Bulletin – Subsurface Order
The AER released Subsurface Order No. 2 regarding monitoring and reporting of seismicity in the vicinity of hydraulic fracturing operations in the Duvernay Zone in the Fox Creek area of Alberta.
The bulletin notes that during the drilling seasons of 2013/14 and 2014/15, the AER and the Alberta Geological Survey (“AGS”) observed unexpected persistent patterns of seismic events above the background levels near Fox Creek, Alberta. On January 14 and 23, 2015, the AER and AGS observed events exceeding a local magnitude (ML) of greater than 4.0.
The bulletin provides that, until the AER and AGS can further study the seismic events and their connection to subsurface completion operations, the AER is imposing new seismic monitoring and reporting requirements for hydraulic fracturing in the Duvernay Zone in the Fox Creek area. As part of the monitoring and reporting requirements, licensees in the prescribed area must assess the potential for induced seismicity and develop a response plan to address potential seismic events.
The AER is also imposing a “traffic light” system in the prescribed area, whereby:
(a) Operations can proceed as per the AER’s normal requirements if no events are detected;
(b) Observed seismic events of 2.0 ML or greater in the vicinity of operations require a licensee to immediately report the events to the AER and invoke its response plan; and
(c) Observed seismic events of 4.0 ML or greater in the vicinity of operations requires the licensee to cease hydraulic fracturing operations altogether, and will not be permitted to resume operations without the AER’s consent.
