Putting Produced Water to Work A White Paper Prepared by CalFLOWS T wo industries anchor Kern County’s economy – agriculture and oil production. Helpful Unit Conversions While this fact is 1 barrel =............................................... 42 gal. well-known, it is less well-known that both industries manage large volumes of water. 1 acre-foot =.......................................326k gal. .................................................... 7,760 barrels In Kern County, agriculture uses nearly 2.3 million acre-feet of water each year (49 million barrels per day) to produce 10k bbl/day =.................................. 470 ac-ft/yr crops worth more than $7.5 billion. This represents 15% of 10k ac-ft/yr =.................................213k bbl/day the county’s non-government gross domestic product and makes Kern County the nation’s second largest agriculturally every barrel of oil produced in Kern County, approximately productive region.1 13 barrels of “produced water” accompany it. In Kern While many Californians are aware of Kern County’s County, this means 5.4 million barrels of water each day prolific oil and gas production, it is often unknown that oil (254,000 acre-feet per year) are brought to the surface.2 production also produces significant volumes of water. For Finding opportunities to manage produced water is critical 1. Kern Economic Development Corporation’s 2016 Kern County Market Overview and Investor Directory and Water Association of Kern County usage statistics. 2. California State Division of Oil, Gas, & Geothermal Resources on-line database for2015. 1 Just what is produced water? to enabling oil production. In fact, without viable alternatives to manage produced water, oil production would decrease. Water that exists in subsurface hydrocarbon-bearing Water supplied to Kern County’s agriculture industry comes formations and is brought to the surface during oil and gas primarily from surface water sources such as the Kern River, production is known as produced water. Formation water the State Water Project, and the Central Valley Project and from exists naturally along with hydrocarbons and varies in quality groundwater. These supplies supplement what little rainfall occurs depending on the environment, e.g. marine, brackish, or in the San Joaquin Valley. Various surface water supplies have continental fresh water. become unreliable in recent times. Severe curtailments of surface Produced water is reused in steam generation and water flood water deliveries from the State and Central Valley Projects (in techniques to facilitate oil production. Approximately one-fourth of some years farmers have received no water from these sources) Kern County’s produced water is beneficially used within the oil have forced farmers to rely on increased groundwater pumping fields themselves, reducing or eliminating the need to use fresh to meet their needs. All of these issues have forced thousands of water for most oil and gas production activities. The remaining acres of prime agriculture land to be fallowed. produced water is usually reinjected back into subsurface In 2014, California enacted the Sustainable Groundwater reservoirs from which it came by way of specially permitted Management Act to regulate groundwater. The Act requires that injection wells. The injection process is regulated by the California each groundwater basin in the state develop plans to sustainably Division of Oil, Gas and Geothermal Resources through a balance water inflows with pumping from the basin, much like memorandum of understanding with the federal Environmental individuals and businesses must balance the credits and debits Protection Agency. to their checking accounts. As landowners, water districts, local How much produced water is there and generally, what is its quality? governments and other stakeholders come together to develop these plans, there is a clear need for increased reliable deliveries The graph at right illustrates the volume of produced water from the State and Central Valley Projects and/or altogether generated in Kern County and more importantly, how much is new water supplies to Kern County. Without these new water potentially available for reuse. 3 supplies, farmers will be unable to avoid fallowing hundreds of thousands of acres of otherwise productive land. Lacking reliable An additional 150,000 acre-feet per year (3.4 million barrels per day) water supplies, the region’s economy will falter. of produced water is potentially available for reuse in Kern County. This setting – an agricultural economy dependent upon reliable As for produced water quality, oilfields east of the Interstate 5 water supplies in the same area as oil producers managing corridor in Kern County yield produced water that is of better large volumes of produced water leads to an intriguing question: quality (i.e. generally lower in hardness and total dissolved solids) as compared to produced water on the west side. Because of Is it possible to put more produced water to work in Kern County? this, fewer and less energy-intensive treatment steps are needed to beneficially reuse eastside produced waters. This paper explores that very question. 3. Total produced water by year represents DOGGR records for Kern County. 2 300,000 6,000,000 250,000 200,000 4,000,000 150,000 3,000,000 ACRE FT/YR WATER (BPD) 5,000,000 100,000 2,000,000 50,000 1,000,000 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 YEARS USED IN OIL PRODUCTION CURRENTLY TO AG IRRIG How much produced water is being put to beneficial use? FOR POTENTIAL ADDITIONAL BENEFICIAL USE Outside of Kern County, there are examples of produced water being put to beneficial use where produced water treatment plants supply treated water to benefit nearby surface/groundwaters: A signiciant portion of produced water is used beneficially as part of oil and gas production itself, e.g., for steam generation The first example is near the City of Pismo Beach in San and other enhanced oil recovery techniques. In addition to that, Luis Obispo County. In operation since 2013, this treatment several eastside oil fields have supplemented supply to 34,000 plant is permitted to discharge 20,000 barrels per day (940 acres of crops for more than 20 years. An average of 600,000 acre-feet per year) to Pismo Creek. barrels per day (28,300 acre-feet per year) of treated produced Another example is in Monterey County along the Salinas water has been beneficially used within areas of Cawelo Water River. This treatment plant is permitted to introduce 50,000 District, located just north of the City of Bakersfield.4 barrels per day (2,350 acre-feet per year) for aquifer For the North Kern Water Storage District located to the west of recharge. It has been in operation since 2007. the Cawelo Water District, treated produced water is being used for irrigation and groundwater recharge with permits in place to In each case, various steps take produced water and treat it to deliver 21,200 acre-feet per year (451,000 barrels per day). meet permit limits for use outside of the oil field, whether it be irrigation, stream flow augmentation, environmental restoration, 4. Chevron / Cawelo Water District / Valley Water Management Co. joint presentation to the Central Valley Regional Water Quality Control Board’s Food Safety Panel, January 2016 3 or groundwater recharge. Water processing and treatment more produced water to work means a more stable economy depends on the quality of the water as it is produced and its for everyone in Kern County, and an increase in local water intended beneficial use. supplies and local supply reliability. Could even more produced water be put to beneficial use? The California Forum for Leadership on Water Solutions (CalFLOWS) was organized to be a unified voice in support of finding new, sustainable water supplies to meet California’s The simple answer is “yes.” More produced water could be growing water needs and ensuring that beneficial reuse treated and put to use in Kern County. The challenge is finding of treated produced water is part of the solution. Consider commercially and economically viable projects for beneficial participating in CalFLOWS to learn more, stay connected, and reuse to transform treated produced water into new water play a part in innovating California’s water future. supplies for irrigation, banking, groundwater recharge or other uses. Public-private partnerships that bring together varying industries and government entities represent a promising pathway to successful reuse of even more produced water. Related to this, Kern County’s recently adopted Oil & Gas Zoning Ordinance requires additional produced water reuse. Oil producers are to “work with local agricultural producers and water districts to identify new opportunities to increase the use of produced water for agricultural irrigation”. The stated goal is 30,000 acre-feet per year (640,000 barrels per day) in addition to existing produced water uses. Further, in June 2016, California’s State Water Resources Board released a new general order to help promote water recycling projects, including the development of new “water reclamation requirements.” This new general order CalFLOWS – California Forum for Leadership on Water Solutions is an attempt to provide regulatory clarity throughout California that incentivizes investment in water recycling facilities. Where do we go from here? www.calflows.com Putting more treated produced water to work in Kern County will sustain energy production while helping the county find [email protected] solutions for its growing water needs. For oil and gas producers, it means improved reservoir management and increased facebook.com/calflows partnership with local communities. For water managers and twitter.com/calflows irrigators, it represents potentially new water supplies outside of existing surface and groundwater resources. Overall, putting 4
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