# AltelaRain ®

Pressure

- less, Multiple

- Effect Thermal Desalination

5350 South Roslyn St, Suite 210

Englewood, CO 80111

(303) 993

- 1951 7500 Meridian Pl NW, Suite B

Albuquerque, NM 87121

(505) 227

- 8560 

# Matthew Bruff

, CDO



### Altela

, I nc.

Treating Water Naturally 

### 29

- 31 October 2012www.altelainc.com Treating Water Naturally 2 

# Description of Technology/ Technology Maturity

Founded in 2005 via the acquisition of Arizona State University developed IP

Invested $ 20 MM+ in the commercialization and expansion of Altela’s native IP

Achieved precedent

- setting water recycling and re

- use permits ; including “umbrella” permits for

CO, NM, PA, and Canada that allow for rapid approval of future sites

Awarded contracts by the US DOE to successfully demonstrate year

- round PW treatment using

AltelaRain® technology in the Marcellus (completed in 2011 )

Completed sales of AltelaRain® 750 modules to large

- scale Marcellus produced water treatment

facility in January 2011

Consummated a joint

- venture with Casella Waste Systems, Inc

. (NYSE : CWST) to build numerous

water treatment facilities on Casella

- owned landfill sites and utilize biomethane gas captured from

landfill sites ; first plant under construction

Executed a joint

- venture to build, own, and operate a facility with American Consumer Industries,

Inc

. (“ACI”) that leverages the waste heat and fly ash generated by ACI’s 33 MW waste coal

- fired

electric power plantwww.altelainc.com Treating Water Naturally 3 

# Altela Thermal Desalination Water Treatment Process

AltelaRain® Process

- Significant key advantages:

 Is NOT an ‘evaporator’

 Extremely high quality of treated water;

unique desal process removes ALL salt

 Low cost (both capital and operating cost)

 Ambient pressure operation

– safe

 Near

- ambient temperature operation

 High thermal efficiency

 All plastic construction

 Only desal process NOT driven by electricity

 No fouling/scaling; no membranes to replace

 Can employ low

- grade waste

- heat to operate,

e.g., land

- fill gas or compressorswww.altelainc.com Treating Water Naturally 4 Resource Conservation

&

Recovery Act 1976

(RCRA)

Subtitle C Exception

(1980)

Oil and Gas Industry

Waste Underground Re

- Injection

(Safe Drinking Water Act)

Surface Discharge

(Clean Water Act)

Navigable Waters

(NPDES) Land Application

(Surface Discharge)

POTW Irrigation &

Livestock Agricultural Dust

Suppression Frac &

Well Completion In

- Stream

Flow Surface Impoundments &

Landfills

(Pits, Land Farming)

Aquifer

Rechargewww.altelainc.com Treating Water Naturally 5



# Altela Precedent

- Setting Permits

2005: First

- ever approval in New Mexico to

surface discharge treated, purified

produced water for re

- use 2007: First

- ever US EPA

- based approval

for a centralized produced water treatment

facility for in

- stream flow and aquifer

recharge through a publicly owned

treatment works (POTW) 2007: First

- ever Navajo Nation

environmental permit to surface discharge

treated, purified produced water for

irrigation, livestock, and agricultural re

- use 2008: First

- ever non

- tributary water right

approval for beneficial use of treated, PW

in Colorado within the Colorado River Basin 2008: Precedent

- setting U.S. EPA

- based

approval to discharge treated, clean PW

into the Colorado River Basin 2009: CO General Permit issued for re

- use 2009 & 2012: Marcellus PA DEP Approvals:

mobile & stationary AltelaRain ® Systems

2008: AltelaRain ® Pilot Permit in Canadawww.altelainc.com Treating Water Naturally 6 

# US Department of Energy’s National Technology



# Laboratory (“NETL

”) Conclusion

 The operation passed PA DEP regulations ( Chapter 95 discharge

standards)

 Proved it can be placed at the wellhead and operated within PA DEP

regulatory frameworks

 Water quality met or exceeded all requisite PA DEP water quality

discharge requirements

 The price per barrel of treated water was less than conventional trucking

and disposal

 Accelerated commercialization of the technology increases technology

transferwww.altelainc.com Treating Water Naturally 7



# Value Proposition

 New low

- cost technologies for frac

- flowback and

produced water treatment in the Marcellus/Utica

 Desalination : the key to giving producers



## reproducible certified recycled frac water that’s

the same every day

 One

- stop shop facilities provide any combination

of water disposal, water storage, and certified frac

water sales to each customer’s particular TDS



## specification

 Multiple small facilities reduce trucking distances ;

no UIC injection

 Low

- cost desalination uses only inexpensive

plastic

– no membranes, expensive metals,

fouling, or corrosion

 New process driven by low

- grade heat, waste

energy, or natural gas

– not electricitywww.altelainc.com Treating Water Naturally 8 

# Two New Marcellus TRD Water Treatment Plants

 

## Joint venture between Altela, Inc. and

Casella Waste Systems, Inc.

 

## Located in McKean County, PA

 

## 10,000 bbls /day capacity 

# CARES

– www.CARESforWATER.com

CAES

– www.CAESwater.com

 

## Joint venture between Altela, Inc. and

ACI Energy, Inc.

 

## Located in Clarion County, PA

 

## 10,000 bbls /day capacitywww.altelainc.com Treating Water Naturally 9



# What These Plants Can Do

 

### Offer both the (i) most flexible ‘one

- stop shop’ of complete E&P services and (ii) the



### lowest

- cost sustainable extraction of clean distilled water from any wastewater

.

 

### The Altela water treatment technology is economical, reliable and has proven to

meet stringent water quality requirements (including PA DEP and DOE)

.

 

### Provide separation and solidification services, interim water storage, centralized



### transportation network of rail and over

- the

- road trucking, and storage areas for lay

down yards

.

 

### Reproducible distilled water and certified recycled frac water ensures that frac

chemistry is the same for each new frac, for each customer’s exact specification

.

 

### Recycled frac water can be supplied with any level of customer

- defined limits of

removal of TSS, iron, barium, calcium, chlorides, TDS, sulfates, friction reducers,

surfactants, biocides, radionuclides, etc

.www.altelainc.com Treating Water Naturally 10 A LTELA R AIN ® M ODULES Truck

Station 1 Truck

Station 2 Truck

Station 3 Truck

Station 4 Truck

Station 5 Truck

Station 6 Truck

Station 7 Truck

Station 8

Disposal of

Concentrate in

Landfill Pretreatment

Syste m

Steam and Waste Heat from Landfill Gas Recycled (Treated) Frac Flowback

= Proprietary, low

- cost process Produced

Water

Distilled Water PAGE 10

 Altela and Casella (through the CARES JV) are building treatment, recycling, and disposal

(“TRD”) facilities that leverage :

 Water storage

 Drill cuttings

 Water treatment

 Frac sand supplywww.altelainc.com Treating Water Naturally 11 • MSW and Residual Waste LF 1,000

tpd by truck

• Rail Siding Transfer Station 5,000

tpd by rail

• 125,000 GPD Thermal Distillation

Produced Water and Frac Water

Treatment

• 3MG of Water Storage

• Acceptance of bulked drill cuttings

– pending PADEP permit to accept

raw drill cuttings for solidification

on

- site

• Gravel for well pad constructionwww.altelainc.com Treating Water Naturally 12www.altelainc.com Treating Water Naturally 13www.altelainc.com Treating Water Naturally 14www.altelainc.com Treating Water Naturally 15 

# "A promise is a cloud; fulfillment is rain."

Arabian proverbwww.altelainc.com Treating Water Naturally 16



# QUESTIONS & ANSWERS

Contact Information:

Matthew Bruff

Altela , Inc.

(303) 993

- 1951

matthew.bruff@altelainc.com

5350 South Roslyn Street, Suite 210

Englewood, CO 80111