oil & gas development in michigan · 2014. 10. 6. · david lawrence, area geologist oil &...
TRANSCRIPT
![Page 1: Oil & Gas Development in Michigan · 2014. 10. 6. · David Lawrence, Area Geologist Oil & Gas Development in Michigan. Todays Presentation •Part 1: Geology in Michigan •Part](https://reader035.vdocuments.net/reader035/viewer/2022071514/613645850ad5d2067647ea35/html5/thumbnails/1.jpg)
Michigan Department of Environmental Quality
Office of Oil, Gas & Minerals
David Lawrence, Area Geologist
Oil & Gas Development
in Michigan
![Page 2: Oil & Gas Development in Michigan · 2014. 10. 6. · David Lawrence, Area Geologist Oil & Gas Development in Michigan. Todays Presentation •Part 1: Geology in Michigan •Part](https://reader035.vdocuments.net/reader035/viewer/2022071514/613645850ad5d2067647ea35/html5/thumbnails/2.jpg)
Todays Presentation
•Part 1: Geology in Michigan
•Part 2: OOGM’s Role
![Page 3: Oil & Gas Development in Michigan · 2014. 10. 6. · David Lawrence, Area Geologist Oil & Gas Development in Michigan. Todays Presentation •Part 1: Geology in Michigan •Part](https://reader035.vdocuments.net/reader035/viewer/2022071514/613645850ad5d2067647ea35/html5/thumbnails/3.jpg)
Background
•GeologyoMichigan Basin
![Page 4: Oil & Gas Development in Michigan · 2014. 10. 6. · David Lawrence, Area Geologist Oil & Gas Development in Michigan. Todays Presentation •Part 1: Geology in Michigan •Part](https://reader035.vdocuments.net/reader035/viewer/2022071514/613645850ad5d2067647ea35/html5/thumbnails/4.jpg)
Collingwood-Utica?
Or
Utica-Collingwood?
� Two separate formations
� The target formation
Collingwood Outcrop
![Page 5: Oil & Gas Development in Michigan · 2014. 10. 6. · David Lawrence, Area Geologist Oil & Gas Development in Michigan. Todays Presentation •Part 1: Geology in Michigan •Part](https://reader035.vdocuments.net/reader035/viewer/2022071514/613645850ad5d2067647ea35/html5/thumbnails/5.jpg)
Base of drift
Utica-Collingwood
Antrim
Niagaran
![Page 6: Oil & Gas Development in Michigan · 2014. 10. 6. · David Lawrence, Area Geologist Oil & Gas Development in Michigan. Todays Presentation •Part 1: Geology in Michigan •Part](https://reader035.vdocuments.net/reader035/viewer/2022071514/613645850ad5d2067647ea35/html5/thumbnails/6.jpg)
Michigan – Utica Shale Subcrop
![Page 7: Oil & Gas Development in Michigan · 2014. 10. 6. · David Lawrence, Area Geologist Oil & Gas Development in Michigan. Todays Presentation •Part 1: Geology in Michigan •Part](https://reader035.vdocuments.net/reader035/viewer/2022071514/613645850ad5d2067647ea35/html5/thumbnails/7.jpg)
How Deep?
�Central Basin
�Closer to Hillman
![Page 8: Oil & Gas Development in Michigan · 2014. 10. 6. · David Lawrence, Area Geologist Oil & Gas Development in Michigan. Todays Presentation •Part 1: Geology in Michigan •Part](https://reader035.vdocuments.net/reader035/viewer/2022071514/613645850ad5d2067647ea35/html5/thumbnails/8.jpg)
Where is it the Thickest?
� Depends on the data
![Page 9: Oil & Gas Development in Michigan · 2014. 10. 6. · David Lawrence, Area Geologist Oil & Gas Development in Michigan. Todays Presentation •Part 1: Geology in Michigan •Part](https://reader035.vdocuments.net/reader035/viewer/2022071514/613645850ad5d2067647ea35/html5/thumbnails/9.jpg)
Discovery
� Two years
�Discovery well
� Permits
![Page 10: Oil & Gas Development in Michigan · 2014. 10. 6. · David Lawrence, Area Geologist Oil & Gas Development in Michigan. Todays Presentation •Part 1: Geology in Michigan •Part](https://reader035.vdocuments.net/reader035/viewer/2022071514/613645850ad5d2067647ea35/html5/thumbnails/10.jpg)
•Part 2: OOGM’s Role
![Page 11: Oil & Gas Development in Michigan · 2014. 10. 6. · David Lawrence, Area Geologist Oil & Gas Development in Michigan. Todays Presentation •Part 1: Geology in Michigan •Part](https://reader035.vdocuments.net/reader035/viewer/2022071514/613645850ad5d2067647ea35/html5/thumbnails/11.jpg)
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
![Page 12: Oil & Gas Development in Michigan · 2014. 10. 6. · David Lawrence, Area Geologist Oil & Gas Development in Michigan. Todays Presentation •Part 1: Geology in Michigan •Part](https://reader035.vdocuments.net/reader035/viewer/2022071514/613645850ad5d2067647ea35/html5/thumbnails/12.jpg)
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)
![Page 13: Oil & Gas Development in Michigan · 2014. 10. 6. · David Lawrence, Area Geologist Oil & Gas Development in Michigan. Todays Presentation •Part 1: Geology in Michigan •Part](https://reader035.vdocuments.net/reader035/viewer/2022071514/613645850ad5d2067647ea35/html5/thumbnails/13.jpg)
Drilling & Completion
� Field Staff Onsite & Records Review • Casing and Sealing Programs• Blowout Prevention • Reserve Pits• Hydraulic Fracturing Water Management
• Site Restoration, etc.
![Page 14: Oil & Gas Development in Michigan · 2014. 10. 6. · David Lawrence, Area Geologist Oil & Gas Development in Michigan. Todays Presentation •Part 1: Geology in Michigan •Part](https://reader035.vdocuments.net/reader035/viewer/2022071514/613645850ad5d2067647ea35/html5/thumbnails/14.jpg)
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
![Page 15: Oil & Gas Development in Michigan · 2014. 10. 6. · David Lawrence, Area Geologist Oil & Gas Development in Michigan. Todays Presentation •Part 1: Geology in Michigan •Part](https://reader035.vdocuments.net/reader035/viewer/2022071514/613645850ad5d2067647ea35/html5/thumbnails/15.jpg)
Completion Techniques
� Evaluate of the target
formation
� Some formations do not need
stimulation
� Hydraulic Fracturing
![Page 16: Oil & Gas Development in Michigan · 2014. 10. 6. · David Lawrence, Area Geologist Oil & Gas Development in Michigan. Todays Presentation •Part 1: Geology in Michigan •Part](https://reader035.vdocuments.net/reader035/viewer/2022071514/613645850ad5d2067647ea35/html5/thumbnails/16.jpg)
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
![Page 17: Oil & Gas Development in Michigan · 2014. 10. 6. · David Lawrence, Area Geologist Oil & Gas Development in Michigan. Todays Presentation •Part 1: Geology in Michigan •Part](https://reader035.vdocuments.net/reader035/viewer/2022071514/613645850ad5d2067647ea35/html5/thumbnails/17.jpg)
� 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
![Page 18: Oil & Gas Development in Michigan · 2014. 10. 6. · David Lawrence, Area Geologist Oil & Gas Development in Michigan. Todays Presentation •Part 1: Geology in Michigan •Part](https://reader035.vdocuments.net/reader035/viewer/2022071514/613645850ad5d2067647ea35/html5/thumbnails/18.jpg)
![Page 19: Oil & Gas Development in Michigan · 2014. 10. 6. · David Lawrence, Area Geologist Oil & Gas Development in Michigan. Todays Presentation •Part 1: Geology in Michigan •Part](https://reader035.vdocuments.net/reader035/viewer/2022071514/613645850ad5d2067647ea35/html5/thumbnails/19.jpg)
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.
![Page 20: Oil & Gas Development in Michigan · 2014. 10. 6. · David Lawrence, Area Geologist Oil & Gas Development in Michigan. Todays Presentation •Part 1: Geology in Michigan •Part](https://reader035.vdocuments.net/reader035/viewer/2022071514/613645850ad5d2067647ea35/html5/thumbnails/20.jpg)
Facility Construction� Application with Proposed Site Diagrams
� Requirements (Setbacks, liner(s), monitoring points)
� Approval and Construction
![Page 21: Oil & Gas Development in Michigan · 2014. 10. 6. · David Lawrence, Area Geologist Oil & Gas Development in Michigan. Todays Presentation •Part 1: Geology in Michigan •Part](https://reader035.vdocuments.net/reader035/viewer/2022071514/613645850ad5d2067647ea35/html5/thumbnails/21.jpg)
Production
�Routine Inspections by OOGM Staff
� Producing
� Vegetation
� Identification Sign
� Noise
� Spills or Leaks
� Specific Requirements (i.e. H2S)
![Page 22: Oil & Gas Development in Michigan · 2014. 10. 6. · David Lawrence, Area Geologist Oil & Gas Development in Michigan. Todays Presentation •Part 1: Geology in Michigan •Part](https://reader035.vdocuments.net/reader035/viewer/2022071514/613645850ad5d2067647ea35/html5/thumbnails/22.jpg)
Plugging
� Plugging Operations
� Well Specific Plugging Instructions
� Inspection
� Site Restoration
� Flowlines and Facilities
� Bond Release
![Page 23: Oil & Gas Development in Michigan · 2014. 10. 6. · David Lawrence, Area Geologist Oil & Gas Development in Michigan. Todays Presentation •Part 1: Geology in Michigan •Part](https://reader035.vdocuments.net/reader035/viewer/2022071514/613645850ad5d2067647ea35/html5/thumbnails/23.jpg)
� Geology• Michigan Basin
• Utica-Collingwood
� OOGM’s Role
• Permitting
• Drilling and Completion
• Hydraulic Fracturing
• Plugging and Site Restoration
Summary
![Page 25: Oil & Gas Development in Michigan · 2014. 10. 6. · David Lawrence, Area Geologist Oil & Gas Development in Michigan. Todays Presentation •Part 1: Geology in Michigan •Part](https://reader035.vdocuments.net/reader035/viewer/2022071514/613645850ad5d2067647ea35/html5/thumbnails/25.jpg)
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