TYRONE ENVIRONMENTAL GRP. Making Crystal Slurry and Dry Crystals: cleaning fracture water for Oil and Gas drilling

WHO WE ARE: Tyrone Environmental is involved in recycling water, plastics and rubber. We have teamed up with equipment suppliers of patented and proprietary systems to efficiently clean and recycle fracture water and salts in gas drilling.

BRINE WATER: CHOICES You can choose whether you wish to remove and recycle as much water as possible, but before salt crystals form, which is called making saturated brine; or You can choose to remove even more water such that the you make a slurry with salt crystals; You can choose to remove and recycle the maximum amount of water and dry the salt crystals

Level of De-Watering Recap: The amount of water you remove depends on what you wish to do with the water and contaminates in the water. Do you wish to create a… Saturated Brine or Crystal Slurry Dry Crystal

EQUIPMENT CONFIGURATION Different equipment is required in the making of either a saturated brine, or a crystal slurry, or a dry crystal output Our focus here is on crystal slurry, or a dry crystal output

Crystal Slurry: Important Recovering brine crystals require the solution to be processed in a Forced Circulation Crystallizer. (see slide #8) The Vapor Compression Cycle is integrated making an Ultra-Efficient Process. (see PowerPoint: “Making Saturated Brine” for details)

CRYSTAL SLURRY: Forced circulation Vessel is designed for collecting and growing crystals. The solution containing both saturated brine and crystals is “force-circulated” downward through a “stand-pipe” where crystals have resident time to grow. The co-mingled solution is force-circulated through a centrifugal separator where brine and crystals are separated

FLOW DIAGRAM:

FLOW DIAGRAM: EXPLANATION

Forced Separation The Co-Mingled solution has two components having different mass: Brine Liquid…lighter component circulates back to the vessel and Brine Crystals…heavier component discharges the system as a Wet Slurry. As Slurry cools, more crystals form and separate from the remaining saturated liquid. This liquid can be sent back to the Distillation & Recovery system for more dewatering, if practical.

Dry Crystals Depending on desired dryness, Slurry can be post-processed by conventional means and equipment.

WHAT WE OFFER: Making Crystals Portable and Modular System Automatic operation Minimal labor and minimal maintenance Cost effective operating System Buy or Lease Options

Enviro Voraxial Technology SYSTEM PARTNERS Lewis Environmental pre-treatment Tyrone Dewatering and contaminate separation Enviro Voraxial Technology crystal separation

HOW WE DO IT: OVER VIEW FIRST STAGE UPGRADED CONVENTIONAL TREATMENT W/ ESP REAGENTS ESP PROCESS EFFLUENT POLISH IMPURITY REMOVAL REMOVES BARIUM and STRONTIUM DISTILLATION HIGH PURITY DISTILLATE SALEABLE BRINE SOLIDS FINAL DISCHARGE FINAL EFFLUENT SOLD TO DRILLERS BRINE SOLIDS SOLD TO 3dr PARTY USERS

HOW WE DO IT: FLOW CHART

HOW WE DO IT: Pre-treatment Pre-treatment PROCESS Removes oil /grease, organics and iron Removes trace organics and non-desired inorganic constituents RESULTS: Effluent is clear and organic free High purity brine stream

TECHNOLOGY: Pre-Treatment Proprietary treated granular activated carbon

TECHNOLOGY: DISTILLATION Features and Advantages:   1/2 penny a gallon or less in operating costs Ultra efficient energy consumption Closed loop system - water can be reused Closed loop system - no air emissions No membranes or no chemicals required Concentrate often has a commercial value Minimizes or eliminates sewer discharge Output surpasses EPA / Municipal requirements Fully automated, user friendly control panel Production materials can be recovered / reused For more Details on this Technology see PowerPoint: “Making Saturated Brine”

TECHNOLOGY: CRYSTALS SEPARATION a revolutionary and proprietary technology that efficiently separates large volumes of solids and liquids with different specific gravities The Voraxial® Separator acts as an in-line, continuous flow separator that can conduct a two-way or three-way separation Used to separate the salts from the slurry Voraxial 2000

RESULTS: FRACTURE WATER Clean water and salt

RESULTS:

BENEFITS OF OUR SYSTEM: It is mobile and can be operated in the field You choose how much water you wish to remove, recycle, or dispose It eliminates the need to dispose of large volume of brine contaminated waste It provides resource recovery of brine combined with water recycling

BENEFITS OF OUR SYSTEM: Ecological Benefits Recycling Clean Water and Brine prevents contaminating the ground, ground water, or local POTW. Recovers valuable commodities that are otherwise contaminants.

“D&R = DISTILLATION & RECOVERY RESULTS: VOLUME Example #1 “D&R = DISTILLATION & RECOVERY

RESULTS: ENERGY CONSUMPTION & COSTS Only 3¢ to make sellable salt Tyrone D&R System is engineered to be more efficient than most Evaporation Systems

MASS FLOW Example: 15% Brine in Feedstock 100,000 GPD (833,000 PPD)

MASS FLOW Example: 15% Brine in Feedstock 100,000 GPD (833,000 PPD)

MASS FLOW Example: 15% Brine in Feedstock 100,000 GPD (833,000 PPD) COMMENTS: At each stage, (saturated brine, crystal slurry, and dry crystals) successive amounts of water is removed. 99% of the water is removed in the 15% Brine example (slide #26) If there is a market for clear brine, the more clear brine you can sell, the more revenue you generate and perhaps you will choose to stop at making clear saturated brine If there is no market for clear brine, you may wish to reduce your disposal costs by de-water to the maximum

EQUIPMENT SPEC: 2500 bbl / day

EQUIPMENT PRICING: BUDGET CRYSTAL SLURRY LEASING $0.07 / GALLON PURCHASE $6.0 MILLION SALT CRYSTAL LEASING $0.08 / GALLON PURCHASE $6.8 MILLION

FINANCIAL CONSIDERATIONS: Conclusion: With Crystal Slurry sales, the operator has new revenue of $3 - $4 Million. Under either scenario, there is either no, to minimum, deep well disposal.

FINANCIAL CONSIDERATIONS:

FINANCIAL CONSIDERATIONS: Crystal Slurry, with sale value, ROI: ± 1 year Crystal Slurry, without sale value, Extends deep well life by a factor of 4 $2 Million well cost plus $4 Million System cost = $6 Million 500 bls vs. 2500 daily disposal translates into Extended well life by a factor of 4 Dry Crystals, no deep well required, ROI: ± 27 years

CONTACT US: Tyrone Environmental Grp. 304 Spring Dr. Winston Salem, N.C., 27107 Telephone: 336 499 0592