Virginia RFDS R5

7/29/2019 Virginia RFDS R5

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Virginia

REASONABLY FORESEEABLEDEVELOPMENT SCENARIO

FOR FLUID MINERALS

Prepared for:

U.S. DEPARTMENT OF THE INTERIORBUREAU OF LAND MANAGEMENT

EASTERN STATESJACKSON FIELD OFFICE

411 Briarwood Drive, Suite 404Jackson, MS 39206

May 2008


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The Bureau of Land Management is responsible for thestewardship of our public lands. It is committed to manage, protect,and improve these lands in a manner to serve the needs of theAmerican people for all times. Management is based on theprinciples of multiple use and sustained yield of our nationsresources within a framework of environmental responsibility andscientific technology. These resources include air, fish and wildlife,minerals, paleontological relics, recreation, rangelands, scenicscientific and cultural values, timber; water, and wilderness.

BLM/ES/PL-08/XXX


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Virginia Reasonable and Foreseeable Development Scenario

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TABLE OF CONTENTS

1.0 INTRODUCTION ............................................................................................................................ 21.1 Discussion of Determining Oil and Gas Resource Potential ...................................... 21.2 Methodology for Predicting Future Oil and Gas Exploration and Development Activity

................................................................................................................................. 2

1.3 Relating the Potential for Resource Occurrence to Potential for Activity ................... 22.0 DESCRIPTION OF THE GEOLOGY OF VIRGINIA ................................................................ 3

2.1 Regional Geology ..................................................................................................... 32.1.1 .........Allegheny Plateau ........................................................................................ 32.1.2 .........Valley and Ridge .......................................................................................... 32.1.3 .........Blue Ridge ................................................................................................... 32.1.4 .........Piedmont ...................................................................................................... 62.1.5 .........Triassic Basins ............................................................................................. 72.1.6 .........Costal Plain .................................................................................................. 7

2.2 Subsurface Stratigraphy and Structure ..................................................................... 7

3.0 SUMMARY OF USGS PLAY DESCRIPTIONS FOR THE STATE OF VIRGINIA ............. 11

3.1 Appalachian Basin Province (067) ...........................................................................113.2 Coalbed Gas Plays ..................................................................................................113.3 Hypothetical Plays in Virginia ...................................................................................123.4 Unconventional Plays ..............................................................................................12

4.0 PAST AND PRESENT OIL AND GAS EXPLORATION ACTIVITY .................................... 134.1 Geophysical and Geochemical Surveys ...................................................................134.2 Exploratory Drilling and Success Rates ...................................................................13

4.2.1 .........Mesozoic Basins ........................................................................................ 134.3 New Field and Reservoirs ........................................................................................13

5.0 OIL AND GAS ACTIVITY IN VIRGINIA .................................................................................. 155.1 Leasing Activity ........................................................................................................155.2 Well Spacing Requirements .....................................................................................155.3 Drilling and Completion Statistics .............................................................................15

5.3.1 .........Drilling Practices ........................................................................................ 155.3.2 .........Drilling and Completion Costs .................................................................... 15

5.4 Production Statistics ................................................................................................165.4.1 .........Crude Oil .................................................................................................... 165.4.2 .........Natural Gas ................................................................................................ 16

5.5 Oil and Natural Gas Characteristics .........................................................................185.5.1 .........Natural Gas ................................................................................................ 185.5.2 .........Crude Oil .................................................................................................... 18

5.6 Oil and Gas Prices ...................................................................................................195.7 Conflicts with Other Mineral Development ...............................................................195.8 Gas Storage Fields ..................................................................................................20

6.0 OIL AND GAS OCCURRENCE POTENTIAL .......................................................................... 216.1 Existing oil and gas production ................................................................................21

6.1.1 .........Natural Gas Production .............................................................................. 216.2 Oil Production ..........................................................................................................22

7.0 OIL AND GAS DEVELOPMENT POTENTIAL........................................................................ 237.1 Relative Oil and Gas Development Potential ...........................................................23


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Bureau of Land Management Jackson Field Office

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8.0 REASONABLE FORESEEABLE DEVELOPMENT BASELINE SCENARIOASSUMPTIONS AND DISCUSSION ..................................................................................................... 25

9.0 SURFACE DISTURBANCE DUE TO OIL AND GAS ACTIVITY ON ALL LANDS ........... 269.1 Surface Disturbances ..............................................................................................269.2 Site Construction .....................................................................................................26

9.3 Mitigation Measures .................................................................................................309.4 Conditions of Approval .............................................................................................319.5 Lease Stipulations ...................................................................................................319.6 Total Disturbances ...................................................................................................31

10.0 REFERENCES ................................................................................................................................ 33

APPENDICES

A - VIRGINIA DIVISION OF MINERAL RESOURCES OPEN-FILE REPORT 05-04

B - USGS PLAY DESCRIPTION REPORTS

LIST OF TABLES

Table 1: Drilling Depths for Conventional, CBNG, and Shale Gas in VirginiaTable 2: New CBNG Drilling in 2006 by CountyTable 3: 10-Year Forecast Federal Drilling Per CountyTable 4: Level of Disturbance for Conventional Shallow Oil and Gas Wells and Associated

Production FacilitiesTable 5: Level of Disturbance for Conventional Deep Oil and Gas Wells and Associated

Production FacilitiesTable 6: Level of Disturbance for CBNG Wells and Associated Production FacilitiesTable 7: Predicted Development and Surface Disturbance (Exploration and Construction) for

Gas and Oil Wells

Table 8: Predicted Development and Residual Surface Disturbance (Production) for Gas and OilWells

LIST OF FIGURES

Figure 1: Geological Provinces of VirginiaFigure 2: Geologic Map of VirginiaFigure 3: Virginia Stratigraphic ChartFigure 4: Geographical Extent of Devonian Shale with Location of Cross-Section Shown in

Figure 5Figure 5: Devonian Shale StratigraphyFigure 6: Isopach Map of the Marcellus Member

Figure 7: Marcellus Gas Producing AreaFigure 8: Gas and Oil Fields of VirginiaFigure 9: Federal Acreage in VirginiaFigure 10: Virginia Annual Oil ProductionFigure 11: Oil Production in VirginiaFigure 12: Virginia Natural Gas Production & Number of Producing Wells (1997-2006)Figure 13: Virginia Gas Production by Type, 1993-2006Figure 14: Natural Gas Production Locations in 2006


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LIST OF FIGURES (continued)

Figure 15: Increasing Domestic Oil PriceFigure 16: CBNG Production by County, 1993 to 2003Figure 17: New Wells Completed by Year

ACRONYMS

ACEC Area of Critical Environmental Concern

APD Application for Permit to Drill

AU Assessment Units

BCF billion cubic feet

BLM Bureau of Land Management

BOPD barrels of oil per day

CBNG Coal Bed Natural Gas

DMME Department of Mines, Minerals, and EnergyEIA Energy Information Agency

EIS Environmental Impact Statement

EOR Enhanced Oil Recovery

ESA Endangered Species Act

EIS Environmental Impact Statement

JFO Jackson Field Office

MMBO million barrels of oil

mya million years ago

RFDS Reasonable Foreseeable Development Scenario

ROD Record of Decision

RMP Resource Management Plan

SMA Surface Management Agency

TCF trillion cubic feet

TPS Total Petroleum Systems

USFS United States Forest Service

USFWS United States Fish and Wildlife Service

USGS U.S. Geological Survey


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Summary


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1.0INTRODUCTIONThe Bureau of Land Managements JacksonField Office is located in Jackson,Mississippi, and is responsible for 11southern states: Alabama, Arkansas,

Virginia, Georgia, Kentucky, Louisiana,Mississippi, North Carolina, South Carolina,Tennessee, and Virginia. The Jackson FieldOffice manages approximately 34.25 millionacres of federal mineral estate in theeastern portion of the United State. Of thisapproximately 1.19 million mineral estateacres are located in Virginia with oil andleasing present at the George WashingtonNational Forest and the Flannagan Dam.

The Reasonable Foreseeable DevelopmentScenario (RFDS) forecasts fluid mineralexploration, development, and productionfor the planning area for the next 10 years.The RFDS assumes a baseline scenario inwhich no new policies are introduced and allareas not currently closed to leasing anddevelopment are opened for oil and gasactivity.

Interagency Reference Guide - ReasonablyForeseeable Development Scenarios andCumulative Effects Analysis for Oil and Gas

Activities on Federal Lands in the Greater

Rocky Mountain Region (USDI 2002),Policy for Reasonably ForeseeableDevelopment Scenario (RFD) for Oil andGas (BLM WO IM No. 2004-089) andPlanning for Fluid Minerals SupplementalProgram Guidance (BLM Handbook H-1624-1) guided the criteria and analysesmethods used in this RFD.

1.1 Discussion of Determining Oiland Gas Resource Potential

Potential accumulations of oil and gas aredescribed in Section 2. Non-BLM land withinthe state may be included in this sectionwhen it provides a better understanding ofresource potential on BLM property. Thesedeterminations were made using thegeologic criteria provided by reference inSection 2. Also contained in Section 2 aredescriptions of stratigraphy, structure,

historic oil and gas activities, as well asrelevant studies done in the area. Potentialreservoir rocks, source rocks, and existingstratigraphic and structural traps arediscussed in detail.

1.2 Methodology for PredictingFuture Oil and Gas Explorationand Development Activity

Section7 predicts the type and intensity offuture oil and gas exploration anddevelopment activities. These forecasts aredetermined by an areas geology, andhistorical and present activity, as well asfactors such as economics, technologicaladvances, access to oil and gas areas,transportation, and access to processing

facilities. Economics, technology, and otherfactors may be hard to predict because oftheir complex nature and rapid rate ofchange. Projections of oil and gas activitiesare based upon present knowledge. Futurechanges in global oil and gas markets,infrastructure and transportation, ortechnological advancements, may affectfuture oil and gas exploration anddevelopment activities within the state.

1.3 Relating the Potential for

Resource Occurrence toPotential for Activity

Predicted oil and gas activity does notnecessarily correlate with geologic potentialfor the presence of hydrocarbons. Althoughthe geology of an area may suggest thepossibility of oil and gas resources, actualexploration and development may berestricted by high exploration costs, low oiland gas prices, or difficulty accessing thearea due to lease stipulations. Thus a smallarea may have a high resource potential,

yet have a low exploration and developmentpotential due to severe restrictions onaccess. Conversely, technologicaladvancements or an increase in oil and gasprices could result in oil and gas activities inareas regarded as having low potential foroccurrence.


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2.0DESCRIPTION OF THE GEOLOGYOF VIRGINIA

Virginia sits directly over the junctionbetween the Atlantic Coastal Plain and the

Appalachian Mountains. As shown in thegeneralized geologic map in Figure 1, the

Allegheny Plateau, Valley and Ridge, BlueRidge, Triassic Basin, Piedmont, andCoastal Plain are all represented in Virginia.Each of these provinces more or lessextends up and down the east coast fromGeorgia to New York with Virginia more orless in the middle.

Each province is distinct in a number ofways. They have physiographical distinctfeatures, from one province to another the

landforms change and the countryside hasa different appearance. The types of rocksdiffer; they may be igneous, sedimentary,and/or metamorphic. The structure of therocks differ; they may be flat lying, or foldedand faulted. Additionally, the geologic agesof the rocks differ. The combination of thesefeatures is unique for each province, andgives each its special character.

2.1 Regional Geology

2.1.1 Allegheny PlateauThis province is located in the southwestpart of Virginia, although much of WestVirginia is composed of the plateau. Therocks here are sedimentary, flat lying, andtopographically high above sea level relativeto the rest of the state. They develop acharacteristic dendritic drainage pattern (thestream valleys keep splitting and splitting ina random pattern). That is to say thatalthough some drainages appear organized,in many places they follow no particular

pattern, especially in the southwest.

The exposed rocks are late Paleozoic inage (Devonian, Mississippian,Pennsylvanian) and in parts of WestVirginia, Permian (Figure 2 Geology ofVirginia). These rocks were deposited at atime when most of Virginia to the eastcontained major mountain ranges (Taconic,

Acadian, and Alleghenian orogenies).Underneath the Devonian rocks areadditional flat lying sedimentary rocks ofCambrian, Ordovician and Silurian age.Finally at the bottom of the pile are igneousand metamorphic Grenville basement rocks

(1.1 billion years and older) (Fichter &Baedke, 1999).

2.1.2 Valley and Ridge

This province lies east of the AlleghenyPlateau and west of the Blue Ridge; itswestern boundary is known as the

Allegheny Frontand marks an abruptchange from the flat lying rocks of theplateau to the folded/faulted rocks in thevalley and ridge. On the ground theseridges can be easily seen looking west andappear as row after row of parallelmountains and valleys (beginning with theShenandoah Valley) gives the province itsname. The underlying structures formedduring the Alleghenian orogeny.

The rocks here are sedimentary, thrustfaulted and folded into anticlines andsynclines, lower and middle Paleozoic inage (Cambrian through lowerMississippian), and have a trellis drainagepattern. A trellis drainage is when rivers are

forced to run parallel to long ridges. Theridges exist because they are underlain byhard rock that erodes less easily than thesofter rock in the valleys.

The lowest part of the stratigraphic sectionis mostly Cambrian and lower Ordoviciancarbonates (limestones and dolomites)deposited in tidal flat and coastalenvironments. Today these are bestexposed in the Shenandoah and Pagevalleys. Most of the rest of the sedimentaryrocks are sandstones and shales deposited

in deep marine basins during times whenthe Piedmont region was a large mountainrather than its present flatness.

2.1.3 Blue Ridge

The Blue Ridge province includes both theBlue Ridge mountains and the land to the


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Figure 1: Geological Provinces of Virginia

Source: Virginia Department of Mines, Minerals and Energy, 2008


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Figure 2: Geologic Map of Virginia


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east running through Galax, Charlottesville,Culpepper, and Warrenton. This is aninstance where the physiographic featuresand the geology do not exactly correspond.The geologic province is defined primarilyby the rocks underlying it, (coarse grained

igneous and metamorphic Grenvillebasement rocks) than its topography (theeastern part of the geologic province blendsin topographically with the piedmont inmany places, and appears distinct from theBlue Ridge Mountains). In northern Virginiathe Blue Ridge province extends from aboutfive miles east of Front Royal to Bull Runmountain just west of Manassas where it isabout 20 miles wide.

Structurally the Blue Ridge province is alarge, eroded anticline overturned to thewest. The core of the anticline is composedof igneous and metamorphic rockscollectively known as the Grenville, althoughthere are also late Proterozoic intrusivesand sediments present too. They are someof the oldest rocks in the state at 1.1 billionback to 1.8 billion.

The east and west flanks of the anticline aremuch younger volcanics (Crossnore event)and clastic sediments. The clasticsediments fill rift grabens on the northwest

and southeast flanks of the anticline(Lynchburg, Ocoee, Grandfather Mtn., Mt.Rogers Groups). Stratigraphic thicknessesrange from about 3000 meters to 7000meters. The final filling of the graben andcreation of a divergent continental margin ispreserved in the metamorphosed lava flows(Catoctin formation) and sedimentary rocks(Chilhowee Group and Evington formation)about 570-600 million years old.

The Crossnore igneous suite includes avolcanic pile (Mt Rogers in the south) andgranite batholiths (Robertson River)intruding into Grenville plutons.

2.1.4 Piedmont

The Piedmont, is relatively flat andtopographically featureless, but it containssome of the most fascinating rocks inVirginia. There are two distinct divisions to

the piedmont rocks, one a set of LateProterozoic and Paleozoic igneous andmetamorphic rocks, and a second of lowerMesozoic (Triassic) sedimentary rocksdeposited in graben basins faulted into theigneous and metamorphic rocks.

The Late Proterozoic and Paleozoic igneousand metamorphic rocks include three maincomponents. First, the roots of severalvolcanic island chains such as in theCharlotte/Chopawamsic belt, and Carolinaslate and Eastern slate belts; second;several small continental fragments that arepossibly Grenville in age (SauratownMountain in the south andRaleigh/Goochland belt running west ofRichmond); and third, the Inner piedmontbelt running just east of the Blue RidgeProvince.

The volcanic arcs in their day werecomparable to volcanic islands like Japan,Borneo and Sumatra, and the AleutianIslands. Many, more likely all, of theseformed somewhere else and were broughtto Virginia by later events. They are said tobe allochthonous; rocks still in the placethey formed are autochthonous.

The Grenville age rocks may bemicrocontinental fragments torn loose andleft behind during the Proto-Atlantic rifting,or continental fragments brought in fromelsewhere. They contain high grademetamorphic rocks and igneous intrusions.

The Inner piedmont belt contains rocks onthe southeast flank of the Blue Ridgeanticline. They are sediments(metamorphosed to greenschist andamphibolite) represented by theEvington/Alligator Back formations, andmafic-ultramafic igneous bodies scattered

along the whole length that represent oldoceanic lithosphere. This is most likely afragment of the Proto-Atlantic divergentcontinental margin.

In addition, numerous late Paleozoic graniteintrusions cut through the region, mostly inthe eastern half. These were generated inthe Taconic orogeny (e.g. Petersburg


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granite dated at 320 mya), and theAlleghenian orogeny. These rocks havebeen deformed and metamorphosed, oftenseveral times, therefore they are verycomplex. They also contain manyeconomically important mineral deposits,

including gold, talc, kyanite, and feldspar.

2.1.5 Triassic Basins

The lower Mesozoic sediments deposited infault basins are usually referred to asTriassic basin deposits, although they arenow known to also contain lower Jurassicrocks. These basins formed when Africaseparated from North America to create the

Atlantic ocean. The Culpepper basin in thewestern piedmont near the Blue Ridgeprovince is the largest, but numeroussmaller basins including the Richmond,Farmville, and Danville are scatteredthroughout the piedmont.

Structurally these are half-graben with amain fault only on the western side. Thesebasins can be easily recognized becausethe rocks turn red, or there are coal beds,but often the evidence is subtler.

The sediments filling the basins are ancientalluvial fan conglomerates along thewestern borders, but the deep redsediments to the east, often with fish fossilsor crisscrossed with dinosaur tracks,indicate the tropical lakes and mudflatswhich existed at the time.

Cutting into the Triassic-Jurassic sedimentsare numerous igneous dikes, stocks (smallbodies of igneous rock), and lava flows thataccompanied the volcanic activityaccompanying the opening of the Atlanticocean.

2.1.6 Costal PlainThe Costal Plain is made-up of mostlyunconsolidated or partially consolidatedsediments deposited along a coastline notsignificantly different from that which existson the coast of Virginia today. Thedeposition on the present continentalmargin is a continuation of the coastal plain

deposition which has been going on sincethe Triassic. The coastal plain sedimentsare laid down like a wedge, thick to the eastand thinning to a feather edge on the west.The Triassic basins found in the piedmontextend under the coastal plain.

2.2 Subsurface Stratigraphy andStructure

The apparent distinctness of the surfacegeology described for each province is asuperficial mask hiding the subsurfacegeology. Virtually the entire geology ofVirginia has been compressed, folded,thrust faulted, and telescoped so that mostof the rocks have been moved from theirsite of origin and stacked. The exceptions

are the Allegheny Plateau and the CoastalPlain.

For example, the Grenville igneous andmetamorphic rocks now found exposed inthe Blue Ridge also underlie most ofeastern North America, buried under thesedimentary rocks. On the other hand, theGrenville rocks in the Blue Ridge are notnow located where they originally formed.Their original location was somewhere tothe east, perhaps as far as Richmond, andthey were transported to their present

location during the Alleghenian orogenyalong a major thrust fault. Indeed most ofthe rocks in the Blue Ridge and Piedmonthave been transported from their originallocations. Furthermore, most of thepiedmont rocks are not originally part ofNorth America in the first place but havebeen added in pieces during the Paleozoic,and each of these pieces has its owntectonic history that may or may notcorrespond with the timing of the events inthe rest of Virginia, see figure 3.

On the other hand, the lower and middlePaleozoic sedimentary rocks of the Valleyand Ridge do not stop at the Blue Ridge.They extend far to the east under the BlueRidge and Piedmont. Or to put it anotherway, the piedmont and Blue Ridge havebeen thrust faulted over the Cambrian-Ordovician DCM sediments.


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Of interest to oil and gas development arethe Devonian Shale present in southwesternVirginia where it is referred to in theaggregate as the Chattanooga Shale (seestratigraphic chart in Figure 3). This thick,highly organic shale extends over most of

the Eastern US as shown in Figure 4,including the Appalachian Plateau ofVirginia.

In Virginia the Devonian Shale consists onlyof the Marcellus, the basal member of theChattanooga as shown in Figure 5. TheMarcellus is less than 50 feet thick inVirginia as shown in the isopach map inFigure 6, this thickness may not attract agreat deal of drilling in Virginia. TheMarcellus produces natural gas from wellsthat are co-mingled with conventional gas

reservoirs (Enomoto, 2008). It is unknown atthe present time how many wells areperforated in the Marcellus and how muchgas they produce from that zone. As anestimate, of the 1,487 active gas wells in thestate, 420 were drilled deep enough to fully

penetrate the Marcellus (Enomoto, 2008).While the Marcellus is an attractive gasreservoir farther north in West Virginia andPennsylvania, the shale may be too thin toconstitute an important gas target in Virginia(Durham, 2008). On the other hand, theshale appears to be present in the Valleyand Ridge Province (see Figure 6) where itmight be folded and squeezed into greaterthicknesses. As shown in Figure 7, theValley and Ridge Province has not beenexploited for the Marcellus.

Figure 3: Virginia Stratigraphic Chart

Age Formations Production

Pennsylvanian

Wise CoalNorton CBNGLee CBNGPocahontas CBNG

Mississippian

Hinton

ConventionalGas

Bluefield

GreenbrierPrice/Pocono

Devonian Chattanooga Shale-Gas

Ordovician Trenton OilSource: DMME, 2008


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Figure 4: Geographical Extent of Devonian Shalewith Location of Cross-Section Shown in Figure 5

Source: Milici, 2005

Figure 5: Devonian Shale Stratigraphy



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Figure 6: Isopach Map of the Marcellus Member


Figure 7: Marcellus Gas Producing Area

Source: DMME, 2008


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3.0SUMMARY OF USGSPLAY DESCRIPTIONS FOR THE STATE OF VIRGINIAA series of oil and gas assessments havebeen conducted for the provinces that crossVirginia as part of the 1995 USGS National

Oil and Gas Assessment (Milici, R.C., 1995& Ryder, R.T., 1995). The provinces foundin Virginia include the Appalachian Basin(067), Blue Ridge Thrust Belt (068),Piedmont (069), Atlantic Coastal Plain(070), Adirondack (071), and New England(072). Except for the Appalachian Basin,these provinces do not produce oil or gasand are not currently viewed as prospectivefor oil and gas. For each of those provinceassessments a number of conventional andunconventional oil and gas plays wereassessed which might have an impact on oiland gas exploration and production activityin Virginia.

The following is a summary of thoseprovince assessments and includes onlyvery general information relative to theplays. The primary source materials for thissummary presentation are the geologicreports for each of the provinceassessments as published by the USGSand are available at the USGS National Oiland Gas Assessment website

(http://energy.cr.usgs.gov/oilgas/noga/).Copies of the province reports (067) and068-072) are included in Appendix B.

3.1 Appalachian Basin Province(067)

The Appalachian Basin contains Paleozoicsedimentary rocks of Early Cambrianthrough Early Permian age. The basin runsnorth to south and crosses the westernedge of Virginia. The province covers anarea of about 185,500 sq mi. The provinceis 1,075 miles long from northeast tosouthwest and between 20 to 310 mileswide from northwest to southeast. There area number of conventional andunconventional plays that have beenexplored in the basin since the discovery ofoil in 1859 at Drake well in Venango

County, Pennsylvania. The oil and gasplays in Virginia include the following:

6702 Upper Cambrian, Ordovician,

And Lower/Middle Silurian ThrustBelt Play

6703 Beekmantown/Knox CarbonateOil/Gas Play

6706 Trenton/Black RiverCarbonate Oil/Gas Play

6716 Upper Silurian SandstoneGas Play

6717 Silurian Carbonate Gas Play

6718 Silurian And DevonianCarbonate Thrust Belt Play

6719 Devonian Carbonate GasPlay

6720 Oriskany SandstoneGas/Faulted Anticlines Play

6721 Oriskany Sandstone Gas

6725. Mississippian AndPennsylvanianSandstone/Carbonate Play

6727 Tuscarora Sandstone GasPlay

6731 Clinton/Medina SandstoneGas Low Potential Play

6732 - Clinton/Medina SandstoneOil/Gas Play

6735 - Upper Devonian SandstoneGas Medium-Low Potential Play

6740. Devonian Black ShaleGreater Big Sandy Play

3.2 Coalbed Gas Plays

Coalbed gas plays in the Appalachian Basincan be divided into three northeast-southwest trending basins for purposes ofcoal geology. These include the Northern,Central, and Cahaba (plays 6750 6753).With regards to Virginia only the Central


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Appalachian Coal Basin is present andcontains one coalbed gas play, CentralBasin Play (6752) (Rice and Finn 1995).

Based on the total gas in place per section,the play can be divided into two areas,

which is the result of coal thickness, depth,and gas content. The central area has thickcoal beds and occurs at depths greater than1,000 ft deep indicating higher gas content.Gas in-place is estimated at as much as fiveBCF per sq mi. Located in southwestVirginia are the Nora and Oakwood fieldswhich are part of the central area.

The central part is surrounded by othermajor seams, such as the Pocahontas No. 3and 4, and War Creek. These other areasare generally thinner and shallower. The

gas in-place estimate by volume is less thanone BCF per sq mi. A few wells in theRoaring Fork field have been drilled in thisplay, otherwise it is essentiallyundeveloped. The undiscovered potentialfor this play is considered to be good,although the production rates for individualwells will probably be lower than for thecentral area. The potential for additions toreserves for this entire play is considered tobe very good.

3.3 Hypothetical Plays in VirginiaThere are two hypothetical plays that havepotential development areas within Virginia.These are the Southern Appalachian Sub-Thrust Sheet Play (6801) and the EastCoast Mesozoic Basins Play (6901).

The Southern Appalachian Sub-thrust SheetPlay is a hypothetical high-risk play locatedalong the leading edge of the southern

Appalachian thrust sheet in the Blue ThrustBelt Province, mainly in southern Virginiaand eastern Tennessee. A formal

assessment for this play was not conductedbecause of the lack of evidence for potentialsource rocks and reservoirs. Moreinformation is available in Appendix B.

The East Coast Mesozoic Basins Play islocated beneath the Atlantic Coastal Plain innorthern Florida, Georgia and Alabama andextends northeastward along the Atlanticcoastal margin to southern New England.The East Coast Mesozoic Basins areassessed collectively as a single play thatoccurs in parts of four distinct provinces, the

Atlantic Coastal Plain, Blue Ridge, NewEngland and Piedmont provinces. The playalso extends eastward onto the outercontinental shelf. The play contains about113,000 sq mi, and is approximately 900miles long and 100140 miles wide. TheEast Coast Mesozoic Basins that haveportion in Virginia including the Culpeper,Dan River-Danville, Richmond, andTaylorsville basins however none haveshown any promise for large scale oil or gasdevelopment. See appendix B for a moredetailed discussion regarding these plays.

3.4 Unconventional Plays

There are no unconventional playsdescribed in the Province Reports.


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4.0PAST AND PRESENT OIL AND GAS EXPLORATION ACTIVITY

4.1 Geophysical and GeochemicalSurveys

No extensive geophysical or geochemicalsurveys have been undertaken in Virginia inrecent years other than individual seismicoperations targeted at specific explorationtargets generated off of surface orsubsurface geologic studies.

4.2 Exploratory Drilling andSuccess Rates

At the present time and for the foreseeablefuture, hydrocarbons are confined to the

Plateau Province as illustrated in Figure 8,map of oil and gas fields in the state. Asshown in Figure 8, oil and gas is largelyconfined to the Appalachian Plateau exceptthe abandoned Bergton gas field. TheRichmond and Taylorsville basins are alsoshown in Figure 8; these basins have hadshows of oil and gas but have neverproduced. Figure 9 plots the distribution ofFederal lands across the state.

The success rates are difficult to statisticallyconfirm because there are not good records

4.2.1 Mesozoic Basins

During the Triassic, extensive rifting alongthe Atlantic Margin of North America gaverise to a number of small to medium-sized,fault-bounded rift basins that are seen fromFlorida to Nova Scotia both onshore andoffshore. Scattered bore-holes have beendrilled in these basins although no oil or gashas been produced; the most thoroughlyexplored of the Mesozoic basins are theRichmond and Taylorsville basins, both inVirginia (USGS, 1995b). Most of thesedimentary section in these basins isterrestrial in nature although somelacustrine strata are also present including

organic shales and coals, which couldfunction as source rocks under the rightconditions.

The Richmond Basin, Virginia, has beendrilled extensively for coal, oil, and gas.Between 1897 and 1985, 38 exploratoryholes were drilled in the basin. Of the 38holes, 22 were drilled to depths of 1,000feet or more. The deepest hole, Cornell OilCompany No. 1 Bailey, encountered granitebasement at 7110 feet and was drilled to atotal depth of 7,438 feet. The hole drilledseveral coal beds, but saw no oil or gas. Ofthe remaining deep holes, 6 had shows ofliquid and/or gaseous hydrocarbons.

Subsequently, industry has conducted atleast two core-drilling campaigns for coalalong the margins of the basin. The holesapparently were abandoned because ofexcessive disruption of the coal beds byfaulting. Extensive drilling in this relativelysmall basin indicates that the chances offinding significant amounts oil or gas thereare likely minimal.

The Taylorsville Basin, Virginia, has alsobeen the subject of limited industry interestand exploration. In 1986, Texaco, Inc.

drilled 5 diamond core holes in the basineach to a depth of 5,500 feet, apparently thelimit of the drilling rig. A sixth holeencountered crystalline basement at about3,533 feet. The core holes were followed in1989 by a deep test, the Texaco W. B.Wilkins et ux No. 1, which was drilled intobasement at a total depth of 10,135 feet.Three of the core holes and the deep testhad indications of oil and gas (USGS,1995b).

4.3 New Field and Reservoirs

There have been no new fields or reservoirsdiscovered in Virginia in the past decade.


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Figure 8: Gas and Oil Fields of Virginia

Source: DMME, 2007

Figure 9: Federal Acreage in Virginia


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5.0OIL AND GAS ACTIVITY IN VIRGINIAThis section deals with the current status ofoil and gas activity in Virginia based oninformation provided by both public andprivate sources. Information includes;

leasing activity, well spacing requirements,drilling permits by county, drilling practices,production statistics, oil and gascharacteristics, oil and gas prices,operational costs (drilling and completion),conflicts with other mineral development,and gas storage fields.

5.1 Leasing Activity

Leasing activity in Virginia has been slightover the past decade (Wilson, 2008).There

are few minor tracts available, most trendacreage has been leased.

5.2 Well Spacing Requirements

Well spacing requirements for oil and gaswells drilled in Virginia are subject to therules and regulations of the Virginia Gasand Oil Act, Title 45.1 Mines and Mining.Spacing requirements fall under those setby specific regulation under 45.1-361.17.Generally spacing for oil wells is set at1,250 feet from any well completed in the

same pool and 625 feet from the propertyboundary. General gas well spacing is2,500 feet from any well completed in thesame pool and 1,250 feet from the propertyboundary. CBNG wells can be placed 1,000feet from any other CBNG well and 500 feetfrom the property boundary. Field rulesissued by the Virginia Department of MinesMinerals and Energy can be modified underChapter 160 Virginia Gas and Oil BoardRegulations following the procedureoutlined in 4 VAC 24-160-60Applications

for exception to minimum well spacingrequirements.

5.3 Drilling and CompletionStatistics

5.3.1 Drilling Practices

The DMME reports that only a very fewhorizontal or directionally drilled holes have

been done in the state. As of 2006 (thelatest year with complete records) therewere four active horizontal wells. During2006 four horizontal wells were permitted,one was completed as a gas well, one wasdry and abandoned, the other two areunknown (DMME, 2008). As a comparison,over 25% of CBNG wells drilled in WestVirginia have been horizontals (Avery,2008). Drilling depth to CBNG, Big Lime,Berea, and Marcellus targets are shown inTable 1 for the more promising counties in

the Appalachian Plateau. Although thedepths are variable, it appears that CBNGwells are usually less than 3,000 feet indepth while shale gas wells are drilled todepths approaching 7,000 feet.

Table 1: Drilling Depths forConventional, CBNG, and Shale Gas in

Virginia

CountyCoalTop

BigLime

Top

BereaSand

Top

MarcellusShale Top

Wise 4,700 5,400 6100

Buchanan2,500

to5,000

3,500 4,100 5,900

Dickenson 3,300 4,200 5,800

Russell1,300

to2,500

5,300 6,500

Tazewell600 to2,100

3,200

Source: DMME, 2008

5.3.2 Drilling and Completion CostsDrilling costs and well completion costs varyby depth, reservoir, and completion practicefor the specific reservoir to be produced.Very generalized costs associated with oilproduction areas in the state suggest thatwell costs for deep (>6,000 fbs) are in theorder of approximately $300,000 to 500,000for drilling costs and $50,000 to $100,000


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Virginia Annual Oil Production

0

5,000

10,000

15,000

20,000

25,000

30,000

1/1/1900 1/2/1900 1/3/1900 1/4/1900 1/5/1900 1/6/1900 1/7/1900 1/8/1900

BbblsperYear

0

5

10

15

ActiveWells

1999 2000 2001 2002 2003 2004 2005 2006

for completion costs (Hall, 2008). CBNGwells are drilled to relatively shallow depthsof


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Figure 11: Oil Production in Virginia

Source: Virginia Department of Mines, Minerals and Energy

Figure 12: Virginia Natural Gas Production & Number of Producing Wells (1997-2006)

0

1,000

2,000

3,000

4,000

5,000

6,000

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Years

NumberofProducingwells

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

DryGasproduction(MCF)

Number of Producing Wells Dry Gas Production (million cubic feet)

Source: DMME 2008


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Figure 13: Virginia Gas Production by Type, 1993-2006

Source: DMME, 2008

5.5 Oil and Natural GasCharacteristics

5.5.1 Natural Gas

Natural gas is a mixture of methane (CH4),ethane (C2H6), propane (C3H8), and carbondioxide (CO2). The major markets fornatural gas are residential and commercialuses such as space heating, water heatingand cooking, and industrial uses such asprocess heating and chemical feedstock,transportation, and electric powergeneration. The three types of natural gasproduced in Virginia are: conventional gas,which has migrated from an organic source

rock to a porous or fractured reservoir rock;shale gas, and coal bed natural gas. Figure14 identifies the natural gas productionareas in Virginia by type.

Conventional gas is produced fromMississippian (323 to 354 millionyears old) limestones andsandstones of the Appalachian

Basin, in the Appalachian PlateauProvince.

Shale gas is sourced andreservoired in the thick Devonian

(354 to 417 million years old) shalesof the Appalachian Plateau.

Coal Bed Natural Gas (CBNG) isproduced from the coal seams in theNorton, Lee (New River), andPocahontas Formations ofPennsylvanian age (290 to 323million years old) in the samephysiographic region.

5.5.2 Crude Oil

Crude oil produced in Virginia varies in colorand in odor by area and by individualreservoir; however the overall quality of theoil does not appreciably vary acrossgeographic regions or reservoirs and isconsidered to be consistent Pennsylvanian.Crude oils consistent with Pennsylvaniagrade crude oil are thermally stable and


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Figure 14: Natural Gas Production Locations in 2006.

Source: DMME, 2008

generally have a high viscosity index. Onlyvery limited specific information as to thegravity of Virginia produced crude oil isavailable. The crude oil produced fromTrenton Limestone is amber in color andvolatile, with a gravity of 43-48 degrees API(Nolde, 1992).

5.6 Oil and Gas Prices

Figure 15 plots the domestic price of oil overthe past 60 years. Increases have beendramatic, especially during the past tenyears; this rise in price has fueled theincreases in exploration and production.Current price of oil and gas and theresultant economics are certainly attractiveto operators but no new Virginia production

has been brought on line in over 20 years.Both crude oil and natural gas prices aregenerally expected to remain strong for theforeseeable future.

5.7 Conflicts with Other MineralDevelopment

Mineral development in Virginia is extensiveand involves in addition to oil and gas anumber of different mineral resources.These industries are important to Virginiaseconomy and contribute to an annualcombined total value of mineral and fossilfuel production ranging from $1.77 billion in1999 to $2.09 billion in 2003. Of this, coalaccounted for 46 percent of total production,aggregate (crushed stone, constructionsand, and gravel) for 24 percent, naturalgas and oil for 19 percent, and industrialminerals for 11 percent. Virginias mineralindustries have national significance as theyare the only state to produce kyanite andranked second nationally in feldspar,ilmenite, zirconium, and vermiculiteproduction.

Mineral resources produced in Virginiabesides liquid fossil fuels include: ClayMaterials, Coal, Crusted Stone, DimensionStone, Feldspar, Gemstones, Gypsum,Heavy Mineral Sands, Industrial Sand, Iron-Oxide Pigments, Kyanite, Lime, Salt, Sandand Gravel, and Vermiculite. Informationcontain in this mineral summary is from the


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USGS 2004 Mineral Yearbook and from theVirginia Division of Mineral Resources(Open File Report 05-04) see appendix Afor a copy of this report.

Coal is the dominate estate and can block

the development of CBNG gas wells. ACBNG operator must have permission fromthe coal mine to fracture a well within 750feet of the mine boundary. These competingresources are often found in proximity toone another in Virginia however theoperators have learned to work togetherand even benefit one another in somecircumstances. Benefits include removal ofwater and gas prior to mining of the coalreducing the burden for the mining

operation, and the disposal of producedwater to the mine operator for dust control.

5.8 Gas Storage Fields

EIA gas storage data for 2006 indicates that

there are three active gas storage fieldsoperating in the State of Virginia (EIAwebsite, Natural Gas Storage, Form EIA-191 Data, 2007). These storage fieldsconsist of two salt caverns and onedepleted field. The salt caverns have have acapacity of 6,275 mcf, while the depletedfield holds 3,417 mcf.

Figure 15: Increasing Domestic Oil Price

Historical Oil Price (Uninflated)

$0.00

$10.00

$20.00

$30.00

$40.00

$50.00

$60.00

$70.00

1940 1950 1960 1970 1980 1990 2000 2010 2020

PerBbl

Source: IOGA, 2008


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6.0OIL AND GAS OCCURRENCE POTENTIAL

6.1 Existing oil and gas production

6.1.1 Natural Gas Production

According to the EIA, Virginia ranked 20thamong the states for natural gas production,and provided less than 1 percent of U.S.gas production in 2003 (EIA, Quick Stats,Top Natural Gas Producing States, 2003). Arecord total of 102.8 billion cubic feet (bcf)of natural gas was produced in Virginia in2006. Gas production has experienced anupward trend since 1980, and hasincreased 277 percent from 1993 to 2006.The increase was related to growth inCBNG production, which reached a record

yearly total of 81.4 bcf in 2006. Most of thegrowth took place in Buchanan County,where gas production increased from 17.5bcf in 1993 to 57.2 bcf in 2006.Conventional gas production rate hasremained relatively flat in the past elevenyears. As shown in Figure 4, the productiveareas of conventional and CBNG overlap in

the Appalachian Plateau Province of thestate.

CBNG has been produced in significant

amounts in Virginia since 1990 when thestate adopted a version of force-pooling toeliminate the uncertainties of CBNG gasownership. Prior to that time, it was oftenunclear who owned the natural gas withincoal seams. Since then, CBNG has beenexploited to depths in excess of 5,000 feetwith aggregate coal thicknesses as high as19 feet (USGS, 1995a). Figure 16 graphsthe CBNG production by county from 1993to 2006.

There has been only one occurrence of

hydrocarbons outside of the AppalachianPlateau, the Bergton gas field inRockingham County was discovered in1935 when the operator drilled three wellsinto Devonian "Oriskany" sands. By 1965,five gas tests had been completed and shut-in. Five more gas wells were later

Figure 16: CBNG Production by County, 1993 to 2003

Source: Gilmer et al, 2005


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completed and connected to a pipeline by1982. Approximately 196,160 mcf wereproduced in 1982 and the field shut-in until1984. A new operator produced the fieldfrom 1984 until 1986, when 4,503 mcf ofgas were produced. There has been no

reported production from Bergton Field orRockingham County since 1986 (Milici,1990). The history of this field suggests thatlittle natural gas will be produced outsidethe Appalachian Plateau in Virginia.

6.2 Oil Production

In 2006, Virginia ranked last in crude oilproduction with less than 1 percent of U.S.production and has less than 1 percent of

U.S. crude oil proved reserves. There wereapproximately 18,500 barrels of crude oilproduced in Virginia, with an estimatedvalue of just over a million dollars (EIAsU.S. average nominal first purchase pricefor crude oil in 2006). Annual oil production

in Virginia peaked in 1983 at 65,400 barrels.It has since declined reaching a low of8,804 barrels in 1999. Between 1999 and2002, annual production increased 185percent, to a high of 25,110 barrels. Theincrease in production in 2002 was relatedto production completions in several gaswells that were also capable of producingoil, but were classified as gas wells becauseof their high gas to oil production ratio.


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7.0OIL AND GAS DEVELOPMENT POTENTIAL

7.1 Relative Oil and GasDevelopment Potential

Six counties in Virginia hold all the oil andgas activity currently underway. Newlycompleted wells are graphed in Figure 17.These wells may not have been drilled ineach year but were completed and saw firstproduction in that year. Clearly CBNGactivity is still accelerating but conventionalgas (including shale gas) is rather quiet.The lions share of the activity in the nextten years will come from CBNG. Table 2lists the CBNG activity in the six counties ofSW Virginia in terms of total gas wells andnew CBNG wells. Forecast activity is

generated by extending 2006 activity for allten years except for Lee County that hasminimal activity and is expected to continueto do so in the next ten years.

New drilling forecast for the next ten yearsare summarized on Table 3. The tableemphasizes that the largest proportion offederal land is in Wise County but fewoverall wells are forecast for Wise County.The largest number of new wells is forecastfor Buchanan County but this countycontains few federal lands. Most of theforecast drilling should occur in DickensonCounty and most of these wells will beshallow CBNG wells.

Figure 17: New Wells Completed by Year

New Wells in Virginia2000 to 2006

0

200

400

600

800

1,000

1 2 3 4 5 6 7

Gas wells

CBM Wells

2006 2005 2004 2003 2002 2001 2000


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Table 2: New CBNG Drilling in 2006 by County

CountyTotal ActiveGas Wells in

2006

Total ActiveCBNG Wells

New CBNGWells Added in

2006

Projected NewWells in the

Next Ten Years

Lee 37 0 0 10Wise 590 107 8 80

Tazewell 329 282 33 330

Russell 376 368 38 380

Dickenson 1,528 993 94 940

Buchanan 2,311 1,927 131 1,310

State Total 5,171 3,677 304 3,050

Table 3: 10-Year Forecast Federal Drilling Per County

CountyTotalAcres

TotalForecast

Wells

USFSAcres

OtherFederalAcres

USFSPercentage

OtherFederal

Percentage

ForecastUSFSWells

ForecastOther

FederalWells

Lee 279,743 10 38,020 7,479 13.59 2.67 1 0

Wise 259,120 80 133,699 696 51.60 0.27 41 0

Tazewell 332,468 330 69,572 - 20.93 0.00 69 0

Russell 304,902 380 8,035 - 2.64 0.00 10 0

Dickenson 213,390 940 31,420 4,081 14.72 1.91 138 18

Buchanan 322,232 1,310 156 - 0.05 0.00 1 0

StateTotal

1,711,854 3,050 280,902 12,256 16.41 0.72 261 18


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8.0REASONABLE FORESEEABLE DEVELOPMENT BASELINE SCENARIOASSUMPTIONS AND DISCUSSION

This RFD scenario assumes that allpotentially productive areas are open underthe standard lease terms and conditionsexcept those areas designated as closed toleasing by law, regulation, or executiveorder. The areas closed to leasing typicallyinclude Areas of Critical EnvironmentalConcern (ACECs), Wilderness Study Areas(WSAs) and USFWS Wildlife Refuges. TheRFD scenario contains projections for thenumber or wells and acres disturbed forthese counties. This in no way is intended toimply that the BLM are making decisionsabout the Forest Service lands or theUSFWS lands. The predictions are intendedto provide the information necessary so thatall potential cumulative impacts can beanalyzed. The disturbance for each well isbased on the typical depth of wells for anarea; generally, shallow gas wells disturbfewer acres than deeper oil wells. Theassumptions for conventional oil and gasare as follows:

The number of wells was calculated basedon historical statistics and data trends asfollows:

Wells drilled to date were taken from theVirginia Bureau of Mines and MineralRegulation annual reports.

The number of wells drilled to date wasstatistically analyzed to calculate amedian per year wells drilled per county.

The data trends associated with the last9 years (1999-2007) represents a moreaccurate estimate of future developmenttrends than historical data, thus, it isweighted more heavily.

The data trends from 1992 to presentdata set are a more accurate estimate offuture trends than the completehistorical record and were weightedmore heavily than the historical record.

The data trends for the completehistorical record represent the leastaccurate estimate of future developmenttrends and, thus, it was weighted thelightest.

For each geographic/geologic boundaryregion and sub region, the calculatedestimates for future development weresummed to obtain a per year well count.

Wellhead oil and gas prices are adriving force for well drilling andcompletion; current prices arehistorically high and have resulted inincreased activity throughout moststates. An estimate of activity for thefuture well development to intoconsideration this influence. Theforecast assumes wellhead oil and gasprices will remain high and developmentover the next 10 years will continue atan elevated rate.

Estimates of well counts for the differentmineral ownership entities are based onspatial analysis of the percent of mineralownership within each county times the

total number of producing wellsanticipated to be developed in thatboundary area.

The average acreage figure (acres perwell) for the resource area was used toestimate federal disturbed acres.

The RFD projections have a 10-year life.

The number of dry holes wasdetermined based on historic analysis ofdry holes in the geologic boundaryareas.

The assumptions were used to calculate thenumber of wells to be drilled, the number ofin-field compressors, and the number ofsales compressors required.


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9.0SURFACE DISTURBANCE DUE TO OIL AND GAS ACTIVITY ON ALL LANDS

9.1 Surface Disturbances

Estimates of the surface disturbancesassociated with the development of oil and

gas on federal minerals within the State ofVirginia were determined from a variety ofresources, including previous oil and gasenvironmental assessments, discussionswith BLM and state oil and gas personnel,discussions with various operators, anddocument review.

The level of disturbance associated withconventional oil and gas developmentvaries depending on the depth of the welland type of well drilled (horizontal vs.

vertical). A shallow oil and gas well (


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Table 4

Level of Disturbance for Conventional Shallow Oil and Gas Wells and AssociatedProduction Facilities

FACILITIES

Exploratory

WellDisturbance(acres/well)

ConstructionDisturbance(acres/well)

Operation/

ProductionDisturbance(acres/well)

Well Pad (300-foot by 300-foot pad during drillingand construction, 175-foot by 175-foot pad duringoperation) 2.07 2.07 0.70

Access Roadsto Well Sites

Two-track (12-foot wide by0.25 miles long) 0.36 N/A N/A

Graveled (20-foot wide by 0.10miles long for construction andoperation) N/A N/A 0.24

Bladed (20-foot wide by 0.10miles for construction and

operation) N/A 0.24 0.0

Utility Lines

Water lines (15-foot by 0.20miles) N/A 0.18 0.0

Overhead Elec. (10-foot by0.15 miles) N/A 0.12 0.03

Underground Elec. (15-foot by0.20 miles) N/A 0.36 0.0

TransportationLines

Intermediate Press. Gas line toand from field compressor (15-foot by 0.1 miles) N/A 0.18 0.045

High Press. Gas or Crude OilGathering Line (20-foot by0.25 miles) NA 0.61 0.15

ProcessingAreas

Tank Battery (one 0.50-ac tankbattery per 20 wells) N/A 0.025 0.025Access Roads (25-foot by 0.05miles) N/A 0.15 0.15

Field Compressor (0.5-acrepad per 20 wells) N/A 0.025 0.025

Sales Compressor (2-ac padfor 150 wells) N/A 0.01 0.01Sales Line (20-foot by 5 milesper 200 wells) N/A 0.061 0.015

Produced Water

Management

Produced Water pipeline (15-foot by 0.25 miles) N/A 0.45 0.11

Water plant/ Inj well (6 ac siteper 20 wells) N/A 0.3 0.3

Total Disturbance per Conventional Oil or GasWell (acres)

2.43 4.79 1.81

1. The operation disturbance for utilities assumes all utilities will be completed underground, and the land surface will bereclaimed so that no disturbance should remain except where noted.

2. It is assumed that each conventional oil and gas well will need product pipeline and produced water line from the well. Inaddition, some wells will need intermediate pipeline run from the field compressor to sales line.


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Table 5Level of Disturbance for Conventional Deep Oil and Gas Wells and Associated

Production Facilities

FACILITIES

ExploratoryWell

Disturbance(acres/well)


Operation/ProductionDisturbance(acres/well)

Well Pad (375-foot by 375-foot pad during drillingand construction, 200-foot by 200-foot pad duringoperation) 3.23 3.23 0.92

Access Roadsto Well Sites

Two-track (12-foot wide by 0.5miles long) 0.73 N/A N/AGraveled (20-foot wide by0.075 miles long forconstruction and operation) N/A N/A 0.18Bladed (20-foot wide by 0.075miles for construction and

operation) N/A 0.18 N/A

Utility Lines

Water lines (12-foot by 0.20miles) N/A 0.29 0.0

Overhead Elec. (10-foot by0.075 miles) N/A 0.09 0.023

Underground Elec. (15-foot by0.20 miles) N/A 0.36 0.0

TransportationLines

Intermediate Press. Gas line toand from field compressor (15-foot by 0.075 miles) N/A 0.14 0.034High Press. Gas or Crude OilGathering Line (25-foot by 0.5miles) NA 1.21 0.30

ProcessingAreas

Tank Battery (one 0.50-ac tank

battery per 15 wells) N/A 0.03 0.03Access Roads (25-foot by 0.05miles) N/A 0.15 0.15

Field Compressor (0.5-acrepad per 15 wells) N/A 0.03 0.03Sales Compressor (2-ac padfor 150 wells) N/A 0.01 0.01Sales Line (25-foot by 6 milesper 150 wells) N/A 0.12 0.12

Produced WaterManagement

Produced Water pipeline (15-foot by 0.25 miles) N/A 0.45 0.11Water plant/ Inj well (6 ac siteper 15 wells) N/A 0.40 0.40

Total Disturbance per Conventional Oil or GasWell (acres) 3.96 6.71 2.24

1. The operation disturbance for utilities assumes all utilities will be completed underground, and the land surface will bereclaimed so that no disturbance should remain except where noted.

2. It is assumed that each conventional oil and gas well will need product pipeline and produced water line from the well. Inaddition, some wells will need intermediate pipeline run from the field compressor to sales line.


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Table 6Level of Disturbance for CBNG Wells and Associated Production Facilities

FACILITIES Exploratory WellDisturbance(acres/well)


Operation/ ProductionDisturbance (acres/well)

Well Pad (250-foot by 250-foot pad duringdrilling and construction, 175-foot by 175-footpad during operation)

1.43 1.43 0.70

Access Roads/Routes to WellSites

Two-track N/A 0.45 0.45

Graveled N/A 0.60 0.60

Bladed 0.75 0.0 0.27

Utility Lines

Water N/A 0.35 ----1

Overhead Elec. N/A 0.20 0.20

Underground Elec. N/A 0.35 ----

Transportation

Lines

Low Pressure Gas N/A 0.90 ----

Intermediate Pres. Gas N/A 0.25 ----

Processing Area

Battery Site N/A 0.020 0.020

Access Roads N/A 0.15 0.15

Field Compressor N/A ---- 0.02 (0.5 acres / 24producing wells)

Sales Compressor N/A ---- 0.005 (1.0 acres / 240producing wells)

Plastic Line N/A ---- 0.52

Gathering Line N/A ---- 0.25

Sales Line N/A ---- 0.075

Produced WaterManagement

Discharge Point N/A 0.01 0.002

Storage Impoundment N/A 0.3 0.25

Total Disturbance 2.18 5.01 3.22

1. The operation disturbance for utilities assumes all utilit ies will be completed underground, and the land surface will be reclaimed sothat no disturbance should remain except where noted.

2. Plastic lines within the processing area are assumed to disturb an average corridor with of 25 feet.

may be too steep so that realignment isnecessary.

Roads can be permanent or temporary,depending on the success of the well. Theinitial construction can be for a temporaryroad; however, it is designed so that it canbecome permanent if the well produces. Notall temporary roads constructed arerehabilitated when the drilling stops. Atemporary road is often used as access to

other drill sites. The main roads andtemporary roads, require graveling to be

maintained as all-weather roads. This isespecially important in the spring. Accessroads may be required to cross public landsto a well site located on private or statelands. The portion of the access road onpublic land would require a BLM right-of-way.


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Most conventional wells are drilled from afixed platform while the majority of CBNGwells are drilled using a truck-mounted rig.Site preparation generally takes about aweek before the drill rig is assembled. Formoderate depth oil wells drilling generally

takes 2 to 4 weeks, although deeper wellsmay require longer drilling time because ofthe geologic formations encountered. Wellsdrilled from a platform require more surfacepreparation and cause disturbance to alarger area for the ancillary facilities. CBNGwells are usually drilled in under a week andsite preparation is typically less than forconventional wells.

Approximately 1 to 4 acres are impacted bywell site construction. The area is cleared oflarge vegetation, boulders, or debris. Thenthe topsoil is removed and saved forreclamation. A level area from 1 to 4 acresis then constructed for the well site, whichincludes the reserve pit.

The well pad is constructed by bulldozersand motor scrapers. The well pad is flat (toaccommodate the drill rig and supportequipment) and large enough to store all theequipment and supplies without restrictingsafe work areas. The drill rig must be placedon cut material rather than on fill material

to provide a stable foundation for the rig.The degree of cutting and filling depends onterrain; that is, the flatter the site, the lessdirt work is required.

Hillside locations are common, and theamount of dirt work varies with thesteepness. A typical well pad will require acut 10 feet deep against the hill and a fill 8feet high on the outside. It is normal to havemore cut than fill to allow for compaction,and any excess material is then stockpiled.Eventually, when the well is plugged andabandoned, excavated material is put backin its original place.

Reserve pits are normally constructed onthe well pad. Usually the reserve pit isexcavated in cut material on the well pad.The reserve pit is designed to hold drillcuttings and used drilling fluids. The sizeand number of pits depends on the depth of

the well, circulating system and anticipateddown hole problems, such as excess waterflows.

Reserve pits are generally square oroblong, but may be irregular in shape to

conform to terrain. The size of reserve pitsfor deeper wells can be reduced by the useof steel mud tanks. For truck-mounted drillrigs used in shallow gas fields, a small pit(called the blooie pit) is used. Most or all ofthe reserve pit is located in the cut locationof the drillsite for stability. When the drillsiteis completed, the rig and ancillaryequipment are moved on location anddrilling begins.

The reserve pit can be lined with a syntheticliner to contain pit contents and reduce pit

seepage. Not all reserve pits are lined;however, BLM often requires a syntheticliner depending upon factors such as soils,pit locations, ground water and drilling mudconstituents. The operator can elect to linethe reserve pit without that requirement.

An adequate supply of water is required fordrilling operations and other uses. Thesources of water can be a well at the drillsite or remote sources such as streams,ponds, or wells. The water is transported tothe site by truck or pipeline. Pipelines arenormally small diameter surface lines. Theoperator must file for and obtain allnecessary permits for water from the state.On public lands an operator must have theBLMs permission before surface water canbe used.

9.3 Mitigation Measures

Mitigation measures are restrictions onlease operations, which are intended tominimize or avoid adverse impacts to

resources or land uses from oil and gasactivities. The mitigation measures would beapplied to permits, leases or approvalsgranted by the land management agency.Mitigation measures would be included asappropriate to address site-specificconcerns during all phases of oil, gas andCBNG development.


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9.4 Conditions of Approval

An approved application for permit to drill(APD) includes conditions of approval(COA), and Informational Notices which citethe regulatory requirements from the Code

of Federal Regulations, Onshore OperatingOrders and other guidance. Conditions ofapproval are mitigation measures whichimplement lease restrictions to site specificconditions. General guidance for COA arefound in the BLM and U.S. Forest Servicebrochure entitled Surface OperatingStandards for Oil and Gas Exploration andDevelopment (USDI, BLM 1989) and BLMManual 9113 entitled Roads.

9.5 Lease Stipulations

Certain Resources in the planning arearequire protection from impacts associatedwith oil and gas development. The specificresources and methods of protection arecontained in lease stipulations. Leasestipulations usually consist of no surfaceoccupancy, controlled surface use, or timinglimitations. A notice may be included with aleased to provide guidance regardingresources or land use. While actual wordingof stipulations may be adjusted at the timeof leasing, the protection standard

described will be maintained.

9.6 Total Disturbances

The disturbances for the RFD scenario overthe next 10 years have been calculated andare displayed in Tables 7 and 8. Table 7address the disturbances from exploration

and construction activities for types of gasand oil wells anticipated to be developed.Estimates for deep gas and oil wells from asingle pad have been extrapolated. Thetotal disturbances for all predicted wells areestimated at 14,415 acres. Disturbancefrom federal mineral development would be1,257 acres of which 1,177 acres would beon USFS lands. The remaining federaldisturbance (80 acres) would be on militarysites, and national park lands. Thedisturbance to state and fee lands would be

12,493 acres.

Table 8 depicts the residual disturbance bywell type remaining after appropriatemitigation measures and site restoration orrehabilitation activities have taken place.The total residual disturbance fromanticipated development activities is 8,826acres of which 807 would be from federalmineral development. The federaldisturbances would affect 755 USFS acresand 52 acres of various surface agencies.State and fee residual disturbance would be8,019 acres.

The mitigation of initial exploration andconstruction disturbances would equalnearly 5,590 acres. Mitigation measureswould account for remediation of 450federal acres, and 4,474 state and feeacres.


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Bureau of Land Management Jackson Field Offic

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Table 7: Predicted Development and Surface Disturbance (Exploration and Construction) for Gas and Oil Wells

Well Type

TotalWellsDrilled

DryHoles

Disturbanceper Dry

Hole

Total DryHole

Disturbance

FederalProducing

Wells

Disturbanceper Federal

Well

TotalFederal

Disturbance

State/FeeProducing

Wells

Disturbanceper

State/FeeWell

TotalState/Fee

Disturbance

USFSProducing

Wells

Disturbanceper USFS

WellTotal USFSDisturbance

TotalProducing

wellsTotal

Disturbance

Gas - Shallow 10 1 2.43 2.43 0 4.79 0 8 4.79 38.32 1 4.79 4.79 9 45.54

CBNG 3,040 304 2.18 662.72 16 5.01 0 2,486 5.01 12,454.86 234 5.01 1,172.34 2,736 14,370.08

Total 3,050 305 665.15 16 2,494 12,493.18 235 1,177.13 2,745 14,415.62

Assumptions:

Disturbance per well includes the well pad plus incremental roads, utility lines, transportation lines, processing equipment areas, and produced water management as outlined in Tables 4 and 6 for exploration.

Table 8: Predicted Development and Residual Surface Disturbance (Production) for Gas and Oil Wells

Well Type

TotalWellsDrilled

FederalProducing

Wells

Disturbanceper Federal

Well

TotalFederal

Disturbance

State/FeeProducing

Wells

Disturbanceper

State/FeeWell

TotalState/Fee

Disturbance

USFSProducing

Wells

Disturbanceper USFS

WellTotal USFSDisturbance

TotalProducing

wellsTotal

Disturbance

Gas Shallow 10 0 1.81 0 8 1.81 14.48 1 1.81 1.81 9 16.29

CBNG 3,040 16 3.22 51.52 2,486 3.22 8,004.92 234 3.22 753.48 2,736 8,809.92

Total 3,050 16 51.52 2,494 8,019.40 235 755.29 2,745 8,826.21

Assumptions:

Disturbance per well is the residual disturbance remaining after the mitigation measures have been implemented.


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May 2008Page 33

10.0 REFERENCESAvery, K. L., 2008. Personalcommunication between Dr. Langhus,Geologist, ALL Consulting and KatharineLee Avery of the West Virginia Geological

Survey, April 2008.

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03/002+3100/REV06, 2006.Fichter, Lynn S. & Baedke, Steve J.1999, James Madison University, College ofScience and Mathematics, Department ofGeology and Environmental Studies,http://csmres.jmu.edu/geollab/vageol/vahist/PhysProv.html

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Association of Petroleum GeologistsAAPGExplorer, pp 6-10, March 2008.

Enomoto, C.B., 2008. Personalcommunication about Shale Gas productionin Virginia, personal communication

between Dr. Langhus and Cathy Enomoto,DMME, April 2008.

Gilmer, A.K., C.B. Enomoto, J.A. Lovett,and D.B. Spears, 2005. Mineral and FossilFuel Production in Virginia, 1993 to 2003,DMME, Open File Report 05-04, 2005.

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Assessment of 1995, on USGS website:http://certmapper.cr.usgs.gov/noga/broker1995.jsp?theProvince=67&thePage=basin&theServlet=NogaMainResultsServ

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ATLANTIC COASTAL PLAIN PROVINCE(070),ADIRONDACK PROVINCE(071),

AND NEW ENGLAND PROVINCE (072); inNational Oil and Gas Assessment of 1995,on USGS website:http://certmapper.cr.usgs.gov/data/noga95/prov69/text/prov69.pdf

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http://tonto.eia.doe.gov/dnav/ng/ng_stor_top.asphttp://tonto.eia.doe.gov/dnav/ng/ng_stor_top.asphttp://tonto.eia.doe.gov/dnav/ng/ng_stor_top.asphttp://csmres.jmu.edu/geollab/vageol/vahist/PhysProv.htmlhttp://csmres.jmu.edu/geollab/vageol/vahist/PhysProv.htmlhttp://csmres.jmu.edu/geollab/vageol/vahist/PhysProv.htmlhttp://www.dmme.virginia.gov/DMR3/energyresources.shtmlhttp://www.dmme.virginia.gov/DMR3/energyresources.shtmlhttp://www.dmme.virginia.gov/DMR3/energyresources.shtmlhttp://certmapper.cr.usgs.gov/noga/broker1995.jsp?theProvince=67&thePage=basin&theServlet=NogaMainResultsServhttp://certmapper.cr.usgs.gov/noga/broker1995.jsp?theProvince=67&thePage=basin&theServlet=NogaMainResultsServhttp://certmapper.cr.usgs.gov/noga/broker1995.jsp?theProvince=67&thePage=basin&theServlet=NogaMainResultsServhttp://certmapper.cr.usgs.gov/noga/broker1995.jsp?theProvince=67&thePage=basin&theServlet=NogaMainResultsServhttp://certmapper.cr.usgs.gov/data/noga95/prov69/text/prov69.pdfhttp://certmapper.cr.usgs.gov/data/noga95/prov69/text/prov69.pdfhttp://certmapper.cr.usgs.gov/data/noga95/prov69/text/prov69.pdfhttp://certmapper.cr.usgs.gov/data/noga95/prov69/text/prov69.pdfhttp://certmapper.cr.usgs.gov/noga/broker1995.jsp?theProvince=67&thePage=basin&theServlet=NogaMainResultsServhttp://certmapper.cr.usgs.gov/noga/broker1995.jsp?theProvince=67&thePage=basin&theServlet=NogaMainResultsServhttp://certmapper.cr.usgs.gov/noga/broker1995.jsp?theProvince=67&thePage=basin&theServlet=NogaMainResultsServhttp://www.dmme.virginia.gov/DMR3/energyresources.shtmlhttp://www.dmme.virginia.gov/DMR3/energyresources.shtmlhttp://csmres.jmu.edu/geollab/vageol/vahist/PhysProv.htmlhttp://csmres.jmu.edu/geollab/vageol/vahist/PhysProv.htmlhttp://tonto.eia.doe.gov/dnav/ng/ng_stor_top.asphttp://tonto.eia.doe.gov/dnav/ng/ng_stor_top.asp


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May 2008

Appendix A

VIRGINIA DIVISION OF MINERAL RESOURCES

OPEN-FILE REPORT 05-04


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Appendix B

USGS PLAY DESCRIPTIONS

APPALACHIAN BASIN PROVINCE (067)

BLUE RIDGE THRUST BELT (068), PEIDMONT PROVINCE (069), ATLANTICCOASTAL PLAIN PROVINCE (070), ADIRONDACK PROVINCE (071) AND NEWENGLAND PROVINCE (072)

USGS OPEN-FILE REPORT 2004-1271

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