Overview of Hydraulic Fracturing May 31,2013

1. Overview of Hydraulic FracturingMay 31,2013 USDOL/OSHA Ronald Williams – Compliance Assistance Specialist 3300 Vickery Rd. North Syracuse, NY 13212 315-451-0808 ext. 3002

2. Art Dube, Area Director Gordon DeLeys, CAS Buffalo Area Office 130 S. Elmwood Avenue, Suite 500 Buffalo, NY 14202 (716) 551-3053 x244 Kim Castillon, Area Director Albany Area Office 401 New Karner Road, Suite 300 Albany, NY 12205 (518) 464-4338 Diana Cortez, Area Director Tom McCarthy, CAS Tarrytown Area Office 660 White Plains Road Tarrytown, NY 10591 (914) 524-7510 Chris Adams, Area Director Ron Williams, CAS Syracuse Area OSHA Office 3300 Vickery Road N. Syracuse, NY 13212 (315) 451-0808 x3002 Tony Ciuffo, Area Director Long Island Area Office 1400 Old Country Road Suite 208 Westbury, NY 11590 (516) 334-3344 Kay Gee, Area Director John Frowd, CAS Manhattan Area Office 201 Varick Street, Room 908 New York, NY 10014 (212) 620-3200

3. Introduction • What is hydraulic fracturing? • OSHA’s perspective • OSHA’s actions • Safety concerns • Health concerns and hydraulic fracturing fluid

4. Shale Plays

5. Hydraulic Fracturing Picture from Plan to Study the Potential Impacts of Hydraulic Fracturing on Drinking Water Resources, EPA 2011

7. Top Side Water Storage Tanks Chemical unit Sand Trailer Blender Frac Control Van Pumper Units Well head

8. Hydraulic Fracturing is one in many upstream operations in an industry with a high fatality rate (2006-2010) Rate per 100,000 Workers Source: Private Sector Fatality Rates- Bureau of Labor Statistics Census of Fatal Occupational injuries (CFOI) O&G Fatality Rates - OSHA calculated using CFOI fatality counts and employment data from the BLS Quarterly Census of employment and Wages.

9. Are HF Workers at Greater Risk of Occupational Injury? Possible risks for consideration • Increased Time On Site • Increased Potential for Injury • Longer hours/fatigue? • Materials Transport • Increased Risk of MVAs Are HF Workers at Greater Risk of Occupational Illness? • Silica • Diesel • Chemicals • Increased Time On Site • Increased Exposure to Chemicals • Increased Exposure to Heat

10. OSHA is including HF into existing O&G activities to assess any new risks • Local Emphasis Programs on Oil and Gas • HF is part of the Oil and Gas field • HF inspections are occurring • Better understand hazards • gathering inspection information • working with partners (e.g. NIOSH)

11. Hydraulic Fracturing Safety Hazards

12. Hydraulic Fracturing Safety Hazards • Well Location/Pad Drilling • High Pressure • Loud Equipment • Silica Exposure • Permit-Required Confined Space • Walking/Working Surfaces • Fall Protection • Control of Hazardous Energy (LOTO) • Personal Protective Equipment (PPE) • Pre-Job Meeting • Flammable Gases and Vapors

13. Well Location Water Storage Tanks Chemical unit Sand Trailer Blender Frac Control Van Pumper Units Well head

15. Multiple or Pad Location Wireline Perforation truck Manifold Trailer Truck mounted crane Well heads Wireline Logging Unit

17. High Pressure Hazards (cont’d)

18. High Pressure Hazards (cont’d) Chokers Chokers

19. Loud Equipment

20. Blender Manifold Trailer

21. Triplex Pumper Quintuplex Pumper

22. Proppant Use Silica Exposure (discussed later) Sand Conveyor Field Sand Storage Trailer (aka Sand Hog) Sand Conveyor

23. Permit-Required Confined Space (PRCS) Portable Frac Tank Waste Water Pit Cellar

24. Other Examples of PRCS Sand Dump Truck Field Sand Storage Trailer

25. Chemical Unit Acid transport truck

26. Walking/Working Surfaces

27. Fall Protection

28. Control of Hazardous Energy (LOTO)

29. Personal Protective Equipment (PPE)

30. PPE (cont’d)

31. Pre-Job Meeting

32. Flammable Gases and Vapors

33. Hydraulic Fracturing Health Hazards

34. Hydraulic Fracturing Health Hazards • Background • Water • Base Fluids • Silica • Chemicals • Potential Hazards & Solutions

35. Background • Chemicals typically make up just 0.5 and 2.0% of the total volume of the fracturing fluid.  When millions of gallons of water are being used, however, the amount of chemicals per fracking operation is very large. For example, a four million gallon fracturing operation would use from 80 to 330 tons of chemicals. • Fracture fluids may be based on either acid, gel, water, or oil • Most fracturing work is water based

36. Background (cont’d) • Toxic chemicals exist in frack fluids • Top health effects include: skin, eye, respiratory, & gastrointestinaleffects, and brain and nervous system effects • “NORM” in relatively small quantities of radium, radon and uranium NORM: Naturally Occurring Radioactive Material

37. Background (cont’d) • Myth: Flow back and Produced Water pose a real risk to employees • Fact: The chemicals used in fracking pose the highest risk when in bulk, concentrated form • There is a X to X ratio of water to chemicals • Health • Proper PPE • Portable Eyewash/Shower • Training

38. Water Water is the driving fluid used in the hydraulic fracturing process Depending upon the characteristics of the well and the rock being fractured a few million gallons of water can be required to complete a hydraulic fracturing job

39. Water and Sand: 99.51% • This water can be fresh water or recycled water • Sand is the proppant • Silicosis • Alternatives are often available (e.g. ceramics)

40. Silica Exposures

41. OSHA/NIOSH Hazard Alert • Summarizes some preliminary data on silica exposure • Critical for raising awareness about this hazard

42. Exposure data and operations where over exposures can occur • 47% samples collected exceeded OSHA’s PEL • 79% samples collected exceeded NIOSH REL • Control measures (engineering and respirators) • Assistance/Services/Tools

43. Controls for Silica Exposure • Use local exhaust ventilation • Enclose points where dust is released • Reduce drop on sand transfers • Replace transfer belts with screws • Use water for dust control • Limit worker exposure, rotations NIOSH designed control

44. Many Types of Fluids • Water • Friction reducers • Corrosion inhibitors • Clay stabilizers • Acids • Gelling agents • Oil

45. The following table shows an example of what hydraulic fracturing fluid contains: Note that this is an example of what may be used in hydraulic fracturing operations. 

46. The following table shows an example of what hydraulic fracturing fluid contains: Note that this is an example of what may be used in hydraulic fracturing operations.

47. Potential Health Hazards Ignition and respiratory hazards Potential ignition of flammable or combustible carrier or base fluids Chemical hazards (such as, silica, toxics, asphyxiants) Radiation associated with radioactive tracer materials

48. Possible Solutions Wear proper respirators Provide bonding and grounding for blending, pumping, and sand transfer equipment Use hose covers/shielding for transfer or suction lines containing flammable liquids Prevent contamination and exercise proper personal hygiene

49. Summary Steps to Safety and Health Site Preparation Traditional Safety Hazards traditionally found in oil and gas are present Management of Fluids and Proppants Controls, Safe Work Practices and PPE HazCom Monitoring and Measurement Equipment Emergency Response Procedures

50. Industry Reference and OSHA Info • Most widely used industry consensus standards include: • American Petroleum Institute (API) • RP 54 Oil and Gas Well Drilling and Servicing Operations • International Association of Drilling Contractors (IADC) • Safety on the Rig • Accident Prevention Reference Guide • American Society for Testing and Materials (ASTM) • 2733 Standard Specification for FR rainwear • National Fire Protection Association (NFPA) • 2113 Selection, Care, Use, and Maintenance of FR garments • OSHA Website • Oil and Gas Well Drilling and Servicing eTool • Stimulation • Wireline Operations • Well Logging • Perforating