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HYDRAULIC FRACTURING
    OPERATIONS:
SEPARATING FACT FROM
      FICTION
  Cary Institute of Ecosystem Studies
             Fracking Forum
               May 5, 2012

            Mark K. Boling
              President
Regulatory Considerations


             Surface Considerations




           Subsurface Considerations




1
Regulatory Considerations

Surface Considerations
                               Air Emissions




                                 Surface Impact
                                 • Drilling Locations
                                 • Truck Traffic & Road Damage
                                 • Infrastructure


      Water Supply
      Water Handling
      Water Reuse & Disposal



2
Regulatory Considerations

Subsurface Considerations




                   Protecting Underground
                      Water Resources




                    Frac Fluid Disclosure



3
Protecting Underground Water Resources




                         Well Integrity
                           Is the Key!



4
Well Integrity

    1                                           2
        Evaluate Stratigraphic Confinement          Well Construction Standards




    3   Evaluate Mechanical Integrity of Well
                                                4   Monitor Frac Job & Producing Well




5
GOOD MECHANICAL INTEGRITY

 CONDUCTOR PIPE
                                FRESH WATER AQUIFER ZONE


 SURFACE CASING




PRODUCTION CASING




                                 SHALLOW PRODUCING ZONE




                                  TARGET PRODUCING ZONE
CEMENT CHANNELING

 CONDUCTOR PIPE
                    PRESSURE                                     FRESH WATER AQUIFER ZONE
                    BUILDS UP

 SURFACE CASING




PRODUCTION CASING




                                                     FORMATION
                                CASING

                                         CEMENT
                                                                  SHALLOW PRODUCING ZONE




                                                                   TARGET PRODUCING ZONE
INSUFFICIENT CEMENT COVERAGE

 CONDUCTOR PIPE     PRESSURE
                                      FRESH WATER AQUIFER ZONE
                    BUILDS UP

 SURFACE CASING




PRODUCTION CASING




                                       SHALLOW PRODUCING ZONE




                                        TARGET PRODUCING ZONE
Regulatory Considerations

Surface Considerations
                               Air Emissions




                                  Surface Impact
                                  • Drilling Locations
                                  • Truck Traffic & Road Damage
                                  • Infrastructure


      Water Supply
      Water Handling
      Water Reuse & Disposal



9
Regulating Air Emissions




     Emission Type           Reduction Technology                      Emission Levels
     •   NOx                 •   Catalytic reduction                   •   EPA
     •   SO2                 •   Ultra-low sulfur diesel fuel          •   Industry
     •   CO                  •   LNG and CNG fuels                     •   State regulators
                             •   Oxidation catalysts
     •   CH4                                                           •   Research groups
                             •   Green completions, vapor recovery
     •   VOCs (incl. BTEX)       units, low bleed/no bleed pneumatic
                                 devices, plunger lift systems, leak
                                 detection




10
Fulfilling the Promise of Natural Gas

                                         Straight talk/open
                                              dialogue
                                           Debate the real
                                              issues
                                        Regulation without
                                           the politics
 Natural Gas Industry
 Natural Gas Industry             Environmental Groups
                                  Natural Gas Industry




                        Regulators/Legislators
                        Environmental Groups
                        Natural Gas Industry
                        Regulators/Legislators
11
HYDRAULIC FRACTURING
    OPERATIONS:
SEPARATING FACT FROM
      FICTION
  Cary Institute of Ecosystem Studies
             Fracking Forum
               May 5, 2012

            Mark K. Boling
              President

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Hydraulic Fracturing Operations: Separating Fact from Fiction

  • 1. HYDRAULIC FRACTURING OPERATIONS: SEPARATING FACT FROM FICTION Cary Institute of Ecosystem Studies Fracking Forum May 5, 2012 Mark K. Boling President
  • 2. Regulatory Considerations Surface Considerations Subsurface Considerations 1
  • 3. Regulatory Considerations Surface Considerations Air Emissions Surface Impact • Drilling Locations • Truck Traffic & Road Damage • Infrastructure Water Supply Water Handling Water Reuse & Disposal 2
  • 4. Regulatory Considerations Subsurface Considerations Protecting Underground Water Resources Frac Fluid Disclosure 3
  • 5. Protecting Underground Water Resources Well Integrity Is the Key! 4
  • 6. Well Integrity 1 2 Evaluate Stratigraphic Confinement Well Construction Standards 3 Evaluate Mechanical Integrity of Well 4 Monitor Frac Job & Producing Well 5
  • 7. GOOD MECHANICAL INTEGRITY CONDUCTOR PIPE FRESH WATER AQUIFER ZONE SURFACE CASING PRODUCTION CASING SHALLOW PRODUCING ZONE TARGET PRODUCING ZONE
  • 8. CEMENT CHANNELING CONDUCTOR PIPE PRESSURE FRESH WATER AQUIFER ZONE BUILDS UP SURFACE CASING PRODUCTION CASING FORMATION CASING CEMENT SHALLOW PRODUCING ZONE TARGET PRODUCING ZONE
  • 9. INSUFFICIENT CEMENT COVERAGE CONDUCTOR PIPE PRESSURE FRESH WATER AQUIFER ZONE BUILDS UP SURFACE CASING PRODUCTION CASING SHALLOW PRODUCING ZONE TARGET PRODUCING ZONE
  • 10. Regulatory Considerations Surface Considerations Air Emissions Surface Impact • Drilling Locations • Truck Traffic & Road Damage • Infrastructure Water Supply Water Handling Water Reuse & Disposal 9
  • 11. Regulating Air Emissions Emission Type Reduction Technology Emission Levels • NOx • Catalytic reduction • EPA • SO2 • Ultra-low sulfur diesel fuel • Industry • CO • LNG and CNG fuels • State regulators • Oxidation catalysts • CH4 • Research groups • Green completions, vapor recovery • VOCs (incl. BTEX) units, low bleed/no bleed pneumatic devices, plunger lift systems, leak detection 10
  • 12. Fulfilling the Promise of Natural Gas Straight talk/open dialogue Debate the real issues Regulation without the politics Natural Gas Industry Natural Gas Industry Environmental Groups Natural Gas Industry Regulators/Legislators Environmental Groups Natural Gas Industry Regulators/Legislators 11
  • 13. HYDRAULIC FRACTURING OPERATIONS: SEPARATING FACT FROM FICTION Cary Institute of Ecosystem Studies Fracking Forum May 5, 2012 Mark K. Boling President