Liquids Gathering Pipelines: a Comprehensive Analysis
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Prepared for: North Dakota Industrial Commission and Energy Development Liquids and Transmission Committee Gathering Pipelines: A Comprehensive Analysis Prepared by: Energy & Environmental Research Center University of North Dakota 15 North 23rd Street, Stop 9018 Grand Forks, ND 58202-9018 December 2015 EERC DISCLAIMER LEGAL NOTICE This research report was prepared by the Energy & Environmental Research Center (EERC), an agency of the University of North Dakota, as an account of work sponsored by the North Dakota Industrial Commission. Because of the research nature of the work performed, neither the EERC nor any of its employees makes any warranty, express or implied, or assumes any legal liability or responsibility for the accuracy, completeness, or usefulness of any information, apparatus, product, or process disclosed or represents that its use would not infringe privately owned rights. Reference herein to any specific commercial product, process, or service by trade name, trademark, manufacturer, or otherwise does not necessarily constitute or imply its endorsement or recommendation by the EERC. NDIC DISCLAIMER This report was prepared by the EERC pursuant to an agreement partially funded by the Industrial Commission of North Dakota, and neither the EERC nor any of its subcontractors nor the North Dakota Industrial Commission nor any person acting on behalf of either: (A) Makes any warranty or representation, express or implied, with respect to the accuracy, completeness, or usefulness of the information contained in this report or that the use of any information, apparatus, method, or process disclosed in this report may not infringe privately owned rights; or (B) Assumes any liabilities with respect to the use of, or for damages resulting from the use of, any information, apparatus, method, or process disclosed in this report. Reference herein to any specific commercial product, process, or service by trade name, trademark, manufacturer, or otherwise does not necessarily constitute or imply its endorsement, recommendation, or favoring by the North Dakota Industrial Commission. The views and opinions of authors expressed herein do not necessarily state or reflect those of the North Dakota Industrial Commission. TABLE OF CONTENTS LIST OF FIGURES .................................................................................................................................... v LIST OF TABLES .................................................................................................................................... vii NOMENCLATURE .................................................................................................................................. ix A GUIDE TO REPORT STRUCTURE ....................................................................................................... xii EXECUTIVE SUMMARY ....................................................................................................................... xiii SUMMARY OF KEY OBSERVATIONS, FINDINGS, AND RECOMMENDATIONS ................................. xvii INTRODUCTION ..................................................................................................................................... 1 Legislative Mandate to Assess Oil and Produced Water Gathering Pipelines ......................... 1 Definitions of Key Terms ............................................................................................................. 2 Background .................................................................................................................................. 3 Purpose of This Study ................................................................................................................. 5 Goals and Objectives of the Study ................................................................................... 5 Factors Evaluated for the Study ....................................................................................... 6 Previous Pipeline Technology Working Group Efforts .............................................................. 6 Historical Background ................................................................................................................. 7 A Primer on Production and Conditioning in North Dakota ..................................................... 8 The Trend of Multiwell Pads ........................................................................................... 12 REVIEW OF NORTH DAKOTA CRUDE OIL AND PRODUCED WATER GATHERING PIPELINE INFRASTRUCTURE ............................................................................................................................... 14 Williston Basin Gathering Pipeline Infrastructure ................................................................... 14 Business Aspects of Williston Basin Gathering Pipelines ........................................................ 16 A REVIEW OF PRODUCED FLUID LEAKS AND SPILLS .......................................................................... 19 Spill and Leak History in North Dakota..................................................................................... 19 Challenges in Data Analysis ............................................................................................ 20 North Dakota Data Analysis Results ............................................................................... 21 North Dakota Pipeline-Specific Statistics ....................................................................... 28 Root-Cause Analysis of Pipeline Spills ............................................................................ 31 Comparing North Dakota with Other States ........................................................................... 32 Annual Oil Production by State ...................................................................................... 33 Spill Reporting Requirements by State .......................................................................... 34 Spill Statistics by State .................................................................................................... 36 Comparisons … Putting North Dakota’s Pipeline Leak Record in Context ................... 42 Continued… i TABLE OF CONTENTS (continued) REGULATORY ENVIRONMENT FOR GATHERING OF PRODUCED FLUIDS ......................................... 47 Today’s Regulatory Framework ................................................................................................ 47 Comparison of North Dakota Regulations to Those of Other Large Oil-Producing States and PHMSA ........................................................................................................... 47 MATERIAL SELECTION FOR CRUDE OIL AND PRODUCED WATER GATHERING PIPELINES .............. 59 Plastic Pipeline Materials .......................................................................................................... 59 Material Options ............................................................................................................. 61 Joining Methods .............................................................................................................. 67 Thermoplastic Temperature Derates ............................................................................. 69 Reinforced Pipeline Materials .................................................................................................. 69 Fiberglass ......................................................................................................................... 69 Spoolable Reinforced Plastic Pipe .................................................................................. 70 Overview of Specific Products Commonly Employed in North Dakota .................................. 72 FlexSteel ........................................................................................................................... 72 Fiberspar .......................................................................................................................... 74 Flexpipe ............................................................................................................................ 75 Polyflow ........................................................................................................................... 76 Summary of Plastic and Composite Pipeline Materials Available for Use in North Dakota ............................................................................................................................. 78 Plastic Pipeline Pigging Considerations .................................................................................... 79 Steel Pipelines ........................................................................................................................... 79 Design Considerations for Steel Pipelines ..................................................................... 79 Corrosion ......................................................................................................................... 80 CONSTRUCTION OF CRUDE OIL AND PRODUCED WATER GATHERING PIPELINE ........................... 87 General Construction Process for Gathering Pipelines Carrying Crude Oil or Produced Water ........................................................................................................................ 87 Additional Remarks ................................................................................................................... 93 CRUDE OIL AND PRODUCED WATER GATHERING PIPELINE