[Federal Register Volume 73, Number 192 (Thursday, October 2, 2008)]
[Proposed Rules]
[Pages 57271-57272]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-22805]


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SUSQUEHANNA RIVER BASIN COMMISSION

18 CFR Part 806


Review and Approval of Projects

AGENCY: Susquehanna River Basin Commission.

ACTION: Notice of proposed rulemaking and public hearing.

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SUMMARY: This document contains proposed rules that would amend the 
project review regulations of the Susquehanna River Basin Commission 
(Commission) by requiring review and approval of any natural gas well 
development project targeting the Marcellus, Utica or other shale 
formations and involving the withdrawal or consumptive use of waters of 
the Susquehanna River Basin, adding a provision providing for a 
specific approval by rule process for consumptive water use associated 
with such projects and modifying the definition of project. In 
addition, two editorial changes are made to the existing approval by 
rule provision related to the consumptive use of water withdrawn from 
public water supply systems to make that provision consistent with the 
new approval by rule provision for natural gas well development 
projects.

DATES: Public hearings will be held on October 21 and October 22, 2008, 
beginning at 7 p.m. regarding this proposed rulemaking action. The 
locations of the hearings are listed in the ADDRESSES section of this 
notice. The deadline for submission of written comments on the proposed 
rulemaking is October 31, 2008.

ADDRESSES: The October 21 2008, public hearing will be held at Lycoming 
College, Academic Center, Lecture Hall Room D001, Mulberry Street, 
Williamsport, PA 17701; the October 22, 2008, public hearing will be 
held at Binghamton University, State University of New York, Lecture 
Hall Complex, Lecture Hall 1, Route 434 (Vestal Parkway East), 
Binghamton, NY 13903. Written comments may be submitted by mail to Mr. 
Richard A. Cairo, Susquehanna River Basin Commission, 1721 N. Front 
Street, Harrisburg, PA 17102-2391 or by e-mail to [email protected].

FOR FURTHER INFORMATION CONTACT: Richard A. Cairo, General Counsel, 
717-238-0423; Fax: 717-238-2436; e-mail: [email protected]. Also, for 
further information on the proposed rulemaking, visit the Commission's 
Web site at www.srbc.net.

SUPPLEMENTARY INFORMATION:

Background and Purpose of Amendments

    As a result of advances in hydraulic fracturing, and higher natural 
gas prices, natural gas well development activity in the Susquehanna 
River Basin has increased dramatically in the past year, resulting in a 
large number of project applications being filed with the Commission 
seeking approval for the withdrawal and consumptive use of water for 
that activity. The Commission is hereby proposing a rulemaking action 
to handle the large and immediate influx of project applications, and 
to avoid adverse, cumulative adverse or interstate effects to the water 
resources of the basin.
    The proposed rule modifies the definition of ``project ``for 
purposes of natural gas well development, requires review and approval 
of any natural gas well development project involving the withdrawal or 
consumptive use of water, and adds a specific approval by rule process 
associated with the consumptive use of water by such projects. The 
Commission's current approval by rule process is available for use only 
if the sole source of water is a public water supply system. Under the 
contemplated rule change, the approval by rule process would allow for 
the consumptive use of wastewater, acid mine water and other sources of 
water for natural gas well development projects. The proposal would not 
change the current process used to review groundwater or surface water 
withdrawals.
    In addition, two editorial changes are made to the existing 
approval by rule provision relating to the consumptive use of water 
withdrawn from public water supply systems to make that provision 
consistent with the new approval by rule provision for natural gas well 
development projects.

List of Subjects in 18 CFR Part 806

    Administrative practice and procedure, Water resources.

    For the reasons set forth in the preamble, the Susquehanna River 
Basin Commission proposes to amend 18 CFR part 806 as follows:

PART 806--REVIEW AND APPROVAL OF PROJECTS

Subpart A--General Provisions

    1. The authority citation for part 806 continues to read as 
follows:

    Authority: Secs. 3.4, 3.5(5), 3.8, 3.10 and 15.2, Pub. L. 91-
575, 84 Stat. 1509 et seq.

    2. In Sec.  806.3, revise the definition of ``project'' to read as 
follows:


Sec.  806.3  Definitions.

* * * * *
    Project. Any work, service, activity, or facility undertaken, which 
is separately planned, financed or identified by the Commission, or any 
separate facility undertaken or to be undertaken by the Commission or 
otherwise within a specified area, for the conservation, utilization, 
control, development, or management of water resources, which can be 
established and utilized independently, or as an addition to an 
existing facility, and can be considered as a separate entity for 
purposes of evaluation. For purposes of natural gas well development 
activity, the project shall be considered to be the drilling pad upon 
which one or more exploratory or production wells are undertaken, and 
all water-related appurtenant facilities and activities related 
thereto.
* * * * *
    3. In Sec.  806.4, amend paragraph (a) by adding paragraph (a)(8) 
to read as follows:


Sec.  806.4  Projects requiring review and approval.

    (a) * * *
* * * * *
    (8) Any natural gas well development project in the basin targeting 
the Marcellus, Utica or other shale formations for exploration or 
production of natural gas involving a withdrawal or consumptive use of 
waters of the basin, regardless of the quantity of such withdrawal or 
consumptive use. The project sponsor shall submit the appropriate 
application(s) in accordance with subpart B of this part and the 
project shall be subject to the applicable standards set forth in 
subpart C of this part.
* * * * *
    4. In Sec.  806.22, revise paragraph (e)(1) introductory text, 
(e)(1)(ii), and add a new paragraph (f) to read as follows:


Sec.  806.22  Standards for consumptive uses of water.

* * * * *

[[Page 57272]]

    (e) * * *
    (1) Except with respect to projects involving natural gas well 
development subject to the provision of paragraph (f) of this section, 
any project whose sole source of water for consumptive use is a public 
water supply withdrawal, may be approved under this paragraph (e) in 
accordance with the following, unless the Commission determines that 
the project cannot be adequately regulated under this approval by rule:
    (i) * * *
    (ii) Within 10 days after submittal of an NOI under paragraph 
(e)(1)(i) of this section, the project sponsor shall submit to the 
Commission proof of publication in a newspaper of general circulation 
in the location of the project, a notice of intent to operate under 
this approval by rule, which contains a sufficient description of the 
project, its purposes and its location. This notice shall also contain 
the address, electronic mail address and telephone number of the 
Commission.
* * * * *
    (f) Approval by rule for consumptive use related to natural gas 
well development.
    (1) Any project involving the development of natural gas wells 
subject to review and approval under Sec. Sec.  806.4, 806.5, or 806.6 
of this part shall be subject to review and approval under this 
paragraph (f) regardless of the source or sources of water being used 
consumptively.
    (i) Notification of Intent: No fewer than 60 days prior to 
undertaking a project or increasing a previously approved quantity of 
consumptive use, the project sponsor shall:
    (A) Submit a Notice of Intent (NOI) on forms prescribed by the 
Commission, and the appropriate application fee, along with any 
required attachments.
    (B) Send a copy of the NOI to the appropriate agencies of the 
member state, and to each municipality and county in which the project 
is located.
    (ii) Within 10 days after submittal of an NOI under paragraph 
(f)(1)(i) of this section, the project sponsor shall submit to the 
Commission proof of publication in a newspaper of general circulation 
in the location of the project, a notice of intent to operate under 
this approval by rule, which contains a sufficient description of the 
project, its purposes and location and the sources, quantities and peak 
day use of water to be used consumptively by the project. This notice 
shall also contain the address, electronic mail address and telephone 
number of the Commission.
    (2) The project sponsor shall comply with metering, daily use 
monitoring and quarterly reporting as specified in Sec.  806.30, or as 
otherwise required by the approval by rule. Daily use monitoring shall 
include amounts delivered or withdrawn per source, per day, and amounts 
used per gas well, per day, for well drilling, hydrofracture 
stimulation, hydrostatic testing, and dust control. The foregoing shall 
apply to all water and fluids, including additives, flowback and 
brines, utilized by the project.
    (3) The standard conditions set forth in Sec.  806.21 above shall 
apply to projects approved by rule, as well as any special conditions 
incorporated into such approvals.
    (4) The project sponsor shall comply with mitigation in accordance 
with Sec.  806.22(b)(2) or (b)(3).
    (5) Any produced flowback fluids or brines utilized by the project 
sponsor for hydrofracture stimulation undertaken at the project shall 
be separately accounted for, but shall not be included in the daily 
consumptive use amount calculated for the project, or be subject to the 
mitigation requirements of Sec.  806.22(b).
    (6) The project sponsor shall obtain all necessary permits or 
approvals required for the project from other federal, state or local 
government agencies having jurisdiction over the project. The 
Commission reserves the right to modify, suspend or revoke any approval 
under this paragraph (f) if the project sponsor fails to obtain or 
maintain such approvals.
    (7) The project sponsor shall demonstrate to the satisfaction of 
the Commission that all flowback and produced fluids, including brines, 
have been treated and disposed of in accordance with applicable state 
and federal law.
    (8) The Commission will grant or deny approval to operate under 
this approval by rule and will notify the project sponsor of such 
determination, including the sources and quantity of consumptive use 
approved.
    (9) Approval by rule shall be effective upon written notification 
from the Commission to the project sponsor, shall expire five years 
from the date of such notification, and rescind any previous 
consumptive use approvals to the extent applicable to the project.
    (10) Water withdrawals approved by the Commission pursuant to Sec.  
806.4(a)(2) after the date of issuance of the approval by rule may be 
utilized as a source for the consumptive use authorized for the project 
provided such withdrawal source is approved for such use and is 
registered with the Commission at least 10 days prior thereto on a form 
and in a manner as prescribed by the Commission.
    (11) Approvals issued under this paragraph (f) shall not be 
transferable under Sec.  806.6.

    Dated: September 16, 2008.
Thomas W. Beauduy,
Deputy Director.
[FR Doc. E8-22805 Filed 10-1-08; 8:45 am]
BILLING CODE 7040-01-P