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GAS FLARING - Montana Flipbook PDF

4. Estimated gas price at market: N/A 5. Estimated cost of marketing the gas: N/A. 6. Flaring alternatives: None. 7. Jus


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GAS FLARING April 29, 2015

Company Continental Denbury EOG Resources Kraken Oasis Petroleum Petro-Hunt Statoil Whiting Totals

Wells Flaring over 100

6 3 2

1 4 4 1 17 38

Wells Flaring

Current

over100w/o Exception

Exceptions (over 100}

Wells over

2 2

4 1

0

Exception Requests

100 Hooked to Pipeline 2

4

2 0

0

2

1 1

0 3

1 1

0 0

0 0

4 1 17

0 0

0 0

0 6

4 9

0 6

32

1

Flaring Request Summary There are 38 wells flaring over 100 MCF/D based on current production numbers. This is down from 46 wells at the last business meeting. It is expected that this number will continue to drop based on the reduced number of completions expected this year. 32 of the 38 wells have approved exceptions due to distance, pipeline access issues, or time to \:'" ' ·

'

connection. There are 6 exceptions requested at this time. Of the 6, 2 are due to pipeline/gas plant capacity issues, 3 are due to gas composition, and 1 has been deemed uneconomic to connect due to distance from gathering system.

Continental

Manush 1-12H -API # 25-085-21927, 29N-58E-12 -Approved for 6 months 1. 2. 3. 4. 5. 6. 7. i. ~ .~ ' '

Flaring 175 MCF/D. Second exception request. First expired 4/15/15. Completed: 6/2014. Connected to pipeline: Yes. Estimated gas reserves: 66 MMcf. Flaring alternatives: None. Amount of gas used in lease operations: 20.5 Mcf/d Justification to flare: Connected to pipeline, however, Gas plant and capacity issues preventing sales. Hoping new plant will come on in 2015/2016 and alleviate issues.

Revere 1-31H -API # 25-083-22953, 27N-53E-31-Approved for 6 months -,

1. 2. 3. 4. 5. 6. 7.

Flaring 121 MCF/D. Second exception request. First expired 2/13/15. Completed: 3/2013. Connected to pipeline: Yes, 3/2013. Estimated gas reserves: 293 MMcf Flaring alternatives: None. Amount of gas used in lease operations: 8 Mcf/d Justification to flare: Very sour gas that cannot pass through current Highland pipeline. H2S scrubbing would cost more than gas is worth. Looking into ONEOK pipeline that may be able to take the sour gas.

Denbury

Unit 11-128 -API # 25-025-21284, 8N-59E-12 - Permanent exception 1. Flaring 345 MCF/D. First exception request. 2. Completed: 8/1984. 3. Proximity to market: N/A.

~· ··'

4. Estimated gas price at market: N/A 5. Estimated cost of marketing the gas: N/A. 6. Flaring alternatives: None. 7. Justification to flare: Well is in Pennel EOR Unit. The gas being produced is mostly made up of nitrogen and carbon dioxide and this therefore unmarketable.

Pennel Unit 24-118 -API # 25-025-05726, 8N-59E-11- Permanent exception 1. 2. 3. 4. 5. 6. 7.

Flaring 140 MCF/D. First exception request. Completed: 4/1962. Proximity to market: N/A. Estimated gas price at market: N/A Estimated cost of marketing the gas: N/A. Flaring alternatives: None. Justification to flare: Well is in Pennel EOR Unit. The gas being produced is mostly made up of nitrogen and carbon dioxide and this therefore unmarketable.

Kraken

Lysemose 33-34 #18 - API # 25-083-23303, 26N-59E-32 - Approved for 6 months ..

1. 2. 3. 4. 5. 6.

Flaring 286 MCF/D. First exception request. Completed: 1/2015. Estimated gas reserves: 250-350 MMCF. Proximity to market: