Water Management Regulatory Updates and Strategies

May 28, 2014 Jaret Wirtz

Executive Director

Western Area Water Supply Authority 

## North Dakota Regulatory 

## Update

## Bakken /Three

- Forks Formation Extent

### Name that city?

## Total Producing Wells

Water Needs: Fracking: ± 3 million gallons/well

Maintenance: 1 gpm ± 25 years Fracking: 180 Billion Gallons

Maintenance: 790 Billion Gallons

Value of Water: Fracking: $3.6 Billion Maintenance: $15.8 Billion

## Communities and Region Served

Communities such as

Williston, Watford City, Ray, Tioga, Stanley, Ross,

Wildrose , Crosby,

and others benefit

from WAWSP

## North Dakota Oil Industry Jobs

### Need for the Project

– Population Growth

## WAWSP By the Numbers

2010 Numbers:

• Original plan accounted for 400 users requests

2012 Numbers:

• 1,200 rural water user hook

- up requests

• 10,815 residential lot service requests

• 612 commercial lot service requests

• 4,450 crew camp/RV park service requests

Total of 17,077 user/service requests

# Project Funds

- 2011 ND Legislature Appropriated $110

Million in Loans



### - 2013 ND Legislature Appropriated $119

Million in Loans and Grants

- 2015 ND Legislative Session Seeking 

### Approximately $120 Million

## Oil Companies Play a Critical Role

• Industrial water



### sales are projected to pay at

least 80% of 

### original price tag

• Success of public 

### water system and

the communities it serves dependent

on sales

# Public and Private Partnership• Oil companies can hook up directly to WAWSP pipelines

• 10 depot locations by end of 2014

• Cold and hot

water lanes 

## Offering Solutions to Oil Companies

## WAWSP By the Numbers

2012 Numbers (from ND State Water Commission):

• Statewide Oil & Gas Demand: 6.3 Billion Gallons

(151.2 Million Barrels)

2013 Numbers:

• 1.2 Billion Gallons Sold (28.6 Million Barrels)

2014 Projection:

• 1.6 Billion Gallons (38.5 Million Barrels)

WAWSA PERMIT: 13.86 Billion Gallons/Year

(330,000,000 Barrels/Year)

## Gross Industrial Revenue

24 Month Total: $41.5 Million

### Industrial Water Permits

Sources

- Public (Cities, Regional Water Systems)

- Private (Landowners, Private Partnerships)

- Surface Water (Lakes, Creeks, Rivers, Sloughs, etc )

- Ground Water (Aquifers)

Types of Permits

- Conditional

- Perfected

- Temporary 

## Permitting of Water

## Water Depots with WAWS highlighted

Minot

Medora Bismarck

## Water Use in the Bakken

325,851 gallons = 1 AcFt Incomplete Frack Data

## Water Fracturing in the Bakken

325,851 gallons = 1 AcFt

## Depot Construction Examples

WAWS Watford Depot (Hot or Cold water, SCADA, water storage, multiple fill points)

Timber Creek Depot (Hot or Cold water,
SCADA, water storage, multiple fill points )

## Depot Construction Examples

Athens Depot (Cold raw water , SCADA,

four fill points ) SWP/Dodge Depot (Cold raw water

, telemetry, water storage, five fill points ) Williston Depot (Cold potable water

, SCADA, water storage, two fill points )

## Depot Construction Examples

Surface Water Depot (Cold raw

water

, note pad, single fill point)

Surface Water Depot (Cold raw water

, note pad, single fill point)

### State Engineer Water Use Monitoring.

Statute requires annual reporting , which has been
enhanced by:

1. Increased frequency of meter readings by staff

2. Develop monthly meter reports for permit holder

3. Implemented a telemetry pilot study 

## Water Use & Telemetry History

## Telemetry : Data : SOAP : Database



## The SOAP connection

Telemetry Hardware becomes “Transparent ” and data is “pushed” into the agency database.

• FlowPoint Systems

• Information Data Technologies

• McCrometer

• Preferred Controls

• Well Head Automation

• Savage Industries• Exceeding permit allocation triggers S.E. action

• Currently, actions are fines based on excess water sales

Requested sales receipts from 14 depots in 2012.

Consent agreements, not court action

Water overage subtracted from future allocation

• Overage not a wide

- spread problem, ~ % 2 of total Water Depot use is represented in the overage of 2012 

## Why do we have rate information ? Depot Water Rates• State Engineer does not establish rates.

• What we have learned:

Rates are dynamic: ~ $0.50 to $1.25 per barrel of water, or $12 to $30 per 1,000 gallons.

Vary from location to location (Proximity & access)

Heated or not heated

Seasonal variability

Delivery method : Pipe line or truck

Source: G.W. & S.W. ( Raw / Treated )

Hydraulic fracturing formulas vary 

## Variability of Rates

## Observations

• Water Depot Use :

Rapid increase from 2010

- 2012 leveling off in 2013

.
Use can be driven by external factors ( rigs

– roads ]

• Real

- Time Water Use ( Telemetry

– SOAP ):

SOAP service completed within existing budgets.

Agency IT staff’s knowledge of workflow key factor.

Queries from other States on SOAP implementation.

• Rates vary from about $0.50 to $1.25 per barrel

### For more information, please contact:

Jaret Wirtz, Executive Director

701

- 580

- 3164


### Jaret.Wirtz@WAWSP.com

www.WAWSP.com