Root Cause Investigation and Analysis
Complete
Equitrans Midstream Corporation (NYSE: ETRN), today, submitted
information to the Pipeline and Hazardous Materials Safety
Administration (PHMSA) regarding the root cause investigation and
analysis related to the Rager Mountain Storage facility incident
that occurred in November 2022. The comprehensive root cause
analysis (RCA) was initiated promptly following resolution of the
natural gas storage well venting incident and was conducted by an
independent, third-party company with expertise in reservoir
management and well and corrosion engineering. Additionally, the
RCA activities were coordinated with PHMSA and the Pennsylvania
Department of Environmental Protection (PADEP).
The third-party RCA team consisted of subject matter experts in
several disciplines, including metallurgy, failure analysis, well
construction and reservoirs, well logging, chemistry, and
microbiology. The RCA was conducted using a systematic,
evidence-based approach consisting of three phases: 1) analysis of
Equitrans' Storage Integrity Management Plan (SIMP) and related
processes; 2) data collection and analysis of physical evidence;
and 3) use of the Apollo RCA method that integrated previous well
logging data, drilling analysis, well deliverability and kill
attempts, failure analysis, metallurgical observations,
microbiological assessments, and reviews of Equitrans' internal
standards/procedures and regulatory guidelines.
RCA Summary of Findings:
The direct cause of the venting from Rager well #2244 was due to
water- and oxygen-induced corrosion on the outside diameter of the
top joint of the well and the infiltration of organic/inorganic
matter into the annulus, which resulted in a failure of the well
casing. The primary root causes for this failure were identified as
follows:
- Magnetic wireline testing is the industry-standard used to
identify potential corrosion on storage wells, and, in 2016,
Equitrans’ contractor performed wireline testing of all wells at
Rager Mountain. The contractor processed the 2016 logging data
using the algorithm technology available at the time, and the
wireline report received by Equitrans for well #2244 identified
limited corrosion levels, which did not require remedial action.
Following the venting incident in 2022, the previous logging data
for well #2244 was reprocessed using a recently available and
updated algorithm technology, which revealed more extensive
corrosion at the top of the well, confirming that the previous 2016
report was inaccurate.
- The top joint corrosion could have potentially been mitigated
by injecting corrosion inhibiting gel into the annular space
between the inner and outer casings of well #2244.
- Given the location of well #2244 and its vent, Equitrans’
practice of keeping the annulus vent open to allow for the safe
venting of gas permitted water, air, and solids to enter the
annular space, which may have contributed to the potential
exacerbation of corrosion.
Based on results of an inventory verification test conducted
after the venting incident was resolved, Equitrans' initial gas
loss estimate for well #2244 was approximately 1.29 Bcf. Following
completion of the RCA, the cumulative gas loss was determined to be
approximately 1.164 Bcf. Due to the restriction of the annulus
valve, the RCA indicates approximately 1.037 Bcf of the total
cumulative gas loss was vented to the atmosphere and roughly 0.127
Bcf was diverted to and contained within formation(s) located at
approximately 1,800' and/or 3,000' below ground.
Equitrans' Mitigation Activities:
Equitrans worked with various third-party experts to confirm
that all causes and/or contributors to the November 2022 incident
were identified and addressed. The damaged casing on well #2244 has
been replaced, and the well remains temporarily plugged. It has not
yet been determined whether the well will be permanently plugged or
returned to service.
Additionally, several other Rager wells have undergone top joint
casing replacements to proactively address less-aggressive
corrosion that was identified. Equitrans has also performed
supplemental evaluation and testing, including updated wireline
logging, on all other wells at the Rager Mountain facility, which
is expected to allow the field to return to service, subject to
PHMSA authorization.
Existing wireline reports for more than 180 wells at Equitrans'
other storage fields have been reprocessed using the updated
algorithm technology. Additionally, Equitrans has accelerated its
overall wireline program and is expected to complete updated
logging of approximately 100 wells in 2023. Furthermore, Equitrans
is modifying its gelling requirements to provide inhibitor
protection to wells that may be at risk of corrosion due to the
presence of water or oxygen. Finally, as a means of additional
future risk mitigation, Equitrans is completing a comprehensive
review of its SIMP and related practices.
To address potential concerns related to the roughly 0.127 Bcf
of migrated gas, Equitrans completed extensive field and laboratory
soil and water well testing, which confirmed that no gas migrated
to nearby residential areas.
With roughly 300 storage wells located across 18 storage fields,
Equitrans remains focused on the timely completion of the work
identified during the post-incident investigation as necessary
and/or beneficial for the safe and environmentally responsible
operation of its Rager Mountain facility and other storage fields.
Equitrans continues to coordinate with PHMSA and other regulators
in connection with their ongoing investigations of the
incident.
About Equitrans Midstream Corporation
Equitrans Midstream Corporation has a premier asset footprint in
the Appalachian Basin and, as the parent company of EQM Midstream
Partners, is one of the largest natural gas gatherers in the United
States. Through its strategically located infrastructure assets in
the Marcellus and Utica regions, Equitrans has an operational focus
on gas transmission and storage systems, gas gathering systems, and
water services that support natural gas development and production
across the Basin. With a rich 140-year history in the energy
industry, Equitrans was launched as a standalone company in 2018
with a vision to be the premier midstream services provider in
North America. While working to meet America's growing need for
clean-burning energy, Equitrans is proud of its environmental,
social, and governance (ESG) practices, striving every day to
preserve and protect the environment, provide an engaging workplace
for its employees, support and enrich its local communities, and to
deliver sustained value for customers and shareholders. Visit
www.equitransmidstream.com; and to learn more about our ESG
practices visit Equitrans Sustainability Reporting.
Cautionary Statements
This news release contains certain forward-looking statements
within the meaning of Section 21E of the United States Securities
Exchange Act of 1934, as amended (the Exchange Act), and Section
27A of the United States Securities Act of 1933, as amended (the
Securities Act), concerning ETRN, the Rager Mountain Storage field
incident and related matters. These statements may discuss goals,
intentions and expectations as to future plans, trends, events,
results of operations or financial condition, or otherwise, based
on current beliefs of the management of ETRN, as well as
assumptions made by, and information currently available to, such
management. Statements that do not relate strictly to historical or
current facts are forward-looking. Words such as “focused,” “goal,”
“guidance,” “scheduled,” “could,” “will,” “may,” “assume,”
“aspire,” “design,” “forecast,” “position,” “pursue,” “predict,”
“strategy,” “expect,” “intend,” “plan,” “aim,” “estimate,”
“anticipate,” “believe,” “project,” “budget,” “potential,”
“target,” “seek,” “strive,” “view,” “continue,” “would,”
“approximate,” “opportunity,” “objective,” or “outlook” and similar
expressions are used to identify forward-looking statements. These
statements are subject to various risks and uncertainties, many of
which are outside ETRN's control. Without limiting the generality
of the foregoing, forward-looking statements contained in this news
release include the potential to maintain well 2244 as permanently
plugged or return it to service; expectations as to returning other
wells to service; PHMSA's ongoing investigation, including the
potential conclusion thereof or authorization from PHMSA to
recommence injection operations; expectations with respect to
ETRN’s overall wireline program, including the number of wells to
be logged in 2023; the effectiveness of the wireline program, as
well as the modified gelling requirements, the SIMP and related
practices, and the cross-functional team and ongoing other efforts,
in mitigating future risk; the effect and outcome of Rager-related
investigations and proceedings, including potential penalties and
fines; benefits potentially to be derived from ongoing analyses and
other efforts in respect of operating, and ETRN’s ultimate ability
to operate, the Rager Mountain facility and other storage fields in
a safe and environmentally responsible manner; and the ultimate
financial, business, reputational and/or operational impacts
resulting, directly or indirectly, from the Rager Mountain
incident. These forward-looking statements involve risks and
uncertainties that could cause actual results to differ materially
from projected results.
Accordingly, investors should not place undue reliance on
forward-looking statements as a prediction of actual results. ETRN
has based these forward-looking statements on management’s current
expectations and assumptions about future events. While ETRN
considers these expectations and assumptions to be reasonable, they
are inherently subject to significant business, economic,
competitive, regulatory, judicial, construction and other risks and
uncertainties, many of which are difficult to predict and are
beyond ETRN’s control. The risks and uncertainties that may affect
the operations, performance and results of ETRN’s business and
forward-looking statements include, but are not limited to, those
set forth under Part I, "Item 1A. Risk Factors" in ETRN's Annual
Report on Form 10-K for the year ended December 31, 2022 filed with
the Securities and Exchange Commission (the SEC), as updated by any
risk factors disclosed under Part II, "Item 1A. Risk Factors," of
ETRN’s Quarterly Report on Form 10-Q for the three months ended
March 31, 2023 filed with the SEC, ETRN's Quarterly Report on Form
10-Q for the three months ended June 30, 2023 filed with the SEC
and ETRN's subsequent filings. Any forward-looking statement speaks
only as of the date on which such statement is made, and ETRN does
not intend to correct or update any forward-looking statement,
unless required by securities laws, whether as a result of new
information, future events or otherwise. As forward-looking
statements involve significant risks and uncertainties, caution
should be exercised against placing undue reliance on such
statements.
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version on businesswire.com: https://www.businesswire.com/news/home/20230824738516/en/
Analyst inquiries: Nate Tetlow – Vice President,
Corporate Development and Investor Relations 412-553-5834
ntetlow@equitransmidstream.com
Media inquiries: Natalie Cox – Vice President,
Communications and Corporate Affairs 412-395-3941
ncox@equitransmidstream.com
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