OHIO’S REGULATIONS ON NATURALOHIO S REGULATIONS ON NATURAL GAS DEVELOPMENT AND DISPOSAL OF

OILFIELD WASTESOILFIELD WASTES

Tom Tomastik, Geologist, Ohio Department of Natural Resources, Division

f Mi l R Mof Mineral Resources Management

HISTORY OF OHIO’S OIL AND GAS INDUSTRY

• Drilling for oil and gasDrilling for oil and gas in Ohio began in the 1860s

• By the 1880’s, Ohio was the world’s leading oil producerleading oil producer

• Natural gas, initially was a byproduct, but yp ,usage began in the 1880s

• Initially oil and gas• Initially, oil and gas operations in Ohio regulated by Division g yof Mines

• Predominantly in coal-ybearing townships

• Regulations were pretty sparse – no spacing requirements

OHIO DIVISION OF OIL AND GASOHIO DIVISION OF OIL AND GAS

• In the early 1960s oil discovery in MorrowIn the early 1960s, oil discovery in Morrow County started a drilling boom

• Town lot drilling occurredTown lot drilling occurred • No spacing or conservation measures in

placeplace• Caused a national stir – wasting of resource• In 1965 Go ernor and legislat re passed• In 1965, Governor and legislature passed

laws and created the Division

INITIAL DISPOSAL REGUALTIONSINITIAL DISPOSAL REGUALTIONS

• In 1965 fewIn 1965, few injection wells for disposald spos

• Most disposal in “evaporation pits”p p

• Lead to groundwater gcontamination

• Division receives primacy of UIC Program• Division receives primacy of UIC Program in 1983L d l t bli h d f Cl II• Laws and rules established for Class II injection wells

• Proper way to handle and dispose of oil and gas fluid wastes

• Started increase in injection well installation

AMENDED SUBSTITUTE HOUSE BILL 501 – PASSED 1985

• Eliminated “evaporation pits” as of July 1• Eliminated evaporation pits as of July 1, 1986E t bli h d l f l di l ti d• Established lawful disposal options – deep well injection or surface spreading

• Established registration and reporting requirements for brine haulers

DIIVISON OF MINERAL RESOURCES MANAGEMENT

• In July 0f 2000In July 0f 2000, Division Oil and Gas merged with Mining

d R l iand Reclamation• Formed Division of

Mineral ResourcesMineral Resources Management (DMRM)

• Regulates oil and gas, coal, and industrial minerals miningminerals mining

SENATE BILL 165SENATE BILL 165

• Passed and went into effect on June 30• Passed and went into effect on June 30, 2010L t th d f d illi ti• Laws strengthened for drilling operations and well construction

• Fee increases, including new brine injection disposal fee

CLASS II SALTWATER INJECTION WELLS

• Requires three layers• Requires three layers of steel casing to protect aquifersp q

• Surface casing set at least 50 feet below deepest USDW

• Protect up to 10,000 TDS

SALTWATER INJECTION WELL FACILITY

ANOTHER CLASS II FACILITYANOTHER CLASS II FACILITY

TYPICAL INJECTION WELLHEADTYPICAL INJECTION WELLHEAD

UIC INJECTION WELL INSPECTIONS

• Division inspectors• Division inspectors conduct unannounced inspections every 11-p y12 weeks

• Check injection and jannulus pressures for integrity

• Check for leaks

BRINE HAULING REGISTRATION IN OHIO

• Must be registered bonded and insured• Must be registered, bonded, and insured through DMRM

• Must track cradle to grave and maintain dailyMust track cradle to grave and maintain daily log book

• Truck must have “Brine” and UIC No. on tankTruck must have Brine and UIC No. on tank• Name and phone number of the company on

truck doors

BRINE HAULERBRINE HAULER

UNLOADING OILFIELD FLUIDS FOR DISPOSAL AT INJECTIONFOR DISPOSAL AT INJECTION

WELL

INSPECTOR REVIEWING DAILY LOG

BRINE SPREADING FOR DUST AND ICE CONTROL

INJECTION WELLS AND BRINE SPREADING

• Approximately 98 % of oilfield fluids in Ohio areApproximately 98 % of oilfield fluids in Ohio are injected

• Remaining 2% is spread legally for dust and ice g p g ycontrol

• In 2009, over 7,000,000 barrels (42 gallons per b l) i j t dbarrel) injected

• Currently, 170 injection wells permitted• Most spreading done for townships counties and• Most spreading done for townships, counties, and

villages

BRINE SPREADINGBRINE SPREADING

• Some spreading on private property• Some spreading on private property• Law requires resolutions passed by

t hi t ffi i l t blitownship or county officials at public meeting

• Only production brines can be spread for dust and ice control

HAULING AND DISPOSAL IN OHIOHAULING AND DISPOSAL IN OHIO

• Oilfield fluids hauled and disposed in Ohio• Oilfield fluids hauled and disposed in Ohio from other states for yearsJ t l l d t M ll Sh l• Just larger volumes due to Marcellus Shale play

• Three types of fluids – pit water, flowback or frac fluid, and production fluid

TYPES OF OILFIELD FLUIDSTYPES OF OILFIELD FLUIDS

• Pit water – fluids fromPit water fluids from drilling & cementing operations

• Mixture of drilling mud, freshwater, and formation brinesformation brines

• Flowback or Frac water – mixture of chemicals, brine, and brackish water associated with fracassociated with frac job

OILFIELD FLUIDSOILFIELD FLUIDS

• Production fluids natural formation brine• Production fluids – natural formation brine• Byproduct of oil and gas production• Mainly sodium, chloride, calcium, barium,

iron, strontium, magnesium, iron, potassium• Chloride is predominant with

concentrations as high as 200,000 pp, g , pp,(mg/L)

SAMPLING PARAMETERSSAMPLING PARAMETERS

• Inquiries as to what constituents to sampleInquiries as to what constituents to sample for prior to drilling activity

• Division’s parameters include: sodiumDivision s parameters include: sodium, chloride, conductivity, alkalinity, TDS, sulfate, calcium, magnesium, potassium, , , g , p ,barium, and strontium

• Also recommend bromide for CL/BR ratio analysis

BASICS OF HYDRAULIC FRACTURING

• Hydraulic fracturing used in Ohio sinceHydraulic fracturing used in Ohio since 1950s

• Tens of thousands of wells fractured by thisTens of thousands of wells fractured by this method

• Increases porosity and permeability to allowIncreases porosity and permeability to allow more oil and gas production

• Predominantly freshwater and sand somePredominantly freshwater and sand, some chemicals

HYDRAULIC FRACTURINGHYDRAULIC FRACTURING

• Water and sand pumped at high pressures to• Water and sand pumped at high pressures to fracture the rockS d t t t h ld f t• Sand acts as proppant to hold fractures open

• Done thousands of feet below the surface• Marcellus Shale in Ohio around 5000 to

6000 feet deepp• Utica Shale is going to be deeper

MARCELLUS SHALE MAP (From Ohio Division of Geological Survey)

FRAC JOBFRAC JOB

FRACTURING CONTINUEDFRACTURING CONTINUED

• Dramatically increases• Dramatically increases oil and gas production

• Shale plays usingShale plays using horizontal drilling and large, multi-stage frac g gjobs

• Has proven to be successful in other states

FLUID DISPOSAL IN OHIOFLUID DISPOSAL IN OHIO

• Pennsylvania does not have primacy of its• Pennsylvania does not have primacy of its UIC ProgramH l 8 i j ti ll• Has only 8 injection wells

• Oilfield fluids treated through POTWs in PA

• West Virginia has primacy, but limited g p y,number disposal wells

FLUID DISPOSAL CONTINUEDFLUID DISPOSAL CONTINUED

• Shale frac jobs can use 2 to 5 millionShale frac jobs can use 2 to 5 million gallons of fluid

• 99 5% is freshwater and sand99.5% is freshwater and sand• About 10 to 15% of Marcellus frac fluid is

recovered in PA and WVrecovered in PA and WV• Limited disposal options in other states• Ohio has injection ells and permit acti it• Ohio has injection wells and permit activity

is increasing

GROUNDWATER INVESTIGATIONSGROUNDWATER INVESTIGATIONS

• Division has• Division has conducted over 1000 groundwater ginvestigations since 1983

• No contamination cases caused by h d li f ihydraulic fracturing

• Mostly surface issues

DMRM REGULATIONSDMRM REGULATIONS

• DMRM can issue permits with variety ofDMRM can issue permits with variety of attached special conditions

• Special conditions are developed for drillingSpecial conditions are developed for drilling within municipal wellhead protection areas

• Working with Division of GeologicalWorking with Division of Geological Survey to add data layers for additional protection p

• Including SWAP – 1 & 5 year time of travel

URBANIZED AREA PERMIT CONDITIONS

• Includes: Lease road well site construction• Includes: Lease road, well site construction, drilling considerations, restoration, production and waiversproduction, and waivers

• Addresses noise mitigation, i / di t t l d i terosion/sediment control, drainage, water

wells, pit closure, etc.

CURRENT DEVELOPMENTSCURRENT DEVELOPMENTS

• Leasing is booming in OhioLeasing is booming in Ohio• Marcellus Shale leasing limited to eastern Ohio• Utica Shale extends into western Ohio – could beUtica Shale extends into western Ohio could be

the major play in Ohio• Most injection permits issued since 1994• Class II injection wells still best practice for

disposalOhi EPA i d fi POTW i W• Ohio EPA issued first POTW permit to Warren –less than 50,000 TDS fluid

DEVELOPMENTS - CONTINUEDDEVELOPMENTS - CONTINUED

• Joint ODNR Ohio EPA group meets every• Joint ODNR-Ohio EPA group meets every two monthsF t h t d l d f M ll d• Fact sheet developed for Marcellus and Utica shales

• At: http://www.epa.ohio.gov/portals/35/pretreatment/

ll h l /M ll Sh l F Sh dfmarcellus_shale/Marcellus_Shale_Fact_Sheet.pdf

QUESTIONS?QUESTIONS?