### Drew Poeckes PE

Director of Engineering West Dakota Water LLC

# Hydraulic Fracturing

 

### Hydraulic Fracturing

– Pressurized injection of fluids made up of water, chemical and a “propping agent”

 

### The pressure exceeds the strength of the formation rock and opens fractures for oil and gas to flow from

 

### Typical Fracturing Fluid Makeup:

 

### 1% Chemicals

 

### 99% Water and propping agent



###  

### Average Water Use Per Well in Shale Formations

 

### 3
- 5 Million Gallons or

# Water from Source to Well

 

### Sources

 

### Water Wells, Lakes, Rivers, Streams



###  

### Transportation

 

### Trucking

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

 

### Pipeline

 main transmission pipeline brings water from source to distribution pipelines

 distribution pipelines bring water directly to well site

 permanent, temporary, or combination

# Operation Costs

- Trucking

 

### 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

# Infrastructure Costs

- Trucking

Roadway Design

 

### 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

# Infrastructure Costs

– Trucking

Hidden Cost

 

### 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

# Overall Costs Trucking

 

### 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

# Additional factors to consider

 

## Inefficient way to move water

 

## Local Relations

 

### Environmental (Dust)

 

### Destructive to Infrastructure

 

### Safety impact on local road travel

# Environmental (Dust)

- Trucking

# Destructive to Infrastructure

- Trucking

 

### 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

# Safety Concerns

– Trucking

 

### 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

# Infrastructure Costs

– Pipeline Capitol Cost for Frack Water Pipeline

 

### 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

# Infrastructure Costs

– Pipeline

# Infrastructure Costs

– Pipeline Capitol Cost for Frack Water Pipeline

 One Well with 10 miles of Pipeline

$1,517,600 / 80,000 bbls well frack = $18.97/ bbls Capitol Repayment Cost

 1280 Acre Spacing Unit yields 20 wells in the 10 miles

$1,517,600 / 80,000bbls wells / 20 wells = $ 0.95/ bbls Capitol Repayment Cost

 320 Acre Spacing Unit yields 80 wells in the 10 miles

$1,517,600 / 80,000bbls wells / 80 wells = $ 0.23/ bbls Capitol Repayment Cost

 Potential for refracturing the formation in the future

 Also can consider additional formation to be fractured ex

- Three Forks Formation beneath the Bakken in ND

# Surface Water Transfer

 

### 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

# Surface Water Transfer

# Surface Water Transfer

# Surface Water Transfer

# Surface Water Transfer

# Storage Options

 

### Frack Tanks 500 BBLS

 

### Temporary surface storage tanks

 

### 10k

– 40k BBLS



###  

### Fresh Water Pits

 

### As large as you need (local permits apply)

 

### Lined or Unlined

 

### Can use natural topography (Dams)

# Storage Requirements

 All depends supply deliver capacity (BBLS/Min) and down hole capacity requirements

 Basic Equation Frack Requirements

 Inflow X Length Frack (Min)

– Total Frack Need (BBLS)

 Frack size = 100k BBLS

 Pipeline Inflow = 20 BBLS/Min

 Length Frack = 2.5 days or 3600 Min
20 ( bbls /min) X 3600 (min)

– 100k ( bbls ) = 28k BBLS Storage

 Probably should have a more for a buffer

# Water Transportation Concerns
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