Hydraulic Fracturing and Water

Action 22 Water Summit

January 31st, 2012

Overview

The Fundamentals

Horizontal Drilling

Hydraulic Fracturing

Water Management

Produced Water

Baseline Sampling

Disclosure

Questions and Answers

The Fundamentals

Definition

The use of fluids to create a crack by hydraulic

pressure

The continued injection of fluids into the created

crack fracture to make it grow larger

The placement of small granular solids into the

crack to ensure the crack remains open after the

hydraulic pressure is no longer applied

Why HF a Well?

Increase the Rate at which the well is

capable of producing oil or gas

Most unconventional formations

Require hydraulic fracturing to be

economic

Does not increase total Reserves

Why HF a Well? Electronic Microscope Image of Rock

Magnification: 1000X Filename: S0178.tif

Width of a human

hair

100 µm

Fractured Contact

“HydraFrac” Process

July of 1947 - Stanolind Oil and Gas

• 1st Job: Klepper No. 1 gelled kerosene/gasoline mix

• Hugoton Gas Field, Kansas

Late 1948 - Patent issued, 23 wells H.F. before

commercial application began

In 1949, The Halliburton Oil Well Cementing Co.

was granted an exclusive license to pump the

new “Hydrafrac” process

• 332 wells were treated first 12 months

• 75% success rate

Drilling

Drilling Distance

Wells Fargo

Center ~700 ft

7000 ft.

Aquifer

400-800

ft.

Casing

Multiple layers

surrounding the

aquifer

Cement

Conductor Casing

Cement

Surface Casing

Drilling Mud/Cement

Production Casing

Production Tubing

Surface Casing Purpose

• Protect ground water

• Provide stable wellbore during drilling operation

• Provide well control during drilling

Depth Requirements

• Set by State and BLM regulations

• Extends below the aquifer

Cement Helps

• Protect casing from corrosion

• Provide zonal isolation

• Support casing in wellbore

Production Casing Purpose

• Provide zonal isolation

• Provide well control

• Well path to productive intervals

Cement Requirements

• Set by State regulations

• Set by BLM regulations

• Operator requirements

Cement Helps

• Protect casing from corrosion

• Support casing in wellbore

Hydraulic Fracturing

HF Fluids

HF Fluids

Additive Main Compound Common Use

Diluted Acid Hydrochloricor, Muriatic Acid Swimming Pools

Biocide Glutaraldehyde Dental Disinfectant

Breaker Ammonium Persulfate Bleaching Hair

Crosslinker Borate Salts Laundry Detergents

Iron Control Citric Acid Food Additive

Gelling Agent Guar Gum Biscuits

Scale Inhibitor Ethylene Glycol Antifreeze

Surfactant Isopropanol Glass Cleaner

Friction Reducer Polyacrylamide Water and Soil Treatment

HF Fluids Depending on the fluid system being pumped various

additives are used:

Additives are transported in concentrated form

Typically injected at less than 3 gallons per 1,000 gal of

water (0.3%)

All additive injection rates are controlled.

The purpose of any additive is to help improve the

overall process

Polymers

Crosslinkers

Surfactants

Clay Control

pH Control

Gel Breakers

Bacteria Control

Fluid Loss Additives

Frac Fluids

Footprint

1 Well Pad or 32?

Water Management

Sources of Water

Use of Water Must be Legally Allowed

Municipal lease/purchase (industrial uses)

Changed water rights (e.g. temp agricultural to

industrial)

Fully consumed water (leased/purchase

effluent)

Produced water (non-trib or decreed trib &

augmented)

Non-tributary (landowner & operator

agreement) Source - COGCC

Amount of Water

The amount of water needed depends on the

geologic basin, the formation, and the well.

Raton Basin, approximately 50,000 to 300,000 gallons

may be for a shallow coalbed methane well

Piceance Basin, approximately 800,000 to 2 million

gallons for a deeper tight sand gas well.

DJ Basin, approximately 250,000 gallons may be used

to frac a vertical well, while up to 5 million gallons may

be used to frac a horizontal well.

Source - COGCC

Colorado Water Use

Total (Million gallons/Day) Total (Billion gallons/Year)

Irrigation (crop) 12,322 4497

Irrigation (golf course) 41 14

Public-supply 864 315

Domestic 34 12

Industrial 142 52

Livestock 33 12

Mining 21 8

Thermo-electric 123 45

Total withdrawals 13,581 4957

Source: USGS 2005 Estimated Withdrawals and Use of Water

in Colorado, 2005

Colorado Water Use

Estimated Water Use

2015: 0.10% of total water use

Source: COGCC

One Acre Foot is Approximately 326,000 Gallons

Water Requirements

Natural gas has one

of the lowest water

usage rates per

MMBTU

Produced Water

Produced & Flowback

Produced water is naturally-occurring

(“connate”) water that exists in the

formation and is “produced” along with

hydrocarbons

Flowback water is recovered water from

HF use that returns to the surface

Disposal

60% Underground Injection Wells

20% Lined Open-Air Pits

20% Surface Discharge: rivers and

streams, dirt roads

Disposal Regulation

Rule 907 - Management of Exploration

and Production (E&P) Waste

Rule 908 - E&P Waste Management

Facilities Regulation

Rule 325 - Underground Injection of Water

Baseline Water Sampling

Concept

Pre and Post-drilling water samples taken

around new well starts

Increased transparency & accountability

for industry

Allows public to search all public records

on COGCC

Analytical results on a timely basis

Program

COGA, Hickenlooper, Dept. of Natural

Resources, and COGCC

93% Participation

Program Details

Samples collected on new wells and new

expansions

In accordance with COGCC Sampling and

Analysis Plan

Post-Drilling sampling conducted within

1-3 years

½ mile radius of well pad surface location

Sample collected within 48 hours of

notified complaint

Program Details Cont.

Samples sent to certified lab

Landowners notified of results along with

education materials

Samples available to public via database

on COGCC website

Annual review of program implementation

and results

HF Disclosure Registry

New HF Rule

Requires public disclosure of HF

chemicals using FracFocus.org

Well-by-well Basis

Trade Secret Protection

File with COGCC

48 hour advance notice from Operator to

the Commission is required of intention to

hydraulically fracture a well.

HF Disclosure Registry Initiated by the Ground Water Protection Council

(GWPC) and Interstate Oil & Gas Compact Commission

(IOGCC)

Website Development Committee: Industry, State, &

GWPC

Industry has unanimously supported the Registry

ANGA (American Natural Gas Alliance)

AXPC (American Exploration & Production Companies)

API (American Petroleum Institute)

IPAA (Independent Petroleum Association of America)

NGSA (Natural Gas Supply Association)

INGAA (Interstate Natural Gas Association of America)

Concept of the Registry Web interface where operators voluntarily register HF

chemicals

Timely, consistent data

Centralized upload area for operators

Secure information

Web interface where public finds more information on

the HF process

Well site search tool

Allow public to search for individual HF wells

Query by state, county, API number, production type, lease

name or well number

From 2011 forward

FracFocus Website

39

http://fracfocus.brocodev.com/hydraulic-fracturing-process

http://fracfocus.brocodev.com/

HF Disclosure Example

Questions?

Thank you for your interest in

Colorado’s oil and gas industry!

www.coga.org