The Riverwatch the Quarterly Newsletter of the Anglers of the Au Sable

Winter 2011 Number 60 THE RIVERWATCH THE QUARTERLY NEWSLETTER OF THE ANGLERS OF THE AU SABLE

Special Report on Oil & Gas From the Editor THE RIVERWATCH The RIVERWATCH is a quarterly pub- lication of The Anglers of the Au Sable, Visit Website For a non-profit corporation dedicated to the Updates on Kolke protection of the Au Sable River, its watershed and surrounding environs. Dues Creek and the are $25 per year. For membership please contact: Supreme Court The Anglers of the Au Sable P.O. Box 200 As RIVERWATCH 60 goes to press the outcome of the re- Grayling, MI 49738 hearing for the Kolke Creek Case is unknown. Please go to www.AuSableAnglers.org www.ausableanglers.org for updates on Attorney General Bill Schuette’s attempt to overturn the Court’s recent rulings. Also, let AG Schuette and Governor Rick Snyder know what you think about this action.

Governor Rick Snyder DIRECTORS (517-373-3400 President Rick.Snyder@michigan.gov) Bruce Pregler, Rochester Hills, MI First Vice President Tom Baird, Diamondale, MI Attorney General Bill Schuette Second Vice President John Bebow, Milan, MI (517-373-1110 Treasurer Pat Dwyer, Rochester, MI [email protected]) Secretary Karen Harrison, Frederic, MI Directors Wayne Blessing, Ann Arbor, MI Don Boyd, Wayland, MI Thomas Buhr, Luzerne, MI Dick Daane, Ann Arbor, MI (Emeritus) John Dallas, Troy, MI Alan Diodore, Grayling, MI Dan Drislane, Emigrant, MT (Emeritus) Jay Gleason, Huntersville, NC (Emeritus) Josh Greenberg, Grayling, MI Joe Hemming, Beverly Hills, MI Mark Hendricks, Grayling, MI Bruce Johnson, Rochester, MI Terry Lyons, Perry, MI Ed McGlinn, Farmington Hills, MI (Emeritus) Tess Nelkie, Tawas City, MI John Novak, Grayling, MI Dennis Potter, Grayling, MI John Russell, Traverse City, MI Don Sawyer, Okemos, MI Dean Schmitt, Toledo, OH Jim Schramm, Pentwater, MI Jim Shiflett, Grand Ledge, MI John Walters, Vanderbilt, MI Lance Weyeneth, Gaylord, MI John Wylie, Grayling, MI

2 From The Editor Oil & Gas 2.0

In the last decade Anglers sons to be optimistic. The oil spill on the Kalamazoo of the Au Sable has become im- River is instructive as to what we On the heels of the Savoy case mersed in the issue of oil and can expect on the Au Sable if Line came Kolke Creek. The issues of gas use in Michigan. Through 5, crossing about a mile above how to properly remediate the two court cases we have become Parmalee Bridge, ever springs a Hayes 22 central processing facil- aware of the impact on the re- leak. ity had statewide ramifications. source by these activities. Many The case of Merit Energy’s vio- A year ago how many knew of us thought that we had seen it lations of the Michigan Environ- what fracking was other then it all, but there was even more to the mental Protection Act (MEPA) ul- sounded indecent? With the re- story. Now, as we enter the second timately led to the State Supreme cent unprecedented sale of leases decade of the 21st century, new Court. for natural gas exploration by the threats to our forests and streams State, coupled with rumblings in have come to our attention. Everyone who cherished clean the Middle East, this “revolution- coldwater won a victory last De- Back in the summer of 2003 ary” method for gas extraction cember when the Court sided with it seemed so very simple; stop the may become as common as a nut- Anglers in that case, and reversed exploratory well near the Mason hatch in our forests. Its impact on two key previous rulings regard- Chapel. On its face the idea of our supply and quality of ground- ing citizens rights to challenge allowing a wellhead and central water is open to much debate. MDEQ permits for water use. processing facility so near an area These gains in protection of our Mr. Alexander, with the help both environmentally sensitive water resource from improper use of Board Member, John Bebow, and popular with outdoor recre- by the oil and gas industry as well himself an investigative reporter, ationists seemed preposterous. as other entities may be short- thoroughly examined these and Yet, we watched the U.S. Forest lived. If the newly reconstituted other issues salient to our conser- Service twist the National Envi- State Supreme Court, now con- vation goals as we move forward. ronmental Protection Act (NEPA) servative in tone, has its say then They conclude with a set of rec- into a pretzel trying to allow and we are living in a Prague Spring. ommendations that we will study defend Savoy’s right to drill. closely while planning a response. And now comes RIVER- Those were dark days. It was WATCH 60 – A Special Report Those who love our clean and unclear whether the courts would on Oil & Gas. Investigative re- pristine rivers and streams should see the breaches of statute as porter, Jeff Alexander, well ex- read this report carefully, and then clearly as we did. perienced with Michigan and the share it with a friend or family In the end the courts sided with region’s environmental woes, has member. We need to educate our- us. It was a satisfying victory, but uncovered and brought into focus selves in order to best respond to tempered by Savoy’s continued threats both old and new. whatever may come next. There intent to drill. An Environmental will be strength in numbers. While we labored on the Sa- Impact Statement (EIS) – some- voy and Merit Energy cases, few Welcome to Oil & Gas 2.0. thing we wanted from the start – of us paid attention to the network It’s time to upgrade our resolve as will guide any activities this time of pipelines spread across North- well to protect the Pure Michigan around. There are plenty of rea- ern Michigan like a spider web. we love so dearly. - THOMAS BUHR, RIVERWATCH EDITOR

3 Bios - Contents

BIOS

Jeff Alexander is an award winning author and a former environmental journalist. He covered Great Lakes issues for 20 years for several Michigan newspapers, most recently for The Muskegon Chronicle. He is now self-employed and writes for several nonprofit organizations, including the National Wildlife Federation. He is the author of two books: “The Muskegon: The Majesty and Tragedy of Michigan’s Rarest River” and “Pan- dora’s Locks: The Opening of the Great Lakes-St. Lawrence Seaway.” He resides in Grand Haven.

John Bebow is 2nd VP of Anglers of the Au Sable. In his day job, he’s executive director of the Center for Michigan, a nonpartisan “think and do tank” focused on public policy, public engagement and in-depth journalism. He previously served as an investigative reporter at the Chicago Tribune, Detroit News & Free Press, Ann Arbor News, and Traverse City Record-Eagle and as a founding editor at Mlive.com. He was embedded with the U.S. Marines in Iraq in 2003 on behalf of the Detroit News/Gannett Newspapers. He is a fre- quent contributor to public radio and television and appears as a public speaker before a wide range of professional/trade associations. He holds a MBA with distinction from University of Michigan and lives in Milan with his wife, Monica, and 6-year-old daughter, Delaney.

Table of Contents

Introduction ...... page 5

Oil Pipelines page 8

Natural Gas Pipelines ...... page 17

Oil and Gas Wells ...... page 20

Hydraulic Fracturing page 26

Recommendations for Follow-up Action . . .page 36

FOIA Summary ...... page 38

4 Introduction

Anglers’ vigilance a must for rivers to thrive while oil & gas industry ages and grows in northern Michigan For many, the to further safeguard mere mention of the Au Sable from a the Au Sable River pipeline mishap. conjures images of The upper half of a sublime stream, the Au Sable River its waters sparsely watershed also may occupied by fly an- become a focal point glers casting toward for the drilling of wily trout. deep shale wells us- The Au Sable ing a controversial River watershed, a technique known as

1,932-square mile The Au Sable River, east of Grayling. Photo by Jeff Alexander hydraulic fracturing, drainage basin that or fracking. supports one of Department of Natural Resources State data indicate that the America’s premier trout streams and Environment. (http://bit.ly/ three counties in the upper wa- and a robust recreational econo- heoIOc) tershed — Otsego, Crawford and my, is not widely known as one of The largest oil pipeline in the Roscommon — sit atop some of Michigan’s major oil and natural Midwest also bisects the heart of the thickest deposits of Colling- gas producing regions. the Au Sable watershed. The 645- wood shale gas in northern Mich- Indeed, it is. mile long Enbridge Energy pipe- igan. (Unconventional Shale line extends from Superior, Wis., Gas Development in Michigan,” The Au Sable River water- to Sarnia, Ontario and carries up by Mel Kiogima, MDNR, June shed sits atop some of Michigan’s to 22 million gallons of crude oil 2010, http://bit.ly/gURoeK) most productive oil and natural and natural gas liquids beneath gas reserves. The lucrative geo- Hydraulic fracturing uses mil- the Au Sable River on a daily logic formations beneath the wa- lions of gallons of water mixed basis. It’s a 58-year-old pipeline tershed — particularly beneath with sand and thousands of gal- owned by the same company that the counties of Otsego, Crawford lons of toxic chemicals to frac- is under intense scrutiny for a July and Roscommon counties — have ture deep shale reserves, a tech- 2010 pipeline break that spewed spurred intense drilling activity nology that allows more natural 843,000 gallons of crude oil into over the past 75 years. gas to seep out of the rock. The the Kalamazoo River near Mar- practice has caused numerous en- More than 4,000 oil and gas shall, Michigan. As this report vironmental problems in the 31 wells have been drilled in the wa- will detail, Enbridge has respond- states where hydraulic fracturing tershed since the 1930s. Today, ed positively to concerns raised of deep shale wells has occurred. there are 2,828 active oil and gas by Anglers of the Au Sable — the (“Broad Scope of EPA’s Fractur- wells in the watershed, according pipeline company has taken nu- ing Study Rises Ire of Gas In- to data provided by the Michigan merous steps in recent months 5 Introduction dustry,” ProPublica, April 2010, The recommendations out- While this report is at times http://bit.ly/bHdOZH) line how Anglers can intensify its blunt, it is NOT designed as an watchdog role while also commu- anti-oil industry manifesto. It is Any deep shale wells drilled nicating more closely with regu- an attempt to quantify the oil and in the Au Sable watershed would lators and industry representa- gas infrastructure in the Au Sable extract millions of gallons of tives — because it is in all parties’ River watershed, document what groundwater from the basin, impact oil and which could gas explora- take from the tion has had river essen- on the region, tial resources. and evaluate And spills of how new types fracking flu- of exploration ids, which have could affect the been common river system. in other states, could pose se- Michigan’s rious threats to oil and gas in- the river and its dustry is an in- tributaries. tegral part of the state econo- This report, my, employing commissioned 10,000 workers by Anglers of statewide and the Au Sable, generating $2 explores the billion in an- many oil and nual revenue, gas develop- according to the ment issues in Michigan Oil northern Michi- and Gas Asso- gan and how ciation. that industry may impact Since 1925, the world-class when the state’s trout rivers the first commer- organization cial oil field has worked for This state of Michigan graphic shows the location was developed of the state’s 14,000 active oil and gas wells. 25 years to pro- in Saginaw, tect. Michigan has produced more This report concludes with than a billion barrels of crude oil 14 recommendations of how An- best environmental and economic and more than four trillion cu- glers of the Au Sable can assure interests to assure the Au Sable bic feet of natural gas. Michigan the rivers continue to thrive as the and Manistee river corridors re- state ranks 17th among 33 oil oil and gas industry both ages and main forever free of major oil and and gas producing states, accord- grows in northern Michigan. gas mishaps. 6 Introduction ing to the Michigan Oil and Gas 50,000 oil and gas wells drilled vironmental regulations at oil and Association. (“The Facts About in the state over the past 85 years gas wells and processing facili- Michigan’s Oil and Gas Indus- have left a trail of pollution that ties. try, Michigan Oil and Gas As- has contaminated soils, ground- The DNRE’s Office of Geo- sociation, http://www.michigan- water or surface waters at hun- logical Survey, which regulates oil oilandgasassociation.org/Info/ dreds of sites in Michigan. and gas exploration in Michigan, MOGA.pdf) gets 77 percent The oil of its funding and natu- from fees the ral gas pro- oil industry duced by pays the state. the 14,000 DNRE officials active wells insisted that in Michigan the oil and gas fuels our ve- industry faces hicles, heats the same scru- our homes tiny as other and helps businesses that keep the handle toxic state econ- materials, but omy hum- critics dis- ming. agree. The oil There is and gas in- also concern dustry also about the dili- has left its gence of fed- mark on This oil well in Otsego County is one of the 309 active oil wells eral agencies in the Au Sable River watershed. Photo by Jeff Alexander Michigan’s charged with environment, ensuring that in more ways than one. oil and natural gas pipelines oper- Oil and gas wells in the Au ate safely. Fees imposed on oil and gas Sable watershed have racked up wells have provided more than more than 1,500 violations of en- The July 2010 pipeline break $550 million for the Michigan vironmental laws over the past that spilled oil into the Kalamazoo Natural Resources Trust Fund. two decades and contaminated River generated skepticism and That money has allowed the state soil and/or groundwater at dozens concern about the federal govern- to acquire or improve more than of sites, according to state records. ment’s oversight of oil and gas 135,000 acres of parks and other pipelines that transport millions State officials said the vast public lands; it has also funded of gallons of hazardous materials majority of oil and gas wells in numerous recreation and tour- across Michigan every day. the watershed operate without ism-related projects, according to harming the environment. But Determining the condition of MOGA. critics question how vigorously oil and gas pipelines is difficult The downside: Some of the the Michigan DNRE enforces en- because large sections of some

7 Introduction - Oil Pipeline pipelines are never inspected and natural gas from Michigan’s por- reason to be concerned about any government agencies are reluctant tion of the Collingwood forma- Collingwood shale wells drilled to share many pipeline inspection tion. in the Au Sable River watershed. and safety records with the public. Only a few Michigan wells Oil and gas exploration has It is against this backdrop had been drilled into the Collin- long played an important role in of lingering concerns about oil gwood shale by the end of 2010 northern Michigan’s economy and gas exploration that a new and none were located in the Au and will continue to provide rev- wave of drilling is poised to stir Sable River watershed. enue and jobs for the foreseeable new controversy across northern future. But with significant Collin- Michigan. gwood shale deposits beneath But with thousands of aging Canadian-based energy giant much of northern Michigan, it oil and gas wells and a major, Encana Corp. set off a frenzy of seems likely that oil and gas com- 58-year-old oil pipeline in the Au activity in 2010 when it revealed panies will eventually drill hy- Sable River watershed — coupled it had successfully produced natu- draulically fractured wells in the with the possibility of new wells ral gas from the Collingwood for- upper half of the Au Sable River being drilled in deeper, harder mation, a layer of gas-rich shale watershed. to reach natural gas reserves — found 10,000 feet underground. there is reason for concern that Because hydraulic fracturing Encana’s successful well in Mis- society’s insatiable need for oil is exempt from most state and fed- saukee County marked the first and natural gas could endanger eral water protection laws, there is time a company had extracted Michigan’s great trout streams.

Midwest’s largest oil pipeline crosses under one of nation’s premier trout streams Near Luzerne, a small post mile long buried pipeline that result in a spill of 1.5 million along Highway M-72 marks bisects the Au Sable River gallons of light crude into the the location of an underground watershed crosses beneath the Au Sable River in eight min- pipeline that carries millions river and its tributaries numer- utes. of gallons of crude oil beneath ous times. Those crossings To avert such disaster, the the Au Sable River watershed include the Main Branch near Anglers of the Au Sable and every day. Luzerne as well as both Big Enbridge have engaged in Creek systems (near Lovells The round white post with open and constructive dialogue and Luzerne), which flow into the orange cap marks the loca- since fall 2010. The Anglers both the North Branch and the tion of a 30-inch diameter pipe view this growing relationship Main Branch of the river. that is part of the world’s larg- as a clear model for coopera- est petroleum pipeline. Owned A rupture in this pipeline tion between the oil and gas by Canada-based Enbridge En- could be devastating for trout industry and the conservation ergy, the underground pipeline and other aquatic life in the Au community in northern Michi- carries an average of 19 mil- Sable River and its tributar- gan. There is no guarantee lion gallons of crude oil and ies. According to federal gov- against environmental mishap, natural gas fluids daily across ernment documents obtained but Enbridge has been very re- northern Michigan. by Anglers of the Au Sable, sponsive to Anglers’ concerns, a worst-case scenario could Known as Line 5, the 645- as explained below. 8 Oil Pipeline Kalamazoo River Spill Alerts Anglers to Pipeline Threats

Line 5 has existed in the Au Sable corridor for 57 years, but it drew little attention before July 2010, when another Enbridge pipeline, known as Line 6B, ruptured near Marshall, Michigan and spilled 843,000 gallons of crude oil into the Kalamazoo River. That spill polluted a 35-mile stretch of the river and Tallmadge Creek. It killed fish, coated more than 2,400 animals with oil, dis- located people who lived near the river and resulted in a cleanup bill which could total $550 million. The Kalamazoo River spill alerted the Anglers of the Au Sable to both Line 5 and a second oil pipeline, owned by Markwest Energy, which flows under the Up- per Manistee River in Deward. Although it is impossible to predict how many trout or other aquatic species might be killed or injured in a hypothetical oil spill on a northern Michigan trout stream, the Kalamazoo River oil spill in July 2010 and studies of other spills provide some insight. The possible worst-case impacts include: • Short-term effects: The combination of oil in the river and bacteria consuming the oil would cause dissolved oxygen levels in the river to plummet, threat- ening fish and other aquatic life. Trout could avoid a massive die-off by swimming to areas not affected by the spill. But many fish would eventually be exposed to oil and its toxic compounds as the pollution spread throughout the river. The fish would consume traces of oil and toxins through their gills and by eating contaminated insects. • Fish health effects: Oil can affect the spawning success of trout because the eggs of trout and other sal- monids are “highly sensitive to oil toxins,” according to the U.S. Fish and Wildlife Service. A study of how an oil spill affected a trout stream in northern Califor- nia concluded that lingering traces of oil in river bot- tom sediments could impair fish reproduction, dam- A sign along M-72, about two miles west of Lu- age immune systems, cause liver lesions and cataracts zerne, marks the spot of Enbridge Energy’s buried and make fish more susceptible to disease. oil pipeline, which bisects the Au Sable River wa- • Long-term effects: Recent research has found that tershed. Photo by John Bebow.

9 Oil Pipeline

tiny amounts of oil kills fish ban on the Au Sable or Manistee lamazoo River oil spill. Here’s eggs and that oil toxins linger- rivers in the wake of an oil spill why: ing in sediment and vegetation could severely hurt the region’s • Line 5 carries nearly twice as can harm aquatic ecosystems economy and cause untold dam- much oil as the pipeline that rup- for decades after a spill oc- age to the river’s reputation as tured near Marshall and polluted curs. (“Exxon Valdez Oil Spill one of America’s premier trout the Kalamazoo. Impacts Lasting Far Lon- streams. ger Than Expected, Scien- • The Au Sable is a cold water sys- Biologists with the Michigan tists Say,” Science News, Dec. tem, which is more ecologically Department of Natural Resourc- 2003) fragile than a warm water sys- es and Environment have said it tem like the Kalamazoo River. • Economic impact: An oil spill could be years before the full ex- would prompt state officials to tent of ecological damage from • Because the Au Sable has a low- ban fishing and boating on the the Kalamazoo River oil spill is er flow rate than the Kalamazoo, affected portion of the river. known. Those same officials said it could take longer to flush oil Fishing and boating was banned it could take several years for the out of its system. on a 35-mile stretch of the Ka- river’s ecosystem to fully recover. • The Au Sable’s famed trout fish- lamazoo River downstream after A break in Line 5 anywhere ery and recreational economy the July 2010 Enbridge oil spill. in the Au Sable River watershed are far more valuable than those That ban was to remain in ef- could dwarf the effects of the Ka- associated with the Kalamazoo fect until further notice. Such a River.

How Oil Pipelines Work in Our River Valleys

Line 5 carries crude oil and west Energy, extends from Man- pipeline has the capacity to carry natural gas fluids from Superior, istee County to the Enbridge pipe- 2.5 million gallons of oil daily. Wis., to Sarnia, Ontario. It is the line in Lewiston. Built in 1973, From 2005 through 2009, the aorta of Enbridge’s Lakehead the Markwest pipeline is com- pipeline carried an average of System, a 1900-mile long pipe- prised of a 100-mile line network that extends from long, 16-inch diam- North Dakota to Sarnia, Ontario. eter pipeline and another 150 miles Line 5 was installed in 1953. of smaller connect- The walls of the pipe are one-half- ing pipes that gather inch thick and it is buried 12 feet oil from more than below the riverbed where it cross- 1,000 wells in Man- es the main river channel of the istee, Crawford and Au Sable. Where it crosses tribu- Otsego counties and taries, the pipe is approximately transport it to the one-quarter-inch thick and buried Enbridge pipeline. approximately four feet below the (Markwest Web site, streambed. A sign marks the location of the Markwest http://bit.ly/gRN- Energy oil pipeline that crosses the upper The other pipeline of concern, bRj) reaches of the Au Sable and Manistee rivers. owned by Denver-based Mark- The Markwest Photo by John Bebow

10 Oil Pipeline OIL & GAS WELLS & PIPELINES in the AuSable ?ñ Gaylord River ?ñ OTSEGO

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0 5 10 F Miles September 2010

This map, based on data provided by state and federal agencies, shows the location of all oil and gas wells and oil and gas pipelines in the Au Sable River watershed. There are 84 miles of oil pipelines and 289 miles of natural gas pipelines in the Au Sable River watershed. There are 2,828 active oil and gas wells in the watershed, according to state data. Oil pipelines are shown in red; natural gas pipelines are shown in green. The green dots are oil and natural gas wells.

573,000 gallons of crude oil daily in pipeline mileage, with 2,810 longest petroleum pipelines, one from wells in northern Michigan miles of oil/hazardous liquids that transports oil from western to the Enbridge pipeline, accord- pipeline and 65,192 miles of natu- Canada to the upper Midwest and ing to company records. (“Mid- ral gas pipelines and distribution Montreal, — crossing the states of west Energy Partners LP Form lines. Minnesota, Wisconsin, Michigan 10-K submitted to the Securi- and the province of Ontario along There are 84 miles of oil pipe- ties and Exchange Commission the way. lines and 289 miles of natural gas in March 2010, www.markwest. pipelines in the Au Sable River Pumping millions of gallons com) watershed. (PHMSA database, ac- of oil across thousands of miles Nationally, there are 2.3 mil- cessible at http://bit.ly/hXQVrZ) of land and many lakes and rivers lion miles of oil and gas pipelines. on a daily basis keeps the region’s Enbridge’s Lakehead Sys- Michigan ranks sixth nationally economy running smoothly. It tem is part of one of the world’s

11 oil PiPeline is also inherently complex and through the federal Freedom of Enbridge offi cials would need sometimes dangerous. Information Act paint a sobering approximately eight minutes to picture of what could happen if isolate a rupture in Line 5 and Pipeline safety records ob- Line 5 ruptured in northern Mich- halt the fl ow of oil in the pipeline, tained by Anglers of the Au Sable igan. according to federal records ob-

This Enbridge Energy map shows the location of pipelines in the company’s Lakehead System, which comprises one of the world’s longest oil pipelines. The Line 5 pipeline that crosses beneath the Au Sable River carries up to 22 million gallons of crude oil daily from Superior, Wis., to Sarnia.

12 Oil Pipeline tained by Anglers results of the 2006 of the Au Sable. inspection because In that short span of the investigation of time, the com- of the Kalamazoo pany estimates a River oil spill. “worst-case dis- Enbridge has charge” of 1.5 not provided de- million gallons of tailed pipeline in- oil into the envi- spection records to ronment. (Mainte- Anglers of the Au nance Procedures, Sable. But com- Emergency Re- pany officials have sponse Book 7,” told Anglers that Enbridge Energy, another detailed January 2010) inspection of Line That’s nearly 5 in 2010 uncov- twice the volume the pipeline was in good condi- ered no significant of oil that spilled into the Kalama- tion, according to federal records. problems in the Au Sable region. zoo River when Line 6B ruptured. Enbridge also conducted a full Additional detailed inspections at Fortunately, there haven’t inspection of Line 5 in 2006. The finding cracks or dents in Line 5 been any major oil spills from federal agency that regulates in- are planned for 2011 and 2012 in Line 5 since it was installed in the terstate petroleum pipelines — the Au Sable region, according to 1950s, according to government the U.S. Department of Transpor- company officials. The company documents. tation’s Petroleum and Hazardous conducts aerial surveillance on Materials Safety Administration Line 5 in northern Michigan 26 A 2002 inspection of Line 5 — has so far refused to provide times a year. by Enbridge officials indicated

Enbridge Issues Elsewhere Raised Concerns

The Kalamazoo River spill U.S. House of Representative’s the Lakehead System prompted and other regulatory issues else- Committee on Transportation PHMSA to take 28 enforcement where in Enbridge’s vast pipeline and Infrastructure. (Hearing on actions against Enbridge (includ- system are what spurred Anglers “Enbridge Marshall, Michigan” ing warning letters and notices) of the Au Sable to inquire about September 2010, http://bit.ly/fW- since 2001, according to federal the safety of Line 5 and seek on- FEDG) records. (Hearing on “Enbridge going dialogue with the company. Pipeline Oil Spill in Marshall, Since 2001 there have been Michigan” September 2010, The federal government docu- 31 oil spills from pipelines in http://bit.ly/fWFEDG) mented 83 incidents on the Lake- Enbridge’s Lakehead System, ac- head system since 2001. Those cording to federal records. Col- • July 4, 2002: A pipeline in incidents ranged from significant lectively, those spills released 1.9 Itasca County, Minnesota oil spills to safety problems that million gallons of oil into envi- spilled 252,000 gallons of increased the risk of additional ronment and caused $22 million crude oil, causing $5.6 million spills, according to a report by the in property damage. Problems in of property damage.

13 Oil Pipeline

• Feb. 27, 2003: A pipeline in $45,750 of property damage. • July 25-26, 2010: A rup- Monroe County, Mi., near To- tured pipeline near Marshall • Feb. 2, 2007: A pipeline leak ledo, spilled 5,460 gallons of dumped 843,000 gallons in Exeland, Wis., spilled crude oil, causing $255,000 of of crude oil into Tallmadge 201,600 gallons of crude oil, property damage. Creek and the Kalamazoo causing $4.5 million of dam- River. Enbridge officials said • Oct. 13, 2003: A pipeline age. the cleanup could cost $550 in Bay County, Mi., spilled • November 2007: Oil and gas million. 21,000 gallons of crude oil, from a ruptured pipeline near causing $120,000 of property • Sept. 9, 2010: A broken pipe- Clearbook, Minn., ignited. damage. line near Chicago spilled Two workers died. The feder- 250,000 gallons of oil, caus- • Jan. 18, 2005: A pipeline in al government fined Enbridge ing an unknown amount of Bay County, Mi., spilled 4,200 $2.4 million. property damage. gallons of crude oil, causing Details of the Kalamazoo River Investigation

According to Congressional three hours prompted the compa- Patrick Daniel apologetic but of- records, before the Kalamazoo ny to shut down the pipeline again fers few details on oil spill at con- River spill, Enbridge responded at 7:46 a.m. gressional hearing,” Kalamazoo to known instances of corrosion Gazette, Sept. 15, 2010) Enbridge employees began or other defects in Line 6B by looking for leaks near the Mar- Daniel told members of Con- repairing some of the problems shall pumping station two hours gress that he could not provide and otherwise reducing pressure later. But it was an employee of specific information about why it in Line 6B to reduce stress on the Consumers Energy, sent out to took Enbridge so long to respond pipe. Federal law allows compa- look for the source of petroleum to the Kalamazoo River oil spill nies to operate damaged pipelines odors in the Marshall area, who because federal agencies were in- at reduced pressure for one year discovered the large oil spill into vestigating the incident. He said before known defects must be re- Tallmadge Creek, according to the company was in compliance paired. (Hearing on “Enbridge federal records. with federal regulations regarding Pipeline Oil Spill in Marshall, pipeline maintenance at the time Michigan” September, 2010, The oil slick was discovered of the spill. http://bit.ly/fWFEDG) 17 hours after Enbridge received the first alarm of a pressure drop “For Enbridge, no spill is ac- Government records showed in Line 6B. More than 800,000 ceptable,” Daniel told the Con- that Enbridge officials working gallons of crude oil had spilled gressional committee. at the company’s control center from the broken pipeline into in Edmonton, Alberta, received Enbridge officials have said Tallmadge Creek and the Kalama- an alarm about an abrupt pressure that the age of its pipelines is not zoo River. drop in Line 6B at Marshall at an issue. They contend the pipe- 5:58 p.m. on July 25, 2010. Testifying in September 2010 lines can last indefinitely if prop- at a Congressional hearing, En- erly maintained. Enbridge officials restarted bridge President and CEO Patrick the pipeline at 4:04 a.m. the next In the wake of the Kalamazoo Daniel apologized for the Kalam- morning, July 26, but a series of River oil spill, Daniel said that azoo River spill. (Enbridge CEO pressure loss alarms over the next some spills were inevitable when 14 Oil Pipeline piping large quantities of oil long Daniel told the Kalamazoo Ga- vigilant.” (Enbridge CEO says distances. zette. “We all wish that we didn’t spills are an inherent risk of oil have to have pipelines. And we all “The value and importance of wish that we didn’t have to expe- pipelines,” Aug. 14, 2010, Ka- energy to society is so critical,” rience accidents. We must remain lamazoo Gazette) Enbridge Responds to Anglers’ Concerns

Anglers of the Au Sable board lowed many of Enbridge’s ized flow of millions of gal- members contacted Enbridge in front-line staffers in Michigan lons of southbound oil in the early fall 2010 and asked for a sit- to appreciate the environmen- event of a pipeline rupture. down meeting to discuss Line 5 tal sensitivity of the Au Sable Likewise, the south side value and to seek assurance that the Ka- corridor. More importantly, it would prevent large amounts lamazoo River mishap would not allowed Enbridge and local of back-flow of oil from go- be repeated in northern Michigan. emergency officials to tighten ing into the river. The new re- their disaster management mote-controlled valve on the Enbridge’s response to our re- plans, agree on precise loca- south side of the river would quest was swift and thorough. tions for the launch of con- replace a hand-crank valve Enbridge CEO Pat Daniel tainment booms in the event that requires a considerable and numerous other safety and of a major spill, and develop amount of time to close. This engineering experts for the com- a number of time-saving pro- voluntary valve upgrade will pany traveled to Gates Lodge in cedures to heighten response cost Enbridge hundreds of October 2010 at Anglers’ request. to any incident. All involved thousands of dollars. The Enbridge officials were able in the January exercise agreed 3) DETAILED CONTACT IN- to see, first-hand, the economic to participate in a “live exer- FORMATION: The first line and environmental value of north- cise” in summer 2011 to put of response in the event of a ern Michigan trout streams. The the disaster training to a test. Line 5 mishap near the Au meeting resulted in very impor- Anglers board members also Sable River includes: tant dialogue and a wide range of are working with Enbridge crucial follow up steps, including: to better understand locations o Luzerne Fire Department where Line 5 crosses tributar- 1) MOCK DISASTER Chief Kelley Smith, 989- ies. EXERCISES: In late-Jan- 826-8304 uary, 2011, more than 30 2) MAJOR PIPELINE IM- o Oscoda County Emergency employees of Enbridge, the PROVEMENTS: Enbridge Management Coordinator Michigan Department of officials confirmed in January Elizabeth Galer, 989-826- Natural Resources and En- that the company plans this 1191. vironment, Oscoda County year to install a major remote- o Enbridge Pipeline Supervi- Emergency Management, and controlled valve on Line 5 on sor Mick Collier, 989-385- the Luzerne Fire Department the south side of the Au Sable 4654 (cell) met at Enbridge’s Bay City River crossing near Luzerne. regional office for a “table A similar valve already ex- o Enbridge Regional Man- top” disaster exercise. Three ists on the north side of the ager Brian Buck, 989-684- Anglers board members also river. The north side valve is 0160, extension 30 (office); participated. The exercise al- designed to stop the pressur- 989-385-4652 (cell) 15 Oil Pipeline

As Enbridge CEO Pat Dan- ture of Line 5 at or near the Au ongoing dialogue provides con- iel readily admits, no matter how Sable is in no one’s interest. En- siderable evidence that the com- unlikely a worst-case spill may bridge answered our call. The pany intends to serve as a positive be, there is no way to absolutely company’s follow-up steps, mock steward in the Au Sable region. guarantee such a nightmare won’t exercises, voluntary investment happen. Obviously, a major rup- in pipeline safety upgrades and

Michigan Spill History & Who’s in Charge?

There have been 64 signifi- lines that carry oil and gas to miles of crude oil pipeline that cant spills from oil and natural gas pipelines. crosses parts of the Au Sable pipelines in Michigan since 2001, and Manistee River water- • The Pipeline and Hazardous not including the 2010 Kalama- sheds. Materials Safety Administra- zoo River oil spill, according to tion, a branch of the U.S. De- Federal law requires compa- PHMSA records. Those incidents partment of Transportation, nies to inspect oil and natural gas caused $23.5 million in property regulates all interstate oil and pipelines every five years, but damage. natural gas pipelines — those only those portions of pipeline lo- There has only been one sig- that flow across more than cated in High Consequence Areas, nificant spill from oil or gas pipe- one state. The agency focuses such as the section of Enbridge lines or associated equipment in its regulatory efforts on those pipeline that crosses the Au Sable the Au Sable River watershed portions of intrastate pipelines River. Enbridge inspects all of its since 2001, according to federal that lie within High Conse- pipelines every five years, but the data. quence Areas — environmen- majority of oil pipelines in the tally sensitive or highly popu- U.S. are not inspected every five A leak at a Markwest Energy lated areas. years, according to industry ob- oil tank near Lewiston in January servers. 2004 spilled 19,992 gallons of oil • PHMSA contracts with most into a containment area, causing states for oversight of intra- PHMSA, the federal agency $173,890 of property damage. state natural gas pipelines. charged with monitoring oil and The spill was contained on site In Michigan, the state Public natural gas pipelines nationwide, and never reached the ground, ac- Service Commission oversees has 110 inspectors to keep tabs cording to federal records. 65,192 miles of natural gas on 2.3 million miles of pipelines. pipelines; the agency has six (“Spills Raise Fears about inspec- Federal authorities did not inspectors. tion of pipelines,” Sept. 26, 2010, cite Markwest for any violations Detroit Free Press and “State, following that incident. • Intrastate oil pipelines – those feds don’t inspect pipelines,” Aug. that flow within the bound- The regulatory system that 22, 2010, Kalamazoo Gazette) aries of a single state — are oversees oil, gasoline and natu- largely unregulated by PHM- The paucity of pipeline in- ral gas pipelines in Michigan is a SA. No state agency regu- spectors and lack of regulatory mix of state and federal agencies. lates intrastate oil pipelines oversight for intrastate oil pipe- Here’s the breakdown: in Michigan. PHMSA, for lines could have implications for • The Michigan DNRE regu- instance, only enforces safety the Au Sable and Manistee rivers. lates oil and gas wells, pro- standards on a small portion The reason: The federal gov- cessing facilities and flow of Markwest Energy’s 250 ernment regulates just five miles 16 Oil Pipeline - Natural Gas of Markwest Energy’s 250 miles line that is located in a so-called five miles of the Markwest pipe- of crude oil pipelines that cross High Consequence Area, said line falls within the High Con- Manistee, Otsego and Crawford Bryan Louque, an accident in- sequence Area. Federal officials counties. That pipeline carries vestigator for PHMSA. The other said they do not release maps of 570,000 gallons of oil per day on 245 miles of pipeline are not sub- High Consequence Areas because average, according to company ject to the government’s toughest they fear terrorists could use that records. environmental standards. information to guide an attack on oil and natural gas pipelines. PHMSA only regulates the Company and federal offi- five miles of the Markwest pipe- cials would not disclose which

Safety of natural gas pipelines Shrouded in bureaucratic secrecy One of the most com- much of the Lower Pen- mon signs along rural insula along the way. Michigan roads is the flat, There are several yellow post that marks other natural gas pipe- the location of buried nat- lines that cross the Au ural gas pipelines. Sable River or its tribu- In some areas, the taries. The pipelines markers that resemble span parts of every coun- a stubby version of the ty in the watershed but gray steel posts that sup- most are located in the port stop signs are more west and east ends of the common than road signs. watershed. The pipeline markers There are no natural are common because nat- gas pipelines in the heart ural gas pipelines criss- of the watershed. In fact, cross much of the state, much of the watershed delivering energy that is devoid of natural gas provides heat in the win- A sign in Otsego County warns pipelines. (See map) ter and electricity year- of a buried natural gas pipeline. The absence of natu- round. Photo by Jeff Alexander ral gas pipelines in the There are 65,192 middle of the watershed miles of natural gas pipe- its tributaries at several locations. provides a measure of lines in Michigan, a figure that in- The largest natural gas pipe- safety that government regula- cludes transmission, distribution line is an interstate pipeline that tions cannot. and collection lines. There are runs along I-75. Owned by Great Natural gas pipelines are es- 289 miles of natural gas pipeline Lakes Gas Transmission, it ex- sential elements of a modern so- in the Au Sable River watershed; tends from Wisconsin to Detroit, ciety, but their presence provides those pipelines cross the river and crossing the Upper Peninsula and potential for considerable and 17 Natural Gas costly mishaps. hJVJ66) Those incidents caused cording to state data. (http://bit.ly/ one death, two injuries and $9.3 epwsKb) The September 2010 natural million in property damage. gas pipeline explosion that killed Corrosion, improper welds six and incinerated a neighbor- During that same period, there and careless excavation caused hood in San Bruno, Calif., was a were 36 significant incidents in- most of the significant incidents at powerful reminder of what can volving natural gas distribution natural gas pipelines in Michigan happen when pipelines aren’t lines in Michigan — the smaller over the past decade, according to properly maintained. pipes that carry gas to homes and state records. businesses. Those incidents killed In northern Michigan, emer- None of the significant in- 3 people, injured 22 and caused gency management officials have cidents at natural gas pipelines $9.4 million in property damage, told Anglers that one of their big- occurred in the Au Sable River according to state records (acces- gest pipeline concerns would be watershed; most occurred in the sible at http://bit.ly/fIVn10) the ignition of a natural gas leak Detroit area, according to state re- resulting in a ma- cords. jor forest fire. This Michi- Nationally, gan Public Ser- natural gas pipe- vice Commission line accidents map shows the lo- have killed 35 cation of all natu- people and injured ral gas pipelines 182 others since in Michigan. 1990, according to Although government data natural gas pipe- (http://bit.ly/egg- lines span three voi). Those inci- times more area dents caused $1.1 than oil pipelines billion of property in the Au Sable damage. River watershed, In 2006, a con- experts said oil tractor digging pipelines present with a backhoe a far more serious near Lansing rup- environmental tured a natural gas threat to the river. pipeline, igniting a If a natural fireball that killed Between 2001 and 2009, the gas pipeline exploded near the one person and caused $1.5 mil- Michigan Public Service Com- river or one of its tributaries, the lion in property damage. mission initiated 118 enforcement shockwave could kill large num- There were 12 significant actions for probable safety viola- bers of fish. incidents involving natural gas tions at natural gas pipelines. The A massive natural gas leak pipelines in Michigan between state assessed $76,000 in fines for in the river system could cause 2000 and 2009, according to state those violations, but has not lev- oxygen depletion, as bacteria data (accessible at http://bit.ly/ ied a single fine since 2003, ac-

18 Natural Gas consumed methane and the other serves. The Michigan PSC regulates compounds in natural gas. The re- the MichCon natural gas pipelines Determining the age, condi- sulting decrease in dissolved oxy- located in the watershed, accord- tion and compliance record of gen could cause fish kills. ing to John King, manager of gas natural gas pipelines in the Au Sa- operations for the Michigan Pub- However, because natural ble River is a daunting task. State lic Service Commission. gas is so volatile, it breaks down and federal agencies share over- quickly in air or water, according sight of natural gas pipelines and Most natural gas pipelines to Thomas Rohrer, director of the some of those agencies go to great in the Au Sable River watershed Great Lakes Institute for Sustain- lengths to prevent public access to were built prior to 1980; many able Systems at Central Michigan inspection reports. were built in the 1960s, King said. University. Rohrer was head of The federal government’s King, who has worked for the surface water quality enforcement Pipeline and Hazardous Materi- PSC since 1974, said he could not for the Michigan Department of als Safety Administration (PHM- recall any major problems with Environmental Quality in the SA) regulates interstate natural natural gas pipelines in the water- 1990s. gas pipelines but contracts with shed. The volume of natural gas en- many states to handle inspections Some observers question tering an aquatic system would and other regulatory duties for whether Michigan has enough determine whether a spill caused intrastate pipelines. In Michigan, inspectors to effectively oversee widespread damage, Rohrer said. the Public Service Commission natural gas pipelines. The state regulates intrastate natural gas In general, oil spills are con- has just six inspectors to oversee pipelines on behalf of the federal sidered a more serious environ- thousands of miles of natural gas government. mental threat to rivers because oil pipelines. does not quickly dissipate; natural PHMSA regulates the two in- A Kalamazoo Gazette reporter gas does. terstate natural gas pipelines in asked King in August 2010 if all the Au Sable River watershed, There have been few docu- natural gas pipelines in the state those owned by Great Lakes Gas mented cases of natural gas leaks were in compliance with safety Transmission and ANR Pipeline causing large fish kills or other standards. His response: “Sure.” Co. widespread damage in aquatic (“State, feds don’t inspect pipe- ecosystems. Some lines,” Aug. 22, 2010, of the most dramat- Kalamazoo Gazette) ic examples have It was impossible been linked to the to independently con- BP oil spill in the firm King’s claim Gulf of Mexico in without spending 2010 and methane thousands of dollars releases from poor- for the right to review ly designed drill- public documents. ing rigs that used hydraulic fractur- The state files its ing techniques to pipeline inspection re- extract natural gas ports by inspector, not Natural gas pipelines, like this one in Otsego County, from deep shale re- crisscross northern Michigan. Photo by Jeff Alexander by pipeline, according

19 Natural Gas - Oil & Gas Wells to King. The result: A byzantine the Public Service Commission pipelines in the Au Sable River record keeping system that makes to review state records that doc- watershed. The MPSC said the it difficult and cost prohibitive for umented the age, condition and agency could provide those docu- the public to easily assess the con- compliance history of natural gas ments, but it would cost $889 to dition of any given pipeline. pipelines located in the Au Sable locate and copy the records. River watershed. Determining the condition or The Anglers plan to soon pay safety record of a single pipeline The MPSC said it would cost that fee and review the docu- would require reviewing multiple $13,777 to provide the requested ments because of the importance reports from multiple inspectors, documents. That fee included of transparent access to regulato- King said. $12,812 to copy 51,000 pages of ry files compiled and maintained documents, $764 in labor costs with public tax dollars. Without “We have tens of thousands and $200 for mailing. clear access to those records, of inspection records but they’re there is no way for the public to not easily accessible,” King said. The Anglers verbally protest- determine whether the pipelines “We’re trying to develop a better ed the fee, to no avail. that carry natural gas across the system of record keeping.” The Anglers then submitted Au Sable watershed are in com- In September 2010, Anglers a narrower FOIA request, seek- pliance with safety standards and of the Au Sable filed a Freedom ing only to review inspection and environmental protection laws. of Information Act request with compliance files for MichCon’s

Oil and gas wells, and environmental problems, are common in Au Sable watershed The pale green oil well an- Beneath the surface is a dif- of the Geraldine 3-35 have been chored to land that abuts the ferent story. working since 1994 to clean up a North Branch of the Au Sable plume of contaminated ground- The Geraldine 3-35 has poi- River — across the road from the water that at one time spanned soned a vast quantity of ground- tony Mountain Lake Golf Club part of the headwaters of the Au water beneath its drilling rig, south of Gaylord — is a study in Sable’s North Branch. That clean- creating a costly problem that contrasts. up is still ongoing. has repeatedly violated state en- On the surface, the well vironmental laws and periodi- A state geologist summarized known as Geraldine 3-35 appears cally harmed the waters of the Au the severity of the problem in a relatively benign. There are no Sable River’s North Branch over 1994 email, which Anglers of the foul odors or oil spewing from the the past two decades, according Au Sable obtained through the well and a lush thicket provides a to state records. A plume of con- Michigan Freedom of Informa- visually pleasing backdrop for a taminated groundwater beneath tion Act. large, green pump that resembles the site is still spreading to the “They’ve found benzene in a giant grasshopper. south and east, toward the North the (ground) water across the river Branch. The problem is that the well’s at 38-feet. Mega-bummer,” said industrial beauty is skin deep. Current and previous owners DNRE geologist Andrea Sullivan

20 Oil & Gas Wells in an email to her supervisor. “It tem has dramatically reduced pol- An earlier investigation said is going to be a bigger and more lution levels in the groundwater, the close proximity of the riv- costly cleanup than they thought. but elevated concentrations of er was drawing contaminated I think there’s a heck of lot more toxic and cancer-causing BTEX groundwater deep into an aquifer to find than they anticipated.” compounds found in petroleum that feeds the Au Sable’s North — benzene, toluene, xylene and Branch. Three different oil companies ethylbenzene — were still present — Amoco, Shell Exploration Co. “The Au Sable provides a po- in 2010 in some monitoring wells and Merit Energy — have owned tential sink or avenue for BTEX near the North Branch, according the well since 1994 and none have (oil toxins) movement off site,” to state records. been able to completely clean according to a 1998 report pre- groundwater that was polluted by Without conducting any sam- pared for Shell, the well’s previ- leaky oil tanks, according to state pling in the river, the consulting ous owner. records. firm that wrote the 2010 report The Geraldine 3-35 is located concluded the concentration Over the past 16 years, a just 100 feet from the headwaters of toxic chemicals entering the cleanup system has treated 57 of the North Branch. It is an ob- North Branch via the contaminat- million gallons of contaminated ject lesson in the threats inherent ed groundwater was likely within groundwater extracted from be- in drilling oil and gas wells near state limits. neath the site. The treatment sys- surface waters.

The Geraldine 3-35 oil well south of Gaylord is one of the most polluted oil wells in the Au Sable River watershed. Leaky oil tanks polluted the site. Those tanks were removed and 4,500 cubic yards of contaminated soil was excavated. A large plume of contaminated groundwater remains. Photo by Jeff Alexander

21 Oil & Gas Wells

This satellite image of the Geraldine 3-35 oil well (large white area in middle of image) shows its close proximity to the North Branch of the Au Sable River. Image courtesy of Google maps. The Context of Oil & Gas Well Dangers The Geraldine 3-35 is one of water quality and threaten the lead, arsenic and radium — com- 2,828 active oil and natural gas health of fish and other aquatic pounds that can cause everything wells in the Au Sable River wa- life in the Au Sable River system. from brain damage to cancer, ac- tershed, according to state data. cording to a 2006 oil industry Oil and brine, the saltwater There are 2,519 natural gas wells study. that comes to the surface with oil and 309 oil wells. and natural gas, contain a variety “Chloride and other brine con- Only a fraction of oil and gas of toxins that can injure humans, stituents are known to be toxic to wells in the watershed are located fish, insects and other aquatic life. aquatic organisms and plant life, near the main branches of the Au including wetland and aquatic Crude oil contains numerous Sable River. But many of the oil plants,” environmental consul- toxins, some of which can cause and gas wells, including some tant Christopher Grobbel said in cancer and a variety of other with recent pollution problems, a 2008 report about oil and gas health problems for humans and are near headwater streams that exploration in the region. (Chris- wildlife. give rise to the Au Sable and its topher Grobbel Report to Lake tremendous fishery. Brine produced by oil and gas Louise Christian Community, wells in the region often contains November 2008) An oil or brine leak into a high levels of chloride along with headwaters stream could harm Oil pipelines, because of the 22 Oil & Gas Wells sheer volume of oil they carry, Think of the situation this late into a potentially dangerous pose a far greater ecological way: An oil spill from a broken case of pneumonia. threat to the Au Sable River than pipeline could be the ecological The ecological heart attack oil wells, gas wells or natural gas equivalent of a massive heart at- must be avoided at all cost. An pipelines. A rupture in oil pipe- tack for the river. Sporadic, less ecological cold also should be lines could cause catastrophic severe pollution at oil and gas avoided if possible, because re- damage to the river system, ac- wells in the watershed is more peated bouts could weaken the cording to geologists familiar like a periodic cold that, under the river’s health over time. with the region. right circumstances, could esca-

There are 2,519 active natural gas wells and 309 active oil wells in the Au Sable River watershed. Oil wells are denoted with red dots; natural gas wells are in green. The map is based on data provided by the Michigan Department of Natural Resources and Environment.

State officials said the vast environment. said Rick Henderson, the Gaylord majority of wells in the Au Sable district supervisor for the Depart- “When you look at the total River basin extract oil and natural ment of Natural Resources and number of wells we have in this gas from underground geologic Environment’s Office of Geologic area and the number of spills, we formations without harming the Survey. Henderson’s district cov- have pretty good compliance,” 23 Oil & Gas Wells ers most of the Au Sable River drilling equipment leaking oil or well polluting soils and ground- watershed. brine on the ground, well blow- water in the Au Sable River wa- outs and vegetation that posed tershed. But it is not the only one. Henderson said rules govern- a fire hazard because it was too ing how oil and gas producers op- Over the past two years, state close to an oil or gas well, accord- erate and deal with pollution have officials have issued dozens of ing to state records. been strengthened over the past violations to Houston-based Bre- two decades. Over the past two decades, itBurn Energy for leaky wells that state inspectors logged nearly contaminated soils. Yet government records that 3,000 incidents of oil and brine Anglers of the Au Sable obtained BreitBurn’s 2009 annual re- leaks contaminating soils in Ot- through the Freedom of Infor- port characterized environmental sego, Crawford, Oscoda and mation Act showed that soil pol- problems at its facilities across Roscommon counties. State data lution is a recurrent problem at the U.S. as minor in scope. indicated that most of the leaks several oil and gas wells and asso- and spills were small. “We believe that we are in ciated facilities in the watershed. substantial compliance with all Oil and brine contamination that But it is important to remem- existing environmental laws and seeps into soils and contaminates ber that even small spills of oil regulations applicable to our cur- groundwater could ultimately or brine, if not remedied quickly, rent operations and that our con- threaten water quality and aquatic could pollute groundwater — the tinued compliance with existing life in the river. lifeblood of the Au Sable and oth- requirements will not have a ma- er coldwater rivers. Violations of environmental terial adverse impact on our finan- laws are also common at oil and It doesn’t take a large oil spill cial condition and results of oper- gas wells in the watershed. to cause significant water pollu- ations,” the company said in the tion. One gallon of crude oil can annual report. “For instance, we Between 1990 and 2010, pollute one million gallons of did not incur any material capital DNRE officials recorded more water, according to the U.S. Envi- expenditures for remediation or than 1,500 violations at oil and ronmental Protection Agency. pollution control activities for the gas wells and processing facilities year ended December 31, 2009.” in the watershed. Those violations The Geraldine 3-35 may be a included such things as pipes and dramatic example of an oil or gas

Recurring Problems

Oil-soaked and brine-stained ey Creek flows into the South saw oil-stained soils. soils are a recurring problem at Branch of the Au Sable. Henderson said new rules ad- oil and gas wells in the Au Sable The state ordered a soil clean- opted over the past two decades, River watershed, according to up at the site and the company which required companies to in- state records. complied. stall secondary containment pits In March 2010, for instance, around oil and gas wells and pres- In May 2010, oil leaks con- state officials found an oil well sure test flow lines, have signifi- taminated soils at a well near near Hickey Creek leaking at cantly reduced soil and water pol- Kolke Creek, prompting crews to the wellhead, on pivot arms, on lution at oil wells and processing excavate five feet of soil around the pumping rig and from three facilities. storage tanks at the site. The 55-gallons drum at the site. Hick- crews dug until they no longer But state records showed that 24 Oil & Gas Wells numerous oil wells still lack sec- hardly at all when compared to testing and evaluation before any ondary containment, even though the hoops that a gas station owner recovery is initiated.” it has been required since the has to jump through just to stay in But there is a difference in 1980s and is one of the best ways business,” Girard said. how the Office of Geological to limit damage from oil or brine Fitch disputed claims that his Survey and other branches of the spills. office is somehow beholden to DNRE handle pollution cleanups. The Office of Geological Sur- the oil industry or that oil and gas Instead of using the state’s vey, a branch of the Michigan drillers are held to less stringent toughest cleanup regulations, the Department of Natural Resources cleanup standards than other in- Office of Geological Survey often and Environment, regulates oil dustries. He said: uses the less-stringent Supervi- and gas exploration in the state. sor of Wells Act to guide cleanup The OGS is largely funded by the “Oil and gas operators are activities at polluted oil and gas industry it regulates. held to the same cleanup standards as any other operation. However, wells, according to environmental In fiscal 2010, 77 percent of the oversight and first response consultant Christopher Grobbel, the Office of Geological Survey procedures for oil and gas opera- who worked for what is now the budget came from fees levied on tions may differ in some respects: DNRE for seven years. oil and natural gas producers, said Staff of the Office of Geological Hal Fitch, chief of the Office of “Perhaps more astonishing, Survey (OGS) conduct regular in- Geological Survey. remedial activities overseen by spections of drilling and produc- the Office of Geological Survey Andy Girard, an independent tion operations and often identify are generally guided by visual geologist and environmental con- potential problems at an early evidence of contamination, ver- sultant, said the DNRE’s over- stage rather than just responding sus reliance on discrete soil and/ sight of pollution and cleanups at to complaints or after-the-fact re- or groundwater samples collected oil and gas wells is less stringent ports; when a spill occurs, OGS in accordance with MDNRE/U.S. than it is at factories, gas stations requires immediate recovery of EPA methods, transported under and hundreds of other types of impacted soils, followed by sam- chain of custody and analyzed by businesses in the state. pling and additional remediation a MDNRE-licensed laboratory,” “The oil industry isn’t policed as needed, rather than requiring Grobbel said in a 2008 report.

When Pollution Problems Linger

Even though it is one of the natural gas extraction. Petroleum of that. most polluted wells in the Au refining is responsible for one Fitch said the DNRE has a Sable River watershed, the Geral- pollution site in the watershed, in separate system of ranking con- dine 3-35 well near Gaylord isn’t Roscommon County, and just 35 listed on the state’s inventory of contamination sites statewide, ac- tamination sites caused by oil and known pollution sites (http:// cording to state data. gas operations. www.deq.state.mi.us/part201). The DNRE’s own records The Office of Geological Sur- According to the current Part show that the state’s inventory of vey also gives oil and gas compa- 201 list, there are no pollution pollution sites is inaccurate. The nies a chance to clean up polluted sites in the Au Sable River wa- absence of the Geraldine 3-35 sites before placing them on the tershed that resulted from oil or well on the Part 201 list is proof state’s list of contamination sites. 25 Oil & Gas Wells - Hydraulic Fracturing “We do not post a site on the istration and the Legislature abol- then discharge it into Kolke Creek Part 201 List of Contaminated ished the list of pollution sites and sparked a lawsuit by Anglers of Sites unless the responsible party relaxed cleanup standards. The the Au Sable. is not undertaking reasonable vol- result: The number of pollution The Anglers objected to Merit untary cleanup efforts or it other- sites in Michigan decreased dra- discharging up to 1.5 million gal- wise appears likely that the DNRE matically. lons of treated groundwater daily may have to undertake cleanup Grobbel said groundwa- into Kolke Creek, which ultimate- actions directly,” Fitch said. ter poisoned by Merit Energy’s ly flows into the mainstream of In the mid-1990s the admin- Hayes 22 central production facil- the Au Sable River. istration of former Gov. John ity in Otsego County was a clas- That lawsuit challenged the Engler abolished the state’s com- sic example of a serious pollution right of oil companies to use the prehensive inventory of pollution problem that lingered too long. headwaters of Michigan’s lakes sites. “That plume of contaminat- and streams as dumping grounds At the time, the state’s inven- ed groundwater had been there for treated wastewater. tory of pollution sites included for 20 years,” Grobbel said. The The Kolke Creek case was nearly 2,000 contaminated oil and state’s approval of Merit Energy’s also a poignant reminder of the gas wells and associated facili- plan to pipe treated groundwa- long-term impacts and costs — to ties. That figure dropped to less ter from its production facility, all parties involved — of pollu- than 200 after the Engler Admin- across 1.3 miles of state land and tion that isn’t quickly cleaned up.

Pursuit of riches in Untapped gas reserves sparks concern about water losses, pollution At a five-acre clearing in Drilled in 2010 by a the Pere Marquette State Forest, subsidiary of Canadian about 10 miles north of Lake City, energy giant Encana the oil and gas industry’s version Corp., the Pioneer well of a Christmas tree stands guard unleashed a modern day over a geologic treasure buried gold rush in Michigan. nearly two miles underground. It has become a symbol of newfound economic The so-called Christmas tree prosperity and potential is a stack of metal pipes, valves environmental prob- and gauges that rises several feet lems. above the ground. It sits atop the first well in Michigan to success- News that the Pio- fully tap natural gas in the Collin- neer well hit pay dirt in gwood shale, a 40-foot-thick the previously untapped horizontal vein of rock that spans Collingwood formation A so-called Christmas tree sits atop the Pioneer much of northern lower Michigan sparked a frenzy of in- well in Missaukee County. The collection of valves — including the upper half of the terest that resulted in a will remain in place until well owner Encana Corp. begins extracting the well’s bounty of deep Au Sable River watershed. record-breaking mineral shale gas. Photo by Circle of Blue Water News rights auction. 26 Hydraulic Fracturing

This aerial photo shows the Pioneer gas well in Missaukee County during a flare test in 2009. It was the first well in Michigan to successfully tap the Collingwood shale gas formation. The lined pits adjacent to the well stored clean water that was mixed on-site with fracking chemicals and then injected into the well. Dirty water that returned to the surface was stored in metal tanks before being hauled to deep disposal wells off-site. Photo courtesy of Michigan Department of Natural Resources and Environment

In May 2010, oil and gas com- The exact opposite may have The new October wave of panies paid $178 million for state- been true for the Au Sable River leases in the watershed is one of owned minerals beneath 120,000 watershed. many reasons that Anglers of the acres of land spread across 20 Au Sable and other groups dedi- The October 2010 auction counties in northern Michigan. cated to protecting this magnifi- marked Encana Corp.’s foray into That sum nearly equaled the $190 cent river must remain vigilant. the Au Sable River watershed. million that oil and gas compa- The Pioneer well has fueled nies had paid over the previous Encana is a Canadian-based speculation that Michigan could 81 years for the right to drill for energy giant and one of the lead- be a major new player in a barrage state-owned oil and gas. ing drillers of deep shale gas in of controversial shale gas drilling North America. The company’s A subsequent mineral lease that has swept across 31 states. willingness to spend $1 million auction in October 2010 netted That could have significant im- for the right to extract oil and gas just $10 million. Drillers didn’t plications for the Au Sable River from 33,417 acres of state-owned bother to bid on nearly half of the watershed, for two reasons: minerals near Grayling likely was minerals that were up for grabs. an indication that the upper Au • The headwaters region of the Some observers claimed the tepid Sable River watershed will re- Au Sable and Manistee riv- response was a sign that the race main a hotbed of oil and gas in- ers — in Otsego, Crawford to drill for shale gas in the Collin- terest and exploration for the fore- and Roscommon counties — gwood formation had run out of seeable future. sit atop what are believed to steam. 27 hydrauliC FraCturinG

OILSHALEGAS.COM

These maps produced by the Michigan Department of Natural Resources and Environment show areas of northern Michigan believed to have the largest deposits of Collingwood shale gas. The map at right indicates that Otsego, Crawford and Roscommon counties — all of which lie in the upper Au Sable River watershed — sit atop the thickest deposits.

Hydraulic Fracturing

This diagram shows how hydraulically fracturing a well — by injecting a blend of water, chemicals and sand under high pressure — fractures the shale, allowing natural gas to rise to the surface.

29 Hydraulic Fracturing

be large deposits of Colling- County. Much of the area where To hydraulically fracture a wood shale gas, according to Bayside leased minerals lies in well, drillers inject millions of state data. the southwest portion of the Au gallons of water mixed with sand Sable River watershed, according and thousands of gallons of toxic • The drilling of hydraulically to DNRE data. chemicals into the well under ex- fractured wells could height- tremely high pressure. The pro- en environmental threats to Leasing mineral rights gives cess creates tiny fractures in the the Au Sable River. New companies the right to extract oil shale, releasing natural gas from wells drilled into the Colling- and natural gas from state-owned the rock. wood shale formation would reserves. The October 2010 min- require large groundwater erals auction didn’t guarantee that State officials said hydraulic withdrawals in the watershed Encana or Bayside would use hy- fracturing is safe and effective. and the use of toxic chemicals draulically fractured wells to pur- “Hydraulic fracturing … is in fracking fluids would in- sue deep shale gas in Roscommon an exceedingly common, effec- crease the risk of surface and or Crawford counties — but it did tive and well regulated process in groundwater contamination. increase the likelihood of those Michigan,” said Tom Wellman, The fracking of deep shale types of gas wells being drilled in mineral and land manager with wells has polluted groundwa- the Au Sable River watershed at the Forest Management Division ter, surface waters and drink- some point in the future. of the Michigan DNRE, in an e- ing water wells in several Fewer than 10 drills had been mail to Anglers of the Au Sable. states. drilled into the Collingwood for- “The regulatory requirements and At the October 2010 auction mation by the end of 2010 and geological conditions in Michi- Encana paid $1 million to lease none were in the Au Sable River gan ensure that hydraulic fractur- 33,417 acres of state-owned min- watershed, according to state re- ing continues to be done safely.” erals in Crawford County, accord- cords. But an incident in February ing to government records. Most But oil companies have al- 2011 showed that Michigan is not of the leased minerals lie below ready leased 300,000 acres of immune to the risks associated two large swaths of land: One is state-owned minerals in northern with the practice of hydraulically southwest of Frederic, in Freder- Michigan. fracturing deep shale wells. ic Township; the other is located southeast of Grayling, in Grayling Encana, which drilled the Pi- The DNRE shut down opera- Township. oneer well, spent two years and tions at a well in Benzie County’s $37 million acquiring the rights Joyfield Township after a deep The mineral leases Encana ac- to drill for Collingwood shale shale well sprung a leak at the quired in Frederic Township are gas beneath natural gas leases on surface. State officials said the located on both sides of the Au 250,000 acres of land in northern spill, caused by a faulty well cas- Sable and Manistee Rivers and Michigan. ing, dumped a mixture of water adjoin both rivers. The leases in and fracking chemicals on a small Grayling Township are largely The prospect of companies area around the wellhead. south of M-72 but also surround sinking more wells has many Wakeley Lake and Wakeley people asking whether Michigan That spill marked the first Creek, according to state records. can reap the financial benefits of time a hydraulically fractured gas deep shale gas extraction, using well had leaked in Michigan, ac- Another firm, Midland-based a controversial technique called cording to state officials. Bayside Energy, paid $1.6 mil- hydraulic fracturing, without se- lion to lease 33,399 acres of Critics contend the practice, verely compromising treasured state owned minerals south of St. which has caused numerous pol- natural resources. Helen, in eastern Roscommon lution problems in other states but

30 Hydraulic Fracturing is exempt from most water protec- • Encana, which has leased woman Wendy Wiedenbeck told tion laws, should be more tightly thousands of acres of state- The Times-Leader newspaper in regulated. owned minerals near Gray- Wilkes-Barre, Pa. “Since then, ling, has paid $1.5 million in we’ve drilled hundreds of wells “Even if industry does every- fines over the past four years in Colorado without incident. But thing right and there aren’t any for violating environmental (the Divide Creek incident) is part spills of fracking fluids, these laws in Colorado, Pennsylva- of the reason why we’re taking a wells are still going to leave a big nia and other states besides very thoughtful and measured ap- footprint near some of the best Michigan, according to com- proach to our operations in Lu- hunting and fishing areas,” said pany data provided to The zerne County, (Pa.)” Elizabeth Maclin, a vice president Times Leader newspaper in at Trout Unlimited who monitors Several states have tightened Wilkes-Barre, Pa. (“Compa- the fracking controversy. “Trans- regulations on hydraulic fractured ny defends its environmental portation is also a big concern — wells and the U.S. Environmen- record: EnCana’s hydraulic there have been a lot of accidents tal Protection Agency in 2010 fracturing has never impacted to date.” launched a national study to deter- a water well, spokeswoman mine whether hydraulically frac- An investigation by the non- says,” The Times Leader, Wil- turing is safe. That study, slated profit news organization Pro- kes-Barre, Pa., May 2010) for release in 2011, was a follow Publica documented more than Encana was fined 57 times be- up to a 2004 EPA study that said 1,000 problems at hydraulically tween 2006 and 2009, according hydraulic fracturing didn’t threat- fractured deep shale gas wells to Encana officials. en nearby groundwater supplies. in states other than Michigan. Among the problems: The Colorado Oil & Gas Con- “The 2004 report was used servation Commission fined En- by the Bush administration and • Cracked well casings have cana a record $371,000 after one Congress to justify legislation allowed methane gas to con- of the company’s hydraulically exempting hydraulic fracturing taminate groundwater and fractured gas wells, which was from oversight under the Safe residential water wells; sealed improperly, leaked a can- Drinking Water Act,” according • Spills of fracking fluids have cer-causing chemical into a creek to ProPublica. “The exemption poisoned streams and killed in 2004. came to be known in some quar- animals that drank the toxic ters as the ‘Halliburton loophole’ Encana officials said the com- brew; and has inhibited federal regula- pany’s gas wells have never pol- tors ever since.” • Methane gas has traveled long luted a drinking water well. They distances through the frac- said the 2004 incident in Colo- Halliburton is one of the lead- tured rock. In one case, leak- rado was the result of a mistake. ing producers of fracking fluids. ing methane triggered an ex- (“Company defends its environ- The company’s former CEO, plosion that leveled a house in mental record: EnCana’s hydrau- Dick Cheney, was vice president Ohio. lic fracturing has never impacted when President Bush and Con- a water well, spokeswoman says,” gress made fracking exempt from • In September 2009, 8,000 gal- The Times Leader, Wilkes-Barre, the Safe Drinking Water Act. lons of fracking fluid spilled Pa., May 2010) at a well in Dimock, Pa. The As part of its study, the EPA chemical-laced water drained “We made a mistake. We asked several companies to dis- into a nearby stream, causing moved too fast. But we worked close the chemicals in fracking a minor fish kill. Most of the with the commission to modify fluids. Most did. dead fish were minnows; no and improve the cementing proce- Corporate records showed trout were affected. dure in Colorado,” Encana spokes- that fracking fluids contain doz- 31 Hydraulic Fracturing ens of toxic chemicals, including State officials said hydrauli- been caused by hydraulic fractur- hydrochloric acid and other acids, cally fracturing gas wells is safer ing, in Michigan there are several ethylene glycol and alcohol, to here because the state has tougher circumstances to make this very name just a few. Fracking fluids regulations on well casings. Well- unlikely,” Wellman said. can also contain benzene, a hu- man said Michigan’s geology is Most groundwater in Michi- man carcinogen, and deep shale also better suited to hydraulic gan is found far above where com- wells can bring naturally occur- fracturing because there is a much panies would tap deep shale gas ring radioactive materials to the thicker layer of rock between the reserves, Wellman said. That de- surface. Collingwood shale and aquifers creases the risk of a troubled well that provide the water for lakes, In Michigan, drillers must leaking fracking fluids or natural streams and drinking water. store fracking fluids in sealed gas into groundwater aquifers that tanks before the wastewater is “While I can’t dispute that feed lakes and streams and are trucked to a deep well disposal some of the reported cases (of commonly tapped for drinking facility. water pollution in other states) water wells. circulated in the media could have New Use For Old Technology Sparks Debate

Fracking isn’t a new technol- Fracking deeper wells re- the surface and was hauled away. ogy — drillers have hydraulic quires using more water and more Most water used to fracture fractured tens of thousands of oil chemicals, some of which are ca- deep shale wells is trucked in and natural gas wells in Michigan pable of causing cancer and other from sources off-site of the drill- and elsewhere. health problems in humans. ing operation. The result is a loss What’s new, and controver- Conservation groups fear of water from aquifers or surface sial, is the use of hydraulic frac- the loss of millions of gallons of waters that are tapped for fracking turing to extract natural gas from groundwater to natural gas wells operations. deep shale formations like the that are hydraulically fractured The Pioneer well resulted in Collingwood, which is roughly could harm rivers, lakes, wetlands the loss of 5.5 million gallons of 10,000 feet underground. and drinking water wells that are water from the aquifer that was fed by underground aquifers. Thousand of gas wells drilled tapped for that project. That’s into the Antrim shale in the 1990s Drillers typically use between equivalent to the volume of water were hydraulically fractured but 3 million and 8 million gallons of in eight Olympic-sized swimming none caused groundwater con- water over the course of two or pools. tamination, according to state of- three weeks to hydraulically frac- Pumping that quantity of ficials. Those same officials point- ture a gas well. About 70 percent water out of the ground near the ed to the success of the Antrim of the water remains in the rock headwaters of trout streams could development as proof that wells formation around the well bore. harm rivers if not carefully regu- can be hydraulically fractured Crews trucked in 5.5 million lated, said Maclin of Trout Un- without harming nearby water re- gallons of groundwater to fracture limited. She said flow reductions sources. shale in the Pioneer well. About in headwater streams can result The difference was that An- 4 million gallons of that water in less aquatic life, a problem trim shale wells ranged between remained deep underground and that can then be magnified down- 1,000 feet and 2,500 feet deep and was no longer available to aqui- stream. required the use of far less water fers that recharge lakes and rivers; Michigan regulates large wa- and fracking chemicals. the rest of the water returned to ter withdrawals, like those at in- 32 Hydraulic Fracturing dustrial facilities, farms and the state’s water withdrawal assess- silence in the halls of state gov- Nestle’s Ice Mountain water bot- ment tool (found at http://www. ernment. tling facility near Big Rapids. As miwwat.org) to ensure that deep Fitch said the DNRE would part of those regulations, the state shale wells don’t harm coldwater hold drillers of deep shale wells to developed a Water Withdrawal streams. But that didn’t happen the same environmental standards Assessment Tool to evaluate with the Pioneer well. as other large water users, even whether a large water withdraw- The reason: The Pioneer well though there is no law to back up al would harm nearby coldwater wasn’t located near any “sensitive that pledge. “We’re not going to streams. waters,” said Hal Fitch, chief of allow a water withdrawal that has But there is a gaping loophole the DNRE’s Office of Geological a significant impact on our water in the regulations: Oil and gas Survey. resources,” he said. wells are exempt from the state’s “Five millions gallons sounds Maclin said a major prob- water withdrawal law. like a lot of water but to put it lem with hydraulically fracturing As the law now stands, drill- in perspective that’s about how wells is that most states lack the ers can extract unlimited quanti- much water is used to grow eight- personnel needed to effectively ties of groundwater or surface wa- to-ten acres of corn in a season,” regulate the process. ter provided it is used to develop Fitch said. “We don’t believe it “State officials in Pennsylva- an oil or gas well. (water withdrawals for fracking) nia claim they have all the regu- is going to be a big threat.” Jim Olson, a Traverse City- lations needed to address any is- based attorney and expert on wa- The difference between farm- sues related to fracking, yet there ter law, said the state made a huge ing and fracking is that much of is very little enforcement because error by auctioning off 120,000 the water used to grow crops the state doesn’t have the man- acres of mineral leases in 2010 soaks into the ground and returns power needed to keep up,” Maclin without first studying whether to its source. Water pumped out of said. water withdrawals for fracking the ground or a pond for fracking Michigan’s Office of Geo- would harm rivers, lakes or aqui- a deep shale well is gone forever logical Survey has 44 employees fers. from that body of water. keeping tabs on the 14,000 active “In effect the state turned over Allowing oil and gas compa- oil and natural gas wells in the our land and water to the oil and nies to divert unlimited quantities state. There are 26 field inspectors gas industry for fracking before of a publicly owned resource — and another 18 geologists, techni- it fully understood the massive groundwater — for private gain is cians, legal staff and supervisors amounts of water required or the wrong, Olson said. who work with the field inspec- potential for harm,” Olson said tors, Fitch said. “The foundation of our state’s in an essay published in the De- quality of life and economy are at In November 2010, a coali- troit Free Press. “The concern for stake,” Olson said, “and the pre- tion of Michigan conservation land and water, and the impacts mature transfer of the public’s groups called on the DNRE to to landowners, businesses and interest in water and land for pri- impose tougher regulations on citizens have been largely ignored vate extraction violates the public hydraulic fracturing. The groups because of the smell of money.” trust.” recommended the state: Officials at the Michigan Olson called on state lawmak- • Require use of the state’s wa- DNRE’s Office of Geological ers to impose a moratorium on ter withdrawal assessment Survey, which regulates oil and deep shale wells until concerns tool for all water withdrawals gas exploration, have said the about fracking were addressed. related to the fracking of deep agency would voluntarily use the His call for action was met with shale wells. 33 Hydraulic Fracturing

• Make water withdrawals for fluids (water, sand and chemi- handling of fracking fluids, along oil and gas wells subject to cals) that flow back to the sur- with fragmentation of the land- the same regulations applied face. scape to make all of this drilling to other large water users. Environmental consultant happen will be the big issues.” • Require public disclosure of Christopher Grobbel said he be- A recent incident in Pennsyl- lieves the greatest risk of pollu- the chemicals used during the vania illustrated Grobbel’s point. well fracturing process. tion problems at hydraulically fractured wells will be at the sur- On Oct. 9, 2010, a truck haul- • Require seismic monitoring face, not underground where the ing fracking fluids sprung a leak to prevent the well fracking gas is extracted. while traveling along a highway process from triggering earth- “I don’t think the upward mi- near Hughesville, Pa. The spill quakes. gration of fracking fluids and gas extended 35 miles, forcing police • Make companies monitor and is the big threat,” Grobbel said. to close a section of the highway report the volume of fracking “I think the trucking and surface until the mess was cleaned up. Potential for Profits & Problems

Michigan is in the early stages www.circleofblue.org/waternews) of 474 trillion cubic feet. of extracting natural gas from its Increasing national demand for Texas oil magnate T. Boone deep shale, the Collingwood for- natural gas could help drive new Pickens said the revised EIA esti- mation. Only a few exploratory drilling in the Collingwood forma- mate showed that the U.S. is now have been drilled and at least one tion. the “Saudi Arabia of natural gas.” company has stopped negotiating (“EIA projects huge growth in leases needed to place drilling rigs Because natural gas burns cleaner than coal, it is viewed as U.S. shale,” UPI, Dec. 17, 2010, on private property. a bridge fuel to renewable energy accessed at http://bit.ly/gNK7k6) That doesn’t mean the Collin- sources, such as wind, solar and Grobbel said Michigan has gwood shale will go untapped in geothermal. State and federal legis- a chance to enact stricter regula- Michigan. lation aimed at curbing greenhouse tions that could prevent many of gas emissions are expected to fur- The Pioneer well initially pro- the problems that hydraulic frack- ther increase demand for natural duced 2.5 million cubic feet of ing operations have caused in other gas. natural gas daily for 30 days, which states. But he doubts that will hap- made it the largest single source There is also new evidence pen. of natural gas in Michigan. The that the U.S. is sitting atop huge “This is a front burner issue and well’s production dropped back to reserves of shale gas. The U.S. En- Michigan has a chance to be proac- 800,000 cubic feet of natural gas ergy Information Administration in tive about it,” Grobbel said. “But per day — not a gusher but still a December 2010 said that shale gas because we have this very cozy re- substantial well by Michigan stan- reserves in the U.S. were twice as lationship in Michigan between the dards. (“Typical Michigan Oil large as previously thought. regulators and industry, I’d be sur- and Gas Lease Auction Casts The EIA said the U.S. has the prised if we get ahead of this and do Doubt on Collingwood Shale technical capability to produce 827 the right thing.” Formation,” Nov. 9, 2010, Circle trillion cubic feet of shale gas re- of Blue WaterNews, accessed at serves, up from the 2009 estimate 34 Hydraulic Fracturing

Fracturing Fluid Additives, Main Compounds, and Common Uses. Common Use of Main Additive Type Main Compound(s) Purpose Compound Diluted Acid Hydrochloric acid or Help dissolve minerals and Swimming pool chemical and (15%) muriatic acid initiate cracks in the rock cleaner Eliminates bacteria in the water Disinfectant; sterilize medical Biocide Glutaraldehyde that produce corrosive and dental equipment byproducts Bleaching agent in detergent Allows a delayed break down of and hair cosmetics, Breaker Ammonium persulfate the gel polymer chains manufacture of household plastics

Corrosion Prevents the corrosion of the Used in pharmaceuticals, N,n-dimethyl formamide Inhibitor pipe acrylic fivers, plastics

Maintains fluid viscosity as Laundry detergents, hand Crosslinker Borate salts temperature increases soaps, and cosmetics Water treatment, soil Polyacrylamide Minimizes friction between the conditioner Friction Reducer fluid and the pipe Make-up remover, laxatives, Mineral oil and candy Guar gum or hydroxyethyl Thickens the water in order to Cosmetics, toothpaste, sauces, Gel cellulose suspend the sand baked goods, ice cream Food additive, flavoring in Prevents precipitation of metal Iron Control Citric acid food and beverages; Lemon oxides Juice ~ 7% Citric Acid Low sodium table salt KCI Potassium chloride Creates a brine carrier fluid substitute Removes oxygen from the Oxygen Cosmetics, food and beverage Ammonium bisulfite water to protect the pipe from Scavenger processing, water treatment corrosion Maintains the effectiveness Washing soda, detergents, pH Adjusting Sodium or potassium carbonate of other components, such as soap, water softener, glass and Agent crosslinkers ceramics Allows the fractures to remain Drinking water filtration, play Proppant Silica, quartz sand open so the gas can escape sand, concrete, brick mortar Automotive antifreeze, Prevents scale deposits in the Scale Inhibitor Ethylene glycol household cleansers, and deic- pipe ing agent Used to increase the viscosity of Glass cleaner, antiperspirant, Surfactant Isopropanol the fracture fluid and hair color

Note: The specific compounds used in a given fracturing operation will vary depending on company preference, source water quality and site-specific characteristics of the target formation. The compounds shown above are representative of the major compounds used in hydraulic fracturing of gas shales.

35 Action Recommendations for follow-up action by Anglers of the Au Sable

The recommendations below are based on the conclusions of this report. As of this writing (January 2011), the recommendations below have not been approved by the Anglers of the Au Sable board or its committees and thus do not constitute official Anglers of the Au Sable policy. The recommendations below are subdivided into four main categories — oil pipelines, gas pipelines, existing oil and gas wells, and hydraulic fracturing —consistent with the main body of the report. OIL PIPELINES

1. DETERMINE THE EXIST- of the Au Sable and Manistee Main Branch. ING BOUNDARIES OF rivers are included in existing 4. INCREASE ENBRIDGE’S ‘HIGH CONSEQUENCE High Consequence Areas. ATTENTION TO TRIBU- AREAS’ AND SEEK EX- 2. COMMUNICATE & COL- TARY CROSSINGS: After PANSION OF THOSE LABORATE WITH EN- the October meeting, An- AREAS WHERE NECES- BRIDGE: Continue the posi- glers requested that Enbridge SARY: Only pipelines in tive momentum developed study its numerous Au Sable “high consequence areas” between Anglers of the Au tributary crossings and report such as population centers Sable board members and back to Anglers regarding any and environmentally sensi- Enbridge officials at the Oc- potential problems. Anglers tive zones require strict fed- tober 2010 and January 2011 should continue to stress the eral oversight and vigilant meetings. Follow up meetings need to understand these trib- inspection. Numerous areas should include guided float utary crossings, assure they of extreme importance to An- trips so Enbridge officials can are structurally sound, and glers of the Au Sable may not experience the recreational work with local emergency be considered “high conse- bounty of the Au Sable region management officials to as- quence areas.” These unregu- sure they are knowledgeable lated areas may include criti- 3. ASSIST WITH EN- about the crossings and have cal headwaters areas of the Au BRIDGE’S ONGOING DI- consistent and adequate ac- Sable and its tributaries and SASTER PLANNING: En- cess to the crossings in the the Deward area, where Mark- bridge has pledged to hold a case of mishaps. west Energy’s 250-mile long “live” cleanup exercise in the pipeline crosses the main- Au Sable corridor in summer 5. CONTINUE TO SEEK AD- stream of the Manistee River 2011. Anglers representa- DITIONAL ENBRIDGE but is not currently inspected tives should attend and assist. DOCUMENTATION: An- or monitored by any state or Likewise, Anglers should as- glers should continue efforts federal regulators. Anglers sist Enbridge in developing to receive all pertinent Line 5 should attempt to work with in-depth relations with emer- inspection reports from PHM- Enbridge and Markwest to ob- gency management personnel SA and the company. Like- tain detailed maps that would through the Au Sable corri- wise, Anglers should monitor allow us to determine whether dors downstream of Line 5’s ongoing progress in the Ka- all critical headwaters areas crossing of tributaries and the lamazoo River cleanup and

36 Action

investigation and obtain any remote-controlled shut-off ruptures. significant reports emanating valve on the south side of 7. SEEK COLLABORA- from that ongoing Kalamazoo the Au Sable, work with the TIVE DISCUSSION WITH River work. company in whatever helpful MARKWEST: With the En- ways possible to execute the 6. ENCOURAGE ADDI- bridge relationship as a model, installation and also better un- TIONAL PIPELINE SAFE- Anglers should seek positive derstand valve and protection TY INFRASTRUCTURE: discussions with Markwest to measures near tributary cross- Anglers should enthusias- better understand the oil pipe- ings to better protect the water tically applaud Enbridge’s line crossing under the Man- bodies in the event of pipeline pledge to install an additional istee River in Deward.

NATURAL GAS PIPELINES

1. REVIEW RECORDS UN- claims that the public has no operating in the Au Sable DER FOIA: Anglers should reason for any concern about region in the same way An- pay the requested $889 FOIA the structural integrity of nat- glers has reached out to En- records fee and proceed with ural gas pipelines in the Au bridge. Understand industry review of all inspection re- Sable region. concerns, offer to collaborate ports for MichCon pipelines in mock disaster exercises and 2. COMMUNICATE & COL- in the Au Sable watershed. to serve as a liaison between LABORATE WITH IN- Otherwise, Anglers has no distant pipeline operators and DUSTRY: Reach out to nat- documentation on which to local emergency management ural gas pipeline companies assess regulators’ blanket officials.

EXISTING OIL & GAS WELLS

1. EXPAND POLLUTION wells in the watershed. Those oil and gas exploration. Giv- INVESTIGATION AT OIL inspections are the first line of en the burgeoning concerns WELL: Ask the MDNRE defense against soil and water about hydraulically fractured to widen its investigation of pollution and are a valuable gas wells in Michigan, it groundwater contamination source of information on con- seems timely to add another at the Geraldine 3-35 oil well, taminated wells that are the member of the public or a rep- near Gaylord, to ensure that subject of ongoing cleanup resentative from a conserva- the volume of toxins that may activity. tion group to the DNRE’s Oil be entering the Au Sable’s and Gas Advisory Commit- 3. SEEK MEMBERSHIP ON North Branch meet state wa- tee. Anglers of the Au Sable MICHIGAN’S OIL & GAS ter quality standards. should seek membership in ADVISORY COMMIT- this group to both serve as a 2. STAY ON TOP OF STATE TEE: Currently, the oil and river advocate and to build INSPECTIONS: Assign one gas industry constitutes most more understanding and col- or more members of the An- membership on this state ad- laborative relationships with glers’ Oil and Gas Committee visory group. The committee the oil and gas industry and its to monitor the state’s inspec- advises the DNRE on policy, regulators. tion reports for oil and gas rules and orders related to

37 Action - Summary HYDRAULIC FRACTURING (“FRACKING”)

1. MONITOR ONGOING measures could be enacted be naïve. LEASE ACTIVITY: Closely to better protect Michigan’s • Require oil and gas com- monitor the state’s mineral natural resources from the panies to disclose the lease auctions each May and potential negative impacts of chemical contents of October to assess new activity hydraulically fractured gas fracking fluids. Those in the Au Sable and Manistee wells: companies should also be river corridors. • Make companies that hy- required to disclose the 2. COLLABORATE WITH draulically fracture nat- volume of fracking fluids OTHER GROUPS ON ural gas wells subject to that flow back to the sur- FRACKING CONCERNS: Michigan’s water with- face after a well is drilled, Anglers should work closely drawal law. Fracking one as well as where those with the greater conservation/ deep shale gas well uses fracking fluids are sent for environmental communities up to 8 million gallons of disposal. in Michigan to foster greater water, which could harm • Encourage federal offi- oversight of hydraulic fractur- Michigan’s lakes, streams cials to regulate fracking ing within the river corridors. and wetlands if not prop- under the Clean Water Several Michigan conserva- erly regulated. Relying on Act and Safe Drinking tion groups recently called on the goodwill of state em- Water Act. Those laws state agencies to tighten regu- ployees who contend that are powerful deterrents to lations on the fracking of deep voluntary guidelines are pollution and could protect shale wells. The Anglers of adequate to keep fracking Michigan from the kinds the Au Sable should support operations from harming of problems that fracking that effort. Several particular natural resources would has caused in other states.

FOIA Summary: Documents used in this report This report was based largely agencies. Some of the informa- Below is a summary of FOIA on thousands of pages of gov- tion would only be provided in requests the author filed with state ernment documents the author response to a Freedom of Infor- and federal agencies and the doc- obtained from state and federal mation Act (FOIA) request. uments provided as a result. The Michigan Department of Natural Resources and Environment:

• Filed a FOIA request seek- vided a database of inspec- inspections conducted being the compliance history tion reports for oil and gas tween 1991 and 2010 in for oil and gas wells in the wells in the watershed. Crawford, Otsego, Oscoda Au Sable River watershed. The database contained and Roscommon counties. Eventually, the DNRE pro- summaries of 59,000 well

38 Summary The Michigan Public Service Commission:

• Requested state records that nearly $14,000 to obtain those history of intrastate natural documented the age, condi- documents. The Anglers de- gas pipelines that MichCon tion and compliance history of clined to pay and the records owned in the Au Sable River all intrastate natural gas pipe- were never provided. watershed. The PSC said it lines in the Au Sable River would cost the Anglers nearly • Filed a narrower FOIA re- watershed. The PSC said the $900 to obtain those docu- quest seeking records that Anglers would have to pay ments. Negotiations continue. documented the compliance The U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration:

• Requested the five most re- als Safety Administration and pipeline that crosses the Au Sable cent inspection reports on En- Enbridge Energy Partners re- River. Those documents included bridge Energy Partners’ Line lated to Enbridge Energy Part- the 2002 inspection of Line 5. The 5, the pipeline that carries oil ners’ Line 5. documents did not include results from Superior, Wis., to Sar- of the 2006 inspection of Line 5, Officials at PHMSA provided nia, Ontario. Also requested which PHMSA withheld because a disc with thousands of pages of copies of any and all corre- those records are part of the agen- documents related to Enbridge’s spondence (including e-mails) cy’s ongoing investigation of the operation of its Lakehead pipeline between officials at the Pipe- Kalamazoo River oil spill. system, which includes the Line 5 line and Hazardous Materi-

39 Anglers of the Au Sable P.O. Box 200 NonProfit Organization US Postage Grayling, MI 49738 PAID LUZERNE, MI Permit No. 4

Editorial Offices Contributors The RIVERWATCH P.O. Box 300 Luzerne, MI 48636 Jeff Alexander, Reporter/Author of Spe- Email: cial Report on Oil & Gas [email protected]

Our organization is officially John Bebow, Director, Editor of Special affiliated with the Federation of Fly Report on Oil & Gas Editorial Staff Thomas Buhr, Editor Fishers (FFF). We strongly encourage you to join the FFF. Thomas Buhr, RIVERWATCH Editor Mercy Huizar, Graphic Designer Since 1965, FFF and its Councils Email: [email protected] have been and continue to be the only organized national and Calendar - Winter 2011 regional advocates for fly fishing. February 19, 2011 – Anglers Board Five dollars of your FFF dues Meeting, Gates Lodge, 10 am. are returned to the FFF Great Lakes Council (GLC) March 12 & 13 – Midwest Fly Fishing Expo (Warren) to be used for local efforts. April 1, 2011 – Opener for New Gear Restricted Waters: Wakeley to McMasters; Mio to McKinley April 30, 2011 – Opening Day! (New Years Day north of M-55) June 4, 2011 – Anglers Board Meeting, Gates Lodge, 10 am September 10, 2011 – Annual Cleanup, Gates Lodge, 10 am September 11, 2011 – Anglers Annual Meeting & Board Meeting, Board Room, 10 am