# Permian(Unconven-onal(Water(Management:( Collabora-on(to(Develop(Full(Cycle(Solu-ons( Presented(by(Kris-e(S.(McLin ConocoPhillips(Company

October(7,(2015(

### ConocoPhillips’(Global(Water(Sustainability(Posi>on(

October(7,(2015( 2( h?p://www.conocophillips.com/sustainableEdevelopment/ourEapproach/livingEbyEourEprinciples/posi>ons/Pages/waterEsustainability.aspx(

### Introduc>on( • ConocoPhillips(is(commi?ed(to(crea>ng(a(responsible(water( management(plan(in(the(Delaware(Basin(of(West(Texas( 

### • Limited(surface(and(groundwater(resources(available(for(use( in(large(mul>E frac (s>mula>ons( 

### • Oil(and(gas(wells(in(the(area(produce(significant(amounts(of( water(that(tradi>onally(require(disposal(in(injec>on(wells( 

### • Tremendous(opportunity(available(to(reuse(produced(water( for(comple>ons( 

### • Developing(a(holis>c(water(management(strategy(requires( an(integrated(interdisciplinary(effort(to(address(the(full(life( cycle(of(water(
October(7,(2015( 3(October(7,(2015(

4( 

### Loca>on(

### Delaware(Basin( • The(Permian(Unconven>onal(asset(is(accessing(a(stacked(play( with(mul>ple(produc>ve(intervals( 

### • Water(supply,(transfer,(and(disposal(can(represent(an( average(of(20%(of(well(comple>on(costs( 

### • Water(to(oil(ra>os(are(typically(3:1(and(above(for(all( forma>ons(accessed(for(produc>on,(so(produced(water( disposal(cost(can(represent(over(25%(of(liYing(costs( 

### • During(explora>on(and(early(development,(minimal( infrastructure(is(in(place(to(support(water(demand(for( comple>ons(and(produced(water(disposal( 

### • Produced(water(reuse(in(comple>ons(could(mi>gate(both( water(supply(and(produced(water(disposal(limita>ons( October(7,(2015( 5(

### Holis>c(Water(Management( All(water(management(solu>ons(must(meet(the(following( criteria:( 

### • All(solu>ons(must(be(safe,(environmentally(responsible,( sustainable,(and(economic( 

### • All(water(required(for(hydraulic(fracturing(opera>ons( delivered(in(a(>mely(manner(to(meet(the(development( schedule( 

### • Minimize(trucking/hauling(of(water(whenever(appropriate( 

### • Reuse(produced(water(for(s>mula>on(whenever( appropriate( 

### • Reuse(or(dispose(of(all(produced(water(such(that( produc>on(targets(can(be(achieved(
October(7,(2015( 6(

### Decision(Analysis:(Integrated(Mul>disciplinary(Team( • Completions and Drilling Engineering 

### • Reservoir Engineering 

### • Development Engineering 

### • Geoscience 

### • Technology 

### • Strategic Sourcing, Supply Chain 

### • Operations and Production 

### • HSE 

### • Land, Surface, Legal, Regulatory

October(7,(2015( 7( Source(
Store( Transfer( Reuse( Dispose( How do we add maximum value to the Delaware Basin development plans

by managing the water cycle to safely and reliably

provide water sourcing, transfer, storage, reuse, and disposal?

### Decision(Analysis:(Process(

October(7,(2015( 8(

### Water(Management(Strategy(as(Con>nuum( 

### • Ini>ally,(the(team(had(set(out(to(select(one(strategy( for(implementa>on(that(would(fit(all(required( criteria( 

### • As(the(team(detailed(and(evaluated(the(strategies,(it( became(apparent(that(water(management(strategy( was(a(con>nuum(from(shortEterm(into(the(full(field( development(plan( 

### • With(this(shiY(in(thinking,(the(team(was(able(to( enact(shortEterm(strategy(that(could(immediately( improve(costs(without(immediately(and(extensively( inves>ng(in(infrastructure( October(7,(2015( 9(

### Produced(Water(Reuse:(Water(Treatment(Goals( 

### • The(produced(water(must(not(pose(a(safety(risk(to( opera>onal(personnel( 

### • The(produced(water(must(have(an(inexpensive,(fit( for(purpose(water(treatment(plan( 

### • The(produced(water(must(perform(comparably(to( the(fresh(water(that(was(used(before(in(fracture( s>mula>ons( 

### • The(produced(water(must(not(cause(any(long(term( produc>on(issues(or(“life(of(the(well”(problems(

October(7,(2015( 10(

### Produced(Water(Reuse:(Site(Setup(

• Water(treatment(on( well(pad( 

### • Secondary( containment(under( frac (tanks(and( treatment( equipment( 

### • No(interference( with(onsite( comple>on( ac>vi>es(

October(7,(2015( 11(

### Produced(Water(Reuse:(Treatment(
• The(basic(equa>on(for(reac>on(of(iron’s(reac>on(with(hydrogen(peroxide(is(shown( below:(

• The(product((ferric(hydroxide)(is(precipitated(out(at(mildly(basic(condi>ons( • The(addi>on(of(H2O2(to(the(iron(ini>ally(lowers(the(pH(as(OHE(is(consumed( • Adding(caus>c(can(help(the(iron(colloid(and(be(filtered(

October(7,(2015( 12(

### Produced(Water(Reuse:(Treatment( 

### • As(the(pH(increases,(the(Fe 2+ 

### (ferrous)(oxidizes(to(Fe 3+ 

### (ferric))( 

### • Oxidizers(make(this(reac>on( instantaneous(( 

### • Mul>ple(chemicals(can(be(used( for(iron(removal,(but(H 2 

### O 2 

### (is( easily(available(and(very( effec>ve(

October(7,(2015( 13( Stumm %and%Morgan,%1996%

### Produced(Water(Reuse:(Treatment(

October(7,(2015( 14(

### Results(and(Conclusions( • Collabora>ve(development(of(full(cycle(water(management( solu>ons(has(driven(immediate(and(near(term(cost( reduc>on,(including(50%(reduc>on(in(disposal(cost(with( strategy(implementa>on( 

### • Line(of(sight(to(favorable(long(term(economics,(sustainability,( and(resource(security(for(Delaware(Basin(assets( 

### • Strategy(development(should(be(shared(amongst(various( resources(and(disciplines(to(address(all(stakeholder(concerns( 

### • Strong(communica>on(and(collabora>on(are(required(to( ensure(short(term(strategy(decisions(will(not(impair(long( term(strategic(goals(
October(7,(2015( 15(

### Acknowledgements/Thank(You/Ques>ons(
• As(referenced(mul>ple(>mes(in(this(paper,(this(work(is(the(collabora>on(of(asset( management,(team(leads,(and(dedicated(individual(contributors.(The(authors(would( like(to(thank(the(en>re(Midcon>nent(Business(Unit(and(Lower(48(water( management(team(for(their(contribu>ons(to(this(study.(Addi>onally,(the(authors( would(like(to(thank(the(asset(management(and(ConocoPhillips(for(allowing(us(to( publish(this(paper.(

October(7,(2015( 16(