Reducing Onshore Natural Gas and Oil Exploration and Production Impacts Using a Broad-Based

Stakeholder Approach David B. Cornue, PG, CHMM*,

J. Daniel Arthur, PE*, and Mark Carl***ALL Consulting, ** IOGCC

DOE LINGO Projects

Three studies:• Univ. Arkansas/Argonne Lab – Fayetteville

Shale play lease layouts• Michigan Tech – Antrim Shale play horizontal

completions and CO2 venting• IOGCC/ALL Consulting – Adverse Impact

Reduction Handbook

An initiative to demonstrate a new operating paradigm addressing environmental issues for oil and gas operations in sensitive areas.

Research Details

• Primary research funding for the project has been provided by the U.S. Department of Energy’s National Energy Technology Laboratory (NETL) in Tulsa, Oklahoma

• Cooperators and Contributors– Federal Agencies– State Agencies– Industry– Non-industry interest groups/individuals

Research Contributors• Lead Researchers

– Interstate Oil & Gas Compact Commission– ALL Consulting

• PAC States– California Division of Oil, Gas & Geothermal Resources– Montana Board of Oil & Gas Conservation– Nebraska Oil and Gas Division– North Dakota Oil and Gas Division

• Industry– Devon Energy Corp. and others yet to be identified.

• Non-Governmental Organizations– Yet to be identified

Research Objectives

• Identifying E&P environmental impact issues of concern to landowners and interest groups

• Identifying technically and economically sound solutions and practices that will avoid or reduce these impacts

• Summarizing the findings in a handbook format for use by E&P firms, consultants, regulators, and the public

The primary goal of the project is to provide a catalog of reasonable and prudent practices geared towards preventing or minimizing E&P impacts in order to support increased access to environmentally sensitive areas. This will be achieved by:

Handbook - Objectives

• Compilation of impact prevention and mitigation alternatives – a reasonable and prudent practices catalog

• Evaluation of the feasibility of low impact E&P project planning

• To increase E&P access to environmentally sensitive areas

Project Overview

• Task 1 – E&P Practices Research• Task 2 – Interviews, Field Reconnaissance and

Case Studies• Task 3 – Impact Analysis• Task 4 – Handbook preparation• Task 5 – Technology Transfer

Task 1: Practices Research

• Identify low impact practices and technologies with guidance from PAC members

• Research these practices from the viewpoints of all stakeholders

• Prepare Interim Report for review by PAC members

Task 1: Compile Information

• Common practices• Impact prevention/low impact technologies • Impact mitigation strategies• Legislation• Regulations• Guidance

Task 1: Data Sources

• Project Advisory Council members• Industry Groups• Governmental Organizations• Non-governmental Organizations• Researchers – past and ongoing studies• Ranchers, farmers, landowners

Task 2: Interviews & Recon.

• Interview industry representatives, plus a target group of ~100 non-industry individuals and groups

• Field reconnaissance to observe specific issue/solution scenarios

• Prepare Interim Report of case studies at the specific issue/solution level for review by PAC members

Task 2: Interviews

• Industry organizations and companies• Federal, State, and Local agencies• Ranchers, farmers, and landowners

– Using peer group interviewers• Concerned individuals• Non-governmental organizations

Task 2: Field Reconnaissance

• Look at full life cycle of project activities in order to identify low impact practices, at the specific issue/solution level, from initial geophysical surveying through post-development reclamation.

• Focus on impact prevention as well as impact mitigation.

Task 2: Case Studies

• Avoid impacts• Minimize impacts that can not be avoided• Mitigate those unavoidable impacts

Summarize individual case studies demonstrating technically reasonable and prudent practices, at the specific issue/solution level, that:

Task 3: Impact Analysis

• Evaluate and analyze practices and technologies capable of achieving the low impact goal at the national and regional scales

• Prepare Interim Report of case studies for review by PAC members

Task 3: Impact Analysis

• Technical feasibility• Economic practicability• Operational practicability

Consider the pros and cons of approaches based on:

Task 4: The Handbook

• A draft will be prepared for comment and then the final version will be published.

• The Final document will be:– Distributed to cooperating parties– Available for download

Adverse Impact Reduction Handbook

A critical phase of the project is the assembly and presentation of information gathered.

Task 4: Draft Handbook

• Interim Reports• Comments on the Interim Reports received from

PAC members• New information that may become available

A draft of the Adverse Impact Reduction Handbook will be prepared from:

Task 4: Final Handbook

• The Draft Handbook will be reviewed by PAC members and select federal and state agencies

• Comments on the assembled document will be provided by reviewers

• A Final Handbook will be prepared after assimilation of the comments received

Task 4: Handbook Distribution

The Final document will be:• Distributed to cooperating parties• Available for download

Task 5: Technology Transfer

• Web availability of the Handbook• Presentations at professional venues

Dissemination of the information gathered is also key to the success of the project. This will be accomplished in two manners:

Task 5: Presentations

• IOGCC• AAPG• SPE• GWPC• AGU• And/or other appropriate venues

We hope to be able to make presentations to groups such as:

Project Timeline

TASK Year 1E&P Practices ResearchInterviews & Field ReconnaissanceImpact AnalysisHandbook Preparation DraftPAC Review XHandbook Preparation FinalTechnology Transfer ? ?

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(N

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G

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E (

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AA

PG

(S

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SP

E (

Den

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C (

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IOG

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Year 2

Issues to Consider

• Pre-drilling exploration activities• Access and pipeline/utility corridors• Pits • Produced water• Air emissions • Dust• Noise• Traffic• Post-production reclamation• Visual resources• Cultural and historical resources

We anticipate the project will examine a variety of potential issues which may include:

Solutions to Consider

– Stockpiling of topsoil at well pads and corridors for rehab – Shielding equipment with vegetation for sight and sound– Micro turbines to reduce air emissions and generate power– Directional drilling to minimize the number of well pads– Closed-loop mud systems to avoid use of mud pits,

minimize well pad size and minimize waste volumes– Aquifer storage and recovery for produced water

management– Emergency plans in flood prone areas for protection of

pipelines and tanks

We anticipate the project will examine a variety of potential prevention and mitigation solution which may include:

Task 1: Practices ResearchExpected to include documents such as:• Reasonable and Prudent Practices for Stabilization (RAPPS) of Oil and

Gas Construction Sites – IPAA• Oil and Gas at Your Door? A Landowners Guide to Oil and Gas

Development – OGAP• Pit Pollution – OGAP• Doing it Right, a Blueprint for Responsible Coal Bed Methane

Development in Montana – NPRC• The Western Heritage Alternative – BCA• MT HB790 committee findings and associated testimony• Montana Statewide Oil and Gas Environmental Impact Statement –

BLM• A Guide to Practical Management of Produced Water from Onshore Oil

and Gas Operations in the United States – DOE• Federal and State regulations• Other documents identified by the PAC and through the course of

research

Task 2: Interviews

May include representatives of:• Devon Energy Corp. and other E&P firms• State O&G Agencies• Federal land and resource management agencies

– BLM– USFS

• Non-governmental organizations:– Oil and Gas Accountability Project– Northern Plains Resource Council– Vermejo Park Ranch

• Individual ranchers/farmers/landowners• Other entities/individuals identified by the PAC

Task 2: Field Reconnaissance

• Fort Worth Basin – Barnett Shale Play – E&P in a highly urbanized area

• Powder River Basin – CBNG – area has been subject to much scrutiny as well as implementation of low-impact solutions

• Vermejo Park Ranch, NM – CBNG – considered by some to be a model of low impact E&P

• Other locations identified by the PAC

Will be conducted on an issues/solutions basis at locations to be identified during the research phase, but may include locales such as:

Task 2: Case StudiesMay include issues/solutions such as:• Fort Worth Basin, TX

– Rig lighting– E&P near a major airport

• Powder River Basin, MT & WY– Roads, increased access, traffic, dust– Compressor noise and air emissions

• Vermejo Park Ranch, NM– Excluding drilling from specific areas, limiting wells per section,

limiting well pad and corridor size, “camouflage” of equipment, noise restrictions, produced water reinjection, rapid reclamation

• Other issues identified by the PAC

PAC Member Responsibilities

– Documents of potential interest– Issues for consideration– Prevention/mitigation strategies for

consideration– Entities/individuals to interview– Field reconnaissance projects of interest– Case studies to document– Timely review and comment on Interim

Reports and Draft Handbook

Participation/input from contributors and cooperators are integral to both the research and the final products. Input is requested in the identification of:

Contact Information

ALL Project ManagerALL Project Manager

Dave Cornue, PG

ALL Consulting

1718 S. Cheyenne Ave.

Tulsa, OK 74119

918-382-7581dcornue@all-llc.com

www.all-llc.com

IOGCC Project ManagerIOGCC Project Manager

Mark Carl

IOGCC

900 N.E. 23rd Street

Oklahoma City, OK 73152

405-525-3556mark.carl@iogcc.state.ok.us

www.iogcc.state.ok.us