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HomeMy WebLinkAbout02 Project DescriptionPROJECT DESCRIPTION O\OLSSON ASSOCIATES THIS PAGE LEFT BLANK FOR TWO-SIDED DUPLICATION. O\OLSSON ASSOCIATES Battlement Mesa PUD Phase II — BMC L Ursa Operating Company and Battlement Mesa Land Investments, Parcel 1 Table of Contents Section 4-203.B.5 Project Description 1 Facility Operations 1 Construction: 1 Drilling Phase: 2 Completion Phase: 3 Production Phase: 3 Additional Drilling Events: 4 Final Reclamation 5 Hours of Operation 5 Parking Lot and Access Road 6 Alternatives Analysis 6 List of Tables Table 1. Development Timeline 5 Table 2. Summary of Required Permits 7 May 19, 2017, revised July 14, 2017 O\OLSSON ASSOCIATES Battlement Mesa PUD Phase 11— BMC L Ursa Operating Company and Battlement Mesa Land Investments, Parcel 1 This page is intentionally blank. May 19, 2017, revised July 14, 2017 ii O\OLSSON ASSOCIATES Battlement Mesa PUD Phase 11— BMC L Ursa Operating Company and Battlement Mesa Land Investments, Parcel 1 SECTION 4-203.B.5 PROJECT DESCRIPTION Ursa Operating Company, LLC (Ursa) and Battlement Mesa Land Investments Parcel 1 LLC (BMLI) request a Garfield County (GarCo) Special Use Permit (SUP) and approval for construction of a natural gas well pad (BMC L) within the Battlement Mesa PUD (PUD). Ursa is asking for this SUP as directed in GarCo Resolution 82-121 recorded October 20, 1982 creating the PUD which specifies that extraction and processing natural resources is an allowed special use. The proposed facility will allow for the drilling of up to 31 wells to extract natural gas within the PUD on Ursa owned natural gas leases. Ursa will transport gas from the well pad to a consolidated sales point outside the PUD through gas pipelines. Produced water pipelines will be trenched in the same right-of-way with the gas pipelines to transport water away from the well pad for disposal at Ursa's permitted water disposal facilities. Proposed pipelines will be 10 to12 inches in diameter and approximately 3,526 feet in length. This application is written using the Garfield County 2013 Land Use and Development Code with references to the 1979 Zoning Code. The submittals, standards, and public noticing for a Major Impact Review are being followed for this Special Use Permit. To provide for a thorough disclosure of the project's potential impacts and mitigations, Ursa has taken into consideration the Garfield County Colorado Health Impact Assessment (HIA) for Battlement Mesa. A matrix addressing Ursa's response to the HIA is included with this submittal. The proposed well pad will be a Colorado Oil and Gas Conservation Commission (COGCC) permitted well pad. Ursa's surface disturbances including interim and final reclamation requirements are covered under a statewide blanket surface bond held by COGCC (see Reclamation Section). The site for the proposed Ursa BMC L well pad is located within the Battlement Mesa PUD zone district Low Density Residential (LDR). The proposed well pad is off Spencer Parkway in the W% of Section 8, Township 7 South, Range 95 West of the 6th P.M. on Garfield County parcel number 2407-082-00-183. The parcel is approximately 57.68 acres. Battlement Mesa Land Investments Parcel 1 owns the surface. Ursa and Battlement Mesa Land Investments Parcel 1 have a Surface Use Agreement allowing Ursa to develop the natural gas resources within the PUD. The proposed well pad will be operated exclusively by Ursa. The surface area of the proposed project is approximately 2.9 acres. At the end of April, 2017, Ursa moved the BMC L pad 100 feet north of its original location. The Geohazards Report, Biological Impact Report, Weed Inventory, Sound Study, and Traffic Study were written based on the original location. The change of pad location does not change the information in the reports significantly. The reports were not updated with the new pad location. Facility Operations Ursa conducts its natural gas operations in five sequential stages; Construction, Drilling, Completion, Production, and Final Reclamation. Construction: Prior to beginning any surface -disturbing activity, Ursa will install erosion and sediment control measures to prevent any site degradation or impacts to surface waters during May 19, 2017, revised July 14, 2017 1 O\OLSSON ASSOCIATES Battlement Mesa PUD Phase 11— BMC L Ursa Operating Company and Battlement Mesa Land Investments, Parcel 1 the construction process. The BMC L site will be cut and graded as required to construct the proposed 350 ft by 400 ft pad surface. Topsoil will be stripped prior to the major earthmoving activity. It will be re -used to achieve stormwater control objectives. An access road will be constructed, and stormwater and drainage control structures will be installed per COGCC and CDPHE regulations and permit requirements. The pad surface will be graveled to a depth of approximately 1 foot to prevent damage to the surface of the pad from vehicle use and equipment installation. Ursa will implement best practices which have been considered acceptable to Garfield County to mitigate dust during all construction phases. Dust control is typically accomplished via the application of fresh water and/or saline solutions (often using magnesium chloride). To mitigate potential noise impacts to residents and prior to the initiation of the Drilling Phase, Ursa will install an appropriately sized sound wall and conduct sound output monitoring during the activities detailed below. Data utilized for the sound study was compiled for the previous pad location. However, due to the very slight shift in the pad location (approximately 100'), the data and modeling are still applicable as any changes to dB levels would de minimis (less than 1 dB). See the email from Justin Puggioni of Behrens and Associates included in the Sound Study Section. Drilling Phase After construction of the pad is complete, conductor casings will be set for the wells on the pad. Conductor casing is set and cemented at approximately 60 feet and helps prevent collapse of shallow dirt and unconsolidated material. Ursa will comply the COGCC Rule 317 regarding casings and cementing. Next, the drilling rig is moved onto location in multiple truck loads and rigged up. Surface casing is set and cemented into place at approximately 1,700 feet. Surface casing serves to protect shallow groundwater and allows for drilling of the deeper section by supporting unstable shallow formations and anchoring well control equipment. A rotating drill string and drill bit are used to create the borehole. A water-based drilling fluid (drilling mud) is used to cool and lubricate the drill bit and circulate drill cuttings out of the hole. Production casing is set and cemented in place after the well is drilled to total depth. The drilling process typically takes five days for each well. Because the pad size has been minimized to limit the overall surface impacts, the proposed 31 wells will be drilled and brought into production over the course of up to three drilling events. Each drilling event consists of drill rig delivery, installation, and drilling of up to eleven wells. The rig will then be moved to another location while these wells are completed. This is necessary, because the size of the pad is restricted by the SUA. The pad is not sized to accommodate simultaneous drilling and completion operations activities. Cuttings Sampling and Stabilization: Both surface and production hole drill cuttings will be generated at each well pad. Raw cuttings (not stabilized) will be sampled and profiled at the location of generation per Ursa's Waste Management Plan. Once the raw cuttings are sampled, they will be stabilized (absorption/removing liquids) in a temporary area on the well pad. The cuttings will be stabilized using either native soils (preferable) or a commercially available inert adsorbent (sawdust, Stabil EZ, etc.). In some cases, relocation of cuttings to another location during drilling would be required due to the smaller pad sizes. If the volume of cuttings on the well pad during drilling exceeds the capacity of the on-site temporary area, it can cause limitations to operational capabilities to complete drilling, or creates safety concerns, a Colorado Oil and Gas Conservation Commission (COGCC) Sundry Notice (Form 4) will be submitted for approval to May 19, 2017, revised July 14, 2017 2 OLSSON ASSOCIATES Battlement Mesa PUD Phase 11— BMC L Ursa Operating Company and Battlement Mesa Land Investments, Parcel 1 move the cuttings to another location pending the results of sampling analytical results. Cuttings Management and Disposal: If sampling results for either surface or production hole cuttings meet COGCC Table 910-1 standards, they will be treated as non -waste (essentially soil material) and will be managed under one or more of the following options: 1) remain on site for pad stabilization/reclamation; 2) be relocated to another location for beneficial reuse; 3) made available as fill material to the general public; 4) be relocated to a COGCC approved cuttings management facility; or 5) disposed of at an approved waste facility. Options 2 - 4 would be in accordance with a COGCC approved Sundry Notice (Form 4). Disposal at an approved waste facility would be managed for Item 5 under an approved waste manifest per CDPHE regulations. If cuttings don't meet standards, then Ursa will implement one of two options: continued mixing to meet Table 910-1 standards for beneficial reuse/relocation or transport to an authorized waste facility following Federal and State (COGCC/CDPHE) regulations, including manifesting. Final decisions will be based on site-specific operations logistics. Drilling mud is stored in tanks on the well pad. The mud tankage capacity will be approximately 1,200 barrels (Bbls). Approximately 1,200 Bbls of fresh water will be stored on site during drilling. Completion Phase: Completions is the process of treating the wellbore to allow the extraction of economic quantities of hydrocarbon. In the case of the BMC L pad, the primary well completion process is hydraulic fracturing as is typical of wells in Garfield County. After drilling is completed and production casing has been run and cemented in the well bore, the well is logged to determine which geologic zones (formations) will need to be accessed. These subject zones are then perforated and a combination of water with chemical additives is pumped into the hole under high pressure. The pressure of the water is sufficient to propagate small fractures through the target formation, creating a path for hydrocarbons to flow from the formation and into the wellbore (and ultimately to the surface equipment and pipelines for sales). The hydraulic fracturing process requires a large volume of water, and to handle this water, it is necessary to temporarily install mobile tanks on the pad surface. As a best management technique, Ursa uses closed-loop completion techniques on the BMC L pad, in which all fluids (both those initially pumped into the wellbore and those which ultimately flow back out) are recaptured in these mobile tanks and removed from the location for treatment and reuse per applicable regulations. The completions phase needs approximately 20,000 Bbls of storage and working tank capacity on the well pad. Production Phase: Once 20-50 percent of fluids from the completion phase have been recovered from the wellbore, the well can enter the production phase. In Production Phase, a mixture of natural gas, liquid hydrocarbons, and water flows from the wellbore to the surface. The mixture will be separated into its components by unmanned, automated separator equipment. The liquid hydrocarbon component is referred to as condensate and will be stored in tanks on the pad until removed by truck and transported to a point of sale. Ursa expects that the site will be visited approximately once every one or two weeks to collect the separated hydrocarbons. The water is referred to as produced water and will be stored in tanks on the pad until pumped via water line to a point of disposal. Produced water will be trucked off the pad only if an upset condition on the pad or along the pipeline, or in the event that an injection well is not approved on the BMC A pad. The natural gas will enter Ursa's pipeline infrastructure and will be transported offsite to a point of May 19, 2017, revised July 14, 2017 3 OLSSON ASSOCIATES Battlement Mesa PUD Phase 11— BMC L Ursa Operating Company and Battlement Mesa Land Investments, Parcel 1 sale, where it will eventually enter the market. Starting when the BMC L pad enters the production phase, it will be an unmanned facility except for daily visits by Ursa staff and contractors to conduct regular inspections, pump tanks and perform needed maintenance. Once the facility enters production, all surface disturbance not needed for production activities will be reclaimed, and the pad surface will be reduced to the minimum extent needed to service the wells and associated equipment. The reclaimed area will be graded and recontoured, covered with topsoil, and seeded with an appropriate seed mix. The BMC L pad site is projected to occupy approximately 2.75 acres once interim reclamation has been completed. Throughout the life of the wells, smaller workover rigs may be brought in to clean-out and maintain the wells. During the Production phase, the well pad will house storage capacity for approximately 1,800 Bbls of production water. There will be six 300 Bbl tanks for produced water and condensate, 15 feet 6 inches in diameter, 9 feet high. There will be 31 separators (seven quad units, one double, and one single unit), 12 ft W x 22 ft L x 15 ft H. All production equipment will be adequately grounded to prevent lightning strike hazards. Additionally, there will be a solar powered communication antenna for transmitting telemetry data for remote monitoring and operations of the well pad. There will be an enclosed combustion unit. The combustor is a self-contained unit averaging 4 ft x 4 ft x 10 ft that combusts potential volatile organic compound (VOCs) emissions generated from the produced water or condensate tanks. These are authorized by the Colorado Department of Public Health and Environment (CDPHE) as an effective emissions control device. VOCs are piped to the combustor from the production tanks. Once they reach the combustor, they are burned off with a destruction efficiency of 95+ percent per CDPHE regulations. Combustors are equipped with an auto ignition device to keep the pilot light burning. The combustor to be used on this site has an internal flame so there is no visible flare when it is in use. The use of a temporary vapor recovery unit (VRU) will be determined on a case-by-case basis due to the dry nature of the gas in the Battlement Mesa Field. A temporary VRU may be used for newly completed wells during the peak flow back period. The VRU will allow for the capture of additional vapors instead of burning them. This will decrease tank pressures. Other appurtenant equipment may include electric pumps, pipeline meters and valves, and launchers. The pumps will be housed in a pump house sized appropriately for the number and size of pumps used on the well pad. Additional Drilling Events: In locations such as the BMC L where a large number of wells are planned, Ursa typically completes development of the gas resources via a series of drilling events. The recently drilled wells will then be completed and connected to production equipment, and the rig will then return to the location to drill additional wells. This series of drilling events is necessary because Ursa limits the size of its well pads to the smallest practical dimensions, as a best management practice to minimize surface disturbance. With a proposed pad surface area of 300 ft by 400 ft, there is not enough space on the BMC L pad to accommodate the drill rig and completions facilities simultaneously. Therefore, Ursa will use a series of drilling events, as described above, to allow for the initial wells to be completed and placed into production without delay. This will allow Ursa to evaluate the effectiveness of its drilling and completions procedures under the conditions found at BMC L, and to make any necessary adjustments to the wells drilled in later events. May 19, 2017, revised July 14, 2017 4 OLSSON ASSOCIATES Battlement Mesa PUD Phase 11— BMC L Ursa Operating Company and Battlement Mesa Land Investments, Parcel 1 Final Reclamation: Natural gas wells of the type proposed for the BMC L typically have a productive life span of approximately 20 to 30 years. When the amount of gas produced by a well declines to the point that it is no longer economical to continue operations, the well is plugged and abandoned. The plugging process involves the installation of permanent, impermeable concrete in the well bore, sufficient to prevent any movement of water, oil, or gas in accordance with applicable COGCC and CDPHE Rules. The abandonment process involves the removal of all surface equipment and the backfilling of all excavation, per applicable COGCC and CDPHE Rules. When all the wells at BMC L have reached uneconomic levels of production and have been plugged and abandoned, the site will enter Final Reclamation, following applicable COGCC and CDPHE Rules. All equipment will be removed, and the pad and associated infrastructure (roads and pipeline rights-of-way) will be closed, graded, recontoured, and seeded with appropriate seed mix. The Final Reclamation process is considered complete when vegetative cover over the entire site reaches 80% of pre -disturbance levels. This determination is made by the COGCC and includes only desirable vegetation, not weed species. Development Timeline and Employee Numbers The typical timeline for the development and production of the well pad is: Table 1. Development Timeline Phase Duration No. of Employees Pad Construction 30 days 6 contractors per day Drilling 155 days (45 days per well) 20 contractors per day Completions 310 days (10 days per well) 35 contractors per day Production 30 years 1 employee per day Final Reclamation 14 days 6 contractors per day The anticipated construction schedule will be approximately one month beginning in the last quarter of 2017, with drilling starting the fourth quarter of 2017. Construction start is dependent upon weather conditions. Grading and/or construction sequence, including the installation and removal of erosion and sediment control measures, and the estimated duration of exposure of each area prior to the completion of temporary erosion and sediment control measures will follow Ursa's CDPHE approved Stormwater Management Plan and Permit and COGCC Rules for interim and final reclamation and the SUA. The cost of the soil erosion control measures is anticipated to be $5,000 to $15,000 for the pad. Hours of Operation Preliminary construction of the well pad generally takes place during daylight hours. These hours are restricted by the SUA to between 7:00 am and 8:00 pm. Drilling will take place 24 hours a day as allowed in the SUA. Ursa will limit completion activities to between 7:00 am and 7:00 pm. Once the pad enters the Production phase, it will be an unmanned facility with periodic visits by Ursa personnel and contractors for routine inspections and maintenance between the hours of 7:00 am and 7:00 pm as an added BMP. May 19, 2017, revised July 14, 2017 5 O\OLSSON ASSOCIATES r Battlement Mesa PUD Phase 11— BMC L Ursa Operating Company and Battlement Mesa Land Investments, Parcel 1 Parking Lot and Access Road No formalized parking lot will be developed as part of the BMC L well pad. Only authorized personnel will be on the site during any part of the operation of the well pad. No public access will be allowed. Employees and contractors will be directed to park in specific areas based on safety needs during each phase of the pad's operation. The access road is approximately 880 feet from road to the proposed well pad site. The road will be graveled to control mud tracking off the site onto public roads. The access is designed to channel stormwater off the road and around the well pad site, while controlling erosion and sedimentation. Alternatives Analysis Ursa performed an alternatives analysis for this location to make sure that it is the most appropriate place for this set of wells. Consideration was given to the location most likely available to reach all bottom holes from a single well pad vs multiple pads to reach all bottom holes. The proposed oil and gas location is planned to accommodate 31 bottom holes. The farthest reach to a bottom hole from this location is approximately 3,588 feet. Based on the bottom hole locations in relationship to the location of the well pad, Ursa has determined that it is economically and technically feasible using proven existing technologies to reach all bottom holes, and that the maximum drilling reach of 3,588 feet is reasonable and practical. Alternative locations were considered and evaluated over the past several years to meet lease commitments, without requiring two locations or more to reach bottom holes. Other adjacent locations were considered for construction, drilling bottom hole reaches, and operations of the pad, access road, and pipelines. However, these options were eliminated due to landowner development plans and/or state, county, land use codes, and environmental considerations. The BMC L pad was expanded through a recent SUA amendment to allow for a larger pad size to accommodate additional bottom hole locations. Ursa has evaluated the proposed location and potential alternative locations to assess compliance with Federal, state and local regulations and land use codes, and the landowner's preference as documented in the SUA. In conducting the siting analysis, potential conflicting land uses and concerns were identified. The analysis included mineral lease obligations, SUA contractual obligations, existing and reasonably foreseeable land development uses, regulatory setbacks, community concerns, and potential impacts to natural resources, the environment, and wildlife. Based on the information provided in this siting rationale, alternative sites to the north, south and west aren't considered feasible for the location for reasons provided herein, and still have the ability to reach bottom holes. Ursa already has a location to the northeast approved by COGCC and Garfield County. Therefore, Ursa believes that the proposed location is the best option to locate the proposed well pad with appropriate BMPs and permit COAs. The full alternatives analysis is included in this submittal. May 19, 2017, revised July 14, 2017 6 O\OLSSON ASSOCIATES Battlement Mesa PUD Phase II — BMC L Ursa Operating Company and Battlement Mesa Land Investments, Parcel 1 Table 2. Summary of Required Permits Permit Required Responsible Regulatory Agency Status Land Use Change Permit —Special Use Permit and Major Impact Review Garfield County Application submitted May 2017 Stormwater Permit CDPHE Permit COR03K66 issued 5/21/2013, and administratively continued 5/21/2013, included in this permit. Air Quality CDPHE Air Permit Application will be submitted no later than ninety days following the date of first production Form 2 — Application for Permit to Drill COGCC Permit Applications submitted May 2017 Form 2A — Location Assessment COGCC Permit Application submitted May 2017 Access/Driveway Permit Garfield County Ursa will obtain any required access permits within 30 days prior to construction Pipeline Special Use Permit and Pipeline Development Plan Garfield County Applications submitted May 2017 Building Permits Garfield County Ursa will obtain when necessary for the pump house Watershed Protection Permit Town of Parachute Permit Application submitted July 2017. May 19, 2017, revised July 14, 2017 7 O\OLSSON ASSOCIATES Battlement Mesa PUD Phase 11— BMC L Ursa Operating Company and Battlement Mesa Land Investments, Parcel 1 This page is intentionally blank. May 19, 2017, revised July 14, 2017 8 O\OLSSON ASSOCIATES