New	Ideas	for	an	age-old	problem:	

How	do	we	manage	water	use,	reuse,	recycling	

&	disposal	when	we	don’t	have	any	money?	

Eddy	Biehl,	CEO		

Stonebridge	Opera>ng	Co.,	LLC	
My Background 

• 4th Generation Oilman 

• Almost 5th-but for that Panic & Oil Crash of 1873 

• Harvard, Class of 1978 

• BA in Economic Geology 

• Over 35-year Career Progression 

• Geological & Engineering Consultants to ‘86 bust 

• Workout Specialists through the rest of the ‘80’s 

• Then producer, workout candidate, shale service 

company & producer again 
Oil	&	Gas	Industry	Roots	

Great-	Great-	Uncle

Moore’s	Junc>on	-	1891	

Great	Uncles	

Midway	Sunset	-	1910	

Grandfather	

Newell’s	Run	–	1928	

Drilling		 Comple>on	 Produc>on	
In	Water	Management,		

Timing	is	everything:	

• I	never	have	enough	of	the	water	

at	the	quality	I	need	it	but	I	always	

have	too	much	of	every	variety	

when	I	don’t	
Water:	How	do	we	store	it	un>l	we	need	it?	

• In-ground	impoundments-a	tricky	issue	and	on	the	

way	out	for	all	but	fresh	water	

• Tanks-geYng	cheaper	but	s>ll	can	run	up	quite	a	tab	

in	a	“cashless	environment”	

• Coordinated	Use	is	the	key	

– Con>nuous	but	reduced	pace	opera>ons	in-house	

– Alterna>ve	uses	inside	the	company	

– Shared	use	between	companies	
It	is	tough	in	a	cold	weather	environment-	

Winterizing Water	Facili>es	

• Heat	the	product

• Heat	the	plumbing

• Move	the	product

• Add	chemicals	to	lower	freezing	point

It	all	costs	$$$$$$$$$$$$$$$	
Induced	Seismicity:

Proceed	With	Cau>on	

Induced	Seismicity,	“earthquakes	caused	by	

injec>on”,	is	one	of	the	new	hot	bu`on	issues	the	

an>-oil	ac>vists	are	using	to	restrict	development.	

And	it	can	be	a	problem	in	the	Appalachian	Basin	

as	well	as	in	the	Mid-Con>nent	and	East	Texas	
Oklahoma	&	NE	Texas	Show	up	on	the	Induced	Seismicity	Watch	List	
Earthquake	Epicenters	in	Ohio	and	Border	Areas	

Ohio	epicenters	

are	mostly	

located	away	

from	injec>on	

well	sites	but	

there	are	areas	

of	concern.	
To	date,	only	the	D&L	

injec>on	wells	in	

Mahoning	County	near	

Youngstown	have	been	

>ed	to	induced	seismicity	

though	other	areas	bear	

monitoring.	
It	has	always	been	about	the	Booms....	

and	the	Busts	

• From	Drake	to	the	Shale	Boom	&	Bust	it	is	a	brutally	

cyclical	business	

• The	key	is	recognizing	it	is	a	cycle	but	remembering	its	

unpredictability	as	to	exact	>ming	

• Each	cycle	has	its	unique	characteris>cs	

• But	they	all	have	one	thing	in	common:	

A	Boom	will	be	followed	by	a	Bust	followed	by	a	Boom	
Types	of	Oil	Booms	

– Play	Driven	

– Technology	

– Price	

– Poli>cal	

– Macro-Economic	
Play	Driven	Booms	

• Discovery	Driven	

-Examples	are	Spindletop	on	the	

Texas	Gulf	Coast	&	the	original	Drake	

Well	at	Titusville	among	many	others			

• “Close-ology”	

-Everyone	wants	to	get	in	on	the	

boomer	well	
Technology	Driven	Booms	

• Engineering	Advances	

-Examples	are	the	introduc>on	of	

rotary	drilling	in	the	early	20th	Century

• Geological	Advances	

-Seismic	in	all	its	evolu>ons	&	

revolu>ons	
Price	Driven	Booms	

• Local	Factors	

-Controls	on	interstate	NG	Prices	in	

the	mid-70’s	led	to	drilling	booms	in	

Texas	&	Ohio	for	“self-help”	gas

• Global	Economy	

-Supply	shortages-real	or	perceivedcan	drive	up	oil	&	gas	prices	
Poli>cally	Driven	Booms	

• Regional	Ac>ons	

-The	Arab	Oil	Embargo	in	1973	is	the	classic	

example	

• Government	Ac>ons	

-The	NGPA	of	1978	set	the	MLP	for	NG	

which	resulted	in	ar>ficially	high	prices	

• Wars	are	poli>cal	&	drive	demand	
Macro-Economic	Driven	Booms	

• Recessions	&	Booms	

-The	recent	Asian	Demand	scenario	

• Monetary	Policy	&	the	like	

-Expansionary	policy	drives	commodity	

prices	
The	Horizontal	Shale	Boom	

We	had	elements	of	all	five	factors	

• Resource	Plays	like	the	Shale	got	hot	&	

sprang	up	everywhere	

• Geology	&	engineering	unlocked	the	

resource	and	made	it	plen>ful	&	economic	

• Prices	hit	all	>me	highs	

• Post	9-11	Military	ac>ons	increased	demand	

• The	central	banks	printed	money	like	it	was	

going	out-of-style	post-2008	Crash	

So	where	do	we	go	from	here.....?????