# 2012 INTERNATIONAL PRESENTATION

Presented By: 

# Water Management Strategy

Trican Well Service , L.P. | 5825 N Sam Houston Pkwy W | Houston, TX 77086 | P: (281)716.9152 | F: (281)716.9211 | www.trican.us 

## Recycling Water Frank Zamora

# Fast Facts

• Fracture Stimulation is a safe and proven technology

• Used for more than 60 years; 1 million applications

• Used to safely and effectively recover natural gas from
hard

- to

- produce resources trapped in deep shale and other unconventional formations deep below ground.

• No confirmed cases of drinking

- water contamination



# • Fracture Stimulation is KEY to releasing America's abundant domestic supply
of clean

- burning natural gas



# – Required for 60

- 80% of
wells drilled in the U.S. during the next decade

# Developing Your Water Management Strategy

• Company Philosophy and Decision Drivers



# • Frac design

• Source Water Options, Costs, Sustainability

• Wastewater volumes and chemistries



# • Current operational practices and development plans (Reuse capacity)

• Engineered

- for

- purpose solution(s)

• Adaptability and Flexibility



# • Frac design

# North American Shale Gas & Oil Plays

• Barnett

• Marcellus



## • Montney

• Horn River

• Haynesville

• Eagle Ford

• Woodford



## • Fayetteville

• Utica

• Niobrara

• Antrim

• Monterey

• Mancos

# Hydraulic Fracturing Uses High Volumes of Fresh

Water

## Frac Fluid Chemistry

Source: Energy in Defense

# Trican Water Philosophy

• What kind of environmental steward do you want to be? You
have choices!

– Less than 1% of the earth’s water is potable quality



# – Agriculture and most other industries don’t remove water from the cycle (e.g. little to no deep well injection)

– The technologies exist to keep all E&P waste in the water cycle

– All models are predicting MAJOR battles for freshwater emerging in the next 10 years

# Water Philosophy

• How are the key drivers around water affecting your company?

– How much water do you need to develop your field?

• What type of source waters are available to you?

• What type of regulations are threatening the use of each source?



# – How much wastewater are you going to produce?

• What risks are associated with your wastewater management strategy?



# – What is your well

- completion strategy and how does your source water (base

- fluid) affect that strategy?

# Water is a Major Consideration in


# Shale Wells

# Water Philosophy

• We will only change when forced to change

• We’ll change before we are forced to change if the



# water

- balance sheet economics are favorable (or at least not unfavorable)

• We’ll change before we are forced to change if the Net D,C, & LOE are favorable and well productivity is not compromised

• We want to participate in reuse practices and be known as a leader in our industry

The choice you make initially will have operational and economic consequences and subsequent changes to your water management strategy will be more difficult and costly!

# Wastewater Volumes and Chemistries A ffect H ow



# Y ou S tructure Y

our R ecycling P rogram.

• Ponds, frac tanks, surface tanks, bladders, or on

- the

- fly

• Treatment process (Salinity of reclaimed water is a big factor)

• Trucks, temporary pipeline, permanent pipeline

• Reuse schedule, geography, and seasonal considerations



# • Final waste disposition plan

# Three Primary Types of E&P Wastewater

• Drilling Fluids

– Water

- based mud



# – Rig supply water

• Completion Fluids

– Stimulation fluid (upstream frac water)



# – Flowback (downstream frac wastewater)

– Workover fluid

• Production Fluids



# – Geological saltwater produced with the hydrocarbons The chemistry, volume, rate, and logistical timing of each type of fluid is unique to EACH well

# Current Operational Practices and



# Development Plans (Reuse Capacity) FLUID VOLUME NEEDED WASTEWATER VOLUME AVAILABLE 

### FLUID COMPATIBILITY



### STORAGE, & TRANSFER LOGISTICS Drilling Design

Completi on Design

Frac


### Drill

- Out
Work

over Drilling

Waste

Completi

on Waste

Productio

n Waste

### Reserve Pit

Water (100%) Flowback

Water (100%) Produced
Saltwater (100%)

WB Drilling Solids (100%) OB Drilling Solids (100%) Reclaimed

Pit Water (90%)

Slurry (10%) Reclaimed
Flowback

Water (90%)

Slurry (10%) Reclaimed
Salt Water (90%)

Slurry (10%)

2’ recov. (90%)

Solids 2’ recov. (90%)

Solids 2’ recov. (90%)

Solids 2’ recovery

(90%)

Solids 2’ recovery

(90%)

Solids

Road base, Soil Stabilization, Firewalls, Ponds, or
other reuse
materials >99% of the hydrocarbons Recycled as Oil 

### Reclaimed Water (95%)

Can be separated into individual streams or comingled into one stream 

# 100 % E&P Waste Treatment Flow Diagram

Can be treated as four separated waste streams or comingled into one stream prior to treatment Liquid Waste Streams

Solid Waste Streams

Emerald Surf can also provide logistical supervision and
coordination of all water activities in the field Coil 

### Tubing
Flowback (100%)

Reclaimed

CT Water (90%)

Slurry (10%)

2’ recov. (90%)

Solids(Poor) Reclaimed Oilfield Waste Water Quality (High) 

# Wastewater Treatment Optimization

No

Treatment Course

Filtration Course

Filtration w/ Dilution Chemical

Treatment & Separation Designer

Chemicals & Separation RO / FO /

Evaporation

(Low) Reclaimed Wastewater Treatment cost (High)

(High) Down

- hole Quality Risks (reuse) / Environmental Risks (discharge) (Low)

High Scale, High Bacteria, High Suspended Solids, High TDS High Scale,

Mod. Bacteria,
Mod. Suspended Solids, High TDS Mod. Scale,

Mod. Bacteria,

Low Suspended Solids,
Mod TDS Mod. Scale,

Low Bacteria,

Low Suspended Solids,
Mod TDS Low Scale,

Low Bacteria,
Ultra

- Low Suspended Solids,
Mod TDS Ultra

- Low

Scale, No Bacteria,

No Suspended
Solids

Low TDS

# No “One

- size

- fits

- all”

• Evaluate all potential disposal, reuse, and treatment options

• Custom design each solution to maximize the benefits
and minimize the costs

• Consider dozens of technologies that can be incorporated into the optimum solution



# • Integrate engineering and field experience to seamlessly implement the solution

# Technology Competencies & Services to Consider

• Material Sciences

– Chemistry

– Flocculation

– Coagulation



### – Solidification / Separation



### • Membrane Systems and Manufacturing

• Reverse Osmosis / Nano Filtration

• Forward Osmosis

• Ultra Filtration



### • Evaporation / ZLD

• Microfiltration Systems

• EC

- Electrocoagulation

• Advance Oxidation

• Oilfield Engineering & Well

- site Supervision

• Oilfield Environmental Consulting

• Logistics Support Services

• Solid Waste Management

• Optimized Fluid System Design and QA

## Example 1: Recycling Reserve Pit Waste w/ FO


## for reuse as Completion Fluid

# Location Layout with FO MachineSource Water Options, Costs, Sustainability

Surface, Ground (fresh or brackish) Freshwater, 20,000 bbls @ $0.50/bbl Acquisition, storage and transport costs Vacuum Truck, 154 loads @ $2.30/bbl Storage capacity, geography, and infrastructure Frac Tanks, 8, 500 bbl tanks @ $0.33/bbl $3.13/bbl Wastewater volumes and chemistries
Drilling Mud Water based mud, 20,000 bbls @ $2.00/bbl Transport to commercial disposal facility Vacuum Truck, 154 loads @ $2.30/bbl $4.30/bbl Current operational practices and development plans (Reuse capacity)
Completion Fluid Design Hybrid gel frac, 150,000 bbls

__________ 26% NaCl clay control, 2% = 11,5K bbls @ $3.73/bbl

$11.16/bbl

Engineered

- for

- purpose solution(s)
Fluid storage (temporary or permanent) Frac Tanks, 8, 500 bbls tanks @ $0.33/bbl Fluid transfer (temporary or permanent) 4x4 pump w/ fastline @ $0.22/bbl Treatment process (portable / continuous operation) Forward Osmosis @ $4.50/bbl
Waste management Return to Reserve pit for burial @ $1.10/bbl Regulatory permitting LA CFR 29

- B @ $0.06/bbl Operational oversight ESS Field Engineers

__________ $6.21/bbl 

## Example 1: Recycling Reserve Pit Waste w/ FO

for reuse as Completion Fluid

### Example 2: Removing contaminants from produced saltwater to



### make clean brine concentrate for reuse during hydraulic frac operations

Mobile produced

water treatment facility was set up at
saltwater storage


### site

Produced 13,000 bbls of clean 18% NaCl from dirty Cotton Valley saltwater Fractured all 14 stages with

cross

- linked gel, 2% NaCl downholeSource Water Options, Costs, Sustainability

Surface, Ground (fresh or brackish) Groundwater, 13,000 bbls @ $0.20/bbl Acquisition, storage and transport costs Surface transfer @ $0.50/bbl Storage capacity, geography, and infrastructure Frac Tanks, 8, 500 bbl tanks @ $0.33/bbl $1.03/bbl Wastewater volumes and chemistries

Produced Salt Water 180,000 TDS 13,000 bbls @ $0.47/bbl Transport to infield disposal facility In

- field gather system @ $0.10/bbl $0.57/bbl Current operational practices and development plans (Reuse capacity)
Completion Fluid Design Hybrid gel frac, 120,000 bbls

__________ KCl

- sub clay control, 2% = 24K bbls

- eq. @ $8.00/bbl

$9.60/bbl

Engineered

- for

- purpose solution(s)
Fluid storage (temporary or permanent) Frac Tanks, 9, 500 bbls tanks @ $0.37/bbl Fluid transfer (temporary or permanent) 4x4 pump w/ fastline @ $0.65/bbl Treatment process (portable / batch operation) ‘Sludge Hammer” to 18% NaCl @ $5.15/bbl
Waste management Class II Solid Waste facility @ $2.50/bbl Regulatory permitting LA CFR 29

- B Operational oversight ESS Field Engineers

__________ $8.67/bbl



### Example 2: Removing contaminants from produced saltwater to make clean brine concentrate for reuse during hydraulic frac operationsEagleford Shale Flow Back Treatment

200 feet 

### Before

Treatment After

Treatment
350,000 bbls

70,000

bbls

Processing Equipment 

### & Housing 

## Example 3: Removing solids and contaminants from
flowback reuse on hydro frac operations

• 265,000 bbls (11,130,000 gallons) of flowback reclaimed in 4 days of operations

• 600 bbls of merchantable oil reclaimedSource Water Options, Costs, Sustainability

Surface, Ground (fresh or brackish) Groundwater, 265K bbls @ $0.50/bbl Acquisition, storage and transport costs In

- ground pond + pipeline @ $0.50/bbl Storage capacity, geography, and infrastructure Frac Tanks, 20, 500 bbl tanks @ $0.83/bbl $1.83/bbl Wastewater volumes and chemistries

Flowback 40,000 TDS 265K bbls @ $2.00/bbl Transport to commercial disposal facility Vacuum Truck @ $4.75/bbl $6.75/bbl Current operational practices and development plans (Reuse capacity)
Completion Fluid Design Hybrid gel frac, 140,000 bbls

__________

$8.58/bbl

Engineered

- for

- purpose solution(s)
Fluid storage (temporary or permanent) Flowback pond @ $0.67/bbl Fluid transfer (temporary or permanent) 10x8 pump w/ fastline @ $2.35/bbl Treatment process (portable / batch operation) ‘’ES84” to 4% NaCl @ $2.35/bbl
Waste management In

- pond, in

- situ remediation Regulatory permitting TX RRC Rule 8 Operational oversight ESS Field Engineers

__________ $5.37/bbl Reclaimed oil ‘Rebate’ = 600 bbls @ $90/bbl = $54,000 $0.20/bbl $5.17/bbl 

### Example 3: Removing solids and contaminants from

flowback reuse on hydro frac operations

### Example 4: Six well flowback reclamation for 3

- well frac

~1⁄4 mile

Frac Site 3 well Hybrid
Flowback 3 well
Slickwater
Flowback

Reclamation Equipment

Over 36,000 bbls of flowback was
reclaimed on

- the

- fly from the well head for reuse with hybrid frac gel
system.

Up to 80% reclaimed fluid was pumped on some stages without any
frac fluid interference.Source Water Options, Costs, Sustainability

Surface, Ground (fresh or brackish) Groundwater, 36K bbls @ $0.50/bbl Acquisition, storage and transport costs Surface pipeline @ $0.60/bbl Storage capacity, geography, and infrastructure Frac Tanks, 20, 500 bbl tanks @ $0.83/bbl $1.83/bbl Wastewater volumes and chemistries

Flowback 20K

- 40K TDS 36K bbls @ $2.00/bbl Transport to commercial disposal facility Vacuum Truck @ $4.75/bbl $6.75/bbl Current operational practices and development plans (Reuse capacity)
Completion Fluid Design Hybrid gel frac, 140,000 bbls

__________

$8.58/bbl

Engineered

- for

- purpose solution(s)
Fluid storage (temporary or permanent) Frac Tanks, 20, 500 bbl tanks @ $0.83/bbl Fluid transfer (temporary or permanent) 10x8 pump w/ 8” victaulic seal @ $0.78/bbl Treatment process (portable / batch operation) ‘’ES84” to 4% NaCl @ $2.25/bbl
Waste management Commercial disposal Regulatory permitting TX RRC Rule 8 Operational oversight ESS Field Engineers

__________ $3.86/bbl 

### Example 4: Six well flowback reclamation for 3

- well frac

# Adaptability and Flexibility

– Field development plans

• Will change w/ commodity prices

• Will change w/ acreage performance



# – Contingency plans

• Are your service providers able to change with you?

# Adaptability and Flexibility

– Dynamic water chemistries

• Water chemistry will change

• What changes will need to be made when this happens?



# – Seasonal operational considerations

• Freezing

• Temperature effect on treatment efficiency

• Logistics impact

# Spraberry Frac Fluid

# Developing Your Water Management Strategy 

# Summary

• Frac Plan and Design



# • Environmental Steward

• Best Economics on Freshwater Sources

• Overall Plan to acquire Recycled water



# • Engineered

- for

- purpose solution(s)

– Cost effective Storage to minimize fresh water

• Adaptability and Flexibility



# – Field development plan to develop approaches for a

cost

- effective water supply

• Frac Design to Optimize limits

# Any Questions?

Thank you.