Good industry practice in shale gas operations

13.03.2013

Operations

Two ‘Best Practice’ guides were published earlier this year: the first by Det Norske Veritas (DNV), a global provider of risk management knowledge, and the second by the UK Onshore Operators Group (UKOOG), the representative body for the UK onshore oil and gas industry. Both sets of guidelines focus on the technical aspects of shale gas operations, including but not limited to: health and safety risk management; well integrity; water use; and wastewater treatment/disposal.

They both also cover legislative issues, and while the DNV guide has a chapter on "Stakeholder communication and public engagement", the UKOOG guidelines explicitly call for wide-ranging transparency regarding operations, risks and their management, as well as full disclosure of the composition of fracturing fluids. 

Risk Management of Shale Gas Developments and Operations

In January, 2013, DNV issued guidelines and recommendations for the protection and safety of people and the environment during all phases of shale gas field development and operations. DNV states that this Recommended Practice (RP) can serve as a reference document for independent assessment or verification. The recommended practices are primarily aimed towards shale gas operators and regulators. (Link to DNV guidelines)

Among others, it provides recommendations on:  

  • the management of health and safety issues
  • the management of environmental risks
  • the risk aspects associated with the wells
  • the acquisition, transport, storage and use of water and energy
  • the development and use of new and existing infrastructure.

It also provides a set of recommendations on stakeholder communication and public engagement. This section of the RP heavily relies on the Best Practices Manual, "Public Outreach and Education for Carbon Storage Projects" that was published in January, 2010 by the U.S. National Energy Technology Laboratory (NETL), and which is recommended for further reference and details.

UK Onshore Shale Gas Well Guidelines 

The UKOOG guidelines, issued February, 2013, are relevant to all onshore UK shale gas wells and are intended to supplement the already established Oil and Gas UK guidelines. The guidelines are restricted to the exploration and appraisal phases of shale gas developments. Further revisions will be based on experience gained during the pilot phase and will also be necessary for the eventual operations (production) phase anticipated for shale gas developments. (Link to UKOOG guidelines)

The guide focuses on "Regulatory Compliance" and "Well Design and Construction", but also addresses "Fracturing/Flow-Back Operations", "Environmental Management" and "Fracturing Fluids and Water Management". 

The guidelines suggest wide-ranging transparency and disclosure. It is emphasized that: "... operators need to explain openly and honestly their drilling, fracturing design and operational practices, including environmental, safety, and health risks and how they are addressed." 

More specifically, it is suggested:

Public Disclosure of Fracture Fluid Composition

Operators should disclose on the UKOOG website, www.ukoog.org.uk, the chemical additives in all fracturing fluids, on a well-by-well basis. A disclosure form template is available in the appendix of the guidelines.

Disclosure of Flow-back Fluids

The following information should be available for disclosure by the operator:

  • the estimated and actual volume of fluid to be recovered during flow-back
  • the expected rates, pressures and temperatures of fluid recovery and production
  • a water compositional analysis
  • a water mineralogical analysis
  • any identified contamination issues
  • any radioactive contaminated fluids
  • the proposed method of handling recovered fluids, including but not limited to: tank requirements; pipeline requirements; flaring; flow-back and storage periods; recycle and re-use for other activities
  • the proposed disposal method for the recovered fluids up to the end location
  • the proposed volume of flow-back fluids to be recycled and re-used
  • regulatory approval and compliance records.

Fluid Storage

Operators should make the following available for disclosure:

  • tank maintenance records
  • tank cleaning records and off-take waste disposal records
  • the volume and chemical composition of all fluids stored on a location.


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Good industry practice in shale gas operations