FRAC WATER-REGULATION OF QUANTITY AND QUALITY, AND REPORTING BY TEXAS GROUNDWATER CONSERVATION DISTRICTS

Transcription

1 FRAC WATER-REGULATION OF QUANTITY AND QUALITY, AND REPORTING BY TEXAS GROUNDWATER CONSERVATION DISTRICTS Presented by Mary K. Sahs Changing Face of Water Rights February 23, 2012

2 NEWSPAPER HEADLINES

3 Frak!

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5 HF TERMS HYDRAULIC FRACTURING method of stimulating reservoirs of low permeability to optimize production of oil and gas FRAC WATER usually freshwater (TDS content varies but above 10,000 ppm TDS) used for frac fluid FRAC FLUID primarily water with additives such as proppants (usually sand), and chemicals

6 HF TERMS (con t) PROPPANTS usually sand added to frac fluid to hold open the fractures so the hydrocarbons can flow into the wellbore FLOWBACK frac fluid, which may contain additional constituents from the formation, which returns to the surface after the fracturing is completed

7 HF TERMS (con t) RESERVE PITS pits dug into the ground to hold flowback LAND FARMING process of tilling flowback into soil as a disposal method

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9 WATER AND HYDRAULIC FRACTURING

10 CAN GCDS REGULATE FRAC WATER? MYTH GCDs have no authority over groundwater or water wells used in oil and gas and hydraulic fracturing operations

11 OIL AND GAS EXEMPT WELLS TWC (b)(2) A district shall provide an exemption from the district requirement to obtain a permit for: Drilling a water well used solely to supply water for rig that is actively engaged in drilling or exploration operations ; RRC oil/gas well permittee responsible for drilling and operating water well; and Water well on same lease or field as drilling rig

12 IS HF EXPLORATION OR DRILLING? EXPLORATION? In an article about jurisdiction over water wells, RRC says that HF is exploration Under RRC interpretation, HF water would fall under oil and gas exemption

13 IS HF EXPLORATION OR DRILLING? DRILLING? Other industry sources state that Hydraulic Fracturing is not a drilling process It is a method to stimulate production Therefore, the oil and gas exemption would not apply

14 IS HF EXPLORATION OR DRILLING? Production? In newly adopted Hydraulic Fracturing Chemical Disclosure Requirements RRC rules define "hydraulic fracturing treatment" as being used "to enhance production of oil and/or natural gas.

15 DOES IT MATTER HOW HF IS CHARACTERIZED? All water wells associated with oil and gas operations, including HF: Must register Must meet construction standards Must file driller s log and geophysical logs GCD may require production permit and records May need to meet spacing requirements

16 INDUSTRY LEADERS AGREE GCDS HAVE AUTHORITY According to industry leaders, even for temporary wells, GCDs can require: Reporting water usage Installing meters on wells Curtailing production during drought Registration of temporary wells

17 TEXAS OIL AND GAS ASSOCIATION Testimony to the House Natural Resources Committee, April 5, 2011 Even water wells exempt under (b)(2) are NOT exempt from GCD regulation GCDs have the right to regulate production, spacing, and require water use reporting

18 GCD FOCUS ON HYDRAULIC FRACTURING

19 GCDS: HF AND GROUNDWATER ISSUES Source of Groundwater Supply Quantity of Groundwater Used Location and Depth of Well HF Contaminating Groundwater Waste of Groundwater in HF Process Management of Flowback

20 GCDS: HF AND GROUNDWATER ISSUES SOURCE OF GW SUPPLY Freshwater Define your meaning Sale of water from existing well Surface impoundment Dedicated water line Existing well owned by producer New well owned by producer

21 GCDS: HF AND GROUNDWATER ISSUES QUANTITY OF GW USED Water use may be small volume relative to other uses in area Water use by large-scale developments over multiple years may have cumulative adverse impact on area GW supply Meters/measuring devices required Periodic water use reporting required Production limits

22 GCDS: HF AND GROUNDWATER ISSUES LOCATION AND DEPTH OF WATER WELL Quantity and Quality Concerns: Location near existing municipal, public, private supply wells and springs Depth of HF water source wells Are they drawing water from the same formation needed for potable and irrigation use?

23 GCDS: HF AND GROUNDWATER ISSUES HF CONTAMINATING GW Is HF well properly completed through the freshwater bearing formation? Are the created fractures contained within the target formation? Many ongoing studies Lots of litigation The infamous flaming faucet

24 GCDS: HF AND GROUNDWATER ISSUES WASTE OF GW IN HF PROCESS Temporary surface pipelines may routinely leak Unlined earthen storage ponds Unintentional releases of water from poorly constructed ponds

25 GCDS: HF AND GROUNDWATER ISSUES MANAGEMENT OF BACKFLOW SALTWATER DISPOSAL WELLS RESERVE PITS AND LAND FARMING RECYCLING

26 GCDS: HF AND GROUNDWATER ISSUES MANAGEMENT OF BACKFLOW: DISPOSAL WELLS Backflow often disposed of in RRC permitted saltwater disposal wells Owned by producer or commercial Window of opportunity for comment is short No required notice to GCDs Water permanently leaves the hydrologic cycle

27 GCDS: HF AND GROUNDWATER ISSUES MANAGEMENT OF BACKFLOW: SURFACE DISPOSAL Reserve pits permitted by RRC Pit liners are required Pit method efficient in dry areas of Texas because of evaporation Flowback < 3,000 TDS no permit required if on same lease and permission from surface owner Other landfarming requires RRC permit

28 GCDS: HF AND GROUNDWATER ISSUES MANAGEMENT OF BACKFLOW: RECYCLING Clean up flowback to level appropriate for re-use as frac water Location of facility Filtration, Aeration and Sedimentation, Biological Treatment, Demineralization, Thermal Distillation, Condensation, Reverse Osmosis, Ionization, Natural Evaporation, Freeze/Thaw, Crystallization, and Ozonation

29 GCDS: HF AND GROUNDWATER ISSUES CASE STUDIES Evergreen UWCD Gonzales UWCD Upper Trinity GCD Panola County GCD Pineywoods GCD

30 GCDS: HF AND GROUNDWATER ISSUES Evergreen UWCD New well for HF supply Wells must register No drilling permit required No production fees Production metered and reported Sale of water from existing well Change of use to commercial

31 GCDS: HF AND GROUNDWATER ISSUES Gonzales UWCD HF water supply wells using shallow formations and competing with domestic and muncipal users District has no jurisdiction over deeper, more brackish formations Working with producers encouraging use of deeper formations

32 GCDS: HF AND GROUNDWATER ISSUES Upper Trinity GCD Enabling act allows production fees on all oil and gas water wells Must register wells Production metered and reported Enforcement against surface impoundment that spilled large quantity of water Participate in RRC permitting of saltwater disposal wells; saltwater injection sources wells; reserve pits; and landfarming to extent available

33 GCDS: HF AND GROUNDWATER ISSUES Panola County GCD Most activity using HF is for secondary recovery Register when well is drilled when create a pond when buy water from someone s well Meter production Spacing Existing well selling water becomes commercial Using large impoundment to supply water to all HF operations within 10 mile radius

34 GCDS: HF AND GROUNDWATER ISSUES Pineywoods GCD HF supply wells treated differently from rig supply wells Obtain drilling and operating permits Production fees Spacing Reasonable use production limits Existing well selling water becomes commercial

35 Question? Contact: Mary K. Sahs