Optimizing Water Supply, ReUse and Disposal for Hydraulic Fracturing. Bill Berzins, M.A.Sc. P.Eng.

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1 Optimizing Water Supply, ReUse and Disposal for Hydraulic Fracturing Bill Berzins, M.A.Sc. P.Eng.

2 Cost and Risk Are Managed at Multiple Points in the Supply Chain

3 Portfolio of Projects Montney A: complete water strategy for 10,000 m 3 /day water supply including licensing, permitting, intake, pumping system, infield water management, ponds, pumping Montney B: 10,000 m 3 /day intake, pumping stations, pipeline design Montney C: 5,000 m 3 /day water loading station for flowback and produced water storage/recycling Cordova A: 10,000 m 3 /day intake, license and approvals Montney D: 3,500 m 3 /day intake, pipeline, pumping station, approvals Bakken A: 2,000 m 3 /day full service terminal design Permian A: 350 gpm drilling mud dewatering and recycling design-build Montney E: 19 m 3 /minute flowback filtration and recycling system Cynthia A: 750 m 3 /day: water injection modules Montney F: 750 m 3 /day produced water treatment and injection facility SAGD A: 500 m 3 /day drinking water plant SAGD B: 750 m 3 /day water and wastewater plant Montney G: water management strategy for 1 million m 3 /year including sour flowback reuse

4 Life Cycle of Water Key Deci$ion Point$ Water Management Plan Sourcing Strategy Conveyance and Storage Flowback and Produced Water ReUse Disposal

5 Challenges to Water Strategy Intermittent availability of surface water Changing regulations Speed of shift from exploration to harvesting often faster than the supply chain (including approvals) can react Inventory rapidly accumulates in absence of strategy Flowback is a sourcewater-connatewater-gas-iron-bariumstrontium- 226 radium-condensate-polymer-bacteria mix that constantly evolves

6 Sourcing Permanent allocation becomes a strategic asset Well-crafted water strategy (especially re-use) accelerates licensing Probabilistic forecast needed to avoid over-investment in infrastructure, especially storage Produced Flowback Non-Saline Brackish Surface

7 Conveyance and Storage Careful selection of pipeline infrastructure can minimize footprint at wellpad Inventory of rental pumps/power supply supports exploration phase rather than harvesting phase

8 Re-Use Physical-chemical makeup changes dramatically depending upon handling strategy Water-gas-condensate-TDS-TSS mix that undergoes oxidation, precipitation and separation throughout life-cycle Exploration vs harvesting chemistry different Evolution of frac formulation drives will improve Turndown ratios can be as high as factor of 10 times during normal operations

9 Idealized Process Flow Oxidation (Fe=1): O 2 (.14), H 2 O 2 (.5), Cl 2 (.62), O 3 (.86), ClO 2 (1.2) Separation: DAF, IGF, API, storage Filtration: back-washable strainer, back-washable media, cartridge, ceramic Factor of 10 turn-down with on-line adjustment

10 NORM Considerations NORM measured in scale and sludge accumulation (c-ring liner at disposal facility, scale in tubulars) Observed activity levels 1,500 Bq/g in bag filters and 300 Bq/l in flowback Distribution is not particularly well-documented: reported at Groundbirch et al Unconditional Derived Release Limits UDRL 226 Ra: Aqueous 5 Bq/l, Solid 300 Bq/kg, Air 0.05 Bq/m3

11 Traditional Hub Designs Shell Gundy Encana Saturn

12 Portfolio of Modular Hub Designs 2,500 m3/day Oxidizer-DAF-Filter-Condition 2,500 m3/day Filter-pH-Reverse Osmosis Discharge to Stream 1,000 m3/day Oxidizer-DAF-Filter-Condition

13 Canbriam 5,000 m3/day Water Hub

14 Disposal Options Deep well disposal options limited in tight gas fairway Evaporation-MVR emerging option at gasproducing facilities Sour water reuse options available within H 2 S fairway

15 Conclusions Water strategy and demand profile necessary to guide investment Decisions at exploration stage should support execution of harvesting stage Strategic investment in licensing and infrastructure can achieve payback in <1 year Modularity and fast-track essential to responding to evolution of multiphase

16 Contact information: Bill Berzins, M.A.Sc., P.Eng