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Ohio Horizontal Well Sites: Past History and
Future Regulations
Source: ALL 2014
Authors: Blake Arthur, PE , Kevin Shepard, PE,
and J. Daniel Arthur, P.E., SPEC,
ALL Consulting
Introduction
• 27 Horizontal Drilling Rigs
& 10 Conventional Rigs (Mar-2015)
• 64000 Oil and Gas wells
Source: Ohio Oil and Gas Association (OOGA), 2014
Source: Ohio Department of Natural
Resources (ODNR) – Division of Oil and
Gas (DOGRM), 2013
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Utica Well Activity in Ohio
Source: DOGRM, 2014
May 5, 2015
3
Ohio Well Pad Activity (As of Nov. 2014)
• 12-18 Companies Building Well Pads
• 150-200 Well Pads planned for 2015
• 178 Well Pads with Producing Utica
Wells
• 300 Well Pads with Permitted Only Utica
Wells
• 30 Well Pads with Stratigraphic Tests
***ALL was involved with the design or construction of 86 well
pads in 2014, while operating within the draft well pad rules.***
May 5, 2015
Source: ALL Consulting
4
Ohio Department of Natural Resources
Division of Oil and Gas
• Ohio Department of Natural Resources’ (ODNR) unique role in the oil &
gas industry defined in Ohio Revised Code - 1509.02
“There is hereby created in the department of natural resources the division of
oil and gas resources management, which shall be administered by the chief of the
division of oil and gas resources management. The division has sole and exclusive
authority to regulate the permitting, location, and spacing of oil and gas wells and
production operations within the state… ”
• Except for all of the other agencies:
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Evolving Regulations
In Response to Horizontal Shale Development:
• Senate Bill 315 - 2012
• Well Construction Rules – 2012
• House Bill 59 - 2013
• House Bill 64 – 2015 (New Budget Bill)
Current Division Rule Making
• Horizontal Well Site Construction
– Submitted to Common Sense Initiative (CSI) February 2014
– Joint Committee on Agency Rule Review (JCARR) in 2015
• Waste Facilities
– Rule making mandated by House Bill 59
• SPCC (Spill Prevention, Control, and Countermeasure Plans)
– Proposed state role in containment oversight
• Simultaneous Operations
– Specify drilling practices while drilling adjacent to producing wells.
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• Function of Lieutenant Governor’s Office
• Reviews for Business Impact
• Process takes 30-60+ days depending on
complexity of the rule.
Source: Governor’s Office, 2014
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• Reviews for compliance with 6 state-mandated “prongs”
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History of the Well Pad Rule
Mapped extents
of the Utica
Upshur-Guernsey-Westmoreland
landslide prone soils
Mine impacted lands
Source: DOGRM, 2014
May 5, 2015
10
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Rule Process: 1501:9-02-02
Construction
Application
Submittal
3 years (max)
10 + 15 days
(Review + Sched)
Construction
Certification
Production
Landowner
Waiver
2 years (max)
No
Site Review
30 days
(Tech Review)
Application
Approval
Spud
Yes
Yes
No
Restoration
Site Release
(Non-O&G)
If certification is not maintained, prior to spudding, restoration or landowner waiver acceptable to the Chief is required.
Sediment and Erosion Controls
• Sediment and erosion control
design can prevent installation
and maintenance difficulties.
• Specific design criteria by
manufacturer and ODNR Division
of Soil and Water.
Source: DOGRM, 2014
May 5, 2015
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Bearing Capacity
• Example: Saturated mine spoils in
subgrade caused rig-down and
installation of micro-piles and
grade beams.
• Geotechnical drilling and planning
provides stable foundation.
Source: DOGRM, 2014
May 5, 2015
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Slope Stability
• Unstable soils can cause
catastrophic land slides. These
are very costly and time intensive
to repair.
• Proper design provides safety
factor for long-term stability.
Source: DOGRM, 2014
May 5, 2015
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Stormwater Capture System
• When problems migrate offsite,
other regulatory agencies become
involved including:
– Army Corps of Engineers
– Ohio and U.S. Environmental
Protection Agencies
– US Fish and Wildlife
May 5, 2015
Source: DOGRM, 2014
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Record Drawings
• Critical for decision making during
emergencies.
– No record drawings led to questions
after the fire.
– Where to sample?
– What is contaminated?
– What might slip?
May 5, 2015
Source: DOGRM, 2014
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Modifications
•
•
•
•
This rule is unique – no longer “drilling permit and go”.
Engineered plans must be approved prior to construction.
Requires performance measures during construction.
Requires plan modifications to be approved by the Division
of Oil and Gas Resources Management (DOGRM).
Source: ALL Consulting, 2014
May 5, 2015
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Certification
• The rule requires certification by the professional engineer.
– This requires construction oversight
– Ohio Revised Code 4733 describes obligations of engineer
– “… the well site was constructed in reasonably close conformity with
the approved application…”
Source: DOGRM, 2014
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Source: ALL Consulting, 2014
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Construction Plans
Source: ALL Consulting, 2014
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Geotechnical Report
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Unforeseen Conditions
• Small unmapped
mine on the #8 coal
seam uncovered
during excavation
• No map of mine from
ODNR or voids
encountered during
geotechnical
investigation
Mine Entry
Source: ALL Consulting, 2014
May 5, 2015
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Construction Oversight
• Working with design
team remotely.
• Managed coal resource
for landowner.
• Developed cost
effective plan for
operator.
• Installing engineering
controls for well pad
stability.
Top of Coal
Excavated Face of Mine Void
Source: ALL Consulting, 2014
May 5, 2015
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Coal Permitting
• ODNR Division of
Mineral Resources
Management is
delegated federal
authority for coal
permitting.
• Utilized Federal
Register statutory
language and avoided
lengthy coal
permitting process.
Source: ALL Consulting, 2014
May 5, 2015
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Questions?
Blake Arthur, PE
ALL Consulting, LLC
1718 S. Cheyenne Avenue
Tulsa, OK 74119
[email protected]
www.all-llc.com
Citation Information: Arthur, B., Shepard, Kevin, and J. Daniel Arthur, ALL
Consulting, “Ohio Horizontal Well Sites: Past History and Future Regulations”
May 5, 2015
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