From: MacDonald May [macdonald-may@ns.sympatico.ca] Sent: Wednesday, June 04, 2014 9:25 PM To: Stephen McNeil Cc: Allan MacMaster; Randy Delorey; HFReview Subject: Wheeler report Energy Well Integrity Dear Premier McNeil, I am writing you regarding the latest “discussion papers “ from the Wheeler Panel .We are now a month after the closure of submissions from the public , and yet none of the information provided by the public to the panel is included in any of their reports .As I volunteer , I have made a submission, and responded to the “primer” and first two discussion papers . As of yet there has been no announcement as to how the responses will be incorporated in the final report .Dr. Wheelers introduction to the latest document appears to limit input to matters of clarity , not correcting misinformation in the draft , or incorporating additional information into the final report . Dr. Wheeler’s disinterest in public input was highlighted in today’s Chronicle Herald regarding criticism from Duncan Keppie . It appears that after assembling a panel with representation from gas industry insiders that gas industry sales brochures are regarded as credible evidence , but public input is dismissed out of hand . It was clear from the manner in which Dr. Wheeler structured the review and selected his panel, that the focus of the review was to be myopic and reductionist , as opposed to holistic and broad . The science of reductionism is the process of hiding “ death by a thousand cuts “ , each cut is presented in isolation of the others , and so far the panel has reports have restricted a review of costs and risks to less than a single page . What I do find surprising is how amazingly bad all documents have been, as Mr. Keppie said “garbage” Yesterday Dr. Wheeler dumped two documents allowing 18 days for response . While Dr. Wheeler and his panel are funded by the province, I am not .I have put hundreds of hours into my submissions, and reviews of the panel documents , and it all appears to be a complete waste of time, as Dr. Wheelers experts will dismiss all my concerns and evidence in pursuit of what gives every appearance of a forgone conclusion . One of the hallmarks of the reports prepared by Wheeler’s panel is that claims are presented as facts , with no supporting reference . I quote the unsubstantiated claims of the pro shale development panel without comment . Dr. Wheelers reports continue to be based on false assumptions, wishful thinking and blinkered ignorance .Below are unreferenced statements from Wheelers latest report Energy Well Integrity .In a few cases I have added a “Note” , but in most cases not . I don’t disagree with many of the all statements , but claims should be supported by evidence, and when conducting a review to assist government in its decision making , there information should be referenced and supported by evidence, not “our expert knows better than your expert” “Technological advances are helping to reduce the incidence of leaking wells and are providing means for better quality control and leak detection capabilities.” “the frequency of substantial leaks is low, and the leakage rates are low as well” “When leakage is identified, methods exist to rectify the problem. Although rigorous statistics remain elusive, it seems that the number of problems encountered in Alberta and British Columbia, both relatively mature regulatory environments, is not large.” “Because possible future unconventional resource development in Nova Scotia would take place using modern technology with multiple wellbores installed at each drilling site, it is a relatively straightforward task to establish good monitoring and regulatory practices to ensure that the site is geologically understood, that wells are properly installed, and that well abandonment is done according to best practice guidelines” “Moderate tectonic stresses and strong rock mean that wellbore quality will be excellent, leading to high quality primary cementing operations, and therefore fewer cases of leaking wells” “Well construction practices have also evolved over many decades, as greater experience has been gained in different geological conditions, and as new materials and techniques have been developed.” “Since the technique was first introduced in the late 1940’s, more than a million wells have been hydraulically fractured worldwide,” NOTE this is a familiar theme in the papers produced by Wheeler’s panel , basing safety of unconventional extraction on history of conventional operations . The fact that the use of fractures in conventional oil and gas have not created the problems that are ubiquitous with unconventional sources is ignored , yet despite this the report frequently claims that there have been improvements made in well design and construction, a statement Dr. Anthony Ingraffea PhD Rock Fracture Mechanics has ridiculed in numerous presentations . “In onshore Nova Scotia, large volumes of gas at depth and pressures far above hydrostatic pressure (10-11 MPa/km) do not exist.” “standard well designs and safety measures are sufficient to address the small risk of a blowout.” “The first element in creating good wellbore integrity is to make sure each casing joint is properly connected to the previous one so that no fluid leakage can take place through the connection.” NOTE As Dr. Ingraffea has pointed out “ It is impossible to build a well that does not leak” “With modern cementing practices and quality control, having to immediately repair a new well is a rarity.” “Also, because the production casing is not exposed to mechanical wear, wellbore integrity is seldom an issue after the well is properly completed. ” “Nevertheless, as discussed later, behind-the-casing gas migration continues to be an issue is a small percentage of energy wells.” this is footnoted to a previous footnote which reads ,”9 For a broad yet detailed discussion of various potential environmental impacts of shale gas development in a Canadian context, refer to the following publication: Council of Canadian Academies, 2014. Environmental Impacts of Shale Gas Extraction in Canada. Ottawa (ON): The Expert Panel on Harnessing Science and Technology to Understand the Environmental Impacts of Shale Gas Extraction, Council of Canadian Academies. Commissioned by the Council of Canadian Academies for Canada Environment, May 01, 2014. The author served on this Expert Panel, and the sections in the Report on well integrity were in large part formed by the author.” “The tendency in the industry is to increase the number of centralizers and scratchers to assure a better seal for the region between the casing and the rock mass” “Once the plug hits the shoe, it opens, and the cement slurry flows out of the shoe and up and around the casing. Once the appropriate volume of cement is mixed, a second wiper plug is placed in the casing to displace all of the cement into the exterior annulus while wiping the inside of the casing clean.” “In this way, future issues relating to well integrity and risks of interaction with shallow aquifers will be minimized” “All these factors, plus the fact that the pressure in the productive horizon is being lowered because of continued depletion, means that maintaining well integrity would be relatively straightforward. Any problems will most likely be associated with seepage of gas, not oil or saline water, because gas is buoyant” “If loss of casing integrity is observed at any time during production, the operator must fix the problem” “Pathway 1 remains speculative, and compared to other pathways, can reasonably be left to effective monitoring and regulatory controls in the context of possible onshore Nova Scotia oil and gas development.” “By contrast, in Nova Scotia, there are only a few abandoned legacy wells that penetrate deep into the shale gas strata, and the locations of these wells are well-known, so the risks of fluid migration into these wellbores during hydraulic fracturing or other production activities are likely minimal.” Note , in the MacIsaac Point area there are numerous abandoned wells and their locations are not known. “Pathway 5 would be of limited concern in Nova Scotia providing that good quality assurance of the primary cementing operation is maintained.” “It is a standard regulatory requirement that the corporation report gas migration events” “Once the source is located, perf-and-squeeze operations can be used to shut the pathway above the source and greatly reduce the chances of further gas seepage.” “Although an undesirable event from a greenhouse gas and aesthetic perspective, the impact of methane entering potable water sources is not a serious health issue in comparison to many other chemical contaminants.26” Note , the claim is footnoted , yet the relevance of comparison to “other chemical contaminants” appears irrelevant. Methane is an explosive gas, and it’s presence in domestic wells and homes are likely to have impacts aside from toxicity , for instance EPA warnings to people in Pennsylvania to shower and do laundry only in well ventilated areas . “Gas entering shallow groundwater wells may be a nuisance, including exceptionally an explosion hazard, but other than making groundwater unpalatable in some cases, no severe health impacts appear to have been demonstrated at this time” “Once the commercial life of a shale gas well is over, often fifteen or more years, it must be abandoned according to stipulated practices laid down by the regulatory body” Note there is no evidence of any shale gas operations lasting 15 years. the average life of shale development, according to economist Deborah Rogers is 6.5 years “If there is any detectable surface casing vent gas flow, which occurs in perhaps 10-15% of wellbores30” , footnote 30 reads “30 Surface casing vent flow data are registered with the regulatory agency; therefore, there are excellent statistics available in this area, in contrast to gas migration behind casing, where there are few data, insufficient to make strong quantitative conclusions.” “evidence of seepage or loss of pressure integrity between the intermediate string and the production string, remediation must be implemented to reduce such flows to negligible values before the well is sealed.” “Cement bond logs, temperature logs, and noise logs may be used to identify the source of the gas migration to guide the location of the perforating action, and the well will have to be monitored for SCVF before abandonment. Exceptionally, several perf-andsqueeze operations may be required to reduce seepage rates to mandated levels” “Probably 70% of these wells have been plugged and abandoned, and although there are many instances of gas migration, which must be fixed when noted, there do not seem to be major environmental problems arising from the existence of these abandoned wells at this time.” “This is not an easy statement to verify because methane seepage has not been considered by toxicologists as an issue worthy of their attention, and this is supported by the lack of publications in this area. Certainly, there are many areas in the world (Pennsylvania, central Alberta) where natural seepage of methane is endemic,” “In any case, most jurisdictions have “orphan well” funds, provided by a levy on production, that are used to fix wells for which an owner cannot be found; otherwise, the responsibility is that the owner fix the leaking abandoned well to the standards set by the regulatory agency.” “Perf-and-squeeze operations are less likely to be needed in Nova Scotia, for reasons discussed before and because general oilfield practice continues to improve. If they are, there is a concern that in very stiff dense rocks, the high pressures needed to force the cement into the cement-rock system will tend to wedge open natural fractures that could serve as future pathways behind the casing.” “Better sealing agents that can flow into small cracks and which tend to wet the surfaces of the cracks would be more effective than cement to seal wellbores, but such materials (low viscosity resins for example) have not been widely adopted. As in many other cases, there is insufficient publicly available data on the efficacy of practices such as cement squeezing, and there is also a reluctance to adopt somewhat more demanding and expensive techniques for sealing wells.”Note, an interesting reference to industry’s endemic disinterest in wells , once they are no longer producing. “Better sealing agents that can flow into small cracks and which tend to wet the surfaces of the cracks would be more effective than cement to seal wellbores, but such materials (low viscosity resins for example) have not been widely adopted. As in many other cases, there is insufficient publicly available data on the efficacy of practices such as cement squeezing, and there is also a reluctance to adopt somewhat more demanding and expensive techniques for sealing wells.” “Summery and Conclusions , Unconventional oil and gas development using modern well cementing and completion techniques leads to generally good wellbore performance, but there will never be a 100% success level in sealing all wellbores against all possibilities of future leakage. Continued technological advances are helping to reduce the incidence of gas migration around active and abandoned wells through improvements in cementing methods (for example more centralizers, better denser cement formulations etc.), new materials for correcting leakage problems, better methods for detecting poor-quality cement behind the steel casing in the hole, even better methods of detecting slow methane seepage around old abandoned wellbores. Despite all these advances, human error will always occur; in the case of oil and gas wellbores, the risks associated with inadequate well integrity are not great, as shown by years of experience with hundreds of thousands of wells in the western provinces. Nevertheless, vigilance and explicit quality assurance practices are necessary to keep incidents of human error low, and to rectify problems that may have arisen because of such an error. The most important wellbore integrity problem, at least in North America and perhaps internationally, seems to be gas seepage along the outside of casing, and this may not be a severe environmental problem because the incidence of leaking wells can easily be reduced, the seepage rates are small in general, and the environmental consequences of seepage of natural gas into aquifers and into the atmosphere are not catastrophic, albeit undesirable. Because any possible unconventional oil and gas development in Nova Scotia would take place using modern technology with multiple wellbores installed at each drilling site, it is a relatively straightforward task to establish good regulatory practices in advance to ensure that the site is geologically understood, that wells are properly installed with good quality assurance, and that well abandonment is done according to best practice guidelines. The mature regulatory practices of jurisdictions such as Alberta could serve as a guide to the establishment of a system in Nova Scotia, with minor modifications as deemed necessary by local regulators, scientists and engineers. Operators can be required to be vigilant and that the data be made public so that concerns about activities and impacts may be subject to transparent oversight. Developments in regulatory practices continue to be made. For example, a multi-level groundwater monitoring well at each multi-well drilling site may be required in the future in some jurisdictions, and is currently being debated in the regulatory world. If this is mandated, the well should be installed under the supervision of a licensed third-party before the first borehole is drilled, and the groundwater well should be sampled and analyzed initially and each two to three years thereafter and until ten years after the last well is abandoned. In this way, a problem with energy wellbore integrity that impacts groundwater could be identified soon and corrective measures taken before a more severe problem develops over a larger area. Because each unconventional oil and gas multi-well pad would be draining the gas from an area of several square kilometers (4-6 km2), the number of sites will remain few and fairly widely spaced, so that it is far easier to detect issues and rectify them. The natural advantages that exist in Nova Scotia shale gas regions would lead to a much lower incidence of poor wellbore integrity compared to historical practices in other jurisdictions if development should ever take place. A few of these are listed here: ? Moderate tectonic stresses and strong rock mean that wellbore instability during drilling will be largely absent; high quality wellbores lead to higher quality primary cementing operations, and therefore fewer cases of leaking wells. ? Except in the coalbed areas, there appear to be few gas sands at shallow depth that could lead to problems with intermediate-depth gas migration behind the casing. ? Shale gas in Nova Scotia is likely to be sweet gas (little to no H2S), making all operations easier and casing life longer. According to analysis by Hayes and Ritcey32, any significant development of Nova Scotia’s unconventional oil and gas would not take place for several years, perhaps much longer. This gives Nova Scotia time to establish appropriate monitoring and regulatory systems if the possibility of such development emerges, and to benefit from more technical advances in cementation, measurements, and general scientific knowledge about well integrity.” Note this constitutes the entire section . Dr. Hayes and Mr. Ritcey are members of the “expert panel” Their opinion may be of interest, but it is no more than opinion. “Note that the production casing is protected against any issues that might arise from repeated high pressure flexing of the cemented casing.” The above is not exhaustive or complete , simply illustrative . Thank You for your attention Geoffrey May Margaree Harbour