December 18, 2020
In the matter of Petition for Modification Marion County Coal Resources
Marion County Mine
I.D. No. 46-01433 Docket No. M-2020-021-C
PROPOSED DECISION AND ORDER
On August 31, 2020, Marion County Coal Resources, filed an Amended Petition for Modification for the Marion County Mine. The Petition requests modification of standard 30 C.F.R. §75.1700 as it pertains to an alternative method of compliance with respect to unconventional oil and gas wells in the Marcellus and Utica shales and all other unconventional shale oil and gas wells.
The Petitioner alleges that the proposed alternative method will at all times guarantee no less than the same measure of protection afforded miners under 30 C.F.R. § 75.1700 as that provided by the standard, which states:
§ 75.1700 Oil and gas wells.
Each operator of a coal mine shall take reasonable measures to locate oil and gas wells penetrating coalbeds or any underground area of a coal mine. When located, such operator shall establish and maintain barriers around such oil and gas wells in accordance with State laws and regulations, except that such barriers shall not be less than 300 feet in diameter, unless the Secretary or his authorized representative permits a lesser barrier consistent with the applicable State laws and regulations where such lesser barrier will be adequate to protect against hazards from such wells to the miners in such mine, or unless the Secretary or his authorized representative requires a greater barrier where the depth of the mine, other geologic conditions, or other factors warrant such a greater barrier.
BACKGROUND
On July 5, 2018, MSHA and Marion County Coal entered into a settlement of the contest of certain conditions regarding petition M-2016-017-C in a Proposed Decision and
Order concerning 30 C.F.R. §75.1700 at docket No. 2017-MSA-06 (the 2018 settlement agreement). The agreement addressed items for which District Manager approval is required, procedures for cleaning out and preparing oil and gas wells prior to plugging or re- plugging, procedures for plugging or re-plugging oil or gas wells to the surface, procedures for plugging or re-plugging oil or gas wells for use as degasification boreholes, alternative procedures for preparing and plugging or re-plugging oil or gas wells, and procedures after approval has been granted to mine through a plugged or re- plugged well.
The agreement applied to “wells that have been depleted of oil or gas production or have not produced oil or gas and may have been plugged, or active conventional vertical wells which are not producing gas or oil.” The agreement specifically excluded “Unconventional wells in the Marcellus, Utica, and all other unconventional shale oil and gas wells.”
With the filing of this petition, Marion County Coal is now seeking a modification that “specifically applies to unconventional wells in the Marcellus, Utica, and all other unconventional shale oil and gas wells.” The terms and conditions included in this proposed modification are virtually identical to the terms and conditions contained in the agreement that addressed the hazards when mining through a conventional well.
Three other petitions were submitted to MSHA at the same time as the Marion County petition. These were for Harrison County Coal, Harrison County Mine, MSHA ID 46- 01318; Ohio County Coal, Ohio County Mine, MSHA ID 46-01436; and Marshall County Coal, Marshall County Mine, MSHA ID 46-01437 (docket numbers M-2020-026-C, M- 2020-027-C, and M-2020-028-C). These three other petitions are in all essential respects identical to the one from Marion County.
On November 19, 2020, MSHA’s Division of Safety requested Technical Support to review the proposed petitions for modification. Technical Support addressed items to consider before mining through high pressure wells.
FINDINGS OF FACT AND CONCLUSIONS OF LAW
The Marion County Mine employs approximately 469 miners and produces approximately 25,000 tons of bituminous coal per day from the Pittsburgh #8 coal seam with an average mine height of 84 inches. At this time, there are no coal seams being mined below (i.e., stratigraphically down section from) the Pittsburgh seam. The mine is accessed through one slope and 8 air shafts.The mine operates three production
shifts per day, five days per week, on three working sections, one longwall, an advancing gate section, and a mains section utilizing continuous mining machines. Quarterly analyses over the last eight quarters show the mine liberates an average of roughly 6,365,000 cubic feet of methane on a daily basis and is therefore on a 5 day spot 103(i) inspection.
As mentioned above, this petition for modification specifically applies to unconventional wells in the Marcellus, Utica, and all other unconventional shale oil and gas wells. Petitioner has identified two Marcellus wells within its mining projections, and expects at some point such wells will necessarily have to be mined through.
Petitioner’s proposed alternative method describes items for which District Manager approval is required, procedures for cleaning out and preparing oil and gas wells prior to plugging or re- plugging, procedures for plugging or re-plugging oil or gas wells to the surface, procedures for plugging or re-plugging oil or gas wells for use as degasification boreholes, alternative procedures for preparing and plugging or re- plugging oil or gas wells, and procedures after approval has been granted to mine through a plugged or re-plugged well. This proposed alternative method is nearly identical to the conditions upon which petition M-2016-017-C was granted per the 2018 settlement agreement.
The exclusion of unconventional shale oil and gas wells from the 2018 settlement agreement was not an oversight. Unconventional wells are characterized by gas pressures and volumes that are significantly higher than those observed at many conventional wells.1 Unconventional wells are typically 7,000 to 10,000 feet deep, and therefore tap gas reservoirs with initial formation pressures of 3,000 psi or more.
Pressures within the deeper Utica formation are even greater than in the Marcellus, up to 10,000 psi. Conventional wells are typically less than 4000 feet deep with pressures up to 1000 psi.
The production from unconventional wells is also much greater, because instead of intersecting the formation with a vertical hole, unconventional wells are drilled to a target formation and then turned horizontally and continued within the formation. The horizontal portion of the well, called the “lateral,” can extend up to 15,000 feet. The longer the lateral the more gas can be produced. After drilling is completed the
- Commonwealth of Pennsylvania, Department of Environmental Protection (2017). Guidelines for Chain Pillar Development and Longwall Mining Adjacent to Unconventional Wells (Interim Final Technical Guidance Document 800–0810–004). Harrisburg, PA: Commonwealth of Pennsylvania, Department of Environmental Protection.
well is stimulated by hydraulically fracturing (fracking) the rock. The fracking process is conducted in stages until the entire length of the lateral is treated. Over the past decade, the average lateral length has more than doubled to exceed 8,000 feet.2
Once an unconventional well is “shut in”, the pressure and potential flow volume quickly build back up. Because a plugged well is permanently shut in, the plug needs to be able to withstand very high pressures, up to the initial formation pressure. Failure of the plug could introduce extremely high quantities of gas directly into the mine atmosphere.
All of these factors make unconventional wells a significantly greater safety risk for underground coal miners. The 2018 settlement agreement, however, was developed primarily with low pressure, low to zero flow, conventional wells in mind. MSHA and the mining industry have decades of experience with conventional wells, and the procedures for cleaning out, plugging, or re-plugging, and mining through such wells are well proven. In contrast, MSHA is aware of only two unconventional wells that have been plugged.3 These wells were located in a chain pillar in a West Virginia mine and mining took place nearby; however, they were not mined through.
Any proposal to permanently plug and mine through an unconventional well must consider both the high risk to the miners and the unusual nature of such an operation. Generic guidelines developed for low pressure, low volume conventional wells are not appropriate. Instead it must be based on the specific characteristics of the particular unconventional well to be plugged, including:
- Well construction, including all casing diameters, their depths, and tops of cement,
- Well pressure and production history,
- Site-specific geology, including the location of all potential gas-producing formations,
- Cement bond logs, well deviation logs, and other relevant logs, and
- Well plat of surface location, mine map with deviated gas well location at coal seam elevation, well record and completion report.
- Wilczewski W (2019). The Trajectory of Shale Gas Development, Natural Gas Liquids, and the Plastics Industry in the Northeastern U.S. U.S. Energy Information Administration, Presentation for Shale Network Workshop, State College, PA.
- Lucy 1 and Lucy 2.
The Coal-Gas Workgroup of the PA DEP Oil and Gas Technical Advisory Board (TAB) has explored the issues associated with plugging unconventional wells. The Workgroup includes technical experts from the coal and gas industries as well as several regulatory agencies. The Workgroup identified a number of aspects that would need to be addressed on a well-specific basis, including:
- Type of fluid used to fill the lateral portion of the well to inactivate the well,
- Type and location of the drillable cast iron bridge plug (CIBP) used to isolate the lateral gas-producing portion of the well,
- Location of any uncemented casing, and whether it will be removed,
- Locations where perforation and squeezing will be conducted, based on an evaluation of cement bond logs,
- Type of cement used above the CIBP, and where its top will be located,
- Methods for cutting and/or perforating the well casings between the base and top of the coal seam,
- Type of cement to be used in the top portion of the well, and
- Procedures required for mine through to be included in the ventilation plan.
All of these elements should be included in a petition that specifically applies to unconventional wells in the Marcellus, Utica, and all other unconventional shale oil and gas wells.
All information presented was reviewed for technical adequacy and completeness with respect to procedures for safely plugging and potentially mining through unconventional oil and gas shale wells at the Marion County Mine. Based on the information provided by Marion County Coal Resources, there is insufficient documentation regarding identified unconventional wells for MSHA to either grant or deny a modification of 30 C.F.R. § 75.1700 to the Marion County Mine.
ORDER
Wherefore, pursuant to the authority delegated by the Secretary of Labor to the Administrator for Mine Safety and Health Enforcement, and pursuant to § 101(c) of the Federal Mine Safety and Health Act of 1977, 30 U.S.C. § 811(c), it is ordered that Marion County Coal Resources’ Petition for Modification of the application of 30 C.F.R. § 75.1700 in the Marion County Mine is hereby:
DISMISSED
Any party to this action desiring a hearing on this matter must file in accordance with 30 C.F.R. § 44.14, within 30 days. The request for hearing must be filed with the Administrator for Mine Safety and Health Enforcement, 201 12th Street South, Suite 401 Arlington, Virginia 22202.
If a hearing is requested, the request shall contain a concise summary of position on the issues of fact or law desired to be raised by the party requesting the hearing, including specific objections to the proposed decision. A party other than Petitioner who has requested a hearing shall also comment upon all issues of fact or law presented in the petition, and any party to this action requesting a hearing may indicate a desired hearing site. If no request for a hearing is filed within 30 days after service thereof, the Decision and Order will become final.
Stephen J. Gigliotti
Chief of Safety for
Mine Safety and Health Enforcement
Certificate of Service
I hereby certify that a copy of this proposed decision was served personally or mailed, postage prepaid, or provided by other electronic means this 2020, to:18th day ofDecember
R. Henry Moore hmoore@fisherphillips.com Fisher & Phillips LLP
6 PPG Place, Suite 830
Pittsburgh, PA 15222
Rick Rinehart
UMWA Representative 67 Cellular Drive
Mannington, WV 26582
Don Vickers
Mine Safety and Health Specialist
cc: West Virginia Office of Miners' Health Safety and Training Director, Eugene White Eugene.E.White@wv.gov