building stronger communities
demonstrating safe regional operations
Protecting people, communities and the environment is our highest priority at Chevron Canada. We share the public's expectation that the energy we need will be produced safely and reliably. Decisions for all our shale and tight oil and gas operations are guided by Chevron’s Operational Excellence Management System, a systematic and risk-based approach to identifying, assessing and managing personal safety and health, process safety, the environment, reliability and efficiency.
The safety of Fox Creek residents and our personnel is paramount. Chevron Canada has demonstrated safe operational performance in the Fox Creek region through the successful development more than 10 pad sites south of the townsite. We have employed advanced mitigation strategies to maintain safe regional operations that go above and beyond the requirements prescribed by the Alberta Energy Regulator (AER), the government’s regulatory body for resource development.
safe operations start here
We use pre-drilling and planning activities to identify areas of potential environmental, geologic or archaeological sensitivity. Such activities may include assessing the subsurface geology to identify and mitigate risks associated with groundwater aquifers, faults and geological pathways, historical wells in the area and shallow gas reservoirs. Well before we move a drilling rig to a site, we have a very clear understanding of what’s beneath the surface to better guide our activities.
We take steps to protect groundwater during hydraulic fracturing and over the life of the well. Our wells have multiple layers of steel casing and cement that form a continuous barrier between the well and the surrounding formations. We perform pressure tests to ensure the well’s integrity, and conduct monitoring and various tests over the life of the well, which may include cement evaluation logs, temperature, acoustic or ultrasonic measures, to verify long-term integrity. Because fracturing is done thousands of meters beneath the groundwater aquifer, the potential for cracks to leak gas or fracturing fluids into groundwater is extremely low.
Stringent regulatory safeguards are in place to protect the environment, including the quality of the groundwater, and minimize the impacts of our operations on Fox Creek.
Chevron operations strive to meet or exceed all regulatory requirements.
hydraulic fracturing regulations
Chevron uses multi-stage hydraulic fracturing technologies in accordance with all regulations prescribed by the Alberta Energy Regulator (AER) and industry best practices.
These requirements are designed to prevent any fracturing fluid from mixing or entering groundwater or surface water sources.
hydraulic fracturing fluid regulations
- Any hydraulic fracturing fluids used above the base of groundwater protection must be non-toxic and companies must reveal the contents of the fluids used upon request.
- The type and volume of any additives used in fracture fluids must be recorded in the daily well operations record for any well and submitted to the regulator.
- Steel casing and full cementing of the wellbore must be in place so that any fluid inside the casing cannot mix with water in underground formations.
- Any produced fluids that are returned to the surface must be handled, stored and disposed of under AER regulations.
- No fluids, including those that have been treated, are ever allowed to be released into a natural body of water.
In addition to the activities noted above, Chevron Canada has also adopted the AER-initiated reporting mechanism, FracFocus.ca, to report fracturing fluids used.
what is induced seismicity?
Induced seismicity is seismicity caused by human activity. Induced seismicity has been associated with several industrial practices such as dam building, mining and hydraulic fracturing.
An induced seismicity event linked with hydraulic fracturing is usually considered a micro-seismic event, which means it registers with a magnitude of less than 3 on the Richter Scale. This magnitude is rarely noticed and the risk of damage or injury is very low.
hydraulic fracturing and seismicity
The energy released by hydraulic fracturing or injections into wells can trigger movement along existing fault lines, leading to induced seismic events.
managing induced seismicity
As an operator in the Kaybob Duvernay area, Chevron complies with all government regulations and meets or exceeds industry best practices.
monitoring, mitigation and response during hydraulic fracturing operations
- We perform subsurface studies to address the seismic risks associated with our operations.
- We complete a detailed risk assessment and submit a response plan to the Alberta Energy Regulator (AER) for use if a seismic event were to occur.
- We monitor seismicity using acoustic sensors.
- We follow the AER’s traffic light system to mitigate risks.
AER traffic light protocol
Duvernay Zone, Fox Creek
|≥ 4.0 ML||cease operations; inform the AER|
|≤ 2.0 ML||inform the AER; invoke response plan|
|< 2.0 ML||monitor; no action required|
Modified traffic light protocol mitigations for 16-14
|≥ 2.0 ML||secondary mitigations - reduce water volumes; reduce proppant; flowback wells; skip stages|
|≤ 1.5 ML||pause operations; reduce pump rates|
|< 1.0 ML||monitor trends for number of events and escalation|
safety protocols that go above and beyond
Chevron employs seismicity monitoring equipment at all of our completions sites. It’s an important step in understanding any seismicity events in real time during our completions operations.
But while seismicity monitoring is a mandatory requirement for all operators during completions, Chevron Canada goes well beyond the regulatory requirements for any pad sites that are close to Fox Creek. We install a local dense monitoring array of between 10-12 additional monitoring stations. This enhanced monitoring capability provides real time detection of very low magnitude events to allow for early mitigation and management of seismicity. The system has proven that we can monitor and identify activity an order of magnitude lower than the regional monitoring system in town.
ten times more conservative than regulatory requirements
In addition to being able to detect seismic events ten times lower than required, we also respond with operational mitigations to any induced seismicity events with a modified Traffic Light Protocol that is ten times more conservative than Alberta Energy Regulator guidelines.
Our strategy of having greatly enhanced monitoring capability that allows us to detect very small events, combined with operational interventions in response that are an order of magnitude more conservative than those required by the regulator, are key components of ensuring safe regional operations, and safeguarding the residents of Fox Creek.
16-14: building upon our track record of proven safe operations in fox creek
Chevron Canada’s 16-14 pad is our final pad to be developed in close proximity to the Town of Fox Creek, based on our current leases. We cleared the site in Spring 2022, and will conduct the first phase of drilling operations in Fall of this year. Completions operations (hydraulic fracturing) would follow in summer 2023.
The 16-14 site will include 12 wells, running from the center of the pad lease diagonally to the northwest and southeast. This diagonal orientation, or 'on-strike', aligns the wells with the makeup of the deep underground resource layout, and has proven to be a key factor in reducing induced seismicity events.
The location of the well pad southeast of Fox Creek was chosen, in part, because of its distance from known fault lines. The area has been indicated as a low risk induced seismic area, and a 3D seismic survey of the area confirmed that no major fault lines are near the planned well locations.
There have also been extensive hydraulic fracturing operations near the town with no significant events detected.
previous community and project updates
Chevron Canada is proposing a pad site southeast of the Town of Fox Creek at our 16-14 location. This location would include three wells that transverse under the town limits below the airport. While these wells are more than three kilometres beneath the surface, we recognize that this development raises questions and concerns among some Fox Creek residents. However, we are confidant that this site can be developed safely, based on our proven safeguards and mitigation strategies that have allowed us to safely develop a number of pad sites in proximity to the Town of Fox Creek.
Chevron Canada has successfully completed its hydraulic fracturing program at the 2-21 site, with the second phase of seven wells finishing in February 2021.
In response to the sudden drop in commodity prices in early 2020, Chevron Canada reduced the total number of wells drilled on the pad from 12 to nine and reduced the total stages from three to two.
During hydraulic fracturing operations for 2-21, Chevron Canada installed eight new monitoring stations in addition to the Nanometrics Duvernay Subscription Array system and the Alberta Energy Regulator’s Geological Survey monitoring at the FOXCA station. This local dense monitoring array was able to provide real-time detection of very low magnitude events to allow for early mitigation and management of seismicity.
In addition, Chevron Canada employed an enhanced mitigation strategy for the 2-21 pad. This modified traffic light protocol features operational interventions that are ten times more conservative than those of the Alberta Energy Regulator.
The strongest induced seismicity event during completions operations was 0.78MI; far below the threshold for what can be felt at the surface. (For more information about induced seismicity, visit the Alberta Energy Regulator website.)
Drilling and completions operations for the 2-21 pad are now complete. Chevron Canada is pleased to demonstrate its ability to operate safely in the Kaybob Duvernay region, and thanks the residents of Fox Creek for their input and understanding.
Throughout the COVID-19 pandemic, Chevron Canada has continued its safe operations in the Fox Creek region. With the guidance of provincial and federal health authorities, numerous safeguards have been used to minimize the potential spread of COVID-19. Daily temperature screening and site-access questionnaires are required at all Chevron sites including rigs, completion operations and camp. Temperature screening also takes place for staff traveling to the Duvernay on crew flights. Additional camp space has been developed to allow distancing and isolation, if needed.
While working, staff must wear a non-medical mask or a mask of greater protection, maintain physical distancing, and ensure proper hygiene practices. Work sites are regularly cleaned and sanitized. Chevron Canada continues to learn more about COVID-19 and regularly reviews its practices to keep its workers and the community safe.
The impact of lower prices has been felt across Canada’s energy industry. To support cost reduction efforts, Chevron Canada has deferred commencement of construction activity for its Fox Creek office. This will be reviewed as a part of 2022 business planning and a decision will be made based on market conditions. Chevron Canada did progress a ready-for-tender design for the office in 2020 in preparation for future decisions.
June 26 2019
Together with members from the Town of Fox Creek and community partners, Chevron Canada on June 26 announced the development of a new Kaybob Duvernay office in Fox Creek, Alberta.
The Chevron Canada office will be situated on a nine-acre parcel in the Fox Creek Iosegun Business Park. Construction is scheduled to begin in late 2019, with completion targeted for year-end 2020.
The development will include a two-storey office building, parking lot and storage yard. The building will support the needs of approximately 60 employees and contractors.
The community of Fox Creek celebrated the official opening of its world-class multiplex facility on February 23, complete with an arena, fieldhouse, workspace and the Chevron Aquatic Centre.
In late 2018, Chevron Canada received regulatory approval on site 2-21 and successfully drilled two wells. In May 2019, Chevron Canada safely and successfully completed hydraulic fracturing operations on both wells. No seismic events above magnitude 0.0 ML were detected throughout the operations.
Chevron used enhanced seismic monitoring throughout its hydraulic fracturing operations (also referred to as completions) at site 2-21. This included a dense array of monitors on site to increase the range of detectible sensitivity. The regional Nanometrics Duvernay Subscription Array system operated in parallel to Chevron’s operations, as did the Alberta Energy Regulator’s Alberta Geological Survey monitoring which included the FOXCA station. These systems did not detect any seismic events during our operations.
Seismic data is available through the Alberta Energy Regulator. Click here to view the Station Waveform Data (Select station FOXCA).
As regulated by the Alberta Energy Regulator (AER), all hydraulic fracturing operations are monitored for seismic activity. A protocol is in place to report if seismic events exceed thresholds defined by the Sub Surface Order No. 2. Visit the AER website for more information about hydraulic fracturing and seismic activity, as well as how it’s regulated in Alberta: https://www.aer.ca/providing-information/by-topic/seismic-activity.
The next step in Chevron Canada’s proposed development plan for the site is to a submit the second of three development permit applications. If approved, Chevron Canada will drill and complete six wells in 2021.
Chevron Canada continues to take a phased approach in developing this area to demonstrate to Fox Creek residents that we can drill and complete wells safely and with no adverse impacts on the community.
If you have any questions, please contact us at CBUCommunity@chevron.com.
Chevron received regulatory approval for the 2-21 site in September 2018, and commenced lease construction September 19, 2018. Chevron plans to drill the initial two wells in December 2018.
On February 26, 2018, Chevron Canada provided a business update to Fox Creek Town Council on the company’s Kaybob Duvernay Program. A key focus was Chevron Canada’s plan to relocate the proposed 06-21-62-19 well pad to a new location farther from Fox Creek. The new location, known as site 02-21-62-19, is 1.63 km south of Fox Creek. This compares to the former 06-21-62-19 well pad, which would have been situated 1.25 km south of Fox Creek.
Here is a brief overview of the proposed development plan for the 02-21-62-19 well pad:
- The 02-21-62-19 well pad was selected after a thorough research and assessment process, including feedback received from Fox Creek Town Council and area residents.
- The pad is situated the farthest distance possible from Fox Creek while still allowing Chevron to retain its mineral rights on six sections of land in proximity to the pad location.
- We plan to take a phased approach to developing the pad so that we can demonstrate to Fox Creek residents that we can drill and complete the wells safely and with no adverse impacts on the community.
- The pad will be designed for up to 12 wells in total, and it is expected that this pad will be fully completed by approximately 2022. It is anticipated two wells will be drilled and completed in the first phase in 2018, followed by six wells in 2019-2020, and another four wells in 2021-2022.
Please find the Chevron Canada well license application (#1908517) for surface location 2-21-62-19-W5 posted on the AER website.
If you have any questions, please contact us at CBUcommunity@chevron.com.
As previously communicated, Chevron Canada has been seeking a land tenure extension to retain expiring mineral rights near Fox Creek, AB.
On January 2, 2018, Chevron Canada was notified by Alberta Energy that our company’s request for a land tenure extension in proximity to the proposed 06-21-62-19 W5 well pad was not granted. As a result, Chevron Canada will present a revised plan to retain the mineral rights at the February 26th, 2018 Fox Creek Town Council meeting.
The public will be able to view the proposed plan on this page following the February 26 town council meeting. If you have any questions, please contact us at CBUcommunity@chevron.com.
Calgary, Alberta, Nov. 6, 2017 – Chevron Canada Limited (Chevron) announced today it is moving into development on a portion of its leaseholdings in the Kaybob Duvernay area of west-central Alberta. The decision follows a successful three-year appraisal program by Chevron.
Chevron Canada will be seeking approval from the Alberta Energy Regulator to conduct drilling and completions operations on the 06-21-62-19 W5 well pad, located approximately 1.25 km south of Fox Creek. If approved by the Alberta Energy Regulator, lease construction would begin in September 2017, with drilling scheduled for August 2018 and completions operations following later in 2018.
Chevron values the feedback it has received from Fox Creek residents on the proposed pad and is taking forward a revised program and schedule that seeks to retain our mineral rights in the area while addressing community concerns.
Key changes to the proposed program include:
- We have reduced the initial number of wells from six to two;
- We have repositioned the initial well drill paths entirely outside of the town limits of Fox Creek;
- We have deferred drilling and completions operations until the second half of 2018 -- the latest time period possible that still allows us to meet land tenure obligations; and,
- We are continuing efforts to obtain a land tenure extension for this pad, and will defer drilling and completions operations if we receive that extension.
We are proud to be supporting several community organizations whose efforts are benefiting residents of the town of Fox Creek.
Chevron Canada holds an industry-leading position in the Kaybob area of the Duvernay formation in west-central Alberta. We are currently conducting an appraisal pad drilling program to evaluate well production rates and reservoir performance. As part of our appraisal program, Chevron is proposing a well pad 1.63 km south of Fox Creek.
The location for the proposed 02-21 well pad was chosen after a thorough research and assessment process. The site location utilizes existing access and right-of-ways, ensuring minimal disturbance to the environment. To ensure we are minimizing our impact on Fox Creek, we had a third-party assess the potential noise impacts of this project. The assessment concluded that drilling and completions noise from the proposed site is expected to be below the existing ambient noise from Highway 43.
Chevron is committed to protecting the health and safety of the public, our employees and contractors, and the environment. All operations on the proposed pad will be conducted in accordance with good oilfield practices and in compliance with all applicable technical standards and regulations. To ensure ground water is protected, well control barriers have been confirmed for each phase of the operation; and subsurface hazards have been identified and mitigation tactics are in place.
In addition to our planning and assessment, the surface location for the proposed 6-21 well pad has been reviewed and approved by the appropriate regulatory agencies, including the Alberta Energy Regulator (AER).
At this time, Chevron has not applied for the well permits for the proposed site.
If you would like to get in touch with us about Chevron Canada’s operations in the Kaybob Duvernay area, please contact our office in Whitecourt.
3460 33 Street
Whitecourt, AB T7S 0A2
Telephone: +1 844 634 5010
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