SCAQMD Rule Notification and Reporting Requirements for Oil and Gas Wells and Chemical Suppliers

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1 SCAQMD Rule Notification and Reporting Requirements for Oil and Gas Wells and Chemical Suppliers Hydraulic Fracturing Symposium Cal State Fullerton September 23, 2014

2 Rule Notification and Reporting Requirements for Oil and Gas Wells and Chemical Suppliers Adopted April 5, 2013 Applies to operators of oil and gas wells and chemical suppliers Requires pre project notification, emissions and chemical usage reporting for drilling, well completion, or rework activities SCAQMD website where the public may access notification and chemical usage information 2

3 Rule Approach Implement Rule Notification and Reporting Gather data on activities relating to hydraulic fracturing and similar well production stimulation techniques Identify Best Management Practices used to minimize air quality impacts from drilling and well completion and well stimulation activities Step 2 Report to the Governing Board information collected in Step 1 Seek Board direction regarding how to proceed Board may direct staff to continue collecting data and/or develop new requirements to reduce emissions from oil and gas drilling and well completion activities 3

4 Notification Requirements Well operators are required to notify SCAQMD 10 days to 24 hours prior to: Well drilling Well completion, including acidizing, gravel packing, or hydraulic fracturing* Well Rework, including hydraulic fracturing Identify nearest sensitive receptor within 1,500 feet of well SCAQMD will post on its website within 24 hours * Also includes gravel packing and acidizing

5 Summary of Rule Notification Data (June Aug 2014) 874 events reported: 401 Acidizing events 223 Drilling events 142 Vertical 79 Horizontal 2 Other 207 Gravel packing events 14 Hydraulic fracturing events 29 Other 5

6 Location of Well Events 90% of notifications in Los Angeles County 10% of notifications in Orange County No notifications in Riverside and San Bernardino County In Orange County, ~ 60% of wells are within 1,500 feet of a sensitive receptor average distance is 500 feet

7 Summary of Rule Notification Data in Orange County (June Aug 2014) Approximately 58 events reported: 39 Acidizing events OXY USA, Inc. (23) Linn Operating, Inc. (5) Breitburn Operating, LP (10) Angus Petroleum (1) 4 Drilling events (all vertical) OXY USA, Inc. (3) Linn Operating Inc. (1) 3 Gravel packing events OXY USA, Inc. (3) 8 Hydraulic fracturing events Linn Operating, Inc. (8) 4 Other (cement squeeze, well perforation) Breitburn Operating, LP (3) Bridgemark Corp.(1) 7

8 Timeline of Orange County Events (June Aug 2014) 39 Acidizing events 23 events in 2 nd half of events in 1 st half of events in July and August Drilling events 1 event in 1 st half of events in 3 rd Q of Gravel packing events 1 event in 4 th Q of events in 1 st Q of Hydraulic fracturing events All events occurred between 6/2013 through 8/ Other (cement squeeze, well perforation) 1 event in 6/2013 All others in 1 st half of

9 Distribution of Notifications in Orange County by Activity (June 2013 Aug 2014) Hydraulic Fracturing 8 (13.7%) Gravel Packing 3 (5.1%) Other 4 (6.8%) Drilling 4 (6.8%) Acidizing 39 (67%) 58 total events 9

10 R Well Activity by Location* * June 2013 May

11 Rule Reporting Requirements Report combustion equipment Chemical usage Non-trade secret Trade secret Identify the chemical name, amount (volume or mass), if toxic air contaminant Amount of flowback fluid and how collected

12 Engine Use Reporting* Well Activity Average Average Average Duration Number of Engine Size (days) Engines (HP) Horizontal Drilling Vertical Drilling Acidizing (Maintenance and Matrix) Gravel Packing Hydraulic Fracturing * June 2013 August

13 Average Engine Emissions by Activity Type Well Activity NOx (lbs/day) 1 PM (lbs/day) 1 Drilling Acidizing Gravel Packing Hydraulic Fracturing 1 June 2013 August

14 Total Fluid Usage per Well Activity Well Activity Number of Events reported fluids usage Average Fluids Volume per Activity (gallons) Well Drilling 1 Horizontal 27 61,468 Vertical 91 35,889 Well Rework and Well Completion Acidizing ,972 Maintenance Acidizing ,392 Gravel Packing 47 24,604 Hydraulic Fracturing ,406 Other (redrill) 5 47,378 1 One unspecified drilling event reported use of 345 gallons of fluids used 2 Distinction between different types of acidizing began April 2,

15 Average Chemical Usage by Activity Type (Non-Trade Secret) Chemical Ingredient Drilling (lbs) Acidizing (lbs) Gravel Packing (lbs) Hydraulic Fracturing (lbs) Crystalline Silica 1,943 7,240 42,883 86,947 Ethylbenzene 209 Ethylene Glycol Formaldehyde 0.2 < Glutaral Hydrochloric Acid 3,461 Hydrofluoric Acid Methanol ,003 Naphthalene Phosphoric Acid 125 Sodium Hydroxide Toluene 27 Xylene 109 * Other TACs have been reported as trade secret 15

16 R Well Inspection Summary Since June 2013, SCAQMD staff conducted 92 inspections of oil/gas sites performing drilling, well completion, and well rework operations 24 well drilling events 19 hydraulic fracturing events 35 acidizing events 10 gravel packing events 4 misc event (cement job, perforations, redrill) 16

17 R Well Inspection Summary Observations from well inspections include: Visible smoke at 13 inspections (~14%) Visible dust at 13 inspections (~14%) Noticeable odors at 10 inspections (9.2 %) 17

18 Rule Onsite Monitoring and Sampling Handheld devices used to measure PM and H 2 S: Jerome Monitors (H 2 S) DustTrak Monitors (PM) Suma canisters used to measure hydrocarbons Sample vials to test flowback fluids 18

19 Onsite Monitoring and Sampling (Drilling) Sampled 9 acidizing events Slightly elevated levels of PM and H2S in short durations Slightly elevated levels of alkanes and aromatic hydrocarbons 19

20 Onsite Monitoring and Sampling (Acidizing) Sampled 1 acidizing event No elevated levels of PM or H2S Elevated levels of aromatic hydrocarbons (benzene and xylene) 20

21 Onsite Monitoring and Sampling (Gravel Packing) Sampled 5 gravel packing events Episodic elevated levels of PM10 and PM2.5 Increases attributed to equipment startup Majority of canister samples did not show elevated levels of hydrocarbons One canister sample showed slightly elevated levels of aromatic hydrocarbons SCAQMD staff is working to obtain a sample of the flowback fluid 21

22 Onsite Monitoring and Sampling (Hydraulic Fracturing) Sampled 2 hydraulic fracturing events 1 st Event Slightly elevated levels of PM10 H2S not measured due to weather No canister sample due to weather 2 nd Event No elevated levels of PM10 except for short-term period No elevated levels of H2S Slightly elevated levels of alkanes and some aromatics 22

23 Rule Online Notification and Reporting Portal Public can view well notifications chemical usage reports online Rule webpage Monthly reports 23

24 Rule Online Notification and Reporting Portal 24

25 Ongoing Efforts Continue data analysis, sampling and inspections Working Group Meeting in Fall 2014 Return to the Governing Board in Spring 2015 to present findings and recommendations 25