Class II Saltwater Disposal Wells in Ohio: Understanding the Avenue to Success

Transcription

1 Class II Saltwater Disposal Wells in Ohio: Understanding the Avenue to Success Authors: J. Daniel Arthur, P.E., SPEC, ALL Consulting Tom Tomastik, Geologist, ALL Consulting David Overstreet, Vice-President, ALL Consulting Presented at: GWPC 2015 UIC Conference, February 9-11, 2015

2 Introduction Rapid development of the Marcellus and Utica shales led to big demand in Class II disposal wells. There are a limited number of Class II SWD wells in NY, PA, and WV. Ohio remains well suited for handle the increase in disposal activity. Source: ODNR,

3 Ohio s Class II SWD Program Ohio received primacy of its Class II program in Ohio has seen a dramatic rise in Class II SWD permitting activity since Class II wells have increased from 161 to 238 permitted wells. Currently, there are 201 in operation, 18 being drilled or completed and 19 permitted. Source: Tomastik,

4 Increased Ohio Injection Activity In mid-2010, with the enactment of Senate Bill 165, Ohio started tracking brine disposal on a quarterly basis and in-state vs. out of state disposal volumes. Disposal volumes in Ohio have continued to increase from a little over 12.5 million barrels in 2011 to over 19 million barrels in Out-of-state disposal reached a peak of 58% in 2012 and has now leveled off to about a 50/50 split, with the marked increase in disposal from Ohio s Utica Shale operations. 4

5 Increased Injection Activity Leads to Increased Environmental Activism Source: insideclimatenews.org Source: ecowatch.com Source: napalmcreek.com 5

6 ..And New Regulations Ohio has passed several rounds of new regulations since 2010 that have impacted Class II SWDs - concerning well construction and cementing, seismic monitoring, additional injection well testing requirements, and continuous integrity monitoring. Source: ODNR,

7 Challenges Facing Ohio Injection Well Applicants and Operators can be Overwhelming Source: youtube.com Source: frackwire.com Source: mytattospro.com 7

8 These Challenges Include: Finding and locating open spaces for well siting. Identifying road network and access. Addressing mineral rights issues. Dealing with densely populated areas. Finding adequate geologic formations for high capacity disposal. Working with Regulatory Agency and permitting process. Addressing opposition to injection wells. Understanding well construction, cementing, and completion practices. Determining additional testing requirements radioactive tracer or spinner survey, pressure fall-off testing, original bottom hole pressure recording, and any other tests deemed necessary. Addressing seismic unit installation and monitoring requirements. Selecting right options for surface facilities and proper pre-treatment of fluids. Addressing TENORM and solid waste issues. 8

9 Ideally, away from populated areas. Good road network and access. Purchasing or leasing property, mineral rights issues, rights to inject. Favorable geologic conditions for high capacity disposal. Well Siting Criteria Source: Google earth.com 9

10 Geological Evaluation Proper geological evaluation is critical to a successful large capacity disposal well in Ohio. Knowledge of geologic formations and regional variations is important in selecting appropriate disposal intervals. Source: DOGRM,

11 Working with Regulatory Agency and Permitting Process Completion of the area of review evaluation. Submittal of required applicant forms. Fulfillment of public notice requirement. Addressing of potential objections to the application. Source: DOGRM,

12 Opposition to Injection Wells Opposition to saltwater disposal wells has increased dramatically in Ohio in the last three years. There have been objections to SWD applications and protests and demonstrations at operational sites. The applicant needs to be prepared to address these challenges. Source: Commondreams.org 12

13 Well Construction, Cementing, and Completion Practices Understanding proper well construction design, geophysical log interpretation, cementing, and completion practices in Ohio are essential to a successful SWD well. Source: DOGRM,

14 Additional Ohio Downhole Testing Additional testing requirements such as radioactive tracer or spinner survey logging. Pressure fall-off tests. Testing and recording original bottom hole pressures. Any other tests the Chief deems necessary. Requirements Source: Lufkin.com 14

15 Seismic Unit Installation Ohio regulations can require submittal of a seismic monitoring plan. Seismic unit installation has been required on deep Class II SWD wells. Source: ALL Consulting,

16 Actual Seismic Monitoring Seismic monitoring in real-time. Required to submit data to DOGRM. Notification to operator of seismic event in real-time by automated . Source: ISTI,

17 Designing a Surface Facility Source: ALL Consulting,

18 Typical Injection Surface Facility Two types of surface facilities are common earthened dike with minimum of 30 mil liner or concrete dike. Dike must be able to contain all fluids in event of accidental release. Concrete unloading pad with drain and sump that collects any spillage is required. Operation in Ohio Source: DOGRM,

19 Pre-treatment of Injection Fluids It is extremely important to properly filter and chemically treat the injectate prior to injection. Chemical treatment needs to address not only the type of fluid to be injected, but also the sensitivity of the injection formations. Advanced technology applications can offer additional alternatives and cost savings. Source: ALL Consulting,

20 TENORM and Solid Waste Disposal in Ohio TENORM in Ohio is regulated by the Ohio Dept. of Health (ODH). Oil and gas regulations also address requirements for testing or manifesting of TENORM solid wastes. Radium-226 and Radium-228 are the predominant TENORM issues with oil and gas. At Ohio Class II SWD facilities, solids required to be tested for TENORM will be tank bottoms, pipe scale, and filter media. These solids can also be manifested for shipment out of state without conducting testing. Source: slideshare.net 20

21 TENORM Regulations in Ohio Ohio has some of the most stringent TENORM rules in the country. Ohio landfills can only accept TENORM wastes at concentrations of less than 5 picocuries per gram above background radiation. Regulations allow for dilution of TENORM wastes with approval from Ohio Dept. of Health. Source: ODH,

22 Conclusions Proper consideration of these challenges can lead to success in Ohio s SWD environment. ALL is actively engaged in assisting oil and gas clients in Ohio and understands how to maneuver in the disposal well landscape and how to address these challenges. Source: ALL Consulting,

23 Questions? J. Daniel Arthur, PE, SPEC, ALL Consulting, LLC 1718 S. Cheyenne Avenue Tulsa, OK Source: ALL Consulting, 2014 Citation Information: J. Daniel Arthur, Tom Tomastik, and David Overstreet, ALL Consulting, Class II Saltwater Disposal Wells in Ohio: Understanding the Avenue to Success Presented at the GWPC 2015 UIC Conference, Austin, Texas, February 9-11,