[Federal Register Volume 76, Number 2 (Tuesday, January 4, 2011)]
[Proposed Rules]
[Pages 295-296]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-32981]
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DELAWARE RIVER BASIN COMMISSION
18 CFR Part 410
Proposed Amendments to the Water Quality Regulations, Water Code
and Comprehensive Plan To Provide for Regulation of Natural Gas
Development Projects
AGENCY: Delaware River Basin Commission.
ACTION: Proposed rule; notice of public hearing.
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SUMMARY: The Delaware River Basin Commission (``Commission'') proposes
to amend its Water Quality Regulations (``WQR''), Water Code and
Comprehensive Plan by adding a new Article 7 to the WQR providing for
the conservation and development of water resources of the Delaware
River Basin during the implementation of natural gas development
projects. This Article applies to all natural gas development projects
involving siting, construction or use of production, exploratory or
other wells in the Basin regardless of the target geologic formation,
and to water withdrawals, well pad and related activities and
wastewater disposal activities comprising part of, associated with or
serving such projects.
DATES: Comments must be received on or before close of business on
March 16, 2011. Public hearings are scheduled for February 17 and 22,
2011. See SUPPLEMENTARY INFORMATION below for further information about
the public hearings.
ADDRESSES: Electronic comments will only be accepted through the
designated public comment collection system accessible through the
Commission's Draft Natural Gas Development Regulations Web page: http://www.state.nj.us/drbc/notice_naturalgas-draftregs.htm. Printed
comments may be submitted through the U.S. Mail to Natural Gas
Regulations c/o Commission Secretary, DRBC, P.O. Box 7360, West
Trenton, NJ 08628-0360; by private mail carrier to Natural Gas
Regulations c/o Commission Secretary, DRBC, 25 State Police Drive, West
Trenton, NJ 08628-0360; or at any of the three public hearings. See
Supplemental Information below for further information about the
location of the public hearings and how to file comments
electronically.
FOR FURTHER INFORMATION CONTACT: The full text of the Draft Natural Gas
Development Regulations was posted on December 9, 2010 on the
Commission's Web site: http://www.state.nj.us/drbc/notice_naturalgas-draftregs.htm. Hard copies of these materials may be obtained at cost
by contacting Ms. Paula Schmitt at 609-883-9500, ext. 224.
SUPPLEMENTARY INFORMATION:
Comment Process: Interested parties wishing to comment on the
proposed Article 7 are encouraged to visit the Commission's Draft
Natural Gas Development Regulations webpage: http://www.state.nj.us/drbc/notice_naturalgas-draftregs.htm. This Web page provides
instructions on how to submit comments, a copy of the draft
regulations, supporting documents and information about the public
hearings and informational sessions, and access to the public comment
collection system. The Commission will only accept comments received
through the electronic comment collection system accessible through its
Web page, during the public hearing or at the addresses listed above.
Comment received through any other method, including email, fax and
telephone, will not be considered or included in the record.
Public Hearings: Three public hearings will be held. The hearings
are tentatively scheduled for February 17, 2010 near the Commission
office and February 22, 2011 in Wayne County, Pennsylvania and Sullivan
County, New York. The exact times, locations, directions, and other
details about these meetings will be posted on the Commission's Web
page as they become available: http://www.state.nj.us/drbc/notice_naturalgas-draftregs.htm.
Purpose, Authority and Scope: The Commission is proposing a new
Article 7 of DRBC's Water Quality Regulations to protect the water
resources of the Basin during the construction and operation of natural
gas development projects. This Article applies to all natural gas
development projects involving siting, construction or use of
production, exploratory or other wells in the Basin regardless of the
target geologic formation, and to water withdrawals, well pad and
related activities and wastewater disposal activities comprising part
of, associated with or serving such projects. The provisions of this
Article rely on the state oil and gas regulatory programs of
Pennsylvania and New York where separate administration by the
Commission would result in unnecessary duplication. The Article
supersedes the Executive Director's Determinations issued on May 19,
2009, June 14, 2010 and July 23, 2010.
This Article implements the statutory authority that the Basin
states of Delaware, New Jersey, New York and Pennsylvania and the
federal government granted to the Commission in the Delaware River
Basin Compact and supplements the Commission's Comprehensive Plan with
respect to natural gas development projects within the Basin.
Commission regulations are one mechanism by which the Basin states and
Federal government work together to manage water resources in an
integrated manner for the benefit of all citizens of the Basin.
Strategic Regulatory Framework: This Article's regulatory framework
is divided into sections addressing water sources for natural gas
development, well pad siting, and wastewater disposal. The Commission
primarily relies on the oil and gas programs and the experienced agency
staff of the state in which the natural gas well is located to manage
well construction and operation.
Water Sources for Uses Related to Natural Gas Well Development:
Existing Commission regulations establish a program for regulating
water withdrawals. These Commission requirements serve multiple water
resources objectives including, among others, preserving river flows to
protect in-stream living resources and downstream withdrawers, and
ensuring adequate assimilative capacity for approved discharges. The
Commission has in other regulations established thresholds for project
review based on the thirty-day average volume of water withdrawals.
Water withdrawals for natural gas development including high volume
hydraulic fracturing may have substantial water quality impacts due to
their high intermittent daily withdrawal volume. Consequently, this
Article requires that water used for natural gas development projects
must come from water sources that have been approved by the Commission
for use for natural gas development. The requirements for approval are
designed to protect minimum stream flows, provide a
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record of water transfers and otherwise ensure that water resources are
not adversely affected. A streamlined approval process is provided that
encourages the use of existing Commission-approved water sources to
minimize the need to construct and operate new water sources. This
Article permits water sources located within the physical boundaries of
an approved Natural Gas Development Plan (``NGDP'') to be approved for
uses within the NGDP. This Article also permits flowback and production
waters, treated wastewater and mine drainage waters to be reused for
natural gas development under specified conditions.
Natural Gas Development Plan (``NGDP'') and Well Pad Siting
Requirements: The severity of the risks to water resources from well
pad construction and operation depends in large part on where the well
pads are placed. Article 7 seeks to minimize impacts to water resources
from natural gas development by establishing NGDP and well pad siting
and planning requirements, including:
Mandatory preparation of NGDP by sponsors of natural gas
well pad projects who have total lease holdings in the Delaware River
Basin of over 3,200 acres or intend to construct more than five natural
gas well pads designed for any type of natural gas well.
Identification, through the NGDP, of the project sponsor's
foreseeable natural gas development in a defined geographic area. The
NGDP requirement is designed to foster protection of water resources
through broad scale lease area planning rather than limited site-by-
site decision making, thereby encouraging development only in areas
most suitable for it and minimizing impact to sensitive water resource
features. These plans identify geographic and hydrological constraints
to natural gas development and identify measures to minimize those
impacts.
Restrictions regarding siting in flood hazard areas, on
steep slopes, and areas that serve as critical habitat for federal or
state designated threatened and endangered (T&E) species.
Minimum setbacks from water bodies, wetlands, surface
water supply intakes and water supply reservoirs at distances specified
in the regulations, and from occupied homes, public buildings, public
roads, public water supply wells, and domestic water supply wells as
provided by regulations of the state in which the well pad is located.
A requirement for pre- and post-project monitoring of
surface and groundwater near well pads involving high volume
hydraulically fractured wells, including a characterization of the
hydrology, water chemistry and biological resources of surface waters
and the water chemistry of ground waters.
Requiring the monitoring, tracking, and reporting of water
usage and wastewater treatment and disposal. All wastewaters must be
transported to an approved treatment and disposal facilities.
Well Construction and Operation Procedures: The Commission
principally relies on the states' implementation of state laws,
regulations and programs concerning construction and operation of
natural gas wells, well pads, and appurtenant structures to satisfy the
requirements of the Compact and the Commission's Comprehensive Plan. In
this Article, the Commission is separately requiring that all non-
domestic wastewater be transferred to appropriate tanks for temporary
storage on the well pad site or to a centralized wastewater storage
facility and that fluids and drill cuttings from horizontal wellbores
in the target formation be beneficially reused or disposed of at an
appropriate waste facility.
Wastewater Generated from Natural Gas Activities: Wastewater
produced at natural gas well sites contains salts and other chemicals
that present water treatment challenges. This Article provides that any
wastewater treatment facility within the Basin may accept non-domestic
wastewater from a natural gas development project only if the facility
first obtains approval from the Commission in the form of a docket or
modification of an existing docket.
To obtain authorization, a project sponsor must submit a
treatability study to demonstrate that acceptance of the non-domestic
wastewater will not interfere with the facility's operations, and
provide information to show that the facility's discharge will neither
(a) cause primary and secondary Safe Drinking Water Act standards to be
exceeded where surface water may be used as a public water supply, nor
(b) violate zone-specific stream quality objectives and effluent
limitations. This Article 7 includes a comprehensive tracking system
designed to promote the proper disposal of wastewater from natural gas
development projects.
Approval by Rule (``ABR'') Procedures: Existing procedures for
obtaining a Commission decision on a project application generally take
6-9 months. This Article 7 provides for a streamlined process for
natural gas development projects that demonstrate that they satisfy
certain criteria. It provides Commission approval for these projects
under an ``approval by rule'' process involving public notice,
application to and approval by the Executive Director in a process that
may take less than 30 days Eligible projects include (a) Bulk water
sales for uses related to natural gas by holders of valid Commission
approvals that can provide water within their current allocations; (b)
well pad projects that conform to a Commission-approved Natural Gas
Development Plan; (c) well pad projects that conform to specified
restrictions and setback requirements; and (d) water supply projects
involving the reuse of recovered flowback and production fluids as
make-up water for hydraulically fracturing natural gas wells. In
addition, projects that do not involve fracturing or that consist of
well pads constructed exclusively for the development and operation of
exploratory natural gas wells and that are expected to use no more than
80,000 gallons or equivalent of hydraulic fracturing fluids (``low
volume hydraulically fractured wells'') are eligible for an ABR if they
comply with applicable state programs and Commission setbacks and
requirements. Approval by rule is not available for projects located in
National Park Management Areas or in the watersheds of the New York
City Reservoirs.
Financial Assurance Requirements: Financial assurance for the
plugging, abandonment and restoration of natural gas wells and the
remediation of any pollution from natural gas development activities is
required in the amount of $125,000 per natural gas well. After well
installation and hydraulic fracturing are complete, the Executive
Director may approve a reduction in the amount of the financial
assurance for individual wells if there is no evidence of harm to the
water resources of the Basin and the project sponsor obtains a separate
``excess'' insurance policy or other financial assurance instrument.
Dated: December 23, 2010.
John F. Calkin,
Attorney, Delaware River Basin Commission.
[FR Doc. 2010-32981 Filed 1-3-11; 8:45 am]
BILLING CODE 6360-01-P