Office of Conservation

State Office of Conservation developing new rules to cut demand on fresh water for drilling activity

The Louisiana Office of Conservation is developing new rules allowing for the limited re-use of waste water from oil and natural gas exploration and production operations for drilling operations in the Haynesville Shale area.

The proposed new rules would allow, with certain limitations, the one-time use of such waste water for the process known as hydraulic fracturing, or "fracing," in the Haynesville Shale natural gas formation.

The "fracing" process involves using water to fracture a shale formation and allow for natural gas to be extracted. Use of this process is a major component of recent exploration operations in the area of northwest Louisiana lying over the Haynesville Shale natural gas formation.

The purpose of the proposed change is to help conserve freshwater aquifer resources by allowing the use of exploration and production waste water to be used to perform the hydraulic fracturing operations in the Haynesville Shale formation.

State Commissioner of Conservation James Welsh said that the intense development of the Haynesville Shale natural gas formation calls for innovative ideas in the management of water resources.

"The amendments we are proposing use sound waste minimization principles, along with conservative waste management requirements to promote ground water resource management and conservation, while protecting public health and the environment," Welsh said.

"This proposed change represents sound public policy, based in good science, in preserving one of our most precious natural resources - ground water - while still allowing responsible development of another resource - natural gas that helps fuel our nation," said state Department of Natural Resources Secretary Scott Angelle, who also chairs the state Ground Water Resources Commission.

Limitations proposed include:

• The waste water can only be used for hydraulic fracturing in the Haynesville Shale
• The waste water can only be used by the same operator of record
• The waste water can only be used to complete hydraulic fracturing operations on one well before being disposed of
• All waste generated in the processing of the waste water for fracturing fluid must be properly disposed of
• The surface owner must register no objection on the well site receiving the waste water

The proposed rule changes are still in the development stage and may be subject to change before formal publication. The Office of Conservation hopes to be able to implement rule changes by the end of the year.

The proposed rule changes are part of the continuing effort by the Office of Conservation to find alternatives in preserving the state's ground water resources.

Commissioner Welsh issued an advisory to exploration companies in fall 2008 to seek other options, such as surface water, when planning for use of water in hydraulic fracturing operations.

That outreach has already produced results, as Chesapeake Energy - the most active exploration company in the Haynesville Shale area - has already sought and received the first permit from the U.S. Army Corps of Engineers to draw water from the Red River to supply hydraulic fracturing operations.

That action has been followed by similar permit requests by other companies.

• Proposed rules as of August 20, 2009

The Notice of Intent for rules to allow the limited use of E&P waste in hydraulic fracturing operations on the Haynesville Shale formation was published in the August 20, 2009 edition of the Louisiana Register on pages 1800-1802.

A public hearing has been scheduled for Tuesday, September 29, 2009 at 9 a.m. in the LaSalle Building, LaBelle Hearing Room, 617 N. Third Street, Baton Rouge, LA 70802. Interested persons are invited to attend and submit oral comments on the proposed amendments. 

Also, all interested persons are invited to submit written comments on the proposed regulation. Persons commenting should reference "Proposed Amendment of LAC 43:XIX.311 and 313". Such comments must be received no later than Friday, September 11, 2009, at 4:30 p.m., and should be sent to Mr. Chris Sandoz, Office of Conservation, Engineering Division, P.O. Box 94275, Baton Rouge, LA 70804-9275; hand delivered to 617 North Third Street, Ninth Floor, Baton Rouge, LA 70802; by email to chris.sandoz@la.gov; or by fax to (225) 342-2584.

It is anticipated that the final rule will be promulgated on November 20, 2009.

New Rules for drilling in Haynesville final Nov. 20, 2009

November 25, 2009

The final rules for drilling operations in the Haynesville Shale area have taken effect as of November 20, 2009.

The changes will help to conserve freshwater sources while defining waste water usage as follows:

• The waste water can only be used for hydraulic fracturing in the Haynesville Shale
• The waste water can only be used by the same operator of record
• The waste water can only be used to complete hydraulic fracturing operations on one well before being disposed of
• All waste generated in the processing of the waste water for fracturing fluid must be properly disposed of
• The surface owner must register no objection on the well site receiving the waste water

To view the text in the Louisiana Register click here (pages 191 - 193) or as available in the Louisiana Register on pages 2463 - 2465.