Exploration & Production Site Development Requirements. Oil & Gas Environmental Conference Dallas, TX

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1 Exploration & Production Site Development Requirements Oil & Gas Environmental Conference Dallas, TX

2 Agenda Presenter Background Various Activities Associated with E&P Site Development Water Supply Options Case Studies (Five) Other Issues to Consider Questions

3 Introduction of Presenter Guernsey is a multidisciplinary engineering, architectural, and consulting firm headquartered in Oklahoma City, OK; have been in business since 1928; multidisciplinary staff of planners, scientists, and engineers Ken Senour, CEP, QEP, Water Resources/Environmental Planner, Bowling Green State University, OH; Manager, Engineering & Environmental Group

4 Activities Associated With E&P Site Development Land development/site layout Water supply Water conveyance Water storage Environmental clearances/permitting Power supply Company-wide standardization Recommended practices/procedures Right-of-way

5 Land (Site) Development Water sourcing and supply Site layout/engineering Grading Floodplains Site access Groundwater vulnerability

6 Water Supply Options Drought has stressed water users Water quality/quantity for drilling and completing operations can be challenging Stream diversions Ponds/lakes/reservoirs Groundwater o Purchase rights o Drill own wells o Brackish/reuse/recycle water Wastewater effluent from municipalities Water from municipalities

7 Case Study 1: General Water Analysis for A Large Play Area Water Quality Data River / Stream Inventory Flow Data Surface Ground Water Resources Database Water Water Aquifer Inventory Water Volume/Production Characteristics Water Quality Data

8 Case Study 2: Large Acreage Water Supply Study/Environmental Permitting Multiple well development play Determine surface water/groundwater availability including: o Streams o NRCS structures o Ponds o Aquifers Design parameters for a water supply reservoir o In-stream flow o Permits o Land acquisition o Impoundment size o Hydrology o Dam type o Dam Safety Potential for future use by local communities as a water supply Hydrology Study Waters of the United States o Ponds o Section 404 permit/environmental studies o USACE involvement o Limits of flooding Water rights permitting through state agencies

9 Case Study 3: Water Availability Options Around O&G Wells Water rights-structures o Regulating agency- state(s), USACE 404 permits o Stream diversions o Pond/lakes o Channels Municipal supplies o Time of day o Time of year o Right-of-way o Conveyance o Cost of development Wastewater reuse from municipalities o Quantity available o Parameters/quality o Permitting o Treatment o Spill prevention/emergency plans

10 Case Study 3: Water Availability Options Around O&G Wells Groundwater o Purchase landowner s water rights o Drill own wells/get permits o Purchase water directly from landowners Private Land Owner o Ponds/lakes o Generation of pipeline/conveyance o Remediation

11 Case Study 4: Site Layout/Facility Engineering Design As built P&IDs for several well production pads in Mississippi Lime Play As built P&IDs of a produced water disposal well pad in the Mississippi Lime Play Equipment and Instrument List for the well production pad Third party review of the VOC Emissions Report of crude oil storage tanks at the well pad, including discovery of overestimation of calculated annual VOC emissions due to misapplication of measured site data Calculated pressure drops through two different produced water manifold arrangements

12 Case Study 4: Site Layout/Facility Engineering Design Plans for electric distribution system behind the primary meters Construction standards electric distribution for facilities to be built Assist with electric protection coordination plans including recloser settings and voltage drop calculations Coordinate with local electric utility electric capacity requirements to serve load

13 Case Study 5: Water Storage Topographic survey Geotechnical investigation Depth to groundwater Produced water storage Leachate collection systems Construction Documents Onsite inspections/field modifications Local permits, i.e. Oklahoma Corporation Commission, Texas Railroad Commission

14 Other Issues to Consider Environmental issues: due diligence (Phase I/II ESAs) and potential NEPA clearances; local permits Conveyance: access/egress, water transport (truck, pipelines, internal movements, and access) Floodplains: impacts/interferences with floodplains Power supply: available electrical power, FERC rules Recommended practices/procedures: manage process water Right-of-way Site security

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