Sale of Effluent to Apache Corporation

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Sale of Effluent to Apache Corporation

  1. 1. Effluent Sales Contract for the City Council June 12, 2014
  2. 2. Background • Reclaimed water = Effluent • Highly treated wastewater • Discharged into local watercourses – Carters Creek = 6 million gallons/day average • Effluent can be diverted for other uses – Veteran’s Park uses 250,000 gallons/day – Must follow TCEQ 290 Rules for Type 2 Reclaimed – Special handling and storage requirements
  3. 3. Apache Corporation • Drilling/Fracturing oil wells east of CCWWTP • Policy is to NOT use potable water • Need 80,000 barrels/day (3.3 million gallons/day) • Duration expected to be 2 years, perhaps longer • Terms of Proposed Contract: • City reserves at least 3 MGD for Apache, but up to 5 if available • Apache bears all costs to set up needed infrastructure • Requires pumps, power, chlorinator, pipelines, and ponds • Apache gets all required TCEQ Permits • Apache pays $2.50/thousand gallon (Parks pays $2.49) • Expected revenue first 2 years is $5 million
  4. 4. Summary • City bears no cost and minimal risk • City assists Apache to be “Green” • City has full rights to sell this effluent • Excellent revenue source – helps avoid debt • Staff recommends approval

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