News about environmental matters of the exploitation of unconventional hydrocarbons in the United States

One of the main concerns about the exploitation of unconventional hydrocarbons in the United States is the environmental factor.

On December 4 Dave Neslin, Scott Anderson, Steve Leifer and Tom Jackson, experts in the environmental matters of  hydrocarbon activities, gave a talk with updates in these matters in the Lex Mundi forum, one of the most important law firm international associations (www.lexmundi.com).

Although the direct and indirect benefits of the exploitation of unconventional resources are considerable, the environmental impact associated with hydraulic fracturing (a technique known as “fracking”), continue to generate doubts and concerns in the population and, above all, in environmental non-governmental organizations.

One of the main concerns about fracking is the possible migration towards superficial and underground water sources of the fluids used. However, within the framework of the environmental claims, there has t been no causal link determined between fracking and water contamination yet.

In fact, the latest available studies[1]conclude that it is unlikely that fracking will generate any sort of contamination in superficial and underground waters. The main grounds for these conclusions are: i) the extension of the artificially generated fractures are of limited height and are thousands of meters from the drinking water; ii) an isolation structure of the aquifer is built through the casing and the cementation of the wells; iii) generally there are multiple layers of relatively impermeable rocks between the fracturing areas and the water sources: iv) the perforation fluids tend to remain in the same site; and v) the formations where the unconventional resources (shale plays) are found are formations that because of their distinctive features to retain water.

On the other hand, the Environmental Protection Agency of the United States, the Department of Interior, the Department of Energy and other federal agencies were unable to prove that fracking is the cause of underground water contamination.

Thus, the contamination that was detected in the areas where unconventional resources are being extracted is attributed mainly to the activities carried out on the surface. That is to say, to the movement of machinery, vehicles and operators in the well sites and to the mishandling of crude oil, water production and the flow back of fluids (which are the fluids used in the fracturing mixed with the water of the formation that emerges towards the wellhead) and dangerous substances. In conclusion, all risks shared with the operations of conventional exploitations.

In Ohio and Texas, multiple studies have been done regarding this matter, enriched by the experience of over 20 years of activity in unconventional developments. According to these studies, over 400 cases in which contaminating activity was detected, 70% of them were caused by activities performed on the surface (mainly where wells are located), 20% were related to the reactivation of inactive wells, and only 10% were a consequence of deficiencies in the integrity of the wells.

Due to the reasons mentioned above, they conclude that the possibility of affecting the water resources with the expansion of fracking should not be one of the main environmental concerns.

In this regard, it has been said that the final report of the studies performed by the Environmental Protection Agency about the possible impacts of hydraulic fracturing in drinkable water sources will be ready for March 2015.

These days, the focus of the United States regarding water contamination seems to be turning towards methane migration, a substance that is naturally present in about 30% of the drinkable water in the whole country.

Notwithstanding the concerns, the U.S. Geological Survey (USGS) made a study of water samples taken in the area of the shale formation denominated “Fayetteville”, and concluded that the methane concentration was a consequence of a natural process. 

On the other hand, the Environmental Protection Agency of the United States informed that the methane emissions registered during the first trimester of 2012 were lower than the emissions registered since 1992 in the same period. Besides, said emissions decreased by 40% since 2006, and in the particular case of unconventional resources exploitation, the reduction has been 73% since 2011.

Another concern related to the possibility of affecting the water as a consequence of fracking is related to the chemical substances that are used for this technique. The environmental NGOs are demanding that the quantity and the quality of the chemical products used for hydraulic fracturing must be disclosed. From the companies’ point of view, the disclosure of environmental information generates complications regarding the protection of industrial secrets.   

As a solution, in order to satisfy both interest groups it is proposed that the information must be delivered to controllers.

Companies already started a voluntary information disclosure campaign about their operations, through an online platform: www.fracfocus.org. It is a resource designed and used to publish information related to the hydrocarbon industry, with an actual data base of more than 85 studies.

Lastly, it has been pointed out that the United States does not have federal legal frameworks applicable to the exploitation of unconventional oil, and that only specific matters under this activity are regulated. In fact, the different States have regulated the activity, regulating aspects such as: i) the selection and preparation of perforation locations; ii) the perforation and finalization of wells; iii) hydraulic fracturing; iv) closure of wells and locations; v) waste treatment and waste disposal; vi) gas emissions.

Finally, the experts raised the issue of the necessity to create a responsible regulation, defining the necessary environmental protection mechanisms directed to the development of fracking, in order to avoid, reduce and mitigate the risks caused by said activity.

[1] The referred studies were carried out by the Environmental Consultant Gradient (2014), by the National Energy Technology Laboratory, by Darrah Oil Company (2014) and in the Baldwin Hills area (2014).