YOUR BUSINESS YOUR BUSINESS ACCEPTS NO EXCUSES, ACCEPTS EXCUSES, NEITHER DO NEITHER DOWE. WE. The oil and gas industry is tough work. Tight budgets and short deadlines are everyday challenges. At Wagner Rents The gas Cat®industry Rental Store, we know Sobudgets we provide notdeadlines only with aare complete range of Cat The oil and is tough work.that. Tight andyou short everyday challenges. ® brands, but also with the second-to-none quality service from Wagner to keep you up and other quality Atequipment Wagner Rents The Cat Rental Store, we know that. So we provide you not only with a complete range of Cat
and running in all circumstances. equipment and other quality brands, but also with the second-to-none quality service from Wagner to keep you up
and running in all circumstances.
2 ENERGY PIPELINE AUGUST 2016 WagnerRents-GAF-2016.indd 1
7/14/2016 3:36:59 PM
WELD COUNTY GARAGE • TRUCK CITY
“GMC MEANS BUSINESS”
3 FLATBEDS 3 UTILITY BODY TRUCKS 3 PICKUPS 3 CUSTOM BODIES
SERVING WELD COUNTY FOR OVER 100 YEARS Special Certifications • ASE Certified Technicians • GM World-Class Technicians • Isuzu Certified Repair • Workhorse RV Warranty Center • Allison Transmission Repair Center • IMPCO CNG Certified Installer
We Service All Makes & Models • • • •
GMC Ford Isuzu Trailers
• Chevy • Dodge • Recreational Vehicles • CNG & Propane Units
1415 1st Avenue 970.352.7200 www.ColoradoTruckCity.com
Benefits To You
• Fleet Discounts Available • We Work With Enterprise Fleet, ARI Fleet & Other Fleet Management Companies • Quick Turnaround On Our Parts Means Less Vehicles Downtime • Scheduled Preventive Maintenance Minimizes Costly Breakdowns
34 Bypass & 47th Avenue 970.352.1313 www.WeldCountyGarage.com
DRIVEN TO DO WHAT’S RIGHT
AUGUST 2016 ENERGY PIPELINE 3
Features
8
10
URSA RESOURCES
HAZMAT TRAINING
Garfield County opts to work with oil, gas company in well pad siting process.
Firefighters practice hazardous material operations with Halliburton.
By Ryan Hoffman
By James Redmond
ON THE COVER Design by Joshua Aho
Departments
16 EARTHQUAKES!
Man-made earthquakes a possibility and concern in Colorado. By Dan Larson
4 ENERGY PIPELINE AUGUST 2016
12
Executive Profile
14
Tech Talk
21
Making Hole
Meet Stan Dempsey, Colorado Petroleum Association
Isn’t produced water too salty for irrigating crops. By Gary Beers
PLUTO fuels WWII victory. By Bruce Wells
1314 N 7th Ave 970-356-1879
TitanDJ.com
Titan Solutions prides ourselves on providing superior customer service to our clients with an environmentally and safety conscious focus. We are positioned to be a premier leader in the oil and gas industry with over 35 years of combined ownership experience. Titan Solutions is dedicated to being a company you can turn to for providing solutions:
• GeoGrip 36 MIL Containment • Hauling Services • LED Light Towers • Rolloff Dumpsters • Rental Equipment • Well Head Stands http://www.titandj.com AUGUST 2016 ENERGY PIPELINE 5
ENERGY is your
BUSINESS PUBLISHER Bryce Jacobson EDITOR Randy Bangert GENERAL MANAGER Bart Smith BUSINESS MANAGER Doug Binder MANAGING EDITOR Sharon Dunn CONTRIBUTING WRITERS Gary Beers Bruce Wells James Redmond Ryan Hoffman Dan Larson
You need an electrical distributor that provides more than just inventory. From engineering support to inventory management solutions, we focus our energy on your success. Contact your local Border States location for more information. Greeley CO
970.356.1150
ADVERTISING DIRECTORS T.J. Burr Sabrina Poppe SALES MANAGERS Bruce Dennis Stephanie Mighell CREATIVE MANAGER Kyle Knoop CREATIVE SUPERVISOR Amy Mayer LEAD DESIGNER Joshua Aho
ENERGY PIPELINE MAGAZINE 501 8th Ave. P.O. Box 1690 Greeley, CO 80632 For all editorial, advertising, subscription and circulation inquiries, call (970) 352-0211. Send editorial-related comments and story ideas to: editor@energypipeline.com For advertising inquiries, contact: bjacobson@energypipeline.com
borderstates.com Supplying products and services to the construction, industrial and utility industries. (2015-06) 6 30-250 ENERGY PIPELINE AUGUST 2016
August 2016, Volume 3, Issue 12. Published by Greeley Publishing Co., publisher of The Greeley Tribune, Windsor Now, the Fence Post, and Tri-State Livestock News.
MITCHELL INSURANCE AGENCY
PROUD
PARTNER
LOCAL OFFICE IN GREELEY
OF THE GREELEY COMMUNITY
• Oil & Gas Servicing • Blow Testers • Pumpers • Pipe Dealers / Contractors • Roustabout • Flow Testers • Oil Related Construction Businesses • Trucking
Conserving the Environment Producing Energy Promoting Community Creating Jobs
We insure most oil & gas related businesses Mike Mitchell
3835 West 10th Street Greeley, CO 80634
33105 WCR 33 • Greeley, CO 80631 • 970-353-0407 www.billbarrettcorp.com • NYSE: BBG
970-352-6418
TOUGH CONDITIONS CALL FOR TOUGHER WIRELINE PROTECTION. USE CENEX SURE SEAL WL . ®
Oil and gas work can be brought to a halt by a wireline lubricant that failed to do its job. And I know keeping your operation running smoothly and safely is critical. You can count ® on Cenex Sure Seal WL to lubricate, seal and protect your downhole wirelines. Tough is as tough does. Its durable uniform coating properties inhibit corrosion and maintain a long-lasting tight seal to prevent leakage.
BEN BUCHANAN CHS OIL PATCH SPECIALIST B.BUCHANAN@CHSINC.COM
To learn more and find your local distributor, visit cenex.com/suresealwl. Contact Agfinity, your local Cenex Sure Seal WL dealer, for more information. Call 970-454-4094 to get started. ®
© 2016 CHS Inc.
AUGUST 2016 ENERGY PIPELINE 7
URSA RESOURCES Garfield County opts to work with oil, gas company in well pad siting process BY RYAN HOFFMAN • FOR ENERGY PIPELINE
The proposal of a well pad within 700 feet of Grand Valley High School in Parachute recently led, in part, to Garfield County’s decision to consult in the siting process under new state rules established earlier this year. The decision, to which county commissioners unanimously agreed on June 27, makes Garfield County the first, and at that point the only, local government to officially commit to participating in the consultation process approved by the Colorado Oil and Gas Conservation Commission in January. The events here could provide some insight to regulators, local governments and operators, regarding an untested process intended to open dialogue between the parties earlier in the planning stages. “All in all, we think this rule is (a) strong step in bringing local governments further into the process and we’ll welcome the chance to learn from these initial cases,” said Todd Hartman, communications director for the Colorado Department of Natural Resources, in an email. Ursa Resources, which also is seeking approval from the state for location permits regarding two pads within the Battlement Mesa residential area, notified the county on June 13 of its intent to construct a large urban mitigation area (LUMA) facility near Parachute. Under the new rules — which originated from an oil and gas task force convened by the Gov. John Hickenlooper in 2014 in a compromise that kept several initiatives 8 ENERGY PIPELINE AUGUST 2016
off the ballot — operators are required to notify local governments and offer them an opportunity to consult on proposed LUMA facilities at least 90 days prior to submitting siting forms with COGCC. If a government with land use authority accepts the consultation offer, the operator is required to “consult in good faith” on siting and best management practices for the proposed facility. The notification from Ursa is the first in Garfield County, which trails only Weld County in terms of the number of drilling permits on an annual basis since 2010, according to data from the COGCC. In unincorporated Garfield County, oil and gas development is a use by right, and it does not trigger a local permitting process, Kirby Wynn, Garfield County oil and gas liaison, reminded commissioners at the late June meeting. As defined by the state, an urban mitigation area is defined as an oil and gas facility with at least 22 building units or one high occupancy building, such as a school, within 1,000 feet. The definition also extends to facilities when 11 building units fall within any semi-circle of the 1,000-foot radius. While Ursa’s proposal is in an area that is far from being considered urban, Wynn said the edge of the proposed pad is about 645 feet from Grand Valley High, which triggered the LUMA notification and offer for consultation. In noting that this was the first time he was aware of any such facility in the county being this close to a school, Commissioner Tom
Jankovsky said he would like to consult with Ursa to ensure the school district, Garfield County 16, has a seat at the table. Commissioners John Martin said residents in the area want assurance that “we’re not abandoned. ... We hope that our government is looking into this issue, and Ursa is really living up to what they say they will do. I don’t see a problem with that. I would accept that.” Ursa has a track record of communicating with residents and stakeholders, Martin said. Nonetheless, the county should be included in the discussions and “take an active role in protecting both Ursa and our citizens.”
INTENTIONALLY BROAD How that process will work, though, is unclear. County staff noted the rule is intentionally broad concerning the actual consultation process. A subsection of the rule states that it “does not prescribe any particular form of consultation or local land use planning or approval process.” The open-ended approach to the consultation process is a good thing, said Matt Sura, an attorney representing several citizen groups advocating against Ursa’s proposals in the Battlement Mesa Planned Unit Development. “It will be interesting to see how Garfield County utilizes this process,” said Sura, who also served on the governor’s oil and gas task force. “And I think for the Colorado Oil and Gas Conservation Commission, the rules are
vague to allow for that type of flexibility to have each local government choose how that consultation will work in that jurisdiction. … So it’s really going to be Garfield County driving that bus, rather than the Colorado Oil and Gas Conservation Commission … as it should.” Ultimately, commissioners unanimously agreed to consult with Ursa as a sort of convenor, allowing the county to serve as a conduit for stakeholders in the area, including Grand Valley High School. Don Simpson, vice president of business development for Ursa, said the company welcomes input from the county. Much like for other parties involved, this will be a learning process for Ursa as well. “Really we’re going to be learning just as [the county is] through the system,” Simpson said. “We’ll work through it, and we’ll try and do what the rules intended to cover. … It will be a learning process for us both, I’m sure, but again I think it’s valuable to have [the county] involved.” For those reasons, some will watch with interest as the process unfolds. “I think the more that folks are allowed to sit down and participate in the planning process, the higher the likelihood that the
project goes forward in a way that minimizes ... impacts,” said Bernie Buescher, former Colorado secretary of state and a member of the governor’s oil and gas task force Buescher, who played a central role in drafting the recommendation that served as the starting point for the COGCC rule, said it will be interesting to see how the consultation process with the county and Ursa unfolds.
O&G NEAR SCHOOLS Elsewhere in the state, proposed oil and gas developments near schools have been a source of controversy. Weld County residents in recent weeks protested an oil and gas proposal about 1,300 feet from a school building just east of Greeley. Among the concerns voiced by those opposed to the proposal, which Weld County commissioners unanimously approved, were potential health impacts to schoolchildren. Sura, noting that the Ursa proposal is much closer to a school than the one in Weld County, shared similar concerns regarding the site in Garfield County. “I have two kids that are going to school, and I would not want an oil and gas facility
within 1,000 feet of their school, because it’s a health and safety concern,” he said Simpson refrained from predicting what the response from residents in the broader Parachute-Battlement Mesa area might be, but he said there will be a good deal of discussion. “We’re very cognizant of the school and safety,” he said. “And we’re going to do everything we can to make it a good operation, with as little impact as possible.” Simpson pointed to the project’s use of a temporary completions facility approximately 3,000 feet west of the actual well pad — well outside the 1,000 feet urban mitigation area boundary — as one example of preliminary efforts to mitigate impacts. A document, which Ursa provided to the county, stating the rationale for the location concluded other options were unfeasible after initial discussion with residents, the community, the high school and the town of Parachute. The document does state that the scheduling of drilling and completions will be done to minimize concerns when school is in session. Simpson did not have a time frame for the proposal going forward.
AUGUST 2016 ENERGY PIPELINE 9
HAZMAT TRAINING
Firefighters practice hazardous material operations with Halliburton BY JAMES REDMOND • FOR ENERGY PIPELINE
discovered the aftermath of an explosion and a tanker truck leaking chemicals at a storage building. Halliburton staff members, who participated in the training, told firefighters they had accounted for all but two of their employees. Assessing the scene with saving lives as their top priority, firefighters found and rescued a worker staged on top of the leaking tanker. Firefighters found another employee playing dead from the explosion. With the building cleared, firefighters began the process of suiting up and working
Frederick-Firestone Fire Protection District Fire Chief Chris Edwards raises his hands as he practices the decontamination process June 23 at Halliburton in Fort Lupton. There were 27 firefighters and staff training from Brighton Fire Rescue District, Frederick-Firestone and Fort Lupton Fire Protection District. ABOVE: Frederick-Firestone Fire Protection District Lieutenant Todd Simpson, left, and firefighter Kory Knill prepare to examine the scene of a mock chemical leak during a training exercise. Photos by Alyson McClaran/amcclaran@ greeleytribune.com.
Fort Lupton — Two firefighters covered in stifling hazardous material suits trod as fast as they could June 23 to a tanker spewing vapors and leaking a chemical onto the concrete. As the firefighters got close to the tanker, condensation built up on clear face panels of their suits. When the condensation reduced their visibility, all the firefighters could do was wipe the moisture away from the inside and keep going. The two Frederick-Firestone Fire Protection District firefighters didn’t get to leave their chemical gear suits — they protected their body and contained their air supply — until they stopped the leak and went through decontamination. Afterward, sitting in the shade, sipping water, and finally out of the suit, Lt. Todd Simpson called the 10 ENERGY PIPELINE AUGUST 2016
exercise fun. It was fun, kind of, anyway. Simpson and other firefighters went through a training exercise hosted by Halliburton to help their staff and firefighters from a number of nearby districts train for an emergency. Although an emergency is a serious thing — hence the name — most the 27 firefighters from a regional hazmat training group — including Fort Lupton Fire Protection District, Frederick-Firestone Fire Protection District and Brighton Fire Rescue District — and Halliburton staff seemed to enjoyed the practical training exercise. The mock emergency kicked off at 9:30 a.m. Thursday with a report of a fire alarm at Halliburton’s Fort Lupton facility — located at 13100 Weld County Road 8. Firefighters
REGIONAL TRAINING In south Weld County, a group of fire departments meets quarterly as a regional hazardous material training group to practice and prepare should a chemical emergency arise. The training group includes Fort Lupton Fire Protection District, Frederick-Firestone Fire Protection District and Mountain View Fire Rescue, which is based in Longmont. “They get together and do hazmat training scenarios, go over equipment and practice their skills,” said Fort Lupton Fire Protection District Chief Phil Tiffany. About once a year, the group tries to arrange a coordinated event — such as the one Halliburton hosted in Fort Lupton on June 23 — to practice in a hands-on training scenario.
to make the site as safe as they could. After stopping the leak, firefighters set down lengths of materials to absorb the leaking chemicals. Then, the two firefighters began decontamination as two more suited up to sweep the building a second time, looking more closely for anyone who might still be in danger. By noon, the firefighters were on their way out. Hands-on training exercises like the one June 23 at the Halliburton facility are great, said Fort Lupton Fire Protection District Chief Phil Tiffany. It’s the most realistic hazmat experience firefighters will get outside of an actual emergency. In a training scenario, firefighters get to evaluate the situation, identify they challenges and issues that need addressed, make mistakes and learn from it all. “It really gives us an opportunity to go out and learn in a controlled environment, so when it becomes an uncontrolled environment — and we’re at the mercy of the hazardous chemicals — we’re better prepared to manage that incident safely,” Tiffany said.
Frederick-Firestone Fire Protection District Lt. Todd Simpson, left, and firefighter Kory Knill prepare to examine the scene of a mock chemical leak during a training exercise at Halliburton in Fort Lupton.
Halliburton benefited from the exercise too. Brandon Baker, Halliburton assistant district manager, said it’s great training the employees there. Not only did the exercise let Halliburton employees practice their emergency procedures, they also got to practice working with the local emergency responders, he said.
“It’s a pretty cool little thing to work jointly with somebody like Halliburton to make this happen and get us the practice,” Tiffany said. “We don’t get the opportunity very often to do these types of events, so it’s great to have a working relationship with Halliburton, allowing us to work together toward a better result.”
2102 9th Street Bldg A Greeley, CO 80631 Family Owned and Operated Charlie, Becky & Troy Phagan
• Tool Boxes- we are an authorized Weatherguard Dealer • • Nerf Bars & Running Boards • • Replacement Bumpers & Grille Guards • • Truck Caps & Tonneau Covers • • Leveling & Lift kits •
• We also repair Remote Control Cars & Trucks
• Transfer Tanks, Pumps &Fliters • • Seat covers, Floor Liners & Mud Gaurds • • Cold Air Intakes • • Hitches, Turnovers & Accessories • • Installation available on parts we sell •
• Large selection of repair parts available for RC vehicles
970-351-8603 Fax: 970-353-3066 Email: info@crptruck.com www.CRPTruck.com www.JackWagonRC.com AUGUST 2016 ENERGY PIPELINE 11
EXECUTIVE PROFILE
COLORADO PETROLEUM ASSOCIATION CPA President
Stan Dempsey BY LINDA KANE • FOR ENERGY PIPELINE
Oil and gas production is critical to the Colorado economy, but industry leaders, producers and environmentalists don’t always get along. That’s where agencies like the Colorado Petroleum Association - or CPA - come in to play. It is a nonprofit agency aimed at supporting all facets of the industry. And most important to this organization is its members learning to work together with each other, with other state agencies and with governmental bodies. “Our members invest a great deal of time building relationships with not only state agencies, but also local government officials,” said CPA President Stan Dempsey. “There are so many issues that require coordination and cooperation, but also when we do have differences, we’re in a position to resolve them. We help find solutions for local governments and state law makers.” Founded in 1951, the Colorado Petroleum Association is a non-profit organization and the only statewide oil and gas association that represents all sectors (production, processing and transportation) of Colorado’s oil and gas industry before state, regional, and federal governmental entities, according to its web site, http://www. coloradopetroleumassociation.org 12 ENERGY PIPELINE AUGUST 2016
CPA works to advance ideas and plans that help shape a strong, sustainable, and thriving energy industry. “We have within our membership really good experts who can help navigate the entire the industry in a way that we’re a good resource to our colleagues in state government and state legislators. We can help educate legislators about very technical issues that have a lot of history to them,” Dempsey said. The Colorado Petroleum Association is the successor to the Rocky Mountain Oil and Gas Association, which served the oil and gas industry for almost 80 years. Since 1999, CPA continues to carry out the old organization’s mission to represent all facets of the oil and gas industry. CPA promotes and protects the interests of oil and gas companies, related businesses and oil and gas users through public and professional education, lobbying, regulatory activities and media relations. CPA has a board of directors that guides the activities of the Association. CPA’s president carries out association duties as directed by the Board. CPA’s president is a registered lobbyist and experienced advocate representing the industry before numerous regulatory agencies. The strength of CPA lies with is broad-based membership and standing committees, which steer the activities of the
Association in specific areas of expertise. The committee structure has proven to be extremely effective in identifying and responding to critical legislative and regulatory issues. CPA committees present a unified voice for both independent and major oil and gas companies and provide opportunities for the open exchange of information on emerging issues and trends. Standing committees include Exploration & Production (Upstream), Air & Environmental Affairs, Refining & Fuels, Tax, and Government Affairs. “We believe our industry benefits the state of Colorado several ways,” Dempsey said. He listed the industry’s pluses: Colorado is the sixth largest natural gas producer and seventh in oil production; it provides $30 billion in economic activity and employs thousands. It also generates millions of dollars in tax revenue. “The question is, ‘How do we get it done?” Dempsey said. “We partner with our friends at COGA, the Colorado Petroleum Council, API. We also share a lot of members. “What we’re known for is we’re fairly nimble,” Dempsey said. “I mean that in the context that our members are eager to get consensus and feel as if they can come to CPA and work with their industry colleagues in a cooperative fashion. There’s not a lot of dispute and we’re fairly quick
(in getting results).” Dempsey got his start with CPA’s successor company, the Rocky Mountain Oil and Gas Association, or RMOGA. After that organization disbanded in 1998, it became CPA. Prior to that, he was a lobbyist for the Colorado Association of Commerce and Industry, or CACI. There, he was active in the passage of many of the environmental statutes that today still govern the industry. He had also worked closely with RMOGA, supporting advocacy efforts in oil and gas. When he decided to change positions, it was an easy transition, Dempsey said. A Colorado native, Dempsey grew up in Lakewood where his father worked in the mining industry. “I picked it up by — I can’t say osmosis, but I had good contacts even when I began my career at CACI,” Dempsey said. “I grew up around mining industry, and I actually kind of heard all of the environmental issues at home because my father was in the mining industry. He was very active in the environmental issues, particularly when I was in school.” Now, the Colorado Petroleum Association is focused on the various ballot issues facing the oil and gas industry. One of those initiatives is the call for setbacks of 2,500 - stating wells can’t be drilled with 2,500 feet of certain structures such as schools, homes, buildings and bodies of water. “It’s a ban,” Dempsey said. “That’s impossible, that’s a ban and they intend it to be a ban.” Another initiative is one pertaining to local control, giving local governmental bodies more control over the industry. “It would change the constitution and conflict with or override the Supreme Court’s rulings,” Dempsey said. “There are local governments - like Weld County - who don’t propose, they don’t regulate the technical aspects of our operations. “But they do have the opportunity and they exercise their prerogative to address issues around the well site. Weld County works very hard to work with operators in a cooperative fashion,” he said. “They know what
they’re doing, but they don’t propose to change rules that conflict with COGA.” The problem with local control arises in communities that have little experience with the industry, he said. “Other localities are experiencing production for the first time and they panic and they don’t know what provisions are in the law already,” he said. Another topic of interest is Initiative 40, the community rights initiative. “It basically says a local government can do anything it wants to - including a ban (on oil and gas production).” Again, the CPA, will work to support oil and gas if those measures end going to a public vote. The activities of the association are guided by its board of directors. Through the board and standing committees, CPA strives to serve its members and policy makers as a leading source of expertise on industry issues such as tax policy, environmental regulation and energy production. Dempsey defers to members who are oftentimes technical experts on different industry-related topics. “They collectively direct me and tell me what the policy position is going to be,” he said. CPA recruits members year-round and is welcoming of large or small organizations. Its members consist of producers, law firms, engineering firms and environmental consulting firms. The end of May saw a brief upsurge in crude-oil prices, reaching more than $50 a barrel, nearly double the price in January. Dempsey said it’s too early to tell if the market is making an upturn, but it’s something his organization will watch closely.
Paul Taucher P.G. Owner/Principal Hydrogeologist
Secondary Containment Systems for the Oil & Gas Industry Containment Options powder-coat paint (BLM colors) or galvanized • wall height (12-68 in) • shape (round, oblong, rectangular, round-corner rectangular) • 12 or 10-ga steel • wall bracing (Z-post or ZGD) • many liner options • geotextile fabric options crossover steps • load-line containment
BIOGRAPHY Name: Stan Dempsey President, Colorado Petroleum Association Age: 52 Wife: Deb Children: Curits (24) and Travis (22) City you grew up in: Lakewood, Colo. High school you attended: Wheat Ridge, Colo. College attended/degrees: Bachelor of Science — Political Science Career title, professional organizations: President City you live in now: Golden (Unincorporated Golden) Years with company: 17 Years in oil and gas industry: 17 What do you do in your spare time? Golf, reading, cooking, fitness training) Last good book you read: “The Bully Pulpit: Theodore Roosevelt, William Howard Taft, and the Golden Age of Journalism,” by Doris Kearns Goodwin. Best advice you’ve received: Be sure to make an effort to get along with our industry partners, including members’ customers. Professional background: Contract lobbyist (1988-1989), Colorado Association of Commerce and Industry (1990-98), Rocky Mountain Oil and Gas (RMOGA-Colorado 1998-99) and Colorado Petroleum Association (1999-2016).
Containment Services Include SPCC required & as-built capacity calculations (no charge) • Multiple options designed and provided to ensure appropriate containment (no charge) Options for liner penetrations and cleanout sumps • Options for unique containment requirements Other Services HydroGeology • Site Assessment • Uranium Geology • WDEQ Voluntary Remediation Program • Environmental Compliance Project Management • Remediation Permitting • Waste Management
307.721.8951 (office) 307.760.2662 (cell) • 307.721.8958 (fax) taucher@wyo2U.com EXPERIENCED INSTALLATION AVAILABLE
www.siouxsecondarycontainment.com
AUGUST 2016 ENERGY PIPELINE 13
TECH TALK
Isn’t produced water too salty for irrigating crops? BY GARY BEERS • FOR ENERGY PIPELINE
In the oilfields of the Westerns states, many dryland farmers and cattle ranchers wish produced water from oil/gas wells could be locally used as irrigation water. Even after the removal of residual hydrocarbons, the produced water contains too much salt (i.e., sodium) with a concurrent imbalance of sodium, magnesium and calcium ions (as measured by the Sodium Adsorption Ratio) to be a useful water resource for irrigation. The problem is the continued use of this sodic water for surface irrigation degrades soil structure with the result that the soil “cements up” and infiltration capacity is reduced. Thus, water is retained in the soil and unavailable to roots of plants. However, under a unique modification to traditional subsurface drip irrigation, hundreds of acres of rangeland in Wyoming have been converted to highly productive land yielding crop (i.e., grasses, alfalfa), livestock, and wildlife benefits when irrigated with produced water from coalbed methane wells. This conversion process began in 2005 and has maintained a record of sustained success. Subsurface drip irrigation is a widely-recognized, water-efficient system for irrigating crops. Typically, parallel arrays of plastic tubing, with emitters, are installed at a shallow depth (less than 16 inches) in the field and water is delivered into or below the root zone. About 10 years ago, in Wyoming, inventive agricultural experts designed and developed a unique version of subsurface drip irrigation that utilizes sodic water from coalbed methane wells (BeneTerra LLC, see beneterra.com). Under this patented process, the drip line system is installed at a deeper depth (about 36 inches) and the produced water is delivered through “horizontal injection” to fields of 50 to 200 acres. The physical arrangement consists of pumping produced water from CBM wells to a lined holding pond, located next to a field, where degassing of carbon dioxide occurs. From this pond water is acidified to a pH of 6.0 by in-line 14 ENERGY PIPELINE AUGUST 2016
addition of sulfuric acid. The water is filtered before being pumped into the buried array of drip lines. The unique aspect of this system is that the burial of the drip lines at a deeper depth creates a thicker buffer zone between the water source and the soil layer where roots can intercept the rising water. This zone provides the opportunity for the native levels of calcium and magnesium present in the soil to offset the effects of the sodium in the introduced produced water. To enhance the availability of calcium, the aforementioned acidification dissolves additional calcium in the buffer zone. As shown in Figure 1, these processes essentially park sodium below the root zone while the water rises to the root zone (i.e., crops with deeper roots such as alfalfa). In situations where the ground water surface is at a shallow depth, the relative introductions of water to the root zone from precipitation and from the drip lines must be monitored and adjusted, since an excess of the combined water will flush the salts further down into the ground water. No surface irrigation is used with this approach. The Environmental Protection Agency, U.S. Geological Survey, state of Wyoming, BeneTerra, and others conducted detailed studies of the subsurface soils and ground waters where coalbed methane waters were introduced as irrigation waters through subsurface drip irrigation systems in Wyoming’s Powder River Basin. Their conclusions did not find any significant environmental drawbacks to this irrigation approach. Under this approach, produced water is recycled to two beneficial uses – providing water directly to the root zone during growing months and maintaining the subsoil by
For over 50 years, GARY BEERS, has worked in numerous fields of environmental science as a consultant, regulator and educator. This career included senior management position with major consulting, nonprofit and public organizations. He has founded several successful firms to capture emerging resource management markets. One of his latest ventures, EnviroScienceINFO, provides content for public media.
FIGURE 1
additional flushing of salts below the root zone during non-growing months. This approach to the beneficial use of produced water is permitted as a disposal method (Class V well) under Wyoming’s Underground Injection Control (UIC) Program.
DOES THIS SDI APPROACH MAKE “CENTS” During the 10- to 12-year life span of this unique subsurface drip irrigation system, expenses and benefits are incurred by the coalbed methane operator and landowner – for example: • initial installation of the deep SDI system cost ($4,000 to $6,000 per acre) about twice as much as a traditional subsurface drip irrigation system. • operation and maintenance costs ranges from $0.06 to $ 0.24 per barrel (42 gallons) of water delivered by the subsurface drip irrigation system. • produced water delivered through the subsurface drip irrigation system is applied a rate in the range of 70 to 110 barrels (2,940 to 4,620 gallons) per acre per day. • the value of non-irrigated land would increase by 200 percent to 300 percent when converted to irrigated land under a subsurface drip irrigation system. • under subsurface drip irrigation systems, alfalfa crop yield increased about 60 percent. • produced water from established coalbed methane wells could be evaluated as a long-term water supply and be valued at $300 to $500 per acre-foot per year ($0.04 to $0.06 per barrel per barrel per year)
Pure . Live . Seed
How the landowner takes advantage of the deeper subsurface drip irrigation system and produced water supply is the key to the overall success of this approach. Certainly, at a basic level, the landowner can house the deeper subsurface drip irrigation system and to undertake additional agricultural practices to maximize evapotranspiration rates from the field – which focuses on a role as a partner for produced-water disposal. Under this option, most of the initial and ongoing expenses for the subsurface drip irrigation system would be carried by the coalbed methane operator and, thus, the cost to the operator would be relatively high when compared to other disposal options. This approach supports the current opinion that the initial installation cost is the primary barrier to implementation of this innovative subsurface drip irrigation system. At a more advanced level, the landowner may perceive the produced water as a “new,” suitable long-term water supply and undertake agricultural practices to significantly increase crop yields and associated benefits (i.e., livestock, wildlife). Under this option, the initial and ongoing expenses for the subsurface drip irrigation system would be carried by the landowner and, thus, the cost to the coalbed methane operator would be relatively low for conditioning and delivery of the water. This approach would encourage wider use of this innovative subsurface drip irrigation system. A life cycle costing is needed to identify the expenses over the “new” water supply and agricultural land life cycles in order to make the right choice for the beneficial use or disposal of produced water.
Pure . Live . Seed
Specializing in custom mixes for Pasture - Reclamation - CRP Serving the Western U.S. Call for a dealer in your area 800.421.4234 www.buffalobrandseed.com AUGUST 2016 ENERGY PIPELINE
15
A red flag marks the spot where a seismic monitor is buried in the ground as Jenny Nakai, a graduate student in seismology from the University of Colorado at Boulder, begins checking one of the instruments above ground in June 2014 at a site south of Lucerne. CU dispatched a team to investigate by setting up seismographs around the epicenter of an earthquake. There have been no measurable earthquakes in the area since. Photos by Joshua Polson/jpolson@ greeleytribune.com.
EARTHQUAKES! Man-made earthquakes a possibility and concern in Colorado BY DAN LARSON • FOR ENERGY PIPELINE
E
Colorado are not a common occurrence and yet the possibility of any quake inadvertently caused by humans has raised the level of concern among politicians, the oil and natural gas industry, academics and government scientists. That Colorado and the DJ Basin, specifically, are now considered to be at a higher risk for man-made earthquakes raises questions about who is at fault and, ultimately who pays for damages. In recent months, the rumblings of debate on this issue was triggered by a report from the U.S. Geological Survey that showed Colorado in fourth place on the list of states with the highest risk of man-made earthquakes, or as the geologists say, “induced seismicity.” As related to energy production, induced arthquakes in
16 ENERGY PIPELINE AUGUST 2016
seismicity “occurs when there is a pressure or stress near faults that are stable but under critical stress,” writes Trent Jacobs, in the Journal of Petroleum Technology. An increase in pressure can trigger the release of movement energy that has built up over time in fault zones. The built-up energy “would likely have produced an earthquake at some time, but perhaps not for thousands of years,” Jacobs said. The industry remains cautious but cooperative in response. “Given the issue emerged only recently, best practices and regulatory requirements continue to evolve,” said Kris Nygaard, a seismic expert at ExxonMobil. “Widespread adoption of possible solutions and the ways of implementing them are still under review.”
With decades of practical knowledge on the issue, companies are sharing their own seismic data with university researchers, donating sophisticated seismic instruments and participating in stakeholder task force programs, Nygaard added.
QUAKE LIABILITY Although it was never given much chance of surviving the session, a bill introduced by Rep. Joe Salazar, D-Thornton, did succeed in grabbing more headlines than any other aimed at the oil and gas industry this year. Salazar’s bill would have held the oil and gas operator liable for earthquake damage to a surface owner’s property caused by hydraulic fracturing or fluid re-injection. The bill was
written so that any damage caused by an earthquake was presumed to be caused by the oil and gas company, putting the company in the position of proving it was not responsible. Salazar’s earthquake liability bill was passed out of the House and on arrival in the Senate, was sent to the Agriculture, Natural Resources and Energy Committee, where it was killed. Gov. John Hickenlooper expressed concern over the potential impact of Salazar’s bill were it to pass. The earthquake liability bill was an example of “solution in search of a problem,” said the governor. Significantly, it would change the state’s “reasonable accommodation” doctrine, a policy, the governor noted, that has successfully managed surface and mineral owner conflicts for many years. The earthquake liability bill was one of the several bills under watch at the Colorado Oil & Gas Association. In opposing the bill, COGA President Dan Haley said the science of the issue was on the industry’s side. “The science tells us induced seismicity is not a significant issue in Colorado,” Haley said. “We had an instance where an injection well may have caused a tremor near Greeley and that’s when our strong rules came into play. The operator was told to shut down the well, reduce pressure and do some work at the bottom. After the modifications, the well resumed injections and is operating safely today.”
STOP AT THE LIGHT When a pair of mild earthquakes were reported to have emanated from an area about five miles northwest of Greeley in May and June 2014, the likely cause was identified as an oil and gas injection well operated by NGL Solutions. While no conclusive findings linked the two, the area had seen an increase in minor seismic activity and as a precaution, the COGCC ordered the operator to shut down the well. In June 2015, the operator plugged off the bottom 450 feet of the well and restarted injection at lower pressure and volume. Tremors in the area sputtered to a stop in the months following, according to an engineering manager at COGCC. The commission applied a risk-assessment tool for determining if underground fluid disposal is causing earthquakes that threaten safety and damage property. According to a
Tribune report, a low-risk green light is given where an injection well could be causing earthquakes rated as magnitude 1 to 2. For quakes measured as magnitude 2 to 3, a yellow light signals the operator must monitor and modify injection to ease possible seismic activity while a red light, which shuts down operations, is given for quakes tagged as magnitude 5 or above. Geologists say hundreds of magnitude 2 or below earthquakes, which cannot be felt on the surface, occur around the world daily. Magnitude 3 quakes are the smallest felt by humans and damage to buildings is not likely from quakes below magnitude 4. The stoplight assessment tool was pro-
posed by an industry trade group four years ago as part of a framework for operators if one of their disposal wells is suspected in earthquake activity. According to the American Exploration and Production Council, the stoplight and other steps can help the operator screen, evaluate, plan, monitor and mitigate their operations to according to the risk of inducing seismicity and possible impacts to the community. The potential impact of induced seismicity has become an important topic in a part of the country not traditionally thought of as earthquake-prone. There have been three earthquakes in
HOW UNDERGROUND DISPOSAL IS CONTROLLED The EPA’s Underground Injection Control program was created to “regulate the construction, operation, permitting, and closure of injection wells used to for fluids storage or disposal.” In Colorado, the EPA licenses and enforces UIC regulations for all but Class II wells, which are oil & gas waste fluid disposal wells. Regulation of Class II wells falls under the Colorado Oil & Gas Conservation Commission, a structure similar to all of the six other states in EPA’s Region 8. Well Classifications • Class I: Industrial and municipal waste disposal. EPA currently licenses about 800 such wells, most of which are located near the Gulf of Mexico and Great Lakes. Class I wells can dispose of hazardous industrial waste or non-hazardous municipal or industrial waste fluids. • Class II: Oil & gas fluid disposal. The majority of all UIC wells regulated are Class II disposal wells. EPA reports there are 180,000 Class II wells in operation in the US. Class II wells are licensed to dispose of oil & gas fluids, primarily brine and flowback, or for enhanced oil recovery operations, or as hydrocarbon storage wells. • Class III: Mining fluid injection for extraction of minerals. EPA says about 18,500 Class III wells are operated at 165 mining sites. • Class IV: These shallow hazardous and radioactive material injection wells intended to pump into formations above drinking water sources were completely banned by EPA in 1984. • Class V: Shallow, non-hazardous fluids. These wells drain or inject into formations above drinking water sources. EPA claims there are more than 650,000 Class V wells in the US, most of which are used for stormwater drainage, septic leach fields and agricultural drainage. • Class IV: Sequestration of CO2. Deep injection of carbon dioxide for long-term carbon capture and storage. The Class VI well category was created by an EPA rulemaking in December 2010. — Dan Larson AUGUST 2016 ENERGY PIPELINE 17
northern Colorado recorded by USGS in the past several months: Dec. 29, 2015, a 2.1 magnitude quake near Evans; Dec. 31, 2015, a 1.7 magnitude quake near Kersey; and on Jan. 9, a 1.8 magnitude quake just northeast of Greeley. Prior to those instances, none were recorded in northern Colorado since June 2014.
OKLAHOMA QUAKES
When someone mentions earthquakes, for most people California is the first thing that comes to mind. However, many are surprised to learn that Oklahoma recorded more 3.0-magnitude earthquakes for the past year than did California with its famous San Andreas fault. The idea that a state more commonly known as Tornado Alley can now be dubbed Earthquake Central was highlighted in a May
COLORADO’S TOP 13 EARTHQUAKES Colorado is not considered earthquake-prone although several significant quakes are reported to have struck since the state was first settled in the 19th century. Colorado’s first seismograph was installed at Regis College in 1909 but sufficient quantities of modern seismographs were not available in Colorado until the early 1960s. The largest earthquakes in Colorado: • Nov. 7, 1882: Estimated 6.6 magnitude earthquake reported centered along the Front Range near what is now Rocky Mountain National Park. • Dec. 1, 1891: Estimated 6.0 mag. earthquake near Maybell in Moffat County. • Nov. 15, 1901: Estimated 6.0 mag. earthquake near Buena Vista. • Nov. 11, 1913: Estimated 6.0 mag. earthquake near Ridgway. • Sept. 9, 1944: Estimated 6.0 mag. earthquake near Basalt. • Aug. 3, 1955: Estimated 6.0 mag. earthquake near Lake City in Hinsdale County. • Oct. 11, 1960: Recorded 5.5 mag. earthquake south of Montrose. • Jan.23, 1966: Recorded 5.5 mag. earthquake near Dulce on the Colorado – New Mexico state line. • May 17, 1973: Recorded 5.4 mag. earthquake northwest of Parachute. • Aug. 9, 1967: Recorded 5.3 mag. earthquake near Commerce City; considered the most economically damaging quake in state history. • Aug. 22, 2011: Recorded 5.3 mag. earthquake west of Trinidad. • Nov. 27, 1967: Recorded 5.2 mag. earthquake near Commerce City. • Jan. 5, 1966: Recorded 5.0 mag. earthquake northeast of Denver. From 1962-68, dozens of earthquakes rattled windows and caused minor damage in areas of northwest Denver, Commerce City and Northglenn. The quakes were attributed to underground fluid injection at Rocky Mountain Arsenal and peaked in 1967 with the 5.3 mag. quake noted above. The 2011 earthquake west of Trinidad was part of a series of 16 quakes between 2001 and 2011 possibly related to underground injection of produced water from nearby coalbed methane production. The 1973 earthquake northwest of Parachute is believed related to underground injection of produced water from the Rangely oilfield. The quakes ended once injection pressure was reduced. The most recent significant earthquake in Colorado was a 4.0 quake recorded Feb. 6, 2016, centered about 25 miles west of Trinidad. — Dan Larson 18 ENERGY PIPELINE AUGUST 2016
8 segment of 60 Minutes on CBS. Over a period of five years, the number of magnitude 3.0 or greater earthquakes in the Sooner State went from an average two per year to more than 900 in 2015. The news program exclaimed that its investigation found “what is more astonishing is that nearly all of Oklahoma’s earthquakes are man-made.” The broadcast report blamed the state’s oil and gas industry for triggering the quakes but made it clear the cause was not hydraulic fracturing. Likewise, the “vast majority (of earthquakes) are small, causing little or no damage.” In interviews with academic experts, the 60 Minutes report concluded Oklahoma’s swarm of mostly low-energy ground shakers “are the result of wastewater injection.” Concerns about a possible connection between water disposal wells and an increase in seismic activity were first raised in November 2011 when a magnitude 5.7 earthquake shook an area near Prague, Okla., about 50 miles east of Oklahoma City. The quake is reported to have injured two people and damaged hundreds of buildings. Subsequently, the U.S. Geological Survey and academic seismologists linked the 2011 quake to oil and gas activity, specifically wastewater injection. In early responses to the findings, the state geologist and the Oklahoma Geological Survey insisted there was no conclusive evidence proving the link. In the years since, seismic activity has increased. The head of Oklahoma’s Energy and Environment Department reported 36 earthquakes above magnitude 3.0 in 2012, 109 in 2013, 585 in 2014 and 907 last year. Every year, seismologists in California record thousands of earthquakes but only a few hundred quakes register 3.0 magnitude or greater, which makes the increased seismic activity in Oklahoma more alarming, say academics studying the issue. And as might be expected, the increase in recorded earthquakes in Oklahoma has caused earthquake insurance premiums there to skyrocket. Property owner complaints of unpaid claims for earthquake damage to the state’s insurance regulator are also on the rise. A hearing of the Oklahoma Insurance Dept. in late May highlighted the state’s concern. Earthquake insurance has become concentrated in just four companies, the department reported, and policy premiums have increased to $19 million, more than 2.8 times the value of premiums written six years ago.
CHANGE OF FOCUS In Oklahoma, a state where oil and gas activity plays a key role in the economy, the question of what is causing the earthquakes raised difficult scientific, legal and political questions. In June 2015, the Oklahoma Supreme Court ruled that disposal well operators can be sued for injuries and damages in civil court if induced seismicity can be proved. Previously, such cases would be heard before the Oklahoma Corporation Commission, the state’s regulator of oil and gas activity. A month later, with the appointment of a new director for the Oklahoma Geological Survey, the focus changed. Political leaders and state regulators acknowledged an apparent link between disposal wells and seismic activity. And, support from the oil and gas industry has increased as well. The OCC expanded its review of disposal wells that are known to inject into or below the Arbuckle formation in seismically active parts of the state. Injection well operators favor the Arbuckle formation for its porosity and
Anne Sheehan, professor of geophysics at the University of Colorado, holds one of the seismographs, similar to ones her team from CU have set up around the epicenter of the earthquake northeast of Greeley.
Composition Safety Toe
Flame-Resistant
Carhartt
Fire Resistant Shirt • 6.75oz. 100% Cotton FR Jersey Knit n • WORK DRY® Moisture Wicking • HRC 2, NFPA 70E, 2112 • Rib Knit Collar & Cuff Compared To $67.99 Whitesides Low Price
5799
E NFPA 70 2 1 NFPA 21
WORK
Ariat
Overdrive
• Premium Full Grain Leather • ASTM Safety Toe • TPU Ex Guard on Toe, Heel & Sides • Oil & Slip Resistant Compared to $204.99 Whitesides low price
179.99
10011933
100235 larger sizes extra
855 E. Bridge
BRIGHTON - 303 637 9774
202 19th St.
LOVELAND - 970 669 7808
2017 2nd Ave.
GREELEY - 970 888 3390
Brighton Location
Brighton Location Only
Brighton Location Only JULY 2016 ENERGY PIPELINE 19
isolation from sources of drinking water. The commission also directed operators to verify injection depth and take more frequent pressure and volume measurements. Wells that are found to be injecting into what the OCC refers to as basement rock will be required to plug-back to a shallower disposal depth. The Oklahoma Independent Petroleum Association said its members are working geologists and regulators to provide proprietary information about seismic faults and have invested more than $35 million in well upgrades and revisions. Operators have voluntarily reduced injection volumes and pressures, and plugged back or even shut-in disposal wells, the association reports.
DISPOSAL OPTIONS Underground injection of waste fluids, especially when they are considered hazardous or could potentially contaminate drinking
water, has been a disposal solution used by industry and municipalities for decades. Disposing of oil and gas waste fluids into underground formations began in the 1930s as oil companies gained improved proficiency in drilling into deeper formations and sought to keep waste from contaminating drinking water sources. By the 1950s, chemical companies, needing disposal options for the increasing volumes of waste they were generating, were injecting chemical waste fluids into underground formations The connection between underground injection and seismic activity has likewise been a concern over the years. Many Coloradans recall the series of earthquakes that were felt widely and centered at the site of the former Rocky Mountain Arsenal near Commerce City. These were later determined to be caused by injection of waste fluids produced during the arsenal clean-up process. Known as the Derby well, it disposed of arsenal clean-up waste fluids from 1961-66. At the time it was drilled, the Derby disposal well
was the deepest disposal well in the country. The well also differed from other disposal wells in that it was drilled into a crystalline rock formation, as opposed to most other disposal wells which are drilled into more porous, sedimentary rock formations. According to EPA, underground injection has “proved to be a safe and inexpensive option for the disposal of unwanted and often hazardous industrial byproducts.�
A sticker warns off the curious as Jenny Nakai, right, and Jamie Hansen work to set up some additional equipment as they visit a seismograph in June 2014 near Lucerne. 20 ENERGY PIPELINE AUGUST 2016
MAKING HOLE A look back at the origins of oil and gas BY BRUCE WELLS • AMERICAN OIL & GAS HISTORICAL SOCIETY
PLUTO fuels WWII victory The history of D-Day includes two top-secret operations related to today’s offshore petroleum industry. The June 6, 1944, invasion along 50 miles of fortified French coastline demanded new technologies for supplying the beaches. Two engineering triumphs accomplished this mission: construction of artificial harbors followed by the laying of pipelines across the English Channel. Codenamed Mulberrys and using a design similar to modern jack-up platforms, the artificial harbors used barges with pylons to provide platforms with floating causeways that extended to the beaches. Barges 200 feet long and 60 feet wide – each with four retractable 60-foot pylons - allowed tons of supplies and equipment to come ashore. Offshore
historic Kerr McGee well. By the 1950s, jack-up rigs with much larger pylons operated to depths of more than 150 feet. Wartime planners knew that after D-Day Allied forces would need vast quantities of petroleum to continue the advance into Europe. They also knew oil tankers trying to reach French ports would be vulnerable to Luftwaffe attacks. To prevent fuel shortages from stalling the Normandy invasion, the top-secret Operation PLUTO (Pipe Line Under The Ocean) became the
The secret pipeline operation used a Walt Disney character for its logo.
Pipelines were wound onto enormous floating “conundrums” designed to spool off the pipe when towed.
drilling companies adopted the adjustable platform technology after the war. The offshore advances grew in 1947, when Kerr McGee Corp. completed the first producing oil well out of sight of land. The KerrMac No. 16 stood in just 20 feet of water in the Gulf of Mexico. Surplus World War II tenders supplied the
Allied strategy. It would help fuel victory with oil production from the U.S. petroleum industry. Although by 1942 the industry had laid thousands of pipe miles across all kinds of terrain, to span the English Channel would need an unprecedented leap in technology. The first PLUTO system required a new kind of pipe that looked more like an undersea communications cable than an oil pipeline. It exploited existing subsea cable technology, but instead of a bundle of wiring at its core, a three-inch flexible lead pipe would carry fuel. Each mile of this new pipe would use over 46 tons of lead, steel tape and armored wire to cross almost 70 miles. A civilian passenger vessel was modified to hold a huge spool, and the first pipeline was laid from Isle of Wight to Cherbourg. An alternative approach proved even more successful. This method used three-inch steel pipe,
BRUCE WELLS, is the founder of American Oil and Gas Historical Society, a 501c3 nonprofit organization dedicated to preserving the history of oil and gas. He is a former energy reporter and editor who lives in Washington, D.C.
AUGUST 2016 ENERGY PIPELINE 21
A
BETTER WAY in Commercial Real Estate
I specialize in helping people find, buy and sell commercial properties in Northern Colorado.
Call Me Today!
“Your go to guy in the Niobrara & DJ Basin”
RE/MAX Alliance-Commercial Division Jim Neufeld, Commercial Advisor 1275 58th Ave, Suite A | Greeley, CO 80634 Direct: (970) 506-2641 Cell: (970) 381-8475
jneufeld@remax.net | www.jimn.commercialincolorado.com
Expertise In Permitting Beneficial Uses Of Produced Water
IndustrialWaterPermittingandRecyclingConsultants.com Contact: Gary Beers 303.748.0390 gary1beers@gmail.com
Water is always a RESOURCE
Picture it differently.
Operation PLUTO’s spooled pipelines crossed the English Channel to help bring Allied victory in WWII.
which had proven to be flexible and durable in the oilfields of Iraq and Burma. Welders assembled 20-foot sections of steel pipe into 4,000-foot lengths. The pipeline was wound around enormous floating “conundrums” designed to spool off the pipe when towed. The giant deployment systems weighed 1,600 tons each. They were pulled by tugboats from the British site at Dungeness to the French port of Boulogne, 31 miles away. As the spools unwound, the pipe settled to the bottom of the English Channel. Ultimately using both pipeline-laying methods, 17 pipelines supplied thousands of gallons of fuel to Boulogne. By March 1945, 1 million gallons of fuel were being delivered each day and Allied success was assured. Gen. Dwight Eisenhower acknowledged the significance of the oil pipeline engineering feat when he said, “Second in daring only to the Mulberry Harbours, was PLUTO.” “Making Hole” is a term for drilling coined long before oil or natural gas were anything more than flammable curiosities. Bruce Wells is the founder of American Oil and Gas Historical Society, a 501C3 nonprofit organization dedicated to preserving the history of oil and gas. He is a former energy reporter and editor who lives in Washington, D.C.
The possible uses for aerial images are only limited by your imagination! Aerial Photography/Videography, Agricultural, Pipeline inspection, SPCC inspections, Emergency response, Real Estate Listings, etc. FAA Section 333 exemption- commercial drone
Let Rival Services capture those possibilities for you!
22 ENERGY PIPELINE AUGUST 2016
Chad Lambert 970-441-0625 clambert@rivalservices.net
Seemingly towering above the Golden Gate Bridge, an offshore platform proceeded to sea in 1958. The towers were raised again after passing.
DATA CENTER
The oil and gas industry is a large part of Colorado’s economy. Below, find statistics on energy pricing, drilling production, well permits, spills and rigs.
2016 DRILLING PERMITS COUNTY
RIG COUNT BY STATE State
July 1
Jun 17.
Colorado 19 16 Louisiana 42 45 Oklahoma 58 57 North Dakota 26 24 Texas 198 185 California 5 5 Alaska 8 9 Ohio 12 12 Pennsylvania 13 13 Wyoming 7 7 Source: Baker Hughes Rig Count. July 1
Weld................................................................................................660 (62%) Garfield ..........................................................256 (24%)
May. Avg. April Avg.
16 45 57 24 182 5 6 10 16 7
NO. (% OF STATE TOTAL)
17 47 62 27 196 4 8 11 16 8
2016 GAS PRODUCTION
COUNTY *YTD PRODUCTION (% OF STATE) Weld201,566,591 .........................................(36.8%) Garfield163,244,634 ...................................(29.8%) La Plata103,391,074 ..................................(18.8%) Las Animas23,629,755 .................................(4.3%) Rio Blanco17,672,838 ..................................(3.2%) Mesa10,353,324 .........................................(1.89%) State ......................................................547,494,480
La Plata ..........40 (3.7%) Rio Blanco...30 (2.8%) Adams........27 (2.5%) Jackson...18 (1.7%) State................1,060 Source: Colorado Oil and Gas Conservation Commission as of June 1
2016 OIL
PRODUCTION COUNTY *YTD
US RIG COUNT
The U.S. rig count peaked at 4,530 in 1981 and bottomed at 488 in 1999. Area July 1 June Avg. May Avg. April Avg. U.S. 431 414 409 438 Canada 76 63 42 41 Source: Baker Hughes Rig Count, July 1
PRODUCTION (% OF STATE)
Weld 33,742,664 (89.4%) Rio Blanco 1,447,367 (3.8%) Garfield 495,921 (1.3%) Cheyenne 376,283 (0.99%) Arapahoe 334,378 (0.88%) Larimer 329,360 (0.87%) Lincoln 236,652 (0.62%) Adams 213,518 (0.56%) State37,741,553
Source: Colorado Oil and Gas Conservation Commission as of July 5.
Source: Colorado Oil and Gas Conservation Commission as of May 31.
COLORADO ACTIVE WELL COUNT
Weld ..........................................................................22,779 Garfield .....................................................................11,084 Yuma ...........................................................................3,878 LaPlata........................................................................3,326
Las Animas .................................................................2,961 Rio Blanco ...................................................................2,897 State .........................................................................53,749
Source: Colorado Oil and Gas Conservation Commission as of June 1. AUGUST 2016 ENERGY PIPELINE 23
A BETTER WAY in Commercial Real Estate Serving your Northern Colorado Commercial needs… Industrial • Office • Retail • Land Investment Properties
Colorado Native Over 23 Years Experience Focused on your investment Blaine Herdman Commercial Broker Office : 970.313.1190 | Cell: 970.381.0300 email: bherdman@remax.net 24 ENERGY PIPELINE AUGUST 2016