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SCEK Report on Phase I (2012 2013) Induced Seismicity Monitoring Project (ISMP) Carlos Salas, VP Oil & Gas, Geoscience BC

Contents Background... 2 Summary of Activities... 5 Additional Work... 8 References... 8 1

Background In late summer 2012, the BC Oil & Gas Commission (BCOGC) released their Report titled Investigation of Observed Seismicity in the Horn River Basin, which was commissioned in response to public and regulatory concerns with respect to induced seismicity associated with hydrofracturing operations in the Horn River Basin. The study utilized four Canadian National Seismic Network (CNSN) seismograph stations, two of which are located in Northeast BC (NEBC; Hudson s Hope and Fort Nelson, Figure 1) and are operated by National Resources Canada (NRCan). The study was conducted between April 2009 and December 2011, during which time 38 low level seismic events were recorded by the CNSN s two stations near Hudson s Hope and Fort Nelson (Figure 1). These events ranged in magnitude between 2.2 and 3.8 on the Richter scale. The largest event was recorded on May 19, 2011 and was felt on the surface, although no damage or injuries were reported. The last seven events occurred during the period between December 8 and December 13, 2011. Prior to April 2009, the seismograph network had not detected any seismicity. The seismograph stations can only detect events as low as approximately 2.4 Richter; hence it was not possible to demonstrate whether smaller level events occurred during this time period. Seismic events in the range of 0.5 2.0 Richter are very common and are termed micro earthquakes whereas those between 2.0 3.9 Richter are called minor earthquakes (United States Geological Survey, 2012). Those events within the lower end of the range (i.e., 2.0 Richter) are rarely felt while those within the upper range (i.e., 3.9 Richter) are often felt but rarely cause damage. The current CNSN has several technical limitations when used for the study of induced seismicity (BC Oil and Gas Commission, 2012). The first shortcoming is due to the limited station coverage, which results in a 5 10 km uncertainty of the epicentre s location while carrying an even larger uncertainty of the focal depth. Secondly, although the instruments minimum magnitude detection is approximately 2.4 Richter, calibration with an oil and gas industry operated seismic array found that it had failed to detect 15 events >2.4 Richter during a two month period. Therefore, it is likely that events in the 2.0 3.0 Richter range have been historically under reported. Utilizing CNSN s data, along with help from industry, NRCan, the University of BC and the Alberta Geological Survey (AGS), the BCOGC noted the low level seismic events were centred on the Etsho and Tattoo areas of northeastern BC. Additional dense array data provided by operators conducting completion operations captured an additional 212 anomalous seismic events (>2.0 Richter) in the greater Etsho area. The BCOGC s study concluded that these events were synchronous with completion operations and occurred at approximately the same depths as the frac stages. Furthermore, it was surmised that the anomalous induced seismicity seen over the period between April 2009 and December 2011 (Figure 2) was the result of fault movement due to hydraulic fracturing. In addition, the BCOGC stated that during the study period, the low level seismic events did not incur any property damage or injuries, nor did these events pose any risk to public safety or the environment. 2

Figure 1. Map of northeastern British Columbia showing location of the two current Canadian National Seismograph Network (CNSN) seismograph stations and the site locations for the six Geoscience BC led consortium seismograph stations 3

Figure 2. A total of 250 anomalous seismic events were recorded during the period between early 2009 to late 2011 Based on the study, the BCOGC made seven recommendations in their report, namely: Improve accuracy of CNSN with respect to induced seismicity in NEBC Perform geotechnical assessments to identify pre existing faulting Establish Procedures and Requirements for identification of induced seismicity Place ground motion sensors in selected NEBC communities BCOGC to study use of mobile dense arrays Require submission of microseismic reports Study relationship between fraccing and seismicity 4

In response to the BCOGC s first recommendation, a research consortium was created between Geoscience BC, the Canadian Association of Petroleum Producers (CAPP), the BCOGC and NRCan to help improve the accuracy of the CNSN. A Memorandum of Understanding (MOU) was signed between the partners in July 2012 with a mandate to collect, interpret and make public, the data collected from the installation of six new seismograph stations to complement the pre existing CNSN network. The Induced Seismicity Monitoring Project has $1 million in funding from 50/50 equity partners Geoscience BC and CAPP (through SCEK funding) with in kind support from BCOGC and NRCan. The project has a mandate to monitor induced seismic activity for a total of five years (until June 2017) with an interim review scheduled for June 2014 to assess the project s performance. The project is managed by joint Steering and Technical committees largely comprised of representatives from each of the partners. There are four members from each of the partners in the Steering Committee, and its role is to oversee general project direction and execution with respect to the MOU and to provide financial guidance to the Technical Committee. A Communication Plan has been drafted by the Steering Committee to aid in regular stakeholder communication along with missives which may be necessary in response to an anomalous induced seismic event. At present, all events registered by the network are published on the NRCan website: http://www.earthquakescanada.nrcan.gc.ca/indexeng.php. The Technical Committee s mandate is to oversee operation and maintenance of the seismographs and review and advise on all technical aspects relating to the project. The Technical Committee comprises seven individuals: three from industry, one academic and three from various government agencies (NRCan, BCOGC and the Alberta Geological Survey). During the initial installation and testing stages both committees are meeting on a quarterly basis. Summary of Activities A Memorandum of Understanding between the partners was verbally agreed upon on July 1, 2012, signed by all parties later that summer and is in force until June 30 th 2017. The final location of the stations was approved by the technical committee in early January 2013 and their placement allows for strategic coverage of the Liard, Horn River and Cordova Basins along with two stations located at the antipodes of the Montney Gas Play. The lead technical partner, NRCan, recommended the use of the Nanometrics made Trillium 120PH broadband seismometers as they are state of the art units based on technical criteria such as, but not exclusively: 1) continuous data transmittal with minimal power consumption (6W or less, a necessary requisite given they are solar powered); 2) ability for placement in any kind of terrain in soil/gravel or directly on bedrock; 5

3) high tilt tolerance i.e., tolerant of the angle the installation hole is drilled at; 4) tolerance of very cold temperatures; 5) excellent reliability, with a solid world wide reputation; and lastly, 6) compatibility with CNSN. Given the outlined points, a decision was made by the partners to solesource the instruments and the installation to Nanometrics Inc. Installation of the seismometers began in February 2013 and was completed by mid March 2013. At four of the six locations, the seismographs are mounted on screw piled, 5 m x 5 m pads, set to a depth of approximately 10 m. These sites typically use pre existing well pads. The other two seismographs are mounted directly on bedrock. All stations went live by the end of March (Figure 3) and are expected to have been fully incorporated into the CNSN by the end of June 2013. Figure 3. An installed seismograph station Data collected by the station is sent via satellite (a central site VSAT System) to NRCan s Pacific Geoscience Centre in Sidney, BC, where the data are processed by an Apollo server (a seismicspecific software package), which converts it to CNSN compatible format. The data stream is then redirected to both the Alberta Geological Survey and the Geological Survey of Canada where it is processed with data from the CNSN. Routine analysis of seismic events is not done in real time, unless the seismic event is >4.0 Richter. In this case, analyses would be reported in real time. It is expected that there will be a 1 2 day delay between when the data arrives and when the interpretation of the seismic event is posted. The interpreted seismic events are posted on the Earthquakes Canada (NRCan) webpage (http://www.earthquakescanada.nrcan.gc.ca/rece nt/maps cartes/index eng.php). Since the stations came online in late March, events have been recorded in two general areas: Altares and Fort St. John (Figure 4). The area around greater Altares has experienced six low magnitude events (<2.5) whereas the area around Fort St. John Septimus has had two recorded events: one event measured on May 27 th was interpreted as a 4.2 event (Figure 5), and was felt on surface in Fort St. John (11 km north of the epicentre). No damage or injuries were reported. There were two subsequent aftershocks of 2.8 and 2.5 on May 28 th and June 2 nd respectively. Subsequent work by NRCan has put the focal depth of the original event at an approximate depth of 3,000 m. 6

Figure 4. Since the network went live in late March 2013, seismic events have been monitored in the Fort St. John and greater Altares regions (approximately 60 kms west of Fort St. John). Figure 5. Seismographs from the May 27 th event (magnitude 4.2) felt in Fort St John. The left panel shows the unfiltered signal whereas the right panel shows the signal band passed at 1 Hz. Note the arrival of the P waves on the NBC5 (top right) at approximately 30 seconds and the S waves at around 53 seconds. Surface waves can be seen rolling in at about 100 seconds. 7

Additional Work The network is continuously being reviewed by the technical partners to ensure that the best accuracy and precision is achieved. The initial two months of operation have demonstrated epicentre accuracy that appears to be in the 5 10 km range. Further technical work is necessary to optimize and calibrate the system for it to reach its expected potential. A technical plan is currently being devised to address the deficiencies in short order. The data collected by the network is currently being used by the BCOGC, not only for monitoring induced seismicity, but also for the development of protocols necessary for responsible hydrofracturing operations. It is expected that NRCan and BCOGC/UBC, among others, will publish studies based on data collected from the consortium s seismic network. At the end of the five year project, several outcomes could ensue: 1) termination of the project; 2) additional funding for more monitoring; 3) transferal of the stations to the CNSN; or 4) de commissioning of the network. References BC Oil and Gas Commission (2012): Investigation of observed seismicity in the Horn River Basin; BC Oil and Gas Commission, Technical Report, 29 p., URL <http://www.bcogc.ca/document.aspx?documentid=1270> [August 2012]. United States Geological Survey (2012): Earthquake facts and statistics; United States Geological Survey, URL <http://earthquake.usgs.gov/earthquakes/eqarchives/year/eqstats.php> [ November 2012 ]. 8