The criticism against production of natural gas and oil from shale and tight sands constantly echoes around environmental circles.  It appears the Department of Defense (DOE) has been listening.

ON November 28, 2012, the DOE’s Office of Fossil Energy approved $28 million for fifteen research projects that will attempt to reduce the risks and environmental impacts of drilling in shale and tight sands. 

The projects are valued at $36.6 million and will add value data to the Office of Fossil Energy’s Ultra-Deepwater and Unconventional Natural Gas and Other Petroleum Resources Research Program.  The program seeks to develop technologies and strategies that improve safety for drillers and surrounding communities while reducing environmental footprints at the same time. 

The programs will address four main categories:

·  reduction of environmental damage

·  improvement of water treatment and water handling methods

·  increased understanding of the hydraulic fracturing (fracking) process

·  increased mapping and characterization of underground shale regions

Companies selected by the DOE agreed to an $8.6 million cost-share method to fund the project on top of the $28 million provided by federal funds.  The projects are administered by the Research Partnership to Secure Energy for American (RPSEA) and managed by the Office of Fossil Energy’s National Energy Technology Laboratory. 

The companies and projects are listed below:

GSI Environmental, Inc. in Houston, Texas

“Reducing the Environmental Impact of Gas Shale Development: Advanced Analytical Methods for Air and Stray Gas Emissions and Produced Brine Characterization”

CSI Technologies, Inc. in Houston, Texas

“Development of Methods to Prohibit and Remediate Loss of Annular Isolation in Shale Gas Wells: Prevention and Remediation of Sustained Casing Pressure and Other Isolation Breaches”

University of Texas at Austin

“Relationships Between Induced Seismicity and Fluid Injection: Development of Strategies to Manage Fluid Disposal in Shale Hydrocarbon Plays”

University of Southern California

“Water Handling and Enhanced Productivity from Gas Shales”

Colorado State University

“Development of GIS-Based Tool for Optimized Fluid Management in Shale Operations”

Southern Research Institute in Birmingham, Alabama

“Advanced Treatment of Shale Gas Frac Water to Produce NPDES Quality Water”

Ohio University

“Cost-Effective Treatment of Flowback and Produced Waters Via an Integrated Precipitative Supercritical (IPSC) Process”

Battelle Memorial Institute in Columbus, Ohio

“Development of Subsurface Brine Disposal Framework in the Northern Appalachian Basin”

Drexel University

“Development of Plasma Technology for the Management of Frac/Produced Water”

Colorado School of Mines in Golden, Colorado

“Advancing a Web-Based Tool for Unconventional Natural Gas Development with Focus on Flowback and Produced Water Characterization, Treatment and Beneficial Use”

University of Texas, Bureau of Economic Geology

“Understanding and Managing Environmental Roadblocks to Shale Gas Development: An Analysis of Shallow Gas, NORMs, and Trace Metals”

Oklahoma State University

“Petrophysics and Tight Rock Characterization for the Application of Improved Stimulation and Production Technology in Shale”

Texas A&M University

“Conductivity of Complex Fracturing in Unconventional Shale Reservoirs” and “Fracture Permeability Caused by Shear Slip in Gas Shale Reservoirs”

Gas Technology Institute in Chicago, Illinois

“Advanced Hydraulic Fracturing”

The projects include ways to improve the cleaning of fractured flowback water, ways to improve cement casing underground, and ways to further understand the connection between seismic activity and underground water disposal. 

Source: Department of Energy

On November 29, 2012, the Department of the Interior made a decision that was hailed by several environmental groups and deeply criticized by supporters of the oyster farm.  Secretary Ken Salazar made a decision to end Drakes Bay Oyster Company’s permit at the Point Reyes National Seashore in California. 

The decision will help preserve the land within the park and make sure existing ranching operations are sustainable. 

The National Park Service purchased the area of land in 1972, but there was an oyster operation on the land at the time of purchase.  The National Park Service gave the oyster service rights to continue operations for 40 years.  Drakes Bay Oyster Company purchased the business from the prior owner in 2004, and there was a dispute if the operations should still be shut down by November 30, 2012. 

Secretary Salazar stated: “We’ve undertaken a robust public process to review the matter from all sides, and I have personally visited the park to meet with the company and members of the community.  After careful consideration of the applicable law and policy, I have directed the National Park Service to allow the permit for the Drakes Bay Oyster Company to expire at the end of its current term and to return the Drakes Estero to the state of wilderness that Congress designated for it in 1976.” 

Congress designated the Point Reyes National Seashore as a national park system in 1962 to help protect over 80 miles of coastline in California.  The legislation let the Secretary of the Interior to continue leasing specific areas of the park for dairy and cattle-ranching.

As part of the announcements, Secretary Salazar asked the National Park Service to extend agricultural permits to 20 years instead of 10 years to allow sustainable dairy and ranching activities to continue in designated areas.

The former areas of the Drakes Estero inside the Point Reyes National Seashore will go from a potential to a designated wilderness area.  The Drakes Estero was designated as a potential wilderness area in 1976 by Congress.  The legislation called for the area to automatically become a wilderness areas area commercial operation ceased.

The area is now the only marine wilderness areas on the west coast outside of Alaska. 

Secretary Salazar stated: “Carrying out steps set in motion by the United States Congress over three decades ago, we are taking the final step to recognize this pristine area as wilderness.  The Estero is one of our nation’s crown jewels, and today we are fulfilling the vision to protect this special place for generations to come.” 

Source: Department of the Interior

On November 20, 2012, Governor Tom Corbett in Pennsylvania approved $26.5 million for 198 projects in Pennsylvania.  The projects will improve communities, create new recreation, and aid in the conservation of natural resources. 

Governor Corbett announced the funds at the Coleman Memorial Park in Lebanon.  He stated, “Our Parks are among the things that tie us all together—a place to meet for leisure, for entertainment, for recreation and for tourism.” 

The grants are part of the Community Conservation Partnership Program under the Department of Conservation and Natural Resources (DCNR).  Funding for the program comes from the Keystone Fund.  Portions of the Fund are raised through realty transfer taxes, fees and licenses for ATVs and snowmobiles, and the Environmental Stewardship Fund.  The Keystone Fund also receives federal funding. 

Corbett explained how investment from the Community Conservation Partnership Program will generate more private investment as well.  He stated, “This $26.5 million investment will leverage $43.2 million in local, county and private investments, giving every state dollar more power for the public good.”

Corbett made the announcement in Lebanon because the City of Lebanon is receiving a $225,000 grant for environmentally friendly projects.  The funds will be used to clear all asphalt at the city’s amphitheater.  Additionally, the funds will be used to collect storm water and irrigate the water to playing fields.  Other improvements, such as solar lighting, are made possible with the funds as well.

Some notable projects include the following:

·  rehabilitation of the Mohn Street Intergenerational park in Steelton Borough, Dauphin County

·  addition of over a mile of trail and a pedestrian bridge to connect the Doylestown Bike and Hike System to the Peace Valley Trail located in Bucks County

·  the addition of groomers snow blazers to help maintain about 20-miles of snowmobile trials in the counties of Crawford, Erie, and Warren

·  conservation and headwater protection for 140 acres in Richland Township, Allegheny County

·  $2.3 million for numerous Heritage Areas projects like key gap closures on the Delaware and Lehigh Trail and more

The grants will aid in 49 trail projects and 79 projects to develop or rehabilitate recreational activities, parks, or conservation areas.  The funds will help to protect about 3,238 acres of open space. 

A complete list of all the grants by county can be found on DCNR’s website.  You can also find lists of grants for previous years. 

Source: Pennsylvania Department of Conservation and Natural Resources

On December 3, 2012, the EPA and Department of Justice announced that Owens-Brockway Glass Container Inc based out of Ohio agreed to install new pollution control equipment in order to reduce emissions of nitrogen oxides (NOx), sulfur dioxide (SO2), and particulate matter (PM) by roughly 2,500 tons per year.  The company is required to pay a $1.45 million penalty for violating the Clean Air Act at five of its manufacturing plants.  

Owens-Brockway Glass Container Inc is the largest glass container manufacturer in the United States.

On top of the fines, Owens-Brockway will also spend an estimated $37.5 million in order to reduce NOx, SO2, and PM emissions.  The facilities involved in the settlement are located in Atlanta, Georgia; Clarion, Pennsylvania; Crenshaw, Pennsylvania; Muskogee, Oklahoma; and Waco, Texas.  

Under the terms of the settlement, Owens-Brockway is also required to spend $200,000 to reduce excess emissions around the plant in Atlanta as well.  The company will work with the Georgia Retrofit Program to reduce diesel emissions from school buses and fleet vehicles by placing controls on the vehicles or buying hybrid vehicles or vehicles that run on natural gas or propane.  

Ignacia S. Moreno, the assistant attorney general with the Justice Department’s Environment and Natural Resources Division, stated: “The settlement, the latest in a series of agreements with the glass manufacturing sector, addresses major sources of pollution at facilities located in four states and will mean cleaner air for the people living in those communities.”  

NOx, SO2, and PM are the three main pollutants that occur at glass plants.  NOx and SO2 increase ground-level amounts of ozone and cause acid rain.  The rain can hurt land and aquatic ecosystems, and the chemicals can irritate the lungs and worsen existing heart and lung conditions.  PM is made up of sharp microscopic particles that can enter the lungs and lead to breathing problems, coughing, decreased lung function, and even death in some cases.  

Cynthia Giles, the assistant administrator with the EPA’s Office of Enforcement and Compliant Assurance, stated: “The pollution controls required by today’s settlement will significantly reduce emissions that can impact residents’ health and local environment in communities located near glass manufacturing plants.  These new pollution controls will improve air quality and protect communities from Georgia to Texas from emissions that can lead to respiratory illnesses, smog and acid rain.”  

Reducing emissions from glass manufacturing plants has been a priority in the EPA’s National Enforcement Initiatives from 2011 to 2013.  This case is the fourth settlement under the National Glass Manufacturing Plant Initiative.  

Source: Environmental Protection Agency

On November 13, 2012, the Department of Justice announced that the EPA reached an agreement with Yuan Cheng International Group Inc (YCIG) and NST Inc (NST).  Both of the companies are located in Montclair, California and import street motorcycles, recreational vehicles, and small engines.  

The companies admitted to allegations that they imported a total of 17,521 vehicles and engines from 2006 to 2011 that did not meet requirements under the Clean Air Act.  The vehicles and engines were never certified by the EPA and potentially leaked large amounts of emissions and large amounts of carbon monoxide.  

John Cheng and Jenny Yu, both executives for YCIG, agreed to pay a civil penalty of $50,000, and NST agreed earlier to pay $250,000. Both of the companies have stopped importing vehicles and engines, and both of the companies are now dissolved.  

Mr. Cheng and Ms. Yu have agreed to comply with the EPA before any possible future importing, distributing, or selling of any products under the Clean Air Act.  If either defendant decides to form a similar business, they must notify the EPA before they form the U.S. business entity.  

Mr. Cheng and Ms. Yu are also subject to additional penalties in the future.  They could pay up to 25,000 for each vehicle imported, and they could pay $5,000 per day if they do not notify the EPA of any future business transactions under the Clean Air Act.  

Ignacia S. Moreno, Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division, stated: “By holding individuals personally accountable under the consent decree, this settlement shows not only that we will pursue companies who violate the law, but where appropriate, will take additional measures to ensure that individual executives who act on behalf of companies cannot repeat the same conduct under a new corporate identity.”

Source: U.S. Department of Justice

On November 13, 2012, the Department of Justice announced that Roquette America, Inc agreed to pay $4,100,000 million in penalties after it violated the Clean Water Act and its National Pollutant Discharge Elimination System (NPDES) permit.  The violations occurred in Keokuk, Iowa.  The settlement was announced by the Justice Department and EPA.  

The Justice Department reports that Roquette knew their wastewater treatment plant could not adequately address spills or handle a loading surge.  The company should have constructed more storage structures in case of surges of wastewater and routed spills to the treatment plant.  The company failed to take any measures and instead discharged the waste directly into Soap Creek and the Mississippi River.  

The wastewater facility violated its NPDES permit 1,174 times.  Additionally, there were at least 30 instances of illegal discharging into storm drains and one instance of directly discharging 250,000 of wastewater into the Mississippi River and Soap Creek.  The facility received multiple notices of violation from the Iowa Department of Natural Resources starting in 2000, but the company failed to take appropriate measures anyway.  

Apart from the penalty, Roquette is also ordered to conduct multiple surveys of discharge locations, modify sewers, make improvements to their wastewater treatment plant, and improve monitoring.  The additional requirements are estimated to cost the company $17 million.  The company is also required to undergo multiple audits of its treatment plant, its Storm Water Pollution Prevention Program, its NPDES permits, and more.  

EPA Region 7 Administrator Karl Brooks stated, “The magnitude of these violations warrants the magnitude of the penalty.  The Mississippi River is a vital waterway, used by millions of Americans for commerce, recreation and drinking water.  It is imperative that industrial facilities abide by their discharge permits to protect our valuable water resources.”

Source: U.S. Department of Justice
 

On November 19, 2012, the International Energy Agency (IEA) praised Australia for setting goals toward a low-carbon economy, but the IEA warns that such a plan will require a huge amount of economic and non-economic investment. 

IEA Executive Director Maria van der Hoeven stated: “Australia has taken many positive steps since the last in-depth review in 2006.  The IEA strongly supports Australia’s continuing efforts to increase and improve low-carbon energy in the country.”

Australia is a huge producer of coal and natural gas and stands as the ninth-largest energy producer in the world.  Australia is only one of three countries part of the Organization for Economic Cooperation and Development (OECD) that qualify as a net energy exporter.  Additionally, Australia has invested heavily in wind, solar, and geothermal resources, and projects have addressed biomass and ocean energy resources in recent years as well.

Australia has begun to convert to an economy with clean-energy, but the IEA states the shift will prove difficult. 

The IEA predicts the transition to a clean-energy economy will be extremely expensive even though Australia has a large amount of resources.  The country will need to invest largely in new technology and make sure there are enough qualified workers to conduct research, manufacture, and install new technologies.  The IEA recommends that the government in Australia promote education and training for the growing technology fields and even recruit workers from overseas. 

Apart from investing in new technologies, Australia has also made strong commitments to regulating the capture and storage of carbon.  The country has also introduced prices for certain amounts of released carbon. 

Van der Hoeven praised the pricing of carbon but stated more measures are necessary:  “The IEA views carbon pricing as a critical component of climate policy, and we hope its introduction in Australia will put an end to much uncertainty in the energy sector.  But even with a carbon price, Australia will need supplementary policies, like energy-efficiency policies to unlock low‐cost abatement and technology policies to help lower the long-term cost of new technologies, including renewable energy and carbon capture and storage.”

In light of all the clean-energy transitioning, the IEA did show concern over Australia’s stock of oil.  The IEA requires oil stocks to equal, at minimum, 90 days of imported oil.  Australia has taken steps to address its low stocks of oil, but the IEA has put increasing pressure on Australia to become compliant with stock level requirements. 

Source: International Energy Agency