Fracking Update; URS, Martin Pringle Law Firm; 2014 Mid-America Environmental Compliance Seminar in...

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Speed Dating - Fracking Update(Hydraulic Fracture Stimulation)

New Developments & Old Concerns

2014 Mid-America Environmental

Compliance Conference – April 3-4, 2014

2014 Mid-America Environmental Compliance Conference

Energy Boom

Energy Independence

Energy Exports

US Net EnergyImports Reached

20 Year Low in 2013

2014 Mid-America Environmental Compliance Conference

Horizontal Drilling and Hydraulic Fracture Stimulation

1300-1500 bbls/stage @ 100 bpm

2014 Mid-America Environmental Compliance Conference

Well Pad(6 - 8 wells)

300,000 barrels Freshwater

200,000 barrels Flowback/Produced

“Long” Access Road

Water Source ½ Mile

4

Well Pad, Freshwater, Flowback/Produced

2014 Mid-America Environmental Compliance Conference

Bakken (flaring gas to produce 1.1 million bpd in 2014)

Eagle Ford

Piceance Basin

Mar

cellu

s

NYC

Boston

Philly

2014 Mid-America Environmental Compliance Conference

Per EPA - Hydraulic Fracturing Includes:

1.Water Acquisition

2.Chemical Mixing

3.Well Injection (Normally Considered the Frac Job)

4.Flowback and Produced Water

5.Wastewater Treatment and Waste Disposal

2014 Mid-America Environmental Compliance Conference

Water Acquisition

2014 Mid-America Environmental Compliance Conference

Water Acquisition• Intake to meet impingement mortality

and entrainment standards

• Need to Meter

2014 Mid-America Environmental Compliance Conference

Freshwater Conveyance (Temporary)

2014 Mid-America Environmental Compliance Conference

Same Line (Permanent)

2014 Mid-America Environmental Compliance Conference

Water Trucks – 100 barrelsYellow Frac Tank – 500 barrels

Conveyance: No One Likes Water Trucks…

2014 Mid-America Environmental Compliance Conference12 | MARCELLUS SHALE

COALITION

On-Site Water Storage Only…No Transport

500 bbls

2014 Mid-America Environmental Compliance Conference

250,000 barrels Freshwater

Well Pad – 6 Wells

300,000 barrels Freshwater

Landowner

Surface Water

Gas Treatment

13

All Freshwater Storage

2014 Mid-America Environmental Compliance Conference

Chemical Mixing - Hydraulic Fracturing Job

2014 Mid-America Environmental Compliance Conference

Chemical Mixing - FracFocus.org

99% Water and Sand

2014 Mid-America Environmental Compliance Conference

500 barrel Fiberglass Tanks for Flowback/ProducedRe-use for Next Frac Job

2014 Mid-America Environmental Compliance Conference

Reduce TSS – Filtering w/ 100 & 25µm Socks Flowback Filtration – Reduce TSS and Re-use

Thanks

2014 Mid-America Environmental

Compliance Conference – April 3-4, 2014

2014 Mid-America Environmental Compliance Conference19

Drilling Well

2014 Mid-America Environmental Compliance Conference

Well Pad, Freshwater Storage, Access Roads

2014 Mid-America Environmental Compliance Conference

Baseline Data and Permits• Baseline Surface Water, Groundwater, Air, Topography• Construction Permits (pads, roads, impoundments, gas

treatment/compressor stations)…any disturbance!−Notification −Cultural Resources−T&E Species (plants and animals [bats, rattlesnakes…])−All about E&S Controls (Erosion and Sediment Controls)−Set Backs (from schools, drinking water, etc.)

• Freshwater Extraction: Pass-bys based on Q7,10 flows• Hauling Permits and Permitted Routes• Wastewater Treatment (Flowback and Produced Water)

NORM TENORM – Technically Enhanced NORM

2014 Mid-America Environmental Compliance Conference

New Developments/Old Concerns• In 2014: Next EPA Study Potential Impacts of Hydraulic

Fracturing on Drinking Water Resources

• Use Less Water and/or Natural Gas Liquids or Nitrogen Foam – Decrease Dependence on Water…Less Wastewater.

• Decrease Additives or Use More Environmentally Friendly Additives.

• Seismic Events? Mostly due to wastewater injection (OH)

• No More Photos of Ignited Kitchen Faucets PLEASE!

2014 Mid-America Environmental Compliance Conference

Workover with Containment Pad

2014 Mid-America Environmental Compliance Conference

Freshwater Storage

2014 Mid-America Environmental Compliance Conference

Shale Gas: Environmental Protection in Wells

Casing Integrity Testing

2014 Mid-America Environmental Compliance Conference

Bolted Stainless Steel Tank (100 foot diameter/40,000 barrels)

2014 Mid-America Environmental Compliance Conference

Wastewater Treatment Tanks – 500 barrelsOn Site Treatment/Storage Only

2014 Mid-America Environmental Compliance Conference

Whoa!

2014 Mid-America Environmental Compliance Conference

Road Maintenance

Before After

E&P Operators Pay for Road Repairs

2014 Mid-America Environmental Compliance Conference

Narrow Bridge and Large Vehicles

5 Point Turn

2014 Mid-America Environmental Compliance Conference

Erosion and Sediment Control (E&S Controls)Freshwater Conveyance Line (Before)

2014 Mid-America Environmental Compliance Conference

Freshwater Conveyance Line (After)

2014 Mid-America Environmental Compliance ConferenceShale Gas Europe

Move Fluids, Sludge, Drilling Muds & Spill Cleanup

Vac Truck

2014 Mid-America Environmental Compliance Conference

Wetland Delineation

2014 Mid-America Environmental Compliance Conference

Wetland?...Yes! (Landowner Used as a Dump)

2014 Mid-America Environmental Compliance Conference

Temporary and Mobile Freshwater Storage

50,000-100,000 BBL systems are typically installed in 3-4 days and removed within 3 days.

2014 Mid-America Environmental Compliance Conference

Temporary and Mobile Freshwater Storage

2014 Mid-America Environmental Compliance Conference

Cultural Resources (Historic Sites…Native Peoples)

2014 Mid-America Environmental Compliance Conference

Well Pad and Access Road Under Construction

2014 Mid-America Environmental Compliance Conference

SetbacksComposite Impact: 50% of Your Acreage Off-limits

2014 Mid-America Environmental Compliance Conference

Typical Casing Design for Marcellus

Assure Annular Seal• Cement to Surface to

Extent Possible

• Mechanical Integrity Tests on annulus

Stray Gas?No Bubbles…No Troubles

2014 Mid-America Environmental Compliance Conference

“Fracking…Hydraulic Fracturing (HF)

• > 60 years: more than 1 million wells in 27 states

• 90 percent of oil and gas wells use HF technology

• 99.5 percent water/sand mix

• 3 to 5 million gallons of water fractures the shale.

• Well casing protects water supply

• PA Chapter 78 upgrades reflect best practices in well casing

42 | MARCELLUS SHALE COALITION

2014 Mid-America Environmental Compliance Conference

Vertical Setbacks – from Frac Zone

• At least 1,000 feet from top of Frac Zone to Freshwater Aquifer (blue stripe at top)

• At least 2,000 feet from top of Frac Zone to Ground Surface

Marcellus Frac Zone

Freshwater

2014 Mid-America Environmental Compliance Conference

First 5 Minutes – Shale Gas Primer and Fracking

• Background

• Leasing and Well Pad Siting/Permitting

• Well Pad Design (Erosion and Sediment Controls)

• Water Management

• Freshwater Procurement, Conveyance, and Storage

• Manifolds and Pumping for Hydraulic Fracturing

• Flowback and Produced Water Storage, Treatment, Re-use, and Disposal

• Well Pad Production Equipment:  Well Testing, Treatment (Separation and Dehydration), Storage

44

2014 Mid-America Environmental Compliance Conference

Manage Freshwater on Basis of River Basins

2014 Mid-America Environmental Compliance Conference

Workover with $30,000 Containment Pad

2014 Mid-America Environmental Compliance Conference

Baseline Data: Protect Your Company

• Groundwater• Springs• Underdrain Outlets

2014 Mid-America Environmental Compliance Conference

Document Baseline Site Conditions (Groundwater…)

2014 Mid-America Environmental Compliance Conference

Placing Geotextile and Stone on Level Pad Footprint

2014 Mid-America Environmental Compliance Conference

Cut Slope, Geotextile and Stone on Level Pad

2014 Mid-America Environmental Compliance Conference

Access Road w/ Erosion and Sediment Control Structures

2014 Mid-America Environmental Compliance Conference

Rock Construction Entrance to Public Roadway

2014 Mid-America Environmental Compliance Conference

Erosion and Sediment Control Measures Under Construction (RCE)

2014 Mid-America Environmental Compliance Conference

Well Pads – E&SC Considerations

• Keep clean water offsite. Control water onsite and filter and re-infiltrate onsite or filter before it goes offsite. Reduce TSS!

• Sediment traps may be better choice than sediment basins

• No compost filter socks or silt fence unless very flat

• Clean water diversion swale up gradient to level spreaders

• Riprap-lined channels around pad to sediment traps

• Infiltration basins used when soil types are conducive

• Stormwater Management - due to the increase in impervious area

2014 Mid-America Environmental Compliance Conference

Access Roads – Design Considerations/E&S

• Assume Road Width for Two-way Traffic

• Rock Construction Entrance (RCE) ±130’ Wide at Public Road

• Radius of the Tapered Curve of RCE ±50’

• 50-foot Radius into Well Pad and Tank Pad

• Coming off the state/local road with the access road - assume 10' @ -4% from EOP (driveway pipe/culvert will be placed at this point).

• 10% max grade preferred

• Roadside ditches (lined with riprap) placed on the upslope side of the access roads

• Road is in-sloped at 2%

2014 Mid-America Environmental Compliance Conference

Freshwater Procurement

• Basin Approach to Water Management

• Water Consumed and Not Returned to the Basin

• Water Used and Returned to the Basin

• Do Not Move Water Between Basins…Invasive Species

• Extraction Limits per Day

• And, “Pass-by” when source is low, can’t take any water

2014 Mid-America Environmental Compliance Conference

Flowback and Produced Water StorageTanks or Impoundments?

• High Risk Fluids

• Compatibility Issues (TDS)

• Bolted Stainless Steel Tank Capacity – 45,000 barrels

• Impoundment Capacity – 300,000 barrels

• Temporary Impoundment – 100,000 barrels

2014 Mid-America Environmental Compliance Conference

Freshwater Storage for Hydraulic Fracturing

Floating Intakes

2014 Mid-America Environmental Compliance Conference

Single Liner – Freshwater ImpoundmentDouble Liner w/ Leak Detection Zone – Flowback/Produced

Single Liner - Freshwater

Double Liner – Flowback/Produced

2014 Mid-America Environmental Compliance Conference

Freshwater Impoundment – 300,000 barrels

2014 Mid-America Environmental Compliance Conference

Water Quality Example

Parameter Blended Flowback/Produced Groundwater (Freshwater)Total Dissolved Solids (TDS) mg/L 11,100 35,600 233Conductivity (µmhos/cm at 25C) 30,400 139,000 449pH 6.36 6.57 7.74Chloride (mg/L) 6,300 22,900 18.1Sodium (mg/L) 2,680 8,120 6.75Calcium (mg/L) 811.0 2,610.0 81.6Magnesium (mg/L) 59.7 183.0 19.9Sulfate (mg/L) 4.62 3.3 36.2Barium?Strontium?

Watch for:• Incompatibility with Liners• Scaling and Precipitation Potential

Don’t want any leaks

Thank you!

(marcelluscoalition.org)

2014 Mid-America Environmental Compliance Conference

The Marcellus Shale recently surpassed the 12 BCF per day mark as outlined in various press reports based on the latest Energy Information Administration data.  If the Marcellus Shale region were a country, it would be the eighth largest natural gas producer in the world.  In other words, the Appalachian Basin is the region for business development, investment, and advocacy – with MSC membership at the heart of it all.