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OKOGA WEEKLY HIGHLIGHTS | WEEK OF 9/9/16
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SEISMIC ACTIVITY

 
The September 3rd Labor Day weekend earthquake has put the seismicity issue front and center again in Oklahoma. The earthquake that struck near Pawnee was initially recorded as a 5.6 magnitude, but was upgraded to a 5.8 magnitude by the U.S. Geological Survey (USGS) on Wednesday. That makes it the largest earthquake in Oklahoma in recorded history. There have been numerous aftershocks in and around the Pawnee area. (AP reports)
 
Saturday’s earthquake was felt in five states, according to USGS – Oklahoma, Kansas, Missouri, Arkansas and Texas. There were also felt reports from as far away as Iowa and Arizona. The quake struck just after 7:00 a.m. local time, at a depth of 6 kilometers (3.7 miles). The epicenter was around 8 miles northwest of Pawnee, a town of less than 3,000 people.
 
The magnitude revision is based on further in-depth analysis of seismic recordings. Changes in estimated magnitude for an earthquake are common in the hours-to-days following the event, as more data is analyzed in greater detail than is possible in the first minutes after the earthquake occurs, according to the USGS.
 
Concurrently, the USGS is also updating the official magnitude of the November 6, 2011 Prague, Oklahoma earthquake to Mw 5.7 (from 5.6). Questions regarding their relative size prompted a re-analysis of both earthquakes. Both updates are the result of comprehensive studies of the long-period, globally-recorded seismic data for these earthquakes, using consistent approaches and datasets for each event, USGS said.
 
The initial earthquake sparked widespread reports of damage (including Pawnee Nation buildings and the home of Pawnee Bill) and one reported minor injury where the victim was treated and released. KOCO (Channel 5-OKC) shared a video of U.S. Sen. James Lankford viewing damage in Pawnee with the mayor. Some older buildings in Pawnee suffered some façade damage. Oklahoma State University also reported some minor damage to some campus buildings, mainly cracks and jammed doors.
 
Within barely an hour of the earthquake on Saturday, the Oklahoma Corporation Commission (OCC) announced that members of the OCC seismicity team were working on reviewing the earthquake activity. By early afternoon OCC was in contact with and  issued new directives to saltwater disposal operators in the area to shut in 37 wells within a 725 square-mile area. The area includes 211 square miles of Osage County, which is outside of OCC jurisdiction. The agency letter to operators included new language this time, including citing the agency’s authority under existing law, newly enacted law and recently in effect agency rules; specifying the “instructions are mandatory”; indicating subsequent actions may be necessary; and the media advisory stated the length of the shut-down is “indefinite”. (eCapitol reports)

The EPA has sole jurisdiction over disposal wells in Osage County due to tribal mineral rights. Two days after OCC’s action, EPA released their shutdown order. EPA has ordered the shutdown of 17 disposal wells in Osage County. EPA's Dallas-based Region 6 issued a press statement saying simply that it was evaluating information and would “take appropriate steps.” (NewsOK also reports)
 
Sen. Jim Inhofe (R-OK), chairman of the Senate Environment and Public Works Committee which oversees EPA, warned the agency not to go too far in restricting oil-field operations. “There are many unknowns about the cause of earthquakes in Oklahoma, and I believe the Oklahoma Corporation Commission has pragmatically addressed this issue without overacting,” Inhofe said in a statement to EnergyWire. “EPA should continue working constructively with the Commission to ensure it does not overreact in its own response.”
 
Gov. Mary Fallin also declared an emergency in Pawnee County. Under the Executive Order, state agencies can make emergency purchases and acquisitions needed to expedite the delivery of resources to local jurisdictions. The Oklahoma Department of Emergency Management (OEM) was also called to action on Saturday and reported they were in contact with local emergency managers in the affected areas as well as officials at the Governor’s Coordinating Council on Seismic Activity, Oklahoma Department of Transportation, Oklahoma Corporation Commission, Oklahoma State Department of Health, U.S. Army Corps of Engineers, Oklahoma Department of Environmental Quality, Oklahoma Office of Homeland Security, Oklahoma Geological Survey, U.S. Geological Survey, American Red Cross, The Salvation Army and other Voluntary Organizations Active in Disaster (OK VOAD). OEM reported statewide, eleven residents submitted damage photos and information to the agency through the OK Emergency mobile app. The reported damage occurred in the following locations: Catoosa, Grove, Hominy, Morrison, Owasso, Pawnee, Stillwater, Tulsa and Yukon.
 
The 5.8 magnitude quake felt across Oklahoma and as far as Austin, Texas and Lincoln, Nebraska this past weekend generated international inquiry and national headlines, including the Wall Street Journal, Forbes which claims fracking makes Oklahoma as prone to quakes as California, a New York Times interview with OSU Prof. Todd Halihan, Bloomberg predicts a backlash against the industry in Oklahoma and gets clever with another headline referring to ‘fracking waste wells’. The widely experienced event also triggered uninformed editorializing – a Lawrence Journal-World editorial asserts Oklahoma isn’t doing as much as other states to combat induced seismicity and The Kansas City Star ran an editorial professing earthquakes as evidence to ‘keep it in the ground’. The Tulsa World joined in saying, the state needs to be more aggressive in its response to “seismic danger”. Alternatively, the Enid News & Eagle editorial this week praised the work of state researchers, regulators and industry, saying, “We’ve made great strides in the last five years, but we still have a lot to learn about Oklahoma earthquakes. In the meantime, our policy decisions should continue to be based on facts, not fear.” In other local news, radio talk show host Scott Mitchell interviewed Arkansas attorney Scott Poynter on KOKC (1520 AM). Poynter rushed to Oklahoma to seek more clients as his own law firm blog states.
 
KOCO quoted state geologists on Monday that pre-existing wastewater in the Arbuckle may have triggered the sudden quake. Officials with the Oklahoma Geological Survey (OGS) said that this earthquake struck during a time when injection well activity had been reduced and seismic activity was down. However, Boak said that the 5.6 magnitude earthquake [as reported at the time] didn’t come as a huge shock to geologists on Saturday. He said that history has shown the shaking can occur months or even years after the wastewater was injected. “You never quite know where it (wastewater) is going to migrate to and cause an earthquake that was kind of cued up and ready,” Boak said. The University Daily Kansan reported other geologists’ theories on Saturday’s quake.
 
Planned and scheduled months prior, OGS hosted a workshop this week for researchers, scientists, geologists, regulators and industry experts to review numerous studies of seismic activity and state geology (Journal Record (sub req’d) also reports). Because of the recent activity, researchers are bringing new seismic equipment to the area, including 400 seismometers as part of a Cornell University project. (The Oklahoman, StateImpact OK also reports)

Prior to Saturday’s event, the Enid News & Eagle had begun a series of articles about the earthquake activity in Oklahoma – Who’s at Fault. Saturday’s article, Right people at the table, discusses the membership and activity of the Governor’s Coordinating Council on Seismic Activity. OKOGA President Chad Warmington speaks about the results of the council’s meetings, “The results speak for themselves. We're seeing a reduction in overall earthquake activity, you've seen the industry step up and comply with all the directives because we believe they've (OCC) been making decisions in a science-based manner, and the reason we know that is because we're working with them and the coordinating council is a key part of that. That's fostered a sense of a working relationship that I don't think would be there without the council at the center.” Warmington said the council has helped foster relationships to help Oklahoma's responses.
 
In related news, this year’s Oklahoma Building Summit & Expo, hosted by the Oklahoma State Home Builders Association, will include sessions on seismic issues and earthquakes.
 

OKOGA COMMUNICATIONS UPDATE

 
With the large seismic event occurring on Saturday of Labor Day weekend, a number of news outlets utilized past statements issued to the press from OKOGA President Chad Warmington. Though the brief article doesn’t cover all the technical points, CNN Money does quote Warmington from an April statement, saying the industry is willing to take “significant measures” to combat earthquakes.
 
Warmington has fielded several interviews on the oil and natural gas industry’s reaction to the shutdown order. Warmington pointed out the economic impact this new directive will have on operators and the economy in Oklahoma. He told News 9 (KWTV-OKC) that it’s a tough situation, but he understands why the OCC is calling for this. “These directives are going to minimize the amount of production which obviously minimizes the amount of tax revenue that is paid, the jobs that are created by these companies. But the balance is public safety,” he said. (The interview also aired on partner stations during multiple broadcast times in Tulsa, OK; Sherman, TX; Amarillo, TX; Shreveport, LA; and Joplin, MO.)
 
Warmington also conducted interviews with KOCO-TV (Channel 5-OKC), CNN, Reuters, Telemundo and AMI NewsWire. He also participated in an open-to-the-public forum on seismic activity in Tulsa that was originally scheduled several weeks before the September 3rd earthquake. After Saturday’s quake, Tulsa area media heavily promoted the forum hosted by the Tulsa Chapter of the American Chemical Society, and an estimated 300 people were in attendance. Warmington was a panelist, along with Matt Skinner and Tim Baker with the Oklahoma Corporation Commission, Dr. Jeremy Boak with the Oklahoma Geological Survey and Johnson Bridgwater with the Oklahoma Chapter of the Sierra Club.
 
Tulsa World reported on the issues highlighted at the forum. Warmington told the group that the Pawnee quake has created a misunderstanding that the state isn’t moving in the right direction. He said the Corporation Commission’s quick action Saturday is an indicator that its new database and knowledge are growing. “That (quick action) wouldn’t have been possible a year ago,” Warmington said. Muskogee Phoenix also reported on the forum, as attendees from a far as Tahlequah traveled to Tulsa. “Horizontal drilling has changed everything,” Oklahoma Corporation Commission spokesman Matt Skinner said. “That is what has led to the use of injection wells for wastewater. When the issue was water protection, there was no concern about injecting that into the basement. We had no idea that it would cause earthquakes,” Skinner said. Chad Warmington, president of the Oklahoma Oil and Gas Association, defended the practice and the industry, noting its voluntary efforts to provide data unavailable to researchers and funding for research. He argued the practice of using disposal wells is the most environmentally sound and financially feasible way to get rid of the wastewater. “There are thousands of injection wells that don't have related seismicity,” Warmington said, adding the problem is isolated to injection wells disposing of wastewater in the Arbuckle formation. “There is a lot of oil and gas production that doesn't have these associated issues, so it has been very important for us as an industry to push back and say we are doing everything we can to address these issues in these areas of interest.” Pat Campbell, local conservative talk show host on Tulsa’s KFAQ (1170 AM) also discussed the forum with callers.
 
So far, more than 60 local, state and national stories have been published or broadcast about the September 3rd earthquake and the aftermath. Most of the local and state news stations have accurately reported that authorities are pursuing the potential link to underground wastewater disposal wells to earthquakes. However, several national media outlets have continued to falsely report that the earthquakes are linked to hydraulic fracturing.
 
Energy In Depth wrote a detailed rebuttal to those media organizations, titled Some Media Outlets Still Ignoring Science by Blaming Fracking for Oklahoma Earthquakes. The post points out how many media outlets appear to be ignoring the claims by leading scientists that hydraulic fracturing is not the cause of the earthquakes in Oklahoma. OKOGA shared the post on its social media sites.
 

INDUSTRY NEWS

 
OKOGA Board member, Enbridge, had a major announcement this week about the acquisition of Spectra Energy to create the largest energy infrastructure company in North American with $127 billion enterprise value. (FuelFix reports)
 
In another positive report for the Oklahoma oil and natural gas industry this week, The Oklahoman published an editorial highlighting Oklahoma’s leading energy role and reliance on the industry from a recent American Petroleum Institute (API) report. “Some critics insist Oklahoma should have taxed oil and gas producers at far higher rates during the boom, and demand higher tax rates even in the current recession. Yet that would have deterred some investment and drilling, reducing economic growth. And, state and local governments collected far more in personal income, corporate income, sales and property taxes as the result of energy field growth. You don't choke the goose that's laying golden eggs. Too often, many Oklahomans take our state's role in energy production for granted. The API report is a reminder that, while the boom-bust nature of energy markets is a challenge for Oklahoma, the state would be far worse off without its oil and gas industry.”
 
The Interstate Oil and Gas Compact Commission (IOGCC) has released the 2015 Marginal Well Report that documents marginal well activity in the United States.
 

LEGISLATIVE NEWS

 
The following House Interim studies are scheduled for hearings:
September 13: H 16-45 Study outstanding debt owed to state agencies (Newell), Assigned to House A&B
September 13:  H 16-49 Study agency fees – fee for service thresholds (Perryman), Assigned to House A&B
October 25: H 16-53 Study options for wastewater recycling (Morrissette), Assigned to House Energy
October 25: H 16-37 Study oil and gas; examining restrictions on the location of habitable structures and the owner of the habitable structure's property rights (Kouplen), Assigned to House Energy
 

REGULATORY NEWS

 

OCC – Petroleum Storage Tank Division

 
The Oklahoma Corporation Commission held a public hearing on Thursday of this week, where Emergency Rules for Chapter 5, Rules of Practice and Chapter 25, Underground Storage Tanks were adopted by the Commission en banc. Chapter 5 rule changes will allow an administrative process approval of variance requests to close in place underground storage tanks without hearing if Petroleum Storage Tank Division (PSTD) staff are in agreement with the request. Provisions are made for hearings if the Applicant and PSTD staff do not agree. No comments were made or submitted concerning Chapter 5 emergency rules. The primary change to Chapter 25 is intended to meet an EPA Region 6 request that OCC rule language match EPA regulation specific to the tank release detection method known as Statistical Inventory Reconciliation (SIR).
 

SPECIES

 
The fracking of conservation: State wildlife agencies invite oil and gas industry to fund wildlife management. Counterpunch (Blog). In early March, 2016, the Association of Fish and Wildlife Agencies (AFWA), through which the various state wildlife agencies act collectively, proudly announced the recommendations of its Blue Ribbon Panel on Sustaining America’s Diverse Fish and Wildlife Resources. The Panel emitted two recommendations in response to what it described alternately as a “fish and wildlife crisis” or “conservation crisis.” As we shall see, the manner in which this crisis was defined, and the identity of the individuals permitted to perform the definition, prefigured the contours of the solutions that were proposed.
 
The Fatuity of It All. National Review (Op-Ed). The climate cure that McKibben, the founder of 350.org, and his friends are pushing would result in the despoliation of vast swaths of the American landscape. Indeed, it would require that an area the size of Texas and Louisiana combined be covered with hundreds of thousands of wind turbines. In January, a paper published in Mammal Review found that wind turbines are now the largest cause of mass bat mortality. The carnage included several species of rare or endangered bats, such as the little brown bat and northern long-eared bat. Ecologists have long recognized the critical role that bats play as pollinators and insectivores. Economists have estimated that in Texas bats save the state more than $1 billion per year in avoided costs for pesticides.
 
New type of bacteria exclusively found in fracking sites (Candidatus Frackibacter). Nature World News. A study published in the journal Natural Microbiology found an unknown genus of bacteria that is thought to be unique to shale oil and natural gas wells. Researchers from the Ohio State University found the bacteria in two separate fracking sites despite the great distance between the wells and different shale formations.
 

US DOT – PHMSA

 
The U.S. Department of Transportation's (US DOT) Transportation Safety Institute has announced two Pipeline Safety Compliance Training seminars specially designed for the energy industry in Oklahoma. The course includes pipeline safety regulations and acute, critical, and serious safety violations. This course is designed to assist pipeline safety personnel with fewer than ten years’ industry experience. For more details, please click here.
 
2016 Pipeline Safety Compliance Training – Gas
November 15-18, 2016, Oklahoma City, OK
 
2017 Pipeline Safety Compliance Training – Liquid
January 10-13, 2017, Oklahoma City, OK 
 

FEDERAL REGISTER


EPA: National Pollutant Discharge Elimination System Electronic Reporting. The U.S. Environmental Protection Agency recently promulgated the NPDES Electronic Reporting Rule to modernize Clean Water Act reporting for municipalities, industries, and other facilities by converting to an electronic data reporting system. This Federal Register document provides an overview of the ‘‘initial recipient’’ term as well as the listing of the initial recipients by state, tribe, and territory and by NPDES data group and the due date for NPDES electronic data submissions.
 

ARTICLES OF INTEREST

 
The Oklahoman Editorial: Experience with BIA shows why Oklahoma state regulation is best
NewsOK: New insurance products may be needed for Oklahoma quakes, report says
OK Energy Today: Energy Companies Accuse Sierra Club of Wanting Federal Court to become “Seismicity Czar”
NewsOK: Oklahoma tribal members join protest over North Dakota pipeline
Journal Record: Matrix checks Cushing tanks for seismic stability
OK Economic Report: Current downturn in Gross Receipts lasting longer than during Great Recession (page 6)
OK Energy Today: Sam Noble Museum Hosts Earthquake Exhibit
Science Magazine: Scientists may have solved mystery of giant Midwest earthquakes
Journal Record: Gavel to Gavel: Don’t ignore bankruptcy notices
 
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