1

Issues and Options

for the BLM

Geologic Carbon Dioxide Geologic Carbon Dioxide Capture and SequestrationCapture and Sequestration

Angela Zahniser Air Resource Specialist,

Soil, Water, and Air Group Bureau of Land Management

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What is CCS?

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• 1. Deep Saline Formations

• 2. Oil Wells for Enhanced Oil Recovery (EOR)

• 3. Depleted Oil and Gas Reservoirs

• 4. Unmineable Coal Seams

-2 millimeters- Green = water Red = Rock Black = CO2

Green = CO2

4 Methods of Deploying CCS:

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5

Greenland ice Melting 1992, 2002, and 2005

1992 2002 2005

Source: ACIA, 2004 and CIRES, 2005

In 1992 scientists measured this amount of melting in Greenland as indicated by red areas on the map

Ten years later, in 2002, the melting was much worse

And in 2005, it accelerated dramatically yet again

Greenland summer surface melting, 1992-2005

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Shrinking Mountain Glaciers

High-elevation ice and snow near the equator does not vary much except when climate is changing globally.

The decline between 1912 and 2000 was 81%

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Muir Glacier, Alaska, 1941-2004

NSIDC/WDC for Glaciology, Boulder, compiler. 2002, updated 2006. Online glacier photograph database. Boulder, CO: National Snow and Ice Data Center.

August 1941 August 2004

Coastal Glaciers are Retreating

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Science, Politics, and COScience, Politics, and CO22

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Continued…

• Desired ppmv to avoid > 2o C change: 450 ppmv

• Emissions• World 2004: about 25,600 Mt CO2

» (U.S. = 5790 Mt CO2, about 22%)

• World BAU by 2030: 44,000 Mt CO2 » (U.S.> 7950 Mt CO2)

• World BAU by 2050: 51,000 Mt CO2

• World BAU: by 2100: > 72,000 Mt CO2

•World Stabilization Target Emissions by 2100:

<7,700 Mt CO2

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Why CCS?• Has great potential to mitigate a large amount in a short period of

time – NOT a long-term solution, but buys time for integration of

renewable energy sources into the economy

• CCS could provide 15 to 55% of the cumulative mitigation effort worldwide until 2100

• Potential to store 220,000 - 3,000,000 MtCO2 cumulatively up to 2100Estimated Storage Capacities in U.S. Geological Formations:

Geologic Formation Estimated Capacity in Mt CO2

Onshore Deep Saline Formations 2,730,000 Onshore Saline Basalt Formations 240,000 Depleted Gas Fields 35,000 Deep Unmineable Coal Seams 12,000 Depleted Oil Fields with EOR potential 12,000

TOTAL: 3,000,000 Mt CO2

11 CCS is relatively new, but not so new • Approved by IPCC in September 2005

• Published December 2005• Written by over 100 authors from 30

countries, all continents • Extensively reviewed by over 200

experts• Presented at UNFCCC COP-11/ Kyoto

COP/MOP-1 in Montreal

CCS is being extensively studied by high-profile

environmental organizations and energy companies, governments,

universities, scientists, etc.

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15JAF02609.PPT Advanced Resources International

CO2Injection

CO2Injection

CO2 SourceCO2 SourceOil to MarketOil to Market

Production WellProduction Well

CO2Recycled

CO2Recycled

Current Water Oil Contact

Current Water Oil Contact

Original Water

Oil Contact

Original Water

Oil Contact

Stage #1Stage #1

Stage #2Stage #2

Stage #3Stage #3TZ/ROZTZ/ROZ

Unswept AreaUnswept Area

Oil BankOil Bank

Swept AreaSwept Area

Saline ReservoirSaline Reservoir

INTEGRATING CO2-EOR AND CO2 STORAGE

Kuuskraa, V.A. and Koperna G.J., “Assessing and Expanding CO2 Storage Capacity In Depleted and Near-Depleted Oil Reservoirs” presented at GHGT-8, Trondheim, Norway, June , 2006.

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CCS EOR vs. Traditional EOR• Dual Purpose: Enhanced Oil Production AND

CO2 Sequestration

• Use human-produced CO2

• Use greatest amount possible

• Need to address: • Long-term management

• Monitoring

• Verification

• Liability

• Possible Crediting

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Risks• Human

– Leakage, movement of metals to potable aquifers– Only in high concentrations

• Environmental – Leaks could be detrimental to plants, subsurface

animals

• CO2 pipelines: similar to or lower than those posed by

hydrocarbon pipelines

• Geological storage:

– comparable to risks of current activities (natural gas storage, EOR, disposal of acid gas)

“With appropriate site selection…a monitoring program to detect problems, a regulatory system,

and the appropriate use of remediation methods to stop or control CO2 releases if they arise, the local health, safety and environment risks of geological

storage would be comparable to risks of current activities such as natural gas storage, EOR, and

deep underground disposal of acid gas.”

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Barriers

• Lack of a Regulatory Framework

• Short and Long term liability measures, including siting, leakage and permanence

• Economic Viability (including who will pay for equipment as well as property rights and values)

• Establishing Pore Space Ownership/Management

• Ensuring Public Acceptability

• Labeling CO2 as a commodity versus a waste– One person’s trash is another person’s treasure

• Scientific and technological readiness

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Who’s Doing What?

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Why the BLM?Vast Land Area Site Selection and Suitability

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Benefits of CCS on BLM Lands• Capacity, Site

Selection & Suitability

• Property Rights

• Revenue/Royalty

• Public Good

• Public Interest– Scientific Interest

• BLM Experience

• Energy Security– EPAct 2005

Capacity Mt CO2

U.S. 3,900,000

Australia 700,000

Africa 430,000

Canada 1,300,000

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Benefits: BLM Experience

• In NM, CO, and WY the BLM has allowed the production, sale, pipeline transport, and/or injection of carbon dioxide, mostly for use in traditional enhanced oil recovery.

• McElmo Dome in Colorado produced 298 million cubic feet of naturally occurring CO2 in 2006

• These activities are important to note because: – The BLM is experienced in the leasing of land for CO2

extraction – BLM has permitted such activities, has administered rights

of way, and has collected royalties when CO2 is seen as a commodity.

– The BLM performed NEPA procedures when it approved the installation of pipelines across its lands

21Benefits: Energy Security and EPAct 2005

Size and nature of original, developed and undeveloped domestic onshore and offshore oil resources.

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Considerations for CCS on BLM Lands

• Get Involved

• Identify Prime CCS Locations

• Establish Monitoring and Verification Measures

• Establish Clear Siting Procedures

• Establish Clear Leasing Procedures

23 Considerations for CCS on BLM Lands

• Establish Clear Leasing Procedures– Modify reservoir management requirements to

include and/or call for CO2 injections and storage projects

– New category that encompasses both resource extraction and gas storage?

– Lease Determination May Include Establishing Management Of:

– Underground Pore and Reservoir Space

– ROWs

– APDs

– Gas Storage Units

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Considerations for CCS on BLM Lands

• Outline NEPA Process for CCS projects.

• Identify and Expand Staff Capacity

• Engage With the Public

• Establish Pore Space Ownership/Management

• Address Liability

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Risk Profile and Liability

Conceptual Risk Profile

Injectionbegins

Injection stops

2 x injection period

3 x injection period

n x injection period

Monitor

CalibrateModel

ValidateModel

ModelCalibrate

PostInjectionModel

ValidatePost

InjectionModel

Sally Benson, Lawrence Berkeley National Laboratory

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Recommendation: CCS EOR • In addition, CCS EOR could help to:

– establish a more robust pipeline infrastructure for facilitating possible future larger scale projects

– shape future legislation, protocols, and best management practices

– establish public confidence in the safety and security of geological

storage

– stimulate cooperation between Federal, non-government, and private organizations

U.S. Department of Energy, Office of Fossil Energy.

Summary report of assessment prepared by Advanced

Resources International.

February 2006.

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QUESTIONS ??

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