Pag

e1

ANALYSIS OF MICHIGAN DEPARTMENT OF

ENVIRONMENTAL QUALITY HIGH VOLUME HYDRAULICALLY FRACTURED WELL

COMPLETIONS AND APPLICATIONS

FARWatershed.com respectmyplanet.org

Updated November 30, 2014

Clockwise from top left: Pioneer 1-3HD1, Excelsior 1-25HD1, Beaver Creek 1-23HD1, Garfield 1-25HD1.

Pag

e2

Table of Contents

GENERAL HF INFORMATION ................................................................................................................ 3

Drilling and Completion ............................................................................................................................. 3

Drilling ................................................................................................................................................... 3

Completion ............................................................................................................................................ 4

Formation Characteristics........................................................................................................................... 4

Conventional & Unconventional ............................................................................................................ 4

Permeability & Porosity .......................................................................................................................... 5

Interstitial Gas & Adsorbed Gas ............................................................................................................ 5

Natural Fractures ................................................................................................................................... 5

Formation Pressures .............................................................................................................................. 5

Induced Pressure ........................................................................................................................................ 5

Water ......................................................................................................................................................... 6

High Volume & Large Volume .............................................................................................................. 6

Consumptive Use of Water .................................................................................................................... 6

Chemicals ................................................................................................................................................... 7

Proppants................................................................................................................................................... 7

WELLS ON THE HVHF CHART ............................................................................................................... 8

Large Volume Wells ................................................................................................................................... 9

Utica/Collingwood ................................................................................................................................ 9

A-1 Carbonate ...................................................................................................................................... 10

High Volume Wells ................................................................................................................................. 10

Antrim ................................................................................................................................................. 11

Dundee ................................................................................................................................................ 12

Niagaran .............................................................................................................................................. 12

Black River (VanWert) ......................................................................................................................... 13

SUMMARY ................................................................................................................................................. 13

Pag

e3

ANALYSIS OF MDEQ HIGH VOLUME HYDRAULICALLY FRACTURED WELL COMPLETIONS AND APPLICATIONS

This paper updates our previous report dated March 26, 2014, and addresses the most recent list of high volume hydraulically fractured wells published by the Michigan Department of Environmental Quality, Office of Oil, Gas and Minerals, (MDEQ-OOGM) on its website dated October 3, 2014 1, attached as Appendix A. When you look at the list of 59 HVHF wells on the MDEQ list, you may assume that all of them involve the use of millions of gallons of water and toxic chemicals at extremely high pressure to complete. This is not the case, and the differences are significant enough to warrant better understanding. An overall comparison of the factors discussed in this paper as they pertain to the wells on the MDEQ chart is contained in Appendix D, and you can skip right to it if you want to know the “what” of the differences between the wells—but if you want to know the “why” for the differences, we have attempted to give some basic descriptions of the contributing factors. The source papers linked to the paper afford in depth education on many of these for anyone seeking deeper understanding.

GENERAL HF INFORMATION

Drilling and Completion

To start with the basics, hydraulic fracturing (HF) is not a drilling technique. It is a completion technique. It is defined by the MDEQ as a well completion operation that involves pumping fluid and proppant into a target formation to create or propagate artificial fractures, or enhance natural fractures, for the purpose of improving the deliverability and production of hydrocarbons.2

Each well has two phases: the drilling of the well (which does not involve fracturing but does involve the use of water and/or other fluids), and the completion of the well (which may involve fracturing, and the use of water and/or other fluids, and may include additional chemicals).

Drilling

Drilling fluid or “mud” is a very important component of the drilling process. The main functions of drilling fluids include providing hydrostatic pressure to prevent formation fluids from entering into the well bore, keeping the drill bit cool and clean during drilling, carrying out drill cuttings, and suspending the drill cuttings while drilling is paused and when the drilling assembly is brought in and out of the hole. The drilling fluid used for a particular job is selected to avoid formation damage and to limit corrosion.3 The wells on the MDEQ chart will not all be drilled using the same kind of drilling fluid. The components of the fluid can sometimes be found in the well summary contained in the MDEQ well file (Page 60 of the Koehler-Kendall well file is a good example4), or may be available through a Freedom of Information Act request to the MDEQ.

1 http://www.michigan.gov/documents/deq/hvhfwc_activity_map_new_symbols-jjv_462730_7.pdf 2 http://www.michigan.gov/documents/deq/Supervisor_of_Wells_Insruction_1-2011_428260_7.pdf 3 http://en.wikipedia.org/wiki/Drilling_fluid#Dispersed_systems ; http://www.aesfluids.com/ ;

https://www.rigzone.com/training/insight.asp?insight_id=291&c_id=24 4 http://ww2.deq.state.mi.us/GeoWebface/GeoWebface/WF/031/60170_WF.pdf

Pag

e4

Completion

The completion phase of an HF well is the stage when the hydraulic fracturing occurs. Completion sometimes involves perforating the horizontal section of the pipe and the cement casing installed in a well with explosive charges contained in a perforating gun, then injecting fluid and proppant under pressure into the formation through the openings (perforations), to create fractures in the rock or enhance naturally occurring fractures already present. The amount of pressure necessary to create or enhance fractures and the type of fluid used varies greatly, depending on the characteristics of the formation being accessed. Some HF wells have horizontal sections which are “open hole” and do not involve creating perforations. The key differences between the completion techniques used on the listed wells discussed here are

Induced pressure

Composition and amount of chemicals

Amount of proppant

Volume of water

All of these factors vary, depending on the formation characteristics.

Formation Characteristics

Geologic formation characteristics and the way gas and oil are deposited within them dictate completion techniques.5 For this reason, we group the wells and applications according to the targeted geological formation. To get a sense of how deep the target formation is, see the Stratigraphic Map attached as Appendix B. The way hydrocarbons have been deposited in the formation, the physical structure of the formation rock, and the depth of the formation all affect the method of completion indicated to extract the hydrocarbon. Due to the way geological formations were formed in the Michigan basin, the depth of each formation depicted on Appendix B will vary from place to place in Michigan, and in some locations, may not exist at all.

Conventional & Unconventional

The term “conventional” or “unconventional” describes the way gas or oil is situated in the

formation. It does not describe the method of removing it. Conventional natural gas is generally

held as a pocket of gas beneath a rock layer with low permeability and flows freely to the surface

once the well is drilled. By contrast, unconventional natural gas is more difficult to extract because it

is trapped in rock with very low permeability. Unconventional natural gas does not flow freely to the

surface once the well is drilled. Three common types of unconventional gas include: (1) coalbed

methane, which is sourced from within a coal seam or in the surrounding rock; (2) tight natural gas,

which is found in low- porosity sandstones and carbonate reservoirs; and (3) shale gas, which is

trapped in the pore space of shale rocks.6 Of the formations for the wells on the MDEQ chart, the

Utica, Collingwood, Antrim, and A-1 Carbonate formations are termed unconventional: the Black

River (Van Wert), Niagaran and Dundee are termed conventional. 7, 8,9

5 http://web2.geo.msu.edu/geogmich/Oil&gas.html

6 http://www.pacinst.org/wp-content/uploads/sites/21/2013/02/full_report35.pdf

7 http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9MTMzMjM5fENoaWxkSUQ9LTF8VHlwZT0z&t=1

Pag

e5

Permeability & Porosity

Permeability is a measurement of the ease of flow of fluids through the rock. Fluid flow is much

easier in rock with higher permeability. The values of high, moderate, and low permeability assigned

to a rock formation are defined on the basis of both the formation permeability and the reservoir

fluid viscosity.10 When you see the terms “low permeability” it generally means it will be more

difficult to remove the hydrocarbon from the rock than in formations defined as “high

permeability”. Porosity of a rock is a measurement of its ability to hold a fluid. Mathematically,

porosity is the open space in a rock divided by the total rock volume (solid + space or holes).

Porosity is normally expressed as a percentage of the total rock which is taken up by pore space. For

example, a sandstone may have 8% porosity. This means 92 percent is solid rock and 8 percent is

open space containing oil, gas, or water.11

Interstitial Gas & Adsorbed Gas

Interstitial gas refers to gas stored in the pore spaces of the rock: sometimes referred to as “free gas”. Adsorbed gas has adhered to organic particles present in the rock. Completion techniques will vary depending on whether gas is interstitial or adsorbed.

Natural Fractures

Fractures may be referred to as “natural fractures” to distinguish them from induced fractures-as the name implies, natural fractures are already present in the rock. In some reservoirs, natural fractures improve production. In other cases, natural fractures can complicate reservoir stimulation. The Antrim is naturally fractured and its fractures can be enhanced with relatively low pressure. While some natural fractures exist in the Utica, no natural fractures are observed in the core samples from the Collingwood.12,13

Formation Pressures

Generally speaking the deeper the formation, the greater the pressure encountered. The term “bottom hole pressure” means either the pressure present at the bottom of the well, or at the top of the perforated interval. As fluid is released from the formation, pressure will change. Formation pressure affects both drilling and completion.

All of the characteristics discussed above will affect the level of pressure, amount and type of fluid, and the amount of proppant used to hydraulically fracture a formation and complete a well.

Induced Pressure

8 http://certmapper.cr.usgs.gov/data/noga95/prov63/text/prov63.pdf ;

http://bradfordgordon.com/pdf/USGSMichiganCore8_22.pdf 9 https://www.ugcenter.com/US-Shales/Unconventional-Action-Pops-Southeastern-Michigan_86565: request article from

FARWatershed@gmail.com 10 http://petrowiki.org/Fracturing_high-permeability_formations 11 http://www.geomore.com/porosity-and-permeability-2/ 12 http://msue.anr.msu.edu/uploads/235/29659/OilGasnews_June_2013.pdf, Encana Oil and Gas Outlines Utica Collingwood Play 13 http://digitalcommons.mtu.edu/cgi/viewcontent.cgi?article=1311&context=etds

Pag

e6

The pressure at which fluid is pumped into the well during completion varies, depending on all of the formation characteristics discussed above. For the wells in the formations we concern ourselves with here, the greatest pressure is utilized for wells into Utica Collingwood. Sustained pressure of 9200 psi, and peaks at over 10,000 psi, were used to complete Encana's State Beaver Creek 1-23 HD1 well in May of 2013.14 Nine days were needed to fracture 33 stages.15 In comparison, the Antrim Shale has very different formation characteristics than the Collingwood. As a result, the pressure used during completion is much lower. Completion pressures between 800 and 1800 psi, depending on depth and location, are used in typical Antrim wells. Antrim wells can be completed in one day and typically require 2-5 stages.16 There is only one Antrim well on the MDEQ’s HVHF chart because typical Antrim wells are not high volume.

Why such a pressure disparity between the Antrim and the Collingwood? The Collingwood has low permeability and has little or no natural fracturing. The Antrim on the other hand, is considered a natural, un-conventional shale due to an extensive natural fracture network. Simply put, less pressure is needed to expand the Antrim's natural fractures than is needed to create new cracks in the Collingwood. Formation depth also plays a role in pressure. Total measured depth (TMD17) of wells that exceed 20,000 feet, will require much more pressure during hydraulic fracturing than a 1500 ft. vertical well simply because more friction must be overcome.

Water

High Volume & Large Volume

MDEQ-OOGM states that hydraulic fracturing has been occurring in Michigan for about 50 years18. It does not say that high volume or large volume hydraulic fracturing has been occurring in Michigan for 50 years, and this is an important distinction.

“High Volume” is defined by MDEQ as a well that is completed using over 100,000 of any liquid: water, brine, foam, acid, or gels.

“Large Volume”, on the other hand, means using more than 100,000 gallons of water per day over a consecutive 30 day period (100,000 gallons of water over 30 days=3,000,000 gallons) to complete a well. Only operators intending to use a large volume water withdrawal for well completion are required to utilize the Water Withdrawal Assessment Tool (WWAT) in accordance with Supervisor of Wells Instruction 1-201119.

Also note that there is no reporting requirement for the amount of fresh water withdrawn for drilling the well: only completing the well. Wells going into deep formations, or with long lateral wellbores, may use from 300,000 to more than 1,000,000 gallons20 of fresh water to drill the well which should be included in water withdrawal analysis.

14 http://www.respectmyplanet.org/public_html/documents/BeaverCreek.Completion_Program_.pdf 15 http://www.respectmyplanet.org/public_html/documents/CompletionReport.BeaverCreek_.pdf 16 http://www.geo.mtu.edu/svl/LINGO/reports/42931_LINGO_Antrim_Play_Handbook.pdf 17 Total Measured Depth=Vertical + Horizontal length of wellbore 18 http://www.michigan.gov/documents/deq/deq-FINAL-frack-QA_384089_7.pdf 19 http://www.michigan.gov/documents/deq/Supervisor_of_Wells_Insruction_1-2011_428260_7.pdf 20 http://www.shalegaswiki.com/index.php/Amount_of_Water_Used

Pag

e7

Consumptive Use of Water

The water used for gas and oil extraction is 100% consumptive,21 meaning none of it is returned to the hydrological cycle. While some claim that burning methane, which results in the creation of water vapor, actually returns water removed for oil & gas extraction to the hydrological cycle, it cannot be stated that the water removed for this purpose is ever actually returned to the groundwater system from which it was taken. Consequently, we continue to view water withdrawn for this purpose as 100% consumptive. There is no requirement in Michigan to recycle the water used for gas and oil extraction.

Chemicals

What is in completion fluids? The answer varies greatly, depending on what formation a well is being completed in. In the Antrim formation, many hundreds of wells have been completed with nitrogen foam. In the A-1 Carbonate, acid stimulation is common. In the Utica / Collingwood, fresh water mixed with an array of chemical constituents is used. Some of these chemicals are highly toxic, and may also be classified as endocrine disruptors or carcinogens.22 Encana has posted the chemical constituents utilized in six of the wells completed to date on the FracFocus website23, and MDEQ has Material Safety Data Sheets posted for some of those. Some of the chemicals are listed as “proprietary” and their names are not disclosed.24

Slickwater or slick water fracturing is a method or system of hydraulic fracturing which involves adding chemicals to water to increase the fluid flow. Fluid can be pumped down the wellbore as fast as 100 bbl25/min. to fracture the shale. Without using slickwater the top speed of pumping is around 60 bbl/min.26

Proppants

A proppant is a solid material designed to keep an induced hydraulic fracture open, during or following a fracturing treatment. All of the wells considered in this paper utilized sand as a proppant. The size of the sand particles are described in terms of mesh size, and the size range of the proppant is very important. Typical proppant sizes are generally between 8 and 140 mesh (106 µm - 2.36 mm), for example 16-30 mesh (600 µm – 1180 µm), 20-40 mesh (420 µm - 840 µm), 30-50 mesh (300 µm – 600 µm), 40-70 mesh (212 µm - 420 µm) or 70-140 mesh (106 µm - 212 µm). When describing frac sand, the product is frequently referred to as simply the sieve cut, i.e. 20/40 sand.27 Crystalline silica, in the form of sand (“frac sand”), plays a major role in the hydraulic fracturing process."Frac sand" is a high-purity quartz sand with very durable and very round grains.28

In the United States there are two preferred types of frac sand - Ottawa (white) and Brady (brown), the former found mostly in the St. Peter sandstone formations spanning north-to-south from Minnesota to Missouri and east-

21 http://nrconservation.msu.edu/uploads/files/105/MSUE_BulletinWQ62_WaterWithdrawalsandWaterUseinMichigan.pdf 22 http://democrats.energycommerce.house.gov/sites/default/files/documents/Hydraulic-Fracturing-Chemicals-2011-4-18.pdf 23 http://www.fracfocusdata.org/DisclosureSearch/ 24 http://www.michigan.gov/deq/0,4561,7-135-3311_4111_4231-262172--,00.html 25 Bbl=barrel. One barrel = 42 gallons 26 http://www.waytogoto.com/wiki/index.php/Slickwater 27 http://www.horiba.com/scientific/products/particle-characterization/applications/frac-sand/ 28 http://geology.com/articles/frac-sand/

Pag

e8

to-west from Illinois into Nebraska and South Dakota. This quartz silica sand is the highest quality available.29

Not all of the completion records filed with the MDEQ for the wells discussed here contain proppant information. The Encana Beaver Creek 1-23 HD1 well used an unprecedented 18,707,700 pounds of sand to complete.30 This is the largest reported use of proppant by any well on the HVHF list.

WELLS ON THE HVHF CHART

Since our first report, MDEQ has removed four wells from the HVHF well list because those wells were not hydraulically fractured (Schick 1-7HD1, David’s Acres LLC 1-19 HD1, Yonkman 1-29 HD1, and Stiverson & French 1-25 HD1). Six new wells have been added since March 2014. Two of those four are from the same surface location and involved reworks31 of the existing Hubbel 2-22 HD1 (the reworks were conducted under the same permit number: 60041, but are listed separately on the MDEQ list). Two wells previously listed as pending applications in March 2014 report have now been permitted: the State Custer and BGC C3-31 and State Custer and Munn D2-6.

The following wells have transferred from Encana Oil & Gas (USA), Inc. to Marathon Oil Company (these transfers occurred after the date of the most recent MDEQ HVHF well list so the transfers are not reflected on Appendix A):

State Koehler & Kendall 1-27 HD1 State Excelsior 2-12 HD1 State Excelsior 1-13 HD1 State Excelsior 3-12 HD1 State Excelsior 1-25 HD1 State Excelsior 4-12 HD1 State Excelsior 2-25 HD1 State Excelsior 5-12 HD1 State Excelsior 3-25 HD1 State Oliver 1-13 HD1 State Garfield 1-25 HD1 State Oliver 2-13 HD1 State Garfield 1-23 HD1 State Oliver 3-13 HD1 State Excelsior 1-14 HD State Excelsior 4-25 HD1 State Excelsior 1-12 HD1 State Excelsior 5-25 HD1 State Excelsior 1-11 HD1 State Norwich 3-12 HD1 State Excelsior 2-14 HD1 BRCA 1-9 HD1

29 http://fracdallas.org/docs/sand.html 30 http://www.respectmyplanet.org/public_html/documents/CompletionReport.BeaverCreek_.pdf

31 Any major operation performed on a well after its completion in an attempt to restore or improve its ability to produce. http://prodigyoilandgas.com/oil-and-gas-glossary.html#R

Pag

e9

Large Volume Wells

Utica/Collingwood

33 out of the 59 wells now listed on the MDEQ HVHF chart target either the Utica or the Collingwood formations, or both: Marathon now holds the permits on 22 of those;32 Encana Oil & Gas (USA) Inc. (Encana) is still the permit holder on 4 permits and one application. The permit for the State Mentor 1-27 HD1 has terminated but is still listed on the MDEQ chart, but we have removed it from the estimated water withdrawals on Appendix C. The Utica is a shale formation lying just above the Collingwood, which is sometimes classified as a carbonate formation. Both formations are often permitted together as a target formation by MDEQ-OOGM. All of the permits listed for this formation are located in Cheboygan, Missaukee, Kalkaska, Crawford and Roscommon counties. The first production from the Utica/Collingwood was in 2011, from the Excelsior 1-13 HD1 well in Kalkaska County. Although the Pioneer and Kohler Kendall wells were completed earlier, neither well has a pipeline installed to the well and both are temporarily abandoned. Since November of 2011, the six wells producing from this formation have not yielded stellar results in comparison with other plays in North America33, but it’s too soon to tell what the overall production curve will look like. Production figures are available for these wells at respectmyplanet.org.34

The Marathon/Encana permits and applications for Utica/Collingwood wells have either used or propose to use more water than any other producer in any other formation to date (See Appendix C).

All of the Encana/Marathon wells completed or proposed on the MDEQ chart in this formation are Large Volume and have used, or propose to use, more than 3,000,000 gallons of water. The BRCA wells in Kalkaska County estimate using 35,280,000 gallons of water per well35.

Only 4 wells listed on the chart for the Utica/Collingwood were not drilled by Encana:

Well Name Completion

Lucas 1-13 HD1 Drilled but not hydraulically fractured. Litigation is pending over alleged faulty pipe couplings.36

State Norwich 1-6 HD1 Drilled, not completed. Dry Hole.37.

State Richfield 1-34 HD1 Drilled and completed with 4,811,940 gals. slickwater. Failed to produce. Plugged.38

State Garfield/Tiger 1-14 Drilled and completed using 210,000 gals. slickwater. The well did not produce and is temporarily abandoned.39

32 See highlighted permits on Appendix A for permits transferred to Marathon Oil Company 33 http://www.eia.gov/oil_gas/natural_gas/data_publications/eia914/eia914.html 34 Go to respectmyplanet.org, click on a well from the map or the legend, click on homepage, click on production. 35 http://www.respectmyplanet.org/public_html/documents/A130152.pdf 36 Atlas Resources LLC v McJunkin Red Man Corp., U.S. District Court, Western District, 1:12-cv-00041-JTN 37 http://ww2.deq.state.mi.us/GeoWebface/GeoWebface/WF/113/60161_WF.pdf 38 http://ww2.deq.state.mi.us/GeoWebface/GeoWebface/WF/143/60560_WF.pdf 39 http://ww2.deq.state.mi.us/GeoWebface/GeoWebface/WF/079/60363_WF.pdf

Pag

e10

A-1 Carbonate

Carbonate formations tend to be extremely heterogeneous, with complex porosity and permeability variations, barriers, and irregular flow paths.40

There have been incidents of “kicks”, i.e. high pressure gas pockets, encountered in the formation41, as well as hydrogen sulfide (sour gas) in the A-1. The formation has not been widely explored.

There appear to be two primary ways to complete Michigan A-1 Carbonate wells: matrix acid stimulation and acid fracturing. The amount of water and specific chemicals being used vary greatly from well to well.

Of the 14 wells listed in the MDEQ chart for the A-1 (MDEQ advises PN 60991 is targeting the A-1, although there is no target formation listed on the chart), three are Large Volume wells:

Well Name Completion

Sherwood 1-22 HD1 Drilled. No completion records filed to date. . Est. 3 million gallons water42

Merten 1-24 HD1 Drilled and completed. No completion data available to date. Est. 3 million gallons water.43

McKenney 1-27HD1

Permit issued. Est. 3 million gallons water 44

High Volume Wells A-1 Carbonate

The remaining 11 wells listed in A-1 are high volume wells (or may be if they are completed).

Well Name Completion

Schultz 1-36 HD1 Drilled and Completed w/acid and 154,600 gals. Water. Shut In since May 2012.45

Cronk1-24 HD1 Drilled and Completed w/ 231,450 gals gel & 44,000 gals. 15% HCL. Plugged.46

Wiley 1-18 HD1 Drilled and Completed.1.42 million gallons water w/acid & gel. Plugged.47

St. Orange &Christenson 1-21 HD1 Drilled and Completed. Used 645,834 water with BTEX 48constituents. Plugged.49

Riley 1-22 HD1 Drilled and Completed w/ 10,487,650 scf Nitrogen & 93,198 gals. HCI.50 Application to plug well filed 2/3/2014.

Walker 11-25 HD1 Drilled and Completed.51 2,600,270 gallons water

40 https://www.slb.com/~/media/Files/resources/mearr/num8/51_63.pdf 41 http://ww2.deq.state.mi.us/GeoWebface/GeoWebface/WF/011/41728_WF.pdf; 42 http://ww2.deq.state.mi.us/GeoWebface/GeoWebface/WF/093/60811_WF.pdf 43 http://ww2.deq.state.mi.us/GeoWebface/GeoWebface/WF/127/60788_WF.pdf 44 http://www.respectmyplanet.org/public_html/documents/A140070.geoSouthern_.Mckinney_.pdf;

http://www.respectmyplanet.org/public_html/documents/A140080.GeoSouthern_.McKinney_.pdf 45 http://ww2.deq.state.mi.us/GeoWebface/GeoWebface/WF/151/59112_WF.pdf 46 http://ww2.deq.state.mi.us/GeoWebface/GeoWebface/WF/051/60380_WF.pdf 47 http://ww2.deq.state.mi.us/GeoWebface/GeoWebface/WF/051/60452_WF.pdf 48 Benzene, Toluene, Ethyl benzene & Xylene 49 http://ww2.deq.state.mi.us/GeoWebface/GeoWebface/WF/067/60615_WF.pdf 50 http://www.respectmyplanet.org/public_html/documents/Riley_Completion_Report.pdf

Pag

e11

used to complete52

State Wheatland & Reinelt Drilled. Est. water withdrawal: 1 million gallons53

Swanson Trust 1-1 HD1 Not drilled. Est. water withdrawal 2.1 million gallons54

Rich et al. 11-33-HD1 No drilling or completion reports filed to date.

Est. water withdrawal 2,750,000 gallons55

Rich 14-9 HD1 No drilling or completion reports filed to date.

Est. water withdrawal 2,750,000 gallons

Van Damme 41-4 HD1 Drilled. Completed. No drilling or completion

reports filed to date. Est. water withdrawal

2,800,000 gallons56

It can be seen that the completion techniques employed in the A-1 Carbonate do not approach the volume and scale of the water withdrawal and/or fluid utilized in the Utica Collingwood. However, producers continue to experiment with HF fluid ingredients ( including BTEX constituents), and water withdrawal volumes continue to increase for A-1 completion.

Antrim

The Antrim formation, located throughout Michigan, is presently only commercially productive in the northern part of the State, and predominantly produces natural gas. To date, Antrim exploration and production has centered on Otsego, Montmorency, Alpena, Alcona, Oscoda, Antrim and Manistee Counties. The Antrim shale was one of the first shale gas productions in the United States, coming online in 1926.57 Significant development occurred in the Antrim in the 1980’s58. The majority of the “12,000 wells” the MDEQ states have been hydraulically fractured in Michigan are in the Antrim shale. A particular characteristic of this formation is that a considerable amount of formation water is produced initially with the gas.59 You will note from the Stratigraphic Map (Appendix B) this formation is significantly shallower than either the Utica/Collingwood or the A1 Carbonate60 (500 to 2000 feet ).

In 2011, respectmyplanet.org undertook an examination of well file records for Antrim wells. To date, 1,670 files have been reviewed. Of these, 59.4% (992) used water, and 40.6% (678) used nitrogen or nitrogen foam to complete. Of the wells that used water, the average consumption was 11,457 gallons61.

MDEQ chart lists one high volume well completed in the Antrim: the Soper 1-25 HD1, completed by Cimarex Energy Co. in 2008. This well used 1.8 million gallons of water, failed to produce, and

51 http://ww2.deq.state.mi.us/GeoWebface/GeoWebface/WF/151/60809_WF.pdf 52 http://www.respectmyplanet.org/public_html/documents/21-151-60808-01-00-2182014_115914_AM-373-

Whiting_Petroleum.pdf 53 http://ww2.deq.state.mi.us/GeoWebface/GeoWebface/WF/151/60826_WF.pdf 54 http://ww2.deq.state.mi.us/GeoWebface/GeoWebface/WF/121/60755_WF.pdf 55 http://www.respectmyplanet.org/public_html/documents/Whiting.RichA140014_.pdf 56 http://www.respectmyplanet.org/public_html/documents/A140056.Whiting_.VanDamme_.Vertical_1.pdf;

http://www.respectmyplanet.org/public_html/documents/A140057.Whiting_.VanDamme_.Horizontal_1.pdf 57 http://repository.tamu.edu/bitstream/handle/1969.1/ETD-TAMU-2009-12-7481/AGRAWAL-THESIS.pdf 58 http://www.mogpef.org/Exploration/GeologicalFormationsinMichigan.aspx 59 http://custom.cengage.com/regional_geology/data/Geo_Michigan_Watermarked.pdf 60 Stratigraphic Map, Appendix B 61 Request a copy of the Antrim Well Report at respectmyplanet@gmail.com

Pag

e12

was plugged.62 From the records reviewed in the respectmyplanet.org Antrim Well Project, this well is an exception to common completion techniques employed in the Antrim. Since our last report, MDEQ has permitted the State Custer and Munn D2-6 and the State Custer and BGC wells targeting the Antrim formation. Both wells estimate +/-185,000 of water to be used for completion in the application files.63 Neither have been drilled or completed.

Dundee

The Dundee is a rather shallow formation throughout the basin and ranges from surface outcrops to 4300 feet deep.64, exhibiting high permeability and high porosity.65 It is the most prolific oil producing unit in the Michigan Basin, with more than 375 million barrels of oil produced to date66. It is also gas bearing in the northern part of the Lower Peninsula. It is the target formation for many brine disposal wells.67 The Dundee is also a current target for geological sequestration of Carbon Dioxide (CO2). 64

Completion of Dundee wells is not typically high volume. The single HVHF well listed by the MDEQ in the Dundee is for Jordan Development’s State Jerome and Starnes 15-8 HD1 in Midland County.68 The lateral portion of the well is about 3500’ and used open hole completion. Since our last report, the completion records have been filed for this well stating use of 294,747 gallons of water, 7000 gallons of 20% HCI, 6000 gallons of 15% FE69, and 203,398 lbs of sand. No other completed wells or pending applications on the MDEQ High Volume chart are targeting the Dundee.

Niagaran

Development in Kalkaska, Grand Traverse and Otsego counties in this formation began in earnest in 1970. The decade of the 1970s produced around 225 million barrels of oil and almost 874 billion cubic feet of gas in Michigan, and most of this production was from the Niagaran reefs.70 The first horizontal well in Michigan was drilled into this formation in 1984.71

MDEQ lists one high volume well in the Niagaran formation completed in 2010 by Merit Energy Company: the Hubbel 2-22 HD1. MDEQ records indicate that this well was completed using a combination of water, hydrochloric acid and nitrogen foam.72 It was re-worked twice-see Appendix D for details. The well was open hole for the lateral portion of 2,143 feet. No other completed wells or pending applications on the MDEQ High Volume chart are targeting the Niagaran.

62 http://ww2.deq.state.mi.us/GeoWebface/GeoWebface/WF/133/59173_WF.pdf 63 http://www.respectmyplanet.org/public_html/documents/OIL.Antrim_AppA130164_.pdf

http://www.respectmyplanet.org/public_html/documents/OILAntrimAppA130165.pdf 64 http://www.mrcsp.org/userdata/Articles/eg09007.pdf 65 http://www.michigan.gov/documents/deq/GIMDL-OFR866_302614_7.pdf 66 http://aapgbull.geoscienceworld.org/content/90/11/1787.abstract 67 http://digitalcommons.mtu.edu/cgi/viewcontent.cgi?article=1327&context=etds 68 http://www.respectmyplanet.org/public_html/documents/Jordan.Dundee60718_.pdf 69 Foam emulsified 70 http://custom.cengage.com/regional_geology/data/Geo_Michigan_Watermarked.pdf 71 http://bradfordgordon.com/pdf/USGSMichiganCore8_22.pdf 72 http://www.respectmyplanet.org/public_html/documents/60041_wf_with_water_summary.pdf

Pag

e13

Black River (Van Wert) The Black River formation is below the Utica/Collingwood. This formation produces both oil and gas. Gas produced from the Black River Group is predominantly “dry”. The formation has low permeability and low porosity. Development in this formation is focused in south central Michigan.73 Five wells listed on the MDEQ HVHF list target the Black River formation. One is plugged, two are producing and three have yet to be drilled or completed:

Well Name Completion

Kelly et al. 1-26 HD1 Well completed with 228,291 gals. gelled water. Producing.74

McNair 1-26 HD1 Well completed with 17,405 NE Acid75 & 350448 PPG gel.76 Producing.77

Arno 1-25 HD1 Well not drilled to date78

Arno/Timmons 1-24 HD1 Well not drilled to date 79

Burns A1-23 HD1 Well not drilled to date80

SUMMARY

Of the 59 wells now listed on the MDEQ chart, 23 have been drilled and completed. . Of those, 8 are noted as currently producing (the Hubbel well completions are listed separately on the MDEQ report, but it is the same surface location and there is a single permit number, so technically, this is one well). The wells completed and proposed into the Utica/Collingwood formation are the longest (TMD now approaching 4 miles), and are using the largest volume of fresh water, as well as the most varied and toxic array and volume of chemicals in Michigan to date. Wells targeting the A-1 Carbonate formation are utilizing ever increasing volumes of water as well as many of the same chemicals associated with Utica/Collingwood completions. Wells currently being completed in other formations do not approach those numbers, as can be seen from the comparisons contained in this report (Appendix D). We hope you’ve found this paper helpful in differentiating between the formations being accessed and the corresponding completion techniques being employed in the wells listed on the MDEQ’s HVHF chart. Please contact us with any questions or feedback you may have via email to farwatershed@gmail.com or respectmyplanet@gmail.com .

73 http://www.michigan.gov/documents/deq/GIMDL-GGTBR_302379_7.pdf 74 http://ww2.deq.state.mi.us/GeoWebface/GeoWebface/WF/059/60212_WF.pdf 75 Non emulsified; http://www.weatherford.com/Products/EngineeredChemistry/AcidAdditives/Surfactants/ 76 http://www.chemeor.com/downloads/PB_Cerogel%20PPG_906-p1.pdf 77 http://ww2.deq.state.mi.us/GeoWebface/GeoWebface/WF/059/60537_WF.pdf 78 http://www.respectmyplanet.org/public_html/documents/Arno.File_.pdf 79 http://www.respectmyplanet.org/public_html/documents/Continental.Arno2_.pdf 80 http://www.respectmyplanet.org/public_html/documents/60674.Muzyl2_.pdf

# Permit # Company Name Well Name Well No County Wellhead T R S Pilot Boring Comments Target formation Well Type Well Status Confidential1 59112 BEACON EXPLORATION AND PRODUCTION CO LLC SCHULTZ 1--36 SANILAC 12N 15E 36 NA well completed Feb. 2012 A1 Carbonate Oil Shut-in NO2 59173 CIMAREX ENERGY CO SOPER 1-25 HD1 OSCEOLA 17N 10W 25 ACOW well completed Aug. 2008 Antrim Gas Plugging complete NO3 59979 ENCANA OIL AND GAS USA INC PIONEER 1-3 HD1 MISSAUKEE 24N 7W 3 59919 well completed Feb 2010 Utica-Collingwood Gas Temporarily abandoned NO4 60041 MERIT ENERGY COMPANY HUBBEL 2-22 HD/HD1 MONTMORENCY 29N 1E 22 NA well completed June. 2010 Niagaran Oil Producing NO5 60041 MERIT ENERGY COMPANY HUBBEL 2-22 HD1 MONTMORENCY 29N 1E 22 60041 well completed 2011 Niagaran Oil Producing NO6 60041 MERIT ENERGY COMPANY HUBBEL 2-22 HD2 MONTMORENCY 29N 1E 22 60041 well completed 2012 Niagaran Oil Producing NO7 60161 ATLAS RESOURCES LLC STATE NORWICH 1-6 HD1 MISSAUKEE 24N 6W 6 NA well not hydraulically fractured to date. Utica-Collingwood Dry Hole Temporarily abandoned NO8 60170 ENCANA OIL AND GAS USA INC STATE KOEHLER & KENDALL 1-27 HD1 CHEBOYGAN 35N 2W 33 60133 well completed Oct 2010 Utica-Collingwood Oil Temporarily abandoned NO9 60198 ATLAS RESOURCES LLC LUCAS 1-13 HD1 KALKASKA 26N 8W 13 60138 well not hydraulically fractured to date. Utica-Collingwood Not available Temporarily abandoned NO

10 60212 COUNTRYMARK RESOURCES INC KELLY ET AL 1-26 HD1 HILLSDALE 6S 2W 26 NA well completed Sept. 2011 Black River (Van Wert) Oil Producing NO11 60360 ENCANA OIL AND GAS USA INC STATE EXCELSIOR 1-13 HD1 KALKASKA 27N 6W 24 60357 well completed Nov 2011 Utica-Collingwood Gas Producing NO12 54696 TIGER DEVELOPMENT LLC STATE GARFIELD & TIGER 1-14 KALKASKA 25N 6W 14 NA Well completed Oct. 2013 Collingwood Gas Temporarily abandoned NO13 60380 DEVON ENERGY PRODUCTION COMPANY LP CRONK 1-24 HD1 GLADWIN 19N 1W 24 60379 well completed April/May 2012 A1 Carbonate Dry Hole Plugging complete NO14 60389 ENCANA OIL AND GAS USA INC STATE EXCELSIOR 1-25 HD1 KALKASKA 26N 6W 1 NA well completed Nov 2011 Utica-Collingwood Gas Producing NO15 60452 DEVON ENERGY PRODUCTION COMPANY LP WILEY 1-18 HD1 GLADWIN 18N 2W 18 60451 well completed May/June 2012 A1 Carbonate Gas Plugging complete NO16 60537 CONTINENTAL RESOURCES INC MCNAIR ET AL 1-26 HD1 HILLSDALE 6S 2W 26 60536 well completed August 2012 Black River (Van Wert) Oil Producing NO17 60545 ENCANA OIL AND GAS USA INC STATE EXCELSIOR 2-25 HD1 KALKASKA 26N 6W 1 NA well completed Oct 2012 Utica-Collingwood Gas Producing NO18 60546 ENCANA OIL AND GAS USA INC STATE EXCELSIOR 3-25 HD1 KALKASKA 26N 6W 1 NA well completed Oct 2012 Utica-Collingwood Gas Producing NO19 60560 DEVON ENERGY PRODUCTION COMPANY LP STATE RICHFIELD 1-34 HD1 ROSCOMMON 22N 1W 27 60559 well completed Nov 2012 Collingwood Gas Plugging complete NO20 60575 ALTA ENERGY OPERATING LLC RILEY 1-22 HD1 OCEANA 15N 18W 22 60574 Well completed Dec. 2012/May 2013 A1 Carbonate Oil Well complete NO21 60579 ENCANA OIL AND GAS USA INC STATE GARFIELD 1-25 HD1 KALKASKA 25N 6W 36 NA Well completed Dec. 2012 Utica-Collingwood Gas Producing NO22 60587 COUNTRYMARK ENERGY RESOURCES LLC ARNO 1-25 HD1 HILLSDALE 6S 2W 25 NA permit for horizontal well Black River (Van Wert) Location Permitted Well NO23 60588 COUNTRYMARK ENERGY RESOURCES LLC ARNO & TIMMONS 1-24 HD1 HILLSDALE 6S 2W 24 NA permit for horizontal well Black River (Van Wert) Location Permitted Well NO24 60601 ENCANA OIL AND GAS USA INC WESTERMAN 1-32 HD1 KALKASKA 28N 8W 29 60600 Well completed May/June 2013 Utica-Collingwood Location Well complete NO25 60606 ENCANA OIL AND GAS USA INC STATE MENTOR 1-17 HD1 CHEBOYGAN 34N 3W 17 NA permit for horizontal well (60562) Utica-Collingwood Location Permitted Well YES26 60615 ROSETTA RESOURCES OPERATING LP STATE ORANGE & CHRISTENSEN 1-21 HD1 IONIA 6N 6W 21 60614 Well completed June 2013 A1 Carbonate Dry Hole Plugging complete NO27 60621 ENCANA OIL AND GAS USA INC STATE BEAVER CREEK 1-23 HD1 CRAWFORD 25N 4W 11 60620 well completed May 2013 Utica-Collingwood Gas Well Complete NO28 60672 ENCANA OIL AND GAS USA INC STATE ROSCOMMON 1-7 HD1 ROSCOMMON 21N 4W 17 60670 permit for horizontal well Utica-Collingwood Location Permitted Well YES29 60674 MUZYL OIL CORPORATION BURNS A1-23 HD1 HILLSDALE 6S 2W 23 NA permit for horizontal well Black River (Van Wert) location Permitted Well NO30 60686 ENCANA OIL AND GAS USA INC STATE GARFIELD 1-23 HD1 KALKASKA 25N 6W 26 60685 permit for horizontal well Utica-Collingwood Location Permitted Well YES31 60718 JORDAN DEVELOPMENT CO. LLC STATE JEROME & STARNES 15-8 HD1 MIDLAND 8N 1W 8 60717 well completed October 2013 Dundee Oil Well Complete NO32 60746 ENCANA OIL AND GAS USA INC STATE EXCELSIOR 1-14 HD1 KALKASKA 27N 6W 24 NA permit for horizontal well Utica-Collingwood Location Permitted Well YES33 60747 ENCANA OIL AND GAS USA INC STATE EXCELSIOR 1-12 HD1 KALKASKA 27N 6W 24 NA permit for horizontal well Utica-Collingwood Location Permitted Well YES34 60748 ENCANA OIL AND GAS USA INC STATE EXCELSIOR 1-11 HD1 KALKASKA 27N 6W 24 NA permit for horizontal well Utica-Collingwood Location Permitted Well YES35 60749 ENCANA OIL AND GAS USA INC STATE EXCELSIOR 2-14 HD1 KALKASKA 27N 6W 24 NA permit for horizontal well Utica-Collingwood Location Permitted Well YES36 60750 ENCANA OIL AND GAS USA INC STATE EXCELSIOR 2-12 HD1 KALKASKA 27N 6W 24 NA permit for horizontal well Utica-Collingwood Location Permitted Well YES37 60755 ROSETTA RESOURCES OPERATING LP SWANSON TRUST 1-1 HD1 MUSKEGON 9N 14W 1 60754 permit for horizontal well A1-Carbonate Location Permitted Well YES38 60765 ENCANA OIL AND GAS USA INC STATE EXCELSIOR 3-12 HD1 KALKASKA 27N 6W 24 NA permit for horizontal well Utica-Collingwood Location Permitted Well YES39 60766 ENCANA OIL AND GAS USA INC STATE EXCELSIOR 4-12 HD1 KALKASKA 27N 6W 24 NA permit for horizontal well Utica-Collingwood Location Permitted Well YES40 60767 ENCANA OIL AND GAS USA INC STATE EXCELSIOR 5-12 HD1 KALKASKA 27N 6W 24 NA permit for horizontal well Utica-Collingwood Location Permitted Well YES41 60788 UNION GAS OPERATING COMPANY MERTEN 1-24 HD1 OCEANA 15N 17W 24 60787 permit for horizontal well A1-Carbonate Location Permitted Well NO42 60809 WHITING OIL AND GAS CORPORATION WALKER 11-25 HD1 SANILAC 12N 15E 25 60808 permit for horizontal well A1-Carbonate Location Drilling complete NO43 60811 GEOSOUTHERN OPERATING LLC SHERWOOD 1-22 HD1 LIVINGSTON 4N 3E 23 60804 permit for horizontal well A-1 Carbonate Location Drilling complete YES44 60818 ENCANA OIL AND GAS USA INC STATE OLIVER 3-13 HD1 KALKASKA 26N 6W 1 NA permit for horizontal well Utica-Collingwood Location Permitted Well YES45 60819 ENCANA OIL AND GAS USA INC STATE EXCELSIOR 4-25 HD1 KALKASKA 26N 6W 1 NA permit for horizontal well Utica-Collingwood Location Permitted Well YES46 60820 ENCANA OIL AND GAS USA INC STATE OLIVER 2-13 HD1 KALKASKA 26N 6W 1 NA permit for horizontal well Utica-Collingwood Location Permitted Well YES47 60821 ENCANA OIL AND GAS USA INC STATE OLIVER 1-13 HD1 KALKASKA 26N 6W 1 NA permit for horizontal well Utica-Collingwood Location Permitted Well YES48 60822 ENCANA OIL AND GAS USA INC STATE EXCELSIOR 5-25 HD1 KALKASKA 26N 6W 1 NA permit for horizontal well Utica-Collingwood Location Permitted Well YES49 60826 WHITING OIL AND GAS CORPORATION STATE WHEATLAND & REINELT 11-7 HD1 SANILAC 13N 14E 7 60825 permit for horizontal well A1 Carbonate Location Drilling complete NO50 60848 ENCANA OIL AND GAS USA INC STATE PIONEER 3-4 HD1 MISSAUKEE 24N 7W 3 NA permit for horizontal well Utica-Collingwood Location Permitted Well YES51 60891 ENCANA OIL AND GAS USA INC STATE NORWICH 3-12 HD1 KALKASKA 25N 6W 36 NA permit for horizontal well Utica-Collingwood Location Permitted Well YES52 60892 ENCANA OIL AND GAS USA INC BLACK RIVER CONSERVATION ASSN. 1-9 HD1 KALKASKA 27N 5W 28 NA permit for horizontal well Utica-Collingwood Location Permitted Well YES53 60922 O I L ENERGY CORP. STATE CUSTER AND MUNN D2-6 ANTRIM 29N 7W 6 NA permit for directional well Antrim Location Permitted Well NO54 60930 WHITING OIL AND GAS CORPORATION RICH ET AL 11-33 HD1 SANILAC 12N 15E 4 60927 permit for horizontal well A-1 Carbonate Location Permitted Well YES55 60955 WHITING OIL AND GAS CORPORATION VAN DAMME 41-4 HD1 SANILAC 9N 13E 9 60954 permit for horizontal well A-1 Carbonate Location Permitted Well YES56 60969 WHITING OIL AND GAS CORPORATION RICH 14-9 HD1 SANILAC 12N 15E 4 60968 permit for horizontal well A-1 Carbonate Location Permitted Well YES57 60991 GEOSOUTHERN OPERATING LLC MCKENNEY 1-27 HD1 SANILAC 9N 15E 27 60967 permit for horizontal well application for horizontal well Location Permitted Well YES58 61009 O I L ENERGY CORP. STATE CUSTER AND BGC C3-31 ANTRIM 29N 7W 6 NA permit for vertical well application for a directional well Location Permitted Well YES

# App # Company Name Well Name Well No County Wellhead T R S Pilot Boring target formation1 A130152 ENCANA OIL AND GAS USA INC BLACK RIVER CONSERVATION ASSN. 6-9 HD1 KALKASKA 27N 5W 28 NA Utica-Collingwood

HIGH VOLUME (>100,000 gallons) HYDRAULIC FRACTURING SINCE 2008 - ACTIVE PERMITS

HIGH VOLUME (>100,000 gallons) HYDRAULIC FRACTURING PROPOSALS - ACTIVE APPLICATIONScomments

application for horizontal well

Shaley Limestone

Sandstone-Bedded

Calcareous Sandstone

Shaley Sandstone

Anhydrite

Dolomite

Sandy Dolomite

Pleistocene Glacial Drift

Ionia Sandstone

Saginaw Formation

Grand River Formation

Parma Sandstone

Bayport Limestone

Michigan Formation

Marshall Sandstone

Coldwater Shale

Grand Rapids Group

Sunbury ShaleBerea SandstoneBedford ShaleAntrim Shale

Traverse Formation

Traverse Group

Kinderhookian

Chautauquan

Pennsylvanian

Mississippian

Conemaugh

Meramecian

Osagian

Senecan

Erian

Cen

ozoi

c

Mesozoic

Quaternary

Jurassic

?Pottsville?

Devonian

STRATIGRAPHICSUCCESSION

IN LOWERPENINSULA

OF MICHIGAN

Shaley Dolomite

Sandy Limestone

Limestone

Michigan Dept. of Environmental QualityGeological Survey DivisionHarold Fitch, State Geologist

andMichigan Basin Geological Society

Stratigraphic Nomenclature Project Committee:Dr. Paul A. Catacosinos, Co-chairman

Mark S. Wollensak, Co-chairman

Principal Authors:Dr. Paul A. CatacosinosDr. William Harrison III

Robert ReynoldsDr. Dave B.WestjohnMark S. Wollensak

2000

G G

x x x x

f f f f

Chert

Glauconite

Bentonite

Fossils

Unconformity

Sandstone-Fine

Sandstone-Coarse

Sandstone-Cross Bedded

Till/Gravel

Clay or Silt

Gypsum

Limestone Bedded

Shale

Arenaceous Shale

Calcareous Shale

Basement Rocks

Coal Bed

Dolomitic Shale

Sand

Glacial

Ple

isto

cene

Late

Late

Ear

lyM

iddl

eLa

teE

arly

Late

Bell Shale

Dundee Limestone

Sylvania SandstoneAmherstburg Form.

Lucas Formation

Bois Blanc Formation

Garden Island Formation

Bass Islands Dolomite

Salina G Unit

Salina F Unit

Salina E UnitSalina D UnitSalina C ShaleSalina B UnitSalina A-2 CarbonateSalina A-2 Evaporite

Guelph Dolomite (Salina A-1 Evaporite)Ruff Formation (Salina A-1 Carbonate)

Niagara Group

Cabot Head Shale

Manitoulin Dolomite

Utica Shale

Queenston Shale

Trenton Formation

Black River Formation

Glenwood FormationBruggers Sandstone/St. Peter Sandstone

Prairie du Chien Group

Trempealeau Formation

Franconia Formation

Precambrian Crystalline Basement

Galesville Sandstone

Eau Claire Formation

Mt. Simon Sandstone

Pre-Mt. Simon Clastics

Munising Group

Collingwood Shale

Richmond Group

Cataract Group

Salina Group

Detroit River Group

Trempealeaun

Pal

eozo

ic

Ulsterian

Niagaran

Alexandrian

Cincinnatian

Mohawkian

Chazyan

Canadian

Dresbachian

Middle Proterozoic Eon

Cayugan

Silurian

Franconian

Cambrian

Ordovician

Ear

lyM

iddl

eLa

teE

arly

Ear

lyM

iddl

eLa

teLa

te

Foster Formation

Burnt Bluff FormationManistique Limestone

Lockport Dolomite

Cain Formation

(White Niagaran)(Gray Niagaran)

?Kimmeridgian?

Traverse Limestone

ERAPERIOD

EPOCHNORTH AMERICAN

STAGES

Basin CenterBasin Margin MEMBER

FORMATION

GROUPDOMINANT LITHOLOGY

(Brown Niagaran/Salina A-0 Carbonate)

Breccia

MIC

HIG

AN

BASIN GEOLOGICALS

OC

IETY

1936

Appendix C

Large Volume Water Withdrawal for Hydraulic Fracturing in Deep Shale Formations by Encana Oil & Gas (USA), Inc. and Marathon Oil Company

(as of November 30, 2014)

Kalkaska, Crawford, Missaukee, Cheyboygan & Roscommon Counties, Michigan

Proposed and Actual Water Removal in Gallons

Actual water removal reported for completed wells:

60170 Koehler-Kendall 3,256,596 2010 59979 Pioneer 1-3 6,720,000 2010 60360 Excelsior 1-13 5,840,000 2011 60389 Excelsior 1-25 8,481,635 2011 60545 Excelsior 2-25 12,592,096 2012 60546 Excelsior 3-25 21,112,194 2012 60579 Garfield 1-25 12,539,639 2012 60621 Beaver Creek 1-23 15,810,735 2013

60601 Westerman 1-32 12,636,294* 2013

Wells permitted but not yet drilled:

60748 Excelsior 1-11 est 23,100,000 60747 Excelsior 1-12 est 23,100,000 60750 Excelsior 2-12 est 23,100,000 60746 Excelsior 1-14 est 23,100,000 60749 Excelsior 2-14 est 23,100,000 60765 Excelsior 3-12 est 23,100,000 60766 Excelsior 4-12 est 23,100,000 60767 Excelsior 5-12 est 23,100,000 60819 Excelsior 4-25 est 18,900,000 60822 Excelsior 5-25 est 18,900,000 60821 Oliver 1-13 est 31,500,000 60820 Oliver 2-13 est 31,500,000 60818 Oliver 3-13 est 31,500,000 60672 Roscommon 1-7 est 16,800,000 60686 Garfield 1-23 est 10,600,000 60891 Norwich 3-12 est 25,200,000 60892 BRCA 1-9 est 35,280,000 60848 Pioneer 3-4 est 25,200,000

Wells applied for, permits pending:

A130152 BRCA 6-9 est 35,280,000

TOTAL: 564,449,189 GALLONS

*2,130,576 from Kalkaska and Mancelona Municipal Water as per Bill Duley, MDEQ Geologist 11/7/2013

Appendix D Summary of Completion Factors for MDEQ Chart of HVHF Wells in Michigan as of January 23, 2014

Utica Collingwood Wells

Permit # Well Name Completion Fluid Chemicals Proppant 60560 Richfield 1-34 HD1 4,811,940 gals slickwater See below1 3,875,300 lbs silica 54696/ Garfield & Tiger 1-14 210,000 gals slickwater See below2 Not reported 60170 Koehler-Kendall 3,256,596 gals slickwater Not Reported 2,840,000 #20/40 mesh; 241,810 # 30/50 mesh 423,277 40/70 mesh 59979 Pioneer 1-3 6,720,000 gals slickwater Not reported 1,300,000 100 mesh; 2,580,000 40/70 mesh 60360 Excelsior 1-13 5,840,000 gals slickwater See below3 1,100,000 40/70 mesh;2,580,000 20/40 mesh 60389 Excelsior 1-25 8,481,635 gals slickwater See below3 1,870,000# 40/70 mesh; 3,440,000# 20/40 mesh 60545 Excelsior 2-25 12,592,096 gals slickwater See below4 988,164# Ottawa sand 60546 Excelsior 3-25 21,112,194 gals slickwater See below4 8,827,623# Ottawa sand 60579 Garfield 1-25 12,539,639 gals slickwater See below5 9,668,100# Ottawa sand 60621 Beaver Creek 1-23 15,810,735 gals slickwater Not Reported 18,707,700# Premium White 60601 Westerman 12,636,294 gals slickwater See below6 10,333,000# silica7 The remaining wells on the MDEQ list permitted to target the Utica Collingwood formations have not been completed to date.

1 Hydrochloric acid, Hexamethylenetetramine, Phenol / formaldehyde resin, Trimethylbenzene, Ethanol , Heavy aromatic petroleum naphtha, Naphthalene, Poly(oxy-1,2-ethanediyl), alpha-(4-

nonylphenyl)-omega-hydroxy-, branched, Tributyl tetradecyl phosphonium chloride, Ammonium salt, Ammonium chloride, Hydrotreated light petroleum distillate, Paraffinic solvent, Methanol,

Ethoxylated nonylphenol, Sodium perborate tetrahydrate http://www.fracfocusdata.org/DisclosureSearch/SearchResults.aspx 2 Hydrochloric acid 7.5%, Hydrotreated light petroleum distillate, Tributyl tetradecyl phosphonium chloride, Ammonium chloride, Ammonium salt. 9-Octadecenanide alcohols, Isopropanol,

http://www.michigan.gov/documents/deq/Permit_54696_MSDS_439389_7.pdf 3Hydrogen chloride, Ethoxylated Nonylphenol, Glycol Ethers, Isopropyl Alcohol, Propargyl Alcohol, Tar bases, quinoline derivs, benzyl chloride-quaternized, 2,2-dibromo-3-nitrilopropionamide,

Ammonium Sulfate, Ammonium Chloride, Ethoxylated alcohol blend, Ethoxylated oleylamine, Hydrotreated light distillates Hydrotreated light distillates, Polyacrylamide, Propylene glycol, 2-

Butoxyethanol, 2-Ethylhexanol, Cocamidopropyl Dimethylamine, Coconut oil, Dodecylbenzenesulfonate sopropanolamine, Epichlorohydrin, Methanol, Isopropyl Alcohol, Monoethanolamine,

Dimethyl-1,3-Propanediamine, Cocoamidopropyl-N,N-dimethyl-N-2-h ydroxypropylsulfobetainE, Naphthalene, Phosphoric Acid, Poly(Oxy-1,2-Ethanediyl)Alpha.-Hydro-.Omega.-Hydroxy-, Mono-

C8-10-Alkyl Ethers, Phosphates, Polyethylene glycol trimethylnonyl ether, Sodium Metabisulfite, Solvent Naptha (Petroleum), Sulfamic Acid, Aluminum,Titanium and Iron oxides, 2 undisclosed

proprietary elements http://www.fracfocusdata.org/DisclosureSearch/StandardSearch.aspx 4 Hydrochloric acid, Hydrotreated light petroleum distillate, Tributyl tetradecyl phosphonium chloride, Ammonium chloride, Trimethylbenzene, Ethanol, Heavy aromatic petroleum naphtha,

Naphthalene, Poly(oxy-1,2-ethanediyl), alpha-(4-nonylphenyl)-omega-hydroxy-, branched, Methanol, Propargyl Alcohol, http://www.fracfocusdata.org/DisclosureSearch/StandardSearch.aspx 5 Hydrochloric acid, Hydrotreated light petroleum distillate, Tributyl tetradecyl phosphonium chloride, Ammonium chloride, Trimethylbenzene, Ethanol, Heavy aromatic petroleum naphtha,

Naphthalene, Poly(oxy-1,2-ethanediyl), alpha-(4-nonylphenyl)-omega-hydroxy-, branched, Methanol, Propargyl Alcohol, Guar Gum, Sodium Persulfate

http://www.fracfocusdata.org/DisclosureSearch/StandardSearch.aspx 6 15% FE Acid, Heavy aromatic petroleum naphtha, Trimethylbenzene, Tributyl tetradecyl phosphonium chloride, Hydrotreated light petroleum distillate, Guar Gum, Methanol, Propargyl Alcohol,

Poly(oxy-1,2-ethanediyl), alpha-(4-nonylphenyl)-omega-hydroxy-, branched, Sodium persulfate, Ammonium chloride, Naphthalene, FracTracers

http://www.michigan.gov/documents/deq/60601_Westerman_1-32_MSDS_426422_7.pdf ; http://www.respectmyplanet.org/public_html/documents/Encana_-_Westerman_1-32HD-

1_Chemical_Disclosure_%281%29.pdf 7 http://www.respectmyplanet.org/public_html/documents/Westerman_01-32_HD-1_-_Chemical_Additive_Usage.pdf

A-1 Carbonate Wells

Permit # Well Name Completion Fluid Chemicals Proppant 59112 Schultz 1-36 154,600 gals water 26,000 gals 10% HCI8 175,000 sand 60380 Cronk 1-24 HD1 231,450 Linear gel & 44,000 gals 15% HCI See below9 593,400# unspecified proppant 60452 Wiley 1-18 HD1 1,420,939 gals water See below10 1,308,602# unspecified proppant 60615 Christenson 1-21 HD1 645,834 gals water See below11 Amount not specified on completion report 60575 Riley 1-22 HD1 93,198 gals. HCI See below12 No proppant noted on completion report 60809 Walker 11-25 HD1 2,600,270 gals water See below13 Silica sand. Amount not specified. 60788 Merten 1-24 HD1 Not Reported to Date Not reported to date Not Reported to date The remaining wells permitted to target the A-1 Carbonate formation have not been completed to date.

Antrim Well

Permit # Well Name Completion Fluid Chemicals Proppant 59173 Soper 1-25 HD1 1,800,000 slickwater No MSDS on file at MDEQ None noted on completion report

Dundee Well

Permit # Well Name Completion Fluid Chemicals Proppant 60718 State Jerome & Starnes 294,747 gals water + 7000 gals 20% HCI 203,398 lbs sand 6000 gals 15% FE14

8 HCI:Hydrogen Chloride a/k/a Hydrochloric Acid 9 Hydrochloric Acid, Guar Gum, Resin, Petroleum Distillates,Methanol, Parafinic Petroleum Distillates, Poly (Oxyethylene) Nonylphenol Ether, Citric Acid, Acrylic Polymers, 1-Butoxy-2-Propanol,

2-Butoxyethanol, Enzyme solution, Boric Acid (H3BO3), Methyl Borate, Ethylene Glycol, Potassium Carbonate, Isopropanol, Glutaraldehyde, Sodium Carbonate, Polyoxyalkylenes, Didecyl

Dimethyl Ammonium Chloride, Hemicellulase Enzyme , Calcium Chloride, Ethanol, Quaternary Ammonium Compound, Fatty Acids, Ammonium Persulfate, Olefin, Propargyl Alcohol, Potassium

Hydroxide , http://www.fracfocusdata.org/DisclosureSearch/SearchResults.aspx 10 Hydrochloric Acid, Guar Gum, Hexamethylenetetramine, Phenol / formaldehyde resin, Ethylene glycol, Tributyl tetradecyl phosphonium chloride, Hydrotreated light petroleum distillate,

Monoethanolamine borate, Acetic Acid, Methanol, Sodium persulfate, Sodium perborate tetrahydrate, Alcohols, C12-16, ethoxylated, Ammonium chloride, Sodium chloride, Sodium Sulfate, & three

proprietary ingredients, http://www.fracfocusdata.org/DisclosureSearch/SearchResults.aspx 11 Xylene, Ethel Benzene, Toluene, Monoethanolamine borate, Ethylene glycol, Monobutyl ethel, Isopropanol, Crotonaldehyde, Acetaldehyde, Methanol, Hydrotreated light petroleum distillate,

Aldol,Ethanol, Heavy aromatic petroleum naphtha, Naphthalene, Poly(oxy-1,2-ethanediyl), alpha-(4-nonylphenyl)-omega-hydroxy-, branched, 1,2,4 Trimethylbenzene, Tributyl tetradecyl

phosphonium chloride, Sodium persulfate & 6 confidential ingredients, , http://www.fracfocusdata.org/DisclosureSearch/SearchResults.aspx 12 Hydrochloric acid , Dodecylbenzene sulfonic acid, Isopropynol, Tributyl tetradecyl phosphonium chloride, Ammonium salt, Carbohydrates, Hemicellulase enzyme, Methanol, Propargyl alcohol,

Inner salt of alkyl amines, Sodium chloride, Paraffinic solvent Paraffinic solvent, Ethanol, Heavy aromatic petroleum naphtha, Naphthalene, Poly(oxy-1,2-ethanediyl), alpha-(4-nonylphenyl)-omega-

hydroxy-, branched, Isopropanol, Nitrogen http://www.michigan.gov/documents/deq/60575_Riley_HD1_MSDS_420613_7.pdf 13 Hydrochloric Acid, Guar Gum, Acetic anhydride, Methyl Borate, Dipropylene glycol monomethylether, Ethanol, Heavy aromatic petroleum naphtha, Naphthalene, Poly(oxy-1,2-ethanediyl), alpha-

(4-nonylphenyl)-omega-hydroxy-, branched, Ethylene glycol, 1,2,4 Trimethylbenzene, Ammonium salt, Citric Acid, Tributyl tetradecyl phosphonium chloride, Propylene glycol, Sodium chloride,

Methanol, & 11 confidential ingredients. http://www.fracfocusdata.org/DisclosureSearch/SearchResults.aspx

Niagaran Well

The Hubbel 2-22 was originally completed in June of 2010, and reworked in 2011 and in 2012 Permit # Well Name Completion Fluid Chemicals Proppant 60041 Hubbel 2-22 HD1 1st: 33,567 28% HCI; 24,810 20% Vis-Clear; 1203 Mcsf N215 2nd:230,000 gals slickwater See below16 3rd: 147,000 gals N2; 18,000 25% HCI17

Black River Wells

Permit # Well Name Completion Fluid Chemicals Proppant 60212 Kelly et al, 1-26 HD1 228,291 gals. gelled water See below18 None noted in completion report 60537 McNair 1-26 HD 1 17,405 NE Acid & 350,448 gals PPG gel. See below19 None noted in completion report The remaining three wells on the MDEQ list permitted to target the Black River formation have not been completed to date.

14 Foam Emulsified 15 N2: Nitrogen 16 Monoethanolamine borate, Ethylene glycol, 2-Monobromo-3-nitrilopropionamide, 2,2 Dibromo-3-nitrilopropionamide, 2-Bromo-2-nitro-1,3- propanediol, Acetic acid, Carbohydrates,

Hemicellulase enzyme, Methanol, Propargyl alcohol, Ethanol, Poly(oxy-1,2-ethanediyl), alpha-(4-nonylphenyl)-omega-hydroxy-,branched

Naphthalene 1,2,4 Trimethylbenzene , Heavy aromatic petroleum naphtha, Heavy aromatic petroleum naphtha, Isopropanol. Guar Gum & 1 proprietary ingredient,

http://www.michigan.gov/documents/deq/Hubell_MSDS2011-11-17_368902_7.pdf 17 http://www.michigan.gov/documents/deq/deq-oogm-HVHF-waterwtith2014_458288_7.pdf 18 Ethylene glycol, Ammonium Persulfate, 2,2 Dibromo-3-nitrilopropionamide, Polyethylene Glycol Mixture, Isopropyl Alcohol, Glycol Ethers, & 2 proprietary ingredients,

http://www.michigan.gov/documents/deq/KELLEY_MSDS2011_11_02_367756_7.pdf 19 Glycol Ethers, Isopropyl Alcohol, Isopropynol, Hydrocarbons, Hydrochloric Acid, Cupric Sulfate, Copper, Methanol, Ethylene Glycol, & 2 proprietary ingredients

http://www.michigan.gov/documents/deq/McNair_ET_AL_1-26_HD1_MSDS_401458_7.pdf