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OILFIELD WATER INJECTION: A SUMMARY OF ISSUES Presented by: J. Daniel Arthur, P.E., SPEC ALL Consulting Copyright © 2016 ALL Consulting Presented at: 2017 Ground Water Protection Council UIC Conference, February 21 - 23, 2017 Austin, Texas

OILFIELD WATER INJECTION: A SUMMARY OF … Arthur.pdf•Underground injection has been used a water management practice since operators began enhanced oil recovery in the 1930’s

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Page 1: OILFIELD WATER INJECTION: A SUMMARY OF … Arthur.pdf•Underground injection has been used a water management practice since operators began enhanced oil recovery in the 1930’s

OILFIELD WATER INJECTION: A SUMMARY OF ISSUES

Presented by:

J. Daniel Arthur, P.E., SPEC

ALL Consulting

Copyright © 2016 ALL Consulting

Presented at: 2017 Ground Water Protection Council UIC Conference,

February 21-23, 2017Austin, Texas

Page 2: OILFIELD WATER INJECTION: A SUMMARY OF … Arthur.pdf•Underground injection has been used a water management practice since operators began enhanced oil recovery in the 1930’s

February 2017

OBJECTIVES

•Discuss how the world of water disposal has changed with evolving resource development practices.

•Provide an overview of the issues and challenges facing operators associated with planning, operation, and risk management at SWD facilities.

•Demonstrate how Best Management Practices are used to address these issues.

Copyright © 2016 ALL Consulting 2

Page 3: OILFIELD WATER INJECTION: A SUMMARY OF … Arthur.pdf•Underground injection has been used a water management practice since operators began enhanced oil recovery in the 1930’s

February 2017

TOPICS TO BE COVERED

• Injection History and Changing Injection Dynamics

• UIC Regulation

• Public Opposition

• Siting

• Fires and Spills

• Containment Options

• TENORM and Solids Disposal

• Water Protection

• Mechanical Integrity

• Geology

• Induced Seismicity

Copyright © 2016 ALL Consulting 3

Commercial Salt Water Disposal Well Facility, Eagle

Ford Shale Area, South TexasSource: ALL Consulting, 2012

Page 4: OILFIELD WATER INJECTION: A SUMMARY OF … Arthur.pdf•Underground injection has been used a water management practice since operators began enhanced oil recovery in the 1930’s

February 2017

INJECTION HISTORY

• Underground injection has been used a water management practice since operators began enhanced oil recovery in the 1930’s.

• Injection volumes have been relatively consistent since the 1970s.

• Note: Between 2007 and 2012, U.S. oil and gas production increased by 29% and 22%, respectively from 2007 to 2012, but water production increased by less than 1%.

• Historically, Class II injection wells have been used for EOR or disposal for the vast majority of water produced from oil or gas wells.

• Shale revolution shifting injection from EOR to disposal.

• Although there have been and will continue to be changes and advancements, the major tool for produced and flowback water management remains Class II wells.

Copyright © 2016 ALL Consulting 4

Source: www.water.epa.gov

Page 5: OILFIELD WATER INJECTION: A SUMMARY OF … Arthur.pdf•Underground injection has been used a water management practice since operators began enhanced oil recovery in the 1930’s

February 2017

COMPLEX ISSUES

Copyright © 2016 ALL Consulting 5

OperationsSiting

Regulatory Environment

Lease vs Purchase

Air Quality

Road Network

WellClosure

Economics

Spills

Geology

Seismicity WellConstruction

PublicOpposition

Permitting

PopulatedAreas

FacilityDesign

StateRegulations

FederalRegulations

Primacy

TENORM

MechanicalIntegrity

Page 6: OILFIELD WATER INJECTION: A SUMMARY OF … Arthur.pdf•Underground injection has been used a water management practice since operators began enhanced oil recovery in the 1930’s

February 2017

REGULATION & PRIMACY

Copyright © 2016 ALL Consulting 6

Source: EPA 2017

Class II Wells Across the United States• There are

approximately 180,000 Class II wells in the U.S.

• About 20% or 36,000 of Class II wells are disposal wells.

• 40 states and 2 Indian Tribes have primacy of their Class II program.

Page 7: OILFIELD WATER INJECTION: A SUMMARY OF … Arthur.pdf•Underground injection has been used a water management practice since operators began enhanced oil recovery in the 1930’s

February 2017

COMPLIANCE

Copyright © 2016 ALL Consulting 7

• Compliance information is available throughout Texas and the Eagle Ford:• Most violations are for late/no reporting

(86%)

• MIT failures are next highest (5%)

• Breakout of injected fluid accounts for 3%

• Simple environmental ESAs are inadequate for evaluating SWDs• Assessing Corrosion

• Well integrity/confinement

• Area of review/USDWs

• Communication/Containment

SWD Violations (2011)

Reporting

MIT Failure

Breakout of Inj Fluid

Packer Depth

Injection Pressure

Confinement

Annular Pressure

UnauthorizedCommercial Facility

Page 8: OILFIELD WATER INJECTION: A SUMMARY OF … Arthur.pdf•Underground injection has been used a water management practice since operators began enhanced oil recovery in the 1930’s

February 2017

PUBLIC OPPOSITION

Increasing disposal volumes leads to increasing injection opposition.

Copyright © 2016 ALL Consulting 8

Source: www.gosangelo.com

Source: www.bradfordtoday.com

Source: www.ecowatch.com

Page 9: OILFIELD WATER INJECTION: A SUMMARY OF … Arthur.pdf•Underground injection has been used a water management practice since operators began enhanced oil recovery in the 1930’s

February 2017

SITING CONSIDERATIONS

• Proximity to water production (oil and gas production) areas

• Industrial area with fewer neighbors

• Geology

• Adequate disposal capacity

• Avoid faulting

• Large area for turn-around

• Road Network

• Easy highway access

• Wide straight roads

• Avoid sensitive receptors

• Floodplain

• Waterbodies

Copyright © 2016 ALL Consulting 9

Source: ODNR, 2013

Page 10: OILFIELD WATER INJECTION: A SUMMARY OF … Arthur.pdf•Underground injection has been used a water management practice since operators began enhanced oil recovery in the 1930’s

February 2017

NOT AN IDEAL LOCATION

Copyright © 2016 ALL Consulting 10

Source: Google Earth, 2015

Injection Well

Page 11: OILFIELD WATER INJECTION: A SUMMARY OF … Arthur.pdf•Underground injection has been used a water management practice since operators began enhanced oil recovery in the 1930’s

February 2017

FIRES AND SPILLS

• Lightning-Induced Fires

• The Bakken in North Dakota and Eagle Ford in south Texas have seen lightning strikes ignite hydrocarbons at brine disposal facilities

• May result in injury and costly litigation

• Brine and Water Spills

• Tank Maintenance

• Adequate secondary containment

• Well designed unloading facilities

Copyright © 2016 ALL Consulting 11

Lightning-induced fire near Alexander, N.D. in 2014

Source: McKenzie County/Karolin Rockvoy, 2014

Page 12: OILFIELD WATER INJECTION: A SUMMARY OF … Arthur.pdf•Underground injection has been used a water management practice since operators began enhanced oil recovery in the 1930’s

February 2017

CONTAINMENT OPTIONS

Copyright © 2016 ALL Consulting 12

Source: ALL, 2015

•Three common berm options:• Steel dike

• Concrete dike

• Earthen dike with min. 30 mil liner

•Must be capable of containing fluids in event of release.

•Concrete unloading pad with drain and sump to collect any spillage is required.

Source: DOGRM, 2012

Source: ALL, 2015

Page 13: OILFIELD WATER INJECTION: A SUMMARY OF … Arthur.pdf•Underground injection has been used a water management practice since operators began enhanced oil recovery in the 1930’s

February 2017

TENORM AND SOLIDS DISPOSAL

• NORM is naturally-occurring radioactive material which commonly contains uranium, thorium, radium, or lead-210.

• TENORM (technologically enhanced concentrated by man-made actions (aka, technologically enhanced) in tank bottoms, pipe scale, and filter media.

• Radium-226 and Radium-228 are the predominant TENORM issues with oil and gas.

• TENORM generally regulated by state health departments.

• Requirements for testing or manifesting of TENORM solid wastes.• At Ohio Class II SWD facilities, solids are required

to be tested for TENORM.

• Solids may potentially be manifested for out of state shipment without testing.

Copyright © 2016 ALL Consulting 13

Source: Carpenter, 2016

Page 14: OILFIELD WATER INJECTION: A SUMMARY OF … Arthur.pdf•Underground injection has been used a water management practice since operators began enhanced oil recovery in the 1930’s

February 2017

AREA OF REVIEW (AOR)

• AOR investigation

• Determine AOR using fixed radius (¼ to ½ mile) or zone of endangering influence equation

• Identify potential conduits and ensure proposed measures are adequate to protect USDWs

• Conduct an evaluation of all wells within the AOR

• Corrective Action

• Monitoring of problem wells

• Remedial cementing

• Plugging or re-open and re-plugging of inadequately plugged wells

Copyright © 2016 ALL Consulting 14

Source: DMRM, 2006

Page 15: OILFIELD WATER INJECTION: A SUMMARY OF … Arthur.pdf•Underground injection has been used a water management practice since operators began enhanced oil recovery in the 1930’s

February 2017

WATER PROTECTION

• The surface casing is set to protect all USDWs.

• Depending upon the depth of the injection well, intermediate casing(s) may be set.

• The production casing is set and cemented above the top of the injection zone.

• State regulations on production casing cement height in different states can vary from 100 to 300 feet.

• This construction provides multiple layers of USDW protection.

Copyright © 2016 ALL Consulting 15

Source: DOGRM, 2013

Page 16: OILFIELD WATER INJECTION: A SUMMARY OF … Arthur.pdf•Underground injection has been used a water management practice since operators began enhanced oil recovery in the 1930’s

February 2017

MECHANICAL INTEGRITY

• A well has Mechanical Integrity if:

• Internal Integrity

There is no significant leak in the casing, tubing, or packer; and

• External Integrity

There is no significant fluid movement into an underground source of drinking water (USDW)

through vertical channels adjacent to the injection wellbore.

• The Mechanical Integrity Failure occurs when:

• A gauge pressure loss of 5% or greater occurs during an MIPT (or a pressure loss greater than 5 psi

in Class I wells);

• The annulus of the well cannot be completely filled with water;

• The annulus of the well cannot maintain pressure;

• While injecting, water flows from the casing valve when it is open, thus indicating a communication

problem in the well;

• There is a vacuum on the annulus when the casing valve is opened;

• An inspector arrives at the well for a scheduled test, but the operator is absent or unprepared for the

test.

Copyright © 2016 ALL Consulting 16

Page 17: OILFIELD WATER INJECTION: A SUMMARY OF … Arthur.pdf•Underground injection has been used a water management practice since operators began enhanced oil recovery in the 1930’s

February 2017

WELL TESTING REQUIREMENTS

• Both federal and state regulatory agencies have specific disposal well testing requirements.

• Part I and Part II of (internal and external) mechanical integrity tests (MIT) have to be demonstrated prior to injection.

• Five-year MIT or continuous monitoring for mechanical integrity is a regulatory requirement.

• Other tests that are deemed necessary by regulatory agencies, such as temperature logs, tracer surveys, noise logs, or pressure fall-off tests can be required on a case-by-case basis.

Copyright © 2016 ALL Consulting 17

Page 18: OILFIELD WATER INJECTION: A SUMMARY OF … Arthur.pdf•Underground injection has been used a water management practice since operators began enhanced oil recovery in the 1930’s

February 2017

FAVORABLE GEOLOGIC CONDITIONS

• Proper geological evaluation is critical to a successful large-scale disposal operation.

• Knowledge of local geologic conditions and regional variation is highly important in selecting optimal disposal intervals.• For example, PA only has 8 active disposal wells

due to a lack of adequate disposal zones through a majority of the state.

• As opposed to relatively shallow EOR operations, higher volumes of water are now being injected at greater depths and in many cases near basement rock (Arbuckle in the Woodford and Ellenberger in Permian and Barnett plays).

• With induced seismicity playing a big role in Class II operations, avoidance of geologic structures and the proximity of a disposal zone to the Precambrian basement must be considered.

Copyright © 2016 ALL Consulting 18

Source: ALL Consulting, 2014

Page 19: OILFIELD WATER INJECTION: A SUMMARY OF … Arthur.pdf•Underground injection has been used a water management practice since operators began enhanced oil recovery in the 1930’s

February 2017

INDUCED SEISMICITY (IS)

• Induced seismicity associated with the oil and gas industry has become a national issue in the United States.

• Many states, including Arkansas, Kansas, Ohio, Oklahoma, and Texas, have developed or are developing regulations to address concerns regarding alleged induced seismicity related to oil and gas development.

• The main focus has been directed at Class II saltwater disposal operations (SWD).

Copyright © 2016 ALL Consulting 19

Source: StatesFirst, 2015

Page 20: OILFIELD WATER INJECTION: A SUMMARY OF … Arthur.pdf•Underground injection has been used a water management practice since operators began enhanced oil recovery in the 1930’s

February 2017

SEISMIC MONITORING

• Single or multi- sensor monitoring system.

• Real-time epicenter and hypocenter location.

• Data processing to determine likely cause of seismic event (e.g. mine blast, injection, etc.)

• Automatic notification emails pre-determined contacts upon exceedance of event thresholds.

Copyright © 2016 ALL Consulting 20

SWD Well

Seismometer

Accelerometer

Legend

Note: the quantity and locations of seismometers and accelerometer will be determined based on site-specific conditions and considerations.

Source: ALL Consulting, 2016

Page 21: OILFIELD WATER INJECTION: A SUMMARY OF … Arthur.pdf•Underground injection has been used a water management practice since operators began enhanced oil recovery in the 1930’s

February 2017

IS MITIGATION

• Accepted mitigation uses modified traffic light systems:

• Green Zone: Operations continue as planned

• Yellow Zone: Increase monitoring as appropriate, reduce injection volume and/or pressure, and notify regulatory agency.

• Red Zone: Further limit or cease injection and notify regulatory agency.

• A plan must be in place to resume standard injection when certain parameters are met.

Copyright © 2016 ALL Consulting 21

Page 22: OILFIELD WATER INJECTION: A SUMMARY OF … Arthur.pdf•Underground injection has been used a water management practice since operators began enhanced oil recovery in the 1930’s

February 2017

SUMMARY

•Water disposal volumes have remained relatively constant, but the methods used to manage the water have evolved.

•Well planned and properly constructed Class II disposal wells will continue to be the best practice for managing flowback and produced water in the shale plays.

• SWD facilities face may issues, most of which are manageable with proper planning, training, and experience.

• Induced seismicity is currently the hot topic for Class II SWD wells, but can be managed with proper planning, monitoring, and mitigation.

Copyright © 2016 ALL Consulting 22

Page 23: OILFIELD WATER INJECTION: A SUMMARY OF … Arthur.pdf•Underground injection has been used a water management practice since operators began enhanced oil recovery in the 1930’s

February 2017

CONTACT INFORMATION

Copyright © 2016 ALL Consulting

Contact Information

J. Daniel Arthur, P.E., SPEC

Project Manager

[email protected]

ALL Consulting

1718 S. Cheyenne Ave.

Tulsa, OK 74119

www.all-llc.com

Citation Information: J. Daniel Arthur, P.E., SPEC. “Oilfield Water Injection: A Summary of

Issues”. Presented at the 2017 Ground Water Protection Council UIC Conference. Austin, TX.

February 21-23, 2017.

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