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Pennsylvania Drilling Trends in 2018

With the new year underway, it’s an opportune moment to reflect on the state of unconventional oil and gas extraction in Pennsylvania and examine a few of the drilling trends. A logical place to start is looking at the new wells drilled in 2018.

As always, but perhaps even more so than in previous years, unconventional drilling in Pennsylvania is a tale of two shale plays, with hotspots in the southwestern and northeastern corners of the state. The northeastern hotspot seems to be extending westward, including 25 new wells in Jones Township in Elk County (an area shown in dark red near the “St Marys” label on the map). In the southwestern hotspot, the industry continues to encircle Allegheny County, closing in on the City of Pittsburgh like a constrictor.

Screen shot showing spud report for Indiana Township, Allegheny County from 1/1/2017 through 1/4/2019. We suspect these spud dates of 11/29/17 and 11/30/17 are incorrect.

Screen shot showing spud report for Indiana Township, Allegheny County from 1/1/2017 through 1/4/2019. We suspect these spud dates of 11/29/17 and 11/30/17 are incorrect.

Data error? As Pittsburgh-area residents reflect on the past year, some of them must be wondering why a new well pad in Indiana Township, just northeast of the city isn’t shown on the map above. The answer is that the data the Department of Environmental Protection (DEP) has for these wells indicate they were drilled November 29-3o, 2017, although we believe this to be incorrect. FracTracker obtained the data from the Spud Report on January 2, 2019, which indicates seven wells spudded in that two day span on the “Miller Jr. 10602” well pad. This activity drew considerable opposition from families in the Fox Chapel School district in May of 2018, and was therefore widely reported on by the media. An article published on WESA indicates an expected drill date of July 2018, for example.

It turns out the new year is also a good time to remember that our understanding of the oil and gas industry around us is shaped, molded, and limited by the availability and quality of the data. We brought the Indiana Township data error to the attention of DEP, which only confirmed that the operator (Range Resources) entered the spud dates into the DEP’s online system. Perhaps these well were drilled in November of 2018 not 2017? There is even a possibility these wells have yet to be drilled.

Here are a few more dissections of the data, such as it is:

Graph of unconventional (fracking) wells drilled in PA, YTD - Drilling trends

Figure 1: Unconventional wells drilled in PA by year: 2005 to 2018

Wells Drilled Over Time

Barring more widespread data issues, the status of a handful of wells in Indiana Township does not have much of an impact on the overall trend of drilling in the state. There were 779 wells on the report, representing just under 40% of the total from the peak year of 2011, when industry drilled 1,958 wells. The year 2019 was the fourth year in a row where the industry failed to drill 1,000 wells, averaging 719 per year over that span. In contrast, the five years between 2010 and 2014 saw an average of 1,497 wells per year, more than twice the more recent average. As mentioned in our Hazy Future report, projections based on very aggressive drilling patterns are already proving to be out of phase with reality, although petrochemical commodity markets might change drastically in the coming decades.

How long before wells are plugged?

We also like to periodically check to see how long these wells stay in service. In Pennsylvania, there are two relevant well statuses worth following: plugged and regulatory inactive. While there are a number of conditions that characterize regulatory inactive wells, they are essentially drilled wells that are not currently in production, but may have “future utility.” Therefore, the wells are not required to be permanently plugged at this time.

Unconventional wells drilled since 2005 in PA - Drilling trends

Figure 2: This chart shows the percentage of unconventional wells drilled since 2005 with a plugged or regulatory inactive status as of December 31, 2018.

In order to understand some of the finer points, it’s best to use Figure 1 (above) in conjunction with Figure 2. We can see that most of the wells drilled in the initial years of the Marcellus boom have already been plugged, although Figure 1 shows us that the sample size is fairly low for these years. In 2005, for example, 7 of the 9 (78%) unconventional wells drilled in the state that year are already plugged. The following year, 24 of the 37 (65%) wells drilled are now plugged, and an additional 4 (11%) wells have a regulatory inactive status as of the end of 2018. The following year, the combined plugged and inactive wells account for just over 50% of the 113 wells drilled that year, and this trend continues along a fairly predictable curve. An exception is the noticeable bump around the most active drilling years of 2010 and 2011, where there are slightly more wells with a plugged or inactive status than might be expected. It is interesting to note that even the most recent wells are not immune to being plugged, including 8 plugged wells and 4 inactive wells drilled in 2018 that were not able to get past their very first year in production.

Overall, of the 11,675 drilled wells accounted for on this graphic, 851 (7%) are plugged already, with an additional 572 (5%) of wells with an inactive status.  Unconventional wells that are 11 years old have a roughly 50% chance of being plugged or inactive, and we would therefore expect to see the number of these wells skyrocket in the coming years before leveling off, roughly mirroring the drilling boom and subsequent slowdown of Marcellus Shale extraction in Pennsylvania.

Conclusions

Many factors contribute to fluctuations in drilling trends for the Marcellus Shale and other unconventional wells in Pennsylvania. Very cold winters result in high consumption by residential and commercial users. New gas-fired power plants can increase the demand for additional drilling. Recessions and economic conditions are known to reduce the demand for energy as well, and drillers’ heavy debt burdens can slow down operations appreciably. Additionally, other fossil fuel and renewable energy sources compete with one another, altering the market conditions even further. And finally, every oil and gas play eventually reaches a point where the expected results from new wells are not worth the money required to get the hydrocarbons to the surface, and unconventional wells are much more expensive to develop than more traditional operations.

Because of all of these variables, month to month or even year to year fluctuations are not necessarily that telling.  On the other hand, a four-year period where drilling is roughly half of previous extraction is significant, and can’t be easily dismissed as a blip in the data.


By Matt Kelso, Manager of Data and Technology, FracTracker Alliance

High Impact Areas and Donut Holes - Variability in PA's Unconventional O&G Industry map

High Impact Areas and Donut Holes – A Look at Unconventional O&G Activity in PA

FracTracker Alliance has been mapping the impacts of unconventional oil and gas (O&G) drilling activity in Pennsylvania since 2010, and the Pennsylvania Shale Viewer is our most complete map to show the impacts of the industry.

While it can rightly be said that the development of the Marcellus Shale and other unconventional formations have affected half the state since 2005, this analysis takes a look at high impact areas, as well as a closer look at areas that have been avoided so far.


By Matt Kelso, Manager of Data and Technology, FracTracker Alliance

Changes to PA Maps feature image

Recent Changes to Pennsylvania Maps

Recently, the Pennsylvania Department of Environmental Protection (DEP) started to offer additional data resources with the introduction of the Open Data Portal. This development, along with the continued evolution of the ArcGIS Online mapping platform that we utilize has enabled some recent enhancements in our mapping of Pennsylvania oil and gas infrastructure. We’ve made changes to the existing Pennsylvania Shale Viewer for unconventional wells, and created a Conventional and Historical Wells in Pennsylvania map.

Unconventional Wells

Rather than defining the newer, industrial-scaled oil and gas wells by specific geological formations, configuration of the well, or the amount of fluid injected into the ground during the hydraulic fracturing process, Pennsylvania’s primary classification is based on whether or not they are considered to be unconventional.

Unconventional Wells – An unconventional gas well is a bore hole drilled or being drilled for the purpose of or to be used for the production of natural gas from an unconventional formation. An unconventional formation is defined as a geologic shale formation below the base of the Elk Sandstone or its geologic equivalent where natural gas generally cannot be produced except by horizontal or vertical well bores stimulated by hydraulic fracturing.

PA Shale Viewer (Unconventional Drilling)

View map fullscreen | How FracTracker maps work

The previous structure of the PA Shale Viewer had separate layers for permits, drilled wells, and violations. This version replaces the first two layers with a single layer of unconventional locations, which we have called “Unconventional Wells and Permits” for the sake of clarity. The violations layer appears in the same format as before. When users are zoomed out, they will see generalized layers showing the overall location of O&G infrastructure and violations in the state, which were formed by creating a one mile buffer around these features. As users zoom in, the generalized layers are then replaced with point data showing the specific wells and violations. At this point, users can click on individual points and learn more about the features they see on the map.

PA Shale Viewer Zoomed In

Figure 1. PA Shale Viewer zoomed in to see individual wells by status

O&G locations are displayed by their well status, as of the time that FracTracker processed the data, including: Abandoned, Active, Operator Reported Not Drilled, Plugged OG Well, Proposed but Never Materialized, and Regulatory Inactive Status. Note that just because a well is classified as Active does not mean that it has been drilled, or even necessarily permitted. These milestones, along with whether or not it has been plugged, can be determined by looking for entries in the permit issue date, spud date, and plug date entries in the well’s popup box.

Conventional and Historical Wells

The map below shows known conventional wells in Pennsylvania along with additional well locations that were digitized from historical mining maps.

Conventional Oil and Gas Wells Map

View map fullscreen | How FracTracker maps work

Although there are over 19,000 unconventional oil and gas locations in Pennsylvania, this figure amounts to just 11% of the total number of wells in the state that the DEP has location data for, the rest being classified as conventional wells. Furthermore, in a state that has been drilling for oil and gas since before the Civil War, there could be up to 750,000 abandoned wells statewide.

The DEP has been able to find the location of over 30,000 of these historical wells by digitizing records from old paper mining maps. This layer has records for 16 different counties, but well over half of these wells are in just three counties – Allegheny, Butler, and Washington. It looks like it would take a lot more work to digitize these historical wells throughout the rest of the state, but even when that happens, we will probably still not know where the majority of the old oil and gas wells in the state are located.


By Matt Kelso, Manager of Data & Technology

Approaching 10K Unconventional Wells in PA

Approaching 10K Unconventional Wells in PA

By Matt Kelso, Manager of Data & Technology

Each state has its own definition of what it means for an oil or gas well to be “fracked.” In Pennsylvania, these wells are known as “unconventional,” a definition mostly based on the depth of the target formation:

An unconventional gas well is a well that is drilled into an unconventional formation, which is defined as a geologic shale formation below the base of the Elk Sandstone or its geologic equivalent where natural gas generally cannot be produced except by horizontal or vertical well bores stimulated by hydraulic fracturing.

The count of these unconventional wells in PA stands at 9,760 as of June 14, 2016. Their distribution is widespread across the state, but is particularly focused in the northeast and southwest corners of Pennsylvania.

Unconventional oil and gas wells in Pennsylvania:

View map full screen | How FracTracker maps work

Wells Drilled

The industry is not drilling at the same torrid pace as it was between 2010 and 2012, however. The busiest month for drill rigs in the Keystone State was August 2011, with 210 unconventional wells drilled. Last month, there were just 32 such wells.

Unconventional wells in PA: Unconventional oil and gas permits, wells, and violations in Pennsylvania by quarter. Data source: Pennsylvania DEP

Figure 1. Unconventional oil and gas permits, wells, and violations in Pennsylvania by quarter. Data source: Pennsylvania DEP

Permits

As Figure 1 captures, the number of permits issued per quarter is always greater than the number of wells drilled during the same time period. Even when drilling activity seems to be entering a bust phase, oil and gas operators continue to plan for future development. Altogether, there are 17,492 permitted locations, meaning there are about 7,700 permitted locations where drilling has not yet commenced.

Violations

The number of violations issued by DEP is generally follows the same trends as permits and wells. It is usually the smallest of the three numbers. In the first quarter of 2016, however, is one of a few instances on the chart above where the number of violations issued outpaced wells drilled. There could be any number of reasons for this anomaly; it could have been due to to unusual compliance issued in the field or aggressive regulatory blitzes. It could also be due to some other factor that can’t be determined by the available published data source.

Interestingly, this phenomenon has not occurred since the first quarter of 2010, when the industry was in full swing.

About VpW

One of the best ways to understand the impact of the industry is to look at violations per well (VpW). Unfortunately, there are a number of important caveats to that discussion. First of all, not all items that appear on the compliance report receive their own Violation ID number. It is clear from the DEP workload report that violations are tallied internally by the number of Violation ID numbers. This is as opposed to the number of items on the compliance report. As of June 14, 2016, there were 6,706 rows of data and 5,755 distinct Violation ID numbers that were issued to 2,080 different oil and gas wells. This discrepancy means that about 21% of unconventional wells are issued violations in Pennsylvania. Those that are cited receive an average of 2.8 to 3.2 violations per well, depending on how you count them.

Unconventional Wells in PA: Violations per well (VpW) of the 20 companies with the most unconventional wells in PA.

Table 1. Violations per well (VpW) of the 20 companies with the most unconventional wells in PA.

Determining the violations per well by operator comes with additional caveats. The drilled wells data comes from the spud report, which lists the current operator of each of the wells. The compliance report, however, lists the operator that was in charge of the well at the time of the infraction. This poses a problem for analysis, however. The ownership of the wells is quite fluid when taken in aggregate, as companies fold, are bought out, or change their names to something else.

VpW Results

We calculated VpW figures for the 20 operators with the largest inventory of drilled wells wells in Pennsylvania, found in Table 1. In some instances, we were able to reunite operators with violations that were issued under a different name but are in fact the same company. Specifically, we combined Rex Energy’s violations with RE Gas Dev, CONSOL violations with CNX, and Southwestern with SWN Productions, as the company is now known.

SWN’s violation-per-well score appears to be quite low. Their statistic, however, does not take into account wells that it purchased from Chesapeake in 2014, for example. In this transaction, 435 wells changed hands, with an unknown number of those in Pennsylvania. Any violations on these wells that Chesapeake had would stay with that company even as their well count was reduced. Such a change would thereby artificially inflate Chesapeake’s VpW score. On the other hand, SWN is now in possession of a number of wells which might have been problematic during the early stages of operation. Those violations, alternatively, are not associated with SWN, making their inventory of wells appear to be less problematic.

Data Caveats and Takeaways

Alas, we do not live in a world of perfect data. As such, these results must be taken with a grain of salt. Still, we can see that there are some trends that persist among operators that have been active in Pennsylvania for many years. Chief, Cabon, and EXCO, for example, all average more than one violation per well drilled. Chevron, CNX, and RE Gas Development, on the other hand, have much better rates of compliance, on the order of one violation per every five wells drilled.

Unconventional Drilling Activity Down In Pennsylvania

By Matt Kelso, Manager of Data & Technology

Wells Spudded (Drilled)

The number of newly drilled unconventional wells in Pennsylvania peaked in 2011.

Figure 1: Newly drilled unconventional wells in Pennsylvania peaked in 2011.

Unconventional oil and gas drilling is well established in Pennsylvania, with over 9,200 drilled wells, an additional 7,200 permitted locations that have not yet been drilled, and 5,300 violations all happening since the turn of the millennium. It took a while for the industry to gather steam, with just one unconventional well drilled in 2002, and only eight in 2005. But by 2010, that figure had ballooned to 1,599 wells, which was greater than the previous eight years combined. There were 1,956 wells drilled in 2011, representing the peak for unconventional drilling activity in Pennsylvania (Figure 1).

None of the three full years since then, however, have seen more than 70% of the 2011 total. Halfway through 2015, the industry is on pace to drill only 842 unconventional wells statewide, which would be the lowest total since 2009, and only 43% of the 2011 total.


Pennsylvania Shale Viewer. Click here to access the full screen view with a legend, layer details, and other tools.

Taken cumulatively, the footprint on the state is immense, as is shown in the map above, and impacts remain for some time. Of Pennsylvania’s 9,234 unconventional wells 8,187 (89%) are still active. Only 474 wells have been permanently plugged so far, with 570 given an inactive status, and one well listed as “proposed but never materialized,” despite being included on the spud report.

Permits & Violations

The number of permits and violations issued have been declining over the past five years as well.

Five years of unconventional oil and gas activity in Pennsylvania, July 2010 through June 2015.

Figure 2: Five years of unconventional oil and gas activity in Pennsylvania, July 2010 through June 2015.

Figure 2 shows the monthly totals of permits, wells, and violations over the last 60 months. Linear trendlines were added to the chart to give a visual representation of changes over time if we ignore the noise of the peaks and troughs of activity, which is an inherent attribute of the industry. Each of the three trendlines has a negative slope1, showing downward trends in each category.

In fact, permits for new wells are declining more rapidly than the drilled wells, and violations issued are declining at a still faster rate. Over the course of five years, these declines are substantial. In July 2010, the smoothed totals that are “predicted” by the trendline show 304 permits issued, 159 wells drilled, and 128 violations issued per month.  60 months later, one would expect 213 permits, 81 wells drilled, and just 12 violations issued2.

Location of Drilling Activity

The oil and gas industry has been more selective about where unconventional wells are being drilled in recent years, as well. Altogether, there are unconventional wells in 39 different counties, with 32 counties seeing action in both 2010 and 2011. That number is down to 22 for both 2014 and the first half of 2015. There has been drilling in 443 different municipalities since 2002, with a maximum of 241 municipal regions in 2011, which shrank to 161 last year, and just 88 in the first half of 2015.


Summary of unconventional wells drilled in each Pennsylvania county by year, through June 30, 2015. Click here to access the full screen view with a legend, layer details, and other tools

Clicking on any of the counties above will show the number of unconventional wells drilled in that county by year since the first unconventional well was spudded in Pennsylvania back in 2002.  The color scheme shows the year that the maximum number of unconventional wells were drilled in each county, with blues, greens, and yellows showing counties where the activity has already peaked, oranges showing a peak in 2014, and red showing a peak in 2015, despite only six months of activity.  30 of the 39 counties with unconventional wells in the state saw a peak in activity in 2013 or before.

Notes

  1. The equations for the three trendlines are as follows:
    • Permits: y = -1.5128x + 303.81
    • Wells: y = -1.2939x + 158.95
    • Violations: y = -1.9334x + 127.53
  2. The lowest actual value for each category are as follows:
    • Permits: 117, in July 2012
    • Wells: 43, in February 2015
    • Violations: 16, in August 2014.
Conventional and unconventional wells in PA

Over 1.2 Million Pennsylvanians Within 1/2 Mile of a Well

Aging well in McKean County, PA. Source: saveourstreamspa.org

One of the potentially troubling aspects of oil and gas development is that there are usually people who live in the vicinity of the wells. Pennsylvania now has over 8,000 active unconventional wells; there are any number of issues that can occur with these modern, industrial-scale sites, including road degradation, contaminated water, and health impacts, among others. In addition, there are over 93,000 of the smaller, conventional wells in operation throughout the Commonwealth. While these garner far less attention than their unconventional counterparts, they are also prone to producing similar impacts, not to mention that since many of them are older wells, they not only have potentially been subject to deterioration and occasional neglect, but were constructed during a period with less stringent requirements than are currently expected.

Petroleum engineers are now capable of drilling horizontally for tens of thousands of feet. For the most part, however, this technology is employed to maximize production, rather than to ameliorate impacts on people who live near the product. But who are these people? To help to answer this question, the FracTracker Alliance calculated the number of people living in a half-mile radius around active wells in the state.

More than 1.2 million Pennsylvanians live within the impact area.

Of the 93,754 wells that have been drilled in the state since 1950 that have not yet been plugged, the Pennsylvania DEP only has location data for 79,118 of them. All but one of the 14,636 missing locations are for wells that are categorized as Conventional. While one must presume that there is some overlap in coverage within the half-mile zone, the extent of this region – and therefore the population that lives within it – cannot be determined.


Fig. 1. PA Populations Near Oil and Gas Wells. Click here to access written description and additional map tools.

To maximize the reliability of our calculations, this map was created using a custom Albers equal-area projection centered on Pennsylvania. A half-mile buffer around each well type was created, and the resulting layer was clipped to Census tract data. The ratio of the smaller clipped area to the full Census tract area was calculated, and that ratio was then multiplied by the population totals from the 2010 Census to obtain our population estimates of the half-mile zone. The area in the study area is larger than six states, while the calculated population is larger than that of eight states.

Of the 79,118 active oil and gas wells in PA for which location data are available, we determined the area and estimated the population within a half mile radius. Note that some regions are with a half-mile of both conventional and unconventional wells.

Fig. 2. Number of people in PA near oil and gas wells (79,118 active wells for which location data are available). Note that some regions are with a half-mile of both conventional and unconventional wells.

The county most impacted, in terms of area, for unconventional wells is Bradford, with 353 square miles (See Figure 2). Washington County had the most people living in the zone, however, with 20,566. For conventional wells, the drilling landscape is the largest in Indiana County, affecting 761 square miles, while Erie County has the most people in the half-mile zone, with 212,900. When considering all wells together, the numbers are almost identical to conventional wells. Indiana County leads with 762 square miles, while the drill zone in Erie County represents 211,903 people, or 76% of the county’s population in 2010.

Violations per Well Among PA Operators

Note

This post has been archived. It is provided here for informational purposes only.

People often want to know which operators perform the best (or worst) among their peers in terms of adhering to the laws set forth in a given state. In principle, the easiest metric for determining this is to look at the ratio of violations issued per well, or VpW.

However, in order to make that analysis, we would obviously need to have violations data. Unfortunately, out of the twenty states that we have shale viewers for on FracMapper, we only have violations data for Arkansas, Colorado, and Pennsylvania, with the latter being far and away more robust and complete when compared to the other two. We have been told that the data is also available for North Dakota as well, if we are willing to pay for it, so we might be able to perform a VpW analysis for the Peace Garden State in the near future.

Then, of course, there is the realization that, “What is a violation?” is actually somewhat of a philosophical question in Pennsylvania.  In the past, I’ve determined that the Pennsylvania Department of Environmental Protection (PADEP) uses the number of unique violation ID numbers issued to calculate their totals. However, historically, the department would often lump several issues that showed up on the Compliance Report together under the same violation ID.  Others have taken to looking at Notices of Violations (NOV’s), which are more limited in number.  Still others exclude any violations marked as being administrative in nature, an idea that makes sense superficially, but a closer look at the data shows that the label is extremely misleading.  For example, “Pits and tanks not constructed with sufficient capacity to contain pollutional substances” is an administrative violation, as is, “Improper casing to protect fresh groundwater”.

In addition to all of that, the cast of operators is constantly shifting as new operators come on board, old ones get bought out by rivals, joint ventures are formed between them, and the like.  Sometimes a parent company will shift the active operator status to one of its subsidiaries, so wells that were originally Consol will then be listed under CNX, for example.

In terms of violations per well, there is a further complication, in that all of the drilled wells data reflect the current custodians of the wells, whereas the violations data reflect those that received the violations.  The result is that there are records issued for Turm Oil (really!) for wells where Chesapeake is now listed as the operator.  In some respects, this makes sense:  why should Chesapeake carry the burden of the legacy mistakes of Turm in their compliance record?

But it does make analysis somewhat tricky.  My approach has been to combine operators that are obviously the same parent company, and to do the analysis in several different ways, and over different time frames.  Who’s ready for some numbers?

Violations per Well (VpW) for operators of unconventional wells in Pennsylvania with 50 or more wells. Those operators with scores higher than the average of their peers are highlighted in pink.

Violations per Well (VpW) for operators of unconventional wells in Pennsylvania with 50 or more wells. Those operators with scores higher than the average of their peers are highlighted in pink.

Here, violations per well are based on the number of violation ID’s issued, where as NOVpW is based on the number of Notices of Violations.  The date range for this table is from January 1, 2000 through October 21, 2013, and please note that the totals represent those that are included on the chart, not statewide totals.  A lot of violations are lost of the shuffle when we look at only the largest current operators, but it also helps eliminate some of the noise that can be generated with small sample sizes, as well as with the inconsistencies described above.  Here’s a look at data from this year:

Violations per Well (VpW) for operators with unconventional wells in Pennsylvania in 2013, through October 21. Those operators with scores higher than the average of their peers are highlighted in pink.

Violations per Well (VpW) for operators with unconventional wells in Pennsylvania in 2013, through October 21. Those operators with scores higher than on violation per well or NOV per well are highlighted in pink.

Notice that the highest violations per well and notices of violations per well scores are much higher than the data aggregated since 2000, whereas the statewide averages of the two scores are actually much lower.  The former is almost certainly attributable to having a smaller sample size, but there is something else at play with the latter:

Violations per well of Pennsylvania's unconventional wells. 2013 data through 10/21/2013.

Violations per well of Pennsylvania’s unconventional wells. 2013 data through 10/21/2013.

The number of violations per well drilled has been steadily decreasing since 2009, and it is now down to an average of less than one violation issued per every two wells.  There is nothing in the data that indicates why this is the case, however.

Note:  This post was edited on 12/18/2013.  The table showing operators violations per well and NOV’s per well in 2013 originally stated that that values higher than the average of their peers are highlighted in pink.  In fact, only those with values of 1.00 or higher are highlighted in that fashion.

Keeping Track of Hydraulic Fracturing in California

By Kyle Ferrar, CA Program Coordinator, FracTracker Alliance

Environmental regulations in California are considered conservative by most state standards. To name a few practices, the state has developed an air quality review board that conducts independent toxicological assessments on a level competitive with the U.S. EPA, and the state instituted the U.S.’s first green house gas cap and trade program. But most recently the California Department of Conservation’s Division of Oil, Gas and Geothermal Resources (DOGGR) has been criticized in the media for its lack of monitoring of hydraulic fracturing activity. DOGGR has been responsive to criticism and preemptive of legislative action and has begun a full review of all well-sites in California to identify which wells have been hydraulically fractured and plan to monitor future hydraulic fracturing. Additionally they have maintained historical records of all wells drilled, plugged, and abandoned in the state in web-accessible databases, which include data for oil and gas, geothermal, and injection wells, as well as other types of support wells such as pressure maintenance, steam flood etc.. The data is also viewable in map format on the DOGGR’s online mapping system (DOMS).

To understand what is missing from the DOGGR dataset, it was compared to the dataset extracted from FracFocus.org by SkyTruth. The map “Hydraulic Fracturing in California” compares these two datasets, which can be viewed individually or together as one dataset with duplicates removed. It is interesting to note the SkyTruth dataset categorizes 237 wells as hydraulically fractured that DOGGR does not, and identifies three wells (API #’s 11112215, 23727206, and 10120788) not identified in the DOGGR database. For the some of these 237 wells, DOGGR identifies them as new, which means they were recently drilled and hydraulically fractured and DOGGR will be updating their database. Many are identified as active oil and gas wells., while the rest are identified as well types other than oil and gas. Also the SkyTruth dataset from FracFocus data contains additional information about each well-site, which DOGGR does not provide. This includes volumes of water used for hydraulic fracturing and the fracture date, both of which are vital pieces of monitoring information.

The California State Legislature is currently reviewing California Senate Bill 4 (CA SB 4) written by Sen. Fran Pavley (D-Agoura Hills), which would put in place a regulatory structure for permitting and monitoring hydraulic fracturing and other activity.  A caveat for acidification is also included that would require companies to obtain a specific permit from the state before acidizing a well.  The bill has received criticism from both industry and environmentalists.  While it does not call for a moratorium or regulate what chemicals are used, it is the first legislation that requires a full disclosure of all hydraulic fracturing fluid additives, including those considered proprietary.  This is the last of at least seven bills on the issue, the majority of which have been turned down by lawmakers. The most conservative bills (Assemblywoman Mitchell; D-Culver City) proposed moratoriums on hydraulic fracturing in the state. Earlier this year lawmakers approved a bill (Sen. Pavley; D-Agoura Hills) that would direct the state to complete and independent scientific risk assessment of hydraulic fracturing. The bill directs permitters to deny permits if the study is not finished by January 1, 2015, and also requires public notice before drilling as well as disclosure of chemicals (besides those considered proprietary). In May, a bill (Sen. Wold; D-Davis) was passed requiring drillers to file a $100,000 indemnity bond for each well, with an optional blanket indemnity bond of $5 million for operators with over 20 wells. Another bill (Jackson; D-Santa Barbara) that would require monitoring of both transportation and disposal of wastewater was tabled until next year.

Although hydraulic fracturing has been conducted in California for over a decade, it was not monitored or regulated, and the majority of Californians were not aware of it. Industry groups have portrayed the lack of attention as a testament to its environmental neutrality, but Californians living smack dab in the middle of the drilling tend to tell a different story. The issue is now receiving attention because hydraulic fracturing is such a hotbed topic of contention, along with the potential future of the billions of barrels of oil in the Monterey Shale. The unconventional extraction technology necessary to recover the oil from these deep shale formations is state of the art, which means it is not tried and true. The methods include a combination of high tech approaches, such as horizontal drilling, high volume hydraulic fracturing, and acidification to name a few. Realize: if this technology existed for the last 60 years, the Monterey Shale would already have been developed long ago, along with the rest of the U.S. deep shale formations.