Known & Potential Environmental

Effects of Oil and Gas Drilling

Activity in the Great Lakes

Megan Hurst: U.S. Army Corps of Engineers,

Chicago District
Dr. Ihor Hlohowskyj: Department of Energy,
Argonne National Laboratory
 Agenda

• Authority, Purpose, and Scope

• Study Team and Approach

• Report Summary
• Study area and resources
• Oil and gas exploration and drilling technology
• Oil and gas release incidents
• Potential effects

• Summary and Conclusions

2
 Study Authority

ƒ Section 503 of the Energy and Water Appropriations

Act of 2002 directed USACE to:
“Conduct and submit to Congress a study that examines
the known and potential environmental effects of oil and
gas drilling activity in the Great Lakes (including effects
on the shorelines and water of the Great Lakes).”

ƒ Study requested by House Energy and Water

Appropriations Subcommittee in June 2004.
• Energy and Policy Act of 2005 placed permanent ban
on Great Lakes oil and gas drilling.
• Final report submitted in March 2006.
3
 Study Purpose and Scope

ƒ Purpose:
ƒ Identify potential environmental effects of oil
and gas development in the Great Lakes
ƒ Does not address or recommend Federal
action
ƒ Scope:
ƒ Great Lakes Basin (the Basin) and its natural
and socioeconomic resources:
ƒ 5 Great Lakes
ƒ 8 States
4
 Study and Review Teams

ƒ Project lead: USACE Chicago District

ƒ Funded at $498K
ƒ DOE-Argonne National Laboratory selected
to conduct study and prepare report
ƒ Technical Review
ƒ USACE Review Team
ƒ Independent Subject Matter Experts

5
 Study Approach

ƒ Review and synthesize existing information

ƒ Identify potential effects from exploration,
construction, and production
ƒ Identify mitigating factors
ƒ Identify uncertainties and data gaps

6
 Uncertainties and Data Gaps

ƒ Status of oil and gas reserves

ƒ Location of natural and cultural resources
ƒ Spills from current wells and pipelines
ƒ Spill response times
ƒ Spill cleanup effectiveness
ƒ Future advances in spill containment and
cleanup
ƒ Advances in drilling capabilities and
technology

7
STUDY AREA

8
 The Great Lakes Basin

ƒ U.S. portion of Basin:

ƒ 8 States
ƒ 5 Great Lakes
ƒ 197,000 sq. mi.

ƒ Diverse physical and

biological environment
ƒ 24% of North America’s
water supply
ƒ 29% of U.S. population,
16% US GDP
9
Ecological Resources

10
 Vegetation

Diverse coastal and inland

plant communities:
ƒ Coastal wetlands
ƒ Unique coastal
communities
ƒ Inland plant communities
ƒ Mixture of forest and
agriculture

11
 Fish and Wildlife

ƒ More than 170 species of

fish live in the Basin (over
150 native species)
ƒ More than 450 species of
birds reported from the
Basin
USFWS

ƒ More than 75 species of

mammals have been
reported in the Basin

12
 Imperiled Communities

ƒ Over 130 species and

natural communities in the
Basin are imperiled for a
variety of reasons.
ƒ Several endangered
species are endemic to the
Basin.

13
 Cultural Resources

ƒ More than 27,000 archeological

sites recorded from coastal
counties:
ƒ Archaeological sites and
historic structures
ƒ National Register of Historic
Places
ƒ Thousands of shipwrecks

ƒ Only a small portion of Basin

evaluated.
14
 Economic Setting

ƒ Basin economy accounted for:

ƒ 16% of the U.S. GDP
ƒ 17% of U.S. water transport
ƒ 23% of U.S. manufacturing
ƒ 9% of U.S. agricultural production
ƒ 15% of U.S. recreational and entertainment products
ƒ Current oil and gas production less than 1% of
total regional economy.

15
 Oil and Gas Systems Of the
Basin

Gas
Cap
Oil
Entrapment Water Seal Rock
Reservoir
Rock

Migration
120° F

350° F
Generation
2480

Majority of oil and gas systems found in reservoirs

beneath an impermeable rock formation. 16
Known and Postulated Oil and
Gas Systems in the Basin

ƒ Known oil and

gas systems in
all States except
Wisconsin and
Minnesota.
ƒ USGS
assessments on
Appalachian
Basin (2003) and
Michigan Basin
(2005).

17
 Current Oil and Gas
Production in the Basin

ƒ Production in all Basin

States except Minnesota
and Wisconsin.
ƒ 13 oil and gas wells
drilled under Great
Lakes in Michigan.
ƒ Approximately 2,200 gas
wells in Canada under
Lake Erie.

18
OIL AND GAS EXPLORATION
AND DRILLING TECHNOLOGY

19
 Oil and Gas Development

ƒ Multi-step process:
ƒ Exploration
ƒ Drilling and construction
ƒ Production and processing
ƒ Abandonment

ƒ All steps require waste

management.

20
 Exploration

ƒ Exploration uses
seismic waves to study
subsurface formations.

Onshore Seismology
ƒ Seismic waves can be
generated onshore and
offshore.

Offshore Seismology 21
 Oil and Gas Drilling
Techniques

ƒ Straight Hole
ƒ Directional
ƒ Horizontal
ƒ Multiple

22
 Post-Production Treatment
and Storage
Gas and oil separators
ƒ Natural impurities
ƒ Saltwater, gases,
and other materials

ƒ Temporary storage

ƒ Processing and
storage
ƒ Onsite or at
centralized facility
Onsite oil storage tanks
23
 Drilling and Production
Wastes

Drilling Wastes:
ƒ Drilling muds
ƒ Drill cuttings
ƒ Produced water

Drilling Waste Disposal:

ƒ Pits and landfills
ƒ Land Application
ƒ Licensed landfills
24
 Pipeline Construction

ƒ Offshore pipelines
assembled on a barge,
lowered into the water and
buried

ƒ Onshore pipelines
assembled in place and
buried

25
OIL AND GAS RELEASE INCIDENTS

26
 Oil and Gas Release Record

ƒ 3 oil spills from offshore wells in Canada

since 1959 (Lake Erie)
ƒ No releases from Michigan wells drilled
under lakes
ƒ 135 oil spills (average) reported annually in
U.S. coastal harbors (1973-2001)
ƒ About 1,000 bbl per spill
ƒ 53 major oil spills reported (>10,000 bbl) in
U.S. waters from 1967-1991

27
 Common Effects of Oil
Releases and Exposure

ƒ Primary exposure from direct

physical contact
ƒ Short-term effects:
ƒ Fouling of habitats and biota
ƒ Mortality of biota
ƒ Soil, sediment, or water
contamination
ƒ Long-term effects:
ƒ Reduced fish and wildlife
populations
ƒ Elevated tissue concentrations
28
 Common Effects of Natural Gas
Releases and Exposure

ƒ Explosion and fire hazard

ƒ Asphyxiation
ƒ Toxic effects
ƒ Soft tissue irritation, headaches, fluid in
lungs, loss of consciousness
ƒ Little affect on water quality

29
 Oil Spill Control and Cleanup

ƒ Mechanical
ƒ Chemical and
Biological
ƒ In-Situ Burning
ƒ Also natural removal
from:
ƒ Weathering
ƒ Evaporation
ƒ Biodegradation

30
 POTENTIAL EFFECTS OF OIL AND GAS
DEVELOPMENT UNDER THE GREAT LAKES

Talisman Energy

31
 NATURE OF POTENTIAL EFFECTS

ƒ Potential for adverse effects with all activities:

ƒ Exploration
ƒ Drilling and Construction
ƒ Normal Operation

ƒ Accidental release of oil

ƒ Greatest potential for most wide-spread effects

32
 Factors Affecting Magnitude
of Potential Effects

ƒ Specific oil and gas development activity

ƒ Existing land and water use
ƒ Quality of resources present
ƒ Facility design, size, location, and density
ƒ Availability of existing infrastructure
ƒ Use of good engineering practices
ƒ Regulations governing protected species and
natural resources
ƒ Spill prevention and response requirements
33
 Potential Effects of
Exploration

ƒ Primary effects from seismic surveys and

drilling of exploratory wells:
ƒ Physical disturbance of habitats
ƒ Disturbance of biota
ƒ Disturbance of recreation and tourism

ƒ Effects temporary and localized

ƒ Immediate vicinity of surveys
ƒ End with survey completion

34
 Potential Effects of Drilling
and Construction
ƒ Primary affects to:
ƒ Habitats
ƒ Biota
ƒ Recreation and tourism
ƒ Cultural resources
ƒ Access to sacred sites
ƒ Local land and water use
ƒ Localized effects
ƒ Short- and long-term
effects

35
 Potential Effects of Normal
Operations

ƒ Primary affects to:

ƒ Land and water use
ƒ Cultural resources
ƒ Access to sacred sites
ƒ Fish or wildlife
ƒ Localized effects
ƒ Long-term effects

36
 Accidental Gas Release

ƒ Primary effects due to:

ƒ Explosion and fire hazard
ƒ Asphyxiation
ƒ Toxic effects
ƒ Primary affects to:
ƒ Recreation and tourism
ƒ Residential communities
ƒ Cultural practices
ƒ Localized effects
ƒ Short-term effects
ƒ Release control
ƒ Dispersion via wind currents
37
 Accidental Oil Release

ƒ Greatest potential for long-term effects:

ƒ Water, sediment and soil
ƒ Terrestrial and aquatic biota
ƒ Cultural resources
ƒ Recreation and tourism
ƒ Land and water use
ƒ Local economies

38
 Accidental Offshore Oil
Release

ƒ Offshore spills could affect:

ƒ Coastal habitats and land use
ƒ Fish and waterfowl
ƒ Recreation and tourism
ƒ Water withdrawals
ƒ Commercial shipping
ƒ Effects from cleanup activities
ƒ Lake currents could spread release
ƒ Short- and/or long-term effects
ƒ Difficult to contain and cleanup

39
 Accidental Onshore Oil
Release

ƒ Accidental releases could affect:

ƒ Terrestrial habitats and biota
ƒ Aquatic habitats and biota
ƒ Groundwater
ƒ Recreation and tourism
ƒ Cultural resources
ƒ Short- and/or long-term effects
ƒ Release likely to be localized
ƒ Potentially easier containment and cleanup

40
SUMMARY AND CONCLUSIONS

41
 Study Summary

ƒ Study authorized by Energy and Water

Appropriations Act (2002)
ƒ Permanent Federal ban (2005) on new permits
and leases for oil and gas drilling in the Great
Lakes
ƒ Great Lakes Basin contains valuable ecological,
cultural, and economic resources
ƒ Potential oil and gas resources exist beneath
Lakes Michigan, Huron, Erie, and Ontario
ƒ Multiple uncertainties on resources and
technologies
42
 Conclusions

ƒ Normal development could:

ƒ Disturb ecological and/or cultural resources
ƒ Cause visual and noise intrusion
ƒ Accidental spills have the greatest potential for
adverse impacts
ƒ Potential effects could be mitigated by:
ƒ Use of multiple wells
ƒ Use of onshore directional drilling
ƒ Good engineering practices
ƒ Following existing regulations
ƒ Future advances in drilling and cleanup
43
 Report Distribution

ƒ Final report available to the public at:

http://www.lrc.usace.army.mil/GrtLakes/OilGas/
index-oilgas.html

ƒ Additional requests for information may be

directed to:
U.S. Army Corps of Engineers
Chicago District
111 N Canal Street, Suite 600
Chicago, IL 60606-7206
(312) 846-5330
http://www.lrc.usace.army.mil 44
QUESTIONS ?

45