Shale Gas Water Water Management Consortiums: Marcellus and Barnett Regions

Shale Gas Water Water Management Consortiums: Marcellus and Barnett Regions Tom Hayes, GTI GWPC Water/Energy Symposium Pittsburgh, PA September 27, 2010 1

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Challenges Produced Water (PW) comprises >90% of total waste volume from gas development Produced Water (PW) is at ground zero in debates over unconventional gas development Many areas of the U.S. are running out of reinjection capacity (e.g. Rocky Mountain States, Appalacian areas, CBNG basins) Energy planners and stakeholders need alternatives for PW mgt to avoid constraints to energy production

Major Efforts on Shale Gas Produced Water Management Industry Water Conservation Consortia Barnett Shale (BSWCMC) Appalachian Shale (ASWCMC) Marcellus Shale Coalition Individual Developer Company Testing of Available Know-How RPSEA Program NETL-DOE Program NYSERDA Project on Shale Gas Issues 5

Major Efforts on Shale Gas Produced Water Management Industry Water Conservation Consortia Barnett Shale (BSWCMC) Appalachian Shale (ASWCMC) Marcellus Shale Coalition Individual Developer Company Testing of Available Know-How RPSEA Program NETL-DOE Program GTI Shale Gas Water Mgt GE Pretreatment R&D CSM Tech Assessment NYSERDA Project on Shale Gas Issues 6

Barnett Shale and Appalachian Shale Water Conservation Committees Demographic Surveys on Water Practices Identification of the Best Opportunity for Water Conservation Expert Panels on Water Issues and Mgt Defining Water Conditioning Targets Establishing Present Day Best Practices Prioritizing R&D Directions Outreach to Stakeholders 7

Components in Flowback Water Constituents of Produced Water + Frac Job Additives

Natural Gas Industry Water Use in the Barnett Shale 10% <1% 89% Total Water Projected Use = 10,905 Ac-Ft (2006 Estimate) Frac Jobs Drilling Other

Water Sources Used in the Barnett Shale for Natural Gas Development 43% <1% 56% Total 2006 Water Use = 10,905 Ac-Ft/yr Daily Use = 9.7 MG Groundwater Surface Water Reuse and Recycle

Freshwater Users in the Barnett Shale Region 2005 2010 (Projected) Annual Water Use 1000 s Acre-Feet 1500 1000 500 0 Municipal Steam Electric Irrigation Manufac turing Livestock Mining Barnett Drilling Natural Gas Development

Fountain Quail Mechanical Vapor Recompression Unit for Flowback Water Treatment and Reuse At Devon Sites 6,000 bbls/d/site AquaPure Mfgr Operated by Fountain Quail Obtaining field Performance Information 12

Encana Ultrafiltration

Electrocoagulation Testing 14

Reverse Osmosis Trials in the Barnett

Currently Available Innovative Brine Management Technology Options Fountain Quail (Thermal Processing for Water Recovery) 212 Resources (Thermal Processing for Water Recovery) GE Thermal Processing (Thermal Processing for Water Recovery) Intevras (Heat Recovery from Compressor Engines for Brine Evap) GeoPure (UF / Reverse Osmosis) Ecosphere Technologies (Ozonation and Reverse Osmosis)

Example Products from the Consortia Companies Survey Results Water Data from Grab Samples Water Availability Assessment Reports Proceedings of the Frac Job Expert Panel Information from the review of equipment vendors and solution providers Identified Friction Reducers that Perform Well at High TDS Levels R&D Planning Reflecting Industry Priorities Website: www.barnettshalewater.org 17

Recent Results from Sampling and Analysis of Flowback Water funded by the Marcellus Shale Coalition

New Data on Sampling and Analysis of Flowback Water Funding from MSC and ASWCMC Industry Consortia Sampling from 19 locations Initiated and completed in 2009 Includes general chemistry and detailed analysis of constituents of interest Lists of Constituents of Interest provided by the USEPA, WV-DEP and PA-DEP Over 250 determinations performed on samples

Summary of Results Flowback water characteristics are consistent with ranges observed with conventional produced water Low suspended solids and TOC Man-made chemicals of concern are at non-detect levels. BTEX and PAHs are at trace levels. Oils and greases are at non-problem levels, but some control may be needed Soluble organics are highly biodegradable Heavy metals are lower than in Mun Sludge

Concentration of TDS in Flowback Water with Time During Well Completion: Location A Total Dissolved Solids, mg/l 250000 200000 150000 100000 50000 0 0 20 40 60 80 100 Days Following Hydraulic Fracturing

Conceptual Example of Salt Concentration Versus Time in Flowback Water Collected with Time During Well Completion Total Dissolved Solids, mg/l 120000 100000 80000 60000 40000 20000 0 TDS Builds up --- But Flow Rate Decreases. Therefore, early 20-50% of FB Water may be low in TDS 0 5 10 15 Days Following Hydraulic Fracturing Flow Rate

Categories of Chemicals of Concern Volatile Organics Semivolatile Organics Pesticides Organophosphorus Pesticides PCBs Metals

Summary of Results of Volatiles Measurements in 14-Day Samples

Possible Treatment Needs Brine Volume Reduction with Water Recovery (for reuse in future frac jobs) Removal of Polymers (Friction Reducer Compounds) Scale Control (Including NORM Scale) Oil and Grease Control Soluble Organics: Decrease Total Organic Carbon Control of suspended solids Microbial Control

Generic Flowsheet of Management Options Flowback Water or PW Well 1 Well 2 Near-Well Water Mgt Decisions By-Pass Blend Completion By-Pass Conditioning Options Make-up Water Pre- Concentrate? Yes Pretreat Options Water Recovered For Reuse No Concentator Alternatives Thermal Membranes Hybrid Processing Etc. Final Disposal or Utilization Options Deep Well Injection (Class II) of Brines Conventional Disp at POTWs By-Product Salt Recovery Landfill Ocean Disposal Etc. In-Field Near-Field Far-Field Within 2 mi Within 20 mi Within 200 mi

RPSEA Funded Work Barnett and Appalachian Shale Water Management and Reuse (GTI) 27

Deliverables Database on Shale Gas FB and PW Compositions Conceptual designs for low TDS FB water segregation and mgt Guidance Document on best practices for alternate water source utilization (BEG) Engineering decision tool on mechanical vapor recompression evaporative treatment processing Electrically driven processing for lowenergy partial demineralization New Generation of coated membranes for improved UF/NF/RO capabilities (UT) 28

Benefits and Impact to Industry Reduce industry demand of fresh water for shale gas developments Ease water availability constraints to well development and completion. Decrease environmental impacts due to water transportation (i.e. air impacts, fugitive dust, traffic, and carbon footprint) Reduced cost of water processing for reuse of flowback water for future well completions. 29

For more information Contact Tom Hayes (847.768.0722) Email: tom.hayes@gastechnology.org