Increasing Water Needs 

### 10,022 Wells currently producing

◦ 6,627 from the Bakken  

### 40,000 additional wells in next 40 years  

### 193 rigs in ND (to April 2014)  

### Est. 2000 wells per year  

### Est. 7 to 14 acre foot water per well  

### Est. 14,000 to 28,000 acre feet per year  

### Est. 280,000 to 560,000 acre feet required over next 40 years

# ‘All waters of the State are owned by the State ... ‘( Section 3, Article XI, North Dakota Constitution)Water AvailabilityWater Availability

### Data Resources: USGS

– provides a county by county analysis NDSWC

--- has selected county studies. NDSWC Report No. 49 

### General Availability: “ground water supplies are limited .... (and) it is critical that (such sources) be conserved for sustenance of towns, homes ...” (SWC WRI No. 49) 

### Most likely sources: Dakota Aquifer Fox Hills

- Hell Creek

## ◦ Knife River

◦ Little Missouri River

◦ Heart River

• From Lake Tschida , USBR has 5,800 acre feet for irrigation; may be able to reallocate to industrial development

• From Patterson Lake , USBR has 3,493 acre feet for MRI needs which could be targeted for industrial development

• City of Dickinson has vacated near 3,105 acre feet which may be reallocated by the USBR for industrial development. Flooded nearly 500,000 acres of the best land in the Reservation and State  Dam holds est. 25 Million acre feet when full  In the 2008 drought dam was drawn down nearly 45 feet to approximately 8 M acre feet  River system is drought resistant, but the reservoir system is not NAWS Project by Minot , 2 to 3 mgd for expansion

(generally off peak

--- tied up in a court action)  Various local communities (with new and pending permits)  Southwest Pipeline (off peak water availability; they have their own depot(s)  WAWS Project (use of Williston treatment plant)  Three Affiliated Tribes
- -- 11 existing intakes into the Lake and an extensive water distribution system West Dakota Water; inexpensive, raw water under

large flow, generally from Williston to Dickinson area  Other Private Water lines; a number in various stages of development.  Independent Water Providers:  Independently providing water since 2008  73 privately owned depots  70

- 80% of industry needs provided in 2011 

### Partnership between Bartlett and West and Jmac Resources  

### Diversion of Water near Williston, ND  

### 10,000 acre feet State permit  

### All Federal permits received  

### Raw water, large flow availability, reliable service 

### Sources

◦ Water Wells, Lakes, Rivers, Streams  

### Transportation

◦ Trucking

 Use existing road system to bring water from source directly to well site

 Transportation Infrastructure is financed by tax payers

◦ Pipeline

 main transmission pipeline brings water from source to distribution pipelines

 distribution pipelines bring water directly to well site

 permanent, temporary, or combination

 Transportation Infrastructure is financed by private companies 

### Trucking (assume 20 mile trip to source)

◦ Average cost $120/hour

◦ Average payload capacity 120/ bbls

◦ Average cycle time 2.5 hours $120/hour x 2.5 hours / 120 bbls /truck =



## $2.5 per bbls 

### AASHTO ( American Association of State Highway and Transportation Officials)  

### Roadway Design  

### ESAL

- Equivalent Single Axle Loads  

### 1 ESAL = 18000 lb Axel with dual tires  

### Average Water Truck uses 2.87* ESALs (80k lb Tractor Trailer)

*Upper Great Plains Institute Transportation Study 

### Reconstruction Costs of a 750,000 ESAL Roadway = $1.25 Million/Mile ( North Dakota DOT 

### ) $1,250,000 per mile / 750,000 ESALs = 

### $1.67/ESAL/Mile
 

### Water Truck Costs on Public Infrastructure 2.87 ESALs per Truck X $1.67/ESAL/Mile = 

### $4.80/Mile Or 

### $0.04/ BBls /Mile
 

### Oil companies end up paying these cost through production and extraction taxes

*Upper Great Plains Institute Transportation Study 

### Assume 20 mile trip to source water  

### Infrastructure Cost

- 20 mile x $0.04/ bbls /mile



### = 

### $0.80/ bbls  

### Operation Costs

- $120/hour x 2.5 hours / 120 

### bbls /truck = 

### $2.50 per bbls



### Total Cost $3.30/ bbls 

## Inefficient way to move water  

## Local Relations

◦ Environmental (Dust)

◦ Destructive to Infrastructure

◦ Safety impact on local road travel 

### 750,000 ESAL a typical two lane state highway  

### Average County or Township road in the Bakken Oilfield is 25,000 ESALs  

### 25,000 / 2.87 = 8700 water trucks ~ 10 

### Fracks  

### Load Equivalency Factors ~ Overloaded Trucks  

### Can Increase the ESAL usage by up to 20 times  

### Older Township Roads destroyed in 1 week  

### Farm to Market Roads not good for public relations

*Upper Great Plains Institute Transportation Study 

### Increased traffic on narrow Farm to Market Roads  

### Trends from truck owner operator paid $/Hr 

### to $/BBLS Delivered  

### Incentive:

◦ Drive Faster

◦ Work Longer

◦ Run overloaded  

### Since oil activity in Bakken Started traffic 

### fatalities up 50%

# Infrastructure Costs

– Pipeline

• 

### Southwest Pipeline

• Built in Southwest North Dakota

• Network of Transmission and

Distribution Pipelines

• Capitol Repayment Costs = $0.03/ bbls

• Operation and Maintenance Costs= $0.05/ bbls

• Overall Cost = $0.08/ bbls

• Not exactly a “fair” Comparison

• Capitol Repayment Costs can be higher for a pipeline system to service fracturing needs 

### Assume a 10 mile transport 25 bbls /min

10 ” Cl
. 200 PVC, G
. J
. 52800 LF $ 17.00 $ 897,600 Booster Pump 1 $ 300,000.00 $ 300,000.00 Right of Way 10 MI $ 32,000.00 $ 320,000.00

TOTAL COST ESTIMATE $ 1,517,600.00 

### Temporary Pipeline Used to transport water for Hydraulic Fracturing

◦ Pumped using diesel powered pumps from a water source

◦ Water flows through temporary surface pipelines

 Aluminum Irrigation Pipe

 HDPE fusable pipe

 Lay flat roll hose

◦ Booster Pumps used as need depending on terrain

◦ Pumped to Frack Tanks or Poseidon Tanks

### Trucking Water Piping Water  

### Inefficient way to move water  

### Local Relations

◦ Environmental (Dust)

◦ Destructive to Infrastructure

◦ Safety impact on local road travel  

### Takes years to build Infrastructure  

### Right of Way Acquisition  

### High upfront project cost

### Physical Disruption of Channel

• Any alteration of the channel (dredging, excavation, intake works)

---- require a regulatory permit (section 10 and/or 404) 

### Access Into the Reservoir

• Within the Reservoir

--- (or along the free flowing river with Federal land ownership)

--- require real estate access permits

# Most Significant Issue ... at this time... Surplus water

 

## What is surplus 

## water?  

## Is there surplus 

## water available?  

## States rights issue 

### Construction of the dams created a ‘pooled body of water’ (25 MAF)  

### That pooled body of water came with an 

### initial capital construction cost and an ongoing OMR cost ($300M in 1947; $3.2B in 2011; OMR at $6.3M)  

### Benefiting parties from that pooled water should pay an amount which compensates the federal government for this benefit ($21) 

## The COE Position ...Surplus Water Issue 

### The ‘pooled water’ body does not provide a benefit which otherwise would not be there.  

### The ‘pooled water’ body in some instances creates a nuisance to water management which would otherwise not be there  

### The State has a right to the natural flows of the river without COE permission 

## The State Position ...Surplus Water Issue

# Thank You For Your Kind Attention

... Ken Royse, PE Bartlett and West, Inc. 

## Bismarck, ND 701

- 258

- 1110 ken.royse@bartwest.com