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  • 7/27/2019 An Evaluation of the Use of Hydraulic Fracturing Flowback Water for Thermoelectric Cooling in Texas.pdf

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    An Evaluation of the Use of Hydraulic Fracturing FlowbackWater for Thermoelectric Cooling in Texas

    John Maxwell

    April 19, 2012

    Energy, Technology & Policy

    Spring 2012

    Word Count: 1495

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    Texas has been and will likely continue to be a leader in the development and practice

    of the water intensive hydraulic fracturing (fracing) natural gas recovery method (Rahm

    (2011) p.2974-2976). The average hydraulic fractured well in Texas requires about 3

    million gallons per well (Galusky (2007) p.4). To perform fracing operations, water is

    pumped into the initial well along with other materials like sand and chemicals (Rahm

    (2011) p.2975). Though fracing is a small percentage of water use statewide, in local

    areas the use of groundwater in fracing can decrease water supply. About 10% of the

    water will come back up through the well bore (Jenkins (2012) p.14-16). This returned

    water is also known as flowback. Currently, about 90% of flowback is used for other

    fracing wells. Texas is also a growing state with the population projected to increase

    from about 25 million people in 2010 to 46 million people in 2060 (TWDB (2012) p.130).

    Texas is water constrained and with growing demands for water the probability is high

    for conflict over water. In addition to the municipal demand, thermoelectric power

    production requires large amounts of water cooling (Mielke et al (2010) p.29).

    Flowback could be one source of cooling water for thermoelectric plants. This paper will

    seek to explore which power plants are the best locations for a pilot program to test the

    feasibility of flowback water as well as considerations for policy options which could

    encourage a more permanent use of flowback in thermoelectric cooling. Though it may

    not be a large source of water, directing attention to developing solutions to address the

    water quantity problems should be a high priority for policymakers.

    Since water produced for use in the oil and gas industry are exempt in Texas from

    permits by the Texas Water Code ( 36.117 (b)(2)), there is less of an incentive to

    recycle because the drilling company can just pump new groundwater to complete the

    well. If not used for other projects, the water is injected into Class II disposal wells

    where it is stored to avoid harming the groundwater supply (RRC 2010). The injection of

    this water into Class II disposal wells effectively takes this water out of the system

    where it could be put to use in a productive use.

    The population growth impacts both municipal water demand as well as thermoelectric

    water demand. While most of the electrical capacity growth will likely be fulfilled by

    natural gas generation, existing coal and nuclear power plants are 8 or the 10 largest

    power plants in Texas (by net summer capacity) (EIA 2012). These large plants must

    explore additional water sources to ensure that service interruptions due to lack of

    cooling water are minimized.

    The state of Texas is the owner of surface water and can decide the allocation of water

    rights. For groundwater, Groundwater Conservation Districts (GCD) set the pumping

    limits in a given area (Texas Water Code Ch. 36). Since GCDs may limit groundwater

    and surface water rights may be difficult to obtain, thermoelectric power plants may see

    flowback as a component of cooling water (Nicot and Scanlon (2012) p. 3584). In a

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    severe drought, thermoelectric generators could be subjected to water source risks if

    either surface or groundwater allocation are changed to benefit municipal systems. At

    best, flowback water could a valuable input source of water for a few thermoelectric

    plants in Texas and at worst, could be a water hedge for these plants.

    The 10 largest power plants in Texas provide a data-set to assess the best possibility ofthe use of flowback for cooling water. 8 of these 10 power plants employ coal or

    nuclear thermoelectric technology.

    Figure 1: Largest Thermoelectric Generation Sources, Texas 2010

    Plant1

    PrimaryEnergy

    Source1

    Net SummerCapacity (MW)

    1Cooling Type

    2

    W A Parish Coal 3,664 Both

    South Texas Project Nuclear 2,560 Closed-loop

    Martin Lake Coal 2,425 Once-through

    Comanche Peak Nuclear 2,406 Once-through

    Monticello Coal 1,890 Once-through

    Limestone Coal 1,689 Closed-loop

    Fayette PowerProject Coal 1,641 Once-through

    Welsh Coal 1,584 Closed-loop

    This figure indicates the largest thermoelectric plants and the fuel source.

    The figure also gives the cool ing type for the plant once-through or closed-loop

    MW = Megawatt.Source:

    1) EIA, State Electricity Profiles, Texas2) 2010 Form EIA-860

    These are the two most water intensive thermoelectric generation types (Macknick et al.

    (2011) p.14-15). The State should first start with evaluating which plants would be

    optimal for a test of flowback and then develop more permanent policies to encourage

    the use of flowback. The main factor to evaluate which power plants are the bestcandidate for testing flowback is whether the plant is proximate to a shale gas play.

    Transport is likely the highest cost to reuse this flowback in the cooling process followed

    by treatment costs. Transportation options for the flowback to the power plant include

    through a pipeline or a truck. For the testing project, trucking the water would be

    necessary due to lack of infrastructure. Pipeline or fixed rail would be the best if

    flowback is used as a steady supply.

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    After evaluating the plants by the distance to counties that had shale gas production, 7

    of the 8 plants are proximate to one of the three main shale plays in that they are

    located within a formation affected county or within 50 miles. This indicates a possibility

    for some or all of the selected plants to conduct a flowback feasibility test.

    The three sites with the highest potential to test the acceptance of the flowback water

    are: Comanche Peak (CP), Martin Lake, and South Texas Project (STP). Both

    Comanche Peak and Martin Lake are located within a county which is located within the

    Barnett and Haynesville respectively. STP is proximate to an Eagle Ford county. The

    only plant that is not in a proximate footprint of any shale play is W A Parish.

    In the Barnett Shale, on average there were 4.4 wells drilled daily from 2005-2011. This

    amounts to on average ~13.312 million gallons of water used daily with ~1.3 million

    gallons of flowback produced daily (RRC 2011) (EIA 2012). As a once-through cooled

    plant CP consumes ~15.5 million gallons of water daily (Macknick et al. (2011) p.14-15).

    The development and proximity of the Barnett Shale to CP could produce ~9% of the

    daily water needs of CP.

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    For a closed-loop system like STP (which on average consumes nearly three times as

    much water as a closed-loop system) the flowback produced would need to be much

    higher to satisfy the demands for the plant (Macknick et al. (2011) p.14-15). The Eagle

    Ford shale is projected to have the greatest growth of water production, nearly 500

    billion gallons of water used between 2010 and 2060 and the daily flowback would be

    ~2.7 million gallons which is 6% of the water needed by STP (Nicot and Scanlon (2012)

    p.3582). In water constrained future, this could be a small but significant source of

    cooling water.

    Scaling and corrosion could affect the operational integrity of the heat exchangers and

    other sensitive parts of the power plant system (NETL (2009) p.14). For use of flowback

    in nuclear plants, the scaling and mineral standards are likely to be higher than for coal

    plants due public concern over nuclear plant integrity. The small-scale testing of

    flowback will allow the advantages and disadvantages to be made known.

    Developing policy mechanism to make flowback a more permanently available sourceto thermoelectric plants could be one way to help Texas address freshwater concerns.

    Using a template of incentives from Gillette and Veil 2004, there are numerous policy

    levers the state could use to entice the shale gas producers and power plant operators

    to work together to use flowback. The types of incentives are discussed in order of the

    level government burden (lowest to highest):

    Reduced water costs to user

    o Adjust the costs for surface water use which the plants currently pay to

    make flowback water relatively more cost-effective.

    Direct grantso Provide grants to both power plant operators and shale gas producers to

    buy and sell the water. This may lead to behavior change and enhance

    power plant industrys public image in the face of freshwater constraints.

    Assured market

    o By guaranteeing a market exists, the transportation infrastructure may be

    built and shale gas producers may be more prudent with their produced

    water knowing there will be a market for it.

    Regulatory enforcements

    o Take away exempt status of the wells used in oil gas production unless

    the water is used in a secondary process for thermoelectric power

    generation.

    At the federal level, 316(b) of the Clean Water Act requires cooling water intake

    structures reflect the best technology available for minimizing adverse environmental

    impact. (EPA 2012). Depending on the interpretation of the law, the employment of

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    flowback water could be seen as a best technology and is addressing environmental

    impacts of reduced water quantity.

    Total projected water use in the three shale plays from 2010-2060 totals around 910

    billion gallons (Nicot and Scanlon (2012) p.3582). If 10% of the water is returned to the

    surface, 9.1 billion gallons could be available to be used by the electric power industry.Though on a per year basis, flowback available for thermoelectric cooling may be small,

    more water may flow back than anticipated (Jenkins (2011) p.14-15). Due to its

    proximate location to the well-developed Barnett Shale leading to lower transportation

    costs, the best location for a flowback test at the current time is Comanche Peak.

    Though flowback is not a very large source of water, this water was going to be injected

    into the ground and put out of productive use. Texas faces dire water shortages in the

    future and many solutions will need to be developed. The use of flowback in power plant

    cooling is a small, but serious attempt to address these concerns. With the correct state

    incentive policies, flowback water could provide at least a water hedge to thermoelectric

    plants. No proposed engineering solution should be turned away by policymakers as

    technology could help alleviate the very serious water quantity concerns.

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    Works Cited:

    EPA (2012). Cooling Water Intake StructuresCWA 316(b). United StatesEnvironmental Protection Agency.

    Galusky L.P., J. (2007). "Fort Worth Basin/Barnett Shale Natural Gas Play: AnAssessment of Present and Projected Fresh Water Use."

    Gillette J. L. and Veil J. A. (2004). Identification of Incentive Options to Encourage theUse of Produced Water, Coal Bed Methane Water and Mine Pool Water. Office of FossilEnergy - National Energy Technology Laboratory Dept. of Energy. Argonne NationalLaboratory.

    Jenkins, S. (2012). "Frac Water Reuse." Chemical Engineering 119(2): 14-16.

    Macknick J., N. R., Heath G., and Hallett K. (2011). A Review of Operational Water

    Consumption and Withdrawal Factors for Electricity Generating Technologies. NationalRenewable Energy Laboratory-Dept. of Energy.

    Mielke E., Anadon L.D., and Narayanamurti V. (2010). Water Consumption of EnergyResource Extraction, Processing, and Conversion, Energy Technology InnovationPolicy Research Group - Belfer Center - Kennedy School - Harvard University.

    National Energy Technology Laboratory (NETL) (2009). Use of Non-Traditional Waterfor Power Plant Applications: An Overview of DOE/NETL R&D Efforts. Dept. of Energy.

    Nicot, J.-P. and B. R. Scanlon (2012). "Water Use for Shale-Gas Production in Texas,U.S." Environmental Science & Technology 46(6): 3580-3586.

    Office of the Governor - Rick Perry (2006). Texas County Map. TexasCounties.jpg.

    Rahm, D. (2011). "Regulating hydraulic fracturing in shale gas plays: The case ofTexas." Energy Policy 39(5): 2974-2981.

    Railroad Commission of Texas (RRC) (2010). Saltwater Disposal Wells - FAQs.

    Railroad Commission of Texas (RRC) (2011). Barnett Shale Well Count 1993-2011.barnettshalewellcount1993-2011.

    Railroad Commission of Texas (RRC) (2012). Well Distribution by County - Well CountsFebruary 2012.

    Texas Water Code (2005). 36.117. EXEMPTIONS; EXCEPTION; LIMITATIONS.(b)(2). State of Texas.

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    Texas Water Development Board (TWDB) (2012). Water For Texas - 2012 State WaterPlan.

    U.S. Energy Information Administration (EIA) (2010). Form EIA-860 Annual ElectricGenerator Report. Dept. of Energy.

    U.S. Energy Information Administration (EIA) (2012). State Electricity Profiles - 2010Texas. Dept. of Energy.