Brackish Water and Produced Water in New Mexico Western Governor s Association September 19, 2014, Norman, Oklahoma

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1 Brackish Water and Produced Water in New Mexico Western Governor s Association September 19, 2014, Norman, Oklahoma David Martin, Secretary New Mexico Energy, Minerals, and Natural Resources Dr. Jeri Sullivan Graham Los Alamos National Laboratory Unclassified LA-UR

2 New Mexico Recoverable Water Initiative NM Drought Task Force Chair, State Engineer Scott Verhines Recoverable Water Initiative Chair, Secretary EMNRD, David Martin Brackish Water Subcommittee Work Group Produced Water Subcommittee Work Group Dr. Jeri Sullivan Graham, Work Group Coordinator

3 2004 Recommendations still valid today The Water Development Work Group will: Identify ways to develop new sources of water, including treating brackish water reserves and wastewater to extend the life of existing water supplies. Identify water-related infrastructure, management, and investment needs and opportunities to leverage federal and other funding. Promote collaboration with and strategic focusing of the research and development of the state s national laboratories and research institutions to address the state s water challenges and to bring to the state technical approaches to enhancing water supply and management. *NM Brackish Groundwater Assessment Program Workshop, January 15, 2004; New Mexico State Water Plan (2003)

4 Key Challenges to Use of PW Availability-right place, right time, right volume Treatment-NORM, throughput, solids, filtration, organics Costs to transport and treat Infrastructure investment Risk perception and use acceptance Industrial Uses-within the oil and gas industry Other Human Uses-irrigation, industry, drinking Environmental sustainability Handling salty water and waste from treatment (concentrate) Non-impingement on fresh water resource-surface and subsurface Policies-new uses for former wastes Regulations-for use outside of oil and gas industry Partnerships with Industry and Localities

5 Technology to Reduce Fresh Water Consumption in Oil and Gas Production NM Legislative Committees and Produced Water Work Group Reduce Use/Inventory Control Fresh Water Management Team Development & Management of Water Resources-Company Initiatives Fresh Water Baseline Obtained water analysis for all fresh water wells utilized Populating database Will monitor fresh water quality and fluid levels on semi-annual basis Corporate-wide Water Management Team Richard Crawford NM Basins Water Project Coordinator Develop Water Reclamation Best Practices manual Outreach to Municipal and individual Fresh Water Stakeholders Bench Marking (Permian Basin Water Management Council Member)

6 Technology to Reduce Fresh Water Consumption-Treatment Traditional Treatment Methods Devon Energy Treatment goal: reduce biological load, remove iron and mineral scale Macrofiltration, aeration/mixing, biocide, microfiltration, Dionex Up to 350,000,000 gal fresh water saved per year by 2016 (projected) Water reused for frac jobs

7 Technology to Reduce Fresh Water Consumption-Treatment Traditional Treatment Methods Bopco Petroleum Treatment goal: 100% PW reuse; retain cross-link gel efficiency Economics make sense for a water-limited region and contiguously developed land units Information courtesy of Kent Adams, VP, Bopco LP

8 Technology to Reduce Fresh Water Consumption-Treatment Traditional Treatment Methods Mack Energy Corporation H 2 S, Iron Sulfide, TSS removal goals In-pit coagulation (AcroClear), mixing, filtration Outside validation/verification of environmental benefits for system 950,000 gallons FW saved per frac job Goal is to use 100% produced water, 4,000,000 gallons/month. Cut truck traffic by 95%-336,000 miles/year Image Courtesy of Lee Livingston, Mack Energy

9 Technology to Reduce Fresh Water Consumption-Treatment Innovative Treatment Methods ThermoEnergy Demonstration with Concho Resources Multiple-Effect Distillation with Thermal Vapor Compression A desalination process using thermal treatment methods Maximum water recovery (ZLD) Oil and grease removal TDS <500 mg/l Boron <1 mg/l Concentrated Brine reuse Economic-Treatment below $3/barrel 5,000 BBL/day to 100,000 BBL/day systems Process high influent TDS (> 150,000 mg/l) >> than other evaporation methods Energy Efficient multiple effect design 60-90% water recovery

10 Energy-Water Nexus at DOE DOE Water Energy Tech Team Over 20 participants from all major DOE offices have worked for over a year and a half to develop a Water Energy Program Plan Water Energy Program Plan Seven sections, 250 pages, June, 2014 Very detailed and comprehensive report that includes: Landscape for regional and national decision making Sections on RD&D needs Water for energy: generation, exploration Energy for water: transport, treatment Policy issues and considerations Stakeholder engagement Dramatic Progress in the Water- Energy Nexus Is Required and Attainable -DOE WETT

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12 Objective: Offset 100% of the volume of fresh water used: PROTECTION REDUCTION INNOVATION CONSERVATION

13 GE Integrated Water Management Facility For Oil & Gas Well Field Operations Well Field Gas LOGISTICS WRAP - Storage - Pipelines - Well Field Delivery Saline Aquifer FRESH WATER Well Field Flowback & Produced Waters SALINE AQUIFER TREATMENT - Remove SO4 & Reduce TDS - Treat Large volumes PRODUCED WATER TREATMENT - Reduce disposal well use - Recycle of well field fluids for reuse - Decrease withdraw from aquifers - Create beneficial use well field brines POWER GENERATION - Provide reliable, low cost, power to well field operations - Provide power to integrated treatment facility - Eliminate high cost power congestion charges - Monetize stranded well field gas - Low TDS Water - Low SO4 Water - Blending Stock for SG Water SG (Specified Grade) Water - Low SO4 Water in TDS Ranges of 1,000 50,000 mg/l 10 # Clean Brines - Well hold in Brines - Formation Stabilizer - Drilling Mud Viscosifier POWER OUT Integrated Project Operational Sections

14 Western Governors' Drought Forum Managing Drought in the Energy Sector September 18-19, 2014

15 Energy in Nevada Nevada is an energy leader Policy Regulation Renewables Energy Efficiency Demand Side Management Reliability Innovation 14 DRAFT ATTORNEY CLIENT PRIVILEGED

16 Nevada's Fossil Energy Transition DRAFT ATTORNEY CLIENT PRIVILEGED

17 Energy Innovation DRAFT ATTORNEY CLIENT PRIVILEGED