1. Hydraulic Fracturing and Green Technologies
A Raymond G. Thorpe Lecture Series event featuring Joseph Degenfelder , CEO of Atlantic Green Fuels
“I would found an institution
where any person
can find instruction in any study.”
—Ezra Cornell, October 1868
opening-day address
Produced By:
Hanson Boyd
Mark Engstrom
Joe Mohn

2. A diverse portfolio of energy will power the future
While global
energy demand
is estimated to
grow by almost
50% by
2030, the
energy portfolio
will remain
highly
diversified
Millions of Barrels of Oil per Day
Source: EIA International Energy Outlook 2012

3. Europe and Asia import liquefied natural gas at a
significant premium to the price currently paid in
America
The United States has enjoyed low natural gas prices for the past several years, and new
proven reserves have given rise to the possibility for exportations to higher priced markets
Source: EIA International Energy Outlook 2012

4. Discovers + Green Hydraulic Fracturing Technology
will position the US to be a natural gas exporter
US Natural Gas production will
exceed demand, presenting
two opportunities for
exportation
Exportation via LNG to Europe
and Asia to capitalize on high
prices
Exportation via currently
existing pipelines to Mexico
By 2035, the US is projected to export 4
billion cubic feet per day
Source: EIA International Energy Outlook 2012

5. The Marcellus Basin is a pivotal shale gas play, representing 30% of all
recoverable shale gas in the United States
Source: EIA International Energy Outlook 2012

6. New York State represents 28% of the recoverable shale gas in the Marcellus
Basin
Top States
Pennsylvania – 63%
88,182 BCF
New York – 28.5%
40, 124 BCF
West Virginia – 6%
8,182 BCF
BCF = Billion cubic
feet
Source: EIA International Energy Outlook 2012

7. Pennsylvania and West Virginia have been drilling wells in the
Marcellus Shale basin since 2007
2500
Number of Wells Drilled by State and Year
2000
NY State has
had a
1500
Pennsylvania moratorium
1000
West Virginia on Hydraulic
Fracturing for
500 more than 4
years
0
2007 2008 2009 2010 2011
As other states ramp up production and recognize economic benefits to local
economies, New York state has been slow to acknowledge technological advances in
Hydraulic Fracturing

8. Hydraulic Fracking
The rate we can pump natural gas
out of a single well is too slow to be
valuable
Horizontal drilling and hydraulic
franking increases the rate which
natural gas can be extracted
Horizontal drilling – the natural gas
well is drilled at an angle deep
underground to follow the shale
layer containing natural gas
Hydraulic fracking – a mixture of
water, sand, and additives is
pumped into the well to create a
network of paths for natural gas to
flow to the surface

9. How does fracking work?
• A vertical well is drilled
• Layers of steel pipe is lowered into the well and
cemented in place to create a barrier to drinking
water sources
• After a “kick-off” point the well is drilled horizontally
• The horizontal portion of the well is perforated by
shaped charges
• Fracking fluid is pumped in at high volume and
pressure to fracture a network of passages in the
rock to allow natural gas to flow into the wellbore

10. What’s in fracking fluid and why?
Once a well is fracked the fissures need to be propped open for gas to flow though
Additives help carry the proppants and maintain the well
Improves the rate pumps can
Friction Reducer
deliver fracking fluid
Surfactant Helps blend additive ingredients
Delays the breakdown of gel
Water Salt
polymer chains
Thickens the water to suspend
90% Gelling Agent
the sand
Prevents deposit buildup in the
Scale Inhibitor
pipe in operation
Helps disolve minerals and
Acid
initiate fissure in the rock
Proppant (sand) pH, breaker, crosslinker, iron
9.5% Other 0.034%
control, corrosion inhibitor

11. Like all energy sources, shale gas does not come without
risk or concern
Water usage and contamination
Surface spills, managing waste
Methane emissions from natural gas systems
Top concerns with hydraulic fracturing
Road wear and community impact
Increased seismic activity
Legal implications and involvement of courts
Source: Ecologix Environmental Systems

12. Water & Fracking
• The average fracking well requires about
4M gallons of water
• Typically 15-20% can be reused
• At least 30% of the 4M gal used is
unrecoverable
• Billions of gallons used each year
• Treating wastewater is expensive and must
be done at licensed facilities
• Risks include :
• Potential to contaminate waterways
through surface discharge
• Open air storage poses risks to
wildlife

13. Surface spills and leaks
Situation
• Flowback water is stored
in tanks and open-air pits
for many days
• Casings isolate the well
and prevent leakage to
groundwater
Concern
• Spills could contaminate shallow water sources and pose
threat to wildlife and biodiversity
• Well casing could fail and causing fracking fluid to
leak, possibly contaminating groundwater

14. Methane emissions for fracking sites
• Methane is a green house gas and second largest contributor
to climate change behind CO2
• During the weeks following hydraulic fracking, frac-return
liquids flow back to the surface along with large volumes of
methane
• Flowback emissions are estimated at 1.9% of the lifetime
production
• This methane is either captured, flared, or vented which
increases the carbon footprint compared to conventional gas
wells

15. Road Wear, Noise, Traffic
– Each well requires 600 one-way truck
trips
– Truck traffic causes significant road
damage, especially on county roads
that were not designed to handle the
traffic volume and weight
- Typically, provisions for road repair

16. Key Legal Issues Being Litigated
Is hydraulic fracturing an “ultrahazardous” or
“unreasonably dangerous” activity?
• If so, strict liability may apply.
• Courts have not yet ruled on this issue.

17. Key Legal Issues Being Litigated
• Should courts issue Lone Pine orders?
Such orders can save litigation costs by
bringing a quick end to litigation when
plaintiffs lack evidence to prove certain
elements of their claims when they file suit.
But plaintiffs argue such orders can be unfair.

18. Key Legal Issues Being Litigated
• A court in Colorado dismissed a case after
plaintiffs failed to adequately respond to a
Lone Pine order.
• Courts in Pennsylvania have declined to issue
Lone Pine orders.

19. Key Legal Issues Being Litigated
Numerous states require public disclosure of
the composition of fracturing fluid, except for
constituents that are trade secrets.
• Are Wyoming regulators adequately vetting
trade secret claims ?
• Environmental groups have sued, saying
Wyoming regulators are too lax in accepting
trade secret claims.

20. Key Legal Issues Being Litigated
Is Pennsylvania statute expanding preemption
constitutional?
• In several states, state-level oil & gas statutes
and regulations preempt local regulation of
oil & gas activity.
• A new Pennsylvania statute that expands the
preemptive effect of state law is being
challenged.

21. Key Legal Issues Being Litigated
Does grant of “minerals” in a Pennsylvania
deed include shale gas?
• In the context of deeds that grant the right
to “minerals,” the word “minerals” does not
have a well-established meaning.
• The issue can be critical to determining who
has the right to drill in the Marcellus.

23. Treating Wastewater from Fracking
Frack water contains:
• Chemicals and salts found in the • Naturally occurring radioactive
fracking fluid material (NORMs)
• Other minerals picked up when • Heavy metals
the water comes in contact with
the fracture rock

24. Water & Fracking Going Forward
• Replacing water with gelled liquefied petroleum
gas (LPG) or compressed air
• Eliminates the need for:
• Post-frac cleanup
• Water disposal
• Frack tanks
• Various pieces of heavy equipment
• Developing
environmentally
friendly fracking fluid
• ingredients source
from the food
industry, to offer an
extra margin of safety
Source: Technology Advances Push Greener Side of Fracking (2010)

25. Greenhouse gas emissions
• Portable equipment called reduced emissions completions
(RECs) developed to capture well flowback (mix of fracking
fluid and methane)
• Separates frack water and methane
• Reduces methane, VOC, and HAP emissions
• Significantly reduces or eliminates the need for flaring
• Capture and sell the gas – on average 3,300 Mcf
Source: EPA Lessons Learned from Natural Gas STAR Partners

26. Remaining environmentally sustainable is the top priority for
leading shale gas site developers
• In 2010, Schlumberger commercialized the OpenFrac fully disclosed hydraulic fracturing fluids, a family
of fluids that avoid the use of analytes listed on the US EPA Priority Pollutants and National Primary
Drinking Water Contaminants
• Schlumberger HiWAY hydraulic fracturing technique, which is a process for fracture construction that
delivers a step-change in fracture conductivity and uses 45% less proppant material
• Halliburton uses an electrocoagulation technology to treat frac water on site for re-use. It features a
mobile electrocoagulation unit that uses electricity to treat up to 26,000 bbl/day of water
• Baker Hughes’ VaporFrac fracturing fluid also eliminates post-frac cleanup, water disposal
costs, frac tank rentals, sand haulers and proportioning units
• Weatherford reclaims water through a two-step process that involves the physical separation of
the solids from the water and further filtering and clarification
Source: http://www.green2010.us/technologyinfracking.htm
Logo usage is for educational purposes only and does not signify the companies listed above endorse any parts of this presentation

27. Preventing Leaks
To protect drink water
aquifers, proper drilling, casing and
cementing programs are the primary
protection mechanism.
along with the fact that these
aquifers are typically shallow and
close to the surface
The other thing we must be
cognizant of is that perforating
takes place in the hydrocarbon
production sections of the
wellbore.”
- David Adams

28. Environmentally fracking flud: CleanStim
• Complete fluid system (Gelling
agent, crosslinker/buffer, breaker, and surfactant)
• Made with ingredients sourced from the food industry
• Excellent performance and reduced environmental risk should
a leak or spill occur

29. Microseismic mapping provides significant improvements to
model hydraulic fracture growth leading to economic success
• Used to map subterranean landscape
• Provides tacking ability to monitor the path of treatments and proppants
(hydraulic fracturing fluid)
• Should a fracture begin to
develop in an unwanted
direction, that fracturing stage
can be shut down immediately
• Injection rates and pressures are
monitored real time; any abrupt
change is an indication the
process should be paused for
further examination
Source: http://www.green2010.us/technologyinfracking.htm

30. Ceramic Proppants increase productivity and offer superior
stability compared to silica sand
• Ideal for slickwater fracturing applications
• Can offer 40% more conductivity than
higher priced 40/70 resin coated sand
• Priced similarly to resin coated sand
• Due to a higher porosity within the
fracture, a greater amount of oil and natural
gas is liberated
40/80 CARBOHYDROPROP capitalizes on the reduced settling rates afforded by small
particle diameter, while retaining the benefits of a high quality ceramic proppant.
According to Stokes’ Law, pellet diameter has a greater impact on transport than
particle density. 40/80 CARBOHYDROPROP provides similar settling velocities to 40/70
sand or resin-coated sand, and exhibits uniform, spherical and rigid particles.
Sources: CARBOceramics.com 2011

31. Seismic activity
Don’t dispose of frack water to dry
wells
Reuse it
((((WORK IN PROGRESS))))

32. Economic stimulus in the local community through the
introduction of hydraulic fracturing
Boulder County Weld County
• <50% land protected • Shale gas wells and
from public use agriculture co-exist
• County carries debt in • Zero bond
excess of $250M indebtedness
• Moratorium on • >1200 wells drilled in
hydraulic fracturing during 2012
• Property taxes = Denver • Property tax = 60%
suburbs of Boulder County
• 10% sales tax • 5% sales tax
• Higher than average • Below average
unemployment rate unemployment rate
Hydraulic fracturing provides an energy source and brings stimulation to local
economies by providing jobs, taxable revenue, and income to local landowners
and businesses
Source: Discussion with Howard Wheeler, Atlantic Green Fuels, 2013

33. Conclusion
How Natural Gas Fracking is Beneficial to the US?
Energy Independence
Cleaner (less CO2) compared to coal
Advances in green technology for fracking
Low Cost Energy
EPA http://www.epa.gov/cleanenergy/energy-and-you/affect/air-
emissions.html

34. Hydraulic Fracturing and Green Technologies
A Raymond G. Thorpe Lecture Series event featuring Joseph Degenfelder , CEO of Atlantic Green Fuels
The Johnson Energy Club is proud to welcome Joseph Degenfelder
(Chem Eng ‘60) to campus for a panel discussion on the latest Green
Technologies in Hydraulic Fracturing.
Joining Mr. Degenfelder will be Professor Anthony Ingraffea, Cornell
University Engineering, as well as Keith Hall JD, Director of the
Louisiana Mineral Law Institute.
Funded by the GPSAFC. Open to the entire Graduate Community
Thursday February 28
3:00 – 4:00 PM
Sage Hall – Room B10
Networking event immediately after

35. - Appendix -

36. Reduced Emissions
50% reduction in CO2 emissions, 99.99% reduction in SO2, 72% Reduction in NOx

37. Natural Gas power plants offer low cost energy
generation
Electricity costs
for new power
plants, excludin
g
subsidies, both
2020 and 2035
(in 2010 cents)
Source: EIA International Energy Outlook 2012