Common Oil & Gas Environmental Issues

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1 Common Oil & Gas Environmental Issues Environment July 2, 2013 Drilling Operations Drilling operations involve creating access to hydrocarbon-bearing zones. Environment 2 1

2 Upstream (Production) Operations Upstream operations involve the extraction or production of hydrocarbons via pumping or natural pressure. Pumps Well Heads Storage Tanks Environment 3 Midstream Operations Midstream operations move produced hydrocarbons from production areas to refining or end use areas. Compressors Pipelines Terminals Environment 4 2

3 Downstream Operations Downstream operations refine produced hydrocarbons for use in commerce. Environment 5 Drilling Operations Drilling operations involve creating a hole and installing a multi-layer piping and cement liner system to access hydrocarbon-bearing zones while protecting aquifers and other fluid-bearing or porous zones that are not of economic interest in the particular well. Environment 6 3

4 Representative Drilling Site Diesel tanks and generators Reserve pit Fresh water storage reservoir Drilling rig Environment 7 Mud Systems and Reserve Pits Reserve pits hold water for emergency use during drilling, provide a reservoir for excess waters flowing back during completion and testing, and may be used as a long-term disposal cell for drilling mud and cuttings. Fresh water storage reservoir Drill cuttings Drilling mud tank system Environment 8 4

5 Reserve Pits An example of unlined reserve pit that contains drill cuttings and residual hydrocarbons that is awaiting closure. Drill cuttings Residual hydrocarbons from drilling, completion, or testing Environment 9 Potential Pit Closure Issues Stressed Vegetation Down Slope from a Closed Pit Exposure: US$250k $500k Stressed vegetation near location with closed pit Environment Page 10 5

6 Potential Pit Closure Issues Hydrocarbon Seepage Exposure: US$250k $1mm Seepage and sheen from closed pit Environment Page 11 Potential Pit/Pad Closure Issues Improper Slope Stabilization Exposure: US$50k $250k Erosion downgradient of closed pit; sediments entering surface water Former Pit/Pad Environment Page 12 6

7 Natural Resource Impacts Improper Road Construction Exposure: US$100k 500k Lease road built across drainage without culvert and permitting Environment Page 13 Natural Resource Impacts Improper Stream Channelization Exposure: US$100k $500k Creek channel altered without permitting or stabilization Environment Page 14 7

8 Pumping Equipment Pumping units can pump oil or produced water. Note the water and oil staining around the well heads and caused by poor maintenance practices. Water and oil stains at well heads. Environment 15 Hydrocarbon Impacts Production Site Exposure: US$100k 400k Hydrocarbon staining observed at base of pad leaking from a flow line or casing Page 16 8

9 Water/Oil Storage Tanks 400 bbl oil and water storage tanks and a 500 bbl gun barrel separator Oil and saltwater staining from fluid overflows Flashing emissions can be significant Working and breathing emissions can also be significant Probable spot to find NORM in water tanks Environment 17 Spilled Oil and Water near Load Lines View of front of tanks. Note oil staining and pooling on the ground outside the secondary containment. Spilled oil and saltwater outside secondary containment Environment 18 9

10 Spilled Oil and Water inside Secondary Containment View of back side of tanks with abandoned gun barrel tank lying on side in background. Oil staining and pooling on ground, and oil and water in drainage on right side of photo. Environment 19 Midstream Operations Midstream operations move produced hydrocarbons from production areas to refining or end use areas. Compressors Pipelines Terminals Environment 20 10

11 Natural Gas Compressor Seal Leaks Compressors run off natural gas or electricity and move natural gas from the well head into a pipeline for sale into commerce. Stained soils due to leaking compressor seals and improperly maintained spill collection pans Environment 21 Natural Gas Compressor Seal Leaks Leaking compressor seal oil near a compressor that is not properly captured in a collection pan. Environment 22 11

12 Glycol Dehydrator A glycol dehydrator strips liquids (water and hydrocarbons) from gas stream before the compressor moves the gas into the pipeline for commerce. Air emissions from glycol dehydrator exhaust stacks contain criteria pollutants, VOCs, and HAPs Leaks and spills from glycol dehydrators often contain benzene and other aromatics Environment 23 Glycol Dehydrator Fluids Spill Spill running down slope from glycol dehydrators Environment 24 12

13 Realities of Gas and Oil Drilling and Production Most groundwater and surface water issues result from surface spills, old or poorly installed casing, and bad cement jobs Historical reserve pits are often contaminant sources because of wastes buried in the pits when abandoned Air emissions can be significant a single condensate well can be a Title V source for VOCs and benzene emissions The media and public don t understand and don t want to understand Environment 25 Prepared by: Chris Shineldecker, Associate Vice President National Technical Expert Oil and Gas Compliance and Operations 13

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