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Minutes for HB2641 - Committee on Water and Environment
Short Title
Providing disposal limits for fluids produced from oil and gas operations to reduce induced seismic activity.
Minutes Content for Thu, Feb 15, 2018
The Chair opened the hearing on HB2641. Revisor Nick Myers reviewed the bill (Attachment 14). He stated that the bill would impose a daily limit (8000 barrels per day) on the amount of fluids produced from oil and gas operations that could be disposed into a class II injection disposal well.
Proponents
Zach Pistora, Kansas Sierra Club, testified as a proponent, saying that man-made earthquakes from the oil and gas industry injection of wastewater fluids are causing property damage across the state. He commended the KCC's action to regulate injection wells in south-central Kansas, but now earthquakes are being triggered outside the regulated zone. Thus this bill is necessary (Attachment 15). He provided photographs to illustrate damage to citizens' property.
Lori Lawrence, a citizen of Wichita, related how much money she has spent repairing her home from earthquake damage (Attachment 16).
Cindy Hoedel, Matfield Green, cited scientific research as evidence that earthquakes have increased across the state and that the current regulatory system is no longer effective (Attachment 17a). She recommended a fund paid by Class II injection well permit applicants, reforms to Class II permit regulations, a citizen's advisory board, and a moratorium on Class II well permits. She also provided a Sierra Club proposal (Attachment 17b).
Elexa Dawson, Emporia, testified that Kansas has the third largest Class II injection program with more than 16,000 enhanced oil recovery and wastewater injection wells, a fact that leads to the conclusion that high-pressure injection causes earthquakes(Attachment 18).
The following individuals provided written-only testimony in support of the bill:
Joyce Young, Kansas Sierra Club (Attachment 19);
Neal Schwabauer, Kansas Sierra Club (Attachment 20);
Jane Byrnes, Kansas Sierra Club (Attachment 21);
Marilyn Dresser, Kansas Sierra Club (Attachment 22);
Susan Miner, Kansas Sierra Club (Attachment 23a);
Susan Miner, Kansas Sierra Club, pictures (Attachment 23b);
Patricia and Lester Lawson, Kansas Sierra Club (Attachment 24);
Erick Nordling, SW Kansas Royalty Owners Association (Attachment 25).
Neutral
Ryan Hoffman, Director, Conservation Division, KCC, provided neutral testimony (Attachment 26). He noted that the KCC has dealt with increased seismic activities on a regional basis, whereas this bill would apply to all wells state-wide. He said that the bill is arbitrary and capricious because its approach does not deal with regional variations. The bill needs to use evidence to set limits. Further, he said that the restrictions are broad enough to apply to all injection wells, not just disposal wells.
Mr. Hoffman responded to members' questions:
- The data on seismic activity cannot be identified with any particular well.
- There are so many strata formations in Kansas that pressure and volume are varied for different applications.
- The bill would affect 430 wells.
Opponents
Ed Cross, President, Kansas Independent Oil and Gas Association, identified three false assumptions that cast suspicion on the necessity for the bill (Attachment 27). He commented that the bill assumes seismic activity is induced by injection wells, that injection volumes are solely to blame for seismic activity, and that the definition "induced seismicity" automatically assumes human causation, whereas human activity is irrelevant for many earthquakes. He stated that the Kansas Induced Seismicity Task Force has addressed issues of public concern and, as a result, felt-earthquake activity has dropped 65% in the last year.
David Bleakley, Chair, Eastern Kansas Oil and Gas Association, explained that the Governor's Task Force, the KCC and the Kansas Department of Health and Environment, by collaborating with the oil and gas industry, have implemented a "stoplight system" that has significantly reduced seismic activity. He concluded that with this monitoring system in place, additional restrictions or requirements are unnecessary at this time (Attachment 28).
Kent Eckles, Kansas Petroleum Council, spoke in opposition to the bill (Attachment 29). He reiterated that current regulations are working and that no additional regulations are needed. He added that the bill would seriously curtail the industry's contributions to the state.
The following written-only testimony also expressed opposition to the bill:
Bob Eberhart, Bobcat Oil Field Services (Attachment 30);
Kevin Guilbeau and Tor Meling, H2Oil .(Attachment 31)
Conferees responded to members' questions:
- The KCC approves the pressure in each individual well. (Mr. Bleakley)
- It would be difficult to establish who is liable for earthquake damage, since many of the earthquakes originate in Oklahoma. (Mr. Cross)
- According to the Geological Survey, seismic activity is down 58% since 2014. (Mr. Cross)
The Chair closed the hearing on HB2641.
At 10:50 a.m. the Chair announced that the Committee would recess and reconvene upon adjournment of the House.
