# Fresh water sourcing and recycling economics

Presented at 3 rd Annual Shale Gas Water Management Initiative

November 28 , 2012 Dallas, TX By: Dewitt Dees

- HWR2

###  Water Logistics in the Oil and Gas industry

 Myths vs. Reality of Frac Process

 Flow back and produced water qualities and associated treatment options

 Case study in the Eagleford shale play

 Conclusions and Questions 

# Discussion Topics

###  Changing economics with fluctuations in natural gas and oil

prices
 TDS, TSS variations from field to field
 Frac chemical variation
 Flow back vs. produced water quantities
 Oil and other organics present
 Intended use for treated water

– reuse or disposal
 Mobile vs. fixed assets


###  Producer owns and operates vs. working with service provider 

# Challenges in treatment selection

# Reuse logistics

56 

# Fresh water storage options T

emporary or fixed pumps, pipelines (flex steel, fibrespar, HDPE, FPVC), strainers, etc. with bag filters for TSS removal

 Option to use large water storage with main trunk line and laterals directly to frac pad to reduce truck traffic

7 

# Water Transfer Options

# Make

- up of typical frac fluids

# Typical Makeup of Flowback and

Produced Waters

• Mainly Water

• Total dissolved solids (TDS)

• A mixture of carbonates, chlorides, sulfates, nitrates, sodium and other materials

• Oils and greases

• Low levels of NORM depending o n formation

# USGS Inlet TDS Survey

Source: http://water.usgs.gov/orh/nrwww/Otten.pdf

###  Filtered/disinfected low TDS waters as “fresh water” for hydrofracturing

 Treated Flowback and Produced water with oil, TSS, scalants removed, and disinfected for blending with fresh water



###  Hydrocarbons recovered from hydrocarbon based drilling muds

 Cleaned cuttings and well pad gravel for reuse

 Calcium chloride, barite, heavy brines that can be produced 

### from the flowback and produced water

 Distilled water from thermal treatment systems

11 

# What will the producers accept as recycled products? Operator Injection Wells <$2 per bbl

 Infield underground injection of water into deep containment zones

 Often no acceptable geologic zones available infield

 Expected to be under increasing public/regulatory pressure over time

 Commercial Injection Wells $1

- 3 per bbl + transportation

 Out of field underground injection of water into deep containment zones
 Expected to be under increasing public/regulatory pressure over time

 Evaporation Pits $1

- 3 per bbl + transportation

 Infield or out of field holding ponds for evaporation of water and storage of salts

 Under immediate public/regulatory pressure and increasing over time

 VOC emissions are a concern

12 

## Existing Disposal

- Treatment Options

###  Solids removal $1

- $3/bbl.

 Condensate/Oil removal and recovery $1

- $4/bbl.

 Hardness removal for reuse (fresh water limited fields) $3

- $5/bbl.



###  Total dissolved solids removal for reuse or discharge (usually in fields with high amounts of produced water) $3

- 12/bbl. depending on incoming TDS and technology used

13 

## Disposal

- Treatment Options

- continued

# Softening via Reaction Clarification

Softening Chemicals

Raw Water

Filtrate Recycle Solids to Disposal Softened Water pH Adjust Overflow

Underflow

Underflow Reaction Clarifier

Sludge Thickener Media Filter

Filter Press

Source: VWS Oil and Gas15



### 12,000 bpd reuse plant in Marcellus Technology is based on proven scientific principles of electro

chemistry.
 First documented in the early 1900s.
 Primary coagulants are iron and aluminum.
 Reaction time is less than 30 seconds and coagulation time is roughly 10 minutes. 

# Electrocoagulation Science

# Where Is EC Effective?

GOOD  TSS  Turbidity  Metals (Fe, Cu, Zn, etc.)  Dissolved Metals  Bacteria  Sulfur Reducing Bacteria  TPH  Barium  Strontium  Emulsified Oils

Source: ROLCO

## Eagle Ford Pilot Project

Eagle Ford Assets

 4 salt water disposal wells (plus 3 permits for new wells)

 70+ trucks

 290+ frac tanks

 180+ miles of temporary piping

“Availability of fresh water is key concern for producers”

18 7,500 BPD EC Unit Project description

 Partnered with technology provider to install and optimize the design

 Install full scale 7500 bbl/day unit at Alpha disposal

 Start up 8/1/12

– Full operation 9/1/12

 System has treated all types of flowback and produced waters from most operators in the area

 S ystem is running successfully on all water types entering facility

 Designed as a fixed system but can easily be moved to an operators field.

19 

# Project Overview Water variability is a wide range

–

 Color black to light blue

 Ph from 1.9

– 6.8

 More organics in water than shown in pilot testing

 Organics break is significant after AECRR #1

 Organic material floats with hydrogen that is dissolved in water

 Material removed from AECRR #1 greater than pilot

 Float material sinks over time

 Filter aid is effective to get all material to float

20 

# Observations21 

# Water before and after22



# EC Benefits23 

### 7,500 BPD Eagleford Recycle Unit24 

### Eagleford EC Recycle System

# Conclusions

 Water management can be a potential obstacle to 

### producers when developing shale plays

 Each field has its own specific set of challenges

 Public perception is not always correct

 Producers are working hard to change public perception 

### and separate fact from fiction

 One technology is not the answer

 Working together

– suppliers and producers can develop a water management program to bring operation costs 

### down and reduce fresh water demand

# Questions?

 Dewitt Dees

 Director Business Development

 Heckmann Water Resources



###  Cell 713

- 253

- 2393

 dewitt.dees@hwrcorp.com