MICHIGAN’S REGULATORY RESPONSE TO HIGH VOLUME HYDRAULIC FRACTURING

Mark SnowSupervisor, Permits & Bonding UnitOffice of Oil, Gas, and Mineralswww.michigan.gov/deq

Michigan BasinIntracratonic basin. Bowl shaped sedimentary deposits of ancient quiet marine deposition. Older formations are closer to the surface along basin margins and at great depth in the center of the basin with a maximum thickness of about 15,000 feet beneath the city of Midland.

First well in 1886 in St. Clair County.

Commercial development began

in 1925.

State of Michigan has issued almost 61,000

permits. Oil & Gas permits starting in

1927

Active Wells• 4,500 oil• 11,000 gas• 1,300 water

injection & disposal

• 3,000 gas storage

• Well Location and Spacing• Drilling and Construction• Well Completion• Production Operations and Records• Plugging and Restoration

MICHIGAN’S OIL & GAS REGULATORY AUTHORITY

PART 615, SUPERVISOR OF WELLS. NATURAL RESOURCES AND ENVIRONMENTAL PROTECTION ACT (NREPA) ACT NO 451.

1950s   1st Michigan Hydraulic Fracture 

Completion

1950 – Present

Approximately 12,000 wells completed with hydraulic fracturing. 

Mostly since the 1980s in vertical wells in Michigan’s Antrim Shale Formation.

These Antrim Formation wells were 

among the first unconventional gas 

wells utilizing hydraulic fracturing completion in the US. 

History of Hydraulic Fracturing well completions in Michigan

Through wellbore deviation technology  advancements in the  

1980s. 

Horizontal drilling in conjunction with hydraulic fracturing.          

1980s‐2000 

Over 1,000 directional Antrim Wells with over 400 horizontal wells. 

2008 to Present 

The combination of long horizontal wells 

and hydraulic fracturing. 

Initiation of the ‘High Volume Hydraulic 

Fracturing’ (HVHF) in Michigan

History of Hydraulic Fracturing in Michigan

Unconventional reservoirs characterized as having the source and reservoir in one rock. Very low porosity and permeability. The wells typically must be fracture completed to achieve commercial production.

Antrim Shale (Late Devonian). Does have natural fractures. High organic content. Biogenic gas with a productive zone (500 to 2,000 feet). Natural gas production.

A1 Carbonate (Late Silurian). Shaley dolomite. Varies from dolomite to limestone. Over pressured and potentially sour – moving basin ward increases in H2S. Source rock for the Niagaran Reef play. Dark Brown to greenish gray. Recent attempts to drill horizontals and hydraulically fracture –to date, no significant success. Several conventional A1 fields exist oil to gas condensate, to natural gas production.

Utica‐Collingwood(Late to Middle Ordovician). Utica is shale composed of compacted clay with minor silt and carbonate. Light gray to dark black. Organic content from 0.5% to 1.3% by weight. 200 to 400 feet thick.Collingwood is black fine‐grained limestone grading toward shelly limestone of upper Trenton. 0‐50 feet thick. Absent from southern, western, and eastern portions of the basin. Organic content from 2.5% to 6.0% by weight. Gas condensate and natural gas production.

Production and Development stage

Lateral lengths of >10,000 feet.

Multi well pads. Far less surface disturbance.

One well pad with multiple lateral well bores can be utilized to intercept what would take a multitude of wells to drain.

In addition to natural gas, these wells produce natural gas liquids (NGLs). Includes, ethane, propane, butanes, and pentanes. These are a growing source of revenue for gas producers. Used in the Petrochemical industry. Ethane to ethylene used in things from food packaging, diapers, automotive antifreeze, clothing, carpets, tires, shoes, detergents, pvcpiping…

‘Resource Play Hubs’ 

What is different with these type well completions? Perception Issue

Here are the common concerns:

Isolation of gas and fluidsWell Construction requirements

Water acquisition and monitoring (SOW 1-2011) and new rules

Chemical additives, mixing, and disclosure(SOW 1-2011) and new rules

Management of waste fluidsAddressed in Part 615

Induced SeismicityInjection wells

MLIVE article in Grand Rapids Press, Sunday, March 3, 2013

Public Perception

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Michigan Well Construction

Common Public Concerns:

#1) Water acquisition

WWAT for all LVWW. No different then any other Large Volume Water Withdrawal proposal by other users within Michigan. Clearance is needed to insure that the will not be an Adverse Resource Impact (ARI). Site Specific Reviews may be necessary – depending upon the withdrawal volume, stream type, fish populations, and overall water management area budget.

Average water volume used/proposed for hydraulically fractured well completions

Antrim ~ 50,000 to 100,000 gal.

A1 Carbonate ~ 2 million gal.

U-C wells ~ 12 million gal.

Last year approximately 35 million gallons of water were used in Hydraulic Fracturing. Equivalent to irrigating 56 acres of corn for a growing season.

Currently have 14 permitted/undrilled (pending final water withdrawal approvals ) at 12 million gallons = 168 million gallons of water. Equivalent to irrigating 269 acres of corn for a growing season.

Water Acquisition

Current regulations on water monitoring

• Collect baseline samples from up to ten available freshwater water wells within ¼ mile.

• Analyze samples for BTEX, TDS, chloride, and methane. Provide lab sample results to OOGM and water well owner with 45 days.

Proposed changes on water monitoring

• Provide information for all freshwater wells within ¼ mile.

• If private water wells within ¼ mile, then a observation well is required to determine the drawdown from the HF water withdrawal.

Chemical Additives• Hydraulic Fracturing fluids 

are greater than 99% water and sand. Most chemical additives are not detectable in the fluid

• Chemical additives are used to give the fluid the properties necessary for effective well completion  

• Friction reducers (soaps and surfactants) allow fluids to be pumped at higher rates, crosslinkers and breakers aid the proppant placement, biocides prevent microbial growth, rust inhibitors and oxygen scavengers prevent corrosion, acids are used remove drilling and mud damage around the well bore.

Current regulations on chemical disclosure

• Disclose chemical information online at FracFocus.org

• Provide chemical name and concentration• Chemical family and trade name for trade secret

chemicals• Rules do not override requirement in federal law

to disclose chemical names to health care professionals

Proposed changes on chemical disclosure

• Material Safety Data Sheets posted at site• Some chemicals subject to federal trade

secret protections• DEQ posts MSDSs on website

Management of flowback or produced water

Fracturing fluid 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. Secondary containment around tank batteries.

Headlines surrounding an injection well in Youngstown, Ohio. Well was injecting  produced brine  and HF flowback into the Pre‐Cambrian. Michigan’s viable injection zones are quite different.

Presently, Michigan has 725 active Brine Disposal Wells (BDWs). Mainly disposing in the Devonian rocks of the Dundee and Detroit River. 

Induced Seismicity

Summary & Looking Forward12,000 wells have been fractured in Michigan. Many sizes, compositions, and strategies. No evidence of adverse impacts to the environment or public health. Current interest is focused on drilling long laterals into unconventional reservoirs at depths of 4,000 to 10,000 feet deep. 

DEQ is working with two studies:• University of Michigan 

Graham Institute Study.  Final integrated assessment reports are due out in mid‐2014.

• EPA’s Study due out in late 2014.

DEQ proposed rule changes will be subject of two public meetings this summer and hope to have implemented in fall 2014. 

Useful links:

MDEQ‐OOGM: http://www.michigan.gov/ogs

GeoWebFace: http://www.deq.state.mi.us/GeoWebFace/

US EPA HF page: http://www2.epa.gov/hydraulicfracturing

U of M study: http://graham.umich.edu/knowledge/ia/hydraulic‐fracturing/technical‐reports

MOGPEF video: http://www.mogpef.org/video_shale/index.html

FracFocus: http://fracfocus.org/

Energy In Depth: http://energyindepth.org/

Mark J. Snow, Supervisor , Permits and Bonding UnitDEQ‐ Office of Oil, Gas, and Mineralssnowm@michigan.gov517‐230‐8233

QUESTIONS?

OFFICE OF OIL, GAS, AND MINERALS