January 2016 Outcrop

OUTCROP Newsletter of the Rocky Mountain Association of Geologists

Volume 65 • No. 1 • January 2016

2016 Summit Sponsors

Silver Sponsor

Become a 2016 Summit Sponsor.

Visit www.rmag.org to ďŹ nd out more.

The deadline to submit 2016 Summit Sponsorship is January 31, 2016.

OUTCROP | January 2016

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Vol. 65, No. 1 | www.rmag.org

OUTCROP The Rocky Mountain Association of Geologists

910 16th Street • Suite 1214 • Denver, CO 80202 • 303-573-8621 The Rocky Mountain Association of Geologists (RMAG) is a nonprofit organization whose purposes are to promote interest in geology and allied sciences and their practical application, to foster scientific research and to encourage fellowship and cooperation among its members. The Outcrop is a monthly publication of the RMAG.

2016 OFFICERS AND BOARD OF DIRECTORS PRESIDENT

John Ladd john.ladd@discoverynr.com PRESIDENT-ELECT

1st VICE PRESIDENT

John Roesink jroesink@jaggedpeakenergy.com SECRETARY

Larry Rasmussen larryr@whiting.com

Sarah Hawkins shawkins@usgs.gov

TREASURER-ELECT

1st YEAR COUNSELOR

Karen Dean deankaren@comcast.net

Rob Diedrich rdiedrich@sm-energy.com

2nd VICE PRESIDENT

TREASURER

Kelly Foley foleykk@gmail.com

Tom Sperr tsperr@bayless-cos.com 2nd YEAR COUNSELOR

Jane Estes-Jackson Jane.estes-jackson@mcelvain.com ADVERTISING INFORMATION

Rates and sizes can be found on page 24. Advertising rates apply to either black and white or color ads. Submit color ads in RGB color to be compatible with web format. Borders are recommended for advertisements that comprise less than one half page. Digital files must be PC compatible submitted in png, jpg, tif, pdf or eps formats at a minimum of 300 dpi. If you have any questions, please call the RMAG office at 303-573-8621.

Ad copy, signed contract and payment must be received before advertising insertion. Contact the RMAG office for details.

DEADLINES: Ad submissions are the 1st of every month for the following month’s publication.

RMAG STAFF EXECUTIVE DIRECTOR

Carrie Veatch, MA cveatch@rmag.org MEMBERSHIP & EVENTS MANAGER

Hannah Rogers hrogers@rmag.org ACCOUNTANT

Carol Dalton cdalton@rmag.org MANAGING EDITOR

Will Duggins will.duggins@i-og.net ASSOCIATE EDITORS

Holly Sell holly.sell@yahoo.com Greg Guyer Greg.Guyer@halliburton.com Cheryl Fountain cwhitney@alumni.nmt.edu Andre Scheinwald aschein33001@gmail.com DESIGN/PRODUCTION

Nate Silva nate@nate-silva.com

WEDNESDAY NOON LUNCHEON RESERVATIONS

RMAG Office: 303-573-8621 | Fax: 303-476-2241 | staff@rmag.org or www.rmag.org The Outcrop is a monthly publication of the Rocky Mountain Association of Geologists

Vol. 65, No. 1 | www.rmag.org

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Outcrop | January 2016 OUTCROP

RMAG 2015 NOVEMBER BOARD OF DIRECTORS MEETING

By Stephanie Gaswirth, Secretary sgaswirth@usgs.gov

KES T

The November meeting of the RMAG Board of Directors took place on November 18, 2015 at 4 p.m. I was out of the country and unable to attend, so President-Elect John Ladd took the meeting minutes in my absence. Treasurer Paul Lillis reported another solid month for RMAG financially. The November luncheon was well-attended, and speakers are lined up through February 2016. The Continuing Education Committee is working on an AAPG Distinguished Lecturer for the spring of 2016. The DPA Playmakers Symposium has been set for March 24, 2016 at the Marriott. Mark your calendars! In other continuing education news, IHS will be offering free Petra and Kingdom training to unemployed and student RMAG members in January and February.

The RMAG Source Rock Publication is moving along, and will most likely be published in the second quarter of 2016. Finally congratulations and welcome to the 2016 Board of Directors. My terrific colleague at the USGS, Sarah Hawkins, will be filling my shoes in the coming year!

C

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OUTCROP | January 2016

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Vol. 65, No. 1 | www.rmag.org

OUTCROP Newsletter of the Rocky Mountain Association of Geologists

CONTENTS FEATURES

DEPARTMENTS

16 Preview: 22nd Annual 3D Seismic Symposium

4 RMAG November 2015 Board of Directors Meeting

26 Lead Story: Deep in the heart of Butte, A Special Report, Part 2 ASSOCIATION NEWS 2 RMAG 2016 Summit Sponsors 23 3D Seismic Symposium 25 C. Elmo Brown Presented with 2015 President’s Award 29 RMAG Mentorship Program 31, 33 RMAG/DAPL Geoland Ski Day

6 President’s Letter 12 RMAG Luncheon programs: Speakers – Pete Stark & Steve Trammel 13 In The Pipeline 14 RMAG Luncheon programs: Speaker – Matt Silverman 24 Welcome new RMAG members!

24 Outcrop Advertising Rates

COVER PHOTO View looking west from the top of Trail Ridge Road, Rocky Mountain National Park.

Photo by Will Duggins.

35 Advertiser Index 35 Calendar

Vol. 65, No. 1 | www.rmag.org

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OUTCROP | January 2016

PRESIDENT’S LETTER

By John Ladd

Things Are Not Always the Way They Seem

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people working in the oil business. The answer, of course is that when I agreed to run, business conditions were anything but like they are now. I remember the day when Matt Silverman called me to ask about it.

It was the day of my daughter’s

OUTCROP | January 2016

per barrel and today’s front page of The Wall Street Journal is staring at me with the headline “Low Prices Catch Up With U.S. Oil Patch.” You might wonder why anyone would want to take over as head of a non-profit professional organization made up of and supported primarily by

The time has long passed when new RMAG presidents simply had to choose one formal studio picture to use for all of their monthly columns in The Outcrop. Now we are expected to use our creativity to come up with a series of photos taken in unique or unusual settings, whether it is in front of spectacular outcrops, in some exotic, foreign locale, or even a series of photos from our youth. Never one to shy away from meaningless competition about inconsequential things, I decided I should use the attached photo for my first column, and then instead of telling you where it was taken, ask you to try and figure out where in the world I might have been. Two hints: the object in my right hand is a GPS device and the theme for this column, if there is one, is that things are not always the way they seem.

As I write this, oil prices have just dropped below $40

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Vol. 65, No. 1 | www.rmag.org

13TH ANNUAL

Upcoming Education Courses

World-Class Education Conference HOUSTON, TEXAS FEBRUARY 29-MARCH 4, 2016

Courses Include: u Deepwater Reservoir Connectivity u Fluvial Sedimentology and Geomorphology u Applied Seismic Geomorphology and Seismic Stratigraphy – Extracting Geologic Insights from 2D and 3D Seismic Data u Carbonate Reservoir Geology: Understanding Depositional and Diagenetic Factors Controlling Porosity u Carbonate Depositional Systems u Applying Ideas of Carbonate Sedimentology, Stratigraphy and Depositional Environments to Petroleum Exploration and Production u Extracting Geology from Seismic Wiggles: Basic Seismic Interpretation for Non-Geophysicists u Integrating Data from Nano- to Macro-Scale: Improving Characterizations of Unconventional Plays u Essentials of Production Geology u Shale Gas Geomechanics u Applications of Stable Isotope Geochemistry in the Petroleum Geosciences u Log Analysis of Shaly Sand Reservoirs u Log Analysis of Hydrocarbon-Bearing “Shale” Reservoirs Hosted by:

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Phone: 713-590-0950 Fax: 713-590-0961

Registration and Information

Call AAPG toll free in the U.S. and Canada at 888.338.3387 or 918.560.9430 F: 918.560.2678 • E: educate@aapg.org W: www.aapg.org/career/training/in-person/education-conference

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February 29-March 4, 2016 - Houston, Texas

Education

Vol. 65, No. 1 | www.rmag.org

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OUTCROP | January 2016

President’s Letter a strong wind picked up in the afternoon. I was glad the wedding had been the day before. The following morning, it was already hot when we were packing the car to leave. As we drove east out of the mountains and into the Columbia Basin, the blue sky suddenly turned yellow-brown. We came around a bend in the valley and discovered that the hillside in front of us was on fire, the dry grass burning quickly in the heat and low humidity. We kept on driving and didn’t think much more of it. We had a nice time at Glacier, with several great hikes, but the views were obscured by haze. I wasn’t paying attention to the news but we heard from other visitors that there were forest fires in the region, maybe in Canada, and the haze was from all the smoke they produced. It wasn’t until we were listening to the radio while driving back to Denver that we heard that the main fire was on the east side of the Cascades. It had burned down one of the towns we had driven through to get to the wedding site and was threatening the main town in the valley where we had shopped for groceries. All roads in the area were closed, power was out and the valley was filled with smoke. What had seemed like an

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wedding, in the first week of July two summers ago, just a couple of weeks after WTI hit what now seems like an almost mystical $107 a barrel. I was inclined to accept the offer. After all, what better time would there be to run RMAG? Companies were expanding in Denver, almost everyone I knew who wanted to be working had a job, sponsorship money and advertising revenue were pouring into the organization. What possibly could go wrong? I told Matt that the wedding was in the North Cascade Mountains in Washington State and that afterwards my wife and I were going to go to Glacier National Park to unwind for a few days before driving back to Denver.

I would have to get permission from my employer first before agreeing to run, so I couldn’t make a final decision for about 10 days, but I would probably accept. The wedding went great, an outdoor ceremony in an idyllic spot under bluebird skies and warm but not hot temperatures, and the reception continued long into a lovely evening. By coincidence, the next day happened to be my daughter’s 30th birthday, so we had agreed to stick around for a day and have a low key celebration. It was much hotter and

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Providing Geosteering Services and Software Solutions for Over 20 Years

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1.303.249.9965 www.horizontalsi.com

VOLUNTER! OUTCROP | January 2016

As a diverse community of individuals working towards a worthy cause, we believe that your unique talents can bring us all forward. Volunteers are always needed and welcome!

If you would like to volunteer for any of our committees or events, please contact the RMAG office at (303) 573-8621 or staff@rmag.org

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Vol. 65, No. 1 | www.rmag.org

PTTC Presents: Workshops to Improve Your Skills Basic Well Log Interpretation

Tuesday – Thursday, January 12-14, 2016, 8:30 am – 5 pm, Colorado School of Mines, Ben Parker Student Center Ballroom A Fee: $750, includes food at breaks, class notes, and PDH certificate Instructor: Dr. Dan Krygowski, The Discovery Group, Denver, CO

The course assumes no logging knowledge, and seeks to establish an understanding of basic petrophysical measurements and interpretation techniques which can be applied to routine tasks, and upon which more complex and advanced information and techniques can be built.

The course:    

Offers a "hands-on" approach to basic openhole well log analysis and interpretation.

Focuses on the traditional interpretation targets of lithology, porosity, and fluid saturation.

Introduces a variety of interpretation techniques in the context of the availability of newer, more extensive, data Is organized by the targets, or goals of the measurements, rather than by the physics of the measurements.

The course strives to provide a strong and coherent foundation for the understanding of other, specialized interpretation techniques involving well log data, which are not covered here.

Course topics include:     

An overview of petrophysical well log data acquisition Description of correlation/lithology, porosity, and resistivity logs Determination of lithology, porosity, and fluid saturation from logs Interpretive techniques using logs individually and in combination Interpretation exercises to reinforce the interpretation methods discussed

      

Measurement goals Physics of the measurement, including the volume of investigation Operational parameters; conditions under which the measurement is best made Measurement names; tool and curve names from different vendors Log example; usually in the context of other measurements Interpretation details; details of the measurement goals Secondary effects: the environments and assumptions which affect the measurement and its interpretation Environmental corrections Quality control An exercise related to the primary interpretive goal

Equipment Needed: Calculator with exponent functions, straight-edge, pencil or pen.

Topics for each of the log measurements follow the same sequence and information:

  

RQ Toolkit: Using Rock Data for Reservoir Quality Assessment

Wednesday, January 26, 2016, 8:30 am – 5 pm, Colorado School of Mines, Ben Parker Student Center Ballroom E Fee: $250, includes food at breaks, class notes, and PDH certificate Instructor: Joann E. Welton, Houston TX

By the end of the course, participants should have a basic understanding of the following:  What are the primary controls on reservoir quality, including the importance of clay and its impact on both quality (porosity, permeability and Sw) and log response  Be able to select the appropriate analytical tools to address common RQ problems  Be able to design a cost-effective RQ sampling plan and analytical program which can be used for a variety of purposes, ranging from reservoir prediction modeling to qualitative RQ assessments  Know how to request and QC, typical RQ vendor products  Understand the importance of integrating RQ data with sequence stratigraphy and basin modeling etc. to enhance reservoir prediction and identify anomalous porosity zones.

Class Descriptions and Register Online: www.pttcrockies.org

For more information, contact Mary Vol. 65, No. 1 | www.rmag.org 9 Carr, 303.273.3107, mcarr@mines.edu OUTCROP | January 2016

President’s Letter business back then, you know it was 1986 when things really got bad. You might think that as a result, the RMAG would be hurting financially. But remember, things aren’t always the way they seem to be, and this time it’s for the better not the worse.

We are finishing up the year with financial reserves that are probably greater than any time in the nearly 100 years that the organization has existed and will show a healthy surplus for the year even though we ran 30 different events.

How is that possible? Part of it is timing. Once every six years the AAPG Convention is held in Denver and RMAG acts as the host society. This means we get a share of the profits from the convention and the funds we have or will receive from AAPG will make up the bulk of this year’s surplus. But a major reason is that RMAG has become a much more efficiently run organization than it was a few years ago. We have cut out or reduced a lot of the expenses in our operations. When I was Treasurer in 2008, the budget was over $800 thousand, now it is only a little over $500 thousand with no reduction in services

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idyllic place just a few days ago was about to turn into something like hell on earth. Perhaps I should have taken this as an omen!

Of course I didn’t, my boss was fine with me running, and I told Matt I would run. Almost immediately oil prices began to soften and continued to go down throughout the fall. The election was in November and I was informed that I had won just a couple of days before Thanksgiving, the day, you probably remember, when the Saudi oil minister held a news conference to announce that his government was only concerned with protecting market share, not holding up prices and that they would not agree to any production cuts at the upcoming OPEC meeting. The same day, oil prices plummeted to almost $40. I remember thinking, what have I got myself into?

Nothing much good has happened in the oil patch since then. Several companies have closed their Denver offices, many others have had layoffs. It sort of feels like 1985 all over again, and for those who are old enough to have been around the

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THE BOOK CLIFFS, UTAH: A CASE STUDY IN COASTAL SEQUENCE STRATIGRAPHY

W.W. Little Geological Consulting, LLC 2016 Schedule 15-19 August 29 Aug – 2 Sept By arrangement

$3500 Professional/$2500 Student Information and registration: http://littleww.wordpress.com wwlittle@gmail.com

Daub & Associates, Inc. SPECIALIZING IN PROFESSIONAL GEOLOGICAL, ENVIRONMENTAL, HYDROLOGICAL, GEOTECHNICAL AND PERMITTING SERVICES

Gerald J. Daub, P.G., C.P.G.      

OUTCROP | January 2016

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President

gjdaub@daubandassociates.com www.daubandassociates.com

Vol. 65, No. 1 | www.rmag.org

President’s Letter or events. This has been achieved through a variety of means. First, in 2009, we moved the office a block down 16th Street to a building with cheaper rent, then followed that in 2013 by switching to a smaller space in the same building. About the only thing we lost was the ability to hold meetings in the office, but the building has a large meeting room available to tenants that we use for board meetings. It works just fine, just as long as you don’t look at the chairs too closely.

Then there are publications which were switched to digital from hard copy, first special publications, and then The Outcrop, followed by The Mountain Geologist. I know, we have heard a lot of complaints from members about how they miss getting a paper copy of The Outcrop in the mail every month, but printing is like medical care and college tuition, it keeps going up faster than the inflation rate, and at some point we had to stop. Advertising used to offset the cost of printing and mailing the Outcrop, now it is a source of profit that we can use to subsidize continuing education events. Even The Mountain Geologist often breaks evenJune or makes surplus, especially if some of 21sta small On-theContinuedtofrom the authors’ employers paypage for 43 Rocks Field Tripkick in some money expenses. Part of the benefit of forming the Corporate Advisory Board in 2014 was to discover ways that created might a sensational buzzwith in the scientific community companies help RMAG in-kind donations, and elsewhere is testimonial to excellent research always easier to do during times of low oil prices. conducted

by Dr. Siddoway, her students and her Most important was getting permission to use collaborators.

The members of the OTR field trip, large meeting spaces at company offices to hold on the longest dayand of the year, were to catchand a bitnow of that short courses lectures, first able at Newfield magic. As a final act of closure, the skies opened up as at Encana. we drove back to collect our cars at the Visitor’s Center.

Finally there’s the lunch venue. Costs at the MarriDime-sized hail pelted the group and made continued ott were going up so much that we felt we had to subdiscussion, and even goodbyes, impossible. What sidize luncheons so as not to cut into attendance too started as a nice day with great potential turned into a much. We moved to Maggiano’s at the beginning of highly memorable learning experience with impact.

2015, where costs were lower, and since most mem: bersReferences like the food better the attendance has gone up.

Myrow, P.M., Taylor, J.F., Miller, J.F., Ethington, R.L., Ripperdan, Now weR.L., actually make a smallFallen profitArches: on theDispelling luncheons, and Allen, J., 2003, Myths Concerning Cambrian and threshold Ordovician Paleogeography of the assuming we reach a certain of attendance, Rocky Mountain Region: Geological which we have almost every month.Society of America Bulletin, v. 115, no. 6, p. 695–713 Last, butC.,hardly the ongoing effortsStructures, by Siddoway, Myrow,least, P., andare Fitz-Díaz, E., 2013, Strata, and Enduring Enigmas: ADirector, 125th Anniversary Appraisal Carrie Veatch, our Executive and her staff to of Colorado Springs Geology, in Abbott, L.D., and Hancock, keep operational costs down and develop new sourc-G.S., eds., Classic Concepts and New Directions: Exploring 125 Years es of revenue.

They are indoing a great job and deserve of GSA Discoveries the Rocky Mountain Region: Geological Society of America Field Guide 33, p. our thanks.

331–356.

Siddoway, C, Shatford, S. and Contreras, A. A. Reactivation of CambrianVol. 65,2013, No. ARMO 1 | www.rmag.org Ordovician or Older Structures: Detrital Zircon Evidence from “Structureless” Sandstones of the Souther Front Range

This is all good news for 2016. The board feels that it is important to run a full slate of events, even though this means we will be running a deficit. The amount is small compared to our savings and the events can be important resources for members who are between jobs, both to keep their skills up to date and to network. We also plan, at present, to continue to offer discounts to certain events for unemployed members. With luck, both RMAG and all of our members will weather this downturn without too much financial damage.

Finally, about that photo. I assume anyone who looked at it figured out I was climbing a mountain somewhere. The climbing rope and helmets sort of gives that away. But how many of you figured that I was only about a mile away from the Equator? Yes, the photo was taken on the summit of Volcan Cayembe in Ecuador, elevation 18996’ and latitude 0.0333°N, the one place in the world where you can cross the equator on snow and ice. As I said, thing aren’t always the way they seem to be.

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LOCATION we’ll lease it, permit it, gather it and sell it

your ideas - we make them happen LEASING - PERMITTING - DAMAGES - ROW

303-279-0789 11

OUTCROP | January 2016

Lario Oil & Gas Company

RMAG LUNCHEON PROGRAMS Speakers: Pete Stark & Steve Trammel — January 6, 2016

The Petroleum Industry Resets – Perspectives on the Road Ahead Pete Stark, Senior Research Director and Advisor, IHS Steve Trammel, Research Director and Advisor, IHS Predicting when oil markets will rebalance is tricky with multiple global factors –reduced demand growth, Saudi Arabia’s decision to defend its market share and pending revival of Iran’s production – putting the onus on U.S. tight oil producers to reduce supplies. An IHS scenario indicates that an extended period of $45 oil could drive sufficient reduction in U.S. tight oil production to rebalance the oil market in mid-2016. It may take longer as cost reductions and performance enhancements introduced by producers have slowed the rate of projected U.S. oil production declines. Unfortunately, natural gas is not in position to come to the rescue. At this writing, it looks like U.S. 2015 gas storage levels will set

Global oil markets continue to be significantly oversupplied and U.S. gas producers seek new markets to absorb surplus gas supplies. During first quarter 2015 there was room for hope that markets would rebalance by end of the year and that oil and gas prices would begin a gradual recovery. Unfortunately, multiple factors indicate that oversupplies and price pressure will remain well into 2016. Early November 2015 WTI oil price at around $44.00 per barrel and spot gas price around $2.30 per Mcf, both less than half their corresponding 2014 highs, may look good for several months ahead. As a result, a fundamental restructuring of the oil and gas industry is underway as companies “reset” operations to be profitable in a lower price environment.

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Philip H. “Pete” Stark is Senior Upstream Research Director and Advisor for IHS Energy in Englewood, Colorado.

Prior to joining IHS in 1969, Stark was an exploration geologist for Mobil Oil. Dr. Stark has authored papers on E&P databases, hydrocarbon shows, horizontal drilling, US natural gas, global oil and gas resources, global E&P trends, giant fields and unconventional O&G. He coauthored special IHS studies of North American gas supplies, unconventional gas supplies, North American and

OUTCROP | January 2016

global tight oil and global reserves replacement. Pete has participated in the AAPG Resources Committee and AAPGSPE and Hedberg resource research conferences. He has served on the AAPG Corporate Advisory Board and boards of the AAPG International Pavilion and PPDM. Previously, he was chairman of the Board of Visitors for the University of Wisconsin Department of Geology and Geophysics. Dr. Stark holds a BSc in geology from the University of Oklahoma and MSc and PhD degrees in geology

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from the University of Wisconsin. The University of Wisconsin Department of Geology and Geophysics honored Dr. Stark’s contributions to the university and profession with a Distinguished Alumni Award. Pete received a 2011 Honorary Member Award from the American Association of Petroleum Geologists, the 2011 IHS Chairman’s Award and the 2015 COGA Lifetime Achievement Award.

Pete also was named to the Denver and Houston Business Journal’s “Who’s Who in Energy” publications.

Vol. 65, No. 1 | www.rmag.org

RMAG LUNCHEON PROGRAMS producing countries. The long term outlook also will be challenged by increasing public clamor to dramatically reduce fossil fuels – especially “dirty” oil – and with only limited accommodation for natural gas as a “transition” fuel to renewable energy. Currently, there is no silver bullet in sight to levitate wind and solar to much more than 22% of global electric power generation (about 4% of total energy consumption) by 2040. But there is a huge gap in the public perception and realities about the magnitude of the undertaking to migrate to a cleaner energy future. The petroleum industry may be increasingly challenged to educate public and policy makers about the critical role of oil and gas in energy and climate change solutions.

a new all-time record of more than 4 Tcf on the cusp of a possible mild winter influenced by a strong “el niño pattern. If this outlook prevails, sub-$2.00 per Mcf gas prices could return during first half of 2016. All eyes will focus on the “mighty Marcellus” to understand future trends in gas supplies. What is the breakeven price for recent Marcellus wells that may produce 2.2 to 2.8 Bcf per 1000 lateral ft. at a cost of $860M to $1 MM per 1000 lateral ft?

Meanwhile, companies are taking meaningful actions to further reduce costs in response to the challenging 2016 outlook.

Additional budget cuts, workforce reductions, rig cancellations, cost cutting initiatives, asset rationalization, heightened emphasis on capital discipline

and standardization are all part of the industry reset. Hopefully, 2016 will not provide another “deja vu all over again” repeat of “staying alive in ‘85”. Both oil and gas prices are expected to resume positive trends during the last half of 2016.

The long term outlook for oil and gas through 2040 also is positive. An IHS base case scenario projects that 2040 oil and gas consumption will be about 53.6% of total world energy consumption – about the same as today but relative to a 25% increase in total energy consumption. Bountiful U.S. tight oil and shale gas resources will play an important role in meeting projected world energy demand. Trends will, of course, be impacted by fluctuations in the global economy and unpredictable turmoil in important

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IN THE PIPELINE

JANUARY 8, 2016 DIPS Luncheon.

Speaker Terry Donze.

“Realism Revisited: The Corrupted Claims of the Climate Cabal.”

PTTC Short Course.

“Basic Well Log Interpretation.” CSM, Golden, CO. JANUARY 19, 2016 DWLS Luncheon.

Speaker Richard Rosen.

“Impact of Experimental Studies on Unconventional Reservoir Mechanisms (SPE168965).”

JANUARY 26, 2016 PTTC Short Course.

Vol. 65, No. 1 | www.rmag.org

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RMAG Luncheon.

Speakers Pete Stark and Steve Trammel. “The Petroleum Industry Resets Perspectives on the Road Ahead.” Maggiano’s Little Italy, Denver.

JANUARY 12-13, 2016

JANUARY 6, 2016

“RQ Toolkit: Using Rock Data for Reservoir Quality Assessment.” CSM, Golden, CO.

JANUARY 27, 2016 Oilfield Christian Fellowship.

For reservations, RSVP to OCF-DenverChapter@pxd. com or 303-675-2602.

JANUARY 28-29, 2016 IHS Class for RMAG Members.

Kingdom Geological Interpretation, IHS Energy OUTCROP | January 2016

RMAG LUNCHEON PROGRAMS Speakers: Matt Silverman — February 3, 2016

Tempest at Teapot Dome, Wyoming: the Greatest Political Scandal in the History of the American Oil Industry

By Matt Silverman

Warren G. Harding’s presidential administration was probably the most corrupt in American history, and the oil industry wasright in the middle of the fun.The scandal surrounding Teapot Dome in the 1920s was the most infamous presidential malfeasance of the 20th Century until Watergate.

The story includes sex, bribes, scandal, oil barons, crooked politicians, bathtub gin, smoke-filled rooms, the Roaring Twenties, blackmail, suicide and murder! In short, it’s just like today exHistorical postcard of Teapot , unidentified publisher cept that gin is made in distilleries and smoking is less popular than fracking. petroleum over coal for naval fuel had proved irresistA series of Presidential Orders created several ible, and the crude reserves were meant to provide a Naval Petroleum Reserves, including Teapot Dome in secure wartime supply.

Natrona County, Wyoming in 1915. The advantages of Harding was elected in 1920 and chose New Mex ico Senator Albert B. Fall for his Cabinet. Fall was a successful rancher and lawyer, but one whose enthusiasm for the private exploitation of the nation’s straMatt Silverman was RMAG’s President in 2014 and is tegic resources led a contemporary to say, “It would Exploration Manager for Robert L. Bayless, Producer in Denver. have been possible to pick a worse man for Secretary He serves as General Chair of the Petroleum History Institute’s of Interior, but not altogether easy.”

2016 meeting in Casper. This paper represents the triple junction of his interests in petroleum exploration, American Fall wrangled the Reserves away from the Navy political history and bathtub gin.

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RMAG LUNCHEON PROGRAMS the field. Its key producing zones are Cretaceous sandstones and shales, and the Pennsylvanian Tensleep Formation.

Teapot still produces several hundred BOPD and several thousand BWPD from about 400 wells. There is undeveloped potential for primary and enhanced oil recovery, as well as in fill and horizontal drilling targets.

Meagher Energy Advisors was retained in 2014

by DOE to solicit offers for Teapot Dome, and effective January 30, 2015, Teapot was acquired by Stranded Oil Resources for $42.5 million. Transfer of title to a new, private operator after 100 years as a Naval Petroleum Reserve represents another exciting chapter in the history of America’s most notorious oilfield.

The scandal is over but the story continues. The Petroleum History Institute will meet in Casper, Wyoming, from July 28-31 in 2016. This meeting is open to the public and will include papers, posters and a tour of Teapot Dome and Salt Creek Field. For more information,please visit www.petroleumhistory.org.

»»CONTINUED FROM PAGE 14 Department, and then leased the field in 1922 to independent oil titan Harry Sinclair in a secret, noncompetitive deal. Senate hearings followed, Fall resigned less than a year later, and Harding died suddenly a few months afterwards.

Investigators determined that Fall had received about $400,000 (some tens of millions in today’s dollars) in “loans” from Sinclair. He was convicted and imprisoned in 1931 for felonies committed in office, the only Cabinet officer (so far!) ever to suffer such ignominy. Sinclair was jailed for contempt, the leases were invalidated by the Supreme Court, and Teapot was returned to the Navy.

For decades Teapot Dome was administered by the Navy and then the U.S. Department of Energy (DOE), as the last Naval Petroleum Reserve. It is an asymmetrical, Laramide anticline on the southwestern flank of the Powder River Basin. Teapot includes basement-seated north-south faults on its western boundary and deep, east-west faults throughout

Vol. 65, No. 1 | www.rmag.org

15

OUTCROP | January 2016

PREVIEW: 22nd ANNUAL 3D SEISMIC SYMPOSIUM

PREVIEW: 22ND ANNUAL 3D SEISMIC SYMPOSIUM

22nd ANNUAL 3D SEISMIC SYMPOSIUM

“Focusing Our Energy” 3D Seismic Symposium Set for March 3, 2016 Thursday, March 3, 2016 Colorado Convention Center Downtown - Denver, Colorado

OUTCROP | January 2016

Oklahoma. Attendees to this year’s Symposium will witness the most up-to-date concepts and workflows in our industry, with many of the talks being presented in public for the first time. Early Registration is currently available by contacting RMAG societies or via the 3D Symposium website www.3dseismicsymposium.com.

This year’s lunch time Keynote speaker will be Dr. Nathaniel Putzig, from the Southwest Research Institute. He will present ‘Three-dimensional Radar Imaging of Structures within the North Polar Cap of Mars.’

The first 3D volume of the Mars Reconnaissance Orbiter Shallow Radar data encompassing the north

The 22nd Annual 3D Seismic Symposium, jointly sponsored by the Rocky Mountain Association of Geologists and the Denver Geophysical Society, will be held Thursday, March 3rd, 2016 at the Colorado Convention Center in Downtown Denver, Colorado. This is the same venue as last year, with its expanded social and exhibitor space. This year’s symposium is cochaired by Mary Sue Purcell and Cambrey Cammon.

The 3D Symposium will highlight 13 presentations, concentrating on case histories in resource plays using large-scale 3D seismic surveys. Case studies include: the Mars North Polar Cap, the Wattenberg Field Niobrara formation, the Bakken formation, along with geologic formations in Wyoming, Texas, and

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Preview: 22nd Annual 3D Seismic Symposium

» CONTINUED FROM PAGE 16

affordable in order to be applied and incorporated into the fast-paced work programs of unconventional asset development and production.

The afternoon Kickoff speakers are Jeremy Boak of the Oklahoma Geological Survey (OGS) and Julie Shemeta, President and Founder of MEQ Geo Inc. This presentation is titled ‘4-D Seismology of Induced Earthquakes in Oklahoma: Developments at a Geopolitical Hypocenter.’ The OGS has been building a seismic network to gather and analyze data on the nature of earthquakes, faults, and waste water wells in the region to understand the connections among them.

This work led to a position statement in April that acknowledged the connection between substantially increased disposal of water in the Arbuckle Formation and the basement, and an ~600 fold increase in the number of earthquakes of magnitude greater than 3.0 (Mm).

Jeff Zawila from SM Energy will present an ‘Integrated Multi-Disciplinary Approach Utilizing

polar cap will be shown. Major subsurface structures are plainly visible and other features are newly imaged, including apparent buried impact craters with no surface expression. These findings place new constraints on the depositional timing of the northern polar deposits and their relationship to climate.

The first presentation of the day will be our morn-ing Kickoff speaker, Ross Peebles, CEO of Global Geo-physical Services. He will present ‘Fast, Actionable, and Affordable – Making Seismic a Standard Tool for Ongoing Development Operations.’

Examples from various unconventional plays will be presented that highlight how 3D and Ambient Seismic are applied to develop operations such as well planning and spac-ing, completion design, production issues, production monitoring, and selecting candidates for re-fracing and infill drilling. Further, some new ideas regard-ing seismic acquisition design, field acquisition ap-proaches and seismic processing will be presented to show how these data can be made fast, actionable and

Vol. 65, No. 1 | www.rmag.org

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Preview: 22nd Annual 3D Seismic Symposium

» CONTINUED FROM PAGE 17

Stratigraphy, Petrophysics, and Geophysics to Predict Reservoir Properties of Tight Unconventional Sandstones in the Powder River Basin, WY.’ His approach of correlating core facies to petrophysical wireline facies to seismic facies for tight unconventional sandstones is presented along with results of simultaneous, geostatistical seismic inversion. Seismic facies and reservoir rock properties, which are calibrated to wireline logs and core data, are mapped from 3D seismic inversion volumes. The maps provide a detailed understanding of the characteristics of the reservoirs, namely their spatial distribution, geometry, and internal architecture.

Johannes Douma with Cimarex Energy will talk about the ‘Delaware Basin: Optimizing Landing Zone and Drill Time with Pre-Stack Inversions.’ Cyclical sea level changes within the Delaware Basin led to alternating carbonate and siliciclastic intervals. The carbonates can cause significant issues that may reduce rate of penetration, increase drill bit wear, and OUTCROP | January 2016

be difficult to hydraulically fracture. Pre-stack inversions allow the user to invert for acoustic impedance, elastic impedance, and density. These attributes may allow one to delineate sands, shales, and carbonates.

Cimarex Energy is using seismic pre-stack inversions to land wells within the best quality rock while avoiding carbonates.

Travis Pitcher will present his master’s thesis work from the Colorado School of Mines Reservoir Characterization Project (RCP), titled: ‘Joint Geophysical and Geomechanical Analysis of In-Situ Stress, Wattenberg Field, Colorado, USA.’ The RCP, in cooperation with Anadarko Petroleum Corporation, undertook an integrated dynamic reservoir characterization of a portion of Wattenberg Field integrating the disciplines of geophysics, geology, geomechanics, petrophysics, and petroleum engineering. The objective of his research was to integrate and correlate geophysical and geomechanical data in an effort to provide a better reservoir characterization in Wattenberg Field.

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Vol. 65, No. 1 | www.rmag.org

New Date: 24 March 2016 AAPG | DPA

The Rockies Playmaker Forum

Marriott Denver City Center I Denver, Colorado

Co-Hosted by: Rocky Mountain Association of Geologists (RMAG)

One Full-day Session The Denver Playmakers Forum will feature US Rockies plays that were put together by well-known, successful playmakers. The forum will feature case histories, learnings, strategies, and suggestions for future playmakers. The event is co-sponsored by the Rocky Mountain Association of Geologists and the Division of Professional Affairs-AAPG.

For details contact educate@aapg.org

Vol. 65, No. 1 | www.rmag.org

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FORUM

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Preview: 22nd Annual 3D Seismic Symposium

» CONTINUED FROM PAGE 18

The largest control on production variability in the study area appears to be geology, both at the seismic and sub-seismic scale. Travis’ research shows the stress differences within the study area exist due to complex geologic structures largely controlled by faults. These features control pressure and stress distribution throughout the reservoir and are considered to be the main driving factors for production variability across the study area.

Tony Lupo with SM Energy will present ‘Creating the Conditions for a Resource Play in Complexly Distributed Reservoirs via 3D Seismic Reservoir Characterization: A Case Study from the Cleveland Formation in Kay County, OK.’ By integrating high-resolution 3D seismic and detailed sequence stratigraphic analysis, thicker, productive Cleveland reservoir fairways can be identified and drilled economically on the Nemaha Ridge. Optimal drilling locations are best identified by fine-scale correlations and seismic mapping, linked to subtle syn-sedimentary tectonics. High-resolution 3D seismic and multi-attribute analysis has proven a key tool in differentiating and predicting optimal reservoir trends in this new play and sets up an opportunity for focused horizontal exploitation that can be broadly applied to a number of other similar plays in old development areas.

Jyoti Behura with Seismic Science LLC will speak about ‘Vogl 3D Surface Seismic Data: Geomechanical and Geophysical Analysis Through Re-datuming and Inversion.’ Knowledge and utilization of in-situ stress and fracture distributions in the subsurface determine the operational success in most unconventional plays. Besides stress and fracture distributions, seismic attributes derived from AVO, velocity, and attenuation analyses play key roles in the characterization and development of these plays. In this case study of the Vogl area of the Wattenberg Field, Colorado, he uses only the surface seismic data to decipher the stress distribution from azimuthal velocity analysis, fracture orientation and rock properties from azimuthal AVO inversion, and fault properties through attenuation inversion. Since the robustness and accuracy of the above attributes are extremely sensitive to the overburden effects, he utilizes a novel re-datuming technique to eliminate all effects of overburden.

The attributes are analyzed to draw conclusions about OUTCROP | January 2016

fault seal, maximum horizontal stress direction, and dominant fracture direction.

Trey Cortez with Energy & Exploration Partners will present ‘Sweet Spot Identification for Drilling and Hydraulic Fracturing Using Geophysics, Geology, and Geomechanics: Application to the Buda, Georgetown and Edwards Unconventional Oil Play.” Vertically commingled wells in East Texas are being developed on the heels of the prolific Austin Chalk fracture play. To quantify the sweet spots, pre/post-stack seismic attributes were used to derive models of porosity, water saturation, and fracture density. These were combined to form a sweet spot model, which unfortunately could not explain all the well performances. A new geomechanical model was built by including the estimated differential stress caused by faults and natural fractures in the study area. The results of this model were validated with a reprocessed microseismic survey that used anisotropic velocity to improve event position. The combined geologic and geomechanical models gave a better understanding of well performance.

Lee Krystinik with Equus Alliance will talk about ‘Transgressive Reworking of Deltaic Headlands and the Formation of Isolated Shelf Sandstone Reservoirs.’

1 and 2 man Mudlogging Summit Referencing™ Deltaic headlands and other geomorphicGas features Geosteering Mudlogging along a coastline can dramatically impact the geneServices sis, placement and preservation of isolated sandstone bodies on marine shelves, during transgresMikeespecially Barber Manager sions after a significant lowstand.

Much of the sand Serving the Rocky Mountain Region in the Upper Mississippian Springer Formation in the 230 Airport Rd. (435)657-0586 northern Anadarko basin of OklahomaPhwas delivered Unit D Cell (435)640-1382 via incised valleys deltas that pumped Heber City, Utah 84032 and lowstand email: mbarber@summitmudlog.com clastic sediment intowww.summitmudlog.com a low accommodation shelfal

» CONTINUED ON PAGE 22

Neil H. Whitehead, III Consulting Geologist PhD

CPG-AIPG

PG WY

Rocky Mountain Basins Wellsite to Petroleum Systems ArcGIS 303-679-8573

fax 303-679-8574

31634 Black Widow Way

20

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Conifer, CO

neil3@q.com 80433-9610

45 Vol. 65, No. 1 | www.rmag.org

Vol. 65, No. 1 | www.rmag.org

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OUTCROP | January 2016

Preview: 22nd Annual 3D Seismic Symposium setting with strong longshore currents. Subsequent transgressive erosion and longshore transport produced progressive migration of elongate and isolated “bar” sands (stranded shoreline deposits and shelf shoals). This process placed these reservoirs far from their sediment source and encased them within sealing, shelfal mudstones. The preserved Springer reservoirs may bear no apparent genetic relationship to the initial incised valley or deltaic source of the sediment.

A similar relationship exists for numerous isolated sandstones in the Mid- to Upper Cretaceous of Wyoming. Significant exploration opportunities likely exist down longshore drift from other deltaic headlands deposited in low accommodation settings.

Heloise Lynn with Lynn Inc. will present ‘Azimuthal Variations in P-P Pre-stack Amplitudes and AVO Gradients, from the Top of a Carbonate Naturally-Fractured Oil Reservoir.’ Previous work on the published high-fold full-azimuth 3D P-P dataset taken through Offset Vector Tile Pre-stack Depth Migration has tied azimuthal interval velocities, and pre-stack amplitudes and AVO gradient by azimuth (AVOaz) measurements to calibration data. New work has focused on the relationship of the azimuth-blind Intercept-Gradient, through cross-plotting. In the azimuth-blind situation, a dimmed near offset amplitude is typically linked to a flat or positive AVO gradient, indicating the decrease of Vs in the carbonate. These anomalous values, observed at faults and at strongly negative curvature features, suggest to the interpreter that the presence of fractures in the carbonate has decreased the value of the Vs, and Vp, in the carbonate.

J.B. Aldrich with MHA Petroleum Consultants will discuss ‘The Use of 3D and 4D Seismic Technologies in Evaluating Reserves and Resources: Applications of 3D Seismic and Microseismic to the SEC and PRMS Evaluations.’ Currently the USA SEC guidance and the 2011 PRMS guidelines specify, to differing degrees, uses of seismic technology to estimate in-place hydrocarbon volumes. 3D volumes of seismic data, including various attribute analyses, are one common form of seismic technology widely used over large areas in both conventional and unconventional fields. Microseismic data is a 4D passive seismic method used on a limited areal scale to map detailed microseismic events triggered by the injection of stimulation fluids.

OUTCROP | January 2016

While microseismic has been employed in conventional fields, its primary application has been to estimate the stimulated rock volume in unconventional fields. Accepted practices and workflows for inclusion of seismic technologies in reserve and resource evaluations are demonstrated, yet there are important differences depending on the standard under which the evaluation is being made. Similarities and differences between the SEC and PRMS standards are documented and the applications of the best practices in the seismic work flow are detailed.

Chelsea Newgord with SIGMA3 will present ‘Middle Bakken Well Performance Predicted Using Shale Capacity.’ For this Bakken case study, Shale Capacity is used to predict the 90-day initial production for six blind wells. The available data includes 3D surface seismic, wells with logs, wells with 90-day initial production, geosteering from horizontal wells, and microseismic data. Using these data, a Shale Capacity model is built. Seismic attributes are calculated including curvature, post-stack acoustic impedance inversions, and pre-stack elastic properties. These seismic attributes are used as input for a neural network and are ranked against the well log properties to build a 3D geologic model of each well log property. Geologic attributes of Natural Facture Density, Brittleness, Porosity, and Total Organic Carbon are combined to compute Shale Capacity. Finally, the microseismic data is qualitatively compared to Shale Capacity.

The technical program reflects the 3D Symposium technical committee’s interest in groundbreaking talks that include case studies from the Rockies or analog plays, or present new technology or ideas. A special emphasis was placed on integrated workflows that combine geology, petrophysics, geomechanics, or engineering with geophysical work. Anyone interested in basins such as the Williston, Denver-Julesburg, Anadarko, Permian, Powder River, on up to Canada or even Mars will benefit from the research presented by the lineup of speakers above. Whether used for exploration, well planning, geosteering, asset development, fracture identification, stress determination, or production prediction, the technical program for the 2016 3D Seismic Symposium is sure to demonstrate the value of 3D seismic.

For more information on this event, please visit www.3dseismicsymposium.com.

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Vol. 65, No. 1 | www.rmag.org

Speakers Jeff Zawila Johannes Douma Travis Pitcher Tony Lupo Jyoti Behura Trey Cortez Lee Krystinik Heloise Lynn J.B. Aldrich Chelsea Newgord

03 03 1z

SM Energy Cimarex Energy CSM - RCP SM Energy Seismic Science ENXP Equus Alliance Lynn Inc. MHA Petroleum Consultants Sigma3

Colorado Convention Center Thursday, March 3, 2016 Registration, Sponsorship, Exhibitor registration are all open.

22nd Annual RMAG & DGS

3D Seismic Symposium Focusing our Energy

Morning Kickoff Speaker Ross Peebles Global Geophysical

Keynote Speaker

Than Putzig Southwest Research

Afternoon Kickoff Speakers

Jeremy Boak, Oklahoma Geological Survey Julie Shemeta, MEQ Geo Inc.

www.3dseismicsymposium.com

email: staff@rmag.org

|

phone: 303.573.8621 | fax: 303.476.2241

910 16th Street #1214, Denver, CO, 80202

|

|

follow: @rmagdenver

web: www.rmag.org

WELCOME NEW RMAG MEMBERS!

Shawn Lopez

Chris Besler

is a Senior Geophysical Advisor at Lago Petroleum Consulting in Denver, Colorado.

is a student in Golden, Colorado.

Paula Mohseni

Daniel Bettinger

is a Geologist in Littleton, Colorado.

Cali Dodd

is a Technical Advisor/Geologist at IHS in Aurora, Colorado.

is a student in Parker, Colorado.

Rachael Moreland

is a student in Fort Collins, Colorado.

Lauren Guidry

Adam Parker

is a Geologist in Denver, Colorado.

is a Student at Fort Lewis College in Durango, Colorado.

Clayton Harp

Ross Peebles

is a Geologist at QEP Resources in Denver, Colorado.

is a Chief Executive Officer at Global Geophysical Services in Missouri City, Texas.

Marissa Hillje

lives in Thornton, Colorado.

Craig Peterson

is a Geological Sciences M.S. Student at University Of Colorado, Boulder in Boulder, Colorado.

Allison Kimbrough

is a student in Boulder, Colorado.

»»CONTINUED ON PAGE 25

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C. Elmo Brown Presented with 2015 President’s Award with increasing roles of responsibility, culminating with President in 2013-2014. When a co-chair of the 2014 RMS-AAPG meeting withdrew, Elmo assumed additional responsibilities to ensure the meeting’s success.

Elmo has previously been recognized by AAPG with a Certificate of Merit and a Public Service Award, and by RMAG with a Distinguished Service Award and Honorary Membership.

For his long-standing commitment to serving the geological community, both locally and nationally, and his extensive public service outreach for RMAG, AAPG and RMS-AAPG, the Rocky Mountain Association of Geologists recognizes C. Elmo Brown with its 2015 President’s Award.

The Rocky Mountain Association of Geologists is pleased to present Charles Elmo Brown with its 2015 President’s Award. Elmo is being awarded this honor for his lengthy and dedicated service to RMAG and numerous geological societies.

Elmo has been a long-standing member of RMAG, serving as President, Vice-President, Treasurer and Secretary. He has served as Chair of the Publications, Popular Geology, Finance, Membership, Employment and Public Outreach committees. In addition, Elmo has been a co-instructor for the RMAG Teachers in Training class. He continues to serve RMAG on the Long-Term Planning and Professional Awards committees.

Most recently Elmo served the Rocky Mountain Section AAPG as an officer from 2010 to 2015,

WELCOME NEW RMAG MEMBERS!

»»CONTINUED FROM PAGE 24

Dylan Rose-Coss

Benjamin Ramaker

is a Student/Researcher at New Mexico Institute of Mining and Technology in Socorro, New Mexico.

A Scott Ritchie

is a Geologist in Billings, Montana.

is a Senior Geologist at Anadarko Petroleum in Denver, Colorado.

Kate Schwehr

is a Chairman at Ritchie Exploration, Inc. in Wichita, Kansas.

Brandon Snyder

is a student in Denver, Colorado.

Clayton Roark

is a Senior Vice President at Koch Exploration in Denver, Colorado.

DONATE TO RMAG Vol. 65, No. 1 | www.rmag.org

Bob Wilcox

is a Consultant at Rock Reader Consulting, LLC in Rio Rancho, New Mexico.

Click here to make a contribution online!

25

OUTCROP | January 2016

LEAD STORY

DEEP IN THE HEART OF BUTTE A Special Report: Part 2

An archive photogragh of the Parrot Tailings complex, circa 1900.

Provided by The Montana Standard

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Vol. 65, No. 1 | www.rmag.org

By Susan Dunlap ORIGINALLY PUBLISHED IN THE MONTANA STANDARD

Editors Note: The following is a continuation of last month’s lead story on the Parrot Plume in Butte, MT. If you have not read last month’s issue feel free to download it from the RMAG website.

WHAT’S IN PLACE NOW? ARCO built a system to capture contaminated groundwater coming from the Butte Hill, treat it, and send it back into Silver Bow Creek.

The project began in 1998, Ryan said.

ARCO completed the system in 2014, Greene said. Greene also said Silver Bow Creek has met standards for aquatic life since January 2011.

The EPA’s record of decision says groundwater will be treated in Butte in perpetuity. The system consists of four parts: the sub-drain, a pump vault, the hydraulic control channel, and the Butte Treatment Lagoons.

The sub-drain lies underground.

It is about five feet deep from the surface. It rests in a bed of gravel beneath the mostly dry drainage ditch — frequently called the Metro Storm Drain, or MSD, channel — parallel to George Street. The sub-drain is a slotted pipe. One way to think of it is a pipe with holes in it so the dirty water can move into it. The pump vault, located across from the visitor center, sends the dirty water on its way from the sub-drain into a regular pipe. The regular pipe transports the dirty water into an above-ground concrete channel. That channel — called the hydraulic control channel — provides a concrete pathway west of the slag walls at South Montana Street. Once the dirty water is in the

»»CONTINUED ON PAGE 28

Vol. 65, No. 1 | www.rmag.org

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Lead Story

hydraulic control channel, it moves above ground and flows along in an area that looks like a waste land beside Silver Bow Creek before emptying into the Butte Treatment Lagoons. The lagoons consist of nine ponds and are visible from Interstate 90.

The lagoons are monitored and treated with OUTCROP | January 2016

lime to make the metals drop out as the water flows through the ponds and eventually discharges into Silver Bow Creek.

The treatment lagoons receive praise from Griffin, who up until a few months ago represented the state’s position.

»»CONTINUED FROM PAGE 27

»»CONTINUED ON PAGE 30

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Vol. 65, No. 1 | www.rmag.org

RMAG Mentorship Program Collaborate Be a Mentor Learn Navigate Be a Mentee

The RMAG will be launching a mentorship program starting in the Spring of 2016! RMAG young professionals will be paired with mentors to provide young professionals with a senior professional mentor who can provide career path and technical mentorship. Please stay tuned as more information along with applications will be provided in the beginning of 2016.

Visit www.rmag.org for more information.

Inspire Growth email: sta@rmag.org

phone: 303.573.8621

Vol. 65, No. 1 | Street www.rmag.org 910 16th #1214, Denver, CO, 80202

fax: 303.476.2241 29

web: www.rmag.org

OUTCROP | January 2016 follow: @rmagdenver

Lead Story not designed to capture all of the pollution from the Parrot tailings.

“It couldn’t have been, because they didn’t know where all of it was,” Williams told the Standard.

Ryan disagrees. In his emailed statement, he commented: “The MSD sub-drain is fulfilling its intended purpose and effectively intercepts groundwater before it reaches Silver Bow Creek.”

Ford was also critical of the sub-drain’s ability to capture the dirty water emanating from the Parrot.

“It’s a 10-inch pipe; it’s not logical,” Ford said.

»»CONTINUED FROM PAGE 28

“It’s susceptible to upsets to the system,” Griffin told the Standard, “but it’s pretty efficient. It works pretty well.”

The system in place now, from the underground sub-drain starting just south of Harrison Avenue to the Butte Treatment Lagoon discharge near the I-90 overpass, is enabling Silver Bow Creek to meet standards for aquatic life during normal flow. Because of that, Greene says the EPA will not — and cannot — change its position on digging up the contamination in the Parrot corridor.

“We have to base our decision (about the cleanup) off A GAP IN THE SYSTEM what’s going on in the stream,” Another problem with the Greene said. “The data is telling capture system is a gap. From us it’s working.” the visitor center to the lagoon But scientists who work for ponds, no ground water is bethe state in various agencies dising captured. agree with the assessment that A 2012 study stated contamthe capture system is working — inated water is impacting Silver at least as far as the dirty water Bow Creek where the slag walls coming from the old Parrot tailborder the creek channel. Greene ings is concerned. said that has been fixed.

Ted Duaime, a hydrogeolThat area falls within the capogist who supervised the buture system’s gap. reau’s 2010 study on the Parrot, Greene said the EPA is looksaid the system in place is “not ing at the gap and ARCO is exa preferred way to create a cap— JIM FORD, environmental pected to produce a revised ture system.” science specialist with the Natural study on the gap by the end of Duaime pointed out the subResource Damage program this month. drain, lying horizontally underGreene acknowledged zinc is ground from approximately the showing up in Silver Bow Creek Civic Center to the visitor cenwithin the gap, but he says it is more likely coming ter, is about five feet deep. The contaminated water from the slag walls, not the Parrot corridor. He said coming from the Parrot is approximately 50 to 60 he is currently reviewing data that suggests the slag feet deep. walls are the cause.

BP’s Ryan said the sub-drain does work. In an emailed statement, Ryan commented, “the condiWHERE’S THE CONTAMINATION? tions in the area around the Butte Chamber of ComNo one knows why exactly heavier amounts merce are similar to how an artesian well works, as of contamination are not showing up in the creek. deeper groundwater in the area naturally upwells But several state scientists strongly disagree with to the surface.”

Greene that the lack of its appearance in the creek is Dave Williams, a geologist who chairs the Cita reason to leave the Parrot tailings in place. izens Technical Environmental Committee — a group funded by the EPA — says the sub-drain was CONTINUED ON PAGE 32

“This is very wellestablished science.

The EPA has written guidance on this.

They’re looking in the wrong (material). You monitor groundwater.

You don’t wait till it shows up in the creek.”

»»

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Vol. 65, No. 1 | www.rmag.org

RMAG ♦♦ DAPL

GeoLand Ski Day 2015 SAVE THE DATE!!

Friday, March 11, 2016

Thank you to our earliest 2016 sponsors!

Shanor & Collins LLC For 2016 sponsorship opportunities, contact one of the committee chairs:

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Lead Story sort of answers it,” Ford said.

Icopini criticized the placement of the wells — the majority of them are in a line, he said — as well as the depths of the wells. Some are shallow and some are deep, but they’re all treated as if they’re measuring the same thing.

“The water table will change depending on which well you use,” Icopini said. “That complicates what’s going on there.”

Griffin said there should be more wells.

Greene said that as the EPA finds data gaps, the agency puts in more wells.

»»CONTINUED FROM PAGE 30

Ford called expecting the majority of the contamination to show up in the creek at this point a “fundamental misunderstanding of science.”

Greene responded by saying the EPA believes contaminated groundwater is being captured.

Groundwater and surface water transport contaminants differently, Ford said, and metals would partition off into sediment under or around the creek before entering the stream. But in the future, the metals would begin to appear.

“This is very well-established science. The EPA has written guidance on this,” Ford said. “They’re looking in the wrong (material). You monitor groundwater. You don’t wait till it shows up in the creek.”

Greene acknowledged the EPA has such guidance but said certain conditions must exist for the partitioning of sediment to happen.

Ford said there are wells within five feet of the creek that have very high concentrations of contaminants.

Duaime warned, regardless of what’s going on in the creek now, the Parrot plume has the potential to find its way into Blacktail and Silver Bow Creeks as time goes on.

Greene responded by saying there are a lot of ‘what ifs.’

“If the data was telling us it’s not working, we would be all over it,” Greene said.

Icopini said contaminated groundwater is hitting the creek near the KOA. He said it’s not bad enough yet to cause the creek to exceed standards.

He also said no one knows for sure its source.

THE PUBLIC

While the EPA and the other negotiating parties work toward a consent decree, for the Butte Hill and upper Silver Bow Creek, activists are speaking clearly: They want the Parrot cleaned up.

“How can I enforce ARCO to remove something that the data tells me shouldn’t be removed?”

Greene asked.

But many remain unconvinced.

Tester sent a letter in June to EPA Administrator Gina McCarthy during the agency’s recent five-year Superfund review saying he wants the Parrot tailings removed.

“Butte should be driving the bus on this, whether it costs $50 million or $50 bucks,” Tester told the Standard.

The reply Tester received was signed by Shaun McGrath, EPA regional administrator. McGrath’s letter did not address Tester’s remarks regarding the Parrot corridor.

Others who have spoken publicly on this issue as well as written letters to the EPA include local groups such as Citizens for Labor and Environmental Justice, Silver Bow Creek Headwaters Coalition, Butte Natural Resource Damage Council, and CTEC. Butte-Silver Bow Chief Executive Matt Vincent and Planning Director/Superfund Coordinator Jon Sesso say they support the tailings’ removal (see related story). Gov. Bullock says he supports cleaning up the tailings.

Bullock stated through his deputy communications director Mike Wessler via email: “The Governor’s top priority is the cleanup of the site. Details

THE DEBATE

Scientists representing the state say the plume has never been adequately understood. Greene says it has. He said 135 wells are in place at the site.

Ford said other aspects of the Butte Hill were characterized adequately but the EPA failed to fully understand groundwater when the agency looked at the site in the early years.

“The (record of decision) was finalized in 2006.

It’s 2015, and we’re still debating where the contamination resides and where it’s going. I think that OUTCROP | January 2016

»»CONTINUED ON PAGE 34

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Vol. 65, No. 1 | www.rmag.org

Lead Story Daily, says the coalition started the lawsuit as a way to force the state and the EPA to clean up the Parrot corridor.

Daily said his group believes that if the mostly dry channel is called a creek, then legally it becomes waters of the state and the state will have a constitutional duty to clean up that area.

“Hopefully we’re putting that pressure on them to do what’s right,” Daily told the Standard. “Unless they remove those tailings, we’re not going to have a clean creek.”

»»CONTINUED FROM PAGE 32

of how best to go about it are to be worked out.”

Current MDEQ project manager Darryl Reed would not comment to the Standard for this story other than to say that MDEQ continues to support removal of the tailings.

Project Green, a group previously dormant, has regrouped along with Silver Bow Creek Headwaters Coalition and Citizens for Labor and Environmental Justice to rally for a cleanup.

“It’s the future of our community,” Project Green board president Northey Tretheway told the Standard. “We have to do something. We don’t have forever to make things right.”

The Butte Natural Resource Damage Council set aside $10 million that came from a 2008 settlement with ARCO to clean up the worst of the Parrot contamination. BNRC board chair Elizabeth Erickson said they set aside the money toward a cleanup of the Parrot corridor because the public overwhelmingly wanted it done.

“We still have a source area in the middle of our town that’s contaminating groundwater, and it’s moving faster than was previously thought,” Erickson told the Standard. “We need to address the threat.”

In an effort to effect change, three citizens formed the Silver Bow Creek Headwaters Coalition in 2010 to launch a lawsuit against MDEQ. The lawsuit is over the name of the approximately 1.5 mile stretch of mostly dry creek bed along George Street to Silver Bow Creek. Official documents call that area the Metro Storm Drain, or MSD, channel. The Works Project Administration built it roughly in the area of the historic Silver Bow Creek channel in the 1930s for flood control. One of the members, Fritz

RENEW! OUTCROP | January 2016

CAN THE TWO SIDES EVER AGREE?

While the debate between state scientists and the EPA is painfully complex and appears permanently intractable, a flicker of hope might be gleaming in the distance. Greene told the Standard the EPA wants to work with the state.

“We want to work with them, and we’re in support of their restoration efforts,” Greene said.

Ryan said in his email that ARCO has not pledged anything further “for restoration work.”

This is important because the NRD proposal to take out the worst of the contamination currently hinges on ARCO putting in $10 million.

Ryan added: “Atlantic Richfield paid $72.5 million to the State to settle all then-remaining National Resource Damage restoration claims, and the State allocated $28 million of that sum to Butte for restoration. Excavation of buried tailings and other wastes for restoration purposes was the basis of that claim, and the dollar amount of the settlement was derived from cost estimates that included the removal of the Parrot tailings and other waste materials in the area. We leave it to the state to determine how these funds may best be spent.”

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CALENDAR | JANUARY 2016 SUNDAY

3

MONDAY

4

TUESDAY

WEDNESDAY

5

6

THURSDAY

7

RMAG Luncheon.

10

11

12

FRIDAY

SATURDAY

1

2

8

9

DIPS Luncheon.

13

14

15

16

20

21

22

23

27

28

29

30

PTTC Short Course.

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19 DWLS Luncheon.

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26 PTTC Short Course.

Oilfield Christian Fellowship.

IHS Class for RMAG Members.

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OUTCROP | January 2016