Produced Water Challenges And Beneficial Use. September 13 th, 2018

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1 Produced Water Challenges And Beneficial Use September 13 th,

2 WYOMING OPERATIONS OVERVIEW Well Count - 2, ,000 Gross BOEPD 2.3 MMBWPD Produced 1.8 MMBWPD Reinjected 500 MBWPD Surface Discharged 2

3 PRODUCED WATER QUALITY What is Surface Discharge? The disposal of produced water on the surface; Drainages, Creeks, Lakes, etc. And yes it is completely legal! WYDEQ Effluent Water Quality Standards vs Merit Sample Parameter Limit Merit ph, s.u Oil & Grease, mg/l 10 ND Sulfate, mg/l 3,000 2,230 TDS, mg/l 5,000 4,370 SULFIDE = H2S 3

4 OREGON BASIN - OVERVIEW Discovered in Wells 7,300 Gross BOEPD 660 MBWPD Produced 627 MBWPD Reinjected 33 MBWPD Surface Discharged 4

5 SPRING CREEK - OVERVIEW Discovered in Wells 2,800 Gross BOEPD 320 MBWPD Produced 320 MBWPD Reinjected NO Surface Discharge 5

6 WATERFLOOD PROCESS FLOW DIAGRAM Gas to Plant / Sales Surface Discharge NPDES SYSTEM Producing Wells Central Battery Oil to Sales H2O Injection 6

7 PRODUCED WATER CHALLENGES - WELLHEAD OIL PRODUCTION = DECLINE STABLE WATER PRODUCTION = OPERATING COSTS = $$$$$$ Producing Wells TO BATTERY INLET RESERVOIR PRESSURE Oil Production may stabilize with the larger ESP BUT the increase in LOE shortens the wells economic life. 7

8 PRODUCED WATER CHALLENGES - BATTERY RETENTION TIME = STABLE DECREASES STABALIZED CAPEX = INCREASES INLET VOLUME FWKO WATER TANK WATER TANK WATER TANK Retention times may stabilize BUT for how long? FWKO WATER TANK 8

9 BENEFICIAL USE - AGRICULTURAL Produced Water that meets WYDEQ Water Quality Standards provides Beneficial Use that is critically important to many agricultural operations in the arid lands of the State of Wyoming. Irrigation near Meeteetse, WY Surface Discharge approved Produced Water offers a consistent source of water for any downstream user. Whether keeping drainages or irrigation reservoirs full, water is always available. Sugar Beet Harvesting Near Powell, WY 9

10 BENEFICIAL USE - LIVESTOCK Based on decades of Beneficial Use, the WYDEQ Effluent Water Quality Standards are very well suited for the protection of livestock. These limits preserve beneficial plant and animal use. Horses at Flitner Ranch Produced Water Discharge provides a dependable source of water for livestock and wildlife. It has created wetlands that provide habitat for plants, insects, birds and mammals. Cattle Grazing East of Spring Creek 10

11 BENEFICIAL USE - TODAY Approximately 2,876 acres of enhanced habitat are supported by Merit Energy s current produced water discharge volumes in the North Bighorn Basin. These habitats are as follows: Riparian Habitat 69.3 miles of perennial streams 1,552 acres of riparian vegetation Oregon Basin Pronghorn Lacustrine Habitat 586 acres of lakes and ponds Wetland Habitat 738 acres of wetlands and wet meadows Our landowners want MORE Wyoming needs MORE We have to discharge MORE OB Surface Discharge McCullough Peaks Wild Horses 11

12 SULFIDE REDUCTION TECHNOLOGIES We reviewed 31 specific sulfide reduction technologies and ranked them based on: Efficacy, Safety, Cost & Environmental Persistence Hazardous Materials Management / Waste 5. Ion Exchange: Pros: Removes H2S & Reduces TDS Cons: High CAPEX/OPEX / Extensive O&M 4. Fixed Bed Sorbents: Pros: Removes H2S w/ Non-Hazardous Material Cons: Solid Waste Handling / Extensive O&M 3. Aeration: Pros: Removes H2S Cons: High CAPEX/OPEX / Extensive O&M 2. ph Adjustment: Pros: Increases ph to keep H2S from generating Cons: Increases TDS / On-Site Chemical Storage 1. Oxidation Specifically, SuperOxygenation: Pros: Converts Total Sulfide / Low OPEX Cons: High CAPEX 12

13 SUPEROXYGENATION HOW IT WORKS Dissolved Oxygen + Dissolved Sulfide = Biochemical Oxidation Dissolved Sulfides are metabolized in minutes Dissolved Sulfides are oxidized to Sulfur and Sulfate O2 Vessel O2 Generator Produced Water In PUMP Treated Water Out This is a well documented reaction and is included in the Water Environment Federation Manual of Practice 25, Control of Odors and Emissions from Wastewater Treatment Plants. 13

14 FWKO 12 X BBL FWKO 12 X BBL FWKO 12 X BBL OREGON BASIN BATTERY 1 NORTH FIELD PRODUCTION INLET 3 PHASE SEPARATION SURFACE DISCHARGE PILOT TEST TIE-IN POINT 3,000 BBL WATER TANK 3,000 BBL WATER TANK PIT #1 86 DIA 6,207 BBLS CAP PRODUCED WATER WATER INJECTION PUMPS PIT #2 63 X 120 X 6 8,079 BBLS GAS TO PLANT FOR PROCESSING OIL TO SALES (B2N) APPROX. 140K BWPD 3K BWPD BIOLOGICAL ATTENUATION (CURRENT NPDES PERMITTED LIMIT) 14

15 MEC PILOT TEST BATTERY 1 NORTH O2 Generator 25,000 BWPD CIRCULATION 500 BBL TANK O2 Vessel PUMP 3,000 BWPD 3,000 BBL WATER TANK 3,000 BBL WATER TANK PIT #1 86 DIA 6,207 BBLS CAP 15

16 TOTAL SULFIDE (PPM) MEC PILOT TEST RESULTS 250 Sulfide Oxidation w/ Time Pilot Test 09:00 on 9/19/17 0 Pit #1 Inlet Pit #1 Outlet 16

17 THANK YOU! 17