, 

## Examining The Fresh Water Availability And Permitting Of Source

Water In The Bakken Region Of North Dakota Jon Patch, Director of Water Appropriations

# Discussion Points

• Current and future projections of water resource availability, permitting, and sustainability.

• Industrial water sales policy and levels of enforcement and monitoring

• Dealing with water permit violation and water theft through civil penalties.

• Real-time (telemetry) water-use monitoring initiative using SOAP protocol.

# Water USE

Industrial (14%)

Irrigation (42%) Multiple Uses (0.4%) Municipal (27%) Power Generation (12%) Rural Water (5%) Industrial (10%)

Irrigation (55%) Multiple Uses (0.3%) Municipal (21%) Power Generation (9%) Rural Water (4%) 2011 Acre-Feet 2012 Acre Feet

Industrial Irrigation Multiple Uses Municipal Power Generation
Rural Water Total Acre-Feet = 357,137 Total Acre-Feet = 242,337 Reported Consumptive Water Use for North Dakota

33.9K ac-ft 35.7K ac-ft

65.4K ac-ft 75K ac-ft
101.8K ac-ft 208K acres 196.4K ac-ft 260K acres

# Industrial Water Use in the Bakken Region JUST oil industry water needs

! 2012 Industrial Water Use Current Allocation Pending Applications 

### Acre-Feet totals 16,991 77,328 126,779

# Water USE

# “new” demand Sources

! Surface Water Lake Sakakawea WAWS pipeline Missouri River Yellowstone River Smaller Creeks and Streams Water in ponds and sloughs ! Ground Water Aquifers Glacial origin Bedrock aquifer Not From Fox Hills aquifer - off limits to industrial

# North Dakota Century Code Title 61, Chapter 01, Section 01 “All waters within the limits of the state from the following sources of water supply belong to the public and are subject to appropriation for beneficial use and the right to use of these water for such use must be acquired pursuant to chapter 61-04.”

• Surface waters

• Residual waters from beneficial use and

artificial drainage • Groundwater

• Non-contributing drainage areas

# North Dakota Century Code Title 61, Chapter 04, Section 02 “Any person, before commencing any construction for the purpose of appropriating waters of the state or before taking water of the state from any constructed works, shall first secure a water permit from the state engineer

! ” Exceptions:

• Domestic and livestock uses (less than 12.5 acre-feet/year)

• Fish, wildlife, and recreation uses (that store less than 12.5 acre-feet)

• Irrigation of less than 5 acres (domestic)

# Types of Permits

1. Conditional (establishes permanent water right)
2. Temporary

• No water right accrues

• Maximum One year in length

• Only for excess surface water

• Temporary Industrial In-Lieu-Of Irrigation

• Existing irrigation permit – forgo irrigation for the calendar year to use for industrial

# Applying For A Conditional Water Permit

# North Dakota’s Water Permit Process

# Recommended Decision

• Expected effect of the proposed project on prior appropriators

• Application of criteria for issuance of a permit Hydrologist Or Engineer Reviews:

• Physical setting (hydrology, geology, climate, water quality)

• Existing water use and its effects

• Letters of concern

# Criteria For Issuance Of A Permit N.D.C.C. § 61-04-06 - State Engineer must grant permit if:
1. Senior water rights not unduly affected 2. Means of diversion/construction are adequate 3. Use of the water is beneficial 4. Proposed appropriation is in the public interest :

• Benefit to applicant

• Effect on economic activity

• Effect on fish and game resources, and recreation

• Effect of loss of alternative uses of water

• Harm to other persons

• Intent and ability of applicant to complete the appropriation

# State Engineer’s Decision

If granted, State Engineer applies conditions to the permit. Once the water is put to beneficial use or the beneficial use date has passed, the permit can be inspected and perfected. 1. Determine if hearing is needed 2. Grant conditional permit (as applied for or reduced) 3. Deny or defer the application

# Temporary Permits

• Surface water only; issued for groundwater for emergencies only

• Valid for up to one year

• Can be reissued but not guaranteed

• No water right accrues Example: Selling water from ponds or sloughs to the oil industry for hydraulic fracturing

# Increased Demand For Water For Oil Industry

" About 100 Water Depot-related Conditional Water Permits Have Been Granted In The Past 6 Years

" Over 100 Conditional Permit Applications Pending

" About 25 Depots Use Water ‘In Lieu Of Irrigating’

" Temporary Water Permits – About 200 Per Year For Oil-Related Water Sales

### • Over 600 applications have been received Issued about 475 thus far

• Oil Industry Sales – 198 (42%)

• Road Work - 148 (31%)

• Irrigation - 19 (4%)

• Gravel Washing - 13 (3%)

• Other – 97 (20%) 

# 2013 Temporary Water Permits

### • Over 119 applications have been received Issued about 55 thus far

• Industrial – 32 (58%)

• Irrigation – 21 (38%)

• Municipal - 2 (4%) 

# 2013 Conditional Water Permits

### • In 2005, We Had ONLY One Groundwater & One Surface Water Hydrologist Assigned To All of Western North Dakota

• 3 Staff Positions Added

• 1-Water Resource Manager

• 2-Water Resource Engineers



### • Shifted 5 Eastern ND Hydrologists To Western ND 

# Staffing

# Water Needs Of A Growing Population

• Water Permit Required For Municipal And Rural Water Use

• Water Permit Not Required For Domestic Water Use Of Less Than 12.5 Acre-feet Annually

• If Residential Development Uses More Than 12.5 Acre-feet Annually, A Permit (Municipal) Is Needed

• Potable Water For Use In An Office Or Shop Is Considered A Domestic Type Of Water UseMunicipal Or Domestic? 

# South Of Watford City:

### • Each Bakken/Three-Forks Well

• Expected To Require 10-15 Barrels Of Water/Day

• 2,000 new wells per year

• 900 to 1,400 acre-feet per year

• 40,000 new wells will need 18,000 to 30,000 ac-ft/yr 

# Another “New” Demand Maintenance Water

# Challenges Over Missouri River Use

• Conflict With Corps Over Water Behind Garrison Dam – Contributes To Water Reuse Options

• Missouri River Represents 96% Of North Dakota’s Surface Water

• Current And Future Oil Development Will Depend On Access To Missouri River Water

# Water Reuse In Oil Production

• Dramatic Increase In Oil Production

• Approximately 7 Acre-Feet Being Used In Fracking Process

• Estimates That Maintenance Water Use Will Match and Exceed Water Use In Fracking Process Annually

• Gray Water Is Becoming A Source

• Technologies Being Developed To Recycle Flowback and Produced Water

• Obstacles And Challenges Exist But We’re Seeing Innovation To Help Drive Down Costs

# Re-Use Case Study: Dickinson

• Original Source: Missouri River via SWP

• Original Use Type: Municipal

• New Source: City Of Dickinson WTP

• New Use Type: Industrial (Oil Field Use)

• Volume: 10,080 acre-feet

• Application Status: Withheld/Deferred

# Re-Use Case Study: Enviro Waste Solutions

• Original Source: Little Knife River

• Original Use Type: Municipal

• New Source: City Of Stanley Wastewater Lagoons

• New Use Type: Industrial (Oil Field Use)

• Volume: 179.3 acre-feet

• Status: Application In Processing

# The Future

• Cost Incentives For Water Reuse

• Increased Oil Production Drives Need For Water Reuse

• Technologies Continually Improving

• Water Access Challenges In Western North Dakota

# Industrial water sales Policy

• Due to the increase in demand and potential overuse because of profit potential for industrial water sales, we have implemented monthly reporting requirements on all permits (temporary and conditional).

• We are doing spot meter inspections by our technicians and hydrologists when in the area.

• Monthly reporting and spot meter inspections are our first level of additional enforcement . This has been implemented on all industrial water sales permits.

# Most Permitted Water Use Self-Limiting For: Irrigation, Municipal, Industrial



### • Enough water will be granted to meet the annual requirement

• No incentive to use more than allocated

• No need to keep track of water use through the year

# Water Sales Not SelfLimiting

• Sales Not Related To A Process

• When Applying For A Permit, There Is Not A Formula To Determine Annual Water Requirement

• There Is A Need To Keep Track Of Sales Vs. Permit Allocation Through The Year

• It Is Common For A Depot’s Annual Allocation To Be Used Up Before The End Of The Year

# Violations water “Stealing”

• 

### Pumping more than allowed under the permit

• 

### Pumping without a permit

# Penalties For Violating Rules Of The State Engineer

A. Civil Penalties NDCC 61-03-23 .
B. Criminal Penalty NDCC 61-04-30.A. Civil Penalties NDCC 61-03-23.

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# Penalties For Violation ...

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# Enforcement Philosophy
1. Stop the illegal activity.
2. Financial penalty suited to the severity.
3. There should be a net zero impact on the managed resource

# Cease and Desist Order

• When enough evidence exists to justify

• Can be processed quickly1. Establish a fine that is at least equal to the value of the water sold to take the profit out of illegal water sales. 2. For those with water rights (conditional or perfected water permits), the quantity of water pumped in excess of that permitted is subtracted from the following year(s) allowed use, to result in no net impact to the water resource

. 3. Criminal penalties are “taken off the table” 4. Fines in 2012-2013 have totaled over a $1.6M. 

# Consent Agreements

# Consent AgreementsA. Request assistance from the public, landowners, law enforcement B. Report violation to the Office of the State Engineer through local law enforcement or directly via phone, email, mail. C. Provide documentation of illegal activity, # Who – the names of the people or companies involved, # When – date and time when the activity took place, # Where – details of the location, including latitudelongitude, if possible, # How much – quantity of water, pumping rate, if known, # Photograph – orientation, description (USE YOUR SMART PHONE WITH GPS AND DATESTAMP) , # Witnesses – names, signed affidavit, if possible, # Summary of investigation conducted. 

# Limited Resources in The Field

# Take-Away Points

• Water is not private property

• Taking water for any purpose other than for household use, stock and small irrigation (under 5 acres) requires a permit from the State Engineers office

• Document and report potential violations to our office

# Real-Time Monitoring

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# SOAP Protocol

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• S%''4!'4!1'(1$#.!.$&5(9!'(!.*$!QR@S!7"."!.%"(&4$%!#%'.'1'-&!*"&! J$$(!1'8#-$.$70! N*$!T".$%!@##%'#%,"5'(!>,+,&,'(!&."U! 7$+$-'#$7!"(7!,8#-$8$(.$7!.*$!.$1*('-'9:!"(7!#%'.'1'-&! ($1$&&"%:!.'!$(&2%$!&$"8-$&&!,(.$9%"5'(!),.*!'2%!)".$%!#$%8,.! 7"."J"&$!J$4'%$!J$,(9!#2.!,(.'!#%'7215'(0!

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# Water Depot Mapservice
8"#&$%+,1$0&)10(709'+

# Tyler Formation

# ND Water Resource Investigation No. 53

# Thank You http://swc.nd.gov