Attorney Matthew Sura

1. Attorney Matthew Sura • Introduction… • Former Director of Western Colorado Congress • Graduate of University of Colorado Law School • Attorney specializing in representation of landowners and mineral owners in oil and gas transactions and disputes

2. WCC Member Organizations (2008)WCC member groups in San Miguel, Ouray, Montrose, Delta, Mesa, Garfield, and Routt counties.

3. Landowners Alliance for NE Douglas County

4. Colorado’s Oil and Gas Basins

6. NIOBRARA: Oil boom on the Front Range?

7. Horizontal Drilling and Multiple-Stage Hydraulic Fracturing

8. Jake well • The Jake well, which was drilled in October 2009 in Weld County, produced an average of 1,750 barrels of oil per day for the first few days -- 50,000 barrels over first 90 days. • Today, oil is trading at $100 / barrel. At that price, the well paid for itself in three months ($5 million)

9. Multi-Well Pad Coverage

10. Denver Post headline… “Anadarko estimates Colorado has up to 1.5 billion barrel oil reserve”

11. There are over 47,000 active wells in the state.

12. Surface impacts Air Emissions Land Impact Private Property Rights Water Supply Water Handling Water Reuse & Disposal

13. PRIVATE PROPERTY RIGHTS What if you had a neighbor who came on to your property and: disturbed 2-7 acres of your land, Brought constant truck traffic through your property, dug waste pits for toxic chemicals, and installed heavy, loud equipment; then tossed you $2500 for your troubles? Troubles that could be there for up to 30 years.

14. Home on the range or industrial site?

15. Gas wells and pumpjacks can be located as close as 150 feet from a home.

16. Well pads and drill rigs in ranchers’ fields.

17. IMPACTS TO THE LAND

18. pipeline corridors across the landscape and through people’s yards,

19. IMPACTS TO WATER QUALITY

20. Hydraulic Fracturing

21. Example Horizontal Well

22. What is in fracking fluid? • 4-5 million gallons per frack. 98% water and sand, 2% fracking chemicals. • Some fracking chemicals relatively safe: sodium chloride, guar gum, citric acid • Some more ominous: hydrochloric acid, diesel fuel, BTEX (benzene, ethylbenzene, toluene, xylene), polycyclic aromatic hydrocarbons; methanol; formaldehyde; ethylene glycol

23. Colorado Fracking Disclosure Rule • Governor Hickenlooper called for the Colorado Oil and Gas Conservation Commission to require disclosure of the chemicals used in fracking. • Several month stakeholder process and an 11-hour public hearing led to the passage of the Colorado Fracking disclosure rule.

24. Colorado Fracking Disclosure Rule • Requires the disclosure of both the identities and concentrations of all fracking chemicals. • Companies may continue to seek trade secret protection for specific chemicals, but they will have to justify and certify their trade secret claims. • Citizens who dispute such claims will have enhanced opportunity to get their challenges heard by the oil and gas commission or in court.

25. SPILLS Denver Post study: From 2008-2010, average of more than a spill per day, average size of 5,300 gallons

26. Leaking Waste Pits Hydraulic fracturing pit.

27. Methane Seeps . Divide Creek in Silt Colorado, April 2004, contaminated with methane and ignitable. The accident also affected water wells in three homes.

28. WELL CONSTRUCTION STANDARDS CONDUCTOR PIPE CEMENT FRESH WATER AQUIFER ZONE SURFACE CASING CEMENT 400’ Usable Fresh Water Surface Casing 550’ PRODUCTION CASING 2100’ Various Atoka Sands & Shales 4000’ of Sediment SHALLOW PRODUCING ZONE 1300’ Upper Hale CEMENT 600’ Morrow Shale 300’ Fayetteville Shale Hindsville Cross sectional view TARGET PRODUCING ZONE

29. GOOD MECHANICAL INTEGRITY CONDUCTOR PIPE FRESH WATER AQUIFER ZONE SURFACE CASING PRODUCTION CASING SHALLOW PRODUCING ZONE TARGET PRODUCING ZONE

30. CEMENT CHANNELING CONDUCTOR PIPE PRESSURE BUILDS UP FRESH WATER AQUIFER ZONE SURFACE CASING PRODUCTION CASING FORMATION SHALLOW PRODUCING ZONE CASING CEMENT TARGET PRODUCING ZONE

31. INSUFFICIENT CEMENT COVERAGE CONDUCTOR PIPE PRESSURE BUILDS UP FRESH WATER AQUIFER ZONE SURFACE CASING PRODUCTION CASING SHALLOW PRODUCING ZONE TARGET PRODUCING ZONE

32. IMPACTS TO AIR QUALITY • Emission Type • NOx • SO2 • CO • CH4 • VOCs (incl. BTEX) • Reduction Technology • Catalytic reduction • Ultra-low sulfur diesel fuel • LNG and CNG fuels • Oxidation catalysts • Green completions, vapor recovery units, low bleed/no bleed pneumatic devices, plunger lift systems, leak detection • Emission Levels • EPA • Industry • State regulators • Research groups

33. SMOG OZONE VOCs

34. Uncontrolled Emissions Estimates from Oil and Natural Gas WellCompletions and Recompletions BOTTOM LINE: 240 times more air pollution from uncontrolled Oil and natural gas wellcompletions and recompletions • US EPA, Oil and Natural Gas Sector: Standards of Performance for Crude • Oil and Natural Gas Production, Transmission, and Distribution. July 2011

35. Dust and emissions from heavy truck traffic

36. Current Issues:Local regulationsSetbacks from homes

37. STATE VS. LOCAL CONTROL Argument for local government role: Local land use conflicts are best solved by local government. Local government should be part of monitoring of the industry. Local process gives local community a voice Argument for state control: oil and gas commission has expertise and experience in a highly technical field. There is a need for uniformity

38. Cities and Counties • Cannot ban or prohibit oil and gas development • Can exercise control over development up to the point of “operational conflict” with state authority • State setback: drilling and fracking can happen 350 feet from homes in residential areas, 150 feet elsewhere

39. SETBACKS FROM HOMES

42. For more information contact Matthew Sura Attorney at Law (720) 563-1866 mattsura.law@gmail.com