EricJ

Bach/NorthAmerica/RA/Rock
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01/10/201106:17PM
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Subject Fw:Shalewaterrecycling
ChristopherJPritz/NorthAmerica/RA/Rockwell
DavidMayewski/Sales/RA/Rockwell
http://www.industrialinfo.com/showNews.jsp?newsitemID=171316&qiSessionId=BEF3227D68C4B72246
A653D53972723E.cow
Cost-effective Water Recycling Key to Continued Growth of Shale Gas Drilling
SUGAR LAND--J anuary 4, 2011--Written by J ohn Egan for Industrial Info Resources (Sugar Land, Texas)--A s
found the answer to one of the biggest challenges facing the fast-growing shale-drilling industry: what to do with
generated during the hydraulic fracturing process.
Since 2004, Aqua-Pure Ventures Incorporated (TSXV:AQE) (Calgary, Alberta), working as a contractor to Devo
(Oklahoma City, Oklahoma), has recycled more than 700 million gallons of water used in shale drilling in the Ba
Dallas/Fort Worth area, according to Brent Halldorson, Aqua-Pure's chief operating officer. Aqua-Pure's U.S. su
Management LLC (Roanoke, Texas), provides services related to shale gas water recycling, while the parent com
development.
"Drilling and fracturing each shale gas well in the Barnett requires 100,000-125,000 barrels of water," Halldorso
conference held in Denver last month by EUCI, an energy-industry events company. "That's an awful lot of wate
concerned about hydraulic fracturing, particularly the chemicals used in the process. Regulatory and community
of the biggest challenges facing the industry."
Gas from shale formations, mainly the Barnett Shale, accounted for about 10% of all gas produced domestically
Marcellus Shale ramp up production, shale gas is expected to account for up to 20% of all U.S. gas production by
hydraulic fracturing, in which large amounts of water, chemicals, and proppants like sand are injected at high pre
and release the gas.
But there is rising public, community and regulatory concerns over what fracking is doing, or could be doing, to
ecosystem. The city of Pittsburgh, Pennsylvania, has prohibited further fracking within city boundaries. New Yo
fracking. The U.S. Environmental Protection Agency (EPA) (Washington, D.C.) is conducting a scientific assess
fracking. National news organizations including the New York Times , Wall Street Journal and CNN, among oth
the alleged environmental dangers of fracking.
Water issues are "the key issue" facing shale drillers and developers, Halldorson said. "Traditional oil and gas de
after-thought. But with shale drilling, it's reversed: It all starts with water, because you use so much of it in the h
Aqua-Pure's technology could turn wastewater from fracking into drinkable water, and return it to the local ecosy
with Industrial Info Resources. "Recycling water used in shale gas formations used to be seen as 'nice to do, but
least in Pennsylvania, where it's very expensive to dispose of water used in shale gas wells. Today in Pennsylvan
shale wells and return it to the local ecosystem rather than disposing of it. Water recycling has gone from the hig
least in the Marcellus Shale."
Halldorson explained that a significant percentage of water used in shale drilling comes back to the surface befor
"flow-back water." Another sizable amount comes back to the surface as the gas is produced. That's called "prod
the water remains in the shale formation. Drillers can use flow-back and produced water to frack another well, di
(SWD) well, or treat it to meet drinkable standards and return it to local rivers and streams. At some point, water
require treatment to remove dissolved contaminants and other materials.
But Halldorson cautioned that "water issues are different in each shale play. What works in the Barnett Shale doe
Shale," because of local differences in geography, hydrology and regulation. "Each formation has its own unique
concentrated in a relatively small area that is characterized by flat terrain and a lot of wastewater disposal option
the Marcellus Shale is much larger geographically, there is a lot of hilly terrain, which makes transporting water
wastewater disposal options."
In the Barnett Shale, drillers can dispose of wastewater in one of the 50,000 SWD wells in Texas, Halldorson sai
large number of SWD wells, he added. But the state of Pennsylvania, which sits atop part of the Marcellus Shale
which means the wastewater from those shale wells has to be trucked to disposal sites in Ohio. That could take u
where the SWD wells are located in Ohio. The Marcellus Shale has about 10 times the estimated recoverable sha
making it especially attractive to developers. But limited wastewater disposal options could slow or halt future d
Click the image at right for a map of the major U.S. shale gas formations and their estim
reserves.
The all-in costs to dispose of wastewater from the Marcellus shale in north-central Penns
Halldorson estimated. In Arkansas, water-disposal costs are $4 to $6 per barrel. Aqua-Pu
could treat shale wastewater to drinkable water standards for $3 to $5 per barrel, he said.
abundance of SWD wells, it costs about $1.50 per barrel to dispose of shale waste water,
"In Texas, the main competition to water recycling is low-cost SWD wells," Halldorson continued. "But in Penn
costs to out-of-state SWDs. The drive to recycle water in Pennsylvania is far stronger than anywhere else becaus
options."
"We are an environmental company, and every drop of water that we can safely return to a local ecosystem is a d
hydraulic fracturing," he said. "We've gained a lot of valuable experience in the Barnett Shale, and we're poised t
Marcellus Shale," where the company has been operating for about six months.
Halldorson noted that units of General Electric Company (NYSE:GE) (Fairfield, Connecticut) and Siemens AG
expressed interest in entering the shale gas water-recycling business. "They have a lot of experience in water trea
shale gas wells," Halldorson said. "Still, we welcome the competition because it will lead to a better result for all
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