ohio department of natural resources division of mineral resources management (dmrm) emergency...
TRANSCRIPT
Ohio Department of Natural Resources
Division of Mineral Resources Management
(DMRM)
Ohio Department of Natural Resources
Division of Mineral Resources Management
(DMRM)
Emergency Management AssociationOf Ohio- Spring Directors Seminar
Emergency Management AssociationOf Ohio- Spring Directors Seminar
Director – David Mustine
Assistant Director – Scott Zody
DMRM Chief - John Husted
Presentation by – Tom Tugend
Director – David Mustine
Assistant Director – Scott Zody
DMRM Chief - John Husted
Presentation by – Tom Tugend
On Behalf Of:On Behalf Of:
Division of Mineral Resources Management (DMRM)
Provides for the Safe and
Environmentally Sound Development
and Restoration of Mineral and
Fossil Fuel Extraction
Sites
• Oil/Gas Well Permitting, Drilling, Production, Plugging
• Industrial Mineral Permitting & Mining
• Mine Safety
What We Oversee
• Coal Mine Permitting, Mining and Reclamation
• Abandoned Mined Lands Reclamation
• Orphan Well Plugging
• EPA Certified Lab
What We Oversee - Continued
Our Authority For The Regulation of:
• Oil and Natural Gas Wells• Salt Water Injection Wells• Brine Haulers• Administering the Orphan Well
Program
Ohio Revised Code 1509Ohio Administrative Code 1501
Our Authority For The Regulation of:
• Oil and Natural Gas Wells• Salt Water Injection Wells• Brine Haulers• Administering the Orphan Well
Program
Ohio Revised Code 1509Ohio Administrative Code 1501
Permitting OverviewPermitting Overview
•Leasing Precedes Permitting
•Owner Registration (Bonding/Insurance)
•Permitting: Spacing, Casing, Pre-Permit Site
Review, Permit Conditions, Restoration Plan
•Leasing Precedes Permitting
•Owner Registration (Bonding/Insurance)
•Permitting: Spacing, Casing, Pre-Permit Site
Review, Permit Conditions, Restoration Plan
Spacing Categories Distance
Depth Acres Unit Lines Bet. Wells
0 to 1,000’ 1 100’ 200’
1 to 2K 10 230’ 460’
2 to 4K 20 300’ 600’
4,000 + 40 500’ 1,000’
Field Inspection and EnforcementField Inspection and Enforcement
Inspection• Pre-Permit Site Review• Critical Phases of Drilling and Approval of Preliminary Site Restoration• Routine Inspection of Production Wells• Response to Complaints/Public Assistance• Oversight/Approval of Plugging and Final Restoration
Inspection• Pre-Permit Site Review• Critical Phases of Drilling and Approval of Preliminary Site Restoration• Routine Inspection of Production Wells• Response to Complaints/Public Assistance• Oversight/Approval of Plugging and Final Restoration
Field Inspection Cont.Field Inspection Cont.
Enforcement •Progressive Enforcement with Resolution at Lowest Level: Compliance Notices, Orders, Civil and Criminal Actions and Consent Agreements, Loss of Permitting – Permit Block, Suspension of Producing Operations
Enforcement •Progressive Enforcement with Resolution at Lowest Level: Compliance Notices, Orders, Civil and Criminal Actions and Consent Agreements, Loss of Permitting – Permit Block, Suspension of Producing Operations
Prevention of Impacts to the Environment and Protection of Public SafetyPrevention of Impacts to the Environment and Protection of Public Safety
Key Factors:• Permitting• Well Site Construction • Well Construction !• Well Control !• Fluid Control !• Oversight
Key Factors:• Permitting• Well Site Construction • Well Construction !• Well Control !• Fluid Control !• Oversight
• Complaints Posing Threats to Public Safety and the Environment• Drilling Operations – Protection of Fresh Water/Public Safety/Environment• Plugging Operations• Routine Inspections – Public Assistance
Our Field Enforcement Focus/PriorityOur Field Enforcement Focus/Priority
• Well Site Identification • Idle Wells• Pollution/Contamination• Restoration• Brine Disposal• Gas Leaks
Most Common ViolationsMost Common Violations
Hydraulic Fracturing
Fracking
Fracing
Hydraulic Fracturing
Fracking
Fracing
Good or BadWhat is the Real Story
Good or BadWhat is the Real Story
A Process Using Pressure and Fluid to
Break Open (Fracture) the Oil and or
Natural Gas Formation to Permit Production
that Otherwise Would be Not be Economic.
Hydraulic Fracturing
Is this a New Process – NO
Almost Every Well Drilled in Ohio Since
the Late 1970’s has Been Hydraulic
Fractured (Approximately 80,000 Wells have
Been Hydraulic Fractured in Ohio)
Hydraulic Fracturing Cont.
Hydraulic Fracturing Cont.
The Hydraulic Fracturing Fluids Consist of:• Water• Sand (proppant)• Chemicals (to Make the Water Viscous to
Carry the Sand), Scale Inhibitors, HCL.
99+% Sand and Water
The Hydraulic Fracturing Fluids Consist of:• Water• Sand (proppant)• Chemicals (to Make the Water Viscous to
Carry the Sand), Scale Inhibitors, HCL.
99+% Sand and Water
Hydraulic Fracturing Cont.
Has Hydraulic Fracturing Contaminated
Groundwater in Ohio – NO
With Proper Well Construction, Well Control
and Fluid Control, Impacts to the Environment
are Prevented.
Has Hydraulic Fracturing Contaminated
Groundwater in Ohio – NO
With Proper Well Construction, Well Control
and Fluid Control, Impacts to the Environment
are Prevented.
Hydraulic Fracturing Cont.
The Fracturing Fluids are Maintained Inside
The Steel Cased Well Bore and or in Lined
Pits or Steel Tanks then Recycled (Reused)
Or Properly Disposed of Under the Authority
the Division of Mineral Resources or Ohio
EPA.
The Fracturing Fluids are Maintained Inside
The Steel Cased Well Bore and or in Lined
Pits or Steel Tanks then Recycled (Reused)
Or Properly Disposed of Under the Authority
the Division of Mineral Resources or Ohio
EPA.
FracContainment
Target shale is thousands of feet below any drinkable ground-water layers.
Thick layers of shale and limestone are above and below shale keep fractures from penetrating upward and downward into adjacent formations.
Companies do not want to use excess frac materials and power and do not want to produce water
Very little additives in frac fluid (0.05%)
Fluid is injected into undrinkable brine zones, very unlikely to migrate
Graphic from Kostelnick (2010).
Marcellus Formation
Total Permits Issued: 44,367 Drilling - 21,507 Plugging - 22,860
Wells Drilled: 16,409
Wells Plugged: 15,298
Total Ohio Wells: 64,427
Oil and Gas Activity 1990-2010
Wells Drilled – The Early Years
Wells Drilled – The Early Years
Year Wells Drilled
1890 25931895 61471900 65551930 2134
1980 51001981 60851982 4830
Year Wells Drilled
1890 25931895 61471900 65551930 2134
1980 51001981 60851982 4830
2010 Ohio Oil/Gas Information2010 Ohio Oil/Gas Information
• 431 Wells Were Drilled in 44 Counties
• 429 Wells Were Plugged
• 4.78 Million Barrels of Oil Produced
• 77 Billion Cubic Feet of Gas Produced
• 431 Wells Were Drilled in 44 Counties
• 429 Wells Were Plugged
• 4.78 Million Barrels of Oil Produced
• 77 Billion Cubic Feet of Gas Produced
Horizontal Shale Drilling
Marcellus Shale Utica Shale
Why all the Interest/Press ?
What is the Difference Between a Traditional Well and a Horizontally DrilledShale Well ?
So, why is this a big deal?Potential Production
A “typical” conventional gas well in the Appalachian Basin produces 100–500,000 CF of gas per day and 200–500 MMCF in its life. (500 MMCF x $4/MCF* = $2M gross revenue; creating a $250K royalty payment @12.5% of gross.)
Horizontal Marcellus (or Utica?) well may produce around 2–10 MMCF of gas per day and are projected to average around 4 BCF of gas over their life, per well. (4 BCF x $4/MCF* = $16M gross revenue, creating a $2M royalty payment @ 12.5% of gross.)
KEY M = thousand MMCF = million cubic feet (or 1,000 MCF) MCF = thousand cubic feet BCF = billion cubic feet [Division of Geological Survey 2011]
Differences Between a Horizontal Well andTraditional Vertical Well
Everything is Bigger – It Takes Longer Well Site 3-5 acres vs. 1-2 acres Shale Rig is Much Larger Associated Equipment – More of it One Month/Well to Drill vs. One Week Up to 6 Wells Can be Drilled From One
Well Site
Sou
rce:
U.S
. EIA
, 201
0.
Many shale gas plays are now developing across the United States and Canada.
We are not alone….
Marcellus Shale ActivityPennsylvania
Marcellus Shale ActivityPennsylvania
2004: Range Resources Drilled the First Horizontal Marcellus Shale Well
2008: 195 Marcellus Wells Drilled
2009: 763 Marcellus Wells drilled
2010: 1,454 Marcellus Wells Drilled
2004: Range Resources Drilled the First Horizontal Marcellus Shale Well
2008: 195 Marcellus Wells Drilled
2009: 763 Marcellus Wells drilled
2010: 1,454 Marcellus Wells Drilled
Marcellus Shale – Ohio ActivityMarcellus Shale – Ohio Activity
To Date:
Vertical Permits Issued: 67
Vertical Wells Drilled: 44
Horizontal Permits Issued: 10
Horizontal Wells Drilled : 2
To Date:
Vertical Permits Issued: 67
Vertical Wells Drilled: 44
Horizontal Permits Issued: 10
Horizontal Wells Drilled : 2
As of 03-08-11As of 03-08-11
Utica Shale – Ohio Activity*Utica Shale – Ohio Activity*
To Date:
Vertical Permits Issued: 19
Vertical Wells Drilled: 9
Horizontal Permits Issued: 4
Horizontal Wells Drilled : 1
To Date:
Vertical Permits Issued: 19
Vertical Wells Drilled: 9
Horizontal Permits Issued: 4
Horizontal Wells Drilled : 1
As of 03-08-11As of 03-08-11*Permits issued since December 2009*Permits issued since December 2009
Generalized Geology and Profile of a Utica Shale Well
Sandstone: A Typical Reservoir Rock
Sandstone: A Typical Reservoir Rock
A porous sandstone prepared for viewing under amicroscope reveals pore spaces (blue areas).
SANDGRAIN
PORE
PORE
SANDGRAIN
SANDGRAIN
Gra
phic
from
Kos
teln
ick
(201
0).
Shale is extremely fine grained with many very small pore spaces.
UTICA SHALEUTICA SHALE
Risks
Poor Well Site Construction – Erosion and Sedimentation, Impact to Wetlands
Road Impact/Damage Spills (Oil/Brine/Drilling Fluids)
On-Site/Off-Site Uncontrolled Releases of Natural Gas,
Oil, Completion Fluids
Risks Cont.
Fires During Drilling/Well Completion Injury to Rig Hands While Drilling Lightning Strikes Tank Fires
Tank LaunchingTank Launching
ODNR Division of Mineral Resources (DMRM)Management Contact Information
ODNR Division of Mineral Resources (DMRM)Management Contact Information
Columbus Office: 614-265-6633
Uniontown Office: 330-896-0616
New Philadelphia Office: 330-339-2207
Cambridge Office: 740-439-9079
Jackson Office: 740-286-6411
Salem Office: 330-222-1527
Mount Vernon Office: 740-392-4499
Findley Office: 419-429-8304
Lebanon Office: 937-933-6717
Columbus Office: 614-265-6633
Uniontown Office: 330-896-0616
New Philadelphia Office: 330-339-2207
Cambridge Office: 740-439-9079
Jackson Office: 740-286-6411
Salem Office: 330-222-1527
Mount Vernon Office: 740-392-4499
Findley Office: 419-429-8304
Lebanon Office: 937-933-6717
ODNR Division of Mineral Resources (DMRM)Management Contact Information
ODNR Division of Mineral Resources (DMRM)Management Contact Information
See DMRM Web Site for Additional County Contact
Information and Information on Shale Drilling and DMRM’s
Programs
DMRM Web Site: Go to ODNR’s Web Site:
http://ohiodnr.com/, Click on “Other Divisions”,
Click On “Mineral Resources” and Click on “Oil and Gas”
See DMRM Web Site for Additional County Contact
Information and Information on Shale Drilling and DMRM’s
Programs
DMRM Web Site: Go to ODNR’s Web Site:
http://ohiodnr.com/, Click on “Other Divisions”,
Click On “Mineral Resources” and Click on “Oil and Gas”