PPROA Pipeline March 2015

PIPELINE the newsletter of Panhandle Producers & Royalty Owners Association • Vol. LXXXVIII • No. 3 Does fracking cause earthquakes? Here is Your Answer! During hydraulic fracturing, the micro seismic events are generally less than magnitude minus two (-2) or minus three (-3) on the Richter scale. A study of hydraulic fracturing-related seismic activity found that the combination of geological factors necessary to create a higher-than-normal seismic event was “extremely rare” and such events would be limited “to around magnitude 3 on the Richter scale as a ‘worst-case scenario.” For reference, a magnitude three earthquake is described by the United States Geological Survey (USGS) as causing “vibrations similar to the passing of a truck or the same as a gallon of milk falling off a kitchen counter" there were also "no detectable effects on vibration" — and no water or air quality problems either — from hydraulic fracturing. The amount of seismic energy released during hydraulic fracturing in fact, does not pose a high risk of inducing earthquakes, according to the National Research Council. An Oklahoma Geological Survey study on seismicity near hydraulic fracturing activities concluded that it was “impossible to say with a high degree of certainty whether or not earthquakes were triggered by natural means or by nearby hydraulic-fracturing operation.” In cycles of about every six months, we get a new round of stories along the lines that "fracking causes earthquakes too!" This is not true or mostly not true. As with all things shale-related, anti-drillers take a kernel of truth and blow it out of proportion, making it untrue. That’s the case with fracking and earthquakes. A British scientist leading a research team at Durham University has just published new research analyzing "hundreds of thousands" of cases of fracking to see whether or not they produced earthquakes. What did the researchers find? In hundreds of thousands of cases of fracking, there have been three cases where earthquakes were caused by the fracking that could be felt–and they were extremely mild, on the low end of the Richter scale. Let’s run the numbers. If we assume the sample size was 300,000, 3 divided by 300,000 is 0.00001. Your odds of getting struck by lightning standing on one foot in the middle of a snow storm in Bali are greater. Yeah, fracking does not cause earthquakes–ever. The earthquake felt in the Texas Panhandle earlier this month was not caused by fracking. It was suggested that the small quake could have been caused by an injection well or water well that was built on an active fault. That is almost certainly not the case. Amarillo sits on top of an ancient mountain range. Small earthquakes have been recorded here from the time that men have been here to feel them. The nearest oil and gas activity to the recent quake is over 7 miles away. While it is impossible to prove a negative, to suggest that oil and gas activity caused that earthquake is absurd. The significance of these studies cannot be overstated and proves–yet again–that fracking does not cause earthquakes–at least quakes that can be felt. IN THE PIPELINE Does Fracking Cause Earthquakes?. ..... ...1 From the Wellhead ..................................... 2 From the EVP ............................................. 3 New Record: .............................................. 4 Case note ................................................... 6 Markets ....................................................... 8 Priority Bills ............................................... 10 Oil & Gas Discussions .............................. 12 Guest Column ........................................... 13 Oil Export News ........................................ 14 Proposed Tax Cuts................................... 15 IPAA Legislative Priorities ........................ 16 Locations .................................................. 18 Permits ..................................................... 19 Monthly stats ............................................ 20