PRSRT STD U.S. POSTAGE PAID BECKLEY, WV 25801 PERMIT NO.19
CHANGE SERVICE REQUESTED
FEBRUARY 2014
P.O. BOX 1441 • OAK HILL, WV 25901 ~ WWW.ONGMARKETPLACE.COM
1993 2013
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YEARS
199 1993 3 20113 3 st dfa Stea
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YEARS YE ARS
De n dic Ma atio n to Quality
NEW TECNOLOGY - Pages 2-3
PHILPOTT ENERGY’S GREEN COMPLETION CHEMISTRY NEW TECNOLOGY - Pages 14-15
UTILIZING TURBINES TO CONSUME STRANDED ETHANE
X X X X X
ENVIRONMENTAL MANAGEMENT - p 22-23 HEALTH & SAFETY - p 20-21 INDUSTRY INSIGHT - p 24-25 LEGAL & REGULATORY - p 10-11 WATER MANAGEMENT - p 6-7
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New Technology
PHILPOTT ENERGY’S GREEN COMPLETION CHEMISTRY TECHNOLOGY ENHANCEMENTS FOR HORIZONTAL WELLS by Eric DeLaney, Philpott Energy Philpott Energy & Transportation Company operates in the Marcellus and Utica basins to provide highly unique downhole chemical and delivery systems that dramatically improve horizontal well completions and work-overs. As a proud licensee of CoilChem, LLC, a recognized global-leader in the development of highly-engineered chemical formulations in the drilling business, Philpott’s focus is delivering cutting edge technology that has extended completion depths and improved operational processes throughout the region. In turn, the use of the CoilChemdeveloped chemicals has allowed Philpott to add $ millions to its customers’ bottom lines.
With ever increasing lateral lengths, coil tubing and work-over drill outs must be considered as efficiency and cost saving improvement opportunities. However and in general, the industry as a whole continues to use the same types of chemicals in completion operations that have been used for years. Experience has proven that many of these legacy chemicals are typically harsh and inefficient. Until now, traditional methods have worked to an extent, so there has been no external pressure to facilitate change. Now, concern has grown as the frac debate has expanded to completion chemicals and processes. Some in the industry harbor the unwarranted belief that environmentally friendly or “green” chemicals cannot work as well as those used in the past. However, case studies in practically every major basin in the United States have proven that the Philpott provided CoilChem chemicals are almost always much more efficient than those used historically. With major advancements being made in the application of organic chemistry, these tailored chemicals play an ever increasing role in the successful displacement of their underperforming predecessors.
Philpott also addresses the demand for improved process control for delivering and monitoring the use of the CoilChem chemicals throughout the entire completion process with its ChemTrac hydration/delivery unit. ChemTrac’s use of the latest computerized process controllers takes the trial and error guess-work out of the completion chemical dosing process. By doing so, ChemTrac delivers the right ratios of pipe-onpipe, friction reduction and viscosifier chemicals while allowing near instantaneous dosage changes as the completion processes progress. In addition, ChemTrac’s on-board software provides chemical dosage tracking as a function of time that allows the operator to better understand the direct implications of differing chemical concentrations on the operating efficiency and cost savings generated by using CoilChem fluids. ChemTrac has provided the means for operators to substantially reduce the amount of chemicals being applied into the completion fluid system and, in turn, save them money in overall chemical usage as well as peripheral personnel and equipment costs. All of this adds up to faster completions and added profits!
On-board software allows the operator to monitor and control the chemical dosage. Human error, which has been a major concern in the completion chemical application process, is virtually eliminated from the process. Although it requires a trained field technician to operate, the ChemTrac hydration unit and software does the “thinking”. Once the ChemTrac unit has been appropriated spotted on location and con-
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NEW TECHNOLOGY - Philpott Energy’s Green Completion Chemistry nected to the coil tubing or work-over pumps, the Philpott technician simply inputs into the ChemTrac computer the company man’s chemical concentration instructions. From there, the ChemTrac does the work. This process eliminates waste by removing the possibility of pumping volumes of chemicals not requested by the customer.
TESTIMONIAL: Doug M. – Weatherford Pump Operator "I’ve been doing this for years and always see a 600 -800
psi pressure drop compared to other brands. Having Philpott’s chemicals along with the ChemTrac Hydration Unit makes the job go much smoother compared to me having 5 pallets of different chemical buckets all over, which I have to apply to my batch tank, isn’t as effective."
No discussion on the topic of chemicals is complete without specifically addressing cost. On a “one-off” basis, the CoilChem material may seem to be more expensive than conventional chemicals. Without the input from a company’s qualified field personnel with experience in the highly-complex completion processes, a supply chain buyer may think he or she is doing their job by buying chemical with the seemingly lowest price per gallon. Field personnel who have used the CoilChem fluids, which often contain pipe-on-pipe, viscosifiers and friction reducers all-in-one, understand that simply comparing costs per gallon is a mistake. Further, when the improved drillout efficiencies and reduced equipment and personnel time on location are considered, the Philpott/CoilChem system provide, by far, the lowest total cost of operation.
Completion fluids are safely stored and accurately mixed on the ChemTrac hydration/delivery unit. Demanding the use of greener drilling and completion processes will keep our industry moving in the right direction. Use of green completion chemicals is not just about reducing carbon emissions or even lowering toxicity; it has also proven time and time again to improve the company’s bottom line. Being green is not only a term that Philpott and CoilChem use; it is a part of the culture they embrace with their stated goal of improving health and ensuring the proud reputation, longevity and vitality of our industry. Eric DeLaney, Energy Sales Specialist, Philpott Energy & Transport, (570) 447-0030, edelaney@philpottrubber.com
1010 Industrial Parkway • N. Brunswick, OH 44212
Toll Free: (888) 267-2206 Office: (330) 225-3344 Fax: (330) 225-1999
C OMPLETION S OLUTION F RICTION R EDUCER G EL S WEEP C OMPLETION B EADS D RILLING F LUID R OD L UBE
B IOCIDE R ELIQUIFICATION CPD N ON H AZARDOUS A CID I NHIBITOR S TABLIZER F OAMER C ORROSION I NHIBITOR
S ILICONE A NTIFOAM S CALE I NHIBITOR L IQUID PAC R EPLACEMENT F RAC F LUID C HEM T RAC H YDRATION U NIT
COVERING ALL THE MARCELLUS & UTICA
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ASSOCIATION MEETINGS
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Sha l e M e d ia G r o up M o n t h l y E ve n t s
FEBRUARY 2014
IOGAWV WINTER MEETING -- WWW.IOGAWV.COM
22/21 /21
FEBRUARY 4-5, 2014 - CHARLESTON, WV
The The Elite Elite Energy Energyy Event Event
2014 OOGA WINTER MEETING -- WWW.OOGA.ORG MARCH 5-7, 2014 - COLUMBUS, OH
OGIS NEW YORK -- WWW.IPAA.ORG APRIL 7-9, 2014 - NEW YORK, NY
22/20 /2 0
SSweetening weetening uupp the the Shale S hal e
IPAA MID-YEAR MEETING -- WWW.IPAA.ORG JUNE 18-20, 2014 - COLORADO SPRINGS, CO
To register To register and and for f or moree iinformation mor nformation oonn the the eevents vents go go to to sshalemediagroup.com halemediagroup.com
VOGA SUMMER MEETING -- WWW.VAOILANDGAS.COM JANUARY 25-27, 2014 - VIRGINIA BEACH, VA
IOGANY SUMMER MEETING -- WWW.IOGANY.ORG JULY 16-17, 2014 - FINDLEY LAKE, NY
IOGAWV SUMMER MEETING -- WWW.IOGAWV.COM
22/19 /19
Change EElite lite Crew Crew Ch ange
AUGUST 3-4, 2014 - WHITE SULPHER SPRINGS, WV ARTICLES ENVIRONMENTAL MANAGEMENT: Overcoming Remote Access Soft Soil Challenges . . . . . . . . . . . . . . . . . . . . . .22-23
PAGE
Quality Bridge and Fabrication . . . . . . . . . . . . . . 13
Alpine Electric . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Rig Maids . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
American Refining Group. . . . . . . . . . . . . . . . . . . 16
SAMCO Enterprises . . . . . . . . . . . . . . . . . . . . . . 13
ADVERTISER INDEX
Bri-Chem . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Shale Media Group . . . . . . . . . . . . . . . . . . . . . . . . 4
HEALTH & SAFETY: Focus On Personal Protective Equipment - Eye Protection . . . . . . . . . . . . . . . . . . . . . .20-21
Cam-Tek Systems . . . . . . . . . . . . . . . . . . . . . . . . 24
Shale Tec (Penn College) . . . . . . . . . . . . . . . . . . 19
CPI Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Shannon Safety Products . . . . . . . . . . . . . . . . . . . 7
INDUSTRY INSIGHT: Building For Energy Independence . .24-25
D&S Industrial Products . . . . . . . . . . . . . . . . . . . 28
Skycasters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
DR Well Site . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
ST!CK . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Ernst Seed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Sunnyside Supply . . . . . . . . . . . . . . . . . . . . . . . . 23
NEW TECHNOLOGY: Philpott Energy’s Green Completion Chemistry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2-3
ETC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Tank Connection . . . . . . . . . . . . . . . . . . . . . . . . . 12
Godwin Pumps - Xylem . . . . . . . . . . . . . . . . . . . . 7
Unit Liner Technologies . . . . . . . . . . . . . . . . . . . . . 5
NEW TECHNOLOGY: Utilizing Turbines To Consume Stranded Ethane . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14-15
Hart Automation . . . . . . . . . . . . . . . . . . . . . . . . . 24
V-F Controls . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
In-Line Plastics . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Weavertown Environmental Group . . . . . . . . . . . . 7
LEGAL & REGULATORY: PA Act 13: Time Will Tell . . . . . . .10-11
WATER MANAGEMENT: Nested Tank . . . . . . . . . . . . . . . . . .6-7
Keystone Clearwater Solutions . . . . . . . . . . . . . . 13 Kuhns Brothers . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Lee Reger Builds . . . . . . . . . . . . . . . . . . . . . . . . . 6
CALENDARS Association Meetings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4
Lee Supply Co. Inc. . . . . . . . . . . . . . . . . . . . . . . . . 5 Machinery Street . . . . . . . . . . . . . . . . . . . . . . . . . 28 Mansfield Crane . . . . . . . . . . . . . . . . . . . . . . . . . 13
Training and Workshops Calendar . . . . . . . . . . . . . . . . . . . . . . .16
Marcellus Safety Consulting . . . . . . . . . . . . . . . . 24
Upcoming Events . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8-18
McCluskey & Associates . . . . . . . . . . . . . . . . . . . 13 Mid-Atlantic Storage . . . . . . . . . . . . . . . . . . . . . . 16 MJ Painting Contractor . . . . . . . . . . . . . . . . . . . . 13
EVENTS Elite Energy Event . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13
New River Engineering . . . . . . . . . . . . . . . . . . . . 13 North American Field Services . . . . . . . . . . . . . . 16 Oil Center Research . . . . . . . . . . . . . . . . . . . . . . 19
NAPE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11
PPC Lubricants . . . . . . . . . . . . . . . . . . . . . . . 12, 13
Oil and Gas Awards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17
PSB . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
CONTACT US FOR ADVERTISING INFORMATION OR MAILING LIST CHANGES:
THE NORTHEAST ONG MARKETPLACE P. O. BOX 1441 • OAK HILL, WV 25901 1-855-269-1188 FAX: (304) 465-5065 E-MAIL: INFO@ONGMARKETPLACE.COM The Northeast ONG Marketplace will not be liable for any misprint in advertising copy which is not the fault of The Northeast ONG Marketplace, and if a misprint should occur the limits of our liability will be the amount charged for the advertisement. We do not assume responsibility for the content of advertising or articles herein. Any warranties or representations made in the advertisements are those of the advertisers and not The Northeast ONG Marketplace.
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Water Management
N E S T E D TA N K FOR OPTIMAL SECONDARY CONTAINMENT With the average Marcellus horizontal well requiring over five million gallons of water 1, innovative ways to store the water are in high demand. One of the most cost effective and environmentally friendly ways available today are above-ground storage tanks (ASTs). While they are offered in many sizes, the larger ones can hold over one-million gallons of fluid. Pictured to the right is a 41,000 barrel (1.7 million gallon) above-ground storage tank. Conventional frac tanks have worked well in the past but also require more trucks, create a larger environmental impact and often times cost more than an AST. For example, one 40,000 barrel AST can be set up with as little as three trucks per tank, whereas 40,000 barrels worth of frac tanks require 80 trucks. The physical footprint is also reduced with ASTs, as they cover less space. Due to these factors, the use of AST’s, especially in the Marcellus have increased exponentially over the past few years and new innovations continue to change the market place. In an effort to remain on the cutting edge of safety assurance and innovation, Rockwater Energy Solutions has launched a nested tank system to minimize any risk of fluid reaching the ground. These systems combine the structural integrity and reliability of two Rockwater ASTs each fitted with the highest quality liner. The double tank system is just that, a tank set within another tank making any chance of water reaching the ground nearly impossible.
The system pictured in figure 1, illustrates a 26,500 barrel tank erected within a 41,000 barrel tank. To achieve this, Rockwater places a geotextile underlayment first. This is used as a precaution to protect the liner from any unseen ground protrusions. Next, the 41K sized liner is placed. The internal tank panels are erected first, the liner is then hung on the walls and a set of stairs are installed. The external tank is then set up, complete with liner and another set of stairs for maximum containment.
John Kissella Project Manager
jkissella@lrbuildswv.com
LEE REGER BUILDS, INC. GENERAL CONTRACTOR COMMERICAL & INDUSTRIAL BUILDING CONSTRUCTION WV Lic. #000081 ISNetwork Participants Visit our website @ lrbuildswv.com One Railroad Street • P.O. Box 1872 • Shinnston, WV 26431 (304) 592-2083 • 1-800-564-1413 • Fax: (304) 592-3920 • Cell: (304) 677-7563
There are a number of advantages with the double tank solution. Traditionally, secondary containment would have four-foot walls where the double tank solution has twelve-foot walls providing full containment capability. By using a secondary containment as strong as the primary containment, the safety and environmental factor is twice as reliable and the footprint is three times less.
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WATER MANAGEMENT - Nested Tank Though secondary containment is a measure often taken for added security, Rockwater maintains full tank integrity through a number of operating procedures and engineering standards to minimize the chances of needing secondary containment. For example, Rockwater provides ultrasonic testing (UT) of the tank’s steel to make certain the structural requirements are met. In addition, Rockwater periodically conducts mag
particle (MP) tests to check welds. To ensure the welds will pass, Rockwater’s welders are certified with an American Welding Society D 1.1 structural standard. Maintaining liner integrity is just as important as the steel structure. “We hold our liners to high standards” explains Cliff Simpson, Vice President of Above-Ground Storage Tanks at
Rockwater. “For example, our liners are visually inspected and stress tested before use.” Liner quality provisions don’t stop there. If repairs are required before filling a tank, they are vacuum tested. Furthermore, Rockwater offers liners that are black on one side and white on the other to visibly see any blemishes in the material. Being safe in the field is first and foremost and new measures are taken every day to maintain the safety of each worker and the environment. By using the nested tank system, operators benefit from the preventive measures taken to improve environmental and personal safety performance.
Figure 1: A 26,000 bbl. tank nested within a 41,000 bbl. tank
Rockwater is an environmental solutions provider offering customized products and services to the water, stimulation, fracturing, and production needs of our customer’s throughout the US and Western Canada. We provide solutions for the full water lifecycle from water transfer, above-ground storage, fluid logistics, and flowback, to chemicals such as production chemicals and completions chemicals. Our companies have been serving the oilfield for over 35 years with reputations built on quality products and customer service. Our teams are dedicated to performing their jobs in a safe, efficient, and environmentally responsible manner, and are motivated to exceed the expectations of every customer.
Check out the Clutch Gear® high-viz anti-impact gloves. Powerful protection against knocks and scrapes. Available in sizes S - 3XL.
Visit Superior Glove at the show.
April 24, 2014 Southpointe Hilton Garden Inn
Bridgeville, PA 15017 800.235.8474 sales@shannonsafety.com www.shannonsafety.com Find us on:
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FEBRUARY 18-19, 2014
OHIO ENERGY MANAGEMENT CONFERENCE
COLUMBUS OH
FEBRUARY 18-20, 2014
ALTERNATIVE FUELING EXPO & CONFERENCE
MONROEVILLE PA
FEBRUARY 26-27, 2014
EMBRACING ENERGY: A CONFERENCE FOR WOMEN
WHEELING WV
APRIL 7-9, 2014
SHALESAFE CONFERENCE AND EXPO
WHEELING WV
APRIL 9-11, 2014
NAPE EAST
PITTSBURGH PA
APRIL 14-16, 2014
VOGA REGIONAL NATURAL GAS VEHICLE CONFERENCE
RICHMOND VA
APRIL 16-17, 2014
AIPG 5TH ANNUAL SYMPOSIUM
COLUMBUS OH
APRIL 17, 2014
12TH ANNUAL MICHIGAN PETROLEUM CONFERENCE
ACME MI
APRIL 22, 2014
UTICA-MARCELLUS INFRASTRUCTURE
PITTSBURGH PA
MAY 13-14, 2014
OIL & GAS ENVIRONMENTAL COMPLIANCE CONFERENCE
WASHINGTON PA
MAY 13-14, 2014
PIOGA’S EASTERN OIL & GAS CONFERENCE & TRADE SHOW
MOON TWP. PA
WWW.MECSEMINARS.COM
WWW.ALTERNATIVEFUELINGEXPO.COM
WWW.WVONGA.COM
WWW.SHALESAFE.INFO
WWW.NAPEEXPO.COM
WWW.VAOILANDGAS.COM
WWW.AIPG.ORG
WWW.MICHIGANOILANDGAS.ORG
WWW.INFOCAST.COM
HTTP://OILANDGAS.AWMA.ORG
WWW.PIOGA.ORG
VISIT OUR WEBSITE FOR LINKS TO THESE EVENTS - ONGMARKETPLACE.COM EVENTS CONTINUED ON PAGE 18
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PRESS RELEASE Layfield Opens New Distribution Warehouse in Weirton WV Company Expands Again to Fulfill High Demand in Marcellus/Utica Weirton, WV: As a leading geomembrane manufacturer to the Oil & Gas industry, Layfield Environmental Systems is pleased to announce its newest distribution center located 2700 Harmon Creek Road, Colliers, WV. Layfield specializes in manufacturing and fabrication of high quality frac tank liners and pads, oil pit liners, and well pad liners for the upstream oil & gas sector. We also provide a full line of geogrids, geotextiles and other geosynthetics used for soil reinforcement of access roads and lease sites. To better serve the Marcellus and Utica shale plays, our new Weirton distribution facility can provide 24 hour shipment service in the Marcellus / Utica region. The Weirton distribution center is one of several new distribution centers opened in North America and globally within the last year.
Hydraulic fracturing technology has created a need to safely store large amounts of fresh water, recycled and produced water. Layfield’s Enviro Liner® brand is the leading geomembrane used for frac tank liners. Layfield provides both stock frac tank liner sizes and custom fabricated liner sizes. Layfield has been servicing the Oil & Gas sector in North America for over 35 years. For more information please contact: Steve Valero / 404-557-5884 /svalero@layfieldgroup.com 2700 Harmon Creek Road, Colliers WV 26035 About Layfield: Layfield is recognized as a leading North American manufacturer of geomembranes and a major supplier of environmental, construction and industrial packaging products servicing the Oil & Gas, Mining, Water / Waste Water, Transportation & Civil Construction markets. Our products and services are used across Canada, the United States, South America and in Asia. http://www.layfieldenvironmental.com/pages/OilGas/default.aspx
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Legal & Regulatory
PA Act 13: Time Will Tell By: Kristie Kubovic, Director of Communications, Shale Media Group Edited By: Mindy Gattner, Editor, Shale Media Group
Lately, Pennsylvania Act 13 has been in the t alk of the shale, oil and gas industr y, due to the December 19th Pennsylvania in the bill. The ruling was brought on by a group of seven municipalities, along with a doctor and an environment al group, which challenged the law. Let ’s hit pause for a minute and rew ind to t he orig ins of Ac t 13. First ly, Ac t 13 was adopted into law on Februar y 8, 2012, but t he shale, oil and gas indust r y has been rooted in por t ions of t he United St ates and Pennsylvania long before t hat . The Marcellus Shale was discovered in 1839, while t he ; :9876 54338210/3:/6 .:16 -4116 -/86 ,9:114,6 :36 +*)(6 :36 7 '46 3.9 7 '-4874936 &/9 76 .%6 7 '46 87 /74$6 #'46 :3,"87 9 26 -/86 !":746 / 7 :046 %.96 7 '46 ; :9876 '/1%6 .%6 7 '46 7 -437 :47 '6 cent ur y, and t hen went into a lull in Pennsylvania. During t he Pennsylvania ':/7 "8 6'2,9/"1: 6% 9/ 7 "9:3 6-/86:36% "1168- :3 6%.96.0496) 624/986/3,6'.9: .37 /16 drilling for several years in places like t he Barnet t shale format ion in Texas. Back in Pennsylvania, lit t le was done w it h t he shale, oil and gas indust r y for about 60 years, but in 2004, Range Resources rev ived t he Pennsylvania shale, oil and gas indust r y by pioneering t he Marcellus Shale play w it h drilling a ver t ical well. The indust r y exploded in Pennsylvania f rom t here. '436 '2,9/"1: 6 % 9/ 7 "9:3 6 -/86 940 :7 /1: 4,6 :36 54338210/3:/6 /6 %4-6 24/986 / . 6 :76 -/83 76 94 . 3: 4,6 /76 7 '46 7 : 46 "876 '.-6 : 6 7 '46 :3,"87 9 26 -."1,6 become,� replied Ivan DeVoren, Esquire and Principal, DeVoren Law. Plus, new technolog ies came along t hat allowed even higher volumes of gas to be ex t rac ted as t he indust r y evolved f rom ver t ical drilling to /6 . :3/7 :.36 .%6 049 7 : /16 /3,6 '.9: .37 /16 ,9:11:3 $6 4 .9436 4 &1/:34, 6 “ Wit h ver t ical wells, t he indust r y hasn’t been able to get enough produc t out of t he g round to of fset t he cost of doing so. Now producers are able to drill ver t ically, t hen t urn t he well bore and drill '.9: .37 /1126 :36 ,:% %494376 ,:94 7 :.38 6 8: :1/96 7.6 7 '46 8&. 486 .36 /6 -/ .36 -'441 6 -': '6 :86 /6 8: 3:; : /376 /,0/3 4 4376 :36 7 '46 1/876 84049/16 24/98$ A f ter t he well is completed, t he process of hydraulic f rac t uring is employed. Hydraulic f rac t uring is a technique used to release nat ural gas and oil f rom subterranean rock deep under t he ear t h’s surface. In t he process, water, which is mixed w it h ot her compounds like 8/3, 6 :86 &9488"9: 4,6 /3,6 &" &4,6 :37.6 7 '46 9."3,6 7.6 %/ 9: /746 9/ 86 /18.6 3.- 36 /86 % 9/ 7 "9486 .96 ; :88"948 6 :36 7 '46 9. $6 #'4846 9/ 86 / 76 like veins and allow t he release of oil and nat ural gas to t he well. The process it self raised four main concerns, especially init ially, w it h t he public due to: t he large quant it y of water needed for t he process, t he unk now n compounds/chemicals employed in t he water mix t ure, t he possible cont aminat ion of local wells and t he
overall appearance of t he landscape. Therefore, Ac t 13 was created to increase t he reg ulat ion off hydraulic f rac t uring and prov ide &9.74 7 :.36 %.96 7 '46 430 :9.3 4376 26 ; :11:3 6 7 '46 0.:,6 :36 7 '4846 %."96 /94/8$6 In addit ion, explorat ion and produc t ion companies faced dif ferent laws, reg ulat ions and requirement s f rom ever y count y. Relat ing it to a driver ’s license, DeVoren says, “For an explorat ion or produc t ion company y, it would be similar to needing to acquire a driver ’s license in ever y count y as opposed to get t ing one for t he st ate.� Ac t 13 bestowed uniformit y Photo Prov ided By: John K itchen t hroughout t he Commonwealt h. midst reamphoto.com “ T his allowed producers to .&7 : : 46 7 '4:96 :30487 437 6 3.- :3 6 t heir invest ment of t ime and money was wor t hwhile,� st ated DeVoren. DeVoren explained, “In ot her words, Ac t 13 came up w it h ways to deal w it h env ironment al issues, such as storm water, emergenc y planning , cult ural, historic and nat ural resources, and t he protec t ion of endangered habit at s and species t hroughout t he Commonwealt h. Each municipalit y didn’t have to come up w it h reg ulat ions.� The bill also addressed anot her impor t ant issue such as t a xat ion. W hen .0493.96 43,4116 -/86 :36 .% ; : 4 6 '46 &"8'4,6 %.96 /6 "3:%.9 6 7 / 6 .36 7 '46 8'/14 6 oil and gas indust r y, which is similar to what most ot her st ates enforce and tends to ex t rac t roughly four percent . However, Governor Corbet t came in w it h a dif ferent out look . View ing t he impor t ance of t he resource for t he st ate and t he need to be compet it ive, Corbet t pushed for an impac t fee, which brought in less money, but t heoret ically brings in more business, including &4.&14 6 4 &1.24486 /3,6 . 8$6 36 : &/ 76 %446 :86 /18.6 ,:% %494376 ,"46 7.6 7 '46 %/ 76 t hat it is a per-well annual fee based on t he price of gas during t he year t he fee is collec ted (as opposed to t he amount of produc t t hat producers pull out .%67 '46-411 $6 36/,,:7 :.3 68. 46 ."37 :4868:76/ .0461/9 4694849 048 6-':146.7 '4986 have ver y lit t le. In order to gain st atew ide suppor t, even count ies w it hout any wells st ill get somet hing , but most fees st ay in t he count y of impac t . #'46 54338210/3:/6 4&/9 7 4376 .%6 30 :9.3 437 /16 59.74 7 :.36 5 6 /18.6 ,:,6 8. 47 ':3 6 049 26 ,:% %494376 %.96 7 ':86 :11$6 #'426 8." '76 8: 3:; : /376 input f rom ever yone, including t he indust r y to come up w it h a set of 049 26 8&4 :; : 6 ': '126 34 .7 :/74,6 94 "1/7 :.38$6 .76 /116 7 '46 9"1486 -4946
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LEGAL & REGULATORY - PA Act 13: Time Will Tell perfec t,� says DeVoren, who pointed to t he rule st at ing t hat if a well :86 4:3 6 ,9:114, 6 /116 .1,6 -41186 "876 46 :,437 :; :4,6 - :7 ':36 + 6 %447 $6 #'46 problem w it h t his is t hat many wells go back to t he early 1900’s and were not mapped properly. The st ate is t r y ing to burden t he produc t ion companies into ident if y ing t hem now. [Never t heless] it was a prog ressive bill t hat has ser ved as a model for ot her st ates,� explained DeVoren. .-4049 6-/37 :3 6; :3/168/2 67 '46 "3: :&/1:7 :48694% "84,67.6/ 4&767 '46 :116/3,6 8"4,67 '4687 /746/9 ":3 67 '/76:76-/86"3 .387 :7 "7 :.3/167.6&944 &761. /16 .3:3 6 ordinances. The bill was in t he cour t s for most of 2013. On December 19, 2013 t he Pennsylvania Supreme Cour t ruled por t ions of Ac t 13 unconst it ut ional, allow ing local government s to use local .3:3 6 1/-86 7.6 9487 9: 76 ,9:11:3 6 - :7 ':36 7 '4:96 borders. In addit ion, on Januar y 2, 2014, t he Corbet t administ rat ion requested t he PA Supreme Cour t to reconsider it s decision. Only t ime w ill tell if t he December 19t h ruling is upheld or whet her t he bill w ill be rew rit ten in anot her form. Items like t he uniform t a x versus t he impac t fee may be rev isited. On a posit ive note for t he shale, oil and gas indust r y, DeVoren point s out, “Most gas rich areas are happy to have t he shale, oil and gas companies t here,� which would imply business as usual. However, drilling companies aren’t happy about t he new prov isions, especially when it comes to cases where t he municipalit y may reconsider and where t hey ’ve already spent t ime and money evaluat ing an area. In addit ion, municipalit ies could end up spending a g reat deal of money 7 '426 /26 3.76 '/04$6 /9/6 $6 /0 :8 6 59:3 :&/1 6 #'46 /-6 % ; : 486 .%6 /9/6 $6 /0 :8 6 8/28 6 .9." '6 /3,6 7.- 38':&6 .% ; : :/186 w ill likely have to hire eng ineers, addit ional law ; :9 86 /3,6 .7 '496 .38"17 /37 86 :36 .9,496 7.6 &9.&49126 address t hese many complex env ironment al :88"486 -'436 ,9/% 7 :3 6 /6 34-6 .3:3 6 .9,:3/3 4$ 6 Dav is caut ioned, “Draf t ing t his ordinance is an expensive and highly technical process. Plus enforcing it w ill also create numerous addit ional cost s. Just because t he Supreme Cour t has g iven t hese cer t ain right s back to t he local government s, it doesn’t miraculously g ive t hem t he means to properly implement t hem and enforce t hem.�
toget her toward common-sense proposals t hat encourage invest ment in t he Commonwealt h.� Spigelmyer also pointed to t he independent St ate Rev iew of Oil and Nat ural Gas
30 :9.3 437 /16 4 "1/7 :.386 # 6 -': '6 /046 54338210/3:/ 86 oil and gas reg ulator y f ramework high mark s, not ing t hat reg ulat ions -4946 87 943 7 '434,6 8: 3:; : /37 126 7 '9." '6 76 + 86 43'/3 4 437 8$ Only t ime w ill tell what t he f ut ure holds, but for t he t ime being many par t ies - :11687 9" 1467.6 9/8&67 '469/ :; : /7 :.386.%67 '461/-6/3,68" 84!"43769"1:3 8$6 Fut ure proceedings w ill require bot h t ime and money. One fac t t hat is cer t ain is t hat whet her a producer or resident of t he st ate, t he shale oil and gas indust r y and t he reg ulat ions around it af fec t ever yone. The indust r y is here to st ay and our A merican energ y solut ions rely on af fordable, 4% ; : :437 6 8/%46 /3,6 430 :9.3 437 /1126 % 9:43,126 &9. 4,"9486 %.96 8"87 /:3/ :1:7 2$
Shale Media Group (SMG) G) is your news, information, education and mapping resource dedicated to the shale oil and gas industries by messaging across video, Internet , publications, event s and radio. For or more, check out ShaleMediaGroup. com to access all platfo orms, including: TheMarcellusShale.com, The UticaShale. com, TheShaleAcademy.com, and ShaleEnergyNow. Shaleadvantage.com com. In addition, join us on Februar y 20th for Sweetening Up the Shale at Chicco Baccello in Washington, PA f rom 5:00-7:00 pm and on Februar y 21st for our next Elite Energy Event at the Holiday Inn Express in Bentley ville, PA
: 6 7."% %49 6 ,:7.9 6 /86 "8:34886 9:4; :3 6 /6 ,:0 :8:.36 .%6 51/7 7 8 6 4 &1/:34, 6 “Pennsylvania came out of nowhere to become t he count r y ’s t hird largest st ate in nat ural gas produc t ion, behind Texas and A laska. This ruling could slow t he indust r y dow n in terms of produc t ion. Producers have t he opt ion to go to Ohio, West Virg inia or any ot her st ate.� Stouf fer also pointed out, “Ot her st ates, like Ohio, have st ate cont rol, not 7 '46 "3: :&/1:7 :48$6 51"8 6 40436 :%6 /6 87 /746 ,.486 '/046 ; :3/16 8/2 6 :76 ,.483 76 :046 7 '4687 /746&49 :88:.367.6,9:116-'494049$ 6#'4946/946.0496 ) 6 "3: :&/1:7 :486 in Pennsylvania. If a producer is look ing at a new piece of proper t y, t hey need to get permit s. “ Wit hout Ac t 13 in place, t hey would have to go f rom municipalit y to municipalit y, employ ing a lot of t ime, manpower and money. 346 -411 6 ,4&43,:3 6 .36 '.9: .37 /16 ,9:11:3 6 /26 9.886 7 '9446 ,:% %494376 municipalit ies. The work load w it h t hat is mindboggling ,� expressed Stouf fer. Plus, in a recent st atement, Dave Spigelmyer, President, Marcellus Shale Coalit ion, Pit t sburgh, st ated, “The ruling unravels some of t he env ironment al protec t ions created by t he bipar t isan reg ulator y .,493: /7 :.36 1/-6 /3,6 :88486 /36 .&&.9 7 "3:7 26 7.6 487 / 1:8'6 /6 87 /3,/9,6 8476 of rules t hat govern responsible shale development, result ing in weaker env ironment al reg ulat ions and a less compet it ive business climate. If we are to remain compet it ive and our focus is t ruly an improved env ironment, .946 . 6 94/7 :.36 /3,6 4 .3. : 6 &9.8&49:7 2 6 -46 "876 .37 :3"46 7.6 -.9 6
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New Technology
UTILIZING GAS TURBINES TO CONSUME STRANDED ETHANE by Edward Woods, Consultant Development of unconventional gas fields has significantly contributed to our nations natural gas reserves. The Marcellus Shale is one example of this booming market. The western Marcellus gas is ‘wet’ with a mix of natural gas and NGL's. Constituents within NGL's include ethane, propane, butane and pentanes. To meet market requirements, the NGL's need to be separated, or stripped, from the methane to ensure the natural gas sent to consumers has a consistent BTU content. The majority component of the NGL's is ethane, which is used in the manufacture of plastics, anti-freeze and detergent to name a few. Development in unconventional gas has led to an oversupply of ethane in the market. Transport of ethane is costly and can exceed the value of the commodity if it is transported any significant distance to market. As a result, operators of stripping plants are ‘rejecting’ as much ethane as possible back into the pipeline as one alternative to manage the oversupply. Limits on BTU content of pipeline gas restrict the amount of ethane one can reject. Expanded drilling programs and no new demand for ethane on the horizon are putting additional downward price pressure on the commodity for the foreseeable future. With no home for sub-spec gas or excess ethane, operators will not be able to dispose of the commodity and may be forced to limit gas production.
Combustion Turbines. The majority of combustion turbines configured for oil and gas applications are simple-cycle machines with high pressure ratios between incoming air and the combustion stage. The use of high-energy fuels, such as ethane, can rapidly damage combustion components within a high compression-ratio turbine. Developments in Combustion Turbine Technology. Low compressionratio turbines are able to operate on a wide range of fuels up to 1,900 BTU/scf. Recent developments with low pressure ratio turbines include the use of a recuperator to improve thermal efficiency. A recuperator is a heat exchanger mounted in the exhaust stream that transfers heat energy to combustion intake air. A low compression-ratio turbine with a recuperator can operate on ethane or natural gas, whichever is more economical. Low compression-ratio turbines can be fueled with ethane, allowing them to be a power source at gas processing facilities. Two turbine platforms that utilize these technologies are the FlexEnergy MT and Dresser-Rand KG2. To benefit from using surplus ethane as a fuel, one will need to match power and heat requirements of the gas processing facility with the turbine package, identify a suitable location for the turbine and determine routing for fuel, electrical and (optional) hot water lines.
Faced with not being able to sell ethane into the market has the knockon effect of the stripping facilities not being able to process gas, leading to shut-in wells and reduced drilling programs. As a result, owners of stripping plants are looking at new ways to utilize ethane and in the process, optimize their operations. With ethane at $0.23/gallon ($3.45/mmBTU), it is on par with that of natural gas, making it attractive as a fuel. Using ethane as a fuel at the point of stripping it from the gas stream for onsite power generation has numerous benefits including the ability to operate without being impacted by restrictions in the ethane disposal market. Ethane is a ‘hot’ gas, with an energy content of 1,783 BTU/scf. It has a fast flame front and produces high exhaust temperatures. Reviewing prime movers, and their ability to burn ethane to produce power and heat finds few available options: Reciprocating Engines. Gaseous-fueled reciprocating engines are built in a wide range of power outputs. Using ethane as a fuel in reciprocating engines rapidly wears pistons, valves and other internal components due to high combustion and exhaust gas temperatures.
Continued e
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NEW TECHNOLOGY - Utilizing Gas Turbines To Consume Stranded Ethane Installation costs can vary from site to site. For this reason, it is recommended that the turbine package be designed for outdoor operation and skid-mounted. A skid-mounted turbine package will allow for placement on a level gravel pad. Should operational requirements change, the skidded turbine can be hoisted onto a trailer and transported elsewhere. Turbine connections include a primary gas supply of ethane, a secondary of natural gas, electrical and hot water. Electricity can supply facility loads, while hot water can connect into existing hot water systems to provide process heat. Fuel system components are dependent on the fractionation process and where in the system the fuel supply is tapped to fuel the turbine. In extreme instances, a fuel heater may be required to bring the fuel temperature above minimum turbine requirements. Hot fluid systems can connect into the existing facility hot water loop. In some instances, a heat exchanger may need to be used to isolate systems. Most utilities, and the state public utilities commission they operate under have ‘net metering’ rules – regulations and guidance for interfacing with the grid. To properly interface with the grid, a utility paralleling switchgear may be required. A switchgear in this configuration will allow the turbines to power the facility and if needed, draw any additional from the grid. In the event of excess power and a resell agreement is in place, it can be configured to allow export to the grid. Additionally, some states offer incentives for distributed power generation and CHP. Depending on the state, the turbine and its configuration, the CHP system may qualify for tax credits, renewable energy credits or both.
market rapidly negate any expectation of revenue when it is sold. Using stranded ethane as a fuel in select combustion turbines at the point of extraction from the gas stream is a viable solution and supports upstream development activities. When properly configured, these turbines are cost-effective, add value and provide multiple benefits including lower electrical costs, increased electrical security, higher-efficiency energy systems, and improved management of a stranded product. Ed Woods - Bio Edward Woods has over 20 years experience in business development, marketing, product development, product management and value creation in power generation and emissions technologies in the oil & gas and power generation industries. His work with Fortune 100 and Mid-Cap companies as well as portfolio holdings of equity firms has resulted in accurately identifying new market opportunities and customer needs and the concerted development of new products, technologies, associated marketing and sales strategies. Ed earned a Bachelors in Mechanical Engineering Technology and Masters of Science in Management from Purdue University and an MBA from Tilburg University in Holland. He is a member of the Purdue University College of Technology Industrial Advisory Committee, and has been awarded numerous patents for power generation and emissions reduction technologies. Ed’s non-work activities include skiing, mountain biking, cooking and wine. He is currently on assignment with Keystone Drill Services, Somerset, PA. www.keystonedrill.com - Email: ejw@NavitasSystems.com
For the foreseeable future, the glut of ethane will place continued price pressure on the product. Transportation costs of moving the product to
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CANONSBURG, PA WWW.WILDWELL.COM FEBRUARY 10-14, 2014 MARCH 17-20, 2014 WILLIAMSPORT, PA WWW.WILDWELL.COM MARCH 24-27, 2014 WILD WELL CONTROL TRAINING WORK OVER CANONSBURG, PA WWW.WILDWELL.COM FEBRUARY 17-19, 2014 MARCH 24-26, 2014 WILLIAMSPORT, PA WWW.WILDWELL.COM FEBRUARY 10-12, 2014 WILD WELL CONTROL TRAINING WORK OVER & WELL SERVICE CANONSBURG, PA WWW.WILDWELL.COM FEBRUARY 17-21, 2014 MARCH 24-28, 2014 WILLIAMSPORT, PA WWW.WILDWELL.COM FEBRUARY 10-14, 2014 ENERGY INDUSTRY TRAINING - ENGINEERING & SCIENCE WASHINGTON, PA HTTP://YPEPITTSBURGH.ORG FEBRUARY 12, 2014 OSHA 5810 - HAZARDS RECOGNITION AND STANDARDS FOR ON-SHORE OIL AND GAS EXPLORATION & PRODUCTION PITTSBURGH, PA SAFETYANDHEALTH.EXT.WVU.EDU MARCH 18-21, 2014 PIPELINE SAFETY SEMINAR CANONSBURG, PA HTTP://MARCELLUSCOALITION.ORG/ GET-INVOLVED FEBRUARY 25, 2014
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T HE 2013 N ORTHEAST O IL & G AS AWARDS F INALISTS A RE A NNOUNCED With an unprecedented number of entries received for the Northeast region in the Oil & Gas Awards this year, the organizers are pleased to announce the finalist companies selected by the judges as best in class for the Northeast region.
Frac Storage
The Oil & Gas Awards will be holding the “Conference for Excellence” during the day of the gala dinner. The Conference for Excellence will provide a fantastic opportunity for selected finalists to speak on matters important to their business and to the industry. Professionals attending the conference will have further opportunity to network with other finalists and listen to the wide variety of keynote speeches from leaders in the market. There will also be the chance to contribute to panel debates on key topics. Should you wish to attend the conference and dinner, please contact us. 2013 Northeast Oil & Gas Awards Finalists: 84 Energy Supply L.R. Kimball Access Midstream Mascaro Construction Company, LP Alpha Hunter McCutcheon Enterprises, Inc. Anadarko Petroleum Corporation McTish, Kunkel & Associates Baker Hughes New Pig Energy Beemac Trucking Newpark Mats & Integrated Services Canary, LLC NiSource Midstream Services Cara C. Davis Noble Energy Cartasite Noise Solutions Cathedral Energy Services Orion Drilling Company Cenergy, LLC Precision Drilling Civil & Environmental Consultants, Inc. Preferred Sands DA Nolt, Inc. PRL International Drill Baby Drill Staffing PVR Partners, LP Eclipse Resources QC Energy Resources Enersight Range Resources Corporation Environmental Service Laboratories, Inc. Reed Smith LLP EQT Corporation Resource Environmental Solutions Express Energy Services Rockwater Energy Solutions FlexSteel Sage Environmental Consulting, LP Fortis Energy Services, Inc. Select Energy Services Fox Engineering & Construction Sovereign Natural Resources FTS International Stahl Sheaffer Engineering, LLC GAI Consultants, Inc. Steel Nation Inc. GreenHunter Resources, Inc. TEEMCO Gulfport Energy Coporation TekSolv HalenHardy, LLC TETRA® Technologies, Inc. Halliburton The National Lime and Stone Company HexArmor The Thrasher Group Hodgson Russ LLP Total Equipment And Service Hydro Recovery LP Total Equipment Company Infinity Energy Capital, LLC T.P Electric, Inc. Infinity Tool Manufacturing Trinity Consultants IPC Energy Services URS Corporation IPS Engineering / EPC Willbros Group, Inc. Jackson Kelly Worthington Industries Keystone Shale Solutions & East Coast Risk Management The selected finalists will be invited to attend the conference and the gala dinner on Thursday, March 20, 2014 at the Westin Convention Center in Pittsburgh, PA. For more information, please visit our website on: http://www.oilandgasawards.com/northeast-2013/ Or contact us on +210 591 8471
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MAY 13-15, 2014
EASTERN GAS COMPRESSION ROUNDTABLE
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ONG MARKETPLACE - PUTTING ALL THE SHALE PUZZLE PIECES TOGETHER
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Health & Safety
FOCUS ON PERSONAL PROTECTIVE EQUIPMENT EYE PROTECTION For this month’s installment of my series on Personal Protective Equipment, I have decided to focus on the importance of, and different forms of eye protection. The following article will outline some of the regulations surrounding eye and face protection, as well as a few options that are available, and what the best option for certain environments might be.
by the manufacturer so that there is never any question as to whether or not the requirement is being met. The OSHA requirement also stipulates that the face and eye protection equipment shall be kept clean and in good condition, and any eye protection showing structural or optical defects will not count as meeting the requirement. As is the case with most job related injury issues, the first step in keeping workers safe is to assess what risks exist on your job site. The two most important questions to ask yourself when assessing potential risks on your job site are what are the most dangerous jobs (by task or tools used) and what are the most hazardous areas (by location) for the eyes. A few potential eye hazard examples are areas where hammering or grinding takes place, wherever chemicals are handled, areas where welding is done and anywhere people are underneath other workers above them. It is important to remember that windy or dusty conditions can lead to particles in the eye and that simply passing through an area where work is being performed can result in a serious eye injury.
According to the National Institute of Occupational Safety and Health (NIOSH), approximately 2,000 workers have a job related eye injury that requires medical treatment every day in the United States. Almost one third of these injuries require a trip to the emergency room, with 100 of these injuries resulting in one or more days of lost work. The majority of eye injuries are not a result of large objects striking the eye, but smaller particles or objects hitting and scratching the eyeball. These smaller objects, trauma from larger objects striking the face/eye, workers running into objects causing blunt force trauma, and exposures to chemicals or high temperatures can damage the eyes and surrounding tissues, resulting in a permanent loss of vision. The following article will outline the OSHA regulations surrounding eye protection, how to assess the risks on your job site, and what preventative measures can be taken to keep workers protected. Under 29CFR 1926.102, OSHA requires that employees be provided with eye and face protection equipment when machines or operations present potential eye or face injury from physical, chemical, or radiation agents. The eye and face protection equipment required by 29CFR 1926.102 must meet the requirements specified in American National Standards Institute (ANSI) Z87.1-1989. All safety glasses meeting this requirement will be marked with Z87 (or Z87+ if prescription lenses)
NIOSH recommends a 3-Part Eye Safety Strategy for reducing the eye injury hazards at your site. The three part strategy consists of engineering controls, administrative controls and the use of appropriate protective eyewear. The best practice is to use engineering controls, such as machine guards that prevent the escape of particles, welding curtains for arc flash protection and toe kicks on elevated platforms and scaffolding. Examples of administrative controls include making certain areas of the site “off limits”, unless that is the worker’s assigned work area, and simply relocating passage ways out of active work zones. The final part of your 3-part strategy should always be the use of appropriate PPE. This may come in the form of safety glasses, goggles or face shields, and every worker on site should be required to carry and use this protection at all times. The eye protection chosen for specific work situations will depend on the nature and extent of the hazard, the circumstances of exposure, other protective equipment used, and personal vision needs. The eye protection should be fit to the individual or adjustable to provide appropriate coverage, as even a small gap in the wrong place can lead to a serious eye injury. It is important to remember to account for the user’s comfort, and to make sure that the protection provides an unobstructed view and sufficient peripheral vision. The selection of protective eyewear appropriate for a given task should be made based on a hazard assessment of each activity and any regulatory requirements. Several options are available for the different hazards that may exist on the job site, and making sure the appropriate equipment is used is extremely important. Safety glasses are most commonly used in situa-
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HEALTH & SAFETY - Focus on Personal Protective Equipment - Eye Protection tions where the worker may be sawing, hammering or drilling and should offer ample protection for small impacts. Most safety glasses manufactured today are designed as “wrap around” and do not require side shields, but it is important to keep in mind that many eye injuries occur because there is not adequate protection on the sides of the glasses. If you feel as though your safety glasses do not offer enough side protection, side shields can be easily attached to any pair of glasses for added protection. Newer models of safety glasses also offer the ability to change out the standard lenses, usually made of polycarbonate, with steel mesh to keep larger pieces of flying debris from injuring the user. Goggles are stronger than safety glasses and should be used when there is a need for higher impact protection, greater particle protection, chemical splash protection and welding light protection. Goggles being used for splash or particle protection should have indirect venting, where vents are not located on the face of the goggle. Goggles with direct venting, a mesh of small holes around the lenses, will not have as much fogging, but should not be used with liquid or fine dust hazards. When welding with goggles, it is important to make sure that the correct shade number is being used. This shade number will be printed on the lens and will let the user know how dark the lens is. A list of minimum shade numbers for different welding applications can be found by visiting www.OSHA.gov.
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Face shields are used for even higher impact protection, and to add additional protection for the wearer’s face. The important thing to remember about face shields is that they should always be used in addition to goggles or safety glasses. Small particles can easily go around a face shield and the curve of the shield can direct the particles into the eyes. Also, face shields are frequently lifted, which would leave the wearer’s eyes unprotected without safety glasses or goggles. Face shields are most commonly used for tasks such as spraying, chipping and grinding. Now that there is an understanding of the potential hazards for eye injury, and the protection products available, the last piece of the puzzle is to stress the importance of using eye protection to everyone on the job site. Making sure that worker’s put on their protective eyewear as they enter the site, and do not remove it until they leave is one of the easiest ways to ensure everyone’s safety. NIOSH also recommends daily or weekly “toolbox talks” where supervisors can promote discussions on any and all safety topics. For more information on, and guides to leading these talks, please visit www.CDC.gov/NIOSH. By Chris Chadwick, Safety Products Coordinator at SunnySide Supply, Inc. www.SunnySideSupply.com References: “Centers for Disease Control and Prevention.” (n.d.). Web. 18 January 2014. http://www.CDC.gov
The Quick, Accurate Internet Deployment Solution. When Skycasters released their first Nomad AZ/EL Cap to the Oil and Gas industry in 2010, it quickly became the most popular satellite dish aiming system on the market. Installers praised its speed, precision, and ease of use. But we didn’t stop there. With a more rugged elevation crank handle and featuring a new spring-assisted design, our new model has virtually eliminated back lash. Coupled with a new heavy duty support rod and cross support system, the quality and reliability of the Nomad is unsurpassed. Designed for years of hassle-free use, the more often you move your satellite dish, the more you’ll appreciate the Nomad AZ/EL Cap. Call 1-800-268-8653 to get your hands on one today. See all our portable solutions at skycasters.com
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“Occupational Safety and Health Administration.” (n.d.). Web. 22 January 2014. www.OSHA.gov
The Nomad AZ/EL cap is available with any Skycasters fixed equipment package, and comes with an upgraded reflector and more robust hardware. The Nomad AZ/EL Cap can also be purchased separately. Each Nomad AZ/EL Cap comes with a 2-year limited warranty against manufacturing defects. The Nomad AZ/EL Cap has been approved for worldwide deployment by VSAT Systems, LLC. Distribution opportunities are available.
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Environmental Management
OVERCOMING REMOTE ACCESS SOFT SOIL CHALLENGES WITH LIGHTWEIGHT MAT SYSTEMS
by B. Handlos, Business Director/Engineer and K. Hanson, Geological Engineer, Presto Geosystems Construction access over soft soils present a common challenge that project managers face while attempting to complete projects on time and within budget. Soft soil sites located in remote, difficult to access areas make access road or pad construction even more challenging. Legacy construction mat systems are manufactured from materials including timber, laminate, steel and composite mats. They can be effective, but are also costly and can put laborers at risk as they require heavy equipment to install. The ideal mat system for access road construction would be designed to have a high utility-to-weight ratio and would deliver an eco-friendly alternative to current technology. Proven Mat System is Strong, yet Light-weight GeoTerra® lightweight portable mats, made from polyethylene blends, were created by Presto Geosystems in 2003 to meet the needs of major oil and gas companies working in remote areas of the Amazon jungle. Transporting materials to these sites by helicopter precipitated the need for light, yet strong mats for work platforms and roadways. As the first of its kind, the mats capitalize on the sustainable characteristics of recycled polyethylene and offer an efficient, strong design for a variety of remote access applications. The mat system maintains ample structural integrity with a crush strength of 420 psi (2900 kPa), which is well above typical H20 loading pressures of 110 psi (760 kPa).
A next generation GeoTerra mat, GeoTerra GTO was developed to handle difficult applications with a faster connection mechanism. The GeoTerra GTO mats are made from virgin high density polyethylene (HDPE) and have a lower percentage bottom open area, offering higher load distribution and making them even stronger than the GeoTerra mats. The GeoTerra GTO mats’ crush strength of 550 psi (3790 kPa) is more than five times H-20 loading pressures. Their large tabular connections are fastened with a bolt and nut system for quick assembly and disassembly. Safest, Fastest Access to Energy Resources Typical construction mat applications include working platforms for oil and gas exploration, maintenance and access roads to transmission lines, pipelines, and wind power generation facilities, in various aspects of mining operations, creating walkways over soft soils, material storage pads and even in the construction of helipads. GeoTerra® mats are also employed as tracking pads to remove excess soil from vehicle treads. HDPE mats are installed without heavy equipment. This decreases the risk of injury and minimizes equipment needs for constructing the mats. Two GeoTerra styles offer the same high strength and performance, but differ in structure, connectivity and economics. Both mats when interconnected deliver high load transfer between sections and may be pre-assembled into larger mats for quick installation in remote site locations.
The size and shape of the completed mat system can be configured to a site’s unique layout needs. GeoTerra mats are connected to form a strong working construction platform in a remote oilfield location.
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ENVIRONMENTAL MANAGEMENT - Overcoming Remote Access Soft Soil Challenges Construction Components Various geotextiles (woven or non woven) and anchoring components may be required as part of the solution depending upon the site goals. • Nonwoven geotextiles are used for separation purposes only, while woven geotextiles provide added reinforcement. Nonwoven geotextiles are not recommended for use in conjunction with soft soils but are ideal for turf or clay subgrades.
Installed over a high strength geotextile, GeoTerra mats effectively bridge extremely soft soil areas for access to oil and gas, transmission and other energy sources. Low Environmental Disturbance These HDPE mat systems do not degrade, weather, or leach into the subsurface as polyethylene is chemically inert eliminating any potential concerns from environmental agencies. A carbon black component is also added to minimize UV effects. The portable mat system is designed with thick, open cell walls to allow drainage over the entire surface via percolation to the base or using an optional drainage composite layer. Crews can quickly access the site while minimizing disturbance to the native soils. This leads to easier cleanup and increases the vegetation growth following the completion of the project. The ability to dissipate pore water pressure within the existing soil is another benefit of a porous active mat system. Trapped saturated soil moisture under loading leads to increased pore pressure which can create a decrease in the soil load bearing characteristics. A one or two-sided geocomposite may be used in conjunction with the mat system to effectively direct the precipitation off of the working surface if the subgrade has low permissivity. Systems designed to provide drainage decrease the likelihood of project setbacks associated with tracking, rutting, erosion and soil transport and help aid compliance with environmental governing bodies.
GeoTerra GTO mats support heavy equipment and vehicles – more than five times H-20 pressures, and reduce mud tracking.
• High-strength woven geotextiles provide base reinforcement and add tensile strength to the mat system at the geotextile/base interface. Designs may call for different types of high strength woven geotextiles depending on site conditions such as vehicle loading, traffic frequency, expected rainfall and base and subbase permeability. Design flexibility allows for customized solutions to meet the site needs and to reduce overall cost of the system. The Lowest Cost, Fastest Mat to Mobilize GeoTerra mats represent a low life-cycle cost solution as they are reusable. Even the most difficult site challenges can be overcome by combining portable mat systems with the correct underlayer and anchoring system. The cost advantages of GeoTerra mats over legacy mat systems can be as high as 70% less expensive. They allow fast in, fast out access to even the most challenging sites. Bill Handlos, PE, is the Business Director of Presto Geosystems and a registered professional engineer. Kyle Hanson is Presto's Geological Engineer, with focus on Latin American market. For more information, contact Kyle Hanson at 1-920-738-1743 E: kyle.hanson@prestogeo.com
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Industry Insight
BUILDING FOR ENERGY INDEPENDENCE
Real Estate and Infrastructure Opportunities in the Marcellus and Utica Shale By Bruce Rutherford, International Director, Jones Lang LaSalle Roads originally built for horses and buggies are now groaning under the weight of the massive trucks needed for hydraulic fracturing and the construction throughout the Marcellus and Utica Shale plays. Where only small-town infrastructure used to be needed, energy companies now require some of the most sophisticated industrial real estate on the planet. So it begs the question: why are there so few real estate options? While new horizontal drilling technologies promise to keep shale deposits in production for up to 30 years, many still don’t believe the production will remain active that long. The first step toward building sustainable infrastructure is changing that perception. And it is happening: energy companies are demonstrating their commitment through significant investments such as the proposed multi-million dollar Shell Petrochemical Facility in Monaca, PA expected to create more than 10,000 new jobs.
fast; some land leases require active production within as little as three years. Communities and energy companies can clear roadblocks to this economic opportunity together. They need to address inadequate infrastructure, housing and commercial real estate. Here are some collaborations emerging in the Marcellus and Utica shale zones: Infrastructure To build strong infrastructure at speed, energy companies are often self-funded and manage infrastructure projects through third-party experts that identify and execute construction on their behalf. In this region, the collaboration has generally been smooth. They have been using the local roads to move materials for natural gas development, and have been making and funding their own repairs, to a new, improved standard. Another type of infrastructure is also benefitting from oil industry funding--hospitals. For example, the new Endless Mountain Health System’s Hospital has benefitted from royalty funding, and Cabot Oil
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INDUSTRY INSIGHT - Building Energy Independence Gas has donated $3 million dollars to help build a new hospital in Montrose, PA. Other public infrastructure that royalties from drilling has funded, include fishing piers, playgrounds and walking trails. Housing and Retail So far, real estate investors and developers have been hesitant to invest in housing and retail. After all, who wants to build an apartment complex that would be a ghost town in five years? But solutions are emerging as demand is becoming sustainable. Washington County Pennsylvania provides a microcosm of the types of developments happening in the Marcellus and Utica shale regions. More than eight hotels have broken ground in the past year in a less-than-twomile corridor between Interstate 79 and Route 19. Overall economic growth in the County has surpassed $1 billion in less than a decade. Several mixed use projects offer new gas stations, convenience stores and convenience restaurants. Other retail and commercial new enterprises include the investment firm Waddell & Reed, Tender Care Learning Center, Napoli’s Restaurant, a dry cleaners, yogurt shop, and other retail and medical office enterprises. And to address the housing needs of energy companies and others, a 200-unit-plus apartment complex is under construction. Also in process of completion, a Town Center project comprising a 34-acre campus of restaurants, retail, offices and apartments, long seen as a community focal point. Offices and Production Facilities Energy companies have driven a revival in the real estate market in the Pittsburgh area. One new office park hosts the regional headquarters for Consol Energy, Schlumberger, Halliburton, MarkWest and Range Resources. Several million square feet of additional space has been leased since 2009 and is directly attributable to the energy industry, including a significant expansion by support services such as law firms. The Pittsburgh office market rents are at their highest in more than a decade and the market is outpacing national growth. Likewise, vacancies in the Pittsburgh-area industrial facilities have fallen dramatically and unconventional reuse solutions are being found. In one suburban town, for example, a former elementary school has become an operations center. However, near to rural and small town production sites, developers are essentially starting from scratch for both office and industrial facilities. Many of the operations facilities require ceiling heights up to 60 feet, triple a traditional warehouse—and facilities must also meet critical health, safety, security and environmental regulatory requirements to ensure employee and environmental safety. While energy companies typically prefer to lease rather than purchase office space, they build their own in small towns where little is available. Commercial developments in the shale zones tend to feature a mix of office, community-serving medical office, and technical facilities for both oil companies and their supply chain partners. For example, In the Zenith Ridge area of Pennsylvania, engineering simulation software developer Ansys Inc. has committed to moving to a 186,000-square-foot building, and Burns & Scalo erected a second. Southpointe II also benefited from the arrival of Consol Energy and Range Resources and their supply chain partners. In another case, Pennsylvania’s Alta Vista Business Park sold a 9.2-acre parcel of land to Scientific Drilling International, a Houston-based company that expects to employ 150 to 200 in the park. Houston-based Waukesha-Pearce Industries is also creating around 50 jobs. Maximizing production in the Marcellus and Utica shale requires a team
approach involving energy companies, local municipalities and real estate developers. And as horizontal drilling operations expand into remote areas, more advance-planning will be needed to meet infrastructure and real estate needs.
Pittsburgh Industrial/Production Facility Market Snapshot Average rent for space (energy transactions)
$5.00 NNN
Average asking rent for space (Q1 2013)
$4.47
Average annual escalation or bump (market)
2.5%
Availability rate (Q1 2013)
9.0%
Number of facilities under construction
2
Average facility size (s.f.)
37,000
# of owner-user purchases (last 12 months)
30
Avearge price per s.f. purchase
$22.28
Philadelphia Industrial/Production Facility Market Snapshot Average rent for space (energy transactions)
NA
Average asking rent for space (Q1 2013)
$4.09
Average annual escalation or bump (market)
3.0%
Availability rate (Q1 2013)
15.1%
Number of facilities under construction
15
Average facility size (s.f.)
385,000
# of owner-user purchases (last 12 months)
34
Avearge price per s.f. purchase
$42.00
Bruce Rutherford is an International Director of Jones Lang LaSalle and a specialist in Tenant Representation. He is also a Global Energy Practice leader for the firm. He works with clients to create real estate solutions to complex business problems. Email: bruce.rutherford@am.jll.com
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EVERY ISSUE COVERS EVERY ISSUE
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