Northwest Gas Association Annual Meeting June 6, 2013 Jill E. - - PowerPoint PPT Presentation

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Northwest Gas Association Annual Meeting June 6, 2013

Jill E. Cooper Group Lead Environment Encana Oil & Gas (USA) Inc.

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Encana Oil & Gas (USA) Inc.

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Societal Expectations

• Work with Communities and Local Officials
• Develop Good Working Relationships with State Regulators
• Be Transparent and Seek Opportunities to Address Concerns

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Location

Surface Footprint: Understand

DESIGN INPUTS LAND GATHERING CONSTRUCTION COMPLETIONS DRILLING PRODUCTION ENVIRONMENTAL

“For every site there is an ideal use. For every use there is an ideal site. And in between is analysis, planning & mitigation.” Bryan Whiteley, Piceance Construction, Encana, October 2009

Surface Footprint: Assessment

Technology Affects of Surface Footprint

Source: National Petroleum Council, Prudent Development: Realizing the Potential of North America’s Abundant Natural Gas and Oil Resources

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950’

S N

4800’ 1500’ 6000’ from Surface to Williams Fork Producing Horizon Pay zone = 3000’ thick

Resource Play Hub

Extended Reach S-shaped Wells

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• Multiple wells drilled from one pad

– Reduces surface impact and rig moves – 52 wells on one 4.2 acre pad

• Three-phase gathering via pipeline

– No tanks on location = no VOC emissions

• Centralized production facility

– Captures VOC’s – Treat and recycle over 90% of produced water

• Fracturing water distribution via pipeline

– Reduces truck trips >150,000/year

• Closed-loop drilling system (all of

Colorado)

– Eliminates waste pit for drill cuttings

Resource Play Hub

Best Management Practices North Parachute Ranch, Colorado

Surface Footprint: Measure and Communicate

NEPA Process

Source: Marine Corps Base Hawaii

Source: US Fish and Wildlife Service

Endangered Species Act: Greater Sage Grouse

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Air Quality: Assessment

Air Quality: Measurement

Air Quality: Measurement UT Air Study

A Unique Partnership

• Sponsors were an environmental group and nine natural gas

producers

– Environmental Defense Fund (EDF), Anadarko Petroleum Corporation, BG Group plc, Chevron, Encana Oil & Gas (USA) Inc., Pioneer Natural Resources Company, SWEPI LP (Shell), Southwestern Energy, Talisman Energy USA, and XTO Energy, an ExxonMobil subsidiary

• Study team

– Led by University of Texas and including URS and Aerodyne Research

• Scientific Advisory Panel

– Six university faculty with expertise in air quality and natural gas production

Air Quality: Measurement UT Air Study Scope

Environmental Defense Fund, with different groups of companies and study teams, are engaged in projects addressing the rest of the supply chain for natural gas

Air Quality: Communications Natural Gas = Fewer Emissions

Groundwater Monitoring

• Colorado industry partnered

with Colorado Oil and Gas Conservation Commission

• Developed voluntary

groundwater monitoring program

• Resulted in state regulatory

program

• Example of cooperative

state and industry effort

Drilling Operations

• Drilling rig drills to various

depths per state/federal requirements for surface casing

• Surface casing set (metal pipe

cemented in place to protect groundwater)

• Rig resumes drilling until total

depth reached

• Casing run in remainder of

well and cemented in place

• Four layers of protection of

groundwater now exist

Not to Scale

Protecting Fresh Water Aquifers

• Casing and cement creates

barriers between ground water and production of hydrocarbons

• Surrounding shale is a

barrier to hydraulic fracturing above the target sand or shale interval

• Thousands of feet of sand,

shale, sometime limestone between hydraulically fractured rock and fresh water aquifers

• Wellbores are properly

cased and checked before hydraulic frac process starts

• Frac jobs are monitored and

sometimes seismically mapped

• Generally, fluids pumped

into the rocks breakdown and flow back to surface with gas production

• Well is “completed” and brought into production with different rig
• Complete in minimum days possible
• Hydraulic fracturing is conducted
• Water use

– Recycled water if feasible – Water storage and management is critical – Almost exclusively non-tributary water – Dispose of water as per permits and regulations

• Well then converted into a production well
• Interim reclamation is conducted

Operations: Completions

Piceance Basin – Williams Fork Formation

• Geology

– Overpressure Reservoir – 3000’ Vertical Section – Shale, Sandstone, Coal Deposition – Avg Porosity 6% – Avg Permeability 7µD – Avg Water Saturation 65% – Frac Gradient 0.5-0.75 psi/ft

• Fracture Characteristics

– Naturally Fractured – High-Perm Formation Created When Hydraulically Fractured

Wasatch Williams Fork Rollins Cozzett e Corcora n Sego Mancos

Iles

10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000

0 GR 200

Formation Name

Dept h (ft)

What is Hydraulic Fracturing?

• Method to create fractures in rock formations from a borehole

(called stimulation)

– Pumping fluid (slickwater) containing proppant at a rate high enough to ‘crack’ the rock

• Used primarily in “tight” reservoirs to aid in the release of

hydrocarbons to the wellbore not otherwise capable of production

• It is a well understood process that has been used for over 60

years around the world in the oil and gas industry

Why Fracture a Well?

• Increases rate at which fluids are

produced – By increasing the surface area of the formation or reservoir exposed to the wellbore

• Reasons for different permeabilities

– Low permeable reservoirs – The rocks require hydraulic fracturing to produce at economical rates – Medium permeability reservoirs – Fractures accelerate recovery from wells – High permeability reservoirs – To bypass near wellbore drilling damage

http://www.energyindepth.org/hydraulic-frac-graphic.jpg

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Water Management

Materials Management

Materials and Waste: Product Assessment

• Canadian Association of Petroleum Producers

product assessment program

– Hazard based product assessment and management program

– Inventory of hydraulic fracturing fluid systems and products assssed before put into FracFocus

– Use a health and environmental screening tool at an ingredient level – Operational review and management of risks identified in assessment – Product usage and procurement optimization

Materials and Waste: Understand and Communicate

Transportation Air Emissions Stormwater Run-off Produced Water/Dewatering Hydrualic Fracturing Produced Water Discarded Equipment (vehicles, tires, batteries) Equipment Maintenance (lube oils, filters, antifreeze etc.) Mine Tailings/Spoils Acid Mine Drainage Overburden Drilling Solids (Mud, Sand, Formation Rock) Naturally Occuring Radioactive Materials (NORM) Spent Chemcials General Wastes (workshop, office) Production Air Emissions Transportation Air Emissions Ash Stormwater Run-off Cooling Water Processing Water Equipment Maintenance (lube oils, filters, antifreeze etc.) Unused Byproducts High-level Radioactive Materials Low-level Radioactive Materials Spent Chemcials Heavy Metals General Wastes (workshop, office) Coal

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Oil

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Natural Gas

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Nuclear

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Wind

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Solar

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Biomass

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Biofuels

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Hydroelectric

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Geothermal

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Nonrenewables Renwables

EXTRACTION PROCESSING & CONVERSION WASTE STREAMS SOURCE

Source: National Petroleum Council, Prudent Development: Realizing the Potential of North America’s Abundant Natural Gas and Oil Resources

Federal Regulatory Tracking

• CAA: NSPS Subpart

OOOO

• Ozone regulations
• Greenhouse gases
• Toxic Release Inventory
• Toxic Substance Control

Act

• Resource Conservation

Recovery Act

• Endangered Species Act
• Migratory Bird Treaty Act
• Clean Water Act
• Effluent Limit Guidelines
• Safe Drinking Water Act
• Wetlands 404
• BLM Onshore Orders
• BLM Oil & Gas Regulation
• ASTM efforts
• Groundwater monitoring

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Thank you