Governor’s Marcellus Shale Advisory Commission Report 7/22/2011 Edwin Austin Abbey mural, State Capitol, Harrisburg TABLE OF CONTENTS Transmittal Letter from Lieutenant Governor Cawley to Governor Corbett ................................................................. 5 Executive Summary ....................................................................................................................................................... 7 Purpose, Scope & Next Steps .................................................................................................................................... 7 Acknowledgement ..................................................................................................................................................... 8 1. Background on the Marcellus Shale Advisory Commission ....................................................................................... 8 2. Overview of the Commission Process and Deliberations .......................................................................................... 9 3. Geologic Background on the Marcellus Shale Natural Gas Field ............................................................................. 13 3.1 A Brief History of Gas Production in the Commonwealth ................................................................................. 13 3.2 Hydraulic Fracturing and the Production of Gas in the Appalachian Basin ....................................................... 15 3.3 The Marcellus and its Geological Origins ........................................................................................................... 19 3.4 Geological Properties to Estimate the Volume of Technically Recoverable Gas ............................................... 22 3.5 Geologic Considerations of Shale Development ................................................................................................ 29 3.6 Marcellus Economic Estimates Based on Geological Properties ....................................................................... 31 4. Marcellus Shale Activity in Pennsylvania ................................................................................................................. 33 4.1 Well Activity ....................................................................................................................................................... 33 4.2 History of Oil and Gas Development on State Forest and Park Lands ............................................................... 35 5. Regulatory Framework ............................................................................................................................................ 37 5.1 The Role of State Agencies and Commissions ................................................................................................... 37 5.2 State Statutes .................................................................................................................................................... 40 5.3 Federal Statutes ................................................................................................................................................. 47 5.4 State Regulations ............................................................................................................................................... 49 5.5 Federal Regulations ........................................................................................................................................... 55 5.6 Guidance Documents ......................................................................................................................................... 57 5.7 Executive Orders ................................................................................................................................................ 64 5.8 Pennsylvania Municipalities............................................................................................................................... 65 6. DEP Regulatory Changes Prompted by Marcellus Shale Activity ............................................................................. 65 6.1 Well Permit Fees and Staffing Increases ............................................................................................................ 65 6.2 Water Use, Wastewater Storage, and Wastewater Disposal ............................................................................ 66 6.3 Gas Well Construction ....................................................................................................................................... 67 7. Permitting Overview ................................................................................................................................................ 69 7.1 Well Permit ........................................................................................................................................................ 69 7.2 Site Construction ............................................................................................................................................... 70 2 7.3 Air Quality Permit .............................................................................................................................................. 71 8. Work Group Summaries .......................................................................................................................................... 73 8.1 Environmental Impact Mitigation ...................................................................................................................... 73 8.2 Infrastructure Development Challenges & Opportunities ................................................................................. 79 8.3 Pennsylvania Market Development ................................................................................................................... 82 8.4 Workforce, Education, and Training .................................................................................................................. 86 8.5 Mitigation of Adverse Local Impacts ................................................................................................................. 91 9. Commission Recommendations ............................................................................................................................ 103 9.1 Infrastructure ................................................................................................................................................... 103 9.2 Public Health, Safety & Environmental Protection .......................................................................................... 105 9.3 Local Impact & Emergency Response .............................................................................................................. 112 9.4 Economic & Workforce Development ............................................................................................................. 115 10. Public Comment and Response ........................................................................................................................... 118 10.1 Environmental Protection & Oversight .......................................................................................................... 119 10.2 Public Health .................................................................................................................................................. 119 10.3 Water Use and Pollution ................................................................................................................................ 120 10.4 Municipal Zoning ........................................................................................................................................... 120 10.5 Economic Impacts .......................................................................................................................................... 120 10.6 Local Government & Community Impacts ..................................................................................................... 121 10.7 Safety ............................................................................................................................................................. 121 10.8 Delaware River Basin Commission ................................................................................................................. 121 10.9 Energy Education ........................................................................................................................................... 122 10.10 Composition of the Marcellus Shale Advisory Commission......................................................................... 122 Appendices ................................................................................................................................................................ 123 Appendix A ............................................................................................................................................................. 123 Appendix B ............................................................................................................................................................. 126 Appendix C ............................................................................................................................................................. 128 Appendix D ...........................................................................................................................................................