Storage: Pits Vs. Tanks 

October 30, 2013 

Scott K. Mason 

Lead – Environmental Programs 
Examining Cost – Cheaper & Safer Option? 

What’s The Plan? 

• Are you going to reuse the water? 

• What will be in the impoundment or tank? 

– Freshwater 

– Produced Water 

– Flowback

• Temporary or permanent installation? 

• What are the regulatory requirements? 

• What are you drilling? 

– Resource Play 

– Exploratory 

– Wildcat 

2 
What are the options? 

Impoundment 

• Pros 

– Often preferred by regulators when receiving 

flowback or produced water 

– Better opportunities for recycling 

– Is a cheaper permanent solution 

– Centralized hydraulic fracturing 

– Provides opportunity to pull water from your 

cheapest option (not limited by a rental rate) 

• Cons 

– High construction and reclamation costs 

– Takes time to construct and reclaim 

– Potentially high maintenance costs 

– Wildlife 

– Liner disposal 

– Not portable 

– Minimal biocide treatment in the event of a release 

3 
What are the options? 

Frac Tanks 

• Pros 

– Mobile 

– Own or rent 

– Can be provided with secondary containment 

– Equates to regulatory preference 

– Flowback can go right back to frac tanks 

– Easy to identify and remediate leaks 

– Can get insulated tanks ($$$) 

– Generally cheaper to heat 

• Cons 

– Large footprint 

– Manifold rental and set-up costs are considerable 

– Increased truck traffic 

– Increased trucking cost 

– Increased road/pad maintenance (degradation, dust, track out) 

4 
What are the options? 

Frac Ponds 

• Pros 

– Mobile 

– Smaller footprint 

– Quick set up and breakdown 

– Less truck traffic 

– Cost effective 

• Cons 

– Catastrophic failure can cause sediment transport (very rare) 

– Regulatory concerns with storing produced or flowback water 

– Heating costs 

– Minimal biocide treatment in the event of a release 

5 
How Much Will It Cost? 

6 

One Million Dollars? 
Cost Comparison Scenario 

Single Well Pad 

1. 60,000 Bbls Freshwater Required. 

2. No re-use is planned. 

3. Single-well pad. 

4. 4 days to perform hydraulic fracturing. 

4 Well Pad

1. 60,000 Bbls Freshwater Required. 

2. Water is not reused. 

3. 4 days to perform each frac. 

7 
Cost Comparison Chart – Single Well 

$231,640 

$24,000 $19,500 

$87,300 

$18,000 

$93,000 

$14,000 

$11,000 

$0 

$50,000 

$100,000 

$150,000 

$200,000 

$250,000 

$300,000 

$350,000 

Impoundment Frac Tanks Frac Ponds 

Set Up/Const. Rental Rates Demob./Reclaim 

Total $48,500 

Total $125,300 

8 

Insert text here 

Total $324,640 
Cost Comparison Chart – 4 Well Pad 

(Cost Per Well)

$78,596 

$6,000 $4,875 

$50,925 

$13,800 

$23,250 

$14,000 

$11,000 

$0 

$20,000 

$40,000 

$60,000 

$80,000 

$100,000 

$120,000 

Impoundment Frac Tanks Frac Ponds 

Set Up/Const. Rental Rates Demob./Reclaim 

Total $29,675 

Total $70,925 

9 

Total $101,846 
What can reduce costs? 

• Perfect weather 

• Negotiate better rates 

• Own your own equipment (maybe) 

• Multi-well pads 

• Centralized operations 

• Re-using and recycling water 

• Build-up of the play 

• Tie directly into water disposal facility 

• Covering frac ponds in the winter can reduce heating costs 

10 
What can increase costs? 

Impoundments 

• Wildlife in the impoundment 

• Penalty + $30k 8’ fence 

• Netting 

• Leaking liner 

• Stormwater maintenance and water hauling 

• What if you don’t drill or complete the well? 

• Managing bacteria treatment 

Frac Tanks 

• Delays 

• Availability 

• More road maintenance 

• Moving from PW or FB to FW requires cleaning 

• > Footprint = > Surface Damages $$$ 

Frac Ponds 

• Delays 

• Availability 

• Netting 

11 
Questions?