ABINGDON, VA, October 2, 2014 — The current state of the natural gas industry in Virginia was among the topics for discussion annual fall meeting of the Virginia Oil and Gas Association (VOGA), which was held Oct. 2, 2014 in Washington County, Va.
“We are entering an historic time for our industry,” VOGA President Brent Archer told board members. “I was not around at the turn of the century oil boom, but I think someday people will look back on this time in the gas industry and they will see a similar story. It’s an exciting time.”
An update on two pipeline projects in the eastern part of the state — the Atlantic Coast Pipeline being developed by Dominion and the Mountain Valley Pipeline project proposed by EQT and its joint venture partner Next Era Energy — was presented to the membership.
Also discussed were newly completed updates to the Virginia Energy Plan. Gov. Terry McAuliffe has recognized the importance of energy development in the Commonwealth, recently referring to it as an economic driver for the state that creates tens of thousands of jobs, generates hundreds of millions of dollars and brings new industry to the state. Current American Petroleum Institute figures show that there are 141,600 men and women employed in the gas industry in Virginia and that it contributes $12.5 billion to the Virginia economy, or nearly 3 percent of Virginia GDP. In fact, Virginia ranks 15th in the U.S. for natural gas production.
While much remains in the news about the industry, the need to proactively disseminate factual information about natural gas and its benefits was a common theme in discussions by VOGA membership. Some of the key areas discussed included where erroneous information is being perpetuated as fact concerning water issues, the life cycle of a natural gas well, the process of well stimulation or hydraulic fracturing (termed “fracking” by groups opposed to it), how the industry is regulated and its overall impact in Virginia.
Regulatory oversight of the industry in Virginia is accomplished primarily through the Virginia Department of Mines, Minerals and Energy (DMME). Other agencies with regulatory oversight in Virginia also include the Virginia Department of Environmental Quality, the Virginia Marine Resources Commission, the Virginia Department of Transportation, the Virginia Department of Labor and Industry, the U.S. Army Corps of Engineers, and the U.S. Environmental Protection Agency. Interstate pipeline projects fall under Federal Energy Regulatory Commission (FERC) as the lead federal agency for the purposes of complying with the National Environmental Policy Act (NEPA) and the FERC is responsible for authorizing the construction and operation of interstate natural gas pipeline projects, with additional oversight by other federal agencies. Intra-state pipelines fall under the oversight of the State Corporation Commission.
Well stimulation through hydraulic fracturing, the process of injecting water and/or nitrogen and sand along with a small volume of chemicals into the rock or coalbed is not a new process and in fact has been used safely and in an environmentally responsible manner for decades. Industry regulators, including the EPA, have noted time and again that there have been no cases of groundwater contamination due to “fracking” — including wells utilizing high volumes of water which have been “fracked” in other parts of the country or with using primarily nitrogen as is done in Virginia with its unique reservoirs.
While hydraulic fracturing is a hot button topic, VOGA members noted the significant degree of misunderstanding of both the process and the time it takes to stimulate a well. Typically, the actual fracturing process requires only one to three days in the life cycle of a well and enables the well to produce gas typically for 30 years beyond the initial development phase. The drilling phase – which is a completely different process – is typically three to seven days for a vertical well and up to 10 days for a horizontal well. Characterizations by groups opposed to gas drilling of an industry using noisy machinery and bright lights and creating constant truck traffic and diesel fumes around the clock for the life of a well are no more than a distortion of the facts.
Drilling in Virginia includes both vertical drilling and horizontal drilling. Baseline testing of water sources is currently and has been conducted by operators. Many operators test beyond the 500 feet currently required by DMME. Any wastewater from the process is tracked from start to finish by Virginia’s DMME and is properly treated or stored in U.S. EPA-approved underground wells. More and more, operators are recycling water used in the process.
Numerous studies dealing with oil and gas drilling processes, including hydraulic fracturing, have been conducted and have repeatedly shown that “fracking” does not contaminate water wells.
A regulatory review process is currently underway in Virginia. That process was initiated in part by a request from VOGA to require operators to disclose chemicals used in the “fracking” process on FracFocus, an independent website which allows the general public to be able to check a particular well and learn the specific chemicals used in the stimulation of that well. The chemicals used in the “fracking” of a well are mainly household and food-grade additives including:
• Guar Gum – a gelling agent used in ice cream and ketchup
• Surfactant – used as a friction reducer which has common uses in dish detergent, fabric softener, shampoo or toothpaste;
• Biocide – the same ingredient used in swimming pools, municipal water treatment and hospital disinfectant to control bacteria;
• Hydrochloric acid – a mild acid similar to gastric acid, also used to control the pH in swimming pools and in medicines;
• Nitrogen – an inert, non-greenhouse gas, that makes up 78 percent of the air we breathe.
Most operators already disclose those chemicals on their company websites.
In addition to discussing the state of the industry, VOGA board members also discussed a recently held natural gas emergency workshop, efforts to expand intrastate infrastructure to meet a growing demand for natural gas, planning for future meetings and advocacy efforts.
The need to meet criticisms of industry head-on and to ensure factual information is disseminated was prioritized. The natural gas industry in Virginia has a great story to be told, VOGA members agreed. Natural gas is a clean, domestic energy source that creates jobs right here in the Commonwealth.
“We need to take advantage of these opportunities,” Archer said. “This is not the time to sit back, but to move forward.”
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