PRSRT STD U.S. POSTAGE PAID BECKLEY, WV 25801 PERMIT NO.19
JANUARY 2014
P.O. BOX 1441 • OAK HILL, WV 25901 ~ WWW.ONGMARKETPLACE.COM
CASE STUDY: TRI TOOL, INC. - Pages 14-15
ON-SITE FABRICATION
THIS MONTH: MARCELLUS-UTICA MIDSTREAM - JAN. 28-30
CHANGE SERVICE REQUESTED
X X X X X X
ENVIRONMENTAL MANAGEMENT - p 22-23 HEALTH & SAFETY - p 12 INDUSTRY INSIGHT - p 2 LEGAL & REGULATORY - p 20-21 NEW TECHNOLOGY - p 24-25 WATER MANAGEMENT - p 6-7
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Industry Insight
by Greg Kozera- Nabors Completion and Production Services When we began development of the Marcellus Shale six years ago we knew that it could help our country’s energy situation. At the time we didn’t know that it was the second largest natural gas field on the planet and we couldn’t foresee the many jobs it would create or the number of farmers that would become millionaires spending their new found wealth to create even more jobs. We couldn’t foresee the USA becoming the energy gorilla of the world and finally becoming free of OPEC. We couldn’t foresee our country finally being in a position to bring our troops home from the Middle East through the use of natural gas for transportation eliminating the need for OPEC oil. We couldn’t foresee natural gas bills going down, helping the middle class and people on a fixed income like senior citizens. What we didn’t know was that thanks to horizontal drilling and hydraulic fracturing natural gas has become so cheap and abundant that its expanded use has drastically reduced greenhouse gases. The United States is now at 1992 CO2 levels because of expanded natural gas use in power generation and in factories. We almost met the Kyoto treaty guidelines without reducing our standard of living and increasing taxes and the cost of energy to everyone like many of the environmental groups wanted. This all happened thanks to market forces not government. Factories like steel mills and chemical plants are now being built here in the USA (under our environmental regulations) due to our cheap and now abundant energy supply. These plants would have been built overseas where there is little or no environmental law. We are moving to more efficient and less polluting natural gas vehicles. This movement will create jobs and reduce costs to consumers since an equivalent gallon of natural gas is about half the cost of gasoline. CNG & LNG don’t require the polluting refining process to be used as vehicle fuel like gasoline, further cleaning up the planet. Reclaimed well sites and pipeline right of ways are creating a habitat for birds, small animals, butterflies and deer. In Virginia a herd of elk is now thriving for the first time in over 100 years on reclaimed gas well sites (that have been fraced!). The Audubon Society is coming out to these sites to view birds that they have not seen in this area for decades. Compare this to the “green” energy of windmills that kill over 700,000 birds and bats every year according to the U.S. Fish and Wildlife Service. This number is increasing as the number of wind farms increases. I’m still not convinced that climate change is man’s fault or that we can control it since one volcanic eruption can undo all of our CO2 reductions. What if
DAN DUPUIS 1-989-350-4465
we can make a difference? We know CO2 emissions and other pollutants from China, India and developing countries are continuing to increase. These countries want the standard of living that we have. Energy is more important to them than the environment right now. School children in China have recess inside domes with filtered air to protect them from the horrific air pollution. We know that this pollution doesn’t just affect the developing countries. Since we are Spaceship Earth, it also affects us. Mercury levels are highest on our west coast due to air pollution from China and India. These countries and other developing countries don’t have many water or sewage treatment plants that require energy. They still get their water untreated from the same rivers that carry human and other waste. Renewable energy can’t produce the amount of energy they need. They are already using renewables like wood and animal waste. These people don’t care about CO2 emissions. They want food, shelter and clean water to drink. That takes dependable energy. The solution to the world’s energy and environmental problems may be right under our feet with the Marcellus, Utica and our other vast shale reserves. We can use natural gas around the world to reduce CO2 emissions and other pollution as well as improve their standard of living. Isn’t it time to start telling our story? Abundant energy creating a cleaner environment, how cool is that. You are part of it if you are involved in the natural gas industry. We all have a responsibility to tell the story to our friends, relatives, employees and especially online. Be proud. Be vocal. Tell our story. It is a great one! Thoughts to ponder. Greg Kozera is a father and grandfather whose oldest son just returned from deployment in the Middle East. Greg is a registered professional engineer with a masters degree in environmental engineering and over 35 years of experience in the natural gas and oil industry including hydraulic fracturing. He is the author of 3 books and numerous articles and technical papers. Mr. Kozera is the Regional Sales Manager for Nabors Completion & Production Services and also the current President of the Virginia Oil & Gas Association. His latest book, “Just the Fracks Ma’am” is available from all online outlets like Amazon and Barnes and Noble. © 2013 Greg Kozera
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THE NORTHEAST ONG MARKETPLACE
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1993 2013
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YEARS
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YE YEARS ARS
De n dic Ma atio y t i n to Qual
THE NORTHEAST ONG MARKETPLACE
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ASSOCIATION MEETINGS VOGA WINTER MEETING -- WWW.VAOILANDGAS.COM JANUARY 16, 2014 - RICHMOND, VA
IOGAWV WINTER MEETING -- WWW.IOGAWV.COM FEBRUARY 4-5, 2014 - CHARLESTON, WV
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
IPAA MID-YEAR MEETING -- WWW.IPAA.ORG
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OTHER INDUSTRY EVENTS JANUARY 24, 2014 ELITE ENERGY EVENT BREAKFAST BRIEFING BENTLEYVILLE, PA WWW.SHALEMEDIAGROUP.COM JANUARY 30, 2014 SWEETENING UP THE SHALE WASHINGTON, PA WWW.SHALEMEDIAGROUP.COM MARCH 20, 2013 NORTHEAST OIL & GAS AWARDS PITTSBURGH, PA WWW.OILANDGASAWARDS.COM MARCH 26 - 27, 2014 WV DESIGN AND CONSTRUCTION EXPO CHARLESTON, WV WWW.WVEXPO.COM
JUNE 18-20, 2014 - COLORADO SPRINGS, CO
VOGA SUMMER MEETING -- WWW.VAOILANDGAS.COM
JOB FAIRS
JANUARY 25-27, 2014 - VIRGINIA BEACH, VA
FEBRUARY 5, 2013 BUTLER COUNTY NATURAL GAS JOB FAIR LYNDORA, PA VICKIH@BCRNETWORK.COM
IOGANY SUMMER MEETING -- WWW.IOGANY.ORG JULY 16-17, 2014 - FINDLEY LAKE, NY ARTICLES CASE STUDY: On-Site Fabrication . . . . . . . . . . . . . . . . . . .14-15 ENVIRONMENTAL MANAGEMENT: Ohio’s Green Drill Cuttings Solution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22-23 HEALTH & SAFETY: Using The Past To Change The Future .12 INDUSTRY INSIGHT: Saving The Planet . . . . . . . . . . . . . . . . . .2 LEGAL & REGULATORY: Not All Pipelines Are Created Equal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20-21 NEW TECHNOLOGY: Lightning-Free Automation . . . . . . .24-25 WATER MANAGEMENT: Water: The Blood Of The Shale, Oil & Gas Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6-7
CALENDARS Association Meetings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4 Job Fairs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4 Other Industry Events . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4 Training and Workshops Calendar . . . . . . . . . . . . . . . . . . . . . . . .8 Upcoming Events . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10, 18
EVENTS Marcellus-Utica Midstream . . . . . . . . . . . . . . . . . . . . . . . . . . . .19 NAPE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16
ADVERTISER INDEX PAGE Alpine Electric . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 American Refining Group. . . . . . . . . . . . . . . . . . . . 6 Asayo Creative . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Bri-Chem . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Cam-Tek Systems . . . . . . . . . . . . . . . . . . . . . . . . . 5 CPI Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 D&S Industrial Products . . . . . . . . . . . . . . . . . . . 11 DR Wellsite . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Drill Baby Drill Staffing . . . . . . . . . . . . . . . . . . . . 17 Elahs Gas Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Ernst Seed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 ETC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Fairmont Supply . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Godwin Pumps - Xylem . . . . . . . . . . . . . . . . . . . . 8 Hart Automation . . . . . . . . . . . . . . . . . . . . . . . . . . 6 In-Line Plastics . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Keystone Clearwater Solutions . . . . . . . . . . . . . . . 8 Kuhns Brothers . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Layfield Environmental . . . . . . . . . . . . . . . . . . . . 28 Lee Reger Builds . . . . . . . . . . . . . . . . . . . . . . . . . 9 Lightning Energy Services . . . . . . . . . . . . . . . . . 18 Machinery Street . . . . . . . . . . . . . . . . . . . . . . . . . 11 Mansfield Crane . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Marcellus Safety Consulting . . . . . . . . . . . . . . . . . 6 McCluskey & Associates . . . . . . . . . . . . . . . . . . . 25 Mid-Atlantic Storage . . . . . . . . . . . . . . . . . . . . . . . 2 MJ Painting Contractor . . . . . . . . . . . . . . . . . . . . . 5 New River Engineering . . . . . . . . . . . . . . . . . . . . 25 North American Field Services . . . . . . . . . . . . . . 25 PPC Lubricants . . . . . . . . . . . . . . . . . . . . . . . . 9, 25
PSB . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Quality Bridge and Fabrication . . . . . . . . . . . . . . 25 Rig Maids . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 SAMCO Enterprises . . . . . . . . . . . . . . . . . . . . . . 17 Shale Tec (Penn College) . . . . . . . . . . . . . . . . . . . 9 Shannon Safety Products . . . . . . . . . . . . . . . . . . 13 Skycasters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 ST!CK . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Sunnyside Supply . . . . . . . . . . . . . . . . . . . . . . . . 17 Techtonic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Thomas Petroleum . . . . . . . . . . . . . . . . . . . . . . . 17 Tri Tool, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . 14-15 Unit Liner Technologies . . . . . . . . . . . . . . . . . . . . . 7 V-F Controls . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Weavertown Environmental Group . . . . . . . . . . . . 8
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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,$ *+$'*- - &$+$& - ' $ "' *'&)+- '( * &$"'- *&+)'!(-)'!- - * $ *( )*"+" $ )+- ((*(( *'&( $ - )&* - "$(*- - "$+- *(&$' - - "'$&" $' #")!- ' )(& & *- ' $'** $' - - * $' )&* -#*(" *(- - " '! *'&(
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Water Management
WATER: THE BLOOD OF THE SHALE OIL AND GAS INDUSTRY by Kristie Kubovic, Director of Communications, Shale Media Group Edited By: Mindy Gattner, Editor, Shale Media Group Images Provided By: Greg Cook, CEO, Mustang Oilfield Services LLC & midstreamphoto.com In the energy industry, shale, oil and natural gas producers heavily rely on water at a well site. Just as blood carries oxygen to and carbon dioxide from the tissues of the body, water often acts as the primary carrier fluid in both the drilling and hydraulic fracturing processes. According to Greg Cook, CEO, Mustang Oilfield Services LLC, one horizontal shale gas well usually exhausts around six million gallons of water in the various stages from drilling to hydraulic fracturing. The water is obtained from various water sources such as lakes, rivers, municipal supplies and/or groundwater. If water is not readily available at a well-site or not permitted, shale, oil and gas companies will often hire a water hauling company, such as Mustang Oilfield Services, to truck in the necessary water.
Most trucks that haul water to a well site hold around 100 to 130 barrels of water. The amount of trips to a well-site and the timing of them vary per well-site and are dependent on site storage, which includes frac tanks, above ground water containment and impoundment ponds. Cook says, “More water is employed during hydraulic fracturing than during drilling, so the amount of freshwater being hauled in varies; however, with flowback water there is a constant draw, which yields a steady exit of trucks hauling water out.”
“Mustang Oilfield Services hauls freshwater to a well site for the various phases of drilling and hydraulic fracturing. In addition, it is our responsibility to haul the flowback water off the well site,” explained Cook, who also noted, “Sometimes it is our job to find one or more freshwater sources, while at other times the energy company will dictate the water source. This also pertains to disposal locations for the flowback water as well.”
77 North Kendall Avenue • Bradford, PA 16701 • ISO Certified Ph: 814.368.1200 • Fax: 814.368.1335 • www.amref.com
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Cook informed, “The big push going forward is to use temporary pipelines to pump and transfer water short distances from the water source to the well-site. Due to the impact that frequent truck trips have on infrastructure, producers can save up to 50 percent by using a pipeline to transfer water if the distance is under a couple miles. However, some producers are using pipelines for water transfer for up to eight to ten miles. It all depends on the number of wells and hydraulicfractures to see if the increased pipeline distance is worth reducing the usage of water hauling trucks.”
Continued e
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WATER MANAGEMENT - Water: The Blood Of The Shale Oil And Gas Industry thing that the industry as a whole is working on very diligently to minimize water used,� explained Don Dempsey, Principle, Dempsey Sight Management Services, LLC. Every producer has different views on water and how to use it, whether bringing it in via truck or pipe and on recycling/reusing it or not. Many times it trickles down to a cost benefit analysis and what is best for wherever the producer is drilling. One item is for certain: water is the blood of the shale, oil and gas industry and will be used one way or another.
A growing trend in the industry and another way to cut back on the amount of water trucked on and off of a well site is to reuse, recycle and process water on site. Companies are developing new treatment technologies to take water that is used in one form of drilling and filter or purify it, so that it may be utilized for other functions. “Companies are doing chemical injections at well-sites to treat water. The problem that producers seemingly have to deal with is that they need to find the right balance in water chemistry to get the best production results. There isn’t a universal fix for this problem due to the fact that each well has a different water chemistry from the flowback. Brine, a solution of salt in water, is the biggest issue, which can be tackled a number of ways, including desalinization and reverse osmosis. Each producer has to look at an individual well and see what works best for them in order to get the right chemistry and maximize production results. This is some-
Shale Media Group (SMG) is your news, information, education and mapping resource dedicated to the shale, oil and gas industries by messaging across video, Internet, publications, events and radio. For more, check out ShaleMediaGroup.com to access all platforms, including: TheMarcellusShale.com, The UticaShale.com, TheShaleAcademy.com, Shaleadvantage.com and ShaleEnergyNow.com. In addition, join us on January 24th for our next Elite Energy Event at the Holiday Inn Express in Bentleyville, PA from 8:30am-1:00pm and on January 30th for Sweetening Up the Shale at The Toffee House in Washington, PA from 5:00-7:00 pm. Register or find more details at ShaleMediaGroup.com.
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PAGE 9
Lewisburg Warehouse/ Office space for lease
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Bri-Chem Supply Corp. is in the business of warehousing and delivering products used for drilling, cementing, completing and producing oil & gas wells. Bri-Chem Supply also provides products in the mining, water treatment, water well drilling, environmental remediation and construction industries.
ShaleTEC serves as the central resource for workforce development and education needs of the community and the oil and natural gas industry.
Shale Training & Education Center A collaboration of Pennsylvania College of Technology and Penn State Extension
Classes can be customized to meet your company’s needs and held at a ShaleTEC location (below) or company site. Penn College
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This course provides an overview of state-of-the-art fall protection technology and current OSHA requirements, along with hands-on exercises. Topics include: Principles of fall protection Components of fall arrest system
Our facilities in the Northeast is located at 59 Leetsdale Industrial Drive, Leetsdale, Pennsylvania and 318 North Elmer Ave., Sayre Pennsylvania Facilities Manager: Ken Hicks Phone: 724-318-8153 Fax: 724-385-0471 Cell: 570-637-6530 Northeast Sales & Marketing Manager: James Browder Cell: 512-587-5701 The Leetsdale facility has a complete Liquid Mud Mixing Plant for Oil Mud Based Fluids.
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Bri-Chem Supply aims to be your source for all of your drilling fluids additive needs. Visit our main web site at: www.brichemsupplycorp.com Product Data & MSDS: https://sites.google.com/site/brichemsupplycorpllc/ Soda Ash Direct: www.sodaashdirect.com Bentonite Direct: www.bentonitesupplier.com CaNitrate Direct: www.canitratedirect.com
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JANUARY 14, 2014
SPE PITTSBURGH: OPTIMIZED SHALE RESOURCE DEVELOPMENT
CARNEGIE PA
JANUARY 28-30, 2014
MARCELLUS-UTICA MIDSTREAM CONFERENCE & EXHIBITION
PITTSBURGH PA
FEBRUARY 18-20, 2014
ALTERNATIVE FUELING EXPO & CONFERENCE
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FEBRUARY 26-27, 2014
EMBRACING ENERGY: A CONFERENCE FOR WOMEN
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Health & Safety
2013 IN REVIEW:
USING THE PAST TO CHANGE THE FUTURE In my November installment, I promised to write a series on different forms of Personal Protective Equipment (PPE) and discuss what to consider when trying selecting what’s best for you and your workers. For the first article of 2014, I have decided to put the PPE series on hold, but will resume in February with an article on different types of gloves and the importance of protecting your hands. This month’s article will outline the importance of doing an annual review and audit of all safety rules and practices within your organization, as well of the importance of looking back at any and all of the accidents or near misses that have been reported over the last year. Equally important to the review process is looking into what ideas and procedures have worked for your company over the last year. It is important to see where you have been in order to get a good idea of where you are going. As you begin to reflect on the past year, the first thing to look at is whether or not there is a safety plan in place. If no safety plan exists, it is very important that one be created. Without standard operating safety procedures for an emergency, and everyday operations, not only are you left susceptible to accidental injury, it can also create confusion in the event of an emergency. The strategic goal of this plan should always be to create the safest working environment and conditions possible for all employees. A good first step would be to create a safety committee that not only includes supervisors but also general employees. Make sure to create an atmosphere that allows for the free exchange of ideas, and where employees can bring their safety concerns without the fear of retribution. From this point, the development of a good safety plan will depend on the needs and applications of your organization. If you already have a safety plan in place, there is always room for improvement. Administering a self-audit is the best course of action for annually reviewing your safety plan. Look at any and all accidents that have occurred over the past year, recordable or not, and try to determine what part of your plan could be adjusted to avoid a similar accident in the future. If your organization has not had any accidents occur, it is still important to audit your safety procedures to see where positive adjustments can be made. As you begin to review the safety issues you have faced in 2013, try to connect each incident with its root cause. This is the easy part. The safety issue is the result, what was the action that caused it? This could be a faulty piece of equipment, an issue with your safety plan, or an employee that simply doesn’t follow the rules. Whatever the root cause may be, if it is not addressed as soon as possible then it is only a matter of time before it happens again. Replacing faulty equipment, adjusting your safety procedures or terminating an employee with a bad attitude before an accident occurs is much easier than cleaning up the mess after the fact. Once the root cause of any issue you have
had is defined, making sure the same type of accident doesn’t happen again is as easy as changing your procedures. You can’t keep every accident from happening, but doing everything you can to try is always the best practice. Along with defining the root causes of the safety issues you have faced in 2013, attempt to break down the issues to the specific application where they took place. For example, if you are a testing company, try to determine if you had more accidents in the lab, on your loading dock or in the field. By defining what branch of your organization has the most issues, you can then begin to work out the solutions to the issues you are facing. This will also help to increase awareness to what parts of your business need the most help. Now that you have reviewed what problems you have faced over the past year, take time to review where and when a change was made that created a safer environment. If you have implemented a hearing safety program and are noticing a decline in work-related hearing problems, take note and notify workers of the improvement. Pointing out when safety implementations have been successful is one of the best ways to show workers that changing habits and following guidelines really will create positive change. Calling a meeting to discuss with workers what positive effects any new procedures have had is also a good time to discuss any new rules or procedures that will be implemented next. So, now that you have reviewed your safety issues, your safety guidelines, and all of the positive implementations from the past 12 months, now what? The final piece of this puzzle is the most important of all, act on the information you have collected. If you found a hole in a safety guideline, change the procedure. If you have an employee that doesn’t follow the rules and could hurt himself or someone else, get rid of them. If you have a piece of equipment that is in bad shape and could hurt someone on your site, replace it. Any organization can have a standard operating procedure for safety, but the difference is made in the implementation and the actions of the people in charge. By taking the time to carefully review your safety practices, procedures and rules you can not only save the lives of every person working your site, but also your own. Safety is a very important part of our industry, and with good reason. Take the time, be honest with the information and do what you can to make changes to be proactive, and 2014 might just be your organization’s safest year yet. For more information on how to develop or improve your company’s safety plan, please visit the Occupational Safety and Health Administration’s website at www.OSHA.gov. By Chris Chadwick, Safety Products Coordinator at SunnySide Supply, Inc. www.SunnySideSupply.com
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Instructors Needed! The School of Petroleum & Natural Gas of Lackawanna College is looking for full and part time instructors with degrees in the following disciplines: Engineering Computer Science Physical Science Bachelor’s Degree or Higher is required. Experience in Upstream, Midstream, Downstream or Petrochemical Industry sectors preferred Please send resumes to: The School of Petroleum & Natural Gas/Lackawanna College State Route 848 New Milford, PA 18834
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CHALLENGED WITH A MAJOR CRYOGENIC GAS PROCESSING PROJECT IN THE MARCELLUS AND UTICA SHALES, THE SAUER GROUP FINDS A RELIABLE PARTNER WITH TRI TOOL INC. THE CHALLENGE: Faced with the largest undertaking of its kind in its +100 year history, the Sauer Group staked its professional reputation on successful completion of this project for Mark West Energy Partners. The project scope called for outdoor installation of 1,920 linear feet of 36” – 42” O.D. X 1” wall “Finger-Type Slugcatchers” fabricated from seam welded High Grade API 5L X 70 pressure piping utilizing ER70S2 high tensile strength filler material. Tasks identified in initial planning included restoring shop fabricated spool ends to specification, precision machining a total of 54 weld joints to assure proper fit-up and performing 100% X-Ray welds at accelerated deposition rates. Prior experience with Tri Tool’s field machining services led the Sauer Group to consult Tri Tool for a comprehensive field machining and welding solution. Performing FCAW with Tri Tool’s patented AdaptARC® system running two DualARC® weld heads simultaneously in a mock-up of comparable materials and size ranges demonstrated that deposition rates typical of more conventional, manual methods could be far exceeded, yielding a substantial competitive advantage.
THE SOLUTION: Working with the Sauer Group and Mark West Energy Partners, Tri Tool Inc. developed, tested and validated weld procedures per ASME B31.8 and deployed certified Project Management, Machinists, Welders, patented Tri Tool portable machine tools and AdaptARC® welding systems. To meet schedule constraints, two sets of two weld heads, each operating in tandem and loaded with 1/16” wire were run simultaneously, laying a total of 160 - 240 lbs. of filler material per day. Emergent needs presented challenges to both quality and schedule. Out-of round pipe identified on site required I.D. weld overlay and counter-boring to achieve fit-up while maintaining minimum wall thickness. Working outdoors subjected critical equipment to severe conditions, but the rugged construction of the AdaptARC® plus the initial assessment and qualifications of the FCAW processes facilitated a 0.6% weld reject rate. With over 40 years of service to heavy industry worldwide and over 200 man-years leadership experience in engineering and project management, Tri Tool Inc. is the only service provider deploying both precision field machining and mechanized welding systems of its own patented design and
THE NORTHEAST ONG MARKETPLACE manufacture – the only true sole source for both specialty field machining and welding solutions. This unique set of experience, capabilities, manufacturing capacity and inventory enabled Tri Tool to redesign a torch head to perform the large bore eccentric I.D. weld overlay, counter-bore, weld prep and finished welds in under 36 hours from identification to weld-out. Tri Tool’s ability as an OEM to provide an uninterrupted supply of consumables and wear parts assures the project continues running smoothly while feeding lessons learned on client job sites to Tri Tool’s engineering staff. This encourages continuous improvement – in service, equipment design, performance and reliability. Tri Tool’s expertise lies in applications engineering and execution of industry specific field machining and welding solutions. Tri Tool Inc. is committed to the safe and successful completion of its clients’ projects, on schedule and within budget. Excellence and exceptional value delivered through a comprehensive consultative approach to field machining and welding solutions are Tri Tool’s stock in trade. Building successful teams with all stakeholders and partners to safely execute our contracts is our highest priority in delivering quality performance.
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As The LNG Market Continues To Expand, Rely On Tri Tool, Inc. - 1-800-345-5015 customer.service@tritool.com
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S ERVING T HE M ARCELLUS & U TICA S HALE ’ S F OR A LL YOUR C OMPRESSOR N EEDS
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Legal & Regulatory
NOT ALL PIPELINES ARE CREATED EQUAL by Kristie Kubovic, Director of Communications, Shale Media Group Edited By: Chris Stroyne, Editor, Shale Media Group The natural gas industry is generally broken into three sectors: upstream, midstream and downstream. Upstream is the first stage and involves exploration and production. The midstream stage is associated with the processing, storing, transporting and marketing of natural gas; the final stage, downstream, is after production through the point of sale. Upstream development in the Marcellus and Utica shale plays has surpassed the midstream takeaway capacity, so there is accelerated midstream construction in an effort to move the energy source to market. “We are at a crossroads. The industry has been widely successful at poking holes in the ground to see and understand what energy lies beneath our soil. However, we need to move this shale, oil and gas through pipelines to other shipment points. These pipelines need permitted and this process opens a whole landscape of legal concerns which are not historically new, but are relatively new to this region,” related Tejas Gosai, Founder, Shale Media Group.
Cara C. Davis, Principal, The Law Offices of Cara C. Davis, says, “Securing gathering pipelines can be an interesting process depending on whether or not the concerned landowners own their oil and gas rights. Generally, if the landowners are oil and gas owners, and their interests are leased, they are much more apt to executing the necessary documents. On the other hand, when the landowners are only the surface owners, it can be more complicated to the extent that the incentives to cooperate are different. As part of the upstream process, well before midstream is reached, our title attorneys act as a system of checks and balances. Well-operators avoid many obstacles by negotiating around adverse conditions discovered during the title process, including already existing rights-ofway.” Potential liability issues are always of paramount concern, which is why well-operators routinely rely on title attorneys to render opinions. Davis also added, “It is also important for midstream pipeline companies and well-operators to craft contracts that address complex issues relating to title, regulatory affairs and the environment that shouldn’t rear their ugly head, but inevitably will.” Once titles are cleared, permits for the pipelines can be addressed and issued.
Not all pipelines are created equal. First off, there are three primary types of pipelines: gathering, transportation and distribution. Rick Stouffer, Editor, Gas Business Briefing, a Division of Platts, explained, “The gathering line, a small diameter line, which comes from the well itself, flows the product to a treatment or processing facility that ‘cleans’ the oil or gas. From those facilities, larger massive interstate transportation pipelines, typically with 42 to 48 inch diameters, employ high pressure to make the refined products flow between cities and even countries.” Finally, smaller diameter distribution pipelines transport the product to the consumer.
Different pipelines have various regulations and require different permits. Also, every state has its own regulations, in addition to national regulations, which fall under the Federal Energy Regulatory Commission (FERC) for Interstate Transmission Lines receiving a Certificate of Public Convenience and the U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration. For example, Stouffer relayed, “There is no rule of thumb for pipeline permitting. They are all different and often terrain-dependent. For example, a big problem for pipeline development in Pennsylvania is that we have a lot of streams and creeks, which all need permitted. The pipelines must either go over or under them. A lot of companies from outside the area didn’t realize how many small streams and creeks we have and how big of a deal this is.” “As horizontal directional drilling became commonplace, companies were pressured to bore under streams versus trenching through them or going over them; however, if subsurface conditions aren’t conducive, the drilling muds may be forced upward into the streams. Each crossing should be evaluated for the least impactful crossing technique,”
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LEGAL & REGULATORY - Not All Pipelines Are Created Equal explained Jim Daley, PMP, Director of Environmental Services, NGE. In discussing other environmental protections, Daley stated, “The FERC process is a rigorous one because it entails conformance with the National Environmental Policy Act (NEPA) and related Council on Environmental Quality (CEQ) regulations, which require Environmental Assessments (EA) or Environmental Impact Statements (EIS) and have a significant focus on natural resources, wetlands, cultural resource impacts and threatened or endangered (T & E) flora and fauna, including bats, snakes, mussels or even particular plant species.”
Both Krancer and Daley also brought up public safety concerns that stem from major pipeline explosions like the 2011 explosion in Allentown, PA. “That incident, and many like it, stemmed from nearly 100 year-old cast-iron pipe. These old systems are the most vulnerable,” expressed Krancer. Daley added, “The problem isn’t with the strict monitored and regulated, recently constructed lines, but rather the old underground infrastructure. We now need to invest in and replace this old underground infrastructure.”
Some midstream companies have a robust regulatory permitting staff, while others will hire an environmental consultant to assist with some elements like environmental screenings to look for known T & E species or habitats. Daley related, “For example, in Pennsylvania, if there is potential habitat for the Massasauga rattlesnake, the company would need to coordinate with the Fish and Boat Commission (FBC) and possibly perform studies that would include placement of metal sheets on the ground to attract snakes to warmth under these sheets. If the building of a pipeline would affect the habitat of an endangered species, such as the federally listed Indiana bat, which hibernates in the winter and can roost under loose tree bark the rest of the year, it can delay a project by six to eight months.”
One thing is for certain, from their size to their purpose, no two pipelines are exactly alike. When you add in the legal and regulatory requirements associated with their environmental and safety permitting that is certainly the case. Images Courtesy of Jim Daley, PMP, Director of Environmental Services, NGE (Taken on State Gamelands 39 in Venango County, PA, showing how well pipeline Right-of-Way’s can be restored) The amount of time required to obtain a permit varies on the type of permit, the circumstances surrounding it and the agencies involved. For example, according to Daley, the Pennsylvania Department of Environmental Protection’s (DEP) Erosion Sedimentation Control General Permit typically takes about one to two months of preparation, working on items like erosion sediment control and pipeline restoration plans. Once submitted, the decision is generally rendered in 30-60 days. However, Daley says in some instances where the U.S. Army Corps of Engineers also becomes involved in issuance, it can take up to five months to acquire. Michael Krancer, Former Secretary of the PA DEP, and Partner, Blank Rome LLP, explained, “Our objective is to have the most efficient, timely review possible with all appropriate safety measures. We have something in Pennsylvania called the Permit Decision Guarantee, which requires the DEP to assess how to best make timely permitting decisions and provide clear expectations for applicants to improve the application quality. Our people do everything possible for intense permit coordination to meet the various needs involved.” As for safety, the PA Public Utility Commission (PUC) adopted the Gas and Hazardous Liquids Pipelines Act, also known as the Pipeline Act or Act 127, in 2011. Krancer pointed out that many companies were and still are ahead of their time, going beyond what is required for pipeline construction.
Shale Media Group (SMG) is your news, information, education and mapping resource dedicated to the shale, oil and gas industries by messaging across video, Internet, publications, events and radio. For more, check out ShaleMediaGroup.com to access all platforms, including: TheMarcellusShale.com, The UticaShale.com, TheShaleAcademy.com, Shaleadvantage.com and ShaleEnergyNow.com.
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Environmental Management
OHIO’S GREEN DRILL CUTTINGS DISPOSAL SOLUTION by Chris Elliot - Ohio Soil Recycling Ohio Soil Recycling, LLC is using an innovative process know as enhanced bioremediation to provide a green disposal alternative for oil and gas exploration generated drill cuttings. The process uses billions of specifically cultured microbes which consume petroleum hydrocarbons found in drilling muds as well as any naturally occurring hydrocarbons found in the shale formations. The end product is drill cuttings with petroleum hydrocarbon concentrations below residential reuse levels which the company has been permitted to beneficially reuse as clean hard-fill. Ohio Soil Recycling has been in the business of remediating contaminated soil from underground storage tank removals, brownfield site restorations and emergency response clean-ups for the past 13 years at its Columbus, Ohio based facility. The 58-acre facility, recently upgraded and expanded in 2010, includes a 1,600 x 800 feet treatment pad on which all contaminated materials are handled and processed. The treatment pad is protected by a 40-mil liner and associated storm water collection system that provides a closed-loop method of handling and reusing all waters that come into contact with soil and cuttings on the pad. Prior to Ohio Soil Recycling winning approval from the Ohio EPA for their green drill cuttings disposal solution, the only option for oil and gas producers and drillers was to send the cuttings to landfills. The cuttings sent to landfills are simply pushed into the hole with the standard municipal and sanitary wastes typically accepted. This opens the door for the petroleum hydrocarbons to end up coming out in the landfill’s leachate thus increasing the potential risk for future liability concerns for the producers. In addi-
tion, the cuttings take up valuable landfill space originally constructed for more traditional waste streams, and the fines from the cuttings have been found to clog the landfills leachate systems over time resulting in expensive repair efforts. The opportunity to provide a solution was presented to Ohio Soil Recycling when Environmental Management Specialists, Inc. (EMS), a client providing well pad environmental services to the industry, was approached in 2011 by one of the prominent producers working in the Marcellus and Utica formations. The producer tasked EMS with coming up with a green solution for drill cuttings to aid in the producer’s efforts toward a zero-landfill goal. Having worked together for many years, EMS turned to Ohio Soil Recycling for their remediation expertise. R & D efforts were started immediately and shortly thereafter Ohio Soil Recycling applied for a permit from the Ohio EPA. The permitting process lasted nineteen months and included a five month pilot study in which Ohio Soil Recycling demonstrated that their enhanced bioremediation process could successfully remediate even the most impacted drill cuttings. The pilot was also performed at the worst time of year – in the winter when the microbes typically slow down. Over the course of the pilot study, drill cuttings with over 100,000 parts-per-million (ppm) petroleum hydrocarbon concentrations were reduced to approximately than 1,200 ppm, which is almost 1,000 ppm below Ohio’s residential standard.
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ENVIRONMENTAL MANAGEMENT - Ohio’s Green Drill Cuttings Disposal Solution At its most basic, Ohio Soil Recycling’s bioremediation process is a simple biological consumption process which takes place in nature all of the time. A representative for Ohio Soil Recycling points out, “We are basically taking what Mother Nature would do on her own over the course of tens of thousands of years and speeding it up by greatly increasing the plate counts of these naturally occurring microbes. The only by-products of the natural metabolic consumption process are carbon, water and bio-mass. Once the contaminant food source is depleted, the microbes die off and return to a steady state.”
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To grow the new drill cuttings remediation and recycling business, Ohio Soil Recycling, LLC and Environmental Management Specialists, Inc. have teamed up to form Shale Recycling, LLC. The new venture is currently accepting drill cuttings for remediation and subsequent beneficial reuse at Ohio Soil Recycling’s Columbus, Ohio facility and has plans to add 1-2 more facilities in eastern Ohio in 2014 to better serve the oil and gas industry. A representative of Environmental Management Specialists noted, “We have already had an unbelievable amount of interest from producers wanting to do the green thing and at the same time reduce their liability associated with this waste stream. By locating facilities closer to the play, we will be able to keep transportation rates lower and be able to serve a greater portion of the industry going forward.” Christian (Chris) Elliott founded Ohio Soil Recycling, LLC in 2000 with the goal of providing the most cost effective and environmentally sound remediation and disposal option for contaminated soils. Mr. Elliott has a BS in Geology and Environmental Studies from Denison University and an MBA from Capital University. Mr. Elliott began his carrier as a Staff Geologist for SEI in Raleigh, NC and also served as the General Manager of an Earthtec Environmental, Inc. bioremediation facility from 1996-2000.
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New Technology
L I G H T N I N G - F R E E A U T O M AT I O N by Jim Gardner, Regional Vice President Sales, OleumTech What if you could install lightning-free automation? Well, now you can. Wireless automation has changed the paradigm associated with lightning damage to oilfield automation.
Some damage is immediately apparent such as arc burns. Other damages may be hidden and result in premature failure at a later date. A single strike that seemingly yields no damage often drastically reduces the life expectancy of this sensitive and expensive equipment
Background
The answer is simple: when you remove the buried copper cables, you remove the path for induced power surges.
Historically, oil & gas automation has relied heavily on the direct burial of cable for signal communication from remote devices back to a central controller. This cable acts as a copper conductor for power transients (indirect lightning strikes). A majority of all automation damage is caused by indirect lightning strikes. Copper cable buried on a location acts like an antenna picking up all inducted power surges from the surrounding area. Most damage is caused by lightning that strikes long distances away leading to power transients that travel through the ground to the maze of wires buried on a production location. Although the lightning did not directly hit the object on the ground, the electromagnetic field that lightning produced does. The surge induced by lightning travels to any conductive material nearby. According to Faraday’s Law, the magnitude of the induced surge will be dependent on the length of the wire available. Due to the low voltages normally used in data transmission cables and the sensitivity of the electronic equipment attached to it, oil & gas automation equipment is extremely susceptible to this kind of induced voltage. Increasing the cable length creates a greater risk for potential damage. With the tremendous expansion of oilfield automation equipment the potential for damage has grown. It does not take much of an over-voltage to cause arcing between components on printed circuit boards and subsequent damage.
Why Go Wireless?
With Wireless I/O, there are no wired paths for the induced electrical energy to pass from one piece of equipment to another. Therefore, when there is a direct strike, the maximum damage can only be losing a piece of wireless instrument and not affecting any other equipment on location.
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NEW TECHNOLOGY - Lightning-Free Automation • • • • • • • • • • • • •
Safety Many concerns have been raised about the inherent safety of wireless automation. Typical questions voiced by operators are over their concerns about communication failures from the remote radios. Some manufacturers have added communications to the list of data that each device returns. When you contrast this with a wired solution, it becomes apparent that you have gained the ability to generate alarms early rather than having to wait for catastrophic failure.
RTU/EFM I/O Extensions ESD Pipeline Cathodic Protection Rectifier Voltage Monitoring Gas Flow Measurement Pipeline Pressure and Valve Monitoring Raw Material Tank Levels Flare Temperature Monitoring Pressure Relief and Shut-off Valves Steam Trap Monitoring Flow Meter Monitoring Rail Car High Level Alarm Monitoring Safety Showers
Summary Wireless oil & gas automation has been gaining acceptance for over 10 years. In that time, manufacturers have increased the breadth of the product offered to include every aspect of process control in an upstream oil and gas production facility or a multi-well production pad. The benefits of wireless are numerous. But to me, the most compelling benefit is the elimination of lightning damage on oil & gas production locations. Near real-time data retrieval has become a mandate in many companies. Production optimization, theft prevention, gas allocations, and production balances are considered critical.
Oil & Gas Wireless Applications • • • • • • • • • • • • • • •
General George Patton is credited with saying “A soldier should never have to fight a battle over the same ground twice” For us in the oil & gas automation industry, it would be fair to paraphrase this and say a technician should never have to automate the same location twice. Interestingly, the geographic areas where the most lightning strikes occur annually are also the areas where we are currently seeing the many new wells being drilled. There is no reason to think that the lightning pattern will soon change. However, there are ample reasons to think that we have the ability to change our practices, and therefore, change the result.
Tank Level High Level Alarms Casing pressure Tubing Pressure Valve Control Plunger Lift Optimization Flow Monitoring and Totalization Separator Level Separator Temperature Compressor Monitoring Chemical Tank Monitoring Sump Level Monitoring Flow Back Tank Monitoring Fuel Tank Monitoring during Fracking Sand Filter Levels
Shawn Smith-STLE Certified Director PPC Nat Gas Solutions Cell: 724-831-9564 Email: ssmith@ppclubricants.com
Jim has been in the Oil and Gas industry since 1975 and started working on the North Slope of Alaska, 250 miles inside the Arctic Circle. He has held several prestigious positions including Vice President General Manager, Director of Business Development, and Regional Manager.
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