Quakes Push Arkansas to Limit Gas-Waste Wells
Wall Street Journal
26 July 2011
By Ben Casselman
Arkansas regulators are expected Tuesday to order the closure of some
underground storage facilities that natural-gas drillers use to dispose
of contaminated water because of concerns they are causing earthquakes.
The ban would only affect part of the state and wouldn't stop drilling
in the Fayetteville Shale gas field there. But it highlights how water
issues—including the disposal of waste tied to the controversial
hydraulic fracturing process—have emerged as a major challenge for the
oil and gas industry across the U.S.
Hydraulic fracturing, known as "fracking," involves injecting water,
sand and chemicals deep into the ground to break up oil-and-gas-bearing
rocks. Some of the water stays underground, but the rest—millions of
gallons in some cases—comes back up the well to the surface. The
wastewater can also contain minerals, oil and naturally occurring
radioactive material.
Dealing with that waste has become a source of controversy in places
like Pennsylvania. Environmental groups there argue that drilling waste
can contaminate rivers, and companies have been forced to spend
millions hauling their waste out of state or developing technologies to
clean it. The industry says it disposes of drilling waste safely and is
working to reduce the amount of waste it creates.
As in many oil-and-gas-producing states, companies in Arkansas haul
drilling wastewater by tanker truck to facilities where it is injected
back into the ground. The waste is trapped permanently in formations
thousands of feet under the surface.
When hundreds of small earthquakes began shaking central Arkansas last
year, many residents suspected the disposal facilities were to blame.
In January, the state ordered a six-month moratorium on new disposal
facilities in the area, and in March operators agreed to shut two
disposal wells while the state investigated.
Most of the quakes were too small to be felt by residents, but a few
were more significant. In February, a 4.7-magnitude quake near the town
of Greenbrier, about 45 miles north of Little Rock, caused minor damage
and could be felt in Memphis, Tenn.
"They just became very, very intense and very frequent all of a
sudden," said Sam Lane, a 28-year-old Greenbrier resident who says the
quakes cracked bricks and drywall in his home. "We got to the point
where we took all the big mirrors and pictures off the walls."
Mr. Lane is one of several residents suing the companies that operate
the disposal wells. The companies dispute his claims.
Geologists have long known that injecting liquid into the ground can
induce earthquakes along existing fault lines. The fluid acts like air
on an air-hockey table, allowing rocks to flow past each other more
easily.In 2010, researchers at Southern Methodist University in Dallas
found that a series of quakes at Dallas-Fort Worth airport were likely
related to by nearby disposal facilities associated with the Barnett
Shale gas field. Two disposal wells were shut down following the quakes.
Scientists with the Arkansas Geological Survey found a correlation
between the quakes and the disposal facilities, and noted the quakes
slowed after the wells were closed.
Disposal-well operators say a clear link hasn't been established and
note Arkansas had earthquakes before drilling began.
On Tuesday, the state Oil and Gas Commission will decide whether to
impose a permanent ban on disposal wells in a 1,150-square-mile swath
of central Arkansas where the quakes occurred, and to adopt stricter
regulations on wells outside the quake zone. Both commission director
Lawrence Bengal and Democratic Gov. Mike Beebe support the proposal.
Mickey Thompson, whose company, Clarita Operating LLC, owned one of the
disposal wells that closed earlier this year, said he sees little hope
of prevailing. His Oklahoma-based company has closed its Arkansas
operations and laid off 20 workers there.
Natural-gas companies say they will truck their wastewater to wells
elsewhere, which they say will drive up costs. Mr. Bengal acknowledged
the proposal could slow drilling, at least temporarily, as companies
look for other disposal options.
But Mr. Thompson said he sees a bigger potential impact if drilling
critics use the issue to oppose wastewater disposal facilities even in
places where there haven't been earthquakes.
'It's much broader than just what happens with a couple or a handful of
disposal wells," Mr. Thompson said.
Indeed, Mr. Lane, the Greenbrier resident, has set up a website calling
for a moratorium on all fracturing in Arkansas. The issue has drawn
attention from environmental groups across the country.
David Burnett, an expert on drilling and environmental issues at Texas
A&M University, said companies are increasingly grappling with
water issues even in areas like Arkansas that are generally supportive
of drilling. He said that in states like Arkansas and Texas, companies
are adopting strategies first adopted in Pennsylvania to reuse
wastewater to fracture additional wells, cutting down on both waste and
total water use.
"It makes good sense environmentally and politically," Mr. Burnett
said. "Now everybody is planning to recycle as much water as they can
practically everywhere."
Write to Ben Casselman at ben.casselman@wsj.com