Oil and Gas at Your Door? (2005 Edition) - Earthworks

More documents

Recommendations

Info

Oil and Gas Development and Impacts Reclamation activities typically include: removal of all well-related equipment; re-grading of roads and other surfaces; removal of trash and debris; road closures; closure and remediation of pits and contaminated soils; and site revegetation. While this stage appears at the end of the development process, there are interim reclamation activities that can and often must be performed by operators at other stages of development. An example of interim or “annual” reclamation requirements can be found in the Vermejo Park Ranch Mineral Extraction Agreement in Chapter III. SITE ABANDONMENT—ISSUES AND IMPACTS Orphaned and Idle Wells Surface owners should be aware that as a well becomes less and less profitable, some larger companies will sell these wells to smaller companies. Eventually, these wells may become the responsibility of the state, for example, if the smaller company does not have the funding to properly plug the wells and reclaim the site. If a company goes bankrupt and has no assets available to be used for proper well abandonment the well is considered to be an orphan well. 142 The term orphan well also applies to the situation where the operator is unknown (e.g., in the case of wells drilled in the early part of the century). Idle wells are wells that have ceased production but have not been plugged. In most states, wells require regulatory approval to be idle. 143 Most states allow some period of time of inactivity (usually six months to one year) without approval. When this initial time has elapsed, states may require a statement of the operator’s intentions, which may include extensive geological and engineering information and a schedule for returning the well to production. 144 Also, a state may require periodical mechanical integrity tests to ensure that the well does not pose a threat to the environment. 145 • In 1995, there were 134,000 wells in the U.S. that had stopped production yet had neither been plugged nor received government approval to be idle. 146 • Orphan wells and idle wells that do not have government approval may present a groundwater contamination hazard. With many of these wells, the integrity of the casing is not known, and so there is a possibility that reservoir fluids or gases are contaminating or will contaminate nearby fresh water aquifers. Not all wells will cause contamination, but until the wells are evaluated, the risk that they pose is unknown. • Most oil- and gas-producing states have a program for addressing orphan wells, which includes: prioritizing wells (because states do not have the funding to assess and properly plug all orphan wells); programs to plug dangerous orphan wells; and clean up of any contamination that may have already occurred. • There is no guarantee that a state will have adequate funding to properly plug and reclaim orphan sites; leaving the surface owner with concerns about long-term risk of contamination. See “Bankrupt companies walk away from oil wells in Texas,” Chapter II. • One source of information that can help inform state regulators of the risks posed by orphan or idle wells comes from area of review (AOR) studies that are required for the approval of new underground injection wells. Under this requirement, the operator of the new well must study all active, idle and abandoned wells within an area (often a ¼ mile radius) to determine whether they pose a risk of contamination. 147 Improperly Plugged and Abandoned Wells • Improperly completed and abandoned wells may allow contaminants such as pesticides to be transferred from the surface to groundwater. I-30
STAGES OF OIL & GAS DEVELOPMENT • Oil, gas, and salt water can leak from abandoned, unplugged, or improperly plugged oil and gas wells, especially older wells, and pollute groundwater resources, 148 or migrate to the surface. In Colorado, Oil and Gas Conservation Commission (COGCC) staff believe that increased methane concentrations found in water wells and buildings in some areas are partially due to old, improperly abandoned gas wells and older, deeper conventional gas wells that were not completely isolated. According to COGCC officials, a mitigation program focused on sealing old, improperly abandoned gas wells appears to have reduced methane concentrations in approximately 27 percent of the water wells sampled. 149 • Additionally, improperly closed sites can be a safety hazard to humans and livestock. Tips for Landowners • Surface owners should work with state agencies to ensure that abandonment is satisfactorily completed. • Owners may want to consider pressuring companies to use native species in their re-seeding projects, as these may be better able to combat noxious weed species. • The company should have saved topsoil during the drilling and production stages for use in their reclamation efforts. • Almost all states require companies to set aside funds to properly plug and abandon their wells. There is more information on financial assurance (or bonding) in Chapter II. Ideally, full reclamation should leave vegetation, soil, air and water in the same condition that existed prior to oil and gas development.This rarely occurs. I-31
Page 1 and 2: Oil and Gas at Your Door? A Landown
Page 3 and 4: About the Oil & Gas Accountability
Page 5 and 6: Table of Contents Introduction What
Page 7 and 8: Chapter III, Tips for Landowners Wh
Page 9 and 10: Introduction Oil and gas developmen
Page 11 and 12: For the oil we need, unless we choo
Page 13 and 14: With the recent boom in extraction
Page 15 and 16: Do you own the minerals associated
Page 17 and 18: Chapter I Oil and Gas Development a
Page 19 and 20: TERMS AND CONCEPTS When natural gas
Page 21 and 22: STAGES OF OIL & GAS DEVELOPMENT In
Page 23 and 24: STAGES OF OIL & GAS DEVELOPMENT •
Page 25 and 26: STAGES OF OIL & GAS DEVELOPMENT FIG
Page 27 and 28: STAGES OF OIL & GAS DEVELOPMENT •
Page 29 and 30: STAGES OF OIL & GAS DEVELOPMENT Sur
Page 31 and 32: STAGES OF OIL & GAS DEVELOPMENT pan
Page 33 and 34: STAGES OF OIL & GAS DEVELOPMENT Nex
Page 35 and 36: STAGES OF OIL & GAS DEVELOPMENT One
Page 37 and 38: STAGES OF OIL & GAS DEVELOPMENT Gat
Page 39 and 40: STAGES OF OIL & GAS DEVELOPMENT Pro
Page 41 and 42: STAGES OF OIL & GAS DEVELOPMENT PRO
Page 43 and 44: STAGES OF OIL & GAS DEVELOPMENT pro
Page 45: STAGES OF OIL & GAS DEVELOPMENT Plu
Page 49 and 50: NON CONVENTIONAL OIL AND GAS FIGURE
Page 51 and 52: NON CONVENTIONAL OIL AND GAS COALBE
Page 53 and 54: NON CONVENTIONAL OIL AND GAS Cavita
Page 55 and 56: NON CONVENTIONAL OIL AND GAS to pro
Page 57 and 58: IMPACTS ASSOCIATED WITH OIL AND GAS
Page 79 and 80: ALTERNATIVE TECHNOLOGIES AND PRACTI
Page 81 and 82: ALTERNATIVE TECHNOLOGIES AND PRACTI
Page 83 and 84: STAGES OF OIL & GAS DEVELOPMENT The
Page 85 and 86: STAGES OF OIL & GAS DEVELOPMENT to
Page 87 and 88: STAGES OF OIL & GAS DEVELOPMENT FIG
Page 89 and 90: Chapter II Legal and Regulatory Iss
Page 91 and 92: Who Owns the Minerals Beneath Your
Page 93 and 94: WHO OWNS THE MINERALS BENEATH YOUR
Page 95 and 96: MINERAL VS SURFACE RIGHTS er, can b
Page 97 and 98:
MINERAL VS SURFACE RIGHTS • In th
Page 99 and 100:
REGULATIONS AND SURFACE OWNER PROTE
Page 101 and 102:
Exploration Before a company can en
Page 103 and 104:
Page 105 and 106:
Page 107 and 108:
Page 109 and 110:
Other Protections Statutes and regu
Page 111 and 112:
Page 113 and 114:
face owner to participate in this o
Page 115 and 116:
Chapter III Tips for Landowners WHA
Page 117 and 118:
SURFACE USE AGREEMENTS Surface Use
Page 119 and 120:
SURFACE USE AGREEMENTS Powder River
Page 121 and 122:
SURFACE USE AGREEMENTS operations t
Page 123 and 124:
SURFACE USE AGREEMENTS ment payment
Page 125 and 126:
SURFACE USE AGREEMENTS Reported Com
Page 127 and 128:
SURFACE USE AGREEMENTS Examples of
Page 129 and 130:
SURFACE USE AGREEMENTS ed by this A
Page 131 and 132:
SURFACE USE AGREEMENTS 12. Dry Hole
Page 133 and 134:
SURFACE USE AGREEMENTS 25. Firearms
Page 135 and 136:
SURFACE USE AGREEMENTS in whole or
Page 137 and 138:
LEASING Annual Reclamation Requirem
Page 139 and 140:
LEASING • Within the mineral leas
Page 141 and 142:
LEASING • Requiring landowner app
Page 143 and 144:
OTHER ACTIVITIES TO CONSIDER Push f
Page 145 and 146:
OTHER ACTIVITIES TO CONSIDER analys
Page 147 and 148:
FILE LAWSUITS amendment also requir
Page 149 and 150:
FILE LAWSUITS Landowners are Winnin
Page 151 and 152:
Chapter IV Landowner Stories As has
Page 153 and 154:
1. CBM DESTROYS RETIREMENT DREAM By
Page 155 and 156:
has never been a loss of vegetation
Page 157 and 158:
Board came. They accused her of pou
Page 159 and 160:
4. COUNTY OFFICIALS SAY RESIDENTS I
Page 161 and 162:
First, why we did not sign a surfac
Page 163 and 164:
Here is part of a description of on
Page 165 and 166:
cases the agents called and visited
Page 167 and 168:
10. ONE RANCH FAMILY’S STRUGGLE W
Page 169 and 170:
shrubs are now roads, drill pads or
Page 171 and 172:
County and the drilling company to
Page 173 and 174:
opment in their backyards. This is
Page 175 and 176:
After reading Colborn’s memo, I t
Page 177 and 178:
17. WYOMING LANDOWNERS FACE CONDEMN
Page 179 and 180:
involved in a private property issu
Page 181 and 182:
Sources of Information Resources on
Page 183 and 184:
Sources of Information Petroleum Te
Page 185 and 186:
Sources of Information East of Huaj
Page 187 and 188:
Sources of Information NONPROFIT OR
Page 189 and 190:
Sources of Information Native Actio
Page 191 and 192:
Sources of Information STATE REGULA
Page 193 and 194:
Glossary of Oil and Gas Terms A aba
Page 195 and 196:
chain of title Recorded transfers (
Page 197 and 198:
egress The act of getting out or le
Page 199 and 200:
H heavy oil Hydrocarbons composed o
Page 201 and 202:
mineral estate The ownership of min
Page 203 and 204:
petroleum A substance occurring nat
Page 205 and 206:
einjection The introduction of prod
Page 207 and 208:
sour gas Natural gas containing sig
Page 209 and 210:
venting release of gases to atmosph
Page 211 and 212:
Endnotes 1 Thomas, K. 2001. Produce
Page 213 and 214:
57 U.S. EPA. October, 2000. p. 38.
Page 215 and 216:
121 Griffiths, Mary and Marr-Laing,
Page 217 and 218:
187 Kuuskraa, Vello A. (Advanced Re
Page 219 and 220:
236 Otsego County Planning Commissi
Page 221 and 222:
287 USGS. 1997. See endnote 284. 28
Page 223 and 224:
354 Trujillo, Shirena. August 27, 2
Page 225 and 226:
Oklahoma: Oklahoma Statutes. 52-4-3
Page 227 and 228:
Financial Assurance - Colorado: Col
Page 229 and 230:
470 Scheider, Keith. “Ax the $Bil
Page 231 and 232:
Index I-31, I-33, I-60, I-63 conven
Page 233 and 234:
Index mitigation I-31, IV-20 monito
Page 235:
Index I-52, I-65, III-10 treatment
show all

Oil and Gas at Your Door? (2005 Edition) - Earthworks

Create successful ePaper yourself

Delete template?

Save as template?