Concept Report / Preliminary Concept Report / Preliminary Technical and Cost AnalysisTechnical and Cost Analysis

Delivery of Treated Produced Water Delivery of Treated Produced Water from Indian Basin and Dagger Draw to from Indian Basin and Dagger Draw to

the Pecos River, Eddy County, New the Pecos River, Eddy County, New MexicoMexico

R.T. Hicks ConsultantsR.T. Hicks ConsultantsBohannon-HustonBohannon-Huston

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Scope of WorkScope of Work• Treatment and Delivery of Produced

Water to the Pecos River– #1 Below Brantley Dam– #2 at Dark Canyon– #3 at Malaga Bend

• Obtain Preliminary EPA Effluent Limits• Conceptual Design of Treatment Facility• Infrastructure Plan for All Alternatives /

Preliminary Maps of Alternatives• Cost Estimates for Alternatives /

Compare to Existing Disposal – Injection

Indian Basin

Dagger Draw

Carlsbad

Pecos Water QualityPecos Water Quality

Produced Water QualityProduced Water Quality

• 6,500 – 12,000 Total Dissolved Solids

• Hydrogen Sulfide – 378 mg/L

• NORM – Ra 226+228 – 2500 pC/L

• Boron – 2 mg/L

• Free Oil – 100 mg/L

Produced Water Cations and Produced Water Cations and AnionsAnions

• Calcium 685 mg/L

• Magnesium 293

• Sodium 3,281

• Potasium 68

• Bicarbonate 1,049

• Sulfate 2,121

• Chloride 4,384

Indian Basin: 70K bbl/dayIndian Basin: 70K bbl/dayDagger Draw: 21K bbl/dayDagger Draw: 21K bbl/day

About the Same Flow as Black RiverAbout the Same Flow as Black River

Average Monthy Day (MGD) - Combined Dagger Draw and Indian Basin

0

2

4

6

8

10

12

14

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Concept Study Approach – Concept Study Approach – Marriage of Two OptionsMarriage of Two Options

Scale-up Existing Oil Field Technology/Methods – to 60,000 bbl/day

Use Large-Scale Water Treatment Technology Approach and Modify to Meet Produced Water Chemistry Realities

Pipeline ElementsPipeline Elements• Brantley Dam Alignment

– 16 mi– 18-20” diameter– Includes pump station

• Dark Canyon Alignment– 27 mi– 20-30” diameter– Gravity pipeline

• Malaga Bend Alignment– 51 mi– 20-24” diameter– Gravity pipeline

Option AOption A• Comply with all the effluent

requirements identified in the preliminary list from EPA

• Treat all the produced water in the area

• Evaluate two different sludge handling alternatives

• Mechanical dewatering and off-site landfill• On-site sludge lagoon/landfill

Option BOption B

• Meet only the TDS requirement of

< 5000 mg/L

• Eliminate those wells with high TDS concentrations

• Treat (RO) approximately 85 percent of the produced water

• Include on-site sludge lagoon/landfill

• May require creative permits

Proposed Treatment ProcessProposed Treatment Process

Walnut ShellFilter

Walnut ShellFilter Lime

Softener

LimeSoftener

CartridgeFilters

CartridgeFilters

High pHSWRO

High pHSWRO

BeltPress

BeltPress

Acid RegenSystem

Acid RegenSystem

NaOH RegenSystem

NaOH RegenSystem

FeCI3

Ca(OH)2

Na2CO3

NaOH

Dewatered Sludgefor Disposal

Backwash Waste

Spent Regenerant Waste

IN

Disposal Well

To Pecos

SWROReject Waste

BackwashFeed

MultimediaFiltration

MultimediaFiltration

Weak AcidCation

Exchanger

Weak AcidCation

Exchanger

Option A Effluent = 500 mg/L TDSOption A Effluent = 500 mg/L TDS

ComponentCost per treated

barrelCost per treated

1000 galCost per treated

ac-ft

Treatment / sludge disposal $0.30 - $0.39 $7.19 - $9.35 $2346 - $3050

Raw water collection $0.03 $0.61 $200

Liquid residual disposal $0.06 $1.33 $432

Delivery alternatives $0.03 - $0.06 $0.68 - $1.54 $221 - $501

Total project costs $0.42 - $0.54 $10 - $13 $3,200 - $4,190

Option B Effluent TDS = 5000 mg/LOption B Effluent TDS = 5000 mg/L

ComponentCost per treated

barrelCost per treated

1000 galCost per treated

ac-ftTreatment / sludge disposal $0.17 $4.12 $1,342

Raw water collection $0.03 $0.61 $200

Liquid residual disposal $0.09 $2.19 $715

Delivery alternatives $0.03 - $0.06 $0.68 - $1.54 $221 - $501

Total project costs $0.32 - $0.35 $7.60 - $8.50 $2,480 - $2,760

Option C- Potash Industry?Option C- Potash Industry?

• Maybe No Reverse Osmosis to reduce TDS

• Hydrogen Sulfide Treatment Required

• Petroleum residual treatment?

• Pipeline to Carlsbad and connect to existing lines

Pipeline CostsPipeline Costs

• Pipeline Length (mi) 27.03

• Capital Cost ($) < 26,152,700

• O&M Cost ($/Yr) 8,000

• Cost / Barrel 0.04

• Cost / 1000 gal 0.93

• Cost / Ac-ft 303.00

Treatment of HTreatment of H22SS

• At this scale, maybe $0.05 - $0.07/bbl

• At smaller scale actual H2S treatment is at least 20 cents/bbbl

• SWAG of total costs for delivery to potash industry:

10-12 Cents/bbl

Existing Cost for InjectionExisting Cost for Injection

• Capital costs are already amortized

(about 10-15 cents/bbl)

• O&M costs are about 5 cents/bbl

• Gas production is in decline, < 10 years of production remains, no additional capital for disposal

• Bottom Line: Treatment and Delivery must meet the 5 cents/bbl existing cost

What Did We Learn?What Did We Learn?

• Treatment and delivery to the Pecos River might have been economically viable BEFORE the oil and gas producers sunk large capital costs for injection

• However, must reduce costs below the predicted 32-35 cents/ bbl for Option B

• The Tax Incentive (8 cents/bbl for 5 years) is not sufficient to overcome economics

Delivery to Potash Industry?Delivery to Potash Industry?• Might be economically viable IF gas/water

production continues for more than 10 years

• The Tax Incentive (8 cents/bbl for 5 years) is not sufficient, given the uncertainties of gas and water production

• The Government could fund the pipeline, charge for water delivery, and hope for a payback (in water transport fees, by continued agriculture, and > 10 year life.)

What is Next?What is Next?

• Wyoming Coal Bed Methane - Big George

• The Next Indian Basin Gas Field

• New Treatment Technologies

• “Out of the Box” Thinking About Water Management

• A Willingness to Sacrifice Some Water Quality for More Water Quantity

R.T. Hicks ConsultantsR.T. Hicks ConsultantsBohannon-HustonBohannon-Huston

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