# EPA’s	Energy	Extrac0on	Na0onal Enforcement	Ini0a0ve

Oil	and	Gas Environmental	Compliance	Conference 

# May	14 ,	2014

February	19,	2014

Andrew	R.	Stewart Office	of	Enforcement	and	Compliance	Assurance U.S.	Environmental	Protec0on	Agency2 

# Disclaimer

This	presenta,on	does	not	represent,	and	should	not be	construed	to	represent,	any	formal	or	informal	EPA determina,on,	policy	or	regula,on.	This	presenta,on may	not	be	relied	on	to	create	any	rights,	substan,ve or	procedural,	enforceable	by	any	party	in	li,ga,on with	the	United	States.	Technical	considera,ons	are provided	for	discussion	purposes	only.3 

# Energy	Extrac0on:	Expansion

Advances	in	hydraulic	fracturing	and	horizontal	drilling	have	opened new	areas	for	oil	and	gas	development.4 

# Examples	of	Environmental	Concerns with	Natural	Gas	Produc0on

• 

## Water use may stress surface and groundwater supplies.

• 

## Faulty wells may contaminate aquifers, threaten drinking water.

• 

## Poor management and disposal of flowback and produced water waste may compromise water quality, wastewater treatment, and create lasting waste disposal concerns.

• 

## Air emissions (e.g., benzene and methane) from shale gas exploration and production may threaten air quality.5 

# EPA’s	Enforcement	Ini0a0ve

In	March	2010,	EPA	announced

new enforcement	ini0a0ve for energy	extracBon.

IniBaBve	renewed	for	FY14-16.

Focus	is onshore	natural	gas produc0on

.6 

# Goals	and	Approaches

Major	goals:

• Take	acBon	where	violaBons

cause air	or	water	human	health or	environmental	impacts

• Use Next	Genera0on technologies to	assess	impacts from	extracBon	and	producBon acBviBes

• 

### Increased	field	presence	through civil	and	criminal	invesBgaBons

• 

### Corporate-wide	assessments/ relief7 

# Next Generation Compliance Components

Tools 

## Rule/permit Design

Advanced Monitoring

Electronic ReporBng Transparency InnovaBve Enforcement8 

# Next	Genera0on	Compliance Applied	to	Energy	Extrac0on

1. 

### More Effective Rules

• For existing rules, are there opportunities where burdens may be reduced?

• For new rules under consideration, OECA runs a Rule Design Consultation Service to help workgroups apply Next Gen principles and tools.9 

# Next	Genera0on	Compliance	Applied	to Energy	Extrac0on: con?nued

2. 

### Advanced Monitoring Technology

• How can EPA get industry to use technology to identify leaks sooner, prevent product losses and reduce pollution?

• Advanced monitoring equipment can help identify the most serious problems. GMAP	(geospa,al	measurement	of	air	pollu,on)	tool can	be	used	to	es,mate	amount	and	loca,on	of methane	and	VOC	emissions.		Includes	IR	camera, sampling	ports,	GPS,	methane	meter.10 Pollution that had previously been “invisible” becomes “visible” through real-time monitoring 

# Advanced Monitoring: Infrared Camera11 

# Next	Genera0on	Compliance	Applied to	Energy	Extrac0on: con?nued

3. 

### Electronic Reporting

• Can EPA use smart web tools to guide industry in reporting data sooner with less errors?



### 4. 

### Transparency

• Public transparency can improve performance and empower the community.



### 5. 

### Innovative Enforcement

• Strategic targeting using available data

• Geospatial data analysis (“GeoPlatform”)12 

# Typical Natural	Gas Well	Life Cycle

Stages Length of Time

1 Site Considerations and Preparation 12-18 Months

2 Well Drill Site Preparation and Drilling 1 Month

3 Well Completion (Hydraulic Fracturing) 1 Month

4 Well Production 10-30 Years

5 Well Abandonment 1 Month

Source: City of Southlake, Texas; EPA Office of Enforcement and Compliance Assurance13 

# Legal Authorities: Examples

SDWA : address public water system contamination

RCRA : address non-E&P wastes (including hazardous wastes mixed with exempt E&P wastes); and address waste that may present an imminent & substantial endangerment to health or the environment CAA : address air emissions from stationary sources
CWA : address discharges of a “pollutant” from a “point source” to navigable waters SDWA : address contamination of underground sources of drinking water

CERCLA 104 : response authority to address releases that may present imminent & substantial danger, subject to the “petroleum exclusion”

CERCLA 106 : abatement authority to address imminent & substantial endangerment, subject to the “petroleum exclusion”14 SDWA 1431 order to address imminent & substantial endangerment caused by entry of pollutant into public water system

CWA 504 action to address imminent & substantial endangerment to health, welfare, or livelihood caused by discharge from “pollution source” CERCLA 104 removal action to address release that may present imminent & substantial endangerment, subject to the “petroleum exclusion” SDWA 1431 order to address imminent & substantial endangerment caused by entry of pollutant into underground source of drinking water

CERCLA 106 order to address imminent & substantial endangerment, subject to the “petroleum exclusion”

RCRA 7003 action to address solid waste handling that may present an imminent & substantial endangerment to health or the environment CWA/OPA 311 action to address substantial threat to public health or welfare from discharges of oil or hazardous substances to navigable waters CAA 303 action to address imminent and substantial endangerment of public health or welfare, or the environment from air emissions or pollution 

# Emergency Authorities15 

# Enforcement	Ini0a0ve: Results

• 

### Air reductions of NO x 

### , CO, VOCs, and conservation of CH 4 

### from concluded enforcement actions

• 

### Actions to address impacts to water from wellpad releases

• 

### Actions to restore wetlands illegally filled to create access roads to well pads16 

# Examples of Settlements

• 

### XTO Energy – Clean Water Act (2013)

• 

### Fluid Recovery Services – Clean Water Act (2013)

• 

### Elm Ridge Exploration Company – Clean Air Act (2012)

• 

### Atlas Resources – Clean Air Act and EPCRA (2012)

• 

### ConocoPhillips and Williams – Clean Air Act (2011)17 

# Questions?

Andrew	R.	Stewart AcBng	Director Special	LiBgaBon	and	Projects	Division Office	of	Civil	Enforcement Office	of	Enforcement	and	Compliance	Assurance
U.S.	EPA stewart.andrew@epa.gov (202)	564-1463