# Tight Oil Water 

# Congress October 29, 2012

# Forward Looking Statement

23 

# How Operators Are Implementing Comprehensive Water Management Systems From Transport To Treatment To Re H Use To Save Millions On Well Costs

3⁄4 

## Water Uses & Sources 3⁄4 Technologies for Water treatment/ re H cycling 3⁄4 Exploring how operators can recycle and reuse flow H back and produced water a second or third time to cost H effectively manage 

## large volumes of water 3⁄4 Understanding how operators have integrated transport and storage systems into their recycling program to reduce the overall costs of water management 

## 3⁄4 The challenge going forward 

# Agenda4 

# Water Uses H Reminder

WWW.COGA.ORG Water Use vs. Energy Use ,WLVLQWHUHVWLQJWRFRPSDUHWKHZDWHUUHTXLUHGWRSURGXFHHQHUJ\DQGWKDWKRXVHKROG·V domestic water use. 7KHDYHUDJHDQQXDOKRXVHKROGFRQVXPSWLRQLQ&RORUDGRLVNLORZDWWKRXUV
. 7KHDYHUDJHQDWXUDOJDVSRZHUSODQWFRQVXPHVJDOORQVRIZDWHUSHUPHJDZDWW hour and requires 7.28 thousand cubic feet of gas to provide one megawatt hour in an average Colorado combined cycle natural gas plant. 7KXVWKHDYHUDJHKRPHFRQVXPHVJDOORQV % yearly use) and 60 thousand cubic feet of natural gas for electricity use per year. 7KHDYHUDJH'HQYHUKRPHXVHVJDOORQVRIZDWHUSHU\HDU
. Table 1: Colorado Water Use (2005) Million gallons/Day Billion gallons/Year Irrigation (crop) 12,321.85 4497.5 Irrigation (golf course ) 40.64 14.8 Public

O supply 864.17 315.4 Domestic 34.43 12.6 Industrial 142.44 52 Livestock 33.06 12 Mining 21.42 7.8 Thermo

O electric 123.21 45 Total withdrawals 13,581.22 4957.1 Source: USGS 2005 Estimated Withdrawals and Use of Water in Colorado, 20055 

# Water Sources H Colorado
The water used in drilling and hydraulic fracturing can come from a variety of places . It may be: 3⁄4 Purchased or leased from municipal supplies. 3⁄4 Transferred as water rights, such as agriculture water rights. 3⁄4 Fully consumable water, 3⁄4 Leased or purchased effluent. 3⁄4 Denver Basin non

- tributary groundwater. 3⁄4 Produced water (non

- tributary). 

### $OOZDWHUXVHGE\&RORUDGR¶VRLODQGJDVLQGXVWU\PXVWEHREWDLQHGOHJDOO\ under Colorado water law. At an estimated maximum build out for Colorado wells for 2012, oil and gas development would only use 0.13% of all RI&RORUDGR¶VZDWHUXVHWKDWLV 13/100 of 1 percent). Estimated 2012 water use : 3⁄4 1,500 Vertical/Directional wells x 1,000,000 gallons 5 3⁄4 1,000 Horizontal wells x 5 million gallons 6 3⁄4 Total 2012 gallons: 6,500,000,000 3⁄4 6,500,000,000 ÷ 4,957,000,000,000 = 0.13 % &RORUDGR¶VRLODQGJDVLQGXVWU\LVFRPPLWWHGWRPLQLPL]LQJRXUZDWHUXVHDQG maximizing our recycling. We are investing in these efforts across the state.
WWW.COGA.ORG

# Water Treatment Technologies

 TSS (Total Suspended Solids) 

### /Selected TDS (Total Dissolved Solids) 

### Removal

± Different processes to remove TSS and some TDS.

± Does not remove Salt

± Electro

O Coagulation, Nano
O filtration or Clarifier

 Reverse Osmosis (RO) or Forward Osmosis (FO)

± Mobile treatment for most TDS and Salt Removal

± RO Limited by TDS Level of 50,000 ppm inlet water

 Mechanical Vapor Recompression (Evaporator)



### ± Recovers very fresh water

± Typically Less Mobile than RO SystemIncreasing removal and increasing costs $2/BW

$ 20/BW

# Clean Brine Option

 Vendor: Trial 1

 Technology: Electrocoagulation

 Goal: Removal of Suspended Solids, Heavy Metals, Hydrocarbons, plus some scaling agents and bacteria

7

# Desalinization Option

 Vendor: Baker Hughes Water Management

 Technology: Evaporation

 Goal: Desalinized, fresh water (<300ppm TDS)

8

# Water Recycling Initiatives

 Evaluate economic feasibility to implement long term 

# recycling projects in each asset area

 Develop various recycling projects, one in each asset area with ongoing frac completions.

± Target to recycle 2,000 to 4,000 BWPD per project

± Goal: Added water treatment costs will be offset by savings in water sourcing, transportation and disposal.

9

# Re H Cycling Projects

10 3⁄4 Single entity owned and operated 3⁄4 Full re H cycling capacity 3⁄4 Managed transportation

Wyoming Texas

Colorado

# Challenges of Produced Water Recycling

1. Determine criteria for frac water quality 2. Water treatment cost: $1
H $10/BW 3. Need permit to store produced water in a pit 4. Testing water wells near storage facilities (we should) 5. Need to minimize transportation logistics

11

# Benefits of Produced Water Recycling 1. Reduces demand for groundwater 2. Reduces need to dispose of produced water 3. Potential to decrease transportation cost 4. Influence the public debate during a drought 

# 5. Influence legislative change

1213 Throughout the energy sector, there are opportunities to co H produce energy and water. Locating power plants adjacent to water treatment facilities or more brackish or

produced water resources could at least partially displace freshwater needs. In addition, waste heat from power plants can be used in some desalination cycles, and biogas from wastewater treatment plants can be used to generate power. Within the energy sector, the need to provide heat for re H gasification of liquefied natural gas fits well with the need to provide cooling for power plants. 

# The Cycle of Energy/Water

OVERVIEW OF ENERGY H WATER INTERDEPENDENCIES AND THE EMERGING ENERGY DEMANDS ON WATER RESOURCES Ron Pate, Mike Hightower, Chris Cameron, and Wayne Einfeld Sandia National Laboratories2 Albuquerque, New Mexico Analysis of trends of increasing water demand for energy reveal several interesting issues:

 Current directions in energy development and energy production could significantly increase water consumption through 2035, making energy the sector with the largest non H agricultural water consumption,

 Additions of fresh water resources are somewhat limited and water reclamation and water reuse could become the major new source of future water supplies,

 If the growth in water reclamation continues, overall national water availability could be sufficient to support water demand growth, though regional shortages are likely to occur, especially through 2015,

 Energy sector processes for cooling, scrubbing, refining, etc. will need to become compatible and cost H effective for use with reclaimed or nontraditional waters,

 Through 2015, water supplies development will be under significant pressure to keep pace to meet emerging water demands,

 The siting priorities of energy facilities may change to use large reclaimed water sources in urban areas, and

 Energy planning will become increasingly dependent on interactions regional water, waste water, and agricultural water managers and planners because regional energy and water concerns may become common.

# Expectations

 What an operator can do legally in s tates varies



###  We have to be adaptable with changing technologies

 The Industry must share advanced technologies in water use to reduce fresh water needs, and drive down the overall cost

 There are a lot of stakeholders watching what and how we manage ourselves, we should have the highest level of expectation as an LQGXVWU\IRURXU ́(QYLURQPHQWDO6WHZDUGVKLSμ



##  We have to start thinking with other energy users of how to 

## really build out infrastructures that leverages water, energy and commercial needs of the communities

± Ex.
O while we build out pipelines and/or transmission systems, we should think about what other energy partners could use 

## the right

O a O ZD\VVRWKDWZHDUHEXLOGLQJD ́VPDUWμV\VWHPLH water pipelines to leverage non

O potable/ produced water for industrial needs

14

# The Future

15 EIA H 2011 report16 

# The Future17 

# The Cycle of Energy/Water

Agriculture Human Consumption Manufacturing Population Growth 

## Energy

Water Population Growth Energy Demand Growth Equals More Water/ therefore more Energy will be needed!

# Requirements into the Future

 Due to the US having the capacity to increase its energy needs internally versus imports, our cost per unit will go down.

 This will help in improving our cost structure for water demand, sourcing water, and cycling water.

 We have to learn to use non H potable water blends for only our needs but where ever any industrial needs can be meet

 We have to learn where we can leverage our uses/needs for water with our own.

 How about all the wells we will plug, where surface csg exist with good cement, that could create access to non 8 potable water resources for other industries??? 18