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Cal Hill I February 2012 Hydraulic Fracturing Technical Briefing

ERCB Hydraulic Fracturing Technical Briefing

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On 22 February 2012, Alberta's Energy Resource Conservation Board offered members of the media a technical briefing, or background explainer, on hydraulic fracturing or "fracking." The briefing provided a basis for The Journal's story on Alberta's plans to make public information on fracking materials used at well sites: http://bit.ly/wMUSwO

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Page 1: ERCB Hydraulic Fracturing Technical Briefing

Cal Hill I February 2012

Hydraulic FracturingTechnical Briefing

Page 2: ERCB Hydraulic Fracturing Technical Briefing

The Energy Resources Conservation Board (ERCB)

“A quasi-judicial, arms-lengthbody created by the AlbertaGovernment to ensure that thediscovery, development anddelivery of Alberta's energyresources take place in amanner that is fair, responsibleand in the public interest”

Page 3: ERCB Hydraulic Fracturing Technical Briefing

Statistics

Alberta regulates a world-scale resource infrastructure

12 plants

(32.2 106 tonne/yr)

5 facilities

(240 000 m3/d cap.)

61 In Situ

154 Primary Recovery

20 Experimental Proj.

8 Mines

Coal MinesUpgradersOil Sands

955 (292 sour)394 000 km176 211

Gas PlantsPipelinesProducing Wells

* as of January 2011

Page 4: ERCB Hydraulic Fracturing Technical Briefing

What is Hydraulic Fracturing?

Hydraulic fracturing is used to fracture a geological formation

Fracturing operations typically occur between 650 and 3500 metres below surface

The process allows oil or gas to flow

The ERCB has over 60 years experience regulating hydraulic fracturing

Page 5: ERCB Hydraulic Fracturing Technical Briefing

Why is it Used?

Page 6: ERCB Hydraulic Fracturing Technical Briefing
Page 7: ERCB Hydraulic Fracturing Technical Briefing

Hydraulic Fracturing Types

Vertical wells with fracture stimulation

Horizontal wells with multi-stage fracture stimulation

Page 8: ERCB Hydraulic Fracturing Technical Briefing

Horizontal Wells with Multi-stage Hydraulic Fracture Stimulation

In deep geological formations, horizontal, multi-stage fracturing operations are required to release resources

Vertical wells turn horizontally typically between 650 and 3500 metres below surface

Fractures occur within the horizontal section

Page 9: ERCB Hydraulic Fracturing Technical Briefing

Fracture Fluids

Fracturing fluids are pumped in the target formation under high pressure to force apart rock containing oil and/or gas

Three components offracture fluid1. Carrier: (eg. water)2. Proppant: (eg. sand)3. Additive: (eg. friction reducer)

Page 10: ERCB Hydraulic Fracturing Technical Briefing

Fracture Fluids

The ERCB does not currently mandate the disclosure of fracture fluids

Companies are required to provide fracture fluid information to the ERCB

ERCB requires useof non-toxic fracture fluids above the baseof groundwater protection

Page 11: ERCB Hydraulic Fracturing Technical Briefing

ERCB RegulationsExamples:

- Directive 8: Surface Casing Depth Requirements

- Directive 9: Casing Cementing Requirements

- Directive 20: Well Abandonment

- Directive 27: Shallow fracturing Operations-

Restricted Operations

- Directive 29: Energy and Utility Development

Applications and the Hearing Process

- Directive 31: Guidelines for the Energy Proceeding

Cost Claims

- Directive 35: Baseline Water Well Testing

- Directive 38: Noise Control

- Directive 44: Surveillance of Water Production

in Hydrocarbon Wells

- Directive 50: Drilling Waste Management

- Directive 51: Injection and Disposal Wells

- Directive 55: Storage Requirements

- Directive 56: Energy Development Applications

- Directive 58: Oilfield Waste Management

Requirements for the Upstream Petroleum Industry

- Directive 59: Well Drilling & Completion

Data Filing Requirements Visit www.ercb.ca

Page 12: ERCB Hydraulic Fracturing Technical Briefing

Hydraulic Fracturing and Groundwater Protection

ERCB regulations in place to protect Alberta’s water quality

Hydraulic fracturing restricted within 200 metres of water wells(ERCB Directive 27: Shallow fracturing Operations: Restricted Operations, ERCB Directive 35: Baseline Water Well Testing)

Well casing andcementing regulations(ERCB Directive 8: Surface Casing Depth Requirements, ERCB Directive 9: Casing Cementing Requirements)

Page 13: ERCB Hydraulic Fracturing Technical Briefing

Well Casing and Cementing

Industry is require to abide by strict well casing regulations

Specially designed cement along the entire length of the surface casing

A second steel casing is cemented fully if surface casing does not extendbelow base of groundwater protection

Casing and cement provide impenetrable barriers between fluids in the casing and any useable groundwater

Page 14: ERCB Hydraulic Fracturing Technical Briefing

Hydraulic Fracturing and Groundwater Protection

Regulations that govern the storage and disposal of waste fracture fluids(ERCB Directive 50: Drilling Waste Management, ERCB Directive 51: Injection and Disposal Wells, ERCB Directive 55: Storage Requirements, ERCB Directive 58: Oilfield Waste Management for the Upstream Petroleum Industry)

Page 15: ERCB Hydraulic Fracturing Technical Briefing

Fluid Storageand Treatment

Comprehensive ERCB requirements guide waste fracture fluid handling and disposal at surface

The ERCB strictly forbidsthe use of unlined storage pits as a means to store fluids at the surface

Fluids not recycled or reused must be re-injected and stored in deep rock formations, far below groundwater sources

Page 16: ERCB Hydraulic Fracturing Technical Briefing

Interwellbore Communication

On January 23, 2012, the ERCB issued Bulletin 2012-02: Hydraulic Fracturing: Interwellbore Communication between Energy Wells

The ERCB expects companies to maintain well control atall times

Companies are required to prevent adverse effects on offset wellbores

Page 17: ERCB Hydraulic Fracturing Technical Briefing

Interwellbore Communication

Four confirmed incidents with no impact on groundwater or domestic water wells

ERCB investigatingeach incident

Page 18: ERCB Hydraulic Fracturing Technical Briefing
Page 19: ERCB Hydraulic Fracturing Technical Briefing

Summary - HF

A completion technique designed to improve fluid flow through tight rock

Horizontal wells using multi-stage HF technology target formations hundreds to thousands of meters below useable groundwater

Direct contamination by fluids moving up fractures to groundwater has not been documented

Page 20: ERCB Hydraulic Fracturing Technical Briefing

Summary - HF

Effective wellbore construction requirements and practices necessary

Effective fluid handling and disposal requirements and practices necessary

Page 21: ERCB Hydraulic Fracturing Technical Briefing