SOUTH DAKOTA SCHOOL OF MINES & TECHNOLOGY 2010 …images.sdsmt.edu/learn/presentations/Doll.pdf ·...

Wyoming Oil and GasConservation Commission

Thomas E. DollState Oil and GasSupervisor

SOUTH DAKOTA SCHOOL OF MINES & TECHNOLOGY2010 NEW HORIZONS in OIL and GAS CONFERENCE

October 7-9, 2010 Rapid City, South Dakota

Topic 1: An Update on Niobrara Shale Oil Activity in Eastern Wyoming

Topic 2: Well Stimulation Rules

Thomas E. Doll, PEState Oil and Gas SupervisorWyoming Oil and Gas Conservation Commissionhttp://wogcc.state.wy.us



An Update on Niobrara Shale Oil Activity in Eastern Wyoming



Laramie 80 Converse 42 Platte 30Goshen 16 Niobrara 2

HORIZONTAL APPLICATIONS FOR PERMIT TO DRILL as of 4 October 2010

PlatteNiobrara



Partial listing of Operators by County:

Goshen:•EOG Resources•ChesapeakeLaramie:•Anadarko E&P•MBI Oil and Gas•QEP Energy•Texas American•RKI Exploration & Production•Rex Energy•Simray•Foundation•Noble Energy Platte:•EOG Resources•RKI Exploration & Production



Platte County

Api No. Spud Date Contractor Well TD Qtr-Qtr Sec Twp Rge

49-031-20059 7/14/2010 SST 1 HOGAN STATE 1-34 3,500 SW SE 34 23 67

49-031-20060 8/9/2010 RATHOLE DRILLING SHEPARD 1-29H 4,800 SW SE 29 23 66

49-031-20061 7/23/2010 RATHOLE DRILLING BARD RANCH 1-4 4,200 SW SW 4 23 66

49-031-20064 9/29/2010 SST 8 ASHENHURST 1-21H 4,775 NW NW 21 23 66

49-031-20065 10/1/2010 SST 8 STATE 1-16H 2,800 NW NW 16 22 67

Platte County Well Spuds CY 2010

Horizontal Wells in Yellow



Converse County


49-009-22489 8/24/2010 KEY ENERGY 140 HILDEBRAND 1R 13,670 NW SE 19 34 72

49-009-28220 1/29/2010 WYOMING CASING GH FEDERAL 24-22H 14,366 SE SW 22 38 73

49-009-28228 9/19/2010 CAPSTAR LOST SPRINGS STATE 14-13 1,750 SW SW 13 32 68

49-009-28233 3/14/2010 WYOMING CASING DCR FEE 44-25H 14,712 SE SE 25 37 73

49-009-28237 4/6/2010 WYOMING CASING SHL FEDERAL 31-1H 10,370 NW NE 1 39 75

49-009-28246 4/28/2010 CAPSTAR 311 BRECKENRIDGE UNIT 14-8 6,225 SW SW 8 35 67

49-009-28247 2/5/2010 WY CASING DCR STATE 11-15H 14,605 NW NW 15 37 73

49-009-28252 5/7/2010 CAPSTAR 11 BRECKENRIDGE UNIT 12-7 6,307 SW NW 7 35 67

49-009-28253 5/18/2010 CAPSTAR 11 BRECKENRIDGE 11-21-35-67 5,930 NW NW 21 35 67

49-009-28255 5/11/2010 RATHOLE DRILLING WAGONHOUND 33-72 13-1H 15,997 NE NW 13 33 72

49-009-28256 6/17/2010 WYOMING CASING DCR STATE 34-22H 10,114 SW SE 22 37 73

49-009-28257 8/4/2010 RATHOLE DRILLING SPILLMAN DRAW UNIT 35-73 17-1H 12,570 SW NE 17 35 73

49-009-28258 6/22/2010 WYOMING CASING BR FEDERAL 31-9H 10,111 NW NE 9 37 73

49-009-28261 7/13/2010 WYOMING CASING WAGONHOUND 33-71 30-1H 11,460 SE SW 30 33 71

49-009-28264 9/1/2010 RAINBOW DRILLING RIG 3 BOOT HILL RANCH 9-18-32-72 1,300 NE SE 18 32 72

49-009-28268 9/22/2010 RATHOLE MANAGERS HR FEDERAL 34-5H 10,221 SW SE 5 37 73

49-009-28270 8/23/2010 CAD 23 GH FEDERAL 21-26H 9,931 SE SW 23 38 73

49-009-28272 9/30/2010 RATHOLE DRILLING WAGONHOUND 33-72 14-1H 11,626 NE NE 14 33 72

49-009-28276 9/16/2010 CAPSTAR 314 SHAWNEE-LOVITT 24-26 2,200 SE SW 26 32 69

49-009-28277 9/14/2010 CAPSTAR 314 MIDDAUGH-WHITE RIVER 13-26 675 NW SW 26 32 69

49-009-28278 9/27/2010 CYCLONE 7 FEDERAL 14-8 8,710 SW SW 8 36 71

49-009-28279 9/29/2010 CYCLONE 7 FEDERAL 32-7 8,820 SW NE 7 36 71

49-009-28282 10/2/2010 RATHOLE DRILLING NORTHWEST FETTER U 33-72 1-1H 12,134 NW NE 1 33 72

49-009-28291 10/1/2010 RATHOLE DRILLING CLAUSEN RANCH UNIT 34-70 16-1H 10,985 NW NE 16 34 70

Converse County Well Spuds CY 2010



Goshen County


49-015-05205 3/27/2010 ROCKY MOUNTAIN RATHOLE SILVERTIP 06-34 M 8,650 NW SE 34 20 65

49-015-20184 5/15/2010 ROCKY MOUNTAIN RATHOLE PANDA 16-35H 8,404 NW NW 35 20 65

49-015-20188 9/9/2010 Wyoming Casing Service, Inc. BADGER RANCH 33-1 2,800 NE SE 33 29 63

49-015-20190 9/26/2010 3 D RATHOLE - DHS 19 ENTERPRISE US 27 ST 1-36H 6,641 NE NW 36 23 63

49-015-20191 9/21/2010 CYCLONE RIG 11 INTREPID US 22 STATE 1-16H 12,862 NW NE 16 23 63

49-015-20192 8/3/2010 DHS 20 JONES-STATE 43-16 7,300 NE SE 16 20 60

49-015-20195 10/2/2010 WYOMING CASING GLEAM US 11 STATE 1-16H 7,635 SE SW 16 22 64

49-015-20197 9/30/2010 ROCKY MT RATHOLE CONSTELLATION US 20 1-36 9,000 SW SW 36 25 63

Goshen County Well Spuds CY 2010



Laramie County


49-021-20573 8/20/2010 WHITE MOUNTAIN HANSON 35-32 7,800 SW NE 35 16 61

49-021-20598 1/18/2010 DHS 20 HOLGERSON 33-33 7,575 NW SE 33 18 60

49-021-20600 1/20/2010 DHS #19 ANDERSON 11-34 7,680 NW NW 34 18 60

49-021-20601 1/24/2010 DHS # 16 HANSON 35-41 7,679 NE NE 35 16 61

49-021-20608 2/2/2010 DHS 20 HOLGERSON 33A-33 7,670 NW SE 33 18 60

49-021-20639 7/22/2010 ENSIGN RIG 128 CHILD VO 30-9 9,660 SW NE 30 15 65

49-021-20642 8/12/2010 ENSIGN RIG 128 BERRY UN 13-9 9,979 NW SE 13 16 66

49-021-20643 7/22/2010 CYCLONE 12 SILO STATE 41-22 H 7,850 NE NE 22 15 64

49-021-20650 9/7/2010 Patterson Drilling / 189 ATCHISON 12-65-13-7 9,346 SW NE 13 12 65

49-021-20651 8/23/2010 Patterson 189 SHATTO 13-65-10-7 9,601 SW NE 10 13 65

49-021-20652 9/18/2010 SST #54 SHATTO 13-65-10-4H 14,231 NW NW 10 13 65

49-021-20652 9/15/2010 SST 54 SHATTO 13-65-10-4H 14,231 NW NW 10 13 65

49-021-20656 9/1/2010 H AND P 273 CHILD VO 30-73H 9,000 SW SW 30 15 65

49-021-20658 7/23/2010 DHS RIG 20 RUSSELL 22-21 7,800 SE NW 21 15 60

49-021-20659 8/14/2010 DHS 19 MALM 42-34 7,660 SE NE 34 18 60

49-021-20660 8/31/2010 WY Casing PEACEKEEPER 1-29H 12,500 SE NE 29 15 64

49-021-20662 8/12/2010 RATHOLE DRILLING GW RANCH 1-02H 7,150 NW NW 2 14 62

49-021-20664 9/21/2010 RATHOLE MANAGERS PROSSER 13-65-32-16H 14,113 SE SE 32 13 65

49-021-20667 9/3/2010 RATHOLE DRILLING HERRINGTON FARMS 1H 12,670 NE NE 26 15 62

49-021-20669 8/20/2010 WHITE MT 1 STATE 14-63-36-1H 7,450 SE SE 36 14 63

49-021-20671 9/1/2010 WHITE MT DRILLING 2 BORIE 16-4H 8,740 SE SE 4 13 68

49-021-20672 9/9/2010 WHITE MOUNTAIN STATE 15-65-36-1H 13,756 NW NW 36 15 65

49-021-20685 9/14/2010 MCRADY SILO STATE MONITOR 5 600 SE SE 22 15 64

49-021-20686 9/15/2010 MCRADY SILO STATE MONITOR 4 600 NE SW 22 15 64

49-021-20687 9/16/2010 MCRADY SILO STATE MONITOR 3 600 NW SE 22 15 64

49-021-20688 9/17/2010 MCRADY SILO STATE MONITOR 2 600 SE NE 22 15 64

49-021-20689 9/18/2010 MCRADY SILO STATE MONITOR 1 600 SW NE 22 15 64

Laramie County Well Spuds CY 2010



Niobrara County


49-027-20418 7/24/2010 KEY ENERGY PFISTER 1 7,700 NW NW 5 38 62

49-027-26560 4/22/2010 5 L DRILLING MENG FEDERAL 31-25 3,170 NW NE 25 38 62

49-027-26633 7/27/2010 ELLENBURG 15 FEDERAL 23-35 6,182 NE SW 35 39 63

49-027-26751 5/8/2010 MAC DRILLING #1 LONE CROW UNIT 16-1 8,200 NW NE 16 39 66

49-027-26762 3/17/2010 JIMS WATER SERVICE #2 STATE REED 3-16 1,650 NE NW 16 34 65

49-027-26763 3/26/2010 JIMS WATER SERVICE #2 STATE REED 13-3 1,550 SW SW 3 34 65

49-027-26764 3/25/2010 JIM'S WATER SERVICE #4 STATE REED 13-4 1,750 SW SW 4 34 65

49-027-26765 3/22/2010 JIMS WATER SERVICE #2 STATE REED 6-9 1,650 SE NW 9 34 65

49-027-26766 3/27/2010 JIMS WATER SERVICE #2 STATE REED 10-9 1,660 NW SE 9 34 65

49-027-26767 8/7/2010 CAPSTAR 314 STATE 32-36 5,868 SW NE 36 39 63

49-027-26768 10/4/2010 MAC DRILLING RIG 1 FIDDLEBACK 34-1 8,200 SW SW 34 40 66

49-027-26770 6/25/2010 MAC DRILLNG SOONER FED 33-27 8,650 NW SE 27 38 66

49-027-26772 9/3/2010 Ellenburg #14 NORTH CHARLES FED 6-33 4,000 SE NW 33 36 60

49-027-26772 8/24/2010 Ellenburg #14 NORTH CHARLES FED 6-33 4,000 SE NW 33 36 60

49-027-26773 8/2/2010 TLC 1 RT 1 3,500 NE NE 2 39 61

49-027-26779 9/28/2010 CAPSTAR DRILLING 314 WYATTE CREEK STATE 34-8 1,190 SW SE 8 34 65

Niobrara County Well Spuds CY 2010



Development Issues:

Finding shale oil and shale gas in economic quantitiesSeismic data is required to accurately predict the geology



From Jeff Schwarz, Noble Energy, August 31, 2010

Development Issues:Availability of Drilling Rigs & Crews: Horizontal drilling and hydraulic fracturing are essential – availability of rigs with experienced crews capable of drilling to 7,000 feet or greater vertically then 3,000 feet or more horizontally; availability of fresh water for drilling fluid make-up



Development Issues:Availability of Hydraulic Fracturing Equipment & Crews: hydraulic fracturing is essential to economic shale oil and shale gas wells; availability of fresh water for hydraulic fracturing of multiple completion stages from toe to heel of the horizontal leg



From Jeff Schwarz, Noble Energy, August 31, 2010

Development Issues: Local services specific to the oil and gas industry and the people to fill such jobs may not exist – most eastern Wyoming counties have not seen oil and gas activity for well over 20 years and most counties are rural with agricultural and ranching based economy’s; infrastructure limitations including county road and state highway infrastructure (agriculture based) and will require upgrade and gathering and sales pipeline systems are limited, in use or non-existent



WYOMING OIL AND GAS RULES AND REGULATIONS

WELL STIMULATION RULE OVERVIEW

15 September 2010Effective Date



BASIS FOR THE WELL STIMULATION RULES:

Four major issues were addressed:

1. the protection of groundwater and the identification of permitted water supply wells within ¼ mile of the drilling and spacing unit or Commission approved drilling unit;

2. clarification of requirements for well integrity, casing setting depths, casing design and cementing properties;

3. requirements for disclosure of well stimulation fluid chemical additives, compounds and concentrations or rates;

4. and requirements for the handling of the well stimulation load fluid recovered.



3) DISCLOSURE OF WELL STIMULATION FLUIDS - Plans

The Owner or Operator shall provide detailed information to the Supervisor as to the base stimulation fluid source. The Owner or Operator or service company shall provide to the Supervisor, for each stage of the well stimulation program, the chemical additives, compounds and concentrations or rates proposed to be mixed and injected, including:

(i) Stimulation fluid identified by additive type (such as but not limited to acid, biocide, breaker, brine, corrosion inhibitor, crosslinker, demulsifier, friction reducer, gel, iron control, oxygen scavenger, pH adjusting agent, proppant, scale inhibitor, surfactant);

(ii) The chemical compound name and Chemical Abstracts Service (CAS) number shall be identified (such as the additive biocide is glutaraldehyde, or the additive breaker is aluminum persulfate, or the proppant is silica or quartz sand, and so on for each additive used);




(iii) The proposed rate or concentration for each additive shall be provided (such as gel as pounds per thousand gallons, or biocide at gallons per thousand gallons, or proppant at pounds per gallon, or expressed as percent by weight or percent by volume, or parts per million, or parts per billion);

(iv) The Owner or Operator or service company may also provide a copy of the contractor’s proposed well stimulation program design including the above detail;

(v) The Supervisor may request additional information under this subsection prior to the approval of the Application for Permit to Drill (Form 1) or of the Sundry Notice (Form 4);




(vi) The Supervisor retains discretion to request from the Owner or Operator and/or the service company, the formulary disclosure for the chemical compounds used in the well stimulation(s).

(e) The Owner or Operator shall provide a detailed description of the proposed well stimulation design, which shall include:

(i) the anticipated surface treating pressure range;

(ii) the maximum injection treating pressure;

(iii) the estimated or calculated fracture length and fracture height.



3) DISCLOSURE OF WELL STIMULATION FLUIDS – Plans -CONFIDENTIALITY

(f) Upon prior request via Application for Permit to Drill (Form 1), and/or a comprehensive drilling/completion/recompletion plan, or by Well Completion Report (Form 3), or by Sundry Notice (Form 4), and/or by written letter to the Supervisor justifying and documenting the nature and extent of the proprietary information, the protection shall be provided consistent with Wyo. Stat. Ann. § 15-4-203(d) (v) of the Wyoming Public Records Act for the following records: “trade secrets, privileged information and confidential commercial, financial, geological or geophysical data furnished by or obtained from any person.”



3) DISCLOSURE OF WELL STIMULATION FLUIDS - Plans -RESTRICTIONS

(g) The injection of volatile organic compounds, such as benzene, toluene, ethylbenzene and xylene, also known as BTEX compounds or any petroleum distillates, into groundwater is prohibited. The proposed use of volatile organic compounds, such as benzene, toluene, ethylbenzene and xylene, also known as BTEX compounds or any petroleum distillates for well stimulation into hydrocarbon bearing zones is authorized with prior approval of the Supervisor. It is accepted practice to use produced water that may contain small amounts of naturally occurring petroleum distillates as well stimulation fluid in hydrocarbon bearing zones.



3) DISCLOSURE OF WELL STIMULATION FLUIDS - Plans - CASING PRESSURE MONITORING – During Well Stimulation

(i) During the well stimulation operation, the Owner or Operator shall monitor and record the annulus pressure at the bradenhead. If intermediate casing has been set on the well being stimulated, the pressure in the annulus between the intermediate casing and the production casing shall also be monitored and recorded. A continuous record of the annulus pressure during the well stimulation shall be submitted on Well Completion or Recompletion Log (Form 3) or on a Sundry Notice (Form 4).

(i) If during the stimulation, the annulus pressure increases by more than five-hundred (500) pounds per square inch gauge (psig) as compared to the pressure immediately preceding the stimulation, the Owner or Operator shall verbally notify the Supervisor as soon as practicable but no later than twenty-four (24) hours following the incident. The Owner or Operator shall include a report containing all details pertaining to the incident, including corrective actions taken, as an attachment to the Well Completion report (Form 3).



3) DISCLOSURE OF WELL STIMULATION FLUIDS – Post Stimulation(h) The Owner or Operator or service company shall provide the Supervisor,

on a Well Completion or Recompletion Log (Form 3), or on a Sundry Notice (Form 4) for an existing well, the following post well stimulation detail:

(i) The actual total well stimulation treatment volume pumped;(ii) Detail as to each fluid stage pumped, including actual volume by

fluid stage, proppant rate or concentration, actual chemical additive name, type, concentration or rate, and amounts;

(iii) The actual surface pressure and rate at the end of each fluid stage and the actual flush volume, rate and final pump pressure;

(iv) The instantaneous shut-in pressure, and the actual 15-minute and 30-minute shut-in pressures when these pressure measurements are available ;

(v) In lieu of (i) through (iv) above, Owner or Operator shall submit the actual well stimulation service contractor’s job log, without any cost/pricing data from the field ticket, or an Owner or Operator representative’s well treatment job log or any report providing the above required information. If information on the actual field ticket describes the Owner’s or Operator’s proprietary completion design and/or well stimulation design, confidentiality may be afforded per subsection (f) above.



4) WELL STIMULATION FLUID LOAD RECOVERY – Post Stimulation

(j) The Owner or Operator shall provide information to the Supervisor on Well Completion Report (Form 3) or on Sundry Notice (Form 4) as to the amounts, handling, and if necessary, disposal at an identified appropriate disposal facility, or reuse of the well stimulation fluid load recovered during flow back, swabbing, and/or recovery from production facility vessels. Storage of such fluid shall be protective of groundwater as demonstrated by the use of either tanks or lined pits. If lined pits are utilized to store fluid for use in well stimulation, or for reconditioning, for reuse, or to hold for appropriate disposal, then the requirements of Chapter 4 Section 1 of these rules shall be met to protect wildlife and migratory birds.



[email protected] 307-234-7147

Thanks to South Dakota School of Mines & Technology for this opportunity to speak. Questions?

mailto:[email protected]

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