Horizontal Well Activity in Kansas
Kansas Oil and Gas Activity in the Mississippian Lime Play
The Kansas Department of Commerce and several other state agencies are examining the potential economic development benefits and challenges of supporting oil and gas activity in the Mississippian Lime Play (MLP) and to ensure the state is prepared for all the related activity in the region.
The potential economic benefits to Kansas could be significant, resulting in hundreds of wells drilled, billions of dollars in investment, thousands of jobs and industry activity in the MLP for the next 20 to 30 years.
The MLP is a porous limestone formation that encompasses areas of northern Oklahoma, and southern and western Kansas. The region was considered tapped out by vertical drilling decades ago, but a technique known as hydraulic fracturing (also called fracing or fracking) in combination with horizontal drilling has the potential to significantly revive oil and gas activity in the region.
What's New--September/October 2013
--Updated oil and gas production data and an updated map of horizontal well activity have been posted (links to the upper left). Through the end of June 30, 2013 (latest production data available), there were 247 active horizontal wells in Kansas, along with more than 64,000 vertical oil wells and 24,000 vertical gas wells. The horizontal wells are producing 260,000 barrels per month of oil and 2.0 million mcf of gas per month.
--Total oil production statewide is 3.8 million barrels per month and 24 million mcf per month of gas.
--In September 2013, the Kansas Corporation Commission approved 575 intent to drill notices, including 23 for horizontal wells. For the same period last year, the KCC approved 504 intent to drill notices, including 24 horizontal wells. From Jan. 1-Dec. 31, 2012, the KCC approved 6,861 intent to drill notices, including 296 horizontal wells.
--The horizontal well water usage map has been updated through April 31, 2013. Data is compiled from FracFocus, a chemical registry website used by industry to report water and chemical usage during hydraulic fracturing.
--The Kansas Corporation Commission has issued a report (bottom link at left) that outlines the applicability of the state and federal regulations and industry specific exemptions related to transportation. With the increase in exploration due to new technology and techniques like horizontal drilling and hydraulic fracturing, understanding the regulations and exemptions can make all the difference for a successful business operation.
--The Department of Commerce, through the Community Development Block Grant program, is offering $1.5 million to communities for a pilot housing project that can be used to provide gap funding for rehabilitation, reconstruction or infrastructure activities. The maximum grant award is $500,000 and projects will be accepted until funds are depleted. For more information about this opportunity, contact Linda Hunsicker with the Department at (785) 215-4484 or .
State and Industry Resources
The state has formed the Inter-Agency Working Group (IAWG) that includes representatives from the Departments of Agriculture, Transportation, Revenue and Health and Environment; the Kansas Corporation Commission (KCC); the Kansas Water Office; the Attorney General’s Office; and the Kansas Housing Resources Corporation.
In addition, an Industry Advisory Group and a Community Advisory Group have been formed. For more details on these advisory groups, see Frequently Asked Questions. The state is working together with both groups to gather information on MLP activity and address questions and concerns as they are identified.
Please contact the following agencies or groups for specific questions about:
Production Data and Other Statistics
Kansas Geological Survey's Oil and Gas Production Data -- (785) 864-3925
Economic Development and Overall Administration Policy Questions
Department of Commerce – Dan Lara, (785) 296-3760,
Industry Oversight and Power Grid Questions
Kansas Corporation Commission – Jesse Borjon, (785) 271-3269,
KCC's MLP Electric Power Issues -- Frequently Asked Questions and Contact Information
Water Permits, Policy and Related Questions
Department of Agriculture Division of Water Resources – Mary Geiger, (785) 296-2653, email@example.com
Kansas Water Office– Katie Patterson-Ingels, (785) 296-0877,
Tax, Valuation and Related Questions
Department of Revenue
Property Valuation -- Lynn Kent, (785) 296-4159,
Mineral Tax -- Margo Rangel, (785) 296-7713,
Individual and Corporate Income Tax Office -- (785) 368-8222,
General Questions -- Jeannie Koranda, (785) 296-0671,
Kansas Department of Transportation – Steve Swartz, (785) 296-3585,
Environment, Health and Related Questions
Kansas Department of Health and Environment – Miranda Steele, (785) 296-5795,
EPA Resources for Oil and Gas Extraction Sector
Companies Interested in Demonstrating Products or Services
Kansas Petroleum Council -- Ken Peterson, (785) 234-0589,
Kansas Independent Oil and Gas Association – Ed Cross, (785) 232-7772,