The Teapot Dome Field Experimental Facility: CO 2 Program Summary

1. The Teapot Dome Field Experimental Facility:CO2 Program Summary Presentation for the Wyoming Pipeline Authority October 2006 Vicki Stamp CO2 Program Manager Rocky Mtn Oilfield Testing Center

2. “The Energy Policy Act of 2005 required the Department of Energy to develop new technologies for Enhanced Oil Recovery (EOR) though injection of carbon dioxide into marginal oil wells.  The Act also required the Department to study the potential for increasing oil recovery using carbon injection technologies…”  May 12, 2006: U. S. Senate, Committee on Energy and Natural Resources:

3. Overview of projects and current status Focus areas in CO2 EOR and geologic storage research & technology development Priorities: benefits to industry/ partners technology transfer / data sharing contributions to domestic energy development— Focus on Wyoming EOR Estimate possible future CO2 needs: Budget-dependent Today’s presentation

4. Teapot Dome Location The field occupies roughly 10,000 acres, 35 miles north of Casper WY.

5. An EOR / Carbon Storage Test Site Teapot Dome (NPR-3): a field site for scientific and engineering testing, deployment, and technology transfer Salt Creek Anticline Teapot Dome

6. CO2 Science Goals • NEEDS: • relationship / synergy with EOR • site selection criteria, best practices • demonstration of storage safety and permanence • Understand key features, effects, & processes • public safety, understanding and acceptance: • needed for wider deployment of geologic storage • large-scale field tests to inform policy and regulations • TEAPOT FOCUS: • EOR / storage relationship • site characterization and baseline assessment • leakage risk evaluation, prediction, and management • behavior of fractures, faults • development of risk mitigation techniques and warning systems • sensitivity and detection limits of monitoring tools, recommended suites and practices • wellbore and cement integrity • formal integration and comparison of MMV outputs

7. U.S. Applicability of Teapot Results Data: S.J. Friedmann, LLNL, 2005

8. Existing infrastructure and data 600 active wells, 1300 wells total, drilling rig & field staff; trucked CO2 for early experiments Photo courtesy S. Cooper, Sandia NL

9. Anadarko /Salt Creek CO2 Pipeline • Location of the pipeline • Proximity to NPR-3 Distance from main line to central NPR-3 location ~15 mi or less. Teapot Dome (NPR-3)

10. Regional geology Reservoir geology Reservoir histories and screening Soils, aquifers, reservoir fluids Petrology, petrophysics, geomechanics, seismic interp. (CSM, UW, TA&M, UH, BYU, Stanford) CO2-specific baseline assessments Site characterization Key components: Teapot Dome

11. NPR-3 Reservoir Summary • 9 Producing (oil-bearing) intervals • Depths 500’-5500’ (Shannon to Tensleep) • Good range of oil/rock chemistry and petrophysics • Additional 5-6 water-bearing intervals • Fresh and saline, 3000-8000’ • Range of dep. environments, clastic (Ss) & carbonate • Crow Mtn. disposal zone • Madison underlies

12. Tensleep Reservoir • Screening for first target • Tensleep selected • Well control / few penetrations, modern • Small, viable EOR target • P = 2350 psi, 32 API • CO2-miscible conditions • Depth 5500’, 8-12% avg porosity, 80 md, h = 50’ • Risk assessment, caprock • Regional benefits • Research, MMV relevance S1 fault Proposed Section 10 project area:

13. Proposed Tensleep EOR / storagedemonstration Compelling state and regional drivers to study EOR and storage in the Tensleep at Teapot Dome: • 2/3 of Wyoming production comes from Tensleep or equivalent • Rangely CO2 EOR in the Weber (Tensleep equiv.) • Significant volumes in Colorado & Utah • Analogs throughout U.S. & internationally Tensleep fm, Alcova Canyon, WY

14. NPR-3 Gravity-Stable Miscible CO2 • Cost-effective testing of gravity-stable operation in Tensleep fm • High relief structure • Significant fracturing, faulting • Active aquifer • Available wellbores for both operation and monitoring • Fluid analyzed and test design simulated • Lab fluid tests were used to generate equation of state inputs for reservoir simulation tuning • Simulation completed at field scale and proposed test scale Tensleep Section 10 project area • Results support proceeding with proposed injection

15. 30 Day CO2 Test Injection: Gas Saturation in Top Layer Fractures Injection Best Response At 30 days CO2 injection 30 days after end of CO2 injection

16. Modest EOR target Small capital outlay required Seamless transition to storage-optimized Template with broad applicability Public domain results Expansion / long-term operation possible if successful Other zones possible: Ex: 2nd Wall Creek Proposed Section 10 EOR / Storage Project: Key Points

17. Crow Mountain Ss (4500’) 3 existing Class II disposal wells, Section 10 Co-locate with Tensleep EOR project Water analysis, permeability, caprock Several surrounding wells available for monitoring Focus: MMV tool sensitivity and detection limits, comparison, integration of results Predict and quantify multiple storage mechanisms Saline Aquifer CO2 Storage Test

18. Industry suggestion Under development: Notice posted on LLNL website Finalizing package for potential partners Funding independent of DOE and Federal budgets Industry-driven: to better meet industry’s research needs and timetable increase program flexibility and scope support for additional projects bring business to Wyoming could affect CO2 needs Joint Industry Project (JIP)

19. Conclusions • Characterization results have showcased the strengths of Teapot Dome as a project site for focused research on CO2 EOR, monitoring and storage. • Earliest projects proposed will focus on: • EOR / oil field storage • Suite of projects under consideration includes: • EOR project expansion • Saline aquifer storage • Tests for monitoring (MMV) tool development, sensitivity, comparison and integration • Long-term testing related to storage safety and wellbore integrity

20. Can grow / stimulate CO2 EOR and CO2 storage research in Wyoming: increasing Wy and domestic production growing national and global efforts aimed at reduction of CO2 emissions Domestic and international partners benefits to Wyoming business and the public Environmentally sound Possible to use at least ~3-10 MCF/D for EOR Could permanently store >10 MCF/D (600 tons per day) in multiple deep zones from industrial sources Need for secure, long-term CO2 supply Conclusions

21. For more information: • Teapot Dome CO2 Program: Vicki Stamp CO2 Program Manager vicki.stamp@rmotc.doe.gov 307.233.4833 • U.S. DOE, CO2 EOR: www.fossil.energy.gov/programs/oilgas/eor • U.S. DOE, NETL Carbon Sequestration Program: www.netl.doe.gov