Agenda'of'the'Talk

 TREATMENT'VS.'DISPOSAL

 Presenting'A'Cost'And'Risk'Assessment'Of'Water'Recycling'Versus'

Water'Disposal'To'Demonstrate'The'Financial'Potential'Of'A'Smart'

Water'Recycling'Program

 Aggregating'the'capital'expenditure'on'well'cost,'well'drilling'and'price8 per8barrel'of'water'disposal'to'establish'an'accurate'comparison'with'the'

cost'of'water'recycling

 Investigating'future'regulatory'direction'and'liability'on'disposal,'induced'

seismicity'and'produced'water'spills'to'ensure'a'financially'feasible'long8 term'water'recycle8reuse'strategy

 Demonstrating'chemical'and'mechanical'water'recycling'techniques'and'

methods'to'allow'conservation'of'freshwater'sources

 Exploring'cost8effective'and'environmentally'friendly'uses'for'recycled'

water,'including'irrigation,'to'enhance'public'perception'of'operations

 Analyzing'on8site'and'mobile'water'treatment'methods'to'eliminate'

water'transportation'costs
Volumes'involved'and'Costs'(example'case)

 More'than'5'million'gallons'(120,000'bbls)'over'a'short'period

 Flowback Water'(post8stimulation'shorter'period)'and'Produced'Water'(Life'of'the'well)

 Around'800,000'gal/well'of'waste'water'produced

 Flowback and'produced'water'combined'headed'to'exceed'4'billion'gals'by'2019'

60%'cost'reduction

(1)$Produced$and$Flow$back$Water$Recycling$and$Reuse
Composition

 TDS: Salts,'Organic'matter,'Minerals'And'Inorganic'Constituents'(sodium,'calcium,'and'

chloride'picked'up'from'rock'formation)'[preferable'if'less'than'500'mg/L]

 Composition: 98%'water'and'sand'PLUS'2%'friction'reducer,'biocide,'surfactant,'scale'

inhibitor,'breaker,'Linear'Gel,'Cross8Linker'(Boron,'Zirconium,'Titanium'and'Aluminum)'and'

clay'stabilizer

(1)$Produced$and$Flow$back$Water$Recycling$and$Reuse
Issues

 Removing'Boron,'Calcium'ʹ Too'expensive

 Cross8linking'sensitive'to'salts'in'Frac fluids

 Conventional'Treatment'Options:'Flocculations,'Coagulation,'Sedimentation,'Filtration'and'

Lime'softening:'Non8dissolved'constituents,'such'as,'TSS,'oil'and'Grease,'hardness

 Advanced'Treatment'Options:'Reverse'osmosis'membranes,'Thermal'Distillation,'

Electrolysis,'Evaporation'of'Crystallization'ʹ Energy'Intensive'

 Limited'Salt'water'disposal'wells'and'associated'seismicity
Old'vs.'New'Treatment'Methods'using'Chlorine'Dioxide

Old'methodology

New'methodology'

(2)$The$New$Reality$of$Hydraulic$Fracturing:$Treating$Produced$Water$is$Cheaper$than$Using$Fresh
Chlorine'Dioxide'ʹ cost8effective'and'potent'solution'?

(2)$The$New$Reality$of$Hydraulic$Fracturing:$Treating$Produced$Water$is$Cheaper$than$Using$Fresh
Modifications'for'Borate'Cross8linked'Gels

Compatibility'with'friction'reducer

Rheology'Testing

Clarified,'Chlorine'Dioxide'Treated'and'Untreated'Water

(2)$The$New$Reality$of$Hydraulic$Fracturing:$Treating$Produced$Water$is$Cheaper$than$Using$Fresh
Full8Scale'Implementation

(2)$The$New$Reality$of$Hydraulic$Fracturing:$Treating$Produced$Water$is$Cheaper$than$Using$Fresh
QA/QC'and'Cost'Savings

65%'in'cost'savings

(2)$The$New$Reality$of$Hydraulic$Fracturing:$Treating$Produced$Water$is$Cheaper$than$Using$Fresh
ŶŽƚŚĞƌŽƉĞƌĂƚŽƌ͛ƐǁĂƚĞƌƌĞĐLJĐůŝŶŐĐĂƉĂďŝůŝƚLJ

(3)$Approach$Resources$Investor$report
Conclusions

 Logistics'(terminals)'and'Costs

 Recycled'water'compatibility'and'modifications

 Sustainability'and'continuity'of'operations
References

1. Produced'and'Flowback Water'Recycling'And'

Reuse,'Pam$Boschee (Oil$and$Gas$Facilities$Senior$

Editor)

2. SPE'8174956,'The'New'reality'of'hydrualic

Fracturing:'Treating'Produced'Water'is'Cheaper'

than'Using'Fresh,'Christopher'Barnes'et.'al.

3. Investor'Report'ʹ Approach'Resources