JSMeyerEngineering,PC

7/21/2015 1

OilandGasFrack,Produced,

FlowbackWaterProcessing

Technology
Whyarewehere?

7/21/2015

2

ToinformtheEPAthatthistechnologyexists.Regulationsarebeingformedandthoughtitbesttocommunicateour

technologyinatimelyfashion.

Webelieveitcanhaveamajorpositiveimpactontheindustry.

WellOperationOverview

FracturingFluid

50,000toover10million*

Gallonsperwell

Well

DrillingWastewater2,400– 1,100,000*GallonsperwellFlowbackWater210,000– 2,100,000*Gallonsperwell

*AllValuesaretypical

LongtermProducedWater200– 900*gallonsperdayperwellforlifeofwell

7/21/2015

4 Updated7/1/2015

EPA821R15003,March2015,TechnicalDevelopmentDocument

forProposedEffluentLimitationsGuidelinesandStandardsforOilandGasExtraction
NaturalGasShaleBasinsintheUS

http://www.businessinsider.com/bidpricesdoubleinpennsylvanianaturalgasauction20101 7/21/2015

5
ProducedWaterMarket

20billionbarrelsperyear(US)77billionbarrelsperyear(Worldwide)3.2trilliongallonsofwaterperyearrequiringtreatment

7/21/2015

6
ExistingProposedTreatmentProcess

(byothers)

Well Filtration Evaporator DeepWellInjection

OffSite

Sludgeto

Disposal

7/21/2015

7
IssueswithExistingProposed

TreatmentProcess

(byothers)

FreshwaterneedsarenotreducedHighenergydemand– evaporationSignificantcapitalinvestment

Estimatedequipmentcost>$20M

Significantcost/gallonofwatertreated

Estimatedcost/gallonofwatertreated:$18.50/barrel

Requirescentralizedplant

EvaporatorDeepwellinjectionNoreductionintrucktraffic!Requirementoftransportingwastewaterisnotalleviated

7/21/2015

8
OptimalTreatmentProcess

ProducedwatertreatedtoEPAdrinkingstandardwith

exceptiontodissolvedsaltlevels

Well

Dirty

Water

Feed

Initial

Filtration

Chemical

Softening

Thickener

Chemical

Softening

Chemical

Softening

Filtration

Neutralization

Solids

Disposal

UV

Disinfection

System

OrganicsRemoval

Solids

Disposal

NewWell

Multimedia

Filtration

7/21/2015

9

Ba/Sr

Removal

Solid/Liquid

Separation

Solids

Recovery
OurResults

7/21/2015 10

Untreated Treated DeionizedWater
WellAnalysis:Flowback/Frac

(AllValuesinppmunlessotherwisestated)

Flowback

Water

FracWater TreatedFrac

Water

DrinkingWater

Standard

Aluminum 0.86 0.23 ND 0.2*

Arsenic ND ND ND 0.01

Boron 0.15 0.31 0.179 

Barium 1.76 58.65 0.007 2

Beryllium ND ND ND 0.004

Calcium 1750 280 0.361

Cadmium ND ND ND 0.005

Chromium 0.79 ND ND 0.1

Copper ND ND ND 1.3

Iron 3.4 13.11 ND 0.30*

Potassium 337 10.16 151

Magnesium 30 21.33 0.05

Manganese 0.08 0.42 ND 0.05*

Molybdenum 0.16 ND ND 

Mercury ND 0.001

Sulfur 258 2.2 4 250*(sulfate)

Sodium 5095 593 5020

Lead ND ND ND 0.015

Antimony ND ND ND 0.006

Selenium ND ND ND 0.05

Silicon 20.8 2.62 1.2

Strontium 68.2 49.68 0.7 

Zinc ND 0.21 ND 

7/21/2015 11 *Secondarydrinkingwaterstandard
WellAnalysis:ProducedWater

(AllValuesinppmunlessotherwisestated)

Tote330 Tote756 Stage1

Treated

Sample

Stage2

Treated

Sample

Finished

Sample

DrinkingWater

Standard

TOC <1 <1 <1

Aluminum <5 <5 <0.05 <0.05 <0.25 0.2*

Barium 5,560 5,440 4.83 3.1 0.561 2

Boron 13.2 13 1.78 1.29 0.873 

Calcium 44,000 43,100 24.1 17.4 5.74

Iron 181 180 <0.02 <0.02 <0.1 0.30*

Lithium 237 232 55 50.4 1.24

Magnesium 2,860 2,770 8.72 7.77 0.558

Manganese 36 34 0.092 0.0117 0.022 0.05*

Potassium 1,170 1,150 414 1,050 760

Sodium 36,700 38,200 34,600 36,200

Strontium 15,300 15,000 47.3 36.6 3.32 

Sulfur 1.5 <5 3.02 3.14 13.3 250*(sulfate)

7/21/2015 12

*Secondarydrinkingwaterstandard
MobileTreatmentFacility

7/21/2015 13
OptimalTreatmentProcessAnalysis

AllinorganicswerereducedtolevelsthatcomplywiththeEPA

drinkingwaterstandard

Radioactivity

Alpharadionuclideswereremovedinthechemicaltreatment,however,

only60%ofbetaradionuclideswereremovedinthefirststep.A

provenadditionalstepwillbeusedtoremovebetaradionuclidesto

acceptablelevels.

Additionaltestsmustbeconductedtoconfirmthis.

7/21/2015 14
CompetitiveAnalysis

ElectroCoagulation(Halliburton)DistillationCarbonAbsorptionJSMProcess

7/21/2015 15
ElectroCoagulation(Halliburton)

Useselectricitytocoagulatecolloidalmaterials.GenerateslimitedCL2andbasefor

precipitationofdivalentmetals.Leavesdissolvedsolidsinthematerialandrequiresconcentrationpriortodeepwellinjection.

Adv – >1st stagetreatmentoffrac waterissuitablefor5Xrecycle.

Con >Needlargeamountofpoweratwellsite

>Transportationanddeepwellinjectionoftheresultingbrine>Chlorineformationatppmlevels

>Hydroxideformationwhicharedifficulttofilter

Cost– Electricity$ 2.00

Transportation $ 10.50

DeepWellInjection$ 3.00

Subtotal $ 15.50

Waterrecycle $+2.00Saltrecovery $+1.40

TotalCost/BBL $ 12.10

7/21/2015 16
Distillation(MVR)

Shipsproducttofixedplantforevaporation.Waterproductisshippedbacktowellfieldreuse.Breakevenwithpurchaseoffreshwater.Deepwellinjectionrequiredforwaste

brine.Con >Needtransportationofallmaterialoffwellsite

>Doesnotprovideforrecycleatwellsite>Extendedtransportationforwaterreturn

Cost– Evaporation $ 3.00

Transportation $ 10.50

Waterreturn $ 2.00

Deepwellinjection $ 3.00

Subtotal $ 18.50

Waterrecycle $+4.00

SaltRecovery $+1.40

TotalCost/BBL $ 13.10

7/21/2015 17
CarbonAbsorption(Lewis)

Usescarbonbedtoabsorb50%ofmetalions.Remainingwaterandionsgotodistillation

followedbydeepwillinjection.Deepwellinjectionisreducedby50%.Con >Producestwowastestreams

>Takeslargenumberofbedstoremovemetalions(capitalcosts)

>Needtransportationofsomematerialoffwellsite

>Limitedsuccessonhighconcentrationproducedwater>Extendedtransportationforwaterreturn

Cost– Deepwellinjection $ 1.50

Operationalcosts $ 10.50

Transportation $ 3.00

Subtotal $ 15.00

1. Waterrecycle $+2.00

Saltrecovery $+1.40

TotalCost/BBL $ 11.60

7/21/2015 18
JSMTechnology

Usesmanganate iontoformanactivatedmanganesecompoundwhichreducesthe

concentrationofthemetalionsuponprecipitationwithcarbonate.

Adv >Reducesmetalionconcentrationstodrinkingwaterstandard.

>Eliminatesdeepwellinjection>Recovershighconcentrationmetalions

>Notransportationcosts.

>Minimizessolidmaterialdisposalcosts>Recyclesofwateratwellsite

Con >NoneCost– Operationalcosts $ 5.50

Subtotal $ 5.50

Waterrecycle $+2.00SaltRecovery $+1.40

TotalCost/BBL $+2.10

7/21/2015 19
BariumandStrontiumRecovery

BariumRemovalStep

BariumSolids

Barium– 83%Strontium– 13%Calcium– 4%

StrontiumRemovalStep

StrontiumSolids

Strontium– 80%Calcium– 13%Barium– 7%

ValueofSolids~$1.00/barrelofwatertreated

7/21/2015 20
Summary

CatalyticPrecipitation Distallation/MVR

CarbonAbosrption

ElectroCoagulation

WaterRecycleat

Site YES NO NO LIMITEDMetalRecoveryYES NO NO NOSaltRecovery YES YES YES YESDeepWellInjection NO YES YES YESCost $2.10/BBL $13.10/BBL $11.60 $12.10

7/21/2015 21
TechnologiesNotEvaluated

(notsuitableforProducedWater)

ElectroDialysis– LimitedtolowTDSmaterialFoulingResistantMembranes– DivalentionscausefoulingUltraFiltration– RemovessolidsonlyReverseOsmosis– LimitedtolowTDSmaterial(limitedusefor

Step1FRACwater)

7/21/2015 22
Conclusion

JSMProcess

EliminatesdeepwelldisposalReducesfreshwaterusageFurtherenablesrecyclingLowcapitalcostLowcost/gallonofwatertreatedEnvironmentallyfriendly

7/21/2015 23