American Oil and Gas Reporter - June 2014 - 16

IndustryDigest
Ohio Seeks New Permit
After Seismic Incidents
COLUMBUS, OH.-The Ohio
Department of Natural Resources has
released proposed conditions for
drilling near faults or areas of past
seismic activity. The agency says the
move is in response to seismic events
reported in Mahoning County that it
alleges demonstrate a connection
between hydraulic fracturing near a
previously unknown microfault.
According to ODNR, sand and water
injected into a well drilled in Poland
Township, Oh., may have increased
pressure on an unknown microfault. The
agency suspended further fracture
stimulation at the site, but is allowing
the company to continue operating the
other five wells drilled from the well
pad. Department geologists say that is
expected to reduce underground
pressure and decrease the likelihood of
another seismic event.
According to media reports, the
quakes, which measured magnitude 2.6
and 3.0, caused no damage.
Under the ODNR proposal, permits
for horizontal drilling within three miles
of a known fault or area with a recent
seismic event greater than a 2.0
magnitude will require an operator to
install seismic monitors, ODNR says. If
the monitors detect a seismic event in
excess of 1.0 magnitude, the operator
will have to stop operations while the
cause is investigated.
ODNR says if an analysis concludes
the seismic event is related to
fracturing, all well completion
operations will be suspended.
Tom Stewart, executive vice president
of the Ohio Oil & Gas Association, says
the association recognizes that Class II
waste disposal wells can induce
seismicity if drilled into or near faults or
microfaults. However, ODNR is blaming
the Mahoning County incident on well
stimulation, a linkage Stewart asserts has
not been proven.
"No one in the oil and gas industry
wants to make people's houses shake. If
we are in an area of known faulting,
which is hard to avoid in an ancient
basin such as the Appalachian Basin,
we need to take steps to mitigate that.
On the other hand, we also know from
experts that there are more than 8,000
quakes every day with magnitudes of
1.0 or less," he says.
16 THE AMERICAN OIL & GAS REPORTER

"People are saying there are more
quakes now than there were in the past,"
Stewart continues. "My perspective is
they are now listening for those events,
where they were not listening before.
We all have to recognize that hydraulic
fracturing is the act of parting solid
rock, and that creates sound energy." r

IOGCC, GWPC Lead
Seismic Activity Group
WASHINGTON-The Interstate Oil
& Gas Compact Commission and the
Ground Water Protection Council are
partnering to examine possible linkages
between injection wells and seismic
events that have been reported in several
states. IOGCC says they are
participating in a group that includes
state oil and gas regulatory agencies and
geological surveys.
State agencies participating in the
Induced Seismicity by Injection Work
Group will collaborate and share science,
research, and practical experiences to
provide states with the best decisionmaking tools to evaluate possible
connections between seismic events and
injection wells, IOGCC says. The group's
goals also include enhancing appropriate
readiness when seismic events occur.
This State Oil and Gas Regulatory
Exchange (SOGRE) initiative is part of
a larger state-led effort, States First,
IOGCC says. Through SOGRE, it
reports, state oil and gas regulatory
agencies are collaborating and
communicating with one another in an
ongoing effort to keep current with
rapidly changing technology, as well as
sharing the best innovative practices,
procedures and protocols.
Group updates will be available on
the States First website at
www.statesfirstinitiative.org.
There are more than 150,000 Class II
injection wells used by the oil and gas
industry across the country to dispose of
produced water or enhance resource
recovery, IOGCC says. r

Michigan DEQ Adds
High-Volume Fracture
Section To Drill Rules
LANSING, MI.-The Michigan
Department of Environmental Quality's
Office of Oil, Gas and Minerals has

issued revised regulations, adding a
section governing high-volume
fracturing operations.
DEQ began work on the regulatory
changes more than a year ago, and
accepted input from the oil and gas
industry and other stakeholders (AOGR,
December 2013, pg. 14).
The revisions describe high-volume
hydraulic fracturing as completion
operations intended to use more than
100,000 gallons of primary carrier fluid.
Michigan last revised its fracturing
rules in 2011, and media reports
indicate this change is in response to a
well drilled in Kalkaska County, Mi., by
Encana Corp., that used more than 21
million gallons of water. In addition to
10 producing wells that underwent
high-volume hydraulic fracturing, news
sources say 27 permits are pending in
Michigan.
Under the revised regulations,
according to a DEQ summary:
* Permittees requiring a cumulative
total of more than 100,000 gallons of
water a day when averaged over 30
consecutive days must file a largevolume water withdrawal request at
least 30 days before withdrawals begin.
* If one or more freshwater wells are
within 1,320 feet of the proposed water
withdrawal, permittees must drill
monitoring wells between any freshwater
wells and the withdrawal site. If more
than one aquifer is delineated, the
monitoring well must be completed in
the same aquifer as the water withdrawal
well. Levels in the monitoring well must
be recorded daily during withdrawal and
weekly thereafter, until the water level
stabilizes.
* The permit applicant must collect
base-line samples from all available
water sources, up to a maximum of 10,
within a quarter-mile of the well
location. Initial sampling will be
conducted not less than seven days nor
more than six months prior to starting
drilling operations. Using a certified
laboratory, the samples must test for a
range of compounds, including toluene,
ethylbenzene, chloride and methane. The
applicant pays for sampling and analysis.
* Permittees must inform the Office
of Oil, Gas and Minerals at least 48
hours in advance of high-volume
fracturing activities. If the well is
expected to produce hydrogen sulfide,
the local emergency preparedness
coordinator also must be notified.



American Oil and Gas Reporter - June 2014

Table of Contents for the Digital Edition of American Oil and Gas Reporter - June 2014

Contents
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