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

 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 know 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).”
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.

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
 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

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
 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

STUDY AREA
 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

Ecological Resources
 Vegetation

Diverse coastal and inland

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

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
 Imperiled Communities

ƒ Over 130 species and

natural communities in the
Basin are imperiled.
ƒ Several endangered
species are endemic to the
Basin.

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.
 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.

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.
 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).

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.
 OIL AND GAS EXPLORATION
AND DRILLING TECHNOLOGY

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.
 Exploration

ƒ Exploration uses
seismic waves to study
subsurface formations.

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

Offshore Seismology

Oil and Gas Drilling

Techniques

ƒ Straight Hole
ƒ Directional
ƒ Horizontal
ƒ Multiple
 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

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
 Pipeline Construction

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

ƒ Onshore pipelines
assembled in place and
buried

OIL AND GAS RELEASE INCIDENTS

 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 41,121 gal per spill
ƒ 53 major oil spills reported (>420,000 gal) in
U.S. waters from 1967-1991

Effects of Accidental Releases

ƒ Short-term effects:
ƒ Fouling of beaches, wetlands,
water, and biota
ƒ Mortality of exposed biota
ƒ Elevated contaminant
concentrations

ƒ Long-term effects:
ƒ Reduced fish and wildlife
populations
ƒ Elevated contaminant
concentrations in animal
tissues
 Exposure to Oil Compounds

ƒ Primary exposure from direct physical contact

ƒ Inhalation, ingestion, absorption
ƒ Secondary exposure from contaminated
foods
ƒ Short- and long-term toxic effects:
ƒ Central nervous system
ƒ Organ function
ƒ Reproduction and development

Exposure to Natural Gas

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
 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

POTENTIAL EFFECTS OF OIL AND GAS

DEVELOPMENT UNDER THE GREAT LAKES

Talisman Energy
 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

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
 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

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
 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

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
 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

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
 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

SUMMARY AND CONCLUSIONS

 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

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
 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

QUESTIONS ?