Williston Basin Petroleum Conference
North Dakota
May 22, 2012
Recycling of Drilling Waste: The Road to Sustainability
Emerging Bakken Technologies
INTRODUCTION
Oil & Gas Industry
Waste
Generated
Per Well
North
Dakota
– Williston
Basin
2012
2013
WB
1094
bbls
BAKKEN
SHALE
Rig count
230
250
OB
1227
bbls
The Waste Segment
ofVOLUMES
the O&G Industry
CRUSH
THESE
• Treatment
Louisiana
# of wells
2750
3000+
Brine
1049
bbls
• extremely
Disposal
is
vital
&
 approx. 800,000 bbls of E&P waste are generated monthly
TOTAL
3370
bbls
Depths
19000’+
more
than
ever!19000’+
(not including
producedimportant
water)
 Industry continues to expand in the Bakken
ORDER
OF WASTE
RESPONSIBILITY
 Operator
expectations
for services
are high
 Service companies doing all they can to keep up
Sourcewaste
Reduction
 Exploration & •production
continues to be high profile
 And with the new
reserve pit rule changes
• Recycling

 Texas
 volumes of waste generated are unknown
 In 2011; 23,000 drilling permits, 2012; annualized 25,000+
Bulking/Stabilization 1:1
R3 – REDUCE, REUSE, RECYCLE
REDUCE
Major
oil and gas companies are taking the lead role
in
operations to protect the environment
 Proper segregate and separation of waste;
Reduce the volume by dewatering required
The big push is on efforts to recycle as much as possible
REUSE
Recycling of Drilling Waste
 Recover oil and reuse or sell
RECYCLE
The Road to Sustainability
 Recycle the treating solids and converting it into a
product for legitimate commercial uses; primarily road
base product
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
BAKKEN MARKET / CUSTOMERS
 Market for Recycled Road Construction Materials
 Understand it
 Identify the needs
 Development the product
 Make the sale… Conceptual
No matter how noble the intent of any
recycling effort, success cannot be
 Potential
customers
identified
achieved
without
a
viable
and
 State – Dept. of Transportation
continuing
 Countiesmarket for the product
 Cities
 O&G companies
 Farmer & Ranchers
 Stipulations
 Location of product utilization
 Sustainable quantity availability
 Cost competitive
GOALS
R3 Road Base Product
(Asphalt or Cement Stabilized)
The
safermost
and improved
roadsway
for theto
landowners,
effective
do this O&G
is
operators
to partner with the Operator to
a recycled
baseand
manufacture
less dust than traditional
scoria or road
gravel roads
pads
product for their respective lease
roads,
drill
sites
and/or
public
roads
 a cleaner environment through waste minimization,
recycling of spent E&P wastes and minimization and/or
elimination of reserve pits
PRODUCTS - FORMULATIONS
 Understand the needs
 development of the recycled product
 replicate the process in the field full scale
 comply
with regulatory
criteria
Mix Design: OB
Drill Cuttings
/ Scoria
/ EA / Cement / Water
 comply with
the users directives
 Compressive
Strength
120 psi
- Asphalt / Cement Stabilized Base
 Hveem Stability
Formulation
 Compacted Weight
52
126 lbs/ft2
 E&P waste – oil, chloride & water content
 course aggregate using localized material
 emulsified asphalt
 cement
 water
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
MOBILE FACILITY
OPERATIONS
LAYOUT
Equipment & Process
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 (~208yds3/day of inbound waste; 1 yd3 = 4.8 bbls)
 1,059 tons (~623 yds3/day of outbound R3 CSB product; 1yds3 = 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
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
RESULTS
Recycled Product
RESULTS
R3 Roadbase
CONCLUSION
 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
THE ROAD TO SUSTAINABILITY
THANK YOU
Any Questions?