HYDRAULIC*FRACTURING* Prepared by: PRESENTATION* Prepared by May, - - PowerPoint PPT Presentation

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HYDRAULIC*FRACTURING* Prepared by: PRESENTATION* Prepared by May, - - PowerPoint PPT Presentation

HYDRAULIC*FRACTURING* Prepared by: PRESENTATION* Prepared by May, 2012 WHO*ARE*WE?* Lochend*Industry*Producers*Group*(LIPG)*is*a*collaboraGon*of* five*CalgaryLbased*oil*and*gas*companies*that*operate*


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SLIDE 1

Prepared by:

HYDRAULIC*FRACTURING* PRESENTATION*

May, 2012

Prepared by

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SLIDE 2

WHO*ARE*WE?*

Lochend*Industry*Producers*Group*(LIPG)*is*a*collaboraGon*of* five*CalgaryLbased*oil*and*gas*companies*that*operate* independently*in*the*Lochend*area*of*Rocky*View*County.** LIPG*companies*include: **

  • Equal*Energy*Ltd.*
  • NAL*Resources*Ltd.**
  • PetroBakken*Energy**
  • Tamarack*Valley*Energy*
  • Tri*Oil*Resources*Ltd.*
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SLIDE 3

OUR*PURPOSE*

The* purpose* of* the* LIPG* is* to* collaborate* on* oil* and* gas* infrastructure*and*stakeholder*engagement*efforts*in*order*to:*

  • Create*opportuniGes*to*engage*the*community*and*gather*input*
  • Inform*about*area*acGviGes**
  • Educate*and*provide*operaGonal*informaGon**
  • Minimize*impacts*on*the*community*and*environment*
  • Build*trusGng*relaGonships*
  • Invest*in*the*community*
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SLIDE 4

OUR*COMMITMENT*

  • The* Lochend* Industry* Producers* Group* is* comprised* of* reputable*

companies* that* have* a* proven* track* record* and* are* commi%ed( to( integrity,(safe(and(fair(prac3ces,(partnering(with(the(community(for( responsible(resource(development.(

  • We( are( accountable( for( our( ac3ons( and( operate( in( a( safe( and(

responsible( manner( to* protect* the* environment* and* miGgate* disturbance*to*impacted*stakeholders.*

  • We(work(closely(with(regulators,(community(leaders(and(impacted(

landowners* to* ensure* we* comply* with* regulaGons* and* address* concerns*in*an*honest*and*Gmely*manner.*

  • Community* investment,* employment* and* tax* revenue* are* an*

important*part*of*adding(value(and(benefit(to(the(community.*

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SLIDE 5

LOCHEND**** ACTIVITY*MAP*

7 8 17 18 19 20 29 30 31 32 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 10 11 12 13 14 15 22 23 24 25 26 27 34 35 36 5 6 7 8 1 17 18 19 20 2 2 29 30 31 32 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 1 2 3 10 11 12 13 14 15 22 23 24 25 26 27 34 35 36 4 5 6 7 8 9 1 17 18 19 20 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 10 11 12 13 14 15 22 23 24

Highway 567 Highway 22 H i g h w a y 7 6 6

Big Hill Springs

Gas to TriOil 5-11-29-4W5 3-20 Battery

Drilled HZ "Pad Well"

WELL LEGEND

Licensed Not Drilled

R2W5 R3 R4 R2W5 R3 R4 T26 T27 T28 T28 T27 T26

  • LIPG*member*companies*have*

approximately*45*drilled*in*the* Lochend*area*

  • LIPG*collecGve*drilling*

projected*for*2012*is* approximately*40*locaGons*

  • The*target*zone*is*a*formaGon*

called*‘Cardium’*

  • The*Cardium*formaGon*is*

approximately*2200m*below* the*surface*

  • Produces*a*mixture*of*sweet*

(zero*hydrogen*sulphide*H2S)* natural*gas*and*crude*oil*

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SLIDE 6

LIFE*CYCLE*OF*A*WELL*

The*life*cycle*of*a*well* begins*long*before*the* drilling*rig*breaks*ground* and*is*not*fully*complete* unGl*the*disturbed*area*is* returned*to*its*natural*state.** Through*each*stage*of*the* life*cycle*acGviGes*are*

  • ngoing*in*the*areas*of*

stakeholder*engagement,* regulatory*compliance,* health*and*safety*as*well*as* evaluaGng*and*miGgaGng* environmental*impacts.*

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SLIDE 7

WHAT*IS*HYDRAULIC*FRACTURING?

Fracturing*in*its*simplest*form:*

  • CreaGng*a*crack*in*the*rock*(1L2*mm)*
  • Filling*the*crack*with*sand*(also*called*

proppant)*

  • Create*pathways*for*oil*producGon*to*

flow*more*easily* Fracturing*(frac)*is*a*well*sGmulaGon* process*performed*to*improve*producGon* from*geological*formaGons*where*natural* flow*of*hydrocarbons*are*restricted.*

Source:*ERCB*

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SLIDE 8

WHAT*IS*A*FRACTURE?*

Fractures*are:*

  • Cracks*in*the*rock*
  • Normally*verGcal*
  • IniGate*at*the*wellbore*and*

grow*away*from*the* wellbore*in*two*dimensions*

  • Grow*verGcally*unGl*they*

can*no*longer*crack*rock* (barrier),*and*grow* horizontally*away*from*the* well*(This&happens&at&the&same&

  • me)&

Source:*Norm*Warpinski*Hydraulic*Fracturing* Technology*Conference*2007*

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SLIDE 9

WHAT*IS*FRAC*FLUID?*

  • Both*water*and*hydrocarbon*based*fracing*fluids*may*be*used*

based*on*the*rock*characterisGcs.*Currently*water*fracs*are* being*conducted*in*Lochend.*

  • Water*based*fracture*fluid*is*99.6%*water*
  • Use*of*guar*bean*as*a*viscosifyer*(thickener)*by*mixing*it*dry*
  • n*site*(no*carrier*fluids*or*addiGves)*
  • Biodegradable*(green)*chemical*addiGves*are*being*used*

regularly*and*diesel*has*been*eliminated*and*replaced*with* clean*mineral*oil*in*fracture*operaGons*in*the*Lochend*area.**

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SLIDE 10

WHAT*IS*FRAC*FLUID?*

  • A*typical*frac*fluid*requires*certain*addiGves*depending*on*the*

reservoir;*

  • Viscosifiers*or*FricGon*Reducer*
  • Viscosity*Breaker*
  • Clay*Stabilizer*(sea*water*subsGtute)*
  • Flowback*Enhancer**
  • Scale*Inhibitor*
  • Bactericide*(for*natural*occurring*bacteria*in*water)*
  • pH*Control*(to*enhance*effecGveness*of*viscosifier)*
  • Water*used*in*the*frac*process*is*tested*and*either*transferred*

to*the*next*well*locaGon*for*reuse,*or*disposed*of*at*an* Alberta*licensed*disposal*facility.**

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SLIDE 11

COMPOSITION*OF*A*FRAC*FLUID*

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SLIDE 12

COMMON*FRAC*FLUID*ADDITIVES*

Ingredient* Common Name* Frac Fluid use* Common use*

Gellant*

Guar bean gum*

Water viscosifier, forms gel to suspend sand* Thickener used in cosmetics, toothpaste, and sauces *

Gellant*

Cellulose polymer*

Water viscosifier (thickener) to suspend sand* Thickener for cosmetics and household products. *

Crosslinker*

Borate salt*

Increases gel viscosity* Used in laundry detergents, hand soaps and cosmetics*

Gel Breaker*

Sodium borate salt *

Gel breaker to lower viscosity for efficient cleanup* Laundry detergent and pharmaceuticals*

Gel Breaker*

Cellulase/Hemicellulase*

Gel breaker (enzyme) to lower viscosity for efficient cleanup* Used in commercial food processing, laundry detergents, and

  • pharmaceuticals. *

Friction Reducer*

Polyacrylamide*

Minimizes friction between fluid and pipe* Flocculant for water treatment, soil conditioner for farming*

Clay Control*

Choline compound*

To prevent clay swelling when contacted by water* Additive for feed/farming*

Flowback Enhancer*

Surfactants*

Promotes the return of fluid from the formation to the wellbore* Cosmetics*

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SLIDE 13

COMMON*FRAC*FLUID*ADDITIVES*

Scale Inhibitor(

Phosphonate(

Prevents scale from forming

  • n pipes(

Pharmaceuticals, water treatment, desalination

  • systems. (

pH Control(

Sodium or potassium carbonate*

Maintains effectiveness of gel crosslinker* Used in washing soda, soap, hot tubs and water softeners *

Carrier Fluid(

Mineral oil*

Carrier fluid for powdered additives* Cosmetics, pharmaceuticals, lubrication electric components *

Bactericide(

DBNPA (amide)*

Kills bacteria in mix water* Cooling tower treatment*

Pre-Frac well treatment(

Hydrochloric Acid *

Cleans and dissolves scale* Cleaner (muriatic acid), stomach acid*

Carrier Fluid Antifreeze(

Propylene Glycol*

Freeze proofing of water based carrier fluids* Pharmaceuticals (cough syrup), food processing*

Foamer/Gellant(

Surfactant*

Foams water and Nitrogen* Hand Soap*

Carrier for Foamer( Isopropanol*

Additive carrier fluid* Rubbing Alcohol*

Mutual Solvent (

Oil and water soluble solvent* Enhances oil flow in fracture* Unique non-hazardous

formulation*

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SLIDE 14

CONTROVERSIAL*FRAC*ADDITIVES*

No(Benzene,(Toluene,(Ethylbenzene(Xylene((BTEX)(in(water( based(fracs(fluids.(

  • BTEX*is*naturally*occurring*in*crude*oil,*coal*and*gas*and*is*

brought*to*surface*and*handled*appropriately*through* government*regulaGons,*equipment*use*&*employee/contractor* training.*

  • BTEX*does*occur*in*hydrocarbon*based*frac*fluids*along*with*the*

produced*oil.*

  • Produced*BTEX*is*found*in*paints,*rubber,*adhesives,*inks,*

cosmeGcs*and*pharmaceuGcal*products*and*vehicle*exhaust.*

  • Other*natural*sources*of*BTEX*include*emissions*from*

volcanoes,*forest*fires*

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SLIDE 15

FRACTURING*MODELING*

A*fracturing*model*encompasses:**

  • microseismic*data*(if*available)*
  • rock*properGes*
  • potenGal*fracturing*systems*
  • proppant*type****

Lochend*fracs*are*designed*to*grow*approximately*120*m*from* either*side*of*the*wellbore*and*be*approximately*40L50m*in* height*and*less*than*2mm*in*width.* Models(are(a(very(accurate(predic3on(of(( the(fracturing(proper3es(

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SLIDE 16

FRACTURING*MODELING

Fracing*modeling*designs*implemented*in*the*Lochend*area* stem*from*a*number*of*compiled*studies;*

  • Lab*analysis*of*the*rock*cukngs*

from*the*drilling*operaGon*

  • Lab*tesGng*of*the*rock*cukngs*

reacGon*to*various*fracturing* fluids*

  • Micro*seismic*studies*done*during*

fracture*operaGons*(not* conducted*for*every*well*–*usually*

  • ne*per*area)*
  • Rock*compressive*strengths,*

reservoir*size*and*modeling* simulaGons*

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SLIDE 17

MODELING*FRACS*

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SLIDE 18

MONITORING*FRACS*

  • Technology*used*to*monitor*and*measure*the*frac*height,*

length*and*orientaGon*of*the*fracture*is*called*microseismic**

  • Microseismic*can*only*be*conducted*when*there*is*a*verGcal*

well*in*close*proximity*so*that*the*monitoring*equipment*can* be*lowered*into*the*well*to*detect*the*sound*waves**

  • Several*wells*have*been*monitored*using*microseismic*in*the*

Cardium*formaGon*in*Central*Alberta*

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SLIDE 19

MONITORING*FRACS*

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SLIDE 20

EXAMPLE*–*MICROSEISMIC*DATA*

Source:*SPE*145949*Hydraulic*Fracture*–*Height*Growth:*Real*Data*

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SLIDE 21

HORIZONTAL*DRILLING*

  • Drilling*one*horizontal*well*is*equivalent*to*drilling*5L10*verGcal*

wells*

  • Surface*impact*and*footprint*is*smaller*
  • MulGLwell*pads*are*uGlized*by*the*LIPG*member*companies,*

where*possible*

  • A*typical*duraGon*for*drilling*a*horizontal*well*in*the*Lochend*

area*is*approximately*18L20*days*

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SLIDE 22

INTER*WELLBORE*COMMUNICATION*

ERCB*BulleGn*2012L02*has*directed*energy*companies*“to*plan* safe*and*effecGve*hydraulic*fracturing*operaGons*and*report*any* unintenGonal*communicaGon*between*energy*wellbores”**

  • Wellbores*are*idenGfied*and*a*risk*assessment*is*conducted*to*

understand*the*potenGal*for*communicaGon*with*nearby*wellbores**

  • Plans*created*to*miGgate*risk*include:***
  • shukng*in*producing*wells*
  • installing*pressure*monitoring*equipment*on*the*wellheads*
  • pumping*fluid*down*nearby*wellbores*to*“kill”*the*well**
  • modifying*the*fracturing*operaGons*(i.e.*smaller*fracs*in*some*stages,*or*

even*skipping*stages*on*mulGLstage*fracturing*operaGons)*

  • monitoring*wells*and*working*closely*with*other*producers*in*the*area*
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SLIDE 23

HORIZONTAL*DRILLING*

Source:*EnCana*

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SLIDE 24

WELLBORE*CONSTRUCTION*

  • During*well*construcGon*the*wellbore*is*cased*and*cemented*
  • Surface*casing*is*meant*to*safeguard*and*protect*shallow*fresh*

water*zones*from*contaminaGon*

  • The*cement*effecGvely*seals*off*and*isolates*all*fresh*water*zones*

from*the*oil*and*gas*zones*and*isolates*the*oil*and*gas*zones*from* each*other*

  • Fracturing*occurs*aqer*the*verGcal*part*of*the*well*has*been*drilled,*

surface*cased*and*cemented*

  • Fracturing*occurs*in*the*zone*of*interest*far*below*the*fresh*water*

zones* Average*Lochend*Cardium*formaGon*2200m* Average*Lochend*potable*water*aquifer*~45m*

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SLIDE 25

TYPICAL*LOCHEND*WELLBORE*DIAGRAM*

Surface Casing Cement Production Casing Cement 219.1 mm x 35.72 kg/m Surface Casing @ between 300 - 600m Average Cardium Total Vertical Depth (TVD) 2200m Stage Collar Packer Debris Sub 114.3 mm x 17.26 kg/m Production Casing and Liner Average Potable Water Depth 45m Ball Activated sleeve Toe Circulating Sub and Float Shoe Average Horizontal Lateral Leg 1000 - 1500m Hydraulic Sleeve Packer Average Cardium Total Depth 3600m

Source: PetroBakken Energy

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SLIDE 26

*****WATER*PROTECTION*

  • Site(specific(potable(water(wells(are(

tested(to*ensure*the*quality*of*the* landowner’s*water*well*is*known*and*a* baseline*has*been*established.*

  • Assess(setbacks(relaGng*to*drainage*and*

water*bodies.*

  • ERCB(Direc3ve(8(Surface(Casing(Depth(

Requirements,*regulates*a*depth* calculaGon*which*all*industry*completes*to* determine*the*sekng*depth*of*surface* casing.*Surface*casing*is*a*permanent* structure*of*the*wellbore*that*effec3vely( protects(inPuse(aquifers(that*supply* domesGc*water*wells.*

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SLIDE 27

WATER*USAGE*&*PROTECTION*

  • Drilling*a*typical*horizontal*Cardium*well*in*this*area*uGlizes*

approximately*750*m3*of*water*when*using*water*based*drilling*mud*

  • Over*an*average*18*day*drilling*Gmeframe,*this*amount*is*equivalent*

to*2.5*truckloads*of*water*per*day*(16m3/load)*

  • Surface*casing*safeguards*and*protects*shallow*fresh*water*zones*

from*potenGal*contaminaGon*by*effecGvely*sealing*off*each*layer*of* rock*to*limit*exposure*

  • Water*wells*in*the*Lochend*area*produce*from*an*average*depth*of*

45*metres*

Water(protec3on(is(priority(one( Water(withdrawal,(handling(and(disposal(is(regulated(by(government(

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SLIDE 28

WATER*USAGE*&*PROTECTION*

  • Most*producers*are*sekng*surface*casing*at*600*meters,*but*all*

producers*are*sekng*to*the*minimum*depth*of*265L290*metres*in* compliance*with*ERCB*DirecGve*8,*Type*2*

  • The*industry*average*surface*casing*depth*for*this*area*is*283*metres*
  • Surface*casing*is*a*permanent*structure*of*the*wellbore*that*protects*

aquifers*that*supply*domesGc*water*wells*

  • The*average*depth*of*the*target*zone*(Cardium)*is*2,200*metres*
  • Each*of*the*LIPG*member*companies*offer*baseline*tesGng*for*water*

wells*near*their*operaGons*and*considers*requests*on*a*case*by*case* basis*

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SLIDE 29

WATER*FOR*USE*IN*FRACING*

Gelled(water(frac(* Use*1200m3*of*water*per*well*–*80*m3*/*stage**L*>*420*Car*washes* Surfactant(Gelled(frac((foam)* Use*600m3*of*water*per*well*–*40*m3*/*stage*L>*440*Showers* Slick(Water(frac( Use*2500m3*of*water*per*well*–** 1*Olympic*Size*Swimming*Pool*

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SLIDE 30

WATER*CONSERVATION*EFFORTS*

  • RunLoff*/*flood*water*is*being*collected*and*recycled*for*use*in*

local*operaGons*whenever*possible*

  • Effluent*water*is*being*considered*for*use*
  • Development*of*technology*that*will*allow*the*use*of*saline*

water*for*fracturing*operaGons*is*onLgoing*

  • Water*flowed*back*from*the*wellbores*following*fracing*
  • peraGons*is*being*reLused*on*subsequent*fracs*whenever*

possible*

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SLIDE 31

SEISMICITY*

  • Southern*Alberta*is*not*known*as*an*acGve*earthquake*area*
  • Because*of*the*Cardium*depth*(2200m),*fracing*is*not*

noGceable*on*the*surface*

  • Typically*these*sound/vibraGon*measurements*can*be*

monitored*at*the*same*depth*(2200*metres)*via*a*nearby* wellbore*

  • LIPG*is*unaware*of*any*need*or*regulaGon*to*acGvely*monitor*

earthquakes*as*part*of*its*operaGons*

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SLIDE 32

SEISMICITY*

Seismic*acGvity*potenGally*resulGng*from** fracturing*measures*less*than*3.5***

  • n*the*Richter*Scale*
  • Horn*River,*B.C.*(2.5L3.5)*
  • Blackpool,*England*(1.5L2.3)*

Richter*Scale*(worldwide):*

  • 2*or*less*

*8,000*/*day* *Not*felt*

  • 2*–*2.9

*1,000*/*day *Not*felt,*recorded*

  • 3*–*3.9

*49,000*/*year *Oqen*felt,*rarely*causes*damage*

Each*level*is*10*x*stronger*than*the*previous*level*

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SLIDE 33

HEALTH*&*SAFETY*

  • PreLplanning*is*key*for*the*safety,*environmental*impact*and*

success*of*a*proposed*well*

  • Each*LIPG*member*company*has*an*Emergency*Response*Plan*

(ERP)*to*ensure*that*appropriate*acGon*is*taken*in*response*to* an*emergency*

  • Material*safety*data*sheets*(MSDS)*are*

available*on*each*locaGon*while*the*compleGon*

  • peraGons*are*being*carried*out*
  • Cochrane*fire*department*toured*a*LIPG*site**

for*training*and*educaGon*

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SLIDE 34

LOCHEND*AREA*OPERATIONS*

Drilling(density((

  • Currently*1L2*wells*per*pad*
  • Maximum*2*wells*per*quarter*secGon*

Flaring(

  • Approximately*20km*of*pipeline*has*been*constructed*in*order*to*increase*

gas*conservaGon*and*decrease*flaring/incineraGon* Traffic(

  • Rig*moves*are*not*conducted*during*school*bus*hours*or*at*high*traffic*

Gmes*

  • Road*damage*is*the*responsibility*of*the*oil*and*gas*company*to*repair*
  • Reduced*traffic*due*to*pooling*water*
  • Reduced*trucking*due*to*pipeline/facility*installaGon*
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SLIDE 35

ERCB*FACTS*

  • Hydraulic*fracturing*has*been*used*in(Alberta(since(the(1950's.(
  • Alberta*and*the*ERCB*has*a*long*history*of*regulaGng*oil*and*gas*

development*resulGng*in*decades(of(safe(and(responsible(resource( development.(

  • Approximately(171,000(wells(have(been(fractured(in(Alberta(since*

the*technology*was*first*introduced.*Since*2008,*approximately( 3,300(horizontal(wells(have(been(drilled(in(Alberta(that*used*mulGL stage,*hydraulic*fracturing*to*enhance*oil*and*gas*recovery.*Of* these,*around*1,200(were(gas(wells(and(2,130(were(oil(wells.*

  • These*has*never(been(a(documented(case(of(hydraulic(fracturing(

ac3vi3es(contamina3ng(water(wells(in(Alberta.*

slide-36
SLIDE 36

ERCB*FACTS*

  • In*the*majority*of*wells*drilled*using*horizontal*drilling,*fracturing(
  • ccurs(at(depths(of(hundreds(or(thousands(of(metres(below(the(

deepest(water(aquifer.(

  • Alberta*has*a*robust(regulatory(environment(that*will*conGnue*to*

protect*groundwater*in*Alberta.*

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SLIDE 37

MISINFORMATION*ABOUT*FRACING*

How(is(misinforma3on(being(circulated?(

  • Websites*
  • Social*media*
  • Videos*
  • Pictures*
  • PresentaGons*
  • Speaking*engagements*
  • Newspapers*
  • Reports*
  • NonLgovernment*organizaGons/*

acGvists*groups*

slide-38
SLIDE 38

MISINFORMATION*ABOUT*FRACING*

Why(is(there(so(much(misinforma3on?*

  • Lack*of*educaGon*and*technical*understanding*
  • People*are*afraid*
  • InformaGon*and*pictures*are*used*out*of**

context*or*are*misleading*

  • Stories*are*sensaGonalized*
  • Different*regulatory*rules*in*the*USA*vs*Canada*
  • “Facts”*are*inaccurate*
slide-39
SLIDE 39

MISINFORMATION*ABOUT*FRACING*

What(misinforma3on(is(being(circulated?((

STATEMENT:((“Water*they*used*is*not*recycled*…*Why*would*they,* when*they*can*just*go*and*get*more*free*potable*water*from*the* ciGzens*of*Alberta.”( TRUTH:((Industry*is*1)*reducing*the*use*of*fresh*water*2)*reLusing** and/or*recycling*frac*fluid*3)using*produced*and*sourced*salt*water* STATEMENT:**“There*are*thousands*of*cases*of*water*contaminaGon…* Oil*and*gas*companies*are*lying*when*they*are*telling*you*when*no* water*has*been*contaminated.”* TRUTH:(ERCB*have*no*cases*of*water*well*contaminaGon*from*fracing.** However,*there*have*been*some*cases*of*surface*and*groundwater* contaminaGon*as*a*result*of*oil*and*gas*acGviGes;*ie:*seismic,*spills* etc.(

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SLIDE 40

MISINFORMATION*ABOUT*FRACING*

STATEMENT:((“There*is*no*way*of*anyone*knowing*where*the*water*is* going*nor*how*much*is*being*used…not*even*Alberta*Environment* knows*this.”* TRUTH:(*Water*licenses*are*granted*through*Alberta*Environment.* Water*license*holders*report*their*water*usage*to*the*government.* InformaGon*is*publically*available;*hxp://environment.alberta.ca* STATEMENT:((“They*use*a*toxic*cocktail*of*about*40*chemicals.*They* put*40,000*gallons*of*this*stuff*down*each*frac…known*carcinogens.”* TRUTH:((There*are*no*toxic*chemicals*being*used*by*the*producers*in* the*Lochend*area.**

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SLIDE 41

MISINFORMATION*ABOUT*FRACING*

STATEMENT:((“ERCB*is*allowing*unlimited*number*of*wells*per*area*of* surface*land….No*guidance*from*the*provincial*government.”* TRUTH:(Drilling*density*is*determined*by*the*ERCB*as*it*relates*to*how* many*wells*are*required*to*effecGvely*produce*the*subsurface* resource.**Horizontal*drilling*minimizes*surface*impacts*and*reduces* the*number*of*wells*required.** STATEMENT:*“Some*of*what*we*are*doing*is*worse*than*what*goes*on* in*thirdLworld*countries.”** TRUTH:((Alberta*is*one*of*the*most*recognized*province*for*having** some*of*the*best*regulaGons*and*highest*standards*in*the*enGre* world.*

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SLIDE 42

MISINFORMATION*ABOUT*FRACING*

STATEMENT:((Picture*showing*flow*back*fluid** being*dumped*into*the*environment.* TRUTH:((Several*years*ago*in*the*USA*flow*back* was*disposed*of*into*the*environment.**In*Canada,** it*was*never*allowed.*We*use*a*closed*loop*system*of*pipe*and*storage*tanks* along*with*regulated*disposal.** STATEMENT:("These*are*terrible*chemicals*that*are*very*dangerous*to*human* health*and*can*contain*radioacGve*materials…*(the*reclaimed*water)*is* spread*on*roads*for*dust*control*and*even*on*farmers'*fields."** TRUTH:((No*radioacGve*materials*are*exposed*to*the*environment.* Management,*transportaGon*and*disposal**of*frac*fluids*fall*under*ERCB’s* ‘Waste*Management*DirecGves*&*InformaGon*Lexers’.*

!

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SLIDE 43

MISINFORMATION*ABOUT*FRACING*

STATEMENT:((“Frac*fluid*spraying*50*feet*into*the*air.”* (photo:*Gleniffer*Lake/Innisfail)** TRUTH:((An*interLwellbore*communicaGon*occurred*between*a*oil* well*that*was*being*sGmulated*and*a*nearby*wellbore.*The*hydraulic* fracing*fluid*(crude*oil,*frac*oil,*water*and*sand)*took*the*path*of*least* resistance*and*went*up*the*nearby*wellbore.*No*fluid*entered*the* surface*or*groundwater.*The*surface*spill*was*reported*to*the*ERCB* and*acGons*were*taken*to*cleanLup*the*spill*and*restore*the*area* (including*soil*sample*tesGng)*as*per*regulatory*requirements*to* ensure*no*long*term*impacts.**

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SLIDE 44

CONTINUOUS*IMPROVEMENT*

Industry*is*conGnuously*improving*through*technological* advances*to*ensure*the*health*and*safety*of*people,*wildlife*and* protecGon*of*the*environment.***

  • New*technology*to*decrease*the*use*of*fresh*water*and*use*of*
  • ther*water*sources*
  • Fracing*fluid*public*disclosure*
  • The*development*and*use*of*more*biodegradable*chemicals*
  • Producers*working*closely*together*to*coordinate*efforts*and*

best*pracGces*to*minimize*impacts*on*the*community*

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SLIDE 45

RELIABLE*RESOURCES*

Available*resources*provide*accurate*informaGon*about*the*oil* and*gas*industry,*Government*regulaGons*and*operaGonal* acGviGes.*

  • Canadian*AssociaGon*of*Petroleum*Producers*(CAPP)

*www.capp.ca*

  • ERCB*–*Energy*Resources*ConservaGon*Board*www.ercb.ca*
  • CSUR*–*Canadian*Society*for*UnconvenGonal*Resources*

www.csur.com*

  • Alberta*Environment*environment.alberta.ca*
  • Energy*in*Depth*(US*Based,*chapter*opening*Calgary*in*April*

2012)*www.energyindepth.org*

  • Frac*Focus*–*BriGsh*Columbia*fracfocus.org*
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SLIDE 46

THANK*YOU* QUESTIONS?*