Natural Gas Development The 3 Ds & The Role of the Water Industry. EWQA Conference 9/25/2014 Hunt Valley, Maryland

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1 Natural Gas Development The 3 Ds & The Role of the Water Industry EWQA Conference 9/25/2014 Hunt Valley, Maryland

2 Special Thanks to Our Sponsor Todays Speaking Event Sponsor is : Quantum Analytical & Environmental Laboratories, Inc. is a private, PA DEP accredited ( ) drinking water, non-potable water (wastewater,) and solid chemical materials laboratory that is locally owned and operated in Northeastern Pennsylvania.

3 Presented by Mr. Brian Oram, Professional Geologist (PG), Professional Soil Scientist (PA and WV), Licensed Well Driller (PA) B.F. Environmental Consultants Inc. Water Research Center Keystone Clean Water Team

4 B.F. Environmental Consultants Inc. Professional Consulting Services in the areas of water quality, soils, stormwater, geology, aquifer analysis, and land-development. Baseline Testing Chain-of-Custody- Sourcewater Protection Expert Testimony Online Training for Licensed Professionals Water Treatment Process/ Product Development

5 Water-Research Center Education and Outreach Program funded by B.F. Environmental Consultants Inc. Outreach Programs Environmental and Professional Education and Training for Citizens and Local Municipalities Water Quality Help Guides Information Library Community and Business Outreach Programs Low Cost Informational Water Testing Program Citizen Monitoring Programs- Developing Low Cost Water Quality Sensors Targets Young Adults, Watershed Organizations, Coalition, Environmental Groups, Professionals, and Kids

6 PACleanwater.org The Keystone Clean Water Team (KCWT) is a 501(c)(3) non-profit, volunteer, environmental education organization which provides homeowners with information on private wells, water quality and quantity, and septic systems Not an Advocacy Group 1. Education 2. Fact Based Approach 3. Scientific Method 4. Target Education of Kids and Families 5. Delivery Statewide Please Support

7 The Three D s in Natural Gas Development and the Role of the Water/Environmental Industry. Drilling Development Distribution Water Testing Water Resources Waste Management Environmental Monitoring Water Resource Water Management Water Treatment Waste Management Mobile Water Treatment Waste Management Brine Management Pipeline Integrity Environmental Monitoring

8 Natural Gas Plays in United States

9 Shale- What is it? Named for Location Found ~400 million years old ~3000 to ft below surface Formed from organic-rich mud Natural gas Radioactive (NORM) Low permeability High Salt Content NORM Naturally Occurring Radioactive Material Source:

10 385 Million Years Ago Source:

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12 Why is this being done- NOW?

13 The Drilling Phase

14 Drilling Phase During this activity phase, the primary opportunities for the water and environmental industries would include: Environmental Audits/ Permitting Developing / Permitting Water Sources Baseline Environmental Monitoring Developing Spill Containment Plans Construction Inspection and Oversight Public Education / Outreach

15 Baseline Water Testing Third-Party Contractor Certified Testing Documenting Existing Conditions Documenting Wellhead Lower Explosion Limit

16 Percent Exceeded Percent Exceeded From the Database Predrilling Data ONLY! About 49% - Do NOT Meet Drinking Water Standards! bis(2 ethylhexylphthaltes) What? Plasticizers? Well Inflenced by Saline Water 0 Total Coliform ph < 6.5 Lead Manganese Iron e. coli Phthaltes Arsenic TDS Sodium (> 200 mg/l) Chloride Gross Alpha

17 Approximate Flowback Water - Wastewater Chemistry Concentration - mg/l (Source: PSU and Marcellus Shale Coalition Approximate Frac Water - Wastew ater Chemistry Concentration - mg/l (Source: PSU and Marcellus Shale Coalition) Bromide Chloride Sodium Calcium Magnesium Barium Strontium Potassium Ammonia Lithium Aluminum MBAS Iron Nitrogen Manganese Lead Arsenic Oil/Grease 0.1 Chloride Sodium Calcium Magnesium Barium More Data can be found at Iron Nitrogen Maganese Lead Cd, Sb, Be, Cr, Ni, Ag, Tl and other trace metals and organics Arsenic Oil/Grease Cadmium

18 We are Testing for BTEX and Additives! Are we Testing for Glycols? Everybody is recommending BTEX What about Glycols???

19 Suggested Baseline- For Citizens Tier 1 : Total Coliform with E. Coli confirmation, Chloride, Sodium, Bromide, Barium, Strontium ph, Conductivity, Total Dissolved Solids, MBAS, Iron, Manganese, Arsenic, Aluminum, Lead, Turbidity, Total Hardness, Total Suspended Solids, and Methane/Ethane/Propane. Tier 2: Includes all parameters within Tier I, plus Copper, Magnesium, Calcium, Zinc, Alkalinity, Nitrate, Total Suspended Solids, Sulfate, Oil & Grease, 21-VOCs/MTBE, and Selenium. Tier 3: Includes all parameters within Tier I and Tier II, Potassium, Sulfide, Ammonia, Acidity, Nickel, Mercury, Gross Alpha/Beta, and Uranium Glycols Problem is Price and Detection Limit.

20 Opportunity 1. 50% of private well owners are finding out there well water is contaminated. 2. Most well owners have more than 1 problem, such as bacteria and iron, methane/iron, and bacteria and manganese/iron % + have corrosive water. 4. 8% have arsenic issues % have saline water / methane issues.

21 6. Self Screening Test 7. Public Informed (?) Confused Needed a Trusted/ Reliable Advisor. Answer Their Community Based Water Treatment Professional! Be the Solution! Fact Based!

22 24 inch casing Air Fresh Water 20 inch casing 13+ inch casing May add 9+ inch casing- coal zones or high pressure gas zones 5.5 inch casing Drilling Mud (Barite) BaSO4 Food Grade Mineral Oil

23 Protective Casing Do it Right!

24 Old WAY Open Loop Replaced by Closed Loop Drilling

25 Common Problems Associated with Natural Gas Development and Private Wells Dirty and Discolored Water associated with the initial drilling of the well. Water has metallic taste. Increased Levels of iron, manganese, and aluminum and some other metals. Increased Levels of Dissolved Gases Primarily Methane, but also ethane, propane, and radon. Please Note These Photos May Also Represent Baseline Conditions

26 Gas Signature NOT Typical of Target Formation Most impacts associated with Methane Gas Migration associated with borehole construction The findings: 1. Over 1000 cases reported in 7 yrs Only 243 cases associated with Oil and Natural Gas Development. (What Caused the Bulk of the Problem?- Do not know NO One Asked!) 2. In 20 % of the cases in Eastern PA Driller Presumed Responsible. 3. In 26 % of the cases in Eastern PA the Problem was Temporary and already resolved! 4. Iron - 30 cases 28 % Manganese 41 cases 38 % Aluminum 15 cases 14% Barium 3 cases 2.8 % Total Dissolved Solids -TDS 4 cases 3.7 % Chloride 2 cases < 2 % Zinc 1 case < 1 % When a Cause was Known Most Common was Drilling Phase and then Leaky Ponds. In one case, Air Foam (surfactant was found).

27 up to 2000 ft PSU Study -Migration and Disturbance During Drillinglosing circulation Proper Construction Poor Construction Lined Tanks Pit Add String Could this explain the Bromide Issue or Discolored Water?? Key Points 1. Proper Casing and Cement of Marcellus Shale Wells 2. Knowing How Private Wells Are Constructed 3. Isolation Distances will not Solve This Problem. 4. Fixing Private Wells has to be part of the Solution. 5. This may account for the data on bromide from PSU. 6. The issue may not be well radial distance, but construction and drilling issue. 7. Recommend closed loop drilling with water within freshwater aquifer (no muds) or water-based muds.

28 Problems with Gas Migration and Cement

29 If this much is coming to the surface how much may be being pushed into shallow bedrock units? What happens when this pressure is shut in?

30 Service Your Clients Baseline Testing Private Well Owners Installing Water Treatment or Upgrading Existing Systems Improve Private Water Well Integrity Baseline Assessment for Community Water Sources or Watershed Assessments Installing real-time monitoring as part of an early warning system. Assisting with Risk Assessment

31 How Can Methane Level be Above 28 mg/l? Zero Head Methane Solubility 28 mg/l 50 feet Head 69 mg/l 100 feet Head 110 mg/l 150 feet Head 151 mg/l 200 feet Head 192 mg/l Therefore, Water Well methane levels can exceed 28 mg/l if water is not in equilibrium with the atmosphere. Freshwater Solubility as a function of pressure.

32 The Development Phase Hydraulic Fracturing

33 Stop Using the Word Frac Frak Frak was the four letter word for the 12 Colonies in Battlestar Galactica. War Battle The process is called Hydraulic Fracturing. This will make our Jobs a lot easier!

34 Hydraulic Fracturing Slickwater- High Volume Gas Frac- Stock(GFS- TSX Exchange- Canada) Liquid CO2 (Dry Frac) - Praxair Inc (PX- NYSE)

35 7.5 Million gallons freshwater Tracking added by Computers and Manifests

36 Software Ties Directly into River Basin Commission Withdrawal Limits and Flow Protection

37 Types of Fluids - Associated with Marcellus Shale Top hole fluids typically the water from the freshwater aquifer. This water from the first 600 to 1200 feet. (Less than 1000 mg/l) Bottom hole fluids brine or connate water. Stimulation Fluids fluid used to improve recovery (frac process)- includes biocides and other chemicals. Production Fluids water produced along the natural gas release similar to bottom hole fluid. May be 20%+ Solution (200,000+ mg/l).

38 Slickwater Hydraulic Fracturing Slick-water fracturing is the most basic and most common form of well stimulation. Frac fluid is composed primarily of water and sand, over 99.5%. Chemicals are added to reduce friction, corrosion, bacterial-growth, and provide other benefits during the stimulation process. Slick-water fluid can be pumped down a well-bore as fast as 100 bbl/min. Allowing a higher-pressure shale fracture (9,000 to 10,000 psi). The top speed of pumping without using slick-water is around 60 bbl/min. 1 bbl = 42 gallons; therefore, 100 bbl/min = 4,200 gallons/minute

39 Arthur et. al., 2008 All Consulting Natural Gas Wells of the Marcellus Shale, Presented at Groundwater Protection Council 2008 Annual Forum.

40 Active Marcellus Production Site Frac Fluid Chemistry Typically Frac Water is water with a low probably for scale formation, but treated effluents and other sources being evaluated. The components include: Friction Reducer anionic polymer high molecular weight (polyacrylamidepolymers)-(hold frac sand and other particles) Wetting Agent- nonionic surfactant reduce surface tension and improve frac water flowback. (Butanol and ethylene glycol monobutyl ether (2-BE) ) Biocides- control growth or regrowth of microorganisms (Bromine, chlorine, ozone methanol, naphthalene, and others). Scale Inhibitor phosphate based chemicals to inhibit precipitate formation and scale formation (citric acid, Hydrochloric acid, and ethylene glycol). Has been done using blended water (30% Recycled and 70 % Fresh) and 100 % Recycled.

41 Water Sourcing - Options Since only 10 to 20% Returns Immediately Net Water Demand Municipal Water to Storage Ponds Surface water to Storage Ponds Groundwater to Storage Ponds Via Pipelines, Hauling, Pumper Truckers, or Temporary Pipelines Use of Degraded Waters treated wastewater, stormwater, and mine drainage All approaches require Cradle to Grave Source Water Tracking!

42 Concentration, mg/l 300, , , ,000 Glycols may be as high as 130 mg/l Most VOCs / SOCs < 1 mg/l Radionuclides Varies ND 5800 pci/l 100,000 50,000 0 TDS Chloride Sodium T. Hardness (Ca+Mg) Strontium Frac Water/Recycled Flow back Water

43 Freshwater Line Reclaimed Water Line

44 Drilling, Data Collection and Model Simulation Geophysical data is collected on a site such as porosity permeability and natural fracture data, then simulated to determine optimal fracture placement. Perforation Isolated zones of the pipe are perforated using charges to allow the fluids and proppants to obtain access to the formation. Formation Breakdown Fracturing fluid is pumped into the well under high pressure to breakdown the formation.

45 Recent Changes in NE Pennsylvania and Other Areas 1. Large Shale Companies (Marcellus)- 100% use of flowback water and production brine. (100 % recycle) 2. Reuse Pretreatment Particle reduction to removal of iron, manganese, Barium, and other scale formation factors. 3. Number of Stages Increased stages and lateral lengths are 6000 to 10,000 feet (up from 3000 to 5000 feet) 4. Length of Stages decreased from 300 and 500 feet to 100 foot 5. Initial flowback about 10% to 15 % the water * 6. Water usage about 900 barrels per stage or 11.3 million gallons per Well (Doubled!) 7. Capture Area Doubled to nearly 1200 acres (1 well pad).

46 Flush 13,000 3,000 slickwater none Acid Treatment A solution of hydrochloric acid is pumped into the well bore to initiate the fracturing process. Example of a Single Stage of a Sequenced Hydraulic Fracture Treatment Stage Volume (gallons) Rate (gal/min) Fluid Type Proppant Size Acid 5, % HCl acid none Pad 100,000 3,000 slickwater none Prop ,000 3,000 slickwater 100 Mesh Prop ,000 3,000 slickwater 100 Mesh Prop ,000 3,000 slickwater 100 Mesh Slickwater Pad A volume of fracturing fluid large enough to fill the wellbore and open the formation area is applied for friction reduction purposes Prop ,000 3,000 slickwater 100 Mesh Prop 1 40,000 3,000 slickwater 100 Mesh Prop 2 30,000 3,000 slickwater 100 Mesh Prop 3 30,000 3,000 slickwater 100 Mesh Prop ,000 3,000 slickwater 40/70 Prop ,000 3,000 slickwater 40/70 Prop ,000 3,000 slickwater 40/70 Proppant Sequence A large volume of water is added along with concentrations of proppant (sand in this case) starting at a concentration of 0.1 lbs./gal Prop 1 20,000 3,000 slickwater 40/70 Prop 2 20,000 3,000 slickwater 40/70 Prop 3 20,000 3,000 slickwater 40/70 Prop 4 10,000 3,000 slickwater 40/70 Prop 5 10,000 3,000 slickwater 40/70

47 Hydraulic Fracturing: An Oblique View Each fracture is roughly elliptical in shape. Height should be thickness of Marcellus layer, length as long as possible. The length can be 100 s to 1000 s of feet, but probably 500 ft vertical and 1000 horizontal. From Oilfield Review: Schlumberger Takes a lot of injection fluid to create many such fractures from a single well. 47

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49 Water Flush Flushing the well with water is used to displace treatment fluids and proppant forcing it deeper into the formation. Also ensures that proppant is not duning (piling up) inside the well. Water Flowback and Disposal Recovered water and fluid is treated and reused or ultimately disposed.

50 Water Management Treatment Options Highly Variable While In the Demand Cycle! 1. Oil, Grease, and Volatile Reduction with Particle Removal and oxidation of iron and manganese Filtration to a particle size of < 2 microns. (Chesapeake Aqua Renew). 2. Chemical Treatment to reduce carbonates, hardness (barium, strontium, radium, and other divalent cations). (Non-scale forming) with particle reduction. 3. Oxidation with Chemical Precipitation. 4. Electrochemical Water Treatment. 5. Membrane Technology 6. Vacuum Distillation or Heat Distillation - Crystallization Real Need for Third Party Water Brokers to Facilitate Exchange And Reuse Between Companies. Sludge may be a TENORM Technically Enhanced Naturally Occurring Radioactive Material

51 Opportunities 1. Water Source Management Selling Untreated Municipal Water from Backup or Primary Wells. 2. Long-term Environmental Monitoring 3. Developing Emergency Strategies / Back up Treatment Systems Units 4. High Purity Sources like Bottled Spring Water may require monitoring wells and real-time monitoring. 5. Help fund water, wastewater, and stormwater infrastructure as part of developing a water resources management approach.

52 Distribution Phase 1. Local Drilling Activity or Development waning. 2. Managing Wells Under Production and Compression stations fluids management (production brine water) Opportunities 1. Develop deeper black shale formations Utica. 2. Implement de minimus water treatment and recharge using Land-based irrigation to sustain regional aquifers. 3. Develop more advanced treatment for Third Pipe Applications. 4. Develop treatment processes to create high quality brine water for industrial and energy applications (Fuel Cell Energy Storage). 5. Use Saline Water to help with CO2 sequestration.

53 Leave the Water Demand Cycle Associated With Well Yield Development 20 + years out Over the next 20 to 40 years, we will be moving from a water Demand cycle to a brine water disposal need. The disposal options: 1. Treat the water to a de minimis set by regulatory agency. In PA, this is very close or more restrictive than drinking water standards. (PA WMGR123). This would permit direct discharge. 2. Developing beneficial uses such as: road deicing agents or Industrial saline water sources. Produce high quality saline water usable for industrial production and energy (Hydrogen/ Chlorine Gas). 3. Deep well injection UIC Program

54 Lead Agency by State or Tribe for UIC Program UIC Program by State

55 Injection Wells Class II Class II wells inject fluids associated with oil and natural gas production. Most of the injected fluid is salt water (brine), which is brought to the surface in the process of producing (extracting) oil and gas. Regulated by: EPA - Does the UIC Program regulate hydraulic fracturing? Sometimes. The UIC Program regulates the following activities: Well injection of fluids into a formation to enhance oil and gas production (Class II wells). Fracturing used in connection with Class II and Class V injection wells to stimulate (open pore space in a formation). Hydraulic fracturing to produce methane from coal beds in Alabama.

56 Rarely Seen Video

57 Our Latest Educational Resource Description of the following: a. Citizen Database b. Baseline Testing c. Drinking Water Standards d. Specific Water Quality Standards e. Treatment Options f. How to Shock Disinfect a Well g. How to Properly Construct a Well h. General Guidelines on Baseline Testing Parameters. And More. cost$ 5.00 Other Resources at Supports a Local 501C3 Carbonwaters.org

58 Special Thanks to Our Sponsor Todays Speaking Event Sponsor is : Quantum Analytical & Environmental Laboratories, Inc. is a private, PA DEP accredited ( ) drinking water, non-potable water (wastewater,) and solid chemical materials laboratory that is locally owned and operated in Northeastern Pennsylvania.

59 ????? Ideas?????

60 Continuing Education Credits This presentation is part of a 2 hour education training session. If you would like to obtain 0.2 hours of continuing education credits or 2 hours of PDHs please send an to bfenviro@ptd.net with your name, address, and contact information. The fee for the credits will be $ 50.00(US)

61 Natural Gas Development The 3 Ds & The Role of the Water Industry EWQA Conference 9/25/2014 Hunt Valley, Maryland