## Strategies for Sustainable Water Transport Lessons Learned in the Marcellus Applied to the Niobrara

Tommy L. Wilkerson – Presenting Produced Water Reuse Initiative 2013 Denver, CO October 30, 2013Most Confidential 2 

### Strategies for Sustainable Water Transport ! Infrastructure Integration : Shared rightsof-way and techniques for using gas pipelines to move water 

### ! Buying Local : Environmental, social, and economic benefits of local water purchasing and pipeline systems 

### ! Maximizing Pipeline Utilization : Storage Pits that reduce supplemental trucking through scheduling and infrastructure planning 

### ! Recycling of Produced Water: Marcellus Results and Niobrara tests 

### ! Novel Water Record Keeping Method: Using a paperless water tracking systemMost Confidential 

### Shared ROWs and Pipelines 

## Multiple pipes in ROW:

– Gas

– Fresh water • Overland and buried

– Produced/flow-back Mid-stream collaboration Water transfer using gas linesMost Confidential 4 

### Pit and Pipeline Construction in ColoradoMost Confidential 

### Filling a Newly Constructed Pit in ColoradoMost Confidential 6 

### Water Transfer Through Gas Lines

Gas Line Overland Jumper Future Regional Waterline 2.33 mi of 6” FlexSteel No Air ValvesMost Confidential 

## Sustainability Overview

– Environmental, social, and economic benefits (triplebottom-line)

– Economy exists within Society , and both exist within the EnvironmentMost Confidential 8 

### Strategies to Buy Local – One Example
16 M gal 

## ! 90 M gal fresh water ! 16 M gal Impoundment ! Electric pump with VFD ! Buried 10” line from water source to impoundment

– 2,500’ new ROW

– 1,200’ parallel midstream

– 1,800’ shared ! Temp. overland water lines ! Average pad size 330’ x 330’Most Confidential 

### Life-Cycle Analysis



## Trucking

– 66 mi round-trip

– $100/ hr

– 4 miles/gal fuel

– Larger pads

– Incremental road repairs

– Additional frac tank rental and mobilization 

## Diesel Pump

– $5/gal diesel

– 140 hp @ 500 gal/min

– Fuel truck access

– Pump resale 

## Electric Pump

– Pump/VFD (200 hp )

– Power line and electrician !"#$#%&'()%* +%#,-.",&'/01* +2#.(3&45$- !"#$%&'( )*)+),) - ./+)//+0/- /*+,10 .1--+--- .,+/,2+21, .034- 5#6789:&;<;=> ))+1/2 - .//*+-10 /)- ./+*-*+,)2 .0+04-+?,- ./3?- 5#6789;=;$@"&$> 4+44- )42+4/4 .*1+04/ 24 ./+*4)+,44 .0+0*-+*?) ./3?- 6789% :;-"52 0)-#.&<.)2$=#.&+2#.(3 :2#>0)3& <.?,/&<.";$ @;>A.52-& B2=.)$-.?,-?.#&45$- C3$-#D&E"=#> 43,%#&45$-Most Confidential 

### Produced Water Treatment Options Water Treating is a function of operational mode

– Fracing vs. not fracing Frac Model

– Pretty clear option – water is reused in company wells

– Treatment procedure • Water is filtered to 25 microns, Gels broken • Diluted with fresh water to TDS levels that are

– Compatible with frac chemicals

– Sufficient to prevent scaling

– Cost - $0.95/bbl Non Frac Model

– Options are not so clear • Long term storage for use in future fracs – filter and dilute • Conventional subsurface disposal • Treatment with final dispositionMost Confidential 

### Produced Water Treatment Solutions Frac Crew Not Operating Long term storage for use in future fracs

– Cost is about $1.95/bbl/mo Conventional subsurface disposal

– Available in Colorado

– Must be sent to disposal well by truck

– Cost $4 to $5/bbl

– Pricey, but problem solved Treatment Options

– Many exist • Chemical flocculation • Evaporative Methods • Filtration – RO • ElectrocoagulationMost Confidential 

### Electrocoagulation Widely used for the treatment of wastewater for decades Basic principle

– In the EC process, the coagulant is generated insitu by electrolytic oxidation of an appropriate anode material

– Charged ionic species - metals or otherwise are removed by reaction with oppositely charged ions reducing the electrostatic repulsion

– Result • Precipates out

– Ions (heavy metals)

– Colloids (organic and inorganic) Advantages

– EC requires simple equipment and is easy to operate

– Sludge formed by EC tends to be readily settable and easy to de-water

– The EC process avoids uses of chemicals other than Acid and Sodium Hydroxide to change Ph

– High volume and small footprint

– Water processing is GOOD ENOUGH FOR FRACMost Confidential 

### EC Water Treating Process EC Process

Weir Tank and Retention Tanks Cuttings Bin

with Filter Screen Truck Water In Dirty Water Water and coagulated Solids
Solids Sludge Solids Trucked to drill site mix with cuttings Truck to frac site Water Dirty Storage

Frac Tanks Clean Storage Frac Tanks Crushed Glass Filtration Water Clean WaterMost Confidential 

### Typical Analytical Results From EC UnitMost Confidential 

### Actual Average Treating Costs Treating Costs (barrels/month) 30,000 45,000 60,000 Amortization of Capital Costs – 12 months $8,333 $8,333 $8,333 Fixed Cost $/month $39,310 $39,310 $39,310 Trucking In $45,000 $67,500 $90,000 Processing $45,000 $67,500 $90,000 Trucking Out $45,000 $67,500 $90,000 Total $182,643 $250,143 $317,643 Average Cost/bbl $6.08 $5,55 $5.29 

### Electrocoagulation EconomicsMost Confidential 

### Record Keeping on Water MovementMost Confidential 17 

### WaterGo App-patent pending Hand Held ScannerMost Confidential 

### WaterGo App-patent pendingMost Confidential 

### WaterGo App-patent pendingMost Confidential 

### WaterGo -patent pendingMost Confidential 

### WaterGo App-patent pending