California Well Stimulation Treatment Regulations

Robert S. Habel California Department of Conservation Division of Oil, Gas, and Geothermal Resources

Division Mandates • Supervise the drilling, operation, and

maintenance of wells to prevent damage to life, health, property, and natural resources. Supervise and permit the owners/operators to utilize all methods and practices known to the industry for the purpose of increasing the ultimate recovery. To best meet oil and gas needs in this state, the supervisor shall administer this Division so as to encourage the wise development of oil and gas resources.

Senate Bill 4

• With the passage of Senate Bill 4 (Pavley, 2013), California has new laws for the practice of “well stimulation” activities performed by oil and gas operators.

• “Well stimulation” practices are defined by Senate Bill 4 (SB 4) and include hydraulic fracturing and other treatments that increase the flow of hydrocarbons (oil and natural gas) to wells and then to the surface for recovery.

Types of Well Stimulation Treatments in California

• Acid Matrix Treatments

• Hydraulic Fracturing Treatments • Acid Fracturing Treatments • Others

SB 4 Summary

REQUIRED:

• A study of well stimulation • A Statewide Environmental Impact Report • The Division to adopt well stimulation

regulations

Most stringent regulations in the nation

REQUIRES: • Groundwater monitoring plans • Permits for well stimulation • Public disclosure

ESTABLISHES:

• Notification requirements • Trade secret procedures

PROVIDES:

• Amendments to the oil and gas fee structure

SB 4 Summary

Well Stimulation Treatment

Regulations • Nearby Wells and Geology Review

• Pre-Fracturing Well Testing

• Advance Notification – Division – Neighbors

• Allow for Water Well Testing

• Monitoring During & After Fracturing Operations

• Disclosure of Materials Used in Fracturing Fluid

• Trade Secrets

• Storage of Hydraulic Fracturing Fluids

Well Stimulation Treatment

Regulations

WELL CONSTRUCTION IN CALIFORNIA

• Statutes and regulations regarding the protection of underground and surface water.

• Specific regulations regarding the integrity of the

well casing. • Specific regulations regarding cement and

equipment used to seal off the well from underground zones bearing fresh water and other hydrocarbon resources.

Groundwater Monitoring State Water Resources Control Board: • Approve a groundwater monitoring plan (GWMP),

or • Provide concurrence that groundwater monitoring

is not required because of a lack of USDWs. • Will Receive water sample data collected per the

GWMP. • All sampling of well or surface waters collected

under “Neighbor Notification”. All groundwater data are posted to State Website

Neighbor Notification Requirement

• 3rd party sends copy of WST Permit ≥ 30 days prior to WST to any neighbors and tenants w/in 1500’ of well head & 500’ of projection of wellbore.

• Declaration of notification sent to the Division

• Operator pays for 3rd party sampling of well or surface water if requested by owner or tenant

Pre-WST Pressure Testing Operator tests all casing and tubing strings to be used in the WST: • No more than 30 days before well stimulation is

proposed, but after all other operations that may compromise well integrity are completed tested and shall be charted and submitted to the Division

Operator: • provides Division ≥ 24 hour notice to witness

test. • Provides Division copy of chart ≥ 12 hours

before WST.

Pre-Test Cement Evaluation Operator runs radial Cement Evaluation Log ≥ 48 hours after cement placement to show: • Cement will ensure geologic and hydrologic

isolation of the oil & gas formation during and following WST.

Operator provides Division documentation of cement evaluation ≥ 72 hours before WST. WST operations may not go forward until the Division is satisfied with the review of the cement evaluation.

Monitoring During WST

Operators continuously monitors and records the following during WST, if applicable: 1. Surface injection pressure 2. Slurry rate 3. Proppant concentration 4. Fluid rate 5. Annuli pressures (if open to the atmosphere)

Operator monitoring of seismicity associated with

Hydraulic Fracture (HF) WSTs

Operator – handling of fluids associated to well stimulation

Monitoring post-stimulation production pressures

Production Pressures for a stimulated well shall be: • Monitored at least every other day, for 1st 30

days after a WST is completed. • Monitored monthly after the 1st 30 days. • Reported to DOGGR monthly thereafter. • Reporting not required if annular space has no

voids. • immediate reporting is required if pressures

readings indicate potential problem.

Post-WST Summaries & Histories to DOGGR

• ≤ 60 days from the end of WST, includes, • Public Disclosure

• Treatment details on wellbore (stages, perforation intervals)

• Well Stimulation Fluid Additives and Constituents

• Source and volume of base fluid • Volume, composition and disposition of

flowback fluid

• Post well Stimulation Report • How the operations differed from the

proposed design • Pressures and monitoring performed

during and after well stimulation • Hazardous waste generation &

disposition, including copies of hazardous waste manifests.

• Well History

Post-WST Summaries & Histories to DOGGR (continued)

Reporting “All” Acid Uses To be reported as Well History, ≤ 60 days after WST. Must include: • Volume of fluid containing acid emplaced into

well, including gallons/treated per foot. • Calculated Acid Volume Threshold (AVT). Exemptions from this reporting requirement: • WSTs per Article 4 (see CCR 1780, 1781) • Permitted drill, redrill, rework, and abandonment

work that is not WST. • UIC projects.

Summary

• Strongest regulations in the nation

• Protects drinking water, the environment, and public heath and safety

• Provides for transparency

• Reporting requirements

• During the reporting period, 579 well stimulation treatments (WSTs) were performed with a total of 2,182 distinct stages stimulated.

• With a single exception, WST was limited geographically to western Kern County in relatively mature oil fields (no offshore).

• 94% of WST were performed in diatomite formations.

• 2.76% of WST were performed in Monterey formations.

• The average fracture height of WST for all stimulated stages was 156 feet.

Reporting for 2016

• The average fracture length of WST for all stimulated stages was 78 feet. The average depth of stimulation for all zones was between 1,260 and 1,991 feet.

• 100% of recovered WST fluids were reinjected into Class II underground injection projects, which are regulated separately under the Division’s Underground Injection Control (UIC) program.

• There were no well failures associated with WST and no emergency responses to spills or releases.

Reporting for 2016

Thank you.

www.conservation.ca.gov