American Oil and Gas Reporter - June 2018 - 114

ConventionCoverage: Texas Alliance of Energy Producers

Discussing water issues at the Texas Alliance of Energy Producers annual meeting, April
24 in Wichita Falls, Tx., were, from left, Michael Dunkel, global technology leader for
upstream water at Jacobs; Alliance Water Chairman John R. Durand, president and chief
operating officer of WaterBridge Resources; and Alliance Chief Lobbyist Bill Stevens.

he suggested.
Dunkel said producers needed assurances they could not be held liable for
damages resulting from a saltwater spill
that occurred after they had turned their
produced water over to another party for
disposal.
There is, however, a flip side to that issue, offered T.M. "Roe" Patterson, president
and chief executive officer for Basic Energy
Services in a later producer/service company
exchange with Charlie Gibson, operations
manager at Cobra Oil & Gas Corp.
Acknowledging that the industry had
some "bad actors" inclined to take environmental shortcuts, Patterson cautioned
against incentivizing such activity. He
worried that if producers were freed of
all liability for the ultimate disposition
of produced water, they might be inclined
to choose the cheapest bidder rather than
the most responsible.
"If the person who picks up that water
is not a good steward, we really have
made the problem worse, not better," Patterson argued.
Commenting that "there probably is a
limit on how much water you are going
to be able to cram into disposal reservoirs,"
Dunkel said the industry also needed to
consider the regulatory issues surrounding
discharge and evaporation.
He noted that the current process,
which requires obtaining a National Pollutant Discharge Elimination System permit
from the U.S. EPA "takes a year or two,
which is a problem on oil field time."

Evaporation can be more economical
than treating and discharging produced
water, Dunkel went on, "so we need a
clear set of rules on how that is going to
work as well."
Obtaining state jurisdiction over
NPDES permitting is one of the goals
the Alliance Water Committee has set
for itself, Durand told the assembly.
Induced seismicity is another issue the
committee is planning to address, he added.
"We want to be proactive," Durand declared,
adding that at WaterBridge, "We make
sure we have the best possible, highquality geologic data available as part of
our permit applications and are not drilling
new disposal wells in areas of concern.
We also are not clustering our saltwater
disposal wells, but are spacing them away
from potential areas of concern."

last year in the Delaware Basin region."
Describing subsurface activity that
triggered earthquakes, Hennings said most
"represent tiny parts of existing faults
where the surface area that slips is about
the footprint of (a couple large buildings)
that slip a few millimeters. We are talking
about very subtle things happening in
the subsurface that cause the seismicity
that we are studying."
Cause and effect are complicated, Hennings assessed. Displaying a three-dimensional model, he said Delaware Basin
earthquakes had been recorded in disposal
formations, down through producing intervals and "tens of thousands of feet into
the crystalline basement below."
Another complicating factor, he went
on, is Texas' subsurface geology, which
arguably has as many as 12 or 15 distinct
regions, each with differing characteristics.
"The Fort Worth Basin looks a little like
Oklahoma, but not really. It looks nothing
like West Texas, and West Texas and the
Fort Worth Basin are completely different
from the Eagle Ford operating area,"
Hennings described.
Further, he noted that Texas had 83,000
Class II wells, including 21,000 active
saltwater disposal wells. "Only a miniscule
fraction of those wells have been associated
in any way with seismicity," Hennings
emphasized. "Part of our mandate is disentangling what may and may not be involved with earthquakes.
"Induced seismicity from petroleum

Understanding Seismicity
"The debate about whether it is possible
to induce faults to move and cause earthquakes really is behind us," declared the
BEG's Hennings.
Among the human activities Hennings
said could induce seismicity are impounding water on the surface, withdrawing
fluids from the subsurface and injecting
fluids into the subsurface.
He said the TexNet program at BEG
was recording about 300 earthquakes a
month in Texas. "Most of them are small
and aren't felt at the surface," he allowed.
"But there are felt earthquakes. There
were something like 30 felt earthquakes

114 THE AMERICAN OIL & GAS REPORTER

The Bureau of Economic Geology's
TexNet monitoring program records approximately 300 earthquakes each month
in the state of Texas, reports Peter H.
Hennings, director of BEG's Center for
Integrated Seismicity Research, during
a presentation at the Texas Alliance of
Energy Producers annual meeting.



American Oil and Gas Reporter - June 2018

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