BARRYT. SMITHERMAN, CHAIRMAN DAVI DPORTER, COMMISSIONER BUDDY GARCIA, COMMISSIONER GIL BUJANO, P.E. ACTING DIRECTOR, OIL AND GAS

**DIVISIO~** 

# RAILROAD COMMISSION OF

# TEXAS OIL AND GAS DIVISION ATTNAMYHANSEN PURESTREAMTECHNOLOGY,LLC 510 SOUTH600 EAST SALTLAKE CITYUT 84102 Re: PermitNo. MR-0012, Authorization to Treat by Produced and Frac Flow-back Waterfor Re-use State ofTexas Districts 

### 1, 2, 3,4, 5, 6, 

### 7B, 7C, 8, 8A, 9, and 

### 10
Based on information contained in your application received March 22, 2012, and subsequent information received to date you are hereby authorized to store, handle, treat, and recycle the following non-hazardous oil and gas wastes:produced water and fracture flow-back water. The Purestream Technology's mobile water treatment process shall include two distinct elements, an Induced Gas Floatation (IGF) module for high TSS removal and hydrocarbon recovery, and an Accelerated Vapor Recompression (AVARA) module for produced water purification/fresh water recovery and brine concentration. This authority is granted in accordance with 16 TAC Chapter 4, SubchapterB, and subjectto the following minimum conditions: 

### I. GENERALPERMITCONDITIONS A. The effective date ofthis permit is June 20, 2012 B
. The authority granted by this permit expires on June 19, 2017 C
. Only non-hazardous oil and gas wastes subjectto thejurisdiction ofthe Railroad Commission of Texas and exempt from RCRA, Subtitle C may be treated. The permittee may store, handle, treat, and process only produced water and fracture flow back water at well sites. D
. The permittee is responsible for: storing and managing ofrecyclable fluids generated by the treatment process and stored on-site until custody of the fluid is either transferred to the original generator ofwaste or it is disposed of in an authorized manner; ensuring the proper storage, management and disposition of any waste products generated by the treatment process until the waste products are disposed ofin an authorized manner; remediating any soil, surface water or ground water affected by spills or leaks resulting from activities associated with the treatment process; and diverting stormwater away from the treatment area and/or collecting and disposing any stormwater that is contaminated as a result of contact with recyclable fluids orwastes generated by the treatment process.

170I NORTH CONGRESS AVE NUE 

# * POST OFFICE BOX 12967 * AUSTIN, TEXAS 78711-2967 

## * PHONE: 512/463-6818

# *FAX 512/463-6780 TDD 8001735-2989 ORTOY 512/463-7284*AN EQUALOPPORTUNITY EMPLOYER* http://www.rrc.state.tx.usPurestream Technology INC Permit No. MR-0012 Page 2of6 E
. Nooil and gas NORM (naturally occurring radioactive material) waste, as defined in 16 TAC 

### § 4.603, or waste from a facility that is licensed by the Texas Department of State Health Services to process oil and gas NORM waste may be treated by this process. F. TheCommission may considerthis permit for administrative renewal upon review. G
. Any request for renewal should be received at least 60 days prior to the permit expiration date. H. This permit is not transferable without the consent of the Commission
. Any request for transfer ofthis permit should be filed with Technical Permitting in Austin at least 60 days before the permittee wishes the transferto take place. 

### I. The permittee shall submit a Semiannual Report containing the applicable information required in Condition IV.A. ofthis permit. The first Semiannual Report shall cover the period beginning on June 

### 20, 2012 and ending December 

### 31, 2012. The reporting periods shall thenceforth be January 

### 1 through June 

### 30 andJuly 

### 1through December

### 31 ofeach year. The Semiannual Report shall be submitted to Technical Permitting in Austin no later than the 

### 31 s tday ofthe month following the end ofeach reporting period, oreach January 

### 31 and each July 

### 31, respectively. J
. Thispermit does not authorize the discharge ofany oil and gas waste from the treatment site, includingcontaminated stormwater. K. Material Safety Data Sheets must be submitted to Technical Permitting in Austin for any previously unrepresented chemical to be used in the treatment ofwaste. Use ofthe chemical is contingent upon Commission approval. 

### L. Any soil, media, orotherdebris contaminated by a spill ofwaste orany other materials at the treatment sites shall be promptly cleaned up and processed through the treatment cycle or disposed ofin an authorized manner. M
. The permittee shall make all records required by this permit available for review and/or copying during normal business hours upon request ofCommission personnel. N
. Any pits to be used in conjunction with this facility not specifically authorized by 16 TAC § 3.8 must be permitted separately by the filing ofForm H-11 and the supporting data. 

### 0. An independent laboratory neither owned nor operated by the permittee must conduct any analysis ofsampling required by this permit. 

### II. SITING A
. When placed at a well site, the mobile watertreatment system and all storage areas associated with the treatment process may not be located: 

### I. Within a I00 year floodplain. 2
. In a streambed.Purestream Technology INC Permit No. MR-0012 Page 3 of6 3. In a sensitive area. B. When placed at a well site, the mobile watertreatment system and all storage areas associated with the treatmentprocess must be located: 

### I. At least I00 feet from any surface water. 2. At least 150 feet from any water wells. 

### III. OPERATION A. The permittee must notifY the surface owner prior to moving the mobile water treatment system onto any oil or gas lease. B. The appropriate District Office must be notified at least 7 days prior to placing the on-sitemobile water treatment system and all associated above-ground storage equipment on an oil and gas lease and provide the name ofthe operatorwho generated the oil and gas waste to be treated, the lease name, the lease number and the well number for the lease on which the treatment unit will be placed. C. A site layout plan must be prepared and submitted to the appropriate District Office at least 7 days prior to placing the on-site-mobile water treatment system on an oil and gas lease. The plan must include the layout ofthe recycling facility showingthe location and information on the design and size ofall receiving, processing, and storage areas and all equipment used in therecyclingprocess. D. The size and identification number of the recycling unit to be used at the site must be submittedtothe appropriate DistrictOffice at least 7 days priorto deployment. E. The permittee must place and keep the on-site mobile water treatment system on an oil and gas lease owned by the operator who generated the oil and gas waste to be treated, and the permittee/unit may only accept and treat produced water and fracture flow-back water generated by the operatoron whose lease the treatment site is located. F. All above-ground storage vessels must be maintained in proper working condition. G. The recyclable product, as defined in 16 TAC Chapter 4, Subchapter B, shall consist ofthe water processed through the mobile watertreatment system, which will subsequently be used forthe makeup offracture fluids. H. Oil and gas waste to be processed in the treatment unit must be stored in above-ground tanks or a pit authorized to store it and pumped into the mobile watertreatment system equipment. 

### I. A maximum volume of25,000 barrels ofoil and gas waste to be treated may be stored at the well site at any given time. J
. Oil and gas waste utilized in the recycling process must be treated in the on-site mobile water treatment system units. K
. The mobile water treatment system may not be kept on one well location for more than one year.Purestream Technology INC PermitNo. MR-0012 Page 4 of6 

### L. The recyclable product must be stored in an above-ground storage tanks or authorized or permitted pits at the well site where it will be re-used in the well completion process. 

### M. A maxi!llum volume of25,000 barrels ofrecyclable product may be stored at the well site at any given time. N. Ifcustody ofthe recyclable product is not given to the original generator ofthe waste within 60 days ofits creation or disposed ofin an authorized manner, the permittee is responsible for its disposal in an authorized manner. 

### 0
. The recyclable product may only be used in the makeup offracturing fluid at the well site at which it was generated or at another well site within the same field owned or leased by the operator who generated the oil and gas waste prior to its treatment. Any excess recyclable productthat is not used in the makeup offracturing fluid must be disposed ofin an**author~zed** manner. P. A maximum volume of 10,000 barrels ofconcentrated brine generated from the mobile water treatment system maybe stored atthe well site at any given time. 

### Q
. The permittee must have personnel onsite at all times when the mobile water treatment system is in operation on an oil orgas lease. Ifpersonnel are not onsite, the treatment system must be in a non-operational state and securedto prevent unauthorized access.



### IV. RECORDKEEPING AND REPORTING REQUIREMENTS A. RECORDKEEPING 

### 1. Records must be kept ofall waste treated for a period ofthree (3) years from the date oftreatment. These records must include the following for each treatment unit and treatment site: a. Date appropriate district office was notified. b. Name ofthe generator ofthe waste to be treated. c. Name ofthe waste hauler, ifapplicable, thattransported wasteto thetreatment site. d. Lease Name, Lease Number or Gas 

### 1.0. Number and Well Number, or API Number where the treatment unit was placed. e. Lease Name, Lease Number or Gas I.D. Number and Well Number, or API Numberwhere the oil and gas waste thatwas treated was generated. f. Lease Number or Gas 

### 1.0. Number and Weil Number, or API Number where the recyclable product was re-used. g. Classification of the water from each lease as frac flow-back water, produced water, ora mixture ofthe two. h. The total dissolved solids, total suspended 'solids, conductivity, pH, calcium, magnesium, barium, strontium, sodium, potassium, iron, manganese, aluminum, ammonia, chloride, sulfate, bromide, and boron concentrations of the frac flowback or produced water used as feedstock to evaluate the treatment system.Purestream Technology INC Pennit No. MR-00 12 Page 5 of6 i
. Volume of produced water and frac flow-back water treated in the treatment process. 

### J. The total dissolved solids, total suspended solids, conductivity, pH, calcium, magnesium, barium, strontium, sodium, potassium, iron, manganese, aluminum, ammonia, chloride, sulfate, bromide, and boron concentrations ofthe recyclable productresulting from thetreatment system. k. Volume ofrecyclable productresulting from thetreatment process. 

### I. Volume ofsolid waste generated from thetreatment process. m. The location at which the solid waste generated by the mobile water treatment system was disposed. n. Volume ofconcentrated brine generated by the mobile watertreatment process. o. The location at which the brine generated by the mobile water treatment system was disposed. . p. Date(s)the oil and gas waste was processedthrough atthe treatment unit. q. Date(s)the recyclable product was re-used.
B. REPORTING 

### I. A copy ofthe records required in Permit Condition No. IV.A
. must be submitted to Technical Permitting in Austin as part of the Semiannual Report required in Condition No. IV.C. ofthis permit. If no waste was stored, handled, treated or reused within a reporting period, a written statement indicating that no waste was stored, handled, treated or re-used must be submitted to Technical Permitting in Austin as part of the Semiannual Report required in Condition No. IV.C
. of this permit. C. SEMI-ANNUAL REPORT



### V.CLOSURE 1. Beginning 

### January 

### 31, 2013 and every six (6) months thereafter, permittee shall submit a Semiannual Report containing applicable information as required m Conditions IV.A. and IV.B ofthis permitforthe previous six (6) month period.

A. All equipment associated with the treatment ofoil and gas waste and the storage ofrecyclable product must be removed from the site within 120 days of the completion ofthe treatment process. B
. The contents ofany vessels or othercontainers, including unused recyclable product, shall be disposed ofin an authorized manner within 120 days ofcompletion oftreatment process. Failure to comply with any provision of this permit shall be cause for modification, suspension or termination of this permit. This permit may be canceled if Technical Permitting determines that the permittee is in violation ofthe conditions ofthis permit or ifthe permittee's operations pursuant to the permit are causingor allowing pollution ofsurface orsubsurface water. ,



# ~J4 Michael Sims, P.E., Manager Environmental Permits and SupportPurestream Technology INC Permit No
. MR-0012 Page 6 of6



### cc: RRC

- SanAntonio/01& 

### 02 Houston/03 Corpus Christi/04 Kilgore/05 

### & 06 Abilene/07B SanAngelo/07C Midland/08 & 

### 08A WichitaFalls/09 Pampa/10 Technical Permitting