Summary of Advances: Frac Water Treatment and Hydrocarbon Recovery from Oil-Based Drilling Fluids

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1 Summary of Advances: Frac Water Treatment and Hydrocarbon Recovery from Oil-Based Drilling Fluids Randy D. Horsak, PE Carl L. Brassow, PE JD KlarTek, LLC Houston, Texas USA Presented at Texas Association of Environmental Professionals Houston, Texas USA October 11, 2102

2 Two Different But Related Issues in the Oil Field: Oil-Based Drilling Muds Frac and Produced Water Treatment

3 Oil-Based Drilling Fluids What are they? Drilling fluids that use primarily hydrocarbons (i.e., oil and asphaltines) as carrier fluid in the mud design. Why are they of environmental concern? After the muds are spent they must be disposed in a safe manner. Why are they of economic concern? Cost of hydrocarbon, transportation, and disposal are high. What has been done historically? Generally left on site in pits or lagoons, landfarmed,, or landfilled. What does the future hold? New technologies are being developed to recover and reuse both hydrocarbons and solids.

4 Overview of PORT System Proprietary method of recovering hydrocarbons from problematic wastestreams, primarily E&P wastestreams Fixed base and transportable systems Recover hydrocarbons for resale Remaining solids capable of recovery and reuse Process water is recoverable and reusable in process

5 Candidate Wastes Oil-based cuttings Oil-based drilling fluids Tank bottom sludge Tar sands tailings Basic sediment and water waste Oily reserve pit wastes Oil contaminated soils

6 Benefits Modest space requirements Low power requirements Very high recovery ratios Solid residuals are recyclable Cost effective Green technology

7 Waste Source Recovered Water / Chemical Mix Water / Chemical Mix Receiving Equalization Slurry Conditioning Pre-mix Tank Process Mixing Tank Treated Water / Chemical Storage Fluids/Solids Separation Coarse Solids Gradation Oil/Water/ Fine Solids Separator / Retention Treated Water Storage Chemical Storage Solids Storage Oil Storage Water Treater Water / Solids (Fines) Mix Simplified Process Flow Diagram of Proprietary Oil Recovery System - Proprietary -

8 Frac and Produced Water What are they? Frac water is the carrier water and all additives used to frac a formation. Produced water is the naturally occurring formation water that comes c to the surface with the produced oil. Why are they of environmental concern? Frac flow back water contains additives and hydrocarbons contended ed to cause contamination of drinking water. Produced water is generally very saline and requires disposal. Why are they of economic concern? Cost of treatment, transportation, and disposal. What has been done historically? Discharges to surface water courses, left in pits, and lagoons. What does the future hold? New treatment technologies to treat and reuse.

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15 Environmental Concerns Water is a valuable resource Many oil shale plays are in arid climates Potential for groundwater contamination Trucking of large volumes of returned water Disposal of large volumes of returned water Availability of reuse

16 Frac Water Treatment What is this? In simple terms it is processing the water to achieve an acceptable quality. Why is it of environmental concern? Different acceptable levels have different impacts on the environment. Why is it of economic concern? Different acceptable quality has direct impact on cost of treatment. What has been done historically? Little if any treatment then discharge or retention in pits or lagoons. What does the future hold? What does the future hold? Advanced treatment approaches to meet variable acceptance levels.

17 Fracking Technology Symposium

18 Before and After

19 Before and After

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24 Equipment Equipment Finance Finance Cost Cost Field Field Operations Operations Profit Profit Royalty Royalty Engineering Engineering

25 Parametric Cost Analysis

26 Engineering Cost Model Capital Costs: Capacity Configuration Treatment Criteria OM&R Costs: Operating Labor Supplies and Consumables Replacement Cost of Money: Inflation Discount Rate Other Cost Model Evaluation Components

27 Hint

28 For Additional Information: Randy D. Horsak, PE Carl L. Brassow, PE JD KlarTek, LLC Houston, Texas USA (281)