California DOT Issues Proposal Rule for Fracking
November 22nd, 2013 | By: America's Infrastructure Report Card
With vast reserves of hydrocarbon energy trapped deep under its surface, the state of California is getting ready to oversee the exploration for and recovery of the nation’s largest supply of oil and natural gas from shale fields. The California Department of Conservation (DOC) has issued a proposed rule that would govern the petroleum industry’s use of hydraulic fracturing and other methods of recovering oil and natural gas from shale thousands of feet below the Earth’s surface. Technically recoverable shale oil resources in the continental 48 states amount to 23.9 billion barrels. The largest shale oil formation in the U.S., however, is the Monterey—Santos play in southern California, which is estimated to hold 15.4 billion barrels or 64 percent of the nation’s total shale oil resources, a potentially enormous energy supply. But because most shale gas and shale oil wells are only a few years old, their long-term productivity is untested, according to the U.S. Energy Information Administration (EIA). Consequently, the long-term production profiles of shale wells and their estimated ultimate recovery of oil and natural gas are uncertain. Nevertheless, the California DOC is getting ready for the increased use of deep oil and gas recovery through a comprehensive set of regulations required by the state legislature in September. The DOC’s proposal was released on the same day the law was signed. The DOC has established a web site for the rule. The rule would govern all forms of well stimulation treatment, including hydraulic fracturing. Another key exploration technology, “acid well stimulation treatment,” also would be regulated. Acid stimulation, called acidizing, typically involves the injection of high volumes of hydrofluoric acid, a powerful solvent, into the oil well to dissolve rock deep underground and allow oil to flow up through the well. Conventional hydraulic fracturing, in which water and other chemicals are pumped at high pressure to create fissures in the rocks, reportedly does not work well in many parts of the Monterey Shale—a rock formation known for its complexity and low permeability, which makes hydraulic fracturing less effective. As proposed, the DOC rule would require a permit for well operations; reports of third-party water tests to be provided to all property owners and tenants near the well; pressure testing of all well tubing for at least 30 minutes before well stimulation; monitoring of all wells during and after operations; storage and handling requirements for all treatment fluids; and public disclosure of “the trade name, supplier, concentration, and a brief description of each additive contained in the wells stimulation fluids.” The rule also would require public disclosure of all sources, volumes, and specific composition of all water used in well stimulation and the disclosure of all disposal of well treatment fluids. These requirements track with ASCE Policy Statement 539, Hydraulic Fracturing. The ASCE Government Relations Department will analyze the proposed rule in detail and provide the Society’s official comments to the DOC by the January 14, 2014, deadline. ASCE members in California with professional expertise in oil and gas exploration and water-quality issues are urged to visit the DOC web site to determine whether they should comment on the rule as practicing civil engineers.Tags: California, CDOT, Environment, Fracking, Hydraulic Fracturing, Shale Oil, water
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EPA Reports on the Importance of Water to the U.S. Economy
November 7th, 2013 | By: America's Infrastructure Report Card
This week, the Environmental Protection Agency released a new report titled “The Importance of Water to the U.S. Economy.” The report concludes that, as a nation, we do not currently reflect water’s true worth in the economy. A great example is the fact that communities across the country are low-balling the cost of clean, safe tap water. Simply, the rates you and I pay for water are too low. Of course, no one likes hearing that, but if we want the water to keep flowing, we are going to have to price water as the critical resource that it is. As with any utility, the concern is that when it is undervalued, “business-as-usual” will eventually be unsustainable. In the 2013 Report Card for America’s Infrastructure, ASCE gave both Drinking Water and Wastewater a “D” grade. These two grades were largely due to the fact that America’s pipes and sewers are sometimes nearly a century old. As one can see, this aging means that the need is growing while the utility itself does not bring in enough money to finance its own operation. This topic is not new to ASCE. In our series of economic reports, titled Failure to Act, we found that if America continues down our current path, with no new investments in water infrastructure, we will lose $416 billion in GDP by 2020 due to increased costs and loss of worker productivity. Households and business would bear the burden, losing $59 billion and $147 billion respectively over that time span. By 2020, the average family budget would be squeezed by $900 as water rates rise and personal income falls. The lesson of Failure to Act is the same as we see in the EPA report: the cost of inaction is unacceptable. EPA Assistant Administrator Nancy Stoner says the main findings of their report are: 1) Water is absolutely fundamental to the U.S. economy 2) Water value and competition will rise, and 3) Decision-makers in the private and public sectors need more information. The first two conclusions are well taken, and worth repeating; however, the final conclusion does not go far enough. There is ample information—from ASCE, from the EPA, and from other groups—that explains why water is undervalued. What the public and private sector needs is awareness. Replacing the nation’s antiquated pipes will require significant local investment, including higher water rates. Just as with fixing a leaky roof in your home, the longer we wait, the more it will cost. The EPA’s report should serve as yet another call to action for all levels of government to invest in our water infrastructure now.Tags: economic study, infrastructure, jobs, report card, water
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Infrastructure Investment Wins at the Ballot Box!
November 6th, 2013 | By: America's Infrastructure Report Card
Yesterday voters in Maine and Texas both affirmed ballot resolutions resulting in increased investment in their local infrastructure. In Maine voters overwhelming approved Bond Question 3, 72% in favor to 28% opposed. Bond Question 3 gives permission to the State to borrow $100 million to fund transportation projects around the state which in turn would make the State eligible for at least $154 million in matching funds. Proceeds from the sale of these bonds would be administered by the Department of Transportation and would fund at least $49 million for road projects, $27 million for bridge projects and $24 million for multi-modal projects, including facilities and equipment related to ports, harbors, marine transportation, aviation, railroads (both passenger and freight), and transit (public transportation). In Texas Proposition 6 was also approved by a large margin – 73% to 27%. Proposition 6 authorizes the transfer of $2 billion from the state’s Economic Stabilization Fund (ESF or “Rainy Day Fund”) to a State Water Implementation Fund for Texas (SWIFT). The $2 billion one-time cash infusion will be used with already authorized bonds to provide low interest loans, credit enhancement, interest deferrals, and other financial assistance to projects approved in the State Water Plan. It is expected that the SWIFT will operate as a revolving fund; with repayments funding new loans, the program should provide the financing needed to implement the projects in the 50-year State Water Plan. ASCE supported both of these initiatives through various media channels and Key Alerts to Section members in both states. In Texas, letters to the editor from ASCE members in Texas were picked up by the Houston Chronicle and Focus Daily News and KLTV in East Texas ran a video spot in which ASCE member Vik Verma, P.E., was highlighted. In Maine, two newspapers, the Morning Sentinel and the Bangor Daily News each ran supportive editorials that cited the 2012 Report Card for Maine’s Infrastructure. The voters in both of those states have shown that infrastructure investment is a priority. So should you!Tags: elections, infrastructure, state, state report card, transportation, water
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ASCE Hails Passage of Water Resources Reform and Development Act as Linchpin in Modernizing Nation’s Ports, Inland Waterways, Dams and Levees
October 24th, 2013 | By: America's Infrastructure Report Card
Washington, D.C. — The following is a statement from Randall (Randy) S. Over, P.E., F.ASCE, president of the American Society of Civil Engineers (ASCE), regarding the passage of the Water Resources Reform and Development Act by the U.S. House of Representatives: “The American Society of Civil Engineers applauds the bipartisan passage of the Water Resources Reform and Development Act (WRRDA). The bill promotes economic growth and job creation through policies that strengthen U.S. infrastructure, allowing the nation to remain competitive in the 21st century. “ASCE’s 2013 Report Card for America’s Infrastructure graded the nation’s ports a C, inland waterways a D-, dams a D, and levees a D-. Our nation’s water resources are critical to our economy, our infrastructure, public safety, and the preservation and enhancement of our environmental resources. In fact, ASCE’s Failure to Act economic study on the nation’s marine ports and inland waterways shows that underinvesting in just these two sectors threatens more than one million U.S. jobs and $270 billion in U.S. exports by 2020. “When signed into law, WRRDA will drastically reduce the time it takes for project approvals by consolidating or eliminating duplicative studies, permitting concurrent reviews, and streamlining environmental reviews. The reforms in the law are not at the expense of environmental quality and will allow for a stronger, safer national water resources infrastructure. In addition, ASCE strongly supports wording in the bill that will incrementally increase expenditures out of the Harbor Maintenance Trust Fund so that our nation’s ports can remain competitive on a global level. “ASCE is pleased that Congress has collaborated to pass WRRDA and invest in America’s future. This decisive action will ensure that our nation’s ports, waterways, dams and levees receive the funding they require. We look forward to working with the conference committee as it develops a final Water Resources Development Act for the president’s signature.” Founded in 1852, the American Society of Civil Engineers represents more than 145,000 civil engineers worldwide and is America’s oldest national engineering society. For more information, visit www.asce.org.Tags: economic study, infrastructure, ports, report card, water
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