executives' letter.

"Let's discuss comments on the draft letter," Giles wrote, above a slightly different version of the sentence about the study. "What do you think?"
###

Research Projects Addressing Technical Challenges to Environmentally Acceptable Shale Gas Development Selected by DOE (FROM SPECIAL)

Washington, D.C. — Fifteen research projects aimed at addressing the technical challenges of producing natural gas from shales and tight sands, while simultaneously reducing environmental footprints and risks, have been selected to receive a total of $28 million in funding from the U.S. Department of Energy’s Office of Fossil Energy (FE).

The projects, valued at just over $36.6 million over two years, add to the research portfolio for FE’s Ultra-Deepwater and Unconventional Natural Gas and Other Petroleum Resources Research Program, which develops technologies and strategies to improve the safety and minimize the environmental impacts of oil and natural gas exploration and production.

The projects will address research needs primarily in four categories: (1) reduced environmental impacts, (2) improved water handling and treating methods, (3) enhanced characterization of shales, and (4) improved understanding of the hydraulic fracturing process.

Projects range from testing innovative technologies for cleaning fracture flowback water, to finding new ways to improve casing cement jobs, to increasing the understanding of the relationship between underground water disposal and induced seismicity.

Approximately $8.6 million of the total value of the projects is provided via cost-share by the research partners, in addition to $28 million in federal funds. The research contracts will be administered by the Research Partnership to Secure Energy for America (RPSEA), under the management of FE’s National Energy Technology Laboratory. The projects selected under today’s announcement include:

·         GSI Environmental, Inc. (Houston, TX)—Reducing the Environmental Impact of Gas Shale Development: Advanced Analytical Methods for Air and Stray Gas Emissions and Produced Brine Characterization. The research team will develop practical and cost-effective methods to address three environmental risks associated with shale gas development: potential emissions of volatile air contaminants from produced water impoundments, potential impacts of methane and other gases on groundwater resources, and ineffective treatment, disposal, or reuse of produced water. The research products will be scientifically based protocols for effective sampling, analysis, and interpretation of data during monitoring of waste streams. DOE share: $1,542,193; Recipient share: $510,000; Duration: 1 year
·         
·         CSI Technologies, Inc. (Houston, TX)—Development of Methods to Prohibit and Remediate Loss of Annular Isolation in Shale Gas Wells: Prevention and Remediation of Sustained Casing Pressure and Other Isolation Breaches. The objectives of this project include the evaluation of sealants and devices capable of shutting off or preventing the formation of pathways for fluid communication in the casing/borehole annulus, and field testing of preventive and remedial protocols in both the Fayetteville and Marcellus shale plays.DOE share: $4,005,930; Recipient share: $2,700,000; Duration: 2 years
·         
·         The University of Texas at Austin (Austin, TX)—Relationships Between Induced Seismicity and Fluid Injection: Development of Strategies to Manage Fluid Disposal in Shale Hydrocarbon Plays. The research team will seek to learn why fluid disposal induces earthquakes in some areas and not in others, with the aim of developing improved injection technology that optimizes disposal volume and cost while avoiding induced seismicity. The project includes a survey of seismic activity in four basins; acquisition of data concerning injection locations, histories, and volumes; spatial and temporal correlation analysis of injection and earthquake activity; collection of structural data in study areas that show different levels of seismic activity; geomechanical and statistical analysis; and development of improved injection strategies. DOE share: $963,792; Recipient share: $259,123; Duration: 2 years
·         
·         University of Southern California (Los Angeles, CA)—Water Handling and Enhanced Productivity from Gas Shales. Using a combination of computer modeling, field tests, and laboratory experiments utilizing Marcellus Shale core samples, researchers will seek to improve understanding of the interactions between shale and fracturing fluids, and the impacts of such interactions on well productivity. The results will provide new guidelines on optimal choices for hydraulic fracturing treatment design and the treatment and reuse of fracture flowback water,. DOE share: $1,741,215; Recipient share: $506,027; Duration: 2 years
·         
·         Colorado State University (Fort Collins, TX)—Development of GIS-Based Tool for Optimized Fluid Management in Shale Operations. The researchers will develop a GIS-based tool for optimizing fluids management decisions during shale gas development and production in the Wattenberg field in northeastern Colorado. Products will include case studies, user manuals, and online training materials to allow the tools to be applied in other natural gas basins. DOE share: $1,395,949; Recipient share: $289,898; Duration: 2 years
·         
·         Southern Research Institute (Birmingham, AL)—Advanced Treatment of Shale Gas Frac Water to Produce NPDES Quality Water. The goal of this project is further development and optimization of four advanced water treatment technologies: two for fracturing flowback water treatment and two for treatment and disposal of residual high solid slurry and concentrated brine. The technologies are magnetic ballast clarification, vortex-generating and nanofiltration membranes, hydrogel adsorption, and a combination of precipitation, solidification and stabilization. DOE share: $2,488,919; Recipient share: $289,898; Duration: 2 years
·         
·         Ohio University (Athens, OH)—Cost-Effective Treatment of Flowback and Produced Waters Via an Integrated Precipitative Supercritical (IPSC) Process. The objective of this project is to validate the performance and cost-effectiveness of the IPSC process to convert fracture flowback and produced water generated by unconventional shale gas wells into a clean water product. This technology combines ultraviolet light treatment, chemical precipitation, and an advanced supercritical reactor incorporating a hydrocarbon reforming catalyst. DOE share: $1,936,630; Recipient share: $500,160; Duration: 2 years
·         
·         Battelle Memorial Institute (Columbus, OH)—Development of Subsurface Brine Disposal Framework in the Northern Appalachian Basin. This project will address the need for subsurface brine disposal options in the PA-OH-WV-KY area by compiling geological and reservoir data, developing geocellular models from logs and seismic data, and carrying out advanced reservoir and geomechanical simulations to better understand the geologic setting, reservoir dynamics, geomechanical issues, and subsurface effects of brine disposal. Maps, geologic cross sections, an inventory of reservoir parameters, and practical guidance for injection operations will constitute the final deliverables. DOE share: $1,569,592; Recipient share: $402,732; Duration: 2 years
·         
·         Drexel University (Philadelphia, PA)—Development of Plasma Technology for the Management of Frac/Produced Water. The objective of this project is to further develop an integrated plasma water treatment system for improved management of fracturing flowback and produced water. The system will include plasma-induced water softening, plasma-assisted self-cleaning filtration, and vapor-compression distillation. DOE share: $1,574,690; Recipient share: $395,060; Duration: 2 years
·         
·         Colorado School of Mines (Golden, CO)—Advancing a Web-Based Tool for Unconventional Natural Gas Development with Focus on Flowback and Produced Water Characterization, Treatment and Beneficial Use. The research team will develop a set of web-based tools that will support producers, regulators, and others in the effort to characterize, treat, beneficially use, and manage produced water and fracturing flowback water. Key elements include improved understanding of chemical compositions of flowback and produced waters, models to predict variability of produced water quality, a database of water qualities and quantities, and case studies from industry partners that illustrate and validate application of the tools. DOE share: $286,984; Recipient share: $106,796; Duration: 3 years
·         
·         The University of Texas, Bureau of Economic Geology (Austin, TX)—Understanding and Managing Environmental Roadblocks to Shale Gas Development: An Analysis of Shallow Gas, NORMs, and Trace Metals (Texas). The objectives of this study are to (1) enhance understanding of shallow gas deposits, naturally occurring radioactive materials, and metals (to better characterize the potential risk of groundwater contamination); and (2) enhance understanding of the nature and variability of fracturing flowback water (to better adjust and optimize flowback treatment). DOE share: $1,300,504; Recipient share: $325,144; Duration: 2 years
·         
·         Oklahoma State University (Stillwater, OK)—Petrophysics and Tight Rock Characterization for the Application of Improved Stimulation and Production Technology in Shale. The project team will develop new analytical standards for petrophysical characterization of shale and new analytical methods that can reduce cost and increase the reproducibility and reliability of shale characterization results. DOE share: $1,529,702; Recipient share: $383,850; Duration: 2 years
·         
·         Texas A&M University (College Station, TX)—Conductivity of Complex Fracturing in Unconventional Shale Reservoirs. The research team will conduct experiments to determine the effect of proppant type, size, and concentration on fracture conductivity in the Barnett, Fayetteville, and Eagle Ford shales. The results will be compared to production history observations to shed light on possible causes of fracture treatment failures and unexpected production performance declines, and to provide guidelines for improving hydraulic fracturing practices in these formations so that fewer wells are needed to develop the resource. DOE share: $883,507; Recipient share: $220,877; Duration: 2 years
·         
·         Texas A&M University (College Station, TX)—Fracture Permeability Caused by Shear Slip in Gas Shale Reservoirs. The objectives of this project are to investigate fracture permeability generation in shale, quantify how the fracture permeability changes with normal and shear stress and assess permeability regain when gas flows after shear slip by water pressure. The results will improve the ability to utilize the self-propping character of natural fractures to improve the performance of hydraulically fractured wells and to develop more efficient and less impactful well-stimulation designs. DOE share: $622,115; Recipient share: $155,528; Duration: 2 years
·         Gas Technology Institute (Chicago, IL)—Advanced Hydraulic Fracturing. The research team will (1) develop a real-time hydraulic fracturing control methodology through coupled analysis of geophysical fracture diagnostic data and pumping pressure, rate, and fluid density; and (2) verify the results through extensive production testing. The work will produce improved guidelines for environmentally safe and economically optimal fracture stimulation of low permeability reservoirs, including the acquisition and use of high-resolution microseismic data for fracture mapping. DOE share: $6,201,731; Recipient share: $1,565,000; Duration: 2 years
 

Contact:
Jenny Hakun, FE Office of Communications, 202-586-5616, jenny.hakun@hq.doe.gov###