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Williston Basin Petroleum Conference North Dakota May 22, 2012 Recycling of Drilling Waste: The Road to Sustainability Emerging Bakken Technologies.

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Presentation on theme: "Williston Basin Petroleum Conference North Dakota May 22, 2012 Recycling of Drilling Waste: The Road to Sustainability Emerging Bakken Technologies."— Presentation transcript:

1 Williston Basin Petroleum Conference North Dakota May 22, 2012 Recycling of Drilling Waste: The Road to Sustainability Emerging Bakken Technologies

2 INTRODUCTION Oil & Gas Industry  Industry continues to expand in the Bakken Operator expectations for services are high Service companies doing all they can to keep up Exploration & production waste continues to be high profile And with the new reserve pit rule changes  Louisiana approx. 800,000 bbls of E&P waste are generated monthly (not including produced water)  Texas volumes of waste generated are unknown In 2011; 23,000 drilling permits, 2012; annualized 25,000+ ORDER OF WASTE RESPONSIBILITY Source Reduction Recycling Treatment Disposal North Dakota – Williston Basin Rig count # of wells Depths19000’+19000’+ The Waste Segment of the O&G Industry is extremely vital & more important than ever! Waste Generated Per Well WB 1094 bbls OB 1227 bbls Brine 1049 bbls TOTAL 3370 bbls Bulking/Stabilization 1:1 BAKKEN SHALE CRUSH THESE VOLUMES

3 R3 – REDUCE, REUSE, RECYCLE REDUCE Proper segregate and separation of waste; Reduce the volume by dewatering required REUSE Recover oil and reuse or sell RECYCLE Recycle the treating solids and converting it into a product for legitimate commercial uses; primarily road base product Major oil and gas companies are taking the lead role in operations to protect the environment The big push is on efforts to recycle as much as possible Recycling of Drilling Waste The Road to Sustainability

4 RECYCLING – WHY NOT?  E&P waste recycling is not new Oil - non renewable resource Solids - resource as well  Treated solid materials not reused – Why? FOCUS: Road Construction Products Requires large volumes Requires strict engineering specifications Requires strict environmental specifications Recyclers have lacked experience Standardized recycling rules were lacking Definition of recyclable product unclear Reluctant Generators LIABILITY

5 BAKKEN MARKET / CUSTOMERS No matter how noble the intent of any recycling effort, success cannot be achieved without a viable and continuing market for the product  Market for Recycled Road Construction Materials Understand it Identify the needs Development the product Make the sale… Conceptual  Potential customers identified State – Dept. of Transportation Counties Cities O&G companies Farmer & Ranchers  Stipulations Location of product utilization Sustainable quantity availability Cost competitive

6 GOALS R3 Road Base Product (Asphalt or Cement Stabilized)  safer and improved roads for the landowners, O&G operators  less dust than traditional scoria or gravel roads and pads  a cleaner environment through waste minimization, recycling of spent E&P wastes and minimization and/or elimination of reserve pits The most effective way to do this is to partner with the Operator to manufacture a recycled road base product for their respective lease roads, drill sites and/or public roads

7 PRODUCTS - FORMULATIONS  Understand the needs development of the recycled product replicate the process in the field full scale comply with regulatory criteria comply with the users directives - Asphalt / Cement Stabilized Base Formulation E&P waste – oil, chloride & water content course aggregate using localized material emulsified asphalt cement water Mix Design: OB Drill Cuttings / Scoria / EA / Cement / Water  Compressive Strength 120 psi  Hveem Stability52  Compacted Weight126 lbs/ft2

8 CONCEPT – MOBILE RECYCLING The proposed facility:  designed to be Mobile System and set up at/near the rig site  may serve single or multiple operators  the operator will be the generator and consumer  the volumes will be limited to prevent speculative accumulation  the footprint will be limited in size  the equipment; mechanical separation or thermal desorption  the facility and process will comply to stringent EMS  is SAFE The recycled product:  will comply with engineering and environmental standards  will comply with Gov’t directives, rules & regulations  will be as good or better than what is currently being used  does WORK

9 OPERATIONS Equipment & Process MOBILE FACILITY LAYOUT

10 LOGISTICS Project Logistics  5-7 active rigs  1,200+ bbls oil base cuttings per well  Operations:  24-hour waste receiving & product manufacturing Expected Volumes  1,000 bbls (~208yds 3 /day of inbound waste; 1 yd 3 = 4.8 bbls)  1,059 tons (~623 yds 3 /day of outbound R3 CSB product; 1yds 3 = 1.7tons) R360 Commitments  Certificate of Recycling for volume of waste recycled  Total regulatory & operational reporting disclosure Customer Commitments  Uses the product and/or provide to other potential users

11 EQUIPMENT & PERSONNEL HS & E  Site Specific Safety Plan  Site Specific Environmental Management Plan Aspects/Impacts Register Processing Equipment  Front end loader, backhoe, conveyors, pugmill, waste receiving system, tanks/roll-off bins, light plants, generator Miscellaneous Equipment  Office & lab, living quarters, potable water tank, site truck w/ portable fuel tank, pumps, air compressor, critical spares inventory, fuel tank R3 Team Members - 10  Operations manager, receiver, equipment operator, roustabout

12 RESULTS Recycled Product

13 RESULTS R3 Roadbase

14  R360 firmly believes that: E&P waste for recycling must be handled as a waste first Regulatory landscape must acknowledge that if a waste is properly recycled that the generator is no longer liable Genuine recycled products; judged on engineering and environmental merits  Keys to Success Ensure that the recycling is legitimate Ensure that recyclers possess the technical expertise Ensure that recyclers have substantial financial capacity Ensure a high level of environmental management systems  Recycling Projects Will not succeed without market Sustainability Based on applicable “Engineering and Environmental” standards CONCLUSION

15 THE ROAD TO SUSTAINABILITY THANK YOU Any Questions? Most recently – R360 received the first mobile recycling permit of its kind to take this process on the road


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