The Ohio Department of Natural Resources presented on shale development at a clean water conference. Key points included:
1) The oil and gas program will become its own division, splitting off from another department to directly focus on regulating oil and gas development as shale activity increases.
2) Horizontal drilling and hydraulic fracturing techniques are allowing development of shale resources like the Marcellus and Utica that were previously unrecoverable. This could significantly increase drilling activity in Ohio.
3) Ohio's oil and gas laws and regulations are designed for conservation and protection of public health and safety. The department works to ensure effective oversight of shale development.
social pharmacy d-pharm 1st year by Pragati K. Mahajan
Shale Development in Ohio
1. Ohio Environmental Council
Clean Water Conference
08/06/2011
Ohio Department of Natural Resources
Shale Development
2. O
On Behalf o
e a of:
Director: David Mustine
Assistant Director: Scott Zody
Deputy Director/Acting Chief:
Mike Biddison
Presenter: Tom Tugend
3. State Budget Bill Changes
Oil and Gas program will become a stand
alone division – will split off from DMRM
Acknowledgement of the importance for
a direct focus on oil and gas regulation
in relation to the pending shale
development
5. Wells Drilled and When
Year Wells Drilled
1895
189 6147
614
1930 2134
2008 1087
2010 431
6. Our Legal Authority
Ohio Revised Code 1509
Ohio Administrative Code 1501
Our marching orders
Sets
S t our boundaries
b d i
RC 1509 effective in 1965 – Morrow
County “oil boom”
7. Our Legal Authority Continued
From 1893 – 1965 the minimal
regulations in place were
p
primarily self enforced with
y
the focus on miner safety
8. Basis of the Oil and Gas Laws
and Rules
Conservation
Protection of the environment and
public health and safety
9. Basis of the Oil and Gas Laws
and Rules
Conservation Based Laws and Rules
For the effective development of Ohio’s oil
and natural Gas resources to Prevent
Waste
- Maximize Recoverable Resources -
10. SENATE BILL 165 – EFFECTIVE
06/30/10 Cont.
Strengthened enforcement
g
Provided additional funding: For
operations and Orphan Well Program
p p g
Increased insurance requirements
Provided for additional notifications:
Commencement of drilling, fracking,
placement of conductor, surface and
production casing {Provided for more
opportunity for staff to oversee operations}
13. PA – Where is the Marcellus
Activity
A ti it
The PA Marcellus
“Fairway”
Gold = Primary Area of Marcellus Drilling Activity [“The Fairway”]
14. PA – Where is the Marcellus
Activity
Red = Marcellus
15. Marcellus Shale Activity
y
Pennsylvania
2011: 1,600 (projected)
2010: 1,454 Marcellus wells drilled
1 454
2009: 763 Marcellus wells drilled
2008: 195 Marcellus wells drilled
2004: R
2004 Range Resources d ill d the first
R drilled th fi t
horizontal shale well
16. Differences Between a
Horizontal Well and
Traditional Vertical Well
Everything is bigger – It takes longer
Well it 3 5
W ll site 3-5 acres vs. 1 2 acres
1-2
Shale rig is much larger
g g
Associated equipment – more of it
17. Differences Between a
Horizontal Well and
Traditional Vertical Well
One month/well to drill vs. one week
vs
6 or more wells can be drilled from one
well site pad or back to back
$5 million vs. $400,000 to drill
18. Possible Game Changer
The Utica Shale may contain significant
quantities of natural gas liquids
(condensate) and oil
( d t ) d il
If so and once proven, drilling activity
could increase quickly in Ohio
19. Hydraulic Fracturing Cont.
Ohio Hydraulic Fracturing State Review
January 2011 by:
2011,
State Review of Oil and Natural Gas
Regulations, Inc (S O G )
egu at o s, c (STRONGER)
20. Hydraulic Fracturing Cont.
Eight officials (Industry, regulatory,
environmental) reviewed Ohio’s
i l) i d Ohi ’
hydraulic fracturing regulatory p g
y g g y program
and found:
21. Hydraulic Fracturing Cont.
Ohio’s program is well managed,
professional and meeting it s program
it’s
objectives.
22. Protection of the Environment
and Public Health and Safety
Key Factors:
Permitting
Well site construction
Well construction !
Well control !
Fluid control !
Oversight
23. PARTNERSHIPS
ODNR/DMRM has more partners than
h t th
ever in the past - this is good
OEPA, USACE, MWCD, Jobs and Family
Services, Ohio Shale Coalition, OGEEP,
OSU Cooperative Extension, Ohio Farm
Bureau, PUCO………
Bureau PUCO