Journal of Unconventional Oil and Gas Resources 5 (2014) 22–34 Contents lists available at ScienceDirect Journal of Unconventional Oil and Gas Resources journal homepage: www.elsevier.com/locate/juogr Regular Articles Coalbed methane produced water screening tool for treatment technology and beneficial use Megan H. Plumlee a,⇑, Jean-François Debroux a, Dawn Taffler a, James W. Graydon a, Xanthe Mayer b, Katharine G. Dahm b,1, Nathan T. Hancock b, Katie L. Guerra b,1, Pei Xu b,2, Jörg E. Drewes b,3, Tzahi Y. Cath b,⇑ a b Kennedy/Jenks Consultants, San Francisco, CA 94107, United States Colorado School of Mines, Golden, CO 80401, United States a r t i c l e i n f o Article history: Received 8 June 2013 Revised 1 November 2013 Accepted 13 December 2013 Available online 28 December 2013 Keywords: Produced water Beneficial use Environment Treatment costs Coal bed methane a b s t r a c t Produced water is a byproduct of oil and gas production and represents the largest volume waste stream in the oil and gas industry. Due to the high demand for water and the costs associated with current produced water disposal practices, energy companies and local water users are interested in cost-effective alternatives for beneficial use of produced water. The main objective of this study was to apply a previously developed and publicly available coalbed methane produced water screening tool to two simulated case studies to determine site-specific produced water treatment technologies and beneficial use options, as well as costs, using realistic conditions and assumptions. Case studies were located in the Powder River (Wyoming) and San Juan (New Mexico) Basins. Potential beneficial uses evaluated include crop irrigation, on-site use, potable use, and instream flow augmentation. The screening tool recommended treatment trains capable of generating the water quality required for beneficial use at overall project costs that were comparable to or less than existing produced water disposal costs, given site-specific conditions and source (raw produced) water quality. In this way, the tool may be used to perform a screening-level cost estimate for a particular site to determine whether the costs per barrel for beneficial use are more or less than site-specific disposal costs. The demonstrated technical and economic feasibility provide incentives to address the institutional and legal challenges associated with beneficial use of produced water. Ó 2013 Elsevier Ltd. All rights reserved. Introduction Water is generated as a byproduct of oil and gas production and represents the largest volume waste stream in the industry (GWI, 2011). For coalbed methane (CBM) (coalbed natural gas), produced water is pumped to the surface during well development and production, dewatering the formation to enable release of gas from the coal seams. CBM production in the western United States (US) has grown significantly during the past two decades and will play a key role in the nation’s energy portfolio in the future. Water produced during gas extraction must be managed and disposed of according to state and federal regulatory and permit requirements, and ⇑ Corresponding authors. Address: Kennedy/Jenks Consultants, 303 Second St., Suite 300 South, San Francisco, CA 94107, United States. Tel.: +1 (415) 243 2471 (M.H. Plumlee). Address: Department of Civil and Environmental Engineering, Colorado School of Mines, 1500 Illinois St., Golden, CO 80401, United States. Tel.: +1 (303) 273 3402 (T.Y. Cath). E-mail addresses: MeganPlumlee@KennedyJenks.com (M.H. Plumlee), tcath@ mines.edu (T.Y. Cath). 1 Present address: Bureau of Reclamation, Denver, CO 80225, United States. 2 Present address: New Mexico State University, Las Cruces, NM 88011, United States. 3 Present address: Technische Universität München, 85748 Garching, Germany. 2213-3976/$ - see front matter Ó 2013 Elsevier Ltd. All rights reserved. http://dx.doi.org/10.1016/j.juogr.2013.12.002 therefore produced water is a significant factor in the profitability of oil and gas production wells. Once the cost of managing and disposing of produced water reaches a critical threshold relative to the value of extracted gas, the CBM well is ‘‘shut in’’ (gas production is discontinued). Produced water disposal is typically via deep well injection or treatment and discharge, and therefore represents an operational challenge, an environmental risk, and a major cost for energy companies (NRC, 2010). Faced with increasing regulations, discharge water quality requirements, and costs associated with current disposal practices, energy companies are interested in cost-effective alternatives for disposal or beneficial use of their produced water. Produced water quantity, supply duration, and quality are key factors in evaluating potential beneficial uses. Beneficial use of produced water has the potential to minimize environmental impacts while providing a cost effective alternative to disposal, enhancing longevity and therefore gas recovery of CBM and gas shale fields. It also represents a new water source, potentially significant for the arid and semi-arid west of the United States and other regions around the globe. However, beneficial use of produced water faces many technical, economic, regulatory, and institutional challenges. More than 80% of current US CBM production takes place in the Rocky Mountain region, which includes the Powder River and San M.H. Plumlee et al. / Journal of Unconventional Oil and Gas Resources 5 (2014) 22–34 Juan Basins (Fig. 1). These two basins capture and contrast the known range of produced water quantity, quality, and management in western CBM basins (NRC, 2010) and were therefore selected as the locations for the case studies evaluated. The Powder River Basin extends between Wyoming and Montana, encompassing more than 25,000 square miles. The number of wells, gas production, and associated water production in the basin have increased dramatically since 1997. CBM and co-produced water are extracted from coal layers in the Paleocene Fort Union Formation and the overlying Eocene Wasatch Formation. The coal beds in the Fort Union Formation are on average 25 feet thick (NRC, 2010; Rice et al., 2002). The San Juan Basin covers approximately 7500 square miles in northwestern New Mexico and southwestern Colorado, with the majority located in the New Mexico portion of the basin (Fig. 1). Much of the CBM development in the San Juan Basin began in the 1980s, and by 2009, over 7000 CBM wells were active in the basin (NRC, 2010). The main methane-bearing unit is the Fruitland Formation, with CBM production at depths ranging from 550 to 4000 feet (NRC, 2010). The average thickness of coal seams is 6–9 feet with a maximum of 40 feet (ALL, 2003). The main objective of the present study was to apply a previously developed and publicly available spreadsheet-based screening tool for CBM produced water to two simulated case studies to determine site-specific produced water treatment technologies and beneficial use options, using realistic conditions and assumptions. Potential beneficial uses that were evaluated include crop 23 irrigation, on-site use, potable use, and instream flow augmentation, among others. Methodology Case studies development Two simulated case studies were evaluated using the Produced Water Treatment and Beneficial Use Screening Tool (Screening Tool). The Screening Tool was previously developed by the Colorado School of Mines, Kennedy/Jenks Consultants, Stratus Consulting, and Argonne National Laboratory as a decision framework to aid in the evaluation of CBM produced water treatment and use given particular site conditions and user preferences (CSM/AQWATEC, 2013a). The Screening Tool was developed as part of an effort to address a lack of public information on selecting and applying technologies to treat produced water for beneficial use, increasingly important as interest in beneficial use of produced water grows (Stewart and Takaichi, 2007). The Screening Tool and related information are available on the project website (CSM/AQWATEC, 2013b), including a case study report that provides screenshots of the tool. Potential users include energy companies and water practitioners that are interested in reducing the disposal costs associated with, and the beneficial use of, produced water. Given CBM produced water volume, quality, anticipated supply duration, and other conditions, the Screening Tool was used to determine treatment technology alternatives and costs, potential beneficial uses, and overall project costs for these uses. The Screening Tool also predicts treated water quality for the recommended treatment train. The simulated case studies use data and information that are representative of the selected site locations. This information was developed using interviews with representatives of two energy companies, literature review, and data analysis. Sufficient information was collected or assumed to utilize all aspects of the Screening Tool. Because local regulations control the allowed produced water disposal methods or beneficial uses to an energy company, an evaluation of relevant Wyoming and New Mexico regulations (where the case studies take place) was conducted and a summary is available in the Supporting information (SI). Screening Tool inputs Fig. 1. Selected coalbed methane basins in the Rocky Mountain region of the western US. The Screening Tool evaluates potential beneficial use projects using four modules: Water Quality Module (WQM), Treatment Selection Module (TSM), Beneficial Use Selection Module (BSM), and Beneficial Use Economic Module (BEM). A description of the modules is available in the Screening Tool User’s Manual (CSM/AQWATEC, 2013c), and the flow of data is illustrated in Fig. 2. Inputs to the WQM include the project location, produced water quality, and average and peak flow rates from the well field available for beneficial use. For produced water quality, the user may input known water quality or use default water quality based on the location from an extensive produced water quality database that was developed to support the Screening Tool (CSM/AQWATEC, 2013a; Dahm et al., 2011). Peak flow rate is used by the Screening Tool to size the treatment influent storage facility, and for the present case studies, was estimated as a 50% increase of the average flow rate to account for operation of additional wells or wells at peak (initial) flow. For the Powder River Basin case study, water quality data available for wells in the region were input to the WQM (see screenshot of Screening Tool step in Fig. 3), whereas for the San Juan Basin case study, default water quality available in the Screening Tool was selected based on project location (see screenshot in Fig. 4). 24 M.H. Plumlee et al. / Journal of Unconventional Oil and Gas Resources 5 (2014) 22–34 Fig. 2. Flow of information through the four modules of the Screening Tool (CSM/AQWATEC, 2013c). In addition to data imported from the WQM, the TSM requires scoring based on the importance determined by the user for 12 screening criteria (i.e., footprint, energy demand, modularity, capital cost, etc.; see screenshot in Fig. 5 for example), as well as information on the preferred percent water recovery for any desalination technologies. The preferable treatment approach for produced water depends on the beneficial use. Several potential beneficial uses may be considered (NRC, 2010; ALL, 2003, 2006). The Screening Tool groups beneficial uses into five categories listed in the first column of Table 1, and uses a set of water quality criteria for key parameters for each of the five categories. For example, the TDS criterion for Category 2 (crop irrigation) is 5000 mg/L, compared to 500 mg/L for Category 5 (potable use). In addition to the treated water quality criteria, the influent quality (produced water source) from the WQM, and the above user-input screening criteria, the TSM selects treatment technologies based on an analysis of over 40 produced water treatment technologies reported previously (CSM/AQWATEC, 2009). Inputs to the BSM include data generated by the TSM, information on the anticipated produced water supply duration and reliability, and the estimated current cost of produced water disposal ($/barrel (bbl)) for comparison to the beneficial use costs. Based on these inputs, the BSM estimates treatment costs and scores project feasibility (more details are provided in Section ‘Beneficial uses’). The BEM requires information on the selected overall beneficial use project, such as land area and infrastructure required, in addition to the information generated in the WQM, TSM, and BSM. Based on these inputs, the BEM estimates the overall project costs. Additionally, the BEM provides a range of the estimated potential value of the produced water for the selected beneficial use ($mil/year), as well as estimated environmental and social benefits ($mil/year), to provide further context for the estimated costs. The value ranges are provided in the tool for each beneficial use and were based on input from one of the tool developers (Stratus Consulting) with expertise in water resources valuation (Stratus Consulting, 2006). An exhaustive presentation of the assumptions and analysis for determining the value of the water and associated benefits is outside the scope of this article. The estimated value of environmental and social benefits are intended to provide a broad assessment of potential opportunities that may be available to support the beneficial reuse of produced water. Many of the case study inputs are presented with the results below, and more detailed information on the inputs and screen shots of the module outputs are available online (CSM/AQWATEC, 2013b). Background on case study locations Produced water volume and quality The average water production rate during CBM extraction for the 1995–2005 period in the Powder River Basin was 2.2 bbl per thousand cubic feet (MCF) of gas, compared to 0.03 bbl per MCF Fig. 3. Produced water quality data for Powder River Basin case study (screenshot of WQM output). Notes: Water quality data input from Dahm et al. (2011) or, if no data was available, from the Screening Tool WQM database. M.H. Plumlee et al. / Journal of Unconventional Oil and Gas Resources 5 (2014) 22–34 25 Fig. 4. Produced water quality data for San Juan Basin case study (screenshot of WQM output). Notes: Water quality data input from the Screening Tool WQM database. Fig. 5. TSM selection criteria user scores for the Powder River Basin case study (screenshot). Table 1 Potential beneficial uses and preferred treatment trains for the Powder River Basin, Wyoming case study from the Treatment Selection Module (TSM) of the Produced Water Treatment and Beneficial Use Screening Tool. Screening tool category beneficial use Preferred treatment traina 1 2 3 4 No treatment required Anion IX Anion IX Chemical disinfection, media filter, tight NF (brine disposal: deep well injection) – Livestock watering; impoundments; dust control – Crop irrigation; non-potable use – Constructed wetlands – Surface water discharge/instream flow augmentation; fisheries 5 – Potable use; aquifer storage and recovery (ASR) Chemical disinfection, media filter, tight NF, chemical disinfection (brine disposal: deep well injection) Anion IX = anion exchange; ASR = aquifer storage and recovery; NF = nanofiltration. a Descriptive information for each unit process is available in CSM/AQWATEC (CSM/AQWATEC, 2009). in the San Juan Basin (Osborne and Adams, 2005), where one bbl is equal to 42 US gallons (159 L). Based on average data, water production from San Juan Basin CBM wells is 25 bbl/day per well (USGS, 2000). The amount of water produced from an individual 26 M.H. Plumlee et al. / Journal of Unconventional Oil and Gas Resources 5 (2014) 22–34 CBM extraction well typically declines over the course of gas production (e.g., approximately 10 years, see Fig. 6). For a group of wells or a well field, the total water production available for beneficial use depends on management practices such as the timing of bringing new wells online while others are being shut in or their water production rate declines. Well spacing ranges approximately 40–80 acres per well in the Powder River Basin (ALL, 2003) and 160–320 acres per well in the San Juan Basin (Bryner, 2002). A produced water supply may be maintained by the operation of new wells within the well field or nearby. With respect to water quality, the major constituents of interest in produced water are the salt content (as total dissolved solids [TDS] and conductivity), oil and grease, total organic carbon, various inorganic and organic chemicals, and naturally occurring radioactive material (CSM/AQWATEC, 2013d). The salt content of produced water can range from as high as 170,000 mg/L TDS, which is approximately five times the concentration of seawater, to as low as 200 mg/L TDS, which is below the EPA secondary drinking water standard (500 mg/L TDS) (NRC, 2010; Rice et al., 2002; CSM/AQWATEC, 2013d). Compared to CBM produced water from the Powder River Basin in Wyoming and Montana, produced water from the San Juan Basin in Colorado and New Mexico is high in salinity, with TDS concentrations that can sometimes exceed 100,000 mg/L. Therefore, produced water from the San Juan Basin, without treatment, is expected to exceed water quality standards for drinking water, agricultural irrigation, and livestock watering applications (NRC, 2010). Existing disposal infrastructure Information on existing produced water disposal practices is not necessary to run the CBM produced water Screening Tool, but was reviewed for informational purposes based on case study interviews and literature review. In the Powder River Basin, multiple disposal options for produced water may be exercised by a single energy company in a given area (ALL, 2003, 2006). Disposal methods and uses that require treatment are generally avoided where possible given the cost of water treatment and the fact that no revenue is typically received for produced water delivery (e.g., for irrigation and livestock watering by local ranchers). The primary disposal options in the state of Wyoming are direct discharge to surface waters with or without treatment, depending on water quality, injection (such as into a deep well or using shallow, subsurface drip systems), or disposal into impoundments, referred to as pits or reservoirs in Wyoming regulations (NRC, 2010; Wyoming SEO, 2011; WOGCC, 2011; Wyoming DEQ, 2011). A description of the Wyoming CBM regulatory framework is provided in the SI. Even though stream discharge may be considered beneficial use (i.e., instream flow augmentation), operators view it as disposal. In a typical scenario, an operator will construct a pipeline network to transport water from wells to various disposal routes and uses, none of which usually produce revenue. The pipelines are located 6 feet underground and deliver water produced from a single well, if it is in a geographically remote location, or more often from a group of nearby wells (e.g., up to 100 wells), to a trunk line. The produced water discharges are comingled regardless of water quality, which can vary for different wells. Water is rarely delivered by gravity and must be pumped. Depending on the distance between clusters of wells and disposal routes, as well as limitations imposed by local land owners or other factors, water may be transported over distances ranging from less than a mile to more than 20 miles. Water may be delivered to multiple endpoints including on or offsite treatment plants if treatment is required for disposal compliance, to stream discharge, to a deep injection well, or most commonly, to impoundments. A typical Powder River Basin operator may manage hundreds of impoundments near wells and groups of wells ranging in capacity from less than 1 acre-foot (1233 m3) to up to 100 acrefeet (123,000 m3). Photographs of a produced water aeration structure (for treatment) and nearby impoundment are provided in Fig. 7. Impounded water evaporates and infiltrates into the ground as a means of disposal. Wyoming regulations require groundwater monitoring beneath the impoundments. From impoundments, some water may be diverted to beneficial uses such as irrigation by local ranchers, livestock watering, or on-site uses (e.g., road dust control, drilling, and enhancing wells). For untreated irrigation water where water quality is sometimes unsuitable for ranchers, the produced water may be treated by gypsum addition to reduce sodium adsorption ratio (SAR) and salting of the soils. In contrast to CBM producers in the Powder River and other basins who rely on a combination of multiple disposal options, the primary disposal option in the San Juan Basin is deep well injection with minimal treatment (NRC, 2010). A 2002 study indicated that 99.9% of produced water in the San Juan Basin is injected (Bryner, 2002). This is due to the relatively low volumes and high salinity of produced water in the San Juan Basin. However, deep well injection is a costly disposal method and provides no significant benefit. Most producers temporarily store the produced water in aboveground storage tanks prior to injection. Treatment by chlorination is required prior to injection to address bacterial contamination, Barrels of Produced Water Per Day (bbl/d) 1400 Well 1 1200 Well 2 Well 3 1000 Well 4 Well 5 800 Well 6 600 Well 7 Well 8 400 Well 9 Well 10 200 Mean 0 0 2 4 6 8 10 12 Time (years) Fig. 6. Mean water production curves (bbl/d) over the life of CBM wells (Powder River Basin case study). M.H. Plumlee et al. / Journal of Unconventional Oil and Gas Resources 5 (2014) 22–34 27 Fig. 7. Produced water aeration structures in the Powder River Basin used to remove iron and manganese prior to impoundment. and filtration is commonly conducted to prevent plugging of the injection well (NRC, 2010). Deep injection wells in the San Juan Basin are either companyowned or commercially operated. To transport produced water from the storage tanks to the injection wells, operators use pipelines or commercial trucking services, depending upon the location of the well. Aquifer replenishment and enhanced gas recovery may be ancillary benefits of well injection (NRC, 2010). With respect to produced water disposal, a description of the New Mexico CBM regulatory framework is available in the SI. Hydraulic fracturing In the course of completing this study, hydraulic fracturing was identified as a key potential beneficial use of interest for the San Juan Basin produced water. Hydraulic fracturing is a well stimulation process that uses water to enhance natural gas recovery. Produced water is increasingly recognized as a source water and is being used for hydraulic fracturing, driven by high produced water disposal costs coupled with water scarcity (AWI, 2011). Fluids and sand are injected under pressure into the formation to form fractures and pathways for gas (or oil, in the case of oil production) to reach the well. Then the gas, fracturing fluids, and produced water are pumped to the surface (flowback) for recovery and disposal. Estimates of the fluids recovered range from 15% to 80% (i.e., a portion of the water used for hydraulic fracturing returns to the surface in the flowback, along with produced water [groundwater]) (AWI, 2011; EPA, 2004). Hydraulic fracturing is infrequently used in the Powder River Basin where the natural permeability of the methane-bearing formations is high, but it is commonly used in the San Juan Basin (NRC, 2010). Each well may require fracturing at multiple depths, and each fracturing event requires thousands of barrels of water, depending on the fracturing method used. Required volumes range from 50,000 to 350,000 gallons in a coalbed formation (EPA, 2004) to 2–6 million gallons per well in a shale formation (AWI, 2011; Stewart, 2011; EPA, 2010). Currently, water from the San Juan and Animas Rivers is used as the base fluid for hydraulic fracturing in the San Juan Basin (Huang et al., 2005). Alternatively, produced water from adjacent wells can be beneficially used for fracturing operations. Produced water volume from a given well will typically exceed the volume required for hydraulic fracturing of that well, and thus excess water is available for other beneficial uses or must be disposed. These other beneficial uses may be considered using the Screening Tool. Results and discussion Powder River Basin, Wyoming Produced water volume and quality The Powder River Basin simulated case study focuses on produced water from an assumed group of 400 wells operating in an 80-square mile area in the Wyoming part of the basin. The assumed well spacing is relatively large at approximately 130 acres per well. The anticipated life of this well field and associated water production, in terms of the longevity of the gas resource, is 10–20 years, depending upon the continued development of additional wells within the well field area. The produced water volume, quality, and existing disposal approach utilized for the case study are representative of energy companies operating in the basin. A mean production curve (Fig. 6) was developed by averaging produced water quantity data for ten CBM wells having at least a ten-year history, available from the Montana Online Oil and Gas Information System for Big Horn County (DNRC, 2010) located in the Powder River Basin. The production curve is consistent with production behavior described by energy companies during case study interviews. Operators stagger the initiation of new wells in order to manage and minimize the total volume and variability of produced water from a well field, because water production is highest at the early stage of well production. Additional constraints, such as wildlife-related permitting restrictions, may limit new well construction to certain periods. The case study produced water volume available for beneficial use from the 400-well field was estimated assuming the mean well production curve (Fig. 6) and yearly initiation of new wells according to an assumed permitting schedule over a 20 year period, resulting in an average total water production of 45,000 bbl/d (1.9 MGD; 2120 acre feet per year; 7200 m3/d). This value was input to the WQM of the Screening Tool. Average produced water quality utilized for the case study is provided in Fig. 3 and was based on water quality data for approximately 90 wells in the Powder River Basin in Wyoming (Dahm et al., 2011). The average TDS concentration of the dataset is 912 mg/L, which is less than the limit for beneficial use for irrigation in Wyoming (2000 mg/L) and for livestock watering (5000 mg/ 28 M.H. Plumlee et al. / Journal of Unconventional Oil and Gas Resources 5 (2014) 22–34 L), and would generally be considered fresh water (<1000 mg/L TDS) (NRC, 2010). The average conductivity and SAR are 1493 lS/ cm and 12.9, respectively. Based on these parameters, the produced water has a slight to moderate infiltration hazard with respect to irrigation (Ayers et al., 1985). With respect to stream discharge, the average conductivity meets standards for the Powder River in Wyoming (Montana DEQ, 2003; based on requirements for downstream Montana), but the average SAR exceeds the standard and thus the produced water requires treatment prior to any stream discharge. Treatment technology For the Powder River Basin case study, the Screening Tool recommended the treatment trains listed in Table 1 for the five beneficial use categories. No treatment is necessary in this case for uses such as dust control and livestock watering, but treatment is recommended for other beneficial use categories. For all categories, product water quality using the recommended treatment meets the category water quality criteria, with brines ranging from 2400 to 3600 mg/L TDS for an influent quality of 1200 mg/L TDS (using 75th percentile constituent concentration values for conservative design). Alternative treatment trains are also recommended by the Screening Tool for each category (not shown), which the user may choose to carry forward for further beneficial use and economic evaluation in later modules. The recommended brine (a high-TDS, concentrated waste stream) disposal method is deep well injection, which may not require costly well construction if an injection well is already available to the operator, such as from previous injection of anion exchange wastewater from produced water treatment (e.g., EMIT Technologies system (CSM/AQWATEC, 2009)) for disposal compliance. The water quality criteria used by the TSM are representative of general requirements for beneficial uses, and therefore may differ in some cases from site-specific user requirements. With respect to the Powder River Basin case study, for example, Wyoming regulations specify effluent limitations of 2000 mg/L chloride, 3000 mg/L sulfate, and 5000 mg/L TDS for stream discharge and water accessible to livestock and/or wildlife (CSM/AQWATEC, 2013e). Additionally, stream discharge to the Powder River must not exceed a monthly average conductivity of 2000 lS/cm and an SAR of 5.0 during the irrigation season (NRC, 2010; Wyoming DEQ, 2003) to protect downstream uses of surface water for irrigation in Montana. However, the influent produced water quality for the case study already meets the chloride, sulfate, TDS, and conductivity criteria. The TSM-predicted product water quality for SAR exceeds the regulatory limit, and therefore post-treatment (SAR adjustment) may be required for beneficial use by stream discharge and crop irrigation. This evaluation demonstrates that for Table 2 Summary of the Beneficial Use Selection Module (BSM) results for the Powder River Basin case study. Feasibility is scored from most feasible (5) to least feasible (1). 29 M.H. Plumlee et al. / Journal of Unconventional Oil and Gas Resources 5 (2014) 22–34 site-specific water quality criteria not captured by the Screening Tool, if any, evaluation of TSM-predicted product water quality against these criteria will be required. Beneficial uses All of the produced water (45,000 bbl/day; 2120 acre feet per year; 7200 m3/d) from the Powder River Basin well field in the case study is theoretically available for beneficial use, excluding the volume of any brine produced. While treatment may be used to address water quality requirements, the total water quantity and, importantly, the anticipated duration and reliability of the supply, have a significant bearing on the feasibility of beneficial use. For the Powder River Basin case study BSM inputs, the water quantity range was 1–5 MGD (3785–19,000 m3/d), the supply timing/reliability was indicated as ‘‘consistent’’ for (at least) 5 years, and the base flow duration was indicated as (at least) five years. These inputs were selected based on an anticipated well field life of 10– 20 years, given that 30-year time frames are the next-highest BSM input choice. Using this information, the BSM of the Screening Tool scores the feasibility for each of those three criteria (water quantity, timing/ reliability, and duration), resulting in a net feasibility for each beneficial use. Also estimated are the potential economic value, capital cost for treatment equipment, and power consumption. The Powder River Basin case study beneficial uses were all at least moderately feasible, as summarized in Table 2. Assumptions that provide the basis for the feasibility and other scores are provided in graphs and tables in the Screening Tool. As an example, the score of 3.7 for potable use was based on equally-weighted scores of 5, 3, and 3 for water quantity, supply timing/reliability, and duration of supply, respectively. The weighting can be changed by the user. Water quantity received a high score based on the Screening Tool assumption of maximum feasibility when the flow is at least 1 MGD. The supply reliability and duration are moderate (consistent base flow for at least 5 years); therefore, the Screening Tool assumes a score of 3 for each. These are qualitative assumptions translated into a quantitative score based on professional experience and judgment of the tool developers. In this case, large flow projects are preferable to initiate a potable use project due to regulatory requirements, public perception, and technical issues. Though aquifer storage and recovery (ASR) has a relatively high treatment capital cost (Table 2), it ranked the highest in terms of project feasibility and highly for potential value, with moderate power consumption. Potable use and non-potable use screening results were similar to ASR except for lower project feasibility. Surface water discharge/instream flow augmentation ranked highest in potential economic value (i.e., to potential downstream users) with moderate feasibility and power consumption, though at a high treatment capital cost. Crop irrigation had a fairly high feasibility with some potential value at a low treatment capital cost, though at a relatively high power consumption. As reported in the TSM Output, the relatively high power consumption (also for constructed wetland and non-potable use) is due to the anion exchange unit process in the recommended treatment train for these beneficial uses. Project costs assumptions Project costs beyond the treatment capital costs (output by the BSM) were explored for beneficial uses of interest using the BEM of the Screening Tool. For example, land may need to be purchased or leased, pipelines built, and facilities require operations and maintenance (O&M). Three potential beneficial uses were selected to carry through to the evaluation in the BSM: ASR, surface water discharge/instream flow augmentation, and crop irrigation. For all three projects, the project life is assumed to be 15 years, required land is leased (not purchased or previously owned), and the local interest rate and energy cost are indicated – all user inputs to the Screening Tool. To estimate costs associated with flow storage and equalization prior to treatment, a storage volume associated with 60 days of peak flow above design capacity was selected. Staff number and control system assumptions were also input. For ASR, percolation ponds (rather than injection wells) were selected as the new infrastructure with a project area of approximately 70 acres (based on an estimate available from the Screening Tool). For surface water discharge and crop irrigation projects, a project area of 1-acre (for delivery pipeline and discharge facility to the stream) and 0-acres (assume land is owned by rancher), respectively, was assumed. The associated new infrastructure was a discharge facility for surface water discharge, and retrofits to existing irrigation systems for crop irrigation. The Table 3 Comparison of three potential project scenarios (beneficial uses) and cost estimates for the Powder River Basin case study from the Beneficial Use Economic Module (BEM). a b [Input] or Output Units Beneficial Use Economic Module, project scenarios [Project name] – Percolation ponds [Location] – City A, Wyoming, Powder River Basin Surface water discharge Crop irrigation [Beneficial use] – Aquifer Recharge, Storage and Recovery Surface Water Discharge/ Instream Flow Augmentation Crop irrigation Treatment traina – Filter-NF-Re-inject Filter-NF-Re-inject Anion IX [Water quantity (design flow)] mgd gpm bbl/day 1.9 1300 45,000 1.9 1300 45,000 1.9 1300 45,000 [Project life] years 15 15 15 [Interest rate] % 5% 5% 5% Estimated project capital cost total $ million 45 35 30 Annualized capital costs $mil/year 4.0 3.1 2.5 Annual O&M costs $mil/year 1.8 1.1 2.1 Total annualized costs $mil/year avg $/bblb 5.8 0.35 4.2 0.26 4.5 0.27 Estimated value of produced water for selected beneficial use $mil/year $3.4–$10 $3.8–$15.4 $0.3–$3.1 Estimated environmental benefits $mil/year n/a $0.2–$1.24 n/a Estimated social benefits $mil/year $0.03–$3.94 $0.03–$3.94 $0.07–$3.59 For complete treatment train, see Table 1. Based on design flow. 30 M.H. Plumlee et al. / Journal of Unconventional Oil and Gas Resources 5 (2014) 22–34 estimated conveyance distance for pipeline construction was five miles between the produced water source (collected from the well field using existing water management infrastructure) and the project area for ASR and surface water discharge (e.g., percolation ponds, stream) and 15 miles for crop irrigation. Screening-level estimated project costs A summary of the project costs is presented in Table 3. Compared to disposal costs for produced water, the results indicate that beneficial use can be economically competitive. If revenue is received for the beneficial use, then the comparison becomes increasingly favorable. The BEM results indicate that the total estimated annualized costs, which include the cost of the treatment technology and additional costs associated with the beneficial use project, are $4.2 million per year ($0.26/bbl) for surface water discharge, $4.5 million per year ($0.27/bbl) for crop irrigation, and $5.8 million per year ($0.35/bbl) for ASR. The per-barrel estimates refer to barrels of raw produced water. These low costs may reflect the relatively high quality of CBM produced water in the Powder River Basin. For comparison to these costs of beneficial use, a range of costs for produced water disposal is reported by operators in the Powder River Basin. There is no one ‘‘typical’’ disposal cost per barrel that is representative of all sites. Based on interviews conducted in 2000– 2001 for the area, reported costs range from $0.01/bbl (for utilizing a pipeline collection system with impoundment discharge), $0.20/ bbl (for pumping to an injection system), to $2/bbl (for hiring a commercial water hauling service). Estimated values may not take into account full costs such as weed control for pit maintenance (Boysen et al., 2002), environmental compliance monitoring, company truck fuel, and chemicals for corrosion and scale control at injection wells. Approximately 15–18% of produced water in the Powder River Basin is treated to address SAR and conductivity for NPDES-permitted discharge, at reported treatment costs of approximately $0.12 to $0.60/bbl (NRC, 2010). In this way, the Screening Tool may be used to perform a screening-level cost estimate for a particular site to determine whether the costs per barrel for beneficial use are more or less than site-specific disposal costs. Potential value of the beneficial use may also be considered (Table 3), which could significantly offset or even exceed the beneficial use project costs if realized by seeking revenue or project cost sharing for providing the high quality water to a user. San Juan Basin, New Mexico Produced water volume and quality For the San Juan Basin simulated case study, an area of approximately 550 square miles was assumed to contain over 1500 wells, with continual development of new wells via increasing well density and development in new areas. At rates typical for the San Juan Basin, the total water production for the case study is approximately 37,500 bbl/day, or 1.6 MGD (1800 acre feet per year; 6056 m3/d). Default water quality data available in the Screening Tool was used for the San Juan Basin produced water quality (Fig. 4). The default San Juan Basin TDS concentration for the Fruitland Formation is approximately 8000 mg/L. The SAR is also relatively high at 81. Some organic contaminants (e.g., benzene, xylenes) are present at low concentrations. Treatment technology For the San Juan Basin case study, the Screening Tool recommended the treatment trains listed in Table 4 for the five beneficial use categories, based on user-input criteria and default influent (produced water source) quality. The default water quality is determined from an extensive database that was constructed to support the Screening Tool, as described in Section ‘Screening Tool inputs’. The Screening Tool provides estimates of the treated water and brine water quality, capital costs, power consumption, equipment life, and brine volume produced from each of the treatment trains. For four of the five beneficial use categories, the Screening Tool recommended treatment involving an artificial wetland and thermal distillation (among other unit processes, Table 4). The similarity of recommended treatment trains is driven by the influent water quality and user-input selection criteria (weighted preferences). Thermal distillation is recommended over membrane treatment (nanofiltration, NF) due to the high TDS of the feed water. In practice, an engineer may prefer NF/reverse osmosis (RO) followed by brine distillation for these beneficial use categories. Recognizing certain limitations of the existing Screening Tool, the next version (currently under development) will allow the user to define a treatment technology process (such as by excluding or including specific processes). For the San Juan Basin case study, percent recovery was set as 85%, as this higher recovery resulted in a lower cost due to the decreased brine volume. The TSM provides the anticipated product water and brine quality for each treatment train/beneficial use category. With respect to the brine produced from thermal distillation, the TSM indicated a brine concentration and flow rate of approximately 54,000 mg/L TDS and 5600 bbl/day, respectively (for 85% recovery). The daily brine volume is larger if the combined waste streams from other unit treatment processes in the treatment train are considered (resulting in 10,000–14,000 bbl/day total for the San Juan Basin case study, depending on the treatment train). In the course of completing this study, hydraulic fracturing was identified as a key potential beneficial use of interest for the San Juan Basin. Water quality requirements for the base water used in hydraulic fracturing vary depending upon the operator and their site-specific hydraulic fracturing chemistry (i.e., proprietary chemicals that will be added to the base water), as well as local regulations. When river or ground water is used as the base fluid, disinfection and low levels of organics, TDS (e.g., 500 mg/L), Table 4 Potential beneficial uses and preferred treatment trains for the San Juan Basin, New Mexico case study from the Treatment Selection Module (TSM). Screening Tool category beneficial use Preferred treatment traina 1 – Livestock watering impoundments; dust control 2 – Crop irrigation; non-potable use Wetland, UV disinfection, media filter, acid cation IX (H), GAC, thermal distillation (Brine disposal: evaporation ponds) Wetland UV disinfection media filter, acid cation IX (H), GAC, thermal distillation (Brine disposal: evaporation ponds) Wetland UV disinfection media filter, acid cation IX (H), GAC, thermal distillation (Brine disposal: evaporation ponds Wetland, UV disinfection, media filter, acid cation IX (H), GAC, thermal distillation (Brine disposal: evaporation ponds) UV disinfection, chemical softening coagulation, media filter, acid cation IX (H), thermal distillation, chemical disinfestion (Brine disposal: evaporation ponds 3 – Constructed wetlands 4 – Surface water discharge/instream flow augmentation, fisheries 5 – Potable use; ASR Acid cation IX = acid cation exchange; ASR = aquifer storage and recovery; GAC = granular activated carbon; UV = ultraviolet. a Descriptive information for each unit process is available in CSM/AQWATEC (CSM/AQWATEC, 2009). M.H. Plumlee et al. / Journal of Unconventional Oil and Gas Resources 5 (2014) 22–34 31 Table 5 Summary of the Beneficial Use Selection Module (BSM) results for the San Juan Basin case study. Feasibility is scored from most feasible (5) to least feasible (1). naturally occurring radionuclides (NORM), and barium or sulfate are typically required (Stewart, 2011). However, new chemical additives for hydraulic fracturing allow the use of higher TDS water. This provision will be incorporated into the next version of the Screening Tool. The current version of the Screening Tool does not explicitly consider hydraulic fracturing as a type of beneficial use, and therefore does not score its feasibility in the BSM (i.e., Table 5, next section) nor provide project cost estimates for any necessary (non-treatment) infrastructure in the BEM. Nevertheless, the Screening Tool was valuable to assess potential treatment technologies and costs for this beneficial use by conservatively assuming that water quality criteria for hydraulic fracturing are similar to potable use criteria. Therefore, the treatment train recommended for potable use (Table 4) was assumed to also be appropriate for hydraulic fracturing. Depending on the operator, potable use criteria may be too stringent for hydraulic fracturing; however, it represented a conservative choice for this exercise. The next version of the Screening Tool (currently under development) will accommodate additional beneficial uses and allow the user to define the target water quality for a specific beneficial use. In the meantime, users may select the beneficial use category having water quality criteria (which are indicated in the tool) most similar to their site-specific requirements. Beneficial uses For the San Juan Basin case study BSM inputs, the water quantity range was 1–5 MGD, the supply timing/reliability was indicated as ‘‘consistent’’ for (at least) 30 years, and the base flow duration was indicated as (at least) 30 years. The reliability and duration were based on an anticipated produced water supply life of 15–20 years, or perhaps as long as 30 years depending on continued development. As described in the Powder River Basin case study, the BSM uses this information to determine a net project feasibility, as well as potential economic value, capital cost for treatment equipment, and power consumption for five categories of beneficial use. The case study beneficial uses were all characterized as highly feasible, as summarized in Table 5, given that the water quantity is large, the supply reliability is high, and the duration is long-term. All categories had similar capital costs and energy requirements associated with treatment due to the similar treatment trains recommended. Project costs assumptions For the San Juan Basin case study, surface water discharge/instream augmentation use and hydraulic fracturing were selected as the beneficial uses of interest for further evaluation and project 32 M.H. Plumlee et al. / Journal of Unconventional Oil and Gas Resources 5 (2014) 22–34 Table 6 Potential project scenarios and cost estimates for the San Juan Basin case study from the Beneficial Use Economic Module (BEM). [Input] or Output Units Beneficial use economic module, project scenarios [Project name] – Surface water discharge [Location] – City B, New Mexico, San Juan Basin – Surface water discharge/instream flow augmentation See footnotea [Beneficial use] Treatment train b Hydraulic fracturing – Filter-IX-GAC-Thermal Distillation-Evap Filter-IX-Thermal Distillation-Evap [Water quantity (design flow)] mgd gpm bbl/day 1.6 1,100 37,000 1.6 1,100 37,000 [Project life] years 20 20 [Interest rate] % 5% 5% Estimated project capital cost total $ million 65 51 Annualized capital costs $mil/year 5.1 4.0 Annual O&M costs $mil/year 5.0 4.5 Total annualized costs $mil/year 10.1 avg $/bbl 0.75 8.5 0.63 Estimated value of produced water for selected beneficial use $mil/year $3.1–$12.7 NAc Estimated Environmental Benefits $mil/year $0.16–$1.02 NAc Estimated Social Benefits $mil/year $0.03–$3.24 NAc a Hydraulic fracturing is not a category of beneficial use that is explicitly considered by the Screening Tool. ‘‘Potable Use’’ was selected for beneficial use category because the water quality criteria employed by the tool for this use are most similar to hydraulic fracturing criteria (driven by relatively low TDS criteria) compared to other Screening Tool beneficial use categories. b For complete treatment train, see Table 4. c Related to footnote ‘a’, estimated potential values predicted by the BEM are specific to the beneficial use category, and therefore in this case the values generated relate to potable use not hydraulic fracturing. cost assessment in the BEM of the Screening Tool. Surface water discharge may be of particular interest to some Screening Tool users for the potential marketing of treated water via surface water discharge to downstream users. As described previously, hydraulic fracturing is particularly relevant to the San Juan Basin region. For surface water discharge, project inputs used to determine overall project costs included one acre leased from the Bureau of Land Management (BLM) for the treatment plant and construction of the discharge facility to the river (which was selected as required new infrastructure). The conveyance distance from treatment to the discharge location was estimated to be 10 miles. For hydraulic fracturing, the ‘‘potable use’’ beneficial use category was used to represent hydraulic fracturing for the purposes of treatment technology selection (as described in Section ‘Treatment technology’), which automatically carries through to the BEM. The resulting BEM project cost estimate is considered applicable because potable use-related infrastructure (e.g., pipelines, connection to potable system) was indicated as not necessary via menu options in the BEM. This left an estimated project cost based solely on treatment costs and 1-acre land area, plus facility, overhead, and contingency costs. This is acceptable because hydraulic fracturing is an on-site activity already conducted using an alternate water source and previously established infrastructure, and therefore additional land and infrastructure are not likely to be required to employ use of produced water for this beneficial use other than the treatment technology. For both projects, the project life was estimated to be 20 years, local interest rates and energy costs were assumed, and a storage pond with adequate volume for 14 days of peak flow above design capacity was selected (for flow storage and equalization prior to treatment). Screening-level estimated project costs A summary of the project costs is presented in Table 6. Compared to disposal costs for produced water, the results indicate that beneficial use can be economically competitive in the San Juan Basin. If revenue is received for the beneficial use, then the comparison becomes increasingly favorable. BEM results indicate that the total estimated annualized costs, which include the cost of the treatment technology and any additional costs associated with the beneficial use project are $10 million per year ($0.75/bbl) for surface water discharge and $8.5 million per year ($0.63/bbl) for hydraulic fracturing. These costs are comparable to deep well injection costs for disposal of produced water in the San Juan Basin, which is site-specific and averages $1 to $4 per barrel. Produced water disposal costs per barrel tend to be higher for commercially operated wells and/or if commercial trucking services are used (Huang et al., 2005; Boysen et al., 2002). Screening Tool users estimating project costs for use of produced water for hydraulic fracturing will also be interested in comparing the costs to their existing (site-specific) costs for using other sources of water. The results of the BEM indicate that the potential beneficial use projects may be less costly than the current disposal method in the San Juan Basin. Additionally, for hydraulic fracturing, these costs would replace the current costs of transporting the alternate water source (e.g., San Juan River water). With respect to stream discharge, the potential economic value (Table 6) could significantly offset or even exceed the beneficial use project costs. Conclusions Management and disposal of produced water, typically via deep well injection or treatment and discharge, represents an operational challenge and a major cost for energy companies. The case studies developed using the Produced Water Treatment and Beneficial Use Screening Tool were based on realistic conditions and assumptions for the Powder River and San Juan Basins at the time of the study, and demonstrated the feasibility of various beneficial uses of produced water. Treatment technologies are available to treat the produced water to the level of quality required for the beneficial use, at an overall project cost that may be comparable to or less than the existing disposal cost. Further, costs associated with beneficial use may be offset by potential value, if realized by seeking revenue for provision of M.H. Plumlee et al. / Journal of Unconventional Oil and Gas Resources 5 (2014) 22–34 the high quality treated produced water. This may be achievable given the high demand for water and its economic value in the arid western United States. Example uses include local crop irrigation and livestock watering, or indirect potable uses such as via ASR. There are a few known cases in which produced water from oil and gas activity was marketed and used for potable supplies (NRC, 2010; Stewart and Takaichi, 2007; Stewart, 2006). Costs may be offset by on-site use as well, such as for hydraulic fracturing. Unlike livestock watering, irrigation, and nearby potable users, hydraulic fracturing and other on-site uses are not limited by the proximity of a potential user to the produced water source and do not require coordination between the energy company and another party. Water transfer to downstream users via stream discharge is also not limited by the proximity of the user. A theoretical example is produced water discharged to rivers upstream of reservoirs used for potable water supply. Produced water from the Powder River Basin is discharged to rivers upstream of reservoirs and therefore has indirectly augmented these reservoirs (ALL, 2006), though it has not been marketed or discharged directly for this purpose. The next version of the Screening Tool (currently under development) will accommodate additional beneficial uses and allow the user to define the target water quality for a specific beneficial use. Additionally, it will allow the user to define a treatment technology process and exclude or include specific processes, if desired. The first update of the Screening Tool is estimated to be available by the end of 2014. While the Screening Tool case studies demonstrate the technical and economic feasibility of beneficial use of produced water, which is increasingly recognized, there remain institutional and legal challenges, particularly with respect to water rights, water marketing, and transfer. As an example, interstate water marketing in the Colorado River Basin is discussed further in the SI. The oil and gas industry’s unfamiliarity with the water industry, and vice versa, represents a key challenge (Stewart and Takaichi, 2007). Examples of other non-technical barriers to implementation of beneficial use have been summarized in previous publications (NRC, 2010; ALL, 2006). The high demand and value of water, availability of cost-effective treatment technologies, and potential cost savings to energy companies provide the incentives to address these challenges. Technical and economic assessments like the presented case studies and some example projects (e.g., Stewart and Takaichi, 2007) have taken steps forward to demonstrate feasibility. Acknowledgments The authors thank the Ultra-Deepwater and Unconventional Natural Gas and Other Petroleum Resources Research and Development Program for funding the project (Grant #07122-12) as part of the Research Partnership to Secure Energy for America program administered by the US Department of Energy’s National Energy Technology Laboratory. 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