A look back at 20 years of oil and gas permitting in Wyoming

A shift in priorities of the EPA under the current administration has raised awareness of an increase in oil and gas permitting across the USA. However, the increase began before the current administration. Although the federal government controls most regulations and laws that affect permitting, other factors such as global oil and gas prices, advances in drilling and production technology, and state governments’ willingness to accommodate investors have an effect on permitting and investment by energy companies. It should be pointed out that permitting does not necessarily indicate drilling as companies can request permits but then hold on to the permits until either eventually drilling, requesting a new permit, or selling the permit to another company. This can tie up land for decades and is covered in more detail by The Wilderness Society’s report: “Land Hoarders: How Stockpiling Leases is Costing Taxpayers”.

Wyoming has an economy that is built on coal and oil, but in the 80s and early 90s it was suffering from an oil glut that caused prices to drop. As prices began to recover throughout the 1990s and 2000s and eventually boom (Fig.1), some companies sought to diversify into natural gas (read more in James Hamilton’s paper “Causes and Consequences of the Oil Shock of 2007-08). Many began to drill for gas in the coal fields of Wyoming, and to apply the relatively new technology of hydraulic fracturing (“fracking”) to extract natural gas from previously uneconomic, low-permeability sandstone and shale reservoirs found throughout the Rocky Mountain West.

Oil and gas prices since 1985.

Figure 1. Oil and gas prices since 1985.

The oil and gas boom ended abruptly in 2008 when the effect of the global financial crisis reached the oil and gas markets and prices plummeted.

To better understand the effect these events had on Wyoming, I analyzed permits for new oil and gas wells, issued by the state over the past 20 years. This data is freely available from the Wyoming Oil and Gas Conservation Commision website: http://wogcc.wyo.gov/. First, I should point out that this data has inconsistencies and holes, due to apparent data entry errors like missing or incorrect dates, missing latitude or longitude, typos, etc. Unfortunately, this meant nearly 24% of the total permits had to be left out of my analysis. Some errors still remain, as seen in this map of permit applications received by the state (Fig. 2). Each county is colored differently and there appear to be some permits which either have the wrong county listed or incorrect map coordinates.

Distribution of oil and gas drilling permit applications, color coded by county.

Figure 2. Distribution of oil and gas drilling permit applications, color coded by county.

What immediately stands out is the relatively densely-packed permits in Campbell county, in the north-east of the state. When I looked closer at this county over time, I saw that most of the permit applications were submitted during the beginning of the boom of 1998-2008. This is quickly followed by a sharp drop around 2000, the time hydraulic fracking made drilling in other parts of the state (and country) more profitable. The original method of coal bed methane drilling was considered uneconomical compared to this new fracking method. At that time, I saw a rise in permit applications across other counties (Fig. 3), but far more subdued than the earlier rush, possibly because fracking made deposits across the country viable and so the increase was more widespread across and outside Wyoming. This is just a theory though, these could easily be due to business strategies of companies “capturing” land before their competitors.

Applications for oil and gas drilling permits received over time by county.

Figure 3. Applications for oil and gas drilling permits received over time by county.

The rate of permit applications slows for all counties as the boom ended around 2008 with a short-lived rise leading up to 2016. The boom and bust periods can be seen more clearly when I looked at the overall quantity of permit applications across Wyoming (Fig. 4).

Total number of oil and gas drilling permits applied for in Wyoming.

Figure 4. Total number of oil and gas drilling permits applied for in Wyoming.

The initial rush of the boom was followed by a dip and second climb as fracking technology took off. This is followed by the bust of 2008. There is a slight rise again around 2016, but it drops off by 2017. The effect of this activity is closely reflected in unemployment figures for the state (Fig. 5). Considering that I am looking at permitting however, and not drilling, this correlation should be seen as a reflection of oil and gas companies’ business activities in a holistic sense.

Unemployment rate for Wyoming over the past 20 years.

Figure 5. Unemployment rate for Wyoming over the past 20 years.

Initially, there’s an overall steady decline in unemployment as the boom sweeps up employees but this rockets up once the bust comes along. Interestingly, between 2012 and 2016, there is a steady rise in permit applications which is reflected by the steady drop in unemployment but this is interrupted by a bump in unemployment around 2016. The restoring of the unemployment level after 2016 is not reflected in the drop in permit applications, however. Those appear to drop off.

Although there are booms and busts, the overall number of well permits is constantly increasing (by simple fact of the number of new permits applied for always outweighing the number of permits expiring). The animated image below (Img. 1) shows the growth of oil and gas permit applications as companies move across the state.

Image 1. Permits applied for over the past 20 years.

Image 1. Permits applied for over the past 20 years. (Click to see time-series)

Graphs and maps give us a good idea of the trends but sometimes it is even more helpful to see the physical reality of these numbers.  This is an area in the most heavily permitted county, Campbell (Img. 2).

Image 2. Comparison of an area of Campbell county from July 1999 to July 2018.

As well as the dramatic increase in well pads (i.e., drilling sites), these images show the addition of access roads threading across the landscape.

What this data doesn’t show is the large amount of orphaned wells that were left behind after the price of oil and natural gas dropped in 2008. This has left a legacy of about 3600 abandoned wells (scroll to bottom for total number of orphaned wells currently tracked by Wyoming Oil and Gas Conservation Commision). Often the state, and therefore, the taxpayers, are left to handle this burden because the responsible companies are either unknown, unable to cover the cleanup costs, or have declared bankruptcy and disappeared. Understandably, the state would prefer to see the wells operate once more rather than paying considerable amounts of money to seal them up and restore the land. But these aging, unsecured wells pose a threat to the environment and to public health.  

Many of the coalbed methane wells built at the beginning of the boom were approved with permission to dump untreated “flowback water” on the surface. The companies convinced the state that this  fluid, coming straight from the coal seams targeted by the drilling, would be beneficial for the parched land even though most of the untreated fluid was highly saline. Also, the effect of flooding the land with large volumes of water was extremely unnatural to the existing ecosystem. Many areas that were normally good for grazing became unusable because they were flooded with this salty water. Land that was adapted to little rainfall and snowmelt was suddenly exposed to a constant flow of brine. The companies pushed the idea of plentiful of water for agriculture and wildlife to drink while downplaying the issue of the quality of the water. The state also towed this line while court battles challenging the “beneficial use” permits, led by landowners and conservation groups, were upheld in court. Eventually, they implemented a water-to-gas ratio cap on surface discharges since many of the wells were producing plenty of salty water but little or even no gas at all.

One other trend that I discovered while scrutinizing the permit database was the time it took to process these permits (Fig. 6 & 7). Plotting permit approval times at first appears to show a distribution that follows the general trends that I’ve seen so far, tracking the boom and bust periods. For comparison, I plotted these for both the year of permit application (Fig. 6) and year of approval (Fig. 7).

Figure 6. Permit approval time arranged by year of application.

Figure 6. Permit approval time arranged by year of application.

 

Figure 7. Permit approval time arranged by year of approval.

Figure 7. Permit approval time arranged by year of approval.

The red lines track the annual average wait time and give a clearer picture of the trend. The spread of wait times fluctuate far more than the actual average wait time. Although the average does not appear to fluctuate much, the scale is a little deceptive as the average wait time extends from 15 days in 1998 to 40 days in the year 2000. The average wait time appears to initially rise with the start of each drilling boom but even out fairly quickly. This changes later when the average wait time climbs sharply around 2013. By 2017, the average wait time has increased considerably to 130 days.

These trends offer insight into the recent history of oil and gas permitting activity in Wyoming. It should be noted that although there was a lot of ‘noise’ in the data that I had to correct or discard, the remaining data helps give me a clearer sense of how oil and gas development is driving change on Wyoming’s landscape. My analysis has been based purely on the history of permitting in Wyoming, not actual drilling. For an analysis on drilling, please look at the Fracktracker Alliance’s page on oil and gas activity in Wyoming. I hope you’ve enjoyed this breakdown of permit data for Wyoming. I hope to take a similar look at other states’ drilling permits, so stay tuned!

Benzene Contamination Caused by Fracking. Or Something Else?

In Erie, Colorado, a local mom is understandably alarmed by the level of benzene — a known human carcinogen — in her 6-year-old son’s blood. There is plenty of drilling and fracking happening around Erie, including a wellpad 1,300′ to the west of the Erie elementary school that was built in 2012 and now hosts at least 8 producing wells. Prevailing winds in Erie typically blow from the west, putting the elementary school and the neighboring middle school directly downwind from this large drilling site, making the drilling operations an obvious suspect for the cause of this contamination. Slam dunk, right? 

Map showing locations of Erie, Colorado elementary and middle schools, and nearby features of interest noted in the text.

But the situation may not be that simple, as illustrated in the map above. The schools have a much closer neighbor — a gasoline station that’s right across the street, 250′ north of the elementary school, that has been there since at least 1993. When I worked for the Environmental Protection Agency in the 1990s, the problem of fuel oozing out of leaking underground storage tanks (yes, we called them LUSTs) at homes, gas stations, on farms, and other sites around the country was just beginning to get nationwide attention and prompted a suite of new rules from the EPA. Gas stations around the country were required to replace their old tanks. Many sites had plumes of gasoline floating on the local water table, sometimes migrating off the gas station property and into surrounding neighborhoods, sending fumes into basements and chemicals into water-supply wells. Gasoline contains benzene. Could kids at these schools be exposed to old gasoline contamination from this nearby filling station? Or to gasoline vapors being released today, as customers fill up their vehicles?
 

Looking south-southwest at gasoline filling station across the street from Erie Elementary School (just beyond the treeline).

There’s also a lumber mill 900′ south of the elementary school property line, and it too has been there since at least 1993. The mill probably operates diesel-powered equipment, and may even have its own diesel fuel storage tank onsite. Diesel fuel and fumes, and exhaust from diesel engines, all contain benzene. This site is not upwind from the school, so I would consider it a less-likely source of exposure for the kids there.
 
And I don’t know where this boy lives; maybe he’s grown up with a filling station or some other benzene-spewing industrial site nearby.  He may not even go to this school.  
 
None of this speculation — and it is pure speculation on our part — is intended to deflect attention from the increasingly well-documented health impacts that result from living near modern drilling and fracking operations. Everybody’s situation is different, and we just want to be sure we’re pointing our fingers at the right culprit so that A) we’ll be taken seriously, and B) the problem will be fixed. Sometimes that culprit may be oil and gas drilling. At other times it may be something that we’re overlooking.  
Aerial survey photos from the 2013 National Agricultural Imagery Program (NAIP) show how drilling and fracking have altered the West Virginia landscape.

SkyTruth data supports Maryland’s ban on fracking

In April 2017, Maryland Governor Larry Hogan signed a bill reinstating a fracking ban in the state. The Maryland General Assembly imposed a temporary moratorium on hydraulic fracturing for natural gas in 2013, and — following similar bans in Vermont in 2012 and New York in 2015 — the 2017 bill makes Maryland the third state in the country to ban fracking. 

SkyTruth’s crowd-assisted FrackFinder work mapping oil and gas well pads played an important role in this environmental and public health victory. Lawmakers evaluated recent research led by Dr. Brian Schwartz at Johns Hopkins that found higher premature birth rates for mothers in Pennsylvania that live near fracking sites. In a related study, Johns Hopkins researcher Sara Rasmussen found that Pennsylvania residents with asthma living near fracking sites are up to four times more likely to suffer asthma attacks.

The research conducted by Johns Hopkins relied on oil and gas infrastructure data produced by SkyTruth. That means our work was among the things that Maryland legislators considered when they chose to extend the state’s ban on fracking. It’s incredibly exciting to see our work play such a direct role in policy-making, and it highlights the importance of continuing to update our oil and gas footprint data sets and sharing them for free with researchers and the public. We’re continuing to map the footprint of oil and gas development in Appalachia, so keep checking in for updates.  Way to go Maryland!

Aerial survey photos from the 2013 National Agricultural Imagery Program (NAIP) show how drilling and fracking have altered the West Virginia landscape.

Half of West Virginians Live Within a Mile of an Active Well

According to a new study by Environmental Health Perspectives, 17.6 million Americans live within one mile of an active oil or gas well. West Virginia topped the list. Half of the state’s population resides within a mile of an active well.

Aerial survey photos from the 2013 National Agricultural Imagery Program (NAIP) show how drilling and fracking have altered the West Virginia landscape.

Aerial survey photos (above & below) from the 2013 National Agricultural Imagery Program (NAIP) show how drilling and fracking have altered the West Virginia landscape.

Aerial survey photos from the 2013 National Agricultural Imagery Program (NAIP) show how drilling and fracking have altered the West Virginia landscape.

Studies have found links between public health outcomes and active oil and gas production.

Oil and gas development:

  • degrades the quality of air and water,
  • contaminates the soil,
  • increases exposure to noise and light pollution.

People who live within a mile of an active well have higher rates of health problems including:

  • heart-related illness,
  • neurological problems,
  • cancer,
  • asthma.

Living near an active well has also been associated with adverse health outcomes in babies including:

  • pre-term birth,
  • lower birth weight,
  • neural tube defects,
  • congenital heart defects.

In Everyone’s Backyard: Assessing Proximity of Fracking to Communities At-Risk in West Virginia’s Marcellus Shale

SkyTruth recently partnered with Downstream Strategies and San Francisco University on a related report, focused on West Virginia. The report concluded that Marcellus Shale gas production has become more common near places essential for everyday life in West Virginia, increasing the potential for human exposure to toxic chemicals.

“This report shines a light on the impacts of fracking on the health and well-being of West Virginians. It is a perfect example of why I founded SkyTruth,” said John Amos. “If people are aware of how these decisions impact their lives, they will be able to be part of the solution.”

Many Homes Are Too Close to Well Pads

According to the report, more than 7,000 homes were located less than one-half mile from well pads in 2014. While the Horizontal Well Control Act established a setback distance of 625 feet between the center of well pads and homes, many homes are located closer than this distance to well pads.

Well Pads Have Encroached on Schools

As fracking progressed in West Virginia, well pads have also encroached on schools. By 2014, seven schools had at least one well pad within one-half mile, and 36 schools had at least one well located within one mile.

More Well Pads Have Been Built Near Public Lands, Including Water Protection Areas and Healthcare Facilities

Well pads must be more than 1,000 feet from public drinking water intakes; however, there are no restrictions on the construction of well pads within drinking water protection areas upstream from intakes. In 2014, hundreds of well pads and impoundments were in these protection areas. Since 2007, more and more well pads and impoundments have been built in or near public lands and health care facilities.

A systematic, screening-level evaluation of the toxicity of chemicals self-reported by operators in West Virginia revealed several hazardous substances had been used to frack wells near schools and immediately upstream from surface public drinking water intakes.

New Setback Distances Needed

Unlike other states, West Virginia State Code does not require setbacks between Marcellus Shale development and several types of sensitive areas assessed in this report. Setback distances for schools, healthcare facilities, and public lands—and restrictions in zones of critical concern and zones of peripheral concern above drinking water intakes—would help protect vulnerable populations and recreational opportunities as fracking development continues.

“Now that this analysis is completed, it’s a good time for the Legislature to consider new setback distances from homes, schools, and other sensitive areas,” said Evan Hansen, President of Downstream Strategies.

This report was made possible by a Switzer Network Innovation Grant.

Global Flaring Map Reset

The wasteful practice of flaring off natural gas from oil and gas fields is again making news, coinciding with a new release of SkyTruth’s Global Flaring Map that visualizes gas flaring activity around the globe. This map relies on the Nightfire data provided by NOAA’s Earth Observation Group, which has written extensively about their work detecting and characterizing sub-pixel hot sources using multispectral data collected globally, each night, by the Visible Infrared Imaging Radiometer Suite (VIIRS) aboard the Suomi-NPP satellite. Read about the algorithm that creates Nightfire data here and methods for estimating flared gas volumes here.

SkyTruth’s enhanced map has these added features:

  • NOAA has published two additional years of flaring data, allowing our map to extend back to March 2012.
  • A location search box lets you go directly to a city, state, country, landmark, etc.
  • Date range selection helps you limit the visualization to the time-frame of interest.
  • You can identify your rectangular Area of Interest and download flaring data within that AOI (works best in Chrome browsers).
  • We’ve caught up with NOAA’s daily download after adjusting to recent changes in their web security.


About our Global Flaring Map

Please read about some of the uses for this map and how SkyTruth processes NOAA’s data in this original post describing our map. If you don’t see a flaring detection you expected to see, consider the caveats:  some flares don’t burn hot enough to be included in our dataset, they may not have been burning when the satellite passed overhead, the flare may not be frequent enough to make it past the 3 detection threshold, heavy clouds may have obscured the flare from the sensor, etc.

If you find this map useful, drop us an email at info@skytruth.org to let us know.

Why Flaring is In the News Again

In November 2016 the Interior Department announced a new Methane and Waste Prevention Rule to reduce wasteful flaring and leaks of natural gas from oil and gas operations on public and Indian lands. Although Congress tried repealing the rule after the 2016 elections, that effort failed to advance out of the Senate after a May 2017 vote.

Despite the Senate’s action to keep the methane rule, the Environmental Protection Agency just announced (as of 6/15/2017) they would suspend implementation of the rule for 90 days — an action leading environmental groups claim is unlawful.

West Virginia FrackFinder Phase 1 Results

During Phase 1 of our FrackFinder WV project, we focused on identifying and delineating wellpads (drilling sites) and drilling-related fluid impoundments across West Virginia that have been built to accommodate the recent boom in drilling and fracking to produce natural gas from the Marcellus and Utica Shales.  This data has been provided to our partners, researchers at Downstream Strategies and the University of California – Berkeley, who are studying the human health impacts of living near modern drilling and fracking operations.

This slider shows an area near Wilsontown, WV before and after drilling took place (the wellpad is highlighted in red, and an impoundment is shown in blue):

We thought we’d assess the direct environmental impact by measuring the change in the landscape resulting from all this construction activity.  Here’s the breakdown of how much land was converted to industrial use between 2007 and 2014 as a result of fracking, categorized by the type of land cover that existed in the area before the wellpads and impoundments were built. The land cover data is from the National Land Cover Database, which is derived from Landsat imagery.

Land Area Converted to Wellpads and Impoundments, 2007-2014

Detected barren land is likely drilling predating 2006. Lightly developed is a mixture of development, roadways, and residential green space.

It appears that the NLCD is registering this land conversion, as seen in the three images below which show the same area displayed in the slider. A wellpad first appeared on this site in 2011, which was when the NLCD was last updated using moderate-resolution satellite imagery, and it is identifying the drilling site as “barren” land. It is worth noting that of the 1,081 acres of forest cleared for drilling infrastructure, 27.8 were cleared in the Monongahela National Forest.

2006 National Land Cover Data, near Wilsontown, WV.

The 2011 update of the National Land Cover Dataset, detected a fracking wellpad in the center of this image and registered it as Barren Land. See the next image when the outline of the wellpad is displayed.

The 2011 National Land Cover Data, with results from our West Virginia FrackFinder project displayed.

We find that 1,756 acres of land in West Virginia was converted to wellpads (averaging 2.3 acres in size) and impoundments (averaging 0.8 acres in size) from 2007 to 2014. That is an area 1/4 the size of  Morgantown, WV and is 7 times larger than the town of Shepherdstown (where SkyTruth is based). This is a very conservative starting point for measuring the true drilling “footprint” because it doesn’t capture the total land area disturbed to construct the pads and facilitate drilling:  tree clearing, site excavation and grading to accommodate heavy equipment and provide drainage control, access roads and utility / pipeline corridors, and associated facilities like compressor stations and storage facilities.  Later this year we may ask you to help us delineate this larger halo of direct land disturbance related to drilling, which we speculate could be 2-3 times larger than the footprint of the wellpads and impoundments alone.

In the meantime we are gearing up for the launch of Phase 2 of FrackFinder WV. During this stage of the project, citizen volunteers (that’s you!) will assist SkyTruth in creating a dataset of homes which lie within 1/2 mile of the wellpads we identified in Phase 1, data that our partners think will be very useful for public health research.

So be sure to keep an eye out for project updates and calls for volunteers!  If you sign up on our Volunteer page, you’ll get an email from us when the next FrackFinder project is up and running.

A Closeup Look at Leasing and Drilling: Allegheny County, Pennsylvania

Up to this point, Allegheny County in southwestern Pennsylvania has been mostly spared from much of the fracking boom spanning that state. This may change however, as oil and gas companies have been systematically leasing property around the county for potential drilling.  Usually it’s hard to get a handle on the magnitude of this threat, since leases on private property are generally difficult to discover.  Fortunately for the public (us included), our friends at FracTracker Alliance built the Allegheny Lease Mapping Project: an interactive online map showing land parcels leased or contracted to oil and gas companies.  Individual parcels of land that have been tied to oil and gas records can be selected to pull up a variety of information about that parcel.  Users can explore the map to see where a parcel of leased land is located relative to homes, schools, bodies of water, parks, and other sites of interest. This tool is meant to help citizens, communities and policymakers make informed decisions about zoning, land use, and future oil and gas development in the region. 

We thought it would be useful for folks to see where all the oil and gas leases are in the county, relative to the Marcellus Shale gas drilling and fracking that has already happened.  FracTracker graciously provided their dataset, and we filtered it to only show parcels tied to an “active” lease.  Here is the result.  Properties with an active lease are displayed in green. Those that have experienced some drilling activity since the Marcellus boom began a decade ago, are shown in red:

Active leases (green) in Allegheny County, PA. Active leases that have experienced some drilling activity since 2005 shown in red. Click to enlarge.

Though much of Pennsylvania that overlies the Marcellus Shale has seen extensive fracking development, most of Allegheny County hasn’t yet had any of this modern drilling with hydraulic fracturing. But the large area under lease should give residents throughout Allegheny County some concern:  a significant amount of drilling could be in their future, and drilling sites could be built uncomfortably close to where people live and work. The average size of a well pad is 3-5 acres, potentially bigger than a football field or even the deck of an aircraft carrier. In this illustration, hypothetical well pads and access roads (shown in yellow) are placed over existing leases in the northeastern portion of Allegheny County that have not yet been drilled (orange). Many of the leases come close to, or overlap with, existing residential areas:

A portion of northeastern Allegheny County showing active oil and gas leases in orange that have not yet been drilled, in an area of mixed residential, forest, and agricultural land use. Hypothetical drilling sites (“well pads”) and access roads are shown in yellow. Click to enlarge.

 

Detail from above, showing potential proximity of large industrial drilling sites to homes and a school. Click to enlarge.

In the close up above, we see that a potential well pad of typical size dwarfs the high school and football field only 1200 ft away. During drilling the neighborhoods nearby would have to cope with health, safety and lifestyle impacts associated with round-the-clock noise, heavy truck traffic, and degraded air quality, in addition to the longer-term potential for surface and ground water contamination caused by accidental leaks and spills.

It’s our hope that by making this hard-to-access leasing data easily available, folks in Allegheny County will be enabled and inspired to take action to protect their communities.  A big tip ‘o the hat to FracTracker for building and sharing the lease dataset.