HYDRAULIC FRACTURE MINING

IN MANITOBA

MB Eco-Network Water Caucus

April 26, 2012

Fracking Topics

The Fracking ProcessMaterialsFracking ChemicalsWater issues

○ Water use○ Contaminated water storage○ Ground water contamination

Fracking in MBBakken FormationCurrent Legal Status

Fracking Topics (cont.)

Other JurisdictionsBritish ColumbiaQuebecMaritimesOntario

Opportunities/ Challenges in Opposing Fracking in Manitoba

Q & A / Discussion on Campaign Strategies

Intro Video

http://www.youtube.com/watch?v=JOOhoLzDGgE

Water and Chemical Use

Each fracture well requires 1-8 million gallons of water in total

Each frack requires 40,000 gallons of chemicals (average number of fracks per well is 15-20)

Fracking Solution

94.5 % Water

5.25 % Sand (Propping agent)

0.25 % Chemical Additives

Chemical Functions

Friction Reducer - allows higher flow rate at reduced pressure

Fracking Fluids - acid to break down surrounding rock

Biocides - prevents microorganism growth and biofouling

Stabilizers - prevents corrosion of metal pipes

Product Function Chemical Name Chemical Purpose

Acid Hydrochloric Acid Helps dissolve minerals and initiate cracks in the rock

Biocide Glutaraldehyde

Eliminates bacteria in the water that produces corrosive by-products

Ammonium Chloride

Quaternary Ammonium Chloride

Tetrakis Hydroxymethyl-Phosphoium Sulphate

Breaker Ammonium PersulphateAllows a delayed break down of the gel Magnesium Peroxide

Magnesiom Oxide

Calcium Chloride Product StabilizerSodium Chloride

Clay Stabilizer Choline Chloride

Prevents clays from swelling or shifting

Tetramethyl ammonium chloride

Sodium Chloride

Product Function Chemical Name Chemical Purpose

Corrosion Inhibitor Isopropanol Product Stabilizer and/or winterizing agent

Methanol

Formic Acid Prevents the corrosion of the pipe Acetaldehyde

Crosslinker Petroleum Distillate Carrier fluid for borate or zirconate crosslinker

Hydrotreated Light Petroleum Distillate

Potassium Metaborate

Maintains fluid viscosity as temperature increases

Triethanolamine Zirconate

Sodium Tertaborate

Boric Acid

Zirconium Complex

Borate Salts

Ethylene Glycol Product Stabilizer and/or winterizing agent

Methanol

Product Function Chemical Name Chemical Purpose

Friction Reducer Polycrylamide "Slicks" the water to minimize friction

Petroleum Distillate Carrier fluid for polyacrylamide friction reducer

Gelling Agent Guar Gum Thickens the water in order to suspend the sand

Polysaccharide Blend

Petroleum DistillateCarrier fluid for guar gum in liquid gels

Hydrotreated Light Petroleum Distillate

Iron Control Citric Acid

Prevents precipitation of metal oxides Acetic Acid

Thioglcolic Acid

Sodium Erythorbate

Non-Emulsifier Lauryl SulphateUsed to prevent the formation of emulsions in the fracture fluid

Scale InhibitorCopolymer of Acrylamide and Sodium Acrflate

Prevents scale deposit in the pipe Sodium Polycarboxylate

Phosphonic Acid Salt

Product Function Chemical Name Chemical Purpose

pH Adjusting Agent Sodium Hydroxide

Adjusts the pH of fluid to maintain the effectiveness of other components, such as crosslinkers

Potassium Hydroxide

Acetic Acid

Sodium Carbonate

Potassium Carbonate

Sufactant Lauryl Sulphate Used to increase the viscosity of the fracture fluid

Naphthalene Carrier Fluid for the active surfactant ingredients

Ethanol

Product Stabilizers and/or winterizing agents Methanol

Isopropyl Alcohol

2-Butoxyethanol

Contamination risks Transport of hazardous chemicals to the mine

site

Recovered fracture water or “produced water” sits in nearby tailings ponds. These tailing ponds allow volatile organic compounds

and hazardous waste particles into the air

0nly 30-50% of the water is recyclable - the rest is disposed of onsite (buried in mine shaft) when well is dry.

Contamination Risks The fracking fluid may contaminate the

water supply through a leak in the well line or through leeching into the water table via the fractures the process creates

Naturally-occurring methane gas and other toxic chemicals may leech into the water table Methane gas concentration is 17 times higher in

drinking-water wells near fracking sites

Bakken Formation

Bakken Formation Potential Reserves

3.65 billion barrels of crude oil

2.0 trillion cubic feet of natural gas

150 million barrels of gas liquids

Hydraulic Fracture Mining in Manitoba

Companies are not required to stipulate mining method - just what is extracted (ie. gas or oil), so no way to determine where exactly fracking is occurring

Number of MB oil wells in 2003 – 1,400

Number of MB oil wells in 2009 – 3,000

It is estimated that 300-500 wells will be drilled in MB in 2012

Many of these may be fracking sites

Hydraulic Fracture Mining In Manitoba

There is no special legal status or requirements for hydraulic fracture mines in MB

Hydraulic fracking would come under MB Oil and Gas Act (1993) and Drilling and Production Regulation (1994) both of which were designed for traditional oil

and gas extraction and written before large scale hydraulic fracking was used in Canada (prior to exploitation of the Bakken reserve)

Hydraulic Fracture Mining In Manitoba

Thus, the legal framework in MB ignores:The likelihood of fracking chemicals entering

the water table; and

The possibility of natural gas leeching into the water supply once disturbed by fracking

Other Jurisdictions: BC British Columbia has a large scale

hydraulic fracture mining industry which has faced heavy opposition

Recently passed legislation requires companies to disclose the chemicals they use in the fracking process and this is published online at fracfocus.ca

Other Jurisdictions: BCLegislation weak points Disclosure occurs 30 days after well has been

closed so really just for legal recourse if your water or land

has already been contaminated Companies can still restrict chemical publication

if said chemical is a proprietary trade secret there is just additional paperwork

Not sure of the penalties for non-compliance as it is a regulatory framework that works with industry

Other Jurisdictions: Quebec Recently extended and expanded on

previous fracking moratorium until study results due in 2013 are released

Currently, fracking no longer permitted even for research purposes

Other Jurisdictions: MaritimesNova Scotia Recently passed two year fracking

moratorium until the process can be further studied

New Brunswick Liberal Opposition has been calling for

moratorium in legislature Moncton City Council has refused to sell

water to fracking companies

Other Jurisdictions: Ontario Small municipal regions around the

Great Lakes have successfully opposed and stopped fracking deals

Challenges in Manitoba

We do not have a lot of information as to where hydraulic fracturing is occurring and how large the industry is at the present

Because MB’s oil and gas industry is small not many politicians are informed about the dangers

The NDP government may not want to spend political capital on an issue that affects few people and in a rural area that is a traditional Tory stronghold

Challenges in Manitoba

North Dakota is experiencing a huge industry boom as it jumps into hydraulic fracking with both feet

Opportunities in Manitoba Several provinces have recognized the dangers

posed by hydraulic fracking and have strengthened their regulation or placed moratoriums on it

Government is currently rewriting the new Groundwater and Well Water Act

Current mining legislation is outdated and needs to be refreshed to reflect growing industryOpportunity for shaping these reforms

Less pressure on politicians to keep natural gas prices low

Sources/ Linkshttp://manitobawildlands.org/gov_rc33.htm -good starting site

http://www.watershedsentinel.ca/content/fracking-natural-gas-affects-water-quality 

http://www.policyalternatives.ca/sites/default/files/uploads/publications/BC%20Office/2011/11/CCPA-BC_Fracking_Up.pdf

http://www.cbc.ca/fp/story/2011/06/30/5031205.html - business fallout over Quebec’s fracking moratorium

http://rabble.ca/news/2010/07/no-fracking-way-ban-hydraulic-fracturing-canada

http://www.canada.com/life/Nova+Scotia+issues+year+moratorium+fracking/6481080/story.html

http://www.montrealgazette.com/technology/Most+Canadians+want+moratorium+fracking+poll/6106545/story.html

http://www.winnipegsun.com/2012/02/06/tobans-dont-support-fracking-poll

http://www.winnipegfreepress.com/local/shale-gas-seen-as-possible-new-resource-here-137812343.html

http://www.propublica.org/special/hydraulic-fracturing-national

http://www.gaslandthemovie.com/whats-fracking

http://www.halliburton.com/public/projects/pubsdata/hydraulic_fracturing/fracturing_101.html

http://www.hydraulicfracturing.com/Water-Usage/Pages/Information.aspx

http://thetyee.ca/Opinion/2011/04/20/FrackingToxins/

www.fracfocus.ca

http://www.mining.com/2012/02/03/fracking-explained-negatively/