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Mr. Erik Milito - The House Committee on Natural Resources ...

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Executive Summary<br />

Hydraulic fracturing has played an important role in the development of America’s oil and gas resources for nearly 60<br />

years. In the U.S., an estimated 35,000 wells are hydraulically fractured annually and it is estimated that well over <strong>on</strong>e<br />

milli<strong>on</strong> wells have been hydraulically fractured since the first well in the late 1940s. As producti<strong>on</strong> from c<strong>on</strong>venti<strong>on</strong>al<br />

oil and gas fields c<strong>on</strong>tinues to mature, the need for hydraulic fracturing becomes even more important to the<br />

ec<strong>on</strong>omic recovery of n<strong>on</strong>-c<strong>on</strong>venti<strong>on</strong>al resources.<br />

This guidance document identifies and describes best practices currently used in the oil and natural gas industry to<br />

minimize potential surface envir<strong>on</strong>mental impacts associated with hydraulic fracturing operati<strong>on</strong>s. It complements two<br />

other API documents: API Guidance Document HF1, Hydraulic Fracturing Operati<strong>on</strong>s—Well C<strong>on</strong>structi<strong>on</strong> and<br />

Integrity Guidelines, First Editi<strong>on</strong>, October 2009, which focuses <strong>on</strong> groundwater protecti<strong>on</strong> related to drilling and<br />

hydraulic fracturing operati<strong>on</strong>s [1] while specifically highlighting recommended practices for well c<strong>on</strong>structi<strong>on</strong> and the<br />

integrity of hydraulically fractured wells, and API Guidance Document HF2, Water Management Associated with<br />

Hydraulic Fracturing, First Editi<strong>on</strong>, June 2010 [2] .<br />

A fourth related guidance document, API 51R, Envir<strong>on</strong>mental Protecti<strong>on</strong> for Onshore Oil and Gas Producti<strong>on</strong><br />

Operati<strong>on</strong>s and Leases, First Editi<strong>on</strong>, July 2009 [3] , addresses the design and c<strong>on</strong>structi<strong>on</strong> of access roads and well<br />

locati<strong>on</strong>s prior to drilling, as well as site aband<strong>on</strong>ment, reclamati<strong>on</strong> and restorati<strong>on</strong> operati<strong>on</strong>s, including produced<br />

water handling.<br />

While hydraulic fracturing does not introduce new or unique envir<strong>on</strong>mental risks to explorati<strong>on</strong> and producti<strong>on</strong> (E&P)<br />

operati<strong>on</strong>s, c<strong>on</strong>cerns have been raised due to the potential scale of operati<strong>on</strong>s where this technology is applied,<br />

especially with regard to emerging developments in shale gas in the United States. Many of the best practices for<br />

E&P operati<strong>on</strong>s are the same as those applicable to hydraulic fracturing operati<strong>on</strong>s.<br />

Moreover, where shale gas development intersects with urban settings, regulators and the industry have developed<br />

special practices to alleviate potential nuisances and sensitive envir<strong>on</strong>mental resources impacts, al<strong>on</strong>g with<br />

interference with existing commercial activity. Operators need to be vigilant and proactive in mitigating potential<br />

envir<strong>on</strong>mental impacts from E&P operati<strong>on</strong>s, including hydraulic fracturing operati<strong>on</strong>s. <str<strong>on</strong>g>The</str<strong>on</strong>g> following provides<br />

highlights from this guidance document:<br />

1) Operators must comply with all federal, state and local requirements. Approvals may be necessary for many<br />

activities including:<br />

— surface water use;<br />

— wastewater management;<br />

— injecti<strong>on</strong> activities;<br />

— site c<strong>on</strong>structi<strong>on</strong>;<br />

— stormwater discharges;<br />

— air emissi<strong>on</strong>s; and<br />

— protecti<strong>on</strong> of sensitive areas.<br />

2) Two principal reas<strong>on</strong>s for recent c<strong>on</strong>cerns regarding hydraulic fracturing, especially as applied in the<br />

development of shale gas, are: the increase in well permitting in a number of regi<strong>on</strong>s in the U.S. and the new<br />

development activity in areas that have not experienced c<strong>on</strong>centrated oil and gas development in the past.<br />

C<strong>on</strong>sequently, operators should be cognizant of the increase in public scrutiny of fracturing operati<strong>on</strong>s, be<br />

vii

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