Should there be a limit on long they can flare a well?

http://www.register-herald.com/todaysfrontpage/x623730749/Illegal-f...

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Permalink Reply by Bill anders on December 16, 2011 at 7:16am

looks like there is already.

Permalink Reply by Philip Brutz on December 16, 2011 at 7:23am

I wonder if it should spelled out in the lease.  I bet those landowners aren't getting a penny in royalties from that flare.  Not to mention the CO2 release.

2s72s0k9mm8gdPermalink Reply by 2s72s0k9mm8gd on December 16, 2011 at 7:30am

I am confused as to how shutting the wells in would cause financial harm to the O&G.........?

Is it somewhow profitable to send the product up in smoke?

Wouldn't it p___ you off if you were the landowner helplessly watching all those royalties disappering into thin air.

Someone please enlighten us to the logic for doing this!

Permalink Reply by Philip Brutz on December 16, 2011 at 7:36am

Here is part of Bluescape's response to the Division of Air Quality (DAQ)

The MWV Rupert Well Flare Site (the "Site") consists of a series of three natural gas wells that flow to a single flare stack. The Site is located in a remote part of Nicholas County, and to date no natural gas pipelines have been installed on or in the vicinity of the Site. BRC installed the three wells on the Site to determine whether the acreage that it has leased from MeadWestvaco Corp. are economically viable. If the wells, and
others planned in the surrounding area of Nicholas County, are proven to have sufficient productivity to be economically viable, then BRC will work to install a natural gas pipeline to allow the production from these reserves to reach a commercial market. The Site is the first location in Nicholas County to test the viability of the natural gas reserves in the area. Because no pipeline exists in the area, BRC must flare the natural gas that is produced by the three wells at the Site

BRC cannot shut in the wells or the flare without suffering irreparable financial damage and harm. The horizontal wells require extensive time and resources to install. The wells are generating data on natural gas reserves in a portion of the State that has previously not been tested. The information being gathered is crucial not only to BRC, but to the mineral owners and other lessees in the area.

Permalink Reply by Jack Straw on December 16, 2011 at 8:01am

It seems conceivable that they might sequentially flare three wells, each for as long as 30 days, in order to "clean up" the well (post frac) and to obtain a production test.

It does not seem logical that they would co-mingle and simultaneously flare three wells for such an extended period of time.

As Mike Knapp pointed out, it does not seem logical that they would squander so much money.

All in my humble opinion.

One size fits most.

 

JS

 

 

Permalink Reply by Philip Brutz on December 16, 2011 at 8:38am

If they are flaring it to determine flow rate and they are not paying royalties.  Then should this practice be limited in the lease?

Permalink Reply by Jack Straw on December 16, 2011 at 2:58pm

RE: "If they are flaring it to determine flow rate and they are not paying royalties.  Then should this practice be limited in the lease?":

Wow,  it is impossible to anticipate all that might occur and accomodate that occurrance in a lease.

A royalty owner should certainly be upset were an opertor to do a (highly) extended well production test by way of flairing a well for an overly long period of time.

When a lease is negotiated, a clause could be inserted to the effect that "Should a well be flared/production tested beyond a total of thirty days, the production should be metered and royalties paid.".

 

All in my humble opinion.

One size fits most.

 

JS

Permalink Reply by paleface on December 16, 2011 at 3:11pm

 They could be burning off the gas to get to the oil?

Permalink Reply by Jack Straw on December 16, 2011 at 3:58pm

RE: "They could be burning off the gas to get to the oil?"

If oil were present, it would have been detected on the Gas Chromatograph in the Mud Loggers unit while drilling the Marcellus.

If oil were present, you would not need to flare for 108 days to detect its presence.

Still a mystery to me why they would feel it necessary to flare for so long; unless it was three wells, each sequentially flared for thirty-six days.

 

All in my humble opinion.

One size fits most.

 

JS

Permalink Reply by Mike Knapp on December 16, 2011 at 7:36am

Flaring is only employed right after the well is fraced.  There is so much water that is coming up when you first open the well up after fracing, you're getting mostly water and a little bit of gas.  We cannot yet capture this little bit of gas from the huge amount of water flowing back, so we vent it off... and we ignite that venting gas (better for environment, safety reasons).  Once the water levels drop down and the gas can be safely separated from the water, the flare goes away and the gas is sent into a production line. 

Trust me, gas companies do not wish to be venting/flaring any more than they have too. 

Permalink Reply by Philip Brutz on December 16, 2011 at 7:41am

A temporary gas flare is only allowed to flare for 30 days in one year. As of yesterday, the company, BRC Operating Company, LLC, a "daughter" company of Bluescape Resources Company, LLC, had been flaring continuously for 86 days. That means that a theoretical fine of $560,000 could be levied by the state of West Virginia...

Permalink Reply by Area Man on December 16, 2011 at 8:33am

While it's true no one wants to literally burn money, it's not necessarily the case that you only flare a little bit of gas.  If no pipeline is accessible, then indeed you will flare for as long as possible to get the most accurate flow model for the well before you have to shut it down.  This is very common when testing up new areas or plays, unfortunately.  You just can't commit the money to build a pipeline or gathering system until you have the production proof what you are drilling will make enough money/gas to justify.

 

Cheers!

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