September 10, 2014 Program: Richard Perry, Hydraulic Fracturing in Nevada: History and New Regulations

Rich Perry joined the Division of Minerals as Administrator in 2013. His career includes numerous operating and technical assignments in the mining, water resources and geothermal industries. Prior to his appointment at the Division of Minerals, he worked for the Nevada State Engineer in eastern Nevada. Rich served as Vice-President of North American Operations for Newmont Mining Company from 2001-2005, and as the start-up general manager for Newmont’s Batu Hijau copper mine in Indonesia. Rich is a graduate of the Mackay School of Mines at the University of Nevada, Reno.  Rich was a member of the Elko Rotary Club until recently relocating to Carson City.

 

Nevada has a 60 year history of oil production, primarily from several valleys in eastern Nevada. 335,672 barrels of oil were produced in 2013. Nevada is not a commercial producer of natural gas.   Hydraulic fracturing has been used in oil extraction since 1947. Its use has become more common with the development of horizontal drilling.    The successful use of hydraulic fracturing for oil exploration and production has generated new interest in geologic targets in eastern and central Nevada.    The Nevada Division of Minerals lists all approved oil and gas drilling permits with specific conditions of approval on their web site at: www.minerals.state.nv.us

 

Nine drilling permits were issued to Noble Energy in 2013 that would allow for the use of hydraulic fracturing.  Specific conditions of approval to address the use of hydraulic fracturing were included in these drilling permits. Noble has drilled two wells to date in Elko County.  Both hydraulic fracturing treatments were conducted with no accidents, incidents or spills.

 

During the last legislative session, the Nevada Division of Minerals and Nevada Division of Environmental Protection were mandated in Senate Bill 390 (NRS 522.119) to jointly develop a program and regulations to update Nevada’s oil and gas code to address the use of hydraulic fracturing.