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Opprtunity fr Public Participatin Pennsylvania Envirnmental Quality Bard Prpsed Regulatins fr Oil and Gas Well Casing and Cementing (Amendments t Chapter 78) Plain Language Summary In this dcument, the wrds rules and regulatins have the same meaning. New regulatins are prpsed. These new regulatins will update existing rules fr drilling, casing, cementing, testing, mnitring, and plugging f il and gas wells. The new regulatins will als update rules fr prtecting public and private water supplies. Please lk at the attached diagram and definitins which will help clarify this summary. Backgrund Infrmatin Prper casing and cementing f il and gas wells is very imprtant t prtect water supplies and imprve public safety. Many f the existing regulatins n gas well cnstructin and water supply replacement were created in July 1989 and, fr the mst part, have nt been changed. The Pennsylvania Department f Envirnmental Prtectin (DEP) evaluated the existing regulatins because f new drilling and cnstructin practices fr Marcellus Shale wells. There have als been incidents with Marcellus wells that affected drinking water supplies. Current rules d nt prvide enugh details n safely casing and cementing wells. Als, existing rules d nt address the need fr an immediate respnse by peratrs t a gas leak cmplaint. And, they d nt require peratrs t inspect wells regularly. DEP shared the initial draft f the prpsed regulatins with cmpanies and envirnmental grups. We received many cmments n hw t imprve water quality and the quantity f replacement water supplies. Other cmments were related t the practices cmmnly used t cement and case wells. Since mst gas leaks are caused by prly cemented casing, DEP decided t address this issue quickly, in rder t add anther layer f prtectin t public health and the envirnment. Addressing this issue nw will prtect public health and the quality f drinking water. DEP als received cmments n many ther imprtant envirnmental cncerns related t il and gas wells, and these cncerns will be addressed at a future rund f rulemaking. What is Gas Migratin r Stray Natural Gas Migratin? In imprperly perated, prly cnstructed r deterirated wells, natural gas may mve frm the wellbre. This is called gas migratin. Migrating gas can affect water supplies, as well as ptentially accumulate inside r next t structures such as residences, businesses and farming peratins. This culd create a risk f a fire r explsin. Gas migratin may becme a threat t the health, safety and welfare f the public.

What is Casing and Cementing? Casing is a steel pipe inserted in the well t keep gas r il in the well. It is made ut f a series f metal tubes installed in the newly drilled hle. Cementing is the practice f pumping cement dwn between the casing and the wellbre wall t hld it in place and prevent gas frm leaking. What are the Prpsed New Rules? The prpsed changes will add new rules related t: Casing and Cementing Reprting requirements fr design, cnstructin, peratin, mnitring, plugging, water supply replacement, and gas migratin New material specificatins Blw-ut preventin Perfrmance testing The new rules will reduce gas migratin and prvide mre prtectin fr bth public and private water supplies. Prperly cementing and casing a well is very imprtant t prevent gas migratin. The prpsed casing and cementing requirements will prvide mre prtectin fr hme r prperty wners, and water supplies. These cnstructin standards are similar t standards that have already been adpted in ther states such as New Yrk, West Virginia, Ohi, Texas, Oklahma, Luisiana, Kansas and Mntana, and reflect cmmn industry practice. If a public r private water supply (fr example, a private water well) is plluted r reduced, the peratr must restre r replace it with a surce that meets drinking water standards r is as gd as the previus supply. If the cst t perate and maintain the new water supply is higher, the peratr will pay fr the increase permanently. If the previus quality f their water exceeded safe drinking water standards, affected parties may take legal actin t have their water supply restred t its riginal quality. The Oil and Gas Act presumes that an peratr has plluted the water supply if the cntaminatin ccurs within 6 mnths f drilling the well and the gas r il well is within 1,000 feet f the water supply, unless the peratr has taken a sample frm the water supply that shws it was cntaminated brefre drilling. If a hmewner refuses t let the peratr take the sample, the peratr is nt presumed t have impacted the water supply. Fr this reasn, it is imprtant fr water supply wners t allw well peratrs t take a sample frm the water supply. The water supply wner shuld ask the peratr fr a cpy f the lab test results. Operatrs must inspect all f their wells every three mnths and reprt the results t DEP every year. If the inspectin shws the casing is nt wrking prperly, r there are signs f leaks r t much pressure within the wellbre, the peratr must immediately ntify DEP and fix the prblem. The prpsed regulatins als set prcedures the peratr and the Department must fllw if gas migratin ccurs. Befre drilling a well, peratrs will need t have a casing and cementing plan that shws hw the well will be drilled and cmpleted. Sme f the new requirements are: Centralizers, which keep the casing centered in the wellbre, must be used at set lcatins t make sure that cement is evenly distributed between the casing and the wellbre.

Casing cement must meet the standards fr il and gas wells set by the American Sciety f Testing Materials. Used casing and casing strings attached t heavy duty blw-ut preventers must be pressure tested. Dcumentatin f cement quality and cementing practices used at each well must be kept fr DEP s inspectin. The prpsed revisins: Clearly define when blw-ut preventin equipment must be used. Require that cntrls f such equipment be lcated t allw their use in case f an emergency. Explain hw defective equipment must be treated. Specify the training a persn must have in rder t use the equipment. The new regulatins require peratrs t investigate gas migratin cmplaints quickly and t ntify DEP. If high levels f natural gas are fund, the peratr must call emergency respnders immediately and take actin t crrect the situatin. DEP may mdify cnstructin and plugging requirements when existing regulatins d nt prvide sufficient prtectin f the envirnment. The peratr will be required t submit infrmatin such as: what is the surce f the water used fr drilling, and a list f chemicals used t stimulate the well. Every six mnths, the drilling cmpany will have t reprt hw much natural gas has been prduced. DEP will make this infrmatin available t the public n the Department s Oil and Gas website. Please visit: http://www.depweb.state.pa.us click n Oil and Gas (infrmatin will be available within a few mnths). Benefits f the Prpsed Regulatins Mre prtectin fr hme r prperty wners Mre prtectin f water surces, bth public and private Early detectin f cnstructin prblems and mre reprting will increase safety and prtectin f human health and the envirnment Less chance f natural gas escaping the well (gas migratin) Prvide specific steps fr respnding t an emergency

Public Cmment Perid As a resident f this Cmmnwealth, yu are encuraged t actively participate in the creatin r revisin f regulatins that can affect yur health, quality f life and the envirnment. There is a 30-day public cmment perid and yu are invited t submit cmments, questins and recmmendatins n hw t imprve these regulatins. All questins will be answered in writing, and a cpy f the answers will be psted at the public participatin center n DEP s website: http://www.depweb.state.pa.us (click n public participatin). If yu d nt have internet access, please cntact the Office f Envirnmental Advcate at 1-888-723-3721r (717) 783-5630 and we will mail yu a hard cpy f the dcument. A series f public meetings will be held t prvide infrmatin and answer questins frm the public. A schedule f the meetings is attached t this dcument. Hw and When t Submit Cmments? (Please see the attached sample letter) All cmments must be received by August 9, 2010 By mail: Envirnmental Quality Bard P.O. Bx 8477 Harrisburg, PA 17105-8477 Express Mail: Envirnmental Quality Bard Rachel Carsn State Office Building, 16th Flr 400 Market Street Harrisburg, PA 17105-2301 Email: * RegCmments@state.pa.us * - If yu d nt receive an email acknwledging cmments submitted electrnically within 2 wrking days, please email yur cmments again t ensure that they were received. Please check yur spam r junk email flders t make sure that yur service prvider did nt redirect the message t thse flders. Have any questins r need sme clarificatin abut this amendment? Please see the cntact infrmatin belw: Sctt Perry, Directr, Bureau f Oil and Gas Management (717) 772-2199 Persns with a disability may use the Pennsylvania AT&T Relay Service by calling (800) 654-5984 (TDD users) r (800) 654-5988 (vice users). T read the full prpsed amendment, please visit DEP s Website t dwnlad the Prpsed Rulemaking Dcument and the Prpsed Regulatins. Prpsed Regulatins: http://www.pabulletin.cm/secure/data/vl40/40-28/1248.html Link t Chapter 78 (Existing Regulatins): http://www.pacde.cm/secure/data/025/chapter78/chap78tc.html

Sample Letter r Email Date Envirnmental Quality Bard Pennsylvania Department f Envirnmental Prtectin P.O. Bx 8477 Harrisburg, PA 17105-8477 RE: Pennsylvania Department f Envirnmental Prtectin s Envirnmental Quality Bard (EQB) prpsed amendment t the regulatins n Oil and Gas Casing and Cementing, Chapter 78. Dear Members f the Envirnmental Quality Bard: I ( agree r disagree ) with the recmmendatin by the EQB t update the existing requirements regarding the drilling, casing, cementing, testing, mnitring and plugging f il and gas wells, and the prtectin f water supplies. Additinal Cmments (ptinal, but we highly encurage yu t include) Secnd paragraph: (Explain why d yu agree r disagree) Third paragraph: (What d yu think DEP culd d t imprve the prpsed regulatins?) Furth paragraph: (Hw des this issue affects yur cmmunity? D yu have anything else t add?) Sincerely, Yur Name and Signature Yur Address

Diagram f a Natural Gas Well WELLBORE Surce: http://www.ggle.cm/imgres?imgurl=http://www.tpub.cm/cntent /engine/14080/img/14080_214_2.jpg&imgrefurl=http://www.tpub.c m/cntent/engine/14080/css/14080_214.htm&usg= Q0TemSNwL 11eTyRi- WsGHrBSN1Y=&h=425&w=320&sz=42&hl=en&start=110&um=1&it bs=1&tbnid=w_84olqbmq8ecm:&tbnh=126&tbnw=95&prev=/imag es%3fq%3dcasing%2band%2bcementing%26start%3d100%26u m%3d1%26hl%3den%26sa%3dn%26ndsp%3d20%26tbs%3disc h:1

DEFINITIONS Wellbre (r drill hle) - A wellbre is any hle drilled fr the purpse f extractin f natural resurces such as water, gas r il. Casing - A steel pipe inserted in the well t keep gas, il and ther fluids in the well. It is made ut f a series f metal tubes installed in the newly drilled hle. Cementing - the practice f pumping cement dwn between the casing and the wellbre wall t hld it in place and prevent gas frm leaking. Plugging The use f cement and ther materials t permanently seal the well. Water supply a surce f water fr human cnsumptin r use, r fr agricultural, cmmercial r industrial use. Gas migratin Unintended mvement f natural gas frm the wellbre due t prly cnstructed r deterirated wells. Material specificatins A clear set f requirements that a material, prduct, r service needs t meet (fr example, cement used in wells). If that material fails t meet ne r mre f thse requirements, it may be referred t as being ut f specificatin. Blw-ut preventers - A large valve r series f valves that can clse an active il r natural gas well. If undergrund pressure frces il r gas int the wellbre, peratrs can clse the valves remtely t prevent a blwut, and regain cntrl f the wellbre. Perfrmance testing - It invlves testing fr safety, reliability and t cnfirm that the device meets the standards.

PUBLIC HEARINGS SCHEDULE July 19, 2010-7:00 p.m. Tunkhannck Area High Schl Auditrium 120 West Tiga Street Tunkhannck, PA 18657 July 21, 2010-7:00 p.m. Lycming Cllege Heim Science Center Building Rm G-11 700 Cllege Place Williamsprt, PA 17701 July 22, 2010-7:00 p.m. Department f Envirnmental Prtectin Nrthwest Reginal Office 1st Flr Cnference Rm 230 Chestnut Street Meadville, PA 16335 July 22, 2010-7:00 p.m. Department f Envirnmental Prtectin Suthwest Reginal Office Waterfrnt Cnference Rm A and B 400 Waterfrnt Drive Pittsburgh, PA 15222-4745