# 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&mi 2&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 SuspendedDra9(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&requiredDRBC&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