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Ohio Natural Gas Flaring and Venting Regulations

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Ohio Natural Gas Flaring and Venting Regulations Fossil Ohio Natural Gas Flaring Energy OFFICE OF OIL & NATURAL GAS and Venting Regulations The U.S. Department of Energy’s Office of Fossil Energy (FE) supports research and development of technologies that can reduce the volume of natural gas (e.g., methane) flared or vented (released) into the atmosphere during crude oil and natural gas exploration, production, processing, transportation, and storage operations. This fact sheet was created by FE to inform stakeholders on state-level production and regulatory activity regarding natural gas flaring and venting. FE’s research portfolio includes efforts to reduce methane (and other hydrocarbon) flaring through the application of improved technologies to capture and utilize small volumes of natural gas at remote locations, as well as technologies to reduce (primarily) methane release during midstream gas processing and transportation. Intermittent flaring that occurs as a result of routine well testing, production facility process shutdowns, or facility and pipeline infrastructure maintenance, are normal aspects of safe oil and natural gas production. Increases in domestic oil and natural gas production have resulted in significant infrastructure buildouts, however, natural gas pipeline capacity constraints have led to regional increases in the flaring of associated gas in some unconventional plays (e.g., Permian Basin in Texas and New Mexico and Bakken Shale in North Dakota) in order to enable oil production. Ohio Producing Plays and primarily produces gas in northeast and Basins Pennsylvania but becomes more liquid rich in less thermally mature areas of According to the U.S. Energy Information southwestern Pennsylvania, West Virginia, Administration (EIA), Ohio’s proved and southeastern Ohio. According to the reserves are 189 million barrels of oil and U.S. Geological Survey (USGS), the 27 trillion cubic feet (Tcf) of natural gas Marcellus Shale play contains about 84 (2017). The “most likely” recoverable shale Tcf of natural gas and 3.4 billion barrels gas resource for the entire Appalachian of liquids (both undiscovered, technically Basin is understood to be 858.7 Tcf, recoverable). However, the Institute with 27.6 Tcf in non-shale gas resources. for Energy Research estimated that the These resources are contained within the play could hold as much as 500 Tcf of Marcellus Shale, the Utica Shale, and the Figure 1: Appalachian Basin and Pennsylvania major unconventional gas recoverable natural gas. Devonian (Ohio) Shale. plays outlined. Source: EIA The Utica Shale is a stacked play The Marcellus Shale play extends underlying the Marcellus Shale that from New York State in the north to The Marcellus currently produces in four includes both the Utica formation and southwestern West Virginia, and it is states: Pennsylvania, West Virginia, Ohio, the underlying Point Pleasant formation. the most productive natural gas play and New York. The Marcellus formation The most productive areas of the Point in the Appalachian Basin (Figure 1). ranges in depth from 100–9,900 feet Pleasant formation are located in eastern Ohio Oil and Natural Gas Statistics (EIA) 2013 2014 2015 2016 2017 2018 Crude Oil Production (Average Thousand Barrels/Day) 22 41 73 59 52 70 * Natural Gas Gross Withdrawals and Production 454 1,400 2,756 3,926 4,853 8,269 * (Average MMcf/Day) Natural Gas Gross Withdrawals and Production Ohio does not maintain a database of total annual gas vented or flared. (Vented and Flared) (MMcf/Day) Natural Gas Gross Withdrawals and Production 28.3 35.7 108.1 11.5 11.4 N/A (Oil Wells) (MMcf/Day) Natural Gas and Gas Producing Oil Wells (Thousands) 37.8 38.3 37.6 38.6 34.5 N/A MMcf – million cubic feet * Data from Ohio Department of Natural Resources, Division of Oil and Gas Resources 2017 ranking among 32 U.S. oil and natural gas producing states — Oil: 13 Natural Gas: 8 OFFICE OF FOSSIL ENERGY OFFICE OF FOSSIL ENERGY Ohio and western Pennsylvania. The of the public or when the gas is lawfully burn between 10 and 32 MMBtu/hour. Utica Shale extends over 115,000 square produced and there is no economic market According to the Ohio EPA, once facilities miles and the Point Pleasant slightly less, at the well for escaping gas.” are permitted on a volume range, the actual of which about 75 percent is prospective. Additional relevant rules are included volumes are not collected and aggregated. The Utica play could hold technically as part of the Ohio Administrative Code recoverable volumes of 782 Tcf of natural within Chapter 1501:9-9, Division of Ohio State Points gas and nearly 2 billion barrels of oil. EIA Mineral Resources Management – Oil of Contact estimates proved reserves of 6.4 Tcf for and Gas; Safety Regulations. Chapter Ohio Department of Natural the Utica play (2017). 1501:9-9-05, Producing Operations, Resources: Division of Oil and The Devonian (Ohio) Shale is a shallower Section B mandates that “All gas vented Gas Resources formation that extends across the to the atmosphere must be flared, with the Contact the Division of Oil and Gas Appalachian Basin, including parts of exception of gas released by a properly Resources for information on oil and eastern Ohio, West Virginia, Kentucky, functioning relief device and gas released gas drilling operations, production, and and Pennsylvania. This low-pressure shale by controlled venting for testing, blowing restoration. formation has produced gas since the late down and cleaning out wells.” This section 1800s, and large numbers of stripper gas also outlines that flares must be 100 feet Website: http://oilandgas.ohiodnr.gov/ wells continue to produce at low rates. from the well, all surface equipment, and Email: [email protected] Western Pennsylvania, western Ohio, inhabited structures. Additionally, Chapter Phone: 614-265-6630 and northern West Virginia also produce 15.1:9-9-03, Drilling and Deepening limited amounts of crude oil from shallow Operations, Section K requires that local Ohio Environmental Protection formations. emergency response officials be notified Agency: Division of Air Pollution when flaring is expected to occur in urban Control Ohio Key Regulations areas. Contact the Division of Air Pollution Associated with Flaring In addition, the Ohio Environmental Control for information on permits for gas and Venting Protection Agency (EPA) is tasked with flaring. administering air quality permitting The Division of Oil and Gas Resources at Website: https://epa.ohio.gov/dapc/ programs in Ohio. All oil and gas the Ohio Department of Natural Resources production facilities are required to Email: brandon.schwendeman@epa. is charged with enforcing the rules related obtain an air permit before beginning ohio.gov to natural gas flaring and venting in the construction. After application, the Phone: 614-644-4840 state. The original regulation, recorded as approval process can take between 45–180 Ohio Revised Code Title 15, Conservation days. Facilities need to consider the flare of Natural Resources, Chapter 1509.20, Visit energy.gov/fe/state-natural-gas- size in order to apply for the appropriate Prevention of Waste – Gas Flaring, was flaring-and-venting-regulations for a permit. Flares expected to burn less than published in 1965 and amended in 2010. digital version of this fact sheet that 10 million British thermal units (MMBtu)/ This rule requires that well owners and includes hyperlinks to information hour should use the General Permit operators prevent wasting oil and gas sources. (GP) 12.1 air permit, while the GP 12.2 and allows for flaring gas “when it is should be used if the flare is expected to necessary to protect the health and safety For more information, visit: Information current as of May 2019. Fossil fossil.energy.gov Energy OFFICE OF OIL & NATURAL GAS.
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