# Environmentally Friendly Drilling Systems Program Balancing i l ff Env ronmenta l Tra d eo s

www.efdsystems.org www.facebook.com/EFDSystems



# US Department of Energy Secretary of Energy Advisory Board Natural Gas Subcommittee
June 28, 2011

# Items to Discuss

1. The Environmentally Friendly Drilling Systems (EFD) Program

**•** Incentives and Objectives

**•** Background
o How did it start o who are the players
o Funding

**•** Issues being addressed

**•** Outreach and Technology Transfer

2. Complementary Programs

3. The EFD Scorecard

**•** Measuring Processes

**•** Development of the Scorecard

**•** Comparison of Processes

**•** Status

# Opposition to O&G Activities

Focus on technologies for environmentally sensitive The objective is to identify , develop and transfer critical 

# EFD Program Overview

environmentally sensitive development of energy sources that can be used to maintain our standard of living and preserve our quality of life. develop and transfer critical , cost effective , new technologies that can provide policy makers and industry with the ability to develop reserves in a safe and environmentally friendly manner. 

# What gets measured, gets done. What gets identified, gets dealt with. What gets expected, gets respected.

### • Formed Team in 2005 (6 years)
& i i k l d b i 

# EFD Program History

• Texas A & M Un i vers i ty too k l ea d to o b ta i n

U.S. Department of Energy Funding

• Formed Joint Industry Partnership to

guide and co ‐ fund program

• Engaged Environmental Organizations

• Phase 2 led by HARC with RPSEA funding

• Formed University/National Lab Alliance

• Initiated EFD ‐ EU 5



# The EFD Team

Co ‐ funded by RPSEA, BOEMRE, Industry, Environmental Organizations

ENVIRONMENTAL ORGANIZATIONS SPONSORS MANAGEMENT TEAM ORGANIZATIONS

COLLABORATORS SPONSORS

ALLIANCE MEMBERS MANAGEMENT TEAM

# EFD Alliance responding to local issues

Issues and Concerns

• Land Usage
• Water
• Air Quality

• Biodiversity

• Societal

# Program Highlights

Sponsor Directed Projects

Ecosystem and Biodiversity Measurement and Assessment Energy Production and the Attwater’s Prairie Chicken Dope ‐ Free Connection Case Study



### Develop tools for adaptive ecosystem mana g ement to assist Investigate the effects of gas production operations on the Study the effectiveness of the state ‐ of
‐ the
‐ art and dope
‐ free pipe g integrated management of land, water and living resources that promotes conservation and sustainable use. operations on the Attwater’s Prairie Chicken. and dope free pipe connection technology, including regulatory issues and a field study.

# Outreach and Technology Transfer

From time of RPSEA Award:

25+Publications/Articles

50+ Presentations

14+ Workshops

4+ Exhibits

Environmental Assessment for Shale Gas Development in Ukraine E i t l S i St t t 

# Complementary Programs

Coastal Impacts Technology Program (CITP) T h l R dM i • E nv i ronmen t a l S cop i ng St a t emen t

• Special Studies

• Environmental Assessment

• Environmental Mitigation &

Monitoring Plan • T ec h no l ogy R oa d M app i ng

• Environmental Impact Mitigation

• Inter-State Collaboration

• Workforce Development

# What Will it Take to Do Better?

Making Environmental Stewardship a Core Value

# Scorecard Concepts

Energy Production 

# Focus Scorecard on Operation
Concept – USGBC 

# Energy Production Oil and Gas Operations

Upstream Downstream

Field 

# LEED Program

DevelopmentField OperationsExplorationDrillingCompletionsProcessingRefiningTransportationDistribution

### Stakeholders are all those who ar e affected, interested in or have the capacity to influence a project. 

# Stakeholder Engagement is Important!

Academia • Texas A&M University

College Station Environmental Organizations • Natural Resources Defense

Council Industry • API

B ll d E l ti State/Federal Agencies • US Department of Energy

B f L d M t College Station • Texas A&M University

Kingsville • University of New

Hampshire • UT Medical Center • Mississippi State University • Sam Houston State • University of South Alabama • John Hopkins University • University of Arizona • University of Texas

• University of Houston Council • Environmental Defense Fund • The Nature Conservancy • Conservation International • Mercer Arboretum • Bureau of Applied

Anthropology/Arizona • Clinton Climate Initiative • Rocky Mountain Clean Air • McFaddin Ranch • B a ll ar d E xp l ora ti on • BP • Shell • Chevron • StatoilHydro • ConocoPhillips • Devon • King Exploration • Halliburton • Huisman • National Oil Well – Varco • MI Swaco • B ureau o f L an d M anagemen t • US Park Service • Texas Railroad Commission • Texas General Land Office • Texas Dept. of Agriculture • Texas Dept. of Transportation • US Minerals Management

Services • Texas Parks & Wildlife • Texas Water Board • Texas Commission on Env.

Quality

Source:Connor Development Services Ltd • University of Houston • TerraPlatform • T. Baker Smith • Weatherford • Derrick Equipment • Composite Mats • Ecology and Environmental

Inc. • PTTC • IADC Quality • US Environmental Protection

Agency • US Fish and Wildlife • Argonne National Laboratory • Big Thicket Preserve • Idaho National Laboratory



# Tradeoff Scorecard Development

# Comparison of IPIECA and EFD Scorecard Indicators Note: the highlighted colors ind icate potentially comparable in dicators/data points BLUE   = air quality/GHG emissions PURPLE = energy/power use YELLOW = wildlife/plant life/biodiversity GREEN = water RED = waste GREY = spill prevention GOLD = community engagement *Indicators not color‐coded do n ot share a category with indica tors in the other reporting system 

# IPIECA Indicators Environmental Indicators ‐ Climate change and energy o Greenhouse gas (GHG) emissions o Energy use o Alternative energy sources o Flared gas

‐ Ecosystem services o Biodiversity and ecosystem services o Fresh water

‐ Local environmental impact o Other air emissions o Spills to the environment o Discharges to water o Waste 

### Health and safety indicators ‐ Workforce protection o Workforce participation o Workforce health o Occupational injury and illness incidents

‐ Product health, safety and environmental risks o Product stewardship

‐ Process safety and asset integrity o Process safety 

### Social and economic indicators ‐ Community and society o Local community impacts and engagement o Indigenous peoples o Involuntary resettlement o Social investment

‐ Local content o Local content practices o Local hiring practices o Local procurement and supplier development

‐ Human rights o Human rights due diligence o Human rights and suppliers o Security and human rights

‐ Business ethics and transparency o Preventing corruption o Preventing corruption involving business partners o Transparency of payments to host governments o Public advocacy and lobbying

‐ Labor practices o Workforce diversity and inclusion o Workforce engagement o Workforce training and development o Non-retaliation and grievance system

# EFD Scorecard Indicators Air **** Prerequisites o Regulatory compliance
**** Credits o Contractual obligati ons for logistics

 1 point: require all contract ors and subcontractors associated with any logistical support or well site operations to use retrofit technology on all on-road vehicles that have Tier I or lower engines

 1 point: require all contract ors and subcontractors associated with an y logistical support to use clean Tier II (or higher) engines for on-road vehicles o Site emissions

 1 point: use clean Tier III/Type III engines for all non -road vehicles or ensuring application of retrofit technology to non-road vehicles that are Tier II or lower

 1 point: use Tier IV engi nes for all applications o Dust suppression

 2 points: submit a dust suppression plan and implementing/documenting the plan o Clean power

 1 point: use tier IV diesel engines or natural gas from the field to power electric motors to run the drill rig

 1 point: connect the drill rig to the electric grid

 1 point: connect the drill rig to the electric grid and cer tify that the electricity is generated by solar or wind o Green completions

 1 point: submit and implement a plan to use green completion practices 

### Water **** Prerequisites o Develop and implement a stormwater ma nagement plan that pr events or mitigates discharge of stormwater runoff. Use acceptable best manageme nt practices to reduce sources of c ontaminants from stormwater runoff. o Integrity testing of surface casing
**** Credits o Water cycle management plan

 3 points: develop and implemen t a water management plan

 2 points: develop and implement the segregation of liq uid effluents principally along industrial, utility, sanitary, and stor m water categories

 2 points: identify opportunities and implementing a program to preven t or reduce wastewater pollution through such measures as recycle/re use within the de velopment area

 1 point: assess the possibility of treat ing wastewater discharges for reuse

 1 point: perform baseline hydrology studies, mapping and hydrochemist ry studies and documenting water quality in the nearby ar ea prior to operations. o Setbacks from streams/sources

 2 points: contact all stakeholders th at have water wells, st reams, wetlands, or other water sources within 1,000 feed of the proposed operation

 1 point: contact all stakeholders within 500 feet of 5,000 feet downstream of the operation of any stream that is within 1,000 feed of the proposed operation

 1 point: hold a stakeholder meeting to discuss the operation, any risk to the fresh water sources and all risk mitigation efforts that are planned o Mitigation measures to protect ground water

 2 points: develop and implement a detailed monitoring program to ensure that mitigation measures are in place, functional and adequate

 2 points: include monitoring the non-contact r unoff to ensure contamination does not occur o Reduce water usage

 1 point: develop and implement a water use efficiency program

 1 point: develop and implement a pr ocess to reduce the use of hazar dous materials that could increase water treatment requirements o Reuse of water/fluids

 1 point: develop and implement a plan to use water/fl uids from nonpotable sources that are located within 50 miles of the sites

### Site **** Prerequisites o Regulatory compliance o Erosion and sedimentation control
**** Credits o Pre-existing site

 2 points: fully evaluate the possibility of the reuse of an existing drill site, determine the financial impact on the drilling budget, and select /use a pre-existing drill site o Pad drilling

 1 point: employ pad drilling to more than a single well from the drill site

 1 point: have a minimum of ei ght wells on the drill site o Protect and restore habitat

 1 point: perform a site survey to identify site elemen ts and adopting a plan concerning use and restoration of the site

 1 point: use a spill control system a nd mats to limit surface disturbance o Contractor guidelines

 1 point: publish an illustrated docume nt that provides contractors with information on how to reduce their environmental footprint re lated to the drill site

 1 point: hold training sessions with all contractors to re view the document and the strategies listed in the document. Provide supervision on-site to ensure implementation o Site restoration

 1 point: reclaim the site to its origin al elevations using the stockpiled topsoil and replanting the entire area with native grasses or othe r vegetation as directed

 1 point: use topography to hide structure locations and using low profile structures o Well design considerations

 1 point: document how the environmental sensitivities we re taken into consideration when developing the well design

 1 point: review the reservoir development plan to maximize production from ea ch well and minimize the number of wells that need to be drilled o Living quarters and people

 2 points: develop and implement a recyc ling program to minimize household waste o Organic materials

 1 point: harvest organic materials dur ing site preparation, mulch organi c materials to be used on-site during site restoration, and bur y remaining organic materials o Preplan and production

 2 points: pre-plan for production by including the lay out of flowlines, planning for stock tanks and other production equipment during the well site preparation o Match site/access to topography

 1 point: use, whenever possible, previously impacted terrain for access routes and build irregularly shaped drill pads to conform to natural topography o Logistics plan—offsite storage

 1 point: develop and implement a l ogistics plan that considers a centralized location for storage of equipment and supplies for various frill pads o Planting of native vegetation

 1 point: develop and implement a plan that includes pl anting of native vegetation at the appropriate time of year for the plants to become established

### Waste management **** Prerequisites o Waste management plan o Pit design pre-site assessment
**** Credits o Drilling fluid handling system

 2 points: use cuttings management plan

 2 points: use environmentally friendly drilling fluids

 1 point: use a modified closed loop system by using additional drilling fluids handling equipment in addition to what is supplied by the rig

 1 point: use a full closed loop system in addition to rig system that includes a cuttings dryer o Handling of rig wastes

 2 points: use biodegradable lubricants and in cluding a recycle/salvage plan for disposal

 1 point: use environmentall y friendly pipe dope for bot h drill pipe and casing

 1 point: use an electric top drive system to minimize use of hydraulic fluids

 1 point: maximize the use of bulk materials o Spill prevention system

 1 point: to minimize the risk of any spillage, including drilling fluids, oil/fuel, lubricants, drip pans and other devices/systems should be used

 1 point: ensure that all equipment installed on the site is designed so that any effluent is caught and not discharged directly into the environment

 1 point: develop and implement plan for bior emediation of spills and use of landfarming o Cuttings reuse

 3 points: develop and implement a drill cutting recovery and reuse plan o Cuttings reinjection

 3 points: develop and implement a cuttings reinjection plan 

### Biodiversity/ habitat **** Prerequisites o Species protection o Habitat protection/enhancement o Regulatory requirements
**** Credits o Restoration/interim reclamation

 4 points: develop a well abandonment plan before the well is drilled to ensure that the plan is updated during the well’s life whenever the well’s configuration is changed o Reduction of surface disturbance

 1 point: during construction and drilling, shuttle workers to site

 1 point: establish centralized location for hydraulic fracturing and water delivery

 1 point: install systems to enable remote monitoring o Erosion prevention

 1 point: plan and install access roads to avoid erosion

 1 point: armor roadway ditches and leadoff ditches with rock riprap o Voluntary offsite mitigation

 1 point: establish and implement a plan that includes passive techniques that encourage biodiversity and ecosystem health o Invasive species prevention

 1 point: perform three (3) of the following: site restora tion, identify and establish no impact zones, clean equipment that is moved betw een sites to prevent transport of invasive species, ensure that materials (soils, mulch, etc.) brought in to site are certified to be i nvasive free, identify and rem ove invasive species on site o Reintroduction of species, habitat

 1 point: ensure that a botanical expert is on-site when clearing vegetation occurs. The expert should develop a pre-disturbance species composition list. Then, a restorati on/revegetation plan should be developed and implemented based on the pre-disturba nce species composition list. Also, ensure that a wildlife expert is consulted and on-site, if necessary, when site construction activities occur. The expert should document various topogr aphical and other features that are conducive to wildlife habitat(s). Then, a restoration plan should be develope d and implemented that would encourage the return of native wildlife o Avoidance of high value areas

 1 point: include input from on-site la nd manager(s) to preserve agricultural land when selecting locations for facilities o Wildlife and habitat:

 1 point: Scout the sensitive areas and plan routes like ly to cause least disrupti on, stay clear of wildlife areas marked on the planning map to avoid sensitive areas, ban hunting and fishing at all times, instruct crews not to intentionally harass or feed wildlife, ba n pets on all crew faciliti es, report incidents and any significant problems with wildlife , train crews to identify wildlife

 1 point: develop and implement a habitat mitigation plan that includes enhancements to the area that encourages biodiversity and im proves wildlife mortality rates

### Societal **** Prerequisites o Regulatory compliance o Communication plan (an agreement in writing from land managers and landowners concerning plans to construct new facilities. Also develop and implement a transparent process concerning making decisions about)
**** Credits o Public outreach

 1 point: engage community early and often in discussions concerning energy development, reach a consensus with community leaders concerning location of facilities that may pote ntially be visible from public places, work with local law enforcement to deve lop and implement measures to reduce traffic safety hazards, engage local and regional officials to advise on health and safety concerns associated with operations

 1 point: develop and implemen t a logistics plan to transport all cons umables for the project to and from the location in the least disruptive wa y and how to store and use them on location in the safest possible manner
 1 point: develop and implement a public interaction plan, including a communication process that keeps the public informed of pla nned activities and progress o Noise and lighting control

 1 point: work with community leaders to identify noise management guidelines

 1 point: minimize residual lighting effects o Training of local first responders

 1 point: develop and implement a plan to train loca l emergency medical servic e personnel on issues that may arise during operations

 1 point: provide support to local public health service pr oviders that could address key public health issues o Air quality monitors

 1 point: install air quality monitors to ensure th e following values are not exceeded: VOCs (including benzene): 20 milligrams per normal cubic meter, hydrogen sulfide: 30 milligrams per normal cubic meter, odor: not offensive at the receptor end

 1 point: provide website that ha s links to data from sensors o Emergency response plan

 2 points: develop and implement an Emergency Response Plan that goes beyond requirements and engages the community. The plan should be a set of scenario -based procedures to assist emergency responders during real life emergencies as well as training exercises. The plan should include an assessment of local support capabilities o Dispute resolution plan

 1 point: develop a dispute resolution pl an that is agreed to with landowners. Include in the plan a process that would handle any dis pute and agree on how the costs would be split among the affected parties o Surface use plan

 1 point: develop and implement a Surface Use Plan that ensures environmental expectations exceed regulatory requirements concerning e xploration and production activities

 1 point: (1) organize and hold a workshop to inform all landowners and the surrounding community about the operational commitm ent to environmental stewardship and (2) routinely (suggested weekly, but at least monthly) inform landowners and comm unity about environmental stewardshi p related to surface use. This may be done through a website, electronic ne wsletters, mailings, or other means o Unintended consequences program

 1 point: develop and implement a company polity that addresses unintended consequences that may arise during development. Communicate the company policy to all stakeholders. In addition, ensure that all stakeholders are aware of whom to contact if/when an issue arises

# Summary

1. The Environmentally Friendly Drilling Systems (EFD) Program

**•** Brings all stakeholders together

**•** Broad program that takes a systems approach to issues

**•** Strong, worldwide program

2. Complementary Programs

**•** Coastal Impacts Technology Program

**•** Ukraine effort s

3. The EFD Scorecard

**•** Comprehensive review of operations

**•** Consensus of s takeholders developed scorecard

**•** Currently testing ‘ alpha prototype ’

# It’s not so hard to be green

Questions?

www.efdsystems.org www.facebook.com/EFDSystems


# Thank you

Richard C. Haut, Ph.D. Houston Advanced Research Center 4800 Research Forest Drive The Woodlands, TX 77382

281 ‐ 364 ‐ 6093
rhaut@harc.edu