Fracking, Round 2

Lori — Wed, 21 Mar 2012 03:37:41 +0000

There are two questions I get most often from people when they learn that I’m a member of Cary Town Council.

How much time does it take? (I haven’t figured that out, yet.)
How different is working on council than in the private sector? Now that’s a harder question.

Normally, my answer is that I’m surprised how much longer things take in the Public Sector. Not because there aren’t good people – in fact, quite the opposite. But, if you can imagine doing your whole job, where just about every decision you make is out in the open, that just takes more time. Also, because you and I and all citizens have the right to ask questions, provide feedback and input, and need to be informed – that can lengthen the process.

My First Request

So, when I pink-slipped an item during my first council meeting requesting that staff review what actions the town might take regarding hydraulic fracturing, (also known as “fracking”) within the Town of Cary and/or ETJ, I knew it would take awhile. The request required input from the Environmental Advisory Board and the Economic Development Commission, and of course, staff. Their involvement and feedback is a valuable component of moving forward.

(I wrote more about this in an earlier blog post.)

There is also a sense of urgency with this request, considering that the General Assembly is continuing to look at this issue.

Progress!

At tonight’s work session, I’m thrilled that we are taking one of the first steps to do what we can to protect Cary citizens’ high quality of life, our environment, and our natural resources for ourselves and our children.

Our council unanimously put forward the following item as part of our legislative agenda:

Preserve local interests when developing regulatory framework for shale gas development

As well as a draft resolution:

RESOLUTION OF THE TOWN OF CARY , NORTH CAROLINA

DRAFT

Whereas, the North Carolina Geological Survey has concluded that a commercially viable reserve of natural gas may underlie parts of North Carolina, possibly including areas within Cary’s corporate limits and extra-territorial jurisdiction; and

Whereas, a number of factors, including increased interest in developing new energy sources, access to existing natural gas pipelines in the area, and energy demand from nearby industries and utilities could make this potential gas reserve a target for exploration and development; and

Whereas, North Carolina’s laws regulating oil and gas exploration and production (Article 27, G.S. 113-378 through 113-423) are dated and do not address the technologies commonly used in shale gas exploration and production, such as horizontal drilling and hydraulic fracturing; and

Whereas, Session Law 2011-276 (House Bill 242) directs DENR to study the issue of oil and gas exploration in the state, and to specifically focus on the use of directional and horizontal drilling and hydraulic fracturing for that purpose and Senate Bill 709 would, if it becomes law, direct DENR to provide a comprehensive report that outlines the commercial potential of shale gas resources within the state as well as the regulatory framework necessary to develop this resource; and

Whereas, while development of this resource could be an economic benefit to North Carolina, other states have found that shale gas production also has impacts that need to be carefully managed;

Whereas, the possible environmental impacts of shale gas exploration include the effects of the use of high volumes of water during drilling; potential contamination of groundwater aquifers by chemicals, water or wastewater during drilling or hydraulic fracturing of the shale layers; clearing of access roads and the drilling area; and storage of chemicals used in the process; and

Whereas, the state of North Carolina and the Town of Cary enjoy outstanding quality of life and the Town seeks to preserve that quality of life regarding environmental quality, environmental health, and economic opportunities; and

Now Therefore Be it Resolved by the Town Council of the Town of Cary that any further legislative and regulatory activity of the North Carolina General Assembly related to shale gas development proceed in a thoughtful and deliberative manner, that it preserve local governments’ abilities to determine appropriate land use planning related to potential locations of oil and gas activities, that the full impacts on regulatory requirements, economic development, the environment, social aspects affecting communities, and local government services be better understood as represented in the forthcoming DENR report and the February 2012 STRONGER report prior to implementing a new oil and gas program, and that sufficient public input opportunities be provided for any policy and rule making processes.

This is a first step – and an opportunity to give our state representatives and leaders insight into what’s important for our town and it’s citizens.

To “frack” or not to “frack”

Lori — Fri, 23 Dec 2011 21:28:59 +0000

“Fracking,” or Hydraulic Fracturing, has been in the news here and across the country over the last month or so. There have been documentaries, news stories, and editorials. It was even a question asked during the Town of Cary Candidate Forum this year.

Why here? Why now?

You wouldn’t think it would be a big deal here considering that fracking, or horizontal drilling in NC is illegal, today. But, NC House Bill 242, directs the Department of Natural Resources (DENR) to study fracking. That’s just the beginning of what many say will be a move to make it legal in NC.

Natural Gas is still an inexpensive energy source, but one with a significant amount of controversy. Based on research by U.S. Energy Information Administration (EIA) and the American Petroleum Institute (API), along with the US Geological Surveys, there is a good possibility of a significant amount of Natural Gas here, in Wake, Chatham, Durham, and Lee Counties. Those are counties that are part of the 150 mile long Deep River Basin, that runs right along Jordan Lake, our collective drinking water supply. This gas is about a half-mile below the surface. It’s not thought to be as large a supply as what is in Pennsylvania, New York, or Texas, but it’s enough to be interesting. And, close enough to our water supply, to cause me concern.

What can we do?

First, I wanted our town to be prepared to understand the impact to our community, and to be proactive in our position(s) regarding this issue. That’s why Mayor Weinbrecht and I made a motion for our staff, the Cary Environmental Advisory Board, and the Economic Development Commission to weigh in on the pros and cons of suggested actions the Town of Cary may take on the issue. That motion passed, and I look forward to their report.

Next, I attended a Fracking Symposium held by the NC League of Municipalities last week. It was a good forum that covered “fracking” from economic and job growth, to environmental and chemical considerations, to land owner’s mineral rights. It was good to see a number of municipalities attending, and asking their OWN questions regarding the impact of this method.

Key Takeaways

As with any new adventure, I’m finding that the people I meet, and the information I learn is as exciting as I had hoped. Here are just a few of my takeaways from the symposium.

Photo by Darth Pedrius

Each and every municipality that attended (from Chapel Hill, Durham, Creedmoor and others) want to find a way to have some say in what happens in their community. Some, like Creedmoor, have already passed ordinances.
Vik Rao, a former VP at Halliburton, now an Executive Director at Research Triangle Energy Consortium, supports fracking, but had a number of cautions.

That in drought tolerant areas (like ours) using saline aquifers (NOT FRESH WATER) is key – and that NO fresh water should be used
Water should be re-used, not disposed of (more than 6 million gallons of water can be used for a single fracture)

Fracking can bring a significant number of jobs, but the key will be to understand the amount of gas available, and when those jobs will come. Also, the infrastructure to support it needs to be built. Many believe that leases that are being bought NOW, will not be used for many years to come.
Representative Hager is open to protecting sensitive areas (areas around schools, tourist areas, etc.)
1. Municipalities need to suggest that other areas should be protected (historic, conservation districts, sensitive agriculture, etc.)
Mineral Estates and Surface leases are split. This was a surprise to me, but apparently this occurred during the Great Depression, when many families sold their mineral rights to pay for taxes and allow underground coal mining. Now, it is possible for a “surface land owner” to own the ground on top, but another owner could have the rights to what is underneath, often referred to as a “split estate.” And, in this case, the Mineral Estate is dominant, meaning that the surface owner has no say in what happens under their property.
1. 9000 leases are currently signed in the area
2. 14 counties are part of the Deep River Basin – Durham Sub Basin impacts Wake, Durham, Chatham counties

fracking – Lori Bush