Oil and Gas Production Phase Impacts

Environmental impacts that could occur during the production phase would
mostly occur from long-term habitat change within the oil or gas field,
production activities (including facility component maintenance or
replacement), waste management (e.g., produced water), noise (e.g., from
well operations, compressor or pump stations, and vehicles and
equipment), the presence of workers, and potential spills.

Typical activities during the production phase include: operation of wells and stations
or pump stations, waste management, and maintenance and replacement of facility
components. Potential impacts from these activities are presented below, by the type of
affected resource.

Acoustics (Noise)
The main sources of noise during the production phase would include compressor
and pumping stations, producing wells (including occasional flaring), and vehicle
traffic. Compressor stations produce noise levels between 64 and 86 dB at the station to
between 58 and 75 dB at about 1 mile (1.6 kilometres) from the station. Use of remote
telemetry equipment would reduce daily traffic and associated noise levels within the oil
and gas field area. The primary impacts from noise would be localized disturbance to
wildlife, recreationists, and residents. Noise associated with cavitation is a major
concern for landowners, livestock, and wildlife.

Air Quality
The primary emission sources during the production phase would include compressor and
pumping station operations, vehicle traffic, production well operations, separation of oil
and gas phases, and on-site storage of oil. Emissions would include volatile organic
compound (VOCs), nitrogen oxides, sulphur dioxide, carbon monoxide, benzene,
toluene, ethylbenzene, xylenes, polycyclic aromatic hydrocarbons
(PAHs), hydrogen sulphide, particulates, ozone, and methane. Venting or flaring
of natural gas (methane) may occur during oil production, well testing, oil and gas
processing, cavitation, well leaks, and pipeline maintenance operations. Methane is a
major greenhouse gas. Compounds such as carbon dioxide and hydrogen sulphide
may seep following coal bed methane development. Air pollution oil and gas
production may cause health effects and reduce visibility. Coal bed methane production
may contribute to reducing the threat of global climate change. Methane is one of the
most important greenhouse gases, so utilizing the coal bed methane would decline the
venting of this gas during coal mining. About 4% of methane released to the environment
is from conventional oil and gas wells and 6% is from coal mining.

About 100 tons of coal is brought to the surface during the cavitation process to increase
coal bed methane flow. It is usually burned on site, which can last for up to 10 days. This
can release nitrogen oxides, carbon dioxide, sulphur dioxide, lead, and mercury.

Cultural Resources
During the production phase, impacts to cultural resources could primarily occur from
unauthorized collection of artifacts and from visual impacts. In the later case, the
presence of the aboveground structures could impact cultural resources with an
associated landscape component that contributes to their significance, such as a sacred
landscape or historic trail. Damage to localities caused through off-highway vehicle
(OHV) use could also occur. The potential for indirect impacts (e.g., vandalism and
unauthorized collecting) would be greater during the production phase compared to the
drilling/development phase, due to the longer duration of the production phase.

Ecological Resources
During the production phase, adverse impacts to ecological resources could occur from:

1. Disturbance of wildlife from noise and human activity;

2. Exposure of biota to contaminants; and

3. Mortality of biota from colliding with aboveground facilities or vehicles.

Ecological resources may continue to be affected by the reduction in habitat quality

associated with habitat fragmentation due to the presence of production
wells, ancillary facilities, and access roads. In addition, the presence of access roads
may increase human use of surrounding areas, which in turn could impact ecological
resources in the surrounding areas through:

1. Introduction and spread of invasive non-native vegetation,

2. Fragmentation of habitat,

3. Disturbance of biota,

4. Increase in hunting (including poaching), and

5. Increased potential for fire.

The presence of an oil or gas field could also interfere with migratory and other
behaviours of some wildlife.

Discharge of produced water inappropriately onto soil or into surface water bodies can
result in salinity levels too high to sustain plant growth. One notable impact to wildlife is
the potential for contact with petroleum-based products and other contaminants
in reserve pits and water management facilities. Wildlife can become entrapped in the
oil and drown, ingest toxic quantities of oil by preening (birds) or licking their fur
(mammals); or succumb to cold stress if the oil damages the insulation provided by
feathers or fur. Hypersaline water in evaporation ponds can also cause sodium toxicity.

In locations where naturally occurring radioactive material (NORM)-bearing

produced water and solid wastes are generated, mismanagement of these wastes can
result in radiological contamination of soils or surface water bodies.

In some coal bed methane production areas, methane gas could seep up into fields and
create dead zones where methane-saturated soils could starve roots of vegetation. High
levels of methane could asphyxiate wildlife in their burrows.

Environmental Justice
Possible environmental justice impacts during the production phase include the
alteration of scenic quality in areas of traditional or cultural significance to minority
populations. Noise and health and safety impacts are also potential sources of
disproportionate effects to minority or low-income populations.

Hazardous Materials and Waste Management

Industrial wastes are generated during routine operations (lubricating oils, hydraulic
fluids, coolants, solvents, and cleaning agents). These wastes are typically placed in
containers, characterized and labelled, possibly stored briefly, and transported by a
licensed hauler to an appropriate permitted off-site disposal facility as a standard
practice. Impacts could result if these wastes were not properly handled and were
released to the environment. Environmental contamination could occur from accidental
spills of herbicides or, more significantly, oil. Chemicals in open pits used to store
wastes may pose a threat to wildlife and livestock.

"Fracking" fluids can contain potentially toxic substances such as diesel fuel (which
contains benzene, ethylbenzene, toluene, xylenes, naphthalene, and other chemicals),
PAHs, methanol, formaldehyde, ethylene glycol, glycol ethers, hydrochloric acid, and
sodium hydroxide.

Sand separated from produced water must be disposed of properly, and it is often
contaminated with oil, trace amounts of metals, or other naturally occurring constituents.

During the production phase, large volumes of scale and sludge wastes can accumulate
inside pipelines and storage vessels. These wastes consist of precipitated sulphate and
carbonate scales, produced sand, heavy hydrocarbons, tight emulsions, rust particles,
other metals and chemicals, and salts. They must be removed periodically from the
equipment for disposal. These wastes may be transported to offsite disposal facilities. In
some instances, they may be disposed of via land spreading, a practice that entails
spreading the wastes over the surface of the disposal area and mixing it with the top few
inches of soil. This practice often is done specifically to treat the hydrocarbons present in
these wastes through biodegradation. In some instances, the land spread area is
periodically watered, worked over to remix the soils and increase aeration, and treated
with bio nutrients to further enhance hydrocarbon degradation.

Produced water can become a significant waste stream during the production phase.
Regulations govern the disposal of this waste stream; the majority of it is disposed of by
underground injection either in disposal wells or, in mature producing fields, in
enhanced oil recovery wells (i.e., wells through which produced water and other
materials are injected into a producing formation in order to increase formation
pressure and production).

In some locations, produced water may carry NORM to the surface. Typically, the NORM
radionuclides (primarily radium-226, radium-228, and their progeny) are dissolved in the
produced water but a portion of the NORM can precipitate into solid form in scales and
sludges that collect in pipelines and storage vessels. NORM precipitates could occur on
downhole equipment that is being replaced. Proper management of NORM-bearing
produced water and solid wastes are critical to prevent both occupational and public
human health risks and environmental contamination. NORM wastes generally are a
problem associated with long-term operation of an oil or gas field but can be associated
with the drilling/development phase. The NORM Technology Connection Web site provides
information about the regulation of NORM bearing wastes generated by the petroleum
industry.

Health and Safety

Possible impacts to health and safety during production include accidental injury or death
to workers and, to a lesser extent, the public (e.g., from an OHV collisions with project
components or vehicle collisions with oil or gas workers). Health impacts could result
from water contamination, dust and other air emissions, noise, soil contamination, and
stress (e.g., associated with living near an industrial zone). Potential fires and explosions
would cause safety hazards. Cavitation could ignite grass fires. Increased or reckless
driving by oil or gas workers would also create safety hazards. In addition, health and
safety issues include working in potential weather extremes and possible contact with
natural hazards, such as uneven terrain and dangerous plants, animals, or insects.

In locations where NORM-bearing produced water and solid wastes are generated,
occupational and public health risks may occur if the wastes are not properly managed.
In particular, workers employed in the cutting and reaming of oilfield pipe, removing
solids from tanks and pits, and refurbishing gas processing equipment may be exposed
to particles containing alpha-emitting radionuclides that could pose a health risk if
inhaled or ingested.

Methane seeps into drinking water wells and under homes has caused health hazards. It
is believed that methane seeps increase in areas where coal bed methane is produced.
Removal of water during coal bed methane production could exacerbate the potential for
underground fires by allowing oxygen to circulate within formerly mined shafts or
tunnels.

Land Use
Land use impacts during the production phase would be an extension of those that
occurred during the drilling/development phase. However, to some extent, land use can
revert to its original uses after the major drilling/development phase is over. For example,
farmers can graze livestock or grow crops around the well sites. Other industrial projects
would likely be excluded within the gas or oil field. Recreation activities (e.g., OHV use
and hunting) are possible, although gun and archery restrictions would probably exist.
Project production would deplete recoverable oil and gas reserves. Other mineral
resources (e.g., sand and gravel) would remain available for recovery. Coal bed methane
production may conflict with livestock and farming operations.

Paleontological Resources
Impacts to paleontological resources during the production phase would be limited
primarily to unauthorized collection of fossils. This threat is present once the access
roads are constructed, making remote areas more accessible to the public. Damage to
localities caused by OHV use could also occur. The potential for indirect impacts (e.g.,
vandalism and unauthorized collecting) would be greater during the production phase
compared to the drilling/development phase, due to the longer duration of the production
phase.

Socioeconomics
Direct socioeconomic impacts would include the creation of new jobs and the associated
royalties and taxes paid. Indirect impacts are those impacts that would occur as a result
of the new economic development and would include new jobs at businesses that
support the expanded workforce or that provide project materials, and associated taxes.
Potential impacts on the value of residential properties located adjacent to an oil or gas
field would continue during this phase. A well located in close proximity to a residence
may have a small adverse effect on property values. This effect could increase as the
number of wells increases. Landowners who own the mineral rights within an oil and gas
field would receive royalties on any product removed from their property that could offset
potential impacts to property values. Coal bed methane well located on a residential
property may lower property values, but wells adjacent to a residential property may not
have an effect on property values.

Soils and Geologic Resources

Following construction and drilling, disturbed portions of well and ancillary facility sites
not required for production would be revegetated. This would help to stabilize soil and
geologic conditions. Routine impacts to soils during the production phase would be
limited largely to soil erosion impacts caused by vehicular traffic. Any excavations
required for maintenance would cause impacts similar to those from development, but at
a lesser spatial and temporal extent. The accidental spill of product or other wastes
would likely cause soil contamination. Except in the case of a large spill, soil
contamination would be localized and limited in extent and magnitude. In areas
where interim reclamation is implemented (e.g., reclamation of an individual well is no
longer needed), ground cover by herbaceous species could re-establish within one to five
years following seeding of native plant species and diligent weed control efforts,
consequently reducing soil erosion. The main impact from production would be the
depletion of recoverable oil and gas reserves. Other mineral resources (e.g., sand and
gravel) would remain available for recovery. Possible geological hazards (earthquakes,
landslides, and subsidence) could be activated by oil and gas extraction activities.
Although it is rare, the injection of produced water in disposal wells could trigger
localized seismic activity.

Transportation
Impacts to transportation during the production phase would be similar to those for
the drilling/development phase. However, daily traffic levels, particularly heavy truck
traffic, would be expected to be lower during the production phase compared to the
drilling/development phase. For the most part, heavy truck traffic would be limited to
periodic visits to a well site for workovers, formation treatment, and collection of
produced product or water. The use of pipelines to convey product or produced water to
centralized collection facilities or plants would reduce the volume of traffic during the
production phase. If a pipeline is not used for oil wells, anywhere from one truck
load/month to up to five truck loads/day would be needed.

Visual Resources
Once production facilities are installed, portions of well pads, access roads, and
pipeline rights-of-way (ROWs) that are not needed for production would be reclaimed;
however, much of the disturbed area would continue to contrast with the natural form,
line, colour, and texture of the surrounding landscape. This would impact undisturbed
vistas and areas of solitude. The aboveground portions of an oil or gas development
would be highly visible in rural or natural landscapes, many of which may have few other
comparable structures. The artificial appearance of an oil and gas field may have visually
incongruous "industrial" associations for some, particularly in a predominantly natural
landscape. Any night-time lighting would be visible from long distances. During the
production phase, indirect impacts to visual resources would occur as a result of
production activities (e.g., industrial traffic, heavy equipment use, and dust). However,
human activity would be substantially lower than during the drilling/development phase.

Water Resources (Surface Water and Groundwater)

During the life of a production well, the integrity of the well casing and cement will
determine the potential for adverse impacts to groundwater. If subsurface formations
are not sealed off by the well casing and cement, aquifers can be impacted by other
non-potable formation waters.

Hydraulic fracturing fluids have the potential to contaminate groundwater drinking

reservoirs. Stimulation fluids may penetrate away from the fracture and into surrounding
formation. When stimulation ceases and production resumes, these chemicals may not
be completely recovered and pumped back into the wellbore, and, if mobile, may be
available to migrate through an aquifer.

Most produced water is unfit for domestic or agricultural purposes (e.g., it is extremely
salty or contains NORM or toxic compounds). If it is disposed of by release to the surface
without treatment, it can cause soil and surface water contamination. The majority of
produced water is disposed of via injection in disposal wells or enhanced recovery wells.
Groundwater could be impacted during the injection of produced water if the injection
well casing integrity is compromised. Regulations govern the disposal of produced water
and maintenance of injection wells. If the injection well is not properly completed or is
poorly maintained over time, aquifers can be impacted by the injected produced water.

Other potential impacts to water availability and quality during the production phase
would include possible minor degradation of water quality resulting from vehicular traffic
and machinery operations during maintenance (e.g., erosion and sedimentation) or, if
improperly conducted, application of chlorides in dust suppressants or herbicides for
vegetation management. A spill or blowout could potentially cause extensive
contamination of surface waters or a shallow aquifer. Contaminated groundwater could
potentially be discharged into springs or as base flow into stream channels, leading to
surface water contamination.

Removal of water from coal bed methane fields could diminish or dry springs, streams,
domestic and stock water wells, and sub irrigated lands. Removal of shallow aquifers has
caused land subsidence by as much as 40 feet. This could cause damage to utility
pipelines, building collapses, and damage to roads. In the Powder River Basin, it has been
estimated that a drop of the water level in the aquifer of more than 200 feet has
occurred. It is estimated that water levels could drop a total of 600 to 800 feet over the
course of coal bed methane development. If coal bed methane production causes
aquifers to be depleted, it could force local residents to drill deeper for water.

Discharged water may cause substantial flows in normally dry water bodies such as
ephemeral drainages. Some coal bed methane discharges could contain pollutants such
as arsenic, ammonia, boron, iron, manganese, radium, and fluoride. Increases in salinity,
sodium concentrations, and other soluble pollutants are likely to occur in streams
receiving water discharges from coal bed methane developments. By-products of
underground fires could include PAHs that could potentially lead to contamination of
underground sources of drinking water.