California Well Stimulation Treatment Regulations

Transcription

1 California Well Stimulation Treatment Regulations Robert S. Habel California Department of Conservation Division of Oil, Gas, and Geothermal Resources

2 Division Mandates Supervise the drilling, operation, and maintenance of wells to prevent damage to life, health, property, and natural resources. Supervise and permit the owners/operators to utilize all methods and practices known to the industry for the purpose of increasing the ultimate recovery. To best meet oil and gas needs in this state, the supervisor shall administer this Division so as to encourage the wise development of oil and gas resources.

3 Senate Bill 4 With the passage of Senate Bill 4 (Pavley, 2013), California has new laws for the practice of well stimulation activities performed by oil and gas operators. Well stimulation practices are defined by Senate Bill 4 (SB 4) and include hydraulic fracturing and other treatments that increase the flow of hydrocarbons (oil and natural gas) to wells and then to the surface for recovery.

4 Types of Well Stimulation Treatments in California Acid Matrix Treatments Hydraulic Fracturing Treatments Acid Fracturing Treatments Others

5 REQUIRED: SB 4 Summary Most stringent regulations in the nation A study of well stimulation A Statewide Environmental Impact Report The Division to adopt well stimulation regulations

6 SB 4 Summary REQUIRES: Groundwater monitoring plans Permits for well stimulation Public disclosure ESTABLISHES: Notification requirements Trade secret procedures PROVIDES: Amendments to the oil and gas fee structure

7 Well Stimulation Treatment Regulations Nearby Wells and Geology Review Pre-Fracturing Well Testing Advance Notification Division Neighbors Allow for Water Well Testing

8 Well Stimulation Treatment Regulations Monitoring During & After Fracturing Operations Disclosure of Materials Used in Fracturing Fluid Trade Secrets Storage of Hydraulic Fracturing Fluids

9 WELL CONSTRUCTION IN CALIFORNIA Statutes and regulations regarding the protection of underground and surface water. Specific regulations regarding the integrity of the well casing. Specific regulations regarding cement and equipment used to seal off the well from underground zones bearing fresh water and other hydrocarbon resources.

10 Groundwater Monitoring State Water Resources Control Board: Approve a groundwater monitoring plan (GWMP), or Provide concurrence that groundwater monitoring is not required because of a lack of USDWs. Will Receive water sample data collected per the GWMP. All sampling of well or surface waters collected under Neighbor Notification. All groundwater data are posted to State Website

11 Neighbor Notification Requirement 3 rd party sends copy of WST Permit 30 days prior to WST to any neighbors and tenants w/in 1500 of well head & 500 of projection of wellbore. Declaration of notification sent to the Division Operator pays for 3 rd party sampling of well or surface water if requested by owner or tenant

12 Pre-WST Pressure Testing Operator tests all casing and tubing strings to be used in the WST: No more than 30 days before well stimulation is proposed, but after all other operations that may compromise well integrity are completed tested and shall be charted and submitted to the Division Operator: provides Division 24 hour notice to witness test. Provides Division copy of chart 12 hours before WST.

13 Pre-Test Cement Evaluation Operator runs radial Cement Evaluation Log 48 hours after cement placement to show: Cement will ensure geologic and hydrologic isolation of the oil & gas formation during and following WST. Operator provides Division documentation of cement evaluation 72 hours before WST. WST operations may not go forward until the Division is satisfied with the review of the cement evaluation.

14 Monitoring During WST Operators continuously monitors and records the following during WST, if applicable: 1. Surface injection pressure 2. Slurry rate 3. Proppant concentration 4. Fluid rate 5. Annuli pressures (if open to the atmosphere)

15 Operator monitoring of seismicity associated with Hydraulic Fracture (HF) WSTs

16 Operator handling of fluids associated to well stimulation

17 Monitoring post-stimulation production pressures Production Pressures for a stimulated well shall be: Monitored at least every other day, for 1 st 30 days after a WST is completed. Monitored monthly after the 1 st 30 days. Reported to DOGGR monthly thereafter. Reporting not required if annular space has no voids. immediate reporting is required if pressures readings indicate potential problem.

18 Post-WST Summaries & Histories to DOGGR 60 days from the end of WST, includes, Public Disclosure Treatment details on wellbore (stages, perforation intervals) Well Stimulation Fluid Additives and Constituents Source and volume of base fluid Volume, composition and disposition of flowback fluid

19 Post-WST Summaries & Histories to DOGGR (continued) Post well Stimulation Report How the operations differed from the proposed design Pressures and monitoring performed during and after well stimulation Hazardous waste generation & disposition, including copies of hazardous waste manifests. Well History

20 Reporting All Acid Uses To be reported as Well History, 60 days after WST. Must include: Volume of fluid containing acid emplaced into well, including gallons/treated per foot. Calculated Acid Volume Threshold (AVT). Exemptions from this reporting requirement: WSTs per Article 4 (see CCR 1780, 1781) Permitted drill, redrill, rework, and abandonment work that is not WST. UIC projects.

21 Summary Strongest regulations in the nation Protects drinking water, the environment, and public heath and safety Provides for transparency Reporting requirements

22 Reporting for 2016 During the reporting period, 579 well stimulation treatments (WSTs) were performed with a total of 2,182 distinct stages stimulated. With a single exception, WST was limited geographically to western Kern County in relatively mature oil fields (no offshore). 94% of WST were performed in diatomite formations. 2.76% of WST were performed in Monterey formations. The average fracture height of WST for all stimulated stages was 156 feet.

23 Reporting for 2016 The average fracture length of WST for all stimulated stages was 78 feet. The average depth of stimulation for all zones was between 1,260 and 1,991 feet. 100% of recovered WST fluids were reinjected into Class II underground injection projects, which are regulated separately under the Division s Underground Injection Control (UIC) program. There were no well failures associated with WST and no emergency responses to spills or releases.

24 Thank you.