## 100% Frac Water Recycling - Strategy & Focus **April 13, 2011**

**1**

# Agenda **• Criteria for Frac Water Recycling**  

## • **On-Site Treatment vs. Off-Site Treatment** 

## • **Case Study #1 - On-Site Treatment** 

## • **Case Study #2 - Off-Site Treatment** 

## • **Ecosphere’s Ozonix Technology** 

## • **Implications for the Operator**

**2**

## • **Ecosphere Has Over 15** **Years of Water Treatment Experience** 

## • **Ecosphere Has Over 2** **Years of Shale Gas Operating Experience** 

## • **Ecosphere Has Treated Over 15,000,000**  **bbl of Frac Fluid with Recycled Water** 

## • **Ecosphere Has Recycled Over 1,000,000**  **bbl of Produced Water**  

## • **Ecosphere’s Technology Has Been Proven By Third-Party Labs:** 

## • **Results Gathered for Over 300** **Wells** 

## • **Ecosphere Has Eliminated 450,000 +** **Gallons of Biocide from Frac Operations** 

# Ecosphere Facts

**3**

# Industry Concerns **• Water Resourcing and Permitting Issues**  

## • **Availability and Cost of Disposal** 

## • **Regulatory Changes** 

## • **Compatibility of Recycled Waters with Traditional Frac Systems** 

## • **Challenges of Recycling Water** 

## • **Political Pressure and Stakeholder Perception** 

## • **HSE Issues:** 

## • **Hazardous Chemicals** 

## • **Road Damage & Impact on Infrastructure**

**4**

# Why Should Operators Recycle Water ? **• Less Fresh Water Consumption**  

## • **Reduces The Need For Disposal** 

## • **Reduces Regulatory Exposure** 

## • **Reduction of Liability Exposure** 

## • **Reduces Truck Traffic and Impact On Roads** 

## • **Extends the Economic Viability of the Play** 

## • **Improves Stakeholder Perception** 

## • **Reduces The Carbon Footprint** 

## • **Risk Mitigation**

**5**

# Where to Treat Water ? **On-Site**

**6**

# Where to Treat Water ? **Off-Site**

**7**

# Case Study #1 **On-Site Treatment - Fayetteville Shale**
**How to Eliminate Chemicals at 120 bbl/min (5,000 gal/min) On-Site?**
**8**

## • **Operations Began in Nov. 2009** 

## • **100% of Frac Fluid Treated On Site, “On The Fly”**  

## • **Eliminating Chemicals** 

## • **Destroying Bacteria** 

## • **Averaging 9 Wells Per Month** 

## • **Continuous Operations (24/7)** 

### On-Site Treatment - Fayetteville Shale 

# Case Study #1

**9**

## • **15,000,000 + bbl Processed** 

## • **1,400 + Frac Stages** 

## • **120 + Wells Completed** 

## • **120 bbl/min Capabilities** 

### On-Site Treatment - Fayetteville Shale 

# Case Study #1 **FACTS:**

**10 11,875,000 bbl of Fresh Water**  **Saved Per Year** 

# Case Study #1

**Flowback**

**Water Ground** 

**Water 65%**  **35% Recycled** 

**Water 81%**  **Fresh Water**  **19% High of 41% Recycled Water**  **Approximately 500 Wells / Year Approximately 125,000 bbl / Well**  

### Typical Fayetteville Frac Blend

**11**

### Microbial Control 

# Case Study #1 **On-Site Scenario:** 

## • **3-Well Pad** 

## • **120,000 bbl Frac’s** 

## • **11 Stage Wells** 

## • **Treated at 100 + Bbl / Min** 

## • **Continuous Operations !"!!**  **!"#!! !"##!!**  **!"$###!! !"#$###!!**  **!"##$###!! !"$###$###!!** 

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**12**

# Case Study # 2 **Off-Site Treatment - Woodford Shale**
**Recycling Produced Water at a Centralized Facility**
**13**

# Case Study # 2 **Off-Site Treatment - Woodford Shale** 

## • **Operations Began in Dec. 2008** 

## • **100% Treated at a Central Location:** 

## • **Recycled Produced Water** 

## • **Flowback Water** 

## • **Ozonix Technology + Coagulation + TSS Separation (1-5**  !**m)**

**14**

### Off-Site Treatment - Woodford Shale



## • **915,000 + bbl Processed** 

## • **200 Wells Completed** 

## • **TDS Range:** 

## • **160,000 - 180,000 mg/l FACTS:**  

# Case Study # 2

**15**

### Scale Inhibition **Centralized Facility Scenario:** 

## • **Dynamic Tube Blocking Test:** 

## • **Measures Scale Inhibition** 

## • **Conducted by Third Party (Weatherford Labs)**  

## • **170,000 mg/l TDS** 

## • **Treated at 200 bbl/Hour** 

## • **Fluid treated at 200 barrels per hour**  

# Case Study # 2

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**16 USPTO Green Tech Fast Track Program**  **Approved Patents: United States Patent No. 7,699,994 United States Patent No. 7,699,988 United States Patent No. 7,785,470 Ozone**  **(O !** **) Acoustic**  **Cavitation Hydrodynamic**  **Cavitation Electro-Chemical**  **Precipitation +**  **+** 

# What is the Ecosphere Technology?

**17 Customer Driven Evolution**  **EF-10 (EF-600) EF-20 (EF-1200)**  **EF-60 Rated for 10 Barrels Per Minute**  **Rated for 20 Barrels Per Minute Rated for 60 Barrels Per Minute**  

# The Ecosphere Evolution

**18 ELIMINATE CHEMICALS**  **RECYCLE FLUID BENEFITS**  **HEALTH & SAFETY ENVIRONMENT**  **POLITICAL RHETORIC COST CONSIDERATIONS**  **Replace Biocides and Scale Inhibitors Improve Friction Reducer Compatibility**  **Reuse Flowback Water and Produced Fluid Eliminate Dangerous Exposure to Chemicals**  **Reduce Truck Traffic Keep NORM in a Closed-Loop**  **Eliminate Chemical Spills Reduce CO2 Emissions**  **Reduce Fresh Water Usage "Injecting Chemically-Laden Fluid...."**  **"Depleting Fresh Water Sources...." Biocide Cost**  **Freshwater Purchasing and Transfer Scale Inhibitor Cost**  **Trucking Hours Friction Reducer Cost**  **Injection Cost Road Repair**  

# Implications

**19**

# Eliminate Chemicals . Recycle Fluid **Ecos Frac ®** 

**20 21**