Oil and gas are essential parts of a sustainable future. Though these are finite energy resources and sources of greenhouse gas emissions, the world continues to require their production. For this reason, it is imperative that we consider improved industry practices. To begin, the audience will be presented with the most basic principles of sustainability pertaining to oil and gas operations, including SPE’s position on this matter. When oil is discovered at a location, decisions and guarantees cannot be made without considering the project’s life cycle. Our commitments must be demonstrated consistently along each stage of a project in direct consideration of a sustainable future. Next, several case studies relating to sustainability, integrating the realities of the social license to operate and operations will be presented to the audience, detailing the required steps for the successful execution of any project facing challenging conditions. The presentation will conclude by underlining that the inclusion of internal and external stakeholders will only enrich the project and, therefore, pave the road to success. It is our responsibility to create a culture of operational professionalism and reliability through active participation. In order to counterbalance the world’s energy demand, we must produce oil and gas while considering that the more efficiently the energy is produced, the more affordable the energy will be. The oil industry is not only committed to its own sustainability but also to the sustainability of our planet.

1. Society of Petroleum Engineers
Distinguished Lecturer Program
www.spe.org/dl
Fernando L. Benalcazar, MS, CSP
HSE Manager
Oil and Gas Operations – Integrating
the Realities of the Social License
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2. Presentation Format
• Define the challenge
• Sustainability solutions
• Case studies
• What does the future hold
• Conclusions
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3. The Challenge
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Environmental
responsibility
A viable natural
environment
Social
progress
Nurturing
community
Economic
development
Sufficient
economy
Sustainable
Development
Oil and Gas to continue
supplying energy for the world
although being a finite energy
resource and a source of
greenhouse gas emissions
as part of a sustainable
future.
Fair
ViableLiveable

4. Sustainability/Sustainable
Development?
Brundtland Commission (WCED 1987):
“Meeting the needs of today without
compromising the ability of future generations
to meet their own needs”
“Oil and gas are essential to meeting the “needs of today”;
their prudent use is the safest way to ensure we do not
compromise the “ability of future generations to meet their
own needs.”
Nathan Meehan, 2016 SPE President, JPT APRIL 2016 4

5. “….. SPE demonstrates this commitment by
offering its members opportunities to train, share
knowledge and advance practices for doing
business in ways that balance economic growth,
social development, and environmental protection
to meet societal needs today and in the future.”
SPE’s Sustainability Definition:
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6. Sustainability Key Points
• Local operating conditions, cultural issues and
surrounding conditions.
• All principles shall be applicable throughout the
whole organization.
• Stakeholder engagement.
• Life cycle management.
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7. Sustainable Solutions
If oil and gas are to be part of a sustainable
solution to our energy needs:
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1. Reducing surface footprint
2. Flaring – reduce or eliminate
3. Minimizing methane emissions
4. Eliminating spills
5. Wellbore integrity
6. Energy efficiency and conservation
7. Optimized field development and management

8. 3D Seismic Campaign & Wellpad
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95384-MS SPE Conference Paper - 2005

9. Background of these cases:
1. Extremely sensitive environment - mega
biodiversity - national park
2. Successful 3D seismic campaign was completed
3. Exploratory drilling program started with
drilling a well located in a remote wellpad
4. Results showed that the prospect was not
commercially viable for development.
5. Decommissioning
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10. • Early Planning: Site Selection, Minimum
Area of Intervention, Conservation
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3D Seismic Campaign & Wellpad

11. Identification of Previously Cleared AreasIdentification of Previously Cleared Areas
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12. Identification of Previously Cleared AreasIdentification of Previously Cleared Areas
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Seismic camp located at a historic heliport and camp

14. Engagement and participation:
•Very early and continual stakeholder
engagement
•Project was introduced to sensitive national
and international stakeholders
•Scientific Advisory Committee – structure
and supervision
•Direct reporting and follow-up meetings
14
3D Seismic Campaign & Wellpad

15. Remote wellpad
173555-PA SPE Journal Paper - 2015

16. Selection of Reliable Contractors:
•Best performers – weighted
highest value to the HSE and
Social component
•Criterion was applied to any
involved contractor
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17. Field Controls:
•On site permanent audit
•Simultaneous access
•Field Empowerment - Authority Matrix
•Non-compliances immediately addressed
•Credibility
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3D Seismic Campaign & Wellpad

18. STOP
High efficiency “offshore flare” was
managed/eliminated

19. • Monitoring and Community Involvement:
Environmental Quality – Water, Air,
Noise, Soil; Compliance with EMP;
Compliance with Social Commitments –
local, indigenous peoples.
Contractors will leave, Operator will stay and
face any problem
 Solve problems ONSITE, and ASAP!
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3D Seismic Campaign & Wellpad

20. Compliance with Environmental Regulations,
EMP and Social commitments
• Community agreements
• Attendance to grievances and complaints
• Community Monitors: local-indigenous-
community members
• Keep an eye on construction and drilling
practices day-by-day
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3D Seismic Campaign & Wellpad

21. • Abandonment and Decommissioning are
not only about restoration and
reclamation, they are also about a diligent
closure of all potential exposures.
“Unlike capital projects, decommissioning is not
something that you can choose to do or not to
do.”
“A little time and money spent upfront can save
many millions in the future.” 21
3D Seismic Campaign & Wellpad

22. Southwestern Energy (SWN) promotes programs that
create balance between Community, Economy, and the
Environment. This includes conservation projects which
impacts high value freshwater resources.

23. Conservation Projects
Watershed Restoration
•Improve water quality and
availability
•Improve habitat for target species
Water Use Efficiency
•Improve systems or facilities that
manage water
Who We Partner With
•The Nature Conservancy
•US Fish & Wildlife
•Trout Unlimited
•Ducks Unlimited
•State Agencies
•Local communities
Rebuild channel
Stabilize outer banks
Restore riffles
Project design photographs courtesy of The Nature Conservancy
Aquatic Barrier Removal AMD Impacted Stream

24. Pre-project Conditions
•Fall Brook is the uppermost tributary contributing significant Acid Mine
Drainage (AMD) to the Tioga River in Pennsylvania
•Water polluted with excessive concentrations of Iron, Manganese, and
Aluminum due to abandoned coal mines
•Little to no aquatic life in affected waterway
Fall Brook AMD Treatment
AMD DISCHARGE 01 AMD DISCHARGE 03

25. Current Conditions with Project
•Collects and treats multiple AMD discharges resulting in ongoing
rehabilitation of 8 stream miles
•SWN fully funded the facility construction and a 20-yr operation &
maintenance trust fund
•Facility completed February 2016, and treats 10,700,000 bbl of AMD
per year
Fall Brook AMD Treatment
Note: Fall Brook AMD treatment facility owned and operated by local municipality and conservation district

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Conclusions
• Embedding sustainability into operations
is critical for a sustainable future
• Implementing practical Sustainability
Solutions and user-friendly tools for
Corporate, field/site/country operations
• Inter-company knowledge sharing and
technology transfer

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Conclusions
• Plan for the big picture
Early planning
Sustainability Solutions
Select best practices
• Engaging with stakeholders only contributes
to expedite this process and to share
experiences
Early Continual
Transparent Respectful

28. Society of Petroleum Engineers
Distinguished Lecturer Program
www.spe.org/dl 28
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