Need to return call by / at/between and

. Signature:

___________________________ Project No.: 0172.09.038.082 Page 1 of 2

Project Name: Shale Gas

CBI?

Yes

No TELEPHONE CALL RECOR D Incoming Outgoing Date: 9/26/11 Time: 5:00 am

pm

Company Name: Drake Water Technologies ERG Staff Name: Brent Ruminski

Contact Name: Ron Drake Contact Phone Number: 406

- 449

- 2440

General Subject: Drake Water Technologies: IonFlo (Ion Exchange)



### TOPICS DISCUSSED AND ACTION TAKEN

I c alled Drake Water Technologies on 9/26/11 at 5 PM. I was redirected to Ron Drake , the inventor of IonFlo

. Mr. Drake was available to discuss the IonFlo Technology in detail.

General : We first discussed that the unit was recently upgraded to a design of 300 gp m
, corresponding to 10,000 bpd

, (old system was 8, 5 00 bpd design) . The system is compo sed of 3 treatment modules. Each module

is a single 3

- c hambered fiberglass overflow tank

. The 3

- module system is fed by a singl e low pressure pump . In addition, each module is equipped with a small chemical metering pump to feed regenerate solutions.

Auxiliaries include 1 holding tank for acid regenerate, 1 ho lding tank for base regenerate if necessary, and a

vent blower for the system enclosure. The unit is skid mounted with an internal heater for the winter and is fully

mobile.

Operation : See DWT’s website drakewater.com for a process flow diagram. The figure below shows the general flow diagram of the Ionflo. The resin is separated from the wastewater via settling and media filtration in the resin separator tank , then the resin is regenerated.

Pretreatment: Only TSS removal is necessary . Only gri t and large (>250 micron) particulate removal are required. Silt, clay and colloidal size particles pass through the process without adverse effect. No other pretreatment requirements were discussed

.

Effectiven ess: Can handle up to 10,000 mg/L influent TDS. However, typical design for IonFlo for CBM

treatment in the Powder River B asin was for 4,000 to 5,000 mg/L influent TDS

. Effluent TDS is on the order of

500 mg/L

. Theoretically, there is no limit to influent TDS removal. Influent TDS is only limited t o 10,000 mg/L

because of economics. This is due to the increase d need for regenerate acid

, which increases the costs dramatically.Need to return call by / at/between and

. Signature:

___________________________ Waste Stream : With normal influent TDS concentrations (4,000 to 6,000 mg/L) th e waste stream is about 1 to
3 percent of influent flow. However, if influent TDS increases to 10,000 mg/L

, the waste stream can be as high

as 8 to 9 percent of influent flow. The final regenerate waste stream is 12 to 15% Na 2 SO 4 by mass.

Regenerate : Typically used sulfuric a cid in the Powder River Basin. ( For costs, see the O&M C osts)

Energy Usage : Energy required fo r 10,000 bpd design is about 6 kW when running at full capacity. In the winter, they must run the heater to keep the wastewater lines from freezing, which consumes an additional 6

kW. T his would be approximately 144 kWh (6 kW x 24 hr) for 420,000 gallons of water in the summer and 288 kWh (12 kW X 24 hr) for 420,000 gallons of water in the winter. Mr. Drake later said the power consumption

is less than 15 kW. The temperature only has a minimal effect on the kinetics of the ion exchange reactions.

Capital Costs : Drake Technologies offer s the 300 gpm/10,000 bpd unit with capital costs that just under $400,000. Drake Technologies also license s unit s to larger companies that rent the technology out

, but

addition al costs were not reported because the margin for the larger company is unknown.

O&M Costs : Resin: $250/ft 3 (about $ 8 .8 per L). One tank setup (100 gpm) requires 200 L of resin, therefore the full size system holds 600 L of resin at one time. The full “inventory” of resin (the 600 L) must be replaced about once a year but Drake Technologies assume twice a year for any economic calculations for customers.

Regenerate : In the Powder River Basin, the regenerate acid costs were on the range of $95

- $130 per ton but prices are extremely volatile. Regenerate acid r epresents 70 to 80 percent of the total O&M costs. One c an calculate the O&M costs by starting with the influent NaCl concentration and determine the final mg/L. Then

you ca n write the equilibrium reaction of the NaCl, resin, and regenerate. Balancing the equation would lead you to the stoichiometric regenerate requirement. However, in practice this number is multiplied by 0.8 to due

to inefficiencies.

Disadvantages : Mr. Drake said that the Higgins Loop damages resin frequently for mechanical reasons. IonFlo handles the resin more carefully but some degradation of the resin still occurs due to osmotic stress from frequent loading and regeneration cycles

. The resin can increase or decrease in size by about 8 percent given typical temperature changes. This leads to mechanical stresses that gradua lly degrad e the resin . Therefore, resin must be replaced at least once per year.

Powder River Basi n CBM: In the Powder River Basin th e high concentration of bicarbonate eliminates the need for anion exchange resins. The reason is explained by the equation below. After the sodium cations are removed, the hydrogen cations are free to react with bicarbonate anions. This reaction l eads to the formation of

carbon dioxide and water.

Other notes:

Mr. Drake r eferred to a paper he wrote published by the Ultra pure journal

. At the end of the call, Mr. Drake gave me his email for any further questions. He also offered to take a look at anything we draft for corrections.

The two email addresses are: Zeus1@bresnan.net

, Ron@Drakewate r.net

.