Arkansas Oil and Gas Commission

Lawrence Bengal, Director

Shale Play Water Management Congress 2014 

Southern States

Texas, Louisiana, Oklahoma & Arkansas

November 19 - 20 Dallas, Texas

Regulatory Updates On Water Sourcing To Save Time And

Costs During Permitting And Effectively Plan For Evolving

Restrictions


4400+ wells (since 2005)

Fayetteville Shale Production Area

500 new wells completed annually
0

20,000,000

40,000,000

60,000,000

80,000,000

100,000,000

120,000,000 Jan-05 May-05

Sep-05 Jan-06 May-06Sep-06 Jan-07 May-07Sep-07 Jan-08 May-08Sep-08 Jan-09 May-09Sep-09 Jan-10 May-10Sep-10 Jan-11 May-11Sep-11 Jan-12 May-12Sep-12 Jan-13 May-13

Arkansas Natural Gas Production by Production Area

Arkoma Basin Area

Fayetteville Shale Area

Total State Production

State Production 

Increased from 180 

BCF to over 1 TCF 

annually since 2005
Arkansas Agencies

Regulating Water Sources, Storage and 

Disposal

 ANRC: Arkansas Natural Resources Commission

 AOGC: Arkansas Oil and Gas Commission

 ADEQ: Arkansas Department of Environmental

Quality

 USACE: US Army Corps of Engineers

6
Water Rights in Arkansas 

Arkansas is a riparian “reasonable use” state 

with some legislation to deal with emerging 

issues.

Surface Water - A landowner (land touches a lake, 

stream, river, or other watercourse) may use water on 

the property, but can be limited if their use 

unreasonably harms another riparian’s use. 

Groundwater - A landowner may use water on land 

with a well as long as that use does not unreasonably 

harm another groundwater user (version of the 

“correlative rights “ doctrine)”.
“Shale” Gas Industry Water Sources

 The current industry water use consists of an 

average mix of 70% freshwater and 30% recycled 

water (recycled water use increasing, rules 

adopted to facilitate use).

 Essentially 100% of the freshwater use from 

surface water sources (still and moving) .

 Fresh groundwater sources not used, geologic 

limitations on quantity.

 Brackish groundwater source may have potential, 

not currently used, regulatory agencies have not 

yet established regulatory framework for use 

(currently under review).
Fayetteville Shale Water Demand/Supply – Perspective

9

Source: Arkansas Water Plan and AOGC estimates

Statewide:

10,750 million gallons/day

Gas Operations:

10 million gallons/day (600 Wells/year)

66%

Surface Water

33%

Ground Water

70%

Surface Water

30%

Recycle/Reused Water

Gas Operations

Less than 0.03 % 

of State’s

water runoff

 In Arkansas, 43,000 million gallons/day is generated in run-off.

 Capturing surface water by building ponds utilizes water that would 

otherwise be lost.
Increasing use (currently 30%) of recycled source water has been 

facilitated by AOGC Rule B-17 allowing modified drill pits for storage

10

“Frac Road Tank Battery

Fresh Water Source (Company Owned Ponds) (Private Ponds and Lakes)

Fresh Water Source (Creek, River, Stream)

Off Site Reserve Pit: EW and FFBF Frac tank Frac tank

Frac Equipment Area

Reserve Pit EW

FFBF FW

Well

Frac tank Frac tank Frac tank Frac tank Frac tank Frac tank Frac tank Frac tank

Pit Turn Around For Vacuum Trucks to Haul in EW; FFBF

Off Site Tank Battery: Encountered Water

Location Clearing Limits

10" Aluminum Line 10" Aluminum Line

Frac Road Tank Battery for Hauling In EW and FFBF

4" Poly Pipe 4" Poly Pipe only

4" Poly Pipe 4" Poly Pipe

4" Poly Pipe 4" Poly Pipe

Location Lease Road

Fresh Water (FW) Encountered Water (EW) Frac Flow Back Fluid (FFBF) Transfer Pump Vacuum Truck (Fluid Hauling)

LEGEND

Tank

“Pipeline transfer 

of flow-back and 

freshwater as 

part of approved 

recycle system”
“Shale” Gas Industry Primary Water 

Source From Surface Waters Located In 

Arkansas and White River Basins

Fayetteville 

Shale 

Production 

Area
Shale Gas Industry Primary Water Source 

(70%) from Surface Waters

Regulated by Arkansas Natural Resources 

Commission (ANRC)

ANRC Title 3 – Rules for the Utilization of 

Surface Water (2009)

Regulation limits available surface water use to 

“excess surface water” defined as 25% of runoff (less current use and projected demand)

Non-Riparian Permit required for use – ANRC
Arkansas Natural Resources Commission

ANRC Non-Riparian Permits

Status of Natural Gas Industry Applications/Permits- (October 2013)
Currently Permitted Excess 

Surface Water

14

Available Excess Surface Water

• Private Ponds and Quarries (300+)

– 69 million BBL storage capacity

• Streams and Rivers (160)

– 38 million BBL potential supply

• Company Ponds (150+)

– 55+ million BBL storage capacity
APPLICATION FOR NON-RIPARIAN WATER USE 

FOR 

GAS WELL FRACTURE STIMULATION 

AND 

HYDROSTATIC TESTING OF PIPELINES

Arkansas Natural 

Resources Commission

• Submit application with a $500 application fee.

• Application logged into review process and will receive 

notice of receipt within 7 days.

• Review process generally 30-60 days with permit generally 

issued within that time frame.

• Permits valid for 1 year and can be renewed, if not 

sufficiently used can be cancelled and issued to another 

user.
0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

Acre-Ft (Thousands)

Excess Still

Available

Permitted (Gas)

Permitted (Other)

Volume in Basin (Acre-Ft) Arkansas White Delta/East AR

Total Excess in Basin 2,700,000 1,700,000 4,200,000

Remaining Excess 2,557,145 1,632,044 3,567,019

Non-Riparian Permitted (Municipal/Ag.) 80,050 13,420 624,280

Non-Riparian Permitted (Gas Industry) 62,805 54,536 8,701

Excess Surface Water Non-Riparian Use & Availability

Currently only 

0.03% of

available excess 

surface water 

allocated
QUESTIONS ?