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Pennsylvania Pipelines map by FracTracker Alliance

Pennsylvania Pipelines and Pollution Events

When people think about oil and gas extraction in Pennsylvania, they think about the tens of thousands of oil and gas wells in the state. It makes sense, because that’s where the process starts. However, while oil and other liquids can be shipped in tanker trucks, all of the producing gas wells in the state – whether they are small conventional wells or the giants of the Marcellus and Utica – must be connected by a network of pipelines.

Moving hydrocarbons from the well to processing facilities to power plants and residential customers all occurs within this giant midstream system, and the cumulative impact that pipelines have on the state is formidable. Let’s take a closer look at where the oil and gas pipelines are located in PA, their safety records, and major data gaps. Additionally, we’ve made available a detailed, interactive map of Pennsylvania pipelines and other important features such as water crossings.

Pipeline routes are everywhere in Pennsylvania

According to the Pipeline and Hazardous Materials Safety Administration (PHMSA), there were 92,407 miles of pipelines carrying natural gas and liquid petroleum products in Pennsylvania in 2017. That distance is equivalent to 151 round trips between Philadelphia and Pittsburgh on the Pennsylvania Turnpike, or more than three trips around the globe at the equator. This figure includes 78,022 miles of distribution lines (which takes gas from public utilities to consumers), 10,168 miles of transmission lines (which move gas between various processing facilities), 3,111 miles of petroleum liquid routes, and 1,105 miles of natural gas gathering lines (which take the gas from wells to midstream processing facilities).

Of note – The last category’s estimate is almost certainly a drastic underestimation. As of June 7th, there were 3,781 unconventional well pads in Pennsylvania, according the Pennsylvania Department of Environmental Protection (DEP), and all of the pads need to be connected to gathering lines. A 2014 report by the Nature Conservancy estimates that 19 acres of land are cleared for each well pad, which would work out to 3.1 miles of gathering lines for a typical 50-foot right-of-way. Multiplied out, 3,781 wells pads would require a total of 11,721 miles of gathering lines – well over PHMSA’s estimate of a 1,105 miles (See Table 1 for estimate comparisons).

Table 1. Varying estimates of gathering lines in Pennsylvania.*

Source

Unconventional Well Pads

Average Gathering Line Length (Miles) Statewide Total Estimated Miles
Nature Conservancy 3,781 3.1 11,721
Bradford County 3,781 3.5 13,234
PHMSA  3,781  0.3 1,105

*Estimates based on Nature Conservancy and Bradford County data are based on calculating the average length of segments, then multiplying by the number of well pads in the state to find the statewide total. The PHMSA estimate was calculated in reverse, by dividing the purported total of gathering lines by the number of well pads to find the average mileage.

Early map of gathering lines in Bradford County, PA by FracTracker (Pennsylvania Pipelines)

Figure 1: Location of gathering lines (2014) and oil and gas wells (2018) in Bradford County, Pennsylvania. Note the pockets of newer wells that are not connected to the older gathering line network.

In 2014, the FracTracker Alliance digitized a published map of gathering lines in Bradford County, allowing us to analyze the data spatially (Figure 2). These efforts yield similar results, with gathering lines averaging 3.5 miles in length. Not counting segments of transmission lines included in the data, such as Stagecoach, Sunoco, and Kinder Morgan’s Tennessee Gas Pipeline, there were 1,003 miles of gas gathering lines just in Bradford County in 2014.

Almost all of this data is based only on unconventional oil and gas activity, and therefore ignores the more than 96,000 conventional oil and gas (O&G) wells active in the state. We do not have a reasonable estimate on the average length of gathering line segments are for this network. It is reasonable to assume that they tend to be shorter, as conventional wells are often closer together than unconventional well pads, but they must still network across vast portions of the state.

Table 2. Estimated length of gathering lines for conventional wells in Pennsylvania by variable average lengths

Average Length (Miles) Conventional Wells Total Miles
0.5 96,143 48,072
1.0 96,143 96,143
1.5 96,143 144,215
2.0 96,143 192,286
2.5 96,143 240,358
3.0 96,143 288,429

If the average gathering line for conventional wells in Pennsylvania is at least 1 mile in length, then the total mileage of gathering lines would exceed all other types of gas and petroleum pipelines in the state. Conversely, for the PHMSA figure of 1,105 miles to be accurate, the average gathering line for all conventional wells and unconventional well pads in Pennsylvania would be 0.011 miles, or only about 58 feet long.

Pipelines are dangerous

As pipelines impact residents in many ways, there are numerous reason why communities should try to understand their impacts – including basic planning, property rights, sediment runoff into streams, to name a few. Perhaps the most significant reason, however, is the potential for harmful incidents to occur, which are more common than anyone would like to think (See Table 3). Some of these incidents are quite serious, too.

Table 3. Nationwide pipeline incidents statistics from PHMSA from January 1, 2010 through July 13, 2018

Report Events Fatalities Injuries Explosions Evacuees Total Damages
Gas Distribution 909 92 432 220 16,949 $348,511,528
Gas Transmission / Gathering 1,031 23 94 49 8,557 $1,085,396,867
Hazardous Liquids 3,368 10 24 14 2,467 $2,531,839,207
Grand Total 5,308 125 550 283 27,973 $3,965,747,602

As of the July 13, 2018 download date, the PHMSA report covers 3,116 days.

Incidents Per Day

This means that nationally per day there are 1.7 pipeline incidents, almost 9 people evacuated, and $1,272,704 in damages, including the loss of released hydrocarbons.

On average, there is a fatality every 25 days, an injury every six days, and an explosion every 11 days. The location of those explosions obviously has a lot to do with the casualty count and aggregate property damage.

How do Pennsylvania pipelines hold up? As one might expect from a state with so many pipelines, Pennsylvania’s share of these incidents are significant (See Table 4).

Table 4. Pennsylvania pipeline incidents statistics from PHMSA from January 1, 2010 through July 13, 2018

Report Events Fatalities Injuries Explosions Evacuees Total Damages
Gas Distribution 29 8 19 12 778 $6,769,061
Gas Transmission / Gathering 30 0 2 2 292 $51,048,027
Hazardous Liquids 49 0 0 1 48 $9,115,036
Grand Total 108 8 21 15 1,118 $66,932,124

Within Pennsylvania, an incident is reported to PHMSA every 29 days, an injury or fatality can be expected every 107 days, and the daily average of property damage is $21,480.

The issue with under-reported gathering lines notwithstanding, PHMSA lists Pennsylvania with 92,407 miles of combined gas and hazardous liquid pipelines, which is roughly 3.3% of the nationwide total, and there is no reason to believe that PHMSA’s issue with accounting for gathering lines is unique to the Keystone State.

Just 2% of the total number of incidents are in Pennsylvania. In terms of impacts, however, the state has seen more than its fair share – with 6.4% of fatalities, 3.8% of injuries, 5.3% of explosions, and 3.9% of evacuations. Property damage in Pennsylvania accounts for just 1.7% of the national total, making it the only category examined above for which its share of impacts is less than expected, based on total pipeline miles.

Pipeline location data not widely available

Pipeline data is published from a variety of public agencies, although almost none of it is really accessible or accurate.

For example the Department of Homeland Security (DHS) publishes a number of energy-related datasets. While they do not publish gas pipelines, they do have a 2012 dataset of natural gas liquid routes, which is a significant portion of the hazardous liquid inventory. From an analytical point of view, however, this dataset is essentially worthless. Many of these pipelines are so generalized that they don’t make a single bend for multiple counties, and the actual location of the routes can be miles from where the data are represented. Communities cannot use this as a tool to better understand how pipelines interact with places that are important to them, like schools, hospitals, and residential neighborhoods. The dataset is also incomplete – the original Mariner East natural gas pipeline, which has been around for decades, isn’t even included in the dataset.

Screenshot from PHMSA's public pipeline viewer

Figure 2: This text appears to viewers of PHMSA’s public pipeline viewer.

Another data source is PHMSA’s National Pipeline Mapping System Public Viewer. While this source is rich in content, it has several intentional limitations that thwart the ability of the public to accurately analyze the pipeline network and understand potential impacts:

  1. Data can only be accessed one county at a time, which is impractical for long interstate transmission routes,
  2. Data can not be be downloaded, and
  3. The on-screen representation of the routes disappears when users zoom in too far.

Within Pennsylvania, the Department of Environmental Protection (DEP) maintains the Pennsylvania Pipeline Portal, which contains a lot of information about various recent pipeline projects. However, with the sole exception of the Mariner East II project, the agency does not provide any geospatial data for the routes. The reason for this is explained on the Mariner East II page:

These shapefiles are the GIS data layers associated with the permits that have been submitted for the proposed pipeline project. These shapefiles are not required as part of a permit application and are not commonly submitted but were provided to the Department by Sunoco Pipeline, L.P.

The files were accepted by the Department to aid in the review of the application material given the large scale of the project. The shapefiles ease the review by displaying some information contained in the hardcopy of the plans and application in a different format.

The Department of Conservation and Natural Resources (DCNR) does make oil and gas infrastructure data available, including pipelines, where it occurs on state forest land.

Pennsylvania Pipelines Map

Considering the risks posed by pipelines, their proliferation in Pennsylvania, and this critical juncture in their development with an implicit opportunity to document impacts, FracTracker believes it is important now to develop an accurate interactive statewide map of these projects, fortify it with essential data layers, and facilitate citizen reporting of the problems that are occurring.

Other than the Mariner East II route and the state forest data available from DCNR, all of the pipeline routes on our Pennsylvania Pipeline Map, below, have been painstakingly digitized – either from paper maps, PDFs, or other digital media – to make geospatial data that can analyzed by interacting with other datasets. These layers are only as good as their sources, and may not be exact in some cases, but they are orders of magnitude better than data produced by public agencies such as DHS.

Figure 3: FracTracker’s Pennsylvania Pipeline Map. View fulll screen to explore map further, view water crossings, and other details not visible at the statewide map view.

Data Layers on Pennsylvania Pipelines Map

  • Incidents

    PHMSA incidents (7-13-2018). Pipeline incidents that were reported to the Pipeline and Hazardous Material Safety Administration. These reports contain significant information about the incidents, including location coordinates, and are shown on the map with white circles.

    Note that a few of the location coordinates appear to be erroneous, as two reports appear outside of the state boundary.

  • Spills

    Mariner East II – Inadvertent Returns (6-1-2018). This data layer shows inadvertent returns – or spills – related to the construction of the Mariner East II pipeline. This is a combination of two reports, including one where the spills that impacted waterways, and those categorized as upland spills. These are represented on the map by orange dots that vary in size depending on the amount of fluid that spilled. Some of the locations were provided as latitude / longitude coordinates, while others are estimates based on the description. In a few cases, the latitude value was adjusted to intersect the pipeline route. In each case, the adjusted location was in the correct county and municipality.

  • Water Crossings

    Known Stream & Wetland Crossings (2018). This shows the locations where the known pipeline routes intersect with streams and other wetlands on the National Wetland Inventory. These are organized by our four pipeline layers that follow, including FracTracker Vetted Pipelines (1,397 crossings), DCNR Pipelines (184 crossings), PHMSA Gas Pipelines (6,767 crossings), and Bradford County Gathering Lines (867 crossings). These crossings are shown as diamonds that match the colors of the four listed pipeline layers.

  • Vetted Pipelines

    FracTracker Vetted Pipelines (2018). This pipeline layer is an aggregation of pipeline routes that have been digitized in recent years. Much of this digitization was performed by the FracTracker Alliance, and it is an available layer on our mobile app. These are largely newer projects, and contain some routes, such as the Falcon Ethane Pipeline System, that have not been built yet. In some cases, multiple versions of the pipeline routes are printed, and we may not have the final version of the route in all circumstances. FracTracker Vetted Pipelines are represented with a red line.

  • DCNR Pipelines

    DCNR Pipelines (2018). This includes pipeline routes on state forest lands, and is shown as green lines on the map.

  • PHMSA Pipelines

    PHMSA Gas Pipelines (2018). This includes data digitized from the PHMSA Public Pipeline Viewer. This source contains gas and liquid pipelines, but only gas pipelines are included in this analysis. These routes are shown in a bright purplish pink color.

  • Bradford Lines

    Bradford County Gathering Lines (2014). This layer was digitized by the FracTracker Alliance after Bradford County published a printed map of gathering lines within the county in 2014. It is the only county in Pennsylvania that we have gathering line data for, and it is shown on the map as a yellow line.

  • Nearby Waterways

    Streams & Wetlands with 1/2 Mile of Pipelines (2018). This clipped layer of the National Wetlands Inventory is provided for visual reference of the wetlands near known pipeline routes. Due to the large amount of data, this layer is only visible when users zoom in to a scale of 1:500,000, or about the size of a large county.


By Matt Kelso, Manager of Data and Technology

This article is the first in a two-part series on Pennsylvania pipelines. Stay tuned!

A Hazy Future Report Cover

A Hazy Future: Pennsylvania’s Energy Landscape in 2045

Report Calculates Impacts from PA’s Planned Natural Gas Infrastructure

FracTracker Alliance released the report: A Hazy Future: Pennsylvania’s Energy Landscape in 2045 today, which details the potential future impacts of a massive buildout of Marcellus Shale wells and associated natural gas infrastructure.

Industry analysts forecast 47,600 new unconventional oil and gas wells may be drilled in Pennsylvania by 2045, fueling new natural gas power plants and petrochemical facilities in PA and beyond. Based on industry projections and current rates of consumption, FracTracker – a national data-driven non-profit – estimates the buildout would require 583 billion gallons of fresh water, 386 million tons of sand, 798,000 acres of land, 131 billion gallons of liquid waste, 45 million tons of solid waste, and more than 323 million truck trips to drilling sites.

A Hazy Future - Impact Summary

“Only 1,801 of the 10,851 unconventional wells already drilled count as a part of this projection, meaning we could see an additional 45,799 such wells in the coming decades,” commented Matt Kelso, Manager of Data and Technology for FracTracker and lead author on the report.

Why the push for so much more drilling? Out of state – and out of country – transport is the outlet for surplus production.

“The oil and gas industry overstates the need for more hydrocarbons,” asserted FracTracker Alliance’s Executive Director, Brook Lenker. “While other countries and states are focusing more on renewables, PA seems resolute to increase its fossil fuel portfolio.”

The report determined that the projected cleared land for well pads and pipelines into the year 2045 could support solar power generation for 285 million homes, more than double the number that exist in the U.S.

A Hazy Future shows that a fossil fuel-based future for Pennsylvania would come at the expense of its communities’ health, clean air, water and land. It makes clear that a dirty energy future is unnecessary,” said Earthworks’ Pennsylvania Field Advocate, Leann Leiter. Earthworks endorsed FracTracker’s report. She continued, “I hope Governor Wolf reads this and makes the right choices for all Pennsylvanians present and future.”

A Hazy Future reviews the current state of energy demand and use in Pennsylvania, calculates the footprint of industry projections of the proposed buildout, and assesses what that would look like for residents of the Commonwealth.

About FracTracker Alliance

Started in 2010 as a southwestern Pennsylvania area website, FracTracker Alliance is a national organization with regional offices across the United States in Pennsylvania, the District of Columbia, New York, Ohio, and California. The organization’s mission is to study, map, and communicate the risks of oil and gas development to protect our planet and support the renewable energy transformation. Its goal is to support advocacy groups at the local, regional, and national level, informing their actions to positively shape our nation’s energy future.

Questions? Email us: info@fractracker.org.

Life expectancy of the Marcellus Shale - Map of PA basins and plays

What is the Life Expectancy of the Marcellus Shale?

How long will unconventional oil and gas production from PA’s Marcellus Shale continue? The number of active wells may give us a clue.

 

We have recently updated the PA Shale Viewer, our map of unconventional wells in Pennsylvania. As I updated the statistics to reflect the updated data, I noticed that the number of wells with an active status ticked downward, just as it had for the previous update.

Pennsylvania Shale Viewer

View map fullscreen | How FracTracker maps work | Data Sources Listed Below

Wells on this map are shown in purple when zoomed out, but are organized by status as you continue to zoom in. The various statuses are shown below, as defined by the Pennsylvania Department of Environmental Protection (DEP).

  • Active – permit has been issued and well may or may not have been drilled or producing, but has not been plugged.
  • Proposed but Never Materialized – permit was issued, but expired prior to the commencement of drilling.
  • Plugged OG Well – permit issued and well has been plugged by well operator.
  • Operator Reported Not Drilled – permit issued, but operator reported to DEP that they never drilled the well.
  • DEP Abandoned List – an abandoned well that has been inspected by DEP.
  • DEP Orphan List – A well abandoned prior to April 18, 1985, that has not been affected or operated by the present owner or operator and from which the present owner, operator or lessee has received no economic benefit other than as a land.
  • DEP Plugged – a DEP Abandoned or DEP Orphan well that has been plugged by DEP,
  • Regulatory Inactive Status – a well status that is requested by well operator and has been granted by DEP. Well is capable of producing, but is temporarily shut in. Granted for initial 5 years and must be renewed yearly after first 5 years.
  • Abandoned – a well that has not been used to produce, extract or inject any gas, petroleum or other liquid within the preceding 12 months; for which equipment necessary for production, extraction or injection has been removed; or considered dry and not equipped for production.

Life Expectancy Stats

Summary of PA unconventional wells by status.

Table 1: Unconventional well locations in Pennsylvania by status. The determination of drilled locations was made by the presence of a spud date in the DEP dataset.

Currently, there are 10,586 well locations with an active status, 9,218 of which have been drilled. There 19,617 unconventional well locations in Pennsylvania when considering all status types, 10,652 of which have been drilled. The drill status was determined by whether or not there was an associated spud date in the dataset. The 13 plugged wells that lack spud dates likely represent some minor data entry errors of one sort or another, as a well would logically need to be drilled prior to being plugged.

Using the available data, we can see that 6.5% of drilled unconventional wells have been plugged, and an additional 6.9% have a regulatory inactive status, more commonly known as “shut-in” wells, leaving 86.5% of the drilled wells with an active status. Three wells are classified as abandoned, including two in Washington County attributed to Atlas Resources, LLC, and one operated by EQT Production Co. in Jefferson County. EQT submitted a request to convert the status of this latter well to inactive status in February 2016, but DEP has not made a decision on the application as of yet.

This chart shows the current status of unconventional wells in Pennsylvania, arranged by the year the well was drilled. Note that there are two abandoned wells in 2009 and one more in 2014, although those totals are not visible at this scale.

Chart 1: This chart shows the current status of unconventional wells in Pennsylvania, arranged by the year the well was drilled. Note that there are two abandoned wells in 2009 and one more in 2014, although those totals are not visible at this scale.

The top, solid blue line in Chart 1 shows the total number of unconventional wells drilled in Pennsylvania, which is based on the available spud date in the dataset. Focusing on this line for a moment, we can see a huge spike in the number of wells drilled in the early part of this decade. In fact, over 46% of the unconventional wells in the state were drilled between 2010 and 2012, and over 70% were drilled between 2010 and 2014. The 504 unconventional wells drilled in 2016 represents just over one quarter the total from 2011, when 1,959 wells were drilled. The 2017 totals are already slightly higher than 2016, with two months left to go in the year, but will not approach the totals from 2010 to 2014.

This drop-off in drilling since the 2011 peak is usually attributed to the glut of natural gas that these wells produced, and the Marcellus remains a highly productive formation, despite the considerable decline in new wells. Eventually, however, the entire formation will go into decline, which is already happening to the Barnett Shale in Texas and Haynesville Shale, among others, where peak production was several years ago in each case.

While all of three of these formations still produce significant quantities of gas, it is worth remembering that production is only half of the equation. In the Marcellus region, average costs were $6.6 million in 2014, which was projected to decrease to $6.1 million per well in 2015 according to a 2016 EIA document.

With the supply in the northeast outpacing demand, the gas prices stay low, and therefore production per well needs to be considerable to make a given well worthwhile.

Plugging Trends

Chart 2: Average days between spud date and plug date for unconventional wells in PA. Regulatory Inactive wells also include a plug date, and are included here.

Chart 2: Average days between spud date and plug date for unconventional wells in PA. Regulatory Inactive wells also include a plug date, and are included here.

Chart 2 shows the average number of days between the spud date and the plug date for wells that currently have either a plugged (n=694) or regulatory inactive (n=737) status. The regulatory inactive wells are relatively consistent in the days between when the well is drilled and temporarily plugged, which makes sense, as the operators of these wells typically intend for these wells to be shut-in upon completion.

However, it is interesting to note that wells are being plugged much more rapidly than they had been in the early part of the Marcellus boom.

Plugged unconventional wells that were drilled in 2005 (n=6) had an average of 3,081 days between these dates, while those drilled in 2016 (n=2) had and average span of 213 days.

The left (orange) axis represents the percentage of wells drilled in each year that are currently drilled. The right (blue) axis marks the total number of wells drilled in each year that are currently drilled.

The left (orange) axis represents the percentage of wells drilled in each year that are currently drilled. The right (blue) axis marks the total number of wells drilled in each year that are currently drilled.

Obviously there would be no way for a well drilled in 2016 to have been online for 3,081 days before being plugged. However, each of the six plugged wells drilled in 2005 were active for at least 1,899 days before being sealed, which is over five years of activity. In contrast, 99 of the 4,966 unconventional wells drilled in the previous 1,899 days have already been plugged, representing 5.2% of the total wells drilled during that time. This means that we are seeing more “misses” at this point in the formation’s history, where the amount of gas being produced doesn’t justify keeping the well open and offsetting the $6 million or more that it cost to drill the well.

We can also see that the rate of plugged wells increases dramatically after about ten years in operation. Forty-four out of 114 (39%) of unconventional wells that were drilled in 2007 are now plugged. That ratio grows two thirds of the nine wells drilled in 2005. In the industry’s boom period of 2010 to 2010, the raw number of plugged wells are elevated, peaking at 206 in 2011, but the percentage of plugged wells during those years remains proportional to the rest of the trend. The overall trend shows that an unconventional well in Pennsylvania that lasts 11 or more years is unusual.

The data show that older Marcellus wells in Pennsylvania are certainly in a state of decline, and are rapidly being plugged. While the overall production of the field remains high, it remains to be seen what will happen as the boom cycle wells drilled from 2010 to 2012 start to go offline in considerable numbers. Given that more and more wells are being drilled with very short production lives, will it continue to make sense for the industry to drill expensive wells in a formation where a return on investment is increasingly questionable? This course is difficult to predict, but economic models that take plentiful natural gas supplies for granted should consider taking a second look.


PA Shale Viewer Data Sources

Unconventional Violations
Source: PADEP
Date Range: 1-1-2000 through 10-2-2017
Notes: For the original data, follow link above to “Oil and Gas Compliance Report”. Latitude and longitude data obtained by matching with permits data (see below). There are 7,655 rows of violations data, including 6,576 distinct Violation IDs issued to 2,253 distinct unconventional wells. Due to the large number of records, this layer isn’t visible until users zoom in to 1:500,000, or about the size of a small county.

Unconventional Wells and Permits
Source: PADEP Open Data Portal
Date Range: 1-1-2000 through 10-2-2017
Notes: This data layer contains unconventional well data in Pennsylvania. However, not all of these wells have been drilled yet. This layer is categorized by well status, which includes Abandoned, Active, Operator Reported Not Drilled, Plugged OG Well, Proposed but Never Materialized, and Regulatory Inactive Status. To determine whether the well has been permitted, drilled, or plugged, look for the presence of an entry in the Permit Date, Spud Date, and Plug Date field, respectively. Altogether, there are 19,617 wells in this inventory, of which 10,586 currently have an active status. Due to the large number of records, this layer isn’t visible until users zoom in to 1:500,000, or about the size of a small county.

SkyTruth Pits (2013)
Source: SkyTruth
Date Range: 2013
Notes: Prior to December 2014, this map contained a layer of pits that were contained in Oil and Gas Locations file available on PASDA. However, that layer was far from complete – for example, it included only one pit in Washington County at a time which news reports mentioned that seven pits in the county were scheduled to be closed. Therefore, we have opted to include this crowdsourced layer developed by SkyTruth, where volunteers analyzed state aerial imagery data from 2013. SkyTruth’s methodology for developing the dataset is detailed in the link above. 529 pits have been identified through this effort.

Compressors and Processors (2016)
Source: EDF, CATF, Earthworks, FracTracker Alliance, EPA, PADEP, EIA
Date: 2016
Notes: This layer is based off of publicly available data, but is not published by any agency as a dataset. It is the result of a collaborative effort, and the data first appeared in map format on the Oil and Gas Threat Map (oilandgasthreatmap.com). Original sources include PADEP, US EPA, and US EIA. Compiling, processing, and geocoding by Environmental Defense Fund, Clean Air Task Force, Earthworks, and FracTracker Alliance. Contact Matt Kelso for more information: kelso [at] fractracker.org.

Environmental Justice Areas
Source: PADEP, via PASDA
Date: 2015
Notes: Environmental Justice (EJ) areas are Census Tracts where over 20 percent of the population is in poverty, or over 30 percent of the population is non-white. The program is designed to monitor whether there is a fair distribution of environmental benefits and burdens. In Pennsylvania, EJ areas tend to be clustered in urbanized areas, particularly near Philadelphia and Pittsburgh.

Counties
Source: US Census Bureau, FracTracker Alliance
Date Range: 2011
Notes: This file was created by dissolving the Municipalities layer (below) to the county level. This method allows for greater detail than selecting the Pennsylvania counties from a national file.

Municipalities
Source: US Census Bureau
Date Published: 2011
Notes: Viewer must be zoomed into scales of 1:1,500,000 (several counties) or larger to access.

Watersheds – Large
Source: USDA/USGS
Date Published: 2008
Notes: Clipped to outline of Pennsylvania.

Watersheds – Small
Source: USDA/USGS
Date Published: 2008
Notes: Clipped to outline of Pennsylvania. Viewer must be zoomed into scales of 1:1,500,000 (several counties) or larger to access.


By Matt Kelso, Manager of Data and Technology, FracTracker Alliance

For schools and hospitals analysis, 2017

How close are schools and hospitals to drilling activity in West Virginia and Ohio?

A review of WV and OH drilling activity and its proximity to schools and medical facilities

Schools and hospitals represent places where vulnerable populations may be put at risk if they are located close to oil and gas activity. Piggybacking on some elegant work from PennEnvironment (2013) and Physicians, Scientists, and Engineers (PSE) Healthy Energy (PDF) in Pennsylvania, below is an in-depth look at the proximity of unconventional oil and gas (O&G) activity to schools and hospitals in Ohio and West Virginia.

Ohio Schools and Medical Facilities

In Ohio, presently there are 13 schools or medical facilities within a half-mile of a Utica and/or Class II injection well and an additional 344 within 2 miles (Table 1 and map below). This number increases to 1,221 schools or medical facilities when you consider those within four miles of O&G related activity.

Map of OH Drilling and Disposal Activity Near Schools, Medical Facilities

View map fullscreen | How FracTracker maps work
Explore the data used to make this map in the “Data Downloads” section at the end of this article.

Table 1. Number of OH schools and hospitals within certain distances from Utica wells

Utica Class II Injection
Well Distance (Miles) Schools Medical Facilities Schools Medical Facilities
0.5 3 1 9 0
0.5-1 19 (22) 9 (10) 16 (25) 13 (13)
1-2 79 (101)  41 (51) 88 (113) 79 (92)
2-3 84 (185) 49 (100) 165 (278) 122 (214)
3-4 85 (270) 79 (179) 168 (446) 112 (326)
4-5 92 (362) 63 (242) 196 (642) 166 (492)
5-10 388 (750) 338 (580) 796 (1,438) 584 (1,076)

Ohio’s rate of Utica lateral permitting has jumped from an average of 39 per month all-time to 66 per month in the last year. OH’s drilling activity has also begun to spread to outlying counties[1]. As such, we thought a proactive analysis should include a broader geographic area, which is why we quantified the number of schools and medical facilities within 5 and 10 miles of Utica and Class II activity (Figures 1 and 2). To this end we found that ≥50% of Ohio’s schools, both public and private, are within 10 miles of this industry. Similarly 50% of the state’s medical facilities are within 10 miles of Utica permits or Class II wells.

Footnote 1: Eleven counties in Ohio are currently home to >10 Utica permits, while 23 are home to at least 1 Utica permit.


Figures 1, 2a, 2b (above). Click to expand.

Grade Level Comparisons

With respect to grade level, the majority of the schools in question are elementary schools, with 40-50 elementary schools within 2-5 miles of Ohio Utica wells. This number spikes to 216 elementary schools within ten miles of Utica permits along with an additional 153 middle or high Schools (Figure 3). Naturally, public schools constitute most of the aforementioned schools; there are approximately 75 within five miles of Utica permits and 284 within ten miles of Utica activity (Figure 4).


Figures 3 and 4 (above). Click to expand.

Public Schools in Ohio

We also found that ~4% of Ohio’s public school students attend a school within 2 miles of the state’s Utica and/or Class II Injection wells (i.e., 76,955 students) (Table 2). An additional 315,362 students or 16% of the total public school student population, live within five miles of O&G activity.

Table 2. Number of students in OH’s public schools within certain distances from Utica and Class II Injection wells

Utica Class II Injection
Well Distance (Miles) # Schools # Students Avg # Schools # Students Avg
0.5 3 1,360 453 7 3,312 473
<1 21 7,910 377 19 7,984 420
<2 96 35,390 376 90 41,565 462
<3 169 67,713 401 215 104,752 487
<4 241 97,448 404 350 176,067 503
<5 317 137,911 435 505 254,406 504
<10 600 280,330 467 1,126 569,343 506

(Note: Ohio’s population currently stands at 11.59 million people; 2,007,667 total students).

The broadest extent of our study indicates that 42% of Ohio students attend school within ten miles of a Utica or Class II Injection well (Figure 5). As the Ohio Utica region expands from the original 11 county core to include upwards of 23-25 counties, we expect these 5-10 mile zones to be more indicative of the type of student-Utica Shale interaction we can expect to see in the near future.


Photos of drilling activity near schools, and Figure 5 (above). Click to expand.

Private Schools in Ohio

At the present time, less than one percent of Ohio’s private school students attend a school within 2 miles of Utica and/or Class II Injection wells (specifically, 208 students). An additional 11,873 students or 11% of the total student population live within five miles. When you broaden the extent, 26% of Ohio’s private primary and secondary school students attend school daily within ten miles of a Utica or Class II Injection well. Additionally, the average size of schools in the immediate vicinity of Utica production and waste activity ranges between 11 and 21 students, while those within 2-10 miles is 112-159 students. Explore Table 3 for more details.

Table 3. Number of students in Ohio’s private schools within certain distances from Utica and Class II Injection.

Utica Class II Injection
Distance from Well (Miles) # Schools # Students Avg # Schools # Students Avg
0.5 . . . 1 . .
<1 . . . 2 25 13
<2 2 22 11 9 186 21
<3 7 874 125 30 4,460 149
<4 12 1,912 159 45 6,303 140
<5 21 2,471 118 61 9,610 158
<10 60 6,727 112 135 20,836 154

West Virginia Schools and Students

Twenty-eight percent (81,979) of West Virginia’s primary and secondary school students travel to a school every day that is within two miles of the state’s Marcellus and/or Class II Injection wells.

Map of WV Marcellus Activity and Schools

View map fullscreen | How FracTracker maps work
Explore the data used to make this map in the “Data Downloads” section at the end of this article.

Compared with Ohio, 5,024 more WV students live near this industry (Table 4). An additional 97,114 students, or 34% of the West Virginia student population, live within 5 miles of O&G related wells. The broadest extent of our study indicates that more than 90% of West Virginia students attend school daily within 10 miles of a Marcellus and/or Class II Injection well.

figure6

Figure 6. West Virginia primary and secondary schools, Marcellus Shale wells, and Class II Injection wells (Note: Schools that have not reported enrollment figures to the WV Department of Education are highlighted in blue). Click image to expand.

It is worth noting that 248 private schools of 959 total schools do not report attendance to the West Virginia Department of Education, which means there are potentially an additional 69-77,000 students in private/parochial or vocational technology institutions unaccounted for in this analysis (Figure 6). Finally, we were not able to perform an analysis of West Virginia’s medical facility inventory relative to Marcellus activity because the West Virginia Department of Health and Human Resources admittedly did not have an analogous, or remotely complete, list of their facilities. The WV DHHR was only able to provide a list of Medicaid providers and the only list we were able to find was not verifiable and was limited to hospitals only.

Table 4. Number of students in WV schools within certain distances from Shale and Class II Injection wells

Marcellus Class II Injection
Distance from Well (Miles) # Sum Avg # Sum Avg
0.5 19 5,674 299 1 . .
<1 52 (71) 16,992 (22,666) 319 5 (6) 1,544 257
<2 169 (240) 52,737 (75,403) 314 16 (22) 5,032 (6,576) 299
<3 133 (373) 36,112 (111,515) 299 18 (40) 6,132 (12,708) 318
<4 88 (461) 25,037 (136,552) 296 21 (61) 5,235 (17,943) 294
<5 56 (517) 15,685 (152,237) 295 26 (87) 8,913 (26,856) 309
<10 118 (635) 37,131 (189,368) 298 228 (315) 69,339 (96,195) 305
Note: West Virginia population currently stands at 1.85 million people; 289,700 total students with 248 private schools of 959 total schools not reporting attendance, which means there are likely an additional 69-77,000 students in Private/Parochial or Vocational Technology institutions unaccounted for in this analysis.

Conclusion

A Trump White House will likely mean an expansion of unconventional oil and gas activity and concomitant changes in fracking waste production, transport, and disposal. As such, it seems likely that more complex and broad issues related to watershed security and/or resilience, as well as related environmental concerns, will be disproportionately forced on Central Appalachian communities throughout Ohio and West Virginia.

Will young and vulnerable populations be monitored, protected, and educated or will a Pruitt-lead EPA pursue more laissez-faire tactics with respect to environmental monitoring? Stay Tuned!

Analysis Methods

The radii we used to conduct this assessment ranged between ≤ 0.5 and 5-10 miles from a Utica or Marcellus lateral. This range is larger than the aforementioned studies. The point of using larger radii was to attempt to determine how many schools and students, as well as medical facilities, may find themselves in a more concentrated shale activity zone due to increased permitting. Another important, related issue is the fact that shale O&G exploration is proving to be more diffuse, with the industry exploring the fringes of the Utica and Marcellus shale plays. An additional difference between our analysis and that of PennEnvironment and PSE Healthy Energy is that we looked at identical radii around each state’s Class II Injection well inventory. We included these wells given the safety concerns regarding:

  1. their role in induced seismicity,
  2. potential water and air quality issues, and
  3. concomitant increases in truck volumes and speeds.

Data Downloads for Maps Above


By Ted Auch, Great Lakes Program Coordinator, FracTracker Alliance

Koontz Class II Injection Well, Trumbull County, Ohio, (41.22806065, -80.87669281) with 260,278 barrels (10,020,704 gallons) of fracking waste having been processed between Q3-2010 and Q3-2012 (Note: Q1-2016 volumes have yet to be reported!).

OH Class II Injection Wells – Waste Disposal Trends and Images From Around Ohio

By Ted Auch, PhD – Great Lakes Program Coordinator

Hydraulic Fracturing "Fracking" at a well-pad outside Barnesville, Ohio operated by Halliburton

Hydraulic Fracturing “Fracking” at a well-pad outside Barnesville, Ohio operated by Halliburton

The industrial practice of disposing of oil and gas drilling waste into Class II injection wells causes a lot of strife for people on both sides of the fracking debate. This process has exposed many “hidden [geologic] faults” across the US as a result of induced seismicity. It has been linked in recent months and years with increases in earthquake activity in states like Arkansas, Kansas, Texas, and Ohio.

Locally, there is growing evidence in counties – from Ashtabula to Washington – that Ohio Class II injection well volumes and quarterly rates of change are related to upticks in seismic activity (Figs. 1-3). But exactly how much waste are these sites receiving, and where is it coming from? Since it has been a little over a year since last we looked at the injection well landscape here in Ohio, we decided to revisit the issue here.

Figures 1-3. Ohio Class II Injection Well disposal during Q3-2010, Q2-2012, and Q2-2015

The Class II Landscape in Ohio

In Ohio 245+ Class II Salt Water Disposal (SWD) Disposal Wells are permitted to accept unconventional oil and gas waste. Their disposal capacity and number of wells served is by far the most of any state across the Marcellus and Utica Shale plays.

Ohio’s Class II Injection wells have accepted an average of 22,750 barrels per quarter per well (BPQPW) (662,632 gallons) of oil and gas wastewater over the last year. In comparison, our last analysis uncovered a higher quarterly average (29,571 BPQPW) between the initiation of frack waste injection in 2010 and Q2-2015 (Fig. 4). This shift is likely due to the significant decrease in overall drilling activity from 2012 to 2015. Between Q3-2010 and Q1-2016, however, OH’s Class II injection wells saw an exponential increase in injection activity.  In total, 109.4 million barrels (3.8-4.6 billion gallons) of waste was disposed in Ohio. From a financial perspective this waste has generated $3.4 million in revenue for the state or 00.014% of the average state budget (Note: 2.5% of ODNR’s annual budget).

The more important point is that even in slow times (i.e., Q2-2015 to the present) the trend continues to migrate from the bottom-left to the top-right, with each of Ohio’s Class II injection wells seeing quarterly demand increases of 972 BPQPW (34,017-40,821 gallons). This means that the total volume coming into our Class II Wells is increasing at a rate of 8.2-9.8 MGs per year, or the equivalent to the water demand of several high volume hydraulically fractured wells.

With respect to the source of this waste, the story isn’t as clear as we had once thought. Slightly more than half the waste came from out-of-state during the first two years for which we have data, but this statistic plummeted to as low as 32% in the last year-to-date (Fig. 5). This change is likely do to the high levels of brine being produced in Ohio as the industry migrates towards the perimeter of the Utica Shale.

Figures 4 and 5

Freshwater Demand and Brine Production

Map of Ohio Utica Brine Production and Class II Injection Well Disposal

View map fullscreen | How FracTracker maps work | Download map data | Related OH Shale Gas Viewer

Ohio Class II injection well disposal and freshwater demand

Figure 6. Ohio Class II Injection Well disposal as a function of freshwater demand by the shale industry in Ohio between Q3-2010 and Q1-2015

To gain a more comprehensive understanding of what’s going on with Class II wastewater disposal in Ohio, it’s important to look into the relationship between brine and freshwater demand by the hydraulic fracturing industry. The average freshwater demand during the fracking process, accounts for 87% of the trend in brine disposal in Ohio (Fig. 6).

As we mentioned, demand for freshwater is growing to the tune of 405-410,000 gallons PQPW in Ohio, which means brine production is growing by roughly 12,000 gallons PQPW. This says nothing for the 450,000 gallons of freshwater PQPW increase in West Virginia and their likely demand for injection sites that can accommodate their 13,500 gallons PQPW increase.

Conclusion

Essentially, the seismic center of Ohio has migrated eastward in recent years; originally it was focused on Western counties like Shelby, Logan, Auglaize, Darke, and Miami on the Indiana border, but it has recently moved to injection well hotbed counties like Ashtabula, Trumbull, and Washington along the Pennsylvania and West Virginia borders. This growth in “induced seismicity” resulting from the uptick in frack waste disposal puts Ohio in the company of Oklahoma, Arkansas, Colorado, Kansas, New Mexico, and Texas. Each of those states have reported ≥4.0 magnitude “man-made” quakes since 2008. Between 1973 and 2008 an average of 21 earthquakes of ≥M3 were reported in the Central/Eastern US. This number jumped to 99 between 2009 and 2013, with 659 of M3+ in 2014 alone according to the USGS and Virginia Tech Seismological Observatory (VTSO). This “hockey stick moment” is exemplified in the below figure from a recent USGS publication (Fig. 7). Figure 8 illustrates the spatial relationship between recent seismic activity and Class II Injection well volumes here in Ohio. The USGS even went so far as to declare the following:

An unprecedented increase in earthquakes in the U.S. mid-continent began in 2009. Many of these earthquakes have been documented as induced by wastewater injection…We find that the entire increase in earthquake rate is associated with fluid injection wells. High-rate injection wells (>300,000 barrels per month) are much more likely to be associated with earthquakes than lower-rate wells.
– From USGS Report High-rate injection is associated with the increase in U.S. mid-continent seismicity

Figures 7 and 8

The sentiment here in Ohio regarding Class II Injection wells is best summed up by Dr. Ray Beiersdorfer, Distinguished Professor of Geology, Youngstown State University and his wife geologist Susie Beiersdorfer who jointly submitted the following quote regarding the North Star (SWIW #10) Class II Injection Well in Mahoning County, which processed 555,030 barrels (21,368,655 gallons) of fracking waste between Q4-2010 and Q4-2011[1].

The operator, D&L, and the ODNR denied the correlation in space and time between the injection of toxic fracking fluids into the well and earthquakes for over eight months in 2011. The well was shut down on December 30 and the largest seismic event, a 4.0 happened at 3:04 p.m. on December 31, 2011. Though the rules say that a “shut-in” well must be plugged after 60 days, this well is still “open” after 1656 days (July 12, 2016). This well must be plugged [and abandoned] to prevent further risks to the health and safety of the Youngstown community… According to Rick Simmers, the only thing holding this up is bankruptcy procedures. It was drilled into a fault, triggered over five hundred earthquakes, including a Magnitude 4.0 that caused damage to homes. [It is likely] that any other use of this well would trigger additional hazardous earthquakes.

Images From Across Ohio

Click on the images below to explore visual documentation and volumes disposed (as of Q1-2016) into Class II Injection wells in Ohio.

Footnote

  1. This is the infamous Lupo well which was linked to 109 tremors in Youngstown by researchers at the Lamont-Doherty Earth Observatory at Columbia University back in the Summer of 2013. The owner of the well Ben W. Lupo was subsequently charged with violating the Clean water Act.

Pipelines vs Oil Trains

By Juliana Henao, Communications Intern

Media outlets have been very focused recently on reporting oil train derailments and explosions. Additionally, the Keystone XL pipeline has hastened political debates and arguments for years by both political parties since its initial proposal in 2008 – and the May 19th pipeline oil spill in California isn’t helping matters. In the midst of all of this commotion, a million questions are being asked, yet no one can seem to reach a conclusion about what method of transporting oil is truly safest and economically feasible – or if we are just stuck between a rock and a hard place.

Some say the solution to this problem is transporting the volatile crude via pipelines, while others believe it is a matter of increasing regulations, standards, and compliance for transport by train. The answer is simply not simple.

In light of this, a few of the folks at FracTracker gathered some facts on pipelines vs oil trains to lay out this issue in a clearer fashion.

Let’s start with trains.

Benefits

Due to the increasing demand of crude oil supply, there has been increasing activity in the transportation of crude oil by rail, which provides flexibility and quick transportation throughout the U.S. and its 115 refineries. Railroads are also willing to offer shippers shorter contracts than pipelines and other transportation methods, making them a more favorable method of crude oil transportation.

In 2008, U.S. freight trains were delivering somewhere from 9-10,000 carloads of crude oil. In 2013, they delivered roughly 435,560 carloads of crude oil, showing a 20-fold increase in crude oil shipments.

Risks

Oil trains, as well as pipelines, can pose a detrimental risk to communities and public health in the case of an explosion and/or spill. Danger Around the Bend describes in detail the dangers of transporting Bakken Formation crude oil from North Dakota to parts all over the country.

Some of the risks of transporting volatile crude via train have been clearly depicted in the news with announcements of spills, derailments, and explosions in urban and suburban areas, putting many people in harm’s way. Despite the decrease in spills between 1996 and 2007, devastating train accidents like the one on July 6, 2013 have raised questions about the safety of transportation by train.

train_incidents_english

Learn more about this trend and the increasing risk of exploding oil trains in a post by Randy Sargent of CMU.

Trains and train tracks in general can be very dangerous, as demonstrated by the deadly Amtrak train derailment in Philadelphia this May. The total number of incidents in 2014, according to the Federal Railroad Administration, sum up to 11,793 – with 818 of those being fatal. These fatalities have been linked to a range of possible causes, but the numbers depict the gravity of safety issues within the railroad regulations.

Regulations

When it comes to train safety and regulations, the Federal Railroad Administration (FRA) is in charge. Some of the current efforts to increase the safety of oil trains include safer tank car design, adding breaking power, reducing the train speed limits through urban areas and increasing crew size. One of the most important improvements, however, includes an increase in oil spill response, which is managed through the National Oil and Hazardous Substance Contingency Plan.

Now, let’s talk pipelines.

As we all know, finishing the Keystone XL pipeline has stirred years of controversy, since this project was initially proposed back in 2008. On January 31, 2014, the U.S. Department of State released the Final Supplemental Environmental Impact Statement (SEIS) of the Keystone XL Pipeline, which would transport up to 830,000 barrels of tar sand oil per day through an 875-mile long pipeline running from Alberta, Canada, to the Gulf Coast area. Below we have mapped the current and proposed tracks of the Keystone, along with the numerous ports, refineries, and rail lines:


The Keystone XL, Alberta oil sands, North American oil refineries and associated ports. View fullscreen and click Details for the metadata behind this map.

The SEIS discussed the impacts that the proposed pipeline would have on the environment and public health based on research, modeling, and analysis. One of the many purposes of the SEIS is to focus on whether the proposed project serves the national interest by comparing the risks to the benefits – discussed in more detail below.

Risks

The current risks associated with pipelines are similar to the risks associated with other modes of transporting oil across the United States. Oil spills are among the highest risks, but with the XL pipeline, it’s a more profound risk due to the type of oil being carried: tar sand oil. Tar sand oil, also known as heavy oil, is known for its tedious processing and its many environmental implications. Burning one single barrel of oil produced from Canadian tar sands generally emits 170 pounds of greenhouse gases into the atmosphere. It also requires large amounts of energy and water, much of which cannot be recycled, to separate the oil from the tar sands and transform the oil into a form of petroleum that can be processed by refineries.

According to the final SEIS:

The proposed project would emit approximately 24 million metric tons of carbon dioxide per year during the construction period (up to three times as much than producing conventional crude), which would be directly emitted through fuel use in construction vehicles and equipment as well as land clearing activities including open burning, and indirectly from electricity usage.

Additional risks associated with the XL pipeline include potential groundwater contamination of major aquifers – particularly the Ogallala Aquifer – as well as deforestation, habitat destruction, and fragmentation.

In the event of an oil spill from the Keystone XL or other pipelines crossing the U.S., the responsibility for who cleans it up does not fall on TransCanada. According to a report from the Natural Resource Defense Council (NRDC), tar sand oils are exempt from paying into the Oil Spill Liability Trust Fund. Amendments that would require TransCanada to pay the 8-cent-per-barrel fee to the fund have not been passed.

Devastating oil spills such as the one in Santa Barbara in mid May reflect the impact it not only has on wildlife, but on the local culture, especially on those who depend on fisheries and whose lives revolves around surfing in the brisk waters of the Pacific Ocean. 21,000 gallons of crude oil covers roughly 4 miles of Santa Barbara’s coast now, extending about 50 yards into the water.

Benefits

Jobs, jobs, jobs. The economic stimulus is one purported advantage to the XL pipeline. During construction, proposed project spending would support approximately 42,100 jobs, directly and indirectly and around $2 billion in earnings throughout the US, according to the final SEIS. Despite different job creation estimates, any number will contribute significantly to the US gross domestic product, associating a huge economic growth with the construction of the proposed XL pipeline. (TransCanada estimates around 13,000 construction jobs and 7,000 manufacturing jobs, which is about 3 times higher than the State Department’s estimate.) In addition, the cost of paying for the Keystone XL project ($3.3 billion) would not be placed on the U.S. but on Keystone.

According to the Pipeline and Hazardous Materials Safety Administration (PHSMA), the industry and their operators have reduced the risk of hazardous materials transportation incidents with death or major injury by 4% every 3 years, and since 2002, they have reduced the risk of a pipeline spill with environmental consequences by an average of 5% per year.1

Still, there is more work to be done. Safety issues that the pipeline industry is aiming to fix include:

  • Infrastructure: Repair obsolete pipeline infrastructure through a pipeline integrity management program and investigate new technologies that can detect pipeline risks.
  • Improving human error and safety culture: Increase the focus on safety beyond compliance standards and evaluate the potential value of safety management systems.
  • Adding secondary containment: Limit the spread of HAZMAT in the event of a failure in the primary container, and improve leak detection.
  • Transparency: Increasing transparency for companies and their accountability

Check out the infographic below for a summary of all of these pros and cons:

Moving Forward

All methods of transporting oil present various risks and benefits based on the available data. Explaining both sides of this coin allows us to assess each method’s impacts on our economy, environment, and public health. Through these assessments, we can make more informed decisions on what truly serves the nation’s interests. Oil and gas transport is a dangerous business, but all transportation industries are improving their management programs and increasing their regulations to provide citizens peace of mind and the safety they deserve. In light of ongoing issues, however, some would ask if these risks are even necessary.

For example, the growth of safer energy resources such as solar energy would significantly cut down the risks mentioned above in addition to providing jobs and stimulating the overall economy. According to the Bureau of Labor Statistics and the Solar Foundation, the growth in direct industry jobs for solar has outweighed oil and gas for the past 3 years. In 2014, new jobs created for the solar industry were more than twice the jobs created for the oil and gas industry. Based on 2014’s economics, Kepler Cheuvreux stated that all renewables are already more competitive than oil priced at $100 per barrel — This is because renewables have a higher net energy return on capital invested (EROCI).

As a reader and a citizen, it is important to know the pros and cons of the current activities taking place in our country today. We must be aware of loopholes that may be putting our states, cities, or counties into harm’s way, as well as recognize alternative energy sources and regulatory oversight that lessen the threats that oil extraction and transport pose to our health and environment.

Footnote

1. These statistics are based from the Census Bureau analysis and Bureau of Transportation Statistics as of July 2012.

Is Carroll Co. truly the king of Ohio’s Utica counties?

Yes and No…

By Ted Auch, Great Lakes Program Coordinator, FracTracker Alliance

We know from the most recent Ohio Department of Natural Resources (ODNR) permitting numbers that Carroll County, Ohio is home to 26% (461 of 1,778) of the state’s Utica permits and 43% (312 of 712) of all producing wells as of the end of Q3-20141 (Figure 1). But does that mean that the county will continue to see that kind of industrial activity for the foreseeable future? The primary question we wanted to ask with this latest piece is whether the putative “king” of the state’s Utica shale gas counties is indeed Carroll County.

Ohio’s Utica Permits within & adjacent to the Muskingum River Watershed as of February, 2015.

Fig 1. Ohio’s Utica Permits within & adjacent to the Muskingum River Watershed as of February, 2015

To do this we compiled an inventory of annual (2011-2012) and quarterly OH shale gas production numbers for 721 laterals throughout southeast OH.

Permitting and production numbers are not necessarily part and parcel to determine if Carrol Co is truly the king. We decided to investigate the production data and do a simple compare and contrast with the rest of the state’s 409 laterals on one side (ROS) and the 312 Carroll laterals on the other – focusing primarily on days of production and resulting oil, gas, and brine (Table 1 and infographic below).

Carroll vs. ROS Results

Permitting Numbers Breakdown

Monthly and cumulative Utica Shale permitting activity in Carrol County, OH vs. the Rest of State (ROS) between September 2010 and January 2015

Fig 2. Monthly & cumulative Utica Shale permitting activity in Carrol County, OH vs. the ROS between September 2010 & January 2015

Between the initial permitting phase of September 2010 and January 2105 the number of Utica Shale permits issued in the ROS has averaged 29 per month vs. 10 per month in Carroll County. Permitting actually increased twofold in the ROS in the last 12 months (Figure 2). Conversely, permitting in Carroll County seems to have reached some sort of a steady state, with monthly permitting declining by 23% in the last 12 months. Carroll’s Utica permits generally constituted 47% of all permitting in OH but more recently has dipped to 44%. Newer areas of focus include Belmont, Guernsey, Noble, and Columbiana counties, just to name a few.

Production Days

Days in production is a proxy for road activity and labor hours. Carroll’s wells have the rest of the state beat for that metric, with an average of 292 (±188 days) days. The state average is 192 days, with significant well-to-well variability (±177 days). If we assume there was a total of 1,369 possible production days between 2011 and the end of Q3-2014, these averages translate to 21% and 14% of total possible production days for Carroll and ROS, respectively.

Oil Production

Carroll falls short of the ROS on a total and per-day basis of oil production, although the 442-barrel difference in total oil production is likely not significant. Carroll wells are producing 74 barrels of oil per day (OPD) (±73 OPD) compared to 96 OPD (±122 OPD) for the rest of the state; however, well-to-well variability is so large as to make this type of comparison quite difficult at this juncture. Fifty-seven percent of OH’s 11,361,332 barrels of Utica oil has been produced outside of Carroll County to date. This level of production is equivalent to 16,231 rail tanker cars and roughly 00.18% of US oil production between 2011 and 2013.

This number of rail tanker cars is equivalent to 6% of the US DOT-111 fleet, or 184 miles worth of trains – enough to stretch from Columbus to Pittsburgh.

Natural Gas

The natural gas story is mixed, with Carroll’s 312 wells having produced 13,430 MCF more than the ROS wells. On a per-well basis, however, the latter are producing 3,327 MCF per day (MCFPD) (±3,477 MCFPD) relative to the 2,155 MCFPD (±1,264 MCFPD) average for Carroll’s wells. Yet again, well-to-well variability – especially in the case of the 409 ROS wells – is high enough that such simple comparisons would require further statistical analysis to determine whether differences are significant or not.

The natural gas produced here in OH currently amounts to roughly 00.51% of U.S. Natural Gas Marketed Production, according to the latest data from the EIA.

Waste – Brine

From a waste generation point of view, the ROS laterals have produced 41 more barrels of brine per day (BPD) than the Carroll laterals and 1,465 BPD since production began in 2011. On a per-day basis, the ROS laterals are producing more oil than waste at a rate of 1.92 barrels of oil per barrel of brine waste. Conversely, since production began these respective sums result in Carroll County laterals having produced 1.56 barrels of oil for every barrel of brine vs. the 1.40 oil-to-brine ratio for the ROS. Finally, it is worth noting that the 7,775,130 barrels of brine produced here in OH amounts to 13% of all fracking waste processed by the state’s 235+ Class II Injection wells.

What do these figures mean?

As we begin to compare OH’s Utica Shale expectations vs. reality we see that the “sweet spot” of the play is truly a moving target. The train seems to have already left – or is in the process of leaving – the station in Carroll County (Figures 3 and 4). It seems two of the most important questions to ask now are:

  1. How will this rapidly shifting flow of capital, labor, and resources affect future counties deemed the next best thing? and
  2. What will be left in the wake of such hot money flows?

Answers to these questions will be integral to the preparation for the inevitable sudden or slow-and-steady decline in shale gas activity. These dropouts are just the most recent in a long line of boom-bust cycles to have been foisted on Southeast OH and Appalachia. Effects will include questions regarding watershed resilience, local and regional resource utilization (Figures 5 and 6), social cohesion, tax-base uncertainty, roads, and a rapidly changing physical landscape.

Whether Carroll County can maintain its perch on top of the OH shale mountain is far from certain, but whether it will have to begin to – or should have already – prepare for the downside of this cliff is fact based on the above analysis.

Additional Figures and Charts

Table 1. Carroll County, OH production days and production of oil, gas, and brine on a per-day basis and in total between 2011 and Q3-2014 vis à vis the “Rest of State”

Variable Carroll (312) Rest of State (409)
Max Sum Mean Max Sum Mean
Total Days 914 91,193 292±188 898 78,430 192±177
Oil (Barrels)
Per Day 453 23,190 74±73 601 39,109 96±122
Total 83,098 4,838,147 15,507 129,005 6,523,185 15,949
Gas (MCF)
Per Day 6,774 672,391 2,155±1,264 18,810 1,360,923 3,327±3,477
Total 2,196,240 168,739,064 540,830 3,181,013 215,706,401 527,400
Brine (Barrels)
Per Day 941 18,516 59±87 810 40,839 100±120
Total 36,917 3,105,260 9,953 99,095 4,669,870 11,418
Oil Per Unit of Brine
Per Day 1.25 1.92
Total 1.56 1.40

Figures 3a-d. Spatial distribution of Carroll County Utica Shale production days, oil (barrels), natural gas (MCF), and brine (barrels) on a per-day basis.

Spatial distribution of Carroll County Utica Shale production days

Fig 3a. Spatial distribution of Carroll Co. Utica Shale production days

Spatial distribution of Carroll County Utica Shale oil (barrels) production on a per-day basis

Fig 3b. Spatial distribution of Carroll Co. Utica Shale oil (barrels) production on per-day basis

Spatial distribution of Carroll County Utica Shale natural gas (MCF) production on a per-day basis

Fig 3c. Spatial distribution of Carroll Co. Utica Shale natural gas (MCF) production on per-day basis

Spatial distribution of Carroll County Utica Shale brine (barrels) production on a per-day basis

Fig 3d. Spatial distribution of Carroll County Utica Shale brine (barrels) production on a per-day basis

Figures 4a-d. Spatial distribution of OH Utica Shale production days, oil (barrels), natural gas (MCF), and brine (barrels) on a per-day basis.

Ohio Utica Shale Total Production Days, 2011-2014

Fig 4a. Ohio Utica Shale Total Production Days, 2011-2014

Ohio Utica Shale Total Oil Production (Barrels), 2011-2014

Fig 4b. Ohio Utica Shale Total Oil Production (Barrels), 2011-2014

Ohio Utica Shale Total Natural Gas Production (MCF), 2011-2014

Fig 4c. Ohio Utica Shale Total Natural Gas Production (MCF), 2011-2014

Ohio Utica Shale Total Brine Production (Barrels), 2011-2014

Fig 4d. Ohio Utica Shale Total Brine Production (Barrels), 2011-2014

Figures 5a-d. Histograms and Spatial distribution of OH Utica Shale total hydrochloric acid (HCl, gallons) and silica sand (tons) demands.

Histogram of OH Utica Shale total Hydrochloric Acid (HCl, gallons)

Fig 5a. Histogram of OH Utica Shale total Hydrochloric Acid (HCl, gallons)

Spatial distribution of OH Utica Shale total Hydrochloric Acid (HCl, gallons)

Fig 5b. Spatial distribution of OH Utica Shale total Hydrochloric Acid (HCl, gallons)

Histogram of OH Utica Shale total Silica Sand (10^3 Tons)

Fig 5c. Histogram of OH Utica Shale total Silica Sand (10^3 Tons)

Spatial distribution of OH Utica Shale total Silica Sand (Tons)

Fig 5d. Spatial distribution of OH Utica Shale total Silica Sand (Tons)

Figures 6a-b. Histograms and Spatial distribution of OH Utica Shale total resource utilization in terms of pounds per lateral.

Histogram of OH Utica Shale total materials used (10^6 Pounds)

Fig 6a. Histogram of OH Utica Shale total materials used (10^6 Pounds)

Spatial distribution of OH Utica Shale total materials used (Pounds)

Fig 6b. Spatial distribution of OH Utica Shale total materials used (Pounds)

Endnote

1. Additionally, all of Carroll County’s permitted wells lie within the already – and increasingly so – stressed Muskingum River Watershed (MRW) which has been a significant source of freshwater for the shale gas industry courtesy of the novel pricing schemes of its managing body the Muskingum Watershed Conservancy District (MWCD) (Figure 1). Carroll laterals are requiring 5.41 million gallons per lateral Vs the state average of 6.58 million gallons per lateral.

The Water-Energy Nexus in Ohio, Part II

OH Utica Production, Water Usage, and Waste Disposal by County
Part II of a Multi-part Series
By Ted Auch, Great Lakes Program Coordinator, FracTracker Alliance

In this part of our ongoing “Water-Energy Nexus” series focusing on Water and Water Use, we are looking at how counties in Ohio differ between how much oil and gas are produced, as well as the amount of water used and waste produced. This analysis also highlights how the OH DNR’s initial Utica projections differ dramatically from the current state of affairs. In the first article in this series, we conducted an analysis of OH’s water-energy nexus showing that Utica wells are using an ave. of 5 million gallons/well. As lateral well lengths increase, so does water use. In this analysis we demonstrate that:

  1. Drillers have to use more water, at higher pressures, to extract the same unit of oil or gas that they did years ago,
  2. Where production is relatively high, water usage is lower,
  3. As fracking operations move to the perimeter of a marginally productive play – and smaller LLCs and MLPs become a larger component of the landscape – operators are finding minimal returns on $6-8 million in well pad development costs,
  4. Market forces and Muskingum Watershed Conservancy District (MWCD) policy has allowed industry to exploit OH’s freshwater resources at bargain basement prices relative to commonly agreed upon water pricing schemes.

At current prices1, the shale gas industry is allocating < 0.27% of total well pad costs to current – and growing – freshwater requirements. It stands to reason that this multi-part series could be a jumping off point for a more holistic discussion of how we price our “endless” freshwater resources here in OH.

In an effort to better understand the inter-county differences in water usage, waste production, and hydrocarbon productivity across OH’s 19 Utica Shale counties we compiled a data-set for 500+ Utica wells which was previously used to look at differenced in these metrics across the state’s primary industry players. The results from Table 1 below are discussed in detail in the subsequent sections.

Table 1. Hydrocarbon production totals and per day values with top three producers in bold

County

# Wells

Total

Per Day

Oil

Gas

Brine

Production

Days

Oil

Gas

Brine

Ashland

1

0

0

23,598

102

0

0

231

Belmont

32

55,017

39,564,446

450,134

4,667

20

8,578

125

Carroll

256

3,715,771

121,812,758

2,432,022

66,935

67

2,092

58

Columbiana

26

165,316

9,759,353

189,140

6,093

20

2,178

65

Coshocton

1

949

0

23,953

66

14

0

363

Guernsey

29

726,149

7,495,066

275,617

7,060

147

1,413

49

Harrison

74

2,200,863

31,256,851

1,082,239

17,335

136

1,840

118

Jefferson

14

8,396

9,102,302

79,428

2,819

2

2,447

147

Knox

1

0

0

9,078

44

0

0

206

Mahoning

3

2,562

0

4,124

287

9

0

14

Medina

1

0

0

20,217

75

0

0

270

Monroe

12

28,683

13,077,480

165,424

2,045

22

7,348

130

Muskingum

1

18,298

89,689

14,073

455

40

197

31

Noble

39

1,326,326

18,251,742

390,791

7,731

268

3,379

267

Portage

2

2,369

75,749

10,442

245

19

168

228

Stark

1

17,271

166,592

14,285

602

29

277

24

Trumbull

8

48,802

742,164

127,222

1,320

36

566

100

Tuscarawas

1

9,219

77,234

2,117

369

25

209

6

Washington

3

18,976

372,885

67,768

368

59

1,268

192

Production

Total

It will come as no surprise to the reader that OH’s Utica oil and gas production is being led by Carroll County, followed distantly by Harrison, Noble, Belmont, Guernsey and Columbiana counties. Carroll has produced 3.7 million barrels of oil to date, while the latter have combined to produce an additional 4.5 million barrels. Carroll wells have been in production for nearly 67,000 days2, while the aforementioned county wells have been producing for 42,886 days. The remaining counties are home to 49 wells that have been in production for nearly 8,800 days or 7% of total production days in Ohio.

Combined with the state’s remaining 49 producing wells spread across 13 counties, OH’s Utica Shale has produced 8.3 million barrels of oil as well as 251,844,311 Mcf3 of natural gas and 5.4 million barrels of brine. Oil and natural gas together have an estimated value of $2.99 billion ($213 million per quarter)4 assuming average oil and natural gas prices of $96 per barrel and $8.67 per Mcf during the current period of production (2011 to Q2-2014), respectively.

Potential Revenue at Different Severance Tax Rates:

  • Current production tax, 0.5-0.8%: $19 million ($1.4 Million Per Quarter (MPQ). At this rate it would take the oil and gas industry 35 years to generate the $4.6 billion in tax revenue they proposed would be generated by 2020.
  • Proposed, 1% gas and 4% oil: At Governor Kasich’s proposed tax rate, $2.99 billion translates into $54 million ($3.9 MPQ). It would still take 21 years to return the aforementioned $4.6 billion to the state’s coffers.
  • Proposed, 5-7%: Even at the proposed rate of 5-7% by Policy Matters OH and northeastern OH Democrats, the industry would only have generated $179 million ($12.8 MPQ) to date. It would take 11 years to generate the remaining $4.42 billion in tax revenue promised by OH Oil and Gas Association’s (OOGA) partners at IHS “Energy Oil & Gas Industry Solutions” (NYSE: IHS).5

The bottom-line is that a production tax of 11-25% or more ($24-53 MPQ) would be necessary to generate the kind of tax revenue proposed by the end of 2020. This type of O&G taxation regime is employed in the states of Alaska and Oklahoma.

From an outreach and monitoring perspective, effects on air and water quality are two of the biggest gaps in our understanding of shale gas from a socioeconomic, health, and environmental perspective. Pulling out a mere 1% from any of these tax regimes would generate what we’ll call an “Environmental Monitoring Fee.” Available monitoring funds would range between $194,261 and $1.8 million ($16 million at 55%). These monies would be used to purchase 2-21 mobile air quality devices and 10-97 stream quantity/quality gauges to be deployed throughout the state’s primary shale counties to fill in the aforementioned data gaps.

Per-Day Production

On a per-day oil production basis, Belmont and Columbiana (20 barrels per day (BPD)) are overshadowed by Washington (59 BPD) and Muskingum (40 BPD) counties’ four giant Utica wells. Carroll is able to maintain such a high level of production relative to the other 15 counties by shear volume of producing wells; Noble (268 BPD), Guernsey (147 BPD), and Harrison (136 BPD) counties exceed Carroll’s production on a per-day basis. The bottom of the league table includes three oil-free wells in Ashland, Knox, and Medina, as well as seventeen <10 BPD wells in Jefferson and Mahoning counties.

With respect to natural gas, Harrison (1,840 Mcf per day (MPD)) and Guernsey counties are replaced by Monroe (7,348 MPD) and Jefferson (2,447 MPD) counties’ 26 Utica wells. The range of production rates for natural gas is represented by the king of natural gas producers, Belmont County, producing 8,578 MPD on the high end and Mahoning and Coshocton counties in addition to the aforementioned oil dry counties on the low end. Four of the five oil- or gas-dry counties produce the least amount of brine each day (BrPD). Coshocton, Medina, and Noble county Utica wells are currently generating 267-363 barrels of BrPD, with an additional seven counties generating 100-200 BrPD. Only four counties – 1.2% of OH Utica wells – are home to unconventional wells that generate ≤ 30 BrPD.

Water Usage

Freshwater is needed for the hydraulic fracturing process during well stimulation. For counties where we had compiled a respectable sample size we found that Monroe and Noble counties are home to the Utica wells requiring the greatest amount of freshwater to obtain acceptable levels of productivity (Figure 1). Monroe and Noble wells are using 10.6 and 8.8 million gallons (MGs) of water per well. Coshocton is home to a well that required 10.8 MGs, while Muskingum and Washington counties are home to wells that have utilized 10.2 and 9.5 MGs, respectively. Belmont, Guernsey, and Harrison reflect the current average state of freshwater usage by the Utica Shale industry in OH, with average requirements of 6.4, 6.9, and 7.2 MGs per well. Wells in eight other counties have used an average of 3.8 (Mahoning) to 5.4 MGs (Tuscarawas). The counties of Ashland, Knox, and Medina are home to wells requiring the least amount of freshwater in the range of 2.2-2.9 MGs. Overall freshwater demand on a per well basis is increasing by 220,500-333,300 gallons per quarter in Ohio with percent recycled water actually declining by 00.54% from an already trivial average of 6-7% in 2011 (Figure 2).

Water and production (Mcf and barrels of oil per day) in OH’s Utica Shale.

Figure 1. Average water usage (gallons) per Utica well by county

Average water usage (gallons) on a per well basis by OH’s Utica Shale industry, shown quarterly between Q3-2010 and Q2-2014.

Figure 2. Average water usage (gallons) on per well basis by OH Utica Shale industry, shown quarterly between Q3-2010 & Q2-2014.

Belmont County’s 30+ Utica wells are the least efficient with respect to oil recovery relative to freshwater requirements, averaging 7,190 gallons of water per gallon of oil (Figure 3). A distant second is Jefferson County’s 14 wells, which have required on average 3,205 gallons of water per gallon of oil. Columbiana’s 26 Utica wells are in third place requiring 1,093 gallons of freshwater. Coshocton, Mahoning, Monroe, and Portage counties are home to wells requiring 146-473 gallons for each gallon of oil produced.

Belmont County’s 14 Utica wells are the least efficient with respect to natural gas recovery relative to freshwater requirements (Figure 4). They average 1,306 gallons of water per Mcf. A distant second is Carroll County’s 250+ wells, which have injected 520 gallons of water 7,000+ feet below the earth’s service to produce a single Mcf of natural gas. Muskingum’s Utica well and Noble County’s 39 wells are the only other wells requiring more than 100 gallons of freshwater per Mcf. The remaining nine counties’ wells require 15-92 gallons of water to produce an Mcf of natural gas.

Water and production (Mcf and barrels of oil per day) in OH’s Utica Shale – Average Water Usage Per Unit of Oil Produced (Gallons of Water Per Gallon of Oil).

Figure 3. Average water usage (gallons) per unit of oil (gallons) produced across 19 Ohio Utica counties

Water and production (Mcf and barrels of oil per day) in OH’s Utica Shale – Average Water Usage Per Unit of Gas Produced (Gallons of Water Per MCF of Gas)

Figure 4. Average water usage (gallons) per unit of gas produced (Mcf) across 19 Ohio Utica counties

Waste Production

The aforementioned Jefferson wells are the least efficient with respect to waste vs. product produced. Jefferson wells are generating 12,728 gallons of brine per gallon of oil (Figure 5).6 Wells from this county are followed distantly by the 32 Belmont and 26 Columbiana county wells, which are generating 5,830 and 3,976 gallons of brine per unit of oil.5 The remaining counties (for which we have data) are using 8-927 gallons of brine per unit of oil; six counties’ wells are generating <38 gallons of brine per gallon of oil.

Water and production (Mcf and barrels of oil per day) in OH’s Utica Shale – Average Brine Production Per Unit of Oil Produced (Gallons of Brine Per Gallon of Oil)

Figure 5. Average brine production (gallons) per gallon of oil produced per day across 19 Ohio Utica Counties

The average Utica well in OH is generating 820 gallons of fracking waste per unit of product produced. Across all OH Utica wells, an average of 0.078 gallons of brine is being generated for every gallon of freshwater used. This figure amounts to a current total of 233.9 MGs of brine waste produce statewide. Over the next five years this trend will result in the generation of one billion gallons (BGs) of brine waste and 12.8 BGs of freshwater required in OH. Put another way…

233.9 MGs is equivalent to the annual waste production of 5.2 million Ohioans – or 45% of the state’s current population. 

Due to the low costs incurred by industry when they choose to dispose of their fracking waste in OH, drillers will have only to incur $100 million over the next five years to pay for the injection of the above 1.0 BGs of brine. Ohioans, however, will pay at least $1.5 billion in the same time period to dispose of their municipal solid waste. The average fee to dispose of every ton of waste is $32, which means that the $100 million figure is at the very least $33.5 million – and as much as $250.6 million – less than we should expect industry should be paying to offset the costs.

Environmental Accounting

In summary, there are two ways to look at the potential “energy revolution” that is shale gas:

  1. Using the same traditional supply-side economics metrics we have used in the past (e.g., globalization, Efficient Market Hypothesis, Trickle Down Economics, Bubbles Don’t Exist) to socialize long-term externalities and privatize short-term windfall profits, or
  2. We can begin to incorporate into the national dialogue issues pertaining to watershed resilience, ecosystem services, and the more nuanced valuation of our ecosystems via Ecological Economics.

The latter will require a more real-time and granular understanding of water resource utilization and fracking waste production at the watershed and regional scale, especially as it relates to headline production and the often-trumpeted job generating numbers.

We hope to shed further light on this new “environmental accounting” as it relates to more thorough and responsible energy development policy at the state, federal, and global levels. The life cycle costs of shale gas drilling have all too often been ignored and can’t be if we are to generate the types of energy our country demands while also stewarding our ecosystems. As Mark Twain is reported to have said “Whiskey is for drinking; water is for fighting over.” In order to avoid such a battle over the water-energy nexus in the long run it is imperative that we price in the shale gas industry’s water-use footprint in the near term. As we have demonstrated so far with this series this issue is far from settled here in OH and as they say so goes Ohio so goes the nation!

A Moving Target

ODNR projection map of potential Utica productivity from Spring, 2012

Figure 6. ODNR projection map of potential Utica productivity from spring 2012

OH’s Department of Natural Resources (ODNR) originally claimed a big red – and nearly continuous – blob of Utica productivity existed. The projection originally stretched from Ashtabula and Trumbull counties south-southwest to Tuscarawas, Guernsey, and Coshocton along the Appalachian Plateau (See Figure 6).

However, our analysis demonstrates that (Figures 7 and 8):

  1. This is a rapidly moving target,
  2. The big red blob isn’t as big – or continuous – as once projected, and
  3. It might not even include many of the counties once thought to be the heart of the OH Utica shale play.

This last point is important because counties, families, investors, and outside interests were developing investment and/or savings strategies based on this map and a 30+ year timeframe – neither of which may be even remotely close according to our model.

An Ohio Utica Shale oil production model for Q1-2013 using an interpolative Geostatistical technique called Empirical Bayesian Kriging.

Figure 7a. An Ohio Utica Shale oil production model using Kriging6 for Q1-2013

An Ohio Utica Shale oil production model for Q2-2014 using an interpolative Geostatistical technique called Empirical Bayesian Kriging.

Figure 7b. An Ohio Utica Shale oil production model using Kriging for Q2-2014

An Ohio Utica Shale gas production model for Q1-2013 using an interpolative Geostatistical technique called Empirical Bayesian Kriging.

Figure 8a. An Ohio Utica Shale gas production model using Kriging for Q1-2013

An Ohio Utica Shale gas production model for Q2-2014 using an interpolative Geostatistical technique called Empirical Bayesian Kriging.

Figure 8b. An Ohio Utica Shale gas production model using Kriging for Q2-2014


Footnotes

  1. $4.25 per 1,000 gallons, which is the current going rate for freshwater at OH’s MWCD New Philadelphia headquarters, is 4.7-8.2 times less than residential water costs at the city level according to Global Water Intelligence.
  2. Carroll County wells have seen days in production jump from 36-62 days in 2011-2012 to 68-78 in 2014 across 256 producing wells as of Q2-2014.
  3. One Mcf is a unit of measurement for natural gas referring to 1,000 cubic feet, which is approximately enough gas to run an American household (e.g. heat, water heater, cooking) for four days.
  4. Assuming average oil and natural gas prices of $96 per barrel and $8.67 per Mcf during the current period of production (2011 to Q2-2014), respectively
  5. IHS’ share price has increased by $1.7 per month since publishing a report about the potential of US shale gas as a job creator and revenue generator
  6. On a per-API# basis or even regional basis we have not found drilling muds data. We do have it – and are in the process of making sense of it – at the Solid Waste District level.
  7. An interpolative Geostatistical technique formally called Empirical Bayesian Kriging.

The Water-Energy Nexus in Ohio, Part I

OH Utica Production, Water Usage, and Changes in Lateral Length
Part I of a Multi-part Series
By Ted Auch, OH Program Coordinator, FracTracker Alliance

As shale gas expands in Ohio, how too does water use? We conducted an analysis of 500+ Utica wells in an effort to better understand the water-energy nexus in Ohio between production, water usage, and lateral length across 500+ Utica wells. The following is a list of the primary findings from this analysis:

Lateral Length

Modified EIA.gov Schematic Highlighting the Lateral Portion of the Well

Figure 1. Modified EIA schematic highlighting the lateral portion of the unconventional well

In unconventional oil and gas drilling, often operators need to drill both vertically and then laterally to follow the formation underground. This process increases the amount of shale that the well contacts (see the modified EIA schematic in Figure 1). As a general rule Ohio’s Utica wells transition to the horizontal or lateral phase at around 6,800 feet below the earth’s surface.

1. The average Utica lateral is increasing in length by 51-55 feet per quarter, up from an average of 6,369 feet between Q3-2010 and Q2-2011 to 6,872 feet in the last four quarters. Companies’ lateral length growth varies, for example:

    • Gulfport is increasing by 46 feet (+67,206 gallons of water),
    • R.E. Gas Development and Antero 92 feet (+134,412 gallons of water), and
    • Chesapeake 28 feet (+40,908 gallons of water).

2. An increase in lateral length accounts for 40% of the increase in the water usage, as we have discussed in the past.

3. As a general rule, every foot increase in lateral length equates to an increase of 1,461 gallons of freshwater.

Regional and County-Level Trends

This section looks into big picture of shale gas drilling in OH. Herein we summarize the current state of water usage by the Utica shale industry relative to hydrocarbon production, as a percentage of residential water usage, as well as long-term water usage and waste production forecasts.

1. Freshwater Use

    • Across 516 wells, we found that the average OH Utica well utilizes 5.04-5.69 million gallons of freshwater per well.
    • This figure includes a ratio of 12:1 freshwater to recycled water used on site.
    • Water usage is increasing by 221-330,000 gallons per well per quarter.
      • Note: In neighboring – and highly OH freshwater reliant-West Virginia, the average Marcellus well uses 6.1-6.6 million gallons per well, with a trend increase of 189-353,000 gallons per quarter per well.
      • Water usage is up from 4.88 million gallons per well between 2010 and the summer of 2011 to 7.27 million gallons today.
    • Over the next five years, we will likely see 18.5 billion gallons of freshwater used for shale gas drilling in OH.
    • On average, drilling companies use 588 gallons of water to get a gallon of oil.
      • Average: 338 gallons of water required to get 1 MCF of gas
      • Average: 0.078 gallons of brine produced per gallon of water

2. Residential Water Allocation

    • A portion of residential water (3.8-6.1% of usage) is being allocated to the Utica drilling boom.
      • This figure is as high as 81% of residential water requirements in Carroll County.
      • And amounts to 2.2-3.5% of the available water in the Muskingum River Watershed.
    • The allocation will increase over time to amount to 8.2-10.5% of residential usage or 4.4-5.6% of Muskingum River available water.

3. Permitted Wells Potential

    • If all permitted Utica wells were to come online (active), we could expect 299.7 million gallons of additional brine to be produced and an additional 220 million gallons of freshwater a year to be used.
    • This trend amounts to 1.1 billion gallons of fracking brine waste looking for a home within 5 years.

4. Waste Disposal

    • Stallion Oilfield Services has recently purchased several Class II Injection wells in Portage County.
    • These waste disposal sites are increasing their intake at a rate of 2.13 million gallons per quarter, 4.76 times that of the rest of OH Class II wells.

Water Usage By Company

The data trends we have reviewed vary significantly depending on the company that is assessed. Below we summarize the current state of water usage by the major players in Ohio’s Utica shale industry relative to hydrocarbon production. 

1. Overall Statistics

    • The 15 biggest Water-To-Oil offenders are currently averaging 16,844 Gallons of Water per gallon of oil (PGO) (i.e., Shugert 2-12H, Salem-Grubbs 1H, Stutzman 1 and 3-14H, etc).
    • Removing the above 15 brings the Water-To-Oil ratio down from 588 to 52 gallons of water PGO.
    • The 9 biggest Water-To-Gas offenders are currently averaging 16,699 gallons of water per MCF of gas.
    • Removing the above 9 brings the Water-To-Gas ratio down from 338 to 27 gallons of water per MCF of gas.

Company differences are noticeable (Figure 2):

Water Usage by Hydraulic Fracturing Industry in Ohio

Figure 2. Average Freshwater Use Among OH Utica Operators

    • Antero and Anadarko used an average of 9.5 and 8.8 MGs of water per well during the course of the 45-60 drilling process, respectively (Note: HG Energy has the wells with the highest water usage but a limited sample size, with 9.8 MGs per well).
    • Six companies average in the middle with 6.7-8.1 MGs of water per well.
    • Four companies average 5 MGs per well, including Chesapeake the biggest player here in OH.
    • Devon Energy is the one firm using less than 3 MGs of freshwater for each well it drills.

2. Water-to-Oil Ratios

Water-Energy Nexus in Ohio: Water-to-Oil Ratios Among OH Utica Operators

Figure 3. Water-to-Oil Ratios Among OH Utica Operators

Freshwater usage is increasing by 3.6 gallons per gallon of oil. Companies vary less in this metric, except for Gulfport (Figure 3):

    • Gulfport is by far the least efficient user of freshwater with respect to oil production, averaging 3,339 gallons of water to extract one gallon of oil.
    • Intermediate firms include American Energy and Hess, which required 661 and 842 gallons of freshwater to produce a gallon of oil.
    • The remaining eleven firms used anywhere from 6 (Atlas Noble) to 130 (Chesapeake) gallons of freshwater to get a unit of oil.

3. Water-to-Gas Ratios (Figure 4)

Water-Energy Nexus in Ohio: Water-to-Gas Ratio Among OH Utica Operators

Figure 4. Water-to-Gas Ratio Among OH Utica Operators

    • American Energy is also quite inefficient when it comes to natural gas production utilizing >2,200 gallons of freshwater per MCF of natural gas produced
    • Chesapeake and CNX rank a distant second, requiring 437 and 582 gallons of freshwater per MCF of natural gas, respectively.
    • The remaining firms for which we have data are using anywhere from 13 (RE Gas) to 81 (Gulfport) gallons of freshwater per MCF of natural gas.

4. Brine Production (Figure 5)

Water-Energy Nexus in Ohio: Brine-to-Oil Ratios among Ohio Utica Operators

Figure 5. Brine-to-Oil Ratios among Ohio Utica Operators

    • With respect to the relationship between hydrocarbon and waste generation, we see that no firm can match Oklahoma City-based Gulfport’s inefficiencies with an average of 2,400+ gallons of brine produced per gallon of oil.
    • American Energy and Hess are not as wasteful, but they are the only other firms generating more than 750 gallons brine waste per unit of oil.
    • Houston-based Halcon and OH’s primary Utica player Chesapeake Energy are generating slightly more than 400 gallons of brine per gallon of oil.
    • The remaining firms are generating between 17 (Atlas Noble and RE Gas) and 160 (Anadarko) gallons of brine per unit of oil.

Part II of the Series

In the next part of this series we will look into inter-county differences as they relate to water use, production, and lateral length. Additionally, we will also examine how the OH DNR’s initial Utica projections differ dramatically from the current state of affairs.

Water and Production in Ohio's Utica Shale - Water Per Well

Water and Production in Ohio’s Utica Shale – Water Per Well

 

OH and WV Shale Gas Water Usage and Waste Injection

By Ted Auch, OH Program Coordinator, FracTracker Alliance

Both Ohio and West Virginia citizens are concerned about the increasing shale exploration in their area and how it affects water quality. Those concerned about the drilling tend to focus on the large quantities of water required to hydraulically fracture – or “frack” – Utica and Marcellus wells. Meanwhile those concerned with water quality cite increases in truck traffic and related spills. Concerns also exist regarding the large volumes of fracking waste injected into Class II Salt Water Disposal (SWD) wells primarily located in/adjacent to Ohio’s Muskingum River Watershed.

Injection Wells & Water Usage

While Pennsylvania and WV have drilled heavily into their various shale plays, OH has seen a dramatic increase in Class II Injection wells. In 2010 OH hosted 151 injection wells, which received 50.1 Million Gallons (MGs) per quarter in total – or 331,982 gallons per well. Now, this area has 1941 injection wells accepting 937.5 MGs in total and an average of 4.3 MGs per well.

In the second quarter of 2010 the Top 10 Class II wells by volume accounted for 45.87% of total fracking waste injected in the state. Fast forward to today, the Top 10 wells account for 38.87% of the waste injected. This means that the industry and OH Department of Natural Resources Underground Injection Control (ODNR UIC) are relying on 128% more wells to handle the 1,671% increase in the fracking waste stream coming from inside OH, WV, and PA. During the same time period, freshwater usage by the directional drilling industry has increased by 261% in WV and 162% in OH.

Quantity of Disposed Waste

With respect to OH’s injection waste story there appear to be a couple of distinct trends with the following injection wells:

— Long Run Disposal #8 in Washington and Myers in Portage counties. The changes reflect a nearly exponential increase in the amount of oil and gas waste being injected, with projected quarterly increases of 6.78 and 5.64 MGs. This trend is followed by slightly less dramatic increases at several other sites: the Devco Unit #11 is up 4.81 MGs per quarter (MGPQ).

— Groselle #2 is increasing at 4.21 MGPQ, and Ohio Oil Gathering Corp II #6 is the same with an increase of 4.03 MGPQ.

— Another group of wells with similar waste statistics is the trio of the Newell Run Disposal #10 (↑2.81 MGPQ), Pander R & P #15 (↑3.23 MGPQ), and Dietrich PH (↑2.53 MGPQ).

— The final grouping are of wells that came online between the fall of 2012 and the spring of 2013 and have rapidly begun to constitute a sizeable share of the fracking waste stream. The two wells that fall within this category and rank in the Top 10 are the Adams #10 and Warren Drilling Co. #6 wells, which are experiencing quarterly increases of 3.49 and 2.41 MGs (Figure 2).

Disposal of Out-of-State Waste

These Top 10 wells also break down into groups based on the degree to which they have, are, and plan to rely on out-of-state fracking waste (Figure 3). Five wells that have continuously received more than 70% of their wastestream from out-of-state are the Newell Run Disposal (94.4), Long Run Disposal (94.7%), Ohio Oil Gathering Corp (94.2%), Groselle (94.3%), and Myers (77.2%). This group is followed by a set of three wells that reflect those that relied on out-of-state waste for 17-30% of their inputs during the early stages of Utica Shale development in OH but shifted significantly to out-of-state shale waste for ≥40% of their inputs. (More than 80% of Pander R & P’s waste stream was from out-of-state waste streams, up from ≈20% during the Fall/Winter of 2010-11). Finally, there are the Adams and Warren Drilling Co. wells, which – in addition to coming online only recently – initially heavily received out-of-state fracking waste to the tune of ≥75% but this reliance declined significantly by 51% and 26% in the case of the Adams and Warren Drilling Co. wells, respectively. This indicates that demand-side pressures are growing in Ohio and for individual Class II owners – or – the expanding Stallion Oilfield Services (which is rapidly buying up Class II wells) is responding to an exponential increase in fracking brine waste internally.

Waste Sources

We know anecdotally that much of the waste coming into OH is coming from neighboring WV and PA, which is why we are now looking into directional well water usage in these two states. WV and PA have far fewer Class II wells relative to OH and well permitting has not increased significantly there. Here in Ohio we are experiencing not just an increase in injection waste volumes but also a steady increase in water usage.  The average Utica well currently utilizes 6.5-8.1 million gallons of fresh water, up from 4.6-5.3 MGs during the Fall/Winter of 2010-11 (Figure 4). Put another way, water usage is increasing on a quarterly basis by 221-333K gallons per well2. Unfortunately, this increase coincides with an increase in the reliance on freshwater (+00.42% PQ) and parallel decline in recycled water (-00.54% PQ). In addition to declining in nominal terms, recycling rates are also declining in real terms given that the rate is a percentage of an ever-increasing volume. Currently the use of freshwater and recycled water account for 6.1 MGs and 0.33 MGs per well, respectively. Given the difference in freshwater and recycled water it appears there is an average 8,319 gallon unknown fluid void per well. The quality of the water used to fill the void is important from a watershed (or drinking water) perspective.  The chemicals used in the process tend to be resistant to bio-degradation and can negatively influence the chemistry of freshwater.

WV Data

WV is experiencing similar increases in water usage for their directionally drilled wells; the average well currently utilizes 7.0-9.6 MGs of fresh water – up from 2.9-5.0 MGs during the Fall/Winter of 2010-11 (↑208%). This change translates into a quarterly increase in the range of 189-353K gallons per well3. The increase coincides with an increase in the reliance on freshwater (+00.34% PQ) and related decline in recycled water (-00.67% PQ). Currently, freshwater and recycled water account for 7.7 MGs and 0.61 MGs per well, respectively. Given the difference in freshwater and recycled water, there is an average of 22,750 gallons of unaccounted for fluids being filled by unknown or proprietary fluids (Figure 5).

The Bigger Picture

This analysis coincides with our ongoing Muskingum River Watershed resilience analysis on behalf of Freshwater Accountability Project’s Leatra Harper and Terry Lodge. Their group represents a set of concerned citizens disputing the “short-term water sale” of freshwater by the increasingly abstruse and proprietary Muskingum Watershed Conservancy District (MWCD) to industry players such as Antero, Gulfport, and American Energy Utica. Pending or approved sales total 120 MGs averaging 1.8 MGs per day at around $4.25 per thousand gallons4. The proximity of this watershed – and location of many Utica wells within its boundaries – to most of the current and proposed WV and OH wells makes it susceptible to excess, irresponsible, or dangerous water withdrawals and waste transport (Figure 6). We will continue to update this analysis in an effort to infuse the MWCD conversation about industry water sales with more holistic watershed resilience and susceptibility mapping with an eye toward getting the state of OH to address issues associated with freshwater valuation which is lacking at the present time.

Figures

Ohio Class II Number and Volumes in 2010 and 2014

Figure 1. Ohio Class II Number and Volumes in 2010 and 2014

Ohio's Top 10 Fracking Waste Class II Injection Wells by Volume

Figure 2. Quarterly volumes accepted by Ohio’s Top Ten Class II Injection Wells with respect to hydraulic fracturing brine waste.

Ohio's Top 10 Fracking Waste Class II Injection Wells by % Out-Of-State

Figure 3. Ohio’s Top Ten Class II Injection Wells w/respect to hydraulic fracturing brine waste.

Average Water Usage by Ohio's Utica Wells By Quarter (Fall 2010 to Spring 2014)

Figure 4. Total water usage per Utica well and recycled Vs freshwater percentage change across Ohio’s Utica Shale wells on a quarterly basis. Data are presented quarterly (Ave. Q3-2010 to Q2-2014)

Average Water Usage by West Virginia's Directional Drilling Wells By Quarter (Summer 2010 to Winter 2014)

Figure 5. Changes in WV water usage for horizontally/hydraulically fractured wells w/respect to recycled water (volume & percentages) & freshwater. Data are presented quarterly (Ave. Q3-2010 to Q2-2014)

OH_WV_Water

Figure 6. Unconventional drilling well water usage in OH (n = 516) and WV (n = 581) (Note: blue borders describe primary Hydrological Units w/the green outline depicting the Muskingum River watershed in OH).


References & Resources

  1. Of a possible 239 Class II Salt Water Disposal (SWD) wells.
  2. The large range depends on whether you start your analysis at Q3-2010 or the aforementioned statistically robust Q3-2011.
  3. The large range depends on whether you start your analysis at Q3-2010 or the more statistically robust Q3-2011.
  4. MWCD water sales approved to date: 1) Seneca Lake for Antero: 15 million gallons at 1.5mm per day, 2) Piedmont Lake for Gulfport: 45 million gallons at 2 million per day, 3) Clendening for American Energy Utica: 60 million gallons at 2 million per day.

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