Fairchild & Associates, Inc. PETROLEUM AND ENVIRONMENTAL CONSULTANTS

UNDERGROUND GAS STORAGE

Fairchild's principals have had considerable experience working with the gas storage companies throughout the United States. All different types of storage have been involved in these studies from underground aquifer storage to the depleted oil reservoirs and producing or depleted gas/gas condensate reservoirs. Fairchild has recently provided reservoir engineering support to numerous gas storage companies as a result of the renewed interest in underground gas storage. Studies have included performing or evaluating inventory verification, deliverability, developing working/base gas ratios and gas loss or migration. Fairchild has performed screening and preliminary design studies for several clients over the past several years.
Fairchild has developed and provided testimony relating to underground gas storage to various governing organizations. Our studies have been used in litigation and to support IRS issues.
In addition to the above, Fairchild's principals have been involved in numerous other studies related to gas storage or in areas which directly apply to underground storage. A brief discussion of some of these are listed below:
1. Screening and preliminary design studies of potential gas storage have been performed for several gas storage companies.
2. Fairchild provides ongoing reservoir engineering support to several gas storage companies. This has included inventory verification, deliverability, working/base gas ratios, non-recoverable base gas and gas migration studies.
3. Design and evaluation of aquifer storage reservoirs. These studies included making "history match" estimates of residual and critical gas, gas bubble growth and deliverability estimates as constrained by water movement and wellbore and surface system flow constraints.
4. In 1985, Fairchild, in competitive bidding, secured a multi-year project from the Gas Research Institute. The project scope is to develop an understanding of the production of natural gas that would not be produced by conventional methods from underground gas reservoir formations unless large amounts of water or brine are produced with the gas (Co-Production). This project is ongoing.

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