Jay Keener Reclaim Water Services

1. The SmartSWD™ Facility
Integrated Disposal and Recycling
Jay Keener
432-488-9707
jkeener@reclaimwaterservices.com
August 22, 2022

2. Typical Approach to Water – Capital Inefficiency
Traditional approach to water
infrastructure has:
1) Excess CAPEX
2) Excess OPEX
3) Loss of operational
flexibility
4) Low-ESG Rating
5) Minimal utility to future
beneficial/alternative use

3. SmartSWD™ - Integrated SWD/Recycle (or Recycle Only)
SmartSWD™ is a facility that integrates produced water recycle capability into
an SWD facility design, for use at an SWD or Centralized Recycle, and that:
• Eliminates the need for adding treatment equipment & 3rd party services
• Significantly enhances oil recovery and solids management
• Provides flexibility for a complete range of desired treated water specs
SWD Facility
PW Recycle
(Patent-Pending)

4. SmartSWD™ - Integrated SWD/Recycle (or Recycle Only)
SmartSWD™ is installed instead of a traditional facility / tank battery
• Option to avoid CAPEX entirely and install the facility on service
contract (rental or per bbl rates for the facility)
Operating in SWD mode:
• Much higher oil recovery and much better solids management
than conventional facility, with no extra chemistry
Operating in Produced Water Recycle Mode:
• Generate high spec effluent water within the already-installed
facility, with no additional equipment/service mobilization
Many SmartSWD™ components can retrofit onto existing
conventional facilities to improve oil recovery / solids management
capabilities
SmartSWD™ facilities can also be installed at locations with no wellbore (Patent-Pending)

5. SmartSWD™ - Integrated SWD/Recycle (or Recycle Only)
(Patent-Pending)
A SmartSWD™ facility installs at:
1) A new disposal well, INSTEAD of a traditional facility
2) A new fixed or long-term water infrastructure location (i.e.
centralized water recycle facility)
3) An existing facility that needs to manage water or oil better
A SmartSWD™ facility has:
1) Extremely high efficiency oil recovery
• Major improvement over traditional facility, increasing total revenues
2) Solids clarification/management integrated into all tanks
• No build up of tank bottoms/expensive cleanouts, less solids downhole
3) All produced water recycle capabilities integrated into the facility
• including chemical injection/management, solids management, etc.
4) Sophisticated end-to-end automation and gravity flow design
• Minimizing OPEX and enabling both local and remote monitoring/control

6. SmartSWD™ Process Flow Diagram
(Patent-Pending)
The process
configuration is
the same for both
SWD Facility
installations and
Centralized
Recycle Facility
Installations

7. OWS Unit – Retrofitting to Maximize Oil Recovery
(Patent-Pending)
Actively
retrofitting
existing facilities
with Micro-Gas
Oil/Water
Separator (OWS)
to maximize oil
recovery

8. SWD Facility
PW Recycle
60k BWPD Configuration – Dual 30k BWPD Trains
Instead of installing a traditional facility at a new SWD
location, a water midstream company has installed the
SmartSWD™ facility with integrated capability to recycle
produced water for completions (intermittently as needed)
• Eliminated the need for adding treatment equipment
• Significantly enhanced their oil and solids management
SmartSWD™ - Installed December 2021

9. 35,000 BWPD Shown – Expanding to 60,000 BWPD
• Installed as Centralized Recycle Facility, with no SWD well
• Installed as a service, alleviating the CAPEX requirement
for the recycle facility
SWD Facility
PW Recycle
SmartSWD™ - Installed June 2022

10. 35,000 BWPD Facility Initially Installed
Expansion will increase to 60,000 BWPD
(Currently Being Installed)
(image horizontally mirrored for reference to drawing)
Modular, expandable, moveable, and
retrofittable on existing facilities
SmartSWD™ - Installed June 2022

11. 1st SmartSWD™ Installation 2nd SmartSWD™ Installation
• End-to-end cascade gravity flow, eliminating elevation changes and pumps
• Reduction in # of tanks, with increased flexibility for recycle process
• Option to configure the facility with closed tops for oxygen-free operation
SmartSWD™ – Design Optimization

12. 2nd SmartSWD™ Installation
(mg/L)
TDS 172,701
Total Hardness 21,555
Chloride 105,000
Silica 19.4
Magnesium 1,088
Calcium 6,582
Strontium 551
Barium 1
Inlet Produced Water is
Constantly Changing, but a
representative Water Analysis:
SmartSWD™ – Recycle Performance Data

13. SmartSWD™ – Recycle Performance Data

14. SmartSWD™ – Recycle Performance Data

15. SmartSWD™ – Recycle Performance Data
Inlet Oil to
SmartSWD
is low due to
upstream AST

16. 5,748 PPM TOG 28.6 PPM TOG
Oil Removal for Pipeline-Fed SmartSWD™ Facility

17. Oil removal efficiency of SmartSWD™ facility (averaged over one week)
was compared to conventional facilities at two nearby disposal wells
84.2%
61.5%
99.4%
(Removal Efficiency %)
Example of significant of oil recovery
efficiency increase:
3,000 mg/L TOG (assume 0.85 sg)
@ 30,000 BWPD Flow Rate
= ~106 BOPD
99.4% vs. 84.2% = 15.2% ↑ Recovery
= ~16 BOPD additionally recovered
= ~$410,000 Annual Value
(assuming $70 per bbl skim oil)
At one facility
SmartSWD™
Conventional Conventional
SmartSWD™ Oil Removal vs. Conventional Facility

18. Ongoing & Upcoming Installations – Two 25k Facilities
25,000 BWPD SmartSWD™ Facility
• Currently installing two 25,000 BWPD SmartSWD™ Facilities for different operators
• Both to serve as centralized recycle facilities, handling all infield water and alleviating the near-
term need to drill a disposal well

19. • Manage Seismicity Risk – Option to inject or recycle water
• Reduced use of fresh and brackish groundwater
• Less mobilization of equipment and personnel, reducing the trucks and people on the road
• Minimized chemical consumption due to facility operating flexibility & efficiency
• Minimized manpower for operation, reducing operational risks
• Lower volumes of waste generation, minimizing waste management liabilities
• Low energy consumption due to gravity flow design
• Reduced overall water management infrastructure/equipment footprint
• Infrastructure is prepared to perform the first pre-treatment steps for future beneficial reuse applications,
removing the costs associated with adding any additional pre-treatment equipment
Major ESG Improvements to SWD & Recycle Operations

20. Thank you for your interest and attention!
Jay Keener
jkeener@reclaimwaterservices.com
+1 (432) 488-9707