A Typical Loss of Production Income (LOPI) claim - IMUA
A Typical Loss of Production Income (LOPI) claim - IMUA
A Typical Loss of Production Income (LOPI) claim - IMUA
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Case #2: Casing failure during hydraulic fracture treatments<br />
The intermediate casing burst near the surface <strong>of</strong> the well during the hydraulic<br />
fracture treatment. Treating pressure increased unexpectedly during the fracking<br />
operation. The flow from the intermediate casing eroded a hole through the<br />
surface casing, then the flow came to the surface near the well.<br />
Actions<br />
Environmental<br />
Shut down pumps; mobilize coiled tubing to the location.<br />
Circulate kill mud within the wellbore; set mechanical or cement plug(s).<br />
Evaluate the casing condition; repair or plug and abandon the wellbore.<br />
Underground breech transpired at a depth near potable water formations.<br />
Soil samples were evaluated; contaminated soil removed to <strong>of</strong>f-site remediation.<br />
Water monitoring wells were drilled, per agreement with the regulatory authorities;<br />
the sampling regimen was decided and implemented.<br />
Potential Gross Cost<br />
US$ 6,700,000 (100%), <strong>of</strong> that US$ 750,000 (100%) was environmental related.<br />
* approx US$ 2,200,000 Restoration adjusted – damage prior to incident.<br />
HYDROFRACKING – The scope and magnitude <strong>of</strong> the process, inland marine exposures/issues and community impact. Slide No. 28
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