Need to return call by / at/between and

. Signature:

___________________________ Project No.: 0172.09. 038.082 Page 1 of 4

Project Name: Shale Gas 

### CBI?

Yes

No TELEPHONE CALL RECOR D Incoming Outgoing Date: 9/2 8 /2011 Time: 3 : 3 0 am

pm

Company Name: Siemens ERG Staff Name: Sarah Hays

Contact Name: Jerry Alexander Contact Phone Number: 8 18

- 516

- 1281

General Subject: Siemens Reverse Osmosis Technology



### TOPICS DISCUSSED AND ACTION TAKEN

On September 26, 2011 at 4:00 pm, I contacted Siemens ( 866

- 926

- 8420 ) and spoke with a man from the “high

purity water systems” department who said he was not the correct person to speak with, but who directed me to Frank Witzel in the produced water (oil and gas operations) department (724

- 772

- 6542).

On September 26, 2011 at 4:05pm, I contacted Frank Witzel (724

- 772

- 6542) and he told me he was not the correct person to talk to about technical information. He provided me the names of two people who would be able to help with more technical information about reverse osmosis, and is going to call back in 5 minutes to give me phone numbers for each of these people:

Ruediger Knauf : 011

- 65

- 6510

- 5950; (cell) 011

- 65

- 9235

- 0608 Thomas Schultz (Marketing ): 262

- 521

- 8483; (cell) 262

- 617

- 9591

On September 27, 2011 at 3:30pm, I contacted Thomas Schultz (262

- 521

- 8483) and talked about general topics for Siemen’s RO technology options. He also gave me contact information for Jerry Alexander (818

- 516

- 1281), who is more of a water treatment expert, specifically about TDS removal. The following is information that Thomas was able to provide me:

Disposal options for o il and gas wastewaters that Thomas spoke about we re:

1. Reinjection back into the same formation. Need to ensure that suspended solids and free oil are out of the water so that the formation doesn’t get plugged when water is reinjected. Also need to remove

ba rium and sulfate so that scaling doesn’t occur ( reinjection doesn’t require RO).

2. Make steam and inject steam into the ground for enhanced recovery (used with heavy oils)

– pret reatment required may be chemical p recip itation and softening (deionization).

3. Reuse

4. Disposal

Thomas then began talking specifically about RO treatment

. Pretreatment : O ptions before RO treatment can consist of the following: oil/water separation, microfiltration , and media

filtration (depends on raw water quality).

Shale Gas A pplic ations :
F or produced water reuse at another well the operator is hydraulically fracturing, pretreatment is needed at a level which is up to the reservoir engineer on site. Suspended solids, free oils, and ions (such as Barium and

Sulfate ) need to be remov ed so that the formation doesn’t get plugged and scaling doesn’t occur. When surface discharging wastewater, RO may be used, depending on TDS levels. RO is capable of removing TDS up to approximately 30,000 ppm (seawater), but when TDS is higher than 30,00 0 ppm, RO becomes less efficient.Need to return call by / at/between and

. Signature:

___________________________ RO will still remove TDS in these instances, but the recovery efficiency decreases. In many cases, RO will be used in combination with thermal evaporation or membrane distillation to concentrate the remaining TDS, however, these thermal treatment options are very expensive and are not used often (except in Canada and the Middle East with heavy oils). Thomas did not provide details about how RO would be used in combination with these other processes. Thomas thought that shal e gas might eventually get to the point where they would need to use thermal technologies to remove pollutants enough to meet regulations.

Membrane Fouling:

Thomas commented that membrane fouling can be caused by hardness, silica, and residual organics (TO C)

found in the wastewater. Membrane cleaning can be done using citric acid and the frequency is based on the

head loss measurement, and thus varies by application. The head loss measurement is a measurement taken by

operators to determine the head loss (pressure drop) across the RO membrane, and thus determine whether the

membrane needs cleaned. Main concerns for RO membranes are organics and free oils because the main goal of the membranes is to remove TDS, so these other constituents foul and deteriora te membranes.

RO units are typically run as continuous units , but can be run in a batch cycle . The important limitation to batch cycles is that the membranes must be kept wet.

Energy Use:

The main energy usage is just a pump used to maintain the correct os motic pressure. Thomas did not know specific energy usage data/values.

Siemens offers mobile (on trailers, available to customers for any timeframe

– rentals can be anywhere from 1 week to multiple years) and permanent units.

Waste Streams : The waste stre ams generated by RO units depend on the specific influent water quality. If a concentrated solid brine stream is the desired waste output, crystallizers are sometimes used after RO treatment, however crystallization technology is very expensive.

Cost:

Thom as could not provide capital cost information, but commented that in the petroleum industry, each operator has their own design standards, which impact the price. A system that runs the same flow rate can have very different p rice depending on the operator and design standards (i.e., influent TDS, head loss requirement ). It’s hard to give a $/gpm cost for RO units because of this (and because it depends on influent water quality). Operation and maintenance costs are more consistent across operators, but sti ll depend on the cleaning frequency of the membranes and thus the influent water quality.

Thomas is going to email me brochures/documents that Siemens has about RO.

On September 28, 2011 at 12 : 30 pm, I contacted Jerry Alexander (818

- 516

- 1281) and left a m essage.

On September 28, 2011 at 2: 35 pm, Jerry Alexander returned my call and left a message.

On September 28, 2011 at 3 : 1 0pm, I contacted Jerry Alexander (818

- 516

- 1281) and left a message.

On September 28, 2011 at 3:30pm, Jerry Alexander returned my call. Jerry provided me with the following information about Siemens’ RO treatment units.

Applications : Siemens’s customers for RO units have been companies in both the (primarily) coalbed methane andNeed to return call by / at/between and

. Signature:

___________________________ (minimally) shale gas industries ( Locations : Alberta, Wyomin g

- PetroChemical, Marcellus). However, CBM applications primarily use membrane treatments (RO ) because waters are relatively free (or in low concentrations) of hydrocarbons. These CBM produced waters are well suited for RO treatment because they present min imal fouling problems to membranes. Ion exchange is also commonly used for CBM produced water. Treatment systems may consist of a filter followed by an RO unit OR an ion exchange (water softener) followed by an RO unit, as two examples.

Jerry hasn’t been i nvolved in much TDS reduction work using RO units. He has seen dissolved air flotation units used for shale gas flowback water.

A g eneral rule of thumb is that for every 100 ppm TDS in the influent wastewater, one pound of osmotic

pressure ( pressure which must be exceeded in order for osmosis to occur ) is required

. 70000

- 80000ppm TDS ~ 0% recovery 50000 ppm TDS ~ 25% recovery 30000 ppm TDS ~ 60% recovery Jerry says, as a general rule, RO is not a viable option for waters with TDS > 50,000 ppm

.

Energy:

In order t o calculate RO energy requirements, a simple conversion can be made from the necessary osmotic pressure to energy consumption. Jerry provided the general energy cost of 10kW/1000 gallons . Many operators

who run RO units also have energy recovery units to reduce their operating costs. These are commonly isobaric condensers (isobaric pressure exchangers) which can get up to 99% energy recovery. (A company out of San Leonardo, CA is the main provider of these; if we want more information, google sear ch them.)

Membrane Fouling :
M embranes are typically used either as filtration or demineralization and there are different materials for each

process. Thin

- film composite materials and poly

- amine materials are commonly used, but have problems with high chloride and ozone concentrations in waters. FilmTec and Hydronautics are two well

- known providers of membranes, whose website lists various options for membrane materials, all of which are fairly similar (ac cording to Jerry).

Jerry categorized “ membrane fouling ” into 4 groups:

1. Biological

– requires high pH acid to clean (i.e.: hydrochloric acid)

2. Particulate

3. Scaling

– requires low pH acid to clean (i.e.: citric acid)

4. Organic Jerry said sometimes membranes can’ t be recovered based on the amount of fouling that takes place. Chemical suppliers such as Nalco, Avisto, and PWT make specific chemical compounds to treat particular scale/fouling problems.

Capital Costs : RO systems can range anywhere from $1/gpd (relat ively clean water) to $4/gpd (seawater ). The higher cost correlates to higher operating pressures and different (more expensive) materials and construction. These costs are for the RO units only, and don’t include any pretreatment units (i.e.: ultrafiltrat ion or membrane bioreactors) or energy recovery units that may also be part of the overall system.

O&M Costs: Jerry could not come up with a range for O&M costs off the top of his head, but said that a google search for general seawater RO systems would g ive a good idea of the costs.Need to return call by / at/between and

. Signature:

___________________________ Overall, Jerry said that RO is only applicable to waters that are relatively clean and have no hydrocarbons and minimal organics present.

One place to look into for more information would be any studies done in Alberta, Can ada with RO units for treating natural gas production wastewaters. Jerry said that membranes are hardly ever used there and that they’ve only been minimally successful because of the water quality. If we can find information about this, it

would be interes ting to see the reasons for failure.