Citizens Financial Services, Inc. · NASDAQ:CZFS
Citizens Financial Services — Technical Presentation (June 2008)
54 slides from Citizens Financial Services's technical presentation, Jun 10, 2008
Slide 1: What's Involved in Drilling a Gas Well?
What’s Involved in Drilling a Gas Well?
Slide 2: About the Bureau
About the Bureau Mochthe ~———F wren peowna cst # ~ ac wi
Slide 3: About the Bureau
About the Bureau Northwest Region Southwest Region 230 Chestnut St. 400 Waterfront Dr. Meadville, PA 16335 Pittsburgh, PA 15222 814 – 332 – 6860 412 – 442 – 4024 Central Office Bureau of Oil and Gas Management PO Box 8765 Harrisburg, PA 17105 717 – 772 - 2199
Slide 4: Program Authority
Program Authority • Oil and Gas Act • 25 Pa Code Chapter 78 – Oil and Gas Wells • Oil and Gas Conservation Law • 25 Pa Code Chapter 79 – Oil and Gas Conservation • Coal and Gas Coordination Act
Slide 5: Program Authority
Program Authority Dam Safety and Encroachment Act • 25 Pa Code 105 – Dams and Waterways Management • 25 Pa Code 106 – Flood Management Solid Waste Management Act
Slide 6: Program Authority
Program Authority Clean Streams Law • 25 Pa Code 102 – Erosion and Sediment Control • 25 Pa Code 91 – General Provisions • 25 Pa Code 92 – NPDES Permitting, Monitoring and Compliance • 25 Pa Code 93 – Water Quality Standards • 25 Pa Code 95 – Waste Water Treatment Requirements • 25 Pa Code 96 – Wate
Slide 7: Pennsylvania Oil & Gas Patch?
Pennsylvania Oil & Gas Patch? Titusville Pennsylvania currently produces 3.76 million barrels of oil and 163 BCF of natural gas (2004)
Slide 8: In 2007, 7,241 permits were issued.
In 2007, 7,241 permits were issued. .
Slide 9: Oil & Gas Well Permits Issued, 1990 - 2007
Oil & Gas Well Permits Issued, 1990 - 2007 8000 7500 7000 6500 6000 5500 5000 4500 4000 3500 3000 2500 2000 1500 1000 500 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 DOW DOWDD DOWR
Slide 10: Wells Permitted 2007/2006
Wells Permitted 2007/2006 7,241 /7,302 60/36 14/1 457/637 1151/945 2/7 11/8 356/348 109/120 332/379 17/3 202/129 200/105 0/16 151/271 40/14 335/377 283/322 0/3 301/369 100/36 587/662 60/66 3/0 514/596 64/99 57/54 2/0 447/219 628/639 0/2 1/2 0/1 418/298 349/528 Map Courtesy of Digital-Topo-Maps.com
Slide 11: Wells Permitted 2008 January - May
Wells Permitted 2008 January - May 21 212 501 34 15 74 12 171 2 72 47 119 118 43 26 168 207 16 91 33 235 254 22 51 211 285 4 127 207 Map Courtesy of Digital-Topo-Maps.com
Slide 12: Permits, Etc.
Permits, Etc. To drill a gas well in Pennsylvania the operator needs… • a drilling permit • an E & S plan
Slide 13: Additional permits and/or approvals may be needed
Additional permits and/or approvals may be needed • PennDOT highway occupancy permit • SRBC or DRBC Permit • Chapter 105 encroachment permit • Stormwater Management permit for projects affecting more than 5 acres
Slide 14: Drilling Permit Applications include
Drilling Permit Applications include • Application Fee • Bond • Any waiver or variance requests • PNDI check • Well plat • Political subdivision and county • Location of the well • Name of the surface owner and lessor • Name of all surface owners or water purveyors whose water supplies are within 10
Slide 15: Plat notification requirements
The operator shall forward by certified mail a copy of the plat to: • the surface owner • all surface owners with water supplies and water purveyors within 1000 ft • all coal owners and lessee of any underlying workable coal seams • all coal operators identified on the well plat. • Gas Storage opera
Slide 16: Locating A Well Site
Locating A Well Site • Geology – drill where the gas is
Slide 17: Survey the Site
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Slide 18: Distance Restrictions
Distance Restrictions: • 100 ft. - stream, spring or body of water identified on the most current 7 ½ minute USGS topographic map. • 100 ft. must be maintained to any wetland greater than one acre in size. • 200 ft from an existing building or water well without written consent of the owner. • The d
Slide 19: History
History Let’s Make a Plan, Stan. Sept 29, 1972 – 25 PA Code Chapter 102 adopted. Oil & Gas Operators were required to prepare Erosion and Sediment Control plans. 1981 – Department’s First Erosion and Sediment Control Manual for oil & gas well operations (Now incorporated in the Oil and Gas Operators
Slide 20: Erosion and Sediment Control Plan
Erosion and Sediment Control Plan
Slide 21: Erosion & Sediment Controls (BMPs)
Erosion & Sediment Controls (BMPs)_
Slide 22: Slide 22
Slide 23: Stream Crossings
Stream Crossings
Slide 24: Minimize the Disturbance
Minimize the Disturbance
Slide 25: Build the Site, Stabilize as you go, Drill the well
Build the Site Stabilize as you go Drill the well
Slide 26: Drilling the Well
Drilling the Well
Slide 27: Conductor
Conductor Fresh Ground Water Gas/Oil Formations
Slide 28: Conductor Well Bore
Conductor Well Fresh Bore Ground Water Gas/Oil Formations
Slide 29: Fresh Water Casing
Fresh Ground Water Fresh Water Casing Gas/Oil Formations
Slide 30: Cement
Cement Fresh Ground Water Gas/Oil Formations
Slide 31: Cement Returns from the annular space
Cement Returns from the annular space
Slide 32: Borehole to Formations
Fresh Ground Water Borehole to Formations Gas/Oil Formations
Slide 33: Baffle
Fresh Ground Water Gas/Oil Formations Baffle
Slide 34: Fresh Ground Water
Fresh Ground Water Gas/Oil Formations
Slide 35: Fracing the Well
Fracing the Well
Slide 36: What is Fracing?
What is Fracing? Hydraulic fracturing is the process in which fluid is pumped down a well and into a formation under pressure high enough to cause the formation to crack, or fracture, forming passages through which gas can flow into the well bore. Upon completion of the frac this fluid is pumped fro
Slide 37: Fresh Ground Water
Fresh Ground Water Gas/Oil Formations
Slide 38: Fresh Ground Water
Fresh Ground Water Gas/Oil Formations
Slide 39: Fresh Ground Water
Fresh Ground Water Gas/Oil Formations
Slide 40: Pipeline Stream Crossings
8’ below the streambed Pipeline Stream Crossings 220’ bore length
Slide 41: The End Result
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Slide 42: Stormwater Management
Stormwater Management Bioretention / Infiltration Area
Slide 43: You might see this...
You might see this...
Slide 44: Common Questions
Common Questions
Slide 45: Protection of Water Supplies
Protection of Water Supplies
Slide 46: Presumption of responsibility
“presumption of responsibility” An operator is responsible for any degradation of a water supply within 1000 ft of the gas well that occurs within six months of the completion of drilling, unless the operator can prove otherwise. Whenever a gas/oil well related water loss or degradation occurs it sh
Slide 47: What happens to the fluids used during drilling and production?
What happens to the fluids used during drilling and production? All fluids encountered during the drilling and fracing of a gas well are collected in lined sumps.
Slide 48: Top Hole Water.
Top Hole Water.
Slide 49: Fluid hauled to a permitted treatment facility
All other drilling, fracing and production fluid is hauled to a permitted treatment facility
Slide 50: NPDES permit and discharge limits
• NPDES permit • Specific discharge limits. • Satisfies state as well as USEPA requirements.
Slide 51: Be Smart Out There
Be Smart Out There
Slide 52: If you see something unusual... Let Someone Know!
If you see something unusual… Let Someone Know!
Slide 53: Well mam, first, I ask'n politely to put in the BMPs
“Well mam, first, I ask’n politely to put in the BMPs, and if that don’t work…well, that’s what this here shootin’ iron’s fer.” Great,Great Great Grand Pappy Umholtz
Slide 54: Joe Umholtz, Chief, Division of Surface Activities
Joe Umholtz Chief Division of Surface Activities Bureau of Oil & Gas Management 717-772-2199
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