### Outlining Water Storage Options for Fracturing Operations to Highlight Economic Options D. Steven Tipton, P.E. June 26,2013 Mississippi Lime Production & Produced Water Congress 2013 Oklahoma City, OK

# Water
! Water, like religion and ideology, has the power to move millions of people. Since the very birth of human civilization, people have moved to settle close to it. People move when there is too little of it. People move when there is too much of it. People journey down it. People write, sing and dance about it. People fight over it. And all people, everywhere and every day, need it. Mikhail Gorbachev

# Significance of Water to Our Business
! More than ever, water is an integral part of the success of oil and gas operations in shale basins. So, think about this

! No Water

! No Fracturing

! No Oil and Gas – Resource Plays

3! Water source • Subsurface aquifers • Rivers, lakes or ponds • Rural or urban water supplies • Gray Water • Acid Mine Drainage ! Water transport • Pipeline • Trucking ! Water storage • Frac Tanks (500 bbls) • Modular Tanks (up to 40,000 bbls) • Portadam (size as required) • Pits or ponds (100,000+ bbls) ! Water treatment and reuse • Biocides • Settling • Ecosphere • Electrocoagulation • Distillation • Crystallization ! Water disposal • Evaporation • Water disposal wells



### . Acquire Transport Store Stimulate Flowback Dispose/ Recycle

# Water Storage

# Why Is Water Storage Important?

! Water is the base fluid and biggest component of any hydraulic fracturing operation ! Water volumes required for typical completions range from 100,000 to 500,000 barrels per well ! Water must be stored near the completion operation in sufficient quantities to finish a job at the desired pump rate ! Water must be stored in a manner that is economically and environmentally sound ! Water 䇻 s use and protection are emotionally charged subjects in many communities

# Storage Considerations
! Storage Capacity Required
! Job Duration
! Mobilization/Demobilization Time
! Distance Between Job Sites
! Move Frequency
! Heating
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# Storage Options
! Frac Tanks
! Impoundments
! Large Capacity Above Ground Moveable Tanks
! Portadam
! Portable Bladders

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# Frac Tanks Capacity 500 BBL 400 BBL 

### Transported by Truck Estimated Cost of Storage $0.06 to $0.09/BBL/day 

### Number needed for a 250,000 BBL slick water frac 500

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# Fresh Water Impoundment – Lined Size can vary Operational Requirements Terrain 

### Cost to Construct $150,000 to $200,000 

### Estimated Cost of Storage $0.0012 to $0.0016/BBL/d 

### Number needed for a 250,000 BBL slick water frac 1 10

# Fresh Water Impoundment - Lined

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# Recycled Water Impoundment - Lined Impoundments Designed by professional engineer Permitted by the state 

### Size can vary Operational requirements Terrain This pit is 480,000 barrels 

### Cost to Construct $500,000 including engineering, land, legal and construction

# Fresh Water Impoundment - Unlined Impoundments can be Naturally occurring Man made 

### Size can vary Operational Requirements Terrain 

### Cost to Construct $75,000 to $150,000 

### Estimated Cost of Storage $0.0006 to $0.0012/BBL/d 

### Number needed for a 250,000 BBL slick water frac 1 13

# Fresh Water Impoundment - Unlined

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## Large Capacity Above Ground Moveable Tanks Size Can Range by type and make of tank Bladder 476 to 5952 BBL Rectangular 2,200 to 20,000 BBL Circular 4,500 to 42,000 BBL Portadam Determined by user
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# Portable Bladders Capacity 476 BBL 5,952 BBL 

### Transported by Truck Good for Low Volume Applications Estimated Cost of Storage $0.064/BBL/d 

### Number needed for a 250,000 BBL slick water frac 42 16

# Rhinokore Tank

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# Rhinokore Tank

! Portable Storage Tank Specifications • 20,000 BBL • 15,400 BBL • 12,000 BBL • 8,800 BBL • 7,000 BBL • 4,400 BBL • 2,200 BBL • Insulated with R20 or R40 walls and an optional R20 floating lid 

### ! Purchase or Lease Options ! Estimated Cost of Storage • $0.083 to $0.089/BBL/d 

### ! Number needed for a 250,000 BBL slick water frac • 13+ 18

# Goliath Tank – Storing Recycled Water

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# Goliath Tank

! Portable Storage Tank Specifications • 40,000 BBL – 153 䇻 Diameter • 24,000 BBL – 119.5 䇻 Diameter • 9,600 BBL – 76.7 䇻 Diameter • Interlocking Panels • Tanks can be insulated • 36 mil liner with geomat for underlayment 

### ! Purchase or Lease Options ! Estimated Cost of Storage • $0.064 to $0.080/BBL/d 

### ! Number needed for a 250,000 BBL slick water frac • 6+

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# Mobile Aquatic Solutions (Matrix)

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# Mobile Aquatic Solutions (Matrix)

! Portable Storage Tank Specifications • 40,000 BBL – 160 䇻 Diameter • 22,000 BBL – 110 䇻 Diameter • 11,000 BBL – 85 䇻 Diameter • Overlapping seams designed to exceed API 650 • 30 ml fitted liner; no field welding • 16 oz. geotextile under liner with sand pad • 3 – stainless steel truck fill lines and 10 䇻 stainless steel discharge line 

### ! Purchase or Lease Options ! Estimated Cost of Storage • $0.0029 /BBL/d 

### ! Number needed for a 250,000 BBL slick water frac • 6+ 22

# Circular Tank Vendors

! Poseidon Concepts ! Mobile Aquatic Solutions (Matrix) ! MWS ( Rockwater ) ! Portadam ! Select Energy Services ! Complete Production Service ! Dragon

# Portadam Size can vary Storage Required (Larger More Economical) Terrain 

### Good for Long Term Application Estimated Cost of Storage $0.018 to $0.04/BBL/d 

### Number needed for a 250,000 BBL slick water frac 1 or more depending on size 24

# Poly Pipe Cross Sections 12 䇿 SDR 11 HDPE

8 䇿 SDR 11 HDPE

## Granite Wash Example Completion (2 Well Pad)
! Frac water requirement – 800,000 bbls ! Closest recycle water pit – 300,000 bbls ! Closest fresh water pit – 120,000 bbls ! To move water to the right place at the right time required: • 14 transfer pumps • 16 miles of 8 䇿 poly • 10 miles of 4 䇿 poly • 2 miles of 10 䇿 aluminumK Pad 800,000 bbl Primary Water Source 300,000 bbl
Standby Water Source 120,000 bbl 4 䇿 Poly Pipe 8 䇿 Poly Pipe 10 䇿 Irrigation Pipe 8 䇿 Poly Permanent Pipe Fresh Water Pits Recycle Water Pits

## Granite Wash Pumping Flow Back to Recycle Pits

## Granite Wash Load Recovery Flow Back ! Capacity over 500 BPH ! Replenish frac water supply 

### Trucking ! Monitor to determine break even with pumping ! 11 to 12 trucks per day

# South Cana Water Handling Project

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# Newfield Manages Its Water Storage To
! Save money ! Control its own destiny
! Develop infrastructure for long term operations
! Reduce the need to dispose of produced water
! Potential to reduce transportation costs
! Potential to share facilities with other operators
! Maintain environmental responsibility
! Improve social license

# Questions!?!?!