Need to return call by / at/between and

. Signature:

___________________________ Project No.: 0172.09. 038.082 Page 1 of 2

Project Name: Shale Gas 

### CBI?

Yes

No TELEPHONE CALL RECOR D Incoming Outgoing Date: 10/ 26 /11 Time: 11:00 am

pm

Company Name: Fountain Quail ERG Staff Name: Brent Ruminski

Contact Name: Jaime Roman Contact Phone Number: (817)

- 491

- 8650

General Subject: Fountain Quail NOMAD Evaporator



### TOPICS DISCUSSED AND ACTION TAKEN

On October 26, 2011 at 11 AM I called Fountain Quail and spoke with an operator. I explained what I was looking for and she redirected me to Jaime Roman, a manager at Fountain Quail. The following is information

Jaime was able to provide me

.

Jaime first explained how shale gas wastewater is challenging to treat because the quantity and quality of flowback can change day to day. The original NOMAD evaporator unit design was mobile

, for natural gas application

, but the unit may a lso be permanent. The unit treats approximately 2,500 bpd and is capable of treating influent TDS up to 80,000 mg/L. The unit can handle higher influent TDS concentrations but water recovery decreases dramatically, which makes the unit less economically fe asible

.

The NOMAD evaporator uses mechanical vapor compression technology. The unit requires a boiler, at s tart

- up
, to initiate evaporation/boiling

. After evaporation /boiling is initiated , the boiler is shut off and energy

, supplied by a natural gas eng ine

, runs a mechanical compressor to continue the operation (in more of a steady state operation). Jaime said that a recent study with Gas Technology Institute ( GTI ) concluded that the entire system

consumes about 100 SCF of natural gas per barrel of treat ed wastewater.

The NOMAD evaporation unit requires a clarification unit for pretreatment in order to remove TSS. Jaime explained that they tested other TSS removal technologies including dissolved air flotation, elect r o

- coagulation, rotary vacuum drum, and membrane systems

, but clarification is the most cost effective pretreatment option

available. Therefore, Fountain Quail offers two mobile units to operators: the NOMAD ev aporator and the

ROVER clarifier

. An onsite technician (from Fountain Quail) is re quired to run the two units due to the change in quality and quantity of flowback and produced water. Jaime commented that the technician would spend

most of his/her time adjusting operating parameters of the ROVER (the mobile clarifier) since the NOMAD (e vaporator) is a more automated unit.

The company has offe red the NOMAD and ROVER to shale operators nationwide. Jaime specifically

mentioned the Barnett and Marcellus s hale gas plays

. Customers can either rent the two units and are charged a monthly lease or they can sign a contract where they are charge d per barrel of treated wastewater . Another option customers have is to buy the unit outright, in which case Fountain Quail would offer onsite technical support for a limited amount of time until the custome r is comfortable operating the unit

.

At the end of the conversation, Jaime sent me an email containing two case studies. In his email, Jaime also

summarized the technical capabilities of the NOMAD evaporator and gave some background on the Fountain Quail company

. The following list contains technical capabilities of the NOMAD evaporator outlined in the

email:

• Barnett shale wastewater recovery (45,000 mg/L TDS)

– 85 %Need to return call by / at/between and

. Signature:

___________________________ • Marcellus shale wastewater recovery

– 75%

• Fayetteville shale wastewater recovery

– 95%

• The Eureka Resrouces Facility in Williamsport, PA treats flowback and produced water for re

- use with two NOMAD Evaporators . The operation currently exceeds the new DEP discharge regulations (500 mg/L TDS and 25 mg/L chlorides). Customers of this site include Range Resources, XTO, and Chesapeake.

• Fountain Quail r ecently received the first and only NPDES permit in the state of Arkansas that allows

surface discharge of treated water.

Jaime also informed me that GTI would be publishing a detailed case study/report on the NOMAD unit after they analyzed its performance onsite at a shale gas well. He gave me another contact from their office that would be willing to set up a site visit to the Wi lliamsport site in Pennsylvania. The contact is Brent Holldorson

at (817)

- 491

- 8650

, extension 223.