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Outline

Outline. Feasibility Permitting / Design Construction / Results Lessons Learned / Benefits Program Update. Feasibility. What is Concentrate/Brine . Reverse osmosis treatment plant produces two products 90% permeate (30-60 mg/L TDS) 10% concentrate (~15,000 mg/L TDS)

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Outline

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  1. Outline • Feasibility • Permitting / Design • Construction / Results • Lessons Learned / Benefits • Program Update

  2. Feasibility

  3. What is Concentrate/Brine • Reverse osmosis treatment plant produces two products • 90% permeate (30-60 mg/L TDS) • 10% concentrate (~15,000 mg/L TDS) • Concentrate stream requires disposal

  4. Concentrate Disposal Options Considered

  5. Feasibility Fatal Flaw Analysis Conducted Prior to Drilling • Potential for impact to Underground Sources of Drinking Water (USDW) • Known subsurface conditions that would preclude the use of an Injection Well • Oil & Gas Well penetrations within a 5 mile radius • Groundwater model to assess hydrogeologic conditions, injection rates, potential pressure buildup, and injectate migration • Environmental Constraints Map – to assess surface environmental conditions

  6. Permitting / Design

  7. TCEQ General Permit Class I Injection Well Defined • Authorization for a Class I injection well to inject nonhazardous brine from a desalination operation or nonhazardous drinking water treatment residuals 

  8. Class I Test Injection Well Permitting / Design Team • SAIC Energy • Subsurface Technology, Inc. • LBG-Guyton Associates • Baer Eng. & Environ. Consulting • CP&Y • San Antonio Testing Laboratory • KFW Surveying

  9. TCEQ General Permit Components • General Permit (NOI) - Over 1,400 pages • General Geology - Area of Interest • Railroad Commission Approval Letter • Well Design Details • Construction Program • Reservoir Mechanics • Waste and Waste Water Management • Well Abandonment Plans • Financial commitment for the plugging of the well was required by TCEQ 60 days prior drilling

  10. SAWS General Permit Sequence for SAWS Desalination Program • Initial Work • Original Notice of Intent (Injection Well No. 1) • Notice of Change (Injection Wells 2-5) • Notice of Change (Open Hole Completion Option) • Recent Work • Notice of Change (construction details for IW 2-3) • Current Work in Progress • Notice of Change (Pre-Injection Facilities) • Notice of Change (Pre-Injection Storage Impoundment)

  11. Class I Test Injection Well Perforated Versus Open Hole Completion

  12. Construction / Results

  13. Class I Test Injection Well Setup

  14. Class I Test Injection Well Contractor Layne Christensen • Central Texas Roads

  15. Class I Test Injection Well Coring (Confining Layer & Edwards Formation) Core Barrels Inner barrel cut prior to sending to Core Lab Del Rio Clay Edwards Formation Core Barrel Bit

  16. Upper Edwards Water Quality Greater than 10,000 mg/L Total Dissolved Solids ??? TDS > 68,000 mg/L Upper Edwards (Person Formation) Regional Dense Member Composite TDS > 90,000 mg/L Lower Edwards (Kainer Formation) Upper Glen Rose Formation

  17. Class I Test Injection Well Edwards Formation Water

  18. Well Construction Carrizo Sand (Fresh Water) Upper Wilcox Clay Injection Tubing Wilcox Sand (Brackish Water) Production Zone ~ 600 ft. Thick Midway Shale Confining Zone ~ 2,360 ft. Thick Navarro Clay Anacacho Limestone Austin Chalk Retrievable Packer Eagle Ford Shale, Buda Limestone, & Del Rio Clay Georgetown Edwards & Upper Glen Rose Limestone Injection Zone ~ 860 ft. Thick

  19. Confining Zone ~2,360 ft. Thick Production vs. Disposal Production Well Injection Well Land Surface Carrizo Sand (Fresh Water) Production Zone ~ 600 ft. Thick Upper Wilcox Clay Midway Shale Wilcox Sand (Brackish Water) TD = 1,600 ft. Navarro Clay Anacacho Limestone Injection Zone ~ 860 ft. Thick Austin Chalk Eagle Ford Shale, Buda Limestone, & Del Rio Clay Georgetown Edwards & Upper Glen Rose Limestone TD = 5,040 ft. Not to Scale

  20. Class I Test Injection Well Coring (What did we Learn?) • Flow Study • Porosity • Confining Zone - Avg. 6% • Injection Zone - Avg. 18% • Permeability • Confining Zone – 0.7 md • Injection Zone - 221 md • Acid Soluble • Mineralogy • U. Edwards – Dolomite • L. Edwards – Calcite - Anhydrite Upper Edwards Formation Lower Edwards Formation

  21. Class I Test Injection Well Injection Well Results • Depth: 5,000 – 5,300 ft • Injection Zone • Edwards Limestone • Upper Glen Rose Limestone • Native Edwards water salinity – 90,000 mg/L TDS • 450 gpm Injection Rate • Two Injection Wells required for BGD Phase I (about 1.1 MGD)

  22. Class I Test Injection Well Project Costs • Total Project Cost: $4.83M • Cost Per Linear Foot: $958

  23. Lessons Learned Benefits

  24. Class I Test Injection Well Lessons Learned from the Test Injection Well • Drilling conditions are known • Upper Edwards Formation is not an Underground Source of Drinking Water (USDW) • Re-position DV tool for second stage of cementing for the protection casing • Acidization will improve well performance

  25. Program Update

  26. SAWS BGD Program • Phase I (2016) • 12 MGD or 13,440 Acre-feet/yr. • Phase II (2021) • 12 MGD or 13,440 Acre-feet/yr. • Phase III (2026) • 6 MGD or 6,720 Acre-feet/yr. • Total • 30 MGD or 33,600 Acre-feet/yr.

  27. RO Treatment Raw Water Blending 12 MGD 10 MGD Product RO 11.11 MGD Calcite Contactor, Degasification, Sodium hydroxide Primary treatment 2 MGD Acid AS 1.11 MGD CF Post treatment 13.11 MGD Concentrate Pre-treatment AS: Anti-scalent CF: Cartridge Filter Concentrate Disposal Well

  28. Program Structure SAWS Program Manager Black & Veatch Corp. Construction Manager at Risk (CMAR) ZachryParsons Water Resources JV Design Sub-Consultants Sub-Contractors - 4 Design Teams - 20 Design Sub-Consultants - 17 SMWB Firms - 21 Local Firms - 12 Construction Packages - Multiple Subcontractors

  29. CMAR Process • Process allows: • Contractor’s input in the design • Engineer’s involvement in construction planning • Qualification based selection • Guaranteed maximum price (GMP) • Pursue SAWS SMWB goals

  30. Remaining Work for Phase I • Additional four production wells • Additional injection well • Reverse Osmosis treatment plant • Pipelines • SCADA and Electrical system

  31. Cost Phase I • Phase I total estimated construction cost is $192.66 million • $/AF: $1,177 / AF

  32. Construction Activities • Construction Manager at Risk (Zachry-Parsons) has been authorized to proceed • Site Civil & Road Construction begins in June • RO Treatment Plant construction to start during 3rd Qtr. 2014

  33. Questions?

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