The need for communication of accurate information to the public, lawmakers, and regulators is imperative on various drilling-related topics, including hydraulic fracturing, water use and supply, and surface use. This is especially the case given active development of massive US natural gas shale plays in regions of the country less accustomed to oil and gas development.
Hydraulic fracturing, traditionally a state-regulated practice, has been targeted for intensifying scrutiny by several federal legislators and possibly by the US Environmental Protection Agency (EPA). In June, representatives in Congress introduced legislation that would give the EPA authority to regulate hydraulic fracturing under the Safe Drinking Water Act. This would reverse the explicit exemption for fracturing contained in the Energy Policy Act of 2005 and introduce a new requirement that the ingredients used in proprietary fracing fluids be disclosed and made available to the public (OGJ, June 15, 2009, p. 30).
Furthermore, EPA Administrator Lisa Jackson has testified that the increased use of hydraulic fracturing is “well worth looking into,” suggesting that EPA may reexamine its established position that federal regulation of fracing is not warranted.
If past is prologue, however, the historic innovation and entrepreneurial spirit of America’s gas industry bodes well for what lies ahead. This special report outlines examples of Chesapeake Energy Corp.’s attention to environmental issues in its Barnett shale operations.
Fracing gets attention
Hydraulic fracturing increasingly is being used in the development of shale gas plays. A quick internet search reveals the attention that fracturing is receiving as well as a number of misguided allegations about the associated environmental impacts of fracturing.
Before the introduction of any chemicals used in the drilling process, engineers, geologists, and geophysicists (and other specialists) collaborate to develop a fracturing program tailored to the specific characteristics of the formation and the well. A well-designed and installed casing program, combined with proper cementing, provides the first layer of protection and groundwater isolation from an oil- or gas-bearing formation.
States traditionally rely on casing and cement regulations as a primary means of protecting subsurface water. The typical state-mandated program requires steel casing that meets a specific standard (usually American Petroleum Institute Spec. 5CT), as well as the use of specific cement and cementing techniques.
By requiring compliance with API recommendations, each casing string effectively is ensured to meet or surpass a multitude of strength, pressure, and corrosion tests. Engineers design meticulous protective casing programs to prevent pressure collapse, burst pressure, corrosion, and joint failure—all while maintaining isolation from groundwater formations.
The fracing programs put in place by knowledgeable operators are overwhelmingly effective and frequently exceed minimum requirements of state-casing regulations. Doing so ensures isolation of the wellbore from nearby subsurface waters as well as protection of the producing zone.
Subsurface protections are not the only challenges presented and met by today’s fracing process. Hydraulic fracturing also requires the temporary installation and use of water storage equipment, chemical storage, mixers, pressurizing, and other equipment at the well site. By giving care attention to the transportation, storage, and use of the various components associated with fracing, operators, contractors, and service providers protect the surface and surface water in addition to groundwater resources.
Many of the misunderstandings about hydraulic fracturing fluid focus on the “chemicals” used during the process. In deep shale plays, fracing fluid typically is made up of 99% water and sand; the rest consists of additives required to facilitate the process. The quantity of additives used is diluted and typically remains far below any level that may pose a danger to health.
Numerous protections are inherent with deep well fracturing. Deep formations (such as shale plays) are isolated from groundwater by geologic barriers and by precautionary engineering systems. With study and input from geologists, engineers, and others, fracturing activities are contained safely within the formation.
While much of this is “old hat” in many parts of the country, the development of newer plays like the Marcellus shale will cause review of the legal and regulatory frameworks governing fracturing. Alarmingly, several states have examined these rules, or are beginning to do so, with little or no input from experts within the industry.
Industry’s future ability to use hydraulic fracturing technology could hinge upon interaction with legislators and regulators to educate them on the differences between shallow and deep natural gas operations. This includes discussion about adopting additional protective measures where fracturing activity occurs in close proximity to drinking water sources.
Constructive dialogue will require input from legislators, regulators, industry, environmental organizations, and community stakeholders to evaluate the existing, extensive state regulatory frameworks and to ensure that any new federal laws and regulations provide needed additional environmental protection, not just an added layer of permitting, paperwork, and unproductive use of public agency resources.
Protecting water
Water resources are protected from surface operations by a host of federal, state, and local regulatory programs. Notably, some operators exceed these regulatory requirements. An example is the installation of secondary containment (steel, plastic, earthen material, or some combination) at drilling and production sites around virtually all equipment containing liquids, not just oil. Many operators store produced fluids in steel tanks rather than earthen pits as a means of staging for recycling or for proper waste disposal. This practice eliminates spillage and overflow of pits in case of excessive rainfall and unforeseen soil saturation if protective liners fail.
Separately, the industry created the Reasonable and Prudent Practices for Stabilization (RAPPS) document to provide guidance and information on suggested methods to protect fresh water resources. EPA considers RAPPS as acceptable best practices for water resource protection. Among the practices suggested in RAPPS is to design drilling locations to prevent storm water runoff. A drilling location commonly uses a combination of mitigation measures to prevent runoff and reduce sediment erosion. Proper site construction and RAPPS implementation alone are only partial solutions. Maintenance and upkeep are required throughout the operation to reduce sediment erosion.
While RAPPS provides sound guidance, industry currently is working to update and refine the document to provide greater clarity and stronger environmentally protective practices.
Chesapeake, the largest leasehold owner in the Marcellus shale, is drilling in West Virginia. Chesapeake currently produces 30 MMcfd equivalent net (45 MMcfd gross operated) from the play and anticipates reaching 100 MMcfd equivalent net (220 MMcfd gross operated) by yearend. Photo from Chesapeake.
In addition to protecting water resources, many operators work proactively with state regulators on collecting predrilling water samples from public and private wells. These samples are analyzed by the state and independent laboratories to provide a better understanding of local water quality before drilling. This effort insulates companies from frivolous litigation by establishing baseline conditions and, perhaps more importantly, educates the public about groundwater quality. It is incumbent upon the industry to champion the development and implementation of sampling and analytical standards.
Industry efforts such as additional secondary containment and proper sediment runoff control demonstrate a proactive approach to environmental protection. By further educating the general public on industry’s efforts, false allegations can be defused, and the industry can continue to serve as a leader in developing sound, environmentally responsible practices.
Water use issues
Water use is another issue receiving increasing attention. Oil and gas wells cannot be drilled or completed without using water. A typical deep shale gas well requires a total of 3 million gal of water for the drilling and hydraulic fracturing processes.
To put that in context, 3 million gal of water is the amount used by:
- A city with a population of more than 8 million people in 4 min.
- A 1,000-Mw coal-fired electric power plant in 71⁄2 hr.
- A typical golf course in 1 week.
- Irrigating a 5-acre corn field for one season.
Unlike drilling and hydraulic fracturing, these examples are ongoing, constant uses.
The amount of water used to produce 1 million MMbtu of natural gas is about 10% of the amount required to produce 1 MMbtu of coal and one-tenth of 1% of the water it takes to produce that amount of energy from ethanol.
Water use for oil and gas drilling and completion is temporary. Drilling and hydraulic fracturing generally are completed within weeks. A gas well provides clean-burning energy for years without requiring additional water.
Availability of water resource is inseparable from the issue of water use. Currently, water resources are protected through a set of stringent federal, state, and local permitting processes that assure water quality and availability. Permits and contracts must be obtained before an operator takes water.
For now, industry obtains water from a variety of sources, typically rivers, creeks, lakes, wastewater treatment discharge facilities and groundwater. In addition to these protected sources, many companies heavily invest in research and development to develop best management practices and new technologies for water recycling, water reconditioning, and high-flow diversion ponds.
In areas such as Pennsylvania and Arkansas, high-flow diversion ponds are being constructed (often by the state) for water collection during high-flow events. The ponds are constructed in accordance with regulations to maintain environmental sensitivity. The diversionary mechanism operates only when the river or creek is in “high-flow,” thereby minimizing impact on aquatic resources. By diverting water flow to these ponds, the potential for flood damage is reduced. Diversion ponds also provide an alternate water source for drilling and completion.
As is the case with virtually every facet of exploration and production, continued research, development, and education will serve the industry well going forward.
Reduced surface disturbances
Oil and gas reserves are not confined to neat geographic boundaries mapped on the earth’s surface. Reserves often are found in environmentally-sensitive areas, underlying major metropolitan cities, in undeveloped or rural areas, and beneath the ocean floor. Drilling rigs are compelled to go where the science and geology direct, although industry seeks to avoid wetlands and riparian areas, sensitive species and habitat, and densely populated areas. Considerable efforts are made to avoid sensitive areas.
In practice, this means increasing efficiency while also reducing the geographic footprint. For example, improvements in seismic technology and its increased use have enabled Chesapeake Energy to drill with a success rate of over 95% (and even the industry average as a whole is over 90%). Successful drilling rates help companies avoid drilling dry holes and the accompanying surface disturbance.
In addition, the increased use of horizontal drilling allows for more source rock exposure while requiring fewer surface locations. Industry also has reduced its surface footprint by drilling and completing multiple wells from a single pad. While the pad is larger than a traditional pad, it drastically reduces the amount of disturbed surface acreage necessary to produce the same volume of gas. By drilling multiple big stepout wells, field development is maximized, which allows more gas to flow from fewer wells.
The surface area used by these larger pads can be reduced when the right geology, surface area, equipment, and a host of other factors come together. Reducing pad size requires specially designed top-drive rigs with high-capacity pumps, a high derrick load rating, complete solids control equipment, and skid packages—all features of a smaller yet more powerful rig. These built-for-purpose rigs can be combined with a closed loop system and dewatering unit, eliminating the need for reserve pits and reducing water use requirements.
Prudent and responsible operations require that surface locations be selected based on environmental and social stewardship considerations, not just upon economic return on investment. This is particularly important in metropolitan settings and environmentally sensitive areas.
In both instances, industry can tap into valuable natural resources while preserving the character of the surrounding area. This is done using specialty rigs, equipment, and platforms that reduce noise, power use, and emissions. For example, drilling rigs can be fitted (when appropriate) with sound-deadening barriers to reduce the amount of noise, a tactic that has allowed industry to successfully operate in urban settings.
Personnel, public relations
While policies and regulations are designed to minimize the environmental impact of gas drilling, history demonstrates that it is industry’s people who make the greatest difference.
As with all industries, it is incumbent upon the “old guard,” including management, to demand environmental prudence in operations. This requires unflinching dedication to hiring good people, and more importantly, educating and training them on how to “do things the right way.”
The gas industry is made up of thousands of companies and individuals with specialized functions spanning the exploration and production value chain. As a result, it often is not well understood to those outside its ranks. Clear and accurate communication with regulators, legislators, and the public is essential to addressing misconceptions about environmental impacts and formulating sensible policies that balance environmental protection and America’s goal of greater energy independence.
Energy companies and energy-related service and supply vendors are being called upon to know the business and its practices, comply with governing rules and regulations, participate meaningfully in trade groups, and engage policymakers and the public. As an illustration of success, industry’s outreach efforts led to the development of the Department of Energy’s recently published Shale Gas Primer. These outreach efforts must continue.
Industry faces constant pressure to innovate, comply, and educate—while, of course, demonstrating value to shareholders. Additional pressures stem from coordinated efforts by well-funded and organized non-governmental organizations that have set their sights and public relations machines on the industry. Their efforts are producing results. The challenge is to navigate the laws and regulations while developing better practices and technologies that provide solutions for oil and gas production in an environmentally sound manner.
The authors
