Center for Environmental

Research and Conservation

EARTH INSTITUTE COLUMBIA UNIVERSITY

Marcellus Shale Hydraulic Fracturing

A Case Study: Natural Gas Drilling within New York State

Olena Horcajo

Ariel Cohen

Sarah Weiskopf

Nancy Degnan | Executive Director, CERC

7/12/2011

Abstract

This case study is meant to be an overview of the issues surrounding hydraulic fracturing in the drilling of shale gas within New York State. With regard to this subject, scientific and technology/engineering research is still taking place. Moreover, public and policy debate continues, so readers should consider that perspectives on this issue are evolving. The case study seeks to contextualize hydraulic fracking so that scientific, economic, social and public policy implications can be considered.

OLENA HORCAJO

Olena Horcajo is a 2011 graduate of Columbia University, receiving her MPA in Environmental Science and Policy from the School of International and Public Affairs. She is a research assistant for the Center for Environmental Research and Conservation (CERC) working with the Technology, Research, Ecology, and Exchange for Students (TREES) program. She has previously served in the Peace Corps as an environmental education volunteer within Nicaragua. During her service, she worked with teachers of 5 schools, developing participatory education techniques for grades three through six, while also partnering with the municipal Mayor’s office for a reforestation campaign. She received her Bachelor’s degree in environmental studies from the University of Southern California, and while there worked at the Audubon Center at Debs Park as an assistant teacher naturalist. She enjoys developing research on current environmental issues and finding a way to communicate them effectively to a broad audience.

NANCY DEGNAN

Nancy Degnan is the Executive Director of the Center for Environmental Research and Conservation

(CERC). She previously worked at Columbia’s School of International and Public Affairs and the School of Architecture, Planning and Preservation. Her research and writing has focused on community-based initiatives in education, sustainable development and redevelopment, as well as microfinance and enterprise development. Degnan has consulted with nonprofit and public sector organizations domestically and internationally including the United Nations, the National Science Foundation, the Woodrow Wilson National Fellowship Foundation, the United States Department of Education, the New York City Department of Education and the Colombian and Mexican governments. Her interest in decision-making and knowledge management is an outgrowth of her previous work as well as her engagement with the educational professionals in the New York City school system

and their response to the events of 9/11. At CERC, Degnan spearheads proposals and programming in education, training and research in conservation science to bridge the science and non-science communities with the goal of informing decisions and practices about environmental sustainability in corporations, non-profit and public sector organizations and in schools (K-12). Degnan received her MPA and PhD from Columbia University. She is a lifelong resident of New York.

ARIEL COHEN

Ariel Cohen is entering the Entrepreneurship and Innovation Program in theHonors College at the University of Maryland this fall 2011. She is a graduate of TheBeacon School, New York, New York class of 2011. During the spring semester 2011, Ms. Cohen was a research intern for the Executive Director of the Center forEnvironmental Research and Conservation of Columbia University’s Earth Institute. As an intern she expanded previous research on the topic of Marcellus Shale hydraulic fracking – a topic that was the basis of her senior science honors project – to encompass the policy implications surrounding the issue of natural gas extraction. At the college level, Ms. Cohen would like to study communications and the role of communication in effectively engaging many different stakeholders toward resolution and understanding of complex issues. One of the areas she is interested in is that of multiculturalism. Ms. Cohen is also a gifted artist.

Sarah Weiskopf

Sarah Weiskopf is an Honors College student majoring in biology and environmental science at the University of Delaware. She is currently interning at the Center for Environmental Research and Conservation, Earth Institute, Columbia University.

TABLE OF CONTENTS

Methods of Research……………………………..………………………………………………4

Overview Notes to the Reader………………………………………………….……………….6

Introduction………………………………………………………………………………………9

Marcellus Shale: Creation of a Natural Gas Resource………………………………….…9

History of Hydraulic Fracturing..………………………………………………………...10

Hydraulic Fracturing within Marcellus Shale……………………………………………13

Logistics of Hydraulic Fracturing …………………………………………………………….14

Current Regulation of Hydraulic Fracturing………………………………………………...18

Federal Regulations……………………………………………………………………...18

Current Position by Various Agencies………………………………………………...... 21

Possible Detrimental Health and Environmental Effects……..…………….. ……………....23

Cost-benefit analysis ……………………………………………………..………………….…27

Transition Fuel to Renewable Energy Sources ……………………………………….…28

The United States Role in Hydraulic Fracturing Development …………………………29

Summary………………………………………………………………………………………..30

Glossary of Terms …………………………………………………………………..………….31

Endnotes ………………………………………………………………………………………..32

METHODS OF RESEARCH

This case study was developed for a group of educators from New York City public schools who are participating in the CERC program, TREES: Technology, Research, Ecology and Exchange for Students.[1] TREES focuses on the interdisciplinary study of urban ecosystems, water, biodiversity and energy. The program is funded through an NSF I-TEST division three-year grant intended to support STEM and STEM ICT learning and teaching for 21st century (NSF TREES Project #0929796, PI: Nancy Degnan). Specifically, the TREES Fellows want to prepare their K-12 students, the majority of whom are at the middle school level, with the skills and knowledge to lead economically productive lives in a complex global marketplace increasingly dependent upon science and math expertise, technology and environmental sustainability.

Two core questions formed the authors’ approach to the research and writing of this case study: 1.) How do we gather and present information about a critical, complex set of issues that continue to evolve; and 2.) how could we do so in as straightforward a way as possible to maximize understanding for readers? A case study is intended to support keen analytics for purposes of learning, skills development and application of problem-solving within professional craft.

The next step was to undertake a systematic approach to summarizing information for the purpose of building a much more detailed understanding of the events, including where information seemed to converge and where we could identify gaps. In turn, we developed pertinent research questions within the scope and mission of TREES to inform case teaching objectives. These included:

How can we contextualize the Marcellus Shale Hydraulic Fracturing to provide an overview of key issues around water, biodiversity and energy? This question necessarily brought us to the inclusion of considerations of “living laboratories” in marshes and wetlands within urban ecosystems, linked to economic, political and social matters.

What is the best use of the case study for problem- and project-based learning? This question was first considered from the teachers’ point of view, recognizing that they would, in turn, use the case study technique in their own classrooms.

What is the role of technology, especially as it pertains to the specifics of the case? In addition, how is technology used to advance interdisciplinary teaching and learning? One of the core elements of the I-TEST division at the NSF is to extend knowledge and practice of technology for 21st century teaching and learning.

We reviewed a wide array of secondary sources of information, ranging from newspaper articles to research papers, in order to start to grasp the inconsistencies within the information currently available on hydraulic fracturing. With hydraulic fracturing being such a recent addition to the energy resource debate, there has been little research into the background and safety of the drilling, especially within Marcellus Shale. For this reason, we tried to gather information from all sides of the debate, whether their funding is private, public, or non-profit, in order to ensure that any conclusions were determined to be fair and reasonable.

Once a large amount of data was collected, the goal was to synthesize the information effectively to provide a detailed understanding of the history and future of hydraulic fracturing. We determined that providing the historical background of both the area and the drilling technique would create a base of knowledge that we could then build upon with detailed information regarding the policies currently in place and the potential gaps in research and regulations. By also creating a section listing the main stakeholders, it is intended that this case study be used for further developing the objectives of each of these main actors within hydraulic fracturing. The politics and economics associated with this case has established a polarized public with many different views of the issue, and each of the stakeholders represents a portion of the population that is at stake with the decisions made regarding hydraulic fracturing.

The goal of this case study was to accurately reflect the scientific, political, economic, social, and environmental conditions that have made hydraulic fracturing a highly contentious issue. While further research is being done by a variety of sources, including the Environmental Protection Agency (EPA) and the final conclusions of the New York Department of Environmental Conservation (NYDEC), New York State has yet to allow fracturing within the Marcellus Shale. There will be further additions and changes to New York State regulations that will be addressed in further iterations of this case study. The implications of hydraulic fracturing within the Marcellus Shale are not as of yet completely known, and it is only with continuing research and time that the full costs and benefits can be analyzed to properly take into account the environmental and economic implications.

Overview notes to the reader:

Some recent events with regard to natural gas drilling are also noted below:

1.) At the onset of researching and writing this case study, New York State had a moratorium on hydraulic fracturing in the Marcellus Shale. In June 2011, Governor Andrew Cuomo indicated that he would be in favor of lifting that moratorium with the provision that no drilling take place in areas along the watershed. The Governor sited economic reasons inasmuch as the areas designated for drilling are suffering from the state, regional and national downturn in the economy. Up to 1600 new wells are proposed in New York State within the next ten years.

2.) In early April 2011, a team of scientists from Cornell University conducted a study that concluded that “extracting natural gas from the Marcellus Shale could do more to aggravate global warming than mining coal”.

The Cornell study published in the May issue of Climatic Change Letters (105:5).) The findings have been roundly criticized by members of the energy industry/community.

3.) One year after the BP Horizon oil spill in the Gulf of Mexico, an explosion in Pennsylvania, which took place on April 21, 2011, released thousands of gallons of chemical-laced drilling (fracking) fluid into nearby waterways… This incident also occurred while many were still reading about fallout from the Fukushima incident in Japan. The well is owned by the The Chesapeake Energy well in Bradford County, Leroy Township. (

A letter, written by Mark W. Smith, Chairman, Bradford County Commissioners, to Governor Tom Corbett of Pennsylvania on April 20, 2011, states the following: Issue after issue has arisen in Bradford County in relation to the development of natural gas in Bradford County… this major incident involving a well blowout in Leroy Township…is just one more issue our county is dealing with in regards to the development of Marcellus Shale…Well water contamination in Bradford County is a real and serious issue that is affecting residents’ quality of life, livelihoods, families and property values. Water buffalos, temporary water storage tanks, now lay claim to peoples’ front yards as a stark reminder of the extreme negative impact that natural gas development is having on our local communities…I have heard politicians in complete favor of the gas industry use the phrase, “We don’t want to kill the golden goose.” I would like to state, for the record, that the “Golden Goose” does not exist. It is no more part of reality than the Tooth Fairy, Santa Claus, or the Easter Bunny.”

Smith goes on to address the fact that there is no representation from Bradford County on Gov. Corbett’s Marcellus Shale Commission and asks him to redress this situation. Smith concludes with… The economic benefit of this development is unquestionable. However, it is also unquestionable that when left unattended, the negatives outweigh the positives quickly and heavily.

4.) In early May 2011, President Barak Obama asked the US Department of Energy to form a panel to review and recommend ways recommend ways to improve the safety of hydraulic fracturing. The request came after a number of high profile accidents. Among those cited was that of the Bradford County, Pennsylvania, spill noted above. Energy Secretary Chu released the following statement: "America's vast natural gas resources can generate many new jobs and provide significant environmental benefits, but we need to ensure we harness these resources safely" .

5.) Researchers from Duke University will release a report within the next several weeks showing the results of a study of methane gas in 68 private ground-water wells across five counties in Pennsylvania and New York. The study will cite "evidence for methane contamination of drinking water associated with shale-gas extraction." The report will be published in the Proceedings of the National Academy of Sciences.

6.) In June 2011, Bloomberg News reported:

The worst Texas drought since records were kept 116 years ago may crimp an oil and natural gas drilling boom as government officials ration water supplies crucial to hydraulic fracturing. In the driest areas, officials are warning residents and businesses to cut usage from rivers, lakes and aquifers. The shortage is forcing drillers to go farther afield to buy water from farmers, irrigation districts and municipalities, said Erasmo Yarrito Jr., the state's overseer of water supplies from the Rio Grande River. Concern over water is especially acute in southern Texas's Eagle Ford Shale area because drilling there is more water-intensive than other regions… (

7.) On July 17, 2011, The Wall Street Journal, Steve Gelsi, reported the following:

Chesapeake Energy Corporation drew positive comments from analysts on Tuesday after it said it would spend $1 billion to promote wider use of natural gas as transportation fuel, starting with a $150 million investment for Clean Energy Fuels.. Shares of Clean Energy Fuels jumped 15 percent after the new of Chesapeake investment…

Clean Energy Fuel’s largest shareholder is billionaire investor T. Boone Pickens, who has teamed up in the past with Chesapeake’s co-founder and chief executive Aubrey McClendon, to push natural gas as a way to reduce oil imports (

Introduction to Hydraulic Fracturing within Marcellus Shale

Natural gas has been purported to be the transition fuel to cleaner energy production, and New York has a locally available resource of natural gas within the Marcellus Shale. The Marcellus Shale formation could potentially serve as a large source of natural gas that could provide fuel for an energy-hungry nation. The Marcellus Shale is a layer of shale rock that resides deep underground, and can only be stimulated to release gas through a process called hydraulic fracturing, which forces large amounts of water and chemicals into the shale rock to break open the formation and allow the release of natural gas. The Marcellus formation has recently become a desirable area for gas development because through new technologies involving a combination of horizontal drilling and hydraulic fracturing, the gas can be economically recovered. This contentious drilling process has lead to a temporary moratorium on drilling within New York. There are clear benefits to having a viable local energy source; however the negative externalities of a danger to human health and the environment have yet to be properly quantified. This case hopes to offer an un-biased analysis of the facts of natural gas drilling, and provide a starting point for further discussions of the pros and cons of hydraulic fracturing within Marcellus Shale.

Marcellus Shale: Creation of a Natural Gas Resource

390 million years ago the Appalachian Basin was covered by a shallow sea, and organisms within the sea were deposited.[1] As the organic matter was covered by sediment and began to decay, a combination of gases, mainly methane, was trapped within the rock formation.[2] This formation covers an area that spans from Ohio to West Virginia, and north through Pennsylvania to Southern New York.[3]

Geologists have estimated that Marcellus Shale contains between 168 trillion to 516 trillion cubic feet of natural gas.[4] The exact amount that is recoverable is as of yet unknown, but it could be a potential 50 trillion cubic feet depending on technology and resources available.[5] This is the largest shale gas deposit within the United States, and to put that number into perspective, that amount of natural gas could meet the energy needs of the United States for about two years.[6] Most likely, the gas retrieved from the Marcellus Shale will serve the needs of the Northeast region, as demand currently outstrips supply in the area.[7] New York City is a large consumer of natural gas from gas burned to create electricity, and so the amount of gas that could potentially be collected from Marcellus could power New York City for 50 years.[8]

History of Hydraulic fracturing

The first hydraulic fracturing took place in Kansas in 1947 by Stanolind Oil.[9] It was an experiment to discover whether napalm-thickened gasoline injected at a high pressure would release natural gas from limestone.[10] Although not nearly as productive as a conventional gas pump, that first experiment began an expansion of hydraulic fracturing in areas with known natural gas reserves. Natural gas is primarily methane, a potent greenhouse gas, however when burned to create electricity it has been shown to produce fewer greenhouse gases than oil or coal.[11]