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www.altelainc.com 1
CWAG 2010
WATER LAW CONFERENCE
The Broadmoor Colorado Springs, Colorado
April 29 – 30, 2010
www.altelainc.com 2
CWAG 2010
WATER LAW CONFERENCE
The Broadmoor Colorado Springs, Colorado
April 29 – 30, 2010
www.altelainc.com 3
Denver Technology Center
Denver, CO 80111
(303) 993-1950
PRODUCED WATERTreat and Re-Use
Matthew Bruff, Esq.
April 29, 2010
CWAG 2010 Water Law Conference
The Broadmoor, Colorado Springs, COApril 29-30, 2010
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Brief Agenda
Economics of Produced Water (“PW”)
AltelaRain® Produced Water Treatment
Produced Water Re-Use Permitting
Where Technology Has Been Deployed
Conclusions & Next Steps in PW Re-Use
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What is water worth?
$1,000,000/gal to a millionaire dying of thirst
$25/acre-foot to an agricultural irrigator (that’s $0.0001/gal)
Bottom line: the ‘worth’ of water spans a HUGE spectrum (1010th, or a span of 10,000,000,000 times)
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Economics of Water
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Produced Water: Oil & Gas producers often pay 40 times as much to get rid of a
gallon of dirty water, as you and I pay for a gallon of clean water PW limits the economic life of a well, not the amount of oil or gas
underground By lowering the cost of PW disposal, more energy can be made
from the same well – and the U.S. and NM domestic ‘known reserves’ can be increased
By cleaning this PW, costs can be lowered and the water given away for free for valuable re-use in the arid west
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Economics of Produced Water
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Initial target market is the oil and gas industry’s expensive produced water and frac water
Applicable to any water remediation or desalination
Has developed a new water desalination product
Altela’s product is in the field, generating revenue
The Company
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The Technology
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Altela understood from day one it is all about cutting edge technology AND PW “re-use”
Regulatory landscape clearly tightening around E&P companies and ‘traditional’ PW disposal
This regulatory change is a key driver of Altela’s technology deployment
Legal and Regulatory Permitting
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Treating Water Naturally
Resource Conservation&
Recovery Act 1976(RCRA)
Subtitle C Exception (1980)
Oil and Gas Industry Waste
Underground Re-Injection(Safe Drinking Water Act)
Surface Discharge(Clean Water Act)
Navigable Waters (NPDES)
Land Application(Surface Discharge)
POTWIrrigation & Livestock
AgriculturalDust
Suppression
Frac &Well Completion
In-StreamFlow
Surface Impoundments & Landfills
(Pits, Land Farming)
AquiferRecharge
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Legal and Regulatory Permitting (cont’d)
Altela has successfully obtained precedent-setting produced water re-use permits & approval from US EPA, Navajo EPA, State of CO, State of NM, State of PA, U.S. Bureau of Land Management
Altela and related treatment companies are contributing to the development of produced water re-use laws and regulations
Deployment of AltelaRain® Systems provide catalyst of beneficial use of produced water = water rights
Its only the first chapter – water runs uphill to highest beneficial use and resulting environmental sustainability of E&P industry
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Produced Water Re-Use Regulatory Permits
2005: First-ever approval in New Mexico to surface discharge treated, purified produced water for re-use
2007: US EPA-based approval for a centralized produced water treatment facility for in-stream flow and aquifer recharge through a publicly owned treatment works (POTW)
2007: First-ever Navajo Nation environmental permit to surface discharge treated, purified produced water for irrigation, livestock, and agricultural re-use
2008: Non-tributary water right approval for beneficial use of treated, PW in Colorado within the Colorado River Basin
2008: Approval to discharge treated, clean PW into the Colorado River Basin for beneficial use
2008: Canadian permit obtained
2009: Marcellus well-pad and re-use approval
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Treatment of Produced Water,
Piceance Basin, CO
Real-world customer PW is high in both TDS and BTEX
Single pass through Altela tower strips clean distilled water (DW, on left) from black foul-smelling oilfield water (PW, on right)
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Treatment of 6X Frac Water, Piceance Basin, CO
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Basin: San Juan, New Mexico
PW Quality: ~40,000 TDS
Replaces PW delivered to commercial facility, reduces cost and truck miles through City roads
Agencies: NMOCD, City of Farmington, U.S. EPA
Blackshawl Installation – Farmington, NM
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Making Water from Waste
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Following treatment, water available for irrigation, agricultural and livestock re-use
Extremely dry, water starved area of the Nation
First permits of their kind
Navajo EPA monitoring requirement 31 parameters
Navajo Nation Installation, San Juan Basin
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Making Water from Waste
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Produced Water TreatmentNear Spirit River, Canada
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Frac & Produced Water Treatment Marcellus Basin, PA
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Piceance Basin Installation, Rifle CO
COGCC Rule 907 Re-use of water Discharge directly into the Colorado River Drainage Land Application (Beneficial Re-use of the Water) Classified as ‘Waste’ or ‘Asset’ (Water Right)
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The Set-up
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Colorado River
Irrigatable Acreage
City of Rifle Treatment Plant (POTW)
T&E Reach of CO River
Potable Water Reach of CO River
Supports More Water, More Energy, Less Waste Act of 2007
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Multi-jurisdictional landscape increases challenges
Successful case examples of produced water treatment and re-use increasing
Regulatory landscape evolving and developing to meet such re-use applications
Changes in Produced Water regulations providing catalyst for beneficial re-use
In many cases, no precedent exists; field data imperative
Conclusions
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www.altelainc.comwww.altelainc.com Treating water naturally.
"A promise is a cloud; fulfillment is rain."
Arabian proverb
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Contact Information:
Matthew Bruff, Esq.
(303) 960-9105
5350 South Roslyn Street, Suite 450
Englewood, CO 80111
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www.altelainc.com 24
CWAG 2010
WATER LAW CONFERENCE
The Broadmoor Colorado Springs, Colorado
April 29 – 30, 2010
www.altelainc.com 25
CWAG 2010
WATER LAW CONFERENCE
The Broadmoor Colorado Springs, Colorado
April 29 – 30, 2010
