Lessons Learned in Fort Worth Urban Gas Drilling

Transcription

1 Lessons Learned in Fort Worth Urban Gas Drilling 2012 Texas APA Conference Fort Worth, Texas October 4, 2012 Presented by Rick Trice, P.E.

2 Issues Facing Municipal Government Permitting Options Public Involvement Agency Conflicts Land Use Traffic Safety Roadways Environmental

3 Gas Regulation at the Local Level Property Rights Balance surface owners right to quality of life with mineral owners right to develop their mineral assets State of Texas and Federal Government are charged with gas industry health and safety regulation

4 Current CFW Drilling Permit Options Single Well Permit One or more wells can be permitted individually Waivers must be obtained from Protected Use surface owners within 600 of the well bore or by City Council Operator is at risk of future encroachment by development that may impact future wells

5 Typical Well Pad Site 75 feet Pad Area = 3 Acres +/-

6 Single Well Permit 600 feet 300 feet

7 Current CFW Drilling Permit Options Multi-Well Pad Site Permit Allows administrative permitting of all future wells if granted Waivers must be obtained from Protected Use surface owners within 600 of the pad site boundary Prevents future development encroachment that would inhibit full development of the pad

8 Multi-Well Pad Site Permit 600 feet 300 feet min 300 feet min

9 Issues with the Waiver System Waivers become a commodity Inequity exists between communities Hold outs end up with little or nothing The setback is just a line Are impacts at 601 less than at 600? Should waivers be required from all potentially affected protected use property owners with the first permit? Should the Multi-Well Pad site permit be mandatory?

10 Single Well versus Multi Well Pad Site Example

11 Access Commercial Truck Routes (Adopted 1994)

12 Gas Drilling Review Committee Notice given to property owners along the route Composed of City staff from Transportation, Water, Parks, Law, Community Relations, Planning & Development Meets monthly Reviews proposed use of non-commercial transportation routes

13 Roadway Impacts Old Granbury Road Old Weatherford Road

14 Types of Roadway Damage Immediate damage visible localized damage such as rutting or raveling. Long term degradation loss of Present Serviceability Index (PSI). Representing a measurement of ride quality. Factors such as cracking, patches, base failures, and rutting are measurable. The greater the sum of these factors the lower the PSI until reconstruction is required.

15 Roadway Maintenance Agreement operator will repair, at its own expense, any damage to roads, streets, or highways caused by the use of heavy vehicles for any activity associated with the preparation, drilling, production, and operation of Gas Wells.

16 Surety Requirements Bond or Letter of Credit During drilling 1-5 wells $150,000 > 6 wells add $50,000 each During production 0-75 wells $100, wells $150, wells $250,000

17 Roadway Damage Assessment Study C&P Engineering, Ltd. hired to perform the study. Performed similar studies for Denton, Benbrook, and Burleson. Used American Association of State Highway and Transportation (AASHTO) analysis. Used data provided by the City and gas well operators.

18 Gas Well Traffic Loads Drilling Purpose Empty Weight Loaded Weight Rock Hauler Pad, roadway 35,000 84,000 Rig N.A. 100,000 Bob-Tail Rig components, pipe, 20,000 50,000 cement, drilling mud Completion Work-over Rig N.A. 100,000 Bob-Tail Frack equipment, material 20,000 50,000 Water Truck frack water, flowback removal 35,000 80,000 Production Water Truck Produced water removal 35,000 80,000

19 Roadway Fee Basis Total of Gas Well Traffic During Roadway Life Grand Total of Loads During Roadway Life = % of Roadway Life Consumed by Gas Well Traffic % of Roadway Life Consumed by Gas Well Traffic X Roadway Replacement Value

20 One Year Roadway Damage Scenario Well Site: Piped water, Drill one well, Haul flowback 2 HMAC/ % 6 Lime Stabilized Subgrade 11 Reinforced Concrete/ 0.006% 6 Lime Stabilized Subgrade

21 Industry Concerns Singled out versus other heavy users of roadways (e.g. concrete trucks, buses, heavy haulers) Already pay ad valorem taxes and TxDOT fees How would the industry receive credit for roadway life already consumed on a roadway How would the fee be used How would it be applied when multiple operators are using the same route

22 Salt Water Disposal Piping versus Trucking Brentwood Pilot Alliance Master Plan

23 Brentwood Location Brentwood 23

24 Demonstrate that an SWD could be operated without becoming a nuisance Noise Traffic Spills Leaks Brentwood Objectives Determine feasibility of pipeline gathering systems Research various recycling technologies and determine applicability to the Barnett 24

25 Gas Well Life Cycle Water Use Hydraulic Fracture million gallons Production Drilling Mud 250,000 gallons/well Drilling Completion Flowback 15 40% of Frack Fluid (525,000 2,000,000 gallons) Produced Water Primarily formation water 100 1,300 gallons/well/day Salinity est. 80, ,000 ppm Duration: Life of the well Salinity estimated up to 80,000 ppm Duration: 1 month +/- (1,095,000 14,235,000 gallons)

26 Estimated Truck Trips/Well Low High Flowback 525,000 2,000,000 Produced Water 1,095,000 14,235,000 Total Gallons 1,620,000 16,235,000 One Way Trips 324 3,247

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29 Site Reclamation

30 Wellhead

31 Wellhead

32 Wellhead

33 Wellhead

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36 Thank You