Transcript Presentation by Matt Sura


Introduction…
◦ Former Director of Western Colorado Congress
◦ Graduate of University of Colorado Law School
◦ Attorney specializing in representation of
landowners and mineral owners in oil and gas
transactions and disputes
Landowners Alliance for NE Douglas County
3
Colorado’s Oil and Gas Basins

The Jake well, which was drilled in October 2009 in Weld
County, produced an average of 1,750 barrels of oil per
day for the first few days -- 50,000 barrels over first 90
days.

Today, oil is trading at $100 / barrel. At that price, the
well paid for itself in three months ($5 million)
“Anadarko estimates
Colorado has up to
1.5 billion barrel oil
reserve”
ANNUAL COLORADO DRILLING PERMITS ISSUED
8027
NUMBER OF DRILLING PERMITS
8500
8000
7500
7000
5903
6500
6000
6368
5996
5159
5500
4400
5000
4500
4000
2917
3500
3000
2500
2245
2000
1500
1000
500
0
There are over 47,000 active wells in the state.
4659
Air Emissions
Land Impact
Private Property Rights
Water Supply
Water Handling
Water Reuse & Disposal
What if you had a neighbor who came on to your
property and:
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disturbed 2-7 acres of your land,
Brought constant truck traffic through your
property,
dug waste pits for toxic chemicals, and
installed heavy, loud equipment;
then tossed you $2500 for your troubles?
Troubles that could be there for up to 30 years.
Home on the range
or industrial site?
Gas wells and pumpjacks can be located as
close as 150 feet from a home.
Well pads and drill rigs in ranchers’ fields.
IMPACTS TO THE LAND
pipeline corridors across the
landscape and through
people’s yards,
Hydraulic Fracturing
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4-5 million gallons per frack. 98% water and sand,
2% fracking chemicals.
Some fracking chemicals relatively safe: sodium
chloride, guar gum, citric acid
Some more ominous: hydrochloric acid, diesel fuel,
BTEX (benzene, ethylbenzene, toluene, xylene),
polycyclic aromatic hydrocarbons; methanol;
formaldehyde; ethylene glycol
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
Governor Hickenlooper called for the
Colorado Oil and Gas Conservation
Commission to require disclosure of the
chemicals used in fracking.
Several month stakeholder process and an
11-hour public hearing led to the passage of
the Colorado Fracking disclosure rule.
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Requires the disclosure of both the identities and
concentrations of all fracking chemicals.
Companies may continue to seek trade secret
protection for specific chemicals, but they will have
to justify and certify their trade secret claims.
Citizens who dispute such claims will have
enhanced opportunity to get their challenges heard
by the oil and gas commission or in court.
SPILLS
Denver Post study:
From 2008-2010,
average of more than
a spill per day,
average size of 5,300
gallons
Leaking Waste Pits
Hydraulic fracturing pit.
.
Divide Creek in Silt Colorado, April 2004,
contaminated with methane and ignitable. The
accident also affected water wells in three homes.
WELL CONSTRUCTION STANDARDS
CONDUCTOR PIPE
SURFACE CASING
PRODUCTION CASING
CEMENT
CEMENT
FRESH WATER AQUIFER ZONE
400’ Usable Fresh Water
Surface Casing 550’
2100’ Various Atoka
Sands & Shales
4000’
of Sediment
SHALLOW PRODUCING ZONE
1300’ Upper Hale
CEMENT
600’ Morrow Shale
300’ Fayetteville Shale
Hindsville
Cross sectional view
TARGET PRODUCING ZONE
GOOD MECHANICAL INTEGRITY
CONDUCTOR PIPE
FRESH WATER AQUIFER ZONE
SURFACE CASING
PRODUCTION CASING
SHALLOW PRODUCING ZONE
TARGET PRODUCING ZONE
CEMENT CHANNELING
CONDUCTOR PIPE
PRESSURE
BUILDS UP
FRESH WATER AQUIFER ZONE
SURFACE CASING
CEMENT
CASING
FORMATION
PRODUCTION CASING
SHALLOW PRODUCING ZONE
TARGET PRODUCING ZONE
INSUFFICIENT CEMENT COVERAGE
CONDUCTOR PIPE
PRESSURE
BUILDS UP
FRESH WATER AQUIFER ZONE
SURFACE CASING
PRODUCTION CASING
SHALLOW PRODUCING ZONE
TARGET PRODUCING ZONE
Emission Type
•
•
•
•
•
NOx
SO2
CO
CH4
VOCs (incl. BTEX)
Reduction Technology
•
•
•
•
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Catalytic reduction
Ultra-low sulfur diesel fuel
LNG and CNG fuels
Oxidation catalysts
Green completions, vapor
recovery units, low bleed/no
bleed pneumatic devices, plunger
lift systems, leak detection
Emission Levels
•
•
•
•
EPA
Industry
State regulators
Research groups
OZONE
VOCs
SMOG
Uncontrolled Emissions Estimates from Oil and Natural
Gas Well Completions and Recompletions
Emissions
(Mcf/event)
Emissions
(tons/event)
Methane
Methane
VOC
HAP
Natural Gas Well Completion without
Hydraulic Fracturing
38.6
0.8038
0.12
0.009
Natural Gas Well Completion with
Hydraulic Fracturing
7,623
158.55
23.13
1.68
Natural Gas Well Recompletion without
Hydraulic Fracturing
2.59
0.0538
0.0079
0.0006
Natural Gas Well Recompletion with
Hydraulic Fracturing
7,623
158.55
23.13
1.68
Well Completion Category
BOTTOM LINE: 240 times more air pollution from
uncontrolled Oil and natural gas well completions and
recompletions
US EPA, Oil and Natural Gas Sector: Standards of Performance for Crude
Oil and Natural Gas Production, Transmission, and Distribution. July 2011
Dust and emissions from
heavy truck traffic
Argument for state
control:
oil and gas commission
has expertise and
experience in a highly
technical field. There is
a need for uniformity
Argument for local
government role:
Local land use conflicts
are best solved by local
government. Local
government should be
part of monitoring of the
industry. Local process
gives local community a
voice
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Cannot ban or prohibit oil and gas development
Can exercise control over development up to the
point of “operational conflict” with state
authority
State setback: drilling and fracking can happen
350 feet from homes in residential areas, 150
feet elsewhere
SETBACKS FROM HOMES
Matthew Sura
Attorney at Law
(720) 563-1866
[email protected]