1. Northern Great Plains Water Consortium (NGPWC) Bakken Water Opportunities Assessment Water Resource Opportunities Meeting Bismarck, ND December 10, 2009

2. Northern Great Plains Water Consortium The Energy & Environmental Research Center (EERC) has developed a partnership between the U.S. Department of Energy and key stakeholders to address critical issues that impact the water resources of the northern Great Plains region. Stakeholders: –Electrical power generation utilities –Oil and gas companies –Industry –Municipalities –State agencies –Other interested entities

3. Energy: cooling water for power plants, mining operations, oil and gas development, biofuel production Population Increase Increased demand for energy, food, drinking water and other “goods”. Municipal and Industrial: drinking water, domestic and urban uses, manufacturing Agriculture: irrigation, livestock operations, agricultural industries and processing Water Needs

4. NGPWC Goals and Objectives To assess, develop, and demonstrate technologies and methodologies that minimize water use and reduce impacted water discharges from energy production. To evaluate water demand and consumption from competing users in the NGPWC region. To identify nontraditional water supply sources and innovative options for water reuse.

5. Bakken Water Opportunities Project to assess the technical and economic potential to recycle frac flowback water in the Bakken play. Project Sponsors –U.S. Department of Energy –North Dakota Petroleum Council –North Dakota Industrial Commission Oil and Gas Research Council

6. Frac Water Use for the Bakken Up to 1,000,000 gallons of water used per frac. For comparison: –In ND, the approximate volume of water used to irrigate ¼ section of land using center pivot is 1,380,000 gallons per day. –Typical daily water use for a 50,000-person Midwestern city is 10,000,000 gallons. Relatively small amount of water for a very high value use.

7. Project Status Samples have been analyzed and/or data have been collected from four of five producers participating in the assessment. Extensive, but not comprehensive, frac flowback volumes and water chemistry data. Technology review and capabilities assessment. Preliminary economic assessment.

8. Frac Flowback Water Characteristics Relatively low recovery of the original frac water within the first 10 days. –Ranges from 15% to 50% recovery Very high salinity in flowback water. –Salinity levels as high as 200,000 mg/L Water chemistry is predominantly sodium chloride (NaCl), with lesser amounts of calcium, potassium, and sulfate.

9. Flowback Water Samples Original injection volume ~ 20,000 bbl (840,000 gallons)

10. Frac Flowback Water Treatment – Mechanical Vapor Recompression (MVR) Oil field- compatible Robust Mobile Existing technology High treated water recovery

11. Bakken Recycling Challenges Slow recovery of flowback water Relatively low volume initial recovery Extremely high dissolved salts early in the flowback Treatment very challenging, even with the most robust technologies Treatment very likely not cost-effective in most cases

12. Current Frac Water Costs Acquisition costs –$0.25–$0.75/bbl raw water cost –$0.63–$5.00/bbl transportation costs Disposal costs –$0.63–$5.00/bbl transportation –$0.50–$1.00/bbl disposal via deep well injection Total costs –$2.00–$11.75/bbl

13. Other Non-Conventional Options? Access to freshwater for hydraulic fracturing continues to be a challenge. ND has an abundant supply of marginal-quality groundwater that is not a potential underground source of drinking water. Treatment of non-potable groundwater may provide an economical alternative resource.

14. Groundwater Treatment Demonstration A pilot-scale demonstration is needed to evaluate the technical and economic feasibility of the approach. Likely not the “silver bullet”, but may provide part of the solution. The EERC has identified a potential host producer for a pilot and has been evaluating various technology providers (RO and MVR).

15. John Harju 701-777-5157 jharju@undeerc.org Bethany Kurz 701-777-5050 bkurz@undeerc.org Dan Stepan 701-777-5247 dstepan@undeerc.org Energy & Environmental Research Center 15 North 23rd Street, Stop 9018 Grand Forks, ND 58202-9018 John Harju 701-777-5157 jharju@undeerc.org Bethany Kurz 701-777-5050 bkurz@undeerc.org Dan Stepan 701-777-5247 dstepan@undeerc.org Energy & Environmental Research Center 15 North 23rd Street, Stop 9018 Grand Forks, ND 58202-9018 Contact Info