The waste, which becomes slightly radioactive as part of the
hydraulic fracturing process that churns up isotopes locked
underground, must be trucked out of state. That's because rules
prohibit North Dakota landfills from accepting anything but
miniscule amounts of radiation.
The most common form of radioactive waste is a filter sock, a mesh
tube resembling a sandbag through which fracking water is pumped
before it's injected back into the earth. Tank and pipeline sludge
are also radioactive.
It's not clear how much of this waste is generated, as North Dakota
officials only began requiring tracking last year; final 2014
reports aren't due until next month. Some put the number at 70 tons
per day; others say 27 tons.
Given that, estimates on potential savings aren't precise. But the
oil industry says allowing North Dakota's landfills to accept more
radioactive material could save at least $10,000 in transportation
costs per truckload. There are 11,942 active wells in the state, so
assuming each well generates at least one 15-cubic yard Dumpster's
worth of radioactive waste each year - a conservative estimate,
state officials say - that translates to an annual savings of about
$120 million statewide.
"You're talking hundreds of dollars to transport versus tens of
thousands" of dollars if regulations are changed, said Kari Cutting,
vice president of the North Dakota Petroleum Council.
Cutting attended three hearings last week across the state to
testify. Some oil companies, including SM Energy Co, also attended.
"This just shows how much of a priority we're putting on this and
these costs," Cutting said.
With U.S. crude oil prices down more-than 60 percent since last
June, eating into the industry's financial lifeline, every penny
counts.
The changes would most-directly affect companies that operate
saltwater disposal sites. Oasis Petroleum Inc is the largest
publicly traded company with saltwater sites, though most operators
are privately held. Oasis did not return a call seeking comment.
Changing the regulation would also make North Dakota's energy
industry more self-reliant, oil producers said.
If other states stop taking the waste - Utah, Washington and
California have far more liberal standards but for now aren't
planning to close the gates - North Dakota's oil development would
stop.
Clean Harbors Inc's Colorado landfill currently accepts North
Dakota's radioactive waste. But allowing the company's North Dakota
facility to do the same could represent a boon for the company.
Clean Harbors said it supports changing the regulations.
The proposed changes are not universally popular. During the hearing
in Williston last week, some attendees held signs reading: "Protect
Health Not Oil's Wealth!" that were plastered with radioactive
symbols.
"The only reason we're doing this today is to cut the oil industry's
costs," said Darrell Dorgan, spokesman for the North Dakota Energy
Industry Waste Coalition, an environmental group.
[to top of second column] |
HOW IT WORKS
The hydraulic fracturing process - commonly known as "fracking" -
extracts millions of gallons of water per well alongside oil. That
mixture also contains small amounts of radium, a byproduct of
uranium, and other sediments.
After that water is separated from oil, but before it's sent back
into the earth, it must be pushed through the mesh filter socks to
remove sand, pebbles and other materials that could potentially clog
injection wells.
Filter socks are also used at drilling sites to separate sediment
from water that naturally flows back each time a new well is bored.
In both instances, the radioactive material is actually an
afterthought: the filter socks aren't designed to collect it, but
become radioactive when they do their jobs.
North Dakota's landfills currently can only accept waste with
radioactive material up to 5 picocuries, a measurement of the
radioactivity found in a gram of material.
A banana has, on average, 3.5 picocuries of radiation.
Last year, state officials commissioned Argonne National Laboratory
to study what the safest levels of radiation would be for landfills.
The answer: 51.5 picocuries. Armed with that information, the
state's Department of Health is seeking approval to boost the level
for in-state disposal to 50 picocuries.
The increase is part of broader regulatory power the health
department is seeking; current regulations were not written with oil
industry waste in mind, officials said.
"This is all a part of our efforts to protect the health and safety
of North Dakotans," said Scott Radig, head of the department's waste
management division, which late Tuesday extended the public comment
period to March on the rule change.
Even if a legislative panel approves the change - which wouldn't
happen until Oct. 1 at the earliest - North Dakota's disposal levels
would remain below Utah's (10,000 picocuries), Colorado's (2,000)
and Idaho's (1,500).
"On the radioactive scale," said Radig, "the material we're talking
about is extremely low."
(Reporting by Ernest Scheyder; Editing by Terry Wade and Hank
Gilman)
[© 2015 Thomson Reuters. All rights
reserved.] Copyright 2015 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed. |