Damage to Vertical Well in McClain County

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This video shows the damage that was done to a vertical well by a horizontal frac job in McClain County. In this case, the frac fluid migrated up through the tubing and went into the oil tanks of the vertical operator overflowing them. This is becoming a weekly, if not a daily, occurrence.

Why? And how does it get solved?

The problem begins with the rule-making process at the Oklahoma Corporation Commission. Rules determine what and how drilling gets permitted.

The rules have not been changed to address the challenges that come with horizontal drilling. Rule changes take several months and the hearings are dominated by the big horizontal companies. Both OIPA and OKOGA work with big oil companies and testify on their behalf. Almost every attorney that practices with OIPA and OKOGA represents the horizontal drillers and are very adept and experienced at getting their clients what they want.

The judicial process at the Oklahoma Corporation Commission:

The first step is to go before an Administrative Law Judge(ALJ). The ALJ almost always rules in favor of the company wanting to drill and in one case told a protester, “Why do you keep protesting when you know we are always going to let them drill?” The appeal of that decision is the Appellant ALJ, with almost always the same results.

The final step of appeal is before the three Commissioners.

One resolution would be to take every protest before the elected Commissioners. All three are honorable public servants and will almost always do the right thing. This resolution cost upwards of $100,000 to protest before the elected Commissioners. Most small producers stop before they get there.

Oklahoma is the most pro-development oil and gas state. That is a good thing, but only to a point. Almost any company that wants to drill a well can get a permit to do so regardless of the potential harm to vertical well operators, and sadly even at the expense of the environment. The OCC routinely issues permits for these horizontal wells knowing (sometimes even with the horizontal well owner testifying that they will hit the vertical well). Most times horizontal drillers lie at the hearing and say that they will not impact vertical wells and then tell the vertical well operators to shut their wells in, knowing full well they are going to hit them.

Our regulatory body has the responsibility to prevent waste and protect rights. They also have the mandate to prevent oil and gas pollution. Granted they are understaffed. Permitting drilling activity gets almost all of the attention. That needs to change.

OEPA is sponsoring legislation to allow the OCC to self-fund. For 2.4 cents a barrel of oil and the BTU equivalent for natural gas. This would allow the Corporation Commission to fund the staff positions they need to keep up. It would also free up 8 million dollars for the legislature to use to solve the budget problems.We ask the other two petroleum associations to drop their opposition to this bill. Surely all of us that drill for and produce in this state should want a well funded professional regulatory body. The public should demand it!

Video property of Oklahoma News on Youtube. Find official video here.

Oklahoma shaking cut in half but still tops in Lower 48

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AN E&E NEWS PUBLICATION

EARTHQUAKES
Okla. shaking cut in half but still tops in Lower 48

Mike Soraghan, E&E News reporter
Published: Wednesday, January 3, 2018

An earthquake in November 2016 shook the bricks off buildings in Cushing, Okla. Jim Beckel/The Oklahoman via Associated Press

The number of earthquakes experienced in Oklahoma dropped more than 50 percent last year, although the state remains one of the most seismically active in the country.

The quakes have been linked to the state’s dominant oil and gas industry and its wastewater disposal practices. The decline in shaking has been attributed to actions by state regulators and a slowdown in the industry.

Oklahoma had 302 quakes last year of magnitude 3 or greater, compared with 624 in 2016.

The state still had more such quakes than any other state in the Lower 48, including California, based on a preliminary review of data from the Oklahoma Geological Survey and the U.S. Geological Survey. Both agencies generally adjust their numbers each year after a review.

Oklahoma is not the most seismically active state, however. Alaska had hundreds more earthquakes than Oklahoma.

The shaking dropped steeply in the Oklahoma City area. In 2016, there were 74 quakes in Oklahoma County, which includes Oklahoma City. Last year, that dropped to 20.

As in 2016, the western Oklahoma counties of Woodward and Grant had the most shaking. But Lincoln County, east of Oklahoma City, saw an increase in the number of quakes last year.

Scientists have known for decades that deep injection of industrial fluid, such as oil field wastewater, can cause earthquakes in rare cases. The fluid seeps into faults, essentially lubricating them, and they slip.

In Oklahoma, oil production methods that create unusually large volumes of wastewater have combined with favorably aligned faults to cause swarms of quakes.

The state had averaged about two quakes a year until 2009, then the number started increasing. It shot upward as drillers moved into northwestern Oklahoma to produce from the Mississippi Lime formation, which creates far more wastewater than conventional production.

The number of earthquakes of magnitude 3 or greater reached 585 in 2014 and peaked in 2015 with 903.

There have been a handful of injuries, and most of the quakes aren’t large enough to do significant damage, but many residents are concerned about the long-term effects on their homes and the difficulty of getting earthquake insurance.

USGS started attributing the rise in earthquake activity to wastewater injection in 2012. But it took until April 2015 for OGS and state officials to publicly acknowledge such a connection. In a deposition last fall, Oklahoma’s former state seismologist said he quit because of political pressure to not link quakes to the oil industry (Energywire, Oct. 20, 2017).

The number of quakes has been declining since late 2015 or early 2016. The drop has been attributed to restrictions on wastewater injection imposed by the Oklahoma Corporation Commission and the price slump that led to decreased production. As the industry has bounced back, production growth moved from the Mississippi Lime to plays known as the STACK and the SCOOP, which produce far less wastewater with the oil.

STACK stands for Sooner Trend (oil field), Anadarko (Basin), Canadian and Kingfisher (counties). SCOOP stands for South Central Oklahoma Oil Province.

Industry officials say the drop in the number of quakes shows the advantage of cooperation between regulators and oil companies. Chad Warmington, president of the Oklahoma Oil & Gas Association, said companies shared data and expertise with state officials.

“The drop in the number of earthquakes is a good example of what happens when the industry and regulators work together to find reasonable, science-based answers,” Warmington said.

Reprinted from Energywire with permission from E&E News. Copyright 2017. E&E provides essential news for energy and environment professionals at www.eenews.net. For the original story click here.