Presentation to the

1
Presentation to the West Coast Regional Carbon
Sequestration Partnership September 30,
2003 Sacramento, CA Michael S. Bruno, Ph.D.,
PE Terralog Technologies USA, Inc. www.terralog.c
om
2

• Presentation Outline
• Terralog background and analysis/regulatory
  activities
• Geologic, geomechanical, and regulatory issues
  for CO2 geologic sequestration
• Regulatory Framework
• Transport
• Injection Surface Facilities
• Subsurface Injection and Storage
• - EOR
• - Sequestration Only
• Public Outreach Tied to Regulatory Efforts
• Future Efforts and Contributions

3
TTI
Terralog Technologies Inc. www.terralog.com
Advanced Geomechanics from the wellbore to
reservoir scale
Compaction and Subsidence Analysis Well Damage
Analysis and Design CO2 and H2S Geologic
Sequestration
Gas Storage Reservoir and Cavern Mechanics EP
Waste Deepwell Injection Biosolids Injection and
Gassification
Los Angeles [phone]
Jakarta (62) 21-727-98129
Calgary [phone]
New Orleans [phone]
4
Geomechanical analysis from reservoir scale to
wellbore scale (permit requirements at both
scales)
Component Scale
Reservoir Scale Model
Near-well Scale
5

• Geomechanical Analysis of Gas Reservoirs
• Gas Storage and Recovery
• Optimize storage capacity and deliverability
• Evaluate and maintain storage reservoir
  integrity
• Evaluate and maintain storage well integrity
• Gas Reservoir Production
• Compaction and subsidence analysis
• Induced faulting and seal/caprock damage
• Well casing damage analysis and mitigation
  designs
• Geologic Sequestration of CO2 and H2S
• Optimize storage capacity and injectivity
• Evaluate and maintain storage reservoir
  integrity
• Evaluate and maintain injection well integrity

6
CO2 Geologic Sequestration Regulatory
Framework Applicable Legislation Federal
Regulation (SDWA, RCRA) - UIC program State
Regulations (CEQA) - ARB, RWQCB Local
Regulations (zoning laws) Primary
Motivation Protect Health, Safety, Environment
(air, water)
7

• Regulations and Permit Requirements for
• Capture
• Transportation
• Surface Injection Facilities
• 4. Subsurface Injection (wells and operations)

Underground Injection Permit Process Designed to
Confirm Reservoir Integrity and Well Integrity to
Maintain Containment of Injectate in Target
Interval
8
Potential CO2 Migration Mechanisms in
Subsurface 1. Fracturing 2. Faulting 3.
Permeation and Spillover 4. Well integrity
(cement damage)
Injection well
Offset well
9
wells
A
channel plan view
sandstone
A
draped beds
erosional truncation
limestone
horizontal well traces
shale
anhydrite
cap rock
sands, gravels
dolomite
reef structure
shales, silts
zone of elevated porosity
a. Carbonate reef with closure for gas storage
b. Channel sand of limited length
Reservoir type, depth, stress conditions will
influence likelihood of various loss mechanisms,
supported by geomechanical analysis
10
c. Stratigraphic trap for gas storage development
Reservoir type, depth, stress conditions will
influence likelihood of various loss mechanisms,
supported by geomechanical analysis
11

• Injection Well Classifications and Permits
• Class I non-hazardous industrial waste
• CO2 injection for disposal
• oil and gas processing plant fluids
• Class II injection for EP activities
• CO2 injection for EOR
• produced water and gas re-injection
• Class V injection for experimental technologies
• biomass injection with CO2 sequestration

12
Terminal Island Renewable Energy Project
Bureau of Sanitation Department of Public
Works January 27, 2003
13
Biosolids Treatment Technology Demonstration 1.
Inject biosolids into deep geologic
formations 2. Allow material to undergo natural
process of high-temperature anaerobic
biodegradation, instantly (within 24 hrs)
sterilizing the material and over time (60-90
days) converting it to methane and carbon
dioxide 3. Design process to capture and
sequester generated C02 in formation water 4.
Store or recover high purity methane for
beneficial use
14
Environmental Advantages for Deep Subsurface
Treatment
3. Renewable Clean energy
Gas to Energy Facility
2. Reduce greenhouse gas emissions
CO2
landfarms
4. Reduce transport env. impact and costs
Fresh water sand
Mud/shale
Fresh water sand
Sealing shale
Brine filled sand
Sealing shale
Brine filled sand
Long-term carbon sequestration
1. Enhanced treatment and groundwater protection
15

• Injection Permit Process and Key Requirements
• 1. Geologic Review
• 2. Injection Simulation
• Well Review
• Operating Plan
• Monitoring Plan

16

• Geologic Review Components Include
• Structure and isopach maps
• Cross section maps
• Reservoir and fluid characterization
• 4. Seismic data if faulted

17

• Well Review Components Include
• Well location and depths (up to 2 mi AOR)
• Well schematics
• Cement coverage and integrity ( TOC, CBL)

1 mile
Many California oilfields have high well density
18

• Public Outreach Tied to Regulatory Efforts
• Key concerns
• Is it safe ? (accidents, health risks,
  earthquakes )
• What disruption in normal life patterns (access,
  traffic)
• Appropriate communication with stakeholders
• Looking for grudging acquiescence or informed
  support ?
• React or anticipate and engage ?

19
Terralog Project Efforts and Contributions
Include Task 1. Review, document, and
summarize current state and federal regulations
related to carbon capture and sequestration
technologies Task 2. Evaluate and
summarize permitting requirements for carbon
capture and sequestration technologies Task 3.
Review and summarize proposed new regulations
under consideration by state and federal agencies
that may impact carbon capture and sequestration
activities. Task 4. Identify potential gaps,
regulatory uncertainties, or possible conflicting
regulations and jurisdictions associated with
carbon capture and sequestration policies PHASE
II Permitting efforts for pilot, geomechanical
support