HYDRUS TECHNOLOGY

FRACTURE STIMULATION FLOWBACK WASTEWATER TREATMENT

HTXSolutions,LLC 2

1.0 Introduction & Background

Hydraulicfracturing,knownasfracing,iscommonlyappliedtowellsforshalegas,tightgas,tightoil,andcoalseamgas(CSG)togreatlyincreasetheflowrateinanotherwiselowpermeabilityreservoir.Fracturingisawell-stimulationtechniqueinwhichlargevolumesofwateraremixedwithadditivesandsubsequentlyinjectedintorockformationssuchasshale.Therockisfracturedbyhydraulicallypressurizedfracingfluidthatcontainschemicaladditivestoreducefriction,bacteria,andprovidepathwaysforthehydrocarbonstoflow..Uponcompletionofthefrac,aportionofthisfluidreturnsoutofthewellandisknownasflowbackfluid.Thisflowbackcontainsalargecomponentoffracingfluidmixedwithbrineformationwaterfromtherockandrequirestreatmentordisposal.

Largescalehydraulicfracturingisnowcreatingnewdemands,challengesandconstraintsfortheuse,supply,treatmentanddisposalofflowbackwaterthatreturnsfromthewellduringfracing.Thetreatmentofthiswaterforeitherre-useorreleasetotheenvironmenthaslaggedbecauseofthetechnicalcomplexityandcost.Asaresult,theimplementationofmobiletreatmenttechnologythatcleanscomplexfracturingfluidflowbackisrequiredforbeneficialre-useorenvironmentaldischarge.

2.0 Key Challenges

Concernfortheenvironmentalimpactofhydraulicfracturingiswidespreadwithmanyinthecommunityconcernedaboutcontaminationofgroundwater,thedepletionofscarcefreshwaterresources,degradationofairqualityarisingfrommethaneleakagetotheatmosphere,thetriggeringofearthquakes,noisepollution,surfacepollution,andtheconsequentialriskstohealthandtheenvironment.

Increasesinseismicactivityfollowinghydraulicfracturinghavebeenattributedtothedeep-injectiondisposalofflowbackandbrine,whichisproducedfromhydraulicallyfracturedwells.Forthesereasons,hydraulicfracturingisunderinternationalscrutiny,restrictedinsomecountries,andbannedaltogetherinothers.Someofthosecountries,notablytheU.K.,haverepealedbansonhydraulicfracturinginfavorofregulation.TheEuropeanUnionisdraftingregulationsthatwouldpermitcontrolledapplicationofhydraulicfracturing.InAustralia,legislationvariesacrossstateboundariesandtherehasbeenareluctanceofgovernmentstoact.

3.0 Technical Solution

Thecoretechnologiesforfracstimulationwatertreatmentincludeelectrochemistry(EC),chemi-adsorption,chemicaloxidation(suchaschlorinedioxide,ozone,etc.),IonExchange,andmembranefiltration(suchasNano-filtration,ReverseOsmosis,etc.).Akeyingredientoffracfluidisguar-basedgum.Whenboraxorzirconiumchemicalsareadded,theycrosslinkamongguar-basedgumtoprovideahighviscositysupportfortheproppantssuchassandandaluminausedinfracingoperations.

HTXSolutions,LLC 3

Whenfracingiscomplete,itiscustomarytoreversethecrosslinkingandrecoverthefracfluidfromtheholeforre-use.HydrusTechnologyhasdevelopedamulti-stageapproachtoenablethewaterforfracfluidtobeeitherre-usedforfurtherfracing,ortobereleasedsafelytotheenvironment.

Thesestepsinclude:

1. Hydrus(‘HTX’)firststagetreatmentisanemulsion-breakingstepdesignedtoseparatetheoilfromthewaterthatoftenarisesfromdrillingandfracingoperations.Thefirststageenablesdissolvedoremulsifiedoilstobereturnedasproduct.

2. ThesecondstageHTXtreatmentcombinescatalyticallyenhancedoxidationwithanexcessofferrous(Fe2+)ionstoenablecompleteoxidation

3. Aclarifierstep(stage3)thensettlesthewatertoenableittobesenttoeitherthefinalpolishingstep.

4. Liquidsludgeataround2%solidsbyweightispumpedtoadewateringsectionwheresludgeisfirstdensifiedbyfurtherflocculation,followedbydewateringinaninclinedscrewpress.

ThesystemisconfigurabletoprovidesecurecommunicationwithHydrusTechnologycloudserversforauthentication,remoteoperation,diagnostics,andchangedparametersforchangedinfluentwaters.Thecontrolsystemensuresmaximumsafeoperatinguptimeinthefield,providingcertaintyforclients.

4.0 Benefits

BenefitsarisingfromtheHydrusTechnologyapproachtofracwatertreatmentinclude:

1. Emulsionbreakingasafirststepenablesrecoveryofemulsifiedlightandheavyoilcomponentsfromthefrackingliquid,forreturntotheclient.

2. Useofcatalyzedoxidationprocessesavoidstheneedfortransport,storageanduseofpowerfuloxidizingagentsasusedbyourcompetitors,withattendantoperationalrisksofexplosionwhileintransit,spillagecausinggroundorsurfacewatercontaminationand/orHealthSafetyandEnvironment(HSE)issues

3. Useofnano-filtrationenablesrecoveryofaceticacid,widelyusedinfracingandcleanupoperationsasabiodegradablepHadjusterandironcontrollingagent

4. Thehighqualityofthetreatedwaterprovidestheopportunityforeitherre-useorsafereturntotheenvironmentincompliancewithtypicalEPAGuidelines

5.0 Conclusion

HydrusTechnologyhasaclearsolutiontotherapidlyemergingcrisisthatsurroundstheenvironmentalimpactofhydraulicfracturestimulationfluids.Thesolutionincorporatestheproductionofbiodegradablecomponentsandreturnofthesetooperatorsforfurtherwellandformationdevelopment.Sludgedisposaloffsiteislimitedtoarelativelysmallcomponentof20%solidscake,whichmeetsallrelevantcriteriafordisposalinalandfill.

Thetechnologyrepresentsastate-of-the-artmobilewatertreatmentsystemanditisimperativethatsuchtechnologiescometotheattentionofboththepublicandthevariousregulatorsfortheemergingindustryofunconventionaloilandgas.