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Emergency Management Association Of Ohio- Spring Directors Seminar. Ohio Department of Natural Resources Division of Mineral Resources Management (DMRM). On Behalf Of :. Director – David Mustine Assistant Director – Scott Zody DMRM Chief - John Husted Presentation by – Tom Tugend.

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Presentation Transcript
slide1

Emergency Management Association

Of Ohio- Spring Directors Seminar

Ohio Department of Natural Resources

Division of Mineral Resources Management

(DMRM)

slide2

On Behalf Of:

Director – David Mustine

Assistant Director – Scott Zody

DMRM Chief - John Husted

Presentation by – Tom Tugend

slide3

Division of Mineral Resources Management (DMRM)

Provides for the Safe and

Environmentally Sound Development

and Restoration of Mineral and

Fossil Fuel Extraction

Sites

slide4

What We Oversee

    • Oil/Gas Well Permitting, Drilling,
  • Production, Plugging
    • Industrial Mineral Permitting &
  • Mining
    • Mine Safety
slide5

What We Oversee - Continued

    • Coal Mine Permitting, Mining
  • and Reclamation
    • Abandoned Mined Lands
  • Reclamation
    • Orphan Well Plugging
    • EPA Certified Lab
slide6

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 1509
  • Ohio Administrative Code 1501
slide7

Permitting Overview

  • Leasing Precedes Permitting
  • Owner Registration (Bonding/Insurance)
  • Permitting: Spacing, Casing, Pre-Permit Site
  • Review, Permit Conditions, Restoration Plan
slide8

Spacing Categories

Distance

DepthAcres Unit LinesBet. Wells

0 to 1,000’1100’ 200’

1 to 2K10 230’ 460’

2 to 4K 20 300’ 600’

4,000 + 40 500’ 1,000’

slide9

Field 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
slide10

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
slide11

Prevention of Impacts to the Environment

and Protection of Public Safety

  • Key Factors:
  • Permitting
  • Well Site Construction
  • Well Construction !
  • Well Control !
  • Fluid Control !
  • Oversight
slide12

Our Field Enforcement Focus/Priority

  • Complaints Posing Threats to Public
  • Safety and the Environment
  • Drilling Operations – Protection of
  • Fresh Water/Public Safety/Environment
  • Plugging Operations
  • Routine Inspections – Public
  • Assistance
slide13
Well Site Identification

Idle Wells

Pollution/Contamination

Restoration

Brine Disposal

Gas Leaks

Most Common Violations

slide14

Good or Bad

What is the Real Story

Hydraulic Fracturing

Fracking

Fracing

slide15

Hydraulic Fracturing

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.

slide16

Hydraulic Fracturing Cont.

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)

slide17

Hydraulic Fracturing Cont.

  • TheHydraulic Fracturing Fluids Consist of:
  • Water
  • Sand (proppant)
  • Chemicals (to Make the Water Viscous to
  • Carry the Sand), Scale Inhibitors, HCL.
  • 99+% Sand and Water
slide18

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.

slide19

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.

slide20

Frac

Containment

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

Marcellus Formation

Graphic from Kostelnick (2010).

slide22

Oil and Gas Activity 1990-2010

Total Permits Issued: 44,367

Drilling - 21,507

Plugging - 22,860

Wells Drilled: 16,409

Wells Plugged: 15,298

Total Ohio Wells: 64,427

slide23

Wells Drilled – The Early Years

  • YearWells Drilled
  • 2593
  • 1895 6147
  • 1900 6555
  • 2134
  • 1980 5100
  • 6085
  • 4830
slide24

2010 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
horizontal shale drilling
Horizontal Shale Drilling
  • Marcellus Shale
  • Utica Shale

Why all the Interest/Press ?

What is the Difference Between a

Traditional Well and a Horizontally Drilled

Shale Well ?

so why is this a big deal potential production
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 and traditional vertical well
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

slide29

We are not alone….

Source: U.S. EIA, 2010.

Many shale gas plays are now developing across the United States and Canada.

slide30

Marcellus Shale Activity

Pennsylvania

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

slide31

Marcellus Shale – Ohio Activity

To Date:

Vertical Permits Issued: 67

Vertical Wells Drilled: 44

Horizontal Permits Issued: 10

Horizontal Wells Drilled : 2

As of 03-08-11

slide32

Utica Shale – Ohio Activity*

To Date:

Vertical Permits Issued: 19

Vertical Wells Drilled: 9

Horizontal Permits Issued: 4

Horizontal Wells Drilled : 1

As of 03-08-11

*Permits issued since December 2009

slide34

Sandstone:

A Typical Reservoir Rock

slide35

PORE

SAND

GRAIN

SAND

GRAIN

SAND

GRAIN

PORE

Graphic from Kostelnick (2010).

A porous sandstone prepared for viewing under a

microscope reveals pore spaces (blue areas).

risks
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
Risks Cont.
  • Fires During Drilling/Well Completion
  • Injury to Rig Hands While Drilling
  • Lightning Strikes
  • Tank Fires
slide50

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

slide51

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”