Global Shale Gas Water Management Initiative 2012 March 28, 2012 

## Regulating Shale Gas Development in the Susquehanna River Basin –What’ s New?

## What We Don ’ t Regulate • We don ’ t regulate mineral resources • We don ’ t regulate the drilling, production or transmission of natural gas • We don ’ t regulate the treatment or disposal of flowback and production fluids • We don ’ t regulate water quality • Specifically, We rely on member jurisdictions for standards for well casing, treatment and disposal, and avoid duplication in areas like water quality

## What We Do Regulate

• We regulate all water withdrawals associated with unconventional gas development • We regulate all water sources associated with unconventional gas development • We regulate consumptive use of water associated with unconventional gas development • Specifically, we do regulate is water resources and their use associated with natural gas development

## General Regulatory Authorities • Groundwater withdrawals 100,000 gpd (30 day average) • Surface water withdrawals 100,000 gpd (30 day average) • Consumptive Use 20,000 gpd (30 day average) •Diversions In-basin: any amount Out-of-basin: 20,000 gpd (30 day average)

## Surface Water Withdrawals

• Waterbody classification • Aquatic resource survey • Cumulative impact review • Aquatic invasive species • Intake design & metering • Passby evaluation

## Groundwater Withdrawals • Constant rate aquifer testing requirement • Prior review and approval • Groundwater availability analysis • Recharge area delineation/recharge rates • 1-in-10 year drought recurrence interval • 72 hour testing/pre and post monitoring • Passby evaluation

## Consumptive Use • Cumulative impact • Sustain flows to Chesapeake Bay • Mitigation standard: 1

–1 • Mitigation options • Low flow augmentation

## Natural Gas Regulatory Adjustments

• July 2008: Approval by Rule process Public water supply sources • August 2008: Notice of Determination Elimination of thresholds/100% consumptive • January 2009: First Rule Change Specific natural gas ABR process/gallon 1 threshold Addition of SRBC-approved sources to ABRs Lesser quality water incentives Certification of disposal in accordance w/rules • November 2009: Second Rule Change Source list by company (not by ABR) Source flexibility/source sharing

## Natural Gas Regulatory Adjustments continued

• November 2010: Third Rule Change Standardized notification requirements Standardized transfer of approval process Clarification of administrative appeal process • December 2011: Fourth Rule Change Defines new terms including hydrocarbon development project Administrative approval of interbasin transfers of flowback Authorizes renewals Broadens the scope of ABRs Procedures for further water source approvals for ABR projects

## Natural Gas Approvals As of December 31, 2011 

## • Surface Water Withdrawals - 201 • Groundwater Withdrawals - 7 • Public Water Supply Systems

–32 • Wastewater Effluent/AMD - 2 • Approvals by Rule (Well Pads)

–1,767

## Considerations for the Approval Process • New online application process for withdrawals: --Complete application package --Shorten review time 

### • Seasonal considerations: ARS/aquifer testing • Objectively evaluate your source • New SRBC Meeting Structure --Public Hearing prior to SRBC meeting --Public Notice Deadlines for Federal Register

## 115 withdrawals have passbys

## Proposed Low Flow Protection Policy

• Ensures flow alterations related to withdrawals do not cause adverse impacts to water resources during low flows. • Incorporates scientific advances in ecosystem flow protection criteria. • Will be used to establish limits and conditions on withdrawal approvals, or support denials.

## Instream Flow ComponentsMonthly Q10 Monthly Median Monthly Q75 Monthly Q95 

## Ecosystem Flow Components & Statistics

## Existing Passby Policy 2003-01 • Applies to all water use sectors • SW & GW withdrawals • De minimusthreshold: withdrawals </= 10% 7Q10 • PA-MD IFS Model: CW streams <100 mi2in study area o % habitat loss per PA Chapter 93 use designation • Tennant method: streams not covered by IFS Model o % ADF per PA Chapter 93 use designation • Passby never less than 7Q10

## Improvements Contained in the LFPP • Establishes criteria to preserve seasonal variability of natural flow regimes. • Establishes basinwide aquatic resource classification system • Prescribes limits on natural flow alterations based on monthly or seasonal basis. • Sets hierarchy of flow protection based on ecological needs and specific passby flow or conservation release values on monthly or seasonal basis. • Improves protection of headwaters.

## Policy 2003-01 vs. Draft LFPP Low flow considered relative to historic flows for month rather than only dry weather period

## Improvements in the LFPP continued

• Improves protection of headwaters

• establishes clear protection standards, • limits or prohibits withdrawals, • requires consideration of alternative locations.

## Current Analysis

• Water use can be accommodated • Timing and location of withdrawals is key • Ongoing cumulative impact analysis • Reliance on member jurisdiction standards for well casing, and treatment and disposal • Real-time water quality monitoring • Further regulatory program refinement in 2012

## SRBC On-Line Resources: www.srbc.net Water Resource Portal www.srbc.net/wrp/Default.aspx 

### Remote Water Quality Monitoring Network www.srbc.net/programs/remotenetwork.htm 

### Marcellus Shale & Natural Gas Well Development (regulations, info. sheets, ppts, testimonies, maps, related press releases, etc.) www.srbc.net/programs/projreviewmarcellus.htmPaula B. Ballaron, PG Manager, Policy Implementation & Outreach 717-238-0423 x 222 pballaron@srbc.net