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SECTION 1 The Technology Behind Recycling Produced Water and Hydraulic Fracturing Flowback Fluid Presented by Dr. David Stewart, PE Stewart Environmental Consultants, LLC Fort Collins, CO

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SECTION 1

The Technology Behind Recycling Produced Water and Hydraulic

Fracturing Flowback Fluid

Presented by

Dr. David Stewart, PE Stewart Environmental Consultants, LLC

Fort Collins, CO

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The Technology Behind Recycling Produced Water and Hydraulic Fracturing Flowback Fluid

“Two things are infinite: the universe and human stupidity; and I'm not sureand human stupidity; and I m not sure

about the universe.” ― Albert Einstein

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Leadership & Opportunityp pp yStates & Energy Companies

•Time to take leadership on the conversion of produced water and hydraulic fracturing flowback fluid to highest and best use

•Political Opportunitypp y

•Moral and Environmental Opportunity

•Shift Public Industry Focus from Negative to Positive

As an industry, can we lead our companies to turn this waste into an asset?

Presentation OutlinePresentation Outline

Critical issues to consider in the United StatesWhat is the impact of the extended drought in this area?

This is especially true for the western US.How are local water districts responding to this draught

and energy development?What are the regulations regarding reuse of production

fluids?What issues have we found and resolved in this area.What still needs to be resolved?

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Critical Issues Facing the USUse of hydraulic fracturing increases supply of

domestic energyFirst time since 1990, the US was able to meet

the Kyoto Protocols – lowest level since 1983 (EIA report)Energy independence – how important is this?

Critical Issues to Consider in the USConsider in the USWater Use

Well development – 1,500 to 15,000 bbl/well

Well Hydraulic Fracturing –70,000 to 120,000 bbl/well

Chemistry for hydraulic fracturing – what you put in you will need to treat if reuse is a consideration

Control of fluids, especially on the surface

New Federal Regulations vs. State Regulations

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Water Use and Requirements –

D ht C ditiDrought Conditions

Drought conditions are either severe or extreme in Western US – this is especially true in the oil field areas of Colorado, Wyoming, New Mexico and Texasand Texas

Predictions of future conditions is continued drought

Where will the water come from?

What is the impact of the drought on energy production?

Availability of water in Permian Basin with extended drought Colorado River basin issues Municipal water supplies are stretched already

Lake JB Thomas 0.50% full (0.1% 6 months ago)

EV Spence Reservoir 5.1% full (0.2% 6 months ago)

OH Ivie Reservoir 20 7% full

Full Reservoir

OH Ivie Reservoir 20.7% full Requirement for District is to supply water for

drinking and public safety – water for E&P operations is not a concern and very limited at this point

“If you don’t have water, you can’t attract industry” – Guy Andrews – Economic Development Director – Odessa Texas

Current Conditions

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Water Use as a Function of Overall Water Management

Water Use in Western US

What is the percentage of total fracking and energy development = 0.14% of total use in the US typical - (example is Colorado)

Largest use is Agricultural at 85% Second highest use is Municipal and Industrial at 7% All others is 8% This 0.14% equals the amount of water used on an annual basis by the City

of Denver.

Agricultural Use

Municipal

Other

Fracking

So what is the issue? Can’t we get more water from Agriculture?g

Agricultural use is increasingEnvironmental groups are

fighting fracking and energy development in general

Agricultural use has to increase production and use of waterp

Municipal uses are increasingOil and Gas can out bid all

othersWater from Agriculture will be a

PR nightmareE&P paid 100% higher bid than farmers

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What are the impacts short and long term?

Water is very limited but required for fracking operations The ability of obtaining water from fresh water sources is severely

restrictedWhat are the options for frack make up water?

Reuse of waterWhat are the water quality requirementsWhat are the treatment issues

Is Brackish Water a potential?Western US has numerous brackish water supplies that can

be treated for frack water make upWater Rights – is it that difficult? Can water reuse affect the formation due to undesirable

precipitation

Brackish Water in the USBrackish Water in the US• Efforts to find new untapped water

supplies in the US

• NAS study on desalination

• Constraints are not the technology, but the financial, environmental and social factors

• Participation is needed by all in the development of this resource to limit any significant issues associated with this treatment

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Inland Desalination a Now-Attainable Solution

Resources

Saline Aquifers

Oil, Gas and Coal Basins

Resources

O• Opportunity to convert produced water disposal cost to new water supply

Kevin Price, USBR

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Environmental regulations that effect

ater se and re se?

What is the EPA doing now? Hydraulic Fracturing study authorized by

US Congresswater use and reuse? US Congress (http://www.epa.gov/hfstudy/)

Environmental Regulations Does EPA have the ability to regulate produced Does EPA have the ability to regulate produced

water and flowback water? Discharge to waters of the US – Industrial

pretreatment regulations – CWA (40 CFR 435) 2010 Effluent Guidelines for Shale Gas

Extraction http://water.epa.gov/lawsregs/lawsguidance/cwa/304m/factsheet2011.cfm#summary)y)

Reuse for energy production would likely be exempt Evaporation pits

Air Quality permits – Title V permits State Exclusions – Pennsylvania Class II

Injection wells – expensive and waste of water resource

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What are the types of reuse available?

Water Reuse facilitiesWater rights in western US

Groundwater sources – brackish water potentialSurface water dischargeRequires the highest type of treatment but allows for

unlimited reuse of the waterunlimited reuse of the waterFrack water makeupSome limitations but treatment is straightforward for

treatment of this type of waterBrine issues – this is the toughest issue associated with

treatment of produced or brackish waters

Reuse (Rather than Disposal or Evaporation) Where Possible

Is Surface Water Discharge Reuse

an Option?Is this possible? Yes - We have

permitted surface water discharges in both Colorado and Utah

Surface water discharge opportunitiesDischarge permitSubsurface discharge

Water Rights associated with produced waterColorado experienceOther western states

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History of Ownership of Produced Water

Western States other than Coloradoof Produced Water

Colorado Example• Tributary – Non-Tributary

Groundwater• HB 1303 – how does this

apply in Colorado• SB 165 – produced water

beneficial use

Colorado

• Prior appropriation for surface water

• Permit System• First in Use – First in Right• Groundwater basins – use

within the basin and controlbeneficial use• COGCC Rules (907)

within the basin and control by water boards

NPDES Permit – Surface Water DischargeWater Discharge

NPDES Discharge Permit Individual permit

Allows for stream mixing and dilutionExtensive time to obtain permit – 16 to

18 months State Wide Permit

Lower limits – no mixing zoneLower limits no mixing zoneLimits are set2 months to obtain permitOnly few states have this type of permit

but others are looking to follow Colorado’s example

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Subsurface Discharge to a Surface Water Source

Still obtain NPDES Discharge permitNeed for groundwater monitoring programVery tight limits on monitoring but if company

owns the property, you can get your compliance point considerably downstreampoint considerably downstream

Issue with upstream vs. downstream valuesTime issues with monitoringPotential for aquifer storage recharge – water on

demand and its value

• Southwest US Facility:• Individual permit with surface

di h itExample Permit

Conditions

discharge permit• Very tight metals control• TDS control (<500 ppm)• Sodium control (<250)• Adjustment of hardness

• Colorado Facility:• Individual permit with

Westwater Utah

psubsurface discharge

• SAR Control• Benzene is the controlling

parameter• Discharge to subsurface

aquiferWellington Colorado

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Wastewater Characteristics and treatment concerns

Note – fracking fluid is less than 0.5% of the overall fluid but hhas some issues with treatment

Wastewater Characteristics Spent Fluids

Minerals Brines 10% to 50+% of the original fracking fluid content Natural formation waters

Radionuclide’s Issues for treatment

G l’ ll l d li k Gel’s – cellulose, guar gums and crosslinks Organic-Metallic crosslinks with zirconium, chromium, antimony,

titanium Oil components such as asphaltines, paraffin's, etc Specific chemicals for the formation and fracking requirements

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Most Difficult Issues for Water Reuse Filtration of the water

Guar gum is the most difficult item to treat and potentially the most expensive

Ranges: 200 ppm to 20,000 ppm

Metals are an issue – Scale formers or accelerant

Guar Gumformers or accelerant Hardness (Ca & Mg) needs

to be reduced Silica and Barium need to be

reduced Boron Iron

Scale Forming Salts – Removal Targets

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Difficult Issues for Water ReuseControl of organicsAsphaltinesParafins

Control of SaltDischarge to water waysControl of SAR (Sodium Absorbtion Ratio)

C t l f i bControl of microbesDifficult filtration issueSulfate reducing bacteria

Water injection into Formation – TAMU studyWater Discharge Issues – CSM RPSEA Study

Flowback Chemistry Example (mg/L)

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Wide Variation Flowback Chemistry (mg/L)

Note the changes in frack water chemistry with different formations and variability

Water Quality for ReuseWhat water quality is needed for reuse?Economics is Primary DriverControl of organics – need for organic free water Petroleum Hydrocarbon Removal(TOC less than 5 to 10 mg/l)

Removal of friction reducers & polymer additivesRemoval of inorganic scale forming compoundsBacteria - SRB Removal / Render InertLower TDS to local exploration companyWQ standards continually being revised.

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Water Quality for Reuse

Several Companies have set internal goals of 50% reuse which is matching EPA goals

Some are going for a “Net Positive Water Production Goal” Control of salt concentrations

Control of salt verses changing chemistry for fracking solutions – economic evaluation

Custom water quality as needed Energy Economics of Increased TDS Feed < 750 mg/L TDS = IX Feed of 750-40,000 mg/L TDS = Nano / RO Feed of 40,000 – 260,000 mg/L TDS = Evaporation Feed > 260,000 mg/L TDS = Crystallization

Water Quality for Reuse

EPA Standards can govern applications depending on final use of the frack water or produced waterWatch the EPA Clean Water Act revisions to the

categorical standardsBe aware of the EPA Hydraulic Fracturing workshops

and final reportand final reportIf controlling salts, what is done with the brine waters

that are generated?Metals harvesting – Lithium examplePeriodic chart

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Techniques for Treatment of Fracking Wastewater

Control of VOC’s Benzene is typically the issue Air Stripping (80% removal but might require air permitting) Granular Activated Carbon (99+% removal but expensive with respect

to the loading) Control of Heavy Oils Paraffin's, asphalts, guar gum, etc can be controlled utilizing a walnut

shell filter WSF will remove a majority of the organics, but small particles of less

than 1 micron is size is typically found in the WSF effluent Destabilization of metals and organics Electrocoagulation v. chemical precipitation Typically the economic breakpoint is 30 ppm of chemistry or more will

likely favor EC

Li id S lid ti t h i

Techniques for Treatment of Fracking Wastewater

Liquid Solid separation techniques Clarifiers Membranes

Polymeric Inorganic – Ceramic

Tri-media Pressure Filtration Removal of dissolved organics Activated carbon Surface activated zeolites Surface activated zeolites

Removal or control of salts - when required Removal of monovalent ions

IX, Nano/RO, Evaporation, Crystallization Recovery of brine chemistry for reuse

Chlor-Alkali process to (HCL or NaOH)Ten pound brine for drilling operations

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Fresh

11/784,569 - Purification of oilfield Water for beneficial use (1-5)

Water &Products

6,348,154- Methods to remove heavy metals from water - rare earth minerals harvesting (4)

VOC

Polishing

Micro Plant Footprint

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Economic DriversEconomics is the key to water managementCost of treatment needs to compete favorably with

cost of injectionTransportation Treatment costsWater chemistry (Texas A&M Study formation

t d )study)Evaporation pits will likely not be an option in the

futureWith the water requirements from different industry

sectors, it will be very difficult to obtain water for drilling programs without reuse

Summary – What have we learned?Water use for E&P operations is critical to the future of the

industry Produced Water can meet surface water discharge requirements Discharge permits can be to the surface or subsurface State Wide permits are available in some states and allow for

expedited permitting Discharge standards can be daunting but with careful design can

be metbe met Be aware of what you add to your fracking fluids as this is what

you will need to remove Brine reuse and recycling should be considered Harvesting of metals should be considered in the future to offset

costs

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Water Rights associated with produced water turn this waste into an assetSummary – What have we Produced Water Reuse

Site specificFormation will add constituents that might be an issue

Hydraulic Fracturing Flowback Water ReuseViability highly dependant

learned?

Viability highly dependantTransportation EconomicsDisposal Economics & AvailabilityTreatment Economics (TDS – key driver)

Summary – What have we learned?y

Treatment – becoming more refined Customized to influent characteristics & output req.Mobile or Centralized depending on volumes and

transportation Pre-treatment removal is key to success

Organics H d & M l Hardness & Metals Particulates Bacteria Control

If organics and scaling compounds removed, reuse may be achieved without TDS removal in some cases

Water reuse will likely become SOP in many areas

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