A novel thermal separation process based on membrane distillation ready to treat produced water

Transcription

1 May 12-14, 2013 A novel thermal separation process based on membrane distillation ready to treat produced water Banff 13. May 2013 memsys clearwater Pte. Ltd., Singapore - memsys TEC AG, Grafing, Germany - contact@memsys.eu - Tel.:

2 Team Board Götz Lange Co-founder & CEO, 15 years in water sector Wolfgang Heinzl Co-founder & Inventor, 25 y experience in thermal separation tech Florian Bollen Seed Investor, Director Investment office of the Sorensen family. Strategic shareholders Team 15 employees mainly engineers Milestones 2008 Founded in Germany 2009 Start of production 2010 Singapore principal office set-up Skagen takes strategic shareholding First exhibition at SIWW 2011 Solar Desalination projects in Singapore, Australia and Spain Membrane research project, NTU Singapore 2012 Aquaver global license GE global license Rochem India license Grünbeck license (MOU) 50 m³ /day Senoko power plant Air-con research with NTU Industrial effluent treatment Alcohol separation 2

3 Hot Feed Vapor passing Cooled Permeate Membrane Distillation (MD) - In the 1960 s GORE developed a hydrophobic membrane and describes MD in a patent. S T A - 100% theoretical solute rejection of different ions, large molecules, micro-particles, microorganisms and most nonvolatiles product is of extreme high quality T - Modest operating temperatures (50-80 C) U S - Operation at high salt concentrations - not limited by osmotic pressure Q U - Dramatically smaller vapor space required than that of conventional distillation O - Much lower operating pressure than pressure-driven membrane separation processes such as RO and NF Evaporator chanel Membrane Condenser chanel - MD membranes are less prone to fouling and scaling no need for chemicals memsys is first getting the right thermodynamics and production methods to MD! 3

4 Principle of memsys V-MEMD process Ultra-thin PP-foils ensures high heat transfer. Hydrophobic membranes allow steam to pass only! Latent heat is transported with steam. While steam condenses released energy can heat up next stage. Applied vacuum allows high fluxes and evaporation on different temperature levels. V-MEMD = Vacuum Multi Effect Membrane Distillation 4

5 memsys Process Flow! Steam Raiser Effect 1 Effect X Condenser Seawater Brine Membrane Foil Membrane Foil Membrane Foil Thermal Heat Cooling 80 o C 475mB 70 o C 315mB 60 o C 200mB 30 o C Vacuum Distillate

6 Temperature Difference Dependency of Flux Temperature difference per stage [ K] Larger temperature differences allow a larger total heat transfer over a stage (= a thermodynamic effect). A heat transfer coefficient (k-value) is used to describe the possible heat flow per membrane area and one Kelvin temperature difference. In memsys modules, flux means produced distillate mass per hour and square meter membrane area, what is direct proportional to the transferred heat flow at average temperature difference per stage. Dependencies are shown on following diagram (evaporation enthalpy of water at 50 C = 2382 kj/kg). 6

7 One Basic Frame all Functionalities Water Piping - Heating - Cooling - Injection - Brine Disposal Steam or Air Ducting Membranes or Foils - Steam Separation - Energy Recycling Degassing Collection of Product 7

8 memsys: multi effect technology going live! Transfer Process Engineering to Industrial Design! 8

9 Modular Concept 9

10 Advantages of memsys process Raw materials - usage of polymers (PP, PTFE) only - materials used are cost effective and corrosion resistant Engineering Energy - first modular thermal system allowing wide scalability - small footprint - robust process - waste heat, solar or geothermal heat can supply up to 90% of the energy needed - very low mechanical and thermal energy consumption Environment Cost - very high product quality (1-10µS conductivity) - noncritical against raw water quality, i.e. high salinity. - MD membranes are less prone to fouling and scaling. Less need for environmentally harmful chemical pretreatment - low CAPEX due to non steel raw material and scalability - low OPEX due to limited pretreatment, low maintenance and use of waste heat 10

11 Highly Automated Production Processes 11

12 Application development (5y plan)

13 Complexity* of Treatment Technology Matrix high RO - Reverse Osmosis MED - Multi-Effect Distillation MSF - Multi Stage Flash VC - Vapor Compression RO MED MSF *Complexity arises by high TDS, high organic content, aggressive media etc. low low Cost of Treatment high The memsys process provides an alternative to traditional metal based evaporators and enables brine management a bridging technology towards crystallisation.

14 Field test unit with GE MVC combination with MD allows: - Operation at locations without sufficient cold side - Operation without waste heat sources - Evaporation is driven by electrical energy (efficiency depending on MD number of effects) 14

15 High TDS testing (65 days) Test conditions: Heating temperature (inlet): 65 C Start: March 8th, 2013 Cooling temperature (inlet): 40 C Feed Flow: 60l/h Interval description Duration Conductivity Flux Feed [ms/cm] Distillate [µs/cm] Distillate [l/(m²h)] Distillate reference test 1h 0-4,61 15 wt% salt 3 days 190 1,2 3,36 18,5 wt% salt 7 days 218 2,0 2,62 20 wt% salt 1 day 228 1,3 2,38 21wt% salt 2 days 234 1,8 2,38 22wt% salt 1 day 238 2,0 2,11 Flushing: operation with distillate 4 h 0-4,34 20 wt% salt 5.5 days 227 1,1 2,38 Feed oversaturation 0.5 days ,0-20wt% salt 12 days 225 2,1 2,38 Flushing/Config-test/Maintenance 0.5 day Feed concentration -> 225mS/cm 1.5 day increasing 2,1-20wt% salt 1 day 227 1,2 2,38 Membrane recovery test 20h - 15wt% salt (after recovery test) 188 1,2-15wt% salt 3 days 187 1,0 3,09 18,5wt% salt 10 days 216 2,0 2,62 Recovery optimization tests 8 days wt% salt (P7_1=190mbar, P7_3= 105mbar) 7 days 194 1,7 3,00 15

16 MD operation at oversaturated feed - Oversaturation leads to wetting of the membrane - In Situ membrane hydrophobicity recovery proved - Leakages do not effect distillate quality in memsys process 16

17 Thank you! let s ride the wave 17

18 Molasse treatment 18

19 May 12-14, 2013 Review of 20 Years of Performance Data Horizontal Falling Film MVC Produced Water Recovery CSS Installation Emlichem, Germany Technology Transfer Opportunity for SAGD Yaniv Schmidt IDE Technologies Ltd., Kadima, Israel

20 IDE Technologies Ltd Overview Headquartered in Israel with fully owned subsidiaries in China, India and the U.S. Owned by two large holding companies: ICL Ltd - 50% (partially owned by Potash Corp) Delek Group Ltd - 50% World leader in thermal and membrane water treatment solutions Track record of excellence in delivery of small & large scale projects Winner of: Desalination Company of the Year 2011 GWI Award 2

21 Case Study: Wintershall, Germany Wintershall BASF Group Emlichheim Oil Field Heavy oil production site in northern Germany (viscosity 175mPas*s) Capacity: 1 million barrels a year SOR ~4 (steam to oil ratio) The reservoir was developed in the 1940 s Steam injection started in the 1980 s MVC Evaporators installed in the 1990 s 3

22 Case Study: Wintershall, Germany Water Cycle Oil & Water Separation Water Treatment FWKO Buffer Tank 4

23 Case Study: Wintershall, Germany Produced Water Treatment Enhanced Oil Recovery (by steam) Produced water is generated Free Water Knockout O&G concentration is reduced from 1000ppm to 50ppm Walnut Shell Filters O&G concentration is reduced from 50ppm to <4ppm Acidic Air Stripping Removal of H 2 S, CO 2 and volatile organics at ph 4.0 Activated Carbon Adsorption of organics and oxidizers MVC (Mechanical Vapor Compression) Produced water evaporation generates distilled water Once Through Steam Generator (OTSG) High pressure steam (120bar, 310 C) is generated for injection 5

24 Case Study: Wintershall, Germany MVC (Mechanical Vapor Compression) Evaporators May 12-14, 2013 Installed & commissioned in MVC units with a distillation capacity of 600m 3 /day (3,600 bbl/day) each In continuous operation for the last 20 years Availability of 98% (Shutdown once in 2 years) Distilled water is fed directly to 3 OTSG with a capacity of 22tons/hr each 6

25 Case Study: Wintershall, Germany Horizontal Falling Film MVC Evaporator May 12-14, 2013 Brine Feed Distillate

26 Case Study: Wintershall, Germany Horizontal MVC Evaporator - Key Components Wetting System Heat Transfer Tubes 8 Evaporator Vessel

27 Case Study: Wintershall, Germany Horizontal MVC Evaporator - Water Spraying System Spraying Nozzles Reliable redundant spraying nozzle design 9

28 Case Study: Wintershall, Germany Horizontal MVC Evaporator - Horizontal Falling Film Water Flow Vapor Passage 10

29 11 Case Study: Wintershall, Germany Technical Data Process Design 2 MVC units operate in parallel, distillation capacity of 600m 3 /day each Operation temperature 65 C-70 C Feed Salinity: 7%-8% ; Brine Salinity 12%-13% (increased during the years) Specific power consumption: kwhr/m 3 distilled Parameter Feed Brine Flow 83 m3/hr 58 m3/hr Salinity 7%-8% TDS 12%-13% TDS ph Fe 2+ 5 ppm Up to 8 ppm SO ppm ppm Ca 2+ 2,000ppm 3,000ppm Ba ppm 32 ppm HCO ppm 350 ppm H 2 S Up to 100 ppm - Oil ppm < 5ppm SiO ppm ppm

30 Case Study: Wintershall, Germany Technical Data Mechanical Prefabricated and shop tested single effect system Titanium tubes and Duplex SS vessel (never refurbished) Tubes are connected with grommets to tube sheet Component Material Selection Vessel shell Duplex SS 2205 Heat transfer tubes Ti gr. 2 Feed and Brine pumps Duplex SS Distillate pump 316L SS Pipework Fiberglass - GRP 12

31 Case Study: Wintershall, Germany Technical Data Maintenance The system is shut down for 1 week every 2 years Mineral Scale: Barium Sulfate (BaSO 4 ) scale deposits the tubes were cleaned with warm (50 C) caustic soda Ferrous Sulfide (FeS) scaling on the Titanium tubes: Removed by acid cleaning with 4%-5% Nitric Acid (H 2 NO 3 ) A few years ago it was found that the FeS is generated by Sulfate reduction bacteria the use of biocides was successfully applied to prevent scaling Foaming: During operation and biocides treatment there may be foaming in the system a suitable antifoam is sprayed to eliminate foaming 13

32 14 IDE s Next Generation MVC Evaporator Suited For SAGD Water Treatment

33 SAGD Produced Water Treatment Challenge SAGD Steam Assisted Gravity Drainage Produced water treatment requirements Oil removal 95% Recovery High availability and reliability High distillate quality Treated produced water (distillate) is fed back into the boiler 15

34 SAGD Water Treatment Process: Evaporators IDE s system 16

35 SAGD Water Treatment Process: Warm Lime Softening Oil / Water Separation Warm Lime Softening Produced Water SAC / WAC Ion Exc. Steam For Injection Steam OTSG Distilled Water Evaporation of Steam Generator Blow Down Blow Down Increases overall water recovery High purity distillate is fed to boilers Reduces disposal costs Can be retrofitted into exciting facility (ERCB 51) MVC Evaporator Blow Down Disposal IDE s system 17

36 IDE s Produced Water Modular MVC Evaporator Modular skid mounted design Fully assembled and tested in IDE s shop Easy access to process equipment Minimum on-site erection required 18

37 CIP (Clean In Place) Tube Cleaning On- and off-line CIP chemical cleaning system Effective scale (CaCO 3 ) removal Cleaning chemicals: HCL, NaOH, EDTA Safe operation and maintenance Cleaning Nozzles 19

38 Removable Roof and Tube Bundle Effective tube arrangement in reduced height Removable top allows easy access to removable tube bundles for replacement or periodic maintenance Allows on- or off-site tube cleaning Low labor & safe operation Removable Bundle 20

39 Cleaning Tube Bundles Externally Before and after 21

40 Modular Evaporator Layout MVC-3,000 m 3 /day Front view 2 nd effect 1 st effect Compressor Side view MVC-3,000m 3 /day mounted on a single module HXWXL : 24 X24 X100 Removable roof top Top view 22

41 Unique end user benefits and value Horizontal vs. Vertical Evaporators Reduced OPEX & CAPEX Parameter Power Consumption Operation and Maintenance Erection /Construction Modular Design IDE s Horizontal MVC Low 8-12 kwhr/m 3 (1.3-2) kwhr/bbl (30% saving on power consumption) Easy, skid mounted unit. Easy access to key equipment Fully assembled upon delivery to site (TIC Factor reduced to <1.2) Entire system fits into standard transportable module (24 X24 X100 ) Others High kwhr/m 3 ( ) kwhr/bbl Complicated, limited access to key equipment Complex site & erection work is needed (TIC Factor ) Vessels and equipment modules are assembled onsite 23

42 I N D U S T R I A L W A T E R T R E A T M E N T Thank you! Visit us at: ide-tech.com Contact us: BD@ide-tech.com

43 Designed For Sub-Zero Conditions I N D U S T R I A L W A T E R T R E A T M E N T Extreme weather experience: Outdoor weather proven design Complete Winterization Equipment insulation and protection 25 AKTAU Kazakhstan Temperature drops to -25 C 25

44 May 12-14, 2013 New Developments in Evaporator Produced Water Treatment Greg Mandigo AquaChem ICD a division of Aquatech International Corporation

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46 Overview Evaporator Installation Pilot Program High Efficiency Evaporation

47 Sustainability Waste Disposal Water Recycle Source Water Limitations Steam Generation Deoiling Heavy Oil for Upgrading Power & Chemical Consumption High Front-End Investment Costs Technology must continue to develop to allow these vast resources to be tapped Graphics courtesy of Alberta EUB Water For Life

48

49 VTFF Evaporators Unmatched ability to produce high purity distillate Water recovery > 98% Total reduction of waste volume Flexible to manage feed water changes Reliable water production (Availability > 98%) Extensively proven for Alberta SAGD PW

50 Sustainable Market Needs Lowering Investment Costs Faster Project Execution Lower Project Schedule Risk Improving Evaporator Performance

51 Lowering Investment Costs Big Idea How can a VTFF Evaporator minimize total installed cost?

52 Evaporator System Installation

53 Installing Evaporator Towers Most Equipment is Modularized Evaporators are not Modularized Large Capacity Cranes Extensive Civil Works Evaporator Building Construction Field Labor for Construction

54 Evaporator Tower: TIC 10,000 bpd Case Study CAPEX = $25 Million TIC Factor = ~ Total Installed Cost = $50 Million Installation Schedule is 4-6 months Construction restricted due to road bans

55 Repackaging the VTFF Evaporator

56 Repackaging the VTFF Evaporator Conventional SmartMOD TM

57 Installing SmartMOD Evaporator All Equipment is Modularized Including Evaporators Standard Capacity Cranes Minimal Civil Works Modular Evaporator Building Field Labor for Bolt-up Assembly

58 Parameter CAPEX Total Installed Cost Evaporator Towers $25 MM SmartMOD Evaporator $25 MM TIC Factor Installation Cost TIC $25 MM $50 MM $8 MM $33 MM Installation Schedule (weeks) Limited Delivery (Road Bans) Yes No 15

59 SmartMOD Process Advantages Lower Power Consumption Better Distillate Quality Higher Availability

60 SmartMOD Construction Overview

61 SmartMOD Transportation

62 SmartMOD Transportation

63 SmartMOD Installation Week 1

64 SmartMOD Installation Week 1 & 2

65 SmartMOD Installation Week 2

66 SmartMOD Installation Week 3 & 4

67 SmartMOD Installation Week 6 Installation Complete

68 SmartMOD Interior view of building (Panels removed for clarity)

69 SmartMOD

70 Process Overview Feed #1 #2 #3 #4 Preheater Deaerator SRV SmartMOD Evaporator Distillate Brine Disposal

71 SmartMOD Pilot Overview Total pilot test duration was 3 months Longest single test > 350 hours (15 days) Total PW water processed > 14 m3 Total BW water processed > 2 m3

72 SmartMOD Pilot Approach 4% Concentration (First 3 Sections) 13% Concentration (Final Section) 25% Concentration (Final Section)

73 SmartMOD Pilot Conclusions Majority of hardness precipitated in SRV No scaling in SmartMOD sections Sections best practice is to plan for annual wash SmartMOD section 4 showed minimal fouling after 360 hours Section 4 would require washing every 4-6 months

74 SmartMOD Pilot Conclusions In-Line chemical wash in section 4 restored transfer efficiency Tubes were visually inspected and determined to be clean No mechanical cleaning required

75 SmartMOD Pilot Conclusions Concentrations up to 13% were found to have minimal fouling Concentration to 25% experienced fouling after 1 week Nature of fouling at 25% was organic phase and not mineral Fouling was quickly removed with simple rinsing with distillate

76 Distillate Quality Distillate was consistently suitable for BFW service Majority of organics were characterized as volatile O&G excursions in feed water did not carry to distillate

77 Improving Performance Big Idea How can performance be improved on a VTFF Evaporator? Lower chemical consumption Longer run times between washes

78 HIGH EFFICIENCY RO (HERO TM ) Process developed in the 1990 s First applied for semi-conductor chip manufacturing HERO TM increased recovery from 50% up to 90% Patented technology is licensed and applied globally Aquatech has over 32 HERO TM installations worldwide One third are ZLD by incorporating evaporation

79 HIGH EFFICIENCY RO (HERO TM ) ACID CO 2 Softening (WAC/SAC) CAUSTIC FEED P/T IX DECARB RO PERMEATE Ca +2 Mg +2 HCO H + CO 2 + H 2 0 REJECT (BRINE)

80 HERO Pilot Testing with Alberta Produced Water

81 Water Chemistry for Pilot Test Brackish Water Produced Water ph TDS ppm TSS ppm 32 Hardness ppm as CaCO Silica ppm P. Alkalinity ppm as CaCO Total Alkalinity ppm Oil & Grease ppm < COD ppm

82 HERO Pilot Testing with Alberta Produced Water

83 PILOT TEST ON ALBERTA PRODUCED WATER WITH HERO TM High Efficiency Process demonstrated for Alberta Produced Water Pilot of HERO Conducted in early Testing duration was 3 months Piloting proved successful for treating produced water No membrane fouling ACID CO 2 CAUSTIC FEED WAC Decarbonator ph H/E RO Cartridge Filter RO ph Ca +2 Mg +2

84 High Efficiency Evaporation (HEVAP TM ) Similar to HERO TM applied to evaporation technology Increases Evaporation Efficiency by producing a scale-free chemistry Key Process Steps: Hardness Reduction (Ca +2 and Mg +2 ) Alkalinity Reduction Elevating ph to about 9 or higher

85 Process Comparison HEVAP TM ACID CO 2 CAUSTIC FEED IX HX DEA EVAP Ca +2 Mg +2 HERO TM ACID CO 2 CAUSTIC FEED IX DECARB RO Ca +2 Mg +2

86 HEVAP TM Advantage Increased recovery as high quality BFW Lower blowdown volumes Non-scaling operation No anti-scalant requirement No EDTA Dosing required No Mechanical Cleaning

87 Comparison High ph and HEVAP Processes Consumption Kg/day Unit costs $/kg Total Costs per day In USD High ph HEVAP TM High ph HEVAP TM NaCl HCl (35%) NaOH (50%) Anti Scale Antifoam (Neat) Total OPEX Per day

88 HEVAP TM Advantage Increased recovery as high quality BFW Lower blowdown volumes Non-scaling operation No Anti Scalant requirement No EDTA Dosing required No Mechanical Cleaning Lower Chemical Consumption (OPEX)

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90 May 12-14, 2013 Seeded Evaporation in Alberta SAGD Mark Nicholson Veolia Water Solutions and Technologies HPD Evaporation and Crystallization

91 Overview Seeded Evaporation May 12-14, 2013 Background Oil Sands Application and Sorption Slurry Development Sorption Slurry Design Commercial Installation Discussion

92 May 12-14, 2013 Evaporation & Crystallization Experience Over 85 Years Of Experience Largest Evaporation & Crystallization Installation Base, worldwide Over 800 Successful System Installations in More than 30 Countries Oil & Gas Chemical Processing Power Generation Fertilizer Metals & Mining Salt Pulp & Paper Soda Ash Chlor-alkali Ethanol / Biofuel

93 Seeded Evaporation May What 12-14, 2013 is it? Utilizing a circulating crystal (seed) surface to allow crystallization of scaling components Seed surface is Many times larger than heat transfer surface area Seed surface is preferential for precipitation vs heating surface Where is the seeding process used? Everywhere! All industrial and waste crystallizers around the world Common in the power industry (CaSO4 seeded slurry)

94 Description Produced Water Make-up Water Blend 85%PW/15%MU ph TS (ppm) TDS (ppm) TSS (ppm) TOC as C (ppm) TIC as C (ppm) CO3 Alkalinity (ppm) HCO3 Alkalinity (ppm) Chloride (ppm) Silica (ppm) Calcium (ppm) Sodium (ppm) Magnesium (ppm) Sulfate (ppm) Scaling upon concentration? Yes Yes Yes Seeded Evaporation Typical? Yes Yes Yes

95 Alberta Development Alberta Produced water Seeded evaporation applicable? May 12-14, 2013 Multiple scaling species? Brine disposal required? Economical seed available? Yes Yes- Seeded evap brine has low scaling potential Not CaSO4, other? Conclusion: -Seeded Evaporation is best application -Need to determine economical seed and test

96 Alberta Development- Sorption Slurry May 12-14, 2013 Extensive experience in crystallization and seeded evaporation Investigated several types of seeds for Alberta Produced Water scale control MgOx as per WLS was one seed tested Evaluated test results and economics for all seeds tested MgOx seeding evaluated as best candidate for further development More testing commenced both in house and client paid testing

97 CNRL Conoco Phillips May 12-14, 2013 Connacher Client List for Development present Devon Energy Encana JACOS OSLI/COSIA group Canada Petrocanada Shell Statoil Suncor Tervita TOTAL

98 MgOx Sorption Slurry Testing & Results Testing Pilot tested with 6 separate clients Testing generally 2-3 weeks Most recent testing in upset conditions Very high hardness water (70 ppm Ca+2) Very high O&G levels (100+ ppm) Results All testing proved non-scaling including upsets Results with very high O&G 80+ % of O&G reports to slurry material No negative impact on ability to precipitate silica and hardness May 12-14, 2013

99 Seeded evaporation comparison May 12-14, 2013 Seeded slurry Sorption Slurry Seed CaSO4 Mg(OH)2 Scaling species Alkalinity removal req d? Silica, Ca+2, other sparingly soluble Yes Silica, Ca+2, Mg+2, sparingly soluble, organics, O&G No Operation ph Neutral 9.5 Cleaning EDTA, hydroblast (slow) Weak acid, caustic (quick)

100 May 12-14, 2013 Produced Water Design Parameters High Availability Factor High Distillate Quality Required Including during upsets Foam containment and control Materials of construction Chloride dependent Typically 316L SST for first stages of evaporation

101 Block flow for Sorption Slurry May 12-14, 2013 Feed (100) Preheat Deaeration MgOx Chem Add Power Vent (<1) MVR Evaporator Vapor Vapor Washer Blowdown (4) Distillate/BFW (96) Concentrator Filtration/Deepwell Concentrator Blowdown (<1) -RLD offsite -Filtration/Deepwell -Solidification -Drying

102 Deepwell Disposal Veolia Sorption Slurry Process May 12-14, 2013 Constituent Sorption Process ph 9.5 SiO2, mg/l TDS, mg/l 90,000 TSS, mg/l 30,000 Ca+2. mg/l <20 Chloride, mg/l 46,000 TOC, mg/l 13,000 Filter and Deepwell Dispose Minimal or No Chemical Required

103 May 12-14, 2013 Deepwell Disposal Process Veolia Sorption Slurry Concentrate Disposal Sorption Slurry Evaporator Concentrate Filtration Filtrate <40 ppm TSS <0.2 micron ph <10 Brine to deepwell disposal Evaporator TSS to landfill disposal

104 May 12-14, 2013 Commercial Installation Data

105 Reactive Silica (ppm) Feed Silica to Evaporator Concentrated 25 cycles in evaporator Scaling Conditions May 12-14, 2013 Deoiled PW Feed Silica (24-hr averaged) De-oiled Produced Water Silica LR /15/12 8/4/12 8/24/12 9/13/12 10/3/12 10/23/12 11/12/12 12/2/12 12/22/12

106 Feed Hardness to Evaporator Concentrated 25 cycles in evaporator Scaling conditions May 12-14, 2013 Deoiled PW Total Dissolved Hardness De-Oiled Produced Water Total Dissolved Hardness /15/12 8/4/12 8/24/12 9/13/12 10/3/12 10/23/12 11/12/12 12/2/12 12/22/12

107 May 12-14, 2013 Evaporator Heat Transfer coefficients (U Values)

108 Distillate Quality May 12-14, 2013 Hardness: <0.1 mg/l as CaCO3 Silica: <0.1 mg/l as SiO2 Oily matter: <0.2 mg/l Conductivity: 60 us Turbidity: <0.5 NTU

109 Evaporator and Vapor May 12-14, Washer 2013

110 Vapor Compressor May 12-14, 2013

111 Crystallizer Heater and Flash Vessel May 12-14, 2013

112 Crystallizer Section May 12-14, 2013

113 May 12-14, 2013

114 May 12-14, 2013 Thank you for your kind attention Questions?

115 May 12-14, 2013 HEAT EXCHANGER FOULING IN MVR EVAPORATOR APPLICATIONS Patrick Horner, B.Sc., P.Eng. Aqua-Pure Ventures Inc.

116 IMPACTS OF HEAT EXCHANGER FOULING May 12-14, 2013 Increased Capital Investment Lower Design U Factors (Greater HX Area) Additional Operating Costs Higher Energy Input Higher Maintenance Costs Mechanical and Chemical Cleanings Lost Production Reduced efficiency and increased downtime Cost of Remedial Action Fouling Control Chemical Programs

117 GENERAL FOULING MECHANISMS May 12-14, 2013 Suspended Solids Sand, silts, clays, corrosion productions, undeposited precipitated salts / organic material Precipitated Salts Scales (CO 3, SO 4 ) Metal Hydroxides (Mg(OH) 2, Al(OH) 3, Fe(OH) 2 ) Silica (Amorphous and Complex Silica) Organics Oils, waxes, organic acids Hydrophobic vs Hydrophilic

118 SURFACE ACCUMULATION MECHANISMS Scale Formation Formed In-Situ (Nucleation and Crystal Growth on Heat Exchanger Surface) Hard deposit Sulphate Based Scales, Carbonate Scales, Amorphous Silica, Homogenous vs Heterogeneous Deposition Formed elsewhere (in solution or upstream) Soft deposit (can harden with time / heat) Accumulation of Suspended Solids, Corrosion Products, Organics, Precipitated Salts (lose scales, metal hydroxides, complex silica) May 12-14, 2013

119 STAGES OF SCALE FORMATION 1. Induction Period (chemical reaction) 2. Nucleation 3. Crystal Growth May 12-14, 2013

120 SCALE CONTROL Environment Thermal Field (Heat Flux, Substrate Surface Temp, Bulk Fluid Temp) Fluid Composition (Ion concentration, ph, and dispersed solid matter) Flow field (fluid bulk and solid/liquid interface conditions, velocity, shear stress etc) Substrate Surface Properties (material properties, surface conditions including roughness) Chemical Inhibition Nucleation Inhibition (increases induction period, reduces scale reaction kinetics) Crystal Growth Inhibition (adsorbs nucleating crystallites, prevents further crystal growth) Dispersion (electrostatic repulsion) Sequestration / Chelation (bind cations into soluble complexes) May 12-14, 2013

121 DEPOSITION CONTROL Environment Time Velocity TSS Concentration Surface Composition and Condition Chemical Inhibition Dispersion (electrostatic repulsion via LMW Anionic Polymers) May 12-14, 2013

122 CASE STUDY SHALE GAS FLOWBACK SOLUTION ANALYIS COMPONENTS OF CONCERN May 12-14, 2013 FEED CONC. Calcium Carbonate Scale (CaCO 3 ) Na 12,450 58,160 Magnesium Hydroxide (Mg(OH) 2 ) Ca ,464 Iron Hydroxide (Fe(OH) 2 ) Sr 350 1,635 Complex Silica (Iron and Magnesium Silicate) Ba Sulphate Scales (BaSO 4, SrSO 4, CaSO 4 ) Mg 250 1,168 Fe Al 2 9 FOULING CONTROL PROGRAM Cl 23, ,181 Pre-Treatment to reduce HCO 3 / Fe / Mg / SiO 2 HCO ,355 Feed ph Control/De-Aeration: remove HCO 3 as CO 2 SO Scale Inhibitor to manage SO 4 based scales SiO Evap ph Control (> 7.0) to prevent Mg(OH) 2 TDS 39, ,000

123 CASE STUDY CBM RO REJECT SOLUTION ANALYIS COMPONENTS OF CONCERN May 12-14, 2013 FEED CONC. Amorphous Silica Scale (SiO 2 ) Na 14,718 73,748 Metal Hydroxides Ca Complex Silica Sr Ba Mg Fe Al FOULING CONTROL PROGRAM Cl 13,166 65,972 Evap ph Control (> 10.0) to prevent SiO 2 HCO 3 10,922 54,727 Chelating Agent (Glycolic Acid) to prevent Metal SO Hydroxide formation (Chelate divalent cations) SiO TDS 38, ,000

124 CASE STUDY SAGD OTSG BLOWDOWN SOLUTION ANALYIS COMPONENTS OF CONCERN May 12-14, 2013 FEED CONC. Amorphous Silica Scale (SiO 2 ) Na 2,179 45,130 Metal Hydroxide Ca Complex Silica Sr Ba Mg Fe Al FOULING CONTROL PROGRAM Cl 1,916 39,683 Evap ph Control (> 12.0) to prevent SiO 2 HCO ,604 Chelating Agent (Glycolic Acid) to prevent Metal SO ,553 Hydroxide formation (Chelate divalent cations) SiO ,882 TDS 5, ,000

125 CASE STUDY COOLING WATER BLOWDOWN SOLUTION ANALYIS COMPONENTS OF CONCERN May 12-14, 2013 FEED CONC. Amorphous Silica Scale (SiO 2 ) Na 9,116 40,025 Calcium Carbonate Ca 740 3,249 Calcium Sulphate Sr 6 27 Metal Hydroxides (Mg(OH) 2 ) Ba 0 0 Complex Silica (Magnesium Hydroxide) Mg 340 1,493 Fe 0 0 Al 0 0 FOULING CONTROL PROGRAM Cl 6,200 27,222 Pre-Treatment to reduce HCO 3 / Mg / SiO 2 HCO Feed ph Control/De-Aeration: remove HCO 3 as CO 2 SO 4 14,000 61,469 Scale Inhibitor and limit CF for SO 4 scale control SiO Evap ph Control (> 7.0) to prevent Mg(OH) 2 TDS 30, ,000

126 HEAT EXCHANGER DESIGN FOR REDUCED FOULING May 12-14, 2013 Minimize Temperature Difference Between Bulk Fluid Temperature and Substrate Surface Temperature. Maximize Velocity and Shear Stress at Substrate Surface. Minimize Surface Roughness Maximize Clean-ability

127 AQUA-PURE USES THE ALFA LAVAL ALPAVAP IN HIGH FOULING APPLICATIONS May 12-14, 2013 High Heat Transfer Coefficient Low Heat Transfer Area High Turbulence (Reduced Fouling) Small Footprint Lighter Weight Simplified Clean ability Close temperature approach

128 AQUA-PURE MVR EVAPORATORS 300 m 3 /DAY TO 10,000 m 3 /DAY May 12-14, 2013

129 May 12-14, 2013 QUESTIONS ANSWERS CONTACT: Patrick Horner, P.Eng VP Engineering Aqua-Pure Ventures

130 May 12-14, 2013 Electrocoagulation: An Innovative Approach for Recycling Produced Water and as a Pre-Treatment to Reverse Osmosis for Emulsified Oils, Heavy Metals and Other Constituents in the Oil and Gas Industry B. Denney Eames, P.E. Director, Membrane Technology

131 Outline Introduction to Electrocoagulation Principles of Electrocoagulation The Science of Electrocoagulation Advantages of Electrocoagulation as a pre-treatment to Reverse Osmosis in the Oil & Gas Industry Total Suspended Solids, Metal Precipitation, De-Emulsification of Oils Case Studies and Data Review Shale Gas Frac Flowback Treatment Oil Produced Water Treatment Mining Wastewater Treatment

132 Introduction to Electrocoagulation First patented in 1906 by A. E. Dietrich Original patent was used to treat bilge water from ships Multiple attempts have been made to commercialize the technology with varying degrees of success New regulations have put pressure on industries to explore innovative solutions Electrocoagulation has re-emerged as a viable technology

133 Electrocoagulation Today Electrocoagulation is used in many industries today Stormwater Treatment Environmental Remediation Marine Pollution Prevention Automotive Cleaning Food and Beverage Mining Oil & Gas Water Recycling

134 Electrocoagulation Principles Electrocoagulation is a process utilizing sacrificed anodes to form active coagulants which are used to remove pollutants by precipitation and flotation in-situ. Compared with traditional chemical coagulation, electrocoagulation has, in theory, the advantage of removing the smallest colloidal particles; the smallest charged particles have a greater probability of being coagulated because of the electric field that sets them in motion. -MF Pouet, 1995

135 Electrocoagulation Principles The electrical process introduces positively charged ions that attract a disproportionate quantity of negatively charged contaminants Small particles agglomerate into larger particles through precipitation and adsorption Gas generated at the cathode assists in separating the lighter coagulated particles and forming a stable floc

136 Electrocoagulation Targets 1. Coagulation of suspended solids 2. Precipitation and agglomeration of dissolved metals 3. De-emulsification of oil and grease from water

137 Electrocoagulation Process Electrocoagulation Makes Particles Larger Gravity Separation Electrocoagulation

138 Coagulation of Suspended Solids Coagulation is one of the most important physiochemical reactions used in water treatment Coagulation is brought about by the reduction of the net surface charge where the colloidal particles (previously stabilized by electrostatic repulsion) can approach closely enough for Van Der Waals forces to hold them together and allow aggregation The reduction of the surface charge is a consequence of the decrease of the repulsive potential of the electrical double layer by the presence of an electrolyte having opposite charge

139 Coagulation of Suspended Solids Coagulation can be achieved by chemical or electrical methods Metals salts like Aluminum Sulfate and Ferric Chloride have been used for over 100 years in water treatment In the EC process, the coagulant is generated in-situ by electrolytic oxidation of an anode Ions are removed from water by reacting other ions of opposite charges, or through floc of metallic hydroxides generated within the effluent

140 Advantages of Electrocoagulation in Coagulation of Suspended Solids The Electrical method is more effective than the chemical method 1. Does not add the anion (i.e., Sulfate or Chloride) No Osmotic loading on RO Does not increase TDS Sludge dewaters more easily 2. Lower dosage of metal (Fe or Al) to achieve the same result Less sludge if formed Lower water Content in the sludge

141 Literature Review Chemical coagulation has been used for decades to destabilize suspensions and to effect precipitation of soluble metals species, as well as other inorganic species from aqueous streams, thereby permitting their removal through sedimentation or filtration. Alum, lime and/or polymers have been the chemical coagulants used. These processes, however, tend to generate large volumes of sludge with high bound water content that can be slow to filter and difficult to dewater. These treatment processes also tend to increase the total dissolved solids (TDS) content of the effluent, making it unacceptable for reuse within industrial applications. -Benefield, Larry D.; Judkins, Joseph F.; Weand, Barron L. (1982). Process Chemistry for Water and Wastewater Treatment. Englewood Cliffs, NJ: Prentice-Hall. p. 212.

142 Literature Review Although the electrocoagulation mechanism resembles chemical coagulation in that the cationic species are responsible for the neutralization of surface charges, the characteristics of the electrocoagulated flock differ dramatically from those generated by chemical coagulation. An electrocogulated flock tends to contain less bound water, is more shear resistant and is more readily filterable. -Woytowich, David L.; Dalrymple, C.W.; Britton, M.G. (Spring 1993). "Electrocoagulation (CURE) Treatment of Ship Bilge Water for the US Coast Guard in Alaska". Marine Technology Society Journal (Columbia, MD: Marine Technology Society, Inc.) 27 (1): 92.

143 EC Precipitation of Metals Metal ions are primarily held in solution by electrical charges By adding ions with opposite charges, metal colloids can be destabilized The ph and oxidation state are critical to the precipitation of dissolved metals Let s look at Arsenic as a case study

144 Arsenic (iii) Fraction Diagram

145 Arsenic (v) Fraction Diagram

146 Arsenic Pourbaix Diagram Arsenic (v) Arsenic (iii)

147 Arsenic Precipitation Arsenic (iii) As (iii) Fe 3 + No Attraction Oxidation Creates As OCL - (iii) As Negatively (v) Charged As (v) Arsenic (v) As (v) Fe 3+ Attracted and Bound to Ferric Precipitate

148 CL - Fe 3 + OH - CL - As (v) - OH - CL - OH - CL - OH - As (v) - OH - Fe 3+ CL - As (v) - CL - Fe 3+ OH - CL - CL - OH - CL - OH - Lots of Competition!

149 +++++ Anode Cathode Fe 3 + As (v) - OH - H 2 Cu OH - O 2 O 2 Fe 3+ As (v) - OH - H 2 OH - Fe 3+ As (v) - Cu OH - OH - H 2 Less Competition = Higher Potential Energy

150 Advantages of Electrocoagulation in Dissolved Metal Precipitation EC does not add anions that compete for coagulation with the metal ions The introduction geometry of the coagulant (Fe 3+ ) enhances the chances of precipitation The reaction is more efficient that chemical precipitation resulting in less sludge No anions are left behind to increase osmotic loading on downstream processes

151 De-emulsification of Oil and Grease EC offers an alternative to the use of metal salts/polymers/polyelectrolytes for breaking stable emulsions and suspensions The process destabilizes soluble organic pollutants and emulsified oils from aqueous media by introducing highly charged polymeric metal hydroxide species These species neutralize the electrostatic charges on oil emulsions/droplets to facilitate agglomeration/coagulation and separation from the aqueous phase

152 ELECTROCOAGULATION VIDEO

153 KWHr Per 1000 Gallons (EC Only) ELECTROCOAGULATION POWER USAGE Pump Power 1, PSI = 0.43 KWHr Conductivity (us)

154

155 NATURAL GAS FRAC WATER Location Price, Utah Climate Remote, mountains (-20 to 110 F) Mobilization 1-3 days Footprint < 2,500 ft 2 Volume 55,000 bbls Result Value Add Eliminated 1,000 truck trips; total project savings of $250,000 Mobile units, handle variable flow, destroy bacterial, reduce H 2 S, reduce VOC s from surface facilities, remote monitoring

156 OIL FIELD PRODUCED WATER REUSE Location Meta Province, Colombia Application Oil Field Wastewater Reuse Equipment EC / DAF / UF / RO Discharge Reuse, Agricultural Irrigation Volume 3,000 BPD Effluent Goal Surface; Irrigation <60 ppm Sodium

157 OIL FIELD PRODUCED WATER REUSE

158 OIL FIELD PRODUCED WATER REUSE Parameter Units Influent EC Effluent RO Effluent Iron, Total mg/l % <0.10 Turbidity NTU > 1000 < % <1 Total Suspended Solids mg/l 1300 < % <1 Total Dissolved Solids mg/l <35 95% Sodium mg/l <6 97% FOG (Polar & Non-Polar) mg/l 1,500 Non Detect 99.9% ND

159 TAILING STORAGE DRAINAGE REUSE Location Legacy Gold Mine Application Tailing Storage Facility (TSF) Drainage Equipment EC / DAF / MMF / RO Discharge Reuse / Discharge Volume 50 GPM Effluent Goal Arsenic, Calcium, Magnesium, Iron, Manganese, Sulfate, TDS, TSS

160 TAILING STORAGE DRAINAGE REUSE

161 TAILING STORAGE DRAINAGE REUSE Parameter Units Influent EC Effluent RO Permeate Treatment Objective Arsenic mg/l % <0.003 <0.005 Calcium mg/l Magnesium mg/l <1 Required for RO Operation 99.9% 99.9% Iron mg/l % 0.05 <1.0 Manganese mg/l % Nickel mg/l % <0.010 <0.020 Sulfate mg/l 4,580 4, % <200 TSS mg/l % 1 <5.0 TDS mg/l 12,100 11, % <1,000

162 WHERE EC DOES NOT WORK Low Conductivity Applications (i.e., conductivity less than 300 us/cm) Low Suspended Solid Applications Turbidity Less than 25 NTU TSS Less than 20 mg/l Non Polar and Monovalant Contaminates Aqueous Salts (Na, K, Cl, F, etc.) Non polar/charged particles

163 WHERE DOES EC WORK WELL Higher Conductivity Applications (i.e., conductivity greater than 300 us/cm) Higher Suspended Solid Applications Turbidity greater than 25NTU TSS greater than 20 mg/l Targeted Contaminates Metals Emulsified Oil & Grease Total Suspended Solids

164 Advantages of Electrocoagulation High energy input of the reaction creates collisions and forms particles through precipitation and adsorption Does NOT add aqueous salts to the treated solution that add osmotic loading to downstream processes Produces less sludge when compared to traditional chemical precipitation

165 PARTNERS: Halliburton & Water Tectonics Secured a global licensing agreement with Halliburton in April of 2010 Technology used in treating wastewater from natural gas drilling

166 EC Technology Today

167 May 12-14, 2013 Questions? B. Denney Eames, P.E. Director, Membrane Technology

168 May 12-14, 2013 Granular Micro Media Filtration s Role in Meeting the Need for Improved Produced Water Quality for EOR Michael Dejak, P. Eng. Eco-Tec Inc.

169 May 12-14, 2013 Presentation Summary 1. The Need for Improved Water Filtration 2. Review of Filtration Methods 3. Background of Granular Micro Media Filtration 4. Field Performance Data 5. Conclusions

170 Changing Practices in Oil Production Characteristic Old Conventional Oil New Unconventional Oil New practices Oil type Light, sweet Heavy, sour Thermal processes - most commonly steam injection (CSS, SAGD, steam flood) Water May 12-14, cut 2013 Low High Reinjection of water to reservoir or to disposal wells. ASP polymer floods to increase oil cut and recovery Gas or WAG (Water-Alternating-Gas) flooding Reservoir porosity High porosity Low porosity Hydraulic fracturing to create porosity through multiple fissures in low porosity formation Reservoir pressure High pressure low lift costs Lower pressure higher lift cost Water injection for reservoir pressure maintenance. Location Onshore Offshore Produced water treatment for discharge or reinjection. Seawater injection, increasingly with membrane processes for sulfate removal More costly wells and reservoirs to be protected from plugging. Well types Simple, vertical, high, long term production Complex, horizontal, multiple fracs, shorter production life Water used for initial fraccing. May be used for flooding as well. Flowback and produced water reused for fracccing or to disposal wells.

171 May 12-14, 2013 Trend: More water treating and more water injected into wells and reservoirs that are more costly to develop.

172 May 12-14, 2013 Consequences of Injecting Poor Water Quality Reservoir plugging which can cause production declines or inadvertent fractures Greater frequency of well and reservoir plugging requiring workovers, acid treatments, and new wells with the associated production loss Reduction in production or in the total recoverable potential of the reservoir Souring of wells through introduction of sulfur reducing bacteria (SRBs) via the water injection

173 Example of Filtration Specifications for Tight Reservoirs Typical Specification: < 250 particles per ml > 2 microns in diameter 95 % removal of particles > 2 microns in diameter < 0.2 mg/l total suspended solids (TSS) 6,000 ml passing through double 0.45 micron Millipore HAWP0470 membrane filter (47 mm diameter and constant P of 20 psi)

174 On-shore Produced Water May 12-14, 2013 Treatment Processes

175 Traditional Water Filtration Methods Cartridge Filters Bag Filters Backwashable Strainers Hydrocyclones Backwashable Sand Filters Backwashable Nutshell Filters Backwashable Multimedia Filters

176 Alternative Water Filtration Technology Membrane Filters Granular Micro Media Filtration

177 Granular Micro Media Filtration Key Design Difference Conventional Media Filter vs. Granular Micro-Media Filter Media Particle Size: microns (20-30 mesh) Media Particle Size: microns (20-30 mesh) Micro Media Particle Size: micron ( mesh)

178 Original Pilot Test Performance

179 Granular Micro Media Filter Applications Steel Processing: Pre-filtration of pickling acid (e.g. HNO 3 /HF, H 2 SO, HCl) purification by resin sorption Power & Steam Generation: Raw surface water filtration for high purity boiler feed water treatment

180 Granular Micro Media Filter Applications Oil Production: Pre-filtration of de-oiled water prior to ion exchange softening

181 Performance Testing of Operating Filters 1. Selected 8 locations in San Joaquin Valley (California) operating produced water filters in heavy oil production (4 Micro Media, 4 conventional-type) 2. Set up sampling and analysis procedures to test for: Solids removal total solids and by particle size Oil removal Turbidity reduction 3. Filter systems were tested as is i.e. no special procedures or modified conditions 4. Report and interpret results

182 Summary of Test Sites

183 Sampling Points Conventional Produced Water Treatment

184 Sampling Points Produced Water Treatment Using Granular Micro Media Filters and RecoPur IX Softeners

185 Analytical Methods

186 Test Results

187 TSS (mg/l) 70 TSS Levels - Granular Micro Media Filter vs. Conventional Filter In Out In Out In Out In Out In Out In Out In Out In Out IGF Filter IGF Filter IGF Filter IGF Filter IGF Filter IGF Filter IGF Filter IGF Filter A B C D E F G H Spectrum Plus Micro Media Filter Conventional

188 Turbidity (NTU) 90 Turbidity Level - Granular Micro Media Filter vs. Conventional Filter In Out In Out In Out In Out In Out In Out In Out In Out IGF Filter IGF Filter IGF Filter IGF Filter IGF Filter IGF Filter IGF Filter IGF Filter A B C D E F G H Spectrum Plus Micro Media Filter Conventional

189 Dispersed Oil (mg/l) 120 Dispersed Oil Granular Micro Media Filter vs. Conventional Filter In Out In Out In Out In Out In Out In Out In Out In Out IGF Filter IGF Filter IGF Filter IGF Filter IGF Filter IGF Filter IGF Filter IGF Filter A B C D E F G H Spectrum Plus Micro Media Filter Conventional

190 Granular Micro Media Filter vs. Conventional Filter Performance

191 Site B (Granular Micro Media Filter) Solid Particle Removal by Size

192 Site B (Granular Micro Media Filter) Oil Droplet Removal by Size (As measured by Canty Instrument)

193 Site C (Granular Micro Media Filter) Solid Particle Removal by Size

194 Site C (Granular Micro Media Filter) Oil Droplet Removal by Size (As Measured by Canty Instrument)

195 Millipore Filter Discs from Conventional Filter Sites

196 Millipore Filter Discs from Granular Micro-Media Filter Sites (Note Filtrate Volumes!)

197 Summary Granular Micro Media Filter performance was clearly superior to conventional-type filter performance in terms of oil and suspended solids removal Granular Micro Media Filters provided virtually complete removal of particles to less than 1 micron. Granular Micro Media Filters should be considered for any oil field water filtration requirement particularly when greater solids removal is required such as in tight formations

198 Thank You Questions? Contact: Michael Dejak, P. Eng

199 May 12-14, 2013 Continuous Improvements In Water Management Joseph J. Lobato

200 Piceance Basin, Western CO WPX operates over 4,300 wells in the basin Currently 7 rigs running Anticipate drilling over 150 wells in 2013 (In 2008 drilled over 600 wells) 4 main areas of operation Parachute Trail Ridge Allen Point Ryan Gulch 2

201 Typical Well Drilling Operation WPX cleans and recycles produced water for completion of natural gas wells SIMOPS - Simultaneous drilling and fracking on the same pad -Water is pumped to the pad from a centralized frac facility. Frac stages range from 5-13 per well. Approximately 3,100-6,000 barrels of water and 100, ,000 pounds of sand pumped per frac stage 3

202 Water Management Approach for Recycle and Reuse 4

203 Water Closeup - Water Treatment Facility Process Water from Producing Wells 1 Water Skim Tank Water from Flowback Condensate/ Oil To Sales Hydraulic Fracturing new wells 3 Emulsion Belt Press (Sludge Dewatering) 2 Surge Tank (Constant flow of water to DAF) Water DAF (Dissolved Air Flotation) Water 4 Storage Ponds (Aeration) 5

204 Water Recycling Program Subsurface Disposal Resources Hydraulic Fracturing Water Sharing between Operators Produced Water Water Treatment Facility New Well Completion Flowback 6

205 Water Management Approach PROBLEM: (2007) Dealing with 30,000 BWPD 300 truck loads per day 109,500 truck loads per year Truck traffic, dust, high water hauling costs Thousands of wells in inventory to be drilled Public pressure SOLUTION: HDPE Water Lines Injection Facilities Centralized frac and water treating Comprehensive team approach Input from Drilling, Completions, Production, 3 rd party contractors and Water Management group Flexibility Water Infrastructure results: Allowed sustainability at lower gas prices Lowest operating costs in the company 7

206 Drilling and Completions Operations Centralized Frac - Hayes Gulch Example N 8

207 Hayes Gulch CPOD - Piceance Basin 9

208 Hayes Gulch Remote Frac Operations Statistics Accessed 14 drilling pads 87 new wells drilled Pumped 495 frac stages 74,000,000 lbs of proppant (370 railcars) 145,000,000 gal of fluid handled/recycled (220 Olympic swimming pools) Eliminated 12,000+ water truck trips to locations. Saved $1,000,000+ in trucking alone. Additional benefits Smaller size drilling pads. Less traffic resulting in less dust, emissions, road maintenance and accidents More fracs per day. Get in and get in much shorter time frame 10

209 Remote Fracturing Benefits across the Basin Awards from the BLM and COGCC CDOW allowed year-round development Very positive Community Support Reduces truck traffic by up to 90% Reduces footprint by 30% Reduces time required to drill and complete by up to 80% Reduced completions costs by 30% Minimize new disturbance Reduces impacts on roads Reduces traffic through neighborhoods (noise, odor, dust) Reduces impacts to wildlife Eliminated nearly 500,000 heavy truck trips on public roads Safer in challenging locations to not truck water Longest reach to date over 3 miles 11

210 Rulison Water Management Facility 12

211 Parachute Water Management Facility 13

212 Must Control Vapors and Emissions State of Colorado categorizes these as permanent centralized E&P waste facilities CDPHE mandates emission control technologies using RACT (Reasonably Available Control Technology) Two existing water treating facilities required multi-million dollar upgrades to be brought into compliance with state requirements Rulison Water Management Facility was completed June 2010 Parachute Water Management Facility was completed in stages and fully operational in December 2011 Complex/rigorous operating plan, extensive testing, monitoring, record keeping to ensure compliance with our state air quality permit Vapor Controlled Equipment and Technology - Fully closed process and systems, covered pond, DAF technology, microbiology in the ponds and good production practices out in the field Awards from the BLM and COGCC for Water Management Practices 14

213 Parachute Water Management Facility 15

214 Parachute Water Management Facility 16

215 Parachute Water Management Facility 17

216 Water Management Facility Features and Benefits Fully automated to minimize manpower Automation has nearly eliminated spills High capacity with low operating costs Fully closed process and systems, all VOC emissions are captured and / or controlled Minimal impact to local wildlife Reduced impact on road infrastructure Very good regulatory relationship and support Predictable delivery, consistent product with no delays to drilling or production Community Support 18

217 Reverse Osmosis (RO) Pilot Project 19

218 Reverse Osmosis (RO) Pilot Project 1/10 th scale RO Pilot Project Plan for 13,000 bwpd RO facility 10,000 bwpd cleaned and permitted for surface discharge This facility will provide a consistent and sustainable process returning clean water to the local drainage 20

219 Reverse Osmosis (RO) Pilot Project Pilot Testing in January - March 2013 Included Use of WPT Mobile Laboratory Capable of Analyzing 31 Different Parameters Including Oil and Grease (Hexane Extraction and Silica Gel Treatment), Boron, Sulfide, TOC, COD, Suspended Solids, Ammonia, Aluminium, and Microbiological Testing (Coliform Plate Count, Heterotrophic Plate Count, Yeast and Mold Plate Count). 21

220 Reverse Osmosis (RO) Pilot Project Colorado Regulates Approximately 260 Parameters Including; Federal Priority Pollutants (121) Oil and Grease, Radionuclides (10) Organics (162) Inorganic Metals (20) Inorganic Non-metal Chemicals (11) We Have Met All of These Requirements. Treated Water Has Passed Acute and Chronic WET (Whole Effluent Toxicity) Testing for both the Water Flea (Ceriodaphnia dubia) and the Fathead Minnow (Pimephales promelus). Water Will Meet a Sodium Adsorption Ratio Requirement of Less Than 3 for the Support of Downstream Agriculture 22

221 Continuous Improvements In Water Management Thank You For Your Attention! Questions 23

222 May 12-14, 2013 Integrated Waste Management for SAGD L. Robert Lipsett Tervita Corporation

223 May 12-14, 2013 Introducing Tervita The Brand New 25 Year Old Company EARTH MATTERS Vision Creating a better future through global leadership in environmental and energy solutions Mission We care for our world. Through innovation, science, knowledge and experience we help our clients, communities and governments ensure responsible and sustainable development of our resources demanding safety, enhancing efficiency, minimizing environmental impact Values Life Accountability Collaboration Excellence Tervita Over 4000 employees across North America As of March 2012

224 INTEGRATED WASTE MANAGEMENT May 12-14, 2013 EXTRACTION OF VALUED CONSTITUENTS REDUCTION OF TRANSPORTATION LIABILITY POTENTIALLY OPERATING COST NEUTRAL CONTRIBUTES TO SOCIAL LICENSE TO OPERATE RECOGNIZES CONCENTRATION CYCLE INCREASE HAS RISK

225 May 12-14, 2013 Integrated Waste Management Thermal Stimulation Production Process Production Processes Steam Assisted Gravity Drainage Cyclic Steam Stimulation Steam Drive Steam Solvent Thermal stimulation production processes are large water plants with hydrocarbon as a valued by product Steam is the vehicle driving hydrocarbon recovery. Production of boiler feed water from produced water and brackish make up water is the challenge to waste management.

226 THERMAL STIMULATION PROCESS May 12-14, 2013 Sulfur STEAM Oil Oil Process Sales Oil Reservoir Reservoir water Balance Emulsion Cavern Slop / skim Oil Oil / Water Separation Disposal well Produced Water Slop / Skim Oil Water Process Lime Sludge Evaporator Blow down High TDS slurry Solids Landfill Make-up Water Boiler Feed Water DISPOSAL OPTIONS DISPOSAL WELL LANDFILL CAVERN Steam Generation Boiler Blow down

227 Salt Cavern Disposal high solids content and reactive liquids

228 DISPOSAL WELLS Formation that accepts fluid at economic rate Isolation from production formations Fluid waste materials with low solids and non-reactive chemistry DISPOSAL CAVERNS Thick homogeneous salt formation wash water at m3/hr Wash brine disposal wells Waste return brine disposal wells Time to build cavern Solids, sludge and fluids

229 Tervita TRD Liquid, sludge, oil emulsion processing facility TRD 1. Waste receiving 2. Process 3. Disposal well

230 Third party operated landfill for oil industry solid waste LANDFILL Sub soil a natural clay Multiple permeability barriers Use geo-synthetic liners Leak detection between liners Leachate collection above liners Storm water and run-off collection

231 THERMAL STIMULATION PROCESS May 12-14, 2013 Sulfur STEAM Oil Oil Process Sales Oil Reservoir Reservoir water Balance Emulsion Cavern Slop / skim Oil Oil / Water Separation Disposal well Produced Water Slop / Skim Oil Water Process Lime Sludge Evaporator Blow down High TDS slurry Solids Landfill Make-up Water Boiler Feed Water DISPOSAL OPTIONS DISPOSAL WELL LANDFILL CAVERN Steam Generation Boiler Blow down

232 PROCESS WASTE STREAMS May 12-14, 2013 Oil Process Slop or skim oil Process vessel sludge Tank Bottoms Sulfur Water Process Process vessel sludge Tank bottoms Warm or Hot Lime sludge Cation Exchange Resin Re-generation fluids Steam Generator Blow down Evaporator Blow Down Crystallizer or concentrator blow down

233 May 12-14, 2013

234 INTEGRATED WASTE MANAGEMENT May 12-14, 2013 EXTRACTION OF VALUED CONSTITUENTS REDUCTION OF TRANSPORTATION LIABILITY POTENTIALLY OPERATING COST NEUTRAL CONTRIBUTES TO SOCIAL LICENSE TO OPERATE

235 May 12-14, 2013 Integrated waste process FEED MATERIALS Lime sludge Evaporator blow down Slop/Skim oil process PRODUCTS Oil and water back to facility Solid discharge to disposal

236 Questions

237 May 12-14, 2013 REUSE OF FLOWBACK & PRODUCED WATER FOR HYDRAULIC FRACTURING IN TIGHT OIL ROBERTA WASYLISHEN

238 REUSE OF FLOWBACK & PRODUCED WATER FOR HYDRAULIC FRACTURING IN TIGHT OIL May 12-14, 2013 AGENDA PROJECT OVERVIEW OPPORTUNITY ASSESSMENT WATER QUALITY GUIDELINES: CROSSLINKED FLUIDS FLUID CHARACTERIZATION TREATMENT APPROACH METHODOLOGY THE ROLE OF DESALINATION NEXT STEPS ACKNOWLEDGMENTS

239 REUSE OF FLOWBACK & PRODUCED WATER FOR HYDRAULIC FRACTURING IN TIGHT OIL May 12-14, 2013 PROJECT OVERVIEW Assess the tight oil hydraulic fracturing reuse opportunities Identify water quality guidelines needed to facilitate reuse Characterize the tight oil flowback & produced waters Develop a baseline treatment approach methodology

240 REUSE OF FLOWBACK & PRODUCED WATER FOR HYDRAULIC FRACTURING IN TIGHT OIL May 12-14, 2013 AGENDA PROJECT OVERVIEW OPPORTUNITY ASSESSMENT WATER QUALITY GUIDELINES: CROSSLINKED FLUIDS FLUID CHARACTERIZATION TREATMENT APPROACH METHODOLOGY THE ROLE OF DESALINATION NEXT STEPS ACKNOWLEDGMENTS

241 REUSE OF FLOWBACK & PRODUCED WATER FOR HYDRAULIC FRACTURING IN TIGHT OIL May 12-14, 2013 OPPORTUNITY ASSESSMENT

242 REUSE OF FLOWBACK & PRODUCED WATER FOR HYDRAULIC FRACTURING IN TIGHT OIL OPPORTUNITY ASSESSMENT RESOURCE PLAY 2012 HZ WELLS AVERAGE WATER REQUIREMENTS CUMULATIVE WATER REQUIREMENTS PER RESOURCE PLAY AVERAGE FLOWBACK VOLUMES 6 CUMULATIVE FLOWBACK VOLUMES PER RESOURCE PLAY (M 3 /WELL) (M 3 ) (M 3 /WELL ) (M 3 ) CARDIUM , , ,000 CARBONATES (SLAVE POINT) COLORADO GROUP (VIKING) WASKADA/SPEARFISH (LOWER AMARANTH) 33 1, , , , , , ,050 TOTAL ,170 25, % OF THE WELLS COMPLETED WITHIN THE CARDIUM UTILIZE OIL BASED FLUIDS FOR HYDRAULIC FRACTURING 2 10% OF THE WELLS COMPLETED WITHIN THE CARDIUM UTILIZE ENERGIZED WATER BASED FLUIDS FOR HYDRAULIC FRACTURING 3 100% OF THE WELLS COMPLETED WITHIN THE CARBONATES (SLAVE POINT) UTILIZE WATER BASED CROSSLINKED FLUIDS FOR HYDRAULIC FRACTURING 4 100% OF THE WELLS COMPLETED WITHIN COLORADO GROUP (VIKING) UTILIZE WATER BASED FOAMS FOR HYDRAULIC FRACTURING 5 100% OF THE WELLS COMPLETED WITH WASKADA/SPEARFISH (LOWER AMARANTH) UTILIZE WATER BASED CROSSLINKED FLUIDS FOR HYDRAULIC FRACTURING 6 BASED ON AVERAGE FLOWBACK VOLUME PER RESOURCE PLAY 9.43% FRESH WATER SAVINGS

243 REUSE OF FLOWBACK & PRODUCED WATER FOR HYDRAULIC FRACTURING IN TIGHT OIL May 12-14, 2013 AGENDA PROJECT OVERVIEW OPPORTUNITY ASSESSMENT WATER QUALITY GUIDELINES: CROSSLINKED FLUIDS FLUID CHARACTERIZATION TREATMENT APPROACH METHODOLOGY THE ROLE OF DESALINATION NEXT STEPS ACKNOWLEDGMENTS

244 REUSE OF FLOWBACK & PRODUCED WATER FOR HYDRAULIC FRACTURING IN TIGHT OIL WATER QUALITY GUIDELINES: CROSSLINKED FLUIDS SAND 8.22% OTHER 1.15% CROSSLINKER 0.31% SURFACTANTS 0.25% BREAKERS 0.10% WATER 90.63% GELLING AGENT 0.49% Hydraulic fracturing fluid composition and comingled nature of formation water impacts flowback residual chemistry

245 REUSE OF FLOWBACK & PRODUCED WATER FOR HYDRAULIC FRACTURING IN TIGHT OIL WATER QUALITY GUIDELINES: FLUID COMPTABILITY WATER QUALITY PARAMETER UNITS TARGET RATIONALE ph N/A 6-8 Impacts gel hydration reaction time; ph <6 = too slow; ph >8 = too fast. Iron mg/l <25 Total Hardness mg/l <12,500 Impacts crosslinking performance of the fluid, premature breaking of oxidative breakers & loss of thermal stability of the fluid. Impacts gel hydration of the fluid, crosslinking performance, as well as both temperature and shear stability of the fluid. Oxidizing Agents N/A 0 Impacts fluid stability; results in gel degradation. Reducing Agents N/A 0 Impacts fluid stability; results in gel degradation. Carbonate mg/l <600 Impacts crosslinking reaction time; > 600 mg/l = too slow. Bicarbonate mg/l <600 Impacts crosslinking reaction time; > 600 mg/l = too slow. Silica mg/l <35 Impacts crosslinking performance. Bacteria CFU/mL 0 Impacts fluid stability; results in gel degradation. Source: Residual Breaker Chemistry Source: Residual Crosslinker Chemistry Salinity % <3 Impacts uncoiling effectiveness of the gelling agent and may hinder fluid stability and viscosity. Cleanliness N/A Reasonable Impacts fluid stability; results in gel degradation is solids are a source of bacteria. Sources: Environmental Protection Agency: Van GijtenbeekI, K., Pavylkuchenko, V., Rudnitsky, A., & Pongratz, R. (2006). Stringent Quality Control and Quality Assurance Process: Key to Successful Fracturing Treatments in Western Siberia. SPE Society of Petroleum Engineers PikeI M. (2003, December 15). Fracturing Fluid Properties. Retrieved February 7, 2012, from Trican Well Services Ltd.: M-I SWACO. (2012, May 17). Fracture Water Recycling Feasibility Study and Decision Tool.

246 REUSE OF FLOWBACK & PRODUCED WATER FOR HYDRAULIC FRACTURING IN TIGHT OIL WATER QUALITY GUIDELINES: WATER QUALITY Residual Gelling Agent Dissolved Solids Bacteria Precipitated Solids Emulsions & Dissolved Oil Suspended Solids Dissolved Gases

247 REUSE OF FLOWBACK & PRODUCED WATER FOR HYDRAULIC FRACTURING IN TIGHT OIL May 12-14, 2013 AGENDA PROJECT OVERVIEW OPPORTUNITY ASSESSMENT WATER QUALITY GUIDELINES: CROSSLINKED FLUIDS FLUID CHARACTERIZATION TREATMENT APPROACH METHODOLOGY THE ROLE OF DESALINATION NEXT STEPS ACKNOWLEDGMENTS

248 REUSE OF FLOWBACK & PRODUCED WATER FOR HYDRAULIC FRACTURING IN TIGHT OIL FLUID CHARACTERIZATION CARBONATES (SLAVE POINT) FRAC WATER CARBONATES (SLAVE POINT) FLOWBACK WATER CARBONATES (SLAVE POINT) PRODUCED WATER NUMBER OF SAMPLES UNITS TARGET TOTAL TOTAL TOTAL COUNT N/A CATIONS UNITS TARGET AVERAGE MIN. MAX. STND. DEV. AVERAGE MIN. MAX. STND. DEV. AVERAGE MIN. MAX. STND. DEV. SODIUM (Na) mg/l ,392 12,230 18,270 1,785 37,325 32,400 50,000 7,333 POTASSIUM (K) mg/l CALCIUM (Ca) mg/l <6, ,089 3,230 4, ,793 9,270 14,100 2,091 MAGNESIUM (Mg) mg/l <3, , ,053 1,910 4, BARIUM (Ba) mg/l < STRONTIUM (Sr) mg/l < TOTAL HARDNESS (AS CaCO 3 ) mg/l <15, ,269 11,278 16,408 1,470 42,302 31,207 52,268 8,634 IRON (Fe) mg/l < MANGANESE (Mn) mg/l NO DATA NO DATA ANIONS UNITS TARGET AVERAGE MIN. MAX. STND. DEV. AVERAGE MIN. MAX. STND. DEV. AVERAGE MIN. MAX. STND. DEV. CHLORIDE (Cl) mg/l ,396 27,923 38,651 3,418 88,435 74, ,500 12,114 SULPHATE (SO 4 ) mg/l <1, ,443 1,207 1, , BICARBONATE (HCO 3 ) mg/l < CARBONATE (CO 3 ) mg/l < HYDROXIDE (OH) mg/l < PHYSICAL PROPERTIES UNITS TARGET AVERAGE MIN. MAX. STND. DEV. AVERAGE MIN. MAX. STND. DEV. AVERAGE MIN. MAX. STND. DEV. HYDROGEN SULFIDE (H 2 S) FREQUENCY PRESENT (%) 0% 0% N/A N/A N/A 67% N/A N/A N/A 0% N/A N/A N/A ph STANDARD UNIT (SU) OIL & GREASE mg/l <10 NO DATA NO DATA NO DATA NO DATA NO DATA NO DATA TOTAL DISSOLVED SOLIDS (TDS) mg/l <50, ,335 46,476 64,673 5, , , ,000 18,708 TOTAL SUSPENDED SOLIDS (TSS) mg/l < NO DATA 0 0 NO DATA SPECIFIC GRAVITY N/A REFRACTIVE INDEX n D RESISTIVITY Ohm-Meters

249 REUSE OF FLOWBACK & PRODUCED WATER FOR HYDRAULIC FRACTURING IN TIGHT OIL FLUID CHARACTERIZATION

250 REUSE OF FLOWBACK & PRODUCED WATER FOR HYDRAULIC FRACTURING IN TIGHT OIL FLUID CHARACTERIZATION

251 REUSE OF FLOWBACK & PRODUCED WATER FOR HYDRAULIC FRACTURING IN TIGHT OIL May 12-14, 2013 AGENDA PROJECT OVERVIEW OPPORTUNITY ASSESSMENT WATER QUALITY GUIDELINES: CROSSLINKED FLUIDS FLUID CHARACTERIZATION TREATMENT APPROACH METHODOLOGY THE ROLE OF DESALINATION NEXT STEPS ACKNOWLEDGMENTS

252 REUSE OF FLOWBACK & PRODUCED WATER FOR HYDRAULIC FRACTURING IN TIGHT OIL TREATMENT APPROACH METHODOLOGY: De-oiling & Solids Removal Disinfection Pre-Treatment Dissolved Gasses & Residual Gel Desalination Solids & Soluble Organics Removal Selective Ion Reduction

253 REUSE OF FLOWBACK & PRODUCED WATER FOR HYDRAULIC FRACTURING IN TIGHT OIL TREATMENT APPROACH METHODOLOGY: CARBONATES (SLAVE POINT) FRAC WATER CARBONATES (SLAVE POINT) FLOWBACK WATER CARBONATES (SLAVE POINT) 60% FRAC WATER + 40% FLOWBACK WATER NUMBER OF SAMPLES UNITS TARGET TOTAL TOTAL TOTAL COUNT N/A N/A CATIONS UNITS TARGET AVERAGE MIN. MAX. STND. DEV. AVERAGE MIN. MAX. STND. DEV. AVERAGE MIN. MAX. STND. DEV. SODIUM (Na) mg/l ,392 12,230 18,270 1,785 6,572 4,908 7, POTASSIUM (K) mg/l CALCIUM (Ca) mg/l <6, ,089 3,230 4, ,667 1,323 1, MAGNESIUM (Mg) mg/l <3, , BARIUM (Ba) mg/l < STRONTIUM (Sr) mg/l < TOTAL HARDNESS (AS CaCO 3 ) mg/l <15, ,269 11,278 16,408 1,470 5,830 4,634 6, IRON (Fe) mg/l < MANGANESE (Mn) mg/l ANIONS UNITS TARGET AVERAGE MIN. MAX. STND. DEV. AVERAGE MIN. MAX. STND. DEV. AVERAGE MIN. MAX. STND. DEV. CHLORIDE (Cl) mg/l ,396 27,923 38,651 3,418 14,159 11,169 15,460 1,367 SULPHATE (SO 4 ) mg/l <1, ,443 1,207 1, BICARBONATE (HCO 3 ) mg/l < CARBONATE (CO 3 ) mg/l < HYDROXIDE (OH) mg/l < PHYSICAL PROPERTIES UNITS TARGET AVERAGE MIN. MAX. STND. DEV. AVERAGE MIN. MAX. STND. DEV. AVERAGE MIN. MAX. STND. DEV. HYDROGEN SULFIDE (H 2 S) FREQUENCY PRESENT (%) 0% 0% N/A N/A N/A 67% N/A N/A N/A 27% N/A N/A N/A ph STANDARD UNIT (SU) OIL & GREASE mg/l <10 NO DATA NO DATA NO DATA NO DATA NO DATA NO DATA NO DATA NO DATA TOTAL DISSOLVED SOLIDS (TDS) mg/l <50, ,335 46,476 64,673 5,659 23,989 18,845 26,124 2,264 TOTAL SUSPENDED SOLIDS (TSS) mg/l < SPECIFIC GRAVITY N/A REFRACTIVE INDEX n D RESISTIVITY Ohm-Meters

254 REUSE OF FLOWBACK & PRODUCED WATER FOR HYDRAULIC FRACTURING IN TIGHT OIL SELECTIVE ION REDUCTION DE-OILING & SOLIDS REMOVAL DISINFECTION DESALINATION SOLIDS & SOLUBLE ORGANICS REMOVAL PRE- TREATMENT FLOWBACK OR PRODUCED WATER API SEPARATORS SKIM TANKS TREATERS CLARIFIERS 10,000 PPM OIL > 1,000 PPM TSS OIL & TSS CON C < 3,000 PPM OIL < 1,000 PPM TSS PLATE OR ENHANCED COALESCENCE GAS FLOTATION HYDROCYCLONES MICROFILTRATION (MF) OIL DROPLET DIAMETER 150 m OIL DROPLET 1,000 PPM OIL 500 PPM TSS 50 m OIL DROPLET 10 PPM OIL 500 PPM TSS 25 m PARTICLE SIZE DESORPTION MEMBRANE FILTRATION (GTM) BIOLOGICAL TREATMENT CHEMICAL OXIDATION > 0 PPM H2S > 0 PPM GEL H2S & RESIDUAL GELLING AGENT CON C 0 PPM H2S 0 PPM GEL MEDIA FILTRATION MEMBRANE FILTRATION (UF) ADSORPTION FILTRATION CHEMICAL OXIDATION m OIL DROPLET 10 PPM OIL 10 PPM TSS 5-25 m PARTICLE SIZE PARTICLE SIZE & TSS CON C 10 m OIL DROPLET 10 PPM OIL 10 PPM TSS 5 m PARTICLE SIZE ELECTROCOAGULATION ION EXCHANGE MEMBRANE FILTRATION (NF) CHEMICAL TREATMENT 10 PPM IRON > 0 PPM OXIDIZING AGENTS > 0 PPM REDUCING AGENTS OXIDIZING & REDUCING AGENTS CON C 10 PPM IRON 0 PPM OXIDIZING AGENTS 0 PPM REDUCING AGENTS MECHANICAL VAPOR RECOMPRESSION (MVR) THERMAL VAPOR RECOMPRESSION (TVR) SODIUM MFI MEMBRANES 30,000 PPM AS NaCl SALINITY CON C 30,000 PPM AS NaCl CHEMICAL TREATMENT UV STERILIZATION > 0 CFU/ML BACTERIA 0 CFU/ML CON C : CONCENTRATION REUSABLE WATER

255 REUSE OF FLOWBACK & PRODUCED WATER FOR HYDRAULIC FRACTURING IN TIGHT OIL May 12-14, 2013 AGENDA PROJECT OVERVIEW OPPORTUNITY ASSESSMENT WATER QUALITY GUIDELINES: CROSSLINKED FLUIDS FLUID CHARACTERIZATION TREATMENT APPROACH METHODOLOGY THE ROLE OF DESALINATION NEXT STEPS ACKNOWLEDGMENTS

256 REUSE OF FLOWBACK & PRODUCED WATER FOR HYDRAULIC FRACTURING IN TIGHT OIL THE ROLE OF DESALINATION: WATER REQUIREMENTS Activity Average Water Requirements Conventional Oil Drilling & Completions Non-Saline Saline Conventional Oil Production Non-Saline Saline 500 m 3 : oil well 0 m 3 : oil well 0.70 m 3 : 1.0 m 3 oil 0.24 m 3 : 1.0 m 3 oil Source: CAPP. (2011). Water Conservation, Efficiency and Productivity Plan Upstream Oil and Gas Sector. Retrieved April 5, 2013 from:

257 REUSE OF FLOWBACK & PRODUCED WATER FOR HYDRAULIC FRACTURING IN TIGHT OIL THE ROLE OF DESALINATION: CRUDE OIL RESERVES 50,950,658 m 3 of Conventional Oil Production in 2011 Sources: CAPP. (2013). CAPP Canadian Crude Oil Production Forecast Retrieved April 5, 2013 fromhttp:// Centre for Energy. (2013). Energy Facts & Statistics -Maps of Canada- Canada - Crude Oil. Retrieved April 5, 2013 from:

258 REUSE OF FLOWBACK & PRODUCED WATER FOR HYDRAULIC FRACTURING IN TIGHT OIL Number of Completed Oil Wells THE ROLE OF DESALINATION: COMPLETED OIL WELLS 7,000 North West Territories British Columbia Alberta Saskatchewan Manitoba East Coast - Offshore 6,000 5,000 5,985 Oil Wells Completed in ,000 3,000 2,000 1, Source: CAPP. (2013). CAPP Statistic Handbook Oil Wells Completed in Canada. Retrieved April 5, 2013 from:

259 REUSE OF FLOWBACK & PRODUCED WATER FOR HYDRAULIC FRACTURING IN TIGHT OIL THE ROLE OF DESALINATION: WATER REQUIREMENTS Activity Average Water Requirements Conventional Oil Drilling & Completions Calculated Total Water Requirements Based on 2011 Activity 5,985 Oil Wells Completed Non-Saline 500 m 3 : oil well 2,992,500 m 3 /year Conventional Oil Production 1 Saline 0 m 3 : oil well 0 m 3 /year 50,950,658 m 3 of Conventional Oil Production Non-Saline 0.70 m 3 : 1.0 m 3 oil 51,164,896 m 3 /year Saline 0.24 m 3 : 1.0 m 3 oil 17,542,250 m 3 /year 1 EOR accounts for most of the water used in conventional oil production (CAPP, 2011, pg. 30) Sources: CAPP. (2013). CAPP Canadian Crude Oil Production Forecast Retrieved April 5, 2013 fromhttp:// CAPP. (2013). CAPP Statistic Handbook Oil Wells Completed in Canada. Retrieved April 5, 2013 from: CAPP. (2011). Water Conservation, Efficiency and Productivity Plan Upstream Oil and Gas Sector. Retrieved April 5, 2013 from:

260 REUSE OF FLOWBACK & PRODUCED WATER FOR HYDRAULIC FRACTURING IN TIGHT OIL May 12-14, 2013 AGENDA PROJECT OVERVIEW OPPORTUNITY ASSESSMENT WATER QUALITY GUIDELINES: CROSSLINKED FLUIDS FLUID CHARACTERIZATION TREATMENT APPROACH METHODOLOGY THE ROLE OF DESALINATION NEXT STEPS ACKNOWLEDGMENTS

261 REUSE OF FLOWBACK & PRODUCED WATER FOR HYDRAULIC FRACTURING IN TIGHT OIL NEXT STEPS: CONDUCT FIELD BASED TESTING Validate proposed decision tree treatment methodologies Confirm or disprove proposed water quality guidelines required for crosslinked fluid compatibility Monitor for additional treatment concerns; both fluid compatibility issues & reservoir concerns Quantify environmental improvements; reduced greenhouse gas emissions, reduced fresh water dependency, etc. Quantify field based treatment costs & cost variability

262 REUSE OF FLOWBACK & PRODUCED WATER FOR HYDRAULIC FRACTURING IN TIGHT OIL May 12-14, 2013 AGENDA PROJECT OVERVIEW OPPORTUNITY ASSESSMENT WATER QUALITY GUIDELINES: CROSSLINKED FLUIDS FLUID CHARACTERIZATION TREATMENT APPROACH METHODOLOGY THE ROLE OF DESALINATION NEXT STEPS ACKNOWLEDGMENTS

263 REUSE OF FLOWBACK & PRODUCED WATER FOR HYDRAULIC FRACTURING IN TIGHT OIL FUNDING & RESEARCH SUPPORT ACKNOWLEDGMENTS Wasylishen, R. & Fulton, S. (2012, June 28). Reuse of Flowback & Produced Water for Hydraulic Fracturing in Tight Oil. Available online at the Petroleum Technology Alliance Canada:

264 REUSE OF FLOWBACK & PRODUCED WATER FOR HYDRAULIC FRACTURING IN TIGHT OIL QUESTIONS?

265 May 12-14, Innovative Technology to Produce Green Petroleum Presented by: J. Simard, GENIVAR M. Pellegrino, GENIVAR R. Nieto, PRE J.H.Castañeda, PRE 1

266 Millions BPD Rubiales Field OIL WATER YEAR Oil Production Capacity: BPD of heavy oil (12 API) Current Situation BPD of water ( m 3 /d ) Expected in 3 Years BPD of water ( m 3 /d ) 2

267 Rubiales Field Injection Conditions 500 to 900 m (1 600 to ft) psig (100 bar) 3

268 Existing Water Treatment Process Oil&Grease = mg/l Temp. = 60 C Oil&Grease mg/l Oil&Grease 50 mg/l Oil&Grease = 1 10 mg/l T. Hydrocarbons = 1 5 mg/l TSS = 5 20 mg/l PRODUCED WATER SKIM TANKS IAF UNITS NUTSHELL FILTERS DISPOSAL BY INJECTION 4

269 New Treatment PRODUCED WATER EXISTING WATER TREATMENT NEW TREATMENT TREATED WATER TO IRRIGATION WASTEWATER TO INJECTION Water quality following existing treatment Water quality goal for irrigation purpose Main Parameters Unit Treated water quality Main Parameters Unit Required water quality for irrigation ph Temperature C Turbidity NTU Total suspended solids (TSS) mg/l 20 Total dissolved solids (TDS) mg/l 1300 Chlorides mg/l 150 Sodium mg/l 350 Silica (SiO 2 ) mg/l Total Hydrocarbons mg/l 1-5 Oil / Grease mg/l 1-10 ph Temperature C N/A Turbidity NTU N/A Total suspended solids (TSS) mg/l N/A Total dissolved solids (TDS) mg/l 240 Chlorides mg/l 70 Sodium mg/l 65 Silica (SiO 2 ) mg/l N/A Total Hydrocarbons mg/l 0,5 Oil / Grease mg/l 0,5 5

270 Proposed Solution Reverse Osmosis (RO) is proven technology that can be applied in order to reach the required concentration of minerals. Challenges RO system High Water Temperature High Oil and Hydrocarbons Content High Fouling Rate High Recovery (at least 90 %) Short Life Expectancy of Membranes Therefore: Pre-treatment RO TO IRRIGATION 90% Pretreatments systems under study: 1) UF - RO 2) Selfcleaning Filters - RO 3) DAF - Sand Filter - RO TO INJECTION 10% 6

271 Pilot System 1 Coagulant NaOCl HCl AS SBS FEED WATER 1S1 1S2 125 µm SELF- CLEANING SCREEN 1S3 COAGULATION TANK PRESSURIZED UF 1S4 1 µm 1S5 REVERSE OSMOSIS 1S7 CONCENTRATE 1S6 TREATED WATER Type membrane Parameters UF RO Membrane configuration Dow SFP-2860 pressurized 7 membranes Dow Filmtec XFRLE-400/34i low-fouling resistance 1 st stage = 2 PVs with 4 elements 2 nd stage = 1 PV with 4 elements 3 rd stage =1 PV with 4 elements Membrane flux (LMH) (operation), 16.7 (design) Operation pressure (bar) beginning and end of cycle 0.6 to to 10.3 Recovery (%) Feed flow (m³/d) Total concentrate flow (m³/d) N/A 29 Total permeate flow (m³/d) N/A 176 Recirculation flow (m³/d) N/A 44 Operation cycle time (min) 30 N/A RO with recirculation 7

272 System 1: Pretreatment Results OIL AND GREASE (mg/l) Feed Water UF Permeate Cartridge Outlet TOTAL HYDROCARBONS (mg/l) Feed Water UF Permeate Cartridge Outlet TOTAL SUSPENDED SOLIDS (mg/l) Feed Water UF Permeate Cartridge Outlet > 78% REMOVAL % REMOVAL D.L. > 44% REMOVAL D.L. 0.5 D.L OBJECTIVES Detection limit! 8

273 System 1: RO Results SODIUM (mgna + /L) Feed Water RO Permeate CHLORIDE (mgcl - /L) Feed Water RO Permeate TOTAL DISSOLVED SOLIDS (mg/l) Feed Water RO Permeate OBJECTIVES 95-97% SALT REJECTION 9

274 BARS System 1: UF Normalization Feed Pressure Permeate Pressure TMP bars DAY 10

275 System 1: RO Permeate Flow 12 Norm. Permeate Flow (m 3 /h) Operating Time (days) 11

276 System 1: RO Delta P bars Operating Time (days) 12

277 System 1: RO TMP bars Operating Time (days) 13

278 Pilot System 2 coagulant HCl AS SBS FEED WATER 2S1 25 µm SELF- CLEANING SCREEN 7 µm SELF- CLEANING SCREEN 1 µm REVERSE OSMOSIS 2S5 TREATED WATER 2S2 2S3 2S4 2S6 CONCENTRATE Parameters Type membrane Membrane configuration Membrane flux (LMH) RO Dow Filmtec BW30 XFR-400/34i + XFRLE-400/34i 1 st stage = 2 PVs with 4 elements 2 nd stage = 1 PV with 4 elements 3 rd stage = 1 PV with 4 elements 11.5 (operation), 16.7 (design) Feed flow (m³/d) 163 Operation pressure (bar) beginning and end of cycle Recovery (%) 86 Total concentrate flow (m³/d) 22 Total permeate flow (m³/d) 141 Recirculation flow (m³/d) 72 RO with recirculation AMIAD FILTERS: 25 µ = SAF1500 type 7 µ = AMF 36 K type 14

279 System 2: Pretreatment Results D.L. 0.0 OIL & GREASE (mg/l) Feed Water 1 Microns Filters > 48% REMOVAL D.L. 0.0 TOTAL HYDROCARBONS (mg/l) Feed Water 1 Microns Filter > 71% REMOVAL D.L. TOTAL SUSPENDED SOLIDS (mg/l) Feed Water 25 Microns filters 7 Microns filters 1 Microns filters > 94% REMOVAL OBJECTIVES Detection limit! 15

280 System 2: RO Results SODIUM (mgna + /L) Feed Water RO Permeate CHLORIDE (mgcl - /L) Feed Water RO Permeate TOTAL DISSOLVED SOLIDS (mg/l) Feed Water RO Permeate OBJECTIVES 94-98% SALT REJECTION 16

281 System 2: RO Permeate Flow Norm. Permeate Flow (m 3 /h) Operating Time (days) 17

282 System 2: RO Delta P bars Operating Time (days) 18

283 System 2: RO TMP bars Operating Time (days) 19

284 Pilot System 3 FeCl 3 HCl AS SBS FEED WATER 3S1 3S2 3S3 CLARIFIED SAND FILTERED DAF WATER WATER FILTER TANK TANK 0,3 µm 3S4 0,1 µm 3S5 REVERSE OSMOSIS 3S7 CONCENTRATE 3S6 TREATED WATER Parameters DAF Sand Filters Operation flowrate (m/h) Feed flow (m³/d) Operation cycle time (hours) N/A 24 h 20

285 System 3: Pretreatment Results OIL AND GREASE (mg/l) Feed Water DAF SAND FILTERS 1.0 TOTAL HYDROCARBONS (mg/l) Feed Water DAF > 42% REMOVAL > 33% REMOVAL SAND FILTERS TURBIDITY (NTU) INFLUENT DAF SAND FILTERS 56% REMOVAL 0.5 D.L D.L OBJECTIVES Detection limit! 21

286 Conclusions Water Quality Objectives are easily met Problems with UF membrane fouling and degradation Problems with RO membrane fouling: High Recovery Low efficiency for the removal of Oil and Grease and Hydrocarbons in the pretreatment stage Modification of pretreatment system in order to increase the removal efficiency of Oil and Grease and Hydrocarbons COAGULATION SAND FILTER BIOLOGICAL TREATMENT UF RO 22

287 Future Goal Zero re-injection process solution PT RO 90% TOTAL RECOVERY > 99% PT RO 80% BC 80% 23

288 May 12-14, 2013 Thanks to: THE END Negin Salamati, GENIVAR Inc. QUESTIONS? 24