The Pennsylvania State UniversityUniversity Park Campus

Sustainability in Marcellus Shale DevelopmentEDSGN 100Section 001Design Team 6SS&T IncFall 2016

Matthew SpeirTyler TurcheckKatherine Seidl

Submitted to:Professor Berezniak

College of EngineeringSchool of Engineering Design, Technology and Professional ProgramsPenn State University

05 Dec 2016

TABLE OF CONTENTS

1. PROJECT OBJECTIVE

2. PROJECT SPONSOR

3. PROJECT DESCRIPTION

4. NATURAL GAS

4.1 Origin4.2 Sources

a. Conventional Reservoirsb. Unconventional Reservoirs c. Technically Recoverable Resources (TRR)

4.3 Uses4.4 Benefits

5. MARCELLUS SHALE

5.1. Location5.2. Basic Geology5.3. Depth5.4. Recoverable Gas Resource5.5. Current Production5.6. Economic Benefits in Pennsylvania

6. HYDRAULIC FRACTURING PROCESS

6.1. Site Development: Planning Phase6.2. Well Site Preparation: Execution Phase6.3. Drilling and Completing Wells: Performance Phase6.4. Well Production and Operations: Operational Phase

7. ENVIRONMENTAL CONCERNS

7.1. Contamination of Drinking Water Aquifers7.2. Chemicals Used in Fracking Process7.3. High Water Usage7.4. Fugitive Methane7.5. Surface Runoff from Drill Pads 7.6. Spills and Leaks of Hydraulic Fracking Fluids7.7. Leaks From Pits Liners and Storage Tanks7.8. Handling, Treatment and Disposal of Fracking Wastewaters

7.9. Infrastructure Impact a. Land Useb. Pipelinesc. Noised. Traffic e. Processing Facilities

8. SUSTAINABILITY

9. REGULATORY FRAMEWORK

9.1. Federal Regulations9.2. Federal Exemptions9.3. Pennsylvania Regulations

10. HDPE WELL PAD LINER WASTE STREAM

10.1. Background10.2. Common Practice10.3. Findings10.4. Recommendations

11. CONCLUSIONS

12. REFERENCES

Sustainability in Marcellus Shale

Development

1. PROJECT OBJECTIVE

To improve to sustainability and efficiency of the current disposable of the HDPE well pad liner waste system. The project will be aimed to assist the environment and reduce cost for Chevron.

2. PROJECT SPONSOR

The project sponsor is Chevron, the second largest oil and gas company that is located in the United States. It is also one of the top companies internationally, focusing on reliable and affordable energy. The energy that is produced by Chevron is used by millions of people worldwide.

3. PROJECT DESCRIPTION

HDPE well pad liners are used to line the surface that is being drilled (figure 1).These are used to limit the amount of waste that is distributed to the environment. The liners are 60 mils (0.06 inches) in thickness, 200 feet wide, and 250 feet long. The pads are usually disposed of after the drilling is complete and not used again. The goal is to generate a more innovative way to reuse or recycle the HDPE well pad liners. The environmental impact, cost, safety, and federal regulations will all be considered in the solution to this project.

4. NATURAL GAS

4.1 Origin

Natural gas is a fossil fuel used for the production of energy. It was discovered in America around 1626 near Lake Erie by French explorers. The first successful well was dug in 1821 by William Hart in Fredonia, New York.12 Natural gas produced about 29% of the energy consumed in the USA in 2015. A pie chart of the energy consumption is shown in Figure 7.13

4.2 Sources

a. Conventional Reservoirs

Conventional gas resides in highly porous and permeable reservoirs. This type of gas is easily extracted by standard vertical wells, and was the primary source of natural gas until new technologies arose to allow more unconventional drilling methods.

b. Unconventional Reservoirs

Unconventional natural gas has low permeability and is trapped in its original source rock, and cannot be extracted by the conventional vertical drilling method. This type of gas includes shale gas, tight gas, coal bed methane, and methane hydrates. Advances in horizontal drilling and the development of hydraulic fracturing technology (fracking) has allowed for improved extraction of these unconventional gases. Figure 8 shows the different types of natural gases beneath the earth’s crust. 14

c. Technically Recoverable Resources (TRR)

Natural gas resources are classified into four categories. TRR is the second largest category and includes all of the oil and gas that can be produced based on the available technology, industry practice, and geologic knowledge. The geophysical characteristics of the rock and the physical properties of the hydrocarbons prevents 100% production of gas and oil.15

4.3 Uses

Natural gas has a variety of uses in residential, commercial, industrial, electrical power, and pipeline and distribution. Figure 9 shows the consumption of each use of natural gas in 2012. 16

4.4 Benefits

Natural gas is environmentally clean. This is the cleanest burning fossil fuel and emits very few pollutants. It is also economical and efficient because the gas is piped directly to the customer's facility via the pipeline system. This system keeps costs low and cannot be damaged by weather conditions.17

5. MARCELLUS SHALE

5.1. Location

Marcellus Shale is named after the outcropping of natural gas near the town of Marcellus, New York. The Marcellus Shale natural gas reservoirs extend through New York, Pennsylvania, Ohio, Maryland, Virginia, and West Virginia. The map and thickness of the Marcellus Shale can be viewed in Figure 10.18

5.2. Basic Geology

Marcellus Shale is low density, carbonaceous shale that was formed in the Middle-Devonian age. Shale is a sedimentary rock composed of a mixture of mud, clay, and other minerals.

5.3. Depth

This shale is found about 2000 to 8000 feet below the surface of the Earth. Figure 11 shows the depths in Ohio and Pennsylvania.

5.4. Recoverable Gas Resources

These resources are economically and technically feasible to produce. In 2014, there were 141 trillion cubic feet of recoverable natural gas from the Marcellus Shale.

5.5. Current Gas Production

The Marcellus Shale yielded 14.4 billion cubic feet of natural gas per day in 2015. This accounted for 36% of the shale gas produced. 19

5.6. Economic Benefits in Pennsylvania

$34.7 billion was contributed to the state economy (5.8% of the total economic activity). The natural gas industry produced 339,000 jobs (4.7% of the state’s total employment). The industry has also paid more than $2 billion in state taxes since 2007.20

6. HYDRAULIC FRACTURING PROCESS

6.1. Site Development: Planning Phase

The company identifies and determines an ideal location for the well pad. Constraints are identified which include zoning/siting constraints, landowner desires/preferences, environmental constraints, highway access constraints and the presence of other sensitive locations. 21

6.2. Well Site Preparation: Execution Phase

The site is excavated and constructed. Equipment is transported to the site via trucks. The rig is set up for drilling and many different systems are installed.

6.3. Drilling and Completing Wells: Performance Phase

Drilling operations are 24/7 (lasting 30 to 60 days) until the well reaches its total depth. Once the well is drilled, the completion process begins which lasts 20 to 30 days. This

process includes running production casing; simulating and fracturing the well; and installing equipment to facilitate the flow of natural gas out of the well.

6.4. Well Production and Operations: Operational Phase

The gas goes through an initial separation stage to remove liquids at the wellhead. The gas is measured and sent to compressor stations via pipeline. During operation, re-contouring and reseeding the well pad may occur. A diagram of fracking process is shown in Figure 12. 22

7. ENVIRONMENTAL CONCERNS

7.1. Contamination of Drinking Water Aquifers

Since drinking water aquifers are hundreds to thousands of feet below the shale, natural faults can carry fracking chemicals and oil into the aquifers and contaminate water.3 (Figure 5)

7.2. Chemicals Used in Fracking Process

Volatile organic compounds (VOCs) such as benzene, toluene, ethylbenzene and xylene are all used as fracking fluids, along with over 600 others.4

7.3. High Water Usage

Each well uses anywhere from 3 to 6 million gallons of water, and between 2005 and 2014, fracking operations have used over 250 billion gallons.5

7.4. Fugitive Methane

Fugitive methane is made up of the accidental escape of methane gas, as well as routine venting.6

7.5. Surface Runoff from Drill Pads

Frack water can be discharged into waterways by being carried by runoff rain water, which raises the level of total dissolved solids (TDS) in the water. This is the concentration of minerals such as salt that are dissolved in the water. This can come from runoff from surfaces around well sites, such as the drill pads.7 (Figure 6)

7.6. Spills and Leaks of Hydraulic Fracking Fluids

Diesel-like chemicals can be carried into drinking water; this is not through the ground but from spills of fracking fluids. These are not life-threatening and can be treated with simple filtration systems.

7.7. Leaks From Pits Liners and Storage Tanks

Leaks from these pit lines and tanks can also make their way into drinking water sources and possibly contaminate them.11

7.8. Handling, Treatment and Disposal of Fracking Wastewaters

Deep injection wells are used to dispose fracking brine. These are wells designed specifically to take in any type of fluid used in oil and gas drilling. There are currently seven of these wells in Pennsylvania, and much of the fluid is taken to Ohio where there are more of them.7

7.9. Infrastructure Impact

a. Land Use

Horizontal fracking pads are larger than most other drilling pads, so they take up more land. This land is not only just at the drill site, but on the pipelines and roads entering and exiting the site.8

b. Pipelines

The increase in shale production leads to the construction of pipelines across the country in order to transport the gas. This may result in water and wildlife impacts.8

c. Noise

Drill sites produce a lot of light and noise from the drilling itself, and trucks entering the drill site. This is likely to affect nocturnal animals and migrating birds.8

d. Traffic

Traffic at the drill site can be heavy; an estimated 900 to 1,300 truckloads of material is hauled to and from the well throughout its active lifetime. The traffic causes noise, and the need for roads going into the site.8 (Figure 4)

e. Processing Facilities

These facilities give off emissions and may cause people to inhale too much of these harmful gases. Water contamination may also result for people who live near these.

8. SUSTAINABILITY

Sustainability in regards to energy is defined as not being harmful to the environment, and supporting that in the long-term. Many people would not consider fracking to fall under being sustainable, but engineers can work to improve the process and make it more sustainable for years to come.

9. REGULATORY FRAMEWORK

9.1. Federal Regulations

1.) The Clean Air Act of 1963 controls air pollution at federal level. 2.) National Environmental Policy Act of 1969 requires federal agency to conduct environmental assessments of federal actions. 3.) Clean Water Act of 1972 ensures that surface waters meet minimum pollution standards. 4.) Safe Drinking Water Act of 1974 protects quality of the country’s groundwater and drinking water supply. Resource 5.) Conservation and Recovery Act of 1976 regulates waste for the protection of human health and the environment. 6.) The Energy Policy Act of 2005 regulates many aspects of federal energy policy.9

9.2. Federal Exemptions

1.) This treats the individual well as a source of pollutants; however, it does not assess problems if many wells are in an area. 2.) This act, as of 2005, excludes oil and gas drilling. 3.) Fracking fluids are not considered pollutants in this act. 4.) Excludes fracking wells as of 2005. 5.) Oil field waste was considered exempt in 1982. 6.) This only regulates fracking fluids when diesel fuels are used in the fracking fluids.9

Pennsylvania Regulations

If a drill operator wants to prove that the pollution of water was present before the well existed, they must conduct a pre-drilling survey to test for certain pollutants. There are no ground/surface water regulations, solid waste, or liquid waste. The permit for the drilling will outline handling procedures.10

10. HDPE WELL PAD LINER WASTE STREAM

10.1. Background

High density polyethylene (HDPE) liners are a commonly used material to line the fracking wells during the fracking process. They are very durable and can withstand temperatures upward of 100◦ Celsius. They also perform well when in the presence of the chemicals that are typically used during the fracking process. Due to the durability of the material, leaks are generally prevented.1

10.2. Common Practice

The HDPE well pad liners are delivered to the fracking site in the form of rolls. The HPDE rolls, which can be viewed in figure 2, are extremely heavy and many must be laid down adjacent to one another. They are then welded together and tested for leaks. Based upon the information provided by Chevron, they use the pads once and they cut up and dispose of the pads afterward. They are not reused due the volume of traffic on the pads and the difficulty of transported the pads after they have been placed on the ground.

10.3. Findings

The HDPE well pad liners can be recycled instead of disposed of and sent to landfills. HDPE is a commonly used plastic that can be found in many household material, such as milk jugs and shampoo bottles. There is a new company called Ultra-Poly that is beginning to recycle HDPE well pad liners. They can be recycled and remade into more HDPE well pad liners or sold to other companies to create other products. This process will decrease the environmental impact that fracking companies have on the environment and will also decrease the cost to the fracking company.2

10.4. Recommendations

It is recommended that Chevron implement the recycling system to decrease on their waste and to save on cost. If Chevron were to invest some money into their own recycling location, they could create a closed-loop system in which the HDPE well pad liners that they use are recycled and remade into more HDPE well pad liners. Trucks could ship the cut up HDPE well pad liners to this location. There would be a significant start-up cost, but this could be made back in the savings. Any excess HDPE from the recycling could also be sold to external companies that produce products made from HDPE. An example of such a location can be viewed in figure 3.

11. CONCLUSIONS

It has been concluded that the best action to take concerning the HDPE well pad liners is

to melt them down and recycle them to be molded into new HDPE well pad liners or other

plastics. This process is now currently being used by other companies and is in fact saving them

a significant amount of money. This would also help the environment by reduced the waste

that is accumulating in landfills. Recycling the used HDPE well liners would not violate any

regulations or policies. It is advised that this process be implemented by Chevron.

12. REFERENCES

1. Oil and Gas Containment SystemsFACING THE CHALLENGE (n.d.): n. pag. Web.

2. Thomas, Brittany. "Shale Gas Producers Now Do Plastic Recycling, Too - Natural Gas

Now." Natural Gas Now. N.p., 15 May 2014. Web. 11 Nov. 2016.

3. Johnson, Jeff, and Chemical & Engineering News. "Shallow Fracking Wells May Threaten Aquifers." Scientific American. Scientific American, 05 Aug. 2015. Web. 02 Dec. 2016.

4. "Gasland." Gasland. N.p., n.d. Web. 04 Dec. 2016.

5. "How Much Water Does U.S. Fracking Really Use?" ScienceDaily. ScienceDaily, 15 Sept. 2015. Web. 04 Dec. 2016.

6. Bradbury, James, and Michael Obeiter. "A Close Look at Fugitive Methane Emissions from Natural Gas." A Close Look at Fugitive Methane Emissions from Natural Gas |

World Resources Institute. World Resources Institute, 2 Apr. 2013. Web. 04 Dec. 2016.

7. Bowling, Terra. Citizens’ Guide to Marcellus Shale in Pennsylvania (n.d.): n. pag. Web. 4 Dec. 2016.

8. "Fracking Impacts: Land & Wildlife." Ohio Environmental Council. N.p., 28 Oct. 2015. Web. 04 Dec. 2016.

9. "Federal Fracking Regulations | CAFrackFacts." CAFrackFacts. California Fracking, n.d. Web. 04 Dec. 2016.

10. "Fracking Regulations by State." FRACKING REGULATIONS BY STATE - ALS. N.p., n.d. Web. 04 Dec. 2016.

11. News, Lisa Song InsideClimate, Phil McKenna, Marianne Lavelle, Sabrina Shankman, Neela Banerjee, Zahra Hirji, Lisa Song, David Hasemyer, and Bob Berwyn. "Fracking Study Ties Water Contamination to Surface Spills."

InsideClimate News. N.p., n.d. Web. 04 Dec. 2016.12. "A Brief History of Natural Gas." A Brief History of Natural Gas - APGA. American Public

Gas Association, 2016. Web. 02 Dec. 2016.13. "Sources of Energy." - Energy Explained, Your Guide To Understanding Energy. N.p., n.d.

Web. 11 Nov. 2016.14. "Shale Gas and Other Unconventional Sources of Natural Gas." Union of Concerned

Scientists. N.p., n.d. Web. 02 Dec. 2016.15. "U.S. Energy Information Administration - EIA - Independent Statistics and Analysis." Oil

and Natural Gas Resource Categories Reflect Varying Degrees of Certainty - Today in Energy - U.S. Energy Information Administration (EIA). N.p., 17 July 2014. Web. 02 Dec. 2016.

16. "Uses of Natural Gas." Union of Concerned Scientists. N.p., n.d. Web. 04 Dec. 2016.17. "The Advantages of Natural Gas." The Advantages of Natural Gas. N.p., n.d. Web. 04

Dec. 2016.18. King, Hobart. "What Is the Marcellus Shale?" Marcellus Shale: Results Continue to

Amaze Geologists. N.p., 14 Apr. 2008. Web. 11 Nov. 2016.19. "What Is the Marcellus Shale?" Marcellus Shale: Results Continue to Amaze Geologists.

N.p., 14 Apr. 2008. Web. 04 Dec. 2016.20. "Marcellus Shale Exceeds Economic Expectations." Energy In Depth. N.p., n.d. Web. 04

Dec. 2016.21. "Marcellus Shale Coalition." Marcellus Shale Coalition. N.p., n.d. Web. 04 Dec. 2016.22. "Delivering TheFoundation for Growth." Encana Corporation. N.p., n.d. Web. 04 Dec.

2016.

FIGURES

Figure 1. HDPE Well Pad Liner

Figure 2. HDPE Well Pad Liner Installation

Figure 3. HDPE Recycling Facility and Truck

Figure 4. Fracking Fluid Truck

Figure 5. Drinking Water Affected by Fracking

Figure 6. Example of Contaminated Water from Fracking Chemicals

Figure 7. US Energy Consumption

Figure 8. Schematic Geology of Natural Gas Resources

Figure 9. US Energy Consumption by Sector (2012)

Figure 10. Thickness of Marcellus Shale

Figure 11. Generalized Cross Section of Utica and Marcellus Shale

Figure 12. Hydraulic Fracturing Process