Post on 28-Nov-2014
description
Mark Broomfield, AEA Technology, UK
Environmental risks, opportunities and regulatory challenges in the US and Europe: European perspective
Overview of presentation
Setting the scene
Environmental and health risks of unconventional gas extraction• Literature review; stakeholder consultation• Preliminary risk assessment
Review of control options• Environmental risk management• Carbon footprint: fugitive methane control
European regulatory landscape• Existing acquis• Gap analysis• Options assessment
Next steps• European Commission research• Supply chain analysis
Setting the scene
Stage 1: Site identification & preparation
Stage 2: Well design, drilling, casing & cementing
Stage 3: Technical hydraulic fracturing
Stage 4: Well completion, management of wastewater
Stage 5: Well production (refracturing may be carried out)
Stage 6: Well abandon- ment
Setting the scene
Energy resources• 25% of Europe’s energy needs supplied by natural gas in 2008• Substantial shale gas resources
High volume hydraulic fracturing• New activity in Europe• Defined as >1,000 m3 fluid per stage
HVHF in Europe• Introduced in Europe in the early 1980s. • Multi-stage hydraulic fracturing in tight gas reservoirs in horizontal wells in
the Soehlingen field in Germany, and in the South Arne field in Denmark• Hydraulic fracturing has been carried out elsewhere in Germany, the
Netherlands and the United Kingdom • These fracturing operations did not use sufficient fluid to be classified as
HVHF.
• Exploratory drilling for shale gas with hydraulic fracturing in Germany, Poland and the UK commenced in 2010.
Setting the scene
European Commission Context• February 2011: European Council concluded that Europe should assess its
potential for sustainable extraction and use of conventional and unconventional fossil fuels.
• 2011 report commissioned by the European Parliament drew attention to the potential health and environmental risks associated with shale gas.
• Half of EU Member States are interested in developing shale gas resources• However, several MS have prohibited, or are considering prohibiting, the use of
hydraulic fracturing. • Several EU Member States are considering the appropriateness of national
legislation, and may introduce national requirements for hydraulic fracturing.• Commission saw a growing need for a coherent approach to unconventional
fossil fuels and in particular shale gas developments in an area where economics, finances, environment and in particular public trust are essential.
• The Commission is investigating the impact of unconventional gas, primarily shale gas, on EU energy markets
• DG ENV commissioned an initial assessment of the environmental and health risks and impacts associated with the use of hydraulic fracturing.
• Concurrent research into carbon footprint commissioned by DG CLIMA
Environmental and health risks
Literature review• Focus on peer-reviewed research where available• Fast-moving area of engineering and science• Over 200 documents referenced, but many
common data sources• Some key documents:
• Draft New York State DEC SGEIS (2011)• Lechtenböhmer et al for European Parliament (2011)• Broderick et al (Tyndall Centre) (2011)• US EPA Drinking water study plan (2011)• Academic studies of specific issues (e.g. Davies et
al. 2012; Considine et al. 2012)• API guidelines HF1, HF2, HF3• Papers published by Society of Petroleum Engineers• IEA Golden Rules; Empfehlungen des Neutralen
Expertenkreis
Environmental and health risks
Stakeholder consultation• Engaged with a range of specialists from Europe and North
America• Regulators• Geological surveys• Academic specialists
• Useful feedback in specific areas• Peer review of final report
Environmental and health risks
Environmental aspect
Project phase
Site identification
and preparation
Well design drilling, casing,
cementing
Fracturing Well completion Production
Well abandonment
and post-abandonment
Overall rating across all
phases
Individual site
Groundwater contamination Not applicable Low Moderate-
High High Moderate-High Not classifiable High
Surface water contamination Low Moderate Moderate-
High High Low Not applicable High
Water resources Not applicable Not
applicable Moderate Not applicable Moderate Not applicable Moderate
Release to air Low Moderate Moderate Moderate Moderate Low Moderate
Land take Moderate Not applicable
Not applicable
Not applicable Moderate Not classifiable Moderate
Risk to biodiversity Not classifiable Low Low Low Moderate Not classifiable Moderate
Noise impacts Low Moderate Moderate Not classifiable Low Not applicable Moderate –
High
Visual impact Low Low Low Not applicable Low Low-moderate Low - Moderate
Seismicity Not applicable Not applicable Low Low Not applicable Not applicable Low
Traffic Low Low Moderate Low Low Not applicable Moderate
Environmental and health risks
Environmental aspect
Project phase
Site identification
and preparation
Well design drilling, casing,
cementing
Fracturing Well completion Production
Well abandonment
and post-abandonment
Overall rating across all
phases
Cumulative
Groundwater contamination Not applicable Low Moderate-
High High High Not classifiable High
Surface water contamination Moderate Moderate Moderate-
High High Moderate Not applicable High
Water resources Not applicable Not
applicable High Not applicable High Not
applicable High
Release to air Low High High High High Low High
Land take Very high Not applicable
Not applicable
Not applicable High Not classifiable High
Risk to biodiversity Not classifiable Low Moderate Moderate High Not classifiable High
Noise impacts Low High Moderate Not classifiable Low Not
applicable High
Visual impact Moderate Moderate Moderate Not applicable Low Low-moderate Moderate
Seismicity Not applicable Not applicable Low Low Not applicable Not
applicable Low
Traffic High High High Moderate Low Not applicable High
Environmental and health risks
Preliminary environmental and health risk assessment• Structured risk assessment• Defined quantitative/qualitative criteria• Limited by available data• Focused attention on key risks
• Cumulative impacts, requiring consideration at initial stages of exploration
• Very high: Land take• High: Groundwater contamination, accidents/spillages, water
resources, air pollution, noise, traffic
• Enables priority areas for future research to be identified• High/very high impact areas• Biodiversity impacts• Long-term post-abandonment phase
Control options
Reviewed regulatory and technical control measures• Appropriate siting of developments, to reduce above and below-
ground risks• Measures and approaches to reduce land disturbance and land-
take • Measures to address releases to air and to reduce noise during
drilling, fracturing and completion• Measures to address water resource depletion • Measures to reduce the negative effects caused by traffic• Measures to improve well integrity and to reduce the risk of
ground and surface water contamination• Measures to reduce the pressure on biodiversity
Control options
Aspect Description of measure
DatabaseCreation of a national database of public sources of informationDevelop database of baseline water quality and quantity, and geologic information across a shale gas formation, prior to the commencement of HVHF
Peer review Funding to enable peer review of regulatory activity
Zoning (general)
Identifying zones which are off-limits to hydraulic fracturing if required for environmental protectionPrevent HVHF in reforestation areas, wildlife management areas and high quality aquifersPrevent HVHF in areas specified for protection of groundwater
Buffer zones
Minimum distance to private water well: 150 mMinimum distance to public water well or reservoir: 300 mMinimum distance from well to surface watercourse: 90 mMinimum distance from disturbance to surface watercourse: 90 mMinimum distance to watersheds used for drinking water supply: 1,200 mMinimum distance to residential areas: 1,600 m (where possible)Distance within which detailed investigation of noise mitigation is needed: 305 mRequire site-specific separation from abandoned wells and other potential pathways for fluid migrationRequire additional containment to prevent surface water impacts for sites within 800 m of surface water supply locations
NotificationNotification to local communities when drilling is plannedNotification to water suppliers in the event of spills or leaks
Mitigation credit system
Voluntary ecological initiatives within critical habitats that would generate mitigation credits which can be used to offset future development
Environmental management systems
Encourage or require accreditation for shale gas installation operators to secure ongoing environmental improvements
Control options
Aspect Description of measureDatabase Creation of a national database of public sources of informationSurface and water quality monitoring
Surveys of water quality and levels to be carried out before, during and after HVHF operations
Air quality monitoring
Surveys of air quality to be carried out before and during HVHF operations
Pit liners Require pit liners to be installedSecondary containment
Require secondary containment for storage of specified hazardous fluids
Spill control plans
Require spill control plans to be produced and maintained
Well spacingMinimum spacing of well pads of one per 2.6 square km, with all the horizontal wells in the unit drilled from a common well padSpecify minimum well spacing
Minimise habitat fragmentation
Implement mitigation measures to minimise ecological impacts.
Minimise impacts on sensitive habitats
Develop and implement a specific mitigation plan and monitor in sensitive wildlife areas
Invasive species plan
Develop and implement an invasive species mitigation plan
Noise mitigation
Locate sites away from occupied structures and places of assemblyImplement management measures to minimise noiseImplement barrier methods to minimise noiseCarry out noisy operations during the day
Control options
Aspect Description of measureSeismicity monitoring
Monitoring of seismic activity with intervention in the event of events occurring
Visual impact mitigation
Standard measures to minimise visual impacts with regard to site location, lighting and paintwork
Minimise impacts of traffic
Road use agreement/transportation plan covering vehicle routeing and timingUse existing roads where possibleLocate access roads away from residential areasCentralise gathering facilities to reduce truck trafficMinimise impacts of new road construction via design and use of appropriate standards; build in mitigation at design stageLimit truck weightsVehicles to conform with highest emissions standardsUnnecessary idling to be preventedCarry out effective maintenanceRepair road damage, or make payments to allow damage to be repairedUse temporary pipeline for water transportation
Site selection Comprehensive assessment to identify optimum siteManagement Staff selection, training and supervision in environmental protection
Land restoration
Maintain land used for gas extraction to a suitable standard to enable restoration so far as possibleStockpile surface soils for use in restorationLoose soil should be covered with geotextiles or other materials
Pace of development
Limiting the pace of development could reduce some acute effects associated with shale gas development
Control optionsAspect Description of measure
Site layoutUse cut areas for surface impoundment construction to avoid unnecessary increases in facility footprint
Minimise risks from liquid storage and handling
Avoid the use of surface impoundments and reserve pits where possibleAvoid the use of surface impoundments and reserve pits in flood zones or other sensitive areasSilt fences, sediment traps or basins, hay bales, mulch, earth bunds, filter strips or grassed swales can be used to slow runoff and trap sediment from leaving the site.Where possible, activities should be staged to reduce soil exposure and coincide with a season of low rainfallContingency planning and training to address spillage risksVisual inspection of primary containment before hydraulic fracturing is carried outUse conductance monitors for rapid detection and assessment of spillages
Minimise risks from temporary pipelines
Pipelines should not be located on steep hillsides or within watercourses
Extent of surface casing
Surface casing to extend to at least 30 m below aquifersSurface casing to extend to at least 15 m below aquifersSurface casing to extend below aquifersSurface casing to extend to at least 30 m below ground levelSurface casings should be cemented before reaching a depth of 75 metres below underground sources of drinking water.
Extent of production casing
Production casing should be cemented up to at least 150 metres above the formation where hydraulic fracturing will be carried out
Control options
Aspect Description of measure
Well integrity
Pressure tests of the casing and state-of-the-art cement bond logs should be carried outRegulation and inspection regime needed to confirm effective repair of defective cementingMeasure compressive strength with benchmarks between 2.1 and 8.3 MPa, based on setting times between 4 and 72 hoursInclude well integrity measures in permit specified under Mining Waste DirectiveComplete cementing and isolation of underground sources of drinking water must be carried out prior to further drillingCasing centralizers should be used to centre the casing in the holeTesting of well integrity should take place at construction, and throughout the lifetime of the well
Minimum depth for hydraulic fracturing
Fracturing at depths of less than 600 m requires a specific permitFracturing not permitted with a separation of less than 46 m between fracture zone and aquiferFracturing at depths of less than 600 m or with less than 300 m separation between fracture zone and aquifer requires a specific analysis and reviewFracturing with a separation of less than 600 m between horizontal section of well and aquifer should not be permitted
Multi-stage fracturing
Maintain hydraulic isolation between porous zones
Disclosure
Operators should disclose publicly the chemical constituents of hydraulic fracturing fluid, including product name and purpose/type; proposed composition of fracturing fluid by weight; and proposed volume of each additiveOperators should disclose publicly the results of well integrity tests
Drilling engines
Emissions from diesel engines to conform with highest applicable standardsUse natural gas powered engines and compressors where feasibleUse electrically driven engines and compressors where feasibleUse selective catalytic reduction to reduce emissions from drilling rig engines
Control options
Aspect Description of measure
Drilling fluidsDrillers should select fluids to minimise the environmental hazard posed by drilling wastesSeparation of drilling fluids and processing to facilitate re-useUse closed-loop systems to reduce drilling time, drilling fluid use and surface disturbance
Composition of HVHF fluid
Develop guidance for use of diesel fuel in HVHF fluidProhibit use of diesel fuel in HVHF fluidProhibit use of specified volatile organic compounds in groundwater zoneUse of specified volatile organic compounds in HVHF fluid requires prior authorisationSelect appropriate additives to minimise environmental impactsMinimise biocide use, e.g. via use of UV disinfection techniques in place of chemical biocidesSelect proppants which minimise the HVHF treatment required
Water resource management
Develop and use an integrated water management systemRequire use of alternative sources of waterAvoid sensitive areas for water withdrawals
Control of invasive species
Implement precautions to prevent invasive species from water storage by cleaning vehicles and appropriate disposal of surplus water
Control of HVHF process
Predictive modelling to optimise fracturing strategiesShare data from nearby fracturing operationsEnsure equipment compatible with composition of fracturing fluid Use all available techniques to minimise risk of fracturing taking place outside the target reservoirThorough planning and testing of equipment prior to fracturing operationsDevelopment of contingency plan prior to fracturing operationsDetailed monitoring of process during fracturing operations
Control options
Aspect Description of measure
Wastewater management
Develop pre-treatment standards for discharges of shale gas extraction wastewater to municipal wastewater treatment plantsEstablish treatment requirements/discharge limits for treatment and final discharge of wastewaterRe-use waste water where possibleStore waste water in storage tanks, or in double lined lagoons constructed with regard to local topographyEnsure receiving treatment works is capable of handling wastewatersInstall on-site wastewater treatment if appropriateMeasure the composition of the stored return waterUse closed-loop systems manage and reprocess waste waters
Emissions to air from well completion
Develop and adopt air emission standards for methane, air toxics, ozone-forming pollutants, and other airborne contaminantsRequire Reduced Emissions Completions to be carried outProhibit venting of gases, and minimise use of flaringControl of VOC emissions by combustion for any tank emitting more than 6 tons VOCs per yearProhibit use of open-top or blow down tanksSpecify required reductions in uncontrolled VOC emissions Use low-bleed or no-bleed pneumatic controllersReplace glycol systems with alternatives
Leakage to air during operation
Survey well head equipment to identify and address leakageUse equipment with low potential for leakageAutomatic fail-safe equipment on pipelinesReduce the number of storage tanks on site
Temporarily abandoned wells
Set requirements for plugging and inspection of shut-in wellsInspect and maintain wellheads every 90 days
Control options
Aspect Description of measure
Permanent well abandonment
Plug with 30 m of cement every 760 m and at least 30 m cement at the surface, with 30 m of cement in horizontal sectionPlug with 15 m of cement above every zone to be protectedPlug at least 15 m below the deepest perforation and 15 m above the shallowest perforationPlug at least 15 m above and below the base of the deepest usable aquiferPlug at least 30 m above and 15 m below each fluid-bearing stratumPlug from 15 m below to 15 m above the base of the treatable water zoneSet requirements for inspection of abandoned wellsEnsure a micro-annulus is not formed at temporary plugsCarry out ongoing monitoring programmeMaintain records of well location and depth indefinitelyTransfer ownership and liability to competent authority on surrender of permit to ensure long-term management
Well pad restoration
Remove surface impoundments as soon as possible when no longer neededRemediate well pads on an ongoing basis to facilitate return to original conditionsWell sites must be restored as soon as possible after the end of extraction operations
BondingAll operators are required to have financial security for the wells through performance bonds on an individual well or a field of wells
Wider area development
Operators should work cooperatively with regulatory agencies and other stakeholders to promote best practices, and improve communication with local communities. Neighbouring operators work together to ensure efficient provision of gas collection and water treatment infrastructure
Transboundary co-operation
Competent authorities should co-operate in jointly meeting regulatory requirements
Legislative review
Aim of legislative review• To identify potential uncertainties regarding the extent to which
shale gas exploration and production risks are covered under current EU legislation
• To identify those risks not covered by EU legislation• To draw conclusions relating to the risk to the environment and
human health of such operations in the EU
Gap analysis• Inadequacies in legislation• Potential inadequacies – uncertainty in applicability• Potential inadequacies – uncertainty in MS implementation
Legislative review
Gaps identified in legislative review• EIA Directive Annex I threshold for gas production• EIA Directive Annex II definition of “deep drilling”• EIA Directive scope: no requirement to address geological features• Water Framework Directive: definition of “pollutants”• Mining Waste Directive/IPPC: no relevant
BREF document• Air and noise emission limits for larger
off-road machinery• Coverage of Environmental liability directive• Applicability of IPPC Directive/Industrial
Emissions Directive• Classification under MWD• Applicability of Seveso II Directive• Member State implementation of a number of directives
Next steps
Next phase of European Commission studies• Development of risk framework• Member state implementation• Mitigation of climate impacts of possible future shale gas extraction
Our work• Regulatory guidance• Supply chain market analysis• Ongoing regulatory support
in US
Supply chain
DATA REVIEW
SELECT TEST SITE
TRIAL DRILL/ FRACK
TRIAL DATA ANALYSIS
SELECT PRODUCTION ZONE
WELLPAD IDENTIFICATION
DRILLING/FRACKING
Analysts
Public relations
EIA
Planning
Drill rig
Horizontal drilling
Water supply
Frack project manager
Waste and water treatment/disposal
Chemical supplier
Chemical manufacturing
Compression plant
Site preparation
Generator plant
Logistics
Technical/ engineering
expertise
Risk assessment
Monitoring
Public relations
EIA
Planning
SEA
Ecology
Financing
Financial advice
Audit/ due diligence
Regulatory liaison
COMPLETIONPRODUCTIONABANDONMENT
Green completion expertise
Water treatment/ recycling disposal
Services
SITE CONSTRUCTION
Planning
Engineering
Environmental monitoring
Site restoration Well maintenance
WORKOVERS
EXPLORATION
DEVELOPMENT
Monitoring
Ecology
Personnel messing, catering, sanitation, accommodation etc
Engineering expertise
Specialist drilling/casing
suppliers
Public relations
Liaison with pipeline operator
AS FOR EXPLORATION
PHASE
Expertise
Environmental management
Geology andGeophysics
Legal
Technical/constructionInfrastructure
analysis
Reprocessingof historical data
Analysis andinterpretation
Political/Geopolitical
Trial data acquisition
Gravimetry
Geochemical survey
2D Survey
3D Survey
EM Survey
Well plugging
Road repair
Landscape Repair
Sludge disposal
Environmental management
PRODUCTIONDECOMMISSIONING
Production gathering
Pipeline connectivity
PIPELINE CONSTRUCTION
Water pond construction
Road, site and pad preparation
Road and site construction
Survey design and planning
Environmental management
Common to conventional and unconventional
Greater or different requirement withunconventional
New requirement for unconventional
KEY
Gravimetry
Geochemical survey
2D Survey
3D Survey
EM Survey
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