Cimarex Water Reuse Prepared for the FOURTH MEETING in 2017 of the - PowerPoint PPT Presentation

Cimarex Water Reuse Prepared for the FOURTH MEETING in 2017 of the WATER AND NATURAL RESOUCES COMMITTEE October 12-13, 2017 New Mexico Institute of Mining and Technology Socorro Robert Huizenga, Cimarex Energy Company

Summary — The Goal — Reuse Backstory — Current Reuse Process — Conclusions 2

The Goal Develop long term water sourcing and disposal solutions for development projects 3

Reuse: Area 4

Reuse 2013-2014: Process 5

Reuse 2013-2014: Volume Reuse Volume (bbls) Distilled Water 840,000 Heavy Brine 130,000 Total 970,000 6

Reuse 2013-2014: — Pros — Removes Total Suspended & Dissolved Solids — Provides concentrated brine water — Complies with current Texas regulations — Cons — Capital Outlay/Long-Term Contracts — High processing costs/bbl — Low yield of distilled water — Concentrated brine water — Disposal of solids — Fixed location facility 7

Reuse 2015: Process 8

Reuse 2015: Volumes Reuse Volume (bbls) Produced Water 464,000 9

Reuse 2015 — Pro — Removes Total Suspended Solids — Complies with current Texas regulations — Lower processing costs/bbl — Con — Capital Outlay/Long-Term Contracts — Disposal of solids — Fixed location facility 10

Reuse 2016-?: Goals — Water Quality — Control Total Suspended Solids > 25 microns — Control Bacteria — Operational — Flexible process rate — On-Demand system 11

Reuse 2016-?: Process Salt Water Disposal Well 12

Reuse 2016-?: Pitfall 20,000 bpd 75,000 bpd Produced Produced 250,000 bbl Pit Water Water Empty Pit = 4.5 days 340,000 bbls of Water 13

Reuse 2016-?: Pitfall 20,000 bpd 75,000 bpd Produced Produced 1,000,000 bbl Pit Water Water Empty Pit = 18.2 days 1,364,000 bbls of Water 14

Reuse 2016-?: Cimarex’s View 5,000 bpd Non- Produced Water 75,000 bpd 70,000 bpd Produced Water Frac Tanks Produced Water Minimize the use of Non-Produced Water Reduced environmental liability 15

Reuse 2016-?: Volumes Year Reuse Volume (bbls) 2016 4,000,000 2017 6,100,000 Total 10,100,000 16

Reuse 2016-?: — Pros — No Capital Outlay/Long-Term Contracts — Less operational “maintenance” cost — Reduced environmental liability — Cons — Field or Hydraulically limited to water production — Disposal of solids — Balancing act with production operations 17

Conclusions — Reuse is an evolving process — On-the-Fly filtering works 18