Maximizing Efficiency and Safety When Moving Water Ryan Mastowski OCTOBER 31, 2012

## RFI

• Founded in 2008

• More than 30 million gallons processed from the Northeastern Shale Plays

• Own and operate our own treatment systems

## Efficient Water Management

• The History

• The Demand

• Safety and Efficiency

• Solutions

# The History

## Marcellus Shale Gas Basics

• The first oil well in the world was drilled in Titusville, Pa. in 1859 by Edwin Drake

• Exploration of the Marcellus Shale will extend into areas where there has been no history of such activities

## Production Steps

– Hydraulic Fracturing

• > 60 years: more than 1 million wells drilled in 27 states

• 90 percent of oil and gas wells use hydraulic fracturing technology

• 99.5 percent water/sand mix

• 3 to 5 million gallons of water per well fractures the shale

• Well casing protects water supply

## United States Shale Gas Plays

## Wet vs. Dry Gas

# The Demand

## Actual Water Use Data*
Total water withdrawn

• 716.0 Million Gallons ( mgal )

• 209.2 mgal from public water supply ( 29%)

• 506.8 mgal from surface water sites ( 71%) Average total volume of fluid used per well

• 3.3 mgal /well

• Average fresh water used per well = 2.8 million gallons

• Average flowback reuse per well = 0.5 million gallons

## Actual Water Use Data*

• Maximum reported use = 6.1 m gal

• Average recovery of fluids = 10:0% ( first 30 days)

• Total amount of flowback reused or sent to disposal

• Reuse = 44.1 million gallons

• Disposal= 21 million gallons

*220 wells reported (June 1, 2008
- May 21, 2010) Susquehanna River Basin Commission www.srbc.net

## Production Steps

– Hydraulic Fracturing

Water and Sand: ~ 99.25% Typical Northern Marcellus Deep Shale Gas Fracturing Mixture

Other: ~ 0.75% Acid Friction Reducer

Scale Inhibitor

Iron Control Corrosion Inhibitor Antibacterial Agent

## Where Pennsylvania is Now: Water Usage and Management

5,930

1,680 1,550

268 182 30 0 1,000 2,000 3,000 4,000 5,000 6,000

Power generation Industrial Public water systems Other Mining Marcellus Shale DrillingMillions of Gallons per Day General approximation for illustrative purposes Susquehanna River Basin total water demand According to the Gas Technology Institute

## Anatomy of a Frac Site

Data Monitoring Van Well Heads Pump Trucks Blender Chemical Storage Working Water Tanks Sand Storage Units

Tanks of filtered water for re

- use

# Safety and Efficiency

### Safety

• Routine equipment inspections

• Protective measures

• Preventative measures

• Continuing education

### The Human Aspect

• Visual transfer inspections

• Daily e quipment inspections

• Stop Work Authority

• Proper training

## Obey the Rules of the R oad
If it doesn’t seem safe, it probably isn’t...

## Trucking Costs

• Expensive water transfer costs

• ~$100/hour/truck

• ~100 bbls /truck average

• $1/bbl/hour

## Trucking Costs

• ~120,000 bbls / frac required

• Reduction in downtime = reduction in costs

• Typical round trip = 2
- 3 hours per truck

• ~$1 million dollars per day

## Maximize Efficiency

• Reduce travel distances from source to frac

• Infrastructure investment

• Reduced time onsite

• Proactive water management

# Solutions

## Advanced Water P lanning

• Stay ahead of the curve

• Source location planning

• Approved truck routes (NO GPS!)

• Engage local law enforcement

• Centralized infrastructure

## Planning for the Unplanned

• Winter operations

• Preemptive infrastructure improvements

• Safety training for field staff

• Contingency plan for cold weather

## Planning for the Unplanned

• Public perception

• Safety training for field staff

• The human aspect

## Water Recycling and Reuse Plans

• High quality reuse water

• Fresh water blending necessary

• Reduced trucking to permanent facilities from remote wells

## Conserving Natural Resources

• 15
- 30 percent of fluids used are returned

• Beneficial reuse compared to disposal

• Reduced fresh water demand

• Mobile systems setup on location

## Flowback Reuse Strategy

• Part of the overall solution

• Environmental conservation

• Cost effective solution to flowback management

• Easily integrated into water management plan

## Contact Information

Ryan Mastowski, EIT 724
- 366
- 2160 rmastowski@rettew.com

Special thanks to our clients, The Marcellus Shale Coalition, and RETTEW for providing several images used in this presentation.