Environmental Issues Associated With Shale Oil And Gas .

em message from the presidentemService Above Selfawma.orgby Merlyn Houghpresident@awma.orgA&WMA HEADQUARTERSRobert E. Hall, QEPInterim Executive DirectorAir & Waste Management AssociationOne Gateway Center, 3rd Floor420 Fort Duquesne Blvd.Pittsburgh, PA 15222-14351-412-232-3444; 412-232-3450 (fax)em@awma.orgADVERTISINGAlison Lizzi1-412-904-6003sales@awma.orgEDITORIALLisa BucherManaging Editor1-412-904-6023lbucher@awma.orgEDITORIAL ADVISORY COMMITTEEDan L. Mueller, P.E., ChairZephyr Environmental CorporationTerm Ends: 2013Mingming Lu, Vice ChairUniversity of CincinnatiTerm Ends: 2013John D. BachmannVision Air ConsultingTerm Ends: 2012Jane C. BartonPatterson ConsultantsTerm Ends: 2012Gary Bramble, P.E.Dayton Power and LightTerm Ends: 2014Prakash Doraiswamy, Ph.D.RTI InternationalTerm Ends: 2014Steven P. Frysinger, Ph.D.James Madison UniversityTerm Ends: 2012Christian HogrefeU.S. Environmental Protection AgencyTerm Ends: 2013John D. KinsmanEdison Electric InstituteTerm Ends: 2014Miriam Lev-On, Ph.D.The LEVON GroupTerm Ends: 2012Julian A Levy, Jr.Independent ConsultantTerm Ends: 2012Charles E. McDadeUniversity of California at DavisTerm Ends: 2012Ann McIver, QEPCitizens Energy GroupTerm Ends: 2014Mark R. Manninen3MTerm Ends: 2014Teresa RaineERMTerm Ends: 2014S.T. RaoU.S. Environmental Protection AgencyTerm Ends: 2012Jacqueline SibbliesIndependent ConsultantTerm Ends: 2014Abhilash Vijayan, Ph.D., P.E., QEPCalifornia Air Resources BoardTerm Ends: 2014Susan S.G. WiermanMid-Atlantic Regional AirManagement AssociationTerm Ends: 2012James J. Winebrake, Ph.D.Rochester Institute of TechnologyTerm Ends: 2012PUBLICATIONS COMMITTEEMichael T. KleinmanUniversity of California, IrvineTerm Ends: 20144 em june 2012I marvel at the time, energy, and enthusiasminvested by the Local Host Committee and Association Headquarters staff to organize the AnnualConference & Exhibition. This year’s meeting inSan Antonio, TX, will be a marvelous event, andI hope to see you there later this month for anexceptional annual conference, technical program,and exhibition!The unselfish service by A&WMA’s host and staffteams reminds me of Rotary International’s motto:“Service Above Self.” Rotary, like our Association,has now been active for more than a century. Myinvolvement with Rotary is relatively recent (2006)compared to A&WMA (1982), but I have a growingappreciation for the service that Rotary is doing in thecommunity, in the workplace, and around the globe,including the global campaign to eradicate polio.Another hallmark of Rotary is The Four-Way Test.In the midst of the Great Depression, a Rotariannamed Herbert Taylor outlined a four-part ethicalguideline that helped him rescue Club AluminumCompany of Chicago. In 1932, he had been askedto help revive the nearly bankrupt company, whichowed US 400,000 more than its total assets.Taylor accepted the challenge, resigned his formerjob, took an 80% pay cut, invested some of hisown money for operating capital, and took over aspresident of Club Aluminum. After much prayerand many simplifying revisions, he came up withthis ethical guideline to shape how his companydid business:1234Is it the TRUTH?Is it FAIR to all concerned?Will it build GOODWILL andBETTER FRIENDSHIPS?Will it be BENEFICIAL to all concerned?Many people were skeptical that it could work, butwith Taylor’s leadership, it was put into practice.Everything was measured against The Four-Way Test.Advertising dropped words like “best” or “greatest”and replaced them with factual product descriptions. Negative comments about competitors wereremoved. It became the guide for every businessdecision and promoted trust and goodwill withcustomers and dealers. The Four-Way Test shapedthe corporate culture and eventually improved thecompany’s reputation and finances. By 1937, theindebtedness was paid off and the net worth of thecompany was steadily increasing.Rotary adopted The Four-Way Test as its ethicalcompass in 1943. More than 60 years later, DarrellThompson of the Morro Bay Rotary Club in California made these observations: “Few things areneeded more in our society than moral integrity.The Four-Way Test will guide those who dare to useit for worthy objectives: choosing, winning, andkeeping friends; getting along well with others;ensuring a happy home life; developing high ethicaland moral standards; becoming successful in achosen business or profession; and becoming abetter citizen and better example for the nextgeneration. Eloquently simple, stunning in itspower, undeniable in its results, The Four-Way Testoffers a fresh and positive vision in the midst of aworld full of tension, confusion, and uncertainty.”I believe that “Service Above Self” and The Four-WayTest are positive reinforcement to the service andfellowship I see in our Association. Keep up thegood work!Copyright 2012 Air & Waste Management Associationawma.org

Save the DateAIChE/A&WMA Joint WorkshopShale Oil and Gas E&P –Water Challenges and OpportunitiesNovember 1st and 2 nd, 2012 s Pittsburgh, PAWorkshop Topics: Water Treatment Water Reuse and Recycle Water Sourcing and Logistics Wastewater DisposalThe workshop will focus on the engineering design andin-the-field implementation of water use and reuse activities.Additionally it will bring together experts to discuss currentwater management technologies and processes utilized toaddress water use and impacted water disposal.For more information go spx 2012 AIChE 7245a 03.12

em cover storyEnvironmental Issues Associated with Shale OilDr. Miriam Lev-OnExecutive DirectorThe Levon Group LLCmiriam@levongroup.netVice Chair, A&WMAEnvironmental Sustainabilityand Climate Change DivisionMember, EM EditorialAdvisory CommitteeJulian A Levy, Jr.PresidentLevy EnvironmentalConsulting Ltd.jlevy@levyenv.comA&WMA FellowMember, EM EditorialAdvisory CommitteeThis the second in a two-part series looking at environmental issues associated with shale oilgas drilling and production—Part 1 (water issues) appeared in the March issue—focuses onair issues and complements a special session to be held on Friday, June 22, during A&WMA’s2012 Annual Conference & Exhibition in San Antonio, TX. Come and join the conversation!Air Emissions from Natural GasProduction: Opportunities, Challenges,and Emerging RegulationsProduction of natural gas from hydrocarbon-richshale formations (known as “shale gas”) and otherso-called “unconventional” formations is the mostrapidly expanding trend in onshore domestic oiland natural gas exploration and production today.In some areas, this trend is bringing drilling andproduction operations to regions of the countrythat have seen little or no similar activity in the past.In addition to economic benefits, these newoperations are bringing concerns about possibleenvironmental and social impacts.The expanding use of natural gas holds the key tothe U.S. meeting its energy demands and movingtoward independence from unreliable imports.Fossil fuels, such as natural gas, coal, and oil, supplyapproximately 85% of the nation’s energy, withnatural gas supplying approximately 22% of thetotal. In its March 2012 short-term energy outlook,the U.S. Energy Information Administration reportsthat total marketed production of natural gas grewby almost 8% in 2011, the largest year-over-yearvolumetric increase in history. This strong growthwas driven in large part by increases in shale gasproduction. Such production growth is expected tocontinue, though at a lower rate in 2012 and2013, based on current projections.With these increases in domestic natural gas production have come questions about the nature ofthese new production techniques, the need toassess their potential environmental impacts, andOil and Natural Gas Sector:National Emission StandardsOn April 17, 2012, the EPA Administrator signed thefinal rule for the first federal air standards for naturalgas wells that are hydraulically fractured, along withrequirements for several other sources of air emissions inthe oil and gas industry that have not been regulated atthe federal level. The final rules comprise of four airregulations for the oil and natural gas industry under theauthority of the U.S. Clean Air Act: A new source performance standard for volatileorganic compounds (VOCs); A new source performance standard for sulfur dioxide; An air toxics standard for major sources of oil andnatural gas production; and An air toxics standard for major sources of natural gastransmission and storage.6 em june 2012Copyright 2012 Air & Waste Management Associationawma.org

and Gas Exploration and Production, Part 2: Air Emissionsthe ability of the current regulatory structure to dealwith these developments. Regulators, policy-makers,and the public need an objective source of information on which to base answers to these questionsand decisions about how to manage these challenges while still enabling access to the developmentof domestic energy resources.The set of articles in this issue of EM provides abroad factual information spectrum consisting ofinformation about various aspects of air emissionscovering the range of greenhouse gases, criteriapollutants, and air toxics, along with an analysis ofemerging state and federal regulatory frameworks.With authors from industry, a national laboratory,an environmental advocacy group, the legalprofession, and the consulting arena, this issuepresents a full range of perspectives on air emissionsassociated with unconventional natural gas development. The first two articles (pages 8 and 14)describe concerns associated with the variability,uncertainty, and data limitations for quantifyingemissions from natural gas development. Thesearticles also use life cycle analysis (LCA) to assessthe overall air quality impact of shale gas use relativeto that of other conventional fuels. The third article(page 22) assesses the public health risks of naturalgas development and the relative benefits of naturalgas, especially when methane leakage is maintainedlow and accounted for in the analysis. The fourtharticle (page 26) presents recent important legalaspects associated with natural gas development. Thefinal two articles (pages 34 and 40) discuss existingtechniques for describing and quantifying emissionsfrom unconventional natural gas development.All of the articles in this issue clearly note thatimproved data and additional research are neededto narrow the range of uncertainty associated withquantifying emissions from these operations. Someof these data needs may start to be satisfied comeSeptember 2012 when the oil and natural gasindustry will start reporting under the U.S. Environmental Protection Agency (EPA) mandatorygreenhouse gas reporting program. Similarly, newdata will become available and emissions will bereduced when the new EPA emissions standardsfor the oil and natural gas sector start to be implemented (see sidebar below). em‘[I]t is vital that wetake full advantageof our natural gasresources, whilegiving Americanfamilies andcommunitiesconfidence thatnatural and culturalresources, air andwater quality, andpublic health andsafety will not becompromised.’» Executive Order: SupportingSafe and ResponsibleDevelopment of UnconventionalDomestic Natural GasResources, April 13, 2012Source: pment-unconventionNew Source Performance Standards andfor Hazardous Air Pollutants ReviewsThe requirements for VOC emission reductions fromwells, combined with reductions from storage tanks,compressors, and other equipment, are expected to helpreduce ground-level ozone in areas where oil and gasproduction occurs. These reductions would yield anenvironmental co-benefit by reducing methane emissionsfrom new and modified wells, although the rule does notregulate methane emissions or other greenhouse gasesdirectly. Oil and natural gas production and processingaccount for nearly 40% of U.S. methane emissions.flowback that comes from the well as it is being preparedfor production. The gas and hydrocarbons can then becaptured, treated and used or sold. The estimatedrevenues from selling the captured gas may offset someof the costs of compliance, while significantly reducing airemissions from domestic oil and gas productionFor the more than 11,000 new hydraulically fracturedgas wells, emission reductions would be attained primarilyby “reduced emissions completion” or “green completion”. In a green completion, specially designed equipment separates gas and liquid hydrocarbons from the VOCs: 190,000 — 290,000 short tons; Air Toxics: 12,000 — 20.000 short tons; and Methane: 1.0 million — 1.7 million short tons[approximately 19 million — to 33 million tons of CO2equivalent (CO2e)]awma.orgWhen the rules are fully implemented in 2015, EPAestimates the following combined annual emissionreductions:Copyright 2012 Air & Waste Management AssociationSource: U.S. EnvironmentalProtection Agency, April 17,2012, prepublication postingof final rule; lrule.pdf.june 2012 em 7

em featureExamining the Impactsof Methane Leakageon Life-Cycle Greenhouse Gas Emissionsof Shale and Conventional Natural Gasby Andrew Burnhamand Corrie ClarkAndrew Burnham is a fueland vehicle systems analystand Corrie Clark is an environmental systems and policyanalyst, both with ArgonneNational Laboratory,Argonne, IL. E-mail:aburnham@anl.gov;ceclark@anl.gov.The development of large-scale shale gas production has been described as a game-changerfor the U.S. energy market and has generated interest in expanding the usage of natural gas (NG)in sectors such as electricity generation and transportation. This development has been madepossible by improvements in drilling technologies, specifically utilizing hydraulic fracturing inconjunction with horizontal drilling. However, the environmental implications of NG production andits use have been called into question.1-4 One of the major concerns is the amount methane(CH4) leakage from production activities and its impact on the life-cycle greenhouse gas (GHG)emissions of NG.Natural gas drilling rig in Rifle, CO.8 em june 2012Copyright 2012 Air & Waste Management Associationawma.org

Natural gas has been referred to as a low-carbonfuel as its combustion produces significantly lesscarbon dioxide (CO2) than from gasoline, diesel,or coal combustion on an energy-equivalent basis.However, to understand the implications on climatechange, one must look at not only the GHG emissions during combustion, but also those fromupstream production activities. In 2011, the U.S.Environmental Protection Agency (EPA) mademajor changes to its methodology for calculatingCH4 emissions from the U.S. natural gas systemin its annual GHG inventory, which more thandoubled the total estimate from the previous year.5EPA’s revised methodology suggests that considerably more CH4 leakage occurs during productionthan previously thought. Our goal was to examinethe implications of the most recent estimates ofCH4 leakage on the life-cycle GHG emissions ofNG use. We utilized the Greenhouse gases, Regulated Emissions, and Energy use in Transportation(GREET) model developed at Argonne NationalLaboratory to estimate up-to-date GHG emissionsand also to understand the uncertainties involvedin calculating their life-cycle GHG impacts.6 In thisarticle, we will discuss the methodology used tocomplete our life-cycle analysis (LCA), several keyparameters that greatly affect our findings, andfinally the results of our study.MethodsAfter determining the purpose of an LCA, thescope of the study needs to be defined. This involvesconsidering issues such as system boundaries andfunctional units. In our LCA of shale and conventional NG, we examined the GHG emissions,specifically CO2, CH4, and nitrous oxide (N2O),from NG recovery, processing, transmission, distribution, and end use. In addition, we expanded thesystem boundary typically used in the GREETmodel to include the establishment of infrastructure,WellInfrastructureawma.orgNatural GasRecoveryas we were especially interested in the impacts ofwell drilling and completion, see Figure 1.As we wanted to study the impacts of expandedNG use in electricity generation and transportation,we chose to examine the following functional units:per-kilowatt-hour (kWh) of electricity produced andper-vehicle-mile-traveled for transportation services.These functional units take into account the efficiency (e.g., power plant efficiency and vehicle fueleconomy) of converting energy into energy services,which can significantly impact LCA results whencomparing different fuel and technology combinations. Other researchers have focused on permegajoule results, which represent the amount ofenergy produced from direct combustion.4 However,coal is predominantly used for electricity generation, while petroleum-based fuels are mainly usedfor transportation. Therefore, comparing directcombustion of NG to that of coal or diesel maylead to faulty conclusions, as the other fuels are nottypically used in this fashion.Data Sources and Key ParametersLarge amounts of GHG data are made availableusing the methodologies EPA has developed for itsannual U.S. GHG inventory to estimate emissionsfor different sectors, including the oil, coal, and NGindustries. Previous estimates were based on anexamination of the U.S. NG industry’s emissions in1992, prior to large-scale shale gas production.7 Assuch, the recent increase in the estimate of CH4leakage was due to a few major updates, including(1) adding the emissions from shale gas well completions, which involves preparing a well to producegas after it is drilled and includes the process ofhydraulic fracturing; and (2) revising the emissionsresulting from conventional NG liquid unloadings,which involves removing the accumulation of fluidsin wet gas wells. In this article, we will focus on theemission estimates from these well nCopyright 2012 Air & Waste Management AssociationFigure 1. System boundaryfor shale and conventionalNG pathways.End Usejune 2012 em 9

and recovery activities. However, CH4 emissionscan come from other well equipment and downstream from the recovery stage during NG processing, transmission, and distribution. For thesestages, it is assumed that shale and conventionalNG are treated in a similar manner and thereforethe CH4 emissions would be equivalent.8Estimated Ultimate RecoverySignificant CH4emissions fromshale gas wellcompletions canoccur afterhydraulic fracturingas flowback wateris removed fromthe well prior to thebeginning of gasproduction.Given that the EPA emissions for well completionsand liquid unloadings are estimated on a per-wellbasis, it was necessary to determine the estimatedultimate recovery (EUR) of gas from a well toamortize these periodic emissions over the totalamount of NG produced. This is done so that allemissions can be estimated on an equivalentenergy basis, which is calculated by multiplying thevolume of gas produced by its heating value. Theimplication of EUR is that the lower the amount ofNG produced, the higher the life-cycle GHG impactis for these periodic emissions.For shale gas wells, an EUR range of 1.6 to 5.3 billioncubic feet (Bcf) was produced using estimates forseveral important plays (i.e., shale formations containing NG): Marcellus, Barnett, Haynesville, andFayetteville. The low estimates, which were generated for the U.S. Energy Information Administration(EIA), capture the variable productivity of a play byevaluating the EUR for the best, average, andbelow-average areas.9 That study also suggestedthat areas being actively developed would typicallyhave a larger EUR than those that are not yetdeveloped. The high estimates, which representindustry average values, correlate well with the EIAdata for developed wells.10 This range points to alarge uncertainty in estimating life-cycle GHGemissions from shale gas, as we have to rely onestimates of lifetime productivity, while the industryis in its infancy and many of the plays have onlyrecently been drilled.On the other hand, conventional NG production isquite mature and well productivity has been decliningover the past few decades.11 We found that the average conventional NG well has a relatively low EUR, 1.0 Bcf. The implication of this is that, on average,periodic CH4 emissions from conventional wells willhave a larger impact on life-cycle GHG emissions ascompared to shale gas, due to the smaller amount ofgas produced over its lifetime.10 em june 2012Well CompletionsSignificant CH4 emissions from shale gas wellcompletions can occur after hydraulic fracturing asflowba

Zephyr Environmental Corporation Term Ends: 2013 Mingming Lu, Vice Chair University of Cincinnati Term Ends: 2013 John D. Bachmann Vision Air Consulting Term Ends: 2012 Jane C. Barton Patterson Consultants Term Ends: 2012 Gary Bramble, P.E. Dayton Power and Light Term Ends: 2014 Prakash Doraiswamy, Ph.D. RTI International Term Ends: 2014 Steven .