This document discusses recycling produced water and brackish groundwater in the Texas oil field. It notes that produced water is a byproduct of oil and gas extraction and contains high levels of total dissolved solids. Recycling produced water and brackish groundwater could help address water shortages as the state's population grows 82% by 2060. Treatment can allow reuse of this water in fracking operations. A centralized facility could treat large volumes of produced and brackish water cost effectively for reuse in the oil field. However, such facilities face risks from fluctuating oil prices and regulations. Overall, the document argues that a combination of produced water and brackish groundwater is a better long-term water source for

1. RECYCLING PRODUCED WATER
AND BRACKISH GROUNDWATER
IN THE OIL FIELD
2014
By Doug Hall, W D Hall Company
Austin, Texas

2. Press Coverage on Water in Texas – lots!
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―Texas must
limit
agricultural
water use‖
Houston Chronicle, May 29, 2012
―The new oil is water‖
Odessa American Online, April 6, 2014
―Report: Fracking
colliding with other water
uses during drought‖
San Antonio Express News, February 5, 2014
―Texas Legislature: Group pursues reuse of
water from fracking‖ San Angelo Stand Times, Feb 16, 2013

3. What is Produced Water and
WHY should we recycle it?
• Product of oil and gas extraction
• “brine” and “formation water”
• Largest waste product
(BKT website)
W D Hall Company, Austin, Texas 3

4. Whatis Produced Water and
WHYshould we recycle it? (cont.)
1. It’s one of the very few ways we can actually
add water to the local hydrologic system!
2. We don’t have to pump seawater from the coast!
3. We need more water.
4. Water is getting more expensive.
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5. Why Will the Price of Clean Water
Continue to Increase in Texas?
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1. New water supplies
2. System expansion
3. System repairs
4. Drought Fees
Supply and demand economics:
Water is a commodity = water markets

6. 82% Population Growth by 2060
(TWDB2012)
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7. Regions with Water Shortages in 2060
(TWDB2012)
• Lubbock ~ 2,400,000 ac-ft/yr (irrigation)
• Dallas/Fort Worth ~ 1,500,000 ac-ft/yr
• Houston ~ 1,200,000 ac-ft/yr
• Rio Grande Valley ~ 750,000 ac-ft/yr
• San Antonio ~ 600,000 ac-ft/yr
• Austin ~ 400,000 ac-ft/yr
(if no new water supplies are developed)
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8. Droughts
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9. W D Hall Company, Austin, Texas 9
(Beach, James, 2012)

10. W D Hall Company, Austin, Texas 10
(FNI Water, 2012)

11. Oil and Gas Wells in Texas –
the Source of Produced Water
Green=oil well
Red=gas well
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12. Produced Water Reuse
(Michael Sims,RRC, 2013)
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13. Treatment for Reuse of Produced Water
in the Oil Field
Level 1 – Gravity separation from the oil and gas
Level 2 – Separation, filtration, flotation, EC to remove solids,
TSS, particles, oils, bacteria, frac chemicals
• Results = clean brine
• Very high TDS water (>200,000 mg/l) may be acceptable for reuse
Level 3 – Getting the salt out (RO, ED, EDR, Distillation)
Equipment and power costs increase as you reduce TDS levels.
Many more possible uses for this water.
W D Hall Company, Austin, Texas
1
3

14. Produced Water Treatment Costs
for Oil Field Use
Level 2 (Pre-treatment) ~ $.50 to $3.00/bbl
(clean brine - HF water may not need more treatment)
Level 3 (Membrane de-salting) ~ $3.00-$8.00/bbl
or
Level 3 (Thermal distillation) ~ >$5.00/bbl.
W D Hall Company, Austin, Texas 14

15. Produced Water Disposal Costs
The numbers to beat!
Disposal wells in Texas
~ $.50/bbl to $2.50/bbl
The main driver for not recycling
+
Plus - $1.00/bbl/hour
The main driver for recycling!
(loading, unloading and travel time)
Location is key!
W D Hall Company, Austin, Texas 15

16. Produced Water Volumes in Texas
• Estimated
• 650,000 ac-ft/yr (DOE for 2002)
• 237,000,000 ac-ft/yr (USBR for 2009)
• 775,000 ac-ft/yr (Tintera, 2013)
• Calculated based on oil and gas production (2012)
• 410,000 ac-ft/yr to 880,000 ac-ft/yr
• Reported
• 100,000 ac-ft/yr (RRC, 2012)
~1,000,000 ac-ft/yr estimate for Texas
The need = better information
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17. W D Hall Company, Austin, Texas 17
Brackish Groundwater –
a Better Alternative for Now in
Texas?

18. Brackish Groundwater in Texas
Orange,yellowandredindicatebrackishgroundwater(TWDB)
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19. Brackish Groundwater Depths in Texas
(http://ne.water.usgs.gov/ogw/brackishgw/)
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20. Brackish Groundwater Use in Texas
(HoustonChronicle,November14,2011)
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21. Brackish Groundwater Treatment Costs
(TWDB2012)
Total production costs for desalinating brackish
groundwater ranged from:
$357 to $666/ac-ft.
$.001/gal to $.002/gal
$.05/bbl to $.09/bbl (Drinking Water Quality)
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22. For Comparison - Cost of Bottled Water
• Bottled water about $1.22/gallon nationwide
• 300x the cost of a gallon of tap water
• For sales of single 16.9oz (500 mL) bottles, though, this
cost is much, much higher- about $7.50 per gallon
• About $315/bbl!
• That’s almost 2,000x the cost of a gallon of tap water and
twice the cost of a gallon of regular gasoline.
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23. Brackish Groundwater Treatment Costs
for Oil Field Use
After the first use in fraccing,
the cost for treating brackish groundwater
is roughly the same as treating produced water
(~ $.50 to $3.00/bbl)
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24. W D Hall Company, Austin, Texas 24
Estimated Volume of
Brackish Groundwater in Texas
________________________________________________________________
_
2.7 billion acre-feet*
(880 trillion gallons)
(21 trillion bbls)
Of Less than 10,000 mg/l groundwater
Only statewide estimate - 2003
(Arroyo, 2012)
*(LBG-Guyton, 2003)

25. W D Hall Company, Austin, Texas 25
Getting better data
_________________________________________________________
____
National Brackish Groundwater
Assessment by the USGS
Ongoing - Completion Date: September 2016
TWDB - Brackish Resources Aquifers
Characterization System: BRACS
Ongoing
TWDB -http://www.twdb.state.tx.us/innovativewater/bracs/index.asp

26. W D Hall Company, Austin, Texas 26

27. Estimated Volumes –
Produced Water and
Brackish Groundwater
Produced Water ~1,000,000 ac-ft/yr
Brackish Groundwater ~2.7 billion ac-ft
Equal to ~ 2,700 years of Produced Water!
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28. Produced Water vs Brackish Groundwater
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Oil Field
Produced Brackish
Concerns Water Groundwater
Is the local water volume sufficient for
reuse? (location sensitive) Some times Most times
Concern over conflicting use – municipal? No Possibly
Is the local water supply reliable for
> 20 years? Uncertain Most likely
Ownership Unclear Unclear
Cost of sourcing Uncontrollable Controllable

29. Questions about Using
Brackish Groundwater
Check these out early-
• What is the quantity of brackish groundwater required? For how long?
• Who owns the brackish groundwater?
• Is the brackish groundwater planned for a future municipal supply?
• What are the pumping costs now and in the future?
• Will pumping from the brackish aquifer adversely impact overlying
freshwater aquifers?
• Will the water quality (salinity) change during pumping? Deteriorate?
(Maliva, et al, 2014)
W D Hall Company, Austin, Texas 29

30. W D Hall Company, Austin, Texas 30
Vision of a Stationary, Water
Recycling Facility
for the Oil Field

31. Produced Water Recycling Facility –
Irion County
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32. Produced Water Recycling Facility –
Parker County
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(Slutz, et al, 2012)

33. What might a Stationary Produced and/or Brackish Water
Recycling Facility look like?
• Location – close to produced water generators
(> 100 wells) from single or multiple E&P operators and treated
water users (within approx. 15 mile radius)
• Easy access to brackish groundwater
• Size – 100 to 200 acres; security fencing
• Lined ponds and tanks for water storage (500,000 bbls
or more); berms for water control
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34. Facilities and Equipment
• truck loading/ unloading and washing
• oil recovery equipment
• treatment equipment (able to treat at least 30,000 to 50,000 bpd)
• office and laboratory
• maintenance shop
• living accommodations
• communication towers
• water pumps and pipelines
• chemical storage sheds
• fresh water well
• brackish water well
• SWD well
• And a waste storage area
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35. Logistical Management /
Process Monitoring
• Smart logistical management and process monitoring
(software)
• in-out water volumes
• inventory
• lab analysis and results
• storage and transport/ distribution services
• equipment performance
• Reliable communications for reporting for
business, technical, and regulatory needs
W D Hall Company, Austin, Texas 35

36. Potential Benefits of Operating a
Centralized PW/BW Recycling Facility
• Lower water acquisition, hauling and
management costs for E&P operators
• Fixed infrastructure costs
• Economies of scale, leverage buying power
• Efficiency – fewer staff
W D Hall Company, Austin, Texas 36

37. Potential Benefits of Operating a
Centralized PW/BW Recycling Facility (cont.)
• Drought resistant, reduced competition for fresh
groundwater
• Public safety – fewer trucks, fewer spills
• Eagle Ford Study: Pre-planning and establishing a
centralized recycling system
• 1400 wells planned over a 5 year period
• Cost savings of 44 % (Robart, 2012)
W D Hall Company, Austin, Texas 37

38. RisksAssociated with Operating a
Centralized PW/BW Recycling Facility
• Price of oil drops eliminating sources of produced water;
Operators hesitant to sign up for long-term
• Unexpected regulatory changes; Could be caught up in local
politics
• Brackish groundwater has less volume or poorer quality than
anticipated
W D Hall Company, Austin, Texas 38

39. RisksAssociated with Operating a
Centralized PW/BW Recycling Facility (cont.)
• Complicated contracts
• Competition with abundant, cheap SWDs
• Wrong location (proximity to sources, users, brackish
groundwater)
• Wrong technology for treatment
W D Hall Company, Austin, Texas 39

40. Summary
• Produced water can’t be relied on to supply
adequate drilling and frac supply in most fields
• Existing fresh water sources will be in great
demand; cost is rising
• A combination of produced water and brackish
groundwater is a better, cheaper choice for use in
future drilling and frac operations
• When to start using brackish groundwater? Now.
W D Hall Company, Austin, Texas 40

41. W D Hall Company, Austin, Texas 41
“When the well is dry, we know the worth of
water.‖
—Benjamin Franklin,
Poor Richard's Almanac, 1746
Thank You
For more information / brainstorming:
Doug Hall
W D Hall Company
Austin, Texas
512-306-8444