Public Hearing - December 12, 2011

    


       1      BEFORE THE NEW YORK STATE SENATE
              STANDING COMMITTEE ON ENVIRONMENTAL CONSERVATION
       2      --------------------------------------------------

       3                         PUBLIC HEARING

       4                 TO EXAMINE WASTEWATER PRODUCED
                            FROM HYDRAULIC FRACTURING
       5
              -----------------------------------------------------
       6

       7
                                      The Inn on the Lake
       8                              770 South Main Street
                                      Canandaigua, New York
       9
                                      December 12, 2011
      10                              11:00 a.m. to 5:00 p.m.

      11

      12

      13      PRESIDING:

      14         Senator Mark J. Grisanti
                 Chair
      15

      16

      17      SENATE MEMBERS PRESENT:

      18         Senator Patrick M. Gallivan

      19

      20

      21

      22

      23

      24

      25







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       1
              SPEAKERS:                               PAGE QUESTIONS
       2
              Eugene Leff                               13       29
       3      Deputy Commissioner
              Dept. of Environmental Conservation (DEC)
       4
              John Wood                                 74       95
       5      Legal Fellow
              Natural Resources Defense Council (NRDC)
       6
              Thomas M. Johnson                        101      109
       7      Vice President, and, Sr. Hydrogeologist
              Alpha Geoscience, Clifton Park, NY
       8
              Paul Drof                                118      126
       9      Executive Director
              Niagara Falls Water Board
      10
              Katherine Nadeau                         141      158
      11      Water & Natural Resources
                   Program Director
      12       Environmental Advocates of New York

      13      Paul Hartman                             165      176
              Director of State Government Relations
      14      Chesapeake Energy System

      15      Robert Duthie                            187      192
              President & CEO
      16      Synergena

      17      Brian Rahm                               196      212
              Post-Doctoral Research Associate
      18      Cornell University

      19      John Conrad                              215      223
              Principal, and, Sr. Hydrogeologist
      20      Conrad Geoscience Corporation

      21      Larry Shilling                           225      232
              Vice President, Western Region
      22      Casella Waste Systems, Inc.

      23      Dr. Sandra Steingraber                   236      249
              Distinguished Scholar in Residence
      24      Ithaca College

      25







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       1
              SPEAKERS:                               PAGE QUESTIONS
       2
              Frank Miller                             250      258
       3      President
              Lake Country FracWater Specialists, LLC
       4
              Sarah Eckel                              260      269
       5      Legislative and Policy Director
              Citizens Campaign for the Environment
       6
              Walter Hang                              270      282
       7      President
              Toxics Targeting
       8

       9                            ---oOo---

      10

      11

      12

      13

      14

      15

      16

      17

      18

      19

      20

      21

      22

      23

      24

      25







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       1             SENATOR GALLIVAN:  I'm Senator

       2      Patrick Gallivan.  I represent the 59th District,

       3      which includes the city and town in Canandaigua, in

       4      southern Ontario County, and then, heads east, and

       5      cuts across Livingston, Wyoming, and Erie County,

       6      ending at the lake.

       7             So, I'm coast-to-coast: Canandaigua Lake, out

       8      to Lake Erie.

       9             But, I would like to welcome everybody this

      10      morning to this hearing.

      11             Welcome, Senator Mark Grisanti, who is the

      12      Chairman of the State Senate Environmental

      13      Conservation Committee, to discuss, clearly, what is

      14      among the issues of our times.

      15             We're in the heart of the Finger Lakes.

      16             And, the constituents, my constituents, have

      17      raised, time and time again, their concerns about

      18      hydrofracking as it relates to the Finger Lakes and

      19      the water supply.

      20             So, that's among the things that we're here

      21      today to focus on.

      22             And I'd like to thank Senator Grisanti for

      23      agreeing to come out here to talk about this, which,

      24      of course, affects more than just -- than what we're

      25      facing here in the Finger Lakes, but, statewide.







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       1             And Senator Grisanti has been traveling the

       2      state, with different meetings, different hearings,

       3      in an attempt to gather as much information as

       4      possible so that we then can, ultimately, go

       5      forward, and do our jobs.

       6             But with that, I thank you again.

       7             I appreciate the fact that people took time

       8      out of their day to attend today.

       9             And, I appreciate Senator Grisanti's work,

      10      and his willingness to come here and focus on the

      11      issue of water.

      12             And, I'd like to turn it over to him.

      13             SENATOR GRISANTI:  Thank you.

      14             Again, good morning, everybody.

      15             Thanks for the introduction,

      16      Senator Gallivan.

      17             I want to thank all those who are going to be

      18      testifying today, and all those who are in

      19      attendance today.

      20             And, if there was miscommunication out there

      21      as far as how this hearing was going to be

      22      conducted, what we had is, we had people that were

      23      submitting their testimony prior to the hearing.

      24             It's, in a sense, not a hearing as it was

      25      normally done by the DEC, where many, many people







                                                                   6
       1      would testify; they would get a whole

       2      two to three minutes.

       3             This is a hearing that's going to be very

       4      specific.

       5             As you know, hydraulic fracturing represents

       6      the most important, either, economic-development

       7      opportunity in the state, but also, most important,

       8      environmental concerns to possibly ever face this

       9      state.

      10             So, as Chairman of the Senate Committee on

      11      Environmental Conservation, I have been asked with

      12      the responsibility, along with Senator Gallivan, to

      13      scrutinize this particular practice.

      14             And since the SGEIS report, it's been

      15      reviewed by many individuals, including most of you

      16      here.

      17             And during this year, I've told groups on

      18      both sides of this issue, that I would look at every

      19      issue that we have, listen to all the testimony, as

      20      it relates to fracking, and make a case-by-case

      21      determination.

      22             But, this hearing today is narrowly focused.

      23             The prior hearings that have been across the

      24      state have been very broad.

      25             This hearing is specifically focusing on the







                                                                   7
       1      byproducts of hydraulic fracturing; and,

       2      specifically, the wastewater and cuttings.

       3             So, that's what this hearing is limited to.

       4             There have been hearings held by the DEC, the

       5      Assembly, many local governments, county

       6      governments, across the state, but until today, as I

       7      said, those hearings have been a little bit broad.

       8             And our goal here today, myself and

       9      Senator Gallivan, is to just have a little bit more

      10      focus on some of the issues.

      11             So, I'm hopeful that the experts here today,

      12      and the people that are testifying, will help

      13      educate us with their experience.

      14             And for those of you that do want to submit

      15      comments, still, it has been extended by the DEC,

      16      from December 12th, which, today was going to be the

      17      cutoff date, to January 11.

      18             So, that is still going to go forward.

      19             Also, I'll remind you, if anybody is here

      20      in -- you know, we're at The Inn on the Lake,

      21      Canandaigua.  There are -- there is a restaurant

      22      here, for those of you that want to either get

      23      coffee or snacks, or something like that, that is

      24      open.

      25             But, with that said, we'll move forward.







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       1             And the first to come and testify here today

       2      is, we have from the DEC, Deputy Commissioner

       3      Eugene Leff.

       4             And I would ask you to approach here, and

       5      begin your comments.

       6                  (Off-the-record discussion at Chairman's

       7        table.)

       8             SENATOR GRISANTI:  Gene, before you get

       9      started, I got handed to me, there was another

      10      senator -- as you know, we left this open.

      11             There was going to be -- we sent it out to

      12      all 62 senators, to come here and listen to the

      13      testimonies.

      14             You can see you got myself and Pat here.

      15             We got a response from a lot of senators that

      16      weren't able to make it.

      17             One in particular was Senator Avella, who

      18      asked me to read this statement into the record, and

      19      I will do so at this time.

      20             He, basically, thanks myself and

      21      Senator Gallivan, "for scheduling this very

      22      important public hearing to discuss the wastewater

      23      issues involved in hydraulic fracturing.

      24             "It is crucial that public hearings such as

      25      this are held, and people are given an opportunity







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       1      to engage in detailed discussions on the

       2      appropriateness of allowing what is very

       3      controversial, and potentially devastating form of

       4      extracting natural gas.

       5             "I regret that I am unable to attend today's

       6      hearing.  However, I urge Senator Grisanti to

       7      continue this public-hearing process regarding

       8      hydrofracking, and respectfully ask that an

       9      additional hearing be scheduled in Albany when the

      10      legislative session resumes in January 2012, so we

      11      can expand this discussion and invite additional

      12      speakers."

      13             He goes on to state, Senator Avella:

      14             "That while I reviewed the statements of

      15      those invited to speak today with an open mind," he

      16      has "serious reservations regarding an overall

      17      safety of this form of extraction of natural gas

      18      reserves."

      19             "As many of you, I have spent countless hours

      20      researching the issue, and have willingly met with

      21      advocates on both sides of the issue, including

      22      industry supporters.

      23             "However, after long deliberation," he says,

      24      he believes "that the dangers of this injury may be

      25      too great, and the risk to human health and a vital







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       1      water resource far outweigh the proposed economic

       2      benefits, which are temporary, and certainly not

       3      guaranteed."

       4             He's "especially concerned about the health

       5      and environmental risk posed by the disposal and

       6      processing of hydraulic fracking fluids and drill

       7      cuttings."

       8             "I have come to learn, that despite the

       9      current moratorium on hydrofracking in New York, the

      10      State currently allows hydrofracking waste products,

      11      including drill cuttings, pulverized rock, and

      12      drilling fluid to be dumped in our landfills, spread

      13      on our fields and roads, and treated in waste

      14      treatment facilities that may not necessarily be

      15      equipped to properly treat such materials.

      16             "Much of this hydrofracking waste includes

      17      low-level radioactive waste, such as RA226, which is

      18      a known carcinogen, and it is especially dangerous

      19      if inhaled and ingested.

      20             "It is not a stretch of the imagination to

      21      see these waste products could very easily find

      22      their way into local groundwater, directly exposing

      23      people, by ingestion of the water or by inhaling

      24      dust that comes from the local landfills, or from

      25      roads and fields where it is been spread."







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       1             He states, "A significant amount of this

       2      hydrofracking waste is being imported from outside

       3      New York, primarily from our neighboring

       4      Pennsylvania.

       5             "Trucks cross New York State borders on a

       6      daily basis, carrying this highly dangerous waste

       7      into our state, even while we deliberate whether to

       8      allow this practice to occur within our own borders.

       9             "We have already put many of our citizens,"

      10      he feels, "at risk."

      11             "I am in the process of amending my

      12      hydrofracking legislation, Senate Bill 4220, to

      13      prohibit the acceptance, disposal, and processing of

      14      fluid, including drill cuttings used in hydraulic

      15      fracturing processes.

      16             "I am also the sponsor of legislation,

      17      S4616" -- Senator Avella, he goes on to state --

      18      "which will remove the current exemption from

      19      hazardous-waste classification given the drilling

      20      fluids, produce waters and other wastes associated

      21      with the exploration, development, or production of

      22      crude oil, natural gas, or geothermal energy."

      23             He "finds no reason why waste products from

      24      oil and natural gas activities that meet the

      25      definition of 'hazardous waste' should not be







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       1      subject to the same laws, regarding generation,

       2      transportation, treatment, storage, and disposal, as

       3      other hazardous waste products."

       4             "The risk of catastrophic danger to the

       5      environment, the health of New York State residents,

       6      and adverse economic impacts, as a result of

       7      hydraulic fracturing, far outweigh the potential for

       8      job creation and promotion of natural gas

       9      alternatively to oil."

      10             Respectfully submitted.

      11             Read into the record today, 12/12/2011.

      12             Tony Avella, 11th Senatorial District.

      13             Now, with that said --

      14             [Applause.]

      15             SENATOR GRISANTI:  -- we'll move forward from

      16      there.

      17             And one thing I want to remind everybody of,

      18      and this is something that I myself and

      19      Senator Gallivan, we talked about:  While somebody's

      20      testifying, or even after their testimony, I really

      21      don't want to get into, either people booing or

      22      clapping, or -- or one side or the other.

      23             We want to conduct this hearing in a fair

      24      manner to all those that are going to be speaking;

      25      to all those that are going to give testimony.







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       1             And, I was at some of the hearings in the

       2      past.  I was present in some of the hearings that

       3      they had in Albany.

       4             And, to be honest with you, I find it quite

       5      distasteful when somebody just, you know, out of the

       6      blue, either yells, or says certain things.

       7             Because, if it happens, and it gets out of

       8      hand, I'm going ask that you leave the hearing room

       9      so we can move forward with the people that we have,

      10      that are going to be testifying here today, both,

      11      pro and against this practice.

      12             Okay?

      13             With that, Deputy Commissioner, I appreciate

      14      you giving me the time to read that into the record.

      15             You may proceed.

      16             Thank you.

      17             EUGENE LEFF:  Good morning.

      18             Chairman Grisanti, and Senator Gallivan,

      19      thank you very much for this opportunity to testify

      20      about wastewater and cuttings that result from

      21      natural gas extraction using high-volume hydraulic

      22      fracturing, also referred to by the initials "HVHF."

      23             My name is Gene Leff.  I'm a deputy

      24      commissioner at DEC.

      25             Commissioner Martens sends his regrets that







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       1      he was unable to be here today.

       2             SENATOR GRISANTI:  Okay.

       3             EUGENE LEFF:  For nearly four years, DEC has

       4      been intensively studying the potential

       5      environmental impacts of the use of high-volume

       6      hydraulic fracturing to extract natural gas from

       7      shale formations in New York State.

       8             We just completed four public hearings on the

       9      revised draft Supplemental Generic Environmental

      10      Impact Statement, referred to as the "SGEIS," that

      11      would govern natural gas exploration using this

      12      process, and we have received more than

      13      14,000 comments already on the draft.

      14             We previously received approximately

      15      13,000 comments on an earlier draft in 2009.

      16             The latest draft builds on, and greatly

      17      improves upon, the 2009 draft.

      18             We learned much from the experience in other

      19      states, as well as from insights offered by

      20      commenters.

      21             As a result, we have identified many measures

      22      to protect our drinking water, our air, our land,

      23      and our streams.

      24             We have added significant protections

      25      recommended by scientists, engineers, and our







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       1      colleagues at the Department of Health, to ensure

       2      that any gas drilling that takes place is undertaken

       3      in a manner that protects public health and the

       4      environment.

       5             The SGEIS fully examines the potential

       6      environmental impacts of wastewater that will result

       7      from high-volume hydraulic fracturing, as well as

       8      the potential impacts of cuttings generated by

       9      drilling in deep wells anticipated to be used for

      10      the development of the Marcellus and Utica Shales.

      11             As its name indicates, high-volume hydraulic

      12      fracturing uses large volumes of water, combined

      13      with certain chemicals and proppants, to, quote,

      14      stimulate a geologic formation and free the natural

      15      gas for extraction.

      16             DEC anticipates that each individual well

      17      will be fractured, using between, approximately,

      18      2 and 8 million gallons of water.

      19             After the pressure is released of fracturing,

      20      the fracturing fluid that returns to the surface is

      21      known as "flowback water."

      22                  [Slide being shown.]

      23             And in the slide that you can see on the

      24      side, we have two columns:

      25             One referring to flowback water.  And we'll







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       1      be talking about production brine, in the other

       2      column, a bit later.

       3             Now, flowback water is typically recovered

       4      within the first two or three weeks after

       5      fracturing.  And, of the total volume of flowback,

       6      as much as 60 percent returns within the first

       7      four days.

       8             DEC has estimated, that between 216,000 and

       9      2.7 million gallons of flowback, per well, would be

      10      generated.

      11             Next slide, please.

      12                  [New slide being shown.]

      13             Data reported by the Susquehanna River Basin

      14      Commission, the "SRBC," confirms that less water

      15      than may have may have previously been anticipated

      16      returns to the surface after fracturing is

      17      completed.

      18             The SRBC data indicate that only, roughly,

      19      8 percent of the total fluid volume is recovered.

      20             In addition to less water being returned, gas

      21      companies are now recycling most of the flowback

      22      water.

      23                  [New slide being shown.]

      24             Recycling includes the removal of metals from

      25      the flowback water, either on site and at a







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       1      centralized facility.

       2             The recycled water is combined with fresh

       3      water, and the fracturing-fluid mixture is adjusted,

       4      based on the chemical makeup of the wastewater, and

       5      then used again in a fracturing process.

       6             Next slide, please.

       7                  [New slide being shown.]

       8             All wastewater generated at a well site will

       9      be required, under our SGEIS, to be collected in

      10      steel tanks.

      11             And we have, a slide on the left of this

      12      slide, are steel tanks of the type that I'm

      13      referring to.

      14             This was deemed necessary, to prevent the

      15      risk of spills, and to reduce or eliminate air

      16      pollution from volatile organic chemicals found in

      17      flowback water.

      18             And you may have read, Senators, of

      19      complaints in other states, of air pollution near

      20      well pads.

      21             Frequently, this resulted from the use of

      22      open-air impoundments for wastewater which would not

      23      be utilized in New York State.

      24             If an operator seeks to store flowback in an

      25      impoundment in a centralized location to serve







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       1      multiple well pads, this could be an exception.  It

       2      would be subject to site-specific review, and

       3      discretionary approval process would be necessary,

       4      as well as, an individual permit for the

       5      construction of the impoundment, under our SPDES

       6      law.

       7             The tanks used for flowback water would be

       8      required to be removed from the site within specific

       9      time frames shortly after fracturing operations are

      10      completed.

      11             The tanks are required to have secondary

      12      containment, to protect against tank or equipment

      13      failures, spills, leaks, or fluid releases.

      14             The well pads themselves will be subject to

      15      engineered stormwater controls.

      16             In addition, DEC has proposed a series of

      17      buffered distances between the edge of the well pad

      18      and sensitive resources.

      19                  [New slide being shown.]

      20             Over time, water from the target formation is

      21      produced with natural gas and returns up the

      22      wellbore.  This water is commonly referred to as

      23      "produced water," or, "production brine."

      24             And the slide we're now showing, again, shows

      25      on the right, some of the characteristics of







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       1      production brine, and how we intend to treat it.

       2             "Produced water" volume, or,

       3      "production brine," is highest in the first 15 to 90

       4      days after hydraulic fracturing, and then decreases

       5      over time.

       6             It is very salty, and contains a high

       7      concentration of total dissolved solids.

       8             Produced water may also have naturally

       9      occurring radioactive materials, known as "NORM,"

      10      which may contribute to the buildup of scale on

      11      production equipment.

      12             If that occurs at certain levels, as

      13      determined by the Department of Health, a

      14      radioactive-materials handling license will be

      15      required, primarily for the protection of workers.

      16             In the Susquehanna River Basin, of

      17      1.6 billion gallons of fresh water delivered to

      18      well pads in the basin, only 42 million gallons, or

      19      2.6 percent, required disposal according to the

      20      SRBC.

      21             That's because, so much of the water is

      22      being, either, retained in the geologic formations

      23      deep in the ground, or, being reused or recycled in

      24      the process.

      25             Although the volume of wastewater which







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       1      requires disposal is expected to be reduced as a

       2      result of recycling, there still will be significant

       3      quantities of wastewater that will be generated.

       4             And as to this, DEC will not issue any permit

       5      for drilling until it is satisfied that the

       6      wastewater will be sent to a properly permitted

       7      facility, either here in New York or in other

       8      states.

       9                  (New slide showing.)

      10             Applicants will have to provide DEC with

      11      their disposal plans before any drilling permit is

      12      issued, including contingency disposal plans.

      13             At this point in time, besides recycling, the

      14      disposal methods anticipated to be proposed, for

      15      both flowback water and produced water, are

      16      injection and disposal well -- injection into

      17      disposal wells or processing at water treatment

      18      plants.

      19             And, here, we are showing in the slide some

      20      of the main requirements for wastewater treatment

      21      plant, "WWTP," approval.

      22             But, before I address that, first, I want to

      23      refer to the disposal-well option.

      24             These are frequently used in other states,

      25      including Ohio and Texas, but they are uncommon in







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       1      New York.

       2             Disposal wells must be permitted if they are

       3      proposed, by both EPA and DEC.  They would require a

       4      site-specific review under our SEQRA law in

       5      New York.  And that's been our State's policy since

       6      at least since 1992, for oil, gas, and

       7      solution-mining issues.

       8             However, disposal of wastewater at a well

       9      permitted in another state is an acceptable means of

      10      disposal as well.

      11             For a wastewater treatment plant to receive

      12      any new waste stream, including flowback water or

      13      production brine, it must go through a longstanding

      14      review process, pursuant to the Clean Water Act, and

      15      the State Pollution Discharge Elimination System,

      16      "SPDES," program which requires permits.

      17             Any plants that wish to accept flowback would

      18      have to have a DEC- or EPA-approved pretreatment, or

      19      mini pretreatment, program.

      20             First, the plant needs to know the makeup of

      21      the waste stream.

      22             A technical engineering analysis must be

      23      done.  This is known as a "headworks loading

      24      analysis."

      25             This must be undertaken, to determine if the







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       1      facility is capable of accepting the waste while

       2      continuing to meet its limits on effluent.

       3             The operators must also determine whether

       4      additional capacity to accommodate this waste exists

       5      at the plant.

       6                  [New slide being shown.]

       7             DEC sent a letter to all wastewater treatment

       8      plants in 2008, reminding them of the requirement to

       9      undertake these reviews, and to work with DEC, to

      10      ensure that they would be able to meet discharge

      11      limits and permit requirements.

      12             And we have reiterated the procedure in the

      13      SGEIS.  This is in our Appendix 22.

      14             DEC may modify a facility's SPDES permit to

      15      allow for acceptance of this source of wastewater,

      16      and include additional permit limitations and

      17      monitoring requirements associated with the

      18      wastewater, to ensure compliance of all relevant

      19      standards.

      20             The SPDES permit would also be modified to

      21      include limitations on the levels of NORM --

      22      "naturally occurring radioactive material" -- that

      23      can be discharged to the facility, to ensure that

      24      there are no effects on sludge disposal of the

      25      facility.







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       1             Additionally, pretreatment would be required

       2      before material is brought to the facility.

       3             And as you know, Senators, robust enforcement

       4      authority is available to ensure -- to assure

       5      compliance with SPDES permits.

       6             Presently, there are no plants that are

       7      authorized to accept wastewater from high-volume

       8      hydraulic fracturing in New York.

       9                  [New slide being shown.]

      10             However, a facility dedicated to the

      11      treatment of wastewater from the drilling industry

      12      may be proposed, and existing plants may seek to

      13      address these industrial wastewaters, or, other

      14      technologies could be developed to treat such

      15      wastewater as the use of this technology continues.

      16             For example:  A new private facility was

      17      recently permitted to receive HVHF wastewater in

      18      Pennsylvania.

      19             So, I've discussed the publicly operated

      20      treatment facilities, and now mention the private

      21      facilities which would play an important role in

      22      this wastewater disposal process.

      23                  [New slide being shown.]

      24             Now, the diagram that we're showing now is,

      25      obviously, not legible to people in the back of this







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       1      hall, but what we wanted to do --

       2             [Inaudible audience comments.]

       3              -- we wanted to show you the process that a

       4      publicly operated treatment plant would have to go

       5      through to get authorization from DEC to accept HVHF

       6      wastewater.

       7             It's an extremely careful, intensive process.

       8             And, at each of these steps in the process,

       9      if our standards are not met, it's, "Go back to

      10      square one.  You cannot get authorization to accept

      11      this wastewater unless you satisfy all of these

      12      requirements."

      13                  [New slide being shown.]

      14             Moving on to the subject of solid cuttings:

      15             When a well is drilled, rock cut by the bore

      16      is returned to the surface along with any drilling

      17      fluids used.

      18             Here, I'm not referring to hydraulic

      19      fluids -- hydraulic fracturing fluids; but, rather,

      20      water, or other fluids, that are used to drill the

      21      wellbore in the first place.

      22             The rock that comes up is known as

      23      "cuttings."

      24             The fluids, in this instance, do not contain

      25      any additives of the type used in fracturing fluids







                                                                   25
       1      that have raised concerns.

       2             These materials are generated well before the

       3      well is fractured, and they do not come into contact

       4      with fracturing fluids.

       5             Next slide, please.

       6                  [New slide being shown.]

       7             Cuttings are directed to tanks that are part

       8      of a closed-loop system.

       9             And the slide now shows, on the right side,

      10      such a closed-loop system.

      11             Now, it is possible to use a reserve pit,

      12      which is pictured on the left side, for cuttings,

      13      and the fluids that are utilized in this very early

      14      stage, which do not contain any toxic materials.

      15             Cuttings can be disposed of on site if the

      16      drilling has been done with water, or simply with

      17      air; that is, without the use of oil or

      18      polymer-based fluid or mud.

      19             If polymers or oil are used, the cuttings are

      20      considered "solid waste" under our regulations,

      21      however, they are eligible for disposal in an

      22      ordinary municipal solid-waste landfill.

      23             Again, they do not contain the toxic

      24      materials that are associated with fracturing.

      25                  [New slide being shown.]







                                                                   26
       1             Cuttings from the Marcellus formation may

       2      contain pyrite.

       3             And slide now refers to that substance.

       4             Pyrite is a natural mineral that is found in

       5      the Marcellus formation, and can result in acid rock

       6      that could potentially leach into groundwater.

       7             To prevent any potential leaching of acids,

       8      any on-site burial of cuttings would be permitted,

       9      under our SGEIS, only if an acid drainage plan is

      10      submitted, and approved by DEC.

      11             The plan would require management and

      12      reclamation of the impacted area of the site as

      13      well.

      14             Basically, the acid-drainage plan requires

      15      that some lime or limestone, or other base, is used

      16      to neutralize the acid.

      17             Cuttings from the Marcellus formation may

      18      also contain naturally occurring radioactive

      19      material, or "NORM," as I mentioned.

      20             This is due to the high organic content of

      21      the formation, and is typically in the form of

      22      uranium, thorium, and their decay products.

      23             However -- and this is what I want to

      24      stress -- the concentrations of radioactivity, while

      25      somewhat elevated, are similar to those naturally







                                                                   27
       1      encountered in the surrounding environment.

       2             Our experts have reviewed the data on the

       3      levels of NORM, as well as, experts from the

       4      Department of Health, and they are confident that

       5      NORM from cuttings is not a public-health concern.

       6             All the wastes, including wastewater and

       7      cuttings, will be tracked using a system similar to

       8      the one that we have in place for medical waste.

       9             This will ensure that DEC can monitor the

      10      movement of wastes from cradle to grave.

      11             Some members of the public have misunderstood

      12      the SGEIS on this point.

      13             We are not saying that these wastes are

      14      medical waste; rather, we are adapting a tracking

      15      procedure that was developed for medical waste, for

      16      this new purpose.

      17             Also, the wastes are treated as industrial

      18      waste, and any transportation from the well pad to a

      19      disposal site must be done by a DEC-permitted

      20      hauler.

      21             All of these issues are fully discussed in

      22      the SGEIS.

      23             As was previously pointed out,

      24      Commissioner Martens has recently extended the

      25      comment period for the draft SGEIS, and proposed







                                                                   28
       1      regulations, through January 11th.

       2             We encourage the public to provide us with

       3      detailed comments on waste disposal, on the

       4      mitigation measures that we have proposed, as well

       5      as all the other issues that have been raised by

       6      this subject.

       7             Last, I want to stress that it is important

       8      that proper oversight and enforcement of all aspects

       9      of gas drilling, including the management of wastes,

      10      be provided.

      11             This is key to ensuring protection of public

      12      health and the environment.

      13             Commissioner Martens has convened an advisory

      14      panel on HVHF, which was tasked with developing

      15      recommendations on state and local resource needs to

      16      properly oversee, monitor, and enforce conditions

      17      for HVHF in New York.

      18             We expect those recommendations to be issued

      19      sometime in 2012.

      20             Thank you.

      21             I am happy to answer any questions you may

      22      have, and appreciate your interest and engagement on

      23      this important issue.

      24

      25







                                                                   29
       1             SENATOR GRISANTI:  Thank you,

       2      Deputy Commissioner.

       3             Naturally, we do have quite a few questions.

       4             If you can go back to the slide that showed

       5      the open pit?

       6             The one on the left, where it's got a reserve

       7      pit, now, you're saying that that is, basically,

       8      just for cuttings; is that correct?

       9             EUGENE LEFF:  That's for cuttings, and the

      10      fluid that's used to drill the well initially.

      11             Yes.

      12             SENATOR GRISANTI:  Which there is no contact,

      13      prior, with fracking fluids?

      14             EUGENE LEFF:  That's correct.

      15             SENATOR GRISANTI:  Okay.

      16             Now, isn't it true that, in Pennsylvania,

      17      let's say, in the past, that there was those holding

      18      ponds that were holding waters for fracking fluid?

      19             EUGENE LEFF:  I believe there were holding

      20      impoundments for fracking fluid that had been

      21      utilized, and was flowing back to the surface.

      22             And that is what we are not permitting under

      23      the SGEIS.

      24             SENATOR GRISANTI:  Okay, so we're clear:  So,

      25      as far as those open pits that may have fracking







                                                                   30
       1      fluids, and what may have happened in Pennsylvania,

       2      is, some of those lying ponds may have had cracks,

       3      where you had this fluid leaking into potential well

       4      sites, the buffer zone may have -- not have been at

       5      a distance that New York has, that would create some

       6      of those problems with regards to some people living

       7      in those areas.

       8             Is that correct?

       9             EUGENE LEFF:  Yes, that is correct, Senator.

      10             SENATOR GRISANTI:  What -- can you explain,

      11      briefly, what the difference is, between what the

      12      DEC is doing, with regards to the fracking fluid and

      13      the cuttings, as compared to what was done in

      14      Pennsylvania?

      15             EUGENE LEFF:  As you know, Senator, there

      16      were a series of articles in the "New York Times"

      17      that discussed that subject.

      18             And what the "Times" pointed out, was that,

      19      fluids of the type that we've discussed, flowback

      20      water and production brine, were taken, in

      21      Pennsylvania, to treatment facilities.

      22             There was no report indicating that

      23      pretreatment was required at those facilities.

      24             We would require pretreatment.

      25             There was no indication that a headworks







                                                                   31
       1      analysis was conducted at those facilities.

       2             We would require that type of analysis.

       3             Only after all of those diamonds in the

       4      process that we outlined have been satisfied, would

       5      a facility in New York be able to do anything of the

       6      nature that was attempted in -- that was done in

       7      Pennsylvania.

       8             And, so, the result of what was done in

       9      Pennsylvania, was that there were reports that

      10      contaminants actually went through the treatment

      11      facilities, had not been stopped or eliminated by

      12      the facility, and actually entered receiving waters,

      13      where, in fact, drinking water may have been

      14      extracted.

      15             That process would not occur in

      16      New York State because the treatment facility would

      17      be violating its permit by discharging contaminants

      18      in that manner.

      19             With respect to cuttings as well, I'm not

      20      aware that Pennsylvania had an acid-drainage

      21      requirement.

      22             We would also impose careful requirements on

      23      the acceptance by our municipal landfills of

      24      cuttings, to make sure that high levels of

      25      radioactivity do not exist in those landfills.







                                                                   32
       1             In fact, we are proposing, and the SGEIS

       2      points this out, a specific limit on the radioactive

       3      reading of any cuttings.

       4             It's a "15 picocuries per gram" limit, which

       5      is below what the studies indicate is the level at

       6      which any risk would occur.

       7             SENATOR GRISANTI:  Okay.

       8             Now, you know that we recently passed in the

       9      Senate, and also in the State, a water-withdrawal

      10      bill and water-withdrawal regulation.

      11             EUGENE LEFF:  Yes.

      12             SENATOR GRISANTI:  And, due to the large

      13      amounts of water that may be required to frack some

      14      of these wells, what are some of the steps that are

      15      taken in order to comply with that particular

      16      avenue, with regards to the water-withdraw bill?

      17             EUGENE LEFF:  For the HVHF process, we have

      18      identified specific ecological limits on the

      19      withdrawal of water from our rivers, streams, and

      20      other sources.

      21             We're requiring very careful measurements to

      22      be taken, to make sure that the amount of water

      23      extracted does not reduce the flow in those streams

      24      to levels that become harmful to the biota -- the

      25      animals, the invertebrates, et cetera -- who rely on







                                                                   33
       1      those streams.

       2             SENATOR GRISANTI:  And the -- I mean, we know

       3      in the past, the DEC's been severely cut, as far as,

       4      with the number of people; the people that are able

       5      to do any sort of permitting, inspectors, so on and

       6      so forth.

       7             Is it the plan, either through the DEC or

       8      through legislation -- because it's that I'm for --

       9      to make sure, that, if this procedure is to go

      10      forward, that the cost for the permitting, or any

      11      sort of cost, is earmarked to the DEC, to be able to

      12      hire additional staff, to hire additional people to

      13      look at these permitting processes, to do the

      14      inspections, to have testing done of the wells,

      15      both, prior, during, and after any of these well

      16      pads are put into place?

      17             Is that something, that, in the SGEIS report,

      18      has been talked about: to move forward to strengthen

      19      the DEC, so it can have a handle on this, and not

      20      have things slip by?

      21             EUGENE LEFF:  As you know, the Commissioner

      22      has convened an advisory panel --

      23             SENATOR GRISANTI:  Right.

      24             EUGENE LEFF:  -- and tasked it to look at the

      25      staffing levels that will be required to do the







                                                                   34
       1      various important tasks that you just mentioned,

       2      Senator, and, to identify specific revenue sources

       3      that would be earmarked to pay for that additional

       4      staff.

       5             The Commissioner has said:  If we don't

       6      receive that revenue for that purpose, we will

       7      simply not issue any permits that we cannot

       8      adequately monitor.

       9             And, so, we need the cooperation of the

      10      Senate, and the other arms of the government, to

      11      make sure that that adequate staffing is funded.

      12             SENATOR GRISANTI:  Now, you mentioned that,

      13      as of right now, there is no facility in New York

      14      that can handle any flowback water.

      15             Is that correct?

      16             EUGENE LEFF:  They are not presently

      17      authorized to do so.

      18             They could, possibly, if they do the adequate

      19      study, they may well have the ability to do it with

      20      minor modification to their facility.

      21             It would depend on a review of each

      22      individual facility.  And those that would require

      23      some new construction or modification of their

      24      process would have to do that work in order to

      25      accept those fluids.







                                                                   35
       1             SENATOR GRISANTI:  And you're saying, at the

       2      present time, in Pennsylvania, there's a private

       3      facility that has recently surfaced, that is doing

       4      that?

       5             EUGENE LEFF:  That's correct.

       6             SENATOR GRISANTI:  Prior to that, they were

       7      sending the flowback water to Ohio, to dispose of it

       8      in wells?

       9             EUGENE LEFF:  As well as, sending some of the

      10      water to their own publicly operated treatment

      11      plants.

      12             SENATOR GRISANTI:  Any idea on the cost of --

      13      what creating a private facility, to treat the

      14      hydraulic fracturing fluid, what the cost would be

      15      on a private facility?

      16             EUGENE LEFF:  I don't know that -- the answer

      17      to that, but I'm convinced that those investors and

      18      those corporations that went ahead, did that

      19      calculation, and determined that it was a

      20      profit-making operation.

      21             SENATOR GRISANTI:  Okay.

      22             Now, one of the things that people talk about

      23      is, hazardous waste, or some of the waste, that may

      24      be in this flowback.

      25             Do you know, are you able to tell us, how the







                                                                   36
       1      hazardous waste is classified, or regulated, in

       2      New York State now?

       3             EUGENE LEFF:  Many of the same precautions

       4      that we apply to hazardous waste are applied, under

       5      the SGEIS, to some of the wastes generated from this

       6      process.

       7             In general, if hazardous waste has been

       8      generated, it must go to a designated type of

       9      landfill, or, other disposal facility.

      10             We have been very careful about identifying

      11      what needs to go to such a special facility; and

      12      what can, from the hydrofracking process, go to a

      13      municipal solid-waste landfill.

      14             The key is, we looked at the particular

      15      wastes here, and their characteristics, and have

      16      adopted the measures that are necessary for this

      17      particular waste stream in all its different forms.

      18             SENATOR GRISANTI:  Okay.  And in the SGEIS,

      19      it talks about protocols of disclosing what the

      20      chemicals are in the water?  Is that correct?

      21             EUGENE LEFF:  That's correct.

      22             SENATOR GRISANTI:  Okay.

      23             EUGENE LEFF:  And if I may add:  In order for

      24      a treatment facility to accept wastes of this kind,

      25      they would have to be informed of precisely what is







                                                                   37
       1      in the wastewater, including the additives that have

       2      been used in the fracturing process.

       3             SENATOR GRISANTI:  Okay.

       4             Now, you talked about, uhm, that you're going

       5      to track this as if it was -- you know, I'm not

       6      saying it is medical waste -- but, what made you go

       7      by that particular procedure of, from cradle to the

       8      grave, of tracking this as if it were medical waste?

       9             Is it just that, that there's a procedure in

      10      place already, right now?

      11             EUGENE LEFF:  Well, it was obvious to us that

      12      there was a concern about proper disposal.  And, we

      13      want to have the ability to verify that all the

      14      waste that's generated from this process has been

      15      properly disposed of.

      16             SENATOR GRISANTI:  Okay.

      17             And, when we saw that site about an open-loop

      18      system and a closed-loop system, what does the DEC

      19      prefer?  Actually, a closed-system?

      20             EUGENE LEFF:  Well, we have authorized, for

      21      the cuttings, either, of the open or the closed.

      22             SENATOR GRISANTI:  Okay.

      23             EUGENE LEFF:  So --

      24             SENATOR GRISANTI:  And that's based on

      25      your -- the DEC, and others, that have basically







                                                                   38
       1      stated, that, in those cuttings, that there's not

       2      any hazardous materials?

       3             EUGENE LEFF:  That's correct.

       4             SENATOR GRISANTI:  Okay.

       5             EUGENE LEFF:  Now, there is the potential for

       6      higher levels of radioactivity, and that is going to

       7      be monitored when those materials are then brought

       8      to a landfill.

       9             SENATOR GRISANTI:  Okay, a landfill that's

      10      designated to handle that?

      11             EUGENE LEFF:  That's correct.

      12             SENATOR GRISANTI:  Okay.

      13             Now, do you know if, uhm -- if we're

      14      receiving any of this material from Pennsylvania and

      15      disposing of it in landfills here?

      16             EUGENE LEFF:  At the present time, I don't

      17      believe that the wastewater from Pennsylvania is

      18      being disposed of in New York State.

      19             And, I'm not aware -- yes, there are cuttings

      20      that have been accepted in the Chemung landfill, but

      21      I'm not sure whether they originated in Pennsylvania

      22      or New York.

      23             SENATOR GRISANTI:  Okay.

      24             And are those cuttings the same cuttings that

      25      we're referring to, that do not have -- or, they may







                                                                   39
       1      have a higher radioactive material, but, you're

       2      saying, it's not enough to -- in your studies, to

       3      cause health concerns?

       4             EUGENE LEFF:  That is exactly right.

       5             SENATOR GRISANTI:  Okay.

       6             And at the present time, I mean, is no

       7      hydrofracking wells -- well, no permits have been

       8      issued?

       9             EUGENE LEFF:  For high-volume,

      10      hydrofracking --

      11             SENATOR GRISANTI:  Right.

      12             EUGENE LEFF:  -- that's correct.

      13             There is, and has for a considerable amount

      14      of time, been hydraulic fracturing in lower volume

      15      of water uses, vertical wells.  And that has been

      16      conducted without any significant problems of any

      17      nature.

      18             SENATOR GRISANTI:  Okay, well, let's touch on

      19      that for a minute, because I know that the EPA, in

      20      Wyoming County, came out with a site-specific

      21      problem with one of the -- I'm assuming it was a

      22      vertical well there, in Wyoming County, that had

      23      issues.

      24             SENATOR GALLIVAN:  Wyoming State.

      25             SENATOR GRISANTI:  Wyoming State.







                                                                   40
       1             I'm sorry.

       2             -- in Wyoming State.

       3             What was the difference that would be

       4      different, between New York and what they did in

       5      Wyoming State?

       6             EUGENE LEFF:  Well, the report issued by EPA

       7      last week, on Pavilion, Wyoming, was really

       8      shocking, in indicating the poor practices with

       9      respect to the cementing of the wellbore used in

      10      Wyoming.

      11             There were instances, where there was

      12      inadequate cement around the pipe, or casing, that's

      13      used to get down into the formation.

      14             Now, that's a very serious problem, because,

      15      whatever materials, such as the fluids used in

      16      hydraulic fracturing, or gas itself that may be in

      17      the subsurface, can then move alongside the casing,

      18      up to the shallow areas.

      19             And EPA hasn't reached a conclusion yet,

      20      about whether that was the precise cause, but, there

      21      was contamination of drinking water in Wyoming.

      22             The EPA said, it may have been due to the

      23      insufficient cement.  It may have been due to the

      24      permeability of the rock in those locations.

      25             And I might say, in New York State, in the







                                                                   41
       1      vicinity of the Marcellus Shale, we have very

       2      different geology; less permeable than was present

       3      in Wyoming.

       4             And it may, they thought, have been due to

       5      the creation of fractures that extended up into the

       6      shallow drinking-water areas.

       7             One of the crucial differences in New York,

       8      is that, we will not issue a permit, under the

       9      SGEIS, for any drilling proposed to be closer than

      10      2,000 feet below the ground surface.

      11             What they had in Wyoming, in this instance,

      12      was drilling at 1,200 feet below the ground surface.

      13      And there was only a separation of a

      14      few hundred feet between the drilling process that

      15      was going on and the drinking-water wells.

      16             Under our SGEIS, there must be at least

      17      1,000 feet of separation.

      18             And that's a very big difference.

      19             SENATOR GRISANTI:  Okay, so, basically, it's

      20      the depth, and, as well the casings; which I know,

      21      in Pennsylvania, they would have a layer of steel

      22      and a layer of concrete.

      23             And, in New York, they're talking about

      24      having a triple layer under the SGEIS report.

      25             It's something, you know -- or, a topic that







                                                                   42
       1      was at another hearing:  It kind of goes below the

       2      skull.

       3             But, that's, basically, the difference

       4      between -- another difference between Pennsylvania

       5      and New York?

       6             EUGENE LEFF:  Yes, it is.

       7             SENATOR GRISANTI:  Okay.

       8             Now --

       9             EUGENE LEFF:  And if I could add, in

      10      connection with your earlier question, Senator, the

      11      need for staff comes into play here.

      12             We want our staff from our regional office in

      13      this area, to be out at the well pad to check that

      14      cementing, to make absolutely certain that it's been

      15      done.

      16             In Pennsylvania, they didn't send staff to do

      17      that.

      18             And we have proposed to the advisory panel,

      19      several key parts, points in the process, at which

      20      we have to have DEC staff at the well pad.

      21             SENATOR GRISANTI:  Okay.

      22             Now, one of the other areas that -- that is

      23      asked about, or questions are sent about, with

      24      regards to this water, is the potential for, either,

      25      spills, or trucking accidents, or something along







                                                                   43
       1      those lines.

       2             And I know the SGEIS touched on this a little

       3      bit.

       4             What are -- what do you plan on proposing

       5      with regards to, either, the prevention of these

       6      spills, or potential for trucking accidents, with

       7      regards to this fluid?

       8             EUGENE LEFF:  Well, any transporter, as I

       9      mentioned, must be permitted under our existing

      10      regulations, so there are very careful requirements,

      11      as well as DOT regulations on transporters of

      12      material of this nature.

      13             There will also have to be a transportation

      14      plan submitted by the operator of a well pad, that

      15      indicates the routes that are -- to be used for

      16      transportation.  And that would be subject to our

      17      approval as well.

      18             We also recognized that there could be a need

      19      to amplify the local spill-response staffs that

      20      exists.

      21             And the advisory panel is going to consider

      22      that, and determine whether special revenues needs

      23      to be raised, in part, for that purpose as well.

      24             SENATOR GRISANTI:  The -- they talk about the

      25      brine water being used on some roads for de-icing.







                                                                   44
       1      And -- and you've heard of that.

       2             I mean, is that an appropriate way to reuse

       3      this fracking water?

       4             Or, is it regulated?

       5             Or, is it something that is considered?

       6             EUGENE LEFF:  Well, let me distinguish

       7      between the two types of water that we referred to

       8      earlier.

       9             The flowback water would not be permitted for

      10      that road-spreading use.

      11             We are open to the possibility, depending on

      12      the particular characteristics of the production

      13      brine.

      14             There is a potential that the radioactivity

      15      would be low enough, and the other constituents of

      16      the production brine would be sufficiently low,

      17      that, upon review of all the data, we would make an

      18      individual determination that a particular quantity

      19      of production brine could be used in road spreading,

      20      only after its safety has been verified.

      21             SENATOR GRISANTI:  Now, there's a -- and I

      22      know you didn't have a chance to look at it, but you

      23      said it was interesting enough, that came out of

      24      RIT, and, it's something that is being run through

      25      other colleges as well; and that's the -- that







                                                                   45
       1      airborne remote sensing technology, that we talked

       2      about, that would actually be able to sense, not

       3      only air, but, the technology is so advanced, for

       4      well-site development, particularly flowback waste,

       5      rapid assessments of any impact of surface or

       6      near-surface releases.

       7             And I take it that's something -- I believe

       8      it's been submitted, but that's something that seems

       9      to be another avenue of assurances for the public,

      10      for the environment -- in protecting the

      11      environment.

      12             Would you agree?

      13             I know you just had a chance to look at it

      14      briefly, but --

      15             EUGENE LEFF:  It is possible that this could

      16      become a component of the precautions that are

      17      taken.

      18             It appears that, what RIT is doing here is

      19      still in a prototype, or pilot phase, research and

      20      development, and, is not ready to be deployed.

      21             But, certainly, anything that -- like this,

      22      that could contribute to the protection of

      23      groundwater and air would be looked at very

      24      carefully.

      25             SENATOR GRISANTI:  Well, I'm going to go over







                                                                   46
       1      my notes a little bit here, that I made.

       2             I know that Senator Gallivan may have some

       3      questions, so I'll turn the mic over to him at this

       4      point in time.

       5             SENATOR GALLIVAN:  Thank you, Chairman.

       6             I do have several questions, Commissioner,

       7      and I'm going to bounce around just a little bit.

       8             If we could go back to the - you mentioned

       9      Chemung County as a recipient of, you believe,

      10      cuttings, although you don't know what their source

      11      is.

      12             Why is that?

      13             EUGENE LEFF:  Why...?

      14             SENATOR GALLIVAN:  Yeah, why don't you know

      15      what the source of the materials is?

      16             EUGENE LEFF:  Well, I don't have that

      17      information with me today, but, we have very

      18      carefully reviewed the Chemung County situation.

      19             In fact, Commissioner Martens issued a

      20      lengthy opinion -- or, decision, in an

      21      administrative proceeding, relating to it.  And it

      22      certainly has all that information in it.

      23             SENATOR GALLIVAN:  So I -- so the -- in the

      24      permitting process for the landfills, is that

      25      something that's required -- when the various trucks







                                                                   47
       1      are bringing in the materials, they're required to

       2      identify where they came from?

       3             EUGENE LEFF:  Yes, they are.

       4             SENATOR GALLIVAN:  Or not?

       5             EUGENE LEFF:  Yes, they are.

       6             SENATOR GALLIVAN:  Okay, thank you.

       7             Now, you mentioned -- or, we've talked about

       8      the cuttings, and we've talked about how they've

       9      been analyzed, and they don't rise to the level of

      10      producing any public-health concerns.

      11             For the layperson, like me, what is that

      12      level, and how do you get to that point?

      13             And, what then puts them over the edge that

      14      would make them a public-health concern?

      15             EUGENE LEFF:  There was a study by the

      16      Argonne National Lab, that generated a level of

      17      50 picocuries per gram, which is the unit for

      18      measuring radioactivity of this type.

      19             And at that 50, "five oh," level, there was

      20      some evidence to support a risk of health impacts.

      21             What we have done is, worked back from that

      22      level, to make sure we don't get close to it.

      23             And, so, we will make sure that the levels

      24      that go into a landfill or go into a wastewater

      25      treatment facility are well below that.  A fraction







                                                                   48
       1      of that.

       2             And if I may, this is the basic method that

       3      we utilize to set standards for air pollution.

       4             And I'm just not -- not talking just about

       5      DEC, but, EPA, all of the states; air pollution,

       6      water pollution; we have studies that indicate what

       7      the level at which you may see a health impact is,

       8      and we work back from that, to limit emissions into

       9      the air, discharges into the water.

      10             In all cases, we make sure that the levels

      11      that we're permitting are well below the level at

      12      which some study indicates a possible health threat.

      13             SENATOR GALLIVAN:  Do you regularly test

      14      that, or monitor that, at the different landfills?

      15             And let's be specific with, Chemung.

      16             I mean, which I understand, it's part of how

      17      you treat other materials.

      18             EUGENE LEFF:  There will be monitoring of

      19      that nature, yes.

      20             SENATOR GALLIVAN:  Is there now?

      21             EUGENE LEFF:  There is at the Chemung

      22      landfill, yes.

      23             SENATOR GALLIVAN:  Do we have to be concerned

      24      about the cumulative impacts of the radiation?

      25             I mean, the -- meaning, the volume, not the







                                                                   49
       1      individual content of each load that's brought?

       2             EUGENE LEFF:  It could be an issue if a

       3      landfill asked us for permission to create a

       4      separate part of the landfill that was only taking

       5      fracking cuttings.

       6             In that case, what we call "a monofill," you

       7      might get such a concentration of this material that

       8      the normal limitation would be exceeded.

       9             But what we're looking at, at Chemung, and

      10      what we expect at most -- at these landfills,

      11      generally, is that, the cuttings will be stored,

      12      will be disposed and placed, with the municipal

      13      solid waste, and commercial waste of all types, and

      14      that we will not have that type of cumulative

      15      effect.

      16             SENATOR GALLIVAN:  Is the designation of

      17      these cuttings as "industrial waste," was that

      18      something that was designated prior to our concerns

      19      in New York State?

      20             EUGENE LEFF:  Well, that's a designation that

      21      we adopted, that has been in place for -- under our

      22      solid-waste regulations for many years.

      23             And when we address this particular waste

      24      stream, it appeared that this was the suitable

      25      category to address, and regulate, this waste







                                                                   50
       1      stream.

       2             SENATOR GALLIVAN:  I've heard conflicting

       3      reports -- reports/rumors --

       4             I haven't seen anything in print, so I don't

       5      know.

       6             -- but, what about, in Pennsylvania; do they

       7      still receive these cuttings in their landfills?

       8             I had received some information that

       9      Pennsylvania might no longer be allowing this

      10      disposal.

      11             EUGENE LEFF:  I had heard that the treatment

      12      facilities were no longer accepting the waste from

      13      this -- the wastewater, but I'd -- I believe that

      14      was not a binding directive --

      15             SENATOR GALLIVAN:  I'm asking about the

      16      cuttings.

      17             EUGENE LEFF:  -- and I don't recall any

      18      similar restriction being imposed with respect to

      19      the cuttings in Pennsylvania.

      20             SENATOR GALLIVAN:  But you're not completely

      21      aware --

      22             EUGENE LEFF:  I'm not certain.

      23             SENATOR GALLIVAN:  Which is okay.

      24             With the cutting -- what's being received in

      25      Chemung County, and maybe in some other places in







                                                                   51
       1      the state, am I to understand correctly, that it is

       2      just solids?

       3             EUGENE LEFF:  That's correct.  They cannot

       4      accept wastewater.

       5             SENATOR GALLIVAN:  Okay, thanks.

       6             Let me move to the medical-waste tracking

       7      system, mostly because I'm not familiar with it.

       8             Are you able to take us through the process?

       9             I mean, you're going to use a process similar

      10      to the medical-waste tracking system?

      11             EUGENE LEFF:  It will be similar.

      12             There will be special forums --

      13             SENATOR GALLIVAN:  Can you take us through

      14      the steps?

      15             EUGENE LEFF:  Yes.

      16             Upon the generation of waste at the well pad,

      17      the operator of the well pad would be required to

      18      fill out a DEC form, specifying what the nature of

      19      the waste is, the volume, and the characteristics of

      20      the waste.

      21             Similarly, when the waste was transferred to

      22      a hauler, the operator of the truck would be

      23      required to also fill out a "waste form,"

      24      documenting the same types of information.

      25             Upon delivery of the waste to a facility for







                                                                   52
       1      disposal, the operator of the facility would have to

       2      fill out a form as well.

       3             All of these forms would be required to be

       4      retained by those individuals, those entities.

       5             And, DEC would have the ability to review, at

       6      any point, any of those documents, to verify that

       7      all of the requirements of the regulations and SGEIS

       8      have been satisfied.

       9             SENATOR GALLIVAN:  I mentioned at the

      10      beginning, my district included Livingston County as

      11      well.

      12             And, if you remember, going back a number of

      13      years, there was a mine collapse --

      14             EUGENE LEFF:  Uh-huh.

      15             SENATOR GALLIVAN:  -- a salt-mine collapse.

      16             And what came out of that, was some ongoing

      17      testing and treatment of the brine water.

      18             Well, a year or so ago, I visited a plant

      19      of -- a water treatment plant in Livingston County.

      20             And they indicated that they were involved

      21      in -- I may not be terming it right -- a

      22      demonstration projection? an experimental-type

      23      project? where, under the auspices of the DEC, they

      24      treated 300,000 gallons of fracking water that came

      25      up from Pennsylvania.







                                                                   53
       1             I have several questions.

       2             First:  Is that accurate -- or, is it

       3      accurate?

       4             Secondly:  If it is, what were the results of

       5      that, if you know?

       6             EUGENE LEFF:  Well, we are aware that there

       7      was hydraulic fracturing fluid that was received in

       8      Canandaigua, perhaps.  I'm not sure which facility

       9      you're referring to, but there were about

      10      six facilities, that we are aware, accepted vertical

      11      drilling wastewater.

      12             I'm not aware of any high-volume hydraulic

      13      fracturing wastewater from any location, any state,

      14      that was accepted in New York.

      15             And we don't believe that was the case.

      16             But, we are not aware of any violation that

      17      occurred in connection with those earlier examples

      18      of treatment of wastewater from vertical processes.

      19             SENATOR GALLIVAN:  When those six plants that

      20      were accepting the wastewater --

      21             EUGENE LEFF:  Yes.

      22             SENATOR GALLIVAN:  -- was that done in

      23      conjunction with DEC, or is that something they were

      24      doing on their own?

      25             EUGENE LEFF:  Well, they are required to







                                                                   54
       1      report to DEC.

       2             And, frankly, I don't know the history of

       3      each of those instances --

       4             SENATOR GALLIVAN:  I understand.

       5             EUGENE LEFF:  -- and I can't verify what the

       6      interaction with the agency was at that time.

       7             SENATOR GALLIVAN:  Can you -- going back to

       8      the -- the wastewater, the cuttings --

       9             I've reviewed the report.  I don't have

      10      1,100 pages committed to memory, though, so, forgive

      11      me.

      12             -- but, can you talk about some of the

      13      specific enforcement activities as it relates to the

      14      byproduct?

      15             I mean, site visits; physically, people

      16      sitting there looking at pieces of paper, how much

      17      will they be on site? -- assuming you have the

      18      necessary resources for that.

      19             I certainly understand that -- and it's very

      20      clear you don't have the resources now to

      21      proper-regulate any type of activities, in the

      22      calling upon the Legislature to fund it.

      23             So, assume you had sufficient resources for

      24      just this exercise:  Can you take us through some of

      25      the regulatory activities, related to the water and







                                                                   55
       1      the cuttings?

       2             EUGENE LEFF:  With respect to the water, we

       3      would verify the integrity of the system that was

       4      transmitting the water from the wellbore to the

       5      tanks.

       6             We would verify -- we had seen in the slide,

       7      the blue tanks that would store this water.

       8             There has to be piping.  That has to be

       9      secure from the wellbore to these tanks.

      10             We'd check, to make sure all of that was

      11      intact.

      12             There has to be secondary containment, or

      13      barriers, around these tanks.

      14             We would ascertain that the secondary

      15      containment was properly constructed, and that it

      16      was intact.

      17             There would be monitoring of the transfer

      18      from these tanks to the trucks.  Not every truck,

      19      obviously, but there would be some inspection of

      20      that nature.

      21             That would all be done at the well pad.

      22             But, at the publicly operated treatment

      23      works, certainly, all of the processes that I

      24      mentioned of review of data would be conducted.

      25      And, we would have to ascertain on site, that the --







                                                                   56
       1      any conditions or modifications of the permit for

       2      those facilities were being observed and properly

       3      applied in the field.

       4             With respect to the cuttings, it would be

       5      important to verify that the cuttings were properly

       6      transferred to the landfill, and that the

       7      measurements were being taken, to ensure that high

       8      levels of radioactivity were not permitted in those

       9      landfills.

      10             Those are just some of the many steps that

      11      would be taken.

      12             SENATOR GALLIVAN:  Can you go back to the

      13      slide that showed the closed- and open-loop?

      14             I know you touched on this just a bit, but my

      15      last question has to do with the open-loop system

      16      and the reserve pit.

      17             What happens at the very end?

      18             So, the drilling has taking place.

      19      Eventually, this whole area gets closed up, and

      20      people move on and drill somewhere else.

      21             But, what happens with what's in that pit?

      22             And how do we make sure that that's not a

      23      concern?

      24             EUGENE LEFF:  Well, that pit has to be closed

      25      in a short time frame.







                                                                   57
       1             I don't have the days, but it's in those

       2      1,100 pages.

       3             And, within that number of days after the

       4      usage has ceased, that will have to be also disposed

       5      of, and that requires very careful measurement as

       6      well.

       7             If there is a residue at the bottom of the

       8      pit that has concentrated, the characteristics in

       9      the cuttings --

      10             For example, it's possible you could have a

      11      higher level of radioactivity at that point.

      12             -- then that material, that residue, would

      13      have to be taken to a low-level radioactive-waste

      14      facility.

      15             And there are such permitted facilities, or,

      16      to a special facility for -- under our RCRA --

      17      federal RCRA laws.

      18             Similarly, the lining would have to be

      19      disposed of, again, depending on its

      20      characteristics.

      21             And, the water -- any remaining water, of

      22      course, would have to be disposed of as well.

      23             SENATOR GALLIVAN:  Okay.

      24             Thank you.

      25             SENATOR GRISANTI:  And staying with that:







                                                                   58
       1      Is the lining itself -- I mean, what sort of

       2      requirements are there, with regards to the lining?

       3             Because, if you're talking about a

       4      concentration that could potentially mean a higher

       5      level of radiation --

       6             Which, if it's not concentrated, you're

       7      saying it's not a health concern.

       8             -- but, it is possible to concentrate in an

       9      area, towards the end stages of it, what procedures

      10      or requirements are there with regards to the

      11      lining, that we saw in Pennsylvania was a problem,

      12      where they -- it would either split or crack, and

      13      then that particular fluid would leak out into the

      14      public, and into the community, where -- whether

      15      it's fracking fluid, or not, if it has concentrated

      16      levels of radiation, that could be a concern.

      17             So, what are the requirements that are --

      18      they're talking about with regards to that?

      19             EUGENE LEFF:  I believe what our SGEIS says

      20      about that issue, is that, our existing regulations,

      21      under our "solid-waste facility" law, must be

      22      applied to the construction of the liner and the

      23      pit.

      24             And that -- our regulations are extremely

      25      stringent on that score, and are designed to ensure







                                                                   59
       1      that no liquid can pass through the liner.

       2             I might add, that there's a requirement, to

       3      make sure that the rock is disposed in a manner that

       4      the rock itself doesn't jeopardize the integrity of

       5      that liner.

       6             SENATOR GRISANTI:  When Senator Gallivan

       7      asked you the question on monitoring, whether it's

       8      pipes, or what have you, from this flowback well,

       9      that same, I take, procedure would be in place when

      10      these facilities, or the recycling, reusing, the

      11      process for the wastewater, there's got to be

      12      monitoring, I'm sure of that.

      13             When you have the flowback come back, these

      14      companies are reusing some of this fluid, is it the

      15      same procedure, to make sure that, whether it's in

      16      pipes, there's no leaking, there's -- there's -- how

      17      is that regulated by the DEC as well?

      18             And like I said, you probably don't have

      19      enough people to do that, which is -- I'm happy to

      20      hear that you're saying, Well, we're not going to

      21      issue as many permits until we have a strength of

      22      people to monitor these particular situations.

      23             But, that seems to be one the reasons why

      24      we're having this particular hearing, is focusing on

      25      the water; is that, that was a concern in some areas







                                                                   60
       1      in Pennsylvania, that even though you're recycling

       2      and reusing this water, some of it has a potential

       3      of still leaking or spilling.

       4             And that's something that, you know, you

       5      don't want to have happen.

       6             So, was that -- is that what you were talking

       7      about, with regards to Senator Gallivan's question,

       8      as far as, making sure that these pipes are sealed,

       9      and everything else?

      10             EUGENE LEFF:  That's certainly the general

      11      type of concern.

      12             You know, Commissioner Martens was asked by

      13      the Governor to go to Pennsylvania and visit the

      14      site where -- we were all shocked to hear -- I

      15      believe it was May, possibly April, of this year,

      16      there was a serious incident at a well pad.

      17             This was in the township of Leroy, in

      18      Bradford County.

      19             And one thing that occurred, that contributed

      20      to that incident, was that, the berm, or wall,

      21      surrounding the well pad had not been properly

      22      constructed.  Or, at least, it was not constructed

      23      in a way that would withstand the kind of very heavy

      24      rains that had occurred over that period of time.

      25             And what happened was, the -- that corner of







                                                                   61
       1      the well pad sloughed down, and that, barrier, or

       2      berm, no longer operated.

       3             So, there was, in addition, a mistake made at

       4      the well itself, that resulted in fluids being --

       5      pouring out of the wellbore.

       6             They would have been contained by that

       7      barrier, but it had not been built sufficiently to

       8      withstand the heavy rains.

       9             And, so, we're going to make sure that these

      10      well pads are inspected, to make sure they are

      11      capable of withstanding the conditions they're going

      12      to be subjected to.

      13             And, it's very important that all parts of

      14      the process be checked out before these operations

      15      occur.

      16             SENATOR GRISANTI:  You know, you mentioned --

      17      you mentioned the weather.

      18             It brings up a couple of things in mind.

      19             Can you touch, briefly, on the stormwater

      20      controls that you're talking about in that SGEIS

      21      report, as well as the flood zones, which could be a

      22      problem? -- especially with, just happened recently,

      23      with the tropical storm that hit part of the area in

      24      the Southern Tier, and along the East Coast, where

      25      there could be a problem.







                                                                   62
       1             Can you touch on those for us a little bit?

       2             EUGENE LEFF:  Certainly.

       3             With respect to the flooding, the SGEIS, even

       4      in its draft form, before those serious hurricane

       5      and tropical storm occurred, placed the flood plains

       6      out of eligibility for well pads using this process.

       7             So, there will be no well pads in the

       8      100-year flood plain.

       9             We also were concerned to find out what

      10      happened in Pennsylvania, so we made inquiries with

      11      the Pennsylvania Department of Environmental

      12      Protection.

      13             And, apparently, the industry got warnings of

      14      the impending storms, and made sure that their

      15      operations were secure.

      16             And, in fact, there were no incidents that

      17      were relayed to us by the State of Pennsylvania --

      18      the Commonwealth of Pennsylvania, indicating any

      19      accident or spillage or flooding that compromised

      20      the environment or public health as a result of

      21      those storms in Pennsylvania.

      22             Which was very good news.

      23             But, we are continuing to analyze that issue.

      24             I want to make clear:  Not only are we

      25      continuing to accept comments, we're still looking







                                                                   63
       1      at all of the issues, to see if there's anything

       2      else that needs to be done here, to make sure that

       3      we have fully protected drinking water and air and

       4      our land.

       5             And, what was the first part of your

       6      question, Senator?

       7             SENATOR GRISANTI:  The stormwater controls.

       8             EUGENE LEFF:  Yes.

       9             We are requiring a special permit for

      10      stormwater.  It will be a general permit for

      11      hydraulic fracturing.

      12             It will specify, and we've published -- at

      13      the same time as the September draft of the SGEIS,

      14      we published what that permit would look like.

      15             And we invited comment on that as well.

      16             There, we're addressing issues, such as,

      17      runoff of sediment from the construction of the well

      18      pad, construction of the roads, and, specified many

      19      of the precautions that have to be taken, which are

      20      very similar to the precautions that we require at

      21      any building site.

      22             SENATOR GRISANTI:  Okay.

      23             Now, you touched on this a little bit, with

      24      regards to Senator Gallivan's question, with the --

      25      the closing of a drilling site, or a pad.







                                                                   64
       1             And, will the DEC require post-drilling

       2      water-quality test, or water samples, or water

       3      supplies, near the drilling site?

       4             Is that something that -- that you're going

       5      to take care of?  Or is the industry going to have a

       6      burden on that?

       7             Or -- or, who's -- who's going to take care

       8      of that?

       9             EUGENE LEFF:  Well, we're requiring

      10      monitoring of drinking-water wells on a periodic

      11      basis.

      12             SENATOR GRISANTI:  Okay.

      13             The, uhm --

      14             EUGENE LEFF:  And, that, by the way, would be

      15      done at the expense of industry.

      16             SENATOR GRISANTI:  At the expense of the

      17      industry?  Okay.

      18             EUGENE LEFF:  That's correct.

      19             SENATOR GRISANTI:  The -- in Ohio, they talk

      20      about these disposable wells being utilized to dump

      21      this fluid, in Ohio.

      22             Is that something that was looked at here in

      23      New York?

      24             Is that something that's feasible; pumping

      25      the water deep into the ground?







                                                                   65
       1             Does -- do you feel it's safe?

       2             Something that we're not going to look at in

       3      New York?  We're not interested in doing anything

       4      along those lines?

       5             EUGENE LEFF:  We would take a look at any

       6      proposal of that nature, but, there are limitations.

       7             I'm not fully versed in what the geological

       8      concerns are with respect to that, but, we have not

       9      ruled it out.

      10             It has, apparently, not been as easy to do a

      11      suitable deep injection well in New York State, as

      12      it is in Ohio, for example.

      13             SENATOR GRISANTI:  Okay.

      14             All right, so that's something that's not on

      15      the table right now?

      16             You would rather find other methods, or other

      17      alternatives?

      18             EUGENE LEFF:  It's something that is a

      19      possibility that we would have to look at.

      20             SENATOR GRISANTI:  Okay.

      21             And, you know, this is a topic that -- the

      22      flowback water itself, and some of the production

      23      waste, it's not classified as hazardous waste,

      24      and -- or regulated as such.

      25             Are there other chemicals that are exempt







                                                                   66
       1      from that particular title?

       2             I mean, I'm just trying to figure out why the

       3      DEC decided not to classify flowback or some of the

       4      production as hazardous.

       5             As some people are pushing for in Senate

       6      language, or so on and so forth, as if you're

       7      classifying this as hazardous waste, that's got to

       8      be treated completely different than just sending it

       9      to a facility.

      10             EUGENE LEFF:  Well, I believe it was the

      11      federal government that made that initial decision.

      12             And, that, several years ago, that, once that

      13      decision was made with respect to federal

      14      regulation, that our own regulatory process was

      15      conformed to the federal practice.

      16             Part of the reason for that is, is that, we

      17      operate state regulatory programs as delegated

      18      programs from the federal government.  And to the

      19      extent we do that, we're required to follow the

      20      federal government's rules.

      21             SENATOR GRISANTI:  Got you.

      22             Did you have anything further?

      23             SENATOR GALLIVAN:  Yes.

      24             Commissioner, one more question, and it goes

      25      back to the regulation and tracking of whether it's







                                                                   67
       1      the cuttings or the wastewater, and the comparison

       2      is made to medical waste.

       3             And, you may have answered it and I'm just

       4      not clear on this.

       5             So, we're keeping track of the materials as

       6      they're moved along, from the site to wherever they

       7      go: to the treatment facility; to disposal.

       8             Similar, in my language of the

       9      law-enforcement background, a change of custody of

      10      the materials.

      11             EUGENE LEFF:  Uh-huh.

      12             SENATOR GALLIVAN:  So there are, DEC

      13      regulators then take the paperwork and they look at

      14      it, and they see that it's properly filled out after

      15      everything is completed; right?

      16             EUGENE LEFF:  We're not going to do that for

      17      every single shipment.

      18             We have the ability to request, or, inspect

      19      and request copies of that material, but we're not

      20      going to routinely collect all of those records.

      21             SENATOR GALLIVAN:  Understood, but it's

      22      available.  And, then, when it's looked at --

      23             EUGENE LEFF:  That's correct.

      24             SENATOR GALLIVAN:  -- we say, that, yes, this

      25      was handled properly, from cradle to grave.







                                                                   68
       1             EUGENE LEFF:  That's correct.

       2             SENATOR GALLIVAN:  But, what -- here's the

       3      question that I'm getting at:  What if they don't

       4      properly dispose of it?

       5             EUGENE LEFF:  Uh-huh.

       6             SENATOR GALLIVAN:  Is there any check, from

       7      somebody just lying on the sheet of paper, or

       8      crumpling it and throwing it in the garbage?

       9             So we know, when it lands somewhere in the

      10      grave, there's a chain of custody.  And you look at

      11      the paperwork and you can see all of it.

      12             What if they just -- what if somebody takes

      13      something and dumps it wherever they want, and this

      14      is thrown in the garbage?

      15             EUGENE LEFF:  As you know, Senator, there are

      16      opportunities to commit crimes in all aspects of our

      17      society.

      18             We have criminal laws on illegal disposal of

      19      hazardous waste.

      20             The waste that is not exempt from

      21      hazardous-waste regulation could just as easily be

      22      disposed in a midnight dumping situation.

      23             And what we've done, as you know, for many

      24      years, is to create imprisonment, and significant

      25      fines, for anyone who commits such a crime.







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       1             And one of the things we are projecting, is

       2      the need for more staff in our law-enforcement

       3      division.

       4             We need environmental conservation officers

       5      who are out in the field spotting those examples of

       6      criminal behavior.

       7             And, it's no different from any other

       8      environmentally risky substance in our society.

       9             Those criminal actions are, theoretically,

      10      possible.  But, we have to enforce, and punish, any

      11      activity of that nature.

      12             SENATOR GALLIVAN:  Let me ask it a slightly

      13      different way.

      14             Do we know, through the proposed regulations,

      15      and this particular process, that, a site --

      16             These aren't real numbers.

      17             -- produces a million gallons of something?

      18             A million gallons of wastewater, for sake of

      19      discussion.

      20             Do we know that?

      21             EUGENE LEFF:  Yes --

      22             SENATOR GALLIVAN:  I mean, through the

      23      proposed regulations, and various audits, you're

      24      able to determine that right at the site?

      25             EUGENE LEFF:  They are required to record the







                                                                   70
       1      volume of water that they send for disposal.

       2             I cannot tell you myself, but I could find

       3      out, whether they're required to keep a log, in

       4      general, of all the volumes that are generated by

       5      the well.

       6             SENATOR GALLIVAN:  So, we know some

       7      wastewater would go for disposal, some will be

       8      recycled?

       9             EUGENE LEFF:  Yes.  The large --

      10             SENATOR GALLIVAN:  Is there any other places

      11      that that water can go?

      12             EUGENE LEFF:  Well, if we're talking about

      13      water that's generated up, out of the pipe, that can

      14      either be reused or disposed of.

      15             That's correct.

      16             SENATOR GALLIVAN:  Okay.

      17             Do the companies -- the drilling companies

      18      have to keep track of what is recycled?

      19             So, if you do an audit, should they have

      20      somewhere on paper, what is disposed of, what is

      21      recycled, and that should equal 100 percent?

      22             EUGENE LEFF:  I don't know the answer to that

      23      question; whether they're -- whether we are

      24      requiring the volume reused on the site.

      25             SENATOR GALLIVAN:  Okay, what I'm getting at







                                                                   71
       1      is:  At the site, if, somehow, through audits,

       2      through the regulations, through the paperwork, if

       3      you have the ability to know all the wastewater

       4      being produced, or all the cuttings being produced,

       5      in doing it at the other end, having a mechanism at

       6      the other end, by checking the company's paperwork,

       7      to match it up, so that, one million equals

       8      one million, wherever it was, whether it's recycled,

       9      whether it's properly disposed of?

      10             EUGENE LEFF:  We will have records of the

      11      volumes of cuttings, the volume of wastewater, that

      12      is sent for disposal.  And, we will have access to

      13      the records of the receiving facilities.

      14             And we could make that comparison, yes.

      15             SENATOR GALLIVAN:  Do the haulers of the

      16      materials have to be permitted as well --

      17             EUGENE LEFF:  Yes, they do.

      18             SENATOR GALLIVAN:  -- by the DEC?

      19             EUGENE LEFF:  They do, yes.

      20             SENATOR GALLIVAN:  When they're permitted,

      21      are they permitted -- do they have to identify,

      22      specifically, where they're going?

      23             For instance:  Is a hauler permitted to go to

      24      three different facilities, or, able to go to any

      25      permitted facility, or site?







                                                                   72
       1             EUGENE LEFF:  Well, first, the permit I was

       2      referring to is a standing permit that they get,

       3      that is good for lengthy period of time.

       4             They don't need to come to us for a permit

       5      for each waste-disposal trip.

       6             Once they've got their standing permit, then

       7      they're required to keep the records of each trip,

       8      that we referred to earlier, as being similar to

       9      what the records in the medical-waste area are.

      10             SENATOR GALLIVAN:  And the obligation is on

      11      the hauler to properly dispose of it?

      12             EUGENE LEFF:  That's correct.

      13             SENATOR GALLIVAN:  But, then, of course, that

      14      gets backed up by them keeping records to indicate

      15      such?

      16             EUGENE LEFF:  That's correct.

      17             And that's subject to penalties, under our

      18      state law.

      19             If there is a discrepancy, or a disposal that

      20      is not proper, under our regulations or the SGEIS

      21      conditions, those haulers would be subject to

      22      penalties, including high fines and revocation of

      23      their permit.

      24             SENATOR GALLIVAN:  Okay, thank you.

      25             EUGENE LEFF:  You're welcome.







                                                                   73
       1             SENATOR GALLIVAN:  Senator.

       2             SENATOR GRISANTI:  Just, last question:  The,

       3      uhm -- do we know how Pennsylvania is classifying

       4      their flowback water?

       5             Are they classifying it as hazardous, or are

       6      they following the federal model as well?

       7             EUGENE LEFF:  They follow the federal model.

       8             SENATOR GRISANTI:  Okay.  All right.

       9             I have nothing further.

      10             I want to thank you for providing the

      11      information with regards to -- for this particular

      12      hearing, and answering our questions.

      13             As I said, we're trying to have it very

      14      pointed to specific topics, but I know that, in the

      15      SGEIS, certain, specific things regarding water, and

      16      what's happening, I think we're, kind of, just a

      17      little bit of broad stroke.

      18             But I think, now, you know, some of the

      19      questions that I had with regards of that, I

      20      appreciate your candid and truthful answers with

      21      regards to such.

      22             And I appreciate the fact that the DEC has

      23      decided to extend the comment period to

      24      January 11th, to get more input.

      25             So -- and I appreciate you driving down here,







                                                                   74
       1      and taking the time.

       2             And, thank you for your testimony.

       3             EUGENE LEFF:  You're welcome.

       4             Thank you.

       5             SENATOR GALLIVAN:  Appreciate it.

       6             EUGENE LEFF:  Thank you very much.

       7             SENATOR GRISANTI:  We're going to move

       8      forward.

       9             John Wood.

      10             John, good afternoon.

      11             Thank you for appearing today to give

      12      testimony.

      13             Whenever you're ready to proceed, go ahead.

      14             JOHN WOOD:  Thank you, Senator Gallivan, for

      15      hosting this hearing.

      16             And, Chairman Grisanti, for your

      17      environmental leadership, for your sponsorship of

      18      Senate Bill 4616 in the last legislative session,

      19      and for the invitation to assist this Committee's

      20      examination of hydraulic fracturing wastewater

      21      issues.

      22             My name is John Wood.  I'm the legal fellow

      23      with the Natural Resources Defense Council.

      24             NRDC is a national not-for-profit

      25      environmental organization, with more than







                                                                   75
       1      200,000 members in the state.

       2             NRDC has worked over for 40 years to protect

       3      New York's people and environment.

       4             For the past several years, we have dedicated

       5      substantial efforts to the issue of proposed new

       6      natural gas development in New York State, urging

       7      that the State take an extremely cautious approach,

       8      and ensure that no new drilling is allowed to

       9      proceed, unless, and until, it can be demonstrated

      10      to be safe.

      11             Today's hearing will illuminate many issues

      12      of concern regarding hydraulic fracturing

      13      wastewater.

      14             To make the most of this opportunity, I

      15      recommend the transcript of this hearing be

      16      submitted to the Department of Environmental

      17      Conservation as a public comment on the revised

      18      draft Supplemental Generic Environmental Impact

      19      Statement for natural gas development.

      20             Hydraulic fracturing wastewater management is

      21      among the most vexing issues faced by states, such

      22      as Pennsylvania, West Virginia, and Ohio, which are

      23      currently developing their shale formations.

      24             It would be highly imprudent for New York to

      25      move forward with proposed new hydraulic fracturing







                                                                   76
       1      without a plan in place to deal with the billions of

       2      gallons of wastewater that will inevitably be

       3      generated by this activity.

       4             According to the Department of Environmental

       5      Conservation, Commissioner Joe Martens, currently,

       6      no wastewater treatment plants in New York are

       7      equipped to treat or permitted to accept wastewater

       8      with the range of contaminants expected to be in

       9      fluids produced by high-volume hydraulic fracturing.

      10             Natural gas drilling operators are not

      11      wastewater management experts.

      12             Without guidance and regulatory enforcement

      13      and proper wastewater management, could jeopardize

      14      public drinking-water supplies and public health,

      15      and impair aquatic ecosystems.

      16             In addition to a general discussion about the

      17      nature of hydraulic fracturing wastewater, I'll

      18      answer three questions:

      19             What are the primary disposal options for

      20      hydraulic fracturing wastewater, and the

      21      environmental and human and health concerns

      22      associated with each option?

      23             What is DEC doing on the ongoing review,

      24      under the State Environmental Quality Review Act,

      25      with respect to the regulation of hydraulic







                                                                   77
       1      fracturing wastewater?

       2             And, lastly:  How does Senate Bill 4616,

       3      relating to the uniformed treatment of waste from

       4      the exploration, development, extraction, or

       5      production of crude oil and natural gas address the

       6      problems associated with hydraulic fracturing

       7      wastewater?

       8             To save the suspense, I'll answer, in brief,

       9      these questions right now.

      10             There are limited options for hydraulic

      11      fracturing wastewater disposal, and each disposal

      12      method poses significant challenges to the

      13      environment and human health.

      14             New York lacks the infrastructure for, and

      15      DEC has no regulatory plan to deal with, the

      16      prodigious amounts of potentially hazardous

      17      wastewater that will be generated from hydraulic

      18      fracturing.

      19             Finally, the bill introduced last year in the

      20      New York Senate, passed in the Assembly as

      21      Assembly Bill 7313, to provide for the uniform

      22      treatment of wastewater is a critical development,

      23      as it would close the existing loophole on federal

      24      and state law.

      25             Senate Bill 4616 would require hydraulic







                                                                   78
       1      fracturing wastewater to be disposed of according to

       2      the same practices that apply to waste from every

       3      other industry.

       4             NRDC encourages to you reintroduce and

       5      quickly pass this bill in the coming legislative

       6      section.

       7             Now I'll discuss the nature of hydraulic

       8      fracturing wastewater in terms of quality.

       9             I recently watched a video on the

      10      Independent Oil and Gas Association of New York

      11      website, where a vice president of one of these

      12      companies claimed that the additives they use are

      13      edible.

      14             Many of the chemical additives used in

      15      hydraulic fracturing fluid are known or probable

      16      carcinogens.

      17             In April of this year, United States House of

      18      Representatives' Committee on Energy and Commerce

      19      released a report, summarizing the volume and

      20      content of hydraulic fracturing drilling-fluid

      21      products used by 14 of the nation's leading

      22      companies.

      23             Between 2005 and 2009, the oil and gas

      24      service companies used products containing

      25      29 chemicals that are known, or possible, human







                                                                   79
       1      carcinogens regulated under the Safe Drinking

       2      Water Act for their risk to human health, or listed

       3      as "hazardous air pollutants" under the

       4      Clean Air Act.

       5             The BTEX compounds -- benzene, toluene,

       6      xylene, and ethylbenzene -- [unintelligible] safe

       7      drinking water are contaminants and hazardous air

       8      pollutants.

       9             Benzene, specifically, is a known human

      10      carcinogen.

      11             And in the year -- in the period of study,

      12      there are 11.4 million gallons of products

      13      containing at least one BTEX chemical used.

      14             Furthermore, flowback water is high in total

      15      dissolved solids, chloride, surfactants, gelling

      16      agents, and metals from spent gel and foam

      17      fracturing fluids.

      18             Typical classes of parameters present in

      19      flowback fluid are:

      20             Dissolved solids, like sulfates and calcium;

      21             Metals, such as magnesium, barium, and

      22      strontium;

      23             Suspended solids;

      24             Mineral scales, like calcium carbonate and

      25      barium sulfate and bacteria;







                                                                   80
       1             Friction reducers;

       2             Iron solids, such as iron oxide and iron

       3      sulphide;

       4             Dispersed clay finds, colloids, and silts;

       5             And, acid gasses, such as carbon dioxide and

       6      hydrogen sulphide.

       7             The chemical additives are only one piece of

       8      the problem of hydraulic fracturing wastewater

       9      because the water used in hydraulic fracturing comes

      10      into close contact with the shale formation during

      11      the well stimulation process.  When it returns to

      12      the surface, it may contain a variety of formation

      13      materials that can make wastewater treatment

      14      difficult and expensive.

      15             The production brines often contain

      16      relatively high concentrations of sodium, chloride,

      17      bromide, and other inorganic constituents, such as

      18      arsenic, barium, and other heavy metals, total

      19      dissolved solids, naturally occurring radioactive

      20      material, and all of these significantly exceed safe

      21      drinking-water standards.

      22             So, both the chemical additives and the

      23      formation materials lace the wastewater generated by

      24      hydraulic fracturing, rendering it unsafe to

      25      discharge without extensive treatment.







                                                                   81
       1             Now, to give the problem of hydraulic

       2      fracturing wastewater its due respect, we should

       3      also consider the issue of volume.

       4             I'll use DEC's estimates for future

       5      development of the Marcellus Shale to build this

       6      scenario.

       7             Marcellus development is projected over a

       8      30-year life cycle.  The average year would see

       9      1,600 or more wells.

      10             The amount of water consumed in each well is

      11      projected between 2.4 and 7.8 million gallons, and

      12      the average well consumes 4.2 million gallons of

      13      water.

      14             Between 9 percent and 35 percent of hydraulic

      15      fracturing wastewater returns to the surface.

      16             Assuming one so-called "frack job" occurring

      17      in every well in the state, hydraulic fracturing

      18      operations would ultimately generate between

      19      18 and 71 billion gallons of wastewater over the

      20      next 30 years.

      21             If each well is fracked twice over its

      22      30-year life, we'll see between 36 and 142 billon

      23      gallons of hydraulic fracturing wastewater generated

      24      in New York.

      25             And, at different times, the chemical







                                                                   82
       1      compounds in this wastewater differ; and, so, it

       2      will require extensive monitoring during the

       3      flowback process to know exactly what's in the

       4      wastewater.

       5             So, wastewater quality and quantity pose

       6      capacity challenges to New York's limited wastewater

       7      management infrastructure, which I'll discuss next.

       8             There are few disposal options in New York,

       9      and it's among one of the most critical questions

      10      New York faces when deciding whether to open up our

      11      shale formations, is, what to do with the huge

      12      quantities of toxic, potentially radioactive,

      13      wastewater that comes from fracked wells.

      14             Existing wastewater infrastructure in this

      15      state is simply not designed to accept wastewater of

      16      this sort produced by hydraulic fracturing

      17      activities.

      18             There are four main disposal options:

      19      Underground injection, recycling, publicly owned

      20      treatment works, and privately owned wastewater

      21      treatment facilities.

      22             With any of these methods, water must be

      23      shipped from the drill site to the treatment or

      24      disposal facility.

      25             Suppose 2 million gallons of wastewater are







                                                                   83
       1      generated with each frack job, and, with the

       2      capacity of a water tanker truck averaging about

       3      5,000 gallons, each frack job would require

       4      400 truck trips from the drill site to the

       5      wastewater treatment facility, which may be in an

       6      entirely different state, perhaps as far away as

       7      Ohio or West Virginia.

       8             Now, that will occur no matter which option

       9      we choose.

      10             Now, for underground injection, the risks

      11      associated with this method are:  Aquifer

      12      contamination, toxic plumes, insufficient storage

      13      capacity, and, of course, the risks involved in

      14      shipping hazardous waste from New York to Ohio or

      15      West Virginia.

      16             Deep-well wastewater injection is regulated

      17      by the U.S. EPA, and is regarded by some experts as

      18      marginally better than sending wastes to treatment

      19      facilities.

      20             But Government Accountability Office study

      21      found instances of drinking-water contamination from

      22      cracked or poorly plugged injection wells.

      23             Underground injection of wastewater may be

      24      linked to induced seismicity, or manmade

      25      earthquakes, resulting from high-pressured fluid







                                                                   84
       1      injections, a rash of which have occurred in Texas,

       2      Arkansas, Ohio, Oklahoma, Nebraska, and even

       3      England, conspicuously close to hydraulic fracturing

       4      fluid injections.

       5             For publicly owned treatment works, "POTWs"

       6      are basically designed for municipal sewage.  They

       7      rely on biological processes and simple chemicals,

       8      such as chlorine, to treat wastewater.

       9             Because these facilities are not designed to

      10      treat hazardous waste, sending hydraulic fracturing

      11      wastewater to them could create pass-through

      12      problems that jeopardize the water quality of

      13      receiving water bodies.

      14             The combination of bromide from the shale

      15      formations and chlorine from the treatment plant can

      16      create trihalomethanes in public water supplies,

      17      which are linked to cervical cancer and birth

      18      defects.

      19             Treatment of this wastewater may increase

      20      water costs to end-consumers.

      21             Our neighboring states have been trying to

      22      figure out how to deal with mounting evidence that

      23      hydraulic fracturing wastewater was sent to

      24      overburdened facilities and discharged into nearby

      25      rivers without adequate treatment.







                                                                   85
       1             Without adequate regulation, surface and

       2      groundwater bodies could be contaminated with high

       3      salt levels, heavy metals, volatile organic

       4      chemicals, radioactive materials, and cancer-causing

       5      compounds.

       6             And, further, pretreatment, as has been

       7      discussed, simply does not solve the capacity issue

       8      in terms of volume.  Many of these treatment

       9      facilities are currently operating at capacity

      10      already.

      11             Privately owned wastewater treatment plants

      12      are another option as an alternative to public

      13      treatment works.

      14             These are massive construction projects for

      15      which New York has little to no experience.

      16             Centralized privately owned treatment plants

      17      present a host of human health and environmental

      18      impacts that simply were not analyzed by DEC.

      19             Notably, drilling operations from the entire

      20      region around a privately owned treatment works

      21      would, foreseeably, ship their wastewater by truck

      22      or pipeline to this facility, which will cause

      23      truck-traffic impacts, and, in the case of

      24      pipelines, ecosystem fragmentation.

      25             There are also serious questions about the







                                                                   86
       1      energy intensity of treatment technologies at

       2      industrial wastewater treatment facilities.

       3             And, let me make a point about the publicly

       4      owned treatment works.

       5             Uhm, we have -- NRDC has documents on file,

       6      obtained through our Freedom of Information law

       7      requests, that suggests that the towns of Auburn and

       8      Watertown have accepted hydraulic fracturing

       9      wastewater treatment facilities, as late as 2009,

      10      with the approval of the DEC.

      11             Just a corrective point.

      12             And, as far as recycling goes, while

      13      wastewater recycling is, at least in theory, a

      14      positive development, because it reduces waste and

      15      conserves fresh-water resources, ultimately, there's

      16      a highly concentrated toxic waste left over that

      17      still needs to be disposed of somehow, but it is

      18      still exempt from hazardous-waste rules.

      19             Waste injected over and over again is,

      20      typically, more toxic than when it's first used.

      21             There is little information available from

      22      industry about exactly what technologies they're

      23      using to recycle wastewater; and there is scant

      24      verifiable information from industry on how much

      25      waste is actually being recycled, since they don't







                                                                   87
       1      that have to report these numbers.

       2             Of course, some companies claim to be

       3      recycling 100 percent of their wastewater; while

       4      others say, the high salt levels make that claim

       5      implausible, if not impossible, because of the

       6      likely corrosive effect that that water would have

       7      on their equipment.

       8             Recycling may also be energy intensive.

       9             For the moment, claims by industry that

      10      recycling wastewater will ameliorate the concerns

      11      raised here must be regarded with skepticism.

      12             And, there are also possible impacts

      13      resulting from temporary storage tanks proliferating

      14      as operators wait for a backlog of disposal permits

      15      as they generate the waste.

      16             Now, I'll discuss DEC's approach to

      17      wastewater under SEQRA.

      18             In short, the DEC has no meaningful plan to

      19      address the massive problem of hydraulic fracturing

      20      wastewater.  It is of serious concern that they're

      21      preparing to issue permits to drill without having a

      22      regulatory plan in place for dealing with this.

      23             The United States EPA, as well as DEC, have

      24      both stated that traditional publicly owned

      25      wastewater treatment works are not capable of







                                                                   88
       1      processing waste generated from hydraulic fracturing

       2      operations.

       3             For this reason, it is a concern that DEC

       4      says "flowback water may be sent to POTWs" in the

       5      same section in which they conclude that "the high

       6      concentration of TDS present in this source of

       7      wastewater may prove to be inhibitory to the

       8      biological wastewater treatment systems."

       9             Of all 1,500 pages of DEC's environmental

      10      impact statement for hydraulic fracturing in their

      11      proposed regulations, DEC never lays out a coherent

      12      wastewater management plan, and it fails to analyze

      13      the risks involved in each of the different disposal

      14      methods.

      15             Commissioner Martens has suggested that waste

      16      should simply be shipped to Pennsylvania or Ohio.

      17             Another glaring omission from DEC's

      18      environmental impact statement, which should be a

      19      concern to everyone, is the failure to conduct any

      20      health-impact assessment whatsoever, despite the

      21      fact that allowing hydraulic fracturing in New York

      22      means that billions of gallons of carcinogen-laced

      23      water will be pumped into New York lands, shipped

      24      over New York roads, or disposed of, somehow, in

      25      New York wastewater infrastructure.







                                                                   89
       1             NRDC hopes the Senate's leadership will

       2      correct defects such as this, by calling on the DEC

       3      to analyze the health impacts of hydraulic

       4      fracturing before issuing permits for it.

       5             The closest thing to a wastewater plan is

       6      DEC's proposed ad hoc manifest system, which would

       7      enable regulators to track the transport of

       8      wastewater, which may assist in the prevention of

       9      illegal discharges, but in no way does this qualify

      10      as an adequate risk-mitigation measure.

      11             To quote, "DEC's waste-tracking procedure is

      12      similar to that which is required for medical waste

      13      even though the hazards are not equivalent."

      14             Since, quote, "manifesting is not required

      15      for non-hazardous industrial commercial waste," it

      16      is strange that DEC proposes a manifest system for

      17      hydraulic fracturing waste, in spite of their

      18      regulatory position that it's not hazardous, and in

      19      despite of the fact that DEC uses the word "hazard"

      20      to describe it.

      21             If hydraulic fracturing wastewater is

      22      hazardous, then DEC should regulate it as much.

      23             Because DEC has not proposed a wastewater

      24      management plan for hydraulic fracturing wastewater,

      25      apparently, its strategy is, to wait and see, for







                                                                   90
       1      industry to decide which disposal method they

       2      prefer; at which point, DEC would then conduct an

       3      analysis of the corresponding environmental impacts.

       4             This post hoc assessment of impacts is a

       5      violation of the purpose of SECRA, which requires

       6      government decision-makers to analyze significant

       7      adverse impacts before taking actions that would

       8      bring them about.

       9             Now, what can the Senate do?

      10             Hydraulic fracturing operators currently

      11      enjoy a loophole in environmental law, exempting the

      12      waste generated by their activities from regulation

      13      as a hazardous substance, despite the fact that it

      14      contains hazardous constituents.

      15             Last session, Senate Bill 4616 would close

      16      this loophole.

      17             By way of context, the Resource Conservation

      18      and Recovery Act, Subtitle C -- or "RCRA" -- creates

      19      a federal program that mandates hazardous waste

      20      from -- that manages hazardous waste, from cradle to

      21      grave.

      22             There are Subtitle C regulations for the

      23      generation, transportation, treatment, storage, and

      24      disposal of hazardous wastes.

      25             However, waste, quote, "uniquely associated







                                                                   91
       1      with the exploration, development, and production of

       2      natural gas at primary field operations, such as

       3      produced water or spent hydraulic fracturing fluids,

       4      are exempt from regulation under RCRA, Subtitle C.

       5             Because of this exemption, most shale

       6      gas-extraction wastewater is, by legislative fiat,

       7      not, quote, hazardous within the meaning of RCRA;

       8      hence POTWs receiving exempt oil- and gas-extraction

       9      wastewaters would not be receiving hazardous wastes,

      10      and, thus, would not need to meet RCRA permit

      11      requirements.

      12             NRDC has petitioned the EPA to update RCRA,

      13      to regulate exploration and production wastes, which

      14      would include waste streams generated by

      15      Marcellus Shale drilling.

      16             In the meantime, states can, of their own

      17      accord, regulate these waste streams.

      18             This is an opportunity for New York to seize.

      19             There is also a loophole at the state level.

      20             Oil- and gas-development wastes are currently

      21      excluded from the environmental conservation law,

      22      the definition of "hazardous waste," through DEC's

      23      regulatory disposition.

      24             This exclusion could either be removed

      25      through regulatory amendment or superseded by







                                                                   92
       1      statute.

       2             The ECL defines "hazardous waste," broadly,

       3      by characteristic.

       4             It means:  A waste, or combination of wastes,

       5      which, because of its quantity, concentration, or

       6      physical-chemical, or infectious characteristics,

       7      may cause or significantly contribute to an increase

       8      in mortality, or an increase in serious irreversible

       9      or incapacitating reversible illness, or pose a

      10      substantial present or potential hazard to human

      11      health or the environment, when improperly treated,

      12      stored, transported, disposed, or otherwise managed.

      13             Clearly, hydraulic fracturing wastewater fits

      14      this characteristic.

      15             It is by regulatory fiat that natural gas

      16      development wastes are currently excluded from the

      17      statute's application.

      18             This is so, despite the fact, that under the

      19      statute's expansive definition, these wastes may

      20      pose a substantial hazard to human health and the

      21      environment.

      22             Senate Bill 4616 closes this loophole.

      23             In order to bring natural gas development

      24      waste back under the purview of New York's hazardous

      25      waste management program, the regulatory exclusion







                                                                   93
       1      must, either, be removed through an amendment to

       2      these regulations or superseded by an act of the

       3      Legislature.

       4             DEC, of course, could commence a new

       5      rule-making, in light of this substantial evidence

       6      demonstrating the hazardous nature of these wastes,

       7      in terms of their quantity, concentration, or

       8      physical-chemical, or infectious characteristics.

       9             Alternatively, the Legislature could overcome

      10      this regulatory stalemate on this issue by amending

      11      the relevant sections of the ECL, to require the DEC

      12      to consider whether natural gas development wastes

      13      are potentially hazardous.

      14             Senate Bill 4616 would require the uniform

      15      treatment of wastewater, regardless of its source.

      16      If it tests as hazardous, it must be regulated as

      17      hazardous, even if it came from hydraulic fracturing

      18      operations.

      19             This historic and completely commonsense

      20      legislation does a couple of critical things.

      21             First:  It levels the playing fields so that

      22      the oil and gas industry is subject to the same

      23      rules that govern, pretty much, every other industry

      24      in the state.

      25             Now, even though much of the waste it







                                                                   94
       1      generates is hazardous, the hydraulic fracturing

       2      industry gets a free pass that exempts its waste

       3      from the transportation, tracking, treatment,

       4      storage, and disposal requirements that apply to

       5      other industries' wastes.

       6             Second:  This legislation shifts the cost of

       7      water cleanup, from the taxpayers who have to pay

       8      increased rates due to contamination of public water

       9      supplies, to the industry actors who generated the

      10      waste.

      11             Now, representatives of the natural gas

      12      drilling industry may decry such regulations as

      13      cutting into profit margins by unnecessarily

      14      increasing the costs of doing business for waste

      15      that isn't hazardous, but, they cannot have their

      16      cake and eat it too.

      17             If hydraulic fracturing wastewater is not

      18      hazardous, then Senate Bill 4616 would not, in any

      19      way, impact their business.

      20             If hydraulic fracturing wastewater is

      21      hazardous, there's no good reason why it should not

      22      be regulated as such.

      23             If this raises the cost of doing business, it

      24      is proper that these costs are borne by the industry

      25      rather than by the public.







                                                                   95
       1             Thank you for this opportunity to testify

       2      today about the issues of paramount importance to

       3      New York's environment and health.

       4             We look forward to working with the

       5      Committee, to ensure that the risks associated with

       6      wastewater generated by hydraulic fracturing are

       7      properly evaluated and addressed before any new

       8      natural gas development is permitted to proceed in

       9      New York State.

      10             SENATOR GRISANTI:  Thanks, Mr. Wood.

      11      I appreciate it.

      12             You know, you mentioned the, uhm -- you

      13      mentioned the possibility of disposal options;

      14      whether it's underground injection, publicly owned

      15      treatment work plants, or so on and so forth.

      16             In the research, and something that you were

      17      looking at, I know that you have a brief scenario,

      18      which one of those, if this were to move forward,

      19      would be preferable?

      20             JOHN WOOD:   Well, I'm not about to endorse

      21      any one of these disposal methods.

      22             SENATOR GRISANTI:  All right.

      23             The, uhm -- I mean, I understand you have --

      24      I mean, recycling, basically, there's still going be

      25      an end product in recycling; correct?







                                                                   96
       1             JOHN WOOD:  Correct.

       2             SENATOR GRISANTI:  And the privately owned

       3      wastewater treatment plants, as we know -- I don't

       4      believe we have any, that was testified to, in

       5      New York, that should be, actually, taking any of

       6      this fluid.

       7             In fact, Pennsylvania just came up and said

       8      that they have one in the Southern Tier.

       9             And the underground injection was something

      10      we just asked the Deputy Commissioner, who said that

      11      it's something they would look at, but it doesn't

      12      seem, because of the depths and the geological

      13      formations, that that's even possible in the state.

      14             And, you know, I understand your concerns

      15      with regards to, you know, if it's hazardous waste,

      16      it's hazardous waste, and it needs to be regulated.

      17             That question was asked.

      18             And, they're going by a federal regulation

      19      that was put in place, and that's why they're

      20      following those rules.

      21             So, in a nutshell, if -- really, until it's

      22      labeled -- in your opinion, until it's labeled

      23      "hazardous waste," and you figure out a disposal

      24      method, it's something you feel strongly against,

      25      that this should not be happening in New York State.







                                                                   97
       1             Correct?

       2             JOHN WOOD:  That's correct, Senator.

       3             SENATOR GRISANTI:  Okay.

       4             The, uhm -- and not to get into a big

       5      dissertation -- the -- so your concern is, truly,

       6      the reason why, in concerns that were brought up,

       7      you're -- specific to this hearing, is the water,

       8      and issue of the flowback water, and the chemicals

       9      that are in the water.

      10             It's not the procedure of casings, or how

      11      many steel around the casing.  That strictly has to

      12      do with the water.

      13             Is that correct?

      14             JOHN WOOD:  Well, there are myriad issues

      15      involved, but the quality and volume of the

      16      wastewater generated is certainly a paramount risk.

      17             As I suggested -- as I said -- and these are

      18      from DEC's numbers -- there are billions of gallons

      19      that will be --

      20             SENATOR GRISANTI:  Based on DEC's own

      21      numbers, or own formulas, that you took out of the

      22      SGEIS report?

      23             JOHN WOOD:  That's correct.

      24             SENATOR GRISANTI:  Yeah, because I've seen

      25      those numbers.







                                                                   98
       1             Okay.

       2             Well, like I said, I appreciate you coming

       3      here today.

       4             You've raised very important concerns with

       5      regards to, you know, this process, you know, if it

       6      goes forward.

       7             And I hope that, uhm, you know, some of the

       8      things that we touched on, with regards to the

       9      Deputy Commissioner who testified, still may not

      10      answer all your questions, but, it's a concern

      11      that's raised.  And it's something -- which is the

      12      reason why we're having this hearing.

      13             So, I appreciate you coming here today.

      14             JOHN WOOD:  Thank you for the opportunity.

      15             SENATOR GALLIVAN:  Mr. Wood, thank you for

      16      your testimony.

      17             I have one question.

      18             In listening, and looking through your

      19      testimony, which you provided us, you talk about

      20      existing wastewater infrastructure in this state

      21      simply not designed to accept wastewater of this

      22      sort.

      23             You mention, on number of occasions, that the

      24      DEC, through their proposed regulations, has not

      25      properly dealt with it; that -- or, properly dealt







                                                                   99
       1      with it or properly addressed it.

       2             Public treatment plants aren't equipped.

       3             Private treatment plants, none in New York.

       4      And they're, just -- they're huge, very expensive

       5      projects.

       6             I guess my question is:  Is it your opinion

       7      that wastewater from hydraulic fracturing can be

       8      properly dealt with?

       9             That it just hasn't to this point yet, in

      10      New York State?

      11             JOHN WOOD:  I think the opinion, is that,

      12      properly dealing with it is prohibitively expensive.

      13             SENATOR GALLIVAN:  Okay, let me ask it

      14      different.

      15             I understand that point.

      16             If money was no object, which, of course, it

      17      is --

      18             JOHN WOOD:  Right.

      19             SENATOR GALLIVAN:  -- but if money was no

      20      object, is it your opinion that the wastewater can

      21      be properly treated, or not?

      22             JOHN WOOD:  I don't believe that there's any

      23      way of removing all of the possible deleterious

      24      consequences from this wastewater.

      25             Certain companies that assist in the







                                                                   100
       1      recycling of wastewater can -- at least they

       2      suggest, that they can remove the heavy metals.

       3             But, that's not all of the concerns.

       4             And, a lot of the constituents in this

       5      wastewater would disrupt the biological systems that

       6      are used in publicly owned treatment works.

       7             Currently, the EPA is developing pretreatment

       8      standards for wastewater before sending it to

       9      POTWs.

      10             I think it would be advisable for the DEC to

      11      at least wait, and see what the EPA suggests about

      12      these pretreatment programs, before proceeding with

      13      this.

      14             SENATOR GALLIVAN:  Okay, thank you.

      15             SENATOR GRISANTI:  And that's something they

      16      plan on coming out with in 2012?

      17             JOHN WOOD:  I believe it's 2014, under the

      18      Clean Water Act.

      19             SENATOR GRISANTI:  2014?  Because I heard

      20      something about preliminary results coming out in

      21      2012.

      22             But, that's something we can look at.

      23             JOHN WOOD:  Uh-huh.

      24             SENATOR GRISANTI:  All right, Mr. Wood,

      25      again, I appreciate you coming here, and giving your







                                                                   101
       1      testimony.

       2             Thank you very much.

       3             JOHN WOOD:  Thank you.

       4             SENATOR GRISANTI:  We have, uhm -- is

       5      Tom Johnson here?

       6             Mr. Johnson, whenever you're ready, just, for

       7      the record, state your name, area you represent, and

       8      we can move forward.

       9             Appreciate it.

      10             THOMAS JOHNSON:  Okay.

      11             Good morning -- or, I guess it's afternoon.

      12             My name is Tom Johnson.  I am a

      13      vice president of Alpha Geoscience, in Clifton Park,

      14      New York.

      15             I am a hydrogeologist with 33 years of

      16      experience in geologic, hydrogeologic, and as an

      17      environmental consultant.

      18             Alpha Geoscience is engaged throughout

      19      New York, and other parts of the U.S., in projects

      20      involving water contamination and treatment to clean

      21      the water and return it to the environment for

      22      reuse.

      23             I appreciate, and thank, both, you, Chairman,

      24      and Senator Gallivan, and other members of the

      25      Standing Committee on the Environmental







                                                                   102
       1      Conservation, for organizing this hearing, to

       2      further explore this important opportunity for

       3      New York, and for allowing me to speak today.

       4             I would like to address two statements today

       5      that I have often heard as reasons why gas drilling

       6      should not be allowed in New York State.

       7             These are:  "Hydraulic fracturing will

       8      contaminate drinking-water aquifers"; and,

       9      "The water cannot be cleaned once it is

      10      contaminated."

      11             Neither of these statements is based on

      12      scientific fact, and I'd like to explain why.

      13             A combination of several principles of

      14      geology and physics prevent migration of hydraulic

      15      fracturing fluids from the deep target fracture

      16      zones.

      17             Hydraulic fracturing would occur at depths of

      18      a few thousand to several thousand feet in New York

      19      if horizontal drilling and high-volume

      20      hydrofracturing proceeded in New York.

      21             In contrast, drinking-water aquifers are no

      22      deeper than about 800 feet; and, in fact, most

      23      drinking-water wells are completed at depths of a

      24      few hundred feet.

      25             Two criteria are necessary for the hydraulic







                                                                   103
       1      fracturing fluids to reach the aquifers, and neither

       2      criterion is met.

       3             First, there would need to be a pathway for

       4      the fluids to travel through the thousands of feet

       5      of overlying low-permeability rock.

       6             "Lithostatic pressure" is the pressure that

       7      is exerted by overlying rocks.

       8             This pressure is so great in the zones that

       9      would be drilled and fractured, that neither natural

      10      nor man-made fractures remain open.

      11             This is why sand, or other materials, known

      12      as "proppants," are necessary to be pumped into the

      13      ground to hold the man-made fractures open.

      14             This is also one of the reasons that gas in

      15      the deep geologic formations remains in place until

      16      a well is drilled.

      17             In addition to this requirement that there be

      18      a pathway, the pressure in the fracture zone must be

      19      greater than the pressure in the aquifer for any

      20      upward flow to occur.

      21             The pressure in the drilled borehole is

      22      raised temporarily, enough to fracture the rock

      23      during the hydrofracturing process; however, the

      24      entire hydraulic fracturing of a single well takes

      25      only one day, after which, the pressure is released,







                                                                   104
       1      to allow the gas and fluids from the rock to flow

       2      into the borehole.

       3             Once the well is producing, the gas and other

       4      fluids will flow only towards the borehole, which

       5      offers a path of least resistence.

       6             These fundamental scientific principles

       7      preclude hydraulic fracturing fluids from flowing

       8      upward into drinking-water aquifers.

       9             Additionally, New York has had a redundant

      10      casing-and-cementing program in place for more than

      11      20 years.

      12             The absence of groundwater contamination,

      13      despite thousands of oil and gas wells being drilled

      14      in New York, demonstrates the adequacy of this

      15      program to protect the waters of the state.

      16             This casing-and-cementing program is further

      17      strengthened in the revised draft SGEIS, and it

      18      provides the necessary protections to prevent

      19      groundwater problems that are being reported in

      20      other states and highlighted in the media.

      21             In regards to water treatment, critics of gas

      22      drilling have stated, there is no way to clean the

      23      so-called "flowback water" that returns to the

      24      surface after the hydraulic fracturing process.

      25             In fact, millions of gallons of industrial







                                                                   105
       1      wastewater are processed and treated every day in

       2      this country to remove contaminants in much higher

       3      concentrations than what is found in flowback water.

       4             Standard water-treatment technologies that

       5      have been developed to treat water from landfills,

       6      chemical plants, plating facilities, mills,

       7      quarries, petroleum refineries, and a range of other

       8      industrial and commercial businesses, are equally

       9      applicable, and effective, in treating flowback

      10      water.

      11             Many private water-treatment companies and

      12      facilities are operating in Pennsylvania, as you've

      13      hear, and in other states, where high-volume

      14      hydraulic fracturing currently is being performed.

      15             These businesses and facilities are not the

      16      same as the publicly owned wastewater treatment

      17      plants that we've heard about this morning, and that

      18      have been the focus of media attention, as being

      19      inadequate for treatment of hydraulic fracturing

      20      fluid.

      21             There are a variety of treatment methods

      22      being used, but the process generally consists of

      23      removing suspended solids and organics, and then

      24      precipitating the undesirable metals.

      25             The low level of radioactive material, known







                                                                   106
       1      as "NORM," precipitates with the metals to form a

       2      sludge, which is disposed at permitted, regulated

       3      landfills, as we heard from the Deputy Commissioner.

       4             Studies and monitoring have shown that the

       5      radioactivity in the sludge is not present at levels

       6      that constitute a health concern to workers or the

       7      public.

       8             90 percent or more of the treated water is

       9      reused for subsequent hydraulic fracturing jobs

      10      after this preliminary treatment.

      11             Water that contains too much salt and

      12      dissolved solids often is disposed in deep injection

      13      wells that are permitted under both federal and

      14      state regulations.

      15             A lesser-known fact, is that a

      16      crystallization technology has been refined and

      17      developed to treat the brine, or, the salty water,

      18      that is currently disposed in the injection wells.

      19             The crystallization process produces

      20      distilled water, salt that can be used in water

      21      softeners and livestock feed, and a liquid brine

      22      that can be used for road de-icing and dust

      23      suppression.

      24             There is no sludge or liquid discharge from

      25      this crystallization treatment process.







                                                                   107
       1             Commensurate with the start of horizontal

       2      drilling and high-volume hydraulic fracturing in

       3      New York, private businesses will build wastewater

       4      treatment plants at strategic locations to

       5      effectively and safely treat flowback and produced

       6      water.

       7             The water treatment industry is just one

       8      example of related businesses that provides

       9      permanent jobs to support the energy industry.

      10             Finally, I would like to address the effect

      11      that the current delay in New York State to permit

      12      horizontal drilling and high-volume hydraulic

      13      fracturing has on businesses and jobs.

      14             As a small business owner, I expect that my

      15      company, likely, could hire, anywhere from three to

      16      five geologists to support drilling activity in this

      17      state.

      18             These jobs represent a potential growth for

      19      my small business, of 20 to 30 percent of our core

      20      business, that is not being realized because of the

      21      delay.

      22             Additionally, my company is involved in a

      23      partnership to develop water treatment plants that

      24      I've described.

      25             Unfortunately, we cannot wait for this







                                                                   108
       1      opportunity to develop in New York, and we plan to

       2      initially build up to four plants in Pennsylvania.

       3             We anticipate that each plant will employ

       4      approximately 12 to 15 people in permanent,

       5      well-paying jobs.

       6             It is likely that one or more of these plants

       7      will be located in northern Pennsylvania at

       8      locations that may then preclude the need to build

       9      similar plants in southern New York.

      10             There's no doubt that the delay to allow

      11      horizontal drilling and high-volume hydrofracturing

      12      has caused, and continues to cause, businesses to

      13      locate in Pennsylvania that might have located in

      14      New York.

      15             The likelihood increases, as the delay

      16      continues, that more jobs and businesses will not be

      17      realized in New York, and may be permanently lost.

      18             I respectfully urge our elected leaders to

      19      facilitate the process to finalize the revised draft

      20      SGEIS, and associated regulations, that allow

      21      horizontal drilling and high-volume hydrofracturing

      22      to proceed in New York in a safe, responsible

      23      manner.

      24             The DEC has proven, for many years, that it

      25      can, and will, effectively regulate the oil and gas







                                                                   109
       1      industry.

       2             That concludes my comments, and I thank you

       3      very much for allowing me the opportunity to speak

       4      here today.

       5             SENATOR GRISANTI:  Thanks, Mr. Johnson.

       6             I appreciate the fact that you have submitted

       7      testimony, and explaining such.

       8             I just have a few questions for you.

       9             The -- you know, you've heard testimony from

      10      the Deputy Commissioner, and -- there's only been a

      11      couple -- and Mr. Wood, basically talking about that

      12      there's -- does not seem to be a safe alternative.

      13             So, I take it, those four things that he

      14      cited, Mr. Wood, the last speaker, based on your

      15      being a hydrogeologist, would say that, yes, we can

      16      treat in these facilities, whether you do it by

      17      private, public, or what have you?

      18             It's your belief that this wastewater can be

      19      treated?

      20             THOMAS JOHNSON:  Yes, it is my belief that it

      21      can be effectively treated, and disposed.

      22             This country has had, for many, many years, a

      23      deep-injection-well program, as I said, that's been

      24      regulated by states, and the federal government.

      25             It's not widely known by the public,







                                                                   110
       1      certainly, but there are thousands of wells, deep

       2      injection wells, many of them located in the western

       3      New York, where all kinds of industrial waste are

       4      injected into the ground -- deep into the ground,

       5      well below drinking-water aquifers.

       6             That program is not as vital here in the

       7      northeast because of the geology.  The western

       8      geology is more suitable for that.

       9             There are wells in Pennsylvania.

      10             There are a few deep disposal wells in

      11      New York.

      12             However, Ohio has better geology, and there

      13      are many more deep disposal wells in Ohio than there

      14      are in Pennsylvania and in New York.

      15             And that, right now, is where a lot of that

      16      wastewater is being taken by the oil and gas

      17      industry for disposal from the Marcellus play.

      18             SENATOR GRISANTI:  Now, we're talking --

      19      we're talking, that when you have a well pad that's

      20      drilled, you're talking about -- what is your

      21      estimate on the percentage of water that's going

      22      to -- that stays in the ground, and then what comes

      23      back up through a flowback?

      24             THOMAS JOHNSON:  Well, the general estimates

      25      are, about 10 to 30 percent will flow back.







                                                                   111
       1             However, I think, practically, what's being

       2      seen right now, is that, that number is really on

       3      the low end.

       4             And I believe the Deputy Commissioner's

       5      testimony said something in the range of

       6      9 or 10 percent actually flows back, and the rest

       7      remains underground.

       8             SENATOR GRISANTI:  And is it true, what your

       9      testimony is saying, that, based on New York's, sort

      10      of, revised regulations on the casing, and the types

      11      of the cement versus steel in casings, and the

      12      regulations that are in place -- because -- I

      13      mean -- I agree with you, that it's -- it's --

      14      because it's several thousand feet down, and under

      15      the geology of the different layers of rock and

      16      formation, very difficult for the water, besides

      17      gravity, of coming back up, unless it's following

      18      that path of the casing pipe.

      19             But, still, I mean, accidents can happen, and

      20      you could have casing that breaks, and water can

      21      come back up, and it can still find its way, whether

      22      it's in stream, or even if there's a buffer zone, it

      23      can still have the potential of finding its way into

      24      a well, or -- or something along those lines.

      25             Correct?







                                                                   112
       1             THOMAS JOHNSON:  Yes.

       2             And, DEC has had more extensive

       3      casing-and-cementing regulations than other states,

       4      for quite awhile, since the 1992 regulations were

       5      implemented.

       6             And, we've seen that these regulations have

       7      served very well in protecting the groundwater

       8      resources.

       9             Other states have not had as good

      10      regulations.  And, in fact, that, those lapses in

      11      regulation are exactly what caused the problems in

      12      Dimock that we've all heard about.

      13             And, with respect to the situation in Wyoming

      14      right now, if you dig into that report, you'll see,

      15      also, that there's some pretty strong suspicion that

      16      the casing and cementing was at least part of the

      17      problem that they're starting to see out there.

      18             So, it's important to realize that the

      19      vertical wells that have been drilled in this state,

      20      for years, are drilled exactly the same way as the

      21      upper portion of a horizontal well.  The casing

      22      requirements are the same.

      23             So, that, if we've been doing it safely for

      24      many years, that will not change, as far as the

      25      upper portion of the well that penetrates through







                                                                   113
       1      the aquifers in the first few thousand feet of the

       2      vertical rock that is drilled.

       3             SENATOR GRISANTI:  Okay.

       4             And you talked about -- you saw the photos

       5      that the Deputy Commissioner had here, regarding

       6      these open pit, and these ponds.

       7             And he was talking about, however long -- and

       8      it's different water, but however long it stays

       9      there, it can have a higher concentration of

      10      radioactivity, more so than what has been stated to

      11      be a non-cause of effect for health concerns.

      12             But, there is that potential of, depending on

      13      length of time that it stays in these holding ponds,

      14      and it could concentrate, you would agree with that

      15      assessment?

      16             THOMAS JOHNSON:  Yes, sir.

      17             Both, in holding ponds, and, in the case in

      18      New York, will be held in the steel tanks, anyplace

      19      water stays for any period of time, there is the

      20      possibility for concentrations to build up.

      21             And, that is why the SGEIS has provisions to

      22      monitor that, so that we'll be able to protect the

      23      workers and the public.

      24             SENATOR GRISANTI:  Yeah, would that then be

      25      treated, then, as hazardous waste, if it gets to







                                                                   114
       1      that high of a level?

       2             THOMAS JOHNSON:  That's a little beyond my

       3      area of knowledge, so I'm going to --

       4             SENATOR GRISANTI:  Would you -- would you --

       5      I mean, would that be something that you would

       6      consider?

       7             If it reaches that extreme, it should be

       8      considered as hazardous waste?

       9             THOMAS JOHNSON:  I'm not sufficiently

      10      well-versed in the hazardous-waste regulations, so,

      11      I'm going to ask -- I'll pass on that.

      12             SENATOR GRISANTI:  The, uhm -- and you're

      13      involved in Pennsylvania right now, with regards to

      14      specific well pads, and testing, and work that's

      15      being done in Pennsylvania?

      16             THOMAS JOHNSON:  I am not directly involved,

      17      no.

      18             SENATOR GRISANTI:  Not directly.

      19             Okay, not directly involved.

      20             Okay, I thought you were.

      21             THOMAS JOHNSON:  We have plans to do some

      22      work, and build some plants in Pennsylvania, but

      23      that has not come to fruition at this time.

      24             SENATOR GRISANTI:  Okay.

      25             All right, I appreciate your testimony here







                                                                   115
       1      today.

       2             And, I'll turn it over to Senator Gallivan,

       3      if he has any further questions.

       4             SENATOR GALLIVAN:  Thanks for being here

       5      today, Mr. Johnson.

       6             I have two questions, one in each area of

       7      your testimony.

       8             The first has to do with contamination, or

       9      potential contamination, of drinking water; and,

      10      specifically, the aquifers.

      11             You testified about lithostatic pressure that

      12      is so great, that the geology, essentially, would

      13      prevent the contamination of the aquifers, however

      14      many feet above where the horizontal drilling has

      15      taken place.

      16             And, also, that the hydraulic fracturing of

      17      the single well will take about one day.

      18             Is there any risk of any flow of those

      19      hydroflack -- hydrofracking liquids, during the

      20      process, migrating upwards?

      21             THOMAS JOHNSON:  No, there's not, because of

      22      the short duration that the pressures are raised,

      23      and because of the monitoring that occurs during

      24      that process.

      25             The energy companies are very interested in







                                                                   116
       1      making sure that the fractures don't extend any

       2      further than necessary because they don't want to

       3      fracture areas beyond the target zone where they're

       4      trying to draw gas from.

       5             So, this is a process that's monitored with

       6      sophisticated equipment, to make sure they know how

       7      far the fractures are propagating.

       8             Again, the distance we're talking about,

       9      generally, is four to six thousand feet, probably,

      10      that the Marcellus zone will be developed and

      11      fractured.

      12             And, the drinking-water aquifers, the maximum

      13      depth is about 800 feet.

      14             So, you've got several thousand feet of rock

      15      above -- or, between where the fracturing is

      16      occurring and the drinking-water aquifers.

      17             SENATOR GALLIVAN:  Second has to do with the

      18      actual treatment of the water once it's

      19      contaminated.

      20             And it's certainly your testimony that the

      21      water can be treated; correct?

      22             THOMAS JOHNSON:  Yes.

      23             SENATOR GALLIVAN:  Would it be your

      24      opinion -- do the chemicals that are used in the

      25      hydrofracking solutions, that the drilling companies







                                                                   117
       1      have indicated as proprietary, is it your opinion

       2      that they need to be disclosed, in order for the

       3      water to be -- the wastewater to be properly

       4      treated?

       5             THOMAS JOHNSON:  Well, I think they should be

       6      disclosed.

       7             And I believe the SGEIS requires that they be

       8      disclosed.

       9             What is interesting about some of the

      10      discussion and debate that is ongoing, is that, the

      11      chemicals that are actually added to the water for

      12      the fracturing process are in extremely small

      13      quantities.

      14             And, in fact, the compounds that are coming

      15      back up in the flowback water, in the highest

      16      concentrations, are the naturally occurring minerals

      17      that are in the rock.

      18             So, as the water is injected into the rock,

      19      and it stays there for a period of time, as the rock

      20      is fractured, those natural compounds leech out of

      21      the rock and into the water, and are present at much

      22      higher concentrations than what is actually added

      23      for the fracturing process.

      24             So, some of what you've heard about the

      25      barium, the strontium, the calcium, the sodium, the







                                                                   118
       1      magnesium, all of these compounds -- and the salts,

       2      are all natural, and are what comes out of the rock

       3      during the hydrofracturing process, and are not the

       4      compounds that are added during the hydraulic

       5      fracturing.

       6             SENATOR GALLIVAN:  Okay, thank you.

       7             THOMAS JOHNSON:  You're welcome.

       8             SENATOR GRISANTI:  I have nothing further.

       9             I appreciate you submitting your testimony,

      10      and being here today, and taking questions from

      11      myself and Senator Gallivan.

      12             Thank you very much.

      13             THOMAS JOHNSON:  Thank you.

      14             SENATOR GRISANTI:  Paul Drof.

      15             PAUL DROF:  Okay, well, good afternoon,

      16      Chairman Grisanti and Senator Gallivan.

      17             My name is Paul Drof.  I am the executive

      18      director of the Niagara Falls Water Board.

      19             I would like to thank you for the opportunity

      20      to testify at this hearing.

      21             By way of background:  The Niagara Falls

      22      water board is a public benefit corporation created

      23      in 2002.

      24             We have approximately 19,000 residential,

      25      commercial, and industrial accounts throughout the







                                                                   119
       1      city of Niagara Falls, and also in surrounding

       2      communities.

       3             The Water Board is a financially

       4      self-sustaining entity, with an annual operating

       5      budget of approximately 25 million.

       6             Our revenues are generated through the sale

       7      of potable water, as well as wastewater treatment

       8      services.

       9             Last year, the Water Board's total water

      10      production was more than 6.6 billion gallons, with a

      11      daily average of 18.2 million gallons per day.

      12             The Water Board owns and maintains nearly

      13      550 miles of water and sewer lines throughout our

      14      service area.

      15             Chairman Grisanti, I would like to take this

      16      opportunity to thank you for your leadership in

      17      holding this hearing to examine solutions to

      18      flowback water produced through the hydrofracking

      19      process.

      20             The proper treatment of flowback water is a

      21      key issue as New York State continues to vet the

      22      efficacy of permitting horizontal drilling and

      23      high-volume hydrofracking in the Marcellus Shale

      24      formation.

      25             Needless to say, it is imperative these







                                                                   120
       1      materials be managed in a way that focuses, first,

       2      and foremost, on public health and safety, as well

       3      as the protection of the environment and natural

       4      resources.

       5             The Niagara Falls Water Board has been

       6      closely following the DEC's draft regulation

       7      process; and, in fact, we are preparing our comments

       8      for submission.

       9             We feel the DEC has done a thorough and

      10      responsible job of developing a framework for the

      11      safe treatment of flowback water and production

      12      water.

      13             The Water Board wholeheartedly supports this

      14      approach.

      15             As you know, the Niagara Falls Water Board

      16      operates a unique, physical-chemical activated

      17      carbon wastewater system.

      18             The facility was built in the 1970s,

      19      specifically to handle organic, electrochemical,

      20      metallic, and high-solids waste streams from some of

      21      the country's largest industrial and chemical

      22      manufacturers, as well as remediation of Superfund

      23      sites within our service area, including the

      24      Love Canal.

      25             What this means, Senator, is that our







                                                                   121
       1      facility has treated, is treating, and will continue

       2      to treat contaminants that are as complex and

       3      difficult as the contaminants that result from

       4      hydrofracking.

       5             Furthermore, the Niagara Falls Water Board

       6      has an approved U.S. EPA industrial pretreatment and

       7      enforcement program.

       8             We also have a longstanding U.S. EPA- and

       9      DEC-approved hauled-waste program that regularly

      10      accepts chemical wastewater for treatment from

      11      throughout the region, not just from our service

      12      territory.

      13             The bottom line, is that we responsibly

      14      handle heavy industrial waste as part of our

      15      day-to-day operation.  It's what we do.

      16             Suffice it to say, the Water Board has a long

      17      history of treating chemicals and other industrial

      18      wastes in compliance with applicable environmental

      19      law.

      20             The Water Board has met with DEC officials to

      21      discuss our capabilities and treatment processes.

      22             We have also commenced studies to evaluate

      23      our wastewater treatment plant's capabilities to

      24      properly and safely treat flowback water.

      25             Based on the information provided by the DEC







                                                                   122
       1      to date, we have made certain conservative

       2      assumptions about the levels of treatment the

       3      Department will require for the constituents of

       4      concerns, or, the "COCs."

       5             With that, we have conducted several

       6      bench-scale studies targeting these constituents.

       7             The results have been encouraging.

       8             Our preliminary results demonstrate

       9      significant removals of these COCs.

      10             As you will see in these pictures, we have

      11      effectively pretreated the flowback water before it

      12      is even treated in our unique facility.

      13             Another option to treating this pretreated

      14      water may be to reuse it at the wellhead.

      15             This reduces the use of potable water for

      16      fracking purposes, and does not require discharge to

      17      local waterways.

      18                  [Photograph being shown.]

      19             The first photo you see shows water from a

      20      wellhead in Pennsylvania.

      21             It's the brackish-colored water here on a

      22      six-paddle stir.

      23                  [New photograph being shown.]

      24             The second photo shows the initial

      25      flocculation of that water, and the initial stages







                                                                   123
       1      of cleaning it.

       2                  [New photograph being shown.]

       3             The third picture shows the final product of

       4      the pretreatment operation at our facility in our

       5      wastewater treatment plant.

       6             This, again, is pretreatment before it would

       7      even be introduced to the publicly owned treatment

       8      plants.

       9             Just to make that: this is a pretreatment.

      10             We eagerly await further guidance from the

      11      DEC as to the level of treatment needed to safely

      12      address the constituents of concern.

      13             In addition, we continue to assess the

      14      economic impact of treating flowback water on our

      15      operations.

      16             We are confident, that once we know the

      17      mandated treatment requirements, we will be in a

      18      better position to assess the viability of our

      19      efforts to pursue this initiative, including,

      20      options to build infrastructure, and for reuse of

      21      the water at the wellhead, resulting in no discharge

      22      to local waterways.

      23             What is our interest in the development of

      24      the Marcellus Shale?

      25             The State's decision to move forward with the







                                                                   124
       1      exploration of natural gas in the Marcellus

       2      formation presents a significant opportunity for the

       3      Niagara Falls Water Board.

       4             Our Board believes that we may be poised to

       5      be in a unique position to provide a solution to the

       6      issues of properly treating flowback water from

       7      hydrofracking.

       8             Mr. Chairman, as the State Senator

       9      representing parts of Niagara County, especially

      10      Niagara Falls, you have witnessed firsthand the

      11      decline in business and population in that region.

      12             The Water Board has been hard-hit by this

      13      decline.

      14             We have been faced with significant losses

      15      due to the downsizing of the industrial base and the

      16      loss in population.

      17             We need to find new and additional revenue

      18      streams to make up for these significant losses.

      19             Marcellus Shale may provide the Board with an

      20      opportunity to take advantage of an underutilized

      21      asset that is uniquely designed to treat complex

      22      waste, such as flowback water.

      23             We see the development of the Marcellus Shale

      24      as a unique opportunity for the Water Board to

      25      offset these losses, and stabilize the water and







                                                                   125
       1      wastewater rates for our customers in our service

       2      area.

       3             We also see it as an opportunity to enhance

       4      and reinvest in our wastewater treatment facility

       5      and related infrastructure.

       6             In conclusion:  Drilling and exploration in

       7      the Marcellus formation in New York is a unique

       8      opportunity for both the State and the Water Board;

       9      however, it must be done right.

      10             The regulations promulgated by DEC must

      11      ensure that the treatment of flowback and production

      12      water from the process of hydraulic fracturing will

      13      protect public health and safety and the

      14      environment, including, our employees, and those

      15      employed by the drilling and exploration industry.

      16             With proper regulation and focused upgrades,

      17      we believe that the Niagara Falls Water Board

      18      wastewater treatment plant can treat flowback water

      19      and production water as an interim or long-term

      20      solution, and may allow for the recycling and/or

      21      recovery of treated flowback and production water to

      22      the well pad for reuse.

      23             It also provides an exciting opportunity for

      24      public-private sector partnership, related to job

      25      growth, and infrastructure investment.







                                                                   126
       1             I would like to thank you for hosting this

       2      hearing.

       3             I appreciate the opportunity to testify

       4      before this Committee, and I'm available to answer

       5      any questions that you may have.

       6             SENATOR GRISANTI:  Okay, thank you, Mr. Drof.

       7             Just, briefly, the photos that you brought

       8      here, now, this is flowback water that was taken

       9      from Pennsylvania?

      10             PAUL DROF:  That is correct.

      11             SENATOR GRISANTI:  Okay.

      12             And you're saying it's pretreated.  It's not

      13      gone through a, uhm -- any sort of, what, stage in

      14      your facility.  It's just something that --

      15             Can you explain that a little bit, what you

      16      mean by the "pretreatment stage"?

      17             PAUL DROF:  Okay, we were looking at the

      18      possibility of the treatment of flowback water.

      19             We recognized unique requirements of this;

      20      and, as such, we've designed a pretreatment facility

      21      to, one, handle material, segregate it from the main

      22      public treatment works, provide for a high level of

      23      treatment before it's even introduced to the rest of

      24      the facility.

      25             So, we'd have the ability to regulate that







                                                                   127
       1      particular flow outside the publicly owned treatment

       2      works.

       3             SENATOR GRISANTI:  Do we know -- where it's

       4      got "pretreated," where it's showing clear --

       5             PAUL DROF:  Uh-huh?

       6             SENATOR GRISANTI:  -- do we know what

       7      chemicals are still in, what seems to be clear

       8      water, compared to --

       9             PAUL DROF:  Yes.

      10             We -- we've produced, looking for what they

      11      call the "NORMS."

      12             We've look for the barium, the strontium.

      13             And we also looked at turbidity; the total

      14      dissolved solids, and those items.

      15             We sampled the water prior, and to the water

      16      afterwards, and went through 136 priority pollutants

      17      that were done on that constituent of the water,

      18      before treatment, and after treatment.

      19             So, we do have some results of where we could

      20      be.

      21             SENATOR GRISANTI:  Okay, but, in the

      22      pretreatment stages of, right there, there's still

      23      chemicals that are in that water that looks clear?

      24             It's --

      25             PAUL DROF:  That is correct.







                                                                   128
       1             SENATOR GRISANTI:  -- that's not drinkable at

       2      that point?

       3             PAUL DROF:  At this point, no, it is not

       4      drinkable.  This is pretreatment stage.

       5             It's done in a lot of industries, to get to a

       6      stage before it could be discharged to a publicly

       7      owned treatment works.

       8             SENATOR GRISANTI:  Okay.

       9             Now, from the Southern Tier, where there's

      10      proposals for fracking, and -- and -- in case people

      11      don't know -- we're considering where Niagara Falls

      12      is, that's quite a distance.

      13             And you have proponents regarding -- there's

      14      estimates of how many trucks it would take to clear

      15      one well pad.

      16             It would be significant truck routes to -- to

      17      get from wherever a potential well pad is, up to

      18      Niagara Falls for potential treatment, if you're

      19      able to meet whatever the guidelines of the DEC is

      20      looking at.

      21             What other alternatives do you have, that

      22      would put you in a -- in, let's say, a different

      23      position than a privately, you know, built facility,

      24      so on and so forth?

      25             PAUL DROF:  Okay, well, we are on approved







                                                                   129
       1      truck lines.  We have a corridor that's highly

       2      industrialized in Niagara Falls that's used to the

       3      traffic of trucks.

       4             And, again, as New York State develops the

       5      fields, it's not going to be a lot of volume to

       6      begin with.  They're going to have to crawl before

       7      they can even walk, and walk before they can run.

       8             So, if it follows the Pennsylvania model,

       9      you're maybe going to have 8 to 10 wells in the

      10      first year.

      11             So, it will be a ramping up of the need for

      12      the treatment facility.

      13             Our facility's unique, because, not only are

      14      we on a truck line, we are also a rail spur, and we

      15      have three rail spurs that enter the facility.

      16             We used to use it for handling a liquid

      17      chlorine.  We no longer use that as a disinfection

      18      method.

      19             So, we can bring the material in in tankage,

      20      which would be 90,000 gallons at apiece, versus, a

      21      liquid tanker truck, which is anywhere from five to

      22      seventy-five hundred gallons.

      23             We would also propose, that, as we move

      24      forward in this, there is a brine pipeline that was

      25      developed for the hypochlorite business, which was







                                                                   130
       1      the Olin-DuPont facility, which originates in

       2      Batavia, and actually enters into the city of

       3      Niagara Falls.

       4             Those rights-of-way still exist.

       5             If we're looking at a long-term solution, and

       6      the removal of truck traffic, and the capability of

       7      spills, we may want to look at, uhm -- looking at

       8      that as a future alternative, uhm, to redevelop that

       9      pipeline for usage for hydrofracking water, to bring

      10      from the well, and back to the wellhead for reuse.

      11             SENATOR GRISANTI:  What is the -- where does

      12      the pipeline actually go?

      13             I mean, I know it's in the Falls --

      14             PAUL DROF:  It --

      15             SENATOR GRISANTI:  -- but where does it

      16      spread out from there?

      17             PAUL DROF:  It just goes, from Batavia,

      18      directly to the Olin-DuPont facility, at this point

      19      in time.

      20             We -- I can give you a trace of where it

      21      goes.

      22             SENATOR GRISANTI:  So you would need

      23      significant infrastructure to expand that pipeline

      24      to other areas in the -- especially in the

      25      Southern Tier, or southern part of New York?







                                                                   131
       1             PAUL DROF:  That would be correct.

       2             Or, it could be a truck head, that all the

       3      truck would go to one pinch point.  Those trucks

       4      then can be offloaded, and regulated by the DEC

       5      before it's entered into the pipeline.

       6             So, you could have a pinch point before, and

       7      at the end, of the pipeline, to make sure that the

       8      material that was introduced is the same material

       9      that comes out at the end of the pipeline.

      10             SENATOR GRISANTI:  Now, you're saying, in

      11      Niagara Falls, that you have certain federal

      12      requirements that have already met, or certain,

      13      uhm -- that allows to you proceed forward.

      14             What makes, uhm -- what makes your treatment

      15      facility different from the private ones that are

      16      being built, let's say, in Pennsylvania?

      17             PAUL DROF:  Well, very similar.

      18             We're different from most facilities.

      19             99 percent of the facilities throughout the

      20      United States are biological in nature.

      21             And I think it's been discussed before, that

      22      those treatments facilities are, maybe, inadequate

      23      to handle this.

      24             Niagara Falls, because of its industrial

      25      past, and legacies, has developed a







                                                                   132
       1      physical-chemical wastewater treatment plant which

       2      is made to take this material.

       3             We also use activated carbon to remove the

       4      organic materials that may be another issue there.

       5             Since we have this facility, the type of

       6      chemicals that come in, such as the high solids, the

       7      metals, do not affect the biological biomass to

       8      achieve treatment because we have none of that

       9      existing.

      10             So, that's what makes us unique.

      11             We are, basically, a large-scale facility

      12      that's underutilized.  We currently are a 48 MGD,

      13      or, "million-gallon-per-day," facility, that's

      14      running about 25 million gallons a day.

      15             So, again, it's an underutilized public

      16      utility, that would take some, as you said,

      17      investment to make it better, but we feel that it's

      18      being a viable alternative in biological facilities

      19      that are there.

      20             SENATOR GRISANTI:  So you're only running at

      21      half a capacity right now?

      22             PAUL DROF:  That's correct.

      23             SENATOR GRISANTI:  The, uhm -- what are some

      24      of the chemicals that, uhm -- you know, you

      25      mentioned Love Canal.  There's other things.







                                                                   133
       1             What are some of the chemicals that you've

       2      actually treated there before?

       3             PAUL DROF:  Well, we have whole -- our permit

       4      is quite extensive, that was issued to us by the

       5      DEC, along with the Joint International Commission,

       6      and the Canadian government, because we discharge

       7      into an international waterway.

       8             We monitor for volatile organics,

       9      semi-volatile organics, heavy metals, a lot of the

      10      priority pollutants.

      11             We're also required to do toxicology testing,

      12      for both vertebrate and invertebrate species, to

      13      make sure that our discharge does not affect the

      14      biota in the receiving stream.

      15             So, we are under very strict guidelines.

      16             We currently also have a headworks analysis

      17      and a rail system, which looks at what we can accept

      18      at the head of the plant, what those volumes would

      19      be, and how it would affect us at the end.

      20             We also report any truck waste to the DEC

      21      through the Part 364 permitting process, that was

      22      mentioned by the DEC.

      23             We currently give the State all that

      24      information, once a year, of what we've accepted:

      25      volumes, and where they originated.







                                                                   134
       1             SENATOR GRISANTI:  So, are you fully familiar

       2      with the chemical makeup that's in the flowback

       3      water that's coming back from these sites?

       4             PAUL DROF:  We know of one particular type.

       5             Their flowback water can change.  The

       6      chemicals, or the constituents, are -- may be unique

       7      to each type of drilling.

       8             We're hoping, now, as the process becomes

       9      more transparent, that those amounts will be

      10      available to us, to look at, and be able to treat

      11      them on a better basis.

      12             Again, it's a hauled waste.  It has a

      13      constituency that's much more predictable than

      14      what's being discharged to us by the various

      15      industrial sites throughout the city, which, again,

      16      by themselves, may be easily to treat.  But, when

      17      they're put into a pipeline, and have time to react,

      18      they can -- what we -- react at the head of the

      19      plant is considerably different than what the plants

      20      are discharging.

      21             So, I think we have the experience, and the

      22      background, to be able to look at this, and do a

      23      good job at it.

      24             SENATOR GRISANTI:  So you're saying, it's not

      25      so much as the chemicals that are added to the water







                                                                   135
       1      and sand mixture to do the fracking; it's, once that

       2      process underground actually takes place, that

       3      additional chemicals, that their the reaction,

       4      causes a combination of additional chemicals that

       5      come back in the flowback water?

       6             PAUL DROF:  That could be a possibility, that

       7      you'll be creating things that you've never -- you

       8      weren't intending to.

       9             And that's why we would look at each load

      10      coming in, prescreen it before it's accepted, to

      11      make sure it meets the criteria for treatment.

      12             SENATOR GRISANTI:  Okay.

      13             Well, they had mentioned -- I think

      14      Deputy Commissioner had mentioned, that it's got to

      15      be disclosed, what the chemicals that are being

      16      used.

      17             And this particular water that you got from

      18      Pennsylvania, were the chemicals disclosed to you,

      19      as to what they were, and then you can figure out

      20      exactly what you got rid of?

      21             Or, are you at a stage, where, you know, we

      22      still need to do additional work to get rid of

      23      additional chemicals that are in the water?

      24             I mean --

      25             PAUL DROF:  This is a very preliminary stage.







                                                                   136
       1             We received flowback water from one or two

       2      well sites.  We moved that together.

       3             We analyzed that, since we didn't have the

       4      information of what the raw feed water was, so

       5      that's why we did an entire scan for priority

       6      pollutants and all the constituents that we had seen

       7      in the literature.

       8             Again, we treated, and looked at various

       9      compounds that we considered to be the marker

      10      compounds.

      11             We found the best treatment that we could

      12      render.

      13             And, at that time, we did another scan, to

      14      look at all those priority pollutants at the final

      15      to end, to see:

      16             One:  Are they there?

      17             Two:  Did we remove those? -- and, how

      18      successfully we were with removing those.

      19             And that was a preliminary bench test.

      20             It was not -- the next phase would be, to

      21      look at a pilot test of some size.

      22             In other words, to ramp it up to larger size,

      23      to see whether or not the assumptions that were

      24      made, or in the bench testing, translate to an

      25      actual pilot facility.







                                                                   137
       1             SENATOR GRISANTI:  Okay.

       2             So, it's basically -- so, it's still a work

       3      in progress until -- like I said, you need to know

       4      what this chemicals are --

       5             PAUL DROF:  Well, we need to --

       6             SENATOR GRISANTI:  -- to make sure you got

       7      rid of them all?

       8             PAUL DROF:  Yes, sir.

       9             And we need two things:

      10             One:  To know what the chemical disclosure

      11      is;

      12             And, two:  To see what the State DEC will

      13      come as their final targets of where they'd like to

      14      be for the treatment.

      15             Then we can look at:

      16             Can we achieve those treatment goals?

      17             At what cost?

      18             And, whether or not that is a model for us to

      19      proceed.

      20             SENATOR GRISANTI:  Okay.

      21             All right, thank you very much.

      22             SENATOR GALLIVAN:  What do you do with the

      23      contaminants that are removed?

      24             PAUL DROF:  Currently, right now, the

      25      contaminants --







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       1             SENATOR GALLIVAN:  Well, in this project that

       2      you did here.

       3             PAUL DROF:  Right here?

       4             They were sent back to Pennsylvania for

       5      disposal.

       6             It was only, about -- I think we have only

       7      received about 5 gallons of flow.

       8             SENATOR GALLIVAN:  How -- this water that you

       9      got, or that you did in this project, how was it --

      10      upon receipt, or, at your last stage, where the

      11      water is clear --

      12             PAUL DROF:  Uh-huh?

      13             SENATOR GALLIVAN:  -- how was that different,

      14      or how does it compare, to the chemicals that you

      15      had been treating over the years, from the

      16      Superfund -- like the Superfund-site chemicals?

      17             PAUL DROF:  It's very applicable to what

      18      we've seen in the past, historically, and what we

      19      continue to see today.

      20             SENATOR GALLIVAN:  Again, in this project,

      21      you compare -- go back to your experience with the

      22      Superfund chemicals, what the plant was built for,

      23      and now we look at this particular project.

      24             Is there anything that stands out, that is so

      25      different than what you're equipped to do?







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       1             THOMAS JOHNSON:  Well, we're --

       2             SENATOR GALLIVAN:  Or any more problematic

       3      than what you've done in the past?

       4             PAUL DROF:  We're concerned about the

       5      NORMS -- the "normally occurring radioactive

       6      materials" -- to see whether or not we'll be

       7      concentrating them in the coagulation process.

       8             So, we're looking at that.

       9             We're also concerned with the total dissolved

      10      solids; how that would affect the waterways, and

      11      those high volumes, because, since they're

      12      dissolved, they're very difficult to remove from the

      13      solution.

      14             We've done an excellent job with turbidity,

      15      excellent job with suspended solids.  We've done a

      16      good job with the barium and strontium.

      17             And those were the compounds that, whether or

      18      not it would be effective to treat.  And that's how

      19      we decided that we'd like to proceed to the next

      20      stage, because we had success in treating those.

      21             Again, our concern is, we need to know what

      22      New York State is going to require for us to do.

      23             Based on that, we would remodel the original

      24      bench scale, and then try to translate that into a

      25      pilot plan, to see if it is effective.







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       1             SENATOR GALLIVAN:  Okay, thank you.

       2             Go ahead, Mark.

       3             SENATOR GRISANTI:  But at the present time,

       4      until those models are put in place, you really

       5      can't go forward on it, because you don't know

       6      exactly what -- what's going to be required from the

       7      DEC?

       8             PAUL DROF:  That's correct.

       9             And we've never accepted fracking water at

      10      this point in time.

      11             This was just a laboratory-scale exercise, to

      12      see whether or not, uhm -- what the material was

      13      consisting of, whether or not we could render

      14      treatment, and how effective that treatment would

      15      be.

      16             Recognizing the fact that we'd like to use

      17      this as a pretreatment system, that we'd have to

      18      make some investiture into our structures, and that

      19      we'd have to spend money to do it correctly.

      20             What we don't want to do is dilute the

      21      material.

      22             We'd like to treat the materials so that

      23      there's no question as to what happens to the

      24      constituents as they drop out.

      25             SENATOR GRISANTI:  Is there any estimate on







                                                                   141
       1      what the cost would be to -- if you had to upgrade

       2      your facility, to actually treat the water?

       3             Is there any talk about a cost analysis of

       4      what it would cost to treat?

       5             PAUL DROF:  Well, initial figures, of course,

       6      where these are -- they vary quite a bit, is, if we

       7      would look at about a million gallons of treatment

       8      per day, to put in holding facilities, and

       9      improvement to the rail lines, and all the other

      10      items, would be about five to six million dollars,

      11      for a basic pretreatment facility prior to

      12      introduction to our regular wastewater facility.

      13             SENATOR GRISANTI:  I got you.  Okay.

      14             All right, I appreciate you coming.

      15             Thank you very much.

      16             Thank you for giving the testimony today.

      17             PAUL DROF:  Thank you very much.

      18             SENATOR GRISANTI:  Is Katherine here?

      19             KATHERINE NADEAU:  Good afternoon.

      20             My name is Katherine Nadeau, and I am the

      21      water and natural resources program director for

      22      Environmental Advocates of New York.

      23             I would like to thank the Senators for

      24      convening this hearing, and for inviting me to

      25      testify today.







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       1             Environmental Advocates' mission is to

       2      protect our air, land, water, and the health of all

       3      New Yorkers.

       4             We monitor state government, evaluate

       5      proposed laws, and champion policies and practices

       6      that will ensure the responsible stewardship of our

       7      shared environment, and, to make New York a leader.

       8             So, as we sit here discussing fracking today,

       9      I just want to point out that some of my testimony

      10      has been covered by previous speakers, so, I'll kind

      11      of jump around a little bit, to not beat on issues

      12      that have already been discussed.

      13             SENATOR GRISANTI:  Yeah, we actually have

      14      most of the testimony that's submitted in writing.

      15             So, yeah, if you could paraphrase?

      16             You know, it might be --

      17             KATHERINE NADEAU:  Great.

      18             SENATOR GRISANTI:  Okay.

      19             KATHERINE NADEAU:  Great, thank you.

      20             So, fracking, as we've discussed at length

      21      this afternoon, is a process, that, if allowed to

      22      proceed, as proposed currently by New York State

      23      officials, it would industrialize much of

      24      Upstate New York, and, undoubtedly, lead to

      25      accidents, spills, and air and water contamination.







                                                                   143
       1             Just last week, the

       2      Environmental Protection Agency released preliminary

       3      studies, pointing to water contamination caused by

       4      fracking.

       5             This was discussed earlier.

       6             I only bring it up now, just because this is

       7      an issue, where the industry has said, over and over

       8      and over again, that fracking doesn't contaminate

       9      water supplies.  It's not contaminating groundwater.

      10             Whether or not the exact scenarios hold true

      11      in every state across the nation, this is an issue

      12      that cause those -- calls, excuse me, those claims

      13      into question, for sure.

      14             So, as we discuss this, we need to keep in

      15      mind the sources of the information, and where this

      16      is all coming from.

      17             So, New Yorkers know that contamination can

      18      happen.

      19             And, we understand that fracking cannot

      20      happen at the scale and the pace projected by the

      21      Department of Environmental Conservation, which, as

      22      said, is up to, and including, 1,600 wells drilled

      23      per year, without serious consequences, especially

      24      to our waters.

      25             So, so far, DEC has issued three drafts of







                                                                   144
       1      the Supplemental Generic Environmental Impact

       2      Statement for public review, two for public comment.

       3             And despite improvements in the process as

       4      it's gone along, much more analysis on waste

       5      production, transport, and treatment remains, and

       6      additional mitigation measures need to be evaluated

       7      if any fracking's going to be permitted in New York

       8      State.

       9             And, New Yorkers are rightfully concerned

      10      that improperly treated waste will pollute the

      11      state's waters.

      12             And, based on reports from Pennsylvania, and

      13      other states in the nation, these concerns are

      14      well-founded.

      15             So, my testimony really focuses on how

      16      fracking waste is classified in New York, and making

      17      sure that, if it is, in fact, hazardous, it's

      18      classified as hazardous; making sure that we're

      19      prohibiting fracking waste treatment at the state's

      20      publicly owned treatment works; and, DEC resources.

      21             These are not Environmental Advocates only

      22      concerns as related to fracking, but, just given the

      23      scope of the hearing today, this is where I'm

      24      focusing my testimony.

      25             So, the first part of my testimony relates to







                                                                   145
       1      how much fracking waste may be produced.

       2             And I think NRDC covered this fairly well,

       3      but I will just say, that this is a tremendous

       4      amount of wastewater anywhere.

       5             On the order of billions of gallon per year.

       6             Hundreds of billions of gallons over the

       7      projected 30-year play -- 30-year, excuse me, life

       8      of the play in the modeling that DEC has done so

       9      far.

      10             And, right now, we are in a tricky situation,

      11      because these wastes are not considered hazardous,

      12      even if, in fact, they are.

      13             And we are allowing them to be -- or we may,

      14      excuse me, under the DEC's proposals, allow them to

      15      be treated at facilities that are ill-equipped to do

      16      so.

      17             Now, first, under State regulations, has --

      18      drilling waste is just, by definition, not hazardous

      19      waste.

      20             As Mr. Leff said, from the Department of

      21      Environmental Conservation, it is treated as

      22      industrial waste.

      23             He's claimed, that this is because the

      24      federal government doesn't classify the waste as

      25      hazardous waste either; and that, therefore,







                                                                   146
       1      New York State has tied our regulations to the feds.

       2             This is -- this is a case where the DEC can,

       3      and should, go far beyond what the federal

       4      government is doing.

       5             And this happens all across our regulations,

       6      and in our laws now.

       7             If you look at the Clean Air Act, if you look

       8      at the Clean Water Act, these are both delegated

       9      programs in New York State, where it's the State's

      10      responsibility to carry these out.

      11             And, in both cases, we have standards and

      12      requirements that go beyond what the federal

      13      government has -- has provided for.

      14             And this is because, upon careful

      15      examination, the State has realized, that, if we're

      16      going to protect our resources, we need to set in

      17      place the most stringent standards possible.

      18             So, this is something that the State --

      19      there's plenty of precedent for it, and the State

      20      should do it in this case as well.

      21             So, because they're not -- and, you know --

      22      and I want to -- and, what -- again, what does this

      23      really mean, because they're not classified as

      24      hazardous waste?

      25             First of all:  When it comes to







                                                                   147
       1      transportation, they're not required to have the

       2      same level of manifest systems;

       3             And, when it comes down to disposal, they're

       4      not required to be treated at facilities

       5      specifically constructed and designed to handle

       6      these -- the toxicity of these wastes.

       7             Just for an example:  I went through the

       8      Supplemental Generic -- excuse me, the revised draft

       9      Supplemental Generic Environmental Impact Statement,

      10      and went through the State's hazardous-waste

      11      regulations -- just like, I'm sure a lot of other

      12      people in this room have done -- and, to look at,

      13      you know, if this waste coming off the wells is, in

      14      fact, hazardous, and why.

      15             And one of the contaminants, one of the

      16      chem- -- one of the toxins, that is listed in State

      17      regulations -- hazardous-waste regulations, is

      18      barium.

      19             And, it's the concluded that, barium, at

      20      levels of 100 milligrams per liter, or more, would

      21      be considered hazardous, by definition, under State

      22      regulation.

      23             Then went to the States draft plans, and went

      24      to industry studies themselves, and said:  Okay, so,

      25      if this is the case, do we have any studies that







                                                                   148
       1      prove that we've got levels of barium in the waste

       2      that would trigger the standard?

       3             And, we do.

       4             According to an industry study of

       5      eight Marcellus Shale wells, identifying the

       6      northern counties in Pennsylvania with comparable

       7      character to New York play area, the level of barium

       8      detected in flowback fluid ranged, but -- on day one

       9      of the flowback, the first day that the water was

      10      coming out of the well, the median level there was

      11      387 milligrams per liter.

      12             So, clearly above the "100 milligram per

      13      liter" standard in State regulations.

      14             And then, on Day 14, and 15, the amount of

      15      barium detected in flowback fluid varied as well;

      16      but, again, the median level was

      17      1,835 milligrams per liter, far exceeding the

      18      State's standards for hazardous waste.

      19             So, if this were created by any other

      20      industry, you know, General Motors,

      21      General Electric -- anybody else in the state --

      22      this would be considered hazardous waste.

      23             But because, by definition, it is not.

      24             The State looked at tests coming from

      25      Pennsylvania and West Virginia.  And, again, there







                                                                   149
       1      were varying levels of barium detected; but, the

       2      median level there -- detected there, was

       3      1,450 milligrams per liter.

       4             So, this is -- you know, a lot of these

       5      wastes clearly would fall under the category of

       6      "hazardous."

       7             Another problem with the fact that this

       8      definition rules the amount of treatment as

       9      hazardous waste, is that, we're not only talking

      10      about what might come down the road with high-volume

      11      hydraulic fracturing.

      12             Under current drilling in New York State,

      13      under the current hazardous-waste loophole, these

      14      exemptions, that means we're not looking at what's

      15      happening with the waste being created now, either.

      16             Getting back to the transport for a minute

      17      here:  The DEC, as has been discussed at length, has

      18      proposed a tracking system for fracking waste.

      19             They keep saying it's similar to the

      20      medical-waste system.

      21             And, you know, that's -- that is indeed the

      22      case.

      23             And this is a great example of good public

      24      relations, because everybody hears "medical waste,"

      25      and goes, "Ah!" because it sounds gross.







                                                                   150
       1             But, this doesn't live up to the standards of

       2      what would be required under hazardous-waste

       3      regulations; and in one particular point,

       4      specifically for the medical-waste tracking system,

       5      the medical-waste generators, transporters, and

       6      handlers, all have to report, all have to keep the

       7      manifest systems, but they have to -- excuse me, the

       8      manifest tracking forms.

       9             But, they have to, those entities, keep the

      10      forms on site, and are available at the request of

      11      the Department of Environmental Conservation.

      12             Under hazardous-waste regulations, it --

      13      those have to be reported to the State.

      14             They're put into a database.  And, that way,

      15      anybody -- you, me, anybody in the public -- can go,

      16      and look and see, what's, in fact, happening with

      17      this waste.

      18             This is a big problem, especially with DEC's

      19      staffing and resources being what they are, at

      20      historically low levels.

      21             This means that we've got a very important

      22      check in the system, in the proposed system, which

      23      would be missing, if the State goes forward, not

      24      counting this as hazardous waste.

      25             Now, that's just on the transport.







                                                                   151
       1             That's to say nothing of what actually

       2      happens to the waste once it arrives at the

       3      facilities, and how it's treated -- how it would be

       4      treated there.

       5             Moving on a bit to the other issue I

       6      identified today, is, treating waste at the

       7      publicly owned treatment works; the municipal sewage

       8      systems.

       9             A big problem with treating fracking waste at

      10      these plants is the levels of total dissolved solids

      11      in fracking wastes.

      12             Total dissolved solid are, essentially,

      13      salts, they're metals.  And, they are found at -- in

      14      fracking wastes at levels 1.6 to 6.6 times the

      15      levels found in seawaters.

      16             This is incredibly, incredibly salty waters.

      17             Sewage plants aren't designed to remove these

      18      types of salts.

      19             They -- salts in -- in fact, according to the

      20      Supplemental Generic Environmental Impact Statement:

      21             "Salts, and dissolved solids, may not be

      22      sufficiently treated at municipal treatment and/or

      23      treatment technologies not designed to remove

      24      pollutants of this nature."

      25             So that means, if these wastes are disposed,







                                                                   152
       1      and sent to these types of plants, the best that we

       2      could hope for is that they would be diluted.  That,

       3      the waste would go in, and that they would pass

       4      through the system, diluted.

       5             This leads to lots of other problems when you

       6      get into cumulative impacts.

       7             If you've got more than one plant treating

       8      fracking waste on the same water body, now you run

       9      into problems, like what was seen in Pennsylvania,

      10      where, all of these wastes add up, because they

      11      don't disappear once they go into the ecosystem.  In

      12      fact, they just keep getting worse.

      13             The DEC went on, in the Supplemental Generic

      14      Environmental Impact Statement, to question -- to

      15      further question whether or not this should be

      16      treated at our municipal treatment plants.

      17             And, I quote:

      18             "There's questionable available capacity for

      19      POTWs in New York State to accept high-volume

      20      hydraulic fracturing wastewater.

      21             "Further, because of the inability of

      22      biological treatment systems to remove certain

      23      high-volume hydraulic fracturing additives and

      24      flowback water, as previously described, POTWs are

      25      not usually equipped to accept influent containing







                                                                   153
       1      these contaminants.

       2             "The potential for inhibition of biological

       3      activity and sludge settling, and the potential for

       4      radionuclide concentration in the sludge, impacts

       5      sludge-disposal options."

       6             So, if we take this apart, the State is

       7      questioning the capacity -- how much? -- which,

       8      basically, means two things.

       9             First:  Can the plant handle it?

      10             Is there, literally, capacity?  Is there room

      11      in the pipes?

      12             Secondly, it also gets at the ability for the

      13      receiving water; the capacity of the receiving

      14      water, to handle this type of waste, and to take

      15      that on.

      16             The State then went on to say:

      17             "Because of the inability of biological

      18      treatment systems to remove certain additives --

      19             Again, the TDS being one of these.

      20             -- "they're not usually equipped to accept

      21      the influent" -- "they're not usually equipped to

      22      accept these wastes."

      23             And then, third, "The potential for

      24      inhibition of biological activity."

      25             And this is something that the gentleman from







                                                                   154
       1      Niagara Falls had touched upon.

       2             We've got most of our treatment plants in

       3      New York State relying on biological systems;

       4      meaning, that these are bacteria that break down the

       5      waste.

       6             These are bugs.

       7             And they rely on having certain water-quality

       8      standards within those systems in order to properly

       9      break down municipal sewage.

      10             If we start allowing very, very salty waste

      11      to enter this system, without being properly

      12      treated, if this goes in, we run the risk of,

      13      essentially, shutting down the plant, making the

      14      plant itself unable to treat other wastes.

      15             And because fracking wastes would,

      16      presumably, be just one portion of waste that any of

      17      these plants are accepting, if this is allowed to go

      18      forward, then we run the risk of the plant not being

      19      able to treat the waste it was designed to treat,

      20      and that communities rely on for treatment.

      21             In Pennsylvania, this -- they ran into all

      22      sorts of problems.

      23             The industry admitted as much in a

      24      "Post Gazette" article, where they said that, you

      25      know, natural gas industry is a contributing factor







                                                                   155
       1      to elevated levels of contaminants in various

       2      rivers.

       3             So, based on the State's concerns regarding

       4      the questionable available capacity, the potential

       5      of inhibition of biological activity in sludge

       6      settling, and Pennsylvania's experience, and citizen

       7      opposition to the practice, municipal treatment

       8      plants in New York State should not be permitted to

       9      accept fracking wastes.

      10             In my testimony, I go on to just touch on the

      11      issue of recycling and reuse.

      12             I would just like to echo what I said before,

      13      you know, this is promising.  The more that can be

      14      recycled and reused, the better.

      15             If this industry is going to operate, you

      16      know, we want to make sure that they are using as

      17      little fresh water as possible, and polluting as

      18      little water as possible.

      19             However, at the end of the day, you still

      20      have contaminants that need to be dealt with.

      21             So, in the coming session, there are a couple

      22      of things that the Senate can work to do.

      23             First:  Passing Senate Bill 4616, as had been

      24      said before.

      25             And, Senator -- we appreciate the Senator's







                                                                   156
       1      support for this.

       2             This -- you know, this is a bill that's given

       3      "three trees" in Environmental Advocates' rating

       4      system.

       5             It's been designated a "superbill" by the

       6      environmental community, showing the community's

       7      strong support for this measure.

       8             And, it's a very basic, and a very

       9      reasonable, action to ask these companies to take;

      10      that, if the waste would be classified as

      11      "hazardous waste," to treat it as such.

      12             Secondly:  The Senate can act to make sure

      13      that municipal treatment plants are not accepting

      14      fracking waste.

      15             Third:  The New York State Comptroller is

      16      advancing legislation to establish strict liability,

      17      as well as the Spill Cleanup Fund.

      18             This gets at the problem of, you know:

      19             What happens if something goes wrong?

      20             What happens if a company does not act in --

      21      does not act as a good actor in New York, and then

      22      moves on?

      23             It gives New York an ability to go back, and

      24      make sure that there is a fund in place, to provide

      25      for any cleanup that happens.







                                                                   157
       1             Assemblyman Sweeney is carrying this bill.

       2      And it's something that the Senate should consider

       3      as well.

       4             And then, finally, on the issue of DEC

       5      funding and staffing:  You know, as the Senators are

       6      both well aware, this is an issue that the State --

       7      excuse me, funding and staffing issues are plaguing

       8      the DEC, from top to bottom, and in every -- every

       9      division within the agency.

      10             They're operating with fewer staff than they

      11      were in the 1980s; yet, the responsibilities of

      12      the agency to protect our water, our communities,

      13      has only increased.

      14             We are at a very critical time right now, as

      15      everybody's considering looking towards the next

      16      session, and looking towards the budget.

      17             As a member of the Fracking Advisory Panel,

      18      the Environmental Advocates is looking at this issue

      19      closely, and participating in discussions with other

      20      stakeholders about how this should move forward.

      21             But what has become clear, is that, industry

      22      should not be externalizing the costs of oversight,

      23      and of running a system that is, essentially,

      24      designed to cater this one industry's needs.

      25             This is something that industry needs to take







                                                                   158
       1      a strong lead on as well.

       2             So, that is, in a nutshell, my testimony.

       3             I appreciate your time.  I appreciate your

       4      leadership on this.

       5             And, I'm happy to take any questions.

       6             SENATOR GRISANTI:  Yeah, we're going to ask

       7      you some questions.

       8             We got to take a break for a few minutes.

       9      They have to change some of the technical and audio,

      10      so...

      11                  [Discussion at Chair's table.]

      12                  [Pause in the proceeding.]

      13                  [The proceeding resumed, as follows:]

      14             SENATOR GRISANTI:  We had a brief break to

      15      change some of the audio, which was good, so...

      16             Katherine, the couple questions that I have,

      17      is, you had mentioned -- you had mentioned about the

      18      possibility -- in particular, you mentioned about

      19      the Niagara Falls not being able to -- if they were

      20      to treat this, then they may not be able to treat

      21      other --

      22             KATHERINE NADEAU:  Right.

      23             SENATOR GRISANTI:  -- you know, what they

      24      were normally set up for.

      25             KATHERINE NADEAU:  Right, right.







                                                                   159
       1             And I wouldn't -- I wasn't speaking

       2      specifically about the Niagara Falls facility,

       3      because they do have specialized treatment systems.

       4             SENATOR GRISANTI:  Okay, that's what I want

       5      to differentiate.

       6             So you're talking about the facilities that

       7      you feel that just treat regular --

       8             KATHERINE NADEAU:  Right.

       9             SENATOR GRISANTI:  -- what they're set up to

      10      do, that if they were to do this, it could

      11      jeopardize what they were originally set up for in

      12      the beginning?

      13             Okay.

      14             KATHERINE NADEAU:  Absolutely.

      15             And that's most of the -- most of the

      16      facilities in the state are based on -- the biologic

      17      treatment systems are just meant to treat sewage,

      18      and that's what they're based upon.

      19             SENATOR GRISANTI:  Okay.

      20             I have heard in testimony in other hearings,

      21      that a lot of the companies in Pennsylvania are

      22      doing a lot more recycling than they were in the

      23      past.

      24             They would only, you know, maybe do two times

      25      pass-through, but some of them are recycling, and







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       1      carrying it from wells to wells.

       2             But, again, the concern with that is, is the

       3      storage;

       4             The concern is, still, you know, the water

       5      coming out from the flowback, from the casings.

       6             And, at the end, you're going to have, pretty

       7      much, because of its sitting, a higher

       8      concentration, I think, of chemicals, and that's

       9      also a concern.

      10             I would take it, you agree with that?

      11             KATHERINE NADEAU:  Yeah, absolutely.

      12             Absolutely.

      13             SENATOR GRISANTI:  Okay.

      14             And, uhm -- and it's -- you know, I was kind

      15      thinking the same thing in my head, when it was

      16      mentioned about:  Well, we're following the federal

      17      guidelines on this, with regards to hazardous waste,

      18      but -- so that's why we're doing it.

      19             When I know, just being in the Senate, that

      20      New York State, on various occasions, has gone so

      21      much higher above the federal requirements, from

      22      Medicaid, to other issues, that you don't really

      23      need to -- you know, to stay at that same level.

      24             And I think it's something I think that the

      25      DEC has actually, you know, starting to take a look







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       1      at again.

       2             KATHERINE NADEAU:  And just on that point, if

       3      I may:  The one thing that I would say, is that,

       4      folks concerned about this issue are looking to the

       5      feds for a lot.

       6             The Environmental Protection Agency is doing

       7      their study on how fracking impacts groundwater and

       8      water supplies.

       9             They're the studies that the EPA is doing out

      10      of Wyoming.

      11             So, the feds do have more resources, they

      12      have more abilities at their disposal, when we're

      13      looking a what's going on, on a national level, and

      14      taking some of those lessons and applying them to

      15      New York.

      16             So, there's definitely a role for the feds to

      17      play, but, again, it should be, as it has been in

      18      environmental law all along, the floor, and not the

      19      ceiling.

      20             You know, the feds set the minimum standards.

      21             But we can look here in New York, and we can

      22      say:  You know, what?  We need to do better to

      23      protect our waters --

      24             SENATOR GRISANTI:  Yeah, and I know -- and

      25      I said it before, that I know that there's going to







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       1      be some preliminary reports coming out in 2012.

       2             Somebody mentioned '14, but I think that's a

       3      final end study.

       4             And I understand what happened in Wyoming.

       5             And I understand that -- in New York, that's

       6      not a case that that would happen here, based on the

       7      depths, and buffer zone, so on and so forth.

       8             But there's -- the EPA is still doing their

       9      particular -- their study, and still moving forward.

      10             I've also heard that, you know, there may be

      11      a reduction in the type chemicals that are actually

      12      used in this process.

      13             And I want to say, more greener chemicals,

      14      but, I mean, chemicals, and, nonetheless, the sense,

      15      that if -- if you're reducing something, that's

      16      always, uhm -- that's always of good importance,

      17      too.

      18             KATHERINE NADEAU:  Absolutely.

      19             SENATOR GRISANTI:  The salinity of the water,

      20      could a public treatment facility, or a retrofitted

      21      public facility, in your opinion, work as, or in

      22      conjunction with, like a desalinization unit, a

      23      facility to work with clean, or getting rid of the

      24      saltwater?

      25             Do you see that as a potential?







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       1             KATHERINE NADEAU:  There are -- yeah, there

       2      are different treatment systems out there that

       3      specifically go after salinity.

       4             The problem that they encounter so often, is

       5      that there are super energy-intensive; and,

       6      therefore, they wind up being very, very expensive.

       7             And, you know, this makes sense.  Otherwise,

       8      if not, you know, we could -- all of Long Island

       9      could be drinking out of the ocean, and we could do

      10      it --

      11             SENATOR GRISANTI:  Right.

      12             KATHERINE NADEAU:  -- you know -- or, where

      13      there is ocean.  Not just Long Island.  I don't mean

      14      to pick.

      15             But, you know, we could be looking at this as

      16      a real option, but it comes down to expense.

      17             And, again, if that's something that the

      18      industry wants to take on, and can, you know -- can

      19      reduce these pollutants down to the point where they

      20      are not a problem, that's something that makes

      21      perfect sense.

      22             But, at this point, it's not being proposed

      23      in New York State; and, therefore, we shouldn't be

      24      allowed this -- we shouldn't allow this waste to be

      25      treated at municipal treatment plants in







                                                                   164
       1      New York State.

       2             SENATOR GRISANTI:  Gotcha.

       3             Okay, I appreciate your testimony.

       4             And, I'll turn over to Senator Gallivan.

       5             SENATOR GALLIVAN:  Just one question, going

       6      back to the manifest system that had been testified

       7      about --

       8             KATHERINE NADEAU:  Right.

       9             SENATOR GALLIVAN:  -- earlier, and you

      10      testified earlier as well.

      11             And, you talked about the differences

      12      between, what's being proposed and the requirement

      13      of the manifest system right now for hazardous

      14      wastes.

      15             And, the major difference is, where the

      16      fracking forms ultimately go, and then -- to the

      17      DEC, versus, kept by the industry.

      18             KATHERINE NADEAU:  Yes.

      19             SENATOR GALLIVAN:  And then, ultimately, be

      20      made public.

      21             Are there other significant differences, that

      22      you're aware of?

      23             KATHERINE NADEAU:  That's the most -- for the

      24      tracking system alone, that's the most significant

      25      one that I've come across in my research so far.







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       1             Because, both the hazardous wastes and the

       2      medical systems would require the generators to

       3      know:  How much waste is being transported?  You

       4      know, who's transporting?  Where it's going to?

       5      Signatures at both ends.

       6             That sort of thing.

       7             So, so far, in my research -- and I'm not

       8      saying I won't find something else -- but, so far,

       9      that's the biggest difference.

      10             SENATOR GALLIVAN:  Okay, thank you.

      11             That's all.

      12             SENATOR GRISANTI:  Okay.

      13             Thank you very much for coming in today.

      14             KATHERINE NADEAU:  Thank you.

      15             SENATOR GRISANTI:  Can we have, Paul Hartman,

      16      please.

      17             And I know, Mr. Hartman, that you have a

      18      pretty lengthy testimony.  It will be submitted in

      19      the record.

      20             You know, as I said before, paraphrase as

      21      much as you possibly can.

      22             PAUL HARTMAN:  Sure.

      23             SENATOR GRISANTI:  Okay, thank you very much.

      24             PAUL HARTMAN:  Thank you, Chairman.

      25             Chairman Grisanti, Senator Gallivan, other







                                                                   166
       1      members of the Senate Environmental Conservation

       2      Committee that will see or hear our testimony, thank

       3      you for the opportunity to address you today on the

       4      matter of produced water and drill-cuttings disposal

       5      as it will relates to natural gas drilling and

       6      hydraulic fracturing.

       7             My name is Paul Hartman.  I am the director

       8      of state government relations for

       9      Chesapeake Energy System.

      10             Chesapeake Energy is the second-largest

      11      producer of natural gas, a Top 15 producer of oil

      12      and natural gas liquids, and the most active driller

      13      of new wells in the United States.

      14             Due to time constraint, my testimony today

      15      will focus on Chesapeake's water recycling and reuse

      16      program: Aqua Renew.

      17             And I am very pleased to hear today,

      18      environmental advocates advance water recycling as a

      19      major solution to the water issues.

      20             It has been an issue of major concern to the

      21      State of New York, and to the industry as a whole,

      22      and I hope to illustrate today how we have

      23      approached to solve the water-disposal problems.

      24             Water is an important and highly valued

      25      resource, and Chesapeake takes its use very







                                                                   167
       1      seriously.

       2             One of the major advances in the process of

       3      developing our natural gas resources in recent

       4      years, that has resulted in significant conservation

       5      of our water resources, is the advent of recycling

       6      and reuse of flowback and produced water by the

       7      industry.

       8             Water recycling, particularly in neighboring

       9      Pennsylvania, has been transformed from a trend to

      10      an essential operation procedure.

      11             Recycling produced water reduces the impact

      12      on local water supplies, which translates into less

      13      truck traffic, which means reduced road

      14      infrastructure wear-and-tear from water tanker

      15      trucks.

      16             Founded on the concept of water recovery and

      17      reuse, Chesapeake's Aqua Renew program is utilizing

      18      state-of-the-art technology in an effort to recycle

      19      produced water.

      20             This naturally occurring water is generally

      21      laden with various minerals that travels from the

      22      producing formation, through the wellbore, to the

      23      surface, with natural gas, during the completion of

      24      production operations.

      25             The quality of produced water, as was







                                                                   168
       1      mentioned earlier by others that have testified,

       2      differs greatly with the varying amounts of salt,

       3      sand, or silt, depending on the formation from which

       4      it -- it's found.

       5             Due to its normally high salt content, reuse

       6      and completion operations had been considered

       7      impossible by the industry for a very long time.

       8             Chesapeake began to intently focus on water

       9      reclamation and conservation after the 2006/2007

      10      drought in the Barnett Shale in Texas.

      11             The drought had an obvious effect on

      12      Chesapeake's drilling and completion activities, as

      13      well as surrounding communities.

      14             From that experience, Chesapeake's -- and

      15      Chesapeake's involvement with the Barnett Shale

      16      Water Conservation and Management Committee, the

      17      company entered into an agreement with the City of

      18      Fort Worth, to study evaporation systems as a

      19      potential way to reduce the amount of produced water

      20      being injected into saltwater disposal wells, which

      21      was the preferred disposal technique at the time.

      22             Using an evaporative reduction and

      23      solidification system to capture heat generated by

      24      natural gas compressor stations, an energy source

      25      that would typically be wasted, a portion of the







                                                                   169
       1      produced water is then filtered and reduced to water

       2      vapor.

       3             The resulting clean vapor is then released

       4      into the atmosphere where it enters the normal

       5      hydrologic cycle.

       6             Since this preliminary reclamation project,

       7      Chesapeake's focus on reuse of water has become a

       8      company-wide endeavor, stretching from the

       9      Barnett Shale in north Texas to

      10      northern Pennsylvania.

      11             In fact, the Aqua Renew program is helping to

      12      change the longstanding industry assumptions that

      13      produced water is unusable.

      14             As referenced previously, it was a

      15      longstanding supposition that using anything other

      16      than fresh water would harm the ultimate

      17      productivity of the well.

      18             As a result, operators have previously only

      19      used fresh-water resources in

      20      drilling-and-completion procedures.

      21             Chesapeake decided to challenge and test that

      22      theory, and see if it was true; or, if there was, in

      23      fact, a limit as to how much recycled water could be

      24      used without compromising well production.

      25             At each well site, produced water is







                                                                   170
       1      collected and stored in on-site holding tanks before

       2      being transferred to a central filtration location.

       3             Our current methods of fluid treatment use

       4      both chemical and physical methods.

       5             The fluids from our drilling operations are

       6      treated through a filter press which requires some

       7      chemical additions to adjust fluid parameters, such

       8      as pH.

       9             Aqua Renew also uses fluctuating agents to

      10      assist in removing solids from the fluid.

      11             The physical treatment utilizes a

      12      backwashable system which filters out the suspended

      13      solids larger than 20 microns.

      14             The filtered water is then either stored in

      15      on-site tanks or transported to the next well

      16      scheduled for hydraulic fracturing, commonly

      17      referred to as "fracking."

      18             The water is tested for salt content, total

      19      hardness, to determine at which rate it can be

      20      blended with fresh water to ensure proper quality

      21      and quantity for reuse.

      22             Chesapeake still has to mix the recycled

      23      produced water with fresh water in order to ensure

      24      the proper mixture for fracturing, but every gallon

      25      of produced water that is filtered and reused is one







                                                                   171
       1      less gallon of water that has to be permitted at a

       2      disposal location, and one less gallon of fresh

       3      water that has to be sourced.

       4             To date, Chesapeake still has not found a

       5      limit on the reuse of recycled water.

       6             In fact, the company's northern and central

       7      districts of the eastern division operations are

       8      treating and recycling 100 percent of the initial

       9      produced water from the flowback process.

      10             We believe that water can be recycled

      11      indefinitely, as it's mixed with fresh water during

      12      the fracturing process.

      13             The fracturing process uses an average of

      14      6 million gallons of water per well, depending on

      15      several factors.

      16             Through the second quarter of 2011,

      17      Chesapeake had four Aqua Renew sites recycling

      18      drilling and production fluids in Pennsylvania,

      19      under an OG-71 permit issued by the Department of

      20      Environmental Protection, Oil and Gas Division.

      21             This past summer, the Commonwealth changed

      22      the permit requirement to require a new permit, the

      23      WMGR123, which is managed by the waste management

      24      division of the Pennsylvania DEP.

      25             All future fluid-processing sites will







                                                                   172
       1      require an MRG123 [sic].

       2             I have included a copy of this permit with my

       3      testimony, for your reference.

       4             The OG-71 permit will remain available in

       5      Pennsylvania; however, allowable activities under

       6      this permit will be limited to the utilization of

       7      the recycled water on the well pad at which it was

       8      processed.

       9             Chesapeake has established a program of

      10      periodic measurement of the radioactivity of the

      11      recycled water, and has found no increase in

      12      radioactivity over background data.

      13             We also measure the radioactive level of

      14      every load of solids which has been filtered from

      15      the produced waters, as required per our permit, and

      16      have found no load of solids which exceed the limits

      17      set under the state operating limit.

      18             Currently, all filtered solids are trucked to

      19      a rail siting in Meshoppen, Pennsylvania, and taken

      20      to Ohio for disposal in the landfill.

      21             The filtered solids are once again checked

      22      for abnormal radioactivity at the landfill before

      23      final disposal.

      24             On average, this process is able to filter

      25      and reuse more than 10 million gallons of produced







                                                                   173
       1      water a month in the Marcellus Shale.

       2             In 2010 alone, Chesapeake recycled 83 million

       3      gallons of produced water.

       4             With such large volumes of recycled water,

       5      the company's seen more than just environmental

       6      advantages.

       7             Our accounting department has estimated that

       8      this aspect of the process is saving an average of

       9      $12 million a year in the eastern division alone.

      10             The program is garnering results like these

      11      throughout our shale plays; and, subsequently, the

      12      Aqua Renew program is expected to continue to grow.

      13             Chesapeake is always evaluating new

      14      technology on our own, and through partnerships,

      15      like the one we have with the Barnett Shale Water

      16      Conservation Group, and others.

      17             Currently in Pennsylvania, our biggest

      18      challenge to enhancing our recycling and reuse

      19      efforts, is obtaining the permits for the

      20      development of additional fluid processing sites,

      21      and avoiding the potential for exceeding current

      22      filtration capabilities.

      23             However, I must take the opportunity to

      24      appeal to the Committee, that innovation of the

      25      technological advancement are only possible through







                                                                   174
       1      a flexible regulatory and statutory regime that does

       2      not lock industry into yesterday's technology, best

       3      practices, or common practices.

       4             In April of this past year, the Pennsylvania

       5      DEP requested that all natural gas operators cease

       6      delivering wastewater from shale-gas extraction to

       7      permitted wastewater treatment facilities in the

       8      Commonwealth.

       9             Chesapeake, and all operators active in the

      10      Marcellus Shale Coalition, have made extensive

      11      efforts to meet that objective, predominantly

      12      through the expansive reuse and recycling of

      13      produced water.

      14             Meeting the goal of near-universal recycling

      15      and reuse can be impeded by burdensome and overly

      16      prescriptive regulations, or legislative-stipulated

      17      best-management practices.

      18             I would advise the Committee to examine the

      19      overall impact of any new proposals in regards to

      20      wastewater retreatment, recycling and reuse, to

      21      determine the effectiveness of the policy, and the

      22      creation of any additional barriers to sound water

      23      management and conservation practices that have been

      24      developed by industry leaders, such as Chesapeake,

      25      over the past several years.







                                                                   175
       1             Please keep in mind, that only five to

       2      six years ago, the conventional wisdom dictated that

       3      produced water could not be recycled and reused.

       4             And, today, in our Marcellus North operations

       5      we are, in fact, recycling and reusing 100 percent

       6      of the initial and produced water from the flowback

       7      process.

       8             In closing:  It is with great pride that

       9      Chesapeake can share with you that the filtration

      10      recycling process we are utilizing is working quite

      11      well in Pennsylvania.

      12             Utilization of recycled water in our

      13      fracturing process has not had a negative impact on

      14      well productivity, and our fluid waste treatment

      15      capability creates a closed-loop system which has no

      16      impact on the fresh-water rivers and streams in

      17      Pennsylvania.

      18             I thank you for the opportunity to address

      19      the Committee today on this important issue.

      20             Please rest assured, that Chesapeake stands

      21      ready to assist the Chairman and members of the

      22      Committee on this, and any other issues pertaining

      23      to the responsible development our natural gas

      24      resources.

      25







                                                                   176
       1             SENATOR GRISANTI:  Thank you very much.

       2             Do you know if, uhm -- do you know if other

       3      oil and gas companies are, uhm -- I don't know,

       4      being, somewhat, as your company, is with

       5      100 percent recycling?

       6             PAUL HARTMAN:  There are a number of

       7      companies that have achieved 100 percent at this

       8      point in time.

       9             As of the directive from DEP, regarding

      10      disposal at public wastewater treatment facilities,

      11      I believe the industry was at about 70 percent,

      12      industry-wide, recycling reuse.

      13             That number has increased dramatically.

      14             I don't have the current figure, but it is

      15      well north of 70 percent at this time.

      16             SENATOR GRISANTI:  All right.

      17             And, then, if you're recycling the water at

      18      some point, there's got to be an end product;

      19      correct?

      20             PAUL HARTMAN:  The end product that we have

      21      right now is the solids that are filtered out.  And

      22      those are disposed of at landfills.

      23             SENATOR GRISANTI:  Okay.

      24             PAUL HARTMAN:  We currently are evaluating

      25      the effectiveness of the water and reuse of the







                                                                   177
       1      refracturing.

       2             At this point in time, we don't see a time

       3      where that water's not going to be useful for us for

       4      that purpose again.

       5             SENATOR GRISANTI:  Okay.

       6             The [unintelligible] disposal landfills, is

       7      there still -- are you still disposing in Ohio as

       8      well?

       9             PAUL HARTMAN:  Yes.

      10             SENATOR GRISANTI:  Okay.

      11             PAUL HARTMAN:  We are disposing a little bit

      12      of our produced water from our southwest

      13      Pennsylvania operations, in Ohio.

      14             SENATOR GRISANTI:  Okay.

      15             And you saw -- I mean, you were here earlier.

      16             And when you saw, like the open pits, as far

      17      as what they're talking about, and -- and, uhm --

      18      the cuttings -- this is besides the frack water --

      19      what are you doing with that regards, with regards

      20      to cuttings, and so on and so forth?

      21             PAUL HARTMAN:  We use a fulcrum (ph.)

      22      closed-loop system for our flowback water, as well

      23      as for our drill cuttings.

      24             So, we are operating on that closed-loop

      25      system currently.







                                                                   178
       1             SENATOR GRISANTI:  All right, so you're

       2      not -- it's not what they have here in New York,

       3      where they showed, like some of the areas are using

       4      an open-pit system?

       5             PAUL HARTMAN:  We are not using an open pit

       6      in our processes in the northern Marcellus.

       7             SENATOR GRISANTI:  All right, so --

       8      basically, so everything's closed; it's contained?

       9             PAUL HARTMAN:  That is correct.

      10             SENATOR GRISANTI:  Is the regulations in

      11      Pennsylvania sort of less restrictive than they will

      12      be in New York, as far as, if someone called for,

      13      like, a double containment, so on and so forth?

      14             PAUL HARTMAN:  It's important to note that

      15      the standards and the regulations that we have been

      16      operating, as an industry in New York State, have

      17      exceeded most other jurisdictions for a number of

      18      years.

      19             The proposals prior to the original SGEIS

      20      draft that was put out in 2008, we were operating at

      21      a higher standard than many jurisdictions across the

      22      country, in New York State, under the current

      23      guidelines.

      24             When you add in the additional

      25      Supplemental Generic Environmental Impact Statement







                                                                   179
       1      requirements, we'll be at a level far exceeding

       2      anything that's even been contemplated in other

       3      jurisdictions across the country.

       4             With that said, Pennsylvania began

       5      significant development of the Marcellus about

       6      four years ago.

       7             They have been evaluating the process as

       8      development has increased.

       9             They have responded to, what they have deemed

      10      as, deficiencies in their operations.  And, they

      11      have responded to suggestions from industry, as to

      12      how better to implement some best-management

      13      practices in a, either legislative or regulatory

      14      framework.

      15             SENATOR GRISANTI:  All right.

      16             So, it's -- it would be fair to say, then, in

      17      the beginning, then, Pennsylvania was basically

      18      saying:  Okay, let's move forward this procedure.

      19             But, then, as they're moving forward, they're

      20      seeing that certain things weren't working properly,

      21      and they implemented changes, or put additional

      22      regulations on, in order to, uhm -- you know, to

      23      take care of any downfalls or shortcomings?

      24             PAUL HARTMAN:  There have been a number of

      25      issues that the State has -- the Commonwealth has







                                                                   180
       1      decide they'd they needed to address, and enhance

       2      their regulations, over the last couple of years.

       3             SENATOR GRISANTI:  Have they expanded, as

       4      they have done here in New York; whether it's,

       5      buffer zones from specific well sites?

       6             Or -- or, in Pennsylvania, do they have sort

       7      of a continuing moratorium, and you can't drill

       8      within these certain watersheds, so on and so forth?

       9             PAUL HARTMAN:  There are established buffers

      10      in most jurisdictions across the country, that range

      11      in size, depending on who put those buffers in

      12      place.

      13             Pennsylvania began this process a number of

      14      years ago, with buffers in place.

      15             They are currently reviewing those buffers.

      16             And there is a number of bills that are

      17      pending before the legislature, that would increase

      18      buffer zones.

      19             SENATOR GRISANTI:  Okay, but New York still

      20      is ranked high in regulation on buffer zones, and as

      21      far as --

      22             PAUL HARTMAN:  The -- the -- I would place

      23      New York in a category of having more, uhm -- more

      24      things that there are buffers from.

      25             Some of the distances are greater in New York







                                                                   181
       1      than they are in existing jurisdictions.

       2             There are a couple of buffers, to my

       3      understanding, that may be larger in other

       4      jurisdictions.

       5             SENATOR GRISANTI:  Okay.

       6             The, uhm -- so, the recycling of the water --

       7      and that's something that we've heard environmental

       8      advocates talk about, we've heard other groups talk

       9      about it -- that, you know, if you can do it, it's

      10      the way to go.

      11             Have you noticed in your company, a -- sort

      12      of a -- a -- taking some of the chemicals out of the

      13      equation that are added, saying these are needed,

      14      are you seeing that more so in, uhm -- what you're

      15      doing in Pennsylvania, that some of the chemicals

      16      that we're actually using, or what's being fracked

      17      and what's coming back, that you're able to, either,

      18      not use some of those chemicals, or you're able to,

      19      by recycling, minimize any effect?

      20             PAUL HARTMAN:  Well, the important thing

      21      to -- yes, we are.

      22             And the important thing to realize, is that,

      23      each geological formation of which we are extracting

      24      this resource has its own complexities, and requires

      25      certain additives, based on the geology, to produce







                                                                   182
       1      a productive well.

       2             What we have found through our experience in

       3      northern Marcellus, is that we are able to reduce,

       4      somewhat dramatically, the amount of additives that

       5      were necessary to produce the well at a highly

       6      performing rate.

       7             So, we've been able to go from 14 additives

       8      in our fracturing process, to, roughly, about 6, on

       9      an average fracturing job in the northern Marcellus.

      10             SENATOR GRISANTI:  Okay.

      11             And according to DEC, those additives, or

      12      those, chemicals, are going to be disclosed --

      13             PAUL HARTMAN:  Yes.

      14             SENATOR GRISANTI:  -- anyways?

      15             PAUL HARTMAN:  That is one of the largest

      16      misun- -- misconceptions about our industry.

      17             The fracturing fluids are disclosed, in their

      18      totality, to the regulatory agent, under the SGEIS.

      19             And under the current GIS, we are disclosing

      20      those chemicals to the State of New York.  They have

      21      the formulations.  They have the number of

      22      chemicals.

      23             We are also publicly disclosing, through a

      24      joint venture with the Groundwater Protection

      25      Council, and the Interstate Oil and Gas Compact







                                                                   183
       1      Commission, of which New York State is a member, all

       2      of the chemicals that are used in every fracturing

       3      job that we do in the Marcellus, publicly, on a

       4      website called "FracFocus," where we disclose the

       5      maximum concentration of every chemical used in that

       6      process.

       7             Now, the reason for disclosing the maximum

       8      concentration, is that, it gives the public full

       9      knowledge of what the extreme amount of fluid would

      10      be contained in that process.

      11             But, at the same time, it protects the

      12      federally protected proprietary trade secrets of the

      13      formulation that many of our service providers have

      14      asserted on their specific chemical formulations.

      15             So, this way, we get the maximum amount of

      16      knowledge out into the public domain without giving

      17      the compact, specific chemical formulations.

      18             SENATOR GRISANTI:  Okay.

      19             The, uhm -- but, in New York, are they going

      20      to take that same approach, by exempting out the

      21      proprietary interests?

      22             PAUL HARTMAN:  In New York, all of the

      23      information, in its totality, will have to be

      24      provided to the agency.

      25             The agency, at that point in time, will be







                                                                   184
       1      able to provide that information, as necessary, to

       2      emergency responders, or other individuals, that

       3      need to have the exact chemical composition.

       4             SENATOR GRISANTI:  What about facilities that

       5      are trying to treat it?

       6             They would need that information as well.

       7             PAUL HARTMAN:  That information I don't have

       8      readily available, but it's something we can look

       9      into and get back to you on.

      10             SENATOR GRISANTI:  Is there something -- do

      11      you utilize the, uhm -- in Pennsylvania, the private

      12      facility that's trying to clean up the fracking

      13      water?

      14             There's a facility that just opened there

      15      recently; correct?

      16             PAUL HARTMAN:  We are not currently.

      17      Although, we have been in discussion with a number

      18      of private entrepreneurs about private facilities

      19      that are either being investigated to come on-line

      20      or looking for details on how to build those

      21      facilities.

      22             We are currently doing all of our recycling

      23      in-house.

      24             SENATOR GRISANTI:  Okay.

      25             I have nothing further at this point.







                                                                   185
       1             I'll pass it to Senator Gallivan.

       2             SENATOR GALLIVAN:  With your recycling

       3      program and reuse program, do I understand correctly

       4      that -- from your testimony, that whatever waste

       5      there is, is limited to solids?

       6             So, you have no liquid waste --

       7             PAUL HARTMAN:  Correct.

       8             SENATOR GALLIVAN:  -- that's transported off

       9      of your site?

      10             PAUL HARTMAN:  That is correct.

      11             We are maintaining the fluid for additional

      12      fracturing jobs, following that -- that initial

      13      processes.

      14             SENATOR GALLIVAN:  How much additional water

      15      do you need -- you've indicated that you're reusing

      16      100 percent of your liquid, after you're removing

      17      certain contaminants out of it, but then you need to

      18      add some fresh water to the process?

      19             PAUL HARTMAN:  Correct.

      20             SENATOR GALLIVAN:  And can you put that in

      21      percentage terms?

      22             PAUL HARTMAN:  Yeah.

      23             The top end, right now, that we're able to

      24      reuse recycled water in a new fracturing job, we're

      25      using 20 percent recycled water and about 80 percent







                                                                   186
       1      fresh water.

       2             That is the current mixture that's -- that

       3      we've required -- that is required to effectively do

       4      the next fracturing job.

       5             We hope to be able to continue to refine the

       6      process, and maximize the amount of recycled water

       7      that we're using in additional fractures.

       8             But, it's also important to remember, that

       9      we're getting a smaller percentage of that water

      10      returned, between, you know, 10 and 18 percent

      11      returned water.

      12             So, we are always going to be at a deficit of

      13      recycled water for additional fractures.

      14             SENATOR GALLIVAN:  Okay, thank you.

      15             Good.

      16             SENATOR GRISANTI:  The, uhm -- you know,

      17      if -- if you guys are doing 100 percent recycling,

      18      have new figures been, sort of, estimated then, on

      19      how much new water won't be necessary, because of

      20      the fact that you're doing 100 percent recycling?

      21             PAUL HARTMAN:  Well, we've -- we've -- we've

      22      recycled 83 million gallons of water, thus far, in

      23      the northern Marcellus.

      24             So, that's 83 million gallons of water that

      25      we did not source for additional fractures.







                                                                   187
       1             SENATOR GRISANTI:  And I take it, if it's a

       2      30-year well, that's -- that could be a huge amount

       3      of water that's actually saved?

       4             PAUL HARTMAN:  Well, at this point in time,

       5      we don't anticipate refracturing the wells.

       6             We are -- based on the production of the

       7      wells, often, initial fracturing job, we don't

       8      anticipate having to come back and refracture those

       9      wells.

      10             SENATOR GRISANTI:  Okay.

      11             All right.

      12             All right, I appreciate your testimony.

      13             Thank you very much.

      14             PAUL HARTMAN:  Thank you.

      15             SENATOR GRISANTI:  I know you have a lot of

      16      information here.  That will be put into the record.

      17             I just ask you to paraphrase as much as you

      18      can, because we still have other speakers to get

      19      through, and I don't know if they're going to throw

      20      us out of here by the time we said.

      21             So, I don't want to take that chance, and cut

      22      somebody off at the end.

      23             ROBERT DUTHIE:  You're correct.

      24             I will paraphrase.

      25             SENATOR GRISANTI:  All right.







                                                                   188
       1             ROBERT DUTHIE:  I will paraphrase.

       2             SENATOR GRISANTI:  Thank you.

       3             ROBERT DUTHIE:  Good afternoon,

       4      Chairman Grisanti, and Senator Gallivan.

       5             I am Robert Duthie, president,

       6      Synergena, Incorporated.

       7             And, it's J.R. Red, Incorporated.  Synergena

       8      is the division.

       9             I'm a bioengineer, by profession.

      10             Today I will introduce you to an advanced

      11      industrial wastewater treatment, and technology.

      12             The technology is:  Nanophotonic

      13      decontamination purification.

      14             "Photonics" is the application of light,

      15      whose basic energy unit is photon.

      16             SIAD is a patented process, incorporating a

      17      specific combination of proprietary light waves,

      18      operating simultaneously, to decontaminate, purify,

      19      and sterilize.

      20             I led a team over the past 30 years, combined

      21      with Roswell Park doctors and University of Buffalo

      22      researchers, along with many other institutions

      23      around this country, to develop this process.

      24             Interesting, as we've heard about the

      25      medical-device industry, we began in the







                                                                   189
       1      medical-device industry, with successful and

       2      validated use of this SIAD technology equipment

       3      produced by Synergena over two decades ago.

       4             I also heard quite a bit about solids.

       5             We began by micro-cleaning.

       6             We did organic and inorganic decontamination

       7      and sterilization of medical equipment.  Medical

       8      equipment and implant equipment.

       9             We removed the contaminants.

      10             This research and trials were done at

      11      nationally and internationally recognized

      12      institutions:  Roswell Park, Cleveland Clinic, UCLA,

      13      University of Buffalo, Veterans Administration, and

      14      others around the country.

      15             About 10 years ago, we advanced this

      16      technology from -- and tried it in liquids.

      17             We were funded by the State of New York,

      18      federal government; and we had successful studies in

      19      the fields of food, beverage, and agricultural

      20      purification.

      21             Excuse me.

      22             Weapons-grade biological and chemical

      23      decontamination, after the 2000 -- 9/11 of 2001,

      24      and, industrial wastewater remediation.

      25             Clients in this field included everyone, from







                                                                   190
       1      Tropicana, to Boeing.

       2             Just recently, we finished our last study of

       3      a benchmark, hazardous industrial waste hydrocarbon,

       4      phenols, and PCB.

       5             That is attached in your folder there.

       6             Why is this important?

       7             We changed PCB-contaminated water from the

       8      transformer industry into drinking-grade water.

       9             Not environmentally sound water that you just

      10      release, but, drinking, human-consumption water.

      11             About a year ago, hydrocarbon-contaminated

      12      shale drilling and hydraulic fracturing flowback

      13      water was brought to my attention.

      14             Hydrocarbon-contaminated water contains

      15      hydrogen-and-carbon compound, which is non-polar;

      16      and water, which is a polar.

      17             Hydrocarbons and water do not mix, but are

      18      extremely difficult to separate, and require

      19      industrial water treatment.

      20             Simple hydrocarbons, such as methane, ethane,

      21      propane, butane, are found in natural gas.

      22             Horizontal shale drilling and hydraulic

      23      fracturing flowback water contains natural gas.

      24             Horizontal shale drilling --

      25             Let me repeat that:  Horizontal shale







                                                                   191
       1      drilling.  Not vertical.

       2             -- horizontal shale drilling and hydraulic

       3      fracturing flowback water is carbon-contaminated

       4      industrial wastewater, and requires industrial

       5      wastewater treatment.

       6             Again, I am here to introduce you to a new

       7      technology.  An advanced industrial wastewater

       8      technology.

       9             We call it "SIAD."

      10             That stands for: synergistic isogenis active

      11      decontamination.

      12             It is value added.

      13             It is value added to the industry, in that,

      14      the watered recycling and industrial water treatment

      15      facilities conducive to reducing transportation and

      16      water costs.

      17             It is value added to the community.  New

      18      equipment, manufacturing, and sales opportunities

      19      for New York State.

      20             It is value added to the environment, because

      21      we can produce clean water and clear air.

      22             Both the stationary and mobile industrial

      23      SIAD wastewater treatment systems and facilities, we

      24      hope to be operational and located in communities

      25      and on industrial sites, producing clean water and







                                                                   192
       1      pure air.

       2             SIAD is a New York green technology and

       3      manufacturing initiative for a global market.

       4             SIAD is made in the U.S.A.

       5             Synergena is a local company.

       6             We can address solids, we can address

       7      radioactive, our research.

       8             And we are prepared to work jointly with

       9      these companies, to use our research and technology

      10      to improve the quality of life in New York State.

      11             And I offer that today.

      12             Thank you for your time.

      13             And if you have any questions, which I

      14      imagine you will.

      15             SENATOR GRISANTI:  Thank you, Robert.

      16             You know, in looking a this earlier, it

      17      seems, is that, because you've been in this industry

      18      for so long --

      19             ROBERT DUTHIE:  Yes.

      20             SENATOR GRISANTI:  -- that some of the -- as

      21      you said, with the PCBs, some of the things that

      22      you've cleaned, you're saying are -- and filtered,

      23      are a lot harder to filter and clean than this?

      24             ROBERT DUTHIE:  That is correct.

      25             That is correct.







                                                                   193
       1             SENATOR GRISANTI:  In a nutshell, what you're

       2      saying is --

       3             ROBERT DUTHIE:  We are --

       4             SENATOR GRISANTI:  -- what we've done in the

       5      past, with the hydrocarbons and cleaning, is,

       6      something that was more difficult, you're able to

       7      do.

       8             You feel you can do this, as far as the

       9      flowback water?

      10             ROBERT DUTHIE:  Yes.

      11             Again, I refer to the medical-device

      12      industry.

      13             In the medical-device industry, we use

      14      benchmark organisms and chemicals, with the FDA.

      15             Once those are remediated, you can do the

      16      lesser amounts.

      17             Again, that's what we did with the chemicals

      18      here.

      19             That's why the phenols and the PCB was so

      20      important.

      21             It is, literally, impossible to break down

      22      the PCBs in the water.

      23             In fact, it's so impossible, that we now have

      24      a working relationship with one of the large

      25      electrical-transformer companies in the nation,







                                                                   194
       1      internationally, that's looking at this process.

       2             What we see in the hydraulic fracturing water

       3      is, applying our knowledge of what we've used

       4      already, and it's called "technology transfer from

       5      the medical-device industry," including, what we

       6      know about quality assurance in the medical-device

       7      industry.

       8             It is interesting, that when you talked of

       9      the regulatory and the control factors, in the

      10      medical-device industry -- again, which I've been a

      11      member of for 30 years -- we are controlled by the

      12      FDA.

      13             When we ship out any medical-device equipment

      14      that is contaminated, or it is -- it is rubbish.

      15             We are responsible.

      16             We are responsible for that transportation.

      17             We are responsible for, on down the line,

      18      right into the facilities, their pits, and so on.

      19             When the FDA inspector comes in -- I don't

      20      know if you're familiar with an FDA inspector.

      21             An FDA inspector will come into your

      22      facility -- a hospital, or so on -- show you his

      23      credentials and flash his sidearm.

      24             FDA inspectors are the only inspectors that

      25      are allowed that.







                                                                   195
       1             SENATOR GRISANTI:  I didn't know that.

       2             ROBERT DUTHIE:  Yes.  It is scary.

       3             You don't mess with FDA.

       4             They take, and they will go over your

       5      records, and you better have your quality assurance

       6      in place, at every sequence down that line, is

       7      validated, and verified.

       8             Or you're responsible, and they will shut you

       9      down immediately.

      10             SENATOR GRISANTI:  Now, when they talk

      11      about -- and you were here this morning, when they

      12      talk about, you know, whether it's public or private

      13      facilities, being able to, uhm -- trying to clean

      14      this water, you're saying that that could be

      15      possible, but that your technique --

      16             ROBERT DUTHIE:  My technique is one of a

      17      series of techniques.

      18             In our mobile units that we designed, we use

      19      a separation process; a filter -- course-filtration

      20      process, similar to what Chesapeake just explained.

      21             Our nanophotonic SIAD process, which removes

      22      it -- reduces the hydrocarbons.

      23             You don't totally remove it.  You get down

      24      below levels that are hazardous.

      25             And then you do the final filtration process,







                                                                   196
       1      which is 1 to 2 microns, and you come out with close

       2      to a drinking-water standard; which, after we've

       3      finished this process, we are able to recycle the

       4      water in a vertical well, which is, when you start

       5      drilling the well, you have to use a pure water.

       6             I'm sure everyone will agree on that, because

       7      you're going to be penetrating the aquifer.

       8             SENATOR GRISANTI:  Got you.

       9             Okay.

      10             Well, I appreciate your testimony here today.

      11             I'll turn it over to Senator Gallivan.

      12             SENATOR GALLIVAN:  No more questions.

      13             Thank you.

      14             SENATOR GRISANTI:  Okay.

      15             Thank you very much.

      16             ROBERT DUTHIE:  Thank you.

      17             SENATOR GRISANTI:  Brian, please.

      18             Good afternoon, Brian.

      19             How are you?

      20             BRIAN RAHM:  How's it going?

      21             Go ahead?

      22             SENATOR GRISANTI:  Go ahead.

      23             BRIAN RAHM:  All right.

      24             My name is Brian Rahm.  I'm a post-doctoral

      25      associate with the New York State Water Resources







                                                                   197
       1      Institute.  We're at Cornell University.

       2             Thank you for the opportunity to participate

       3      in this discussion.

       4             I'll move on with my testimony.

       5             So, my testimony will address the following

       6      subjects:

       7             One:  Pertinent wastewater and cuttings data

       8      from Pennsylvania related to similar issues

       9      potentially faced by New York;

      10             Two:  Wastewater acceptability at publicly

      11      owned treatment works, or, "POTWs," in New York,

      12      with an emphasis on recommendations provided by

      13      New York Water Environment Association.

      14             It's a professional group, which I'll say

      15      "NYWEA," instead;

      16             And then, three:  Wastewater treatment

      17      capacity in the Southern Tier of New York, and

      18      thoughts on future development.

      19             Throughout, I will try to highlight some

      20      language from the revised draft Supplemental Generic

      21      Environmental Impact Statement, or, what I'll call

      22      the "SGEIS," as well as some New York regulations.

      23             So, Point Number One:  Pertinent wastewater

      24      and cuttings data from Pennsylvania related to

      25      similar issues potentially faced by New York.







                                                                   198
       1             Some of this has been talked about by

       2      previous speakers.  I'll just go through it quickly.

       3             I just want to outline some definitions, real

       4      quick, so you understand what I'm going to talk

       5      about, subsequent.

       6             Brine and frack fluid, also known as

       7      "flowback," and, "produced water," includes water

       8      for hydraulic fracturing.

       9             In the Marcellus Shale, frack fluids consist

      10      of water, again, mixed with approximately

      11      8 to 15 chemical additives per well.

      12             According to the Susquehanna River Basin

      13      Commission, which is this interstate body in charge

      14      of regulating water withdrawals in the Susquehanna

      15      River Basis portion of New York, Pennsylvania, and

      16      other states, they have data from 2008 to 2011,

      17      where they say, that about 10 percent of the water

      18      injected into each well returns to the land surface

      19      within 30 days.

      20             It's an average.

      21             And the rest remains underground.

      22             Once the well's in production, relatively low

      23      volumes of produced water, or brine, will continue

      24      to come to the surface.

      25             This is different from drilling muds.







                                                                   199
       1             Drilling muds include fluids used during the

       2      drilling process, to cool and lubricate the drill

       3      bit and motor, and to transport the cuttings to

       4      surface.

       5             Overall, mud volumes are not high compared to

       6      flowback, but can contain chemical additives and

       7      metals, and things, that do require treatment.

       8             And then, finally, cuttings -- according to

       9      the SGEIS, rock chips and fine-grained rock

      10      fragments -- removed by the drilling process and

      11      returned to the surface as part the fluid.

      12             So with these definitions in mind, there are

      13      a few treatment options, or disposal options.

      14             These have also been covered by some previous

      15      speakers.

      16             We have, number one, I'll say:  On-site or

      17      off-site industrial treatment facilities;

      18             Two:  Reuse, with pretreatment, on-site or

      19      offsite.

      20             I want to make the distinction that, a lot of

      21      times, when we talk about reuse, or recycling, it

      22      goes through a treatment process first, and then

      23      they reuse it.

      24             And, generally, I know some companies have

      25      tried to reuse without treatment.







                                                                   200
       1             And I think, from what I've understood, their

       2      results weren't particularly good.

       3             So, usually there's some sort of treatment

       4      involved in the reuse.

       5             So, three:  Underground injection via

       6      federally regulated deep wells.

       7             There's been a lot of discussion about those.

       8             And, four:  Publicly owned treatment works.

       9      Again, "POTWs."

      10             So, in Pennsylvania, it is possible to get

      11      information on trends, in terms of wastewater

      12      treatment and disposal, because of recent

      13      establishment of a statewide tracking system.

      14             No state in the region, other than

      15      Pennsylvania, has yet reported data on wastewater

      16      management, although, West Virginia is in the

      17      beginning stages of this.

      18             So, it's not clear if these numbers will

      19      translate directly to New York, but they do provide

      20      some trends that might be relevant, if we're trying

      21      to, you know, learn lessons from our neighbors.

      22             New York has proposed such a system, although

      23      it's not exactly the same.

      24             So, how are certain Pennsylvania wastes being

      25      handled?







                                                                   201
       1             This is based on Pennsylvania DEP information

       2      from January to June of 2011.

       3             It's a publicly available database.  It goes

       4      back a few years, but not very far, because, again

       5      it's something they just set up.

       6             Now, in terms of brine and frack fluid,

       7      according to the database -- which is an industry

       8      self-reported database, so I can't necessarily vouch

       9      for the numbers, exactly -- but, according that

      10      database, roughly half is reused for subsequent

      11      frack jobs.

      12             Again, likely following industrial, or some

      13      other form of treatment.

      14             And the SGEIS does support this, by saying

      15      that reuse is expected to be significant in

      16      New York.

      17             Roughly, one-third of the water, the brine

      18      and frack fluid from Pennsylvania, is sent to

      19      industrial treatment facilities.

      20             None of those facilities, according to the

      21      database, are located in New York.

      22             About 5 percent of the wastewater does go to

      23      deep injection wells, mostly in Ohio, but also in

      24      other states, like West Virginia.

      25             Less than 1 percent, according to the







                                                                   202
       1      database, is going to POTWs, all of which are

       2      located in Pennsylvania.

       3             Again, we've heard, the Pennsylvania DEP has

       4      asked operators to voluntarily stop going to

       5      POTWs.

       6             There's some evidence in the database that

       7      this has been occurring over the last couple years.

       8             I think this is, probably, just one of

       9      several reasons why that trend is happening.

      10             As far as drilling muds and other liquid

      11      wastes, in terms of where they're being disposed of,

      12      it's roughly split between, what they're calling

      13      "reuse and industrial treatment facilities."

      14             And then, again, you have, about,

      15      1 to 2 percent, each, for POTW ands landfills, in

      16      terms of the drilling muds.

      17             Solid-waste, or the cuttings, are almost

      18      exclusively going to landfills.

      19             Most of those landfills are in Pennsylvania.

      20      It's about 60 percent.

      21             But, there's a significant amount of cuttings

      22      also coming to New York.  Again, according to the

      23      database, that number's at, about, 30 percent of

      24      cuttings.

      25             So, it's worth mentioning, that treatment of







                                                                   203
       1      these wastewaters, even at sophisticated industrial

       2      facilities, usually leads to some sort of

       3      byproduct -- a solid or concentrated liquid waste --

       4      that usually needs to handled, either by, landfill,

       5      or, again, some sort of deep-well injection, or

       6      other form of treatment.

       7             New treatment technologies are being

       8      developed by a growing water-service industry in

       9      Pennsylvania, although, many are not in yet in wide

      10      use.

      11             I think we heard about some crystallization

      12      technologies earlier.

      13             So -- okay, so that's Point One.

      14             Point Number Two:  Wastewater acceptability

      15      at POTWs in New York, with --

      16             And I'm going to be talking about some

      17      recommendations that were provided by NYWEA, which

      18      is a group that I had a chance to work, in making

      19      some of these recommendations, as well as with other

      20      issues related to Marcellus Shale.

      21             So, I want to briefly give an engineer's

      22      perspective on this.  Some of these recommendations

      23      are a little technical.

      24             I apologize for that.

      25             So, according to NYWEA:  Existing or new







                                                                   204
       1      POTWs that utilize physical-chemical treatment

       2      processes may have the ability to successfully treat

       3      specific shale-gas wastewaters.

       4             However, only two such systems currently

       5      exist in New York.

       6             And we just heard from Paul Drof, from

       7      Niagara Falls, being one of them.

       8             Successful treatment depends on the ability

       9      to understand and characterize waste composition

      10      over time, and the capabilities of the specific

      11      treatment system it's being sent to.

      12             Biological treatment plants, the vast

      13      majority of facilities in New York, likely will not

      14      be able to accept wastewaters without significant

      15      pretreatment, with the possible exception of some

      16      drilling muds that may be less complex than some of

      17      the flowback in previous waters.

      18             If treating shale-gas wastewaters were to be

      19      an option, NYWEA recommends that each POTW wishing

      20      to accept this kind of waste, review their facility,

      21      they examine the types of wastes that they're

      22      accepting, and their treatment capabilities, and see

      23      if they can meet the regulatory obligations.

      24             They also suggest revisiting the assimilative

      25      capacity of receiving water bodies.







                                                                   205
       1             So, those are the streams, the rivers, that

       2      those plants are discharging into, in terms of,

       3      particularly, TDS or salts.

       4             So, can those rivers or streams accept any

       5      further loadings of these kinds of constituents?

       6             Sometimes that's the case, and sometimes it's

       7      not.

       8             Pennsylvania, in particular, is already in

       9      bad shape when it comes to TDS in their streams.

      10             So, confirmation that it can protect the

      11      treatment-plant personnel and equipment from harm

      12      and damage.

      13             Something that maybe isn't talked about as

      14      much, are the actual workers themselves; making sure

      15      that they're safe.

      16             Analysis of the effect the wastewater may

      17      have on treatment-plant sludge and residuals --

      18      those are solids -- and whether the POTWs can

      19      cost-effectively manage and dispose of them.

      20             NYWEA also recommends that POTWs confirm

      21      they have the authority to stipulate monitoring

      22      requirements, as well as the ability to reject the

      23      wastewater that does not meet those requirements.

      24             Lastly, NYWEA recommends that POTWs give

      25      consideration to testing each load of new







                                                                   206
       1      wastewater, especially for radioactivity.

       2             The revised draft of the SGEIS, as well as

       3      some of the new proposed regulations in Part 750 of

       4      NYCRR, address some of these concerns, by requiring

       5      that each batch of wastewater leaving a well pad be

       6      tested for TDS, NORM, and BTEX; requires testing for

       7      influent and treatability at both public and private

       8      facilities; fluid disposal plans; and things like

       9      wastewater-volume monitoring.

      10             I think that still leaves an open question,

      11      in terms of DEC personnel for inspection and

      12      enforcement of these kinds of regulations.

      13             The regulations do have some pretty

      14      progressive terms in there; but, again, you know,

      15      it's always a question as to whether we're going to

      16      have the personnel doing what we say we're going to

      17      carry through on.

      18             So, I just leave that as an open concern.

      19             And, finally, Point Number Three:  Wastewater

      20      treatment capacity in the Southern Tier of New York.

      21             So, so far, I've provide some information on

      22      how wastewater and cuttings are dealt with in

      23      Pennsylvania.  And I've outlined some considerations

      24      relative to the use of POTWs in New York.

      25             However, it is clear that POTWs are not being







                                                                   207
       1      extensively used in Pennsylvania.

       2             Again, that's less than 1 percent of their

       3      wastewater.

       4             And that their use in New York entails a

       5      variety of concerns, that we've heard about this

       6      morning.

       7             So, what is the available POTW capacity in

       8      New York, and will they matter going forward?

       9             According to the SGEIS, the DEC performed a

      10      basic analysis, to determine the potential available

      11      capacity of POTWs for accepting this kind of

      12      wastewater.

      13             And given a number of, not always realistic

      14      assumptions, that were generous, the analysis did

      15      still find that there's questionable available

      16      capacity, quote/unquote, for POTWs in New York

      17      State to accept high-volume hydraulic fracturing

      18      wastewater.

      19             So, even with a scenario that assumed that a

      20      lot of this would be able to go forward, they still

      21      found that capacity was lacking.

      22             At WRI, we've also performed a similar

      23      analysis in the Susquehanna River Basin,

      24      specifically; so, more in the Southern Tier than the

      25      whole state.







                                                                   208
       1             Again, assuming the facilities have the

       2      ability and inclination to do so, which, very many

       3      will not, results of our analysis support the idea

       4      that capacity is limited, due to a combination of

       5      public-infrastructure size and regulatory

       6      constraints, such as those proposed in the SGEIS.

       7             In reality, there are additional reasons to

       8      think that POTWs will not be extensively utilized

       9      in New York.

      10             For example:  No POTW currently has

      11      TDS-specific treatment technologies.

      12             That would be the thermal-distillation or

      13      crystallization technologies.

      14             And, so, that's a reason to think that

      15      they're not going to be highly used here, because

      16      they would need to invest in those kinds of

      17      technologies in order to meet the requirements.

      18             These analyses, together with evidence from

      19      Pennsylvania, suggest that industrial treatment

      20      facilities have a greater ability and capacity to

      21      treat these waste streams.

      22             And it leads me to conclude that POTWs will

      23      not really be acceptable for industry within the

      24      regulations New York is likely to adopt.

      25             Encouraging establishment of purpose-built







                                                                   209
       1      industrial treatment facilities, either on-site or

       2      offsite, has several key advantages over POTWs:

       3             The technology is more appropriate;

       4             They have greater capacity;

       5             In terms of oversight, assuring compliance

       6      of, what may be a smaller number of industrial

       7      facilities, compared to a larger number of POTWs,

       8      is, perhaps, more manageable for DEC staff.

       9             And, then, something that's, sort of, equally

      10      important here:  Planning and finance.

      11             From a planning perspective, private

      12      facilities may be built at a pace and scale

      13      concurrent with the development of the shale, and

      14      may have more flexibility than public entities, in

      15      choosing business models that accommodate the

      16      volatile nature of extractive development.

      17             We talk about 30 years of development, but

      18      there's really no way to predict, with any

      19      certainty, exactly where the drilling's going to

      20      happen, exactly at what times, what the price of gas

      21      will be over that time.

      22             It would be nice to know, but we really

      23      don't.

      24             So, just offer the following conclusions:

      25             One:  Due to a combination of evolving







                                                                   210
       1      regulation, expanded industrial treatment

       2      infrastructure, and advancements in treatment

       3      technologies, a large majority of shale-gas

       4      wastewater in Pennsylvania is being handled by

       5      private industrial treatment facilities with an

       6      increasing model of reuse.

       7             Solid cuttings from Pennsylvania development

       8      are almost exclusively sent to landfills, both in

       9      Pennsylvania and New York.

      10             Treatment of most --

      11             So, Conclusion Number Two:  Treatment of most

      12      shale-gas wastewaters is not appropriate at POTWs

      13      utilizing biological processes, which is almost all

      14      of them in New York.

      15             That being said, these wastewaters are

      16      treatable, but only under carefully controlled

      17      circumstances, using appropriate technologies with

      18      well-trained professionals and adequate regulatory

      19      personnel.

      20             That's a lot of caveats.

      21             So, this likely means, sophisticated

      22      physical-chemical processes, perhaps like the ones

      23      in Niagara Falls, with some form of

      24      thermal-distillation technology, or its equivalent.

      25             Three:  POTW treatment capacity in New York







                                                                   211
       1      is limited, even under the most permissive policy

       2      scenarios.

       3             Given the relatively stringent regulations

       4      New York is likely to adopt, use of POTWs would

       5      not represent a viable treatment disposal option for

       6      the shale-gas industry.

       7             Private facilities purposely designed, and

       8      located within areas of significant shale-gas

       9      development, could treat wastewater without putting

      10      public facilities and taxpayers at risk.

      11             Lastly, I would like to offer a general

      12      comment in support of gathering as much data on

      13      these important issues as possible, in the event the

      14      development moves forward in New York.

      15             In the SGEIS, the DEC proposes many new

      16      measures and data-collection requirements, but it's

      17      not clear, to me at least, who will organize and

      18      analyze this data, to what extent it will be made

      19      public, and how it will feed back into policy and

      20      management decisions in the future.

      21             I would urge the State to be diligent in its

      22      approach to data collection, analysis, and

      23      presentation in the upcoming years, so that all

      24      stakeholder have access to good information, and so

      25      New York can critically evaluate its approach to







                                                                   212
       1      complex development issues.

       2             Thank you for your time.

       3             SENATOR GRISANTI:  Is it your concern, then,

       4      with regards to the public facilities, and it was

       5      testified to before, that -- that if they're not,

       6      uhm -- if they're not geared to accept this type of

       7      fluid, then it could jeopardize what they're

       8      initially set out to do in the first place, with

       9      just regular treatment of the local community's

      10      water?

      11             BRIAN RAHM:  I think that's true.

      12             A biological system can be sensitive to

      13      unexpected impacts coming in the influent.  And if

      14      they're designed to treat this kind of wastewater, a

      15      biological system is not going to handle that

      16      particularly well.

      17             SENATOR GRISANTI:  Okay.

      18             BRIAN RAHM:  You wouldn't want to kill off

      19      your biological system.  It's going to stop treating

      20      the waste it's meant to do.

      21             SENATOR GRISANTI:  Right.

      22             And that would exclude, I think there's,

      23      what, two in the area of Niagara Falls, and I think

      24      there's also one in the, uhm --

      25             BRIAN RAHM:  North Tonawanda is the other







                                                                   213
       1      one.

       2             SENATOR GRISANTI:  -- North Tonawanda is --

       3             BRIAN RAHM:  They're both in the same --

       4             SENATOR GRISANTI:  No other facilities?

       5             BRIAN RAHM:  -- Buffalo area.

       6             Not to my knowledge, no.

       7             SENATOR GRISANTI:  Okay.

       8             And what's your take on what the -- the

       9      industry talking about recycling; utilizing that

      10      water?

      11             Which is also, probably, a technique for now.

      12      And, at some point, you've got to -- it's going to

      13      be treated at -- to some capacity.

      14             But, uhm, that would also take a burden off,

      15      as far as having to treat the water as well, right,

      16      to some extent?

      17             BRIAN RAHM:  It would do, what?  I'm sorry?

      18             SENATOR GRISANTI:  Take the burden of

      19      treating all that water, to some extent, because you

      20      keep recycling the same water over and over again?

      21             BRIAN RAHM:  I mean, it -- you are the only

      22      getting, again, as we said in the last talk, like,

      23      only 10 to 20 percent of that water back.

      24             So, you do still need quite a bit of fresh

      25      water.







                                                                   214
       1             That depends on the fact that you're drilling

       2      as many wells in the future as you were in the past,

       3      so, that -- those percentages stay as they are.

       4             I think that you are seeing, and especially

       5      in northern Pennsylvania, these new industrial

       6      treatment facilities popping up.  And, some of them

       7      have quite good technology.

       8             And that is taking some of the burden off,

       9      but, you know, you can't relieve the entire burden

      10      because you're always going to need some make-up

      11      water.

      12             SENATOR GRISANTI:  I understand that -- for

      13      the water itself, you're saying that would be the

      14      way to go, is -- in your opinion?

      15             BRIAN RAHM:  Of the options that are

      16      currently available, that seems to be one of the

      17      best ones I can see.

      18             You're basically saying, that the investment

      19      in that facility is a private one.  It's -- you

      20      know, if it doesn't go well, it's also a private

      21      risk.  The industry is assuming the risk, as opposed

      22      to a public entity.

      23             I would hate to see taxpayers put in money at

      24      a public facility, even to upgrade it, and then, to

      25      not have it, either, perform as it was expected; or,







                                                                   215
       1      for 10 years from now, for the industry to move on

       2      to whatever becomes, you know, the next big play,

       3      maybe up in Canada.  And, suddenly, the idea that

       4      we're going to have drilling here for, 30, or

       5      50 years, doesn't actually pan out, because it's

       6      hard to say.

       7             SENATOR GRISANTI:  Got you.

       8             BRIAN RAHM:  There's a risk involved with

       9      that.

      10             And, it's different to ask -- you know, a

      11      private risk versus a public risk, are two different

      12      things.

      13             SENATOR GRISANTI:  Right.

      14             I got you.

      15             All right, I appreciate it, then.

      16             I'm going to pass it over to

      17      Senator Gallivan.

      18             SENATOR GALLIVAN:  All set.

      19             Thank you.

      20             BRIAN RAHM:  Sure.

      21             SENATOR GRISANTI:  Thank you.

      22             John Conrad, please.

      23             John, good afternoon.

      24             How are you?

      25             JOHN CONRAD:  Good afternoon.







                                                                   216
       1             Senators Grisanti and Gallivan, thank you for

       2      including me in today's proceedings.

       3             My name is John Conrad.  I am a

       4      hydrogeologist and environmental consultant with

       5      Conrad Geoscience Corporation, a PVE Scheffler

       6      company, with offices in Pittsburgh, the Pittsburgh

       7      area, and Poughkeepsie, New York.

       8             I have some comments to share regarding

       9      management of wastewater produced as a result of

      10      natural gas production and hydraulic fracturing.

      11             First, I'd like to make a few comments to

      12      provide a little bit of context, and to demonstrate

      13      the scale of the challenge that wastewater

      14      represents.

      15             Natural gas already underpins New York's

      16      economy and long-term energy strategy.

      17             By next year, the Marcellus Shale will be the

      18      largest natural gas play in the U.S., which means,

      19      now, more than ever, in my opinion, natural gas can

      20      help New York meet its energy, economic, and

      21      environmental challenges.

      22             New York now uses more natural gas than

      23      46 other states.

      24             Although New York is one of the world's

      25      largest consumers of natural gas, we import about







                                                                   217
       1      95 percent of the supply we need from other states

       2      and from Canada.

       3             And with the Marcellus Shale, we now have the

       4      opportunity to meet those needs by extracting the

       5      gas beneath our feet.

       6             Our reliance on natural gas is likely to

       7      continue to grow.

       8             The U.S. Energy Information Agency estimates

       9      that U.S. consumption of natural gas will increase

      10      by 60 percent over the next 30 years, and reliance

      11      on shale-gas sources, like the Marcellus Shale, will

      12      triple over the next 15 years, even assuming massive

      13      investment in renewable energy sources, like wind,

      14      solar, and geothermal, during that same period.

      15             And, natural gas is key to the U.S -- U.S.'s

      16      strategy to reduce greenhouse-gas emissions.

      17             It's a cleaner burning alternative to

      18      coal-fired electricity generation.

      19             Natural gas is a reliable backup for

      20      renewables, like wind and solar, which are available

      21      only intermittently.

      22             And because natural gas is storable and

      23      transportable, it can replace oil as a heating fuel

      24      and as a motor fuel.

      25             About produced water:  After a gas well is







                                                                   218
       1      hydraulically fractured, some of the fracturing

       2      fluid returns to the surface with the flow of gas.

       3             And as we've been talking about today, we

       4      call this "produced water," or, "brine."

       5             Produced water continues to flow to the

       6      surface during the life of the well.

       7             Because the Marcellus Shale was deposited in

       8      a marine environment, it contains larger quantities

       9      of salt, which leaches into the fracturing fluid.

      10             And, consequently, produced water contains

      11      high concentrations of dissolved solids, such as

      12      chloride, and may contain other substances, such as

      13      metals and hydrocarbons, that are also present in

      14      the shale.

      15             A single Marcellus well will use

      16      approximately 5 million gallons, perhaps more, of

      17      water for hydraulic fracturing.

      18             And of that amount, as much as 20,000 to

      19      25,000 barrels might return to the surface during

      20      the initial flowback period following hydraulic

      21      fracturing.

      22             Once it is producing gas, a Marcellus well

      23      will generate an additional 1 to 5 barrels of water

      24      each day, and might generate 5,000 to 15,000 barrels

      25      of water over the life of the well.







                                                                   219
       1             And it's this long-term production of water

       2      that represents one of the bigger challenges before

       3      us when it comes to shale-gas wastewater.

       4             Existing environmental regulations in

       5      New York prohibit surface discharge of untreated

       6      produced water; so, as more and more gas wells come

       7      online, our ability to process produced water

       8      becomes critical.

       9             There must be sufficient wastewater

      10      management capacity to handle the increasing flow of

      11      produced water.

      12             So, if New York is going to realize the full

      13      benefit of its shale-gas resources, the development

      14      of sufficient treatment capacity must keep pace with

      15      natural gas development.

      16             This Committee has correctly identified waste

      17      management as a central issue for unlocking the

      18      benefits of New York's shale-gas resources.

      19             I believe that the demand for water

      20      management associated with natural gas production

      21      could bring much need capital investment to

      22      New York, and lead to a new era of technical

      23      innovation.

      24             And we've already heard today about some of

      25      these innovations that are occurring already in







                                                                   220
       1      other parts of the Marcellus play.

       2             So the good news is, that technologies

       3      already exist for safely managing produced water.

       4             In fact, we already handle much more

       5      hazardous waste streams generated at commercial and

       6      industrial facilities across this state.

       7             Produced water from shale gas does not have

       8      the hazardous properties of, say, the concentrated

       9      solvent and metals' waste from various manufacturing

      10      and other industrial processes.

      11             The bigger challenge has more to do with the

      12      amount of wastewater that will eventually be

      13      generated.

      14             The problem that needs solving, when it comes

      15      to shale-gas development is a quantity problem, not

      16      a technological problem.

      17             Assuming that water remains the fracturing

      18      fluid of choice, which seems likely, there are

      19      numerous options for produced-water management.

      20             All are discussed in the SGEIS.

      21             I'll touch on just a couple before I take

      22      questions.

      23             Treatment and reuse, we've just finished

      24      talking about that today.

      25             This approach allows gas-well operators to







                                                                   221
       1      simply reuse water produced during the flowback

       2      period by diluting it with clean water and using it

       3      for fracturing more gas wells.

       4             Reuse may entail modest pretreatment to

       5      remove suspended solids or adjust PH, et cetera.

       6             Some operators are reporting that they are

       7      reusing as much as 80 to 100 percent of their

       8      initial flowback water.

       9             Reuse, of course, depends on there being

      10      upcoming fracture-stimulation treatments needed

      11      within a short distance of those wells.

      12             Thermal processes are also known to work for

      13      these concentrated salt waters.

      14             Thermal processes are effective at treating

      15      highly saline brine, but this technology is

      16      energy-intensive, and, therefore, can be costly.

      17             It may be possible to set up thermal

      18      treatment systems at solid-waste disposal facilities

      19      equipped with landfill-gas power plants.

      20             In these cases, heat is used to evaporate or

      21      crystallize the brine, and the residue is

      22      landfilled, or converted to concentrated chloride

      23      solutions that can be then used for road de-icing.

      24             Crystallization can be used to achieve a

      25      zero liquid discharge, where all resulting liquids







                                                                   222
       1      can be reused or safely discharged.

       2             A crystallizer plant might generate distilled

       3      water, and salable salt products, such as pelletized

       4      salt that can be used in water softeners or other

       5      applications.

       6             At landfills that are already converting

       7      landfill gas to energy, it might be possible to use

       8      the waste heat from these systems for brine

       9      evaporation, an opportunity to use an otherwise

      10      wasted resource, and increase the cost-effectiveness

      11      of landfill-gas-to-energy operations.

      12             Most produced water from the U.S. oil and gas

      13      operations is simply disposed of by returning it to

      14      deep geologic formations through injection wells.

      15             The federal EPA regulates injection wells

      16      through the Underground Injection Control program,

      17      which is part of the Safe Drinking Water Act.

      18             Injection wells associated with the oil and

      19      gas -- with oil and gas production are designated by

      20      EPA as Class II injection wells.

      21             And there are, approximately,

      22      144,000 Class II injection wells in the U.S. that

      23      inject more than, about, 2 billion gallons of brine

      24      every day, in the U.S.

      25             Ohio has approximately 180 Class II injection







                                                                   223
       1      wells, which, today, are used to dispose of much of

       2      the produced water from the Marcellus -- from

       3      Marcellus wells drilled in Pennsylvania.

       4             The advantage of deep injection, is that it

       5      eliminates risks and impacts associated with

       6      treating and disposing of waste at the surface.

       7             The siting, design, and operation of Class II

       8      wells is rigorously controlled by state and federal

       9      regulatory agencies, and the disposal zones must be

      10      demonstrated to be isolated from fresh-water

      11      aquifers.

      12             For these reasons, disposal by deep injection

      13      is considered to be highly protective of shallow

      14      underground sources of drinking water.

      15             Until now, there has been little demand for

      16      Class II injection wells in New York, but it is

      17      reasonable to assume that this technology will

      18      provide at least part of the wastewater management

      19      solution in coming years.

      20             And I'll end there, and answer any questions

      21      that the Committee might have.

      22             SENATOR GRISANTI:  Okay, John, appreciate it.

      23             Just a couple of questions, John.

      24             There was some testimony earlier, about,

      25      these deep injection wells may not be so easy to get







                                                                   224
       1      at in New York State, because of the geology and the

       2      rock formations underneath, compared to Ohio.

       3             Would you agree with that?

       4             JOHN CONRAD:  It's uncertain.

       5             My company is one that is studying the

       6      geology of New York, and Pennsylvania, for the

       7      purposes of injection; so, it remains to be seen.

       8             There are places where it looks promising,

       9      that there could be at least some injection.

      10             SENATOR GRISANTI:  Okay.

      11             And I noticed on here, too, you have, reuse

      12      is always a good thing, if you're going to reuse it.

      13             And then we talked -- I think somebody talked

      14      about that earlier, the thermal distillation, as far

      15      as it being very expensive.

      16             JOHN CONRAD:  Right.

      17             SENATOR GRISANTI:  Probably, extremely

      18      expensive.

      19             But I appreciate your testimony here today.

      20             Let me put on the record, and --

      21             I don't know if Senator Gallivan has any

      22      questions?

      23             SENATOR GALLIVAN:  No questions.

      24             Thank you.

      25             JOHN CONRAD:  Thank you.







                                                                   225
       1             SENATOR GRISANTI:  Okay, thank you.

       2             We could we have, Larry, please, Shilling.

       3             Good afternoon.

       4             How are you?

       5             LARRY SHILLING:  I'd like to thank

       6      Senator Grisanti, and the members of the

       7      Environmental Conservation Committee, for the

       8      opportunity to brief the Committee today on the

       9      issue, and for allowing us to share our expertise in

      10      managing the waste and resource challenges

      11      associated with shale drilling.

      12             My name is Larry Schilling.  I'm regional

      13      vice president for Casella Waste Systems, Inc.

      14             I am responsible for all of the company's

      15      operations in New York, Pennsylvania, and Vermont.

      16             Casella Waste Systems provides collection,

      17      recycling, energy, organics, and disposal services

      18      throughout, what would be considered rural

      19      northeastern U.S., as well as the Boston area.

      20             We serve communities throughout Pennsylvania,

      21      New York, Vermont, New Hampshire, Massachusetts, and

      22      Maine.

      23             We were founded in 1975, and are

      24      headquartered in Rutland, Vermont.

      25             We employ approximately 500 people







                                                                   226
       1      in New York State.

       2             We have been part of the New York State's

       3      resource management efforts since 1995, and have

       4      formed extensive and successful private-public

       5      partnerships with several Upstate counties,

       6      providing operating expertise and economic risk

       7      management for all-inclusive county solid-waste

       8      infrastructures; more specifically, managing

       9      disposal and recycling assets for Clinton County,

      10      Ontario County, and Chemung County.

      11             We have worked extensively as well with

      12      New York State Department of Environmental

      13      Conservation on leveraging proactive integrated

      14      waste-management approaches, such as, the first

      15      single-stream recycling processing facility in

      16      New York State, to help New York State shape a

      17      resource conservation future.

      18             As for the question of whether or not to

      19      ban -- a ban on shale drilling should be lifted in

      20      New York, we are not here today to take a position

      21      on that issue, which we recognize has many facets.

      22             Instead, we are here today to give the

      23      Committee a sense of how the waste stream associated

      24      with the shale drilling can be managed safely within

      25      New York State's regulatory approach.







                                                                   227
       1             As we all know, drilling for natural gas has

       2      occurred for decades in New York State.

       3             We have, on occasion, disposed of customers'

       4      drill cuttings for many years.

       5             When the level of activity around this waste

       6      stream began to grow at our facility in

       7      Chemung County, which, as you know, sits very near

       8      the border of Pennsylvania and the Marcellus Shale

       9      activity, we thought it prudent, and desirable, to

      10      learn as much as we could about drill cuttings

      11      and -- as a disposal material.

      12             We thoroughly investigated the environmental,

      13      health, and safety impacts of drilling disposal in

      14      furtherance of our responsibility to effectively and

      15      safely manage this material once it came through the

      16      gates of our facilities.

      17             These studies were conducted with the

      18      involvement and cooperation of resources at the DEC.

      19             The DEC has been engaged in the evaluation of

      20      many of the issues we identified, which has been

      21      extremely helpful while we proceeded with developing

      22      an approach that worked for us, our personnel, and

      23      the environment.

      24             After extensively studying -- extensive

      25      study, we were able to identify a number of







                                                                   228
       1      best-management practices for drill-cutting

       2      transportation and disposal, which we've now

       3      implemented.

       4             We keep all material more than 6 feet from

       5      the bottom of the landfill;

       6             We keep all material at least 10 feet from

       7      the landfill's final cap;

       8             We installed radiation detectors at the

       9      incoming gate of our facility;

      10             We track this waste separately;

      11             We chemically test and confirm that this

      12      waste is appropriate for disposal in a municipal

      13      solid-waste facility through an extensive, special

      14      waste-approval protocol;

      15             And, we require that all transporters of this

      16      waste be licensed, and that all loads delivered to

      17      us be manifested.

      18             The radiation detectors have verified our

      19      research and analysis that drill cuttings do not

      20      present any significant health, safety, or

      21      environmental issues.

      22             For example:  To date, the radiation

      23      detectors have only alarmed twice; and neither alarm

      24      was caused by drilling waste.

      25             In the first case, the driver of the







                                                                   229
       1      collection vehicle had recently received radiation

       2      therapy related to cancer treatment, and was found

       3      to be the source of the alarm.

       4             In the second instance, the responsible load

       5      was found to contain municipal solid waste only,

       6      and, in fact, was contaminated with

       7      medical-treatment waste likely from a patient that

       8      had been released and sent home from a hospital.

       9             No drill-cutting loads have set off an alarm

      10      at any of the detectors at any of our three

      11      landfills in New York State that have accepted these

      12      wastes.

      13             Overall, we do not view this waste stream as

      14      any more or less challenging than any other waste we

      15      accept for disposal.

      16             Many waste streams require special handling

      17      or tracking, and this waste is no different.

      18             Our study of this issue continues, since this

      19      industry has emerged at a level we expect will be

      20      steady for at least the next two decades or more.

      21             We are currently researching alternative

      22      transportation and material-handling methods to

      23      reduce traffic, both at the well sites and around

      24      our facilities.

      25             A benefit for all.







                                                                   230
       1             Through our relationships with natural gas

       2      production companies, we also learned that they were

       3      looking for proactive waste and resource management

       4      solutions for the treatment, disposal, and

       5      acquisition of water.

       6             The significance and longevity of the shale

       7      play has caused us, once again, to thoughtfully and

       8      extensively analyze and research opportunities to

       9      manage flowback and produced water.

      10             With our background and commitment to

      11      resource renewal, we have decided to pursue

      12      water-treatment services for the industry.

      13             After extensive research, we have formed a

      14      joint venture with Altela, an Albuquerque,

      15      New Mexico-based company.

      16             Altela has developed a technology that treats

      17      flowback and produced water through heating,

      18      condensing, and distilling the highly brackish drill

      19      wastewater, essentially, mimicking the

      20      billion-year-old process of producing rain.

      21             Much of the wastewater winds up as a highly

      22      purified distilled water.

      23             The remaining component is a salt water that

      24      can be combined with other material at our landfill

      25      to produce a solid that can be landfilled, or,







                                                                   231
       1      turned into other beneficial-use products.

       2             The DEC's draft Supplemental GEIS on drilling

       3      has suggested that distillation is one of the best,

       4      if not the best, treatment solutions.

       5             Altela's technology has been operating at a

       6      plant in Pennsylvania since January 2011, and is

       7      proving to be highly successful.

       8             Our plan is to locate this technology at our

       9      landfills.

      10             The benefits of doing so are significant,

      11      particularly from an environmental-impact

      12      perspective.

      13             Drilling companies can bring their wastewater

      14      directly to one facility, and leave with distilled

      15      or recycled water to return to their drill sites.

      16             This one-stop service would reduce the need

      17      for water withdrawal from our lakes and streams and

      18      transportation-related carbon emissions.

      19             Landfill staff are already trained and

      20      experienced in managing lagoons and water storage,

      21      as demonstrated by our need to deal with leachate

      22      that is produced at the landfill.

      23             Extensive groundwater monitoring systems are

      24      already permitted and monitored extensively by the

      25      company and the DEC at our landfill facilities.







                                                                   232
       1             And, the wastewater-treatment process would

       2      be powered by the energy we produce from harvesting

       3      and converting methane gas from our landfill;

       4      meaning, the process is near carbon-neutral.

       5             The bottom line:  In our view, is that

       6      wastewater from drilling can be managed safely, and

       7      with a measure of innovation that advances

       8      New York State's resource sustainability goals.

       9             In fact, in the larger picture, waste from

      10      the natural gas industry does not present any

      11      challenges that are any different than any other

      12      industry we serve.

      13             Through innovation, technology, and existing

      14      regulatory protections, New York State is more than

      15      equal to the task of managing these waste streams

      16      proactively, safely, sensibly, and without any risk

      17      to the public health.

      18             Again, thank you for the opportunity to share

      19      our experience and expertise with the Committee.

      20             SENATOR GRISANTI:  Thank you, Larry.

      21             The, uhm -- it seems, by harvesting that

      22      energy, and converting methane gas, that's where --

      23      because we were talking about this earlier, that

      24      it's very cost -- costs a lot of money to do certain

      25      procedures.







                                                                   233
       1             But, you're actually --

       2             LARRY SHILLING:  Yeah, because we have --

       3             SENATOR GRISANTI:  -- working within your own

       4      system?

       5             LARRY SHILLING:  Exactly.

       6             We have to collect the methane anyway.

       7             And, at some facilities, we produce

       8      electricity.

       9             SENATOR GRISANTI:  Right.

      10             LARRY SHILLING:  And off of those engines,

      11      the exhaust gas is 1,000 degrees, coming out of the

      12      exhaust.  So, that has a lot of capability of

      13      driving the process of distillation.

      14             Other facilities, we don't have energy plants

      15      yet, but we have flares.

      16             So, we have a gas supply that is not from

      17      fossil fuel, but from the landfill, and that can be

      18      used to drive this process as well.

      19             SENATOR GRISANTI:  Okay.

      20             Well, I appreciate your testimony.

      21             Further, I will turn it over the

      22      Senator Gallivan.

      23             SENATOR GALLIVAN:  Just a couple of questions

      24      about the cuttings that are disposed of at the

      25      Chemung landfill?







                                                                   234
       1             LARRY SHILLING:  Yes.

       2             SENATOR GALLIVAN:  And you instituted a

       3      number of different, specific procedures, in

       4      addition to what you're doing with other waste.

       5             So, while you're still complying with these

       6      procedures, do you keep the cuttings all in one

       7      location, or is it spread throughout the landfill?

       8             LARRY SHILLING:  It is mixed in with the rest

       9      of the waste.

      10             SENATOR GALLIVAN:  And the testing that is

      11      done, it's at the incoming gate.

      12             Do you regularly test throughout the landfill

      13      for radiation?

      14             LARRY SHILLING:  No, we haven't tested

      15      throughout the landfill.

      16             The, uhm -- you know, where the trucks come

      17      in, at the scales, they run through the radiation

      18      detectors for that.

      19             SENATOR GALLIVAN:  Okay.

      20             Now, you made -- in your testimony, you

      21      talked about, the steadiness, or level, if this goes

      22      forward, for at least the next two decades or more.

      23             Do you have the capacity to handle the

      24      cuttings for two decades?

      25             LARRY SHILLING:  We do.







                                                                   235
       1             I mean, the level of activity will be

       2      something that will change.

       3             We manage facilities, and we have, you know,

       4      quite a bit of capacity, from a landfill standpoint;

       5      as well as the ability to increase that capacity as

       6      time goes on.

       7             So, we would -- we would gauge our capacity

       8      with the needs of the market.

       9             SENATOR GALLIVAN:  Under the current proposed

      10      regulations, will anything change for you?

      11             Will you have -- will you have additional

      12      restrictions, or additional recordkeeping

      13      responsibilities, than you have now, or will they

      14      remain the same, or less?

      15             LARRY SHILLING:  We implemented some of those

      16      changes that are proposed in those regulations early

      17      on.

      18             So, it is worth mentioning, that, when I

      19      mentioned that -- in my testimony, that we work with

      20      the DEC, we produced several -- a couple documents;

      21      several hundred pages of information.

      22             Went out and did our own studies, and

      23      developed these best-management practices, really,

      24      long before the DSGEIS even came out.

      25             So, this is not very different.







                                                                   236
       1             What we're doing today is the same as what's

       2      in the GEIS.

       3             SENATOR GALLIVAN:  So, you're doing this

       4      today, essentially, adopting best practices; but, in

       5      the future, what you're doing will be required?

       6             LARRY SHILLING:  Correct.

       7             SENATOR GALLIVAN:  I mean, if the proposed

       8      regulations stay as-is.

       9             LARRY SHILLING:  That's correct.

      10             SENATOR GALLIVAN:  And --

      11             LARRY SHILLING:  So, the thing that will

      12      change is, today, we have our own form that we track

      13      drill cuttings with, that the driver carries with

      14      them.

      15             Tomorrow, when the DSGEIS is approved, we'll

      16      use a State form that is issued by the DEC.

      17             SENATOR GALLIVAN:  Okay.

      18             Thank you.

      19             SENATOR GRISANTI:  Thank you very much.

      20             LARRY SHILLING:  Thank you.

      21             SENATOR GRISANTI:  Do we have -- is Sandra

      22      here?

      23             DR. SANDRA STEINGRABER:  Senator Grisanti and

      24      Senator Gallivan, and distinguished members of the

      25      Committee, thank you for convening this hearing on a







                                                                   237
       1      topic that is of urgent concern to all New Yorkers.

       2             As we consider whether to permit or prohibit

       3      high-volume horizontal hydrofracking in our state,

       4      it's essential that we understand the fate of the

       5      toxic waste that is necessarily generated:  Where

       6      does it go?  Who is exposed?  What are the health

       7      effects?

       8             My name is Sandra Steingraber.  I serve as a

       9      distinguished scholar in residence at

      10      Ithaca College.  And, my Ph.D. is in biology, from

      11      the University of Michigan.

      12             My field of study is environmental health,

      13      and I'm the author of three books on the topic, the

      14      most recent of which, investigates the impact of

      15      fracking on children's health.

      16             Last month, I received a Heinz Award for my

      17      work on health in the environment.  I am devoting

      18      the $100,000 prize money to the fight against

      19      fracking in New York State, and I hope my testimony

      20      today will help explain why.

      21             Hydraulic fracturing relies on pressure,

      22      water, and high-volumes of inherently toxic

      23      chemicals to shatter the bedrock beneath our feet.

      24             Once shattered, the bedrock releases more

      25      than just bubbles of gas.  The rock itself releases







                                                                   238
       1      inherently toxic materials that have been bound

       2      together with the shale for 400 millions years, and

       3      this toxic waste from fracking takes three forms.

       4             The first are, vapors, such as benzene and

       5      toluene.

       6             Benzene is a known human carcinogen.

       7             Toluene is a potent reproductive toxicant,

       8      with the power to extinguish human pregnancies.

       9             Now, I'll return to the issue of reproductive

      10      health effects at the close of my remarks.

      11             These volatile organic gasses also combine

      12      with tailpipe exhaust to create smog, and this kind

      13      of air pollution is lethal.

      14             Exposure to smog is definitively linked to

      15      stroke, heart attack, diabetes, and premature death.

      16             In children, it is linked to premature birth,

      17      asthma, cognitive deficits, and stunted lung

      18      development.

      19             Last May, and again in October, I provided

      20      testimony before the New York Assembly on the

      21      potential health effects of air pollution created by

      22      fracking.

      23             And, today, I'll focus on the liquid

      24      wastewater.

      25             As with air contaminants, the present







                                                                   239
       1      technology does not ensure public health; nor does

       2      the draft Supplemental Generic Environmental Impact

       3      Statement provide a regulatory framework that would

       4      compel such technology.

       5             Of course, what brings us together today is

       6      the slight-of-hand legal exemptions that classifies

       7      dozens of the chemical constituents used in fracking

       8      fluid as hazardous, but spares the flowback fluid

       9      from wearing the same label, even though it contains

      10      those very chemicals, along with a bunch of others.

      11             By any definition known to toxicology,

      12      wastewater from fracking operations is hazardous.

      13             Hydrofracking fluid is -- was sprayed in a

      14      forest in West Virginia.  It defoliated and killed

      15      more than half the trees, and elevated the sodium

      16      and chloride levels of the soil by fiftyfold.

      17             When spilled on the ground, fracking waste

      18      sows baroness where nothing will grow.

      19             Those ancient Roman conquerors who salted the

      20      earths of their enemies would be impressed with

      21      this.

      22             Fracking wastewater is also radioactive.

      23             According to the DEC's own findings, flowback

      24      waste contains Radium-226 at more than 200 times the

      25      safe limit for discharge into the environment, and







                                                                   240
       1      more than 3,000 times the safe drinking-water

       2      standard; and, yet, the SGEIS does not ensure that

       3      this truly hazardous fluid is treated as truly

       4      hazardous substance, nor does it attempt to make it

       5      less hazardous.

       6             The volume of wastewater generated by

       7      fracking is immense, and it's really hard to

       8      visualize.

       9             In the Marcellus Shale, between

      10      4 and 9 million gallons of water are required to

      11      frack a single well.

      12             At least 1 million gallons return to the

      13      surface as wastewater.

      14             62,000 wells are envisioned for

      15      New York State.

      16             And if all those wells are fracked only once,

      17      which is a highly conservative assumption, the total

      18      amount of wastewater generated is

      19      62 billion gallons.

      20             Now, to visualize that amount of water,

      21      consider that 500,000 gallons of water go over both

      22      sides of Niagara Falls every second.

      23             The amount of wastewater that would be

      24      generated in New York State from fracking, if we

      25      decide to permit it, is equal to the volume of water







                                                                   241
       1      cascading over the Niagara Falls for

       2      35 straight hours.

       3             So, imagine standing in front of the

       4      Niagara Falls for 35 hours.

       5             And, now, imagine that all the cascading

       6      water that you see is radioactive and full of toxic

       7      chemicals; and, your job, is to figure out where to

       8      put it so it won't come into contact with any person

       9      or any body of water or the soil or the air,

      10      forever.

      11             And keep in mind that our neighbor

      12      Pennsylvania is already generating a

      13      "Niagara Falls" worth of wastewater of its own, and

      14      will be competing with us for storage space.

      15             The "Where to put it?" question is not

      16      adequately addressed in the draft

      17      Generic Environmental Impact Statement, which does

      18      not put forth a comprehensive plan for waste

      19      disposal; nor explicitly prohibit fracking waste

      20      from entering sewage treatment plants.

      21             Deep injection wells are one repository for

      22      fracking wastewater, and the nearest ones are in

      23      Ohio.

      24             How much fracking wastewater can be shoved in

      25      the underground rock formations of Ohio?







                                                                   242
       1             One Niagara Falls of wastewater?  Or two?

       2             I have not been able to find an answer to

       3      this question in they geological literature, and

       4      neither can I find it in the SGEIS.

       5             Certainly, citizen opposition to the

       6      importation and deep-well injection of fracking

       7      wastewater in Ohio appears to be growing, especially

       8      now that earthquakes are an officially recognized

       9      risk of fracking-fluid injection.

      10             Unlike fracking itself, the creation of

      11      injection wells to store the resulting waste is not

      12      a jobs creator.

      13             As the town councilman of Mansfield, Ohio,

      14      noted last week:  "The promise of four or five jobs

      15      isn't necessarily worth living with a chemical dump

      16      site for hundreds of years."

      17             This comment came in response to a "no" vote

      18      by the Mansfield City Council to a Texas company

      19      that proposed to drill two injection wells for

      20      Pennsylvania-based fracking waste.

      21             Meanwhile, in Youngstown, Ohio,

      22      seven protesters were recently arrested for blocking

      23      trucks at a brine injection site.

      24             As one of them explained, "We have a

      25      responsibility to take a stand.







                                                                   243
       1             "If these companies are poisoning our water

       2      and our air, they are the real criminals, and not

       3      us."

       4             Such actions raise another question.

       5             Even if the subterranean landscape of Ohio

       6      could hold all the toxic waste Pennsylvania and

       7      New York can send it, should we in New York State

       8      move forward with the energy plan that hinges on the

       9      successful transfer of large amounts of hazardous

      10      waste to a place where residents are willing to lay

      11      their bodies in front of trucks to prevent that

      12      transfer?

      13             Now, a lot has been said today about

      14      filtering and recycling and reusing wastewater.

      15             I just want to point out, that the laws of

      16      thermodynamics still apply here, "Newton's Law,"

      17      that says, "Matter cannot be created, nor

      18      destroyed."

      19             So, although, through filtering, reusing, and

      20      recycling, you may actually reduce the volume of

      21      water, the mass of all the toxic chemicals that are

      22      in the wastewater still remain; they're just more

      23      concentrated, so that, when you truck them off, and

      24      they still need to be disposed of, somewhere, you

      25      have even more poisonous substance.







                                                                   244
       1             A few weeks ago, a letter was sent to

       2      Governor Cuomo from dozens of cancer advocacy

       3      organizations in New York State, from Buffalo, to

       4      Long Island, demanding that a rigorous health impact

       5      assessment proceed, and inform the decision whether

       6      or not to open our state to fracking.

       7             I've included a copy of this document in the

       8      appendix of my testimony.

       9             So, I just point out here, that the SGEIS

      10      does not prohibit the use of cancer-causing

      11      chemicals in fracking fluid.

      12             The word "children" does not appear in the

      13      SGEIS.

      14             Lung cancer from radon exposure is not a

      15      topic taken up by the SGEIS, even though radon is

      16      the second-leading cause of lung cancer, responsible

      17      for 21,000 cases a year in the U.S.

      18             The words "breast cancer" do not appear in

      19      the SGEIS, even though the international -- the

      20      Institute of Medicine's new report on breast cancer

      21      identifies benzene and radiation exposure as

      22      two chemical exposures that are -- have the strong

      23      evidence likening them to breast cancer.

      24             A new human rights' assessment of

      25      hydrofracking was released today by the







                                                                   245
       1      Environment on Human Rights Advisory.

       2             And I've brought a copy for you.

       3             It details 26 human rights norms of concern,

       4      relevant to fracking, ranging from, security of

       5      person, to the right to -- of prior, free and

       6      informed consent.

       7             The report concludes, that:

       8             "Viewed in lights of human rights standards,

       9      these facts may raise liability concerns for the

      10      New York State Department of Environmental

      11      Conservation."

      12             So, I'd like to close now by putting a

      13      personal face on the human rights issue.

      14             In 1979, at the age of 20, I was diagnosed

      15      with bladder cancer.

      16             My diagnosing physician asked me about my

      17      possible exposures to toxic chemicals.

      18             I didn't know then that his questions would

      19      become my life's work.

      20             Years later, I returned to my hometown in

      21      Illinois, and investigated an alleged cancer cluster

      22      there, of which I was one data point.

      23             Among other things, I discovered that there

      24      were dry-cleaning fluids in the presence of the

      25      drinking-water wells.







                                                                   246
       1             The underlying geology of the area should not

       2      have allowed that to happen, but there it was.

       3             I came to appreciate how little we really

       4      know about the unmapped landscape below the ground

       5      which has intimate unseen connections to the world

       6      aboveground.  It's not just an inert lump of rock.

       7             Now, at the time of my diagnosis, I was

       8      heartened, because the newspaper headlines were full

       9      of a story -- stories about a woman named

      10      Lois Gibbs, in a place in Upstate New York called

      11      "Love Canal."

      12             And I was so impressed that had a single

      13      woman could organize a community, that not only

      14      prevented further exposure to toxic waste that had

      15      been buried years before, but she was able to

      16      actually compel changes in our federal environmental

      17      laws to assume that all Americans are protected from

      18      such exposures.

      19             Fracking, literally, turns the earth inside

      20      out.

      21             It turns precious fresh water in the earth's

      22      surface into poison, and then buries it in fractured

      23      geological strata where it is no longer part of the

      24      hydrologic cycle.

      25             In its place, it brings toxic rocks, heavy







                                                                   247
       1      metals, poisonous vapors, and radioactive

       2      substances, and mass amounts of wastewater, out of

       3      earth, which then requires permanent containment on

       4      the surface of the earth for time and memorial.

       5             Fracking could easily become Love Canal on a

       6      epic scale; and there is nothing in the current

       7      SGEIS that indicates the lessons of Love Canal have

       8      been remembered, and applied.

       9             I said I would end with a topic of

      10      reproductive health.

      11             This is an emotional topic, so I wanted to

      12      put it near the end of my remarks.

      13             A lot's been said here about the amount of

      14      dissolved solids and sediment that end up in the

      15      water.

      16             When that water is chlorinated, you end up

      17      with disinfection byproducts.

      18             I know a lot about these because they're a

      19      cause of bladder cancer, as well as colon cancer.

      20             But what I want to talking about now, is that

      21      when the -- total dissolved solids are chlorinated

      22      for drinking water, for sewage treatment, and you

      23      produce hundreds of these chlorination byproducts,

      24      many of these also have the power to interfere with

      25      prenatal life and end human pregnancies.







                                                                   248
       1             In fact, this is even admitted in the SGEIS

       2      itself, Section 6, page 46:

       3             "Disinfection byproducts have been identified

       4      in a number of medical studies as a factor linked to

       5      early term miscarriage."

       6             I hope this disturbs you as deeply as it

       7      disturbs me.

       8             The admission that fracking waste generates

       9      chemicals that can extinguish pregnancy is deeply

      10      distressing.

      11             Whether you look at this as evidence for

      12      harm, as I do, as a planned-parenthood issue, a

      13      woman should be able to plan a parenthood, and carry

      14      it out, without other people's chemicals

      15      interfering;

      16             Or, from a right-to-life perspective, as many

      17      members of my own very conservative family do, who

      18      believe very deeply in the question of fetal

      19      sanctity.

      20             The question of what the dissolved solids are

      21      doing when they're chlorinated, and how it might be

      22      affecting the prenatal life of women in New York; if

      23      it's ending pregnancies, and harming fetuses, this

      24      is a question that needs to be answered.

      25             If we frack New York, are we ending







                                                                   249
       1      pregnancies, and will babies die?

       2             I urge you to take this up.

       3             Thank you.

       4             [Applause.]

       5             SENATOR GRISANTI:  Thank you very much,

       6      Sandra.

       7             Do you have in knowledge, if, uhm -- do you

       8      have any knowledge, that -- if, in Pennsylvania or

       9      Texas, they've done any impact health statements?

      10             DR. SANDRA STEINGRABER:  There has been some

      11      work on health impacts in Texas, but none of them

      12      were done as a prerequisite for permitting fracking;

      13      so, they were after-the-fact studies.

      14             So, we know, for example, in the areas of --

      15      the gas patch in Texas, that we see the transfer of

      16      volatile organics into people's indoor air space,

      17      and we can actually measure those chemicals in their

      18      blood and urine.

      19             We know that some of the symptoms that these

      20      people are experiencing -- numbness, nausea, and so

      21      forth -- are known health effects of the particular

      22      chemicals that they're -- have been exposed to.

      23             There's some emerging data from Texas on

      24      breast cancer and fracking, showing that women who

      25      live in the most intensely fracked areas of Texas,







                                                                   250
       1      their breast-cancer-incidents' rate is actually

       2      going up.

       3             Which is in interesting, because, throughout

       4      the U.S., as well as the rest of Texas,

       5      breast-cancer incidents, happily, now is on the

       6      decline.

       7             So, these are correlative data.

       8             I would not, as a scientist, want to claim

       9      that these are definitive proof of anything, but

      10      they are certainly clues for further inquiry that we

      11      need to pay attention to.

      12             And --

      13             SENATOR GRISANTI:  Okay.  And I --

      14             DR. SANDRA STEINGRABER:  Yeah.

      15             SENATOR GRISANTI:  Okay, I appreciate your

      16      testimony today.

      17             I don't know if Senator Gallivan has any

      18      questions?

      19             SENATOR GALLIVAN:  No.

      20             Thank you.

      21             DR. SANDRA STEINGRABER:  You're welcome.

      22             SENATOR GRISANTI:  Thank you.

      23             Frank Miller, please.

      24             FRANK MILLER:  Good afternoon.

      25             SENATOR GRISANTI:  Whenever you're ready.







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       1             FRANK MILLER:  Okay.

       2             My name is Frank Miller.  I'm the president

       3      of Lake Country FracWater Specialists, and the

       4      original founder of the company.

       5             I have over 36 years of experience in water

       6      and wastewater treatment, power generation, food and

       7      chemical processing, pharmaceutical manufacturing,

       8      pulp and paper manufacturing, and consulting,

       9      engineering, design.

      10             As part of this experience, I've held the

      11      position of:

      12             Director of engineering for a Fortune 500

      13      company;

      14             General manager, and production manager, of

      15      several chemical manufacturing plants;

      16             And, technical director in the paper

      17      industry;

      18             As well as, engineering manager of an

      19      engineering firm, specializing in industrial

      20      processes, design, and development.

      21             Previous to Lake Country, I was founder, and

      22      president, of Innovative Environmental Products,

      23      Incorporated, of Rochester, New York.

      24             The mission of IEP, and now Lake Country, has

      25      been to develop an environmentally sound green







                                                                   252
       1      technologies that maximize reuse and recycling of

       2      waters, minimize waste, make hazardous waste

       3      non-hazardous, and, ultimately, can create

       4      marketable product from waste.

       5             I hold two patents that include, the recovery

       6      of industrial and agriculture wastes for water

       7      reuse, and, mitigation of environmental impacts by

       8      the resultant solid waste.

       9             Additionally, I currently have multiple

      10      patents pending related to unique wastewater

      11      treatment and precipitate-separation technologies

      12      designed for treating Marcellus fluids and waste.

      13             Lake Country FracWater Specialists is a small

      14      start-up company, with operations in Livonia,

      15      New York, and, Tioga, Pennsylvania.

      16             This business start-up is a direct result of

      17      Marcellus development.

      18             Treating hydraulic fracturing wastes in

      19      wastewaters is a new business venture, with

      20      considerable opportunity for many other

      21      entrepreneurs.

      22             You will hear today that there is no way to

      23      dispose of Marcellus waste in New York today, but

      24      the oil and gas industry is no different from other

      25      industries.







                                                                   253
       1             All processes create waste, and it has been a

       2      trademark American business to learn to handle all

       3      waste in an environmentally safe manner while

       4      pursuing opportunities to create beneficial

       5      businesses from waste streams.

       6             At Lake Country, we have successfully

       7      developed -- <coughs> -- excuse me -- we have

       8      been --

       9             Sorry.  Just need to get a drink of water.

      10                  [Pause in the proceeding.]

      11                  [The proceeding resumed, as follows:]

      12             FRANK MILLER:  At Lake Country, we have been

      13      successful in developing technologies to perform our

      14      stated mission, in primarily mobile systems, which

      15      may also be readily adapted to semi-permanent or

      16      permanent systems.

      17             Our mobile systems allow for cost-effective

      18      treatment of waste at a well site, resulting in

      19      recycling and reuse of the water, as well as

      20      mitigating truck traffic.

      21             In addition, because our systems are mobile,

      22      they do not require the high capital costs and

      23      long-term land-used impacts associated with

      24      brick-and-mortar treatment plants.

      25             We have developed and commercialized a series







                                                                   254
       1      of technologies, most of which are patent-pending,

       2      specifically focused on oil-and-gas-development

       3      industries.

       4             These include the following:

       5             Removal of barium and strontium from

       6      hydraulic fracturing flowback water, produce a

       7      product -- to produce a product, which is barium

       8      sulfate, a weighting agent in drilling muds, and

       9      clear brine for recycling of the water in subsequent

      10      fracks.

      11             Another system is:

      12             Treatment of oil-based drilling wastes,

      13      recycling and reuse of waste from bentonite, and

      14      cutting wastewaters from pipeline-boring

      15      applications;

      16             Treatment of drilling fluids from top-hole

      17      operations, and saline concentration reduction of

      18      high TDS -- "total dissolved solid" -- drilling

      19      wastewaters, to accommodate safe storage, and

      20      disposal and economic reuse.

      21             In each of these technologies, our goal is to

      22      take problematic waste products, or potentially

      23      hazardous materials, and render them non-hazardous

      24      through chemical reactions or other means.

      25             In some cases, the materials are suitable for







                                                                   255
       1      reuse, or for an alternate beneficial use, in their

       2      new form.

       3             Additionally, these technologies may also

       4      provide an opportunity for both public and private

       5      water treatment plants, to integrate them into their

       6      headworks, in order pretreat certain

       7      oil-and-gas-field wastes, such as heavy metals,

       8      before treating the wastewaters for eventual

       9      discharge.

      10             Lake Country also has an additional exciting

      11      technology that will be integrated into our water

      12      treatment systems, or as a standalone process for

      13      management of drilling waste cuttings.

      14             This product has EPA approvals as absorbent

      15      material, and has ability to lock in hazardous

      16      wastes, such that the waste can be treated as

      17      non-hazardous, and be place in a landfill instead of

      18      a hazardous-waste treatment plant or disposal site.

      19             As a point of information:  The primary

      20      reason why there are no systems in place in New York

      21      for management of Marcellus development waste

      22      streams is because companies are not willing to

      23      invest here until there are certain -- until they

      24      are certain that New York is indeed moving forward

      25      with permitting the development of this resources --







                                                                   256
       1      this resource, and the regulatory framework for that

       2      development is finalized and clear.

       3             The current situation does not mean that we

       4      do not have the technology and the expertise to

       5      treat any and all waste from Marcellus development.

       6             In fact, our mobile platform for our

       7      treatment systems are adaptable, and will allow for

       8      rapid deployment into the play once Marcellus

       9      commences development in New York.

      10             With regard to the need for new legislation,

      11      I submit, and it's the opinion of our board of

      12      directors, that there is no identified need.

      13             New York already has substantial authority to

      14      monitor the transport of waste, monitor the

      15      disposition of waste, and has a robust system in

      16      place for discharge limitations for both surface and

      17      groundwater discharges.

      18             From my exposure to regulations in place, and

      19      pending, across several energy-intensive state

      20      and -- states, and in two foreign countries,

      21      New York already has some of the strictest

      22      environmental regulations on development of oil and

      23      gas resources.

      24             It is my opinion, that we need to be very

      25      careful about opposing new legislation that may







                                                                   257
       1      create unintended consequences, and blunt

       2      technological innovations and advancements with

       3      regard to water reuse and treatment.

       4             As an example:  The hazardous-waste bill,

       5      which was proposed last year, would have treated all

       6      oil-and-gas-field wastes as hazardous.

       7             This action would have deemed non-hazardous

       8      waste -- some non-hazardous wastes as hazardous;

       9      meaning, that recycling and reuse of the hydraulic

      10      fracturing flowback water would not have been

      11      possible, based upon a regulatory definition.

      12             In addition, it would have resulted in taking

      13      valuable space in a hazardous-waste facility for

      14      materials that are not hazardous.

      15             That space could be put to a better use for

      16      important hazardous waste.

      17             Finally, because the waste would not have

      18      been able to be recycled and reused, the waste would

      19      need to be transported to "hazardous" facilities,

      20      resulting, exponentially, in more truck traffic.

      21             From my perspective of this industry, there

      22      are technological advances happening as we speak.

      23             The industry has made great strides in

      24      drilling, and extending laterals and horizontal

      25      wells.







                                                                   258
       1             In my opinion, the evolution of technologies

       2      to treat and reuse water and waste from the

       3      Marcellus is equally as impressive.

       4             We need to be cautious to not prevent, and to

       5      be proactive, in allowing the advances in technology

       6      to continue without legislative and regulatory

       7      constraints that will hamper environmental progress.

       8             We hope that New York will move forward

       9      expeditiously to improve Marcellus development for

      10      the benefit of its citizens.

      11             Having adequate technologies and systems to

      12      treat Marcellus fluids and waste is not an

      13      impediment for approval.

      14             I appreciate your time, and will welcome

      15      questions.

      16             SENATOR GRISANTI:  Well, thank you,

      17      Mr. Miller.

      18             Can you just briefly explain, in a little

      19      more detail:  You talk about removing barium and

      20      other raw chemicals from hydraulic fracturing

      21      flowback water?

      22             How are you doing that?

      23             FRANK MILLER:  We have a sequential

      24      precipitation process, whereby, we inject certain

      25      chemicals that react with the barium, and turn into







                                                                   259
       1      a barium sulfate, which is a drilling mud.

       2             Of the deep-water horizon, the material that

       3      was used to kill that well was barium sulfate.

       4             We actually manufactured that as part of

       5      process, out of frack water.  Flowback water.

       6             SENATOR GRISANTI:  Okay, are you able to --

       7      so, some of the waters that you have, do you know

       8      what all the -- all the chemicals that are in the

       9      water?

      10             FRANK MILLER:  Yes.

      11             We have done research on water from multiple

      12      locations across Columbia, Mexico, West Virginia,

      13      North Dakota, Pennsylvania, New York, and Texas.

      14             And, there's a lot of consistency in the

      15      types of water, and there's variations.

      16             But, we understand the variations, and the

      17      consistencies, and we have multiple stages.

      18             Our water-treatment processes are modular.

      19             For example:  The systems that we're going to

      20      be sending to Columbia have seven different,

      21      individual chemical-treatment modules in them, that

      22      include, precipitation; oxidation through ozone;

      23      hydrogen peroxide, followed by reverse osmosis.

      24             So, there's multiple, different -- depending

      25      on the particular waters that we're going to be







                                                                   260
       1      treating, we have multiple, different modules that

       2      we would provide.

       3             SENATOR GRISANTI:  These mobile units, how,

       4      uhm -- how -- what's quantity of water they can

       5      treat?

       6             FRANK MILLER:  They're typically in modules

       7      of 2,500 barrels, which is 100,000 barrels a day.

       8             And in the cases where they need larger

       9      quantities, we just have additional modules that we

      10      provide.

      11             They're all about the size of a horse

      12      trailer.

      13             SENATOR GRISANTI:  All right.

      14             I appreciate that.

      15             I don't know if Senator Gallivan has any

      16      questions?

      17             SENATOR GALLIVAN:  No questions.

      18             SENATOR GRISANTI:  No questions?

      19             Okay.

      20             Thank you very much.

      21             Is Sarah here?

      22             Hi, Sarah.

      23             SARAH ECKEL:  Hi.

      24             SENATOR GRISANTI:  Hi, Sarah.

      25             How are you?







                                                                   261
       1             SARAH ECKEL:  I'm doing well.

       2             My name is Sarah Eckel.  I'm the legislative

       3      and policy director for Citizens Campaign for the

       4      Environment.

       5             CCE is an 80,000-member, non-profit,

       6      non-partisan, advocacy organization.  We work

       7      throughout New York to protect health and the

       8      natural environment.

       9             We want to thank both of you for sitting

      10      through this long day, and holding this important

      11      hearing on waste and fracking.

      12             Too often, unfortunately, waste, in all

      13      forms, related to drilling, or not, is -- and

      14      especially if it's associated infrastructure, is

      15      "out of sight, and out of mind."

      16             However, we know drilling wastes can be

      17      toxic, caustic, and hazardous.

      18             And, in New York, liquid and solid waste, as

      19      discussed today, coming off that drill pad is

      20      classified as, industrial waste, not hazardous

      21      waste.

      22             We know that the transportation, storage, and

      23      treatment of the waste can pose significant risks to

      24      the public health and the environment.

      25             And, unfortunately, New York's plan to deal







                                                                   262
       1      this waste is not clear.

       2             I'd like to say, that, you know, a lot has

       3      been talked about recycling, and the benefits for

       4      that today.

       5             And just to remind you, that, with all those

       6      benefits from recycling, we're still not mandating

       7      that recycling.  So, we still have to figure out

       8      what to do with the waste coming off that pad,

       9      unless it's mandated.

      10             I talked briefly about drill cuttings in my

      11      testimony, but I think that's been covered

      12      extensively today, so, I'm just going to skip down

      13      to production brine.

      14             The concentrated fluid that comes off of the

      15      gas-well pad, called "production brine," due to

      16      Marcellus Shale's marine origins, we know that it's

      17      really high in total dissolved solids.

      18             Every day, 300 to 6,300 gallons of brine can

      19      be generated.

      20             And, we need a -- we need secure on-site

      21      storage and disposal for all of that production

      22      brine.

      23             A lot has been talked about Marcellus's

      24      marine origins, and the total dissolved solids

      25      associated with that.







                                                                   263
       1             I would just also like to remind you, that,

       2      this document doesn't just deal with

       3      Marcellus Shale.  It also deals with Utica Shale,

       4      and other shale formations.

       5             So, one of the gaps that we're looking at in

       6      this document, is the fact that we don't really know

       7      what constituents are associated with those shale

       8      formations.

       9             We really just talk a lot about Marcellus.

      10             The flowback fluid that comes off of the well

      11      is contaminated with chemicals used for fracking,

      12      and any contaminants from the shale itself.

      13             The combination of chemicals used depends on

      14      the specific geology.  And, of course, company

      15      preference, as was discussed at length; that they

      16      have proprietary information in chemical formulas.

      17             Proper treatment and disposal of the liquid

      18      waste poses a great risk.

      19             And as we've said, current water-treatment

      20      infrastructure cannot meet the existing demand in

      21      increasing treatment capacity for radioactive and

      22      corrosive hydrofracking waste.

      23             Over the next 20 years, New York State needs

      24      $36.2 billion to address its aging and failing

      25      wastewater infrastructure needs.







                                                                   264
       1             And this does not account for fracking.

       2             So, when we're looking at the gaps, and what

       3      we need to address, that's a huge number that we

       4      still already have to take account for.

       5             The composition of flowback water changes

       6      over time.

       7             And this is from the DEC's document:

       8             The concentrations of dissolved solids,

       9      chloride and barium, can increase;

      10             Levels of radioactive -- radioactivity can

      11      increase;

      12             Calcium and magnesium increase;

      13             Iron concentrations increase;

      14             Sulfate levels decrease;

      15             Alkalinity decreases;

      16             And, concentrations of metals can increase.

      17             The DEC attributes these changes to shell

      18      formations, frack fluids, and operations control,

      19      but what it clearly demonstrates, is that we need a

      20      waste-disposal plan that accounts for the fact that

      21      this fluid composition is going to change over time.

      22             As discussed before, radioactivity in

      23      Marcellus Shale is a product of normally occurring

      24      radioactive materials.

      25             The DSGEIS includes well sampling from







                                                                   265
       1      13 conventional wells already drilled in

       2      New York State, that are Marcellus wells.

       3             The production brine coming off of these

       4      wells all exceed --

       5             Well, that's not true.

       6             -- 80 percent of them exceed EPA

       7      safe-drinking standards of 5 picocuries per liter.

       8             So, we're already exceeding those standards

       9      now.  We need to figure out what to do with this

      10      waste.

      11             The DSGEIS fails to identify the facilities

      12      that are going to treat and dispose of that liquid

      13      radioactive waste.

      14             And, in addition to the high levels of

      15      radiation coming from production brine, flowback

      16      fluid is positive for Radium-226 as well, with

      17      levels that range between 2.58 and 33 picocuries per

      18      liter.

      19             Radon is -- occurs naturally as a decay

      20      product of Radium-226.

      21             We've all heard about radon, and the build up

      22      that is -- causes a lot of problems in homes.

      23             Radon exposure is the second-leading cause of

      24      lung cancer, as mentioned by Dr. Steingraber.

      25             And, from the National Academy of Sciences,







                                                                   266
       1      15,000 to 22,000 Americans die every year from

       2      radon-related lung cancer.

       3             Radon in drinking water causes an additional

       4      180 cancer deaths annually.

       5             Almost 90 percent of those projected deaths

       6      were from lung cancer, from the inhalation of radon

       7      released to the indoor air from water.

       8             About 10 percent were from cancers of

       9      internal organs; mostly stomach cancers from

      10      ingestion of radon in water.

      11             Long-term exposure to radium can increase the

      12      risks of developing several diseases, including,

      13      lymphoma, bone cancer and diseases that affect the

      14      formation of blood, such as leukemia and aplastic

      15      anemia.

      16             External exposure to radium's gamma radiation

      17      increases the risks of cancer to all tissues and

      18      organs at varying degrees, and the greatest health

      19      risk from radium is exposure to its radioactive

      20      decay product: radon.

      21             As we all know, throughout New York, our

      22      local municipalities are taking a strong stand on

      23      dealing with hydrofracking.

      24             And it's pretty easy to understand why.

      25             Because the demands on our local







                                                                   267
       1      infrastructure are growing, we're already facing

       2      huge infrastructure needs, as I discussed before.

       3             And to be able to deal with these upgrades,

       4      that's going to fall on the shoulders of our local

       5      municipalities.

       6             Pennsylvania's Department of Environmental

       7      Protection stated, that:

       8             "Oil and gas wells disgorge about 9 million

       9      gallons of wastewater a day in Pennsylvania.

      10             "According to industry estimates used by the

      11      DEP --

      12             Oh, sorry.  This is from a few years ago,

      13      but...

      14             -- "by 2011, that figure is expected to rise

      15      at least 19 million gallons, enough to fill almost

      16      29 Olympic-size swimming pools every day.

      17             "That's more than all the state's waterways,

      18      combined, can safely absorb.

      19             "I didn't know that.  Even our water-program

      20      people hadn't any idea about the volumes that would

      21      be used," said Dana Aunkst, who headed -- the head

      22      of DEP.

      23             We clearly need to know where this waste is

      24      going, if they were dealing with such --

      25      Pennsylvania is blessed with the number of







                                                                   268
       1      fresh-water resources, as we are, and they are

       2      having a problem dealing with this as well.

       3             So, just a couple of recommendations that I

       4      know have been mentioned already today:

       5             CCE also supports Senate Bill 4616, which

       6      would classify waste that comes off of a drilling

       7      pad as hazardous.

       8             And I just want to clarify one point:  If it

       9      meets the State definition of "hazardous."

      10             It's not just going to just, across the

      11      board, classify waste as hazardous if it doesn't

      12      meet that definition.

      13             Another positive point, is that, is that we

      14      deal with, retroactively, waste that's already being

      15      generated.  So, it wouldn't just deal with

      16      high-volume hydraulic fracturing.

      17             CCE believes that DEC's proposed waste

      18      manifest program that's been discussed today, should

      19      require that the waste manifests are regularly

      20      reported back to DEC.

      21             As discussed, those are in the hands of the

      22      truckers; and, sometimes they reported back, and

      23      sometimes they're not.

      24             In order to make this process transparent and

      25      publicly accessible, we need those waste manifests







                                                                   269
       1      to regularly go back to DEC, regardless.

       2             CCE encourages the Legislature to prohibit

       3      the treatment of wastewater at municipal treatment

       4      facilities.

       5             I know that you've discussed this at length

       6      today.

       7             And we also believe that New York State

       8      should prohibit the use of toxic and carcinogenic

       9      chemicals.

      10             We all know that those chemicals are out

      11      there, and we have the power to stop them from

      12      coming into our state to be used.

      13             We should do that.

      14             And, thank you, again, for the opportunity to

      15      speak today.

      16             I'll take any questions that you have.

      17             SENATOR GRISANTI:  Thanks, Sarah, appreciate

      18      it.

      19             I don't have any questions for you.

      20             I'm familiar with Citizens Campaign, and the

      21      topics.

      22             And, I appreciate your testimony here today,

      23      and submitting your testimony, and focusing on those

      24      areas that, uhm -- which is the reason why we had

      25      the hearing, and -- to begin with.







                                                                   270
       1             So, I appreciate you being here today.

       2             SARAH ECKEL:  Absolutely.

       3             SENATOR GALLIVAN:  Thank you.

       4             SARAH ECKEL:  Thank you.

       5             SENATOR GRISANTI:  Is Walter here?

       6             [Inaudible] quite a lot here.

       7             Just ask you to paraphrase as much as you

       8      possibly can.

       9             I appreciate it.

      10             WALTER HANG:  Thank you for the opportunity

      11      to comment on the environment, the one public health

      12      concerns of natural gas drilling, wastewater, and

      13      hydrofracturing wastewater problems in New York.

      14             I commend your efforts because I believe this

      15      issue warrants New York's utmost concern.

      16             For decades, New York has failed to identify,

      17      investigate, and clean up gas-drilling wastewater

      18      hazards reported at hundreds of sites.

      19             Toxics Targeting has compiled detailed data

      20      from the New York State Department of Environmental

      21      Conservation's "hazardous-substances' spills"

      22      database, regarding gas-drilling wastewater releases

      23      that have, reportedly, impacted homes, waterways,

      24      drinking-water wells, and natural resources.

      25             New York's existing gas-drilling wastewater







                                                                   271
       1      problems could be vastly exacerbated if

       2      Marcellus Shale horizontal hydrofracking is

       3      permitted to proceed without adequate safeguards.

       4             I urge you to require that the problems I

       5      will document today be fully resolved before

       6      New York's de facto horizontal-hydrofracking

       7      moratorium is lifted by the adoption of a final

       8      Supplemental Generic Environmental Impact Statement.

       9             I would note that approximately

      10      7,000 gas-production wells in New York generate

      11      flowback and produce wastewater.

      12             A comparable number of oil-production wells

      13      in the state also generate produced water.

      14             There is currently no regulatory system to

      15      track those wastewaters from, quote, "cradle to

      16      grave," close quote.

      17             As a result, the volume and fate of those

      18      wastewaters is unknown to environmental authorities.

      19             You've heard a great deal about the

      20      constituents in the wastewater.

      21             I would note, that, the total dissolved

      22      solids that have been reported in gas-drilling

      23      wastewater generated in Pennsylvania is up to

      24      413,000 parts per million.

      25             The key thing about TDS is it's soluble in







                                                                   272
       1      water.

       2             In contrast, the petroleum hydrocarbons,

       3      notably in the diesel range, have been reported up

       4      to 72,600 parts per billion in gas-drilling

       5      wastewater generated in West Virginia.

       6             This is insoluble in water.  And as we've

       7      heard so much, contains benzene, reportedly, up to

       8      660 parts per billion.

       9             Many of these constituents resist

      10      biodegradation and toxic at extremely low levels of

      11      exposure.

      12             For example:  The maximum contaminant level

      13      for benzene in New York State drinking water is only

      14      5 parts per billion.

      15             That's 5 seconds in 32 years.

      16             You've heard a lot about the natural

      17      occurring radioactive materials.

      18             I would note, that Radium-226 has a half-life

      19      of 1,600 years.

      20             These are very toxic, very persistent

      21      compounds.

      22             I would note, that while a great deal of

      23      attention has been focused on flowback concerns,

      24      contaminant concentrations in produced water are

      25      often higher for all three contaminant categories.







                                                                   273
       1             In short, both flowback and produced

       2      wastewaters are highly complex mixtures of hundreds,

       3      if not thousands, of inorganic, as well as organic,

       4      compounds.

       5             To date, those wastewaters have yet to be

       6      fully characterized by analytical studies.

       7             I want to focus on three categories of

       8      gas-drilling wastewater problems that we've had in

       9      New York.

      10             Massive gas-drilling wastewater releases are

      11      documented to have been caused by hundreds, and

      12      perhaps thousands, of spills, accidents, and other

      13      uncontrolled discharges in New York.

      14             Gas-drilling wastewater spills, up to

      15      100,000 gallons, have been reported to DEC in a

      16      single incident.

      17             Many spills are never cleaned up in strict

      18      compliance with remediation requirements.

      19             Shockingly, there is no specific regulatory

      20      requirement even to report gas-drilling wastewater

      21      releases in New York.

      22             As a result, a full scope of this problem is

      23      unknown.

      24             In contrast, petroleum releases are required

      25      to be reported to DEC's hotline within two hours; or







                                                                   274
       1      fines up to $25,000 can be levied per day of

       2      noncompliance.

       3             I've given you a series of actual DEC data

       4      for national fuel gas, wells, et cetera, that have

       5      been reported.

       6             You can see:  Brine-tank overflow due to

       7      apparent equipment failure.  Materials flowing over

       8      land into local creek.  Doesn't meet standards.

       9             And, the problem occurred in 1997.

      10             So, you can look at all of those data.  I've

      11      posted them on the Internet.

      12             Perhaps the most shocking thing that I've

      13      discovered in the last two years, is that, DEC has

      14      long-approved land spreading of gas-drilling

      15      wastewater for dust control, winter de-icing, and

      16      road-bed stabilization.

      17             DEC's Beneficial-Use Determination program

      18      has approved natural gas wastewater to be spread,

      19      untreated, on roadways at farms, residential and

      20      business properties, a summer camp for children, a

      21      water treatment plant, the Chautauqua County

      22      Fairgrounds, state lands, as well as, areas

      23      adjoining critical water-supply sources, including,

      24      a major reservoir, and sole source, and primary

      25      aquifers.







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       1             And these include: Chemung, Thompkins,

       2      Broome, Tioga, Chenango, Steuben, Cayuga, Cortland,

       3      Madison, Genesee, Chautauqua, Cattaraugus,

       4      Allegheny, and other counties.

       5             In Chautauqua County alone, in 2010 to 2011,

       6      1,322,450 gallons of gas-well production brine were

       7      spread.

       8             You can review those documents.

       9             Contrary to DEC's assertion that the

      10      BUD program requires the gas-drilling wastewater to

      11      be spread safely, DEC's own data refute this

      12      assertion.

      13             You can read examples that I posted.

      14             The Tuscarora brine application, June 21,

      15      2010, quote:

      16             "Caller states, town is using brine from gas

      17      wells to control dust on dirt roads, and are

      18      applying it way too heavy, causing runoff to ditches

      19      and streams.

      20             "Also concerned about his well, and what

      21      might be in the brine."

      22             Close quote.

      23             And this spill still does not meet applicable

      24      standards.

      25             In short, gas-drilling wastewater should have







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       1      been banned from land-spreading decades ago, when

       2      spraying waste all on dusty roads was outlawed,

       3      along with burying garbage in open pits.

       4             It is inconceivable the DEC still authorizes

       5      spreading of this toxic radioactive material on

       6      roadways and watersheds all over central,

       7      southwestern, and the Leatherstocking's Region of

       8      New York.

       9             And I've presented a map for your review.

      10             You've heard a lot today about the

      11      contribution of gas-drilling wastewater to publicly

      12      owned treatment works.

      13             I want to note, that, tens of millions of

      14      gallons have been discharged in New York in recent

      15      years.

      16             These POTWs are neither designed,

      17      constructed, nor maintained, to be able to break

      18      down and remove gas-drilling wastewater pollutants.

      19             This is an extremely important public-policy

      20      matter that must be fully resolved prior to

      21      permitting horizontal hydrofracking in New York's

      22      tight shale.

      23             The gas-drilling wastewater is fundamentally

      24      incompatible with this, quote, "secondary," close

      25      quote, biological treatment systems employed at,







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       1      virtually, all municipal treatment systems in

       2      New York to break down human sewage.

       3             These, quote, "activated sludge," close

       4      quote, and, quote, "trickling filter," close quote,

       5      or biotower systems promote the growth of bacteria

       6      that degrade human-wastewater components.

       7             Many of the constituents of gas-drilling

       8      wastewater resist biological degradation, and,

       9      quote, "pass through," close quote, into receiving

      10      bodies of water, concentrate in residual biosolids,

      11      or sludge, and compose hazards to treatment plant

      12      workers.

      13             It is entirely appropriate that you're

      14      hearing is being held today in Canandaigua, because

      15      the Canandaigua wastewater treatment plant,

      16      reportedly, received 177,000 gallons of gas-drilling

      17      wastewater generated in Pennsylvania by

      18      EOG Resources, Inc., without knowing the source of

      19      the wastewater.

      20             The facility, reportedly, stopped accepting

      21      all gas-drilling wastewater in September 2009.

      22             Prior to that time, it had, reportedly,

      23      accepted gas-drilling wastewater for up to

      24      nine years.

      25             Canandaigua exemplifies how toxic







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       1      gas-drilling wastewater has been discharged to

       2      POTWs in New York's Finger Lakes Region without

       3      approved pretreatment, and in contravention of

       4      pretreatment in other regulatory requirements.

       5             This illustrates the fundamental inadequacy

       6      of New York's enforcement efforts regarding this

       7      concern.

       8             I wanted to note, that EPA has undertaken

       9      extensive investigation of gas-drilling wastewater

      10      going to POTWs that are not equipped to regulate

      11      it, to manage that material.

      12             These efforts occurred after more than

      13      850,000 local residents near Pittsburgh could not

      14      drink water drawn from the Monongahela River in the

      15      autumn of 2008, after gas-drilling waste discharges

      16      caused unacceptably high TDS levels in the river's

      17      ambient water.

      18             Local POTWs were, reportedly, accepting

      19      gas-drilling wastewater up to 40 percent of their

      20      influent.

      21             And I've, again, posted extremely detailed

      22      technical comments that have been provided by EPA to

      23      DEC.

      24             Basically, we're in a de facto moratorium in

      25      New York with regard to horizontal hydrofracking in







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       1      tight shale.

       2             And I believe that it is absolutely

       3      imperative that the concerns I have summarized today

       4      are fully resolved prior to the permitting of

       5      horizontal hydrofracking in New York's tight shales.

       6             As you know, there is an executive order;

       7      it's very onerous.

       8             And I do not believe that DEC has fulfilled

       9      the requirements to, basically, protect New York

      10      from horizontal hydrofracking.

      11             I would suggest that you review a coalition

      12      letter that has nearly 11,000 signatories, calling

      13      for the revised draft to be withdrawn.

      14             Among the concerns that are referenced in

      15      that letter:

      16             We've asked Governor Cuomo to ban

      17      gas-drilling wastewaters from being discharged into

      18      publicly owned treatment works designed for sanitary

      19      waste, and, we've requested that strict pretreatment

      20      standards be adopted.

      21             This is very important.  We've heard a lot

      22      about recycling.

      23             Gas-drilling wastewaters, including flowback,

      24      as well as produced water, or, brine, are currently

      25      exempted from extremely stringent GA effluent







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       1      limitations, designed to safeguard drinking water

       2      drawn from the ground in New York.

       3             So, the GA effluent limitations were adopted

       4      decades ago, because so many people, particularly on

       5      Long Island, have only one source of water -- that's

       6      from the ground -- and hundreds of wells were

       7      impacted.

       8             So, currently, the gas-drilling wastewater

       9      can be reinjected into the ground, as fracking

      10      fluid, or as cutting fluid, only because there is an

      11      exemption from those very strict GA effluent

      12      limitations.

      13             The revised draft SGEIS fails to eliminate

      14      this exemption, even though gas-drilling wastewater

      15      is documented to contain pollutant concentrations

      16      that would vastly exceed applicable GA effluent

      17      standards.

      18             For example:  Benzene reported in

      19      gas-drilling wastewater, up to 660 parts per

      20      billion, is only allowed at 1 part per billion in

      21      permitted groundwater discharges.

      22             Finally:  I suggest that the land spreading

      23      of the toxic drilling wastewater also be banned.

      24             And I would note, that the horizontal

      25      hydrofracking issue, as you've heard, is really







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       1      deep-well injection, because, up to 95 percent of

       2      the fracking fluid, reportedly, remains in the

       3      ground.

       4             In New York, deep-well-injection permitting

       5      requires individual environmental impact statement

       6      review, not the generic EIS review that DEC is

       7      currently undertaking.

       8             In short:  The entire premise of the SGEIS

       9      permit-guideline proceeding is specious.

      10             This is another reason why DEC's efforts are

      11      inadequate, and warrant starting the process all

      12      over again.

      13             And I would note, that these exemptions

      14      should be lifted by regulatory fiat.  They don't

      15      need new laws to be passed.

      16             And I've given you data that I compiled for

      17      the Niagara Falls wastewater treatment plant.

      18             I personally sampled this effluent in 1981,

      19      as part of a landmark study of the Niagara River.

      20             So, while that facility does have granular

      21      activated-carbon treatment, that's, again, only for

      22      the insoluble compounds.

      23             And you can see, many of the compounds pass

      24      right through, including, benzene, phenol.

      25             So, there's no panacea, and that carbon would







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       1      not take out the total dissolved solids, including

       2      the various toxic metals that you've heard about so

       3      much today.

       4             Thank you very much.

       5             I appreciate the time.

       6             And, if you have any questions, I'll try to

       7      answer them.

       8             SENATOR GRISANTI:  Just briefly --

       9             [Applause.]

      10             SENATOR GRISANTI:  -- what you have listed

      11      here in Niagara Falls, from the -- can you explain

      12      that a little bit, the 1981 figures that you have

      13      here?

      14             WALTER HANG:  Yes.

      15             So, basically, as you know, that is an area

      16      that is very unusual, because it has many industries

      17      that were originally alike.

      18             Many fewer today, unfortunately, then

      19      earlier.

      20             So you can tell that many of these compounds

      21      are volatile organic compounds; notably, benzene.

      22      These are very common industrial solvents and

      23      intermediates.

      24             They're also turning up in wastewater that's

      25      discharged on-line to the treatment plant.







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       1             Unfortunately, the activated carbon doesn't

       2      take out anything.

       3             The most important thing to realize, when it

       4      comes to toxic organic compounds, that means,

       5      they're principally made out of carbon and hydrogen.

       6             They're very toxic at extraordinarily low

       7      levels of exposure.

       8             So the standards are frequently, 5 parts per

       9      billion, 10 parts per billion, 50 parts per billion.

      10             Those are minuscule levels, and they're just

      11      passing through, into the receiving body of river.

      12             And the Lower Niagara is an impaired water

      13      body.  It's on the National 303(d) Registry of

      14      Impaired Water Bodies.

      15             So, this system is not taking out these toxic

      16      organic chemicals and heavy metals.

      17             And if the gas-drilling wastewater would

      18      discharge into this plant, it would similarly pass

      19      through, concentrate in the solids, and potentially

      20      pose a hazard to the workers.

      21             SENATOR GRISANTI:  Got you.

      22             I appreciate that.  Thank you.

      23             I don't have any other further questions.

      24             I don't know if --

      25             SENATOR GALLIVAN:  Nothing else.







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       1             WALTER HANG:  Thank you so much.

       2             SENATOR GRISANTI:  Thank you very much.

       3             Well, that's going to conclude our Senate

       4      hearing that we had here, scheduled for today.

       5             I want to, again, thank those that spoke and

       6      gave testimony, and submitted testimony.

       7             I want to thank those that came to listened.

       8             Once, again, there's a lot of information

       9      that -- on the specific issue, with regards to the

      10      water, and the disposal of the water, and what some

      11      are claiming could be treatment; whether it's

      12      hazardous waste, whether it's not hazardous waste.

      13             But, these are all important factors that

      14      myself and Senator Gallivan -- that were not covered

      15      to the extent as they were in these broad-based

      16      hearings that were done throughout the state.

      17             So, we wanted to be very specific, because

      18      that's what I kept hearing, is the issue of the

      19      water.

      20             "What are you going to do with the water?"

      21             "There's a lot of water.  There's a lot of

      22      materials left over from, whether it's the wells or

      23      the flowback water."

      24             It got to -- you know, it got to the point,

      25      where, you know, we're talking to each other, and we







                                                                   285
       1      said:  You know, we got to get some specific answers

       2      as possible, with regards to that issue.

       3             And I'm glad that the testimony that was

       4      presented here today will be in the record.

       5             It's something that the DEC has to take a

       6      look at; has to move forward on it.

       7             But, I just appreciate it.

       8             And, I'll say good night to you, but I'll

       9      turn it over to Senator Gallivan, to say a few

      10      words.

      11             SENATOR GALLIVAN:  I, too, would like to

      12      thank you for being here; for the people that

      13      presented testimony, and the people that had the

      14      patience, as we moved along, to wait your turn.

      15             Clearly, this is an issue of our times; and,

      16      perhaps, the most significant thing that we will

      17      face in our time in the Senate.

      18             So, it's not something we take lightly.

      19             And, from my perspective, this was meant to

      20      be information-gathering.

      21             As we continue to go forward, we'll continue

      22      to do that.

      23             I know we mentioned it a little bit earlier:

      24      If people had written testimony to present, you can

      25      leave it with us.







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       1             Or, you could, certainly, connect with our

       2      offices, or through our website.

       3             If you just go to NYsenate.gov, you can get

       4      to each of us personally, and submit attachments, or

       5      individual comments.

       6             But, I'd like to thank everyone for their

       7      time.

       8             And, Senator Grisanti, for continuing the

       9      work.

      10             And I can assure you, he is traveling

      11      throughout the state, conducting numerous hearings.

      12             But, thanks for your leadership, and your

      13      work on this.  And, coming into our district, and,

      14      an area, like I say -- said earlier:

      15             We're in the heart of the Finger Lakes; and,

      16      our lakes and our waters are very important.

      17             So, thank you.

      18             SENATOR GRISANTI:  Okay.

      19             Thank you very much.  Appreciate it.

      20             Thank you.

      21             [Applause.]

      22                  (Whereupon, at approximately 4:11 p.m.,

      23        the public hearing, held by the Chair of the

      24        New York State Senate Standing Committee on

      25        Environmental Conservation, concluded.)