Hydraulic Fracturing: Regulations and Wyoming Rulemaking

Wyoming Oil and GasConservation Commission

Thomas E. DollState Oil and GasSupervisor

2nd Annual Ports‐to‐Plains Energy Summit WOGCC Overview

April 7, 2011



‐

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

40,000,000

45,000,000

50,000,000

55,000,000

60,000,000

65,000,000

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Annu

al Oil Prod

uctio

n, BO

WY Crude Oil and Condensate Production

Condensate

Crude Oil

Total

!!!



0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

2,000,000

2,200,000

2,400,000

2,600,000

2,800,000

3,000,000

3,200,000

3,400,000

3,600,000

3,800,000

4,000,000

4,200,000

4,400,000

4,600,000

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Annu

al Produ

ction, BO

WY CO2 EOR Oil Production

Salt Creek 2004

Beaver Creek 2008

Monell Unit 2004

Wertz 1986

Lost Soldier 1986



‐

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

Gas M

CF per m

onth

Wyoming's Gas Production

Total incl CO2

Conv incl CO2

PRB CBM

NON‐CBM



0102030405060708090100110120130140150160170180190200210220230240250

Jan‐78

Jan‐79

Jan‐80

Jan‐81

Jan‐82

Jan‐83

Jan‐84

Jan‐85

Jan‐86

Jan‐87

Jan‐88

Jan‐89

Jan‐90

Jan‐91

Jan‐92

Jan‐93

Jan‐94

Jan‐95

Jan‐96

Jan‐97

Jan‐98

Jan‐99

Jan‐00

Jan‐01

Jan‐02

Jan‐03

Jan‐04

Jan‐05

Jan‐06

Jan‐07

Jan‐08

Jan‐09

Jan‐10

Jan‐11

Wyoming Drilling Rig Count

Conventional RigsConventional RigsConventional RigsCBM Rigs

Conventional Rigs

?



Approved Applications for Permit to Drill

March 2010 – March 2011 4,169 Active Permits; 1,173 Drilled/Drilling; 303 Permits Expired



Time to Process APD

New Rule ImplementationSeptember 15, 2010



Sundry Notices Processed



Converse

Platte

Horizontal APDs by County March 2010‐March 2011

316 Active Permits101 Drilled/Drilling24 Permits Denied

100 In Approval Process



Horizontal APDs Approved by OperatorMarch 2010‐March 2011EOGBill BarrettChesapeakeMackAnadarkoRKITexas AmericanNobleDevonSamson ResourcesCirqueMBI



Frontier Mowry Niobrara Teapot

Horizontal APD’s by Formation March 2010‐March 2011



0

200

400

600

800

1000

1200

1400

0

1000

2000

3000

4000

5000

6000

7000

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Wyoming Well Stimulations

Wells Stimulated/Year

Individual Stimulations/Year

Multi‐zone HF technology

Almost 100% of oil and natural gas wells drilled in WY are HF treated to be commercial; the exception is shallow CBNG in northeast WY.

WY has no documented cases of groundwater contamination caused by HF.



Almond, 1,407 Fort Union, 1,339

Frontier, 2,000

Lance, 34,258

Lewis, 752 Mesaverde, 2,503

HF Treatments by Formation 1999‐2010

Total 1999‐2010 46,799 Treatments 2010 704 wells stimulated5,974 Treatments



BASIS FOR THE WELL STIMULATION RULES:

Four major issues were addressed:

1. the protection of groundwater and the identification of permitted water supply wells within ¼ mile of the drilling and spacing unit or Commission approved drilling unit;

2. clarification of requirements for well integrity, casing setting depths, casing design and cementing properties;

3. requirements for disclosure of well stimulation fluid chemical additives, compounds and concentrations or rates – planned and actually injected;

4. and requirements for the handling of the well stimulation load fluid recovered.



Well Completion Report Form 3, Page 1



Well Completion Report Form 3, Page 2



Listing of Chemicals Used in Compliance with Chapter 3 Section 45(h)

Well Completion Report Form 3 Attachment



Completion Reports Processed



CBM, MCF, $170,308,883

Unprocessed Wet Gas, MCF, $383,560,401

Oil, bbl, $221,590,167

Processed Residue Gas, MCF, $197,107,828

Gas Plant Products, gal, $63,705,130

Condensate, bbl, $59,794,550 All Others, $686,119

•Does not includeAd Valorem, Severance or Conservation Taxes or

Federal Royalties

WY 2010 Oil and Gas Sales Royalties/Revenues*

Total $1,097,127,596



[email protected] 307‐234‐7147

You may view the OGCC rules at http://wogcc.state.wy.us by clicking on “Rules and Regulations” in the right hand column of the home page. Click on the Bucking Horse Icon

“Download Rules and Regulations”. Click on “Agency”, scroll down to “Oil and Gas Conservation Commission” then select “Current Rules” then click “Search” to view the rules. Chapter 3 Sections 8, 22 and 45 address the well integrity and hydraulic fracturing requirements.

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Hydraulic Fracturing: Regulations and Wyoming Rulemaking

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