Evergreen plan reviewed, after all

MAT-SU -- The Alaska Department of Environmental Conservation, Thursday, is getting set to publicly reveal its proposed set of regulations covering water and waste generated through the production of shallow-bed natural gas, but not without a few hiccups along the way.

During the past six months, according to DEC Division of Air and Water Quality Director Kristan Ryan, DEC's stance has changed slightly as it pertains to regulating the coal-bed methane industry.

Initially, Ryan said, DEC believed it had the ability to regulate exploration that has been done by Evergreen Resources Alaska Inc. and, under that assumption, requested Evergreen provide them with the analysis of materials discharged during exploration at several Pioneer Unit sites.

A few weeks after the request, Ryan said, DEC and Evergreen both stumbled on a part of the state statutes that limits DEC's authority when drilling companies are in exploration drilling and production activities.

"Evergreen and us, at about the same time, looked at the statute and saw we don't really have the authority to request that," Ryan said.

DEC continued to search out what their regulatory role in the process was. While they did, Ryan said, they continued to request the analysis data from Evergreen. After further analysis, she said, DEC realized it does have the authority to review activity taking place under a drilling company's plan of operations. DEC could, using the plan as a guide, verify they were following the stated plan of operations.

"We're not exempt from requiring a plan review," Ryan said. "So what we did is said we would like to have information about how [Evergreen] disposed of cuttings and the drilled water."

DEC sent Evergreen a letter dated Nov. 6, giving them 30 days from its receipt to provide information that would bring the company into compliance with its approved drilling waste storage, one component of which was an analysis of tests done on the water and solid waste generated through the drilling process. Evergreen requested an extension on the analysis, according to Corri Feige, the company's manager of government affairs and public relations, to allow the company performing the third-party testing time to regroup after the Thanksgiving holiday.

On Dec. 4, Evergreen gave DEC a 50-page analysis of the tests performed, including the chemical tests performed, the location of the pits, an analysis of the water reinjected and information about how the solid materials were disposed of on site.

"The water was definitely not good," Ryan said. "They disposed of that perfectly."

Ryan said the water showed levels of total dissolved solids -- indicating the presence of heavy metals -- and high salinity. While Ryan said that's not uncommon for a coal seam, it's not safe for reuse in ponds or elsewhere. Reinjection, she said, was the best way to prevent contamination of drinking water aquifers.

"They're reinjecting it in such a deep layer of the earth, there's no potential for it to affect a drinking water aquifer," Ryan said.

The solids, she said, had fewer contaminants -- the pH was a little high, she said, for the disposal method Evergreen used. Ryan said Evergreen essentially pulled out the pit liner and dug the solids into the ground.

"The soil was relatively benign," Ryan said. "The pH was the only thing we saw that we could question -- and it could easily be adjusted; they could add something to it."

Feige said while there was the presence of heavy metals in the water and a slightly high pH in the solid waste, all the tests came back within DEC's acceptable range.

"None of our concentrations were above DEC-specified recommendations," Feige said. She added that the pH could likely be attributed to the geological makeup of the drilling area. PH levels vary, she said, according to the makeup of the soils involved, something she said DEC is paying attention to.

"DEC is learning right along with the rest of us about the geology of the area," Feige said.

Ryan said in the future, DEC would require Evergreen to dispose of the waste by taking it to an approved landfill, such as the Mat-Su Borough Central Landfill, for disposal. She added that Evergreen operated within its requirements, and has provided information when requested.

Feige said Evergreen did nothing wrong in burying the solid wastes.

"The modes of disposal we used, including the burying of cuttings, were all in DEC's options originally," Feige said. "Evergreen will certainly take direction from whatever DEC requests."

Both entities are using the situation as a learning tool, Ryan said. DEC has now clarified its regulatory ability, and Evergreen has received clarification on exactly what state agencies expect of them.

Feige said Evergreen has been watching the process by DEC and other departments who regulate coal-bed methane production with interest, and is looking forward to the eventual outcome of the project.

Ryan said they'll continue to rely on tests performed by Evergreen for signs they're adhering to their plan of operations. Although it puts the industry in the drivers' seat, Ryan said, it's the most effective method at hand.

"We'll use the same model we use for all industry," Ryan said. "DEC is the cop … and the operator has the responsibility to collect legitimate samples and send it to a third party for testing."

Ryan said tampering is difficult to disguise, and DEC has the right to perform their own testing whenever they believe it's warranted.

The 50-page analysis Evergreen paid for is available for public perusal. Copies can be picked up at DEC's offices at 555 Cordova St., Anchorage. To request that a copy be sent to your home, call (907) 269-7644.