Williston Basin Petroleum Conference North DakotaMay 22, 2012
Recycling of Drilling Waste: The Road to SustainabilityEmerging Bakken Technologies
INTRODUCTION
Oil & Gas Industry
Industry continues to expand in the Bakken Operator expectations for services are high Service companies doing all they can to keep up Exploration & production waste continues to be high
profile And with the new reserve pit rule changes
Louisiana approx. 800,000 bbls of E&P waste are generated
monthly
(not including produced water)
Texas volumes of waste generated are unknown In 2011; 23,000 drilling permits, 2012; annualized
25,000+
ORDER OF WASTE RESPONSIBILITY
• Source Reduction• Recycling• Treatment• Disposal
North Dakota – Williston Basin
2012 2013
Rig count 230 250
# of wells 2750 3000+
Depths 19000’+ 19000’+
The Waste Segment of the O&G
Industry
is extremely vital &
more important than ever!
Waste Generated Per Well
WB 1094 bblsOB 1227 bblsBrine 1049 bblsTOTAL 3370 bbls
Bulking/Stabilization 1:1
BAKKEN SHALECRUSH THESE VOLUMES
R3 – REDUCE, REUSE, RECYCLE
Major oil and gas companies are taking the lead role in operations to protect the environment
The big push is on efforts to recycle as much as possible
Recycling of Drilling Waste
The Road to Sustainability
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
LIABILITYLIABILITY
BAKKEN MARKET / CUSTOMERS
No matter how noble the intent of any No matter how noble the intent of any recycling effort, success cannot be recycling effort, success cannot be
achieved without a viable and continuing achieved without a viable and continuing market for the productmarket for the product
Market for Recycled Road Construction Materials Understand it Identify the needs Development the product Make the sale… Conceptual
Potential customers identified State – Dept. of Transportation Counties 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)
safer and improved roads for the landowners, O&G operators
less dust than traditional scoria or gravel roads and pads a cleaner environment through waste minimization, recycling of spent E&P wastes and minimization and/or elimination of reserve pits
The most effective way to do this is to partner with the Operator to
manufacture a recycled road base product for their respective lease
roads, drill sites and/or public roads
PRODUCTS - FORMULATIONS
Understand the needs development of the recycled product replicate the process in the field full scale comply with regulatory criteria comply with the users directives - Asphalt / Cement Stabilized Base
Formulation E&P waste – oil, chloride & water content course aggregate using localized material emulsified asphalt cement water
Mix Design: OB Drill Cuttings / Scoria / EA / Cement / Water Compressive Strength 120 psi Hveem Stability 52 Compacted Weight 126 lbs/ft2
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
OPERATIONS
Equipment & Process
MOBILE FACILITY LAYOUT
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
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
CONCLUSION
THE ROAD TO SUSTAINABILITY
THANK YOUAny Questions?