American Oil and Gas Reporter - May 2015 - 128

nesses continue. We will overcome these
obstacles the same way we found victory
in the 60-year history of this association:
through technological breakthroughs, hard
work and cooperation."
The association's largest fundraiser
will take place during the annual meeting
with the June 6 Oil Field Services Auction,

Terry says. Companies have donated
equipment, services and products for the
event, and the proceeds go to OIPA's
political and advocacy efforts.
"The fundraising auction set a record
in 2014, raising $800,000," he says. "The
oil and gas industry has been extremely
supportive of the auction, and OIPA is

looking forward to 2015. Bidding probably
will not be as robust because of declining
field activity, but I expect a successful
auction and a successful meeting overall.
The association already has run out of
room for exhibitors. Attendance will be
down a little bit, but it will not be a huge
drop-off."
Ì

OCC Revises Its Seismic Instructions

OKLAHOMA CITY- Oklahoma's
seismic activity continues to have the attention of the Oklahoma Independent Petroleum Association, says OIPA President
Mike Terry.
Speaking in advance of the group's
annual convention, set for June 5-9 at
the Four Seasons Resort and Club in Las
Colinas, Tx., Terry says OIPA members
are complying with revised instructions
issued by the Oklahoma Corporation
Commission.
"Seismicity certainly is something to
be concerned about," he says. "Everyone
is concerned about these seismic events
and hoping this situation gets better, one
way or the other. There are so many questions and people looking for answers. In

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addition to the OCC, OIPA continues to
work very closely with the Oklahoma
Geological Survey and our member companies, which are providing fault information and complying with the new guidelines. The association is trying to be not
only reactive but as proactive as it can."
Moving past the red light/green light
system that is used to guide saltwater
disposal wells, Terry says the OCC has
released well construction guidelines. If
the bottom of a disposal well ends in the
Arbuckle formation close to basement
rock, he says operators have to plug back
with cement for 100 feet. OIPA members
have been moving ahead under that guidance, and he says operators unable to
comply will be required to reduce injection
pressures and volumes by 50 percent.
"I have not heard of seismic events
impacting any field operations yet," Terry
says. "But industry people are very innovative and they figure out ways to keep
going. Public education is very difficult,
because the only people that get any
media attention are those who are negatively biased."
A.J. Ferate, OIPA vice president of
regulatory affairs, says the association
continues to support increased monitoring
and geophysical research into seismic
events, both to assess the potential impacts
of induced events and to understand how
to reduce the number of those events. He
adds OIPA has formed a working group

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that includes association members, service
companies and state agencies, with a goal
of compiling information about seismic
events in the state.

Agency Responses
An OCC statement affirms that Oklahoma has a longstanding history as a
seismically active state, and seismologists
have not established any direct links between reported earthquakes and oil or
gas activity. The commission adds it and
the geological survey worked collaboratively on seismic research even before
the Prague, Ok., earthquake of 2011, and
are seeking federal grants to fund more
research. OCC says it already has provided
$70,000 to improve the state's seismic
monitoring network.
According to the OCC, in addition to
studying public information, several oil
and gas companies have shared access to
proprietary seismic data. The agency cites
the acquisition of 3-D imaging of the
Wilzetta Fault area as one example of
companies providing data that are deemed
confidential because of their commercial
value.
Several disposal well operators have
reduced injections voluntarily at their facilities or have shut in wells after OCC
inquiries, the agency adds. According to
the OCC, while injection wells have been
the subject of research efforts as well as
a significant amount of public speculation,
most areas of seismic activity have no
operating injection wells, or the events
under study have occurred at depths different from the injection wells' operational
depths.
Although earthquake activity in the
state since 2009 is 40 times higher than
in the previous 100 years, the Oklahoma
Geological Survey indicates a 100-year
time frame is not statistically representative
in geological terms for a plate interior.
The majority of both historical and recent earthquakes are on or near the Nemeha
Ridge, the Ouachita-Arbuckle-Wichita
Mountain front, and other major geological
paleostructures, the agency says. Over
geologic time, these structures have been



American Oil and Gas Reporter - May 2015

Table of Contents for the Digital Edition of American Oil and Gas Reporter - May 2015

Contents
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American Oil and Gas Reporter - May 2015 - Cover3
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