MuskwaKechika Management Area

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Muskwa-Kechika Management Area Heliportable
Drilling Feasibility Study
Randal Glaholt and Lois Pittaway TERA
Environmental Consultants
in association with Brian Churchill Chillborne
Environmental Services Harris Wheeler AAEA Ltd.
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Issues

• Regulatory/Policy
• Environmental
• Technical
• Economic

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History of Heliportable Drilling

• gt 20 years heliportable drilling
• Approximately 200 heliportable wells
• South America, Indonesia, New Guinea, New
  Zealand, Wyoming, Mackenzie Delta

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Previous Heliportable Evaluations in BC

• Projects
• Industry rejection cost and safety
• Government rejection uncertainty around
  environmental risk associated with blow-outs and
  safety

• Amoco Canada Petroleum Company Ltd. (Beattie
  Peaks, 1991)
• Talisman Energy (PCP Falls, 1994)
• Imperial Oil Limited (Belcourt Creek, 1995)
• Murphy Oil Company Ltd. (Sikanni, 1996)

• Husky Oil Operations Ltd. (Sikanni, 1996)
• Murphy Oil Company Ltd. (Chicken Creek, 1999)
• Ricks Nova Scotia Co. (Ladyfern, 2000)
• Marathon Canada Ltd. (Koller Creek, 2001)

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Regulatory and Policy Review

• Petroleum and Natural Gas Act
• Workers Compensation Act
• Oil and Gas Commission Act
• MK Management Area Act
• BC Maximum Disturbance Review Criteria
• No explicit exclusion of heliportable drilling
• Promote responsible development, safety,
  environmental protection and socio-economic
  benefit

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ENVIRONMENTAL EVALUATION
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Impact of Roads

• long duration (2years)
• erosion, sedimentation
• habitat removal, fragmentation
• access for hunting and fishing, wildlife

• wildlife displacement
• animal-vehicle collisions
• landscape aesthetics
• weed dispersal

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Impact of Helicopters

• short duration (e.g., months)
• wildlife displacement
• noise pollution
• reduced large spill response
• reduced potential for vehicle spills

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TECHNICAL EVALUATION
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Key Technical Issues
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Drilling Rig Availability and Capability

• Drilling rigs with 3,400 m depth capability
  available in North America
• Drilling rigs with 5,400 m common internationally
• Heliportable service equipment is available

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Helicopter Availability and Capability

• Drilling Rig Mobilization
• heavy lift helicopters (e.g., Chinook 234,
  Sikorsky S-64)(10,000 kg capacity)
• readily available
• Routine Service
• medium lift helicopters (e.g., Bell 212, A-star)
• readily available

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Blow-outAvoidance and Control

• Low probability (e.g., 0.31,000 wells or
  13,333 wells)
• Proper planning
• Experienced and supervised crews
• Stockpiling supplies and BOP equipment
• Rig ignition in minutes
• Relief well typically not required

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Safety

• Many remote industrial operations without 24 hour
  access
• Require standard OHS risk assessment, OHS
  Schedule 1 compliance
• Road access not the first means of emergency
  response
• Require well trained, experienced and supervised
  crew

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ECONOMIC EVALUATION
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Key Cost Considerations
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Major Direct Heliportable Cost Factors

• Size of rig
• Duration of drill
• Contingency stockpiling and backhauling
• Stand-by charges (relief rig, heavy equipment)

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CONCLUSIONS AND RECOMMENDATIONS
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Key Findings

• Significant environmental benefits in many cases
• Heliportable rigs and support service equipment
  are available
• Worker safety and sour gas well control concerns
  can be managed
• Heliportable drilling will tend to be more
  expensive where short and/or simple access is
  required

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Critical Site Factors

• Environmental Sensitivity
• Availability of Low Impact Alternatives
• Helicopter Site Risk
• Blow-out Risk and Sour Gas

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Decision Making Options

• Assess tradeoffs and alternatives
• Assess and numerically score critical factors
• Require heliportable by location
• Require heliportable by circumstance
• Company vs. government decision

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Recommendations

• Include heliportable drilling as an MK management
  tool
• Develop a Policy and Best Practices
• Suitability mapping
• Implement a Pilot Study
• Consider financial incentives
• Investigate feasibility of heliportable
  production and operations