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N.C. Department of Environment and Natural Resources

NC Department of Environment and Natural Resources
Guest - Shale Gas

Guest

Shale Gas

Overview / Introduction

shale gas headThe N.C. Geological Survey, housed in the Department of Environment and Natural Resources, has concluded that a commercially viable reserve of natural gas may underlie parts the Triassic basins of North Carolina. Technically recoverable gas is thought to exist in the Sanford sub-basin (including Lee, Chatham and Moore counties) and possibly the Dan River sub-basin (including Stokes and Rockingham counties). Further information on the geologic survey assessment can be found here. A number of factors, including increased interest in non-conventional energy sources; access to existing natural gas pipelines in the area; and energy demand from nearby industries and utilities could make this potential reserve a target for exploration and development.

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Current technology allows “shale gas” to be recovered from shale formations with a high organic content. Modern exploration and gas production technology, such as horizontal drilling and hydraulic fracturing, has enabled the extraction of shale gas in similar formations in other states. Hydraulic fracturing, also known as hydrofracking or fracking, is a process used to stimulate production of natural gas from shale or other impermeable rock formations. The process involves drilling a well into rock that contains natural gas; injecting fluids under pressure to fracture the rock; and extracting the natural gas from the fractures that are created.

North Carolina’s laws (Article 27, G.S. 113-378 through 113-423) regulating oil and gas exploration and production are dated and do not address the technologies commonly used in shale gas exploration and production, such as horizontal drilling and hydraulic fracturing. Additional information on the current regulations involved can be found here.

While development of this resource could be an economic benefit to North Carolina, other states have found that shale gas production also has impacts that need to be carefully managed. The possible environmental impacts of shale gas exploration include the use of high volumes of water during drilling; potential contamination of groundwater aquifers by chemicals, water or wastewater during drilling or hydraulic fracturing of the shale layers; clearing of access roads and the drilling area; and storage of chemicals used in the process.

Over the next few months, DENR will be conducting a study of the potential environmental and economic impacts of shale gas exploration and development in North Carolina in response to Session Law 2011-276 (House Bill 242). The law directs DENR to study the issue of oil and gas exploration in the state, and to specifically focus on the use of directional and horizontal drilling and hydraulic fracturing for that purpose. During the study, DENR will conduct at least two public meetings in the area of the state where exploration for natural gas through directional/horizontal drilling and hydraulic fracturing may occur. The department’s proposed outline for this study can be found here.
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