Attorney Matthew Sura
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Introduction… ◦ Former Director of Western Colorado Congress ◦ Graduate of University of Colorado Law School ◦ Attorney specializing in representation of landowners and mineral owners in oil and gas transactions and disputes Attorney Matthew Sura
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Attorney Matthew Sura. Introduction… Former Director of Western Colorado Congress Graduate of University of Colorado Law School Attorney specializing in representation of landowners and mineral owners in oil and gas transactions and disputes. - PowerPoint PPT Presentation
Transcript of Attorney Matthew Sura
Introduction…
◦ Former Director of Western Colorado Congress
◦ Graduate of University of Colorado Law School
◦ Attorney specializing in representation of landowners and mineral owners in oil and gas transactions and disputes
Attorney Matthew Sura
WCC Member Organizations (2008)
WCC member groups in San Miguel, Ouray, Montrose, Delta, Mesa, Garfield, and Routt counties.
Landowners Alliance for NE Douglas County
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Colorado’s Oil and Gas Basins
NIOBRARA:
Oil boom on the Front Range?
Horizontal Drilling and Multiple-Stage Hydraulic Fracturing
Jake well The Jake well, which was drilled in
October 2009 in Weld County, produced an average of 1,750 barrels of oil per day for the first few days -- 50,000 barrels over first 90 days.
Today, oil is trading at $100 / barrel. At that price, the well paid for itself in three months ($5 million)
Multi-Well Pad Coverage
“Anadarko estimates Colorado has up to 1.5 billion barrel oil reserve”
Denver Post headline…
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NUM
BER
OF
DRIL
LING
PER
MIT
SANNUAL COLORADO DRILLING PERMITS ISSUED
There are over 47,000 active wells in the state.
Surface impactsAir
Emissions
Water SupplyWater HandlingWater Reuse & Disposal
Land ImpactPrivate Property Rights
PRIVATE PROPERTY RIGHTS
What if you had a neighbor who came on to your property and:
disturbed 2-7 acres of your land, Brought constant truck traffic through your
property, dug waste pits for toxic chemicals, and installed heavy, loud equipment; then tossed you $2500 for your troubles?
Troubles that could be there for up to 30 years.
Home on the range or industrial site?
Gas wells and pumpjacks can be located as close as 150 feet from a home.
Well pads and drill rigs in ranchers’ fields.
IMPACTS TO THE LAND
pipeline corridors across the landscape and through people’s yards,
IMPACTS TO WATER QUALITY
Hydraulic Fracturing
Example Horizontal Well
What is in fracking fluid?
4-5 million gallons per frack. 98% water and sand, 2% fracking chemicals.
Some fracking chemicals relatively safe: sodium chloride, guar gum, citric acid
Some more ominous: hydrochloric acid, diesel fuel, BTEX (benzene, ethylbenzene, toluene, xylene), polycyclic aromatic hydrocarbons; methanol; formaldehyde; ethylene glycol
Governor Hickenlooper called for the Colorado Oil and Gas Conservation Commission to require disclosure of the chemicals used in fracking.
Several month stakeholder process and an 11-hour public hearing led to the passage of the Colorado Fracking disclosure rule.
Colorado Fracking Disclosure Rule
Requires the disclosure of both the identities and concentrations of all fracking chemicals.
Companies may continue to seek trade secret protection for specific chemicals, but they will have to justify and certify their trade secret claims.
Citizens who dispute such claims will have enhanced opportunity to get their challenges heard by the oil and gas commission or in court.
Colorado Fracking Disclosure Rule
SPILLS
Denver Post study: From 2008-2010, average of more than a spill per day, average size of 5,300 gallons
Hydraulic fracturing pit.
Leaking Waste Pits
Methane Seeps
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Divide Creek in Silt Colorado, April 2004, contaminated with methane and ignitable. The accident also affected water wells in three homes.
4000’of Sediment
Surface Casing 550’
Cross sectional view
400’ Usable Fresh Water
2100’ Various AtokaSands & Shales
1300’ Upper Hale
600’ Morrow Shale
Hindsville
300’ Fayetteville Shale
FRESH WATER AQUIFER ZONE
SHALLOW PRODUCING ZONE
WELL CONSTRUCTION STANDARDS
TARGET PRODUCING ZONE
CONDUCTOR PIPE
SURFACE CASING
PRODUCTION CASING
CEMENT
CEMENT
CEMENT
FRESH WATER AQUIFER ZONE
SHALLOW PRODUCING ZONE
CONDUCTOR PIPE
SURFACE CASING
PRODUCTION CASING
TARGET PRODUCING ZONE
GOOD MECHANICAL INTEGRITY
CEMENT CHANNELING
PRESSURE BUILDS UP
CONDUCTOR PIPE
SURFACE CASING
PRODUCTION CASING
FRESH WATER AQUIFER ZONE
SHALLOW PRODUCING ZONE
TARGET PRODUCING ZONE
CASI
NG
CEM
ENT FO
RMAT
ION
FRESH WATER AQUIFER ZONE
SHALLOW PRODUCING ZONE
TARGET PRODUCING ZONE
INSUFFICIENT CEMENT COVERAGE
PRESSURE BUILDS UP
CONDUCTOR PIPE
SURFACE CASING
PRODUCTION CASING
IMPACTS TO AIR QUALITY
Reduction Technology• Catalytic reduction• Ultra-low sulfur diesel fuel• LNG and CNG fuels• Oxidation catalysts• Green completions, vapor
recovery units, low bleed/no bleed pneumatic devices, plunger lift systems, leak detection
Emission Type• NOx• SO2• CO• CH4• VOCs (incl.
BTEX)
Emission Levels• EPA• Industry• State regulators• Research groups
VOCsOZONE
SMOG
Uncontrolled Emissions Estimates from Oil and Natural Gas Well Completions and Recompletions
Well Completion Category
Emissions(Mcf/event)
Emissions(tons/event)
Methane Methane VOC HAP
Natural Gas Well Completion withoutHydraulic Fracturing
38.6
0.8038
0.12
0.009
Natural Gas Well Completion withHydraulic Fracturing
7,623
158.55
23.13
1.68
Natural Gas Well Recompletion withoutHydraulic Fracturing
2.59
0.0538
0.0079
0.0006
Natural Gas Well Recompletion withHydraulic Fracturing
7,623
158.55
23.13
1.68
BOTTOM LINE: 240 times more air pollution from uncontrolled Oil and natural gas well completions and recompletions
US EPA, Oil and Natural Gas Sector: Standards of Performance for Crude Oil and Natural Gas Production, Transmission, and Distribution. July 2011
Dust and emissions from heavy truck traffic
Current Issues:
Local regulations
Setbacks from homes
STATE VS. LOCAL CONTROL Argument for state
control: oil and gas commission has expertise and experience in a highly technical field. There is a need for uniformity
Argument for local government role:
Local land use conflicts are best solved by local government. Local government should be part of monitoring of the industry. Local process gives local community a voice
Cannot ban or prohibit oil and gas development
Can exercise control over development up to the point of “operational conflict” with state authority
State setback: drilling and fracking can happen 350 feet from homes in residential areas, 150 feet elsewhere
Cities and Counties
SETBACKS FROM HOMES
