SPE 166146 Environmental Regulation of Hydraulic Fracturing David Campin Queensland Department of Environment and Heritage Protection Slide 2 Outline •State and scale of Australian unconventional resources •Current Queensland environmental regulatory regime and recognised entity report •Environmental impacts of hydraulic fracturing •International regulatory analysis •Residual environmental risks •Proposed environmental regulatory framework Environmental Regulation of Hydraulic Fracturing in Queensland SPE 166146 David Campin Slide 3 Environmental Regulation of Hydraulic Fracturing in Queensland SPE 166146 David Campin Slide 4 Environmental Regulation of Hydraulic Fracturing in Queensland SPE 166146 David Campin Slide 5 State and scale of Australian unconventional resources Environmental Regulation of Hydraulic Fracturing in Queensland SPE 166146 David Campin Slide 6 Australian Shale Resources One-Column Format Environmental Regulation of Hydraulic Fracturing in Queensland SPE 166146 David Campin Slide7 Queensland Gas and Petroleum Basin Locations Galilee Basin Prospective shale developments close to existing basins of supply Bowen Basin Arrow LNG project Surat Basin Majority of CBM resources for LNG projects LNG export facilities Cooper Basin Exploration by Santos & QGC shale and tight gas Environmental Regulation of Hydraulic Fracturing in Queensland SPE 166146 David Campin Slide 8 Current CBM/LNG Projects in Queensland Project Partners Initial Capacity First LNG Capex Queensland Curtis LNG BG – 75% CNOOC – 25% Stage 1 – 8.5 mtpa Approved – 12 mtpa 2014 A$20.5B Galdstone LNG Santos ‐ 30% Petronas – 27.5% Total – 27.5% KOGAS – 15% Stage 1 – 7.8 mtpa Approved – 10 mtpa 2016 A$18.5B Australia Pacific Origin – 37.5% LNG ConocoPhillips – 37.5% Sinopec – 25% Stage 1 – 9 mtpa Approved – 18 mtpa 2016 A$24.7B Arrow LNG Stage 1 – 9 mtpa Approved – 16 mtpa >2017 A$15‐20B Shell & PetroChina Environmental Regulation of Hydraulic Fracturing in Queensland SPE 166146 David Campin Slide 9 Stratigraphic Model of CBM Resources and Aquifers in the Surat Basin CBM resources Economic aquifers Environmental Regulation of Hydraulic Fracturing in Queensland SPE 166146 David Campin Slide 10 Great Artesian Basin Environmental Regulation of Hydraulic Fracturing in Queensland SPE 166146 David Campin CSG and petroleum wells Slide 12 Current Queensland environmental regulatory regime and recognised entity report Environmental Regulation of Hydraulic Fracturing in Queensland SPE 166146 David Campin Slide13 Principal Current State Regulations • Petroleum and Gas (Production and Safety) Act – Gas resources vested in the Crown (split estate) – Tenure granted by the state, giving access to resources – Gas field construction requirements – Restriction on BTEX (no addition allowed) • Environmental Protection Act – Environmental permit attached to tenure – Bespoke conditions, outcome focused, inconsistencies – 247 Permits permitted to frac, 36 with specific conditions – Hydraulic fracturing environmental risk assessment at regional scale – Baseline bore assessment – Recognised Entity Report for retrospective application Environmental Regulation of Hydraulic Fracturing in Queensland SPE 166146 David Campin Slide 14 Queensland Environmental Regulation Evolution Environmental Regulation of Hydraulic Fracturing in Queensland SPE 166146 David Campin Slide 15 Stimulation Types Addressed Under Recognised Entity Report • Resources • CBM, shale, conventional oil and gas, tight sands, basin centered gas, and geothermal – excludes in‐situ mining • Methodology • Stimulation below formation fracture pressure • High energy gas fracturing • High pressure hydraulic fracturing • Process • Low viscosity fluids • High viscosity fluids • Energized fluids • Foams • Gas fracturing • LPG • Cryogenic • Metallic ion cross‐linked Environmental Regulation of Hydraulic Fracturing in Queensland SPE 166146 David Campin Slide 16 Hydraulic Fracturing Recognised Entity Report • Introduction • Environmental effects from hydraulic fracturing • Review of current and recent investigations into hydraulic fracturing • Cross jurisdictional legislative analysis • Current risk assessment and environmental constraints • Analysis of risk and regulatory rules • Mitigations measures • Proposed revised regulatory framework • Detailed legislation Environmental Regulation of Hydraulic Fracturing in Queensland SPE 166146 David Campin Slide 17 Environmental impacts of hydraulic fracturing Environmental Regulation of Hydraulic Fracturing in Queensland SPE 166146 David Campin Slide 18 Environmental Impacts Of Hydraulic Fracturing • • • • • • • • • • Site locality impacts Neighbourhood impacts Noise Visual impacts Land clearance and stormwater impacts Feed water sourcing impacts Feed water storage impacts Transportation impacts Well integrity Groundwater impacts • • • • • • • • Flowback water quality, management and storage impacts Sourcing proppant Hydraulic fracturing equipment, intensity and scheduling Chemical releases at well pad Geologic and hydrologic issues Human induced seismicity Atmospheric emissions Waste management Environmental Regulation of Hydraulic Fracturing in Queensland SPE 166146 David Campin Slide 19 International regulatory analysis Environmental Regulation of Hydraulic Fracturing in Queensland SPE 166146 David Campin Slide 20 Hydraulic Fracturing ‐ Regulatory Regimes Reviewed UK, Scot Can, ALB, BC, MAN, NB, NF, LB, NS, Ont, PEI,QB, SS, NWT, NNV, YUK AL, AK, AR, CA, CO, FL, IL, IN, KS, KN, LA, MI, MS, MO, MT, NE, NM, NY, ND, OH, OK, PA, SD, TN, TX, UT, VA, WV, WY, BLM, EPA SA WA, NSW, VIC, SA, QLD Map from the Travel Pages Environmental Regulation of Hydraulic Fracturing in Queensland SPE 166146 David Campin Slide 21 Target Locations for Regulatory Analysis #58 #53 #25 #52 #51 Surface contamination Leakage from frac pit #57 Nois e Frac additives Casing damage #32 #16 #39 Transport emissions #9 #10 #40 #23 Frac fluid Domestic supply well – baseline sampling #41 Surface water contamination Surface contamination #2 Damage to aquifer quantity #20 #6 #31 #38 #47 #15 #5 #30 #35 Water pump Surface contamination #48 #34 #37 #36 Hydrauli c Fracturi ng Spread #13 #33 #29 Silica dust to atmosphere #17 #18 #56 Power plant emissions Well head #50 #14 #46 #49 Naturally occurring radioactive materials #19 #55 #26 #8 #54 Volatile organic compound loss to atmosphere #24 #3 #7 SLIDE TITLE HERE #1 Aquifer #45 #21 Aquiclude Damage to adjacent aquifer intermingling #22 #11 #27 Radio-active tracers Damage to aquifer quality #4 Coal measure - aquifer #44 #12 Pressure anomaly Aquiclude Aquifer Basement rock DNC 12/12 Prior approval Well control Hydraulic fracturing design Pre-event information requirement Environmental protection Proximity constraints Hydraulic fracturing additives Post hydraulic fracturing requirements Environmental Regulation of Hydraulic Fracturing in Queensland SPE 166146 David Campin 22 Residual environmental risks Environmental Regulation of Hydraulic Fracturing in Queensland SPE 166146 David Campin Slide 23 Methane Intrusion of formation water Freshwater withdrawals Aquifer connectivity Basin development Principal roads Dust supressionp Deep injection Waste treatment Transport off site Flowback storage Vehicle activity Flaring methane Venting methane Flowback Frac spread operation Casing failure Underground blowout Fracturing fluids Loss of containment Flowback and produced water constituents Supply of proppant Chemical storage Well integrity Perforation Use of water Casing and cementing Water storage On‐road vehicle Impact vector Site selection and development Groundwater Impact Residual Risks Environmental Regulation of Hydraulic Fracturing in Queensland SPE 166146 David Campin Stormwater flows Vehicle spill Freshwater withdrawals Surface blowout Pipe network failure Flowback and produced water constituents Fracturing fluids Loss of containment Basin development Principal roads Dust supressionp Deep injection Waste treatment Transport off site Flowback storage Vehicle activity Flaring methane Venting methane Flowback Frac spread operation Supply of proppant Chemical storage Well integrity Perforation Use of water Casing and cementing Water storage On‐road vehicle Impact vector Site selection and development Slide 24 Surface Water Impact Residual Risks Environmental Regulation of Hydraulic Fracturing in Queensland SPE 166146 David Campin Geological risk Sediment dropout Residual footprint Human induced seismicity Surface blowout Soil degradation Flowback and produced water constituents Regional subsidence Basin development Principal roads Dust supressionp Deep injection Waste treatment Transport off site Flowback storage Vehicle activity Flaring methane Venting methane Flowback Frac spread operation Supply of proppant Chemical storage Well integrity Perforation Use of water Casing and cementing Water storage On‐road vehicle Impact vector Site selection and development Slide 25 Landform and Geological Impact Residual Risks Environmental Regulation of Hydraulic Fracturing in Queensland SPE 166146 David Campin Principal roads Basin development Habitat fragmentation Biodiversity loss Illumination Invasive species Wildlife protection Dust supressionp Deep injection Waste treatment Transport off site Flowback storage Vehicle activity Flaring methane Venting methane Flowback Frac spread operation Supply of proppant Chemical storage Well integrity Perforation Use of water Casing and cementing Water storage On‐road vehicle Impact vector Site selection and development Slide 26 Biodiversity Impact Residual Risks Environmental Regulation of Hydraulic Fracturing in Queensland SPE 166146 David Campin Road construction dust Methane Carbon dioxide Basin development Principal roads Dust supressionp Deep injection Waste treatment Transport off site Flowback storage Vehicle activity Flaring methane Venting methane Flowback Supply of proppant Chemical storage Well integrity Perforation Use of water Casing and cementing Water storage Frac spread operation Volatile organic compounds On‐road vehicle Impact vector Site selection and development Slide 27 Atmospheric Impact Residual Risks Environmental Regulation of Hydraulic Fracturing in Queensland SPE 166146 David Campin Impact vector Knowledge of stimulation program Traffic impacts Noise and vibration Visual impacts Dust supressionp Basin development Principal roads Deep injection Waste treatment Transport off site Flowback storage Vehicle activity Flaring methane Venting methane Flowback Frac spread operation Supply of proppant Chemical storage Well integrity Perforation Use of water Casing and cementing Water storage On‐road vehicle Site selection and development Slide 28 Community Impact Residual Risks Environmental Regulation of Hydraulic Fracturing in Queensland SPE 166146 David Campin Slide 29 Proposed environmental regulatory framework Currently heading to consultation phase Environmental Regulation of Hydraulic Fracturing in Queensland SPE 166146 David Campin Slide 30 Principles for Hydraulic Fracturing in the Queensland Context • A risk assessment and management program addressing • The nature of the stratigraphy, faults, linear features, hydraulic conductivity, porosity, seismic risk and groundwater dependent assets • Understanding of the impacts of applied stresses and connectivity of surrounding aquifers • The presence of vertically impermeable formations between the fractured zone and other aquifers • Installation of a multi‐barrier casing string isolating hydrocarbon bearing formations from aquifers (proof of MIT) • Low toxicity injection fluids, with no persistent bio‐accumulating constituents • Use of advanced process control • Initiate and maintain communication with the groundwater users, the public and government Environmental Regulation of Hydraulic Fracturing in Queensland SPE 166146 David Campin Slide 31 Environmental Authority Requirements General Specific to stimulation •Geospatial proximity limits •Water resource protection •Stormwater and nuisance •Protection of freshwater from pollution •Prohibition of aquifer connectivity •Biodiversity protection •Waste management •Site rehabilitation •Contingency planning •Volatile organic compounds destruction •Chemical storage and spill protection •Hydrocarbon addition prohibition •Records retention •Plant lighting •Flowback •Seismic limits •Communication to landholders and residents •Traffic access management Environmental Regulation of Hydraulic Fracturing in Queensland SPE 166146 David Campin Proposed Concepts for Environmental Regulation of Stimulation • • • • • • • • • • • Codified expectations Well focus not field focus Avoidance of information duplication Risk proportionate requirements Stimulation methodology differentiation Use of suitably qualified person for information analysis, assembly and design Use of statements of compliance Streamlined assessment by EHP Third party assessment of stimulation products Audits of documentation Systematic compliance program: on notice or unannounced Environmental Regulation of Hydraulic Fracturing in Queensland SPE 166146 David Campin Slide 33 Stimulation Product Selection • Selection option for holder of environmental authority • First option – • disclosure to government, detailed risk assessment (interactions and toxicology) and • extensive flowback sampling and analysis • Second option – • pre‐assessment through independent party, including trace contaminants, toxicology and ecotoxicology. Verified products list on web site – no new disclosure requirement, • limited flowback sampling Environmental Regulation of Hydraulic Fracturing in Queensland SPE 166146 David Campin Compliance and Enforcement S 430 Contravention of condition of environmental authority • Wilful contravention ‐ $1,100,000 or 2 years imprisonment • Contravention ‐ $915,750 S 451 Administering authority may require relevant information Environmental Regulation of Hydraulic Fracturing in Queensland SPE 166146 David Campin Slide 35 Acknowledgements / Thank You / Questions Acknowledgements to the Queensland Government Paper # • Paper Title • Presenter Name
© Copyright 2024 ExpyDoc
