Outline. Senate Bill 4 Overview

Similar documents
Division Mandates. Supervise the drilling, operation, and maintenance of wells to prevent damage to life, health, property, and natural resources.

Facility Site Proposed Laydown/Parking

Assessment of Well Stimulation in California. Volume 1

Oil and Gas Monitoring. November 2, 2016 GRA Meeting John Borkovich, P.G. Groundwater Monitoring Section Chief

WELL STIMULATION TREATMENTS

NEVADA EXPLORATION PROJECT

Fracking In California: What it is, Who controls it, And Who Is Concerned About It. Dennis R. Luna, Managing Partner LUNA & GLUSHON Century City, CA

October 14, Ventura County Board of Supervisors Ventura County Government Center 800 S. Victoria Avenue Ventura, CA Delivered via

The State of Hydraulic Fracturing in CA: Where Are We, and Where Are We Going?

Safely Harvesting Energy

California Well Stimulation Treatment Regulations

Water Recycling Hydraulic Fracturing, Remote Surface Locations. Tyler Bittner

Staff will monitor Bills as the move through the legislative process

U.S. ARMY CORPS OF ENGINEERS BUILDING STRONG LOS ANGELES DISTRICT

Shale Development: Understanding and Mitigating Risks Associated with Well Construction and Hydraulic Fracturing

Hydraulic Fracturing Technology

Hydraulic Fracturing Emerging Issues in North America

Natural Gas Reform Campaign

Lifecycle Water Management Considerations & Challenges for Marcellus Shale Gas Development

About TransCanada. At TransCanada, our mission is to safely, responsibly and reliably transport energy used by millions of North Americans every day.

Core Value. Unconventional Gas Production and Water Resources: Lessons from the U.S. Brisbane, Sydney & Canberra, Australia February 27 March 1, 2012

2017 ANNUAL GROUNDWATER MONITORING AND CORRECTIVE ACTION REPORT

COPYRIGHT. Sand Control Fundamentals. Virtual Instructor Led Session #2

Hydraulic Fracturing & Public Health: What we know, what we can infer and how we can move forward

Fracture Stimulation Just the Facts, Ma am

Shale Development Does Cheap Energy Really Mean Flaming Tap Water?

Fracing: Basics and Concerns

2017 ANNUAL GROUNDWATER MONITORING AND CORRECTIVE ACTION REPORT

This Series of Guides Addresses:

Table of Contents See also Summary of Contents on the previous page.

BEST OPERATING PRACTICES: Hydraulic Fracturing

Case Histories of Successful Stimulation Fluid Dispersion Using Pressure Pulsation Technology

Representing EXAMINERS REPORT AND PROPOSAL FOR DECISION STATEMENT OF THE CASE

ORDINANCE NO.: AN ORDINANCE AMENDING CHAPTER OF THE ALAMEDA COUNTY GENERAL ORDINANCE CODE TO PROHIBIT HIGH-INTENSITY OIL AND GAS OPERATIONS

THE MARCELLUS SHALE Powering America s Future, Thanks to Hydraulic Fracturing. Travis Windle

Unconventional Gas & Oil Environmental & Regulatory Issues. Robert Kleinberg Schlumberger Research Cambridge, Massachusetts.

SHELL ONSHORE OPERATING PRINCIPLES

Hinckley Seniors Group January 2, 2012

SHALE FACTS. Production cycle. Ensuring safe and responsible operations

Michigan Department of Environmental Quality Resource Management Division Office of Oil, Gas, and Minerals

Water Sourcing and Recycling in Oil & Gas Operations. Michael Sims, P.E. Technical Permitting, Oil &Gas Division Main Line:

SPE An Assessment of Risk of Migration of Hydrocarbons or Fracturing Fluids to Fresh Water Aquifers: Wattenberg Field, CO

SAMPLE. US Shale. Insight Report

Bakken Shale: Evolution of a Giant Oil Field

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

2017 ANNUAL GROUNDWATER MONITORING AND CORRECTIVE ACTION REPORT

OIL AND GAS SUPPLEMENT

White Paper Executive Summary from the California Independent Petroleum Association

NEMC Challenges of Managing Water in the Marcellus Play. Nick Inkenhaus Water Resources Engineer

Monell Unit CO 2 Flood

Department of the Environment

2.4.1 NATURAL RESOURCES CASE STUDY: WHAT THE FRACK?

The SPE Foundation through member donations and a contribution from Offshore Europe

Fracking Safety & Economics November 9, 2017 America 1 st Energy Conference, Houston Tx.

Timber Creek Field Study for Improving Waterflooding

Water Issues Relating to Unconventional Oil and Gas Production

DAVID SPEARS STATE GEOLOGIST

Potential Relationships Between Hydraulic Fracturing and Drinking Water Resources

Executive Summary California Council on Science and Technology Lawrence Berkeley National Laboratory Pacific Institute July 2016

Hydraulic Fracturing for Shale Gas Production: Practices & Progress

EPA s Study of the Potential Impacts of Hydraulic Fracturing on Drinking Water Resources

Shale Fracking What are the Risks? Control of Well Coverage Issues

Oil Production Activities & Hydraulic Fracturing Oil in California

Successful Completion Optimization of the Eagle Ford Shale

DEPARTMENT OF THE ARMY U.S. ARMY CORPS OF ENGINEERS, SACRAMENTO DISTRICT 1325 J STREET SACRAMENTO CA PUBLIC NOTICE

Natural Gas A Game Changer

Clean, Abundant, and Secure in the United States Safe and Environmentally Responsible Development America s Shale Resources

Rick Henderson, Field Operations Supervisor DEQ Office of Oil, Gas, and Minerals

Common Aspects of State Regulation of Hydraulic Fracturing

Effects of Enhanced Oil Recovery on Production Engineers, Elm Coulee Field, Bakken Reservoir, Richland County, Montana

GROUSE GROUSE IN SITU OIL SANDS PROJECT. Proposed Development Plan. Plain Language Project Summary

Experiences in the Salt Creek Field CO2 Flood

1951 Clarence Iverson #1

New Acid Stimulation Treatment to Sustain Production Los Angeles Downtown Oil Field U.S. Department of Energy Grant No.

COPYRIGHT. Development of a Gas Condensate Reservoir. The Anschutz Ranch East Field: Case Study

GAS WELL/WATER WELL SUBSURFACE CONTAMINATION

Hydraulic Fracturing in California

Hydraulic Fracturing Principles and Operating Practices

What s Fracking in SoCal

Dr. Will Fleckenstein Adjunct Professor, Colorado School of Mines and SPE Distinguished Lecturer

SHELL ONSHORE OPERATING PRINCIPLES IN ACTION: WATER FACT SHEET

Integrated Sensor Diagnostics (ISD) Subsurface Insight for Unconventional Reservoirs

Understanding the Challenge Design for Effective Stimulation. Visegrád, 20 November 2014 Jonathan Abbott, Schlumberger. Society of Petroleum Engineers

Hydraulic Fracturing & Well Integrity 101

For personal use only

Appearances Representing Philip Whitworth Stroud Petroleum, Inc. Scott D. Stroud EXAMINER S REPORT AND RECOMMENDATION STATEMENT OF THE CASE

Hydraulic Fracturing: Technological Advances and Florida s Energy

Alternative water supplies for sustainable oilfield operations Cotulla, Texas November 15, 2013

WATER QUALITY MONITORING PLAN PROPOSED SPRINGS EQUESTRIAN CENTER RESCUE, CALIFORNIA (APN )

Yukon Oil and Gas Overview:

OUTLINE OF PRESENTATION

Oil and Gas Study. March 2 2, 2012

Environmental and Economic Considerations for Marcellus Natural Gas Development. Presented by Tom Murphy and Dave Yoxtheimer

BEFORE THE BOARD OF COUNTY COMMISSIONERS MARTIN COUNTY, FLORIDA ORDINANCE NO.

OKLAHOMA CORPORATION COMMISSION OIL & GAS CONSERVATION DIVISION P.O. BOX OKLAHOMA CITY, OK (Rule 165:10-3-1) PERMIT TO DRILL

White Paper: Shale Gas Technology. September Shale Gas Technology 2011 NRGExpert Page 1 of 8

Early Indicators of Shale Energy Development: A Framework for County Readiness

Longview, WA. Kalama, WA PROJECT SITE. PROJECT: Kalama Manufacturing and Marine Export Facility Project FIGURE 1: VICINITY MAP

Since the announcement that. Hydraulic fracturing: Adding to the debate. Shale gas is defined as gas generated. Groundwater. What is it?

Transcription:

Senate Bill 4 Overview Outline Types of Well Stimulation Treatments Why Well Stimulation Treatments are Necessary Overview of Hydraulic Fracturing in Ventura County History of Sespe Oil Field Operations in the Sespe Oil Field Condor Mitigation and Support Measures Water Usage / Water Disposal Hydraulic Fracture Monitoring Disclosure

Senate Bill 4 Overview Signed into law by Governor Brown on September 20 th, 2013 Imposes the strongest regulations and disclosure requirements for well stimulation operations of any state in the nation Interim regulations went into effect on January 1 st, 2014 and will be in place until July 1 st, 2015 when permanent regulations go into effect Division of Oil and Gas is currently finalizing permanent regulations

Senate Bill 4 Compliance Operators must obtain a permit for all well stimulation treatments Requires neighbor notification, and water testing rights and obligations Operators must submit a groundwater monitoring plan for before and after well stimulation treatment testing or obtain groundwater monitoring exemption from the State Water Resources Control Board Requires public disclosure of makeup and volume of all fluids other than water, by CAS (chemical abstract service) number and trade name Requires post-treatment reporting and disclosure

Types of Well Stimulation Treatments Hydraulic Fracturing Involves pumping fluids into a wellbore at a high enough pressure to cause the reservoir rock to fracture. Once the fractures are initiated a propping agent such as sand is pumped into the wellbore to keep the fractures open. Hydraulic fracturing has been occurring in the United States since the 1940s and in California since the 1950s. Acid Stimulation Involves pumping a diluted acid into the wellbore to reduce drilling damage caused by drilling mud and cement or to enhance the permeability of the reservoir rock. Depending on the purpose of the treatment, acid stimulations are pumped both above or below the fracture pressure of the reservoir. The two most common types of acid used in oil wells are hydrochloric (HCl) and hydrofluoric (HF). Acid stimulation has been occurring in the United States since the 1930s. Both types of treatments are typically completed in only 2-3 days per well

Why Well Stimulation Treatments are Necessary Enhance permeability of reservoir rock Permeability is the property of a reservoir rock that is an indication of the ability of fluid or gas to flow through the reservoir. The most common unit of measure of permeability for oil reservoirs is the millidarcy (md). Typical permeability for a sandstone reservoir that is stimulated is 0.1 10 md and typical permeability for a shale reservoir that is stimulated is 0.000001 0.001 md. Typical permeability for sandstones in California that don t require stimulation is 100 10,000 md. For reference the typical permeability of a gravel pit is 10,000,000 md. Reduce damage done during the drilling process Many reservoirs are damaged during the drilling process, most commonly caused by either drilling mud invasion or cement invasion. The stimulation treatment helps dissolve near wellbore invasion or creates a path from the wellbore past the damage zone to the reservoir. Drilling damage is more prevalent in naturally fractured reservoirs which are common in many of the fields in Ventura County.

Hydraulic fracture fluids are typically 99.55% water and sand. The remaining 0.45% is chemicals, many of which are found in common household products and used by the public every day.

Oil Production & Hydraulic Fracturing in Ventura County Oil was first discovered in California near Santa Paula in Ventura County in the 1860s Current production is 25,000 BOPD and 24,000 MCFD. Production peaked in the late 1970s at 51,000 BOPD and 54,000 MCFD Industry is responsible for 5,500 direct and 2,700 indirect jobs 1 Total economic contribution to Ventura County in 2012 was $4.265 billion or 6.9% of the total for the county 1 Hydraulic fracturing began occurring in Ventura County in the early 1960s Over 500 wells have been hydraulically fractured in the county to date and hydraulic fracturing has taken place in most of the major fields in the county 1 Los Angeles County Economic Development Corporation, Oil and Gas in California: The Industry and its Economic Contribution in 2012

Ventura County Oilfields Contains Hydraulically Fractured Wells No Hydraulically Fractured Wells County Lines N Sespe Sespe Ojai Ojai Ojai Del Valle Bardsdale Shiells Canyon Rincon Ventura South Mountain 10 Miles Oxnard Sources: Esri, HERE, DeLorme, USGS, Intermap, increment P Corp., NRCAN, Esri Japan, METI, Esri China (Hong Kong), Esri (Thailand), TomTom, MapmyIndia, OpenStreetMap contributors, and the GIS User Community

Sespe Oil Field History Early 1880s Prospectors began searching for oil in the area due to the presence of numerous natural seeps. Discovery well Tar Creek 1 completed in 1887 at depth of 965 with initial production of 185 BOPD 1890s thru1950s - 80 wells drilled on the Tar Creek and White Star leases targeting shallow shale zones. Most of these wells had depleted by the 1950s. Early 1960s - Start of hydraulic fracture completions in deeper Sespe sandstone/conglomerate zone leads to increased drilling activity. Every new well in the field from this point forward is hydraulically fractured. 1964 to 1970 - Active well count increased to 156 wells 1970 - Sespe Field reaches peak production at 7,100 BOPD and 7,400 MCFD 1970 to 1990 - Active producer count increases to 260 wells 1987 Seneca acquires 50% of field from Argo Petroleum 2008 Seneca acquires majority of rest of the field from Vintage Production Company. Seneca now owns ~98% of field. 2011 - Seneca starts adding 5 to 6 new wells per year Natural seep near Tar Creek

Hydraulic Fracturing in the Sespe Oil Field Sespe Field produces from the Sespe sandstone/conglomerate reservoir between 2500 and 8500 below surface. The interval completed in most wells covers ~1000. Wells are vertical, or near vertical, in pay zone no horizontal wells. At one time the reservoir was buried as much as 15,000 below surface, but has been uplifted by faulting over time. The reservoir permeability is only 0.1-1 md because of this deep burial. Without hydraulic fracturing the field would have been uneconomic to develop. Fracture treatments at Sespe have been a standard operating procedure since 1964. During the last 49 years, 258 wells have been fractured with a total of 677 fracture treatments with no environmental impacts. Seneca and the industry have a proven record of stewardship in the Sespe oil field relating to fracture treatments. Fracture Treatment at Sespe Field

BOPD and BWPD Well count Sespe Field Production History Cumulative Production to Date 42 MMBO & 69 BCF Barrels Oil per Day Well count First Fracture Barrels Water per Day

Condor Mitigation & Support Measures Seneca recognizes the importance of condor mitigation measures at Sespe. Since Seneca began operations in the field in 1987 no injury or death of a condor has been caused by or associated with Seneca s operations. We have implemented the following measures after consultation with U.S. Fish & Wildlife: Agency Support Perimeter fencing around pads where condors have landed Burying and re-orienting electrical lines Whirly birds for pumping units Grating over well cellars Educational seminars for employees and contractors Abatement of attractive nuisances

Examples of Condor Mitigation Measures Fencing around pad perimeter Posted signs about micro-trash Metallic whirly birds on top of unit Grate covering well cellar

Condor Mitigation & Support Measures Seneca s Response to LPFW Trashing the Sespe Article: Met with LPFW Director Jeff Kuyper on March 31, 2014 at Sespe Confirmed none of the condor injuries or deaths referenced in article were result of Seneca operations Provided explanation and handouts of Condor Mitigation Measures Based on GPS data from U.S. Fish and Wildlife for 2012 & 2013 only 1 of 13 pads LPFW visited were landing sites for Condors Showed evidence that all items pointed out were remedied Confirmed that Seneca implemented 12 of 14 Recommendations LPFW lists in article. Seneca has not employed a full time biologist (Item 12), but has a condor conservationist and volunteer on Sespe staff and has significant biological consulting resources available to address any new issues that arise

Water Used for Hydraulic Fracturing Seneca uses a combination of produced water from the Sespe oil reservoir and fresher water from two water source wells in the field NO water is used that would otherwise be consumed by humans or utilized for agricultural purposes Sespe Field is not located below a groundwater aquifer used for human or agriculture consumption, and there is NO geologic or hydrologic connection to beneficial uses of water sources Water Disposal The processing of produced water at Sespe is a closed loop system. All produced water is treated at a central treating facility in the field and re-injected into the Sespe oil reservoir via DOGGR regulated disposal wells

Ventura County Groundwater Basins Sespe Oilfield Groundwater Basins N

Hydraulic Fracture Monitoring How can the dimensions of the fracture be measured? How high above the perforations do the fractures travel? How far laterally do the fractures travel?

Hydraulic Fracture Monitoring How far laterally (half length) do the fractures travel? Average half length was 382 and maximum was 548 How can the height of the fracture be measured? Microseismic monitoring can locate the position of the noise in 3D that is caused by the rock breaking from the frac fluid. 19 fracture treatments were observed using microseismic in 2011 and 2012 How high above the perforations do the fractures travel? Average height growth was 144 ft Maximum height growth was 386 ft At Sespe the typical distance from the top perforation to the base of the surface casing is > 2500

Microseismic Side View Images 19 fracture treatments were observed Average maximum distance above the top perforation on each fracture was 144 ft Highest event distance above the top perforation was 386 ft White Star 533-33 Frankel A-502 Thornbury-Geis 53-29 Oak Flat 2-31

Hydraulic Fracturing Disclosure http://www.fracfocus.org

Seneca has voluntarily disclosed the chemicals that were used during frac treatments for the last two years into FracFocus.

FracFocus disclosure report for Seneca s Oak Flat #1-31 well.