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Minutes - 2015 - City Council - 10/20/2015 - SpecialEAGLE CITY COUNCIL Special Meeting Minutes October 20, 2015 1. CALL TO ORDER: Mayor Reynolds calls the meeting to order at 6:00 p.m. 2. ROLL CALL: MCFARLAND, BUTLER, KUNZ, RIDGEWAY. All present. A quorum is present. 3. INFORMATION SHARING REGARDING HYDRAULIC FRACTURING Commonly referred to as "fracking ", hydraulic fracturing involves the use of water pressure to create fractures in rock that allow the oil and natural gas it contains to escape and flow out. The oil and natural gas is drawn up to a well on the surface, where it is processed and refined for market. Please note there are no current or pending applications at this time that have been submitted to the City of Eagle that pertain to this subject matter. The developing law is not entirely clear on what role the City of Eagle might play, if any, in the regulation of fracking. Presentations will be made by representatives from Citizens Allied for Integrity and Accountability (CAIA), and the Idaho Petroleum Council. Each will be allotted a maximum of (30) minutes to provide information on the subject of hydraulic fracturing in Idaho and/or the City of Eagle. There will be no opportunity for rebuttal at tonight's meeting. Representatives are welcome to contact members of the public at the conclusion of the meeting to further exchange information. The general public will have the opportunity to comment on the information that has been provided. Three (3) minutes will be allowed for individual comment. Mayor introduces the issue and reads the above paragraphs into the record. Mayor leads the Pledge of Allegiance. City Attorney Paul Turcke provides a legal overview of the State Statutes. This is an evolving area of law. General discussion. Shelly Brock 8770 W. Chapparal Rd. Eagle, Idaho, Citizens Allied for Integrity and Accountability (CAIA), we are the only organization currently fighting for our private property rights. Displays a power point presentation and discusses the same. Alma Hasse, Citizens Allied for Integrity and Accountability (CAIA), we founded CAIA because we felt there needed to be an organization to protect property rights. Displays a power point presentation and discusses the same. Paul Powell, 13061 N. Andys Gulch Road Boise, Idaho (Hidden Springs) I am Vice - President of the Idaho Petroleum Council, our goal is to have consistent regulations across states and to be a resource for municipalities and the public. We do not have any leases, wells or operations in the State of Idaho. Plays a video. Displays a power point presentation and discusses the same. page I KAC0UNCII.\MR4=S \Temporary Mimtes Work Area \CC- 10- 20- 15min.doc Public Comment. Ken Baker, I would like to know how much the gas and oil industries are going to set aside to take care of issues caused by the drilling. Tom Cervino, 2773 N. Tanglerose Place Eagle, Idaho with Alta Mesa is financially unstable and they just sold some assets to cover debts. They may not move forward too much because of their finances. Reads sections of Idaho Code which address ordinances and public safety. Laura O'Gara, 1228 E. Prairie View Drive Eagle, Idaho. We elected you to keep us informed and educated. We don't want fracking here. Mike Olsen 1905 N. Valli Bello Way Eagle, ID, property rights were not mentioned in the presentation. Kathryn Maslac 4028 N. Donavan Way Meridian, discusses the chemicals and the percentage of chemicals that are not recovered. The chemicals that are not recovered are there forever. Mark Waterman, I would like to just mention what value our legislatures have put on our water resources in the valley. Discusses earthquakes as a result of fracking and how that would impact our area and the state. Alan Maslac, 4028 N. Donavan Way, Meridian, discusses the unintended consequences of fracking. Most of the concerns that we are hearing are new. What is happening now that was not happening decades ago? Rick Murphree, the City, Council People and Mayor, it is your job to protect us from the State. Whether or not it is safe or unsafe is beside the point at this time. Barb Jekel, on PBS there is a show Democracy Now that had a show on the earthquakes in Oklahoma. He didn't have any actual photos of recovered property it was more like a cartoon. Discusses the drilling fields in Oklahoma. Naomi Preston 380 E. Trailside Dr. Eagle,Idaho how many wells are currently in Payette County? Response from CAIA representative: 17. When is the other meeting? Response from CAIA representative: November 4t' at 7:00 pm at Eagle High School. John Franden 2300 Buckskin Ct. Eagle, Idaho, this is much more technical that I understand. I would like to suggest a working group that would consist of the City of Eagle, Ada County, ACHD, the Idaho Department of Lands, and the Idaho Petroleum Council. It is important to get ahead of the curve. Melvin Satterwhite 1628 N. Moorland Place Eagle, Idaho I didn't hear anything about how they are going to contain the liquid that comes out. There is always contamination. Mayor: this concludes the Public Testimony. Council discussion on the formation of a working group to explore the issue. Page 2 KACOUNCIUMINUTESUempormy Mirutes Work Area \CC- 10- 20- 15min.doc ADJOURNMENT: Mayor Reynolds adjourns the meeting at 7:30 p.m. �.�.� ON'9G< Respectfully submitted: ' �' o�Q O R.1. SEAL SHARON K. BERGMANN 3,• rAg p CITY CLERK/TREASURER •••••q OF n?` APPROVED: Xf fw�� 1' AMES ZD. RE .DS MAYOR AN AUDIO RECORDING OF THIS MEETING IS AVAILABLE FOR DOWNLOAD AT WWW.CITYOFEAGLE.ORG. Page 3 K `•COUNCIUMINUTE&Temporary Minutes Work Area \CC- 10- 20 -15mm doc IDAHO PETROLEUM COUNCIL EAGLE CITY COUNCIL OCTOBER 20, 2015 Idaho Petroleum Council • The Idaho Petroleum Council is comprised of industry leaders representing oil and gas exploration, production and development, transportation, and power productio in Idaho. • Our goal is to ensure that Idaho's regulatory framework i consistent with other operating states and exemplifies best practices of the industry. • IPC acts as a resource to elected officials and policy makers, the media, and communities. What Phase is Idaho in? • Exploration • Land Rush • Commercial Production • Geologic Assessment • Expand Development and Infrastructure • Competition and Maturity It's all in the Rocks! • Hydrocarbons found in Sedimentary Rock ® Sandstone vs. Shale • Porosity, Permeability and natural fractures ® Drainage Area • Drilling and Completion techniques ■ Conventional vs Unconventional Development • Ultimately it's Economics New Industry raises many Questio • Hydraulic Fracturing — "Horizontal Fracking" • Water quality • Integration or Forced Pooling • Split Estate • Property values 0 Mortgages • Earthquakes HYDRAULIC FRACTURIN What is Hydraulic Fracturing? • It is not a "drilling technique" • Hydraulic pressure is applied to the rock to the point of rock failure and the rock fractures * A propping agent like sand is pumped into the fracture • The high permeability fracture provides a high productivity conduit to the wellbore .... ,T. • ne:e. t% • ........... • u•,••••••••••:.%• Proppant in fracture wings Wellbore 1 1 • Well stimulation can be traced back to the 1860s • First HF experimental use in 1947 Hugoton Field in SW Kansas • Commercial "Hydrafrac" use began in 1949 in TX and OK • Currently more than 1.2 million wells completed with hydraulic fracturing • More than 90% of all oil and gas wells are fracked • Only recently has the term "fracking" entered the Iic's vocabular Typical HF Fluids • 99.5% water and sand • Remaining 0.5% is comprised of many typical household chemicals • Additive concentrations are very low. o Typically 0.25 to 2 gallons/1000 gallons FracFocus.org A FLUID SITUATION • • TYPICAL SOLUTIONY USED IN HYDRAULIC FRACTURING 0.49% ADDITIVES{ .1 . 0.06% 0.088% 0..22�.^^srld.onrhrl u1Ja. OS VA teNI.n. Opal 1% )./4naab.err.a.b.wr .011% On average, 99.5% of fracturing fluids are comprised of freshwater and compounds are injected Into deep shale gas formations and are typically confined by many thousands of feet or rock layers S.'unr OC}f. GWFiM ce"Las Snail S*abnaln's.n :vane.: Sloe R!"v( 009: AQb lu4nldalym 5od1.1nl QYond. N,n.ObtIWInamamdd. Saab. pals Poyaaylaln d P.trdaanatdltalvs YLl son Qalcl.", Pcasaumddodde Ammaaumasu@u Sddlllmorpotasshm caraanae Hays aixon•mhmla ane Id/Ma fMure In rock Ip rualrtu NI El Ira natmbaaaN h m.wrr Alms a 6alaya] IX0X Gown a Naga parrot chairs Rawls the conalanallt OF. Aulrtalra nus vlscalty s temparamro Incr.'s Mhlmns mdtanbarman Ne and pp. and 0.123% 'S10e trowaMI toMnhalo maron 1110amme water miurpard IM fall ncwam prwp=tkn ct magi cella than" a 0 antreftUd amain ceyg.n from ttnwa.r prdaa m. pipc. fmma roaan Maintains ma .IRahwaaas rl ams/ comp prongs, sicca a OU slams Nkws the ft.= toremaln cp.n parts gas ca sacs Re9.nn scab. d.pDl* no. pp. USW 10 r.0.1/0 IM'Mtc1lly alba traaura Nd SNmmng pad don* pstn.mnt RfAltmrrcr mW oI and drma agutmrm ratasSat utcd In phamac etolc adirk RVR IIC puma mad In horclry daag.rt4 kind soaps lac naaucs Waterlraanner* sal mrad1Gler Matv-upremwer,12v2m0, dna anry lhlawn, road In m'Jnalq tamd goods, lm lac.%torts. paslq saucas,and am drmang road aedllve:bod and bowra)x; lemon juts IDs sodlun lade saft 0.1111W ca.srvu , rood and btu crap pmcaalrg water tnarmrrt waning soca d.ter9.na tole *Mir =Tina( glass and marts wtAng watermradaA puyvna Aun0mdvo melbas.. Mlandd clardi ; dekhg, and caulk Glass Owns/. ant panplrnt .m Mlroda titENERGYIN ,=f7T1-I I11II111I 1.1!111111 II1.1IIIl!I1.11I1. �.. I."I`-I:::I:7:1:::1 .:I:::I:•:1 i:li::l l::..................................................................., So it's only used for oil and natura gas, right? ad 7r. *;i.;x.t. • Stimulating flow from some water wells • Bringing Geothermal wells into commercial viability • EPA has used fracking as a remediation tool for cleaning up Superfund sites. +.i America's Top Regulators Tout Safety of Hydraulic Fracturing • Gina McCarthy, EPA Administrator: "There's nothing inherently danger in fracking that sound engineering practices can't accomplish." • Lisa Jackson, former EPA Administrator: "I'm not aware of any proven ca where the fracking process itself has affected water." • Sally Jewell, Secretary of the Interior: "Fracking has been done safely for decades. There is no doubt that this essential tool will be used for decade,: „yt to come." • Ken Salazar, former Secretary of the Interior: "I would say to everybody that hydraulic fracking is safe." • Ernest Moniz, Secretary Department of Energy: "I still have not seen any evidence of fracking per se contaminating groundwater." • The EPA has affirmed repeatedly during the Clinton, Bush and Obama administrations that there have been no documented cases of contamination of drinking water from hydraulic fracturi A FLUI SITUATION: TYPICAL SOLUTION USED IN HYDRAULIC FRACTURING 0.49% ADDITIVES* On average, 99.5% of fracturing fluids are comprised of freshwater and compounds are injected into deep shale gas formations and are typically confined by many thousands of feet or rock layers. 'NA", OCE .ot ,, cup, Shod, ',7, I,nrra irrm , Potassium, chloride 0.06% Isopropanol 0.085% -- Petroleum distillate /' 0.088% Guar gum/Hydroxyethyl cellulose 0.056% Ethylene glycol 0.043% And / Sodium/Potasssum carbonate 0.011% Sodium chloride 0.01% Borate salts -0.007% \Citric acid 0.004% N,n-d,methy formamide 0.002% Glutaraldehyde 0.123% 0.001% Compound* Purpose Common application Acids Helps dissolve minerals and Initiate fissure in rock (pre -fracture) Glutaraldehyde LEliminates bacteria In the water Sodium Chloride I Allows a delayed break down of the gel polymer chains N, n -Dimethyl formamide Prevents the corrosion of the pipe Borate salts Polyacrylamide Petroleum distillates Guar gum Citric Acid Potassium chloride Ammonium bisulfite Maintains fluid viscosity as temperature increases Minimizes friction between fluid and pipe "Slicks' the water to minimize friction Swimming pool cleaner Disinfectant; Sterilizer for medical and dental equipment Table Salt Used in pharmaceuticals, acrylic fibers and plastics Used in laundry detergents, hand soaps and cosmetics Water treatment, soil conditioner Make-up remover, laxatives, and candy I Thickens the water to suspend the sand Prevents precipitation of metal oxides Thickener used in cosmetics, baked goods, ice cream, tooth- paste, sauces, and salad dressing Food additive; food and beverages, lemon Juice Creates a brine carrier fluid Low sodium table salt substitute Sodium or potassium carbonate Proppant Ethylene glycol isopropanol Removes oxygen from the water to protect the pipe from corrosion Maintains the effectiveness of other components, such as crosslinkers Allows the fissures to remain open so the gas can escape Prevents scale deposits in the pipe Used to increase the viscosity of the fracture fluid Cosmetics, food and beverage I processing, water treatment Washing soda, detergents, soap, water softener, glass and ceramics Drinking water filtration, play sand Automotive antifreeze, household cleansers, deicing, and caulk Glass cleaner, antiperspirant, and hair color ENERGYIN IDAHO PETROLEUM COUNCIL EAGLE CITY COUNCIL OCTOBER 20, 2015 Idaho Petroleum Council • The Idaho Petroleum Council is comprised of industry leaders representing oil and gas exploration, production and development, transportation, and power productio in Idaho. • Our goal is to ensure that Idaho's regulatory framework i consistent with other operating states and exemplifies best practices of the industry. • IPC acts as a resource to elected officials and policy makers, the media, and communities. What Phase is Idaho in? • Exploration • Land Rush • Commercial Production • Geologic Assessment • Expand Development and Infrastructure • Competition and Maturity It's all in the Rocks! • Hydrocarbons found in Sedimentary Rock ® Sandstone vs. Shale • Porosity, Permeability and natural fractures ® Drainage Area • Drilling and Completion techniques ■ Conventional vs Unconventional Development • Ultimately it's Economics New Industry raises many Questio • Hydraulic Fracturing — "Horizontal Fracking" • Water quality • Integration or Forced Pooling • Split Estate • Property values 0 Mortgages • Earthquakes HYDRAULIC FRACTURIN What is Hydraulic Fracturing? • It is not a "drilling technique" • Hydraulic pressure is applied to the rock to the point of rock failure and the rock fractures * A propping agent like sand is pumped into the fracture • The high permeability fracture provides a high productivity conduit to the wellbore .... ,T. • ne:e. t% • ........... • u•,••••••••••:.%• Proppant in fracture wings Wellbore 1 1 • Well stimulation can be traced back to the 1860s • First HF experimental use in 1947 Hugoton Field in SW Kansas • Commercial "Hydrafrac" use began in 1949 in TX and OK • Currently more than 1.2 million wells completed with hydraulic fracturing • More than 90% of all oil and gas wells are fracked • Only recently has the term "fracking" entered the Iic's vocabular Typical HF Fluids • 99.5% water and sand • Remaining 0.5% is comprised of many typical household chemicals • Additive concentrations are very low. o Typically 0.25 to 2 gallons/1000 gallons FracFocus.org A FLUID SITUATION • • TYPICAL SOLUTIONY USED IN HYDRAULIC FRACTURING 0.49% ADDITIVES{ .1 . 0.06% 0.088% 0..22�.^^srld.onrhrl u1Ja. OS VA teNI.n. Opal 1% )./4naab.err.a.b.wr .011% On average, 99.5% of fracturing fluids are comprised of freshwater and compounds are injected Into deep shale gas formations and are typically confined by many thousands of feet or rock layers S.'unr OC}f. GWFiM ce"Las Snail S*abnaln's.n :vane.: Sloe R!"v( 009: AQb lu4nldalym 5od1.1nl QYond. N,n.ObtIWInamamdd. Saab. pals Poyaaylaln d P.trdaanatdltalvs YLl son Qalcl.", Pcasaumddodde Ammaaumasu@u Sddlllmorpotasshm caraanae Hays aixon•mhmla ane Id/Ma fMure In rock Ip rualrtu NI El Ira natmbaaaN h m.wrr Alms a 6alaya] IX0X Gown a Naga parrot chairs Rawls the conalanallt OF. Aulrtalra nus vlscalty s temparamro Incr.'s Mhlmns mdtanbarman Ne and pp. and 0.123% 'S10e trowaMI toMnhalo maron 1110amme water miurpard IM fall ncwam prwp=tkn ct magi cella than" a 0 antreftUd amain ceyg.n from ttnwa.r prdaa m. pipc. fmma roaan Maintains ma .IRahwaaas rl ams/ comp prongs, sicca a OU slams Nkws the ft.= toremaln cp.n parts gas ca sacs Re9.nn scab. d.pDl* no. pp. USW 10 r.0.1/0 IM'Mtc1lly alba traaura Nd SNmmng pad don* pstn.mnt RfAltmrrcr mW oI and drma agutmrm ratasSat utcd In phamac etolc adirk RVR IIC puma mad In horclry daag.rt4 kind soaps lac naaucs Waterlraanner* sal mrad1Gler Matv-upremwer,12v2m0, dna anry lhlawn, road In m'Jnalq tamd goods, lm lac.%torts. paslq saucas,and am drmang road aedllve:bod and bowra)x; lemon juts IDs sodlun lade saft 0.1111W ca.srvu , rood and btu crap pmcaalrg water tnarmrrt waning soca d.ter9.na tole *Mir =Tina( glass and marts wtAng watermradaA puyvna Aun0mdvo melbas.. Mlandd clardi ; dekhg, and caulk Glass Owns/. ant panplrnt .m Mlroda titENERGYIN ,=f7T1-I I11II111I 1.1!111111 II1.1IIIl!I1.11I1. �.. I."I`-I:::I:7:1:::1 .:I:::I:•:1 i:li::l l::..................................................................., So it's only used for oil and natura gas, right? ad 7r. *;i.;x.t. • Stimulating flow from some water wells • Bringing Geothermal wells into commercial viability • EPA has used fracking as a remediation tool for cleaning up Superfund sites. +.i America's Top Regulators Tout Safety of Hydraulic Fracturing • Gina McCarthy, EPA Administrator: "There's nothing inherently danger in fracking that sound engineering practices can't accomplish." • Lisa Jackson, former EPA Administrator: "I'm not aware of any proven ca where the fracking process itself has affected water." • Sally Jewell, Secretary of the Interior: "Fracking has been done safely for decades. There is no doubt that this essential tool will be used for decade,: „yt to come." • Ken Salazar, former Secretary of the Interior: "I would say to everybody that hydraulic fracking is safe." • Ernest Moniz, Secretary Department of Energy: "I still have not seen any evidence of fracking per se contaminating groundwater." • The EPA has affirmed repeatedly during the Clinton, Bush and Obama administrations that there have been no documented cases of contamination of drinking water from hydraulic fracturi A FLUI SITUATION: TYPICAL SOLUTION USED IN HYDRAULIC FRACTURING 0.49% ADDITIVES* On average, 99.5% of fracturing fluids are comprised of freshwater and compounds are injected into deep shale gas formations and are typically confined by many thousands of feet or rock layers. 'NA", OCE .ot ,, cup, Shod, ',7, I,nrra irrm , Potassium, chloride 0.06% Isopropanol 0.085% -- Petroleum distillate /' 0.088% Guar gum/Hydroxyethyl cellulose 0.056% Ethylene glycol 0.043% And / Sodium/Potasssum carbonate 0.011% Sodium chloride 0.01% Borate salts -0.007% \Citric acid 0.004% N,n-d,methy formamide 0.002% Glutaraldehyde 0.123% 0.001% Compound* Purpose Common application Acids Helps dissolve minerals and Initiate fissure in rock (pre -fracture) Glutaraldehyde LEliminates bacteria In the water Sodium Chloride I Allows a delayed break down of the gel polymer chains N, n -Dimethyl formamide Prevents the corrosion of the pipe Borate salts Polyacrylamide Petroleum distillates Guar gum Citric Acid Potassium chloride Ammonium bisulfite Maintains fluid viscosity as temperature increases Minimizes friction between fluid and pipe "Slicks' the water to minimize friction Swimming pool cleaner Disinfectant; Sterilizer for medical and dental equipment Table Salt Used in pharmaceuticals, acrylic fibers and plastics Used in laundry detergents, hand soaps and cosmetics Water treatment, soil conditioner Make-up remover, laxatives, and candy I Thickens the water to suspend the sand Prevents precipitation of metal oxides Thickener used in cosmetics, baked goods, ice cream, tooth- paste, sauces, and salad dressing Food additive; food and beverages, lemon Juice Creates a brine carrier fluid Low sodium table salt substitute Sodium or potassium carbonate Proppant Ethylene glycol isopropanol Removes oxygen from the water to protect the pipe from corrosion Maintains the effectiveness of other components, such as crosslinkers Allows the fissures to remain open so the gas can escape Prevents scale deposits in the pipe Used to increase the viscosity of the fracture fluid Cosmetics, food and beverage I processing, water treatment Washing soda, detergents, soap, water softener, glass and ceramics Drinking water filtration, play sand Automotive antifreeze, household cleansers, deicing, and caulk Glass cleaner, antiperspirant, and hair color ENERGYIN