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2018-194 Gas Well Setback Distance StudyDate: December 21, 2018 Report No. 2018-195 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: During the concluding items portion of the December 3, 2018 City Council meeting, Council Member Meltzer requested information regarding conducting a scientific study to evaluate gas well setback distances for the City of Denton. DISCUSSION: As mentioned in the gas well setback presentation during the City Council work session on September 11, 2018, one of the most comprehensive studies specific to potential public health impacts due to emissions of compounds leaving gas well sites within the Barnett Shale was commissioned by the City of Fort Worth in 2010 through 2011. The specific goal of this study was to evaluate whether the 600-foot setback from protected uses established by the City of Fort Worth was adequate for protecting public health. The City of Fort Worth selected the Eastern Research group (“ERG”) to conduct this study. ERG began the study during August 2010 and provided a final report approximately 1 year later. Results of the study indicated that the 600- foot setback used by the City of Fort Worth was protective of public health according to the parameters used by the ERG to evaluate public health impacts. Although the study had some critics, the information was subsequently used by several other cities as a basis for setback distances, and today the 600-foot setback remains the most common setback distance used within the Dallas – Fort Worth Metroplex. The ERG study offers a framework for partially addressing the council request. However, the study conducted by ERG for the City of Ft. Worth was designed to determine if an established distance (600 feet) was sufficient for protecting public health. The current council request appears to be to facilitate research to determine “what is a safe setback distance”, which is a much more difficult issue to address since a defined distance is not implicit. With this in mind, the basic design of the ERG study is still valid for addressing the research request, but substantially more work will be needed to consider multiple distances. Using the ERG study as a framework, staff suggests the following approach: 1. Complete ambient air monitoring and associated research to establish a baseline. Complete ambient air monitoring to determine the prevalence and magnitude of specific compounds in ambient air and complete an assessment of other potential sources of emissions in proximity to gas wells. The City of Fort Worth established 8 monitoring sites to assess ambient air quality, and measurements were taken over a two-month period. Information obtained from this ambient air monitoring network was used to provide context for point source sampling and analysis efforts, characterize exposure to selected air toxics in ambient air at various locations in the city, establish concentrations of air toxics (such as benzene) present in the ambient air in the area, and as a component of the subsequent public health evaluation. Analyses of other potential sources of Date: December 21, 2018 Report No. 2018-195 emissions unrelated to gas wells will help in sample collection design and ensure that quantified emissions can be defensibly demonstrated to be from gas well pad sites. 2. Complete a point source emissions study to characterize emissions from natural gas- related point sources located within the City of Denton. Data collected during this phase can be used to derive total emissions profiles for each point source site. This point source testing must be comprehensive, since emissions at any individual site can fluctuate depending on day-to-day operating and equipment conditions. The variation in emissions over the entire population must be captured to determine the likely range of emission profiles, and the sampling will need to be done for multiple distances. 3. Use accepted, defensible analytical methods to perform monitoring. Analyze volatile organic compounds (VOCs) using established protocols, which include the Environmental Protection Agency’s (EPA' s) method TO-15, Carbonyl compounds identified by EPA' s method TO-11A (including formaldehyde), speciated non-methane organic compounds (SNMOC), as identified by ERG/SNMOC Analysis Method, and Methane as identified by EPA' s method TO-14. This approach will provide information for over 130 compounds, including 45 hazardous air pollutants such as benzene, ethylbenzene, toluene, and xylenes (BTEX compounds), formaldehyde, and acetaldehyde. It may also be advisable to consider newer passive methods for that use sorbent tube technologies such as EPA method TO-17 and /or method 325A. From a public health standpoint, concentrations of benzene should be of primary importance. 4. Complete air dispersion modeling. The results of elements 1-3 can be used to complete air dispersion modeling to quantify downwind impacts from natural gas activities using the latest EPA-approved models and methodologies. This information can then be used to determine worst case exposure scenarios and to determine the adequacy of various setback distances within the framework of a public health evaluation. 5. Use defensible and widely accepted heath based screening levels for public health evaluation. Complete a public health evaluation by comparing the ambient air monitoring data and the dispersion modeling results to the Texas Commission on Environmental Quality (TCEQ) health-based screening levels with respect to distances from pad sites. Evaluations should include both Effects Screening Levels (ESLs) and Air Monitoring Comparison Values (AMCVs). The TCEQ has developed separate ESLs for short-term and long-term exposure durations, where short-term values are typically used for assessing 1-hour average concentrations and long-term values are typically used for assessing annual average concentrations. Although ESLs are not regulatory standards, they are often used to interpret potential exposures to air pollution predicted by models. The TCEQ interprets ESLs as follows: “If predicted airborne levels of a constituent do not exceed ESLs, adverse health or welfare effects are not expected. If predicted ambient levels of constituents in air exceed the screening levels, it does not necessarily indicate a problem but rather triggers a review in more depth.” Air Monitoring Comparison Values (AMCVs) are pollutant-specific ambient air concentrations that the agency has established to protect human health and welfare. In contrast to ESLs, which are primarily used when evaluating air pollution levels predicted Date: December 21, 2018 Report No. 2018-195 by models, AMCVs are used when conducting health screening evaluations of air monitoring data. Depending on the sampling results, it is possible that Texas Risk Reduction Program’s risk based exposure levels (RBELs) for residential inhalation may also need to be considered. It is staff’s opinion that the above approach will likely be able to address the Council request. Staff obtained information on the ERG study via discussions with the City of Fort Worth staff member that was the project manager for the study. The Fort Worth ERG study was completed in approximately 1 year, and the total cost was $1,052,448. However, the study included a $45,254 component for communication and outreach that could possibly be excluded, bring the costs to $1,007,194 in 2010 dollars. Although the City of Denton has fewer gas well pad sites than the City of Fort Worth, the request for the Denton study is to determine a specific public health based setback distance, whereas the City of Fort Worth study was designed to determine if a single distance (600 feet) was protective of public health. As a result, the City of Denton study will require substantially more sampling, analytical, and modeling work. Applying a 5% per year increase to the 2010 ERG study amount of $1,007,194 indicates that the cost of the ERG study would be approximately 1.65 million in 2019. Considering the more extensive nature of the Denton study as proposed, it is not unreasonable to expect the study to be in the 2 million dollar range, and to take perhaps 1.5 to 2.5 years to complete. It is also worth noting that while the proposed health based screening levels are derived from the TCEQ and the proposed methods are supported by the EPA, if exceedences of standards are observed the TCEQ is unlikely to accept those results without additional monitoring and evaluations being performed by the TCEQ itself. STAFF CONTACT(S): Kenneth Banks General Manager of Utilities (940) 349-7165 Kenneth.Banks@cityofdenton.com