Transcript Concept Study

Concept Report / Preliminary
Technical and Cost Analysis
Delivery of Treated Produced Water
from Indian Basin and Dagger Draw to
the Pecos River, Eddy County, New
Mexico
R.T. Hicks Consultants
Bohannon-Huston
US Filter
Scope of Work
• Treatment and Delivery of Produced
Water to the Pecos River
– #1 Below Brantley Dam
– #2 at Dark Canyon
– #3 at Malaga Bend
• Obtain Preliminary EPA Effluent Limits
• Conceptual Design of Treatment Facility
• Infrastructure Plan for All Alternatives /
Preliminary Maps of Alternatives
• Cost Estimates for Alternatives /
Compare to Existing Disposal – Injection
Dagger
Draw
Indian
Basin
Carlsbad
Pecos
Water
Quality
Average TDS in mg/L
20000
15000
10000
5000
0
.0
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.7
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-2
.7
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.4
8
2
9
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.0
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-5
.6
54
.9
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-6
.6
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June
September
December
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10
Produced Water Quality
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6,500 – 12,000 Total Dissolved Solids
Hydrogen Sulfide – 378 mg/L
NORM – Ra 226+228 – 2500 pC/L
Boron – 2 mg/L
Free Oil – 100 mg/L
Produced Water Cations and
Anions
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Calcium
Magnesium
Sodium
Potasium
Bicarbonate
Sulfate
Chloride
685 mg/L
293
3,281
68
1,049
2,121
4,384
Indian Basin: 70K bbl/day
Dagger Draw: 21K bbl/day
About the Same Flow as Black River
14
Average Monthy Day (MGD) - Com bined Dagger Draw and
Indian Basin
12
10
8
6
4
2
0
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Concept Study Approach –
Marriage of Two Options
Scale-up Existing Oil Field
Technology/Methods – to 60,000
bbl/day
Use Large-Scale Water Treatment
Technology Approach and Modify to
Meet Produced Water Chemistry
Realities
Pipeline Elements
• Brantley Dam
Alignment
– 16 mi
– 18-20” diameter
– Includes pump
station
• Dark Canyon Alignment
– 27 mi
– 20-30” diameter
– Gravity pipeline
• Malaga Bend Alignment
– 51 mi
– 20-24” diameter
– Gravity pipeline
Option A
• Comply with all the effluent
requirements identified in the
preliminary list from EPA
• Treat all the produced water in the area
• Evaluate two different sludge handling
alternatives
• Mechanical dewatering and off-site landfill
• On-site sludge lagoon/landfill
Option B
• Meet only the TDS requirement of
< 5000 mg/L
• Eliminate those wells with high TDS
concentrations
• Treat (RO) approximately 85 percent of
the produced water
• Include on-site sludge lagoon/landfill
• May require creative permits
Proposed Treatment Process
FeCI3
Ca(OH)2
Backwash
Feed
Na2CO3
NaOH
IN
Walnut Shell
Filter
Weak Acid
Cartridge
Cation
Lime
Filters
Multimedia Exchanger
Softener
Filtration
Belt
Press
Dewatered Sludge
for Disposal
High pH
SWRO
To Pecos
Acid Regen
System
NaOH Regen
System
Backwash Waste
Spent Regenerant Waste
SWRO
Reject Waste
Disposal Well
Option A Effluent = 500 mg/L TDS
Component
Treatment / sludge disposal
Cost per treated Cost per treated Cost per treated
barrel
1000 gal
ac-ft
$0.30 - $0.39
$7.19 - $9.35
$2346 - $3050
Raw water collection
$0.03
$0.61
$200
Liquid residual disposal
$0.06
$1.33
$432
Delivery alternatives
$0.03 - $0.06
$0.68 - $1.54
$221 - $501
Total project costs
$0.42 - $0.54
$10 - $13 $3,200 - $4,190
Option B Effluent TDS = 5000 mg/L
Component
Treatment / sludge disposal
Cost per treated Cost per treated Cost per treated
barrel
1000 gal
ac-ft
$0.17
$4.12
$1,342
Raw water collection
$0.03
$0.61
$200
Liquid residual disposal
$0.09
$2.19
$715
Delivery alternatives
$0.03 - $0.06
$0.68 - $1.54
$221 - $501
Total project costs
$0.32 - $0.35
$7.60 - $8.50 $2,480 - $2,760
Option C- Potash Industry?
• Maybe No Reverse Osmosis to reduce
TDS
• Hydrogen Sulfide Treatment Required
• Petroleum residual treatment?
• Pipeline to Carlsbad and connect to
existing lines
Pipeline Costs
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Pipeline Length (mi) 27.03
Capital Cost ($) < 26,152,700
O&M Cost ($/Yr) 8,000
Cost / Barrel
0.04
Cost / 1000 gal
0.93
Cost / Ac-ft
303.00
Treatment of H2S
• At this scale, maybe $0.05 - $0.07/bbl
• At smaller scale actual H2S treatment is at
least 20 cents/bbbl
• SWAG of total costs for delivery to potash
industry:
10-12 Cents/bbl
Existing Cost for Injection
• Capital costs are already amortized
(about 10-15 cents/bbl)
• O&M costs are about 5 cents/bbl
• Gas production is in decline, < 10 years of
production remains, no additional capital
for disposal
• Bottom Line: Treatment and Delivery must
meet the 5 cents/bbl existing cost
What Did We Learn?
• Treatment and delivery to the Pecos River
might have been economically viable
BEFORE the oil and gas producers sunk
large capital costs for injection
• However, must reduce costs below the
predicted 32-35 cents/ bbl for Option B
• The Tax Incentive (8 cents/bbl for 5 years)
is not sufficient to overcome economics
Delivery to Potash Industry?
• Might be economically viable IF gas/water
production continues for more than 10
years
• The Tax Incentive (8 cents/bbl for 5 years)
is not sufficient, given the uncertainties of
gas and water production
• The Government could fund the pipeline,
charge for water delivery, and hope for a
payback (in water transport fees, by
continued agriculture, and > 10 year life.)
What is Next?
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Wyoming Coal Bed Methane - Big George
The Next Indian Basin Gas Field
New Treatment Technologies
“Out of the Box” Thinking About Water
Management
• A Willingness to Sacrifice Some Water
Quality for More Water Quantity
R.T. Hicks Consultants
Bohannon-Huston
US Filter