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CC 2014-02-25 Items Rec'd at Mtg. ,Qcv id zzc- iY Ms /let, Tuesday, February 25, 2014 FROM: Thomas A. Cyr 350 Acero Place Arroyo Grande, CA 93420 805 202-8243 tacyr1242 @mac.com TO: Arroyo Grande City Council RE: Arroyo Grande City Council Meeting, Feb. 25, 2014 On January 7, 2014 at the first meeting of the legislative year,the San Luis Obispo City Council began its deliberations regarding a proposed letter to be written to the San Luis Obispo County Board of Supervisors advocating for the prohibition of hydraulic fracturing within the entire San Luis Obispo County.The SLO City Council wrote that letter and provided much needed leadership and a major step in standing for the prohibition of fracking. I would like to encourage this Arroyo Grande City Council to seriously consider the potential negative effects of the hydraulic fracturing process in a place where the availability of water is already a major concern,and where the natural beauty of the landscape is an attraction to many thousands of tourists from all over the state,country and world who contribute greatly to the local economy. In my view,the question of whether to Track'or not to Track' is a false choice.When there is a long-term drought in a semi-arid place,choosing to 'frack'is insanity; the process of hydraulic fracturing requires enormous amounts of water for each well and trading our water for their oil is not a good choice. It is not logical, in my thinking to conduct industrial-sized oil drilling with all of its toxic implications and potential threats to both the quantity and quality of the water,and the necessary destruction to the landscape,especially in a place where water is already a fragile resource and where the natural beauty of the landscape is a prime resource for the local economy. As a resident within the county, I encourage you to stand alongside the San Luis Obispo City Council and write a letter to the SLO County Board of Supervisors advocating for the prohibition of hydraulic fracturing within the entire County of San Luis Obispo. Further, I suggest that the letter be written and delivered quickly. Thank you for your consideration of this request .24617 Retrieved Tuesday.February 25,2014;http://thinkprogress.org/climate/2014/0 2/2 1/3 3 1688 1/exxan-ceo-protests-fracking/ Exxon CEO Comes Out Against Fracking Project Because It Will Affect His Property Values BY REBECCA LEBER ON FEBRUARY 21,2014 AT 2:16 PM As Exxon Mobil's CEO, it's Rex Tillerson's job to promote the hydraulic fracturing enabling the recent oil and gas boom, and fight regulatory oversight. The oil company is the biggest natural gas producer in the U.S., relying on the controversial drilling technology to extract it. The exception is when Tillerson's $5 million property value might be harmed.Tillerson has joined a lawsuit that cites fracking's consequences in order to block the construction of a 160-foot water tower next to his and his wife's Texas home. The Wall Street Journal reports the tower would supply water to a nearby fracking site, and the plaintiffs argue the project would cause too much noise and traffic from hauling the water from the tower to the drilling site. The water tower,owned by Cross Timbers Water Supply Corporation, "will sell water to oil and gas explorers for fracing [sic] shale formations leading to traffic with heavy trucks on FM 407, creating a noise nuisance and traffic hazards," the suit says. Though Tillerson's name is on the lawsuit,a lawyer representing him said his concern is about the devaluation of his property, not fracking specifically. When he is acting as Exxon CEO, not a homeowner, Tillerson has lashed out at fracking critics and proponents of regulation. "This type of dysfunctional regulation is holding back the American economic recovery, growth, and global competitiveness," he said in 2012. Natural gas production "is an old technology just being applied, integrated with some new technologies," he said in another interview. "So the risks are very manageable." In shale regions, less wealthy residents have protested fracking development for impacts more consequential than noise, including water contamination and cancer risk. Exxon's oil and gas operations and the resulting spills not only sinks property values, but the spills have leveled homes and destroyed regions. Exxon, which pays Tillerson a total $40.3 million, is staying out of the legal tangle. A spokesperson told the WSJ it"has no involvement in the legal matter." Monterey Shale Report Exposes Myth of Economic Prosperity From Fracking California Post Carbon Institute I December 4, 2013 EcoNews ihttp://ecowatch.com/2013/12/04/monterey-shale-myth-economic-prosperity-fraclong-califomia/I Post Carbon Institute and Physicians, Scientists& Engineers for Healthy Energy released a groundbreaking report on yesterday using industry data that presents compelling evidence that the promise of a Monterey Shale boom is a myth. Authored by geoscientist J. David Hughes, the report, Drilling California: A Reality Check on the Monterey Shale, is the first analysis of oil production data taken directly from the Monterey Shale Formation and questions whether previous studies modeled on assumptions from other regions are accurate when paralleled with real data. "There was great need for a level-headed look at the Monterey Formation after the USC report made it sound like oil gushers were coming back along with hyper- inflated job projections,"stated Bill Allayaud, California director of governmental affairs, the Environmental Working Group. "This report should make Gov. Brown re- think his 'all-in' position on unconventional oil extraction and re-double his efforts to lead us to meet our AB 32 climate change goals." Drilling California specifically challenges the estimates of technically recoverable resources for the Monterey Shale released by the U.S. Energy Information Agency and 1NTEK in their 2011 report as well as the DRING economic projections based on them put forth bye the University of Southern California in their 2013 A HFIK" CHECK ON TNE;IDNTEREY SWLL£ economic study—upon which all of the optimism of the Monterey shale has been based. "Energy decisions have implications that last for decades,"said Craig Lewis, executive director, "' Clean Coalition. "As this report clearly lays out, fracking California's Monterey shale poses .. ♦.♦ significant economic and environmental risks that persist for multiple lifetimes. Local renewables offer an unparalleled opportunity for California to •3;, achieve a clean,safe and resilient energy future MID HUGHES that establishes a robust economic foundation at the same time." '" FSE f By examining the play's fundamental characteristics compared to other tight oil plays, including geological properties, production rates and cumulative production, Drilling California exposes significant flaws in the assumptions made and ultimately the forecasts of these two reports. -=#_ • I In fact, the report reveals that only a ' ,` ; small fraction of the 13.7 to 15.42 ,'- ' .t' '.� j billion barrels of technically : 1 ° v` recoverable oil estimated by the r EIA/INTEK report will likely ever ` .Sacramen *�. 1` be produced—making it San • s= , t , increasingly evident that any Franc*co I ' -- P ,tea - : promise of a Monterey Shale boom .'4 } I . has been overstated and highly ., l °rodicbem r: exaggerated. o f ,It is clear from our data analysis• that oil production from The {_1 4 Monterey is not likely to be the "Shale" ,-.c. .• ? f :% ' major economic opportunity that a t. - previous studies have indicated," iii -- ∎ '". said PSE's Executive Director Dr. • Seth B. Shonkoff. "Instead,"Shonkoff continued, "the actual oil production data suggest that even with the most advanced well stimulation technologies,such as high volume hydraulic fracturing and acidization that have been successful in other shale plays,oil production in the Monterey Formation,which has been in decline for many years, is unlikely to increase to the levels assumed for these rosy economic projections." "California would be well advised to avoid thinking of the Monterey Shale as a means to significantly increase the State's oil production and as a solution to its economic dilemmas,"said Hughes. "Long term energy sustainability is a pressing challenge for California and the Nation and demands a credible assessment of future energy and economic opportunities as well as a consideration of the environmental costs." Drilling California will be particularly valuable for informing public policy decisions surrounding the development of the Monterey Shale. Policymakers and analysts throughout California welcomed the report as the first publically available empirical analysis of oil production data and weighed in on the significance of this report for California's energy and economic future. "The Hughes report cuts through the hype of oil industry-funded research to reveal that a California fracking expansion will deliver only minor economic benefits at best,"said Staff Attorney Hollin Kretzmann for the Center for Biological Diversity. h ' • 'This expert analysis also suggests that Big Oil could do permanent damage to our , environment and public health by chasing the fantasy of a new oil boom." "If oil companies drilled the tens of thousands of new wells this report suggests would actually be needed to significantly increase production,California would suffer a massive increase in contaminated drilling muds,toxic wastewater and dangerous air pollution,"Kretzmann concluded. Retrieved Tuesday,February 25,2014 from ECOWATCH[http://ecowatch.com/2013/12/04/monterey-shale- myth-economic-prosperity-fracking-cal ifornia/I • • • • , C Focus Chemical Disclosure Registry • s • What Chemicals Are Used As previously noted, chemicals perform•many functions in a'hydraullc fracturing job. Although there are dozens to hundreds of chemicals which could be used as additives, there are a limited number which are routinely used in hydraulic fracturing. The following is a Ilst of the chemicals used most often. This chart Is sorted alphabetically by the Product Function to make it easier for you to compare to the fracturing records . Chemical Name CAS Chemlcal,Purpose Product Function Hydrochloric Acid 007647-01- Helps dissolve minerals and initiate,cracks In the Acid 0 rock Glutaraldehyde 000111-30- Eliminates bacteria In the water that produces Biocide 8 corrosive by-products •` . Quaternary Ammonium 012125-02- Eliminatesbacteria,in the water that produces Biocide Chloride 9 • corrosive by-products Quaternary Ammonium ' 061789-71- Eliminates bacteriain the water that produces Biocide Chloride 1 corrosive by-products Tetrakis Hydroxymethyl- 055566-30- Eliminates bacteria in the water that produces Biocide, Phosphonium Sulfate 8 .• corrosive by-products •. Ammonium Persulfate 007727-54- Allows a delayed break down of the gel Breaker 0 Sodium Chloride 00764744- Product Stabilizer Breaker 5 • • Magnesium Peroxide 014452-57- Allows a delayed break down the gel Breaker 4 Magnesium Oxide 001309-48- Allows a delayed break down the gel Breaker 4 Calcium Chloride 010043-52- Product Stabilizer Breaker 4 Choline Chloride 000067-48- Prevents clays from swelling or shifting Clay Stabilizer 1 Tetramethyl ammonium 000075-57- Prevents clays from swelling or shifting Clay Stabilizer chloride 0 Sodium Chloride 007647-14- Prevents clays from swelling or shifting Clay Stabilizer 5 Isopropanol 000067-63- Product stabilizer and / or winterizing agent Corrosion Inhibitor 0 • Methanol 000067-56- Product stabilizer and / or winterizing agent Corrosion Inhibitor 1 Formic Acid 000064-18- Prevents the corrosion of the pipe Corrosion Inhibitor 6 Acetaldehyde 000075-07- Prevents the corrosion of the pipe Corrosion Inhibitor 0 Petroleum Distillate 064741-85- Carrier fluid for borate or zirconate crosslinker Crosslinker 1 Hydrotreated Light 064742-47- Carrier fluid for borate or zirconate crosslinker Crosslinker Petroleum Distillate 8 Potassium Metaborate 013709-94- Maintains fluid viscosity as temperature Crosslinker 9 increases Triethanolamine 101033-44- Maintains fluid viscosity as temperature Crosslinker Zirconate 7 increases Sodium Tetraborate 001303-96- Maintains fluid viscosity as temperature Crosslinker 4 increases Boric Acid 001333-73- Maintains fluid viscosity as temperature Crosslinker 9 Increases Zirconium Complex 113184-20- Maintains fluid viscosity as temperature Crosslinker 6 increases Borate Salts N/A Maintains fluid viscosity as temperature Crosslinker Increases Ethylene Glycol 000107-21- Product stabilizer and / or winterizing agent. Crosslinker 1 Methanol 000067-56- Product stabilizer and / or winterizing agent. Crosslinker 1 Polyacrylamide 009003-05- "Slicks" the water to minimize friction Friction Reducer 8 Petroleum Distillate 064741-85- Carrier fluid for polyacrylamide friction reducer Friction Reducer 1 Hydrotreated Light 064742-47- Carrier fluid for polyacrylamide friction reducer Friction Reducer Petroleum Distillate 8 Methanol 000067-56- Product stabilizer and / or winterizing agent. Friction Reducer 1 Ethylene Glycol 000107-21- Product stabilizer and / or winterizing agent. Friction Reducer 1 Guar Gum 009000-30- Thickens the water in order to suspend the sand Gelling Agent 0 Petroleum Distillate 064741-85- Carrier fluid for guar gum in liquid gels Gelling Agent 1 Hydrotreated Light 064742-47- Carrier fluid for guar gum in liquid gels Gelling Agent Petroleum Distillate 8 Methanol 000067-56- Product stabilizer and / or winterizing agent. Gelling Agent 1 Polysaccharide Blend 068130-15- Thickens the water in order to suspend the sand Gelling Agent 4 Ethylene Glycol 000107-21- Product stabilizer and / or winterizing agent. Gelling Agent 1 Citric Acid 000077-92- Prevents precipitation of metal oxides Iron Control 9 Acetic Acid 000064-19- Prevents precipitation of metal oxides Iron Control 7 Thloglycolic Acid 000068-11- Prevents precipitation of metal oxides Iron Control 1 Sodium Erythorbate 006381-77- Prevents precipitation of metal oxides Iron Control 7 Lauryl Sulfate 000151-21- Used to prevent the formation of emulsions in Non-Emulsifier 3 the fracture fluid Isopropanol 000067-63- Product stabilizer and / or winterizing agent. Non-Emulsifier 0 Ethylene Glycol 000107-21- Product stabilizer and / or winterizing agent. Non-Emulsifier 1 Sodium Hydroxide 001310-73- Adjusts the pH of fluid to maintains the pH Adjusting Agent 2 effectiveness of other components, such as crosslinkers Potassium Hydroxide 001310-58- Adjusts the pH of fluid to maintains the pH Adjusting Agent 3 effectiveness of other components, such as crosslinkers Acetic Acid 000064-19- Adjusts the pH of fluid to maintains the pH Adjusting Agent 7 effectiveness of other components, such as crosslinkers Sodium Carbonate 000497-19- Adjusts the pH of fluid to maintains the pH Adjusting Agent 8 effectiveness of other components, such as crosslinkers Potassium Carbonate 000584-08- Adjusts the pH of fluid to maintains the pH Adjusting Agent 7 effectiveness of other components, such as crosslinkers Copolymer of Acrylamide 025987-30- Prevents scale deposits In the pipe Scale Inhibitor and Sodium Acrylate 8 Sodium Polycarboxylate N/A Prevents scale deposits in the pipe Scale Inhibitor Phosphonic Acid Salt N/A Prevents scale deposits in the pipe Scale Inhibitor Lauryl Sulfate 000151-21- Used to Increase the viscosity of the fracture Surfactant 3 fluid Ethanol 000064-17- Product stabilizer and / or winterizing agent. Surfactant 5 Naphthalene 000091-20- Carrier fluid for the active surfactant Ingredients Surfactant 3 Methanol 000067-56- Product stabilizer and / or winterizing agent. Surfactant 1 Isopropyl Alcohol 000067-63- Product stabilizer and / or winterizing agent. Surfactant 0 2-Butoxyethanol 000111-76- Product stabilizer Surfactant 2 Retrieved Jan.7,2014 at http://fracfocus.org/chemical-use/what-chemicals-are-used YOU CHOOSE ! This... iiiiiiiiiirmillino Mr,'-;-, t:i -11T-: - ,41,.. -„--16._.....ow ...or this? 4. F-, ��•1''•,.,.'S-_..∎ _ `1++r IF,' - tom •••.. -0. C.:)4...111 ' lb r,} NO RRA CKING WAY! The Contract — William Ayot A word from the led And in the end we follow them not because we are paid, not because we might see some advantage, not because of the things they have accomplished, not even because of the dreams they dream but simply because of who they are: the man, the woman, the leader, the boss, standing up there when the wave hits the rock, passing out faith and confidence like life jackets, knowing the currents, holding the doubts, imagining the delights and terrors of every landfall; captain, pirate, and parent by turns, the bearer of our countless hopes and expectations. We give them our trust. We give them our effort. What we ask in return is that they stay true. O �"- _ ,_- • . t .' •-w +. . L - -. 1 f _ fit't litr y • ♦ or * i ~ ` S 4111' '.icy •TL y Y e --V - r 1•t.•K. ' a , _. _ i -0... - r_• ,�, �n _:, ;,: t', L^ Freshwater Aquifier ' "- . ., . i' •� ,may - � � `��.� off t. I.L, 411111111.. . 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P.. . . . . .. • • • . v . http://one.gaslandthemovie.com/img/themed/frontenclistill-gaslandjpg 2/25/2014 C-) Page 1 of 1 What is fracking? Hydraulic frackring,or tracking,is a method of foram)natural gas or oil from rock layer deep below tie Earth's surface ...and why it's controversial How(racking works... Much of the water used in tracking is collected torn el A pressurized mixture A The recovered water is !hewed and processed.but some corms/ties of sand,water and stored in fried pits or have ram concerns that potentialy carcinogenic chemicals is injected into taken to a treatment plant c herncals can escape nto ttnkrig water a horizontally dried wet. Ink ► Nearby water vials face a slight risk ®The ma cracks the shale Holding of contamination.(There's about a and fits the cracks with tanks 1%chance of a hydraulic fracture sandy grit allawng natural extending beyond 1.150 feet of a gas to flow up the well fracture zone.'1 r 4. 1._. ``\ 1111,,p0 , __ 1/4‹. is_ , 1...i (TZ4 1 AiL, - ._ Fracture •} Bedrock - WeIIr- Natural gas flows into well A _ _ well casings can crack Ni; Water.sand and leak and r.ran dternicals cal rnlx Shale lo Environmentalists fear that cracks 1-Based on research pub-rch created by tracking can spread to fished tits yearn Marne and '-'* ex hg cracks in the rock layer and Petroleum Geology • beanie pathways to ground water- Sarcesu Duke University iversity, U S Energy Infcmlation Administration;National Research Council;Atanne and Petrdelnn Geology By Dan Vergano and Karl Genes,USA TODAY http:.-'i.usatoday.netf news/graphics/2012/0625-fracking%20graphic/fracking-graphic.jpg 2/25/2014 Page l of 1 STATEIMPACT PENNSYLVANIA WHERE WATER FOR FRACKING COMES FROM Hydraulic fracturing uses a lot of water. How much? That depends largely upon the type of geological formation being fractured. In Pennsylvania, the agency that regulates how much water can be taken from the Susquehanna River Basin says the average amount of water used per well is 4.4 million gallons- The bulk of that total is for the tracking process, which typically takes two to five days. But that's not all that goes into the ground to (rack a well. Here's what constitutes "tracking fluid" in an average unconventional shale gas well in the Susquehanna River Basin. What goes underground? Recycled Fluid 15% 2% Proppants and Flowback and treated wastewater Chemicals from previously tracked wells Proppants are sand Public Water Systems 20% • material that keeps Water purchased from bedrock fractures open public water utilities to allow gas to flow out 4.4million Surface Water gallons Chemicals are used to Withdrawal 63% per well dissolve minerals, kill Water taken from rivers and bacteria, thicken the streams requiring permission fluid. prevent corrosion from the Susquehanna River of pipe, and otherwise Basin Commission aid the (racking process How much is 4.4 million gallons of water? What 11,000 American — Amount of fluid needed to Enough to fill six Olympic families use in a day = drill and fracture one well — size swimming pools • • • 3k- JIM Lt _:. • r.tr,l = J J IA1 - _W CN1v1El TAL • I . `r'.. . _ - -.h.('T http://stateimpact.npr.org/pennsylvania/ffles/2013/03/frackwater-FINAL.jpg 2/23/2014 Exxon Chief Joins Lawsuit Raising Ruckus Over Fracking BY DANIEL GILBERT The company "has no involve- that the company had promised ment in the legal matter"and its them it wouldn't build a tower BARTONVILLE, Texas—One directors weren't told of Mr.Til- near their properties.They also evening last November, a tall, lerson's participation, the 4 filed a brief in support of the white-haired man turned up at a spokesman said. !I; town's appeal. Town Council meeting to protest The dispute goes beyond pos- I r Last March,an appellate judge construction of a water tower sible nuisances related to frack- I) reversed the district judge's deci• near his home in this wealthy ing. Among the issues raised: 14 11 sion saying he had overstepped community outside Dallas. whether a water utility has to his jurisdiction and sent the case The man was Rex Til- obey local zoning ordi lerson, chairman and .4.f. '" nances and what are back to the lower court,where it it is pending. chief executive of Exxon the rights of residents I Meanwhile, the utility has Mobil Corp. who relied on such laws reached out to Bartonville voters, He and his neighbors , In making multi-mil- who in November elected two had filed suit to block t • • ;, lion-dollar property in- members to the council who crit- the tower,saying it is il- ` ,, vestments. The latter .g icized the town's fight against legal and would create t p point was the focus of the tower. "a noise nuisance and Mr. Tillerson's corn- i "The council is currently eval- traffic hazards,"in part A./ ' rnents at the November . • ___tA uating all options," said Bill because it would pro- council meeting. . ' Scherer,Bartonville's mayor pro vide water for use in hy- The tower would be ',...4!" -- r y..%4", �'�, a tern. draulic fractuiing. Rex Tillerson almost 15 stories tall, Some Bartonville residents oppose this mostly built water tower,partly because It could bring f racking-related traffic In the wake of the election, Fracking,which requires adjacent to the 83-acre — Mr. Tillerson was among those heavy trucks to haul and pump horse ranch Mr.Tillerson and his by Cross Timbers Water Supply becoming America's biggest gas who lined up in a windowless massive amounts of water, un- wife own and a short distance Corp.,a nonprofit utility that has 10 producer. hall to address the council. He locks oil and gas from dense rock from their 18-acre homestead. supplied water to the region for XTO drills and fracks hun- told officials that he and his wife and has helped touch off a surge Mr.Tillerson sat for a three-hour half a century. Proposed ry• Cross Timbers water TEXAS dreds of shale wells a year,and settled in Bartonville to enjoy a in U.S.energy output. deposition in the lawsuit last says that it is required by state tower slte ` the Exxon unit has said it recy- rural lifestyle and invested mil- 1 It also is a core part of May,attended an all-day media- law to build enough capacity to Bartonville des water and ships it on pipe- lions in their property after sat- Exxon's business, tion session in September and serve growing demand. ' lines where feasible, in part to isfying themselves that nothing While the lawsuit Mr. Tiller- has spoken out against the tower "We're a high water-usage reduce truck traffic. would be built above their tree son joined cites the side effects during at least two Town Council area,"said utility President Pat- ! In 2011, Bartonville denied line, according to the council's of fracking,a lawyer represent- meetings,according to public re- rick McDonald. "People have r k:., Cross Timbers a permit to build audio recording of the meeting. ing the Exxon CEO said he hadn't cords and people involved with large lots, lawns, horses,cattle, Fort l+ilorth' - ' the water tower,saying the loca- Allowing the tower in defi- complained about such distur- the case. goats,swimming pools,gardens," ' 1', tion was reserved for residences. ance of town ordinances could bances."I have other clients who The Exxon chief isn't the most he said. Cross Timbers said it j4, The water company sued,argu- open the door to runaway devel- were concerned about the poten- vocal or well-known opponent of would sell leftover supplies to me wall street Journal ,` ing that it is exempt from mu- opment and might prompt him tial for noise and traffic prob- the tower. He and his wife are energy companies during months nicipal zoning because of its sta- to leave town,Mr.Tillerson told lems, but he's never expressed suing with three other couples. when overall demand is low. tus as a public utility. the council. "I cannot stay in a that to me or anyone else,"said The lead plaintiffs are former Bartonville's population has the Tillerson home,according to In May 2012, a state district place,"he said, "where I do not Michael Whitten, who runs a U.S House Majority Leader Dick increased almost 50% since Texas records, court judge agreed with Cross know who to count on and who small law practice in Denton, Armey and his wife, who have 2000,to about 1,600,according The last to do so was XTO En- Timbers and compelled the town not to count on." Texas. Mr.Whitten said Mr.Til- become fixtures at Town Council to U.S.figures. ergy Inc., in August 2009, ac- to issue a permit.The utility re- lerson's primary concern is that meetings, Mr. Tillerson, 61 years old, cording to Texas regulators.Mr. sumed construction as the town his property value would be Mr. Whitten,who also repre- moved to Bartonville in 2001 and Tillerson had just begun talks for appealed the decision. Online)) harmed, cents the Armeys, said they de- became CEO in 2008.Since 2007, Exxon to acquire XTO. Four Later that year, the Armeys, listen to Exxon's CEO at a town An Exxon spokesman said Mr. dined to comment. companies have fracked at least months later, Exxon swallowed the Tillersons and their co-plain- meeting on the water tower and see Tillerson declined to comment. The wa er tower is being built nine shale wells within a mile of its smaller rival for$25 billion, tiffs sued Cross Timbers,saying court papers at WSJ , (ki cS ,t1.0.12..1... . 03---" . 0T-14 (9. / c9.0 / /1