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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

Emergency Management Association

Of Ohio- Spring Directors Seminar

Ohio Department of Natural Resources

Division of Mineral Resources Management



On Behalf Of:

Director – David Mustine

Assistant Director – Scott Zody

DMRM Chief - John Husted

Presentation by – Tom Tugend


Division of Mineral Resources Management (DMRM)

Provides for the Safe and

Environmentally Sound Development

and Restoration of Mineral and

Fossil Fuel Extraction



What We Oversee

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

What We Oversee - Continued

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

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

Permitting Overview

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

Spacing Categories


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’


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

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

Prevention of Impacts to the Environment

and Protection of Public Safety

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

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
Well Site Identification

Idle Wells



Brine Disposal

Gas Leaks

Most Common Violations


Good or Bad

What is the Real Story

Hydraulic Fracturing




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.


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)


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

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.


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





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).


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


Wells Drilled – The Early Years

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

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


We are not alone….

Source: U.S. EIA, 2010.

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


Marcellus Shale Activity


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 Activity

To Date:

Vertical Permits Issued: 67

Vertical Wells Drilled: 44

Horizontal Permits Issued: 10

Horizontal Wells Drilled : 2

As of 03-08-11


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



A Typical Reservoir Rock










Graphic from Kostelnick (2010).

A porous sandstone prepared for viewing under a

microscope reveals pore spaces (blue areas).

  • 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

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


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:, Click on “Other Divisions”,

Click On “Mineral Resources” and Click on “Oil and Gas”