LANDSCAPE SCALE PLANNING AND SITING FOR SHALE DEVELOPMENT

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1 LANDSCAPE SCALE PLANNING AND SITING FOR SHALE DEVELOPMENT An Energy by Design approach to reducing the overall environmental footprint. MICHELLE MCGREGOR SR. OIL & GAS DEVELOPMENT ADVISOR

2 Agenda Introduction Industry Background Legacy Matters What have we learned from conventional? TNC Expertise Sustainable Development at a Landscape Scale Energy Development and Conservation by Design The Mitigation Hierarchy avoid, minimize, mitigate Energy by Design Examples of our Products for Shale Operations LEEP GIS Landscape Environmental Energy Planning Leading Practices Guidance for Shale Development CMU TNC Joint Workshop 2015 Collaboration with CMU (Carnegie Mellon University Scott Institute for Energy Innovation and Center for Responsible Shale Development Landscape Planning and Siting Roundtable Series 2016

3 ENERGY DEVELOPMENT IN N. AMERICA Energy sprawl is (by far) biggest driver of habitat loss in the United States. Energy development is expanding into many areas that previously were not at risk. Significant opportunities for improved siting and mitigation Source: Fargione et al 2016

4 Landscape Scale Planning and Siting TNC s Development by Design Incorporation of the Mitigation Hierarchy Avoid Minimize Mitigate Sustainable Development at a Landscape Scale Energy by Design Comprehensive conservation and energy approach that includes a science and data-driven examination of the cumulative impacts of development on land, water, wildlife and human communities so we can better understand ecological impacts and how to work together to reduce them. Some Examples of TNC Products for Shale Operations...

5 LEEP LANDSCAPE ENVIRONMENTAL ENERGY PLANNING The ArcGIS-based tool: Generates optimized layouts for shale oil/gas well pads, access roads, and gathering pipelines Incorporates existing environmental regulations and encourages exclusions and setbacks beyond regulatory minimums Photo: Mark Godfrey - TNC

6 LEEP OUTPUTS: COMPARING LAYOUTS Layout A Layout B Layout C For each proposed infrastructure layout, the tool: Calculates environmental impact metrics Estimates development costs Assesses trade-offs between impacts and costs

7 COST & ENVIRONMENTAL IMPACT for 6 pads for 1.25 to 1.84 miles of pipeline for 0.08 to 0.53 miles of road

8 LEADING PRACTICES DOCUMENT TOPICS Focus on surface and wildlife impacts and recommendations Topics Covered Landscape Scale Planning Ecological Buffers Road Development Stream Crossings Water Withdrawals Timing of Activities Noise Artificial Lighting Topics In Development Pipeline Development Includes: Integrated Vegetation Management Invasive Plant Management Reclamation Topics Not Covered Air Quality Risks of Spills Public Health and Safety

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10 Advancing the Next Generation of Environmental Practices Development May 2015 Coordinated by: The Nature Conservancy Carnegie Mellon University Wilton E. Scott Institute for Energy Innovation Steinbrenner Institute for Environmental Education and Research Supported by the Colcom Foundation Focus: Landscape Scale Planning, Habitat, Water, Air

11 Summary of 2 nd Roundtable Discussion May 25, 2016 at Carnegie Mellon University, Pittsburgh, PA The multi-stakeholder group: exchanged ideas and educated each other on responsible practices for planning and siting of shale gas infrastructure, recognized the value of continuing an open dialogue on current practices and exploring the possibility of further developing an effective voluntary leading practices planning and siting program, and drafted principles and measures (potential elements of such a program) for land, water, wildlife/habitat, and communities.

12 CROSS CUTTING THEMES Environmental Challenges are Massive in Scale and have solutions that depend on multiple stakeholders and multiple disciplines all working in tandem with each other; Knowledge Gaps between Stakeholders regarding current research, regulatory changes and on-the-ground practices; A number of environmental challenges associated with shale development are also relevant with other forms of energy and infrastructure development, with opportunities to learn across development sectors; Many solutions to a number of challenges already exist. Example: Best-in-Class Operators and their standard operating practices and use of leading innovations. How to get broad adoption across the Industry. CSSD Standards as an Example

13 FOLLOW-UP TO THE CMU WORKSHOP Landscape Scale Planning and Siting Workshop Largest of the workshops; Industry Poll Industry agreed to an additional1/2 day exploratory workshop to ascertain whether there is enough interest to pursue a set of agreed upon principles as a first step toward a potential Landscape Scale Siting Standard; Met with CMU Scott Institute for Energy Innovation and CSSD to garner interest in a collaborative approach; Held First Exploratory Session with Industry, CSSD and TNC in early Feb agreement to move forward on Siting Principles Where we are today...

14 Planning and Siting Roundtable Participants Anadarko Antero Benedum Foundation Chevron Clean Air Task Force Colcom Foundation CONSOL Dominion Eckert Seamans Environmental Defense Fund EQT Local Government Academy Pennsylvania Environmental Council Range Resources Richard King Mellon Foundation Shell Southwestern Energy Tioga County, PA Triana Energy Washington County, PA Washington & Jefferson College, Center for Energy Policy & Management Williams Energy Roundtable organized by the Center for Responsible Shale Development, The Nature Conservancy, and Carnegie Mellon University

15 Siting Program Goals (revised during 2 nd Roundtable Discussion) Promote responsible siting of shale infrastructure that minimizes adverse local and landscape impacts to environmental and cultural resources. Reduce the surface footprint of infrastructure development through such actions as co-locating infrastructure (subject to legal and safety constraints), building cooperative relationships with municipalities and other entities, etc. Integrate ecological and community considerations with geologic and economic factors at the earliest possible planning stage. Consider a multitude of factors and determine how best to balance them in infrastructure placement decisions, based on regional context and sitespecific conditions.

16 COMMUNITY LAND Common Themes Across Categories Infrastructure Placement (the where ) Avoid and minimize disturbance to land, water, and intact natural habitats comprehensive use of the mitigation hierarchy Buffers/setbacks Planning Process (the how ) Early engagement with a broad set of stakeholders and across disciplines Comprehensive lifecycle planning, including leasing, siting, operations, restoration, and maintenance Transparency making data and plans publicly available for greater accountability HABITAT WATER

17 MITIGATION HIERARCHY Avoid Impacts Minimize Impacts Compensate for Impacts

18 10 PRINCIPLES FOR APPLYING THE MITIGATION HIERARCHY 1. Landscape context 2. Goals 3. Mitigation hierarchy steps 4. Limits to offsets 5. Sustainable outcomes 6. Stakeholder engagement practices 7. Additionality 8. Equivalence Principles for applying the mitigation hierarchy 9. Location 10. Temporal considerations Principles specific to offsets

19 Overarching Principles Formal Landscape Scale Siting and Planning Overarching Principle: Develop and implement a comprehensive, lifecycle plan demonstrating the full mitigation hierarchy at a landscape scale to reduce potential impacts and increase transparency. Measures: 1. Develop a detailed written plan for siting, operations, maintenance, and reclamation activities, specifically addressing all auditable requirements. 2. Transparency Share the plan with relevant stakeholders and demonstrate responsiveness to stakeholder input. 3. Document baseline conditions and inventory resources. 4. Demonstrate full and sequential implementation of the mitigation hierarchy, establishing clear performance goals. Document, describe, and map the location and actions taken to avoid, minimize, and mitigate adverse impacts. 5. Monitor appropriately throughout lifecycle, and adapt activities accordingly to achieve goals outlined above. 6. Certified entity is responsible for adhering to this standard and for holding all contractors and subcontractors to the same requirements. 7. Specific mitigation requirements Avoid, Minimize, Mitigate

20 QUESTIONS? Photo Credit: Penn State Outreach and Online Education, Marcellus Shale photo album, Gas rig, via Tom Murphy

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