Notional Field Development Final Report - EBN
Notional Field Development Final Report - EBN
Notional Field Development Final Report - EBN
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<strong>EBN</strong><br />
<strong>Notional</strong> <strong>Field</strong> <strong>Development</strong><br />
<strong>Final</strong> <strong>Report</strong><br />
Submitted by:<br />
Halliburton<br />
November, 2011
<strong>EBN</strong> <strong>Notional</strong> <strong>Field</strong> <strong>Development</strong> Plan<br />
Table of Contents<br />
1 Project Identification ............................................................................................................................ 9<br />
2 Background Information ..................................................................................................................... 11<br />
2.1 Surface Constraints ..................................................................................................................... 11<br />
3 Technical Analysis ............................................................................................................................... 13<br />
3.1 Petrophysical Evaluation ............................................................................................................. 13<br />
3.2 Hydraulic Fracture Design ........................................................................................................... 28<br />
3.3 Production Forecasting ............................................................................................................... 40<br />
3.4 Well Test Conceptual Design ...................................................................................................... 62<br />
3.5 Well Design ................................................................................................................................. 80<br />
4 Surface & Environmental Impacts .................................................................................................... 121<br />
4.1 Project Description .................................................................................................................... 121<br />
4.2 Regulatory Framework .............................................................................................................. 126<br />
4.3 Comprehensive Water Management Planning ......................................................................... 143<br />
4.4 General Environmental and HSE Management ........................................................................ 175<br />
4.5 Well Pad Construction .............................................................................................................. 190<br />
4.6 Infrastructure ............................................................................................................................ 202<br />
4.7 Waste Management ................................................................................................................. 222<br />
4.8 Well Containment ..................................................................................................................... 234<br />
5 Summary and Recommendations ..................................................................................................... 238<br />
© 2011 Halliburton All Rights Reserved<br />
2
<strong>EBN</strong> <strong>Notional</strong> <strong>Field</strong> <strong>Development</strong> Plan<br />
Abbreviations<br />
Bcf billion standard cubic feet<br />
BHP Bottom hole flowing pressure<br />
bpm barrels per minute<br />
EUR estimated ultimate recovery<br />
GPa GigaPascal<br />
OGIP Original gas in place<br />
IPR inflow performance relationship<br />
LWD logging while drilling<br />
MMscf million standard cubic feet<br />
MPa MegaPascal<br />
MHF Massive hydraulic fracturing<br />
nD nanoDarcy<br />
nR nanoRadian<br />
NPV net present value<br />
PR Poisson ratio<br />
psi pounds per square inch<br />
RF recovery factor<br />
S Hmax maximum horizontal stress<br />
S hmin minimum horizontal stress<br />
scf standard cubic feet<br />
SRA stimulated reservoir area<br />
SRV stimulated reservoir volume<br />
Tcf trillion standard cubic feet (28320 mn m 3 )<br />
TOC total organic content<br />
UCS unconfined compressive strength<br />
YM Young’s modulus<br />
© 2011 Halliburton All Rights Reserved<br />
3
<strong>EBN</strong> <strong>Notional</strong> <strong>Field</strong> <strong>Development</strong> Plan<br />
List of Figures<br />
Figure 1-1, Region Map ................................................................................................................................. 9<br />
Figure 3-1 KWK-01 Mudlogged Section of Posidonia (Upper Show) & Aalburg (Lower Show) Shales ....... 14<br />
Figure 3-2, Stress Calibration from Dipole Sonic on WWS-02 .................................................................... 15<br />
Figure 3-3, WWS-02 Stimlog Analysis - Best Fit Synthetic DTC-DTS ........................................................... 16<br />
Figure 3-4, Synthetic PHIN to DTC Relationship from OTL-01 .................................................................... 17<br />
Figure 3-5, Brittleness Index ....................................................................................................................... 18<br />
Figure 3-6, Posidonia Shalelog .................................................................................................................... 19<br />
Figure 3-7, Posidonia Stimlog...................................................................................................................... 21<br />
Figure 3-8, Aalburg Shalelog ....................................................................................................................... 22<br />
Figure 3-9, Dipmeter Structural Analysis – Posidonia ................................................................................. 24<br />
Figure 3-10, Dipmeter Structural Analysis – Aalburg .................................................................................. 25<br />
Figure 3-11, World Stress Map & Lower Jurassic Structure ........................................................................ 26<br />
Figure 3-13, Representative 3D Planar Fracture Geometry, Aalburg Shale ............................................... 32<br />
Figure 3-15, Representative 3D DFN Geometry, Posidonia Shale .............................................................. 34<br />
Figure 3-16, Map View of Fracture Network, Posidonia Shale ................................................................... 35<br />
Figure 3-18, Representative 3D DFN Geometry, Aalburg Shale ................................................................. 36<br />
Figure 3-19, Map View of Fracture Network, Aalburg Shale ...................................................................... 37<br />
Figure 3-21, KWK-01 ShaleLog Template .................................................................................................... 42<br />
Figure 3-22, Layer Cake Model Consisting of 35 One Meter Thick Layers.................................................. 43<br />
Figure 3-23, Planar Fracture Design for Posidonia Formation .................................................................... 44<br />
Figure 3-24, Planar Fracture Design within QuikLook Simulator ................................................................ 44<br />
Figure 3-25, Production Forecasts for Initial Four Scenarios ...................................................................... 46<br />
Figure 3-27, Cumulative Gas Produced Over 15 Years for First Four Scenarios ......................................... 46<br />
Figure 3-28, % Improved Cumulative Production Over Vertical Well Scenario .......................................... 47<br />
Figure 3-29, Production Forecasts for Scenarios with Varying Fracture Number ...................................... 47<br />
Figure 3-30, Decline Rates for Scenarios with Varying Fracture Number .................................................. 48<br />
Figure 3-33, Cumulative Production in 15 Years for Six Scenarios ............................................................. 52<br />
Figure 3-34, Decline Rates Over 15 Years for Six Scenarios ........................................................................ 53<br />
Figure 3-35, Comparison of Dual Porosity Model (Unmodified & Modified) vs. the Base Case ................ 54<br />
Figure 3-36, Shale Gas Modeling ................................................................................................................ 55<br />
Figure 3-37, Fracture Complexity Added to Simulate Complex Fractures with Fissures ............................ 55<br />
Figure 3-38, Fracture Complexity Added to Simulate a Complex Fracture Network ................................. 56<br />
Figure 3-39, Fracture Design Used to Model Discrete Fracture Network (DFN) ........................................ 56<br />
Figure 3-40, Cumulative Production Forecasts for Added Fracture Complexity ........................................ 57<br />
Figure 3-41, Decline Rates over 15 Years for Dual Porosity Model ............................................................ 58<br />
Figure 3-42, Cumulative Production Forecast for all Scenarios .................................................................. 59<br />
Figure 3-44, Typical Pressure Response from Fractured Well .................................................................... 67<br />
Figure 3-45, Predicted Test Rate ................................................................................................................. 68<br />
Figure 3-46, Predicted Flowing Bottom Hole Pressure ............................................................................... 68<br />
Figure 3-47, Estimated Flow and Shut-in Period ........................................................................................ 72<br />
© 2011 Halliburton All Rights Reserved<br />
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<strong>EBN</strong> <strong>Notional</strong> <strong>Field</strong> <strong>Development</strong> Plan<br />
Figure 3-48, Estimated Build Up Time ........................................................................................................ 72<br />
Figure 3-49, Zone 8C "Sweet spot" ............................................................................................................. 80<br />
Figure 3-50, Hazard Map ............................................................................................................................. 80<br />
Figure 3-51, "GO" Areas and Initial Pad Locations ..................................................................................... 81<br />
Figure 3-52, Lateral Pad Placement and Well Design Criteria .................................................................... 82<br />
Figure 3-53, Preferred Well Design ............................................................................................................. 82<br />
Figure 3-54, "Fish Hook" Type Well Design ................................................................................................ 83<br />
Figure 3-55, Well Profile Variations ............................................................................................................ 83<br />
Figure 3-56, Well Profile ............................................................................................................................. 84<br />
Figure 3-57, Scenario 1 ............................................................................................................................... 85<br />
Figure 3-58, Scenario 1 ............................................................................................................................... 85<br />
Figure 3-59, Scenario 1 ............................................................................................................................... 86<br />
Figure 3-60, Scenario 1 ............................................................................................................................... 86<br />
Figure 3-61, Scenario 1 3D View of Wells ................................................................................................... 87<br />
Figure 3-62, Scenario 1 - 1500m Laterals .................................................................................................... 87<br />
Figure 3-63, Scenario 2 ............................................................................................................................... 88<br />
Figure 3-64, Scenario 2 ............................................................................................................................... 88<br />
Figure 3-65, Scenario 2 ............................................................................................................................... 89<br />
Figure 3-66, Scenario 2 ............................................................................................................................... 89<br />
Figure 3-67, Scenario 2 3D View of Wells ................................................................................................... 90<br />
Figure 3-68, CWP Scenario #2 Results - 2500m Laterals ............................................................................ 90<br />
Figure 3-69, Scenario 3 ............................................................................................................................... 91<br />
Figure 3-70, Scenario 3 ............................................................................................................................... 91<br />
Figure 3-71, Scenario 3 ............................................................................................................................... 92<br />
Figure 3-72, Scenario 3 ............................................................................................................................... 93<br />
Figure 3-73, Scenario 3 3D View of the Wells ............................................................................................. 93<br />
Figure 3-74, Scenario 3 - 1500 to 2500m Laterals ...................................................................................... 94<br />
Figure 3-75, Scenario 4 ............................................................................................................................... 94<br />
Figure 3-76, Scenario 4 ............................................................................................................................... 95<br />
Figure 3-77, Scenario 4 ............................................................................................................................... 95<br />
Figure 3-78, Scenario 4 ............................................................................................................................... 96<br />
Figure 3-79, Scenario 4 3D View of Wells ................................................................................................... 97<br />
Figure 3-80, Scenario 4 - 1500 to 2500m Laterals ...................................................................................... 97<br />
Figure 3-81, Scenario 5 Hybrid .................................................................................................................... 98<br />
Figure 3-82, Scenario 5 Hybrid .................................................................................................................... 99<br />
Figure 3-83, Scenario 5 Hybrid Wells/Pads ............................................................................................... 100<br />
Figure 3-84, Scenario 5 Hybrid Well Inclination Distribution ................................................................... 101<br />
Figure 3-85, Scenario 5 Pads with 10/9/8 Wells (Yellow Names) ............................................................. 102<br />
Figure 3-86, Scenario 5 Pads with 7/6/5/4/3/2 Wells (Yellow Names) .................................................... 103<br />
3-87, Scenario 6 infill based on Scenario #5 base case ............................................................................. 104<br />
Figure 3-88, Scenario 6 Core Area based on Sc #5 Hybrid Infill case ........................................................ 105<br />
© 2011 Halliburton All Rights Reserved<br />
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<strong>EBN</strong> <strong>Notional</strong> <strong>Field</strong> <strong>Development</strong> Plan<br />
Figure 3-89, Scenario 6 Core Area based on Sc #5 Hybrid Infill case ....................................................... 106<br />
Figure 3-90, Scenario 6 Core Area based on Sc #5 Hybrid Infill case ....................................................... 107<br />
Figure 3-91, Scenario 6 Core Area pad locations ...................................................................................... 108<br />
Figure 3-93, Ball Activated Sliding Sleeve Completion ............................................................................. 113<br />
Figure 3-94, - Hydra-Jet Assisted Fracturing Method ............................................................................... 115<br />
Figure 3-95, HP-ACT Method using Coiled Tubing .................................................................................... 116<br />
Figure 4-1. “Base Case” hypothetical location. ......................................................................................... 124<br />
Figure 4-2. Provisional Procedure ............................................................................................................. 128<br />
Figure 4-3. Surface water in the Netherlands ........................................................................................... 133<br />
Figure 4-4. Wetlands area ......................................................................................................................... 136<br />
Figure 4-5. Excavation equipment ............................................................................................................ 137<br />
Figure 4-7. Procedures and Permits without NCR .................................................................................... 141<br />
Figure 4-8. Fresh water impoundment used to store water for fracking ................................................. 143<br />
Figure 4-11. Surface water includes rivers and streams ........................................................................... 148<br />
Figure 4-12. Surface water in Noord-Brabant, including areas with water supply areas and discharge<br />
sewage water treatment installations. The pink colored circles indicate the capacity (Mm3/yr) of water<br />
discharged from each of these facilities ................................................................................................... 149<br />
Figure 4-13. Area of the De Dommel Water Board, including the location of WWTP facilities: 1) Boxtel<br />
WWTP, 5) Tilburg WWTP, 6) Eindhoven WWTP, 7) Hapert WWTP, 9) Biest-Houtakker WWTP, 10) Haaren<br />
WWTP, 11) Sint-Oedenrode WWTP .......................................................................................................... 151<br />
Figure 4-14. Waste water treatment plant ............................................................................................... 152<br />
Figure 4-32. Diagram of Injection Well ..................................................................................................... 172<br />
Figure 4-33. Truck hauling produced water to an off-site disposal facility .............................................. 174<br />
Figure 4-35. Diesel-fired generator ........................................................................................................... 178<br />
Figure 4-36. Noise barriers are constructed to limit noise levels during construction activities ............. 180<br />
Figure 4-38. Diesel-fired construction lighting trailer ............................................................................... 185<br />
Figure 4-39. Example risk contour (Source: Oranjewoud rapport "Onafhankelijk rapport<br />
schaliegaswinning in Nederland) .............................................................................................................. 187<br />
Figure 4-40. Example risk contour (Source: Oranjewoud rapport "Oranjewoud rapport schaliegaswinning<br />
in Nederland) ............................................................................................................................................ 188<br />
Figure 4-41. A typical production site in the Netherlands ........................................................................ 189<br />
Figure 4-42. Wellheads on multi-well pad site ......................................................................................... 192<br />
Figure 4-43. Representation of 3D seismic data ....................................................................................... 193<br />
Figure 4-44. Geotechnical soil boring ....................................................................................................... 194<br />
Figure 4-45. Typical Well Pad Design ........................................................................................................ 195<br />
Figure 4-46. Wellpad with impoundment ................................................................................................. 196<br />
Figure 4-47. Impoundment for storage of water ...................................................................................... 197<br />
Figure 4-48. Installation of liner system for impoundment ...................................................................... 197<br />
Figure 4-50. Impoundment with above-ground water pipelines along side of roadway ......................... 200<br />
Figure 4-51. Stored wellpad site with wellheads and produced water storage tanks ............................. 201<br />
Figure 4-52. Typical drilling rig .................................................................................................................. 203<br />
© 2011 Halliburton All Rights Reserved<br />
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<strong>EBN</strong> <strong>Notional</strong> <strong>Field</strong> <strong>Development</strong> Plan<br />
Figure 4-53. Staging of equipment for fracing operation ......................................................................... 204<br />
Figure 4-54. Asphalt road constructed to access produced water tanks ................................................. 205<br />
Figure 4-55. Electrical substation .............................................................................................................. 206<br />
Figure 4-56. Gas gathering system ............................................................................................................ 206<br />
Figure 4-57. Typical gas processing facility ............................................................................................... 207<br />
Figure 4-58. Gas processing facility........................................................................................................... 209<br />
Figure 4-59. Metering station ................................................................................................................... 210<br />
Figure 4-60. Produced water tanks with secondary containment ........................................................... 211<br />
Figure 4-61. Skid-mounted compressor .................................................................................................... 212<br />
Figure 4-62. Metering station along transmission pipeline ...................................................................... 213<br />
Figure 4-63. Control room for monitoring of SCADA system.................................................................... 214<br />
Figure 4-64. Pipeline right-of-way during construction ............................................................................ 215<br />
Figure 4-65. Surveying the right-of-way ................................................................................................... 216<br />
Figure 4-66. Lowering of pipe into trench ................................................................................................ 217<br />
Figure 4-67. Equipment for boring on horizontal directional drilling (HDD) operations .......................... 218<br />
Figure 4-68. Restoration of pipeline right-of-way .................................................................................... 220<br />
Figure 4-69. Pigging inspection tool .......................................................................................................... 221<br />
Figure 4-70. Pig launchers ......................................................................................................................... 221<br />
Figure 4-71. Markers along pipeline right-of-way .................................................................................... 222<br />
Figure 4-72. Graph of fracing fluid composition ....................................................................................... 224<br />
Figure 4-74. Drilling pipe can become NORM contaminated ................................................................... 228<br />
Figure 4-75. Typical retention basin used for stormwater management ................................................. 230<br />
Figure 4-76. Silt fence used as an erosion and sediment control device.................................................. 232<br />
Figure 4-77. Spill response equipment ..................................................................................................... 233<br />
Figure 4-78, Diagram of well casing for horizontal well ........................................................................... 234<br />
Figure 4-79. Representation of drinking water tables in relation to shale gas drilling operations .......... 237<br />
© 2011 Halliburton All Rights Reserved<br />
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<strong>EBN</strong> <strong>Notional</strong> <strong>Field</strong> <strong>Development</strong> Plan<br />
List of Tables<br />
Table 3-1, Fracture Modeling Results ......................................................................................................... 28<br />
Table 3-2, Fracture Model Inputs ............................................................................................................... 29<br />
Table 3-3, Treatment Schedule for Fracture Design ................................................................................... 30<br />
Table 3-4, Preliminary Planar Fracture Model Summary (σ 2 >> σ 3 , average for two fractures), Posidonia<br />
shale ............................................................................................................................................................ 31<br />
Table 3-5, Preliminary Planar Fracture Model Summary (σ 2 >> σ 3 , average for two fractures), Aalburg<br />
shale ............................................................................................................................................................ 31<br />
Table 3-6, Preliminary DFM Fracture Model Summary (σ 2 > σ 3 , average for two networks), Posidonia<br />
shale ............................................................................................................................................................ 33<br />
Table 3-9, Comparison Results for DFN and Planar Fracture Geometry (20/40-mesh RC proppant),<br />
Aalburg Shale .............................................................................................................................................. 38<br />
Table 3-10, Permeability Table ................................................................................................................... 40<br />
Table 3-12, Initial Four Scenarios Based on KWK-01 .................................................................................. 45<br />
Table 3-13, Production Forecast Results of Scenarios with Varying Fracture Number .............................. 48<br />
Table 3-17, Job Parameter Comparison on Methods ............................................................................... 119<br />
Table 3-18, Comparison Results................................................................................................................ 119<br />
Table 4-3. Information about WWTP ....................................................................................................... 153<br />
Table 4-4 Flowback Water Chemical Composition – usually collected from Day 1 through 30 after a<br />
hydraulic fracture event............................................................................................................................ 158<br />
Table 4-5. Produced Water Chemical Composition .................................................................................. 158<br />
Table 4-7. Relevant Emission Guidelines .................................................................................................. 176<br />
Table 4-10. Existing Levels of Lighting ...................................................................................................... 183<br />
Table 4-11. Sports Lighting Levels ............................................................................................................. 184<br />
Table 4-12. Public Lighting Levels ............................................................................................................. 184<br />
Table 4-13. Fracturing Fluid Additives, Main Compounds, and Common Uses ....................................... 225<br />
© 2011 Halliburton All Rights Reserved<br />
8
<strong>EBN</strong> <strong>Notional</strong> <strong>Field</strong> <strong>Development</strong> Plan<br />
1 Project Identification<br />
Halliburton is pleased to present the final report for the <strong>Notional</strong> <strong>Field</strong> <strong>Development</strong> Plan Shale Play<br />
Noord Brabant, Netherlands to <strong>EBN</strong>. In preparation for exploration efforts in the Lower Jurassic shale<br />
gas in the Boxtel exploration concession (Province of Noord Brabant), we investigated the possibilities of<br />
a commercial shale gas development in the area concerned as identified as Zone 8C (which is deemed to<br />
have representative characteristics - surface and subsurface - for the whole of the area of interest for<br />
shale developments).<br />
Figure 1-1, Region Map<br />
In order to facilitate the need for <strong>EBN</strong> to have a more general look at the area, we reviewed multiple<br />
scenarios some of which will be detailed in the report. The team consistently kept the final deliverable<br />
(which is below) in mind when producing this final report. In the following sections you will see how the<br />
team met the final deliverables in each of the sections while giving alternative scenarios to be evaluated<br />
in a potential next phase.<br />
© 2011 Halliburton All Rights Reserved<br />
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<strong>EBN</strong> <strong>Notional</strong> <strong>Field</strong> <strong>Development</strong> Plan<br />
Deliverables<br />
• Petrophysical analysis (1 well) for fracture design*( A type of well that will be selected from a<br />
number of wells (≤5) that <strong>EBN</strong> will provide)<br />
• Fracture treatment and well test conceptual design<br />
• Scenario surface configurations<br />
• Conceptual completion design<br />
• Water and frac systems descriptions<br />
• High-level documentation of critical project risks<br />
• Recommendations for “next steps”<br />
During the project various team members made several field trips within the US, to gain knowledge of<br />
shale production in both the Eagle Ford and Marcellus shale plays. These field trips were intended to<br />
add value to <strong>EBN</strong> in their further exploration of shale plays in the Netherlands.<br />
© 2011 Halliburton All Rights Reserved<br />
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<strong>EBN</strong> <strong>Notional</strong> <strong>Field</strong> <strong>Development</strong> Plan<br />
2 Background Information<br />
2.1 Surface Constraints<br />
The pro-active planning for and responsible management of the surface facilities are critical elements of<br />
a shale gas development program because they are the only visual signs of the development activities<br />
that agency personnel and the general public can see and serve as a “representation” of the planning<br />
and standard of care related to the subsurface work.<br />
It is imperative that the surface facilities be developed in a transparent, responsible manner. Although<br />
the extraction of these gas resources is primarily a subsurface activity, in the eyes of the public - the<br />
surface facilities serve as the only visual representation of development efforts.<br />
The standard of care required for the development of these surface facilities is high and they must be<br />
designed, constructed and maintained in such a manner that exceeds the minimum regulatory<br />
requirements and industry standards. They serve to preemptively demonstrate that <strong>EBN</strong> have<br />
addressed any stakeholder concerns.<br />
From an environmental perspective, there are a number of stakeholder concerns that must be<br />
considered in relation to the surface facilities including:<br />
• Water resources<br />
o Design of drilling plans and design of well bores to ensure there is no potential for the<br />
contamination of drinking water supplies<br />
o The procurement of source water for drilling and fracing operations so as to not impact<br />
the availability and production volumes required by other stakeholders<br />
o The storage, use (and re-use) and disposal of these waters so as to not adversely affect<br />
the sounding communities<br />
• Air quality<br />
o Addressing the air emissions produced by the equipment required to extract, process<br />
and transport the shale gas<br />
o Concerns for the potential for increased greenhouse gas (GHG) emissions<br />
• Ecological<br />
o Selecting locations that limit to the minimum the ecological impacts on the natural<br />
environment<br />
o Implementing plans and procedures that reduce the potential for erosion of the soils<br />
and natural landscape and pollute nearby water bodies<br />
• General environmental and health & safety<br />
o Minimizing the potential soil contamination as a result of the operations<br />
o Eliminating the potential increased human health or ecological risks<br />
o Managing the noise levels and lighting emissions so as to not adversely impact the<br />
surrounding communities<br />
• Quality of life<br />
© 2011 Halliburton All Rights Reserved<br />
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<strong>EBN</strong> <strong>Notional</strong> <strong>Field</strong> <strong>Development</strong> Plan<br />
o<br />
o<br />
<strong>Development</strong> plans that address issues such damage to roadways, traffic congestion,<br />
work hours and increased population associated with construction, drilling and<br />
operational activities<br />
Design of facilities and landscaping so as to minimize visual impairment of the natural<br />
environment<br />
For the purposes of this notional / feasibility study, the scope of work (SOW) for the team assigned to<br />
identify the critical issues associated with the construction and operation of the surface facilities<br />
required to support responsible shale gas development within the Netherlands has prepared sections<br />
within this report to address the potential concerns associated with the following surface facilities:<br />
• Wellpad site<br />
• Impoundments used for the storage of water<br />
• Water supply pipeline infrastructure<br />
• Gas processing facilities<br />
• Gathering systems<br />
• Transmission pipelines and requisite support facilities (metering, compression stations)<br />
The identified potential constraints are addressed in Section 4 of this report.<br />
© 2011 Halliburton All Rights Reserved<br />
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<strong>EBN</strong> <strong>Notional</strong> <strong>Field</strong> <strong>Development</strong> Plan<br />
3 Technical Analysis<br />
3.1 Petrophysical Evaluation<br />
3.1.1 G&G Analysis<br />
<strong>EBN</strong>’s formation evaluation goals were to obtain an independent evaluation of possible commercial<br />
shale gas and oil within the Jurassic aged Posidonia and Aalburg formations. Various types of formation<br />
information were made available to the Halliburton Consulting team that indicates the presence of<br />
kerogen rich organic shale within these two intervals. Our main goal was to quantify how good the<br />
resource potential is based on actual hydrocarbon in place and how well the individual shales could be<br />
fracture stimulated based on modeled mechanical properties. In addition, we wanted to mine all<br />
available sub-surface information for hints to hydrocarbon type, formation temperature and pressure,<br />
and any available formation structure and fault information. We therefore selected adjacent wells to<br />
provide this information. The main well chosen as the nearest offset to the proposed project area and<br />
having wireline data over the intervals of interest was the KWK-01.<br />
© 2011 Halliburton All Rights Reserved<br />
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<strong>EBN</strong> <strong>Notional</strong> <strong>Field</strong> <strong>Development</strong> Plan<br />
3.1.2 Mudlog Analysis<br />
Figure 3-1 KWK-01 Mudlogged Section of Posidonia (Upper Show) & Aalburg (Lower Show) Shales<br />
The mudlog indicates an excellent gas show in the Posidonia between 1750 and 1850 meters. Sample is<br />
described as pyritic shale with some calite carbonate near base of the show section. The Aalburg Shale is<br />
also demonstrating a decent gas show while drilling between the depths of 2075 and 2250 meters but<br />
not near as high as the Posidonia. Mud weight was calculated to be equivalent to 9.6 lbs /gallon for both<br />
intervals.<br />
© 2011 Halliburton All Rights Reserved<br />
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<strong>EBN</strong> <strong>Notional</strong> <strong>Field</strong> <strong>Development</strong> Plan<br />
3.1.3 Petrophysics<br />
First, a synthetic DTC & DTS mechanical rock properties model had to be developed on a well where <strong>EBN</strong><br />
had dipole sonic data. This was performed on the deeper (Triassic) sections of the WWS-02 well. Next,<br />
the missing neutron data needed to be remedied by developing a DTC to synthetic neutron conversion<br />
by crossplot analysis across the same organic shales in the OTL-1 well. This was done and the final<br />
analysis performed across both the Posidonia & Aalburg Shales.<br />
3.1.3.1 Stress Calibration<br />
Figure 3-2, Stress Calibration from Dipole Sonic on WWS-02<br />
Eight separate crossplots determining relationships between measured compressional and shear<br />
velocities were analyzed. Obvious linear relationships were best fit to apparent crossplot porosity (PHIA)<br />
and neutron porosity (PHIN). These were the only relationships that met selection criteria for building<br />
synthetic DTC and DTS curves from triple combo data when no actual dipole sonic data is available. That<br />
selection criteria being that the three curves used agree within one standard deviation of the composite<br />
mean.<br />
The real and synthetic DTC & DTS curves were then tested in a Stimlog TM analysis of the WWS-02 well.<br />
The calculated interval was the deeper pay section of Triassic age below any of the target organic shales,<br />
© 2011 Halliburton All Rights Reserved<br />
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<strong>EBN</strong> <strong>Notional</strong> <strong>Field</strong> <strong>Development</strong> Plan<br />
but the clay bound water porosity sections were very similar to the uphole organic shales we are<br />
interested in. These lower sections will be mostly mechanically analogous because clay bound water<br />
drives the majority of the mechanical properties in these types of shales. The synthetic curves<br />
demonstrated good fidelity to the measured velocities over all ranges of porosity and lithology. we do<br />
have a measured DTC across the organic shales of interest in the KWK-01 well that will also allow us to<br />
quality check our synthetically derived DTC & DTS in that well.<br />
Figure 3-3, WWS-02 Stimlog Analysis - Best Fit Synthetic DTC-DTS<br />
3.1.3.2 Synthetic Neutron Calibration<br />
The OTL-1 well had both a neutron & DTC available across the target zones, so that well was used to<br />
baseline the calibration function. This may sound unorthodox, but the neutron and DTC both primarily<br />
respond to all the water in any formation. The only place they might significantly diverge is in a partially<br />
geopressured gas interval where the gas would make the DTC read higher and the neutron lower. In the<br />
crossplot data below, it is easy to see that the central range of data is going to only support a synthetic<br />
neutron with an accuracy of +/- .03 which is roughly a 10% swing in either direction. This will manifest<br />
itself in a total porosity that is too high by the same amount before we correct for clay and calculate<br />
kerogen volume.<br />
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Figure 3-4, Synthetic PHIN to DTC Relationship from OTL-01<br />
The concept of Shale “Brittleness Index” is reviewed here for the reader. The concept of a relationship<br />
linking Young’s Modulus & Poisson’s Ratio for describing generated fracture complexity has been gaining<br />
industry acceptance for quite some time. It is another way to describe “soft” ductile rock vs. “hard”<br />
brittle rock and the type of exposed surface we can expect when we frac. The harder a rock is, the more<br />
fracture complexity is generated when its frac gradient is exceeded. This is particularly true when a low<br />
stress anisotropy (σ2~σ3) condition exists. Generally speaking, a rock’s brittleness index is driven most<br />
by total clay volume. The brittleness index is one of the primary output curves of the Shalelog analysis<br />
across the organic shales in this project.<br />
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Figure 3-5, Brittleness Index<br />
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3.1.3.3 Posidonia Shalelog<br />
Figure 3-6, Posidonia Shalelog<br />
The Posidonia Shalelog Analysis uses a Passey Delta LOG R technique (3’rd track from right) to calibrate<br />
a calculated TOC to actual core measurements (2’d track from right). Two separate calculations using<br />
RHOB & DTC compare very favorably suggesting that the primary hydrocarbon type here is oil or rich gas<br />
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condensate. If the fluid type is dry gas, we would see a higher Passey calculation of TOC from the sonic<br />
which would be more affected by a DTC “stretch” effect from gas attenuation. That doesn’t appear to be<br />
the case here. Using both Passey techniques, the TOC is ranging between 4 and 16 and is averaging at<br />
least 6 through the section of highest effective porosity. Using default isotherms and a mud weight<br />
equivalent pore pressure in the calculation, the program gives us 250-300 SCF/TON. No attempt is made<br />
here to convert that value to oil since we need to knowthe GOR.<br />
. We would describe the main Posidonia porosity interval as high clay and carbonate shale with at least<br />
some background silica matrix. This is very soft, ductile shale with a very low brittleness calculation. This<br />
compares favorably with very low brinnell hardness values measured from core. Calculated mechanical<br />
properties show an YM of 1-1.2 MM psi and PR of .28-.31 and that would immediately suggest very low<br />
fracture complexity. This low value of YM corresponds very well to lab measurements of dynamic<br />
Young’s Modulus from other well core data referenced by <strong>EBN</strong> geologists. The shape of the displayed<br />
“Fracture Width” (immediately to the right of the Brittleness Index) would imply that although soft,<br />
there are apparently no real barriers to frac height growth across the face of the higher effective<br />
porosity interval.<br />
3.1.3.4 Posidonia Stimlog<br />
The attached Posidonia Stimlog is another way to better graphically display the proposed shale pay<br />
mechanical properties. There appears to be at least a 500 psi difference in closure stress between the<br />
best effective shale porosity and the bounding clay shales above and below. Note that the closure stress<br />
gradient and fracture gradient are presented in units of psi/meter. Calculated formation pressure is +/-<br />
2700 psi (a 1.5 psi/meter gradient).<br />
Note that the synthetic DTC from the stress model overlays the measured DTC in this well. This gives us<br />
confidence in our calibration parameters for stress for the whole project.<br />
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Figure 3-7, Posidonia Stimlog<br />
Posidonia Interval Stimlog - Net pay, digital number output, closure stress gradient, frac gradient, and<br />
unconfined stress added to display.<br />
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3.1.3.5 Aalburg Shalelog<br />
Figure 3-8, Aalburg Shalelog<br />
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The Aalburg interval is much thicker with four organic rich intervals but virtually no effective porosity.<br />
Using all the same interpretation parameters as the Posidonia above, there is much lower TOC and<br />
much higher clay by volume. All four zones are slightly more brittle than the Posidonia, but only the<br />
zones between 2060-2110 and 2130-2200 had any mudlog show.<br />
3.1.4 Dipmeter Analysis<br />
Posidonia & Aalburg intervals were luckily covered by a fairly high quality dipmeter run in the KWK-01.<br />
Solid filled dip tadpoles demonstrate high confidence in dip calculations in both zones. The bottom of<br />
the interpreted higher porosity interval in the Posidonia is cut by a higher angle fault block “wedge” as<br />
annotated below. This may or may not be a sealed fault block and could pose screenout risk when<br />
interval is fracture stimulated.<br />
Looking at structural dip orientation in the main Posidonia porosity, the plane of maximum principle<br />
stress should be perpendicular to the structural dip direction. Horizontal frac azimuth would most likely<br />
be E-NE x W-SW at this location. It should be noted that that is 70 to 90 degrees different than what is<br />
documented by large regional stress map supplied by <strong>EBN</strong>.<br />
Due to complex deposition and subsequent geologic extension and inversion, there may be little link<br />
between actual current structure and expected stress field orientation. The current stress field<br />
orientation should be one of the primary objectives of any new vertical well evaluation across the<br />
Posidonia and Aalburg Shales. Be aware that the stress field could be quite different from place to place<br />
within a large development area and the optimal azimuthal placement of horizontal wells is critical for<br />
such a play.<br />
Too high of structural dip can impose mechanical conditions that are sub-optimal for horizontal well<br />
development. The formation dip of 4 to 5 degrees in the Posidonia is still within reality for at least<br />
moderate horizontal well lengths.<br />
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Figure 3-9, Dipmeter Structural Analysis – Posidonia<br />
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Figure 3-10, Dipmeter Structural Analysis – Aalburg<br />
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3.1.5 The Aalburg interval is showing 10-16 degree dip and too high dip<br />
rates for even a moderate reach horizontal well. Regional Stress<br />
Figure 3-11, World Stress Map & Lower Jurassic Structure<br />
<strong>EBN</strong> supplied stress map has regional faults and Sh max generally oriented NW x SE. A typical horizontal<br />
well azimuth with expectations of transverse frac placement should then be drilled NE x SW. Care should<br />
be taken to actually analyze the local stress field with oriented dipole sonics and borehole image logs<br />
run in vertical pilot holes at different locations. There is some significant local twisting of major faults as<br />
mapped under the proposed project area.<br />
3.1.6 Petrophysical Summary & Recommendations<br />
Posidonia shale has excellent effective porosity even if we have to ultimately discount some of it. It has a<br />
good solid range of excellent TOC per foot which should translate into high hydrocarbon volume. We<br />
would call it gas condensate or high liquids productive shale until we have data to support otherwise. It<br />
is very ductile and soft. It will swallow proppant unless high conductivity designs are pumped using<br />
higher prop concentrations and larger size proppant.<br />
The obvious faulted wedge below the Posidonia zone in the KWK-01 confirms the presence of high<br />
energy tectonic activity that should propagate at least some kind of natural fractures or complex stress<br />
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into the shale. Any analysis program should include multiple DFITs (diagnostic fracture injection tests) to<br />
confirm PDL (pressure dependent leakoff) behavior that would be caused by natural fractures.<br />
We suggest pilot wells be pursued across the proposed project area running all available geochemical<br />
and oriented stress logs and then correlate all measurements to full core measurements. Set casing on<br />
these wells with tubulars large enough to use the same wells for whip-stock horizontal utility in the near<br />
future.<br />
The two uppermost intervals of the Aalburg shale should be better evaluated with vertical well testing in<br />
the same program. It also has to have a structural dip less than 10 degrees in any particular area to be a<br />
viable horizontal target.<br />
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3.2 Hydraulic Fracture Design<br />
The objective of this study was to estimate preliminary transverse hydraulic fracture geometry in a<br />
horizontal wellbore for the Posidonia and Lower Aalburg shale gas formations. Both planar and discrete<br />
fracture networks solutions are presented. Two transverse fractures were modeled for each fracture<br />
stage.<br />
Results from the preliminary fracture modeling suggest:<br />
Table 3-1, Fracture Modeling Results<br />
Posidonia and Lower Aalburg*<br />
Rate (per transverse fracture), bpm / m3/min ~ 20 / 3.5<br />
Water Volumes (per transverse fracture), bbl / m3 ~ 1500 / 239<br />
Proppant Mass (per transverse fracture), lbm / kg ~ 247,500 / 112,264<br />
*Lower Aalburg was modeled with the recommended hydraulic fracture treatment schedule from the<br />
Posidonia. Rates, mass and volumes are consistent between the two formations but do result in<br />
different geometries.<br />
3.2.1 Fracture Modeling Scenarios<br />
Petrophysical data used for fracture model inputs were derived from the offset well KWK-01 and the<br />
experience with similar shale formations in North America (Eagle Ford Shale). The log derived rock<br />
properties for the Posidonia and Lower Aalburg (low Young’s Modulus and ductile) require larger mesh<br />
proppant for the required conductivity to maintain reservoir liquid hydrocarbon flow to the wellbore.<br />
Proppant embedment, proppant crushing, and formation fines migration, cycling, and gel damage result<br />
in a loss of conductivity. The Posidonia and Aalburg appear to be especially prone to proppant<br />
embedment (i.e., loss of fracture width) and traditional low concentrations of small-mesh proppant are<br />
unlikely to be as effective as a higher conductivity pack. Higher proppant concentrations 1 to 8 lbs/ft 2<br />
(120 to 960 kg/m 3 ) may be required.<br />
Fracture models inputs were run utilizing a permeability of 100 nD and total leakoff coefficient of<br />
C t= 0.0002 ft/min 1/2 (0.00610 cm/min 1/2 ). Closure pressure was estimated at 4760 psi (328.2 bar) for<br />
Posidonia and 5180 psi (357.1 bar) for Aalburg from log derived petrophysical analysis. <strong>Final</strong> fracture<br />
conductivity and fracture characteristics were determined using a defined fracture cutoff of 0.5 lbm/ft 2<br />
(2.44 kg/m 2 ). The fracture geometry may appear overdesigned, but the fracture models assumed a<br />
proppant pack damaged of 90% damage to account for conductivity loss (embedment, etc). There are<br />
multiple modeling options to address these problems but this methodology is a consistent modeling<br />
approach used in other North American shales.<br />
For comparative purposes of fracture conductivity, two different sizes of proppant were used: 20/40 and<br />
30/50-mesh, both Atlas Premium Resin Coated proppant. Halliburton fracturing fluid, Sirocco 30<br />
lb/Mgal was used as the fracturing fluid. Sirocco fluid provides high loading proppant transport<br />
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capabilities, uses less base polymer resulting in much higher regained conductivity with low gel residue<br />
in the proppant pack.<br />
Table 3-2, Fracture Model Inputs is a summary of the inputs used for the fracture design modeling.<br />
Table 3-2, Fracture Model Inputs<br />
Casing:<br />
177.8 x 114.3 mm (7” 32.0 lb/ft x 4 ½”, 13.5 lb/ft)<br />
Perforations (Posidonia): 3100 m TVD (10,170 ft), 48 perfs w/10 mm (0.39”)<br />
Perforations (Aalburg): 3350 m TVD (10,990 ft), 48 perfs w/10 mm (0.39”)<br />
Permeability:<br />
100 nD<br />
Total Leakoff, Ct:<br />
0.00610 cm/min1/2 (0.0002 ft/min1/2)<br />
Min. Conc. for Fracture:<br />
2.44 kg/m2 (0.5 lbm/ft2)<br />
Fluid:<br />
Sirocco 30 lb/Mgal<br />
Proppant:<br />
20/40 RC (Atlas PRC), 30/50 RC (Atlas PRC)<br />
Stress Gradient*:<br />
0.105 bar/m (0.517 psi/ft)<br />
Closure Pressure (Posidonia):<br />
328.2 bar (4760 psi)<br />
Closure Pressure (Aalburg):<br />
357.1 bar (5180 psi)<br />
Fracture interaction<br />
Active<br />
DFN: Natural fracture spacing<br />
dy= dx= dz = 7.62 m (25 ft)<br />
DFN: Proppant distribution<br />
Uniform<br />
*The stress gradient was obtained honoring log derived mechanical properties. However, the stress<br />
values are lower than expected and lower that what is typically seen in other shale formations. These<br />
values need to be confirmed and updated after the DFIT and log analysis is completed on the vertical<br />
well.<br />
The recommended pumping schedule for both Planar and Discrete Fracture Modeling Scenarios is<br />
Table 3-3, Treatment Schedule for Fracture Design. The pad fluid is pumped during the first stage of the<br />
treatment to create initial fracture geometry. The pad is followed by eight sets of 20/40 or 30/50-mesh<br />
proppant slurry, helping to develop geometry, conductivity and fracture length. During these eight<br />
stages of the treatment, the proppant is staged up from 1 ppg (119.83 kg/m 3 ) to 8 ppg (958.61 kg/m 3 ).<br />
At the end of placing the slurry 17.413 m 3 of flush is pumped to clear tubulars of proppant. Each stage of<br />
the treatment is designed for an average slurry rate of 7.15 m 3 /min (45 bpm). Total liquid volume per<br />
stage is 477.34 m 3 (3000 bbls). Total proppant mass is 224,530 kg (495,000 lbs) per stage. This treatment<br />
creates a maximum surface treating pressure of 291 bar (4221 psi), assuming the current stress gradient<br />
of 0.105 bar/m (0.517 psi/ft).<br />
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Table 3-3, Treatment Schedule for Fracture Design<br />
Stage<br />
Average<br />
Slurry<br />
Rate<br />
Liquid<br />
Volume<br />
Slurry<br />
Volume<br />
Total<br />
Slurry<br />
Volume<br />
Total<br />
Time<br />
No. (m³/min) (m³) (m³) (m³) (min)<br />
Fluid<br />
Type<br />
Prop<br />
Type<br />
Conc.<br />
From<br />
100<br />
kg/m3<br />
Conc.To<br />
100<br />
kg/m3<br />
Prop.<br />
Stage<br />
Mass<br />
1 7.1544 107.88 107.88 107.88 15.079 SIRC30 0000 0 0 0<br />
2 7.1544 11.356 11.892 119.78 16.742 SIRC30 A001 1.1983 1.1983 1360.8<br />
3 7.1544 22.712 24.855 144.63 20.216 SIRC30 A001 2.3965 2.3965 5443.1<br />
4 7.1544 34.069 38.89 183.52 25.652 SIRC30 A001 3.5948 3.5948 12247<br />
5 7.1544 45.425 53.997 237.52 33.199 SIRC30 A001 4.7931 4.7931 21772<br />
6 7.1544 56.781 70.175 307.69 43.007 SIRC30 A001 5.9913 5.9913 34019<br />
7 7.1544 68.137 87.424 395.12 55.227 SIRC30 A001 7.1896 7.1896 48988<br />
8 7.1544 68.137 90.638 485.76 67.896 SIRC30 A001 8.3878 8.3878 57153<br />
9 7.1544 45.425 62.569 548.32 76.641 SIRC30 A001 9.5861 9.5861 43545<br />
10 7.1544 17.413 17.413 565.74 79.075 SIRC30 A001 0 0 0<br />
Total Slurry Volume 565.74 (m³)<br />
Total Liquid Volume 477.34 (m³)<br />
Total Proppant Mass 2.2453e+05 (kg)<br />
kg<br />
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3.2.2 Planar Geometry Modeling Scenario<br />
The Preliminary Planar Fracture Model Summaries for Posidonia and Aalburg with two sizes of proppant<br />
are shown in the<br />
Table 3-4, Preliminary Planar Fracture Model Summary (σ2>> σ3, average for two fractures), Posidonia<br />
shale and<br />
Table 3-5, Preliminary Planar Fracture Model Summary (σ2>> σ3, average for two fractures), Aalburg<br />
shale below.<br />
Table 3-4, Preliminary Planar Fracture Model Summary (σ 2 >> σ 3 , average for two fractures), Posidonia shale<br />
20/40-mesh RC proppant<br />
30/50-mesh RC proppant<br />
• Efficiency, h = 90%<br />
• Efficiency, h = 90%<br />
• DPnet = 47.5 bar (688 psi)<br />
• DPnet = 47.2 bar (684 psi)<br />
• hf = 41 m (134 ft)<br />
• hf = 38.5 m (126 ft)<br />
• xf create = 257.2 m (844 ft)<br />
• xf create = 264.1 m (867 ft)<br />
• xf prop = 171.7 m (563 ft)<br />
• xf prop = 174.98 m (574 ft)<br />
• wf prop = 0.7 cm (0.276 in)<br />
• wf prop = 0.66 cm (0.26 in)<br />
• kfwf = 121.8 mD-m (399.6 mD-ft)<br />
• kfwf = 59.7 mD-m (195.8 mD-ft)<br />
• CfD = 7902<br />
• CfD = 3411<br />
It can be seen from the table that comparing two different sizes of proppant 20/40 and 30/50, the<br />
fracture conductivity created with 20/40-mesh proppant is approximately double the fracture<br />
conductivity created with 30/50-mesh proppant with similar geometries. However, placing the larger<br />
mesh proppant needs to be evaluated in the final design.<br />
Table 3-5, Preliminary Planar Fracture Model Summary (σ 2 >> σ 3 , average for two fractures), Aalburg shale<br />
20/40-mesh RC proppant<br />
30/50-mesh RC proppant<br />
• Efficiency, h = 88%<br />
• Efficiency, h = 88%<br />
• DPnet = 88 bar (1278 psi)<br />
• DPnet = 87 bar (1262 psi)<br />
• hf = 30.8 m (101 ft)<br />
• hf = 30.8 m (101 ft)<br />
• xf create = 357.1 m (1172 ft)<br />
• xf create = 358.5 m (1176 ft)<br />
• xf prop = 228.4 m (749 ft)<br />
• xf prop = 228.6 m (750 ft)<br />
• wf prop = 0.16 cm (0.06 in)<br />
• wf prop = 0.15 cm (0.06 in)<br />
• kfwf = 25.97 mD-m (85.2 mD-ft)<br />
• kfwf = 12.6 mD-m (41.5 mD-ft)<br />
• CfD = 1137<br />
• CfD = 553<br />
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Figure 3-12, Resulting Similar Planar Fracture Geometry for both 20/40 & 30/50 Fracture Treatments, Aalburg Shale<br />
Figure 3-13, Representative 3D Planar Fracture Geometry, Aalburg Shale<br />
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3.2.3 Discrete Modeling Scenario<br />
Most conventional fracture treatments result in bi-wing fractures. However, some naturally fractured<br />
coal and shale formations have geomechanical properties that allow hydraulically induced discrete<br />
fractures to initiate, propagate and create complex fracture networks, modeled discretely. Discrete<br />
Fracture Network (DFN) modeling is based on a methodology similar to that presented by Warren and<br />
Root (1963) for dual porosity naturally fractured reservoirs and Meyer et. al (2010) in SPE 140514. The<br />
discrete fracture network may be composed of secondary fractures in all three principal planes. The<br />
discrete fractures created in the x-z (major axis) and y-z (minor axis) planes are vertical, while the<br />
induced fractures created in the x-y plane are horizontal. The spacing in the x-z, y-z, and x-y planes are<br />
∆ y , ∆ x , and ∆ z , respectively. The Preliminary Discrete Fracture Network Model Summary with two<br />
sizes of proppant is shown in<br />
Table 3-6, Preliminary DFM Fracture Model Summary (σ2> σ3, average for two networks), Posidonia<br />
shale below.<br />
Table 3-6, Preliminary DFM Fracture Model Summary (σ 2 > σ 3 , average for two networks), Posidonia shale<br />
20/40-mesh RC proppant<br />
30/50-mesh RC proppant<br />
• Efficiency, h = 75%<br />
• Efficiency, h = 75%<br />
• DPnet = 45.3 bar (657 psi)<br />
• DPnet = 45.7 bar (662 psi)<br />
• hf = 39 m (128 ft)<br />
• hf = 39 m (128 ft)<br />
• xf create = 205.2 m (673 ft)<br />
• xf create = 205.5 m (674 ft)<br />
• xf prop = 152.4 m (500 ft)<br />
• xf prop = 152.95 m (502 ft)<br />
• wf prop = 0.32 cm (0.12 in)<br />
• wf prop = 0.32 cm (0.12 in)<br />
• kfwf = 56.3 mD-m (184.7 mD-ft)<br />
• kfwf = 28.3 mD-m (92.8 mD-ft)<br />
• CfD = 7390<br />
• CfD = 3699<br />
• Network Width: ~35 m (~115 ft)<br />
• Network Width: ~35 m (~115 ft)<br />
With the Discrete Fracture Network the length of the single wing fracture remains the same for both<br />
sizes of proppant. The DFN geometry can be seen in Figure 3-14, Resulting Similar Discrete Fracture<br />
Model Geometry (20/40 & 30/50 Fracture Treatment), Posidonia Shale.<br />
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Figure 3-14, Resulting Similar Discrete Fracture Model Geometry (20/40 & 30/50 Fracture Treatment), Posidonia Shale<br />
Figure 3-15, Representative 3D DFN Geometry, Posidonia Shale<br />
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Figure 3-16, Map View of Fracture Network, Posidonia Shale<br />
Table 3-7, Preliminary DFN Fracture Model Summary (σ 2 > σ 3 , average for two networks), Aalburg Shale<br />
20/40-mesh RC proppant<br />
30/50-mesh RC proppant<br />
• Efficiency, h = 69%<br />
• DPnet = 95.2 bar (1380 psi)<br />
• hf = 23.4 m (77 ft)<br />
• xf create = 257 m (843 ft)<br />
• xf prop = 176.4 m (579 ft)<br />
• wf prop = 0.06 cm (0.03 in)<br />
• kfwf = 10.7 mD-m (35 mD-ft)<br />
• CfD = 1208<br />
• Network Width: 40 m (131 ft)<br />
• Efficiency, h = 71%<br />
• DPnet = 98.8 bar (1428 psi)<br />
• hf = 22.6 m (74 ft)<br />
• xf create = 285.7 m (937 ft)<br />
• xf prop = 182 m (597 ft)<br />
• wf prop = 0.05 cm (0.02 in)<br />
• kfwf = 4.4 mD-m (14.3 mD-ft)<br />
• CfD = 480<br />
• Network Width: 40 m (131 ft)<br />
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Figure 3-17, Resulting similar Discrete Fracture Model Geometry for both 20/40 and 30/50 fracture treatments, Aalburg<br />
Shale<br />
Figure 3-18, Representative 3D DFN Geometry, Aalburg Shale<br />
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Figure 3-19, Map View of Fracture Network, Aalburg Shale<br />
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3.2.4 Hydraulic Fracture Summary and Recommendations<br />
Results presented here are the average of two transverse, conductive and producing fractures per stage<br />
in either the DFN or Planar modeling scenario. Although the created DFN lengths are shorter than the<br />
Planar model, the sum of propped dominate primary fractures created by the Discrete Fracture Network<br />
is similar to the propped single fracture created in the Planar models solution. Fracture width and fluid<br />
efficiency in the DFN model is less those solutions in the planar model because the same fluid volume is<br />
being used to create complex fracturing geometry. Comparison of Posidonia and Aalburg fracture<br />
geometries can be found in the<br />
Table 3-8, Comparison Results for DFN and Planar Fracture Geometry (20/40-mesh RC proppant),<br />
Posidonia Shale and Table 3-9, Comparison Results for DFN and Planar Fracture Geometry (20/40-mesh<br />
RC proppant), Aalburg Shale below.<br />
Table 3-8, Comparison Results for DFN and Planar Fracture Geometry (20/40-mesh RC proppant), Posidonia Shale<br />
Planar σ2>> σ3<br />
(average for two fractures)<br />
• Efficiency, h = 90%<br />
• DPnet = 47.5 bar (688 psi)<br />
• hf = 41 m (134 ft)<br />
• xf create = 257.2 m (844 ft)<br />
• xf prop = 172 m (563 ft)<br />
• wf prop = 0.7 cm (0.276 in)<br />
• kfwf = 121.8 mD-m (399.6 mD-ft)<br />
• CfD = 7902<br />
DFN σ2> σ3<br />
(average for two networks)<br />
• Efficiency, h = 75%<br />
• DPnet = 45.3 bar (657 psi)<br />
• hf = 39 m (128 ft)<br />
• xf create = 205.2 m (673 ft)<br />
• xf prop = 152 m (500 ft)<br />
• wf prop = 0.32 cm (0.12 in)<br />
• kfwf = 56.3 mD-m (184.7 mD-ft)<br />
• CfD = 7390<br />
• Network Width: ~35 m (~115 ft)<br />
Table 3-9, Comparison Results for DFN and Planar Fracture Geometry (20/40-mesh RC proppant), Aalburg Shale<br />
Planar σ2>> σ3<br />
(average for two fractures)<br />
• Efficiency, h = 88%<br />
• DPnet = 88 bar (1278 psi)<br />
• hf = 30.8 m (101 ft)<br />
• xf create = 357.1 m (1172 ft)<br />
• xf prop = 228.4 m (749 ft)<br />
• wf prop = 0.16 cm (0.06 in)<br />
• kfwf = 25.97 mD-m (85.2 mD-ft)<br />
• CfD = 1137<br />
DFN σ2> σ3<br />
(average for two networks)<br />
• Efficiency, h = 69%<br />
• DPnet = 95.2 bar (1380 psi)<br />
• hf = 23.4 m (77 ft)<br />
• xf create = 257 m (843 ft)<br />
• xf prop = 176.4 m (579 ft)<br />
• wf prop = 0.06 cm (0.03 in)<br />
• kfwf = 10.7 mD-m (35 mD-ft)<br />
• CfD = 1208<br />
• Network Width: 40 m (131 ft)<br />
© 2011 Halliburton All Rights Reserved<br />
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Given this modeling data and the results from the production forecast, eleven fracture stages are<br />
recommended to create 22 transverse fractures.<br />
Preliminary fracture design recommendation for Posidonia and Aalburg shale formations (per stage):<br />
• The fracturing design is recommended for two target formations, Posidonia and Aalburg.<br />
• It is recommended that larger 20/40-mesh proppant be used, however this needs to be verified<br />
once the vertical test well is drilled and the fracture models are re-run with the vertical well<br />
data.<br />
• It is recommended the total clean volume of 477 m 3 (3000 bbls) per stage, for 11 stages. The<br />
fracture half-length will drain 150-200 meters for 400 m well spacing. Volumes above this<br />
become unrealistic and impractical.<br />
• For this given fluid volume per stage it can be expected that an average of 15% will return for<br />
recycling purposes. Usually the water flowback is less than that but it serves well for the current<br />
estimates in this report.<br />
• For Posidonia a total height of 41 m for Planar or 39 m for DFN geometry, and for Aalburg a total<br />
frac height of 31 m Planar or 23 m DFN would require 224,530 kg (495,000 lbs) of proppant. This<br />
will give the propped half-length Planar geometry fracture of 172 m or 152 m for DFN in<br />
Posidonia, and 228 m Planar or 176 m DFN in Aalburg.<br />
• The recommended pump rate - 7.15 m 3 /min per stage or 3.5 m 3 /min per transverse fracture.<br />
This may be adjusted based on the final completion method (i.e., plug and perf, coil tubing, etc.)<br />
• The recommended treatment creates an average surface treating pressure of 291 bar (4221 psi)<br />
assuming the current stress gradient, which should be used for tubular design and wellhead<br />
considerations. Again, this needs to be verified with an updated data from the vertical well test.<br />
There is no more point in refining the recommended model until more information becomes available.<br />
Several other key diagnostic tests are suggested to increase the chance of a successful completion<br />
including DFIT (Diagnostic Fracture Injection Tests) tests and pre-treatment mini-fracs to adjust design if<br />
needed, along with contingency plans during the main treatment.<br />
© 2011 Halliburton All Rights Reserved<br />
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3.3 Production Forecasting<br />
3.3.1 Production Forecasting Overview and Assumptions<br />
The objective of these simulations is to quantify the benefit of different well configurations and its<br />
associated completion. These consist of horizontal wells with a varying number of hydraulic fractures<br />
along its horizontal section.<br />
The model is based on a “layer cake model” that adheres to the rock properties interpreted by<br />
petrophysical evaluation. Within this reservoir model, different scenarios are simulated by certain<br />
factors such as permeability, horizontal length, and number of fractures along the wellbore.<br />
The following items are the list of assumptions for production forecasting:<br />
• Properties are continuous in each layer<br />
• Permeability values from<br />
• Table 3-10, Permeability Table<br />
• Dry Gas Simulation - No Adsorption<br />
• Area used in the simulation<br />
• Assumed PVT<br />
• Gas specific Gravity = .65<br />
• Gas Viscosity and Z factor was calculated by correlation<br />
• Gas Formation Volume Factor was calculated using the Z factor<br />
• Gas Z Factor was calculated by correlation using Yarborough and Hall<br />
• Fracture Complexity was approximated using a Dual Porosity Model<br />
Table 3-10, Permeability Table<br />
Permeability<br />
kx (mD) ky (mD) kz (mD)<br />
Initial Scenarios 0.005 0.005 0.0005<br />
<strong>Final</strong> Scenarios 0.0001 0.0001 0.00001<br />
© 2011 Halliburton All Rights Reserved<br />
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Figure 3-20, Assumed PVT Plot<br />
© 2011 Halliburton All Rights Reserved<br />
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3.3.2 Single Well Simulation<br />
To perform the single well simulations, the petrophysical interpretation from offset well KWK-01 was<br />
used for the initial model setup.<br />
Figure 3-21, KWK-01 ShaleLog Template below is a display of these interpretation results for the<br />
Posidonia formation.<br />
Figure 3-21, KWK-01 ShaleLog Template<br />
© 2011 Halliburton All Rights Reserved<br />
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For the purpose of simulation, the Posidonia formation interval was divided into 35 layers where each<br />
layer represented 1m in thickness. Average values of porosity and water saturation were then extracted<br />
from the log data and assigned to their respective layers within the finite difference numerical simulator<br />
(QuikLook®).<br />
Figure 3-22, Layer Cake Model Consisting of 35 One Meter Thick Layers<br />
Fracture geometries were created by the hydraulic fracture specialist and used as an input into the<br />
simulation model. Figure 3-23, Planar Fracture Design for Posidonia Formation below is the planar<br />
fracture geometry used for the Posidonia Shale. 20/40 Mesh RC proppant was used to model hydraulic<br />
fractures. To account for embedment and loss of fracture propagation, these fractures were penalized<br />
as indicated by the fracture model design.<br />
© 2011 Halliburton All Rights Reserved<br />
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Figure 3-23, Planar Fracture Design for Posidonia Formation<br />
Figure 3-24, Planar Fracture Design within QuikLook Simulator<br />
© 2011 Halliburton All Rights Reserved<br />
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Table 3-11, Fracture Conductivity as Specified by 20/40 Mesh RC Proppant<br />
3.3.2.1 Initial Scenarios<br />
Initially, four scenarios were run in order to assess possible production scenarios and determine a base<br />
case for further simulation. The scenarios consisted of a vertical well with a bi-wing fracture, a<br />
horizontal well with a 1000 meter lateral and 15 associated bi-wing fractures, a horizontal well with a<br />
1500 meter lateral and 15 bi-wing fractures, and a horizontal well with a 1500 meter lateral and 30 biwing<br />
fractures.<br />
Table 3-12, Initial Four Scenarios Based on KWK-01<br />
Scenario 1 2 3 4<br />
Depth 1810 m 1810 m 1810 m 1810 m<br />
Lateral Length 0 m 1000 m 1500 m 1500 m<br />
Fractures 1 15 15 30<br />
The results of these scenarios are indicated in<br />
Figure 3-25, Production Forecasts for Initial Four Scenarios and Figure 3-26, Decline Rates for Initial Four<br />
Scenarios are below.<br />
© 2011 Halliburton All Rights Reserved<br />
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180000<br />
160000<br />
140000<br />
1800m Posidonia_KWK<br />
Cumulative Gas (Mm 3 ) vs. Time (years)<br />
161031 Mm 3<br />
147842 Mm 3<br />
Cum Gas (10 3 m 3 )<br />
120000<br />
100000<br />
80000<br />
60000<br />
40000<br />
38865 Mm 3<br />
109903 Mm 3<br />
Vertical<br />
3300 Horizontal - 15 Fracs<br />
5000ft Horizontal - 15 Fracs<br />
5000ft Horizontal - 30 Fracs<br />
20000<br />
0<br />
0.0 5.0 10.0 15.0<br />
Time (years)<br />
Figure 3-25, Production Forecasts for Initial Four Scenarios<br />
Figure 3-26, Decline Rates for Initial Four Scenarios<br />
Cumulative Gas (MCM)<br />
180000<br />
160000<br />
140000<br />
120000<br />
100000<br />
80000<br />
60000<br />
40000<br />
20000<br />
0<br />
Vertical<br />
1000m<br />
Horizontal<br />
15 Fracs<br />
1500m<br />
Horizontal<br />
15 Fracs<br />
1500m<br />
Horizontal<br />
30 Fracs<br />
Cumulative Gas (MCM)<br />
Figure 3-27, Cumulative Gas Produced Over 15 Years for First Four Scenarios<br />
© 2011 Halliburton All Rights Reserved<br />
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% Increase from Vertical Case<br />
350.00%<br />
300.00%<br />
250.00%<br />
200.00%<br />
150.00%<br />
% Increase from<br />
Vertical Case<br />
100.00%<br />
50.00%<br />
0.00%<br />
1000m<br />
Horizontal<br />
15 Fracs<br />
1500m<br />
Horizontal<br />
15 Fracs<br />
1500m<br />
Horizontal<br />
30 Fracs<br />
Figure 3-28, % Improved Cumulative Production Over Vertical Well Scenario<br />
These preliminary results established that lateral length had a significant impact on production<br />
forecasts. Additional scenarios were run to account for the depth and reduced permeability of the<br />
Posidonia formation. Moreover, a scenario with 22 fractures (1 frac/stage) was simulated to determine<br />
if a relationship existed between the number of fractures and cumulative production.<br />
300,000<br />
3100m Posidonia<br />
Cumulative Gas (Mm3) vs. Time (years)<br />
Cum Gas (Mm3)<br />
250,000<br />
200,000<br />
150,000<br />
100,000<br />
245271 Mm3<br />
203418 Mm3<br />
147693 Mm3<br />
1500m Lateral - 15 Frac Stages<br />
50,000<br />
1500m Lateral - 30 Frac Stages<br />
0<br />
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15<br />
Time (years)<br />
1500m Lateral - 22 Frac Stages<br />
Figure 3-29, Production Forecasts for Scenarios with Varying Fracture Number<br />
© 2011 Halliburton All Rights Reserved<br />
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1000000<br />
3100m Posidonia<br />
Gas Rate (Mm3/day) vs. Time (years)<br />
Gas Rate (Mm3/day)<br />
100000<br />
10000<br />
1500m Lateral - 15 Frac Stages<br />
1500m Lateral - 30 Frac Stages<br />
1500m Lateral - 22 Frac Stages<br />
1000<br />
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15<br />
Time (years)<br />
Figure 3-30, Decline Rates for Scenarios with Varying Fracture Number<br />
Looking at Figure 3-29, Production Forecasts for Scenarios with Varying Fracture Number and Figure<br />
3-30, Decline Rates for Scenarios with Varying Fracture Number, it was concluded that fracture number<br />
did not have a significant impact on production as the rise in production between scenarios was linear in<br />
nature. As a result, the base case was agreed to be a horizontal well with a 1500 meter lateral and 22<br />
bi-wing fractures.<br />
Table 3-13, Production Forecast Results of Scenarios with Varying Fracture Number<br />
15 Frac Stages 22 Frac Stages 30 Frac Stages<br />
Cum Gas (MMscf) 5215 7184 8662<br />
Cum Gas (Mm3) 148 203 245<br />
Frac Spacing<br />
101.8 m/ 333.8 ft<br />
66.2 m/<br />
217.1 ft<br />
46.5 m/<br />
152.7 ft<br />
© 2011 Halliburton All Rights Reserved<br />
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<strong>EBN</strong> <strong>Notional</strong> <strong>Field</strong> <strong>Development</strong> Plan<br />
300000<br />
Frac Spacing (m) vs. Cumulative Gas (MCM)<br />
250000<br />
200000<br />
150000<br />
100000<br />
Cumulative Gas…<br />
50000<br />
0<br />
15 Frac Stages<br />
101.7m Frac Spacing<br />
22 Frac Stages<br />
66.2m Frac Spacing<br />
30 Frac Stages<br />
46.5m Frac Spacing<br />
Figure 3-31, Production Forecast Results of Scenarios with Varying Fracture Number<br />
© 2011 Halliburton All Rights Reserved<br />
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3.3.2.2 <strong>Final</strong> Scenarios<br />
The agreed base case for production forecast scenarios was a 1500m lateral with 22 stages consisting of<br />
1 bi-wing fracture per stage (Figure 3-32, Areal Map Displaying Bi-wing Fractures for the Base Case).<br />
Permeability’s in the x and y direction were assigned a value of .0001mD and .00001 mD in the z<br />
directions as indicated in the assumptions.<br />
Table 3-14, <strong>Final</strong> Scenarios<br />
Lateral<br />
Length<br />
(m)<br />
No. of<br />
Fractures<br />
Perm (kx)<br />
(md)<br />
Perm (ky)<br />
(md)<br />
Perm (kz)<br />
(md)<br />
Comments<br />
Scenario 1 1500 22 0.0001 0.0001 0.00001 Base Case<br />
Scenario 2 1500 22 0.001 0.001 0.0001<br />
Base Case with Increased Permeability by a<br />
Factor of 10<br />
Scenario 3 1500 22 0.00001 0.00001 0.000001<br />
Base Case with Decreased Permeability by a<br />
Factor of 10<br />
Scenario 4 2500 36 0.0001 0.0001 0.00001<br />
Base Case with 2500m Lateral - 36 Fractures<br />
(equivalent frac spacing as Base Case)<br />
Scenario 5 1500 22 0.0001 0.0001 0.00001<br />
Base Case with a Discrete Fracture Network<br />
Model (DFN) –<br />
Complex Fracture Network<br />
Scenario 6 2500 36 0.001 0.001 0.0001<br />
Scenario 4 with Increased Permeability by a<br />
Factor of 10<br />
Scenario 7 2500 36 0.00001 0.00001 0.000001<br />
Scenario 4 with Decreased Permeability by a<br />
Factor of 10<br />
Scenario 8 1500 22 0.0001 0.0001 0.00001<br />
Base Case with a Discrete Fracture Network<br />
Model (DFN) - Fissures<br />
While five scenarios were requested by the client, an additional number of scenarios were simulated to<br />
provide additional value to our initial forecasts (highlighted as green in Table 3-14, <strong>Final</strong> Scenarios).<br />
© 2011 Halliburton All Rights Reserved<br />
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Figure 3-32, Areal Map Displaying Bi-wing Fractures for the Base Case<br />
Figure 3-33, Cumulative Production in 15 Years for Six Scenarios, displays the production forecasts<br />
consisting of the base case of a 1500m lateral with 22 Fracture Stages and two scenarios where reservoir<br />
permeability is both increased and decreased by a factor of 10. Additionally, a scenario with a 2500m<br />
lateral is simulated using the same fracture spacing as the base case and a total of 36 fractures along the<br />
lateral. Two supplementary scenarios were simulated where reservoir permeability is both increased<br />
and decreased by a factor of 10 for the 2500m lateral scenario.<br />
© 2011 Halliburton All Rights Reserved<br />
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<strong>EBN</strong> <strong>Notional</strong> <strong>Field</strong> <strong>Development</strong> Plan<br />
700,000<br />
3100m Posidonia<br />
Cumulative Gas (MCM) vs. Time (years)<br />
Cum Gas (MCM)<br />
618706 MCM<br />
600,000<br />
500,000<br />
400,000<br />
300,000<br />
200,000<br />
100,000<br />
403496 MCM<br />
280380 MCM<br />
203419 MCM<br />
98324 MCM<br />
67127 MCM<br />
0<br />
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15<br />
Time (years)<br />
Figure 3-33, Cumulative Production in 15 Years for Six Scenarios<br />
BASE CASE:<br />
1500m Lateral -<br />
22 Frac Stages<br />
Base Case:<br />
Decreased Perm<br />
by Factor of 10<br />
Base Case:<br />
Increased Perm<br />
by Factor of 10<br />
CASE A: 2500m<br />
Lateral - 36 Frac<br />
Stages<br />
Case A:<br />
Increased Perm<br />
by a Factor of 10<br />
Case A:<br />
Decreased Perm<br />
by a Factor of 10<br />
© 2011 Halliburton All Rights Reserved<br />
52
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1000000<br />
3100m Posidonia<br />
Gas Rate (CMD) vs. Time (years)<br />
Gas Rate (CMD)<br />
100000<br />
10000<br />
BASE CASE: 1500m<br />
Lateral - 22 Frac Stages<br />
Base Case: Decreased<br />
Perm by Factor of 10<br />
Base Case: Increased<br />
Perm by Factor of 10<br />
1000<br />
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15<br />
Time (years)<br />
Figure 3-34, Decline Rates Over 15 Years for Six Scenarios<br />
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3.3.2.3 Fracture Complexity<br />
Fracture complexity was approximated by the use of a dual porosity model. Because the dual porosity<br />
model is fundamentally different from the homogenous (single porosity) case, an equivalent fracture<br />
permeability that mimics the homogenous case (without additional complexity) must be established.<br />
This was found to be .001mD rather than .0001mD used in the single porosity case. Fracture complexity<br />
is then introduced as an improved fracture permeability area around the hydraulic fracture with a<br />
permeability value of 0.15mD.<br />
Figure 3-35, Comparison of Dual Porosity Model (Unmodified & Modified) vs. the Base Case displays an<br />
approximately 53% loss in production using the base case parameters in a dual porosity model. By<br />
incorporating a fracture permeability of .001 mD we are able to closely imitate the single porosity<br />
homogeneous case. By reproducing the same cumulative production with a dual porosity model we can<br />
now accurately forecast how fracture complexity will affect our production.<br />
250,000<br />
3100m Posidonia<br />
Cumulative Gas (MCM) vs. Time (years)<br />
200,000<br />
203419 MCM<br />
BASE CASE: 1500m<br />
Lateral - 22 Frac Stages<br />
Cum Gas (MCM)<br />
150,000<br />
100,000<br />
200817 MCM<br />
CASE B: Dual Porosity<br />
Equivalent Modified<br />
Base Case: Dual Porosity<br />
Unmodified<br />
95424 MCM<br />
50,000<br />
0<br />
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15<br />
Time (years)<br />
Figure 3-35, Comparison of Dual Porosity Model (Unmodified & Modified) vs. the Base Case<br />
The Figure 3-36, Shale Gas Modeling, describes the different types of hydraulic fracture complexity we<br />
use in single well reservoir simulation.<br />
© 2011 Halliburton All Rights Reserved<br />
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Figure 3-36, Shale Gas Modeling<br />
Previous scenarios were modeled by creating planar fractures in a ductile formation. In the attempt to<br />
add complexity to the system we modeled two different cases. One case assumes a complex fracture<br />
with fissure openings, as is indicative to the Woodford and Marcellus U.S. shale analogues. The other<br />
case assumes a complex fracture network which replicates how the Barnett Shale fractures in the<br />
subsurface.<br />
Figure 3-37, Fracture Complexity Added to Simulate Complex Fractures with Fissures and Figure 3-38,<br />
Fracture Complexity Added to Simulate a Complex Fracture Network display how complexity and<br />
fracture permeability is added to the model in both cases.<br />
Figure 3-37, Fracture Complexity Added to Simulate Complex Fractures with Fissures<br />
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Figure 3-38, Fracture Complexity Added to Simulate a Complex Fracture Network<br />
Figure 3-39, Fracture Design Used to Model Discrete Fracture Network (DFN) below illustrates the<br />
fracture design used for modeling a discrete fracture network (DFN). Once again, this geometry is<br />
penalized as according to the hydraulic fracture design.<br />
Figure 3-39, Fracture Design Used to Model Discrete Fracture Network (DFN)<br />
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The Figure 3-40, Cumulative Production Forecasts for Added Fracture Complexity shows the impact of<br />
increased fracture complexity within the reservoir simulation.<br />
350,000<br />
3100m Posidonia<br />
Cumulative Gas (MCM) vs. Time (years)<br />
Cum Gas (MCM)<br />
300,000<br />
250,000<br />
200,000<br />
150,000<br />
100,000<br />
294816 MCM<br />
225361 MCM<br />
203419 MCM<br />
BASE CASE: 1500m<br />
Lateral - 22 Frac Stages<br />
Case B: DFN - Complex<br />
Fracture Network<br />
Case B: DFN - Complex<br />
Fractures with Fissures<br />
50,000<br />
0<br />
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15<br />
Time (years)<br />
Figure 3-40, Cumulative Production Forecasts for Added Fracture Complexity<br />
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1000000<br />
3100m Posidonia<br />
Gas Rate (CMD) vs. Time (years)<br />
Gas Rate (CMD)<br />
100000<br />
10000<br />
BASE CASE: 1500m Lateral -<br />
22 Frac Stages<br />
1000<br />
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15<br />
Time (years)<br />
Figure 3-41, Decline Rates over 15 Years for Dual Porosity Model<br />
Because of increased fracture complexity, there is a more constant higher initial rate of production for<br />
the complex cases. After the initial depeletion of these fractures, decline rates become relatively<br />
identical over 15 years.<br />
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3100m Posidonia<br />
Cumulative Gas (MCM) vs. Time (years)<br />
Cum Gas (MCM)<br />
700,000<br />
600,000<br />
500,000<br />
400,000<br />
300,000<br />
200,000<br />
100,000<br />
0<br />
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15<br />
Time (years)<br />
BASE CASE:<br />
1500m Lateral -<br />
22 Frac Stages<br />
Base Case:<br />
Decreased<br />
Perm by Factor<br />
of 10<br />
Base Case:<br />
Increased Perm<br />
by Factor of 10<br />
Case A: 2500m<br />
Lateral - 36 Frac<br />
Stages<br />
Figure 3-42, Cumulative Production Forecast for all Scenarios<br />
The Figure 3-42, Cumulative Production Forecast for all Scenarios illustrates the cumulative gas<br />
produced in a 15 year period with respect to all simulated scenarios.<br />
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3.3.3 Summary and Recommendations<br />
It is concluded from these results that both permeability and lateral length have a significant impact on<br />
cumulative production. An increase in formation permeability by a factor of 10 will generate a 98%<br />
increase in production while an increased lateral length of 2500 meters will provide a 38% increase in<br />
production (from the base case). A decrease in formation permeability by a factor of 10 would decrease<br />
production by 67% from the base case. Increased lateral length in a low permeability scenario would<br />
provide a 46% increase in production, nevertheless a low 15 year cumulative production of 98324 MCM.<br />
Table 3-15, Cumulative Production for <strong>Final</strong> Scenarios<br />
Comments<br />
Cum Gas<br />
(MCM)<br />
%<br />
Increase/Decrease<br />
from Base Case<br />
Scenario 1 Base Case 203419 BASE<br />
Scenario 2 Base Case with Increased Permeability by a Factor of 10 403496 98.34%<br />
Scenario 3 Base Case with Decreased Permeability by a Factor of 10 67127 -67.00%<br />
Scenario 4<br />
Base Case with 2500m Lateral - 36 Fractures (equivalent frac spacing as<br />
Base Case) 280380<br />
37.83%<br />
Scenario 5<br />
Base Case with a Discrete Fracture Network Model (DFN) - Complex<br />
Fracture Network 294816<br />
44.92%<br />
Scenario 6 Scenario 4 with Increased Permeability by a Factor of 10 618706 204.13%<br />
Scenario 7 Scenario 4 with Decreased Permeability by a Factor of 10 98324 -51.67%<br />
Scenario 8 Base Case with a Discrete Fracture Network Model (DFN) - Fissures 225361 10.79%<br />
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250.00%<br />
% Increase/ Decrease from Base Case<br />
200.00%<br />
150.00%<br />
100.00%<br />
50.00%<br />
% Increase/Decrease<br />
from Base Case<br />
0.00%<br />
1 2 3 4 5 6 7 8<br />
-50.00%<br />
-100.00%<br />
Figure 3-43, Layer Properties with Reduced Permeability Values<br />
Simulating complex fractures with fissure openings provide an 11% increase in production from the base<br />
case, while a complex fracture network similar to that of the Barnett provides a 45% increase in<br />
production from the base case.<br />
The petrophysical evaluation describes the Posidonia to be a ductile formation indicating that the most<br />
probable fracture geometry that is created would be planar. However, it is interesting to note that even<br />
in a complex fracture network scenario of the base case, the production forecast at the end of 15 years<br />
is closely equivalent to that of an extended lateral scenario of the base case, although initial cumulative<br />
production is lower.<br />
It is the recommendation of this report that accurate permeability measurements of the Posidonia<br />
formation are obtained to achieve a more likely production forecast. Once the first well is drilled and<br />
produced, permeability along with other reservoir properties can be better understood. Operationally,<br />
it is recommended that lateral length be extended as long as feasible taking into consideration<br />
environmental and mechanical constraints.<br />
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3.4 Well Test Conceptual Design<br />
3.4.1 Introduction and Objectives<br />
The first well in the next drilling campaign will penetrate the Posidonia shale plays in the Noord Brabant<br />
field. There are still some uncertainties with regard to the fluid type and reservoir properties at this<br />
stage and much clearer definition will be expected as the evaluation progresses. The focus for this<br />
conceptual test design is on the shale prospect in the next drilling campaign. A more detailed test<br />
design will be generated at a later time once the reservoir and fluid parameters have been confirmed.<br />
The data and interpretation of the test in the first well will be utilized to improve the productivity and<br />
effectiveness of the fracturing jobs for the future wells.<br />
In addition, the first horizontal well will also provide information on the lateral variation in reservoir<br />
properties across the field. This also provides the chance to reduce the uncertainty in lateral changes in<br />
hydrocarbon richness of the formation.<br />
In general terms, there are a few objectives for the test and fluid sampling works. The main intention<br />
would be to get a better understanding of well deliverability, optimum drainage mechanism and key<br />
parameters to be used in future drilling and reservoir development within Noord Brabant or other<br />
similar reservoirs in the area.<br />
In this early stage of exploration well evaluation, a high level well test design is proposed to cover the<br />
uncertainty in both reservoir and fluid properties. The test objective will be updated at a later stage of<br />
the evaluation and is to include specific requirements that <strong>EBN</strong> might have.<br />
It is important that the specific well test objectives are documented and distributed to interested<br />
parties. This document will be a significant part of the final audit trail and, in the final analysis, will help<br />
in determining whether the objectives of the test have been achieved.<br />
Additional objectives, such as well productivity with respect to frac method, will be reviewed in order to<br />
seek ideas for improvement in the future unconventional reservoir development wells.<br />
The fluid properties evaluation is also an important goal to be achieved in order to help evaluate the<br />
requirements for achieving better completion design, surface facilities design and strategy to drain the<br />
reservoir.<br />
The overall conceptual test design is prepared within the context of the well test objectives. The<br />
appropriate testing equipment is included in the document based on the predicted fluid properties from<br />
the well so that the services can be mobilized in time for the operations.<br />
3.4.2 Well Test Requirements<br />
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3.4.2.1 Well Test Data Requirements<br />
The main data and parameters to be collected:<br />
• Down-hole pressure and temperature data for the entire cycle of the well testing period (flow<br />
and buildup periods). The down-hole pressure and temperature data is to be collected from the<br />
down-hole pressure gauge.<br />
• Surface rate for oil, water and gas for vertical wells. For horizontal wells, additional flow rate<br />
measurements at each frac stage through production logging, fluid hold up and fluid capacitance<br />
is recommended.<br />
• Surface sample for gas reservoir; surface and bottom hole samples for oil reservoir. Monophasic<br />
sample is highly recommended whenever possible as this is the closest to representative<br />
reservoir fluid sample. Three sets of samples for each fluid type are recommended.<br />
• Surface pressure and temperature data during flowing and shut-in.<br />
• Impurities measurement during testing especially for H2S and CO2 content.<br />
• Heavy metal analysis (such as mercury) from reservoir fluid.<br />
• Pressure data during initial flow, subsequent flow and buildup periods.<br />
3.4.2.2 Well Test Procedures to be Performed<br />
The types of test procedures to be performed to achieve the objectives mentioned above are classified<br />
based on the type of produced fluid from the reservoir. The analysis summary is listed below.<br />
In general, the knowledge of the time required for stabilization is a very important factor in determining<br />
the type of test to be performed. In a gas well for example, liquid drop out is also to be considered in<br />
order to acquire good pressure data.<br />
Since the fluid to be produced is still part of the uncertainty in the next drilling campaign, the proposed<br />
analysis to be performed for both oil and gas are presented.<br />
The possible test methods for gas or oil wells for Noord Brabant field are listed below:<br />
Gas Wells<br />
Based on the information we have up to this point, the recommended test type for the Noord Brabant<br />
shale well will be FLOW AFTER FLOW. The consideration is mostly to achieve shorter test duration for a<br />
gas well with CGR of smaller than 8 bbl /MMscfd.<br />
The following criteria can be used to implement different test type options.<br />
FLOW AFTER FLOW - This test will be performed when the further evaluation shows that the reservoir<br />
produces moderate to high CGR gas from the produced fluid. It involves flowing the well on successively<br />
larger choke sizes one after another without shutting the well in. The well is flowed on each choke size<br />
until stabilized. Choke sizes are normally selected such that stabilization can be obtained relatively<br />
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quickly and the duration of each flow period is normally the same. This test is terminated with a long<br />
final build up.<br />
ISOCHRONAL TEST - This test will be carried out when further evaluation indicates that the reservoir has<br />
fair to good permeability and not much fluid drop out is expected during testing. The test consists of a<br />
series of flow periods on successively larger choke sizes, each of equal duration. Each flow period is<br />
separated by a buildup of sufficient duration to reach stabilization. The final flow period is extended to<br />
achieve a stabilized flowing pressure for defining the IPR. The test is then terminated with a long<br />
buildup.<br />
MODIFIED ISOCHRONAL TEST - This test is recommended to be performed when further evaluation<br />
indicates that the reservoir has low permeability (tight) and not much fluid drop out is expected during<br />
testing or it is a dry gas situation. The test is similar to the isochronal test except that the final flow is<br />
extended until the well is stabilized. The final build up is often continued until the initial pressure at the<br />
start of the extended flow period is reached.<br />
Oil well<br />
Even though a single rate oil well test is sufficient, the Flow After Flow test is recommended and will be<br />
useful in generating the IPR curve for the reservoir in order to predict the reservoir performance as the<br />
reservoir pressure declines.<br />
If MDT data was taken in this well, the initial flow / shut in period might not be needed to determine the<br />
initial pressure.<br />
Reservoir parameters to be evaluated<br />
Well deliverability - Well deliverability analysis includes several parameters as mentioned in point a to f<br />
below. Flow rate measurement is normally done at the surface for a vertical well penetrating a single<br />
producing interval. For comingled production or horizontal wells with frac stages, a down-hole flow rate<br />
measurement using production logging is highly recommended to evaluate the performance of each<br />
perforation interval.<br />
In evaluating the well deliverability, the following parameters are normally evaluated or measured:<br />
a. Absolute Open flow potential<br />
b. Production behavior with wellbore pressure below bubble point (oil well)<br />
c. Rate dependent skin (gas wells)<br />
d. Water coning or gas coning effects (oil wells)<br />
e. Solids production tendencies<br />
f. Condensate drop out in the wellbore (gas condensate well)<br />
g. Reservoir permeability<br />
h. The permeability will be evaluated using a well model to be matched with the pressure response<br />
from the well test data.<br />
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• For a more accurate permeability evaluation, it is recommended to carry out a pressure<br />
buildup with down-hole shut-in after a period of stable flow.<br />
• In the case of a hydraulically fractured horizontal well, the permeability calculated from<br />
a pressure match will be the average fracture permeability and we may not have a long<br />
enough shut-in period to get the system pressure (fracture+matrix).<br />
i. Reservoir pressure<br />
• Initial pressure can be determined from buildups following later flow periods.<br />
Alternately, it can be measured from an initial build up period after a short flow at the<br />
beginning of the test (MDT or RFT data).<br />
j. Reservoir boundaries<br />
• Boundaries may be sealing faults, permeability pinch outs, no flow boundaries or active<br />
pressure support boundaries in the form of mobile aquifers, or gas caps.<br />
• If verification of reservoir boundaries is a critical objective of the test, wire-line<br />
retrievable or surface readout gauges should be considered when designing the test<br />
string.<br />
k. Reservoir fluid sample<br />
• A representative reservoir fluid sample is recommended for PVT analysis which will be<br />
used in the calculation of hydrocarbon in place or fluid properties during reservoir<br />
modeling.<br />
• Solids produced during testing should be collected and evaluated.<br />
• The information on solids produced can be used for completion design, gravel packing,<br />
calculation of maximum production rate, surface facility design, artificial lift selection<br />
and design and generating a forecast for future well work activity requirements.<br />
l. Water sample<br />
• It is recommended to take water samples from water legs whenever possible to<br />
represent the possible future water production. For conventional reservoirs, this is very<br />
important to calibrate the Sw calculation and hence the hydrocarbon in place.<br />
• Water samples will also be necessary for facilities design, potential scaling problems and<br />
for analysis for environmental considerations.<br />
m. Fracturing interval contribution<br />
n. For horizontal or deviated wells with multiple frac stages, a PLT with radioactive type sensors is<br />
recommended to evaluate the flow contribution from each stage and frac performance. The<br />
advantage of using radioactive tools in horizontal or highly deviated wells is that the impact<br />
from well deviation is minimal.<br />
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3.4.2.3 Analysis Methodology<br />
It is recommended to perform two types of well test analysis methods, an analytical method using<br />
homogeneous reservoir model assumptions and a numerical method using a reservoir simulator where<br />
detailed geological and petrophysical information is included in the model.<br />
Homogeneous model<br />
This model will be used to generate the reservoir parameters mentioned above based on homogeneous<br />
reservoir properties assumptions. Figure 3-44 shows a typical pressure response for a hypothetical gas<br />
well model in the shale play after fracturing job.<br />
It is seen from the plot that the information we will get from the test is mostly related to the fracture<br />
and not the matrix, unless we do a long term build test.<br />
On the natural fracture testing we will also see the response from matrix+fracture after the transition<br />
time indicated by a valley in the pressure derivative.<br />
The analysis to calculate fracture permeability will be by matching the simulated pressure to the<br />
pressure derivative in the mid time response of the pressure derivative data.<br />
The pressure derivative matched to the pressure derivative in the late time to calculate total<br />
permeability (fracture+matrix) could be performed should the long term buildup test be carried out. The<br />
late time response will be characterized by the second flat derivative after a valley following the early<br />
time response.<br />
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Figure 3-44, Typical Pressure Response from Fractured Well<br />
The IPR curve using nodal analysis was matched to the flowing data to estimate the reservoir<br />
deliverability. Figure 3-45, Predicted Test Rate and Figure 3-46, Predicted Flowing Bottom Hole Pressure<br />
below show the expected range of values for the unconventional reservoir. These are typical values for a<br />
medium performance shale play reservoir in the US. Low productivity normally produces around 350-<br />
600 mscfd while the successful well produces up to 7 mmscfd.<br />
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Figure 3-45, Predicted Test Rate<br />
Figure 3-46, Predicted Flowing Bottom Hole Pressure<br />
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Single well reservoir model - In the case of a more detailed evaluation being required, a single well<br />
model using a reservoir simulation model can be generated. The advantage will be to include actual<br />
reservoir properties from the geological model. In this analysis, known boundaries from geological work<br />
such as faults and aquifers can be incorporated with better accuracy.<br />
Another advantage of a reservoir model approach is that we can provide a longer term production<br />
forecast for the well based on the geological and test data. The method is typically done to predict liquid<br />
drop in the reservoir or in the wellbore for high yield gas.<br />
Fluid analysis - There are a few types of analyses recommended for both reservoir evaluation and<br />
facilities design.<br />
Fluid analyses to be carried out at this stage are as follows:<br />
• Mercury content from sample<br />
• Gas / oil composition analysis<br />
• CVD (Constant Volume Depletion) analysis of the gas condensate or volatile oil sample to be<br />
used to simulate reservoir depletion performance and composition variation. This data will also<br />
be used to generate either black oil PVT or EOS correlation.<br />
• CCE (Constant Composition Expansion) analysis for the oil phase for similar purposes as in point<br />
2.<br />
The priority will be emphasized on the well deliverability (rate, permeability and skin).<br />
3.4.2.4 Test Equipment Requirements<br />
The equipment for the testing will be standard. The only thing that needs to be defined early is if sour<br />
service or HPHT equipment is required due to CO2/H2S content or high pressure/temperature condition<br />
of the reservoir.<br />
It is always the best option to have the down-hole and surface test equipment coming from the same<br />
company to eliminate problems with connections between surface and down-hole tools. In the case of<br />
the surface and test tools coming from different companies, early evaluations on required connections<br />
need to be done to allow time to manufacture some connections if required.<br />
Down-hole test equipment - The key tool for down-hole test equipment is the pressure gauge. A quartz<br />
gauge with sufficient battery capacity to hold data for the entire test period should be prepared.<br />
A downhole pressure gauge is be the best option since it will reduce the possibility that the wellbore<br />
storage effect continues into the middle and late time regions of the transient pressure response. This<br />
also will avoid misinterpretation of the permeability and boundary conditions.<br />
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The data density or sampling per second should be set at the maximum capacity so that the gauge will<br />
hold for the entire testing period. Precautions will also be required in case the test runs longer than<br />
expected due to unexpected down times. The current test estimate of 4 days test time will require<br />
about 345,000 seconds of operations. The data density for pressure reading will be about 1 sample per<br />
second for a 400, 000 capacity quartz gauge.<br />
Surface test equipment - Standard surface testing equipment will be adequate unless CO2/H2S is<br />
expected to be present in significant amounts. There should be a local standard for this type of<br />
hazardous gas material produced to the surface.<br />
Here are some things to be considered for the surface test equipment:<br />
• As mentioned earlier, requirements for connection from down-hole to surface equipment needs<br />
to be prepared early on since it may require some manufacturing work for connectors. This is if<br />
the company providing the down-hole test is different than the one providing the surface test<br />
equipment.<br />
• An onsite H2S detector such as a Draeger tube will have to be available if H2S in the well stream<br />
fluid is a possibility.<br />
• All tests should incorporate the ESD (Emergency Shut-Down) system. The manual shutdown<br />
button should be located in a safe location away from the testing area. A typical location of ESD<br />
can be seen in the appendix.<br />
• All flow lines should be tied down or pinned.<br />
• The bubble hose or needle valve should be positioned downstream of the choke.<br />
• There should be no valve in the vent line.<br />
• Separators and surge tanks are fitted with two relief lines.<br />
• The hydrate formation should be evaluated to provide guidance on the maximum drawdown at<br />
the choke to avoid hydrate formation.<br />
• Need to confirm that the test tree can support the string weight especially when the surface and<br />
down-hole equipment are provided by different companies.<br />
• It is recommended to use the green burner with 98% efficiency or higher especially if oil or<br />
condensate is to be produced to the surface.<br />
3.4.2.5 Special Equipment Requirements<br />
Surface readout is optional during testing; however, it is recommended to use it for the following<br />
reasons:<br />
• Confirming that the valid data is collected into the memory gauge. Pressure leaks down-hole can<br />
cause invalid pressure buildup data.<br />
• Monitor the buildup real time to allow possible early buildup termination to save unnecessary<br />
operations cost.<br />
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Once the expected fluid type for this field has been defined, swabbing equipment is recommended to be<br />
included in the case where the oil reservoir could not flow.<br />
3.4.3 Well Test and Fluid Sampling Design<br />
3.4.3.1 Vertical Well Testing<br />
Gas Well Testing<br />
Flow After Flow Test Summary (The rate guidance can be seen in Figure 3-45, Predicted Test Rate<br />
above.)<br />
• Perform clean up period until debris from wellbore disappears by observing the flowing well<br />
head pressure.<br />
• Flow the well at small choke until stabilized (4-6 hrs). Stabilization can be recognized by smaller<br />
fluctuations in well head flowing pressure around 5 psig and maximum of 10 psig if 5 psig can’t<br />
be achieved. As a reference, the expected rate will be between 350 MSCFD to 4-5 MMSCFD<br />
based on the shale gas well production in the US.<br />
• Flow the second rate by opening the choke until the flowing well head pressure is reduced by at<br />
least 100-500 psig (Pwf not to exceed 25% of the AOF value)and noticeable rate (gas rate >0.3<br />
mmcfd) difference is observed and then flow the well until stabilized (4-6 hrs).<br />
• Flow the third rate by increasing the choke again until the FTP is reduced an additional 100-500<br />
psig with noticeable flow rate difference (> .3 mmcfd) or more and keep flowing until stabilized<br />
(4-6 hrs). Normally the draw down is defined not to exceed 25% of the AOF value and comply<br />
with the frac design.<br />
Flow After Time Estimate<br />
• Clean up period 2-8 hrs<br />
• Flow after flow 12 hrs<br />
• Build up 18 hrs<br />
• Total testing time 30-40 hrs<br />
• For smooth operations, the total time required for testing usually between 3-4 days including<br />
the operations and sampling.<br />
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Figure 3-47, Estimated Flow and Shut-in Period<br />
Figure 3-48, Estimated Build Up Time<br />
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Additional step for high CGR gas or fractured reservoir is recommended to be implemented at the end of<br />
the test duration.<br />
• In the case that we discover a high CGR gas condensate reservoir, a longer flow period to<br />
monitor the evidence of increasing flowing bottom hole pressure may be needed. Depending on<br />
the CGR, this flow test can be up to one week before we can identify increasing flowing bottom<br />
hole pressure due to liquid dropping in the wellbore. This data can be used to design an<br />
appropriate completion to allow sustainable production. There might be a need to install a<br />
velocity string to lift up the liquid from bottom hole if the liquid dropping in the wellbore gets<br />
very high.<br />
• For evaluating the matrix properties of a fractured reservoir other than the shale play, a second<br />
or third pressure gauge is to be placed down-hole and retrieved at a later time after the long<br />
flow period. This is intended to monitor the reservoir pressure decline after a certain volume of<br />
production has been produced. This data will be used to predict the connected reservoir volume<br />
to the well and is related to the well potential cumulative production. This information is very<br />
useful in defining the well spacing requirement to effectively drain the reservoir.<br />
Oil Well Testing<br />
If MDT data was taken in this well, the initial buildup period might not be needed to determine the<br />
initial pressure.<br />
The basic steps recommended for the oil well are as follow:<br />
a. Initial flow period (10 minutes)<br />
b. Initial shut-in period (1 hr)<br />
c. First flow period<br />
d. Flow the well at small choke until stabilized (4-6 hrs).<br />
e. First buildup period<br />
f. Shut in the well. Use data from SRO as guidance to terminate the buildup or approximately 1.5<br />
times the flow period.<br />
g. Second flow period<br />
h. Open up the choke until the flowing tubing pressure reduces about 100 psi and noticeable flow<br />
rate (>50bopd) if possible and flow the stabilized rate for 4-6 hrs.<br />
i. Second buildup period<br />
j. Shut in the well. Use data from SRO as guidance to terminate the buildup or approximately 1.5<br />
times the flow period.<br />
k. <strong>Final</strong> flow period<br />
l. Open up the choke until the flowing tubing pressure reduces about another 100 psi with<br />
noticeable flow rate difference (>50bopd) and not to exceed 25% of the AOF value if possible<br />
and flow the stabilized rate for 4-6 hrs or longer depending on the allowed test times.<br />
m. <strong>Final</strong> buildup period<br />
n. Shut in the well. Use data from SRO as guidance to terminate the buildup or approximately 1.5<br />
times the flow period<br />
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As far as equipment is concerned, additional equipment (pumps) or chemicals such as Nitrogen for<br />
lifting purposes should be prepared in the case that the oil could not flow to the surface. The choice<br />
between these techniques will depend on the availability and feasibility of the operation on location in<br />
case the drilling is conducted in a sensitive area .<br />
3.4.3.2 Horizontal Well Testing<br />
Similar test procedures can be applied to the horizontal well. However; in addition, a production log is<br />
recommended to be run for the following reasons:<br />
• More accurately determine the length of the contributing interval to be used in pressure buildup<br />
analysis for a more accurate kh value.<br />
• Provide the contributions from each fracturing stage along the horizontal section of the well.<br />
• Identify the stages which produce unwanted water production and appropriate remedial action<br />
can be taken.<br />
• Allow us to be able to evaluate the frac performance and make improvements on the future<br />
well.<br />
3.4.3.3 Special Considerations<br />
Special Topics<br />
Special topics on well test preparation are presented below in an effort to avoid unnecessary down time<br />
during test operation.<br />
Sour service equipment - Due to limited availability of sour service equipment, it will be helpful to<br />
predict the presence of CO2 / H2S from the wellbore fluid as early as possible.<br />
Green burner - Given that the drilling will not be very far from the community, a high efficiency burner<br />
(98% efficiency or higher) is required to reduce possibility for spills especially if the fluid will be oil or<br />
condensate.<br />
Stimulation techniques - If the case of a limestone reservoir is present as an additional target, matrix<br />
acidizing is recommended to be carried out as it will normally increase the productivity; otherwise, acid<br />
wash should be adequate to clean up wellbore and enhance near wellbore permeability.<br />
Test tubular - Due to the uncertainty whether it will be oil or gas testing, test tubular should have been<br />
prepared early on, especially if non standard tubing size is required and considered long lead.<br />
Two valve isolation - A minimum of two valve isolation is recommended below or at BOP.<br />
Zone isolation - It is recommended that the DST intervals be isolated from one another using bridge plug<br />
or cement retainers and cement. For a horizontal section with frac stages, a production log with array<br />
tool for resistivity and spinner along with radioactive density is run to determine the contribution from<br />
each frac interval.<br />
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Recommended Practices<br />
Listed below are the recommended practices especially when the well location is not categorized as a<br />
remote area and very sensitive to environmental issues.<br />
• Tests should be kept as simple as possible whilst achieving the well test objectives.<br />
• Premium tubing connections (e.g. VAM connection, etc.) should be run for well tests that could<br />
potentially flow gas to the surface. It is highly recommended to have a two-valve isolation<br />
system below or at the BOP in every test string and, where possible, these barriers should be<br />
tested in the direction of flow.<br />
3.4.3.4 Fluid Sampling Recommended Procedure<br />
For all fluid samples, three sets of samples are recommended.<br />
Surface (Separator) Sampling<br />
Pressurized samples should be collected from the oil and gas lines on the separator once operating<br />
conditions have stabilized, i.e. when there are no random fluctuations in separator pressure,<br />
temperature, oil and gas rates and GOR.<br />
As a rule of thumb, on an oil test, a minimum of four times the capacity of the separator (40-50 bbl)<br />
should have been produced at stabilized conditions before proceeding with oil and gas sampling. The<br />
exception to this is during clean-up flows where stabilized conditions may not be achieved but a<br />
'back-up' sample is still required.<br />
Once stable flowing conditions have been achieved (refer to Section 5.2) 3 (three) sets of pressurized<br />
separator samples are to be taken (3 x oil, 6 x gas) with matched sets of one oil and two gas samples<br />
being sampled simultaneously.<br />
Dry Gas or Low CGR Gas<br />
Dry gas sampling is to be taken from the separator and no down-hole sample. The gas sample should be<br />
collected at the sample point on the gas flowline at the top of the separator. Sampling should be<br />
completed very slowly, taking up to a half an hour to fill one bottle to separator pressure. A detailed<br />
sample data sheet must be completed for each sample.<br />
Gas sample will be taken using 20 liter gas bottles which are supplied and evaluated.<br />
The gas sample should be collected at the sample point on the gas flowline at the top of the separator.<br />
Sampling should be completed very slowly, taking up to a half an hour to fill one bottle to separator<br />
pressure. A detailed sample data sheet must be completed for each sample.<br />
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Oil<br />
Oil/condensate samples will be taken in supplied 600 cc pressurized conventional sample bottles. The<br />
sample bottle should be filled slowly, taking up to half an hour to complete. Details of the oil sample<br />
should be completed on the data sheet for the matching gas sample. A space must be allocated in the<br />
liquid sample bottles to allow for expansion effects during transportation.<br />
Ten (10) 5.0 gallon cans of oil are to be sampled from the oil line during the same period that the<br />
separator gas and oil samples are taken. It is essential that the drums or cans are filled only 3/4 full and<br />
the caps remain off for a sufficient period to allow light ends to flash off before replacing the cap.<br />
Water<br />
Samples of produced water are to be taken in 1 liter plastic/glass bottles during clean-up, at the start<br />
and end of the main flow, and at any time that a change in water production is noted.<br />
Four x 1 liter bottles of water, if sufficient is produced, are to be sampled from the water outlet of the<br />
separator during the final hour of the flow period.<br />
In the case of an aquifer test where the flow reaches the surface, collect 1 liter samples every 15<br />
minutes and measure the resistivity of the samples. When the resistivity becomes constant, collect 5 x 1<br />
liter samples. If the water needs to be reversed circulated from the tubing, this should be done slowly<br />
so that samples can be taken in the same manner as described for the natural flow case. For the aquifer<br />
test, the 2 x 1 liter plastic bottle samples are to be preserved by adding a biocide to lower the pH to<br />
about 2.<br />
Bottom Hole Sampling (Oil Zone Only)<br />
Bottom-hole sampling will be conducted during a stabilized flow period at rates which preclude bottomhole<br />
pressures from falling below bubble point pressure. The flow period for this sampling is<br />
discretionary and will be designated by the Well Testing Supervisor.<br />
After the tool string has been recovered, the sub-surface sampler should be heated and agitated prior to<br />
sample transfer to a Single Phase Sample bottle (SSB). Record the duration of heating prior to transfer.<br />
After sample transfer, each sampler should be washed with Carbon Disulfide, Tetra-hydrofuran or an<br />
aromatic solvent to collect any hydrocarbons left behind. The wash should be collected and properly<br />
labeled for cross reference to the corresponding SSB for transport to the lab.<br />
Choke Sampling<br />
Choke samples will be collected for the purpose of measuring the gravity of produced oil, resistivity of<br />
produced water and H 2 S & CO 2 content of produced gas. Samples should be collected per the sample<br />
program at various intervals during each of the DST flow periods.<br />
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3.4.4 Implementation Plan<br />
The implementation plan involves the following steps:<br />
• <strong>Final</strong> generation of the well test program when better knowledge of the fluid type and reservoir<br />
parameters becomes available.<br />
• Acquiring all the permits for explosives and long lead items such as casing or tubing for the test<br />
early.<br />
• Plan to have support materials such as Nitrogen and coiled tubing units near the well site for<br />
lifting oil well should the discovery be oil and could not flow.<br />
• Acquire all relevant environmental permits with regard to flaring related by the well test flow<br />
period.<br />
• Make sure that back up tools are available for down-hole tools which often require repair.<br />
• Make sure permits for the testing crew are current and completed prior to going to the location.<br />
3.4.5 Operational Command and Control<br />
The responsibilities of all personnel are listed below to make sure that the objective of the test can be<br />
achieved as planned.<br />
Drilling Superintendent - Responsible for transmitting orders to Drilling Supervisor on the rig.<br />
Amendments and additions to the testing program will be issued after consultation between relevant<br />
parties.<br />
Drilling Supervisor - Drilling Supervisor has an overall responsibility for the safety of personnel and<br />
operations during the test. He is responsible for the following tasks:<br />
• Make sure that all personnel on the rig have been briefed on their role during the test.<br />
• Make sure that all personnel directly involved in the test fully understand the program and what<br />
is required of them.<br />
• Make sure that the program is signed off on by the relevant management and that any changes<br />
to the program are confirmed in writing.<br />
• Make sure that all operations are carried out as per program and that items required to conduct<br />
the program are available and prepared for continuous operation throughout the test period.<br />
• During the testing program, he will delegate operational responsibility to the Test Engineer as<br />
appropriate.<br />
Well Test Engineer - The Test Engineer reports directly to the Drilling Supervisor on the rig.<br />
Responsibilities:<br />
• Make sure all equipment is available and incoming equipment is according to plan.<br />
• Carry out all operations in a safe and efficient manner as per well test program and make sure<br />
that any proposed changes to the program are authorized by the program signatories prior to<br />
implementation.<br />
• Annulus pressure is monitored at all times and it reads within operating parameters.<br />
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• <strong>Report</strong> the test progress to the Drilling Supervisor.<br />
• Transmit all well test information to the <strong>EBN</strong> or designated office at the stipulated times.<br />
• Ensure that all testing personnel have synchronized watches to the computer used for<br />
programming the downhole memory gauges.<br />
• Determine the flowrates (choke sizes) as per guidelines in the well test program.<br />
• Make sure that all relevant data is collected and checked for validity and quality.<br />
• Make sure that all samplings are carried out as per program.<br />
• Monitor the perforation job to be sure that they are at the correct depth.<br />
Reservoir Engineer - The Reservoir Engineer reports directly to the Drilling Supervisor on the rig and is<br />
responsible for data quality control and analysis of the test data.<br />
OIM and Toolpushers – Responsibilities include the following:<br />
• Make sure that radio silence, flaring and wind directions are advised to the relevant parties.<br />
• Stay informed as to changes in the well program.<br />
• Ensure that the Driller is at ALL times on the rig floor, or at relief periods, the Toolpusher is on<br />
the rig floor. Assistant Drillers will not be left alone on the rig floor.<br />
Drillers- Responsibilities include the following:<br />
• The Driller or Toolpusher will be on the floor at all times.<br />
• All operations concerning the annulus and any operation of rig manifold valves.<br />
• Monitoring of the annulus pressure at all times throughout the testing program.<br />
• Driller must inform all key personnel immediately of any problems on the floor.<br />
• The Driller will be in direct communication with the well testing personnel throughout the test<br />
and he is responsible for maintaining a watch on the test equipment and flowlines on the drill<br />
floor.<br />
• Be aware of the location of all personnel during the test.<br />
Well Test Supervisor - The Well Test Supervisor reports to the Test Engineer as the operator’s<br />
representative with the following responsibilities:<br />
• All operations of the test equipment.<br />
• All actions during the test are conducted safely and as per program.<br />
• Must inform the Test Engineer of any actions taking place with the well test equipment.<br />
• Make sure that all his crew understands their duties and how the test will be conducted.<br />
• <strong>Report</strong> any unusual occurrence IMMEDIATELY to Test Engineer.<br />
• The Well Test Crew only will be responsible for operating the surface test tree at all times.<br />
DST Specialists - The DST Specialist reports to the Test Engineer with the following responsibilities:<br />
• Operations of the down-hole DST Equipment.<br />
• Monitor annulus pressure at all times during the test.<br />
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• Check instrumentation on a regular basis.<br />
• Record all pump operations on the annulus, pressures and pump volumes and fluid bled off<br />
from annulus.<br />
• Must inform the Test Engineer prior to any actions taking place with the DST equipment.<br />
• All hazardous operations are conducted with the necessary permits.<br />
• <strong>Report</strong> any unusual occurrence to the Test Engineer IMMEDIATELY.<br />
Sampling Engineer - Responsibilities:<br />
• Make every effort that a representative sample is obtained.<br />
• <strong>Report</strong> to the Test Engineer of any doubts as to the validity of a particular sample.<br />
• Decisions made<br />
3.4.5.1 Decisions Made for Operations<br />
The decisions on the operations should be made according to the responsibilities outlined above at all<br />
times. Subsurface Manager will be consulted by the reservoir engineer during the operations.<br />
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3.5 Well Design<br />
3.5.1 Drilling Design – Central Zone 8C<br />
Zone 8C was centered on the major “Sweet spot” in the proposed acreage with arbitrary boundaries.<br />
Figure 3-49, Zone 8C "Sweet spot"<br />
A preliminary hazard map was created using a number of shape files provided, these included: Buildings,<br />
drill free zone drinking water, drinking water production areas, ecologically sensitive areas EHS, existing<br />
safety zones, groundwater protection areas, natura2000 areas, overhead power lines, railways, roads,<br />
surface water and underground gas pipe lines. In addition a shape file designating the open agricultural<br />
areas was provided but did not differentiate between agricultural areas used for greenhouse usage,<br />
cultivated fields or inner city parks and golf courses. The building file was also out of date with many<br />
areas seen in the satellite imagery as being built up as part of the urban expansion in the area.<br />
Figure 3-50, Hazard Map<br />
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The hazard map in Figure 3-50, Hazard Map was further enhanced using a combination of files to create<br />
a modified grid shown below. The left hand figure sows pink areas which represent the potential “GO”<br />
areas and 650 pad locations were created in these areas as displayed on the right. The 650 pads were<br />
then screened to provide some 323 Green “GO” Pads for further consideration and well planning.<br />
Figure 3-51, "GO" Areas and Initial Pad Locations<br />
3.5.1.1 Well and Lateral Design Parameters<br />
The well designs were based on the following criteria: Vertical well profiles to approximately 2100m<br />
with a 12°/30m build curve to the landing point at the beginning of the lateral. The laterals were spaced<br />
400m apart and had lengths of 1500m and 2500m. The distance between opposing lateral “Toes” was<br />
set at 200m, opposing “heels” at 300m. The maximum reach distance from the pad to the landing point<br />
was set at 800m. Two scenarios were planned using these lateral lengths as well as a third scenario<br />
utilizing variable lateral lengths between 1500m and 2500m to maximize reservoir contact between the<br />
major faults in the area. Laterals were constrained to a minimum distance of 100m to the faults. The<br />
objective of the first three scenarios was to maximize the lateral reservoir coverage with minimal regard<br />
to well design consistency. A fourth scenario was generated which leveraged the best configuration of<br />
pads resulting in a more consistent well design pattern commonly used in shale play development.<br />
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Figure 3-52, Lateral Pad Placement and Well Design Criteria<br />
3.5.1.2 Well Design Profiles<br />
The basis for the well design was explained previously but this assumes that a pad is placed at a certain<br />
distance from the heel to allow a vertical well to be drilled to the KOP at about 2100m and then build at<br />
12°/30m to the horizontal on an azimuth of 45° for 1500 or 2500m.<br />
Figure 3-53, Preferred Well Design<br />
The majority of the well profiles in the fourth scenario i.e.laterals generated around best pad locations<br />
with consistent well design are of this profile type.<br />
When the laterals are planned to maximize the reservoir contact, they are not perfectly aligned and fit in<br />
to the areas between the faults. This means the well profiles may vary from the one described to<br />
variations including “fish hook” or slant and turn wells.<br />
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Figure 3-54, "Fish Hook" Type Well Design<br />
In this case the well is kicking off at the required depth of approximately 2100m. The Figure 3-55 below<br />
shows some of the variation of well profiles created in the first three scenarios where the reservoir<br />
contact is maximized for field production.<br />
Figure 3-55, Well Profile Variations<br />
The well profiles can be modified by changing the planning scenario to allow for the wells to have a<br />
shallower KOP and low angle tangent sections down to the second KOP. So while appearing to be<br />
difficult wells to drill, they can be modified to take into account the offsets of the laterals to the pad<br />
locations. In this way the maximum amount of reservoir contact can be maintained whereas in the<br />
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scenario #4, the trade off is to reduce the number of pads and laterals to create the required well<br />
design, and thereby reducing the total productive area.<br />
Figure 3-56, Well Profile<br />
The primary development area (Core Area) is mixture of the well designs as shown in the Figure 3-56<br />
above with the kick off point (KOP’s) being between 1100 and 1150m.<br />
3.5.1.3 CWP Scenarios – Maximized Reservoir Contact<br />
CWP Scenario 1 – 783 x 1500m laterals were planned (1,174,500m)<br />
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Figure 3-57, Scenario 1<br />
212 Pads of the 323 pads were used to acquire 524 laterals<br />
Figure 3-58, Scenario 1<br />
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259 laterals were outside the maximum 800m reach criteria.<br />
Figure 3-59, Scenario 1<br />
Laterals shown in yellow were not acquired either because they were outside the 800m reach criteria or<br />
due to the lack of a pad being available in the area.<br />
Figure 3-60, Scenario 1<br />
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Figure 3-61, Scenario 1 3D View of Wells<br />
CWP Scenario #1 Results are indicated in Figure 3-62, Scenario 1 - 1500m Laterals.<br />
Figure 3-62, Scenario 1 - 1500m Laterals<br />
The wells were planned in 100m reach increments from 200m to a maximum of 800m. Each result<br />
shows how many wells were created at each point.<br />
CWP Scenario 2 – 420 x 2500m Laterals were planned (1,050,000m)<br />
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Figure 3-63, Scenario 2<br />
138 Pads of the 323 pads were used to acquire 286 laterals<br />
Figure 3-64, Scenario 2<br />
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134 laterals were outside the maximum 800m reach criteria.<br />
Figure 3-65, Scenario 2<br />
Laterals shown in yellow were not acquired either because they were outside the 800m reach criteria or<br />
due to the lack of a pad being available in the area.<br />
Figure 3-66, Scenario 2<br />
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Figure 3-67, Scenario 2 3D View of Wells<br />
CWP Scenario #2 results are indicated in Figure 3-68, CWP Scenario #2 Results - 2500m Laterals.<br />
Figure 3-68, CWP Scenario #2 Results - 2500m Laterals<br />
The wells were planned in 100m reach increments from 200m to a maximum of 800m. Each result<br />
shows how many wells were created at each point.<br />
CWP Scenario 3 – 731 x (1500 to 2500m) laterals (Approx. 1,457,837m)<br />
This scenario was planned using a minimum of 1500m and a maximum of 2500m for the lateral length to<br />
maximize the reservoir coverage.<br />
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Figure 3-69, Scenario 3<br />
184 Pads of the 323 pads were used to acquire 494 laterals.<br />
Figure 3-70, Scenario 3<br />
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237 laterals were outside the maximum 800m reach criteria.<br />
Figure 3-71, Scenario 3<br />
Laterals shown in yellow were not acquired either because they were outside the 800m reach criteria or<br />
due to the lack of a pad being available in the area.<br />
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Figure 3-72, Scenario 3<br />
Figure 3-73, Scenario 3 3D View of the Wells<br />
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CWP Scenario #3 results are indicated in Figure 3-74, Scenario 3 - 1500 to 2500m Laterals.<br />
Figure 3-74, Scenario 3 - 1500 to 2500m Laterals<br />
The wells were planned in 100m reach increments from 200m to a maximum of 800m. Each result<br />
shows how many wells were created at each point.<br />
CWP Scenario 4 - Optimized "Best Pad" Locations – 451 x (1500m – 2500m) laterals (Approx 945, 275m)<br />
This scenario was planned using a minimum of 1500m and a maximum of 2500m for the lateral length,<br />
to optimize the well design profile and the placement of the laterals around the pads. The majority of<br />
the well profiles in this scenario are vertical to the KOP as described previously under “Well and Lateral<br />
Design”.<br />
Figure 3-75, Scenario 4<br />
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83 Pads of the 323 pads were used to acquire 451 laterals.<br />
Figure 3-76, Scenario 4<br />
25 laterals were outside the maximum 800m reach criteria.<br />
Figure 3-77, Scenario 4<br />
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Laterals shown in yellow were not acquired either because they were outside the 800m reach criteria or<br />
due to a lack of a pad being available in the area.<br />
Figure 3-78, Scenario 4<br />
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Figure 3-79, Scenario 4 3D View of Wells<br />
CWP Scenario #4 results are indicated in Figure 3-80, Scenario 4 - 1500 to 2500m Laterals.<br />
Figure 3-80, Scenario 4 - 1500 to 2500m Laterals<br />
The wells were planned in 100m reach increments from 200m to a maximum of 800m. Each result<br />
shows how many wells were created at each point.<br />
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CWP Scenario 5 – Hybrid Scenario<br />
Figure 3-81, Scenario 5 Hybrid<br />
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Figure 3-82, Scenario 5 Hybrid<br />
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Figure 3-83, Scenario 5 Hybrid Wells/Pads<br />
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Figure 3-84, Scenario 5 Hybrid Well Inclination Distribution<br />
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Figure 3-85, Scenario 5 Pads with 10/9/8 Wells (Yellow Names)<br />
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Figure 3-86, Scenario 5 Pads with 7/6/5/4/3/2 Wells (Yellow Names)<br />
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3-87, Scenario 6 infill based on Scenario #5 base case<br />
Scenario #5 was re-worked to increase coverage in the area and reduce the number of exotic well<br />
designs to create the infill Scenario #6. 73 pads were increased to 80, with the 611 wells being<br />
increased to 637 giving a Total MD (m) of 3,458,844m with a new total lateral (m) of 1,234,168m. 69<br />
missed stubs were reduced to 42 and the total lateral lost (m) of 142,377m lost was reduced to<br />
86,284m. Some pads were replaced and a few wells re-assigned, new stubs were planned within the<br />
fault blocks. The overall change did not change the pad or well count but did change the lateral<br />
positions. The primary development area (Core Area) was extracted from this scenario.<br />
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Scenario 6 – Hybrid Design – Primary <strong>Development</strong> Area (Core Area)<br />
Figure 3-88, Scenario 6 Core Area based on Sc #5 Hybrid Infill case<br />
The primary development area or Core Area consists of 38 pad locations with 328 wells having a total of<br />
623,487m of reservoir lateral contact and a total drilling measured depth of 1,730,960m. The wells<br />
designs were a mix of the simple optimized and the more challenging higher reach types.<br />
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Figure 3-89, Scenario 6 Core Area based on Sc #5 Hybrid Infill case<br />
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Figure 3-90, Scenario 6 Core Area based on Sc #5 Hybrid Infill case<br />
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Pad Plan #<br />
Well Ct /<br />
Pad Northing-WH Easting-WH Pad Plan #<br />
Well Ct /<br />
Pad Northing-WH Easting-WH<br />
PPad 367 10 5705028 667553 PPad 390 8 5710617 665497<br />
PPad 333 10 5705363 657957 PPad 406 8 5712704 668726<br />
PPad 365 10 5705653 665787 PPad 392 8 5714440 664020<br />
PPad 347 10 5708059 661597 PPad 210 8 5720066 662313<br />
PPad 374 10 5708379 667051 PPad 137 8 5723231 655916<br />
PPad 382 10 5708577 663731<br />
PPad 592 10 5709454 653670 PPad 418 7 5707373 671102<br />
PPad 353 10 5710755 661171 PPad 429 7 5708303 671711<br />
PPad 436 10 5711882 671559 PPad 662 7 5713394 655988<br />
PPad 240 10 5712710 652748 PPad 229 7 5713578 658170<br />
PPad 227 10 5713821 660592 PPad 138 7 5721190 657607<br />
PPad 521 10 5715812 663837<br />
PPad 188 10 5717827 652109 PPad 279 6 5709587 657135<br />
PPad 199 10 5718086 656876 PPad 423 6 5710465 662847<br />
PPad 194 10 5718192 653647 PPad 548 6 5717152 659070<br />
PPad 191 10 5720233 653449 PPad 170 6 5719182 650296<br />
PPad 142 10 5726505 652170 PPad 128 6 5724830 653754<br />
PPad 294 9 5708719 655140<br />
PPad 434 9 5709902 667355<br />
PPad 269 9 5710623 658582<br />
PPad 233 9 5713791 654180<br />
PPad 132 9 5721906 651180<br />
PPad 129 9 5724084 653312<br />
Figure 3-91, Scenario 6 Core Area pad locations<br />
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3.5.1.4 Comparison of the Planning Scenarios<br />
Table 3-16, Planning Scenarios Comparison<br />
Maximized Reservoir Contact<br />
# of Stubs<br />
/Laterals<br />
Total Lateral<br />
(m)<br />
Scenario 1 -<br />
1500m<br />
Scenario 2 –<br />
2500m<br />
Scenario 3 - 1500m<br />
to2500m (mixed)<br />
Scenario 4 – 1500m<br />
to 2500m (mixed)<br />
Scenario 5 - Hybrid<br />
783 420 731 451 680<br />
1,174,537 1,050,020 1,457,837 945,275 1,178,578<br />
# of Pads 212 138 184 83 73<br />
# Wells /<br />
Laterals<br />
Total MD TD<br />
(m)<br />
# Stubs /<br />
Laterals<br />
missed<br />
Missed Lateral<br />
(m)<br />
524 286 494 426 611<br />
2,509,516 1,658,470 2,598,425 2,103,255 3,372,469<br />
259 134 237 25 69<br />
388,500 335,000 478,811 53,056 142,377<br />
Profile Type<br />
Multiple Well<br />
Profiles<br />
Multiple Well<br />
Profiles<br />
Multiple Well<br />
Profiles<br />
Standard Well<br />
Design<br />
Standard Well Design &<br />
Multiple Profiles Mixed<br />
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3.5.2 Completion Design<br />
3.5.2.1 Considerations for Completion Design<br />
The vast majority of shale development wells are multistage completions, comprising of an isolation<br />
method, which is used to separate each fracture interval and treatment, a perforation /fracture<br />
initiation method, and the fracture treatment (fluid and proppant). The primary isolation methods used<br />
in these wells are: open hole, cased and cemented, cased and uncemented isolation or sliding sleeves<br />
and packers.<br />
Cased and cemented horizontal completions offer a high degree of control of the fracture treatment<br />
placement, whereas open hole and uncemented annulus completions offer greater access to and have a<br />
better chance of stimulating a larger area within the interval. Uncemented completions use external<br />
mechanical and swellable casing packers to achieve zonal isolation. Swellable packers exert far less<br />
pressure on the formation than mechanical packers making them a better choice in less competent rock<br />
such as shale. The key differences between an unconventional shale well and a conventional well are in<br />
the completion design and stimulation methods that are applied. The objective in shale fracturing is to<br />
create a dense network of branch fractures, whereas fracturing in conventional reservoirs creates<br />
simple biwing fractures.<br />
Some shale reservoirs consist of individual laminated zones of < 1-ft thickness, that require pinpoint<br />
fracture placement, while others consist of thicker or massive shale beds that require a different<br />
method of fracture placement. Selection of the fracture initiation locations is largely based on TOC<br />
content and brittleness.<br />
Depending on the type of zonal isolation technique employed, a fracture staging method from one of<br />
the following groups is typically used:<br />
• Perf-and-Plug Processes<br />
• Sliding Sleeve Processes<br />
• Pinpoint Stimulation Processes<br />
3.5.2.2 Completion Processes Used Today<br />
Perf-and-Plug Process<br />
Wireline perf and plug method offers the ability to fracture stimulate multiple intervals where isolation<br />
between intervals is achieved using pumpdown plugs. The plug and perforate process can be applied in<br />
cased and cemented completions, and in cased completions using open hole packers. This technique<br />
involves running in the hole with conventional guns to perforate an interval, pulling out of the hole,<br />
pump the stimulation treatment, pump the plug to isolate the interval, and then run in the hole with<br />
guns to perforate the next interval. While there are many advantages when applying the plug and<br />
perforate process, such as that it is a simple process with economically acceptable results, there are<br />
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limitless numbers of stages, a higher-rate treatment schedule can be applied, and it is the most common<br />
method of multistage fracture stimulation.<br />
The process of pumping down the bridge plug and perforating guns is considered to be quite efficient<br />
and the overall operation can take from 2 to 4 hours between fracturing treatments depending on the<br />
well depth.<br />
Figure 3-92, Perf & Plug Fracturing Method<br />
Often however, the promise of efficiency for many of these high-rate, limited-entry perforating<br />
treatments provide elusive. Contingencies for early screen-out, gun miss-fires, premature setting of<br />
composite plugs, and tight spots in casing or even fishing operations for parted wireline dramatically<br />
impacted completion efficiency. To achieve limited-entry diversion high treatment rates were used<br />
which required a large amount of hydraulic horsepower onsite.<br />
For relatively thick, low stress, high brittle reservoirs like the Barnett Shale in North Texas the Perf &<br />
Plug method has been used extensively with satisfactory results. One point to mention is that this<br />
method requires the composite plugs be milled out at the end of the completion. When looking at<br />
horizontal well completions holistically the well intervention required to drill the plugs hurts the overall<br />
efficiency.<br />
Advancements in Plug & Perf Hardware<br />
For years, both cast iron and retrievable–type bridge plugs have been popular with oil and gas operators<br />
for achieving zonal isolation in multi–zone wells in order to perforate, treat, or isolate the zones<br />
independently for remedial work without damaging the formation. However, while either of these tools<br />
offers an acceptable solution, both present new challenges.<br />
Operators using cast iron bridge plugs must remove them by drilling them out of the wellbore. Following<br />
drill out, the cast iron cuttings require heavy fluids to remove them from the wellbore due to their<br />
weight.<br />
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On the other hand, retrievable–type bridge plugs require extra time to set and retrieve from the<br />
wellbore and they can require twice as many trips in the hole.<br />
To overcome these problems, composite bridge plugs, flow-thru composite frac plugs and squeeze<br />
packers were developed. They are constructed of high–strength, lightweight, composite materials and<br />
standard drillable elements that make them easy to drill out while maintaining their reliability. These<br />
"composite" tools do not have the long life spans of other types of plugs such as cast iron but their<br />
longevity is not a concern because their useful life is of such short duration. Their more important<br />
benefit is the ease and speed at which they can be removed from the wellbore after the job is finished.<br />
When compared to cast iron plugs, the average composite plug drill out time is remarkably less. Cast<br />
iron bridge plugs require as much as four hours or more to drill out compared to an average of 35<br />
minutes for a composite plug. Additionally, the light weight composite material that the bridge and frac<br />
plugs are composed of enables their cuttings to be easily circulated back to the surface in lightweight,<br />
non–damaging drilling fluids.<br />
In the late 1990’s, composite perf & plug tools were developed and they have continued to evolve to<br />
improve efficiencies in the completions process. The new plugs are made of composite materials and<br />
are employed similarly to conventional permanent bridge plugs. They are available in standard and<br />
high–pressure/high-temperature (HP/HT) models and setting equipment is identical for both versions.<br />
A Flow-Thru Composite Frac Plug (FTCFP) is a specific tool that works as a bridge plug when the pressure<br />
above it (such as during a fracture treatment) is higher. Then, when the pressure above is lower than<br />
the pressure below (such as when flowing the well back), the FTCFP allows fluid-flow from below<br />
through the plug. Using FTCFPs also allows all zones to produce during the completion of the well. Two<br />
benefits to this are that 1), no zones are shut-in for long periods of time, and 2), when the bottomhole<br />
flowing pressure is reduced during flow back, all previously treated zones help to clean up each new<br />
treatment. After a well is completed, the FTCFPs can easily be drilled out or left in the well. There are a<br />
variety of FTCFPs on the market today. All of them provide essentially the same function; isolate lower<br />
stages from the fracture treatment, and then, allow all the zones to produce during completions. Some<br />
of them have a one-way float, or ball built inside the tool; others have a ball cage on the top, and finally,<br />
there are the ones that have a free floating heavy ball.<br />
FTCFP are capable of addressing the current needs to reduce operational costs and improve<br />
productivity. These plugs can be used as an alternative to traditional isolation methods, or induced<br />
stress diversion. The benefits gained from FTCFP usage are derived from the following: being that well<br />
drill-out isn’t required costs are reduced, positive isolation is allowed, and all zones can be produced<br />
during completion.<br />
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Some of the benefits that are being seen today from technology advanced composite tools:<br />
• Cut days off fracturing procedures<br />
• Eliminate workover rig costs<br />
• Eliminate formation-damaging kill fluids<br />
• Save hours of costly rig drilling out time compared to other completion tools<br />
• Bridge plugs hold pressure from above and below<br />
• Maximum pressure and temperature 10,000 psi and 300 degrees F<br />
Sliding Sleeve Ball Activated Process<br />
To improve efficiency by reducing the time between fracturing treatments a completion using ball<br />
activated sliding sleeves was developed. Sliding sleeves are activated by pumping down balls or plugs<br />
which land on internal baffles plates to cause ports or windows in the casing to shift open. This<br />
technology has been used in the industry for many years as a method for performing multi-stage<br />
cementing in a clean wellbore. For fracturing operations a number of these sleeves can be run in series<br />
using baffle plates that have progressively larger internal diameter from the tow toward the heel of the<br />
horizontal lateral. Individual sleeves can then be opened by pumping the corresponding ball with a<br />
diameter slightly larger than the diameter of the baffle plate. When the ball seats on the baffle plate<br />
blocking flow to a previously stimulated interval, continued pressure increases and the sleeve shears a<br />
pre-determined number of locking pins and shifts the internal sleeve to expose external ports in the<br />
open position. In the open position with the ball on seat the fluid being pumped is diverted to a new<br />
interval.<br />
Figure 3-93, Ball Activated Sliding Sleeve Completion<br />
Performing a multi-interval completion in this way can eliminate the time between fracturing<br />
treatments making the process a continuous pumping operation. Diversion is controlled by the balls on<br />
seat in the baffle plates and on the casing annulus by external casing swellable packers or hydraulically<br />
activated external casing packers. The balls can be flowed back and recovered on surface but if a<br />
remediation such as wellbore cleanout is required the baffle plates are often milled out.<br />
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The overall process is extremely efficient provided there are no unplanned events. But there are a<br />
number of common events that can have a dramatic impact on efficiency and effectiveness of this<br />
process:<br />
• As the number of zones increases, the ball seat diameter in the lower zones decreases resulting<br />
in flow restriction and reduces the number of individual zones that can be stimulated.<br />
• Cemented completions present a problem for this type of completion due to the casing<br />
restrictions from the baffle plates. Conventional cement wiper plugs are not appropriate. Foam<br />
dart-type wiper plugs have been used but there is a risk of prematurely opening a sleeve with<br />
this type of operation.<br />
• Pumping the balls down to activate the tools often involves over-flushing the previously<br />
stimulated interval.<br />
• The costs of the sleeve tools and external casing packers could add to the overall completion<br />
cost.<br />
Advancements in Sliding Sleeve Technology<br />
A multi-fracture per isolation zone system provides operators new options for completing horizontal<br />
multi-zone wellbores to enable highly accurate placement of fractures, with minimal or no intervention.<br />
The system incorporates three proven, reliable systems – the sliding sleeve, initiator sleeve and the<br />
swellable packer isolation system – to allow operators to access multiple fracture points within an<br />
isolated interval. The completion assembly can be run into the wellbore using the liner hanger system<br />
or production casing to surface. The ball-activated system enables a totally interventionless completion.<br />
The system uses multiple fracture sleeves and a sliding sleeve within a single interval. This exposes the<br />
reservoir face to multiple fracture points, similar to the “plug and perf” process, without the loss of<br />
time, waste of water resources or extended exposure of personnel. Up to six fracture points can be<br />
used within an interval isolated by the swellable packer in a given zone. Up to 15 zones can be used for<br />
the completion. This results in up to 90 fracture sleeves that can be used in one horizontal completion.<br />
This advancement allows for continuous pumping of multi-zone treatments, and helps reduce<br />
completion cycle time and improve production.<br />
Pinpoint Stimulation Processes<br />
Pinpoint Stimulation fracturing methods represent a departure from the conventional approach<br />
previously mentioned. Multiple interval completions provide assurance that all intervals receive the<br />
designed proppant volumes – one interval at a time. To accomplish the efficiency coiled tubing is used<br />
to hydra-jet perforate intervals for individual fracturing treatments.<br />
Proppant plugs can be used not only for isolating previously stimulated intervals but also for maximizing<br />
near-wellbore conductivity for long-term production performance – critical in more ductile rock under<br />
high stress. These fracturing methods do not require removing the coiled tubing from the well between<br />
treatments and contingencies for early screen-out can be remediated immediately with minimal impact<br />
on overall completion costs. Treating intervals individually substantially reduces the amount of hydraulic<br />
horsepower required onsite which reduces the footprint of the completion operation, requires fewer<br />
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personnel onsite during the operation, and assures each interval receives the optimum fracturing<br />
treatment.<br />
Hydra-Jet Assisted Fracturing Method (HJAF)<br />
HydraJetting, the use of water under high pressure, is a well-known technique that many industries use<br />
to perform different tasks. These tasks range from cleaning and preparing surfaces, placing cements,<br />
drilling, cutting, slotting, perforating, machining, grouting, and mining to household uses, such as car<br />
washing and dental hygiene. One common function of the hydrojet or HydraJet (if other abrasive, such<br />
as sand, is used) is that its high-power energy is concentrated or focused on its target. In the oil industry,<br />
the most common applications for HydraJetting are slotting (cutting) or perforating. In these<br />
applications, sand performs the abrasive cutting function. Over time, jet-system quality has improved<br />
dramatically, resulting in greater resistance to abrasives and various chemicals and significantly<br />
increased tool life. Using this improved jetting tool, the HJAF technology has been effectively used in<br />
stimulation of horizontal well completions.<br />
Originally developed for open hole horizontal completions the HJAF method relies on stagnation<br />
pressure fracture initiation and dynamic diversion inherent in the use of hydra-jet energy while<br />
fracturing. The process has been used effectively in cased and cemented applications.<br />
In the HJAF process, the fracturing fluids (with sand) are injected through the tubing while clean fluids<br />
are pumped down the annulus. The annulus pressure is controlled as such that downhole bottomhole<br />
pressure (BHP) is slightly below the fracture-initiation pressure. As a sand pill hits the wall, it forms a<br />
cavity within seconds. The annular pressure is maintained constant as per leak off. Initially, the fluid<br />
entering the perforation cavity refluxes into the annulus because it has nowhere to go. As the cavity is<br />
formed, pressure on the bottom of the cavity increases. Fluid inside the cavity continues to increase and<br />
fracture initiation takes place with fluid entering into the formation. There is no need for mechanical<br />
isolation with this process and the time between treatments is based on the time to move tubing from<br />
one target interval to the next.<br />
Figure 3-94, - Hydra-Jet Assisted Fracturing Method<br />
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The bottom-hole assembly has undergone dramatic improvement to extend the life of the jetting device<br />
since the early days of its use. Jetting tools as late as 2009 were limited to less than 50,000 lbs of<br />
proppant per jet which meant the bottomhole assembly would need to be changed often for a multiple<br />
interval completion. The trip time for this operation resulted in excessive non-productive time for the<br />
fracturing equipment. Today’s technology has extended the life of these tools by a factor of 10 meaning<br />
the number if treatments that can be reliably placed before replacing the BHA has increased 10-fold as<br />
compared to more conventional jetting tools. Completions with more than 20 individual fracture<br />
treatments have been placed in one run into the well with over 1,000,000 lbs of proppant placed.<br />
Hydra-Jet Perforating and Annular Coiled Tubing Fracturing Method (HP-ACT)<br />
Some reservoirs, particularly when the rock is ductile or moderately brittle, require higher proppant<br />
concentration with no overflushing of the perforations to offset effects of proppant embedment. One<br />
way to assure conductivity near-wellbore is to intentionally screen-out the perforations at the end of a<br />
fracture treatment. This proppant plug that results from an intentional screen-out can be useful in<br />
diverting fluid for further treatments up hole while protecting previously treated intervals.<br />
Coiled tubing can be useful for managing the excess proppant in the wellbore as well as provide a means<br />
of hydra-jet perforating the casing and initiating the fracture. To prolong the life of the jetting tool it is<br />
used for hydra-jetting perforating, only. The main fracture treatment is pumped down the annulus of<br />
the casing and coiled tubing. The low injection rate required for the hydra-jet perforating operations<br />
allows for using more conventional size coiled tubing (1-3/4” and 2”). When the bottomhole assembly<br />
includes the latest jetting tool technology the number of treatments that can be performed in a single<br />
trip into the wellbore is increased dramatically – typically > 40 intervals per completion.<br />
Figure 3-95, HP-ACT Method using Coiled Tubing<br />
After all intervals have been treated, the same bottomhole assembly can be used to wash out the<br />
proppant plugs in a final wellbore clean-out operation with CT without tripping out of the well. Some<br />
reservoirs present problems when attempting to induce a screen-out at the end of each treatment. In<br />
the past it has been necessary to circulate down a proppant slurry to achieve sufficient bridging of the<br />
perforations and create a proppant pack inside the casing. Various techniques have been used to<br />
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improve the reliability of establishing the proppant pack of each treatment but this operation remains a<br />
process step frequently associated with non-productive time.<br />
Advancements in Pinpoint Stimulation Technology<br />
There are currently pinpoint stimulation completion services that enable placement of virtually<br />
unlimited number of fracturing stages in a horizontal section with the flexibility of on-demand,<br />
downhole changes in proppant concentration. These services uses high-rate pumping of non-abrasive<br />
fluid down the annulus mixed downhole with a proppant concentrated slurry being pumped down the<br />
tubing. As a result the rate down the annulus will be much higher, and can be manipulated to customize<br />
the placement and concentration of proppant being pumped down into the fracture. Real-time,<br />
downhole changes to proppant concentration help achieve optimum stimulated reservoir volume and<br />
connectivity to a larger fracture network.<br />
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3.5.3 Completion Method Comparison<br />
Several multiple-interval fracturing methods have been presented and each has a measure of benefits<br />
and drawbacks making it difficult to ascertain the appropriate method for a given completion scenario.<br />
Certainly the type of rock, whether brittle or ductile, and the zone thickness have a bearing on the<br />
selection criteria. Another technique to consider when choosing the appropriate completion method is<br />
to compare estimated total efficiency of the various fracturing methods for a given volume of fluid and<br />
proppant to be placed into a predetermined number of fractures for a given completion.<br />
To calculate the efficiency of each process a simple formula can be used with a focus on effective<br />
utilization of equipment during the fracturing process and the higher the number the better the<br />
efficiency. The total volume of proppant placed in the completion is divided by the total require<br />
hydraulic horsepower and then divided by the total time to place all treatments:<br />
Process efficiency is related to - lbs Proppant/HHP/hr<br />
Contingency cost can be evaluated by assuming a screen out occurs in one interval and applying the<br />
appropriate remediation method. The time required to re-establish the normal fracturing method<br />
process is the measure of the contingency cost. Obviously, the more pumping and associated equipment<br />
on location during the remediation the higher the impact on cost but this is not considered here.<br />
<strong>Final</strong>ly, the optimum ‘clean’ time (meaning no unplanned events occur) can give a relative idea as to the<br />
overall time impact on the total completion. This time would include time spent after the fracturing<br />
process such as wellbore clean-outs or drill-outs of plugs.<br />
When the design for multiple intervals treated as a single stage is compared to processes that treat<br />
intervals individually, the multiple interval stage volumes and rates are divided by the number of<br />
perforated intervals to determine the rates and volumes of individual treated intervals. An example of<br />
the processes discussed in a generic completion job, assuming continuous fracturing is shown in Figure<br />
3-17. The corresponding results are shown in Figure 3-18.<br />
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Table 3-17, Job Parameter Comparison on Methods<br />
Perf & Plug Sliding Sleeve HJAF HP-ACT<br />
Total Intervals 30 30 30 30<br />
Perf Time/Stage 4 hrs 0.1 hrs 0.5 hrs 0.5 hrs<br />
Total Perf/Move Time 40 hrs 3 hrs 15 15<br />
# Intervals/Stage 3 1 1 1<br />
Treatment Rate 100-60 bpm 100-60 bpm 45-20 bpm 45-20 bpm<br />
Total Fluid Volume 1,500,000 gals 1,500,000 gals 1,500,000 gals 1,500,000 gals<br />
Total Proppant Volume 1,500,000 lbs 1,500,000 lbs 1,500,000 lbs 1,500,000 lbs<br />
Total Pumping Time 10.37 hrs 10.37 hrs 31.12 hrs 31.12 hrs<br />
Diversion Time/Stage 0 hrs 0 hrs 0 hrs 0.5 hrs<br />
Total Diversion Time 0 hrs 0 hrs 0 hrs 14.5 hrs<br />
Hydraulic Horsepower 30,000 HHP 30,000 HHP 15,000 HHP 14,000 HHP<br />
Total Frac Method Time 50.37 hrs 13.37 hrs 46.12 hrs 60.62 hrs<br />
Screenout Contingency Time 20 hrs 24 hrs 0.5 hrs 0.5 hrs<br />
<strong>Final</strong> Wellbore Cleanout Time 72 hrs 0 hrs 0 hrs 8 hrs<br />
Table 3-18, Comparison Results<br />
Fracture<br />
Method<br />
Perforating<br />
Diversion<br />
Efficiency (lbs<br />
proppant/HHP/hr)<br />
Contingency<br />
Cost, Hours<br />
Total<br />
Completion<br />
Time, Hours)<br />
Perf & Plug Select-Fire Composite Plug 0.99 20 122.37<br />
Sliding Sleeve Sliding Sleeve Ball & Seat 3.74 24 13.37<br />
HJAF Hydra-Jetting Dynamic 2.17 0.5 46.12<br />
JP-ACT Hydra-Jetting Packer or Sand Plug 1.77 0.5 68.62<br />
3.5.4 Completions Summary and Recommendations<br />
Many of the techniques discussed in this paper have proven successful in North America. To restate, the<br />
most common completion techniques seen in shale gas completion in the United States today are:<br />
• Plug and perf technique using drillable bridge plugs for isolation;<br />
• Ball drop or remote actuated sliding sleeve completions using open-hole packers in uncemented<br />
applications or cemented into place; and<br />
• Coiled-tubing assisted fracturing using HydraJet perforating and sand plugs for zone isolation.<br />
The completion recommendation for <strong>EBN</strong> is to adopt the third technique – coiled-tubing assisted<br />
fracturing and more specifically HydraJetting via coiled-tubing. This method facilitates stimulating<br />
multiple shale intervals with less than half the hydraulic horsepower requirements and a significantly<br />
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reduced footprint compared with other currently popular completion methods. This technology has<br />
significant potential because coiled tubing and HWO units are available in Europe.<br />
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4 Surface & Environmental Impacts<br />
4.1 Project Description<br />
The Scope of Work (SOW) for the Surface and Environmental Impacts team was to prepare a notional /<br />
feasibility level study to identify the potential environmental issues associated with the surface impacts<br />
associated with the development of shale gas resources within the Netherlands.<br />
4.1.1 Assumptions<br />
Our recommendations are based upon the data reviews, modeling and designs of the Subsurface Team,<br />
and input from <strong>EBN</strong>. Based upon information agreed to in our Peer Review meeting on September 24,<br />
2011, the following assumptions were used as the basis of our work.<br />
Resource play is a “dry gas.”<br />
Low potential for the presence of hydrogen sulfide (H 2 S).<br />
In order to maximize the potential production volumes of the play, the development will require<br />
horizontal drilling with hydraulic fracing. Since different lateral lengths and number/stages of<br />
fracs were modeled, it is important to clarify that our work is based upon the following<br />
information:<br />
Drilling depth of 3,100 meters<br />
o Lateral lengths of 1,500 meters on a 400-meter spacing<br />
o Designed for 22 frac stages<br />
o Each stage will require 3,000 barrels of water<br />
o Flowback is projected at 15 percent (%) of injected volume<br />
o Produced water is projected at 600 barrels per day (initial volumes could be as high as<br />
1,000 barrels per day)<br />
• Well pad footprint is estimated at 150 meters by 100 meters.<br />
• For each well pad, it is estimated that between one and 10 wells can be drilled to minimize the<br />
number of well pads required.<br />
• Within the identified “GO” sites, the intent would be to establish centralized water<br />
impoundments with piping systems to move the water between the well pads.<br />
• Al surface facilities must be designed in relation to potential seismic activity.<br />
4.1.2 Unknowns<br />
There are still many “unknowns” at this juncture of the study, which will be reduced as decisions are<br />
made regarding:<br />
• Location of first area to be explored<br />
• Capital budget to be invested<br />
• Schedule of resources allocated.<br />
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4.1.3 Hypothetical “Base Case”<br />
In order to complete our portion of the notional / feasibility study, we had to determine a means by<br />
which we could provide an overview of the Surface Issues that will need to be addressed as the project<br />
progresses.<br />
We selected a hypothetical location as a “Base Case” location and used this “Base Case” as a point of<br />
reference for our discussions. We used the following process to select the “Base Case”:<br />
• Discussions between <strong>EBN</strong> and Halliburton determined the basis for lateral layouts to maximize<br />
reservoir exposure in the areas designated between the faults in Zone 8C (this was an area<br />
highlighting the “best – sweet spot” reservoir. The boundaries of this initial iteration were<br />
arbitrary.<br />
• We reviewed the areas within Zone 8C to determine “favorable” locations (the NO-GO, MIGHT-<br />
GO, and GO process is described in more detail in Section 6.3 – Well Pad Construction).<br />
• Halliburton took the available “favorable” locations and performed modeling for possible well<br />
pad locations based upon a realistic approach to well design rather than maximum reservoir<br />
contact.<br />
• A listing of the 83 possible pad locations were identified and plotted on a map.<br />
• With local knowledge of the existing gas grid within the Netherlands a location should be chosen<br />
to minimize the infrastructure that would be required to get the shale gas to market.<br />
• In addition, it should be confirmed that local water boards would have sufficient “grey water”<br />
through-put, if that was the source water option ultimately selected.<br />
• Another consideration was the proximity to several surface water bodies nearby if the need for<br />
surface water as a source water becomes part of the equation.<br />
• While not knowing the number of wells that will be drilled and the timeline in which the wells<br />
would be drilled, we reviewed the production data provided by Halliburton and made a decision<br />
that for the purposes of our “Base Case,” that it was reasonable to assume that enough wells<br />
would be drilled and brought into production to foresee the need for a gas processing facility<br />
capable of handling 500,000 mcf of gas per day.<br />
• With industry knowledge that the gas processing facilities for “dry gas” are packaged units that<br />
are scalable up or down according to actual production volumes, we determined the need for a<br />
parcel of land of approximately 5 hectares for a centralized processing facility location.<br />
• It was presumed that the gas processing facility and a centralized impoundment for water<br />
storage could be co-located on the same parcel of land to minimize the footprint of gas<br />
development efforts.<br />
• In addition to the gas processing facility and centralized impoundment, it is assumed that the 5<br />
hectare parcel would provide sufficient space for mobile skid-mounted water treatment<br />
equipment to be stationed on the site to facilitate the treatment and blending of fresh water so<br />
as to enable the recycling and re-use of the flowback and produced water and minimize the<br />
volumes of fresh water needed to support the gas development.<br />
• Temporary water pipelines could be constructed to provide the fresh water to the well pads<br />
from the centralized impoundment and transfer the flowback and produced waters back to the<br />
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location for treatment, blending, and re-use of the water.<br />
We selected a parcel of land within Zone 8C that is in close proximity (5 kilometers) to a number of<br />
possible well pad locations (13 well pad sites) as our “Base Case” location from which to work.<br />
The Figure 4-1 below shows a location that we have selected within Zone 8C that will be referred to as<br />
our “Base Case” site. This is a hypothetical location and serves for discussion purposes only.<br />
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Figure 4-1. “Base Case” hypothetical location.<br />
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This location was selected based upon the following criteria:<br />
• Agriculture area within the established “GO” areas within Zone 8C<br />
• Availability of land (5 hectares)<br />
• Proximity (within 5 kilometers) of identified possible well pad sites (474, 208, 207, 203, 470, 517,<br />
509, 482, 480 92, 90, 66, and 619)<br />
• Proximity (within 5 kilometers) of the assumed location of the gas pipeline grid within the<br />
country<br />
• Proximity (within 5 kilometers) of alternative sources of water<br />
o Surface water / streams / rivers<br />
o “Grey water” from a local water board<br />
• Proximity to roadways for movement of equipment<br />
• Availability of utilities as source power for surface facilities<br />
If eight to 10 wells were drilled at each identified well pad site in the area referenced above (13 well pad<br />
sites), there is the potential of 104 to 130 wells being drilled in the area of our hypothetical site referred<br />
to as “Base Case” site.<br />
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4.2 Regulatory Framework<br />
4.2.1 Introduction<br />
We have reviewed the regulatory framework within the Netherlands as it applies to the development of<br />
shale gas resources, and provides the following summary.<br />
Various approvals are required for the extraction of shale gas, including land use, building and<br />
establishing surface and underground facilities, and the performance of actions that may influence the<br />
quantity and quality of (ground) water in protected nature (conservation) areas. This section discusses<br />
the most important laws and regulations.<br />
In principle, the various approvals that are needed require a range of legal proceedings. An exception<br />
however is the situation for which a special law is provided for the relevant actions. Here the National<br />
Coordination Regulation (NCR - rijkscoordinatieregeling) should be followed. Should such a case occur,<br />
most of the necessary approvals are prepared by the same procedure.<br />
In view of the above, the following information addresses the circumstances where the NCR might apply<br />
to this initiative.<br />
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4.2.2 National Coordination Regulation<br />
In 2010, the NCR for state, provinces, and municipalities came into force under the (new) Spatial<br />
Planning Act (SPA) (ref. par. 3.5.2., in particular 3.6.3, SPA). Further detail is available in paragraph 9a of<br />
the Mining Act (MA).<br />
The regulation aims to make the decision making process for (changes to) spatial plans and associated<br />
permitting procedures, faster and more efficient. The targeted efficiency improvement also proposes a<br />
preference for one governmental organization to become the responsible authority in the decision<br />
making process.<br />
Exploration and production (E&P) infrastructure projects have become subject to the regulation, as they<br />
concern large energy projects of national interest, that need to be incorporated into spatial plans.<br />
Article 141a of the MA declares this procedure applicable to mining activities (i.e. mining works): a) used<br />
in the exploration or production phase within or under certain nature conservation areas, b) for the<br />
storage of substances, and c) for pipelines (primarily or largely) related to the transport of natural<br />
resources resulting from the exploration or production thereof.<br />
This NCR is meant to shorten and streamline the time span of the large diversity of permit procedures<br />
involved in large-scale energy and infrastructure projects. The urban planning decision will take place on<br />
a central level, as does the coordination of the permits. By coordinating the preparation and handling of<br />
the permit procedures simultaneously, a better cooperation between authorities is realized and all<br />
relevant information can be considered in the decision making process. This coordination is linked to the<br />
Ministry Zoning Plan (MZP).<br />
Summarising, the NCR contains:<br />
• Notification of the project should be made to the Minister of Economic Affairs, Agriculture,<br />
and Innovation;<br />
• The Ministers of Economic Affairs, Agriculture, and Innovation and Infrastructure and<br />
Environment should determine a National Integration Plan (NIP) which is procedure for<br />
zoning at national level for spatial anchoring of the initiative<br />
• The procedures and required approvals for this integration plan are specific and require the<br />
Ministry of Economic Affairs, Agriculture and Innovation to render a decision on the<br />
application within +/- 6 months.;<br />
• Once an appeal at the Division of the Council of State (Department) has been filed, the<br />
Department is required to rule within six months after the appeal period (Article 1.6 Crisis<br />
and Recovery Law).<br />
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A provisional procedure is presented in the Figure 4-2 below.<br />
Figure 4-2. Provisional Procedure<br />
The overall timing of the procedure shown in the above figure is indicative. Some terms strongly depend<br />
on urgency, type, scale, and impact of activities to be undertaken. The duration, including<br />
administrative court procedure, is estimated at three years; however, potentially time can be saved in<br />
proper (pre-phase) preparations. As this procedure has only been established/ implemented in the<br />
Netherlands over the past two years, there is no practical experience available yet. However, a number<br />
of 10 to 15 projects are currently ongoing.<br />
Article 141c of the MA provides that more detailed rules can be set on the approvals that fall under the<br />
NCR anyway. These more detailed rules are set out in Article 4 of the Implementation Decree NCR<br />
energy-infrastructure projects. From this Article, it can be derived that the production license as<br />
mentioned in the MA does not fall under the NCR, but the production plan does. We elaborate on this in<br />
the next chapter.<br />
4.2.3 Mining Legislation<br />
The Mining Legislation (ML) contains rules regarding the exploration and extraction of minerals and<br />
activities related to mining activities.<br />
The ML, which was established in 2003, replaces a range of other legislations regarding mining activities.<br />
The Minister of Economic Affairs, Agriculture, and Innovation is the authority of the ML. Within this<br />
legislation, the storage and extraction of minerals from a depth of greater than (>) 100 meters is<br />
specifically included.<br />
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The ML mostly involves the requirements and conditions required to prevent dangerous incidents.<br />
Preventive measures can involve technical, organizational, procedural, or supervisory aspects. The ML<br />
regulates the use of underground areas, particularly permitting and decisions made by the Ministry of<br />
Economic Affairs, Agriculture, and Innovation.<br />
The ML implements the requirements that are set by relevant European Union (EU) guidelines by means<br />
of an exploration permit, an *extraction permit (which includes approval of the ‘so-called’ Production<br />
Plan), independent inspection by the State Supervision of Mines, (Dutch: Staatstoezicht op de Mijnen),<br />
and several general regulations regarding the design, operation, and monitoring of mining works where<br />
products are stored.<br />
Once exploration drills have shown that an economical extractable amount is achievable in the area, a<br />
production permit is requested. A production permit (concession) must be seen as an area reservation<br />
(consider ‘an area reserved for mining activities’) for mining activities. If the production permit is<br />
requested by someone other than the holder of the exploration permit, or is requested after the<br />
expiration date of the exploration permit, the Minister should give other parties the opportunity to<br />
apply for a production permit. In the permit application, the applicant must demonstrate that it is<br />
economically viable to extract the shale gas. Furthermore, the financial position and its possibilities,<br />
method of execution and social responsibility, must be described.<br />
If the permit is granted, a production plan must be submitted to the authority for approval. The<br />
production plan must address potential environmental impacts, any possible effects of ground<br />
movement (in terms of geotechnical/seismic activity), and safety concerns.<br />
Upon completion of the shale gas extraction, the well must be plugged and abandoned (P&A) in<br />
accordance with the applicable regulations. Included in this P&A process of the dismantling and removal<br />
of any surface facilities and the extraction sites should be restored to its original condition. In addition,<br />
any pipelines or cables should be removed, unless the landowner elects to keep the pipeline/cable.<br />
4.2.3.1 Procedure and authority production permit<br />
The production permit is granted by the Minister of Economic Affairs, Agriculture, and Innovation. As<br />
concluded in previous section, in principle, the NCR does not affect the production permit. The ML<br />
procedure should be reviewed to complete the permit.<br />
Under Article 17 section 1 of the ML, the Minister of Economic Affairs, Agriculture, and Innovation<br />
should, in principle, render a decision within six months on the application. This review can be extended<br />
one time for a period of six months. Additionally, a longer period is applicable if other parties should be<br />
invited to apply for a production permit (this situation is described above). The stakeholder should have<br />
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first rights to object to the decision for the application of a production permit. Objection against the<br />
decision is possible through the State Division of State Council (Article 142 ML).<br />
4.2.3.2 Procedure and authority production plan<br />
Unlike the production permit, the production plan falls under the NCR as applicable to the initiative. The<br />
procedure is referred to in the previous section that relates to the NCR.<br />
Even if the NCR would not apply, the uniform, public preparation procedure of Section 3.4 of the<br />
General Administrative Law (GAL) is applicable to the production plan. This means that a first draft of<br />
the production plan should be made available for public review and objections may be filed. The<br />
Minister of Economic Affairs, Agriculture, and Innovation has six months to render a decision on<br />
whether or not to approve the production plan as submitted. Appeals of their decision may be filed<br />
with the Division of the Council of State.<br />
4.2.4 Decree General Environmental Rules - Mining Activities<br />
The Decree General Environmental Rules – Mining Activities (Barmm) is applicable to temporary mobile<br />
installations for the construction, testing, maintenance, repair, or decommissioning of a borehole. In<br />
this scenario which involves the more permanent extraction of minerals, for which the permit<br />
application process applies, this decree is therefore not applicable.<br />
4.2.5 Spatial Planning Act<br />
The Spatial Planning Act (SPA) regulates the establishment and modification of spatial planning in the<br />
Netherlands. The law requires local governments to draw up more indicative plans (structural visions),<br />
but also applies to civic integration and binding zoning. Furthermore, the law provides the opportunity<br />
to lay out general spatial rules, which work through in lower planning.<br />
The buildings, pipelines, and other installations associated with gas extraction should be reviewed in<br />
relation to existing zoning requirements. It may be presumed that the zoning does not allow for a major<br />
gas extraction development project, so a zoning variance procedure is necessary. The zoning criterion is<br />
“good spatial planning.” As part of this variance request, the effects of the plan will be examined to<br />
ensure they are consistent with the planning policy, and that the environmental and nature standards<br />
are not violated.<br />
4.2.5.1 Procedure and authority<br />
In principle, a zoning plan is set by the town council. In cases where the NCR is applicable, the Ministers<br />
of Infrastructure and Environment, Economic Affairs, Agriculture, and Innovation, shall determine a<br />
governmental integration plan. Other decisions considered to be necessary, will be prepared in parallel<br />
to the integration plan’s development procedure.<br />
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Regardless of the applicability of the NCR, the plan is prepared using the uniform public preparation<br />
procedure of section 3.4 of the GAL. This means that the draft of the integration or zoning plan should<br />
be available for public review for six weeks. During these six weeks, objections to the draft plan can be<br />
filed. Appeals of the final decision are handled by the Department of Administrative Law, at the Council<br />
of State.<br />
4.2.6 General Provisions Environmental Law<br />
On 1 October 2010, the General Provisions Environmental Law (Wabo - Dutch: Wet algemene<br />
bepalingen omgevingsrecht, ) were implemented The Wabo contains various rules and frameworks for<br />
activities that may affect the physical environment and was established to provide a simplified and<br />
faster permit application process and improved public services by the government for building, space,<br />
and the environment.<br />
The ‘all-in-one’ permit for physical aspects (known as the All-in-One permit) is one integrated permit for<br />
building, housing, monuments, space, nature, and environment. The General Provisions Environmental<br />
Law imposes requirements on localised projects that may affect the physical environment. For shale gas<br />
extraction, the environment and building requirements are especially relevant. Any possible effects on<br />
protected nature conservation areas play a role. These are discussed separately in the relevant sections<br />
in this report.<br />
Although the purpose of the Wabo is to grant a permit for the entire project, it can be assumed - given<br />
the distance between the well pads - that each location would require an ‘All-In-One’ permit.<br />
4.2.6.1 Environment<br />
For the establishment of a facility that is essentially a mining activity, an ‘All-In-One’ permit must be<br />
obtained. The permit application must be reviewed from the perspective of protecting the<br />
environment. The best available techniques and the threshold values for air quality, external safety, soil<br />
protection, vibrations, and sound should be verified in this framework. Also, subordinate legislation,<br />
such as the municipal and provincial environmental policies would need to be considered.<br />
4.2.6.2 Building<br />
The building of surface structures that are necessary for gas extraction, without an ‘All-In-One’ permit is<br />
prohibited. For the component building, the ‘All-In-One’ permit should be denied if the structure does<br />
not comply with requirements for housing, the building code and prosperity, or if the building is in<br />
violation of zoning.<br />
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4.2.6.3 Procedure and authority<br />
The ‘All-In-One’ permit must be submitted to the Minister of Economic Affairs, Agriculture, and<br />
Innovation. Both with and without the application of the NCR, the permit is prepared with the uniform<br />
public preparation procedure of Section 3.4 of the General Administrative Law. This means a draft of<br />
the environmental permit should be made available for public review and the Minister shall grant or<br />
reject the application within six months (+ one extension of six weeks).<br />
Where the NCR is applicable, an appeal of the final decision should be made through the Department of<br />
Administrative Law at the Council of State. Where the NCR is not applicable, first appeal has to be<br />
brought before court, administrative law, and after that, it is possible to appeal to the Department.<br />
4.2.7 Water Act<br />
The Water Act (WA) is formed by the integration of eight historic water laws. The main purpose of the<br />
WA is the instrumentation of integrated water management. The WA covers quality and quantity of<br />
surface water, groundwater and the protection of water management works, such as dams.<br />
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Figure 4-3. Surface water in the Netherlands<br />
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The following activities associated with shale gas extraction are subject to the WA regulations:<br />
· The extraction of groundwater and/or surface water;<br />
· The infiltration of water into the soil (fracking activities);<br />
· The discharge of substances into surface water;<br />
· Operations in, on, or near water management works;<br />
· Works in violation of an applicable local “Keur” regulation.<br />
Regarding the extraction of groundwater, the law is restricted to a depth of 500 meters below ground<br />
level (Article 6.12, part d). If one or more of these actions take place, one water permit per location is<br />
applicable. As part of permitting review process, water quality, quantity and ecological aspects will be<br />
assessed.<br />
4.2.7.1 Procedure and authority<br />
The water permit is granted by the agency with highest authority, which depending on the type of<br />
activity and the status of the surface water would be either the Department of Waterways or Public<br />
Works for groundwater extraction and/or infiltration (Provincial Executive of Noord Brabant).<br />
Where the NCR is applicable, the water permit – like the necessary integration plan – is prepared<br />
uniformly and publicly. Appeal will be made through the Department of the Council of State. Where the<br />
NCR is not applicable, the preparation procedure depends on the type of activity. Where the activity is a<br />
direct discharge on surface water, extraction of groundwater, or infiltration of water, a decision period<br />
of six months for the uniform public preparation applies for the water permit. There is an established<br />
process whereby stakeholders can appeal the final decision of the permitting authority. In all other<br />
cases, a review period of eight weeks applies and the first objection has to be submitted before an<br />
appeal can be filed. Where the NCR is not applicable, an appeal is filed with the Department of<br />
Administrative Law at the Council of State.<br />
4.2.8 Nature Protection Act - 1998<br />
The Nature Protection Act (NPA) of 1998 contains rules pertaining to protected nature conservation<br />
areas. This includes both protected natural monuments and Natura-2000 areas.<br />
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It is possible that animal species are susceptible to the effects of sound and light. Nitrogen emissions can<br />
lead to an increase in deposits of nitrogen in protected habitats. Where these effects can worsen or<br />
have a significantly disruptive effect on species, a permit under the NPA 1998 is required. Permitting is<br />
reviewed against the conservation objectives set for the area.<br />
If the project on its own, or in conjunction with other projects or plans, could have significant<br />
consequences for the relevant Natura-2000 areas, an appropriate assessment has to be added to the<br />
application (Article 19f, NPA 1998). It is recommended that any possible effects on nature are explored<br />
using a pre-verification assessment. Only when completed, can we draw conclusions about whether an<br />
appropriate assessment is necessary. These conclusions are important for the plan’s required<br />
Environmental Impact Assessment (EIA). See the section under Environmental Management Act<br />
pertaining to an environmental impact assessment.<br />
4.2.8.1 Procedure and authority<br />
If the activity for which an environmental permit is required also requires a permit under the NPA 1998,<br />
the nature section becomes part of the ‘All-in-One’ permit for physical aspects (All-in-one permit). The<br />
preparation of the decision is referred to concisely in the section under Wabo, and where applicable, to<br />
the section about the NCR.<br />
Combination of the NPA and the ‘All-in-one’ permit can be prevented by applying for the NCR in an<br />
earlier stage. In that case, the Minister of Economic Affairs, Agriculture and Innovation is the authority<br />
to grant the NPA permit. The permit review period is 13 weeks, with one possible 13 week extension.<br />
Appeal of the decision would be filed with the Department Administrative Law at the Council of State.<br />
4.2.9 Flora and Fauna Act<br />
The Flora and Fauna Act contain rules for the protection of wild plants and animals. The law covers all<br />
operations that are carried out, and which may affect flora and fauna.<br />
If the activities associated with shale gas development were to impact fauna or flora then the provisions<br />
of the Flora and Fauna Act would apply. This also depends on the season during which the project will<br />
take place. Disruptive activities that occur during the extraction of shale gas may include: drilling,<br />
pipeline construction, construction of well pads and other installations. Given the nature of the work, a<br />
waiver under the Flora and Fauna act would be required.<br />
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Figure 4-4. Wetlands area<br />
4.2.9.1 Procedure and authority<br />
If an activity, for which an ‘All-in-one’ permit is required, also requires a waiver based on the Flora and<br />
Fauna Act, the nature section becomes part of the ‘All-in-one’ permit for physical aspects (All-in-one<br />
permit). The preparation of the decision is summarized in the section under Wabo, and where<br />
applicable, to the section about the NCR.<br />
This combination can be avoided if a waiver is applied for at an earlier stage. In this case, the Minister of<br />
Economic Affairs, Agriculture and Innovation remains the authority, however the decision period is 16<br />
weeks. Stakeholders protesting the decision on the Flora and Fauna waiver should first file an appeal<br />
with the Department Administrative Law at the Council of State.<br />
4.2.10 Excavations Act<br />
The Excavations Act contains rules relating to all excavations; excavation without a permit is prohibited.<br />
An excavation permit is necessary for the construction of a water basin and/or for the drilling of holes,<br />
dependent on exact measurements.<br />
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Figure 4-5. Excavation equipment<br />
4.2.10.1 Procedure and Authority<br />
The authority for granting the permit rests with the Provincial Executive of the Noord Brabant province.<br />
Regardless of the way in which the NCR is applied, a decision based on an application for an excavation<br />
permit, is prepared using the uniform public preparation procedure of Section 3.4 of the General<br />
Administrative Law. The decision period is six months. Within this period a draft of the permit should be<br />
made available for anyone to review. During this six week period, objections to the draft can be lodged.<br />
Appeals against the final decision can be lodged directly with the Council of State at the Department of<br />
Administrative Law (Article 17 of the Excavations Law).<br />
4.2.11 Soil Protection Act<br />
The Soil Protection Act contains rules relating to soil protection, in particular those rules that prevent<br />
soil contamination and remediation of new contamination.<br />
Under the Soil Protection Act, a duty to prevent soil contamination rests with everyone. This means that<br />
no new soil contaminations may occur or existing pollutions spread further. Both elements are<br />
important for and relate to the extraction of shale gas. Should any contamination occur, a reporting<br />
duty exists and the damage shall be remediated as soon as possible.<br />
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As part of the environmental permit, an environmental analysis should be carried out according to<br />
Dutch Soil Protection Guidelines (NRB). This should demonstrate that the risk of soil contamination, as<br />
result of the activities, is reduced to a negligible risk.<br />
4.2.12 Environmental Management Act / Decree Environmental Impact<br />
Assessment<br />
The main purpose of the Environmental Management Act (EMA) is the protection of the physical<br />
environment. Before 1 October 2010, this Act formed the basis for the environmental permit; however,<br />
this was before the introduction of the Wabo which facilitates the ‘All-in-one’ permit for physical<br />
aspects. The EMA is still an important Act for anchoring environmental quality demands, including air<br />
quality and external safety. Furthermore, the EMA has a provision for ‘policies on environmental<br />
damage or the imminent threat thereof’. Because these articles are present in the EMA, the legislature<br />
has implemented the Environmental Liability Directive (2004/35/EG) into Dutch legislation.<br />
The EMA sets the basis for conducting an EIA for activities that may have a potential environmental<br />
impact, which means it is particularly important for this framework. In the Netherlands a distinction is<br />
made between a plan and project EIA.<br />
4.2.12.1 Plan EIA<br />
If the realization of gas production is foreseen, a plan EIA should be prepared if an assessment is<br />
required within the framework of a zoning or integration plan.<br />
As previously noted, the need for this should be confirmed by an environmental pre-verification process.<br />
In addition, a plan EIA should be prepared in advance of preparation for a plan which sets the<br />
framework for the activity which is being subjected to an EIA evaluation. It can be expected that for the<br />
zoning or integration plan, a plan EIA should be prepared. This is due to the nature of the framework of<br />
activities under C 17.2 and D 17.2 / D 29.2, for which an EIA evaluation is required, and possibly due to<br />
the expected effects on nature.<br />
Among other things alternative locations for the project are part of the plan EIA.<br />
4.2.12.2 Project EIA<br />
For the present initiative, a project EIA is required if the activity occurs in Annex C of the Decree EIA.<br />
This is the case when more than 500.000 m3 of natural gas per day is extracted (category C 17.2). In a<br />
project EIA, the installation alternatives, rather than the location alternatives, are important. When the<br />
initiative is not mentioned in Annex C, it is necessary to consider whether it is mentioned in Annex D. If<br />
this is the case, an EIA assessment is required. The criteria indicate that where significant adverse<br />
environmental effects can occur, the preparation of an EIA is required.<br />
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4.2.12.3 Procedure and authority<br />
The “plan EIA” requires compliance with an extensive procedure process (shown in the Table 4-1.<br />
Comparison of Limited and Extensive EIA Procedures) and is linked to the process for determining the<br />
zoning or integration plan and should be included when the draft plan is made available for public<br />
review. Determining which institution is the correct authority for the “plan EIA” is dependent upon<br />
whether or not the NCR is applicable. Where the NCR is applicable, the Ministers of Economic Affairs,<br />
Agriculture and Innovation, and Infrastructure and Environment, would be the appropriate authority.<br />
The “project EIA” procedure is linked to the preparation of the ‘All-in-one’ permit. If required it may also<br />
be linked to the excavation permit (if required), and to the water permit (if discharge into surface water<br />
occurs). Regardless of the applicability of the NCR, the Minister of Economic Affairs, Agriculture and<br />
Innovation is the authority for the project EIA. However, joint authority with the General Executive of<br />
Noord Brabant and the Department of Waterways or Public Works, is possible. If an assessment for the<br />
project EIA activity is required, the project EIA is also prepared using the extensive EIA procedure (see<br />
table below).<br />
Table 4-1. Comparison of Limited and Extensive EIA Procedures<br />
Limited procedure<br />
Extensive procedure<br />
Notification by initiator to authority<br />
Notification by initiator to authority<br />
(at project)<br />
No notification<br />
Public notification<br />
Possible consultation with consultants and involved Always consult with consultants and involved<br />
governmental agencies about scope and detail governmental agencies about scope and detail<br />
No obligation to submissions on the initiative.<br />
Obligation to submission opinions on the initiative<br />
On request:<br />
Advice EIA Committee about scope and detail<br />
On request:<br />
Advice EIA Committee about scope and detail<br />
Possibly advice authority about scope and detail (at If authority ≠ initiator<br />
request of initiator or on own initiative)<br />
Advice authority about scope and detail (at project)<br />
Prepare EIA<br />
Make EIA public<br />
Obligation to review objections to the EIA<br />
At request: assessment advice EIA Committee<br />
Decision including motivation<br />
Publically announce decision<br />
Evaluation<br />
Prepare EIA<br />
Make EIA public<br />
Obligation to review objections to the EIA<br />
Mandatory assessment advice EIA Committee<br />
Determination of plan / decision including<br />
motivation<br />
Publically announce plan / decision<br />
Evaluation<br />
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When both plan and project EIA are required, both EIAs may be combined. If this is the case, the<br />
extensive EIA procedure is followed for the combined EIA.<br />
4.2.13 Summary<br />
Extraction permit<br />
(Mining Act)<br />
Grievance<br />
procedure<br />
Appeal procedure (Council of<br />
State)<br />
All permits are<br />
irrevocable<br />
Spatial zoning procedure<br />
(via NCR)<br />
Extraction plan (Mining Act)<br />
Preparation / EIA<br />
}<br />
All in one permit for<br />
physical aspects<br />
Water Permit<br />
}<br />
Appeal procedure<br />
(Council of State)<br />
Excavation Permit<br />
2 year 34 weeks 32 weeks<br />
Total:<br />
170 weeks<br />
Figure 4-6. Procedures and Permits via NCR<br />
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Preparation / EIA<br />
Spatial zoning procedure<br />
Appeal procedure (Administrative<br />
court)<br />
Last permits are<br />
irrevocable<br />
Extraction permit<br />
(Mining Act)<br />
Grievance<br />
procedure<br />
Appeal procedure (Council of<br />
State)<br />
Extraction plan (Mining<br />
Act)<br />
Appeal procedure<br />
(Council of State)<br />
}<br />
All in one permit for<br />
physical aspects<br />
Water Permit<br />
Appeal procedure (Administrative<br />
court)<br />
Appeal procedure (Administrative<br />
court)<br />
Further appeal<br />
(Council of State)<br />
Further appeal<br />
(Council of State)<br />
Excavation Permit<br />
Appeal procedure<br />
(Council of State)<br />
Total:<br />
2 year 13 weeks<br />
26 weeks<br />
1 year<br />
40 weeks<br />
235 weeks<br />
Figure 4-7. Procedures and Permits without NCR<br />
4.2.14 Natural Resources - Ownership Principle and Land Access<br />
Article 3 of the MA stipulates that natural resources belong to the State, and that the ownership thereof<br />
transfers, once produced, to the license holder. Since hydrocarbons are defined in the MA as a subgroup<br />
of ‘natural resources’, this also includes (shale) oil and gas.<br />
The Mining License provides the license holder (geographical) exclusivity regarding mining activities in<br />
the licensed area (Art. 6). It is important to note that in 2009, an amendment to the MA was agreed to in<br />
Parliament, which provides the Minister the opportunity to reduce the size and/or duration of a license,<br />
if it appears that no actual (‘significant’) activities are being undertaken by the operator within a certain<br />
area. This amendment has been made to stimulate mining activities within a license.<br />
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4.2.14.1 Land access<br />
According to Article 4 of the MA, landowners within a license have to allow all mining activities that take<br />
place deeper than 100 meters below ground level. In case of refusal, a court order might be required.<br />
This can easily take longer than a year.<br />
There are different approaches to achieve an approval for land use with a landowner.<br />
The approach to follow depends on future investment at a site and the approach taken by the E&P<br />
Operator/developer. In general, the operator would prefer to become landowner of sites where wells or<br />
production station(s) will be situated, or if a long duration of activities is foreseen. This includes (certain<br />
rights with respect to) a certain buffer zone around the facilities. However, a rent or lease (sale/saleback)<br />
construction (agreement) may be better suited, in cases where exploratory drilling takes place,<br />
and where duration of activities are expected to be undertaken within a far shorter timeframe.<br />
It is more common to achieve a settlement of Business Rights for the routing of (underground) pipelines,<br />
in accordance with Dutch law (via an annual or ‘one-off’ payment). In all cases, there is an obligation to<br />
compensate the landowner for damage (if any) and the use of the property (ref. article 4, MA).<br />
Settlement of Business Right to use the property;<br />
After constructing a well pad and/or a pipeline, a Settlement of Business Rights should be prepared to<br />
ensure an operator has the right (to drill) on a landowner’s property. This settlement of Business Rights<br />
is a clear and transparent contract between the operator and landowner, which stipulates the juridical<br />
property of the pad, the well, and the pipeline, and practical appointments such as service activities,<br />
repair, access etc. Furthermore, this contract defines the rules for compensation in case of damage,<br />
disputes or any other irregularities. An environmental ’base-line’-survey (‘0’-study) is conducted, and<br />
then added as part of the agreement.<br />
Amicable expropriation of the property;<br />
During the design phase of the project (in particular towards the large scale production phase), a<br />
landowner feasibility study needs to be conducted. This study should provide an overview of<br />
landowners who are willing to cooperate on the roll-out of the infrastructure (access roads, well pads<br />
and pipeline routes). Such an approach should make it possible to acquire a property portfolio via<br />
amicable expropriation. After selecting the most suitable instrument per landowner, the execution<br />
stage follows. This will include all aspects of the expropriation, including negotiation, taxation,<br />
settlement of the contract and entry into the national land registry (‘Kadaster’).<br />
As a final remark on the subject of land access: In case the ‘National Coordination Procedure’ (NCP) is<br />
declared applicable, additional powers to enforce dispossession are assigned to the Minister related to<br />
the use and acquisition of private plots.<br />
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4.3 Comprehensive Water Management Planning<br />
Water management is an essential component of any shale gas development program. This section will<br />
address the various components of a water management plan.<br />
Figure 4-8. Fresh water impoundment used to store water for fracking<br />
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4.3.1 Potential Water Sources<br />
A review of potentially available water sources was carried out in the area surrounding the proposed<br />
well field development. The following is a summary of findings.<br />
This section covers the issues that relate to the quality and quantity of water that could be used for<br />
fracking operations in the area defined as Zone 8C in the province of Noord-Brabant. Different water<br />
sources were considered for the overall availability of water, subject to necessary approvals and laws.<br />
· Drinking water<br />
· Ground water (fresh and brackish)<br />
· Surface water<br />
· Effluent from waste water treatment plants (WWTP)<br />
4.3.1.1 Drinking Water<br />
• The drinking water supply grid in the Netherlands is very well developed. (> 99 % of every<br />
household has a drinking water connection).<br />
• According to Dutch standards, water quality is far higher than the World Health Organization<br />
(WHO) standard (Cl- < 100 mg/l, pH 7,8 – 8,3 and Ca< 80 mg/l).<br />
• In the Netherlands, the use any form of chlorine to disinfect drinking water, including surface<br />
water is prohibited. However, disinfection is not necessary because the drinking water (source<br />
groundwater in the province of Noord Brabant) is free of pathogens and viruses. In addition,<br />
with leakage of less than 3 – 4 %, the drinking water distribution grid is always under pressure.<br />
Drinking water companies in the Netherlands have an average ‘non-delivery’ record of less than<br />
15 minutes per year.<br />
• “All in price” per m 3 needs to be verified (pressure at least 1 bar, most of the time at least 2 bar).<br />
Discounts may be available for industrial usage.<br />
• In the province of North Brabant, the drinking water supply is provided by Brabant Water, which<br />
is wholly owned by the public.<br />
• The capacity of water available depends on the location, in relation to the rest of the capacity in<br />
the drinking water distribution network. Capacity is also dependent on whether or not a<br />
drinking water pump station(s) in the vicinity has residual capacity.<br />
• Actual water availability depends on the time of day and season. Drinking water will be limited<br />
or unavailable between 6:00am and 9:00am, and between 5:00pm and 9:00pm. At night, water<br />
buffers are filled to meet the water demands of the day. In general, water demand is higher<br />
during summer and lower in winter. Although maintenance activities are planned during these<br />
periods of low demand, the highest available water capacity will be during the winter months.<br />
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In Table 4-2. Technical maximum capacity of different drinking water pipes based on their size the<br />
network distributing drinking water in Zone 8C includes the possible residual capacity of some drinking<br />
water pumping stations (note residual is per year and needs some translation). This information is also<br />
incorporated in the GIS model.<br />
Although residual capacity is available according to the permit, the situation might be that the particular<br />
water treatment plant (WTP) was not constructed to its full permitting capacity. The technical<br />
maximum for each of the network pipes depends on the water flow rate. Table 4-2 presents the total<br />
capacity based on flow rates of 1 m/s (realistic) and 2 m/s (maximum). Note the data presented does<br />
not represent the actual capacities that can be withdrawn from the drinking water network. The actual<br />
through-put will depend upon water resistance within the pipes and the required remaining pressure in<br />
the network. Therefore all data for each pumping station will need to be verified with Brabant Water.<br />
Table 4-2. Technical maximum capacity of different drinking water pipes based on their size<br />
Flow rate: 1 m/s<br />
Flow rate: 2 m/s<br />
Pipe diameter (mm) Capacity (m 3 /h) Pipe diameter (mm) Capacity (m 3 /h)<br />
100 - 200 28 - 113 100 - 200 57 – 226<br />
201 – 300 113 – 254 201 – 300 226 – 509<br />
301 – 400 254 – 452 301 – 400 509 – 905<br />
401 - 500 452 – 707 401 - 500 905 – 1414<br />
> 501 > 707 > 501 > 1414<br />
The map below shows the existing water pipelines in the area of our “Base Case” site. It appears the<br />
water infrastructure near the location is in place. The additional water pipeline infrastructure required<br />
would be minimal.<br />
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Figure 4-9. Water supply distribution pipelines in the area of the Base Case site<br />
4.3.1.2 Groundwater (Fresh)<br />
The policy for the management of ground water storage in Noord-Brabant is defined in the Provincial<br />
Water Plan 2010-2015. The policy is to reserve clean deep groundwater for public water supply, and<br />
protect it against over-exploitation. Deploying targeted policies for different user groups of<br />
groundwater abstraction have been successful. The total amount of groundwater abstracted by drinking<br />
and industrial water suppliers has stabilized during the past 20 years.<br />
Elements of the province’s general policy are defined in paragraph 11.2 of the mentioned ‘Provincial<br />
Water Plan’.<br />
· Groundwater is used for human consumption (public water supply and industrial applications).<br />
Alternatives are needed for other low-value applications.<br />
· The goal is to preserve the quality of groundwater in order to guarantee the long term supply of<br />
public water. The starting point is to withdraw groundwater no deeper than 80 meters.<br />
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· No new permits for deep extractions.<br />
· No increase of the total groundwater abstraction. With reductions elsewhere, more industrial<br />
use is possible.<br />
4.3.1.3 Groundwater (Brackish)<br />
Currently the use of brackish groundwater, which is free of manmade pollutants, is being evaluated and<br />
some pilot projects are being carried out, including one by Brabant Water. Extracting brackish<br />
groundwater could improve the supply of fresh groundwater (lowering the brackish groundwater<br />
table).. Applications are sometimes submitted to the Mijnwet (the same law applied to shale gas<br />
exploration) when extraction takes place below 500 meters. Developing frack fluid formulations that<br />
can utilize water with higher chloride levels would decrease the use of fresh water<br />
Figure 4-10. Representation of water zones<br />
4.3.1.4 Surface water<br />
The general policy for the management of surface water is also defined in the Provincial Water Plan<br />
2010 – 2015. Water should contribute to a healthy environment for humans, animals and plants, where<br />
we can live safely, with space for economic, social and environmental developments. In order to achieve<br />
this goal, these nine different functions of surface water have been defined:<br />
1. Water nature<br />
2. Interwoven streams<br />
3. Ecological corridors along streams<br />
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4. Shipping<br />
5. Bathing<br />
6. Water for the National Ecological Network (NEN)<br />
7. Water feature for the ‘green-blue jacket’<br />
8. Water for rural areas<br />
9. Water in urban areas<br />
Figure 4-11. Surface water includes rivers and streams<br />
An entire chapter (10) in the Provincial Water Plan is dedicated to water quantity. When there is not<br />
enough water for agricultural or industrial use the following preference order is used:<br />
1. Diminish the water demand<br />
2. Better use of water within the region<br />
3. Supply of surface water outside the region<br />
4. Groundwater withdrawal<br />
Withdrawal of surface water requires a permit from the water board in conformance with the<br />
regulations in the ‘KEUR’ (Act of Water Boards). The water board will judge the permit request in<br />
relation to the functions referenced above as well as the amount of water available.<br />
The possibility for withdrawal and the available capacity of surface waters depend upon:<br />
· The potential for drought conditions, especially in summer months<br />
· Existing industrial user withdrawals from a particular surface water body<br />
· Competition for withdrawal with nature and agriculture<br />
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In the province of Noord Brabant, three Water Boards are responsible for daily operations regarding<br />
surface water quality and quantity. These are:<br />
• Water Board Aa en Maas (Eastern sector)<br />
• Water Board de Dommel (Middle sector)<br />
• Water Board Brabantse Delta (Western sector)<br />
Figure 4-12. Surface water in Noord-Brabant, including areas with water supply areas and discharge sewage water treatment<br />
installations. The pink colored circles indicate the capacity (Mm3/yr) of water discharged from each of these facilities<br />
The following areas in the Noord-Brabant province are less suitable:<br />
• Streams delivering water to vulnerable nature areas (large parts of Waterschap De Dommel,<br />
located in the middle sector of the province)<br />
• Areas with a natural water supply shortage. For example large parts of Waterschap Aa en Maas,<br />
and the northern part of Noord-Brabant (see Figure 4-12. Surface water in Noord-Brabant,<br />
including areas with water supply areas and discharge sewage water treatment installations.<br />
The pink colored circles indicate the capacity (Mm3/yr) of water discharged from each of these<br />
facilities). Intake from the Meuse Maas) River into the canals (eg Zuid-Willemsvaart) provides<br />
extra water to these regions. The intake arrangements are made between the Rijkswaterstaat<br />
and the Peel en Maasvallei Water Board. Additional withdrawal of water in this area is therefore<br />
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a delicate subject.<br />
• Discharge rates are low in the upper parts of streams located in the south of Noord-Brabant.<br />
The following areas in Noord-Brabant are more suitable:<br />
• Areas close to the Meuse River (northern border of the Province of North Brabant.)<br />
• Those streams with high discharges (eg. De Aa, De Dommel, Esschestroom, de Mark-Vliet)<br />
• Canals such as the Zuid-Willemsvaart en Wilhelminakanaal<br />
• Those streams with continuous discharge of sewage water treatment installations<br />
Withdrawals from the De Dommelstream, the Zuid-Willemsvaart and Wilhelminakanaal canals can<br />
require a permit.<br />
As a result of strict enforcement regulations, the quality of the surface water is rather good. For<br />
example, the effluent of waste water treatment plants in most cases has a low concentration of<br />
phosphate (P) and Nitrogen (N), because additional treatment steps are taken to prevent algae bloom<br />
and other ecological purposes.<br />
Surface waters could be a source water if:<br />
• The streams have sufficient capacity and low ecological value. However, many surface waters<br />
are considered ‘no-go’ areas.<br />
• A permit for withdrawal of surface water is not a year-long guarantee. During droughts water<br />
boards are allowed to enforce a zero intake of surface water. Quality of the surface water is<br />
rather good, but not free of pathogens etc. This is due to discharge from waste water treatment<br />
plants. Detailed information is not yet available. The quality will be at least as good as the<br />
effluent of the WWTP.<br />
The costs for surface water are determined by permit fees.<br />
4.3.2 Surface Water Withdrawal Restrictions<br />
During the summer of 2011, several water boards placed water withdrawal restrictions due to drought<br />
conditions:<br />
· On 20 May, the Aa and Maas Water Board announced a ban on intake from surface water for<br />
the entire Raam district.<br />
· On 24 May, the De Dommel Water Board announced a ban on intake from surface water for<br />
almost all rivers and streams. Exceptions were granted for the Zandleij (with discharge from<br />
sewage water treatment, upper steam of De Dommel and Wilhelminakalnaal<br />
· On 19 May, the Brabantse Delta Water Board announced a ban on intake from the following<br />
areas:<br />
o Bijloop, de Oude Bijloop, de Turfvaart (nr 9)<br />
o de Kibbelvaart, Lokkervaart, Bosloop (nr 11)<br />
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o de Zoom and de Bleekloop (nr 15)<br />
· On 9 June, the ban was extended to the area de WouwseGronden (nr 13)<br />
Prior to making a long-term investment into the infrastructure required to use surface water as a water<br />
source for the development of shale gas, the potential limitations on reliable water withdrawals<br />
warrants further investigation.<br />
Figure 4-13. Area of the De Dommel Water Board, including the location of WWTP facilities: 1) Boxtel WWTP, 5) Tilburg<br />
WWTP, 6) Eindhoven WWTP, 7) Hapert WWTP, 9) Biest-Houtakker WWTP, 10) Haaren WWTP, 11) Sint-Oedenrode WWTP<br />
The capacities of each of these facilities are shown in Table 4-3.<br />
4.3.3 Wastewater Treatment Plant Effluent<br />
Water Boards are also responsible for management and operation of Waste Water Treatment Plants<br />
(WWTP). The WWTPs are summarized in Table 4-3, which includes quality figures about the maximum<br />
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concentration of Chemical Oxygen Demand (COD), Biological Oxygen Demand (BOD), N-Total, P-Total<br />
and suspended solids. The concentration of E-Coli per WWTP is unknown and would need to verified,<br />
but probably ranges from 5,000 to 400,000 units per ml.<br />
Effluent from a WWTP with pipelines being used to transport the water could be a possible provider of<br />
source water for shale gas development in the Netherlands. In most cases the location of the WWTP is<br />
not the same as the discharge point and the exact location of all discharge points has not been<br />
determined.<br />
Use of WWT effluent could be limited during the summer as the effluent may be the only re-charge<br />
source of some surface waters. The potential to use the effluent for fracking operations would be<br />
temporarily restricted during drought conditions.<br />
Information about the available capacities of WWTPs in Zone 8C can be found in Table 4-3. Subject to<br />
verification with the various water boards, this water could be used if the required capacity is below<br />
20% of the dry weather discharge requirements.<br />
Figure 4-14. Waste water treatment plant<br />
The cost of water is determined by permit fees and possible price per m3. The prices for WWTP effluent<br />
water would be significantly less than the price of drinking water. It is also important to note that this<br />
effluent water may require additional pre-treatment with biocides prior to being suitable for use in<br />
fracking operations.<br />
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Table 4-3. Information about WWTP<br />
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4.3.4 Summary of Availability and Costs of Water<br />
In zone 8C the drinking water, surface water and WWTP effluent sources present capacities that would<br />
cover required volumes of water. However, it is the question to what extent each of these sources will<br />
be actually available. Only after checking with Brabant Water (drinking water) and Water Board De<br />
Dommel (surface water and WWTP effluent) the actual capacities will be known. These numbers are<br />
required to be able:<br />
1. To quantify the total available water capacity in time.<br />
2. To determine the flexibility in covering the high and low fracking water demands in time per<br />
location in the area.<br />
Although it is expected that the quality of the surface water and WWTP effluent will satisfy the quality<br />
for fracking water, several water quality parameters such calcium, magnesium, alkalinity, are unknown.<br />
These data will have to be collected.<br />
Prices for surface water and WWTP effluent are to be determined by the Water Board and will be<br />
determined based on the permit and the price per m3. These are not known to date. However, it is<br />
expected that the prices of both surface water and WWTP effluent will be well below the price of<br />
drinking water.<br />
4.3.5 Water Chemistry<br />
An understanding of the ambient ground and surface water chemistry composition in the vicinity of the<br />
potential drill sites as well as the extent, depth and connections of the local fresh water aquifers to the<br />
surface water discharge points are essential components in the development of a Comprehensive Water<br />
Management Plan for any drilling project. There are several stages of a development project in which<br />
additional information is required.<br />
For any drilling project Water Management Plans must not only satisfy regulatory requirements, but<br />
also prepare the operator to address public perception issues. Prior to drilling, the consideration of<br />
depth and extent of the fresh water aquifer always influences the surface casing design, but the predrilling<br />
planning should also consider background aquifer and surface water composition as part of the<br />
site preparation costs.<br />
Drilling projects are scrutinized for the potential to contaminate ground and surface water supplies;<br />
therefore, it is important to establish the background conditions in the hydrologic system for<br />
comparison. A comprehensive water management approach can confirm correct and safe operations.<br />
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Figure 4-15. Geochemical data analysis<br />
4.3.6 Regional Data<br />
The hydrochemical characterization should consider the following water occurrences, locations,<br />
hydrologic relevance to the drill site and chemical compositions. Much of the data needed resides in<br />
institutional databases maintained by federal or regional agencies or geological society documents.<br />
• All surface water bodies (lakes, reservoirs, rivers and streams)<br />
• Existing groundwater wells (public and private)<br />
• Water disposal wells<br />
• Industrial water users and their discharge permits<br />
• Identified contaminated sites and their impact upon the aquifers<br />
• Locations of other rig supply wells (current and historic)<br />
• Active or abandoned reserve pits<br />
• Existing chemical and isotopic composition or dissolved hydrocarbon gases, inorganic dissolved<br />
constituents, detected organic constituents, and analysis of components that could be used as<br />
frac fluid markers<br />
Having this baseline of data and maps, the operator will know what if any additional regional data are<br />
needed to the drill site specific data collection that is done prior to drilling.<br />
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4.3.7 Drill Site Data<br />
A drill site specific sampling program should be designed to assess the existing status of surface and<br />
ground water within a specific distance from the drill site. Usually, the sampling of two to three wells<br />
within 0.4 to 0.8 kilometers is sufficient; preferably the samples would be collected in different<br />
directions. Analyses should include those required by governing regulations, but also need to include<br />
component and isotopic identification of dissolved hydrocarbon gases, dissolved inorganics and frac<br />
fluid markers from samples collected in a timely manner from domestic or other wells near the drill site.<br />
If there are any water wells that do not have reliable analytical data, it is recommended that samples be<br />
collected and analyzed to be included in the baseline database. This drill site specific sampling must be<br />
done both pre and post-frac operations.<br />
4.3.8 Aquifer Definition<br />
The connection between the regional data, the sampled wells and the drill site is most importantly<br />
defined by the aquifer continuity. Current aquifer modeling capabilities allow for the rapid construction<br />
of visualization models of the aquifers, wells, surface features, and boundaries, from which cross<br />
sections can be quickly constructed. This gives the operator the ability to assure that the data are<br />
related to the drill site, provides an interpretive tool, and serves as a method to quickly and effectively<br />
describe the hydrologic circumstances to management or regulatory agencies.<br />
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Figure 4-16. Aquifer modeling<br />
The information required to effectively create the 3D geologic model of the aquifers is typically<br />
obtainable by reviewing several sources of publicly available information such as drilling logs from water<br />
well drilling contractors, previous studies performed by governmental agencies and water boards.<br />
4.3.9 Long term<br />
The summary of the hydrogeochemical program has its contribution during ongoing operations, but also<br />
provides the operator with a database and proprietary set of reports that serve as a bench mark for any<br />
future needed work. It would also be advantageous for continuity to use a single firm to design the<br />
hydrogeochemical program, manage the sampling and analysis and perform the modeling.<br />
4.3.10 Water Treatment<br />
Shale gas well development activity generally requires the use of considerable quantities of water,<br />
particularly for hydraulic fracturing.<br />
Effective treatment management of shale gas flowback and produced water requires some level of<br />
knowledge of the characteristics of the water. Flowback and produced water contain salts, metals and<br />
organic compounds from the formation and the compounds that are introduced as additives to the<br />
influent hydraulic fracture (frac) stream. Discussions between Operators and regulatory agencies in gas<br />
shale plays have led to the need for an information base on the composition and properties of flowback<br />
and produced water.<br />
During a typical hydraulic fracture well completion, water is pumped downhole while additives such as<br />
friction reducers and various grades of sand are introduced to ensure a successful fracture and<br />
completion of the shale. Following hydraulic fracturing, a fraction of the water (approximately 15% to<br />
25%) that was injected is collected over several days resulting in the collection of a “flowback” water<br />
stream that contains salts, oils and greases, and soluble organics (volatile and semi-volatile) that<br />
accumulated in the water downhole. Flowback water also contains low concentrations of additives that<br />
are introduced during the frac job which normally include friction reducing polymers, corrosion<br />
inhibitors, scale inhibitors, and biocides. These additives facilitate the hydraulic fracturing process and<br />
prevent problems with well operation. Listed below are tables which show the chemical composition<br />
for major chemicals in flowback and produced water in the Marcellus shale gas play in the United States.<br />
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Table 4-4 Flowback Water Chemical Composition – usually collected from Day 1 through 30 after a hydraulic fracture event.<br />
Concentration (mg/l)<br />
Marcellus - Pennsylvania<br />
TDS 90,000 -120,000<br />
TSS 100 --210<br />
Fe 50 - 125<br />
Mg 125 - 200<br />
Ba 500 - 2,000<br />
Sr 400 - 1,020<br />
Cl 54,000 - 75,000<br />
Sulfates 4 - 110<br />
Specific Gravity 1.1<br />
pH 6.5 - 7.2<br />
Table 4-5. Produced Water Chemical Composition<br />
Concentration (mg/l) Marcellus - Pennsylvania<br />
TDS 150,000 - 300,000<br />
TSS 150 - 400<br />
Fe 70 - 300<br />
Mg 515 - 1,710<br />
Ba 500 - 2,030<br />
Sr 400 - 2,520<br />
Cl 105,000 - 210,000<br />
Sulfates 10 - 250<br />
Specific Gravity 1.1<br />
pH 6.5 - 7.2<br />
As with conventional produced water, shale gas flowback water cations are dominated by sodium and<br />
calcium; the main anion is chloride. Metals normally seen in conventional produced waters, such as<br />
iron, calcium, magnesium, and boron, are at levels in flowback waters that are well within known ranges<br />
for normal produced waters. Heavy metals that are of concern in urban industrial wastewaters and<br />
POTW sludges --- such as chromium, copper, nickel, zinc, cadmium, lead, arsenic and mercury --- are at<br />
very low levels.<br />
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Figure 4-17. Fresh water knock-out separator and produced water storage tanks<br />
Among flowback and produced water volatile organic constituents (VOCs), approximately 96% of the<br />
constituent determinations were at non-detectable levels and less than 0.5% were detected above 1<br />
mg/l. VOCs that are measurable are those that are normally found in conventional produced waters.<br />
Regarding semi-volatile organic constituents (SVOCs), more than 98% of the determinations are at nondetectable<br />
levels and less than 0.03% of all the constituents were above 1 mg/l; and several constituents<br />
were at low trace levels (information provided by Marcellus Shale Coalition).<br />
Naturally occurring radioactive materials (NORM), such as radium, are mobilized from the oil or gas<br />
formations because of the solubility in the presence of chloride ions which are present in the water<br />
within formation. Low solubility of the sulfate species is a factor in re-deposition of NORM. The low<br />
solubility precipitates scale containing high concentrations of radium in the form of barium sulfate or<br />
barite under the effects of varying temperature and pressure during the production operations.<br />
4.3.11 Treatment Technologies and Approaches<br />
Operators in the United States shale gas plays are recycling almost all of the flowback and produced<br />
water generated during well completion operations by blending it with fresh water and reusing the<br />
combined water as hydraulic fracture water in another well. Operators are taking the following<br />
approach when recycling and disposing of flowback and produced water:<br />
• Blend flowback and produced water with fresh water to reduce chemical concentration<br />
levels.<br />
• Add friction reducers, anti scalants and biocides for hydraulic fracture water makeup<br />
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• Utilizing mobile water treatment technologies to remove or reduce certain constituents that<br />
cause scaling and fouling with well completions.<br />
• Transport flowback water to permitted central treatment facilities for recycle or treatment<br />
prior to effluent discharge to permitted surface water sources.<br />
• Transport flow back and produce water for permitted brine well disposal (discussed in<br />
section below).<br />
The level of flowback/produced water treatment varies depending on the required flowback and<br />
produced water quality, fresh water quality and the proportion of each in the hydraulic fracture water<br />
blend. Operators are taking a stepped approach when they treat flowback and produced water for TSS,<br />
bacteria, Fe, Mg, Sr, Ba and TDS removal. Each Operator has their own specification for makeup of<br />
hydraulic fracture fluid. Most want to remove scaling chemicals which impact well production and<br />
equipment/piping maintenance.<br />
Figure 4-18. Reverse osmosis (RO) water treatment equipment<br />
Various flowback and produced water treatment technologies are available to the oil and gas industry.<br />
There are many treatment suppliers offering their technology treating flowback and produced water.<br />
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The treatment options can differ in their inherent capability, setup facility requirements, capital costs,<br />
operating expense, and waste (sludge and brine concentrate) streams; all these factors can be important<br />
to the gas Operator.<br />
Some treatment technologies may have large space requirements that may not be possible in some gas<br />
well installations. Some technologies may be commercially available as small, skid-mounted mobile easy<br />
to move around units that easily can be relocated as production conditions change. Equipment costs<br />
are important in some installations where a large amount of dedicated equipment must be purchased<br />
for managing flowback and produced water.<br />
This section below describes various produced water technologies along with examples of how they are<br />
being implemented in the field.<br />
Bag Filtration – Bag filters are currently being used by Operators for removal of TSS from flowback and<br />
produced water before recycle. Spent filtrations bags are being disposed of at permitted landfills.<br />
Figure 4-19. Removal of total suspended solids (TSS)<br />
Physical/Chemical Separation – Some Operators are adding chemical reagents to react with dissolved<br />
heavy metals (Fe and Mg) to form insoluble hydroxide-based precipitates that can be removed with<br />
other suspended solids from the wastewater stream using clarification and/or filtration. Also the<br />
addition of other chemical reagents to react with barium and strontium to form sulfate-based<br />
precipitates that can be removed with other suspended solids from the wastewater stream using<br />
clarification and/or filtration.<br />
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Figure 4-20. Physical / Chemical separation equipment<br />
Lamella Gravity Clarification/Flotation – Clarification is one of the most popular and proven processes<br />
used by Operators used to treat” contaminants, mainly TSS, for removal in flowback and produced<br />
water. While some systems settle solids out of the liquid stream by gravity, others use flotation<br />
methods to float the solids to the top to be skimmed away.<br />
Figure 4-21. Representation of on-site water treatment equipment<br />
Activated Carbon Filtration – Operators are currently using activated carbon filters to remove bacteria<br />
from flowback and produced water before the treated water is blended with fresh water for recycling.<br />
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Figure 4-22. Activated carbon filtration equipment<br />
Advanced Oxidation - This treatment approach utilized by some Operators may also include chemical<br />
oxidation such as ozone treatment to reduce dissolved hydrocarbons from natural sources and residual<br />
hydraulic water conditioning reagents.<br />
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Figure 4-23. Mobile advanced oxidation trailer<br />
Electro coagulation – This process destabilizes and coagulates the suspended colloidal matter in<br />
flowback and produced water. When contaminated water passes through the electrocoagulation cells,<br />
the anodic process releases positively charged ions, which bind onto the negatively charged colloidal<br />
particles in water resulting in coagulation. At the same time, gas bubbles produced at the cathode,<br />
attach to the coagulated matter causing it to float to the surface where it is removed by a surface<br />
skimmer. Heavier coagulants sink to the bottom, leaving clear water, suitable for use in drilling and<br />
production operations.<br />
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Figure 4-24. Skid-mounted electro coagulation equipment<br />
Sludge Dewatering – Plate and frame filter presses are currently being used by some Operators for<br />
dewatering of sludge from clarification and sludge thickening treatment steps. The sludge cake material<br />
is being disposed at permitted landfills and tested for NORM detection levels.<br />
Figure 4-25. Filter press equipment used to de-water sludge<br />
Reverse Osmosis – This process of removing salts (TDS removal) from flow backwater uses a membrane.<br />
With reverse osmosis, the product water passes through a fine membrane that the salts are unable to<br />
pass through, while the salt waste (brine) is removed and disposed. This process differs from<br />
electrodialysis, where the salts are extracted from the feedwater by using a membrane with an electrical<br />
current to separate the ions. The positive ions go through one membrane, while the negative ions flow<br />
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through a different membrane, leaving the end product of freshwater. This treatment is only capable of<br />
treating water containing TDS up to 30,000 to 40,000 mg/l.<br />
Figure 4-26. RO filter racks<br />
Mechanical Evaporation - Due to the relatively high TDS concentrations in flowback and produced water<br />
in United States shale gas plays, the only feasible demineralization option for Operators, is mechanical<br />
evaporation, which uses pressure and high temperature to remove water vapor from the wastewater<br />
stream. The recovered distillate, which is typically 50 to 65% of the influent stream, is of very high<br />
quality that can be reused as fresh makeup water. The TDS present in the wastewater is collected in a<br />
concentrated brine reject stream, which can be converted to salt cake in a crystallization process or<br />
disposed by deep well injection.<br />
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Figure 4-27. Trailer mounted mechanical evaporation equipment<br />
Crystallization – Brine concentrate can be further processed in the crystallization process and yield 98%<br />
recovery of water distillate. A residual salt (mostly sodium chloride and calcium chloride) is generated<br />
from this process which can be reused or disposed of at a permitted landfill.<br />
Figure 4-28. Crystallization towers<br />
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Some flowback and produced water treatment suppliers in US shale gas plays are progressing into<br />
developing modular fixed-based treatment facilities that can be assembled within well fields, and when<br />
the well fields are completed, the treatment facilities are disassembled and relocated to new well fields.<br />
This arrangement will result in lower flowback and produced water transportation costs and reduce<br />
impacts to local roads.<br />
Another related design approach being developed by Operators in the US is to lay out a “hub and spoke”<br />
gas and water pipeline network within a well field where natural gas is conveyed to a centralized<br />
compressor station complex and then piped to the transmission pipeline. Where the water pipelines<br />
run parallel to the gas pipelines, flowback water is pumped to centralized impoundments, treated,<br />
blended with fresh water, and returned to the well pads. The gas and water pipelines are located in the<br />
same trench to reduce construction costs while impacts are significantly reduced. This results in<br />
significant cost savings for the Operators charged for road maintenance and repair costs by local<br />
government.<br />
Table 4-6. Treatment Technology<br />
Treatment Technology<br />
Bag Filtration<br />
Physical/Chemical Separation<br />
Activated Carbon Filtration<br />
Advanced Oxidation<br />
Electrocoagulation<br />
Sludge Dewatering<br />
Reverse Osmosis<br />
Evaporation<br />
Crystallization<br />
Removes<br />
TSS<br />
TSS, metals, Ba, Sr<br />
Bacteria, TSS<br />
Metals<br />
Metals and some TDS<br />
Dewaters sludge<br />
TSS (lower concentration)<br />
Removes TSS, metals, TDS and bacteria<br />
Removes TDS from brine concentrate<br />
4.3.12 Conclusion<br />
Flowback and produced water treatment technologies convert poor quality produced water into good<br />
quality water by removing contaminants and impurities. For Operators that are considering large scale<br />
of flowback and produced water treatment facilities, the amount of waste volume needs to be<br />
considered when planning for these water treatment facilities and/or mobile treatment systems. The<br />
selection of a flowback and produced water treatment and recycle system depends on several factors<br />
such as the Operator’s drilling plan/schedule, and hydraulic water fracture chemistry requirements.<br />
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4.3.13 Beneficial Re-use<br />
We considered that the produced water from the shale gas development activities could be put to<br />
some beneficial re-use. This is an area of considerable research<br />
The produced waters derived during the extraction process contain various compositions of naturally<br />
occurring formation and injected chemicals and must be analyzed to determine their chemical<br />
composition. Typical produced waters will contain traces of hydrocarbons, dissolved organics, organic<br />
acids, phenols, production chemicals and inorganic compounds such as varying amounts of chlorides,<br />
sulfides, bicarbonates, ammonia phenolic compounds, metals and suspended solids.<br />
In order to consider the re-use of these waters, certain basic treatment technologies must be employed<br />
in order to reduce their chemical composition down to acceptable levels.<br />
There are a number of potentially viable options for re-use of these produced waters including:<br />
• Oil & gas operations<br />
o Water floods for well stimulation<br />
• Agricultural operations<br />
o Livestock watering<br />
o Wildlife watering and habitat<br />
o Irrigation of crops<br />
• Recreational waters<br />
o Fishing<br />
o Water sports<br />
o Constructed wetlands<br />
• Drinking water aquifer restoration<br />
• Industrial uses<br />
o Process waters<br />
o Cooling towers<br />
o Power generation<br />
• Dust control<br />
• Fire control<br />
This concept of beneficial re-use of these produced waters will require further thorough research.<br />
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Figure 4-29. Treated waters can be re-used for agricultural irrigation<br />
4.3.14 Disposal Options<br />
Through the implementation of the Water framework Directive (WFD), the Water Act (Waterwet)<br />
regulation has changed since 2009. In addition to materials and/or emissions, the permit must pay<br />
attention to other environmental impacts, including ecology. As elaborated in the water management<br />
plans, the criteria and principles of the WFD, should be used. An assessment framework has been<br />
developed to help the local Water BoardsThe effluent need to meet the requirements of very low<br />
concentrations regarding metals, biocides, and salt.<br />
The possibilities for disposal of produced waters from drilling operations are:<br />
• Waste water treatment plant (WWTP), transported directly or indirectly through a sewer pipe<br />
• Into surface waters<br />
• Injection into an aquifer<br />
• Injection into an depleted oil or gas well<br />
• Transport by truck to a dedicated treatment facility (Waste Terminal Moerduijk (ATM) or Waste<br />
Treatment Rijnmond (AVR))<br />
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Legislation in the Netherlands concerning the quality of discharge water is strict with the levels of<br />
chemicals, biocides, metals and salt being the primary areas of concern.<br />
Actual cubic meter prices depend on:<br />
· Capacity,<br />
· Quality,<br />
· Distance,<br />
· And the period of water discharge.<br />
4.3.14.1 WWTP<br />
All production and waste water must be pre-treated to remove biocides and metals and reduce salt<br />
levels prior to entering the WWTP system to ensure these waters do not impact the treatment<br />
processes which are primarily biological. Produced and flowback water must be carried via a dedicated<br />
pipeline.<br />
Figure 4-30. WWTPs are limited in their ability to process frac waters<br />
While the WWTP process does not remove the salt, if the treated water still has a high salt<br />
concentration, additional treatment will be necessary. The maximum allowable concentration of salt is<br />
within a 150 to 500 mg/l range, and is dependent upon where the water will be discharged.<br />
4.3.14.2 Surface water<br />
Discharge to surface water is only possible if the effluent meets the very tight maximum allowable<br />
concentrations for metals, P, N, COD, BOD etc. The same maximum allowable concentrations are<br />
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applicable in the case of direct discharge to surface water. The maximum allowable concentration of<br />
salt is also within the range of 150 to 500 mg/l, and also dependent upon where the water will be<br />
discharged.<br />
Operator needs to obtain a license to discharge surface water, which will require the water treated to<br />
near drinking water quality.<br />
4.3.14.3 Re-injection of Water<br />
One of the most common disposal methods is the re-injection of these waters back into geological<br />
formations. There are a variety of considerations which must be taken into account prior to re-injection.<br />
Geological formations must be evaluated to determine injection rates, in order to ascertain whether reinjecting<br />
the water is economically and ecologically viable.<br />
Geological conditions and formations must be evaluated within the proximity of the drilling operations<br />
in order to determine whether any potential salt caverns or depleted reservoirs are present, which can<br />
be used to store these waters effectively.<br />
Figure 4-31. Diagram of Injection Well<br />
4.3.14.4 Injection into an aquifer<br />
The legislation to infiltrate water is very stringent. In some cases, the maximum allowable<br />
concentrations are more stringent than for drinking water. In addition, local policies have been<br />
developed to preserve precious groundwater, as described in the Grondwaterwet / Infiltratiebesluit<br />
(Groundwater legislation).<br />
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4.3.14.5 Injection into a Depleted Oil / Gas Well<br />
In the Netherlands, water injection into depleted gas reservoirs is mainly performed by Dutch Oil<br />
Company (NAM). Injection first began in 1972 and since 1991 many studies have been conducted<br />
including LCA’s (Life Cycle Assessments) and EIA. Water injection into depleted gas reservoirs, both on<br />
and offshore is allowed. With respect to the legal framework, offshore injection is slightly different to<br />
injection onshore. Current legislation is based on conventional oil and gas production, including<br />
regularly used types of chemical additives.<br />
Unconventional gas production (e.g. shale gas) differs significantly in terms of type and concentrations<br />
of additives which becomes an important issue since an injection permit requires substantial and<br />
credible evidence that the (structural) integrity of the geological formation is not compromised.<br />
Currently, the Dutch legal framework for underground water injection consists of the following<br />
components.<br />
4.3.14.5.1 Mining aspects<br />
Mining Act, Mining Decree and Mining Regulation (eg. application for the use of chemical additives, is<br />
regulated by paragraph 9.2 ‘Use and discharge of chemicals’ of the Mining regulation).<br />
4.3.14.5.2 Environmental Aspects<br />
EU Directives<br />
· EU Directive on industrial emissions (integrated pollution prevention and control; 2010/75/EU):<br />
focuses on Best Available Techniques (BAT) and relevance in case of underground storage of<br />
hazardous waste with a total capacity exceeding 50 tonnes.<br />
· EU Directive on waste (2008/98/EU): Definition of ‘Disposal operation D3: Deep injection (eg.<br />
injection of pumpable discards into wells, salt domes, or naturally occurring repositories, etc.)’.<br />
· National Waste Management Plan.<br />
· In the Netherlands, the treatment of waste is regulated by the National Waste Management<br />
Plan (NWMP), which is part of the Environmental Management Act. An updated version of the<br />
NWMP was published for the period 2009 – 2021 and Chapter 21.17 of this regulation addresses<br />
onshore water injection. The NWMP is based on the principle that no substances can be<br />
injected, other than substances directly coming from a geological formation. Other relevant<br />
aspects are:<br />
· The European list of waste materials (Eural) is used to identify the stream of water as hazardous<br />
or non-hazardous. In case of conventional gas production, the injection stream is classified as<br />
non-hazardous.<br />
· Water injection protocol – this protocol provides guidelines to assess the impact of water<br />
injection. The terms of the NWMP are met by applying this protocol.<br />
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· EIA: depending on water quality and quantity, an EIA-procedure is required. The terms and<br />
conditions have been altered recently, resulting in a discussion about whether or not all new<br />
water injection initiatives require a full EIA procedure.<br />
The NWMP is less relevant in the case of offshore injection, although the OSPAR Convention, London<br />
Protocol, and national studies by the Commission of Integral Water management (CIW), have to be<br />
taken into account. Furthermore, several studies which make a comparison between water injection<br />
and a purification process based on costs, environmental impact (LCA), operational risks, and long-term<br />
risks, are available.<br />
4.3.14.6 Transport by Truck to a Dedicated Treatment Facility<br />
Some dedicated treatment facilities are present in the Netherlands. These are the ATM in Moerdijk and<br />
AVR near Rotterdam. If the effluent is ‘transported’ by truck, the main issue will be the number of truck<br />
movements (cost and environmental impact). Therefore the volume of water to be discharged has to be<br />
reduced. Depending of the volume of water, some kind of treatment is necessary. If it is of good<br />
quality, the filtrate can be reused and discharged into the sewerage system, assuming all metals,<br />
biocides, salt etc. are concentrated in the brine.<br />
Figure 4-32. Truck hauling produced water to an off-site disposal facility<br />
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4.3.15 Conclusion<br />
Further recommendations on water disposal options can be made once field development plan is drawn<br />
up. This plan should confirm the number of wells to be drilled, contain a drilling schedule, plus further<br />
information about water chemistry, volumes of flowback, and produced water.<br />
4.4 General Environmental and HSE Management<br />
4.4.1 General Environmental - Air Quality<br />
The impact of emissions on local air quality is regulated by the Environmental Management Act (Dutch:<br />
“Wet Milieubeheer”). Chapter 5 of this act deals with air quality and facilitates a so called ‘flexible link’<br />
between spatial development regulation and air quality regulation by programs to improve air quality in<br />
certain regions of the Netherlands. The definition of ‘significant impact' is introduced here to indicate<br />
whether a project has a significant impact on air quality.<br />
The law distinguishes between large and small projects based on their environmental impact. The<br />
impact of a project is classified as being ‘not significant’ if the calculated concentration (annual average)<br />
related to the project is smaller than 3% of the air quality limit value for Nitrite (NO2) and Particulate<br />
Matter-10 (PM10) (3% equals 1,2 µg/m3). Projects that do not have a significant impact can be<br />
achieved.<br />
However, the proximity to a Natura2000 area can introduce additional constraints on emissions of NO2.<br />
Within the European Union, the Netherlands is the only EU Member State that applies critical deposition<br />
values as a reference for the evaluation of a 'significant effect'. The main reason for this is that<br />
deposition of nitrogen causes over-fertilization. In Noord-Brabant nitrogen deposition is mainly caused<br />
by a combination of large scale agricultural activities, and to a lesser extent, industries.<br />
4.4.1.1 Relevant Emissions for Shale Gas Production<br />
Emissions that relate to the production of shale gas, could potentially originate from the following<br />
sources:<br />
• Combustion emissions from trucks and drilling equipment;<br />
• Combustion emissions from stationary heat or power generation;<br />
• Emissions from natural gas processing and transportation;<br />
• Evaporative emissions from waste water ponds;<br />
• Emissions due to spills (dispersion of drilling or fracturing fluids combined with PM from the<br />
deposit).<br />
The relevant guidelines per emission source are presented for the Dutch situation in the table below.<br />
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Table 4-7. Relevant Emission Guidelines<br />
Emission source<br />
Stationary heat or power generation<br />
Evaporative emissions from waste water ponds<br />
Emissions from natural gas processing and<br />
transportation<br />
Trucks<br />
Guidelines / Directives<br />
Act on Emissions for medium sized heat generation<br />
equipment (BEMS) or Directive 2001/80/EC for Large<br />
Combustion Plants >50 MW(LCP)<br />
Dutch Emission Guidance (NeR)<br />
Best Available Technology (IPPC)<br />
EU Directive 05/55/EC<br />
Drilling equipment<br />
EU Directive 97/68/EC on emissions of gaseous and<br />
particulate pollutants from engines in Non-Road Mobile<br />
Machinery (NRMM)<br />
4.4.1.2 Integrated Pollution Prevention Control (IPPC) Directive<br />
The IPPC Directive concerning integrated pollution prevention and control sets out the main principles<br />
for permitting and control of installations. This is based on an integrated approach and the application<br />
of Best Available Techniques (BAT). These ‘best available techniques’ are the most effective way to<br />
achieve a high level of environmental protection, taking into account costs and benefits. For a selection<br />
of activities, the best available techniques are defined in Reference documents (called “BREF’s”), an<br />
important aspect of obtaining an environmental permit.<br />
The IPPC Directive and sectorial Directives will be replaced by the Directive on Industrial Emissions<br />
2010/75/EU (IED) as of 7 January 2013. The Directive on Industrial Emissions 2010/75/EU (IED) came<br />
into force on 6 January 2011 and has to be transposed into national legislation by Member States, by 7<br />
January 2013. In this new IED the concept of BAT provisions will be strengthened, and mandatory<br />
emission limit values for existing plants will become more stringent.<br />
According to the IPPC Directive (and eventually the IED), application of BAT is mandatory when the<br />
activity is defined in annex I of the Directive. In addition to this European Directive, The Netherlands<br />
assessed BREF documents and defined more specific requirements applicable in the Dutch context. The<br />
results of this assessment are laid down in so called resolutions (Dutch: ‘oplegnotities’) which should be<br />
considered for permit applications. The resolution for gas refineries is incorporated in the Dutch<br />
Emission Guideline (Dutch: NeR).<br />
For shale gas development, the following BREF documents may be relevant:<br />
• Reference document on BAT for Mineral Oil and Gas Refineries. In the scoping section of this<br />
document, the following activities are included:<br />
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o<br />
o<br />
#17 Natural gas plants: Processes related with the processing of natural gas<br />
#20 Product treatments: Sweetening and final product treatments<br />
4.4.1.3 Non-Road Mobile Machinery<br />
NRMM covers a large range of engine installations in machines used for purposes other than for<br />
passengers or for the transportation of goods. Diesel and spark emission engines installed in NRMM,<br />
such as gas compressors, water pumps, industrial drilling rigs, bulldozers, etc., contribute to air pollution<br />
by emitting carbonous oxides (CO), hydrocarbons (HC), nitrogen oxides (NOx) and PM.<br />
Figure 4-33. Non-road construction equipment<br />
Emissions from these engines are regulated by four directives before they are placed on the market.<br />
These are: Directive 97/68/EC; amended by the Directive 2002/88/EC and by the Directive 2004/26/EC.<br />
For the various types of NRMM, the Directive stipulates the maximum permitted exhaust emissions as a<br />
function of the power of the relevant engine. Moreover, the Directive includes a series of emission limit<br />
stages of increasing stringency, with corresponding compliance dates. Manufacturers must ensure new<br />
engines comply with these limits so they can be placed on the market.<br />
4.4.1.4 Stationary Heat or Power Generation<br />
Combustion emissions to air (such as PM, Sulphur dioxide (SO2), Nitrates (Nox), and CO, for instance)<br />
that emit from stationary heat or power generation installations, are subject to either the Dutch<br />
‘Besluitemissie-eisenmiddelgrotestookinstallaties’ (shortly to become BEMS) for smaller installations, or<br />
to the European Large Combustion Plants Directive 2001/80/EC (LCP), when the rated thermal input<br />
exceeds 50 Mega Watt (MW). Emission limits for both BEMS and LCP vary based on capacity and age of<br />
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the installations. In the near future, the LCP directive will be integrated with six other directives in the<br />
IED, (see also IPPC Directive).<br />
Based on actual available information on shale gas production, it is not expected that thermal input will<br />
exceed 50 MW.<br />
Figure 4-34. Diesel-fired generator<br />
4.4.1.5 NMVOC Emission Limits<br />
Emission limits for both fugitive and process emissions (such as Volatile Organic Carbons(VOC) and<br />
benzene (BZ) are derived from the Dutch Emission Guideline in the environmental permit (Dutch:<br />
Nederlands emissie richtlijn lucht (NeR)). For instance, for process emissions of benzene, the NeR is<br />
applicable if more than 2.5 grams per hour are emitted. The emission limit for BZ is then 1 mg/m3.<br />
Controlling fugitive emissions of process installations is described in the protocol ‘Measurement<br />
protocol diffuse emissions’ (Dutch: ‘Meetprotocolvoorlekverliezen’). The obligation to measure fugitive<br />
emissions is incorporated in the environmental permit.<br />
4.4.1.6 Trucks<br />
European emission regulations for new heavy-duty diesel engines are commonly referred to as Euro I to<br />
Euro VI. Manufacturers of trucks must ensure that new engines comply with these Euro emission<br />
standards, so that they can be placed on the European market. Euro classification depends on the<br />
emission standards of CO, HC, NMVOC, Methane (CH4), NOx, PM and Smoke.<br />
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4.4.1.7 Emissions Trading<br />
Greenhouse Gas Emissions: The operation of power and heat generation, or drilling equipment,<br />
consumes fuels which are burnt to emit CO2. Any fugitive emissions of greenhouse gases that might<br />
occur during production, processing and transport of the natural gas. The European CO2-emissions<br />
trading scheme (EU ETS), is applicable to stationary emission sources with a total permitted capacity<br />
over 20 MW thermal.<br />
NOx: If the total capacity of stationary combustion installations exceeds 25 MW thermal, the Dutch NOx<br />
emissions trading scheme may be applicable.<br />
4.4.2 General Environmental - Noise<br />
Regulations make a difference in direct noise, indirect noise, and vibrations. Research of Noise and<br />
vibrations need to be studied at both the exploration and production phases. When researching<br />
exploration and production noise levels, there would be a distinction between average and peak noise<br />
levels.<br />
In general all regulated emissions concerning noise and vibration levels on residential, medical or<br />
educational buildings are required to be studied. These buildings are protected against high noise levels<br />
by laws, regulations and standards.<br />
Due to the proximity of residential or business areas, the Operator will install noise barriers to limit<br />
disturbance to neighbors. Installation of these barriers can be for temporary use during construction and<br />
drilling phases. Some facilities that house processing equipment and/or compressors on-site, may build<br />
permanent noise suppression techniques and materials into their design.<br />
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Figure 4-35. Noise barriers are constructed to limit noise levels during construction activities<br />
4.4.2.1 Direct Noise - Construction Phase<br />
There is no noise regulation in environmental laws for the judgment of noise nuisance resulting from<br />
construction activities. Noise nuisance can be regulated in permits according to local laws or regulations.<br />
It is possible that a national law will come into being that will regulate construction noise. Generally in<br />
all cases, (and also with the new law), guidelines for construction noise are used to prove that noise<br />
nuisance meets the requirements, according to Circulaire Bouwlawaai 2010. The framework for<br />
construction noise levels measured in decibels (dB (A) is:<br />
Table 4-8. Caption<br />
Day period<br />
07.00-19.00<br />
Maximal exposure<br />
time in days<br />
Up to<br />
60 dB(A)<br />
Above<br />
60 dB(A)<br />
Above<br />
65 dB(A)<br />
Above<br />
70 dB(A)<br />
Above<br />
75 dB(A)<br />
Above<br />
80 dB(A)<br />
No restrictions in Max - 50 days Max - 30 days Max -15 days Max - 5 days 0 days<br />
days<br />
For construction works outside the day period, custom requirements are required in consultation with<br />
authorities.<br />
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Figure 4-36. Drilling rig with noise barrier<br />
4.4.2.2 Direct Noise - Production Phase<br />
There are no noise regulations under environmental laws for judgments concerning noise nuisance in<br />
surroundings situated near industrial activities. Noise nuisance is regulated in the permit of the<br />
surroundings (Omgevingsvergunning). According to article 5.3, Besluitomgevingsrecht (Bor)’ which uses<br />
a general description for noise nuisance: ‘Regulations and measures are needed to prevent negative<br />
effects from industrial activities to the environment, and the effects are limited and or prevented at the<br />
source of the noise’.<br />
The permit is granted by the Provincial Executive of North Brabant. The Provincial Executive will judge<br />
whether noise nuisance in the direct surroundings of the industrial activities is acceptable.<br />
The framework for the judgement is the regulation for industrial noise and permitting<br />
‘Handreikingindustrielawaai en vergunningverlening’ 1998. The main points of interest in this regulation<br />
are mentioned below.<br />
The necessary permits will define the noise levels on buildings (residential, medical, education), for the<br />
representative operating conditions during the day, evening and night period. The permits for noise<br />
consist of reports where calculations are based on predictions and measurements.<br />
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Table 4-9. Noise Levels in Urban Areas<br />
Periods<br />
Maximum accepted average noise<br />
levels (L Aeq ) on buildings (residential,<br />
medical, education)<br />
Day - 07.00-19.00 50 dB(A) 70 dB(A)<br />
Evening - 19.00-23.00 45 dB(A) 65 dB(A)<br />
Night - 23.00-07.00 40 dB(A) 60 dB(A)<br />
Maximum accepted peak noise levels (Lmax)<br />
on buildings (residential, medical, education)<br />
The noise levels mentioned above are noise levels that are generally accepted within in a standard<br />
urban environment. In case of silent environment (nature), all accepted noise levels have to be lowered<br />
by 5 dB (A) or even 10 dB (A).<br />
In case of activities with tonal or impulse noise characteristics, the noise levels of these activities have to<br />
be raised by a 5 dB (A) penalty.<br />
4.4.2.3 Indirect Noise<br />
Noise from transportation movements, to and from the well pads, is regulated under ‘noise nuisance<br />
caused by traffic from and to the site and is judged at permit issuance under the Environmental<br />
Management Act” (‘Geluidhinderveroorzaakt door het wegverkeer van en naar de inrichting;<br />
beoordeling in het kader van de vergunningverlening op basis van de Wet milieubeheer'), 29 February<br />
1996.<br />
The bandwidth for acceptable average noise levels is between 50 dB(A) and 65 dB(A). Less than 50 dB(A)<br />
is preferred. Higher than 65 dB(A) is not allowed.<br />
4.4.2.4 Vibrations<br />
There are no vibration laws or regulations, but in this case it can be assumed that there will be vibration<br />
issues. This is required to determine the vibration impact on the surroundings for construction and<br />
production phases.<br />
Guidelines for vibrations are accepted in jurisprudence. The guidelines are from the Building Research<br />
Foundation (StichtingBouwresearch, SBR), Trillingen: meet- en beoordelingsrichtlijn - Deel A, B en C.<br />
4.4.2.5 Summary for Noise and Vibration Impacts<br />
According to cited regulations for noise and vibrations relative to shale gas development, the issues are:<br />
· Transport movements on the public road, relate to construction and production. High noise and<br />
vibration levels are not possible according to the regulations on indirect noise nuisance.<br />
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Pipelines instead of transportation movements will reduce the noise impact on nearby buildings.<br />
· Production (and possibly construction) works are 24 hours. The night period (23:00-07:00h) is<br />
normative for the acceptable noise levels on buildings.<br />
· These regulations are very tight for shale gas development in urban areas or with local<br />
residential/medical buildings nearby.<br />
· Vibration impact is not very well known and requires further research.<br />
Comparing the shale gas development with a general on-shore natural gas extraction area in the<br />
Netherlands, there are guidelines for the distance towards residential buildings:<br />
· For a gas extraction area with a gas treatment installation less than 10,000,000 m 3 /d, the<br />
indication of the minimal required distance is 500 meters.<br />
· For a gas extraction area with a gas treatment installation greater than 10,000,000 m 3 /d, the<br />
indication of the minimal required distance is 700 meters.<br />
· In most of the cases this means that a smaller distance makes it necessary to implement<br />
measures to reduce the noise levels.<br />
4.4.3 General Environmental - Lighting<br />
In the guideline of the Dutch association for Lighting (NSVV), a number of different visual effects are<br />
described that may lead to light pollution. One of these effects relates to direct incandescent light. The<br />
directive means by light incidence, especially there where light enters the rooms of houses, such as<br />
bedrooms, which are normally dark. As the parameter for determining this effect, vertical luminance is<br />
used at a point in a relevant surface (E y in lux): in homes usually vertical (façade) surfaces, especially<br />
windows.<br />
The exact value for the parameter mentioned below, which is based on no interference, depends on the<br />
surrounding original levels of existing light in the particular environment. The values in this table are<br />
referred to as threshold values; these are mainly determined by activities in the surrounding (industrial<br />
area, residential, rural area) and the possible presence of street lightning. The NSVV Guideline<br />
distinguishes four zones, as shown in the following table.<br />
Table 4-10. Existing Levels of Lighting<br />
Zone Description<br />
E1 Nature areas with very low ambient brightness<br />
E2 Areas with a low ambient brightness; in general outside urban and rural residential areas.<br />
E3 Areas with an average ambient brightness; in general residential areas.<br />
E4 Areas with high ambient brightness; in general urban areas, combined with residential and industrial<br />
areas with intense nocturnal activities.<br />
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For each zone threshold values can be formulated based on the table below (sports lightning).<br />
Table 4-11. Sports Lighting Levels<br />
Parameter Day period Surrounding area<br />
E1<br />
Nature area<br />
E2<br />
Rural area<br />
E3<br />
Residential<br />
E4<br />
City centre/ industrial area<br />
IL luminance (E v ) on 07:00 – 23:00 2 lux 5 lux 10 lux 25 lux<br />
facade 23:00 – 07:00 1 lux 1 lux 2 lux 4 lux<br />
I (cd) of each<br />
luminaire<br />
07:00 – 23:00 2.500 cd 7.500 cd 10.000 cd 25.000 cd<br />
23:00 – 07:00 0 cd 500 cd 1000 cd 2.500cd<br />
For each zone threshold values can be formulated based on the table below (public lightning).<br />
Table 4-12. Public Lighting Levels<br />
Parameter Day period Surrounding area<br />
E1<br />
Nature area<br />
E2<br />
Rural area<br />
E3<br />
Residential<br />
(S-class/MEclass)<br />
IL luminance (E v )on 07:00 – 23:00 5 lux 10 lux 10/20 lux 15/25 lux<br />
facade 23:00 – 07:00 1 lux 2 lux 5/10 lux 10 lux<br />
I (cd) of each<br />
luminaire<br />
E4<br />
City centre/ industrial area<br />
(S-class/ME-class)<br />
07:00 – 23:00 500 cd 500 cd 600/2500 1000/5000 cd<br />
23:00 – 07:00 500 cd 500 cd 600/2500 cd 2.500cd<br />
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Figure 4-37. Diesel-fired construction lighting trailer<br />
4.4.4 General Environmental - Summary<br />
For the notional feasibility study it is important to understand that any shale gas development program<br />
in the Netherlands must comply with Dutch regulations for air quality, noise and lighting. The<br />
cumulative emissions (all media) of all equipment used and activities performed during the exploration<br />
and completion phases of the project must be taken into account. Plans must be implemented to<br />
ensure that standards are met.<br />
The same is true for any production facilities that would be built to support the collection, processing,<br />
shipment and sales of shale gas within the Netherlands. The Dutch regulations must be the basis (as a<br />
minimum standard) for the engineering standards for any surface equipment and facilities.<br />
Any contractors brought on-site should be aware of the Dutch regulations and broader European<br />
standards for equipment being used throughout Europe.<br />
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The same would be true for the production operations. Once gas production volumes are most<br />
accurately projected, the engineering firm supporting this development project would use the Dutch<br />
regulations in their design basis.<br />
4.4.4.1 HSE Management – External Safety<br />
In the Netherlands, the Decree on External Safety of Establishments (Dutch:<br />
‘BesluitExterneVeiligheidInrichtingen’ also known as BEVI), aim to provide a minimum safety level for<br />
humans (primarily in buildings). To be able to determine the risk, all establishments that store and/or<br />
use hazardous substances (eg. chemical industries, refineries, chemical warehouses, tank storage<br />
facilities, oil and gas facilities, etc), need to prepare a Quantitative Risk Assessment (QRA).<br />
The results of such a QRA are expressed by means of two types of risk:<br />
· Individual Risk (IR): the likelihood per annum for an individual to be killed as a result of an<br />
accident (with hazardous substances) on the establishment. The IR is represented as risk<br />
contours (10 -4 per year, 10 -5 per year, 10 -6 per year, etc) on a map;<br />
· Societal Risk (SR): the likelihood per year for a group of people to lose their lives as the result of<br />
an accident, (with hazardous substances) on the establishment.<br />
In the Dutch QRA guideline (Dutch “HandleidingRisicoberekeningen BEVI” (HRB)), it is described in quite<br />
some detail which parts of the establishment should be included, what type of accident scenarios (eg.<br />
leakage or full rupture of a pipe or a vessel, blow out, etc.), failure frequency for equipment (tanks,<br />
piping, etc.) should be applied, etc.<br />
To be able to carry out the complex QRA-modelling, a mandatory computer model must be used (ie. the<br />
computer model Safeti-NL). All accident scenarios and type of substances, as well as characteristics of<br />
the surroundings, are given as input. The model will calculate the IR and SR.<br />
For the SR, BEVI provides general guidelines. For the IR, the BEVI contains quite detailed requirements,<br />
primarily with respect to the possibility of allowing buildings, where humans are or can be present<br />
(houses, hospitals, child care centers, hotels, offices, workshops, etc) within the IR contours:<br />
· Beyond the risk contour for 10 -6 per year (ie. a risk lower than 10 -6 per year) there are no<br />
limitations for existing areas that have been built upon. This includes housing and planned<br />
building developments, or for any other future developments;<br />
· Between the risk contour of 10 -5 and 10 -6 per year there are possibilities to allow for existing<br />
buildings, but new developments should be avoided;<br />
· Within the risk contour of10 -5 per year (ie. a risk higher than 10 -5 per year), in general no<br />
buildings are allowed.<br />
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For this conceptual field development, it is not yet possible to determine the IR and /or SR for the well<br />
pads, pipelines and central processing facility. Relevant IR contours can vary strongly and are dependent<br />
upon well pressure, casing size and length, number of wells, composition of gas and/or condensate,<br />
pipeline diameter and length, layout of process facilities, Emergency Shut Down (ESD) functionality, and<br />
other factors. Nevertheless there should be a certain distance between buildings and a well pad or a<br />
processing facility, up front.<br />
As a very rough initial estimate, a safety distance (for 10 -6 per year) of 200 meters between well pads<br />
and / or a processing facility could be suggested, but it needs to be emphasized strongly, that once the<br />
actual risk is being calculated, this distance may change significantly (positive or negative).<br />
Figure 4-38. Example risk contour (Source: Oranjewoud rapport "Onafhankelijk rapport schaliegaswinning in Nederland)<br />
4.4.4.2 HSE Management – Soil Protection<br />
To protect soil against new contamination resulting from operational businesses, the Dutch Soil<br />
Protection Guideline (Dutch “NederlandseRichtlijnBodembescherming”) has been issued. This Guideline<br />
is required for all companies in the Netherlands for which an environmental permit is required.<br />
4.4.4.2.1 Structure and Principles of the Guideline<br />
The Dutch Soil Protection Guideline states that all permitted activities need to result in negligible soil<br />
risk. This means that the license holder must prevent soil contamination as much as possible. To give<br />
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meaning to the term ‘as much as possible’, the Guideline offers multiple possible solutions for reaching<br />
a negligible soil risk for several different types of activities. All these solutions consist of two<br />
components: Soil protection provisions (impermeable barrier or retaining floors, drip pans, enclosed<br />
system designs, etc.) and measures (instructions to staff, spill kit use and maintenance, and inspection<br />
programs). Provisions and measures always need to be combined to reach a negligible soil risk. The<br />
more robust the facilities, the less tight measures are needed. This principle is illustrated in the Figure<br />
4-39.<br />
The guideline describes the different combinations for an activity.<br />
Figure 4-39. Example risk contour (Source: Oranjewoud rapport "Oranjewoud rapport schaliegaswinning in Nederland)<br />
4.4.4.2.2 Impact on Shale Gas Sites<br />
As shale gas drilling and production requires an environmental permit, the Dutch Soil Protection<br />
Guideline is applicable to all activities occurring on these sites. The following relevant questions need to<br />
be answered:<br />
1. Are the used substances a threat to soil quality according to the Guideline<br />
At shale gas drilling and production sites, the following substances are likely to be handled or<br />
stored: diesel (fuel for pump engines), fracking chemicals, fracturing fluid (dissolved fracking<br />
chemicals), drilling fluid, flow back water (containing chemicals and Naturally Occurring<br />
Radioactive Materials (NORM), lubricants for all kinds of operational equipment and shale gas.<br />
All other substances mentioned above are soil threatening according to the Guideline.<br />
2. Are the activities with soil threatening substances in need of any soil protective facilities and<br />
measures according to the Guideline<br />
The Guideline states that the following activities need a protective soil combination of<br />
provisions and measures: storage in underground or above ground tanks, storage in basins or<br />
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pits, loading and unloading activities, pipeline transport (above and underground), pumping,<br />
handling opened barrels, handling of bulk materials, storage and transfer of packed liquids and<br />
solids (drums, bins, cans, etc.), enclosed or (half) open processing plants, sewage systems,<br />
emergency containment facilities, workshop activities and waste water treatment. All of these<br />
activities are likely to occur on shale gas drilling and production sites.<br />
3. How to reach a negligible soil risk<br />
As described above, negligible soil risk can be reached in different ways: Do you want to opt for<br />
robust soil protection provisions with low operational impact (left side of the Figure 4-39), or do<br />
you settle for less robust facilities, accepting a bigger impact on operations (more input from<br />
operating staff; the right side of the Figure 4-39).<br />
4.4.4.2.3 Conclusion<br />
The Dutch Soil Protection Guideline is relevant and applicable to activities on shale gas drilling and<br />
production sites as it is done with respect to drilling and production sites for conventional gas. A typical<br />
production site in The Netherlands is presented in the picture below.<br />
Figure 4-40. A typical production site in the Netherlands<br />
4.4.4.3 HSE Management – Summary<br />
As with the General Environmental discussions above, for the purposes of the notional and or feasibility<br />
study, it is important to understand that any shale gas development program in the Netherlands must<br />
take into account the Dutch regulations with regards to External Safety (risk management) and Soil<br />
Protection. At this point in the process, there are too many unknowns to determine the extent of the<br />
activities and operations that would be implemented, but an awareness of these provisions is essential<br />
in any planning going forward.<br />
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4.5 Well Pad Construction<br />
As a part of this feasibility study, the Team has been involved in an iterative process of designing the<br />
most favorable locations for well pad sites<br />
4.5.1 Go – No-Go Areas<br />
We developed an initial Geographic Information System (GIS) database divided the conceptual study<br />
area into three (3) categories:<br />
1. NO GO areas, which are:<br />
o Buildings<br />
o Surface waters<br />
o Roads<br />
o Railways<br />
o Overhead power lines<br />
o Existing safety zones<br />
o Archeological monuments<br />
o Drinking water production areas<br />
2. MIGHT GO areas, which are<br />
o Ecological sensitive areas (Main Ecological Structure (EHS))<br />
o Natura2000 areas<br />
o Ground water protection areas<br />
o Drill free zone drinking water<br />
3. GO areas: which are open, agricultural areas<br />
For the GIS evaluation, the pad size has been assumed to be 150 x 150 m, which roughly leaves a ‘buffer<br />
zone’ of about 75m around the well pad. Using the midpoint co-ordinates of the well pads, it has been<br />
evaluated whether or not an intersection of the well pad area with either a no-go, or a might go<br />
intersection exists:<br />
· If no intersection with NO-GO and MIGHT GO exists, the location of the well pad is considered<br />
feasible<br />
· If intersections with a NO-GO area exist, the location of the well pad is considered NOT to be<br />
feasible<br />
· If intersections with a MIGHT GO area exist, additional evaluation of the suitability might be an<br />
option, but for the time being, the location of the well pad was considered NOT to be feasible.<br />
Based on the above, 83 well pad locations – within the 8C area - that seemed to be suitable for<br />
development were identified. The Figure on the next page shows the location of these possible well pad<br />
sites and the five hectare section of land for our “Base Case” site.<br />
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Due to the requirement to store water on location during drilling and fracking operations, there is a<br />
need to construct large impoundments (reservoirs, ponds, pits) in nearby locations where the water is<br />
readily accessible, so as to not impede the processes.<br />
The typical well site might have two separate impoundments constructed for the storage of water for<br />
distinct purposes. One impoundment is specifically designated for the storage of flowback and<br />
produced water, and a second impoundment is designated for the storage of fresh water for use during<br />
drilling and fracking operations.<br />
4.5.2 Well Pad Designs<br />
The actual design of the surface “footprint” involves a number of engineering (geotechnical and civil)<br />
and compliance related aspects. In order to minimize the size of the actual well pad and the overall<br />
footprint of a shale gas development plan, a common practice is to drill multiple horizontal wells from<br />
the same well pad. One of the Assumptions noted in Section 6.0 – Project Description, notes that the<br />
proposed development plan would look at drilling up to ten (10) wells from each well pad. Using the<br />
“Base Case” site as defined in Section 6.0 that could result in 130 wells within the area.<br />
By drilling multiple horizontal wells from the same well pad, the Operator is able to reduce their site<br />
footprint that results in a number of other benefits:<br />
• Lower construction costs<br />
• Less surface disturbance<br />
• Less habitat fragmentation<br />
• Fewer roads and utility corridors<br />
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Figure 4-41. Wellheads on multi-well pad site<br />
4.5.3 Seismic Activity<br />
The surface facilities (well pads, processing facilities, pipelines, office structures, etc.) must be designed<br />
to withstand the remote possibility of earthquakes and tremors in the development area. If this<br />
information is not already available, a detailed geotechnical seismology evaluation should be performed.<br />
Some of the items this study should address would include:<br />
• Site geology and soil conditions<br />
o Liquefied sands<br />
o Quick sensitive sands<br />
o Thick deposits of soft soils overlying rock<br />
• Seismic design parameters<br />
o PGA (Peak Ground Acceleration)<br />
o PGV (Peak Ground Velocity<br />
o PGD (Peak Ground Displacement)<br />
• Possibility for permanent displacement (could impact pipelines)<br />
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Figure 4-42. Representation of 3D seismic data<br />
4.5.4 Geotechnical Engineering<br />
In addition to looking at seismic potential, a thorough geotechnical investigation (with soil borings)<br />
should be performed to facilitate the proper design of all surface facilities. Civil engineers would then<br />
be able to utilize this geotechnical data and other sources of information to design the well pads and<br />
associated surface facilities for the field activities and on-site equipment required for shale gas<br />
development. Included in their designs would be various compliance plans such as an Erosion and<br />
Sediment Control Plan.<br />
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Figure 4-43. Geotechnical soil boring<br />
The Figure 4-44 shows a typical well pad design prepared for a site in the Marcellus.<br />
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Figure 4-44. Typical Well Pad Design<br />
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4.5.5 Impoundments<br />
In addition to the well pads, there are a number of associated surface related facilities which would<br />
include in the site development plan.<br />
As water is required to be stored on location during the drilling and fracing operations, there is a need to<br />
construct large impoundments (reservoirs, ponds, pits) in near-by locations where the water is readily<br />
accessible so as to not impede the processes.<br />
Figure 4-45. Wellpad with impoundment<br />
The typical well site has two separate impoundments constructed for the storage of water for distinct<br />
purposes. One impoundment is specifically designated for the storage of flowback and produced water<br />
and a second impoundment is designated for the storage of fresh water for use during the drilling and<br />
fracing operations.<br />
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Figure 4-46. Impoundment for storage of water<br />
This siting of these impoundments should be planned in conjunction with the drilling plan / schedule<br />
such that they are located in a centralized area so that water can be transferred to the various well<br />
pads. The water is transferred via pipelines from the source water receiving point (surface water, grey<br />
water provider) to these impoundments and then from the impoundment to the well pad. These<br />
pipelines are typically HDPE or PVC and can above ground or buried. In some instances when the<br />
topography necessitates, pumps may be required to obtain the necessary lift for the water or due to the<br />
distance between the centralized impoundment and the well pad.<br />
Figure 4-47. Installation of liner system for impoundment<br />
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These impoundments must be designed by licensed engineers and comply with the regulatory<br />
authorities permitting requirements. Typical components of an impoundment design include:<br />
• Information on site geology and soil conditions<br />
• Criteria for a preparation of sub-base and compaction<br />
• Double lined with a runway<br />
o Some designs include the use of a geotextile barrier to protect / cushion the liner and<br />
help remove naturally occurring methane from being trapped under the liner<br />
• Under-drain catch basin with a leak detection system<br />
• Minimum of 30-mils (HDPE or PVC)<br />
• Permanent fill / withdrawal manifold<br />
• Front-end weir tank battery for solids and condensate capture<br />
• Possible aeration system to reduce bacteria build-up<br />
• Bird netting (if required)<br />
• Remote level monitoring system (solar powered)<br />
• Security / privacy fencing<br />
• Specifications for installer’s qualifications and work practices<br />
• Construction inspection / certification requirements<br />
The Figure 4-48 shows a typical impoundment design.<br />
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Figure 4-48. Typical Impoundment Design<br />
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An important benefit of centralized impoundments and pipelines is the reduced truck traffic associated<br />
with the hauling of water for the drilling and fracking operations. This design reduces the roadway<br />
congestion, damage to the roadways due to heavy vehicles and reduced air emissions and GHG<br />
(greenhouse gas) concerns.<br />
Figure 4-49. Impoundment with above-ground water pipelines along side of roadway<br />
4.5.6 Restoration<br />
Shale gas producers aim to leave behind a small footprint for each well pad through the restoration<br />
process. Restoration involves landscaping and contouring the property as closely as possible to predrilling<br />
conditions. The production site will include a small wellhead on a level concrete pad, a small<br />
amount of equipment, two to three water storage tanks and a metering system to monitor gas<br />
production.<br />
A site specific restoration plan will be developed that will take into account the visual impacts, the<br />
roadways, storm water and erosion & sediment control management and security for the site.<br />
Components of a restoration plan would include:<br />
• Original use of property<br />
• Soils evaluation<br />
• Natural vegetation<br />
• Wildlife habitat<br />
• Erosion control measures<br />
• Impacts on nearby water bodies<br />
• Timeline of restoration<br />
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• Maintenance plan<br />
• Monitoring of restoration progress<br />
Figure 4-50. Stored wellpad site with wellheads and produced water storage tanks<br />
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4.6 Infrastructure<br />
The characterization of the shale gas resources in geologic formations beneath the earth surface is a<br />
critical component to the economic viability of a shale gas development effort. However, it is equally<br />
important to evaluate the surface conditions and identify the potential surface impacts and determine<br />
the infrastructure that would be required to support the subsurface development plans. The<br />
investments required to build-out the infrastructure can be significant and the permitting and regulatory<br />
approval process can have a material impact upon the project’s schedule and budget.<br />
One of the unique aspects of the infrastructure build-out is that is on the surface and can be readily<br />
observed by the community surrounding the proposed development area. This infrastructure also has<br />
the potential to impact their quality of life.<br />
It has been said that the science, engineering and technology to identify and harness these shale gas<br />
resources is the easy part; it is when the production and the shipment of the gas starts to affect the<br />
surrounding communities - which is when the real challenges begin.<br />
Some gas plays are in remote, sparsely populated areas while others are located in urban areas that are<br />
more densely populated. Each scenario presents its own challenges.<br />
While operating in a remote area, the infrastructure required to support the development effort has to<br />
be built-out and the distances to get the product to market can result in increased project costs. The<br />
build-out of roadways, pipeline right-of-ways and processing facilities will result in the landscape being<br />
changed.<br />
While operating in a more urban area and closer to existing infrastructure may result in reduced buildout<br />
costs, the activities required to perform and complete the shale gas extraction may have an impact<br />
upon the population.<br />
The infrastructure required to support the development of the shale gas resources would include things<br />
such as:<br />
• Roadways<br />
• Utilities<br />
• Gathering systems<br />
• Processing facilities<br />
• Pipelines<br />
4.6.1 Roadways<br />
The equipment used to drill for these resources and the facilities required to process and transport the<br />
shale gas all have to be mobilized to the site or built on-location. Depending upon where a particular<br />
shale gas resource is located, the types and condition of the roadways can vary significantly.<br />
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Figure 4-51. Typical drilling rig<br />
The list of equipment required to develop shale gas resources is extensive and all of it has some<br />
common attributes; it is large and heavy. The movement of the equipment to and from a project site<br />
can present some unique challenges. The existing roadways are typically designed for passenger<br />
vehicles and commercial transportation and often have weight and height restrictions. This leads to the<br />
development of detailed transportation plans for special permits, route selection and scheduling<br />
requirements.<br />
A typical exploration and production operation is usually a 24 hour per day / 7 days a week (24/7)<br />
operation. If the movement of the equipment and supplies may result in increased congestion within<br />
high traffic areas, limits may be placed upon how many vehicles and timing of their movements will be<br />
allowed.<br />
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Figure 4-52. Staging of equipment for fracing operation<br />
As noted above, many of the existing roadways were not designed for this type of large, heavy<br />
equipment and the sheer number of vehicles required. Many Operators end up having to contract with<br />
local road construction companies to repair and maintain these roadways and in some instances, build<br />
new roads. The resultant investment in roadway infrastructure can be significant.<br />
In addition to the public roadways, it is typical for Operators to include the construction of on-site access<br />
roads into their site development plans. Some of these roads are temporary (dirt / gravel) and others<br />
are permanent (pavement). All of these roads and associated work areas have to be designed and<br />
constructed with the regards to the site terrain, bad weather conditions and take into account the<br />
requirement for proper consideration for soil and erosion control measures. It is also necessary to<br />
ensure all of the appropriate ecological field studies have been performed prior to beginning any site<br />
activities to determine if there is the potential to impact wetland areas or protected species. As noted<br />
above, these issues are regulated under a number of different Dutch statutes.<br />
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Figure 4-53. Asphalt road constructed to access produced water tanks<br />
4.6.2 Utilities<br />
During the exploration phase of a project, much of the equipment is powered by portable generators.<br />
Due to horsepower requirements to operate this equipment, these portable generators are large,<br />
require their own fuelling systems, emit air emissions into the atmosphere and can create noise issues.<br />
As noted in the sections above, these concerns need to be factored into any shale gas development<br />
plan.<br />
Once the well is completed and moves into a production phase there are a different set of power<br />
requirements that must be considered. The processing equipment and other facilities are more<br />
permanent in nature are many times are powered by the local power grid. The voltage requirements of<br />
the entire complex must be assessed to determine if the facility will require some type of on-site<br />
substation. In addition, the distance of the location from the power grid may require the construction of<br />
additional transmission lines resulting in additional linear surface impacts and a significant investment<br />
costs.<br />
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Figure 4-54. Electrical substation<br />
The investment in transmission & distribution (T&D) infrastructure can be substantial and may involve a<br />
lengthy permitting process which would need to be factored into the development plan schedule.<br />
4.6.3 Gathering Systems<br />
Once a well is completed and the wellhead is in-place, there has to be a means of gathering the gas from<br />
the individual wells and transporting it to a processing facility. These gathering lines are typically 6 to 12<br />
inch diameter steel pipelines that are buried across the development area and routed to the gas<br />
processing facility. Depending upon the wellhead pressure, there may be a need for some level of<br />
compression to move the gas.<br />
Figure 4-55. Gas gathering system<br />
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As a development area is built-out, the network of gathering lines can become extensive and it is<br />
important to plan for future field development in relation to route selection and proper sizing of these<br />
gathering pipelines.<br />
As discussed on the section on roadways, there is a requirement to perform the appropriate preconstruction<br />
field studies to determine if the linear route of these pipelines will have any type of<br />
environmental impacts upon areas such as wetlands, stream or river crossings, threatened &<br />
endangered species, archaeological sites and flora and fauna / biological media. These field studies and<br />
the associated permitting process and timelines can have an impact upon a project from cost and<br />
scheduling perspective. In many instances, mitigation plans with offset requirements will need to be<br />
developed and implemented.<br />
4.6.4 Processing Facilities<br />
Gas processing facilities are designed to remove impurities from the gas stream to bring it up to<br />
“pipeline spec” so that it can be sold into the marketplace. Because the geochemical composition of the<br />
host formation for the shale gas varies, the list of “impurities” that need to be removed will also vary<br />
depending upon the source of shale gas and each processing facility needs to be designed to treat the<br />
relevant constituents. These units are designed to remove water, CO 2, H 2 S, and fractionate (separate)<br />
liquid and vapor products to meet pipeline specifications.<br />
Figure 4-56. Typical gas processing facility<br />
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Although the specific design criteria for the processing facility will be dependent upon the analysis of<br />
site specific gas samples, some of the typical processes would include:<br />
• Amine processing – this process is used to remove carbon dioxide (CO 2 ) and hydrogen sulfide<br />
(H 2 S) which are referred to as acid gas compounds and the acid gas removal process is often<br />
referred to gas sweetening. This is a continuous process where the acid gas compounds are<br />
selectively absorbed from the gas stream under conditions of high pressure and moderate<br />
temperature. Conditions in the regenerator area of high temperature and low pressure cause<br />
the acid gas compounds to desorb from the amine solution and the cooled solution is returned<br />
to the high pressure absorber for the removal of additional acid gas compounds.<br />
• Refrigeration / Dew point Control – many gas streams contain excessive amounts of liquefiable<br />
hydrocarbons. To prevent condensation of these during pipeline transport, the gas stream is<br />
dehydrated and cooled below any expected pipeline condition. Liquid product produced is<br />
stabilized for the required duty and the gas is warmed for transportation.<br />
• Condensate stabilization – many natural gas steams produce a light hydrocarbon liquid product<br />
which is referred to as condensate. In order for this liquid to be shipped safely at atmospheric<br />
pressure and avoid high vaporization losses, the liquid must be stabilized using heat and a<br />
fraction tower to set the liquid vapor pressure within acceptable limits. The light products<br />
removed from the heavier liquid can be used as a fuel and many other uses. The stabilized<br />
liquid is then cooled and put into storage tanks.<br />
• Glycol Dehydration – water vapor must be removed from natural gas to prevent pipeline<br />
corrosion and mechanical damage to downstream equipment. The most common method for<br />
this procedure involves the use of TriEthylene Glycol (TEG) in a continuous process in which<br />
water vapor is absorbed from the gas under conditions of high pressure and moderate<br />
temperature. Regenerator conditions of low pressure and high temperature cause the water to<br />
be released from the TEG and the cooled TEG is returned to the TEG absorber for additional<br />
removal of water vapor.<br />
• BTEX Removal – some gas streams contain BTEX (Benzene, Toluene, Ethylbenezene and Xylene)<br />
components and aromatics from amine plant vent streams are removed.<br />
As noted above, each processing facility is designed to meet the requirements of a specific gas stream<br />
but the diagram below shows the components of a typical gas processing facility.<br />
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Figure 4-57. Gas processing facility<br />
These gas processing facilities are engineered to handle a specific chemical composition and throughput<br />
(volume) of gas and many times are designed as packaged skid-mounted units. These facilities are<br />
scalable to meet increased production volumes.<br />
4.6.5 Metering Station<br />
Once the gas has been cleaned-up and brought up to “pipeline spec”, it is ready to be shipped to<br />
market. An important piece of equipment is the metering station which monitors the performance of<br />
the pipeline and measures the volumes of gas through-put being transferred to the pipeline grid. This<br />
metering station is sometimes referred to as the “city gate” because the gas is measured and tested as it<br />
leaves the processing plant and enters the mainline pipeline. The information is typically shared (and<br />
verified) by all parties in the transaction – the Operator / midstream processor and the pipeline<br />
(shipper) company.<br />
Although commonly referred to as the metering station, the station actually consists of a series of filters,<br />
valves, gauges, instrumentation, regulators, heaters, tanks and piping spools.<br />
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Figure 4-58. Metering station<br />
One important function that can be performed at the metering station is the activation of the shut-off<br />
valve in the case of operational issues or safety concerns. These metering stations are linked into a<br />
SCADA (supervisory control and data acquisition) system which consists of a series of instrumentation<br />
that transmits data into a computer system to monitor and control the facility. The station can be<br />
monitored by on-site personnel or remotely from a centralized control room at an off-site location.<br />
4.6.6 Produced Water Tanks<br />
One of the bi-products / waste generated within a processing facility is produced water. Within the<br />
midstream sector this is a broad term that includes actual formation water that is absorbed into the gas<br />
molecules, condensates and other residuals that are processed out of the gas stream. This produced<br />
water is routed over to tanks for storage and eventual disposal. These produced water tanks are also<br />
commonly referred to as “slop water” tanks because of the variety of liquid waste streams that are<br />
often deposited into them. Depending upon the waste / water volumes anticipated, there are typically<br />
several (1 – 4) tanks linked together and referred to as a tank battery. The tanks are made of steel or<br />
fiberglass and can range in size but a typical volume would be 400 to 500 gallons (each tank). The tank<br />
battery is built with a secondary containment system to control spillage and a series of valves to<br />
facilitate their draw-down for disposal.<br />
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The facility would contract with a waste hauler to transport this water / waste to an off-site approved<br />
disposal site (treatment plant or disposal well). The volumes of water collected would determine the<br />
frequency with which the waste hauler would schedule a pick-up at the site.<br />
Figure 4-59. Produced water tanks with secondary containment<br />
4.6.7 Gas Pipelines (Mainlines)<br />
Mainline transmission pipelines are the means by which the gas is shipped from the processing facility to<br />
their markets. The pipelines are usually between 16 and 48 inches in diameter and made from a strong<br />
carbon steel material, engineered to meet industry standards. These pipes are coated with a fusion<br />
bond epoxy to protect the pipe from moisture, which causes corrosion and rusting. In addition, cathodic<br />
protection is installed as a secondary method of protecting against corrosion and rusting.<br />
4.6.7.1 Compressor Stations<br />
The gas is shipped through the pipeline at high pressures. To ensure gas remains pressurized,<br />
compression of the gas along the pipeline is required and compressor stations are constructed at<br />
intervals usually between 40 and 100 miles. There are different types of compressors used to compress<br />
the gas.<br />
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Figure 4-60. Skid-mounted compressor<br />
Turbine compressors gain their energy by using up a small proportion of the natural gas that they<br />
compress. The turbine operates a centrifugal compressor, which contains a type of fan that compresses<br />
and pumps the natural gas through the pipeline.<br />
Some compressor stations are operated by using an electric motor to turn the same type of centrifugal<br />
compressor. This type of compression does not require the use of any of the natural gas from the<br />
pipeline however it does require a reliable source of electricity nearby.<br />
Reciprocating natural gas engines are also used to power some compressor stations. These engines<br />
resemble a very large automobile engine, and are powered by natural gas from the pipeline. The<br />
combustion of the natural gas powers pistons on the outside of the engine, which serves to compress<br />
the natural gas.<br />
In addition to compressing natural gas, compressor stations also usually contain some type of liquid<br />
separator, much like the ones used to dehydrate natural gas during its processing. Usually, these<br />
separators consist of scrubbers and filters that capture any liquids or other unwanted particles from the<br />
natural gas in the pipeline. Although natural gas in pipelines is considered 'dry' gas, it is not uncommon<br />
for a certain amount of water and hydrocarbons to condense out of the gas stream while in transit.<br />
These liquid separators at compressor stations ensure that the natural gas in the pipeline is as pure as<br />
possible, and usually filter the gas prior to compression.<br />
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4.6.7.2 Metering Stations<br />
In addition to compressing natural gas to reduce its volume and push it through the pipe, metering<br />
stations are placed periodically along the pipelines. These stations allow pipeline companies to monitor<br />
the natural gas in their pipes. Essentially, these metering stations measure the flow rates, pressure and<br />
temperature of the gas along the pipeline, and allow pipeline companies to 'track' the gas all along the<br />
pipeline. These metering stations employ specialized meters to measure the natural gas as it flows<br />
through the pipeline, without impeding its movement.<br />
Figure 4-61. Metering station along transmission pipeline<br />
4.6.7.3 Valves<br />
The pipelines have a number of large block valves located along their route. These valves are<br />
strategically positioned every 5 to 20 miles along the pipeline and can be closed off to facilitate<br />
maintenance activities and in the event of an emergency.<br />
4.6.7.4 Control Systems<br />
In order to manage the natural gas that enters the pipeline, and to ensure timely delivery of the gas,<br />
sophisticated control systems are required to monitor the gas as it travels through all sections of what<br />
could be a very lengthy pipeline network. The same SCADA system that monitors the gas coming out of<br />
the metering station located at the processing facility is used to monitor and control the flow of the gas<br />
the entire length of the pipeline.<br />
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Figure 4-62. Control room for monitoring of SCADA system<br />
Pipeline engineers are located in centralized gas control centers to collect, assimilate, and manage data<br />
received from monitoring and compressor stations all along the pipe. Flow rates, operational status,<br />
pressure, and temperature readings may all be used to assess the status of the pipeline in real time.<br />
This process allows the pipeline engineers to know exactly what is happening along the pipeline at all<br />
times and enables quick reactions to equipment malfunctions, leaks, or any other unusual activity along<br />
the pipeline. These SCADA systems facilitate remote operation of equipment along the pipeline,<br />
including compressor stations, allowing the engineers to immediately and easily adjust flow rates in the<br />
pipeline.<br />
4.6.7.5 Pipeline Construction<br />
Constructing natural gas pipelines requires a great deal of planning and preparation. In addition to<br />
actually building the pipeline, several permitting and regulatory processes must be completed. Prior to<br />
beginning the permitting and land access processes, natural gas pipeline companies prepare a feasibility<br />
analysis to ensure that an acceptable route for the pipeline exists that provides the least possible impact<br />
to the environment and public infrastructure already in place.<br />
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Figure 4-63. Pipeline right-of-way during construction<br />
Assuming a pipeline company obtains all the required permits and satisfies all of the regulatory<br />
requirements, construction of the pipe may begin. Extensive surveying of the intended route is<br />
completed, both aerial and land based, during the actual assembly of the pipeline.<br />
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Figure 4-64. Surveying the right-of-way<br />
Installing a pipeline is much like an assembly line process, with sections of the pipeline being completed<br />
in stages. First, the path of the pipeline is cleared of all removable impediments, including trees,<br />
boulders, brush, and anything else that may prohibit the construction. Once the pipeline's path has<br />
been cleared sufficiently to allow construction equipment to gain access, sections of pipes are laid out<br />
along the intended path, a process called 'stringing' the pipe. These pipe sections are commonly from<br />
40 to 80 feet long, and are specific to their destination.<br />
Once the pipe is in place, trenches are dug alongside the laid out pipe. These trenches are typically five<br />
to six feet deep, as the regulations require the pipe to be at least 30 inches below the surface. In certain<br />
areas, however, including road crossings and bodies of water, the pipe is buried even deeper. Once the<br />
trenches are dug, the pipe is assembled and contoured. This includes welding the sections of pipe<br />
together into one continuous pipeline, and bending it slightly, if needed, to fit the contour of the<br />
pipeline’s path. Coating is applied to the ends of the pipes. The coating applied at a coating mill<br />
typically leaves the ends of the pipe clean, so as not to interfere with welding. <strong>Final</strong>ly, the entire coating<br />
of the pipe is inspected to ensure that it is free from defects.<br />
Once the pipe is welded, bent, coated, and inspected it can be lowered into the previously dug trenches.<br />
This is done with specialized construction equipment acting to lift the pipe in a level manner and lower it<br />
into the trench. Once lowered into the ground, the trench is filled in carefully, to ensure that the pipe<br />
and its coating retain their integrity.<br />
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Figure 4-65. Lowering of pipe into trench<br />
Laying pipe across streams or rivers can be accomplished in one of two ways. Open cut crossing involves<br />
the digging of trenches on the floor of the river to house the pipe. When this is done, the pipe itself is<br />
fitted with a concrete casing, which both ensures that the pipe stays on the bottom of the river and adds<br />
an extra protective coating to prevent any natural gas leaks into the water.<br />
Alternatively, a form of directional drilling may be employed, in which a 'tunnel' is drilled under the river<br />
through which the pipe may be passed. The technique referred to as horizontal directional drilling<br />
(HDD) can also be used to tunnel underneath a roadway.<br />
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Figure 4-66. Equipment for boring on horizontal directional drilling (HDD) operations<br />
Essentially, installing utility tunnels using the HDD technique comprises the following three stages:<br />
• In the first stage a pilot bore is made from the point of attack in the direction of the exit point.<br />
The steerable drill string made up of individual drill rods is conducted along the target route by a<br />
guidance system located directly behind the cutterhead.<br />
• During the drilling process a bentonite suspension is pumped to the nozzles fitted to the<br />
cutterhead where it excavates the native soil hydraulically. The bentonite mixes with the<br />
excavated soil and flows back through the annulus between the drill rods and the bore hole to<br />
the point of attack at the surface, where it is processed by a separation plant and returned to<br />
the drilling cycle.<br />
• In order to increase the diameter of the pilot bore hole in the second stage, the pilot cutterhead<br />
is removed at the exit point and a so-called muck bucket lips is attached to the drill rod. As the<br />
drill string is retracted, the diameter of the bore hole is enlarged with the help of the muck<br />
bucket lips. All the muck bucket lips are fitted with nozzles and excavation tools in order to<br />
excavate the soil both hydraulically and mechanically. A mixture of water and bentonite or other<br />
additives can be used dependent on soil conditions in order to stabilize the bore hole and<br />
reduce friction forces. In the third stage the prefabricated and pipelines that have been checked<br />
are retracted.<br />
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• The front part of the pipeline laid out in front of the bore hole is lifted to line up with the exit<br />
angle of the bore hole in order to keep outside the minimum bend radius. The pipeline is<br />
retracted section by section from the rig behind a muck bucket lips and in this way reaches its<br />
final position in the soil.<br />
HDD technology can be used in this way in geological conditions ranging from soft to very hard<br />
formations.<br />
4.6.8 Hydrostatic Testing<br />
Before the pipeline is put into service, the entire length of the pipeline is pressure tested using water.<br />
The hydrostatic test is the final construction quality assurance test. There are very detailed<br />
requirements for this test and the pipeline may be divided into sections depending on the varying<br />
elevation of the terrain along the route and the availability of water used in the testing.<br />
Each section is filled with water and pressured up to a level higher than the maximum operating<br />
pressure. The test pressure is held for a specific period of time to determine if it meets the design<br />
strength requirements and if any leaks are present. Once a test section successfully passes the<br />
hydrostatic test, water is emptied from the pipeline and disposed of in accordance with regulatory<br />
requirements. The pipeline is then dried to assure it has no water in it before gas is put into the<br />
pipeline.<br />
4.6.9 Site Restoration<br />
Once the pipeline has been installed and covered, extensive efforts are taken to restore the pipeline's<br />
pathway to its original state, or to mitigate any environmental or other impacts that may have occurred<br />
during the construction process. These steps often include replacing topsoil, fences, irrigation canals,<br />
and anything else that may have been removed or upset during the construction process.<br />
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Figure 4-67. Restoration of pipeline right-of-way<br />
The restoration crew carefully grades the right-of-way. In hilly areas, the crew installs erosion<br />
prevention measures such as interceptor dikes, which are small earthen mounds constructed across the<br />
right-of-way to divert water.<br />
The restoration crew also installs riprap, consisting of stones or timbers, along streams and wetlands to<br />
stabilize soils. As a final measure, the crew may plant seed and mulch the construction right-of-way, to<br />
ensure the foliage and grassland is restored as close as possible to its original condition. The pipeline<br />
operator maintains an obligation to maintain the right-of-way in as long as the pipeline is in-service.<br />
4.6.10 Pipeline Inspection<br />
In order to ensure the efficient and safe operation of the extensive network of natural gas pipelines,<br />
pipeline companies routinely inspect their pipelines for corrosion and defects. This is done through the<br />
use of sophisticated pieces of equipment known as ‘smart pigs.’ Smart pigs are intelligent robotic<br />
devices that are propelled down pipelines to evaluate the interior of the pipe. Smart pigs can test pipe<br />
thickness, and roundness, check for signs of corrosion, detect minute leaks, and any other defect along<br />
the interior of the pipeline that may either impede the flow of gas, or pose a potential safety risk to the<br />
operation of the pipeline. Sending a smart pig down a pipeline is fittingly known as 'pigging' the<br />
pipeline.<br />
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Figure 4-68. Pigging inspection tool<br />
Pipelines are designed with spools of pipe that are referred to as “pig launchers” which are located<br />
along the pipeline to facilitate the testing and cleaning of the pipeline with pigs.<br />
Figure 4-69. Pig launchers<br />
4.6.11 Pipeline Safety<br />
Pipeline safety is a critical component of operating a pipeline. In addition to monitoring the pipelines for<br />
corrosion, companies are on constant alert to damage to their pipelines caused by others. Unauthorized<br />
construction and digging are the primary causes of damage to pipelines. Pipeline operators employ a<br />
number of safety precautions along their route:<br />
• Aerial Patrols - Planes are used to ensure no construction activities are taking place too close to<br />
the route of the pipeline, particularly in residential areas.<br />
• Leak Detection - Natural gas detecting equipment is periodically used by pipeline personnel on<br />
the surface to check for leaks. This is especially important in areas where the natural gas is not<br />
odorized.<br />
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• Pipeline Markers - Signs on the surface above natural gas pipelines indicate the presence of<br />
underground pipelines to the public, to reduce the chance of any interference with the pipeline.<br />
• Gas Sampling - Routine sampling of the natural gas in pipelines ensures its quality, and may also<br />
indicate corrosion of the interior of the pipeline, or the influx of contaminants.<br />
• Preventative Maintenance - This involves the testing of valves and the removal of surface<br />
impediments to pipeline inspection.<br />
• Emergency Response - Pipeline companies have extensive emergency response teams that train<br />
for the possibility of a wide range of potential accidents and emergencies.<br />
• The One Call Program – The pipeline industry has instituted what is known as a 'one call'<br />
program, which provides excavators, construction crews, and anyone interested in digging into<br />
the ground around a pipeline with a single phone number that may be called when any<br />
excavation activity is planned. This call alerts the pipeline company, which may flag the area, or<br />
even send representatives to monitor the digging.<br />
Figure 4-70. Markers along pipeline right-of-way<br />
4.7 Waste Management<br />
The management of wastes associated with drilling and production of shale gas is an important element<br />
in any development program. Industry associations, regulatory agencies and Operators have worked<br />
collaboratively to develop guidelines for waste management plans which include waste minimization as<br />
an integral part of the plan. The steps recommended for development of plan include:<br />
• Company management approval and commitment<br />
• Identification of area for which plan is developed<br />
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• Regulatory analysis<br />
• Waste identification<br />
• Waste classification<br />
• Waste disposal options<br />
• Waste minimization<br />
• Selection of preferred waste management practices<br />
• Creation of a formal written plan<br />
• Periodic review and update of plan<br />
The identification and refinement of best management practices (BMPs) for the management of wastes<br />
has been a long-term focus of the oil & gas industry.<br />
4.7.1 Waste Streams<br />
The two primary waste streams of gas development are water and drilling fluids.<br />
4.7.2 Fracing Fluids<br />
The hydraulic fracture process itself requires millions of gallons of water-based fracturing fluids mixed<br />
with proppant materials are pumped in a controlled and monitored manner into the target shale<br />
formation above fracture pressure.<br />
The fracturing fluids used for gas shale stimulations consist primarily of water but also include a variety<br />
of additives. The number of chemical additives used in a typical fracture treatment varies depending on<br />
the conditions of the specific well that is being fractured. A typical fracture treatment will use very low<br />
concentrations of between 3 and 12 additive chemicals depending on the characteristics of the water<br />
and the shale formation being fractured. Each component serves a specific, engineered purpose. The<br />
predominant fluids currently being used for fracture treatments in the gas shale plays are water-based<br />
fracturing fluids mixed with friction‐reducing additives and the process is referred to as a “slickwater<br />
frac”.<br />
The addition of friction reducers allows fracturing fluids and proppant to be pumped to the target zone<br />
at a higher rate and reduced pressure than if water alone were used. In addition to friction reducers,<br />
other additives include: biocides to prevent microorganism growth and to reduce bio fouling of the<br />
fractures; oxygen scavengers and other stabilizers to prevent corrosion of metal pipes; and acids that<br />
are used to remove drilling mud damage within the near wellbore area. These fluids are used not only<br />
to create the fractures in the formation but also to carry a propping agent (typically silica sand) which is<br />
deposited in the induced fractures.<br />
The make‐up of fracturing fluid varies from one geologic basin or formation to another. Evaluating the<br />
relative volumes of the components of a fracturing fluid reveals the relatively small volume of additives<br />
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that are present. The additives depicted on the right side of the pie chart represent less than 0.5% of<br />
the total fluid volume. Overall the concentration of additives in most slickwater fracturing fluids is a<br />
relatively consistent 0.5% to 2% with water making up 98% to 99.5%.<br />
Figure 4-71. Graph of fracing fluid composition<br />
Because the make-up of each fracturing fluid varies to meet the specific needs of each area, there is no<br />
one-size-fits-all formula for the volumes for each additive. In classifying fracturing fluids and their<br />
additives, it is important to realize that service companies that provide these additives have developed a<br />
number of compounds with similar functional properties to be used for the same purpose in different<br />
well environments. The difference between additive formulations may be as small as a change in<br />
concentration of a specific compound. Although the hydraulic fracturing industry may have a number of<br />
compounds that can be used in a hydraulic fracturing fluid, any single fracturing job would only use a<br />
few of the available additives. It is not uncommon for some fracturing recipes to omit some compound<br />
categories if their properties are not required for the specific application.<br />
Most industrial processes use chemicals and almost any chemical can be hazardous in large enough<br />
quantities or if not handled properly. Even chemicals that go into our food or drinking water can be<br />
hazardous. For example, drinking water treatment plants use large quantities of chlorine.<br />
When used and handled properly, it is safe for workers and near‐by residents and provides clean, safe<br />
drinking water for the community. Although the risk is low, the potential exists for unplanned releases<br />
that could have effects on human health and the environment. By the same token, hydraulic fracturing<br />
uses a number of chemical additives that could be hazardous, but are safe when properly handled<br />
according to requirements and long‐standing industry practices. In addition, many of these additives are<br />
common chemicals which people regularly encounter in everyday life.<br />
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Table 4-13. Fracturing Fluid Additives, Main Compounds, and Common Uses<br />
Additive Type Main Compound Purpose Common Use of Main<br />
Compound<br />
Diluted Acid (15%) Hydrochloric acid or<br />
muriatic acid<br />
Help dissolve minerals and<br />
initiate cracks in the rock<br />
Swimming pool chemical<br />
and cleaner<br />
Biocide Glutaraldehyde Eliminates bacteria in the<br />
water that produce<br />
corrosive byproducts<br />
Breaker Ammonium persulfate Allows a delayed break<br />
down of the gel polymer<br />
chains<br />
Corrosion Inhibitor N,n‐dimethyl formamide Prevents the corrosion of<br />
the pipe<br />
Crosslinker Borate salts Maintains fluid viscosity as<br />
temperature increases<br />
Friction Reducer Polyacrylamide Minimizes friction<br />
between the fluid and the<br />
pipe<br />
Gel<br />
Guar gum or hydroxyethyl Thickens the water in<br />
cellulose<br />
order to suspend the sand<br />
Iron Control Citric acid Prevents precipitation of<br />
metal oxides<br />
KCl Potassium chloride Creates a brine carrier<br />
fluid<br />
Oxygen Scavenger Ammonium bisulfite Removes oxygen from the<br />
water to protect the pipe<br />
from corrosion<br />
pH Adjusting Agent Sodium or potassium Maintains the<br />
carbonate<br />
effectiveness of other<br />
components, such as<br />
crosslinkers<br />
Proppant Silica, quartz sand Allows the fractures to<br />
remain open so the gas<br />
can escape<br />
Scale Inhibitor Ethylene glycol Prevents scale deposits in<br />
the pipe<br />
Surfactant Isopropanol Used to increase the<br />
viscosity of the fracture<br />
fluid<br />
Disinfectant; sterilize<br />
medical and dental<br />
equipment<br />
Bleaching agent in<br />
detergent and hair<br />
cosmetics, manufacture of<br />
household plastics<br />
Used in pharmaceuticals,<br />
acrylic fibers, plastics<br />
Laundry detergents, hand<br />
soaps, and cosmetics<br />
Water treatment, soil<br />
conditioner<br />
Cosmetics, toothpaste,<br />
sauces, baked goods, ice<br />
cream<br />
Food additive, flavoring in<br />
food and beverages;<br />
Lemon Juice ~7% Citric<br />
Acid<br />
Low sodium table salt<br />
substitute<br />
Cosmetics, food and<br />
beverage processing,<br />
water treatment<br />
Washing soda, detergents,<br />
soap, water softener, glass<br />
and ceramics<br />
Drinking water filtration,<br />
play sand, concrete, brick<br />
mortar<br />
Automotive antifreeze,<br />
household cleansers, and<br />
de‐ icing agent<br />
Glass cleaner,<br />
antiperspirant, and hair<br />
color<br />
Note: The specific compounds used in a given fracturing operation will vary depending on company preference, source water<br />
quality and site‐specific characteristics of the target formation. The compounds shown above are representative of the major<br />
compounds used in hydraulic fracturing of gas shales.<br />
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The Table above provides a summary of the additives, their main compounds, the reason the additive is<br />
used in a hydraulic fracturing fluid, and some of the other common uses for these compounds.<br />
Hydrochloric acid (HCl) is the single largest liquid component used in a fracturing fluid aside from water;<br />
while the concentration of the acid may vary, a 15% HCl mix is a typical concentration. A 15% HCl mix is<br />
composed of 85% water and 15% acid, therefore, the volume of acid is diluted by 85% with water in its<br />
stock solution before it is pumped into the formation during a fracturing treatment. Once the entire<br />
stage of fracturing fluid has been injected, the total volume of acid in a typical fracturing fluid for shale<br />
frac would be 0.123%, which indicates the fluid had been diluted by a factor of 122 times before it is<br />
pumped into the formation. The concentration of this acid will only continue to be diluted as it is<br />
further dispersed in additional volumes of formation water that may be present in the subsurface.<br />
Furthermore, if this acid comes into contact with carbonate minerals in the subsurface, it would be<br />
neutralized by chemical reaction with the carbonate minerals producing water and carbon dioxide as a<br />
byproduct of the reaction.<br />
4.7.3 Flowback Water<br />
After a hydraulic fracture treatment, when the pumping pressure has been relieved from the well, the<br />
water‐based fracturing fluid, mixed with any natural formation water present, begins to flow back<br />
through the well casing to the wellhead. This flowback water may also contain dissolved constituents<br />
from the formation itself. The dissolved constituents are naturally occurring compounds and may vary<br />
from one shale play to the next or even by area within a shale play. Initial produced water can vary from<br />
fresh (
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Figure 4-72. Samples of flowback and produced water<br />
4.7.4 Produced Water<br />
It is estimated that 97% + of the oil & gas waste generated (by volume) is produced water. After initial<br />
gas production begins to flow to the wellhead, the formation water is brought to the surface with the<br />
gas and is referred to as produced water.<br />
This natural formation water has been in contact with the reservoir formation for millions of years and<br />
contains minerals native to the reservoir rock. The salinity, TDS, and overall quality of formation water<br />
vary by geologic basin and specific rock strata. Produced water can vary from brackish (5,000 ppm to<br />
35,000 ppm TDS), to saline (35,000 ppm to 50,000 ppm TDS), to supersaturated brine (50,000 ppm to<br />
>200,000 ppm TDS) and some operators report TDS values greater than 400,000 ppm. The variation in<br />
composition changes primarily with changes in the natural formation water chemistry.<br />
Treatment of produced water may be feasible through either self‐contained systems at well sites or<br />
commercial treatment facilities. Re‐use of fracturing fluids is being evaluated by service companies and<br />
operators to determine the degree of treatment and make‐up water necessary for re‐use. The practical<br />
use of on‐site, self‐ contained treatment facilities and the treatment methods employed will be dictated<br />
by flow rate and total water volumes to be treated, constituents and their concentrations requiring<br />
removal, treatment objectives and water reuse or discharge requirements. In some cases it would be<br />
more practical to first treat the water to a quality that could be reused for a subsequent hydraulic<br />
fracturing job, or other industrial use, rather than treating to discharge to a surface water body or for<br />
use as drinking water.<br />
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In Section 6.2 – Comprehensive Water Management, we presented detailed information about water<br />
treatment options and their costs.<br />
4.7.5 Naturally Occurring Radioactive Material (NORM)<br />
Some soils and geologic formations contain low levels of radioactive material. This naturally occurring<br />
radioactive material (NORM) emits low levels of radiation, to which everyone is exposed on a daily basis.<br />
Radiation from natural sources is also called background radiation.<br />
In addition to the background radiation at the earth’s surface, NORM can also be brought to the surface<br />
in the natural gas production process. When NORM is associated with oil and natural gas production, it<br />
begins as small amounts of uranium and thorium within the rock. These elements, along with some of<br />
their decay elements, notably radium226 and radium228, can be brought to the surface in drill cuttings<br />
and produced water. Radon222, a gaseous decay element of radium, can come to the surface along with<br />
the shale gas.<br />
When NORM is brought to the surface, it remains in the rock pieces of the drill cuttings, remains in<br />
solution with produced water, or, under certain conditions, precipitates out in scales or sludges. The<br />
radiation from this NORM is weak and cannot penetrate dense materials such as the steel used in pipes<br />
and tanks.<br />
Figure 4-73. Drilling pipe can become NORM contaminated<br />
The principal concern for NORM in the oil and gas industry is that, over time, it can become<br />
concentrated in field production equipment and as sludge or sediment inside tanks and process vessels<br />
that have an extended history of contact with formation water. Because the general public does not<br />
come into contact with oilfield equipment for extended periods, there is little exposure risk from oilfield<br />
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NORM. Studies have shown that exposure risks for workers and the public are low for oil and gas<br />
operations.<br />
The handling (re-use) and disposal of NORM‐contaminated equipment, produced water, and oil‐field<br />
wastes should be performed in compliance with Dutch regulations. While NORM may be encountered<br />
in shale gas operations, there is negligible exposure risk for the general public and there are well<br />
established regulatory programs that ensure public and worker safety.<br />
4.7.6 Pollution Prevention<br />
The best way to reduce pollution is to prevent it in the first place. The oil & gas industry has been<br />
aggressively implementing pollution prevention procedures that improve efficiency and increase profits,<br />
while at the same time minimizing environmental impacts.<br />
Within the O&G, when discussing pollution prevention you’ll consistently hear the phrase – Reduce,<br />
Replace, and Re-use:<br />
• Reduce – develop processes, practices or products or eliminate the generation of pollutants and<br />
wastes<br />
• Replace – look for alternative products (substitution and composition) which have less of an<br />
environmental impact<br />
• Re-use – once is never enough – look for opportunities to recycle O&G waste<br />
4.7.7 Best Management Practices (BMPs)<br />
Utilizing BMPs to contain, control and clean up fluids used throughout drilling and collection operations<br />
helps to minimize the potential for reportable spills and adverse environmental impact, and mitigate any<br />
possible contamination from these processes.<br />
Numerous industry groups recommend that spill prevention, response and clean-up procedures for<br />
storing oils, chemicals and other fluids be part of the Standard Operating Procedures (SOP) manual at all<br />
sites. These recommended practices include using dikes and walls around tanks, using secondary<br />
containment basins and liners, and using absorbents between sites and surface waters.<br />
In the Marcellus Shale Coalition's (MSC) Best Practices for Drilling and Well Construction & Best Practices<br />
Well Completion and Work-over Operations documents, the following recommendations are made:<br />
• Waste management strategy should include storage containment, spill contingency plans,<br />
transfer and disposal procedures<br />
• Secondary containment should be provided for fuel storage containers and areas<br />
• Drilling fluid tanks and manifolds should be considered for placement inside lined secondary<br />
containment areas<br />
• Drilling fluid containment and catchment systems should be considered<br />
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In order to keep sediment and other liquid pollutants (oils, chemicals) out of surface waters, establishing<br />
a perimeter to prevent fluid and sediment migration, and providing containment pads, liners, barriers<br />
and covered storage units is essential.<br />
4.7.8 Stormwater Management Plans<br />
The management of stormwater associated with a rainfall event is a critical component of any pollution<br />
prevention program. The objective of stormwater management is to prevent or mitigate the adverse<br />
impacts related to the conveyance of excessive rates and volumes of stormwater runoff.<br />
The effectiveness of a given stormwater management program is a function of comprehensive planning<br />
and sound engineering design. The intent is to develop a plan which facilitates natural runoff flow<br />
characteristics either by augmenting the infiltration process or by temporarily storing stormwater for<br />
release at controlled rates of discharge. This can be accomplished by implementing stormwater<br />
management techniques which are either structural (detention ponds, pipes, etc.) or nonstructural<br />
(land-use planning to effectively preserve existing vegetation, drainage swales, perviousness, etc.). Both<br />
techniques should be utilized as complementary elements of a management plan.<br />
Figure 4-74. Typical retention basin used for stormwater management<br />
Stormwater plans should include:<br />
• A survey of existing runoff characteristics in small as well as large storms, including the impact of<br />
soils, slopes, vegetation and existing development;<br />
• A survey of existing significant obstructions and their potential impacts;<br />
• An assessment of projected development at the site and the potential impact of runoff quantity,<br />
velocity and quality;<br />
• An analysis of projected development in the flood hazard areas, and its sensitivity to damages<br />
from future flooding or increased runoff;<br />
• Survey of existing drainage problems;<br />
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• A plan site stormwater collection systems and their capacities;<br />
• An assessment of alternative runoff control techniques and their potential benefits; and<br />
• Provisions for periodically reviewing, revising and updating the plan.<br />
Erosion and Sediment Control Plan<br />
Utilizing BMPs to contain, control and clean up fluids used throughout drilling and collection operations<br />
helps to minimize the potential for reportable spills and adverse environmental impact, and mitigate<br />
contamination from these processes.<br />
4.7.9 Erosion and Sediment Control Plan<br />
An Erosion and Sediment Control Plan is intended to help manage the potential impacts from shale gas<br />
development activities upon the natural conditions of the site. Sediments washing into streams are one<br />
of the biggest potential water quality problems associated with construction activities related to shale<br />
gas development projects.<br />
Each plan should be developed with sections addressing the following components:<br />
• Pre-construction Planning<br />
• Overview of Construction Phase Operations<br />
• Diverting Upland Run-off Around Exposed Soils<br />
• Protecting Soils with Seed, Mulch or Other Products<br />
• Using Silt Fences and Other Sediment Barriers<br />
• Protecting Slopes to Prevent Gullies<br />
• Protecting Culverts and Ditch Inlets and Outlets<br />
• Stabilizing Drainage Ditches<br />
• Installing Sediment Traps and Basins<br />
• Protecting Stream Channels, Wetlands and Lakes<br />
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Figure 4-75. Silt fence used as an erosion and sediment control device<br />
4.7.10 Spill Prevention Plans<br />
Operators strive to operate their facilities in a safe and environmentally responsible manner but<br />
recognize that there will be instances in which certain products will be spilled. With that understanding<br />
in mind, they proactively develop spill response plans which they implement when a spill occurs. Some<br />
of the components of these plans include:<br />
• A formal written plan<br />
• Identification of responsibilities<br />
• Regulatory notification requirements<br />
• Emergency contact numbers<br />
• Facility map<br />
• Site inventory of possible hazards<br />
• Spill containment procedures<br />
• Sampling of media (air, water & soils) procedures<br />
• Pre-qualification of emergency response contractors and suppliers<br />
• Training / auditing requirements<br />
• Verification of response activities<br />
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Figure 4-76. Spill response equipment<br />
The implementation of BMPs and the use of the proper spill containment products can help the<br />
Operator limit the impacts of spills and help to quickly clean-up the area should one occur.<br />
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4.8 Well Containment<br />
One of the biggest concerns related to the technologies for developing shale gas wells through the use<br />
of horizontal drilling and hydraulic fracing has to do with the potential for contamination of water<br />
supplies, particularly drinking water aquifers.<br />
The O&G industry places great emphasis on protecting groundwater. Current well construction<br />
requirements consist of installing multiple layers of protective steel casing and cement that are<br />
specifically designed and installed to protect fresh water aquifers and to ensure that the producing zone<br />
is isolated from overlying formations. During the drilling process, a conductor and surface casing string<br />
are set in the borehole and cemented in place. In some instances, additional casing strings may be<br />
installed; these are known as intermediate casings. After each string of casing is set, and prior to drilling<br />
any deeper in the borehole, the casing is cemented to ensure a seal is provided between the casing and<br />
formation or between two strings of casing.<br />
This illustration depicts how the casing and cement that may be installed in shale gas wells and<br />
highlights how the casing can be set to isolate different water‐ bearing zones from each other.<br />
Figure 4-77, Diagram of well casing for horizontal well<br />
The drawing shows the multiple strings of casing, layers of cement and the production tubing, which are<br />
all important parts of the well completion in preventing contamination of fresh water zones and<br />
assuring that the gas resource does not flow into other, lower pressure zones around the outside of the<br />
casing rather than flowing up the well to be produced and sold.<br />
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The conductor casing serves as a foundation for the well construction and prevents caving of surface<br />
soils. The surface casing is installed to seal off potential freshwater bearing zones. This isolation is<br />
necessary in order to protect aquifers from drilling mud and produced fluids. As a further protection of<br />
the fresh water zones, air‐rotary drilling is often used when drilling through this portion of the wellbore<br />
interval to ensure that no drilling mud comes in contact with the fresh water zone. Intermediate<br />
casings, when installed, are used to isolate non‐ freshwater‐bearing zones from the producing wellbore.<br />
Intermediate casing may be necessary because of a naturally over‐pressured zone or because of a<br />
saltwater zone located at depth. The borehole area below an intermediate casing may be un-cemented<br />
until just above the kickoff point for the horizontal leg. This area of wellbore is typically filled with<br />
drilling muds.<br />
Each string of casing serves as a layer of protection separating the fluids inside and outside of the casing<br />
and preventing each from contacting the other. Operators perform a variety of checks to ensure that<br />
the desired isolation of each zone is occurring including ensuring that the casing used has sufficient<br />
strength, and that the cement has properly bonded to the casing. These checks may include acoustic<br />
cement bond logs and pressure testing to ensure the mechanical integrity of casings. Additionally,<br />
regulatory agencies often specify the required depth of protective casings and regulate the time that is<br />
required for cement to set prior to additional drilling. These requirements are typically based on<br />
regional conditions and are established for all wildcat wells and may be modified when field rules are<br />
designated. Once the casing strings are run and cemented there could be five or more layers or barriers<br />
between the inside of the production tubing and a water‐bearing formation (fresh or salt).<br />
4.8.1 API Research<br />
Analysis of the redundant protections provided by casings and cements was presented in a series of<br />
reports and papers prepared for the American Petroleum Institute (API) in the 1980s. These<br />
investigations evaluated the level of corrosion that occurred in Class II injection wells. Class II injection<br />
wells are used for the routine injection of water associated with oil and gas production. The research<br />
resulted in the development of a method of calculating the probability (or risk) that fluids injected into<br />
Class II injection wells could result in an impact to drinking water. This research started by evaluating<br />
data for oil and gas producing basins to determine if there were natural formation waters present that<br />
were reported to cause corrosion of well casings. The United States was divided into 50 basins, and<br />
each basin was ranked by its potential to have a casing leak resulting from such corrosion<br />
Detailed analysis was performed for those basins in which there was a possibility of casing corrosion.<br />
Risk probability analysis provided an upper bound for the probability of the fracturing fluids reaching an<br />
underground source of drinking water. Based on the values calculated, a modern horizontal well<br />
completion in which 100% of the USDWs are protected by properly installed surface casings (and for<br />
geologic basins with a reasonable likelihood of corrosion), the probability that fluids injected at depth<br />
could impact a USDW would be between 2 x 10‐ 5 (one well in 200,000) and 2 x 10‐ 8 (one well in<br />
200,000,000) if these wells were operated as injection wells. Other studies in the Williston basin found<br />
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that the upper bound probability of injection water escaping the wellbore and reaching an underground<br />
source of drinking water is seven chances in one million well‐years where surface casings cover the<br />
drinking water aquifers.<br />
These values do not account for the differences between the operation of a shale gas well and the<br />
operation of an injection well. An injection well is constantly injecting fluid under pressure and thus<br />
raises the pressure of the receiving aquifer, increasing the chance of a leak or well failure. A production<br />
well is reducing the pressure in the producing zone by giving the gas and associated fluid a way out,<br />
making it less likely that they will try to find an alternative path that could contaminate a fresh water<br />
zone. Furthermore, a producing gas well would be less likely to experience a casing leak because it is<br />
operated at a reduced pressure compared to an injection well. It would be exposed to lesser volumes of<br />
potentially corrosive water flowing through the production tubing, and it would only be exposed to the<br />
pumping of fluids into the well during fracture stimulations.<br />
The API study included an analysis of wells that had been in operation for many years when the study<br />
was performed in the late 1980s, and does not account for advances that have occurred in equipment<br />
and applied technologies and changes to the regulations. As such, a calculation of the probability of any<br />
fluids, including hydraulic fracture fluids, reaching a USDW from a gas well would indicate an even lower<br />
probability; perhaps by as much as two to three orders of magnitude. The API report came to another<br />
important conclusion relative to the probability of the contamination of a USDW when it stated that:<br />
For injected water to reach a USDW in the 19 identified basins of concern, a number of independent<br />
events must occur at the same time and go undetected. These events include simultaneous leaks in the<br />
[production] tubing, production casing, [intermediate casing,] and the surface casing coupled with the<br />
unlikely occurrence of water moving long distances up the borehole past salt water aquifers to reach a<br />
USDW.<br />
As indicated by the analysis conducted by API and others, the potential for groundwater to be impacted<br />
by injection is low. It is expected that the probability for treatable groundwater to be impacted by the<br />
pumping of fluids during hydraulic fracture treatments of newly installed, deep shale gas wells when a<br />
high level of monitoring is being performed would be even less than the 2 x 10‐ 8 estimated by API.<br />
In addition to the protections provided by multiple casings and cements, there are natural barriers in the<br />
rock strata that act as seals holding the gas in the target formation. Without such seals, gas and oil<br />
would naturally migrate to the earth surface.<br />
A fundamental precept of oil and gas geology is that without an effective seal, gas and oil would not<br />
accumulate in a reservoir in the first place and so could never be tapped and produced in usable<br />
quantities. These sealing strata also act as barriers to vertical migration of fluids upward toward useable<br />
groundwater zones.<br />
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Figure 4-78. Representation of drinking water tables in relation to shale gas drilling operations<br />
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5 Summary and Recommendations<br />
<strong>EBN</strong> and all other operators need to consider a strategy how to develop Shale Gas prospects with a<br />
public acceptance and following all the necessary environmental regulations and laws.. Furthermore, we<br />
strongly recommend <strong>EBN</strong> to work out a more detailed and comprehensive well plan, i.e. perform<br />
collaborative well planning on both Boxtel and Haaren wells to seek a technical optimal and socially and<br />
environmentally acceptable placement of the wells.<br />
G&G Summary<br />
All available well evaluation data, mudlogs, sample analysis, and petrophysical well logs, support the<br />
conclusion that the Posidonia and Aalburg shales are organic rich source shales. Of the two, the<br />
Posidonia looks to have the best chance of being oil or gas condensate productive because it<br />
demonstrates higher effective porosity. It also exhibits a much lower structural dip than the Aalburg.<br />
That relatively flat dip is required for any kind of potential horizontal well development.<br />
Calculated mechanical properties of the Posidonia support it being a very soft and ductile shale that,<br />
while easy to frac, will make it difficult to establish a lot of effective conductivity by induced fracture<br />
complexity. Proppant conductivity can also be severely compromised by fines embedment in such a soft<br />
shale if subjected to very high differential draw down pressures.<br />
The wild card for enhanced productivity, even though it is a soft shale, appears to be the fact that the<br />
Posidonia overlays a series of numerous faults in a very tectonically active geologic basin. The stress field<br />
generated from these faults immediately below the optimum porosity interval should result in a shale<br />
that is potentially naturally fractured with enough fracture aperture for enhanced fluid delivery and<br />
migration. The existence of the lower faults also will prove to be a geo-hazard if not mapped adequately<br />
prior to horizontal development.<br />
A small number of vertical test, or pilot, wells drilled expressly for evaluation of the Posidonia & Aalburg<br />
shales should be drilled prior to a full-on horizontal development project. A complete modern shale<br />
petrophysical analysis should be performed that would link full core data with modern geochemical well<br />
logs and three dimensional stress measurements for optimum target delineation and optimized fracture<br />
design.<br />
Vertical well(s) and/or test horizontal well(s) should also be test fractured to establish exact pore<br />
pressure, closure stress, and leakoff parameters for optimized fracture design in a development phase.<br />
Many of the techniques discussed in this paper have proven successful in North America.<br />
With this being said, the completion recommendation for <strong>EBN</strong> is to adopt the third technique – coiledtubing<br />
assisted fracturing and more specifically HydraJetting via coiled-tubing. This method facilitates<br />
stimulating multiple shale intervals with less than half the hydraulic horsepower requirements and a<br />
significantly reduced footprint compared with other currently popular completion methods. This<br />
technology has significant potential because coiled tubing and HWO units are available in Europe. The<br />
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pinpoint stimulation coiled-tubing method is environmentally friendly from a surface standpoint as its<br />
HHP, footprint, and water usage is much lower than the other two primary completion methods while<br />
maintaining its competitive performance.<br />
Hydraulic Fracture Design Summary<br />
(Refer to 3.2.4 Hydraulic Fracture Summary and Recommendations)<br />
Production Forecasting Summary<br />
(Refer to 3.3.3 Summary and Recommendations)<br />
Drilling Summary<br />
<strong>Final</strong> lateral lengths for planning need to be finalized based on the economic frac intervals required for a<br />
successful horizontal well.<br />
Well designs other than the standard vertical, build and horizontal need to be agreed on.<br />
The kick off points (KOPs) are presently being planned from 2150m to 2900m. The more complex well<br />
designs are feasible but require the KOPs to be higher in the well.<br />
Additional pad location screening needs to be carried out to determine acceptable definitive pad<br />
locations for further use in planning.<br />
Completion Summary<br />
The most common completion techniques seen in shale gas completion in the United States today are:<br />
• Plug and perf technique using drillable bridge plugs for isolation;<br />
• Ball drop or remote actuated sliding sleeve completions using open-hole packers in<br />
uncemented applications or cemented into place; and<br />
• Coiled-tubing assisted fracturing using HydraJet perforating and sand plugs for zone isolation.<br />
Transporting these techniques across the Atlantic into the European market may not be a very<br />
straightforward process. The concern with two of those three methods (plug and perf and sliding<br />
sleeves) is that they generally require very high pump rates and significant amounts of fracturing<br />
horsepower on location.<br />
One additional limitation that needs to be addressed for the European market is also rig availability.<br />
One estimate is that nearly 75% of the service industry’s global pressure-pumping equipment currently<br />
resides in North America. This could potentially have a large impact on shale play from exploration to<br />
development progress in Europe.<br />
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