John Albanese Consulting Geologist Archaeo-geology in the Powder River Basin

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1 Slate of Speakers WGA Field Conference 2 August 2007 Speaker Employer Tentative Talk Subject (hyperlink to abstract) Keynote speaker: Byron J. Buck McVeigh State of Wyoming Department of Administration and Information This is Not Your Father s Boom John Albanese Consulting Geologist Archaeo-geology in the Powder River Basin Brian Black Leslie Cone Mark Doelger Leo Giangiacomo Matt Grant Rocky Mountain Oilfield Testing Center National Integrated Land System Wyoming Natural Gas Pipeline Authority Extreme Petroleum Technology, Inc. Wyoming Mining Association The RMOTC Data Management Project: An Update on a Long-Term Project of Modernizing the U.S. Department of Energy, Teapot Dome Oilfield Database Oil and Gas Leasing using BLM s NILS GeoCommunicator CBM Water Pipeline Feasibility, Powder River Basin, Wyoming On the Application of Reservoir Modeling to Small Redevelopment Projects Outlook and Perspectives on Coal, Trona and Uranium Bob Montgomery Cave Creek Consulting Wyoming's Powder River Basin Pleistocene Mammoth Chris Mullen Elk Petroleum Tensleep/Phosphoria Redevelopment at South Sand Draw Don Stone Consulting Geologist New Interpretations of the Piney Creek Thrust and Associated Granite Ridge Tear Fault, Northeastern Bighorn Mountains, Wyoming 1

2 Speaker Employer Tentative Talk Subject (hyperlink to abstract) Dr. Ron Surdam Wyoming State Geologist Origin of Thermogenic and Biogenic Natural Gas in the Tongue River Member Coals of the Fort Union Formation, Northeastern Powder River Basin, Wyoming Dr. Geoff Thyne Enhanced Oil Recovery Institute CBM in Wyoming: It s All About the Water Cal Van Holland UR-Energy, Inc. An Introduction to Uranium Roll- Front Deposits Dr. Peigui Yin Sr. Research Scientist, Enhanced Oil Recovery Institute Microscale Characterization of Oil Reservoirs in Power River Basin Abstracts Byron J. Buck McVeigh State of Wyoming Department of Administration and Information This is Not Your Father s Boom Many of us who were around for the last boom remember it well; the population explosion, tent towns, escalating crime, rapidly rising fuel prices, and the long lines and out of fuel signs at gasoline stations. We also remember the bust that followed, and the dramatic effect it had on our state. Wyoming is no stranger to the boom and bust cycle common in economies dependent on one or few industries. Yet, its progress in diversifying its economic structure over the years has been largely unsuccessful, despite ample investment and effort. What is the difference between the 70s boom and what s happening today? We ll look at how the State s economy is doing currently, how it has changed over the years, and talk about an outlook for the future. This talk will focus on the significance of mineral production in Wyoming, some lessons that were learned from the last boom, and what direction the State is heading towards its future. John Albanese Consulting Geologist Archaeo-geology in the Powder River Basin TBS 2

3 Brian Black Rocky Mountain Oilfield Testing Center The RMOTC Data Management Project: An Update on a Long-Term Project of Modernizing the U.S. Department of Energy, Teapot Dome Oilfield database. The Rocky Mountain Oilfield Testing Center (RMOTC) operates the Teapot Dome Oilfield near Casper, Wyoming, also known as Naval Petroleum Reserve No. 3. During the past three years, RMOTC has been gathering and consolidating over 80 years of oilfield data and entering that information into a modern geo-computing environment and relational database. Data compiled and collected through this project includes but is not limited to 2D and 3D seismic data, well data from over 1300 wells including core and test data and digital logs from over 1000 wells, new geological and geophysical interpretation of key horizons, faults, and zones, and a GIS system showing correct well locations, facilities, pipelines, roads, drainages, etc. Production and engineering data has also been compiled. These data are being made accessible for project partners and others through use of an internet data room and other digital media such as CD and DVD ROMs. Parts of this public-domain database have already been distributed to many clients and interested parties including several software companies, exploration and production companies, and individuals. The released data is designated for use in software training, demonstration, and testing, research, and as an analog for engineers and geoscientists to use in evaluating similar petroleum systems. Several universities and other research institutions are currently using the data in a variety of academic and industry-related studies. As more data becomes available through this project, the Teapot Dome dataset will become an increasingly valuable contribution to the petroleum industry. As part of the data management project RMOTC is continuing to work towards solving problems in developing a useful system for improving in-house record entry and document management, along with modernization and automation of production facilities in the field itself. Leslie Cone National Integrated Land System Oil and Gas Leasing using BLM s NILS GeoCommunicator This presentation will discuss and demonstrate the most recent developments within the BLM s National Integrated Land Systems (NILS) GeoCommunicator. GeoCommunicator is the publication web site of NILS that allows for the distribution and access of spatial data from the NILS transaction application modules. Areas to be discussed and demonstrated include the GeoCommunicator s new energy map viewer, as well as some of the more recently added data layers and functionality including 3

4 oil and gas stipulations, geothermal, rights-of-way, solid minerals, grazing allotment and pastures, energy basins, and oil and gas lease sale parcels. GeoCommunicator can be used by the oil and gas industry as well as by those with energy interests to search, locate, access, and spatially display the BLM oil and gas agreements and leases within the United States. GeoCommunicator is utilized by many industries including, but not limited to; energy, title, utility, education, mining, and environmental interests. Mark Doelger Wyoming Natural Gas Pipeline Authority CBM Water Pipeline Feasibility, Powder River Basin, Wyoming The Wyoming Pipeline Authority has done the initial scoping for a CBM water pipeline that would originate in the Gillette area and transport up to one million barrels of water per day to Teapot Dome where it would be injected into the Madison or Tensleep formation aquifers. The project would be approximately 70 miles of 42 steel pipe, and could be completed in two years if properly supported by industry. Precedent for the project has been set by Anadarko with their project which involves injection of CBM water into the Madison Formation at the adjoining Salt Creek Field. Industry interest to a non-binding open season has been relatively modest; two companies responded affirmatively, one company was a no, and three companies have requested further review and consideration as to the location, economics, and timing of the pipeline. The Authority remains hopeful about the project, although the current level of support is not enough to build the project. The Authority has laid a foundation and gained support (some support is conditional) for this project with all interested and involved parties, including: Governor Freudenthal s office, the Joint Minerals, Business and Economic Development Committee of the legislature, the office of the State Engineer, the Water Development Commission, the CBM Water Task Force, the Department of Environmental Quality, and the Department of Energy Rocky Mountain Oil Field Testing Center. Leo Giangiacomo Extreme Petroleum Technology, Inc. On the Application of Reservoir Modeling to Small Redevelopment Projects As oil and gas prices increase, old fields look more attractive for redevelopment. Since these fields have already been discovered, developed, produced, and in some cases abandoned, they have the advantage of low risk oil, but the disadvantage of marginal economics. There is little room for error when capital is invested in these fields; therefore it is wise to make the best use of the existing data and production performance to design redevelopment plans. Reservoir modeling is maturing and becoming more economic to apply as both software and hardware become cheaper and more powerful. With some experience, this combination can be economically applied to smaller budget projects, and reduce the risk involved with redevelopment. 4

5 The most important aspect of any modeling project is the static model, or the geological reservoir description. These descriptions have two main components, the structural model, and the stratigraphic or depositional model. The structural model generally characterized the size and shape of the reservoir container. This must include any faulting that has an effect on fluid flow. The stratigraphic model generally describes the flow units within the reservoir. It provides a facies distribution in both the vertical and horizontal directions. A look at some reservoir modeling projects shows that each project has unique critical aspects that control the level of success. Matt Grant Wyoming Mining Association Outlook and Perspectives on Coal, Trona and Uranium The creation of Wyoming s great mineral wealth took millions of years to create and has been utilized for only a fraction of geologic time. The Wyoming Mining Association (WMA) represents the coal, trona, bentonite and uranium industries in the State. Our mining company members employ 9,000 people and our supplier companies employ three times this amount. Wyoming Miners are paid very impressive salaries for their highly skilled positions. The production of minerals occurs on lands owned by private individuals, the State of Wyoming, the Bureau of Land Management and the US Forest Service. This diverse ownership generates tax revenue for different levels of government. Mining is vital to every county in the State. Some counties are blessed with coal or trona deposits and many counties do not enjoy this economic development foundation. All Wyoming Counties have a sand and gravel operation within their boundaries that are a constant source of revenue. Mining is one of the safest industries in the state and has received national recognition for this achievement. Thirteen times in the last twenty-four years a Wyoming coal mine has received the Sentinels of Safety Award for being the safest surface-coal mine in the nation. Another example of this safety is one uranium mine operated for over 25 years without a lost-time accident. The production of various minerals is important every American. Many mineral deposits are developed within Wyoming and more can be developed. A key factor in this development is legislative or regulatory restrictions that can limit this economic growth. Mining creates great jobs and generates tax revenue for all of Wyoming. Bob Montgomery Cave Creek Consulting Wyoming's Powder River Basin Pleistocene Mammoth TBS 5

6 Chris Mullen Elk Petroleum Tensleep/Phosphoria Redevelopment at South Sand Draw TBS Don Stone Consulting Geologist New interpretations of the Piney Creek Thrust and Associated Granite Ridge Tear Fault, Northeastern Bighorn Mountains, Wyoming TBS Dr. Ron Surdam Wyoming State Geologist Origin of Thermogenic and Biogenic Natural Gas in the Tongue River Member Coals of the Fort Union Formation, Northeastern Powder River Basin, Wyoming This is about an integrated study of the origin of natural gas in the coal beds of the Tongue River Member, Fort Union Formation located in the Powder River Basin, Wyoming. The origin of natural gas in these coal beds is particularly important because they serve as a source of copious amounts of gas in the form of coalbed natural gas accumulations. To better understand the source of the coalbed natural gas in the Powder River Basin, we evaluated burial, thermal, and maturation histories and reaction kinetics of hydrocarbon generation in the Tertiary coals and organic-rich shales of the underlying Cretaceous stratigraphic section. Our evaluations suggest the following conclusions: 1. The isotopic composition of natural gas in the Tongue River Member coal beds demonstrates that it is a mixture of thermogenic and biogenic gas. 2. The coal beds have had insufficient thermal exposure to generate notable amounts of thermogenic gas. 3. During burial, the Tongue River Member coals generated huge quantities of short-chained carboxylic acid and acid anions, providing an ideal environment for methanogenesis (CH3COOH + bacteria CH4 + CO2). 4. Acetate generation (methanogenesis) in the coals probably began approximately 50 ma at a burial depth of 500 m and continued until approximately 10 ma at a burial depth of 1,000 m. 5. At present, the Tongue River Member coals have little or no additional capacity to generate acetate. 6

7 6. The coal beds are the source and reservoir of the biogenic gas, but the thermogenic gas was generated in the underlying deeper Cretaceous organicrich shales and then migrated into the coal beds. Dr. Geoff Thyne Enhanced Oil Recovery Institute CBM in Wyoming: It s all about the Water Coal Bed Methane (CBM) development in the Powder River Basin continues to be a major growth industry, but produced water treatment and disposal has emerged as a significant limiting factor. Usually produced water has elevated dissolved solids that render it unfit for beneficial use. However, the produced water in the PRB has low dissolved solids and can potentially be used in agricultural and ranching activities. Therefore, this produced water must be preserved for potential future beneficial use by returning it to the watershed system. Wyoming presents unique challenges for water disposal including arid climates, highly variable seasonal weather and regulatory uncertainty. Several approaches to the problem are being implemented including limited re-injection, infiltration ponds, surface discharge, water treatment and beneficial use. The traditional approach in petroleum operations of subsurface injection has limited applicability due to lack of suitable shallow targets. Produced water treatment techniques are generally expensive and need high degrees of scalability to handle the large changes in produced water volumes over the life cycle of a typical well. Surface discharge has lead to other issues including damage to surface channels, flooding of grazing lands and increased salinity to the Powder River and resulting inter-state legal issues. Surface retention ponds for aquifer recharge may also contribute to increasing aquifer salinity. Agricultural use has produced soil damage without proper soil characterization and application of soil additives. An analysis of the available techniques offers a basis for evaluation of the potential costs, capabilities and benefits. While it appears that no single technique will be sufficient in all conditions, integration of the available methods with situation-specific application appears to offer the most fruitful approach. Cal Van Holland UR-Energy, Inc. An Introduction to Uranium Roll-Front Deposits With the recent reconnaissance of the uranium industry it is recognized that there are numerous individuals who may have in interest in the industry but who do not have a wide spectrum of knowledge about uranium deposits. This includes a large influx of new workers now pouring into the industry. This presentation thus targets individuals who not work in the uranium industry or who have entered into the industry within the last few years. It is primarily a non-technical discussion intended to provide an overview of the general nature and characteristics of roll-front type uranium deposits, which are the type which occur within the Powder River Basin. The presentation will begin with a discussion of the geologic conditions necessary for the formation of roll-fronts, with emphasis on the chain of events leading to development of deposits in the Powder River Basin. This will be followed by a discussion of the general 7

8 characteristics and geometry of roll-fronts, with some explanation regarding exploration and mapping of deposits. The presentation will also include a brief summary of uranium geochemistry as related to roll-front formation, and will touch on the subject of disequilibrium and its impact on mining. Stress will be placed on characteristics of rollfront deposits pertinent to solution mining (ISR: In-situ Recovery). Dr. Peigui Yin Sr. Research Scientist, Enhanced Oil Recovery Institute Microscale Characterization of Oil Reservoirs in Power River Basin The important microscale properties of reservoir sandstones with respect to EOR include grain composition, cementation, clay minerals, and pore network. Grain composition has an effect on pore network and particle surface areas. Cementation modifies both porosity and permeability and affects rock-fluid reactions. Clay minerals are most sensitive to reservoir flooding performance. Pore network, determined by depositional textures, framework composition, and diagenesis, governs the fluid movement in oil reservoirs and the distribution of residual oil. Different oil reservoirs in the Powder River Basin are characterized by distinctive microscale properties, which are critical for designing the EOR operations. Minnelusa reservoir sandstones are composed of dominantly quartz grains with dolomite and anhydrite cements. Clay minerals are in a minor amount. Intergranular pores are dominant and well-connected, except pores lined by dolomite crystals or sealed by anhydrite cement. Muddy reservoir sandstones are also quartz-dominant and rich in calcite and kaolinite cements. Pore-filling kaolinite alters a portion of well-connected macropores into clustered micropores. All the reservoir sandstones of Frontier, Sussex and Shannon formations are rich in feldspar and lithic fragments, water-sensitive clay minerals, and calcite cement. Porosities are dominated by poorly-connected secondary pores and micropores within partially dissolved grains and clay minerals. All these properties in reservoir sandstones have to be considered in enhanced oil recoveries. 8

Characterization and Modeling of Naturally Fractured Tensleep Reservoirs

Characterization and Modeling of Naturally Fractured Tensleep Reservoirs Shaochang Wo, Peigui Yin, Scott Cooper, John Lorenz J A N U A R Y 1 8, 2 0 1 1, D E N V E R A Brief Overview of the Tensleep Reservoirs