TechnologyTrendsinUpstreamProducedWaterManagement

BrentHalldorson,P.Eng.ChiefTechnologyOfficer,FountainQuailEnergyServicesChairman,TexasWaterRecyclingAssociationBoardMember,ProducedWaterSociety

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Agenda

1. In-FieldManagement2. CentralizedTreatment3. Call-OutService(“On-the-Fly”Service)4. Trends

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MAG(ModularAboveGround)TankWinklerCounty,TX

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In-FieldorCentralized?

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In-Field Centralized

ü WaterDEFICIT– needPWaspartofthefracsupply.

ü Easiest,lowestcost,mostflexible.ü Requiresahomefortherecycledwater.ü Goalistocuttransport/handlingcostby

treatingnearsource.× Hardertoregulate(decentralized).

ü WaterSURPLUS– needtogetridofexcessPW.

ü Maybefavoredbyregulators.ü Offersanalternativetodisposal(i.e.:treat

forenvironmentaldischarge).× Highercost,longpermittimes.

CommodityPriceDrops

CannotUseTreatedWater

CommodityPriceRises

NeedMyTreatedWater

In-FieldManagement

• SuccesspredicatedonhavingBOTHa(1)needfordisposal,coupledwith(2)aneedforfracwater.Ifeitherismissingthismodelcollapses.• Lowpricewins.Oftenmodular,ruggedsystems.• ProducedwaterbecomesanASSETandisapartofthesupplyequation.• Typicallyhaveserviceprovidermanagetransferandcontainment.• CaseStudies:• ROVER• NOMAD

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Goals:• Turbidity <10NTU• Keep solidsoutof

pits(removeasdrycake)

• Removenutrient/bacteria,monitorpitbacterialevels

Location:• DelawareNM

TechnologyBasis:• Chemical

flocculation• pHadjustmentto

neutral

Chemistryisadaptedon-the-flyaswaterchanges.24/7operation,hourlylogreports.

2men/shiftforsafety.

Coinatbottomof40,000bblASTfullofcleanbrine.

ROVERCleanBrine

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Results:• BeganAugust

2015• Upto4ROVERs

runningsimultaneously(40,000bpwcapacity)

• Metorexceededtreatmenttargets

Treatedtodate:• 4.2Mbbls and

counting Ø Cleanbrinestoredinpits.Nutrientremovedtoinhibitbacteriagrowth.

Ø Solidsremovedasdrycake.Ø FQESmanagesin-fieldwaterlogisticsto

meetcustomer’sneeds.

ROVERCleanBrine

NOMADDistilledWater

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Goals:• Fracwith

freshwater• AllowexistingFW

pit/transfernetworktobeutilized

Location:• BarnettShale(14

differentsites)

TechnologyBasis:• PatentedMVR

MechanicalVaporRecompressiondesignedforoilfieldoperation

Thesesitesallowedpilotingofmultiplepretreatmentsystems(EC,DAF,RVDF,membranes)– resultwasdevelopmentofROVERsystem.

NOMADDistilledWater

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Results:• Almostadecade

ofcontinuoustreatmentinBarnettShalealone

• PerfecttrackrecordwithRRCand TCEQ

TreatedVolume:• 25M+bbls topure

distilledwater

Ø SubsequentlyNOMADshaveoperatedinthePermian,Delaware,MarcellusandEagleFord.

Above:2-NOMADSitewith3NearbyFracs

Right:2-NOMADSiteinPermianBasin

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CentralizedTreatment

• TruealternativetoSWDs.• Typicallytreatfordischargequality(i.e.:re-useorre-selltreatedwaterifneeded,howeverifnodrillingthencanstillusethismodel).• Hybridmodel:CombinerecycleatSWD.• Oftencreatesvalue-addproducts:NaCl,CaCl2 brine,etc.• Capitalintensive.• CaseStudies:• EurekaStandingStone(nearTowandaPA)• AnteroWV

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CentralizedTreatment

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EurekaResourcesinWilliamsportPAandTowandaPAarewellestablishedintheMarcellusShale.

Ø Centralizedtreatmentinvolveslargecapitalinvestmentandalong-termapproach(i.e.:AnteroZLDSystem- $275Mfacility+gathering+landfill…).

Ø Largercentralizedfacilitiesareeasierforregulatorstomonitorthandecentralized“infield”systems.

EurekaStandingStoneCrystallizer–makeshighqualityfoodgradesalt.

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Call-OutService

• Anewtrendbasedonlow-pricecommoditypricingandmarketuncertainty.• Typicalscope:singlefrac,pittreatment.• Shortdeployment:1frac,remediate1pit,etc.• Quickandnimble(deploywithsingletruck).• Examples:• SCOUT• MAVREX(“On-the-Fly”Service)

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“Someday,andthatdaymaynevercome,I’llcalluponyoutodoaserviceforme…”

SCOUTCleanBrine

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Ø Highvolume(10,000bpd)/smallfootprint.Ø Fullycontainerizedandmobile.Ø Fullyautomatedandfailsafe.

§ UponsystemalarmFQESoperatorwillbesentnotification.

Ø Designedforunmannedoperationinharshenvironments.

Ø Nobagfiltersormessycleanup.Wetsludgeisdirectedtoafractankfor(1)thickening/dewatering,or(2)disposal.

HVACUnit,PowerJB(connecttogenset orlinepower)

FeedPump

ControlPanel

Tools/Parts

RemovableCover

SCOUTdesignedtobetowedbya3/4tonorlargerpickuptruck.

MAVREXDisinfection

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ØDualtreatment:§ On-the-fly,plus…§ Workingtanksrecirculated,monitoredandtreated

ØPatentedsystemadjustsdosagereal-timeØAccommodateshighflowrates(140bpm)ØAutomatedproducedwaterblendingØThreeprecursorsmixedwithvacuumeductorØMobile,rigup/downinonedayØFractanklevelmonitoringincludedØTabletsprovidedtowatertransferandfraccrew:

§ Fractanklevels§ Waterflowrates§ Waterqualityintanks:pH,Cl02,chloride,etc.

ØMeetsEPAstandardsas“green”biocide

Above:Appalachia2017MAVREXOperationwith

redundantgenerator

MAVREXDisinfection

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❶ ❷

❺

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Howitworks:Ø TheMAVREXtrailerisawatertreatment

plantinsideamobiletrailerØ Waterenterstheunit(1) througheither

two10”lines(fresh)orone6”line(produced)intothemanifoldroom(2)

Ø Waterqualityischeckedandaportionofthewater(slipstream)issenttotheClO2generatorroom (3) whereClO2 isadded,then…

Ø Checkedinstage(4),andreturnedtothemanifoldroombeforebeing…Discharged(5) touptoeighttanks.Thereareadditional2”suctionanddischargelinestoeachtanktomonitorresidualClO2 andensurewaterqualityKPIsaremaintained

Goals:• SafelyuseClO2 for

on-the-flybacteriakill

• Stable pHwithguaranteedresidual

Location:• Marcellus/Utica

2017ResultstoDate:• 53wells• 2,786stages• 13,063,000bbls• ZEROsafety

incidents

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Trends

A. Thereisno“right”model.Weneedablendofsolutions.B. Combiningrecycle+disposal.C. Logisticsandvolatilecommoditypricesremaindominant

challenges.D. Bye-byeblackboxes.Realproventechnologywins.E. Smallerlow-cost(oftenun-manned)solutions.F. Long-termthinkinglendstocentralizedtreatment.

Short-termneedsdrivein-field/modulartreatment.G. FQESbelievesinbuildinglong-termrelationshipsandworking

withE+Pstodevelopthesolutionstheyneed.

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