Michigan Department of Environmental Quality

Office of Oil, Gas & Minerals

David Lawrence, Area Geologist

Oil & Gas Development

in Michigan

Todays Presentation

•Part 1: Geology in Michigan

•Part 2: OOGM’s Role

Background

•GeologyoMichigan Basin

Collingwood-Utica?

Or

Utica-Collingwood?

� Two separate formations

� The target formation

Collingwood Outcrop

Base of drift

Utica-Collingwood

Antrim

Niagaran

Michigan – Utica Shale Subcrop

How Deep?

�Central Basin

�Closer to Hillman

Where is it the Thickest?

� Depends on the data

Discovery

� Two years

�Discovery well

� Permits

•Part 2: OOGM’s Role

OOGM’s Role – Part 615 of PA 451

� The DEQ, Office of Oil, Gas, and Minerals

(OOGM) Regulates the Following:

o Permitting

o Drilling & Completion

o Production

o Plugging and Final Site Restoration

Permitting – Surface Location

� Surface & Mineral Ownership

� Zoning and Spacing

� Site Location & Impacted areas• Drill Pad, Access, Flowlines

• Land Use, Topography,

• Soil Erosion & Sedimentation Control

� Isolation Distances� Structures, Water Wells, Utilities

� Surface Water, Wetlands, Flood Plains

� Threatened and Endangered Species

� Historic Areas

� Recreational Areas

� Environmentally Sensitive Areas

� Reserve Pit � Location (if allowed)

Drilling & Completion

� Field Staff Onsite & Records Review • Casing and Sealing Programs• Blowout Prevention • Reserve Pits• Hydraulic Fracturing Water Management

• Site Restoration, etc.

Conductor

Pipe

TD vertical holeTD horizontal hole

Base of Production

Casing

Base of Intermediate

Casing

Base of Surface

Casing (at least 100

feet below freshwater

aquifers)

Casing, Cementing

and Sealing

Completion Techniques

� Evaluate of the target

formation

� Some formations do not need

stimulation

� Hydraulic Fracturing

Image 7

What is Hydraulic Fracturing?

� A procedure used to complete

some oil or natural gas wells

� Pump water at high pressure to

create fractures in rock that

allow oil or natural gas to flow

more freely to the well bore

� Proppants, usually silica sand,

are added to the water to hold

the fractures open once they are

created

� The first reported hydraulic fracturing in Michigan was in 1952

� Since then ~12,000 Wells have been Hydraulically Fractured� The vast majority of these are vertical wells in the Antrim Shale with much lower volumes of water than the wells

with the long lateral portions.

� No evidence of any adverse impacts to environment or public health.

Hydraulic Fracturing in Michigan

Management of ‘Flowback Water’

� Flowback Water or Produced Water

� Water based fracturing fluid may be mixed with native water from the formation

� Flows back through well casing to the wellhead when pumping pressure (of fracturing) has been relieved.

� By rule, all produced fluids from a well bore must be containerized and not placed into a earthen pit or open receptacle.

Facility Construction� Application with Proposed Site Diagrams

� Requirements (Setbacks, liner(s), monitoring points)

� Approval and Construction

Production

�Routine Inspections by OOGM Staff

� Producing

� Vegetation

� Identification Sign

� Noise

� Spills or Leaks

� Specific Requirements (i.e. H2S)

Plugging

� Plugging Operations

� Well Specific Plugging Instructions

� Inspection

� Site Restoration

� Flowlines and Facilities

� Bond Release

� Geology• Michigan Basin

• Utica-Collingwood

� OOGM’s Role

• Permitting

• Drilling and Completion

• Hydraulic Fracturing

• Plugging and Site Restoration

Summary

QUESTIONS?

David T. Lawrence

989-705-3419

lawrenced@michigan.gov

http://www.michigan.gov/ogs

References

� William Harrison, ,2010, Geology of the Utica Shale and Collingwood Member of the Trenton Formation in the Michigan Basin; presentation before the Michigan Basin Geological Society