Project No.: 0172.09.038.082 Page 1 of 2

Project Name: Shale Gas

TELEPHONE CALL RECORD Incoming Outgoing Date: 9/26/11 Time: 5:00 am

pm CBI?

Yes

No

Company Name: Drake Water Technologi es ERG Staff Name: Brent Ruminski

Contact Name: Ron Drake Contact Phone Number: 406-449-2440

General Subject: Drake Water Technologies: IonFlo



## TOPICS DISCUSSED AND ACTION TAKEN

I called Drake Water Technologies on 9/ 26/11 at 5 PM. I was redirected to R on Drake, the inventor of IonFlo.
Mr. Drake was available to discu ss the IonFlo Technology in detail.

General: We first discussed that the unit was recently upg raded to a design of 300 gpm, corresponding to 10,000 bpd, (old system was 8,500 bpd design). The system is composed of 3 treatment modules. Each module is a single 3-chambered fiberglass ov erflow tank. The 3-module system is fed by a single low pressure pump. In addition, each module is equipped with a small chemi cal metering pump to feed regenerate solutions. Auxiliaries include 1 holding tank for acid regenerate, 1 holding tank for base regenerate if necessary, and a vent blower for the system enclosure. The unit is skid mounted with an intern al heater for the wi nter and is fully
mobile.

Operation: The figure below shows the genera l flow diagram of the Ionflo. Regeneration of the resin occurs in a counter current fashion (the resin and regenerate acid flow in opposite di rections). The ion exchange takes place co-current (both the resin and infl uent wastewater flow in the same di rection). The resin is separated from the wastewater via settling and media filtration in the resin separator tank, then the resin is regenerated.

Source: http://www.drakewater.com/

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

Need to return call by / at/between and

. Signature: ___________________________

### Effectiveness: Can handle up to 10,000 mg/L influent TDS. However, typical design for IonFlo for CBM treatment in the Powder River Basin 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 to 10,000 mg/L
because of economics. This is due to the increased need for regenerate acid, which increases the costs dramatically.

Waste Stream: With normal influent TDS concentrations (4,000 to 6,000 mg/L) the 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 fi nal regenerate waste stream is 12 to 15% Na 2 

### SO 4 

### by mass.

Regenerate: Typically used sulfuric acid in the Powder River Basin. (For costs, see the O&M Costs)

Energy Usage: Energy required for 10,000 bpd design is about 6 kW when runni ng at full capacity. In the winter, they must run the heater to keep the wastewat er lines from freezing, which consumes an additional 6 kW. This 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 wi nter. Mr. Drake later said the power consumption is less than 15 kW. The temperature only has a minimal e ffect on the kinetics of the ion exchange reactions.

Capital Costs: Drake Technologies offers the 300 gpm/10,000 bpd un it with capital costs that just under $400,000. Drake Technologies also licen ses units to larger companies that rent the technology out, but additional 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 cal culations for customers.

Regenerate : In the Powder River Basin, the regenerate aci d costs were on the range of $95-$130 per ton but prices are extremely volatile. Regene rate acid represents 70 to 80 percen t of the total O&M costs. One can calculate the O&M costs by starting with the influent Na Cl concentration and determine the final mg/L. Then you can write the equilibrium reaction of the NaCl, resi n, and regenerate. Balanci ng 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 cycl es. The resin can increase or decrea se in size by about 8 percent given typical temperature changes. This leads to mechanical st resses that gradually degrade the resin. Therefore, resin must be replaced at least once per year.

Powder River Basin CBM: In the Powder River Basin the high concen tration of bicarbonate eliminates the need for anion exchange resins. The reason is explaine d by the equation below. After the sodium cations are removed, the hydrogen cations are free to react with bicarbonate an ions. This reaction lead s to the formation of
carbon dioxide and water.

Other notes: Mr. Drake referred to a paper he wrot e published by the Ultrapure journal. At the end of the call, Mr. Drake gave me his email for any further questions. He also offere d to take a look at anything we draft for corrections.
The two email addresses are: Zeus1@bresnan.net

, Ron@Drakewater.net

.

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. Signature: ___________________________From: Brent Ruminski

To: Ron@Drakewater.net; Zeus1@bresnan.net

Date: 9/28/2011 3:30 PM Subject: Drake Ion Exchange

Ron,

I want to thank you the time you took to discuss your ion exchan ge technology. Since then, I came up with a few topics that we may have covered but I was interested in some more brief explanation. I summarized a few quick notes below in a list.

1. The reason the heater is requir ed in the winter (just so water do es not freeze or for performance) 2. How effect the technology is at remo ving radioactive mate rials (e.g., radium) 3. the source of power for the little energy that is required, because it is on a tr ailer are generators used, or 3 phase plug in, any alternative energy sources) 4. I need clarification on why an anion resin is not needed. I und erstand it is because of the bicarbonate. What is the overal l or global reaction that occu rs that removes anions without the use of anion re sins. And at what lowe r range concentration of
bicarbonate would this not work.

Thank you,

Brent

From: "Ron Drake" <zeus1@bresnan.net>

To: "'Brent Ruminski'" <Brent.Ruminski@erg.com>
CC: <vivian4@qwestoffice.net>

Date: 9/28/2011 4:26 PM Subject: RE: Drake Ion Exchange

Greetings Brent - Answers to your questions are interleaved in red font
below. -- Ron

Ron Drake, PE (MT & WY)

Drake Water Technologies, Inc.

7492 Commerce Ct., Suite B

Helena, MT 59602-8790

Office: 406-449-2440

Cell: 406-431-6316

From: Brent Ruminski [mailto:Brent.Ruminski@erg.com] Sent: Wednesday, September 28, 2011 1:31 PM To: Zeus1@bresnan.net; Ron@Drakewater.net Subject: Drake Ion Exchange

Ron,

I want to thank you the time you took to discuss your ion exchange technology. Since then, I came up with a few topics that we may have covered
but I was interested in some more brief explanation. I summarized a few quick notes below in a list.

1. The reason the heater is required in the winter (just so water does not freeze or for performance) - Water temperature has only a minor effect (slightly slower reaction kinetics) on system performance. The heater is needed to prevent freezing of lines and vessel water inventory during shut-down in sub-freezing weather.

2. How effect the technology is at removing radioactive materials (e.g., radium) - Radium is the heaviest element in the alkaline earth seriesin the periodic table, and therefore is nearly quantitatively removed by commercially available strongly acid ca tion exchange resins in the IonFlo
system.

3. the source of power for th e little energy that is required, because it is on a trailer are generators used, or 3 phase plug in, any alternative energy sources) - IonFlo systems have been successfully operated at remote sites using grid supplied power and also using small (240 VAC, 50 A) MG sets. Total power requirement is less than 15 kW for 10,000 bbl/d throughput, including space heating duri ng the winter. The main service panel is wired for 240 VAC single phase power delivered through a 70 A main
breaker.

4. I need clarification on why an anion resin is not needed. I understand it is because of the bicarbonate. What is the overall or global
reaction that occurs that removes anions without the use of anion resins. And at what lower range concentration of bicarbonate would this not work. - CBM produced water in the PRB is predominantly (>95 mol%) sodium bicarbonate. Cation exchange resin, in the acid form, exchanges hydrogen ions for sodium ions, lowers the water pH, and decomposes the bicarbonate ions, first to carbonic acid, and then to water and carbon dioxide according to the following chemical equation:

Sodium is removed and bicarbonate is decomposed as long as there is
bicarbonate ion in the water. When th e bicarbonate is exhausted, additional cation exchange will depress the pH of the water, which would then need to be neutralized with base or, preferab ly, undergo anion exchange to remove non-bicarbonate anions and restore the pH to neutral.

Thank you,

Brent