Posts Tagged ‘contractor’

Gas drilling incident in western Pennsylvania linked to firm’s corner-cutting tactics.

From staff and wire reports

HARRISBURG – Rig workers’ inexcusable failure to use a second set of pressure-control devices while preparing to connect a natural gas well to a pipeline led to the well’s blowout in western Pennsylvania last month, a consultant’s report said Tuesday.

State regulators, who hired the consultant, quickly ordered all drilling operators to adhere to a set of safety standards designed to prevent another such incident.

“I don’t know any company that would cut corners like this on this kind of well,” said consultant John Vittitow, a Texas-based petroleum engineer.

The company, Houston-based EOG Resources Inc., has used this same tactic on other wells in Pennsylvania, Vittitow said.

“I don’t think they’ll use it again,” he added.

Meanwhile, state Environmental Protection Secretary John Hanger warned that another such incident could mean the end of EOG’s business in Pennsylvania, and insisted state regulations don’t allow EOG’s tactics.

EOG and its contractor, C.C. Forbes Co. of Texas, were given maximum fines of more than $400,000 combined and ordered to take corrective actions, but were allowed to resume all activities in Pennsylvania on Tuesday after a 40-day suspension of well-finishing work.

EOG operates nearly 300 wells in Pennsylvania.

The blowout happened late June 3 on the grounds of a hunting club in Clearfield County where EOG is drilling a number of wells.

For 16 hours, explosive gas and briny wastewater shot into the air before specialists brought it under control.

Hanger insisted Tuesday that existing regulations do not allow EOG’s tactics because they require companies to obey accepted industry safety standards.

Most companies obey those, he said, but a letter sent Tuesday would lay out in detail what is expected of them.

Gary L. Smith, EOG’s vice president and general manager in Pittsburgh stated in an e-mailed that company officials “sincerely regret that the well-control issue took place.”

Since that time, Smith said, EOG has worked with the DEP to resolve all issues, will implement the new operational procedures outlined in the letter to gas well operators and looks forward to resuming activities.

Marcellus Shale Coalition president and executive director Kathryn Klaber said the new regulations DEP put forth “have already been incorporated by many of our members as part of their regular wellsite operations.”

State Rep. Phyllis Mundy, who is leading the charge for a moratorium on gas drilling in the state, said the $400,000 in fines and 40-day suspension “seems like a pittance … for what was clearly an inexcusable lack of proper procedure to care for the environment and their workers.”

Mundy, D-Kingston, said the incident “reinforces the need to hit the pause button with a moratorium. With this kind of activity, there will always be accidents.

“But with proper laws, regulations, best practice guidelines and inspections in place, we could prevent many of them and be much better prepared to deal with them when they do occur. Those things are not in place at this time, yet we continue to issue new permits. We are simply not prepared to either prevent or react to these incidents.”

Hanger said his agency would redouble its inspection activity with more emphasis on well-finishing work.

Copyright: Times Leader

HARRISBURG – Untrained personnel and the failure to use proper well control procedures were the principal causes of a June 3 natural gas well blowout in Clearfield County, according to an independent investigation that was released today by the state Department of Environmental Protection.

DEP Secretary John Hanger said the blowout, which allowed natural gas and wastewater to escape from the well uncontrollably for 16 hours, was the result of failures by the well’s operator, EOG Resources. The company and its contractor, C.C. Forbes LLC, lost control of the well while performing post-fracturing well cleanout activities.

“The blowout in Clearfield County was caused by EOG Resources and its failure to have proper barriers in place. This incident was preventable and should never have occurred,” said Hanger, who added that EOG Resources has been ordered to take nine corrective actions; C.C. Forbes ordered to take six corrective actions and both companies were fined more than $400,000, collectively.

An EOG representative said the company would issue a press release in response to DEP’s announcement later today.

Following a 40-day suspension of operations in Pennsylvania, EOG Resources and C.C. Forbes were permitted to resume all well completion activities. EOG Resources, formerly known as Enron Oil & Gas Co., operates approximately 297 active wells in Pennsylvania, 139 of which are in the Marcellus Shale formation.

The report was compiled by John Vittitow, whom DEP hired to conduct a thorough and independent investigation into all aspects of EOG’s drilling operation based on his respected reputation in the industry as an experienced petroleum engineer. The investigation was conducted alongside, but independently of, DEP’s investigation.

“Make no mistake, this could have been a catastrophic incident,” Hanger said. “Had the gas blowing out of this well ignited, the human cost would have been tragic, and had an explosion allowed this well to discharge wastewater for days or weeks, the environmental damage would have been significant.”

In light of the investigation’s findings, Hanger said his agency has written each company drilling into the Marcellus Shale to ensure they understand proper well construction and emergency notification procedures. The letter stated that:

• A snubbing unit, which prevents pipes from ejecting uncontrollably from a well, may be used to clean out the composite frac plugs and sand during post-fracturing (post-frac) if coil tubing is not an option.

• A minimum of two pressure barriers should be in place during all post-frac cleanout operations.

• Any blowout preventer equipment should be tested immediately after its installation and before its use. Records of these tests should be kept on file at the well site or with the well site supervisor.

• A sign with DEP’s 24-hour emergency telephone number and local emergency response numbers, including 911 and the county communications center, should be posted prominently at each well site.

• At least one well site supervisor who has a current well control certification from a recognized institution should be on location during post-frac cleanout operations. These certifications should be in possession at all times.

• A remote-controlled, independently powered blowout preventer unit, which allows workers to control what’s happening on the rig at a safe distance, must be located a minimum of 100 feet from the well and operational during all post-frac cleanout operations.

The fines assessed to EOG Resources and C.C. Forbes—for $353,400 and $46,600, respectively—will cover the cost of DEP’s response to the incident and the investigation. In addition to the financial penalties, DEP ordered EOG Resources to implement practices and take nine corrective actions to avoid a repeat of this incident. C.C. Forbes was ordered to implement similar practices and to take six corrective actions.

Copyright: Times Leader

EnCana’s hydraulic fracturing has never impacted a water well, spokeswoman says.

By Steve Mocarskysmocarsky@timesleader.com
Staff Writer

Wendy Wiedenbeck acknowledges that Luzerne County residents might be troubled by the fact that EnCana Oil & Gas (USA) Inc. paid $1.5 million in fines over the past four years.

But Wiedenbeck, the community and public relations adviser for the natural gas company that will begin drilling in the Back Mountain and Red Rock areas this summer, said the company is “committed to responsible development” and today is “a leader in environmental stewardship.”

According to data Wiedenbeck provided at the request of The Times Leader, EnCana was assessed $542,000 on nine fines in 2006; $663,000 on 19 fines in 2007; $306,000 on 19 fines in 2008; and $3,000 on 10 fines in 2009. The data for 2009 is subject to change, she said.

Some Back Mountain residents and elected officials have expressed concern that drilling activities could contaminate water private water wells or the Huntsville and Ceasetown reservoirs.

Wiedenbeck said EnCana has never had an instance in which the company’s hydraulic fracturing process affected a water well.

“In fact, there has never been an instance where the fracking process impacted water wells. We have, however, experienced operational failures, which resulted in regulatory violations and fines. These range from issues with lost circulation during cementing, which resulted in permanent changes to cementing protocols in 2004, to deficiencies with location signage,” she said.

Encana’s violations have ranged a wide gamut, from a $1,000 fine after a contractor’s truck broke down on a mountain road during a restricted time period, preventing parents from picking up their children from a bus stop in 2002, to the largest fine issued by the Colorado Oil & Gas Conservation Commission for allowing gas to migrate into a creek.

The commission fined EnCana a record $371,000 after one of the company’s wells leaked into West Divide Creek in Western Colorado in 2004. The seep was found to contain the carcinogenic chemical benzene.

Wiedenbeck said that fine is included in the total assessed in 2006, and the seep resulted from a failure in cementing procedures at the well.

“We made a mistake. We moved too fast. But we worked with the commission to modify and improve the cementing procedure in Colorado. Since then, we’ve drilled hundreds of wells in Colorado without incident. But (the Divide Creek incident) is part of the reason why we’re taking a very thoughtful and measured approach to our operations in Luzerne County,” she said.

Wiedenbeck also pointed to a vast improvement in EnCana’s record related to spills.

In 2009, EnCana had 75 reportable spills totaling 4,036 barrels of material, a volume reduction of 38 percent from 2008 and 87 less than in 2007, she said.

Dave Neslin, executive director of the Colorado Oil & Gas Conservation Commission, said commission staff views EnCana as “a responsible operator.”

Neslin said EnCana’s compliance has improved since the Divide Creek seep, and the company implemented an extensive remediation plan. “Much of the impact has been remediated,” he said.

Neslin said EnCana is one of the largest operators in the state, responsible for nearly 10 percent of the approximately 40,000 active oil and gas wells in the state.

He noted that the company was the first to voluntarily establish a wildlife mitigation program encompassing 44,000 acres to ensure wildlife populations will be protected, and that EnCana won a commission award last year for the company’s Courtesy Matters community outreach program.

Steve Mocarsky, a Times Leader staff writer, may be reached at 970-7311.

Copyright: Times Leader

Before Marcellus Shale work, queries made over well water tests, roads and procedures.

EILEEN GODIN Times Leader Correspondent

LAKE TWP. — A gas company coming into the township in July caused residents to question procedures, well-water testing and road maintenance during Wednesday night’s supervisors meeting.

In July, Lake Township will begin a Marcellus Shale gas drilling operation by EnCana Oil and Gas USA of Denver, Colo. The site is owned by Supervisor Amy Salansky.

Salansky said the farm was previously owned by an older neighbor, who willed the gas and mineral rights to a nephew and gave Salansky and her husband the “first right to buy” the land.

“The agreement was already made when we purchased the farm,” Salansky said.

Residents within a mile radius of the site have recently received letters from EnCana stating a voluntary assessment of well water will be scheduled immediately. Salansky said the letter states a third-party environmental firm, Rettew, of Lancaster, will collect water samples.

Samples will then be sent to a state certified lab, at no cost to residents.

The letter stated that if residents wanted to use a lab of their choosing to test water, the sample will be split by Rettew and sent to a second lab. This would be at the residents’ cost.

With 75 percent of the township’s roads dirt, residents questioned supervisors on routes EnCana may use and who would be responsible for maintenance and repairing damages.

Chairman Lonnie Piatt said the township roads are not bonded yet, but the township does have an agreement with EnCana. He said it is a possibility that EnCana will hire a contractor for road maintenance. What routes will be used is still undecided.

Salansky said that officials have not sat down with EnCana to determine which routes will be used.

Barney Dobinick, the township’s emergency management coordinator, said it is possible that the gas driller’s trucks will run on a different schedule than school buses, so the two are not navigating roads at the same time.

Dobinick said EnCana has provided him with a list of chemicals to be used on site and a list of the firm’s safety guidelines. He also has the state Department of Environmental Protection’s regulations for gas drilling.

In other business, the annual spring cleanup will be 9 a.m. to 2 p.m. May 8, at the municipal building.

Residents must have proof of residency and pay $15 per pickup-truck load, $20 for large pickups and $6 per car load. An additional $6 fee will be applied for the following items: washers, dryers, carpets, overstuffed chairs, couches, dressers, TV sets, hot water heaters, boilers, furnaces, stoves and large appliances.

The following items will not be accepted: tires, hazardous wastes, chemicals, brush, tree stumps, cinder blocks, animal waste, shingles, sheet rock or other building materials, garbage, freezers, refrigerators containing Freon, and air conditioners.

For questions, call 629-2828.

Copyright: Times Leader