ARTICLE(7(NATURAL(GAS(RULE

William&J.&Muszynski,&P.E.,

Manager,&Water&Resources Management&Branch Delaware&River&Basin&Commission

Shale&Gas&Water&Management

IniCaCve&2012

March&28,&2012
Delaware&River&Basin&Commission

• Founded&in&1961

• &Five&Members:

–Delaware

–New&Jersey

– Pennsylvania

–New&York&State

– Federal

Government
OVERVIEW

•Basin&Facts

•Regulatory&Status

•NG&RegulaCons&Strategy

•NG&Rule&Overview

•Water&and&Wastewater&EsCmates

•Water&Withdrawal&Requirements

•Bulk&Water&Use&Requirements

•Natural&Gas&Development&Plans

•Wastewater&Treatment&Facility&Requirements
Delaware&River

&Basin&Facts

 Over&15&million&people&(about

5%&of&the&U.S.&populaCon)

rely&on&the&waters&of&the

basin&for&water&supply

 Drains&13,539&mi2&of&the

conCnental&U.S.

 Longest&undammed&river&east

of&Mississippi&(330&miles)
Water&supply&for&>&15&million&people

 NYC&takes&half&its&water&supply

from&3&reservoirs&in&the

Delaware&headwaters

 7.8&million&in`Basin&also&rely

on&the&Delaware&&&tribs

 PA&intakes:&Easton,&Allentown,

Reading,&Aqua`PA&(Bristol,

Schuylkill,&Neshaminy)&,

Philadelphia,&PAWC&(Yardley,

Norristown)&,&Lower&Bucks&JMA

 NJ&intakes:&Trenton,&NJAW`

Delran

 DE&intakes:&Wilmington
Unique&Resource

 ExcepConal&water&quality

 High&ecological&diversity

 ~75%&of&the&non`Cdal&river

is&part&of&the&NaConal

Wild&and&Scenic&Rivers

System

 Upper&&&Middle&in&1978

 Lower&in&2000
Marcellus

Shale&and

Special

ProtecCon

Waters

36% (4,937 mi 36% (4,937 mi2)

of the Delaware of the Delaware

Basin is Basin is

underlain by the underlain by the

Marcellus Shale Marcellus Shale
ACREAGE

ESTIMATES
Current&AcCvity

Marcellus&Shale&Gas&Well&Drilling&Techniques
Natural(Gas(Regulatory(Status

•Dra9(Ar:cle(7(Rule(Proposed(Dec(2010

•69,000(SubmiHals(Received

•Comment(Period(closed(on(April(15,(2011

•Final(Dra9(NG(Regula:ons(Released(November(8,

2011

•Commissioners(deciding(on(path(forward
Water&and&Wastewater

Diversion&Into/Out&of&Basin

• Water&Code&SecCon&2.40

• Water&or&Wastewater&Import/Export&Require

Commission’s&Approval

– Water&&100,000&gpd

– WW&&&design&50,000&gpd

• RPP&Thresholds&for&NG&May&2009&EDD

Suspended
Dra9(NG(Regula:ons’(Strategy

2.((NATURAL(GAS

DEVELOPMENT(PLANS

•Natural&Gas&Development

Plan

•Manage&water&use&&

disposal

•Monitor&and&protect&surface

water&&&groundwater

1. WATER

WITHDRAWAL

&(USE

• Protect&surface&and

groundwater&supplies

• Preserve&ecological

flows

• Ensure&assimilaCve

capacity&for

discharges

• Track&and&control

usage

3. WASTEWATER

TREATMENT(&

DISCHARGE

• Protect&receiving

water&bodies

• Track&wastewater

producCon,&reuse,&and

disposal

• Ensure&adequate

treatment&is&available

for&expected&waste

stream
ARTICLE&7&NATURAL&GAS&RULE

November&8,&2011&Final&Draj

• BASIC&FOCUS&REMAINS&SAME&AS&THE&DRAFT

RULE

– WATER&WITHDRAWAL&AND&USE

– NATURAL&GAS&DEVELOPMENT&PLANS

– WASTEWATER&TREATMENT&AND&DISPOSAL

– CONTINUED&RELIANCE&ON&NY/PA®ULATONS&for

the&CONSTRUCTION&OF&NG&WELLS

– WATER&SOURCES&MUST&BE&COMMISSION&APPROVED

– ENHANCED&PUBLIC&NOTICE&REQTS.&(ADA&&&DOCKETS)
ARTICLE&7&NATURAL&GAS&RULE

• BASIC&FOCUS&REMAINS&SAME&AS&THE&DRAFT

RULE

– SITING&AND&SETBACK&FOR&INFRASTRUCTURE

– PROHIBITIONS&IN&FLOODWAY

– &VARIANCE&PROVISIONS

– DOCKET&APPROVAL&IN&NPS,&UDRA,&NYC

WATERSHED

– GW&&&SW&MONITORING
ARTICLE&7&NATURAL&GAS&RULE

• MODIFICATIONS&TO&DRAFT&RULE

– 18&MONTH&ADM.&AND&OPER.&ASSESSMENT

– BWA&UP&TO&300&WELLS&UNTIL&COMMISSION&VOTE

– BULKWATER&USE&AND&MANAGEMENT&APPROVAL

– APPROVED&WATER&SOURCE&LIST

– ADA&Authority&Except&for:

• NPS&Management&Areas

• NYC&watersheds&to&NYC&Delaware&River&Basin

Reservoirs

– ADA&FOR&DIVERSIONS&INTO&THE&BASIN&FOR&HF
POTENTIAL&WATER&AND

WASTEWATER

DEPENDENT&ON&SEVERAL&FACTORS:

•AMOUNT&OF&GAS&IN&THE&FORMATION

•THE&AREA&OF&THE&BASIN&DEVELOPED

•THE&FORMATIONS&DEVELOPED

•NUMBER&OF&NG&WELLS

•PACE&OF&WELL&DEVELOPMENT

•AMOUNT&OF&FLOWBACK&AND&PRODUCTION

WATER&REUSE
((Water(Withdrawal

Projected(Water(Needs

Over(10[20(years:

5(million(gallons(per

horizontal(well

s:mulated

24[90(BG(w/(no

recycling

21[77(BG(–(assuming

95%(reuse(of(ini:al

flowback(water
Dra9(NG(Regs(Water(Withdrawal

 ONLY&COMMISSION&APPROVED

WATER&SOURCES&CAN&BE&USED

 EXISTING&SOURCES&WITH

ALLOCATION&CAPACITY&AVAILABLE

PREFERRED

 REUSE&OF&FLOWBACK

/PRODUCTION&WATER

 SOURCES&REQUIRING&ADDITIONAL

ALLOCATION,&NEW&SOURCES&(mine

drainage,&treated&wastewater,

NCCW,&&new&sw/gw,&imported

water)&REQUIRE&DOCKET

APPROVAL.

 TYPICAL&REQUIREMENTS&(Pass`by

flow&requirements,&pumping&tests,

etc.)
Bulk&Water&Use&Approval&Requirements Bulk&Water&Use&Approval&Requirements

•NG&well&pad&and&pipeline&siCng NG&well&pad&and&pipeline&siCng

restricCons&and&setbacks restricCons&and&setbacks

•Water&and&wastewater&tracking&and Water&and&wastewater&tracking&and

reporCng&requirements reporCng&requirements

•Background&groundwater&and Background&groundwater&and

surface&water&monitoring&and surface&water&monitoring&and

sampling sampling

•Drought,&metering,&invasive&species Drought,&metering,&invasive&species

plans

•Planning&requirements Planning&requirements

•Recovered&flowback&reuse&approved Recovered&flowback&reuse&approved

as&condiCon&of&approval as&condiCon&of&approval

•ConsumpCve&water&use&charges ConsumpCve&water&use&charges

•Financial&assurance&requirements Financial&assurance&requirements

•Flowback&storage&in&tanks Flowback&storage&in&tanks

•Off`site&drill&cuongs&disposal Off`site&drill&cuongs&disposal

•Modified&public&noCcing&procedures Modified&public&noCcing&procedures
Well&Pad&and&Natural&Gas&Development Well&Pad&and&Natural&Gas&Development

Plan&Approvals Plan&Approvals

•Lease&hold&review&vs.&individual

wells

•3,200&acres&or&more&than&5&well 200&acres&or&more&than&5&well

pads

•Mapping&of&constraints&and

developable&areas

•OpCmize&locaCons&of&proposed&well

pads&&&infrastructure

•Establish&miCgaCon&requirements

Draj&NG&Regs&`Wastewater&Discharge&Approvals Draj&NG&Regs&`Wastewater&Discharge&Approvals

•Applies&to&all&treatment&faciliCes Applies&to&all&treatment&faciliCes

to&accept&non`domesCc to&accept&non`domesCc

wastewaters wastewaters

•Treatability&study&requirement Treatability&study&requirement

•Site&specific&discharge Site&specific&discharge

requirements requirements

•Non`exceedance&of&EPA&Primary Non`exceedance&of&EPA&Primary

and&Secondary&Drinking&Water and&Secondary&Drinking&Water

Standards Standards

•Analysis&for&DRBC&Zone&Specific Analysis&for&DRBC&Zone&Specific

Water&Quality&Criteria& Water&Quality&Criteria&–&Tables&3 &Tables&3 –&7&of&the&WQRs &7&of&the&WQRs

•Analysis&for&Acute&and&Chronic Analysis&for&Acute&and&Chronic

Toxicity&per&SecCon&7.6&(e)(1) Toxicity&per&SecCon&7.6&(e)(1)

•Analysis&for&TDS&Stream&Quality Analysis&for&TDS&Stream&Quality

ObjecCves ObjecCves

•NMC&to&EWQ&analysis&required NMC&to&EWQ&analysis&required
DRBC&Ambient&Monitoring&Framework&for&Natural&Gas&Development&in&the&Delaware&Basin
QUESTIONS?

William Muszynski P.E. Manager,

Water Resources Management Branch

william.muszynski@drbc.state.nj.us

www.DRBC.net
(Wastewater(Disposal

Wastewater(“Treatment”(&(Disposal

 Ini:al(Flowback

–15%(of(frac

volume(=(0.75(MG

per(well

 3.6([(14(BG(over(10[

20(years

 Treatment(capacity

and(capability

currently(lacking