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This Master's Project Water Resources Needed to Hydraulically Fracture California’s Monterey Shale for Oil [Using the Bakken Shale Oil Exploration in North Dakota as a Case Study] By Christina J. Pepino is submitted in partial fulfillment of the requirements for the degree of: Master of Science in Environmental Management at the University of San Francisco Submitted: Received: ...................................……….. ................................…………. Christina J. Pepino Date Thomas MacDonald, Ph.D. Date

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This Master's Project

Water Resources Needed to Hydraulically Fracture California’s Monterey Shale for Oil

[Using the Bakken Shale Oil Exploration in North Dakota as a Case Study]

By

Christina J. Pepino

is submitted in partial fulfillment of the requirements

for the degree of:

Master of Science in

Environmental Management

at the

University of San Francisco

Submitted: Received:

...................................……….. ................................………….

Christina J. Pepino Date Thomas MacDonald, Ph.D. Date

Pepino2

The dissertation/thesis/Master's Project is a scholarly work presenting the results of the candidate’s research to the scholarly community. The University of San Francisco believes a candidate should make this research available to other scholars for the benefit of the author, the University, and the scholarly community. However, under the Copyright Act of 1976 (Copyright Act), an author may reserve all rights over his/her work, and thereby limit the availability of the work to others. Furthermore, under the Family Educational Rights and Privacy Act of 1974 (Privacy Act), a thesis/dissertation/Master's Project may be considered a protected, private academic record.

Author contact information:

Christina J Pepino

Phone: 928-399-9261 Email: [email protected]

Table of Contents

INTRODUCTION .........................................................................................................................4 Energy Consumption.................................................................................................................4 Process of Hydraulic Fracking ..................................................................................................4 Bakken Shale in North Dakota..................................................................................................7 Monterey Shale in California ...................................................................................................9

METHODOLOGY ......................................................................................................................10 Comparing Water Requirements to extract oil from Bakken Shale and Monterey Shale..........10

Surface Water Sources used for Bakken Shale Oil Extraction ...............................................12 Groundwater Sources used for Bakken Shale Oil Extraction .................................................15 Potential Water Sources for Monterey Shale Oil Extraction ..................................................17 California State Water Project ................................................................................................17 Central Valley Project ............................................................................................................19 Comparing Geology between Bakken Shale and Monterey Shale .........................................22

Wastewater Production for Bakken Shale ..............................................................................23 Surface Storage of Wastewater ..............................................................................................25 Underground Storage of Wastewater .....................................................................................25 Treatment Facilities.................................................................................................................26 Recycled Wastewater ..............................................................................................................26 Contamination Risks ...............................................................................................................28 Surface Water .........................................................................................................................28 Groundwater ..........................................................................................................................28

RECOMMENDATIONS.............................................................................................................29

Water Demands ......................................................................................................................30 Reducing Water Contamination Risks ...................................................................................31 Fault Zones and Induced Seismic Activity ............................................................................32 California’s Policies on Fracking............................................................................................33 Public Notice and Transparency .............................................................................................34 Future Research.......................................................................................................................35

CONCLUSIONS ..........................................................................................................................36

REFERENCES.............................................................................................................................38

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INTRODUCTION:

Energy Consumption

United States crude oil production increased from 5 million barrels per day in 2008 to 6.5

million barrels per day in 2012, representing a 30% increase in four years (U.S. Energy

Information Administration, 2013). Increased crude oil production is a result of increased

onshore crude oil extraction, specifically from shale and other tight formations (U.S. Energy

Information Administration, 2013). The Annual Energy Outlook of 2013 projects the demand for

oil will steadily increase over the next twenty years; primarily driven by developing nations

(U.S. Energy Information Administration, 2013). The United States has the potential to be one of

the world’s top oil producers as the worldwide demand will reach close to 100 million barrels per

day by 2035 (U.S. Energy Information Administration, 2013). Projections also estimate the

United States will become 97% self-sufficient, in net energy terms, by 2035 (U.S. Energy

Information Administration, 2013).

Oil companies are using advanced technology to extract oil from areas previously

untouched due to depth difficulties and/or geological constraints. One of the processes used to

access oil is a technique called hydraulic fracturing. Hydraulic fracturing, also known as

fracking, is an advanced means of extracting both oil and gas from subterranean shale rock

formations. Hydraulic fracturing is considered a type of advanced unconventional extraction,

requiring external pressure to extract resources. Unconventional resources include: extra heavy

oil (oil with high viscosity), oil sand, oil shale, tight gas, coal bed methane, shale gas, and natural

gas hydrates (Energy Technology Network, 2013).

Process of Hydraulic Fracturing

After a geologic formation is selected based on potentially recoverable resource

extraction, well construction begins. Existing wells may be fracked and re-fracked; therefore, all

fracking operations do not necessarily require a new well. Wells used for hydraulic fracturing

can be horizontal, vertical, or both. Vertical wells may extend to depths greater than 8,000 feet,

and horizontal sections of a well may extend several thousand feet away from the production pad

on the surface (Hydraulic Fracturing Research Study, EPA 2010).

The next steps of hydraulic fracturing are the identification, selection, and acquisition of

a water source. After water has been acquired and transported to the well site, the water is used

to create fracking fluid. Fracking fluid is a mixture of water, chemical additives, and propping

agents. Propping agents may be sand, silica, and/or ceramic beads. The fracking fluid is then

pumped into the wellbore, under high pressure. The wellbore is lined with a hollow metal casing

to isolate the injected fluid from the non-productive segments of the surrounding geologic

formations. When the external pressure exceeds the rock strength, fractures within the rock are

created. High pressures are used to increase the permeability of the formation and enhance the

flow of oil (Bakken water assessment, Phase 2, 2011). As the geologic formation is fractured and

the pumping pressure decreases, the propping agents in the injected fluid keep the fractures from

closing (Department of Energy, 2004). The fractures remain open; allowing previously trapped

crude oil to flow into the wellbore. Some fracture fluid, mixed with oil, returns to the surface

through the wellbore. The mixture of fracking fluid combined with the extracted resources is

commonly referred to as flowback water or wastewater (The Hydraulic Fracturing Water Cycle,

EPA 2013). Wastewater can be treated in a proper facility, left in surface storage ponds or tanks,

injected back into a retired well, or recycled for another fracture job. The process of hydraulic

fracturing includes water acquisition, chemical mixing, well injection, the production of

wastewater, and the treatment/disposal of wastewater (Figure 1).

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Figure 1: The Process of Hydraulic Fracturing (The Hydraulic Fracturing Water Cycle,

EPA 2013).

Hydraulic fracturing is used in over 30 states, and is identified as a technique to promote

energy independence and energy security (Groundwater Protection Council & Interstate Oil and

Gas Compact Commission, 2009). The International Energy Administration reported that the

United States would benefit from technologies such as hydraulic fracturing for the extraction of

unconventional sources of energy (U.S. Energy Information Administration, 2013). Recently

identified potentially recoverable oil sources could make the United States the world's biggest oil

producer by 2017 (U.S. Energy Information Administration, 2013). Two of the largest

potentially recoverable oil basins are in the Monterey Shale deposits in California, and Bakken

Shale deposits in North Dakota. Table 1 depicts the major shale deposits in the US,

corresponding with estimates of technically recoverable oil (in billions of barrels). Oil

production is at an all-time high in North Dakota because of hydraulic fracturing, and now

California is assessing the economic benefits of fracking Monterey Shale for oil.

Table 1: Technically Recoverable Resources of Major Shale Deposits in the US (Review

of Emerging Resources, US EIA, 2011)

However, hydraulic fracking causes environmental impacts. Environmental risks include:

ground water contamination, air quality degradation, wastewater production, increased seismic

activity, and land-use changes. This paper explains the environmental impacts of hydraulic

fracturing on water resources. Using the Bakken Shale Oil Exploration in North Dakota as a case

study, projections and recommendations are given for California’s Monterey Shale Oil

Exploration. Water sources, water demand, wastewater production, and contamination risks are

analyzed.

Bakken Shale in North Dakota

The Bakken Shale formation is located in Montana, South Dakota, North Dakota, and

Saskatchewan, classified under EPA Region 8 (USGS, 2008). Region 8 also includes Colorado,

Wyoming, and Utah. Oil and gas exploration within Region 8 states are experiencing a dramatic

increase in oil production as a result of tapping into unconventional shale gas reserves. In 2007,

oil development within North Dakota began growing rapidly. Oil production was at 118,000

barrels of oil per day in early 2007, and doubled within 30 months (North Dakota Department of

Mineral Resources, 2010). The oil production rate continued to increase from 200,000 barrels of

oil per day in 2008 to 750,000 barrels of oil per day in late 2012 (North Dakota Oil and Gas

Division, 2013) as seen in Figure 2.

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According to the US Crude Oil and Natural Gas Proved Reserves of 2011, the Bakken

shale oil formation is the second largest shale oil play, estimated to hold approximately 3.6

billion barrels of potentially recoverable oil (U.S. Department of Energy, 2013).

For Bakken Shale extraction, it is estimated that 2,500 new oil wells will be drilled per

year, for the next 15-25 years (Water Appropriations Division: North Dakota State Water

Commission, 2011). North Dakota is seen as an economic icon as a result of increased oil and

gas exploration activities, leading to low unemployment rates and high Gross Domestic

Product/capita.

Figure 2: Monthly oil production in North Dakota in thousands of barrels/day (EIA, 2013).

As a result of hydraulic fracturing, North Dakota’s gross domestic product grew by 6.7%

per year from 2008 to 2012, setting a record during that period as the nation’s fastest growth rate

(USC Price School of Public Policy, 2013). In addition, North Dakota is maintaining the nation’s

lowest unemployment rate at 3.2% as a result of oil and gas exploration activities (USC Price

School of Public Policy, 2013). Figure 3 compares the GDP per capita of North Dakota versus

the US, emphasizing the potential economic benefit of oil and gas exploration. Economic growth

is a primary incentive for exploring the possibility of oil extraction in California, using hydraulic

fracturing.

Figure 3: GDP growth per capita for North Dakota, compared to the U.S. average (EIA, 2013).

Monterey Shale in California

The Monterey shale in California covers an area of approximately 1,750 square miles

(U.S. Energy Information Administration, 2011). Figure 4 depicts the underground shale

reserves that stretch along Central California, including both the San Joaquin and Los Angeles

Basins (U.S. Energy Information Administration, 2011). Shale is fine-grained sedimentary rock

formed by the accumulation of sediments including sandstone and limestone. Shale deposits

have recently been identified as rich sources of oil and gas. The Monterey shale – encompassing

both the San Joaquin and Los Angeles Basins –is estimated to hold up to two-thirds of all the

United States recoverable oil from shale, with approximately 15 billion barrels of recoverable

crude oil (U.S. Energy Information Administration, 2011). Decades ago, Monterey Shale oil was

thought to be non-extractable due to depth constraints. Hydraulic fracturing now makes the

potentially recoverable oil within Monterey Shale more accessible, showing great economic

potential.

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Figure 4: A map of the shale reserves in California (EIA, 2012).

California produces an average of 220-230 million barrels of oil annually, while

consuming 8.6% of the total energy consumption in the US (USC Price School of Public Policy,

2013). With the state’s population predicted to reach 55 million by 2050, the state will need to

double its energy capacity to accommodate this growth (California Energy Commission and

California Council on Science and Technology, 2011). California’s per-capita energy use is

approximately 30% lower than the national average (USC Price School of Public Policy, 2013).

Since the Monterey Shale reserves hold potentially 5 times as much crude oil as the Bakken

Shale reserves, projections show California can potentially become a leader of energy production

if hydraulic fracturing is used to extract potentially recoverable oil within the Monterey Shale.

Although hydraulic fracturing has been used in California for over 30 years, the technique has

recently been considered by the industry for large-scale oil exploration activities (California

Department of Conservation’s Division of Oil, Gas and Geothermal Resources, 2013).

METHODOLOGY:

Comparing Water Requirements to extract oil from Bakken Shale and Monterey Shale

Water is necessary for unconventional oil extraction. Unconventional oil extraction has

greater potential for adverse environmental impacts than conventional extraction (U.S.

Environmental Protection Agency, 2008). Water availability is critical for the feasibility,

production, and economic potential of unconventional oil extraction. The EPA’s 2011 Draft Plan

to Study the Potential Impacts of Hydraulic Fracturing on Drinking Water estimates that

hydraulic fracturing processes use 70 billion to 140 billion gallons of water each year for all

operations in the United States, representing large quantities of water that may be diverted from

other uses, such as agriculture and municipalities.

The Bakken Shale is used as a case study to assess water demands and water quality

impacts due to hydraulic fracking. The research provides projections and recommendations for

Monterey Shale, if the formation is eventually hydraulically fractured. Table 2 compares

important variables used to conduct this analysis, including total area, estimated ultimate

recovery, depth of deposits, thickness and porosity; characteristics used to help estimate the

amount of water needed to hydraulically frack shale for oil. Table 2 will be used as a tool for

comparing Bakken Shale to Monterey Shale throughout this paper.

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VARIABLE UNITS BAKKEN SHALE MONTEREY

SHALE

AREA SQUARE MILES 6,522 1,752

ESTIMATED

ULTIMATE

RECOVERY

BARRELS OF OIL

[IN MILLIONS]

PER WELL

550 550

TECHNICALLY

RECOVERABLE

RESOURCES

BILLIONS OF

BARRELS OF OIL

3.59 15.42

DEPTH FEET 6,000 11,250

THICKNESS FEET 22 1,875

POROSITY % 8 11

Table 2: Comparison of Bakken Shale and Monterey Shale (US EIA, 2011)

Surface Water Sources Used for Bakken Shale Oil Production

Most of the water for hydraulic fracturing comes from surface water sources such as

lakes, rivers, municipal water suppliers, and private water suppliers. However, when surface

water availability becomes scarce, groundwater can become a primary source for water

acquisition (Groundwater Protection Council & Interstate Oil and Gas Compact Commission,

2013).

Within North Dakota alone, the estimated annual water demand for all oil production is

22,400 acre-feet, equivalent to 7.3 billion gallons of water (Water Appropriations Division:

North Dakota State Water Commission, 2011). One of the primary surface water sources for

fracking in North Dakota is Lake Sakakawea, formed by the Garrison Dam. As depicted in

Figure 5, Lake Sakakawea – a manmade reservoir behind the Garrison Dam- is the largest of the

six reservoirs on the Missouri River and is the third largest reservoir in the United States (North

Dakota State Water Commission, 2012). Lake Sakakawea is a main water supply source for

domestic use, irrigation, industrial use, and hydraulic fracturing (EPA Progress Report, 2012).

The U.S. Army Corps reservoirs in California have smaller storage capacity compared to the

reservoirs in North Dakota. As seen in Figure 5, the Garrison Dam has the highest relative

volume (in acre feet) out of any corps reservoir in the United States (2008).

Even with large water volumes in North Dakota stored behind the Garrison Dam (>10M

acre-feet), getting access to fresh water sources within the state can still be a challenge for the oil

and gas industry. Despite water resources being relatively abundant in North Dakota, water

quality and water availability is still a problem – with difficulty stemming from state and federal

agencies, as well as allocation rights and distribution to other water needs.

Figure 5: Storage Capacity of Reservoirs built by the U.S. Army Corps of Engineers, showing the acre-feet of water stored by the Garrison Dam along the Missouri River (U.S. Army Corps of Engineers, 2008).

As a state, North Dakota is attempting to manage their own water resources; however,

The Army Corps of Engineers is trying to gain rights to sell the water. Because the Missouri

River flows through the boundaries of federally managed reservoirs, such as Lake Sakakawea,

the Army Corps of Engineers is trying to mandate that the oil industry must pay storage fees to

obtain water from the reservoirs. Water rights are spurring a large debate between the federal

government and the state government, deciding which governing agency has authority over

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surface waters within North Dakota. Since the oil companies must get permits from both the

State Water Commission and the Army Corps of Engineers, concerns voiced by the industry

include: unnecessary delays, time consuming procedures, and additional costs related to

obtaining permissions of water rights. As a result of time-consuming surface water procedures,

groundwater sources are now being tapped to meet the water demands from the oil industry.

In 2012, the US Army Corps of Engineers approved free temporary permits for the oil

and gas industry. The permits allowed the oil industry to take water from Lake Sakakawea and

pipe the water to Bakken oil drilling sites (North Dakota State Water Commission, 2012). The

permits were granted to reduce the drain on underground aquifers in the Williston Basin (North

Dakota State Water Commission, 2012). Currently the Army Corps of Engineers are working on

a multiyear study to assess the potential impacts of increased water demands on Lake

Sakakawea. The study will assess impacts on existing cultural sites and endangered species

dependent on the surrounding ecosystem (North Dakota Industrial Commission, 2011).

Until the study is complete, access is granted to the oil industry to take up to 100,000

acre-feet of water, equivalent to approximately 32 billion gallons, from Lake Sakakawea for five

years, ending in 2015 (North Dakota Industrial Commission, 2011). While the battle continues

between state and federal agencies, the potential fees and access issues associated with surface

water lead to significant water resource challenges. As water demands increase from energy

production, agriculture, manufacturing, and growing populations [a growth correlated to energy

extraction within the area], the dependence on groundwater resources continues to increase.

In addition to slow permit processes and fees associated with surface water, the

geographic location of Lake Sakakawea can be far away from drilling operations, depending on

well-site location. High water transportation costs and expensive water acquisition fees from the

government are spurring a discussion of both groundwater use and wastewater recycling as

potential water sources. The North Dakota State Water Commission reported a large variability

for the cost of fresh water per barrel. The cost to purchase water ranged from $5.95/1000 gallons

to $25/1000 gallons (North Dakota Industrial Commission, 2011). Geographic proximity of the

water source to the drilling site is the largest variable; therefore, transportation costs are the main

factor of acquisition charges. Although North Dakota is not usually considered a state to have

water scarcity problems, hydraulic fracturing has shown that water rights and water accessibility

both play a role in meeting the increasing water demand associated with unconventional oil

extraction.

Ground Water Resources used for Bakken Shale Oil Production

Water demands continue to increase within North Dakota (Water Appropriations

Division: North Dakota State Water Commission, 2011). The demand for water is met by both

surface water and ground water. Although common freshwater acquisitions for fracking are from

water depots, municipalities, and surface water sources, permit applications for new water wells

are feasible, as a result of the increased water demand. Although the North Dakota State Water

Commission was reluctant to distribute new permits for groundwater wells, permits are still

available for the oil industry (North Dakota Industrial Commission, 2011). The North Dakota

State Water Commission’s concerns originated from potential depletion of water resources – as

seen through declining rates from bedrock aquifers within the region (North Dakota Industrial

Commission, 2011).

Two aquifers in North Dakota used by the oil and gas industry are the Fox Hills Aquifer

and the Kildeer Aquifer. Fox Hills Aquifer is a bedrock aquifer, and Kildeer Aquifer is part of

the Glacial Aquifer System (Water Appropriations Division: North Dakota State Water

Commission, 2011). The Glacial Aquifer System includes all unconsolidated aquifers north of

the line of continental glaciations throughout the country – the largest aquifer system used for

drinking water in the United States; encompassing 25 states. Region 8 is classified by sand and

gravel aquifers of alluvial and glacial origin, as compared to California’s aquifers that are

classified as unconsolidated sand and gravel aquifers at or near the land surface (USGS, 2013).

North Dakota’s glacial-deposit aquifers are considered highly productive aquifers. The

groundwater flow is recharged from primarily local streams. Although hydraulic conductivity of

all aquifers varies, unconsolidated sand and gravel aquifers have high hydraulic conductivity and

are more susceptible to contamination (USGS, 2013). Groundwater recharge within North

Dakota has been declining, further emphasizing the correlation between surface water depletion

and groundwater recharge rates.

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Figure 6: Extent of the Fox Hills Formation in North Dakota (North Dakota State Water Commission, Honeyman 2007).

The Fox Hills Aquifer lies under more than half of the state of North Dakota, only

exposed at the surface in the southern part of the state (Figure 6). The Fox Hills Aquifer runs as

deep as 2,000 feet beneath the surface, but average depth is between 500 and 700 feet beneath

the surface based upon screened intervals of 356 monitored wells (North Dakota State Water

Commission, Honeyman 2007). Since monitoring reports began in the 1980’s, the groundwater

head has been declining at rates between -0.1 ft/year to -2.6 ft/year depending on well location

(Water Appropriations Division: North Dakota State Water Commission, 2011). Head declines

were shown in every monitored well in 2007, and as water demands increase, the trend in head

decline of the Fox Hills Aquifer will continue (North Dakota State Water Commission,

Honeyman 2007). The Fox Hills Aquifer, identified as a valuable resource for not only the oil

and gas industry, but also the agricultural industry, has been impacted by oil activity (North

Dakota State Water Commission, Honeyman 2007).

It is important to note that a decline in groundwater head levels can be attributed to

declines in surface water levels within Lake Sakakawea. When lake levels rise, nearby head

measurements also rise. The groundwater fluctuations observed in wells tapping the Fox Hills

Aquifer have a direct correlation to water levels in Lake Sakakawea (Figure 7). The graph shows

the connection between groundwater and surface water sources. If surface water levels decline in

Lake Sakakawea as a result of increasing water use by the oil industry, the Fox Hills Aquifer will

also be depleted.

Figure 7: Historical water-level elevation of Lake Sakakawea (blue) correlated to

historic water-level fluctuations in observed well (red) (North Dakota State Water Commission, Honeyman 2007).

Potential Water Sources for Monterey Shale Oil Extraction

California State Water Project

The California State Water Project provides water to 25 million residents, in addition to

almost one million acres of farmland (CA Department of Water Resources, 2013). This project

integrates water storage with water delivery, allocating fresh water to Northern California, the

San Francisco Bay Area, the San Joaquin Valley, the Central Coast, and Southern California (CA

Department of Water Resources, 2013). This water project is the largest in California, making

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deliveries to approximately two-thirds of California’s population. Water resources required to

hydraulically fracture Monterey Shale may potentially be requested from the California State

Water Project, adding an additional demand on the already-coveted supply allocated to

municipal suppliers and the agricultural industry. California’s Department of Water Resources

admits that even during years of normal precipitation, water supply shortages occur because of

many competing demands from farmers, cities, and the environment, such as wildlife refuges and

species sustained from seasonal water flows.

California’s economy relies on agriculture as a primary source of revenue, and California

is known as the state leading production for 75 commodities (California Department of Water

Resources, 2010). California’s climate and geography is able to host a multi-billion dollar

industry and produces over 250 crops. The agriculture industry relies on the ability to access

billions of gallons of fresh water each year for irrigation needs. Depending on the crop produced,

as well as efficiency procedures, it is estimated that agriculture consumes 33.22 million-acre feet

per year, or approximately 10,824,784,500,000 gallons (California Department of Water

Resources, 2010). Of the estimated 33.22 million acre-feet of water used for irrigation, this

portion of water represents 80% of all water diverted from surface water or pumped from ground

water within California (California Department of Water Resources, 2013). The total amount of

water diverted within the state is 43 million acre-feet of water per year (California Department of

Water Resources, 2013).

Since California’s climate dramatically varies based on geographic location, ranging

from snow-packed Sierra’s to the desert of Palm Springs, water distribution and water allocation

rights are complex. Water allocation rights have been uncertain and inconsistent, putting a large

strain on water supplies. The demand for water allocated through the California State Water

Project is currently unattainable. By tapping into groundwater sources, the demand can be met.

Approximately 2 million acre-feet, or 651,702,857,000 gallons of groundwater overdraft is

occurring to meet state water needs (Agricultural Water Use in California, 2011). With the state

Water Conservation Act of 2009, followed by conservation water plans for 2020, California has

been identified as a state with water scarcity and water resource issues.

Central Valley Project

The Central Valley Project was created to mitigate localized water shortages by

enhancing water distribution. Crippling water shortages in the Central Valley impact farmlands

and the industry within the Central Valley. The Central Valley Project stretches from the

Cascade Range to Bakersfield, encompassing some of the most fertile, yet arid croplands (Figure

8). Two of the primary water sources within the scope of this project include the Sacramento

River and the San Joaquin River. The Central Valley Project provides water for over half of the

agricultural counties – with an estimated return on investment over 100 fold [initial investment

was $3 billion] (US Department of the Interior, 2013).

The Central Valley Project annually delivers drinking water to 2 million consumers, in

addition to irrigating over 3 million acres of farmland (US Department of the Interior, 2013).

Approximately 7 million acre-feet of water are delivered per year through the Central Valley

Project. However, during recent years, the Central Valley Project had to reduce the contracted

delivery amounts by almost 50%, resulting in a shortage of water deliveries. Environmental

litigation ensued as a result of water diversion from the San Joaquin River after a massive

salmon die-off from diminishing water sources (Natural Resources Defense Council v. Houston,

146 F.3d 1118 (1998)). Water rights and water deliveries have been revisited in the courtroom

due to unquenchable demands by the state of California.

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Figure 8: Map of the Central Valley Project in California. Beige regions show the

Central Valley Project service areas. The Central Valley Project has already contracted its water services to agencies for

projected water needs 50 years into the future. California must divert, transport, and deliver

water to central valley farmlands for irrigation purposes, since the arid climate does not have

sustainable watersheds for water demands within that region. Billions of dollars are allocated for

water relocation and water distribution in California. If hydraulic fracturing becomes a large-

scale technique used to extract oil from Monterey Shale, water availability within peripheral

states will become even more competitive. Since the Monterey Shale lies under current and

prospective farmlands, hydraulic fracturing will add competition to the water market.

Ceres, a non-profit organization advocating for advocating for sustainability, along with

the Water Research Institute, created a map showing the competition for water in US shale

energy development. Figure 9 indicates that California has been identified as a state with “high

water risk” to “extremely high water risk” assessed by the ratio of water withdrawal to the mean

annual available supply. The red region within California depicts the area on the baseline water

stress map where a large portion of available water supply is already being used (Ceres, 2012).

Pressure from the oil and gas industry for additional water resources only adds to the baseline

water stress assessment. North Dakota was assessed with “moderate water risk”, despite water

rights and water allocation struggles previously discussed in this paper. The map below indicates

that water stress and water scarcity is more severe in California; therefore, the consequences of

fracking Monterey Shale may be more environmentally harmful than fracking in North Dakota.

Figure 9: Competition for Water in US Shale Energy Development. Map showing hydraulically fractured wells overlaid on a map of baseline water stress, showing a correlation between mean annual water supply and hydraulic fracturing (Ceres, 2012).

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Comparing Bakken Shale Geology and Monterey Shale Geology

Geographically, the Bakken Formation lies beneath Montana, South Dakota, North

Dakota, and Canada. This geologic formation was created during the Mississippian period, and it

consists of 3 layers: the lower shale, middle sandstone and siltstone, and upper shale. The

Bakken formation is characterized by sedimentary rocks; composed of shale, dolomite,

sandstone, and siltstone; characteristics identified as having a high potential for hydrocarbon

extraction (EPA Progress Report, 2012). Table 3 depicts both the lower shale and upper shale;

areas that are carbon rich and are primary sources for oil (USGS, 2008).

Bakken shale thickness ranges from several feet to 140 feet (EPA Progress Report, 2012;

Carlson, 1985; Murphy, 2001). To overcome the formation’s low porosity and permeability, the

physical process of fracturing is used to increase the porosity and permeability, thereby

increasing the ability to enhance the flow and recovery of oil (North Dakota Industrial

Commission, 2011). Carbon-rich shale varies in permeability, depending on porosity and

composition. Since each well has an independent rate of oil production, the amount of water

required to extract the resources is largely variable depending upon the geology of the formation.

Table 3: Geology of the Bakken Formation (Petroleum Geology, 2010)

The Monterey Shale Formation in California also has a high potential for hydrocarbon

extraction as a result of geologic formations. Though the formations are more complex than the

Bakken formation, with depths up to 11,250 feet deep, and thickness up to 1,875 feet, the

Monterey Shale can still produce technically recoverable oil as a result of hydraulic fracturing

(US EIA, 2011). Due to seismic activity in California, oil can migrate more easily than compared

to other shale formations around the country. Since the geologic formation varies so

significantly, water use would vary from well to well, depending on production. Table 2

compares Monterey shale with an average porosity of 11%, and Bakken Shale has an average

porosity of 8% (US EIA, 2011). The amount of recovered water would be less for Monterey

Shale oil extraction as a result of higher porosity, causing the formation to absorb and retain

fracking fluid.

Wastewater Production for Bakken Shale

Wastewater, or produced water from oil extraction, is the largest waste stream associated

with hydraulic fracturing. Depending on the well, 30-70% of the injected fluids return to the

surface through the drilled well (Groundwater Protection Council & Interstate Oil and Gas

Compact Commission, 2009). The large variance of wastewater production returning to the

surface is dependent on the amount of fluids trapped within the fractured formation.

The ingredients in wastewater include: water, propping agents, biocides, friction-reducing

agents, polymers, scale inhibitors, and weak acids, as well as heavy metals and minerals from the

fracture job (North Dakota Industrial Commission, 2011). Examples of the additive, with their

corresponding purpose, are explained in Table 2. In addition to the chemical additives mixed

with water at the surface, naturally occurring substances also mix with the fluid during injection.

Produced water includes naturally occurring substances such as: formation fluid [brine], gases

[methane, ethane, hydrogen sulfide, and helium], trace elements [mercury, lead, arsenic],

naturally occurring radioactive material [radium, thorium, uranium], and organic material

[organic acids] (EPA Draft Plan, 2011).

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Table 4: An Example of the Volumetric Composition of Hydraulic Fracturing Fluid (EPA Draft Plan, 2011)

All substances in Table 4 have potential to migrate into drinking water sources as a result

of hydraulic fracturing (EPA Draft Plan, 2011). Drinking water contamination may occur if

fractures extend beyond the target formation – impacting nearby geologic formations and

groundwater sources. Groundwater contamination can still occur even if fracking operations are

not in proximity to a water source; water migration and water seepage can transport these

chemicals for miles. Additionally, since monitoring techniques and location placements can be

difficult and expensive for underground wells, water contamination has occurred without the

contamination source ever being identified. Water contamination may also occur if man-made

barriers fail as a result of time, pressure, or human error.

Surface Storage of Wastewater

Depending on local and state regulations, wastewater disposal procedures vary. In North Dakota,

surface ponds are used to store wastewater produced from fracking.

Surface ponds are primarily used to assist in evaporation, but can be

used as an initial storage area until treatment or disposal. The federal

government will soon be drafting regulations and monitoring

requirements for surface ponds. The EPA is currently evaluating oil

and gas wastewater practices and will likely enforce laws pertaining to

the operation, maintenance, monitoring, and closure of surface ponds,

in accordance to the Resource Conservation and Recovery Act

(RCRA). Regulations for the oil and gas industry have not been able to

keep pace with the number of wells being drilled and leases being sold;

therefore, the legal framework to mandate best practices is still being

created.

Underground Storage of Wastewater

An economically favorable way to store and/or dispose of

wastewater is the use of injection wells. An injection well is a

wastewater disposal technique able to confine produced wastewater.

The injected wastewater is placed underground into porous rock

formations. The EPA defines an injection well under the Underground

Injection Control (UIC) Program as: a bored, drilled, or driven shaft, an

improved sinkhole, or a subsurface fluid distribution system (EPA,

2012). Injected fluids used or produced during oil and gas activities are

categorized under Class II of injection wells (Figure 10). The EPA

estimates 144,000 Class II wells are in operation in the United States,

with over 2 billion gallons of water injected each day (EPA, 2012).

Class II wells are divided into three categories: enhanced recovery

Figure 10 (EPA, 2012)

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wells (also known as production wells), disposal wells, and hydrocarbon storage wells. Enhanced

recovery wells are the wells used to hydraulically fracture oil-bearing formations, increasing the

recovery of oil. Disposal wells are used to dispose of fluids associated with oil and gas

production, are one of the preferred methods of disposing of wastewater (Figure 10).

Hydrocarbon storage wells are storage areas for liquid hydrocarbons, such as underground

formations like salt caverns.

In many regions of the US, including North Dakota, underground injection is the

preferred method for disposing of fracking fluids after oil extraction operations (Easton, 2013).

Beginning in 2002, the amount of produced water in North Dakota increased 29% within 4 years,

with a baseline of approximately 9.8 million barrels of wastewater/year (EPA Regional Case

Study, 2008). North Dakota had the highest percent change of produced water out of all states

classified under Region 8. Although ‘oil-only producing wells’ do not produce as much

wastewater as ‘oil with gas producing wells’, ‘oil-only producing wells’ are the second largest

producers of wastewater in the oil and gas industry (EPA Regional Case Study, 2008).

The disposal of produced water via UIC Program is unregulated for hydraulic fracking

activities, as stated by the Safe Drinking Water Act. The Safe Drinking Water Act excludes ‘the

underground injection of fluids or propping agents pursuant to the hydraulic fracturing

operations related to oil, gas, or geothermal production activities” under Section 1421(d)(1)

(EPA, 2012). Since hydraulic fracturing is excluded from SDWA regulation, this loophole poses

an increased risk of drinking water contamination. Voluntary monitoring programs led by the oil

and gas industry help reduce water contamination; however, underground injection storage

techniques still have environmental risks associated with wastewater disposal. An additional

variable within California’s geology are active fault lines. It is possible that as a result of active

fault zones within California, underground injection techniques may have an increased risk of

groundwater contamination.

Treatment Facilities

Although a significant amount of wastewater is injected using UIC or is reused, large

amounts of wastewater still require disposal. Wastewater can be transported to either publicly

owned treatment works (POTWs) or private centralized waste treatment facilities (CWTs) (EPA,

2012). Both of these ‘indirect discharge’ facilities must ensure that the waste can receive proper

treatment, to avoid violating rules of the National Pollution Discharge Elimination System

(NPDES). However, many POTWs are designed to treat suspended solids and organic content

found in household/municipal sewage, not the treatment of water with high salt concentrations or

water with radionucleotides.

If a treatment plant cannot treat the waste properly, the owner could face NPDES permit

violations. Recently, as a result of increasing amounts of water needing to be treated from

hydraulic fracturing operations, it is possible for POTWs or CWTs to “refuse” the waste to avoid

violations. Currently, there is no comprehensive set of national standards for the disposal of

wastewater discharged from hydraulic fracturing activities; therefore, much of the responsibility

remains with the oil industry.

Recycled Wastewater

Given current water demands and water rights in North Dakota, a nontraditional water

source, such as wastewater recycling, can be economical as a result of the high cost of permits,

access fees, transportation, and storage for freshwater (North Dakota Industrial Commission,

2011). Reusing the produced water from previous fracking operations reduces the amount of

freshwater needed for future fracking jobs. New treatment technologies are being developed to

recycle water that is recovered from fracture jobs. Recycling systems that reduce the dependency

on fresh water have environmental benefits as well as economic benefits. Reduced truck traffic,

together with reduced road usage and road repairs, can save operators $100,000 - $400,000 per

well (Dale, 2013). In 2013, several commercialized products have been put on the market to

help reduce the demand on fresh water. UniStim and H20 Forward both enable operators to use

100% of the produced water from hydraulic fracturing for other oil and gas operations (PSA

from Halliburton, 2013).

In California, recycled wastewater would assist in the demand placed on fresh water for

hydraulic fracturing operations; however, since 30-70% of water remains within the formation,

additional water would still be required to accommodate the expanding energy industry.

Recycling wastewater is also not yet cost-competitive; therefore, these systems would need to

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become part of the national regulatory framework to ensure the industry utilizes recycled water

before acquiring fresh water.

Contamination Risks

Surface Water

Environmental risks are associated with large withdrawals of surface water. Significant

impacts from large withdrawals include alterations of flow (for streams), depth, and temperature,

as well as mineral chemistry, leading to larger implications for species dependent on the water

source (EPA Draft Plan, 2011). North Dakota is currently studying the impacts of surface water

withdrawals from Lake Sakakawea.

After the produced water reaches the surface, there are several treatment options, each

associated with a risk of contaminating surface water and/or groundwater. Wastewater generated

during the exploration, development, and production of crude oil is labeled as “special wastes”

under the EPA, and is therefore exempt from the federal hazardous waste regulations under the

amendments to the Resource Conservation and Recovery Act (Subtitle C of RCRA, 1980).

Produced water can be stored on-site in an impoundment pit. Impoundment pits are constructed

depending on local, state, or tribal regulations. Depending on the construction, design and

monitoring techniques for the pit, contamination risks vary. If produced water is not stored on-

site in an impoundment pit, the water may be stored in tanks, waiting for treatment or disposal.

Once the produced water is ready for treatment or disposal, surface contamination may occur

during the transportation process. Potential leaks or spills are associated with both the storage

and transportation of produced water, influencing the contamination of surface water sources

(EPA Draft Plan, 2011).

Groundwater

Nearly half of the United States population relies on groundwater as their primary source

of drinking water; rural populations rely on groundwater for as much as 95% of their drinking

water. Groundwater aquifers that provide drinking water to urban areas and for agricultural use

can range from depths of tens to thousands of feet beneath the surface; however, the majority of

aquifers used are located at depths less than 300 feet below the surface (Groundwater Protection

Council & Interstate Oil and Gas Compact Commission, 2013).

Many surface water bodies, such as wetlands, rivers, and lakes, also depend on

groundwater discharge. Besides precipitation, groundwater recharge is a source for surface

waters (Groundwater Protection Council & Interstate Oil and Gas Compact Commission, 2013).

Environmental risks are also associated with decreasing water levels in an aquifer. Water quality

may be impacted as a result of low water tables by changing the mineral content and salinity of

the water (EPA Draft Plan, 2011). Chemical changes may occur if water levels greatly vary,

affecting the solubility, mobility, salinity, and bacterial growth of an aquifer system.

Groundwater is relied upon to meet the water needs of California. If the contracted

amounts of water to be delivered by the California State Water Project and the Central Valley

Project are unattainable, groundwater sources are used. If hydraulic fracking operations within

California further deplete groundwater sources, and/or lead to contamination of groundwater

sources, drinking water for California residents would be at risk.

One technique to avoid contamination risk is proper construction of new wells.

Cementation of the casing, in addition to casing materials, is the first, and potentially most

critical, line of defense for protecting groundwater. A physical barrier between groundwater and

the fracking fluids is an important element of minimizing groundwater contamination

(Groundwater Protection Council & Interstate Oil and Gas Compact Commission, 2009).

RECOMMENDATIONS:

California’s population is predicted to reach 55 million by 2050. The state will need to

double its energy capacity to accommodate this growth (California Energy Commission and

California Council on Science and Technology, 2011). However, with climate change and water

scarcity, unconventional energy sources should not be the first option to meet the increasing

demand. The first option should be conservation efforts and renewable energy generation. In

recent years, the California State Water Project and the Central Valley Project have not been able

to meet their contracted delivery amounts, putting stress on water sources, increasing the

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probability of environmental risks. Hydraulically fracturing Monterey Shale would add to the

state’s water shortages.

In 2012, California had less than 600 (of the U.S. total 50,000) operating wells using

hydraulic fracturing techniques. However, if the 15 billion barrels of potentially recoverable oil

within the Monterey Shale formation is extracted using unconventional techniques, the process

will require billions of gallons of water. If fracking does begin to occur on a larger scale in

California, recommendations to minimize water use and environmental impacts are listed below.

Water Demands

To increase water availability for hydraulic fracturing, while attempting to reduce

potential impacts of water scarcity, the oil industry is beginning to take water based on seasonal

flow rates. Although consequences can occur from this technique, as seen in Natural Resources

Defense Council v. Houston, 146 F.3d 1118 (1998), collecting and storing water during wet

years can be advantageous if it is a season of high precipitation. If stream and river water flows

are greatest during spring and summer months, the industry will capture water when flow rates

are high and store for future use. This technique can potentially reduce stress on municipal

drinking water supplies, as well as significant impacts that would affect riparian or aquatic

communities downstream (Groundwater Protection Council & Interstate Oil and Gas Compact

Commission, 2013). In California, high seasonal flows should not be considered a reliable source

as compared to North Dakota, a state that received higher than normal precipitation in 2011 to

help meet the water needs of the oil and gas industry.

In addition to minimizing fresh water demands for hydraulic fracturing, treatment

facilities to recycle wastewater would be recommended instead of underground injection

disposal wells. Underground injection disposal wells remove the wastewater from the hydrologic

cycle, adding to water scarcity in the future. By injecting wastewater into impermeable wells the

wastewater cannot recharge groundwater sources – therefore removing the water permanently

from the hydrologic cycle. It’s from the hydrologic cycle that the earth receives precipitation.

If Monterey Shale extraction results in federal regulation for wastewater disposal

techniques, each Publically Owned Treatment Works or Centralized Waste Treatment facility

would need to be evaluated for their capacity to treat and properly dispose of wastewater, in

addition to extra costs associated with treating fracking fluid. A recommendation would be to

have pretreatment requirements for the oil and gas industry to ensure that the water is treated for

salt, raidonucleotides, and other chemicals in the fracking fluid. However, wastewater recycling

is often energy intensive, and may need chemicals for treatment, or additional water for dilution.

There is no perfect solution for wastewater treatment. The best way to reduce wastewater is to

use less water for the hydraulic fracking process.

Reducing Water Contamination Risks

The Bakken Shale Oil Exploration has shown a relationship between groundwater

contamination and well construction. Baseline water testing is essential, and should be a

requirement of the industry before exploration activities begin. Instead of taxpayers absorbing

the cost of additional water quality monitoring, the oil industry should be required to test the

water in areas identified as potential locations for hydraulic fracking before, during, and after

development.

Updated logs and monitoring reports are essential during well construction and the

cementing process within the wellbore. To reduce fluid movement from deeper fracking zones to

groundwater aquifers, initial cement jobs and well casings need to be constructed using best

practices, as well as constant monitoring techniques to monitor ground water sources nearby.

Alaska and Ohio are two states currently using verification methods to demonstrate that the

quality of bonding between the cement within the well and the well casing meets quality

requirements for ground water protection (Groundwater Protection Council & Interstate Oil and

Gas Compact Commission, 2009).

Examples of these geophysical logs include Cement Bond Logs (CBL) and Variable

Density Logs (VDL) (Groundwater Protection Council & Interstate Oil and Gas Compact

Commission, 2009). Both the CBL and VDL measure the travel time of sound waves between

the cement and the casing, measuring the bond between the two physical barriers. If California

begins large-scale oil extraction using hydraulic fracturing techniques, geophysical logs would

be recommended for both new and existing wells to decrease risks of water contamination.

In 2010, California onshore oil and gas wells produced 2.39 billion barrels of produced

water as a biproduct – approximately 9 barrels of water for every 1 barrel of oil from wells

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(Kiparsky, Hein, 2013). In 2013, it was reported that the oil and gas industry in California prefers

underground injection of wastewater to any other wastewater disposal technique. An estimated

90-95% of wastewater is re-injected for reuse or disposal under the UIC Program. With over

24,000 active underground injection wells in California, underground disposal of wastewater

poses a risk to drinking water resources (EPA, 2011). One of the main dangers is the cement and

casing bond failure. Another recommendation to decrease risks of water contamination is to

mandate a CBL log for each well before construction, in addition to retrofitting existing wells.

To decrease risks of both ground water and surface water contamination, best practices

and regulatory requirements also need to be in place for the flowback water that returns to the

surface. The oil and gas industry should be held responsible for meticulous recordkeeping of

wastewater from fracking sites; including the percentage of flowback, surface storage locations,

transportation methods, and pre-treatment and treatment processes used. State regulations can

implement this by assessing fines on the industry if recordkeeping is not provided – with the fees

going toward scientific reporting.

Well plugging is a practice used to seal the inside of the well after the oil extraction

operation is complete. Well plugging attempts to stop/reduce fluid migration, both horizontally

and vertically. The current best practices are to use cast iron bridge plugs, capped with cement.

The cast iron creates a strong seal for the well, and the cement layer reduces the rate of

corrosion. An industry-wide regulation needs to be implemented for the process to close and cap

a well, in addition to monitoring guidelines after a well has been sealed.

Fault Zones and Induced Seismic Activity

Maximizing the distance – in addition to natural physical barriers – between the fracture

job and groundwater sources is a helpful technique for minimizing risk of contamination. If well

construction, proper casing, and initial cement lining is done correctly, the risk for ground water

contamination resulting from the flowback of fracture fluids is low. The greatest risk for

groundwater contamination is a result of the unaccounted flowback of fracture fluids that does

not make it to the surface. The vertical distance, in addition to the geological features between

the fractured zone and ground water source are factors that decrease risks of ground water

contamination (Groundwater Protection Council & Interstate Oil and Gas Compact Commission,

2009).

Natural faults within California increase the risk of chemical migration to drinking water

sources, such as groundwater aquifers. Naturally occurring faults in addition to wells serve as

migration pathways for contaminants to groundwater aquifers. Extensive geologic surveys of

currently existing wells (including abandoned wells) would need to be completed before large-

scale fracking operations occurred in Monterey Shale. Extreme caution should be given for wells

being drilled near an active fault line.

In addition to avoiding active fault zones to reduce groundwater contamination, recent

reports by USGS have shown an increase in seismic activity as a result of processes related to

hydraulic fracking. These ‘microearthquakes’, or earthquakes with magnitudes below 2, have

been reported in Oklahoma and have been correlated to fracking (USGS, Ellsworth, 2013).

Specifically, an increase in seismic activity is correlated to hydraulic fracturing wastewater

injection. Reports have showed the correlation between the injection of fluids to Class II disposal

wells and seismic events (USGS, Ellsworth, 2013). Because of California’s complex geological

formations, this enhances water migration. California’s Monterey Shale is deeper and thicker

than Bakken Shale, so risks are uncertain. In both Texas and Ohio, reports have indicated

epicenters in proximity to active underground injection wells.

When wastewater injection and sequestration occurs near faults with geologic formations

unable to resist external pressure, an earthquake in that region will be more likely to occur

(USGS, Ellsworth, 2013). Another requirement should be to perform geological surveys before

any exploratory wells are drilled. A ‘seismic risk map’ would need to be created by the United

States Geological Survey to indicate where hydraulic fracking should not occur based on fault

zones that could increase the risk of potential seismic activity and contaminated water migration.

California’s Policies on Fracking

As the debate continues between the benefits of high-paying jobs and billions of dollars

in state revenue versus potential costs associated with public health hazards and environmental

degradation, the state is beginning to draft and create proposed rules for regulating practices by

the oil and gas industry. In late 2013, Governor Jerry Brown signed into law CA Senate Bill 4, a

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bill sponsored by Democrat Fran Pavley – establishing regulatory standards for hydraulic

fracking in the state. Before SB 4, California had no regulatory oversight for this process.

Governor Brown now takes the stance that fracking is an acceptable means of oil extraction as

long as it is “done in a safe and responsible manner”.

State oversight in SB 4 includes the testing of groundwater near oil wells, in addition to

increased transparency from the oil and gas industry, such as a list of the chemicals used in

fracking fluid available to the public. The Division of Oil, Gas, and Geothermal Resources

(DOGGR) oversees the entire process of oil and gas wells, beginning with the permitting and

drilling of the operation, to the plugging and abandonment of wells. In partnership with the

California Department of Conservation, DOGGR will institute the regulatory program for

fracking activities. DOGGR, the State Water Control Board and the Regional Water Quality

Control Board are responsible for California’s groundwater and surface water resources, but

coordination efforts among these three agencies have been minimal in addressing the

contamination risks and availability of resources for hydraulic fracking.

The proposed rules also include air quality monitoring and an independent study to

determine the pros and cons of fracking, including environmental impacts associated with water

contamination and effects on wildlife. Implementation may begin as early as January 1, 2015,

and these regulations would be considered some of the strictest in the US. Since well stimulation

treatments require an Environmental Impact Report (EIR), as indicated by the California

Environmental Quality Act (CEQA), California will be the leader of the regulatory framework

that is likely to be adopted on a national level after complete assessments. During the interim,

before the draft is signed into law, DOGGR claims oil and gas companies must abide by pending

regulations as early as January 2014. However, environmental groups are still critical of the

adopted fracking law, claiming that the law contains too many trade-secret loopholes and fails to

control these environmentally destructive activities.

Public Notice and Transparency

Many of the chemicals used in fracking fluid are not disclosed to the public, protected by the

right to keep trade secrets unavailable. To develop transparency in California for the protection

of public health related to water contamination, the oil industry would need to disclose how,

when and where oil extraction operations will occur. This will help the public be more prepared

for potential spills.

In addition to public notice before fracking operations commence, the oil company should

take water samples and publish water reports. By creating a baseline for water availability and

water contamination before drilling operations begin, a spill or leak can be more easily

determined if a baseline has been established. Because California has complex water laws, these

recommendations should also be used for states dependent on water that either originates or

passes through California.

Future Research

Not many peer-reviewed scientific articles are available on risks related to hydraulic

fracking, because large-scale hydraulic fracking is relatively new. Studies take time and funding,

and the EPA is attempting to keep pace with fracking, but is falling short. Plans have been put

into motion, however until evidence is found that hydraulic fracking does not pose a risk to

human health, a moratorium should be placed on hydraulic fracking in California.

In-depth, scientific, and unbiased studies can be very costly, but could be paid for if

DOGGR increased fees for permits, leases, and assessment reports for the oil and gas industry.

Increasing fees would provide extra revenue to increase the number of studies completed to fully

understand the risks that hydraulic fracking poses to water supplies.

Numerous towns have recently placed bans or moratoriums on fracking, temporarily

delaying the process while waiting for more research to determine the environmental impacts of

this practice. After lawmakers in California proceeded with legislation to regulate fracking, a ban

is unlikely. The best ‘next steps’ are to wait for the 2014 peer-reviewed results of the EPA’s Plan

to Study the Potential Impacts of Hydraulic Fracturing on Drinking Water Sources to minimize

water risks to both underground sources of drinking water (USDW) and surface waters. The EPA

is also currently developing and drafting proposed rules to amend the current guidelines for

effluent limitations. The Oil and Gas Extraction Category (40 CFR Part 435) under the Effluent

Limitations Guidelines (ELGs) is scheduled for publication in 2014.

The oil and gas industry is currently exempt from seven of the United States federal laws

including: the Clean Air Act, Clean Water Act, Safe Drinking Water Act, National

Pepino36

Environmental Policy Act, Resource Conservation and Recovery Act, Emergency Planning and

Community Right-to-Know Act, and the Comprehensive Environmental Response,

Compensation, and Liability Act, also known as Superfund. More research is needed on how

these exemptions jeopardize public health and the environment, leading to stricter regulations for

the oil and gas industry.

As a result of the 2005 Energy Policy Act, water processes associated with hydraulic

fracturing are exempt from federal water laws. In an attempt to protect drinking water, a

congressional proposal called the Fracturing Responsibility and Awareness of Chemicals Act –

also known as the FRAC act – has been repeatedly dismissed after attempting to define hydraulic

fracturing as a federally regulated activity that would be accountable under the Safe Drinking

Water Act. On a national level, protections still remain in favor of the drilling industry.

Informing and educating communities about hydraulic fracturing is an important step in

increasing transparency. Education about hydraulic fracking can empower stakeholders, such as

farmers and homeowners, to voice their opinions about the process. Without transparency,

citizens can’t fully understand the potential risks.

CONCLUSIONS:

In the United States, the annual energy demand is predicted to increase. To meet this

energy demand, the oil industry is using hydraulic fracturing to extract unconventional resources.

Hydraulic fracturing is a technique used to extract oil from shale deposits, requiring millions of

gallons of water per well. As seen in the Bakken Shale oil exploration in North Dakota, the

acquisition of fresh surface water can be challenging as a result of lengthy permitting processes,

transportation distances, availability, and costs. Although North Dakota is considered a state of

‘moderate water stress’ – assessed by the ratio of water withdrawal to the mean annual available

supply – the state is still facing water supply shortages for fracking. In contrast, California has

been identified as a state with ‘high/extremely high water risk’, emphasizing the concerns about

water availability within the state.

This paper focuses on the impacts of hydraulic fracturing California’s Monterey Shale,

the largest shale basin in the US holding approximately 15 billion barrels of potentially

recoverable oil, or five times the estimated recoverable oil from Bakken Shale. Hydraulic

fracturing can help meet national energy needs while providing economic revenue. However,

fracking also has environmental risks.

Though estimates are uncertain for water requirements to frack Monterey Shale, it is

certain that California’s water needs are continually increasing with agriculture, municipalities, a

projected population increase, and water shortages already occurring in years of drought. By

adding an additional water demand for hydraulic fracturing, water-stress risks increase. To

improve estimated water demands for California’s oil industry, complete surveys would need to

be conducted based upon potentially recoverable oil within mature shale deposits, in addition to

identifying water sources that could be used for hydraulic fracking. The Central Valley Project in

California cannot currently meet the contracted delivery amounts promised to farmlands,

therefore additional water sources would need to be acquired to serve the needs of the oil

industry. Monterey Shale has a very complex geologic formation, yielding higher water

contamination risks, than compared to Bakken Shale. With active fault lines, greater porosity,

and deeper depths, fracking Monterey Shale does pose a risk for the contamination of drinking

water through groundwater and surface water contamination. Additional wastewater treatment

and recycling facilities, including POTWs and/or CWTs, would need to be built or retrofitted to

treat the high volumes of wastewater associated with hydraulic fracturing.

The Brown Administration has proposed regulations for the oil industry within

California, including increasing the transparency of the hydraulic fracturing process, in addition

to requiring independent studies to determine the risks of fracking. However, the SB 4 bill has

received criticism from environmental groups, claiming the law is still industry-friendly by

providing trade-secret exemptions. As more research is done over time, prudent advise would be

to proceed with caution, after identifying many environmental risks associated with hydraulic

fracturing.

Pepino38

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