Analysts: Water Needs, Spend To Escalate Susan Klann Friday, June 23, 2017 - 7:00am

Horizontal drilling and upsized completions have fast-forwarded the oil and gas industry’s demand for water. At the same time, the lower for longer oil price recovery has placed ever more pressure on operators to cut costs, including for water, according to a new report, “Water for U.S. Hydraulic Fracturing,” from Bluefield Research. The report forecasts that at a flat rig count of 650, 20.8 billion barrels (bbl) of water will be required for hydraulic fracturing from 2017 through 2026. Last year, fracturing consumed more than 1.3 billion bbl of water and produced 574 million bbl of water for disposal. Investors and industry players are positioning to play a role in this growing water market. With operators drilling faster, and employing longer laterals, completions now require as much as 12 million bbl of water per frack—triple the volumes of five years ago, the Bluefield authors said. They project that water management, including water supply, transport, storage, treatment and disposal, will total $136 billion from 2017 to 2026 for the U.S. hydraulic fracturing sector. High reuse rates in the Marcellus and scaling Permian activity—where water per frack ratios are the highest—drove treatment spending to about $198 million in 2016 with an annual spend of $307 million expected for 2017. “Demand is rising exponentially, particularly in West Texas,” the authors said, “because of increased water volume per frack and an almost 30% reduction in time required to complete a well.” With water transport, both supplied and produced, rising in importance, the industry craves more pipeline networks and transport services, and a new midstream water sector is developing in response. “Several firms—Antero Midstream, Noble Midstream, Rice Midstream, NGL Energy—are leveraging their holding companies’ E&P footprints,” the report said. “At the same time, a new crop of market entrants, often backed by private equity, are staking out positions in select basins to capitalize on demand for water services.” The water company rolls have been diminished by the downturn, but a “select few” are rising from the ashes, according to Bluefield’s report. “Select Energy Services has filed an IPO, Nuverra remains on the edge of Chapter 11, while Fountain Quail and GreenHunter Resources have merged.” Texas and Oklahoma led the U.S. completed horizontal well count from 2011 to 2017, making them the most active markets for hydraulic fracturing and water demand. Bluefield excluded DUCs (drilled but uncompleted wells) from its forecasts; at the end of March 2017, 5,512 DUCs remained, according to DOE estimates. In Texas, oil prices, financial stress and rain have “eased the regulatory pressures in some instances,” the report said, making cost of transport the top concern. Some producers are tapping alternative supplies to enhance sustainability. In Oklahoma, earthquake concerns due to salt water disposal practices are fueling recycling efforts. Annual water demand by basin is led by the Permian, with 45% overall, the Eagle Ford, 12%, the Marcellus, 12%, the Cana Woodford, 8%, and the Haynesville, with 8%. In basins with plentiful access to saltwater disposal wells, like those in Texas and Oklahoma, treatment and reuse remains below 10%. Pennsylvania and Ohio, which have limited disposal well options and more challenging topography, have seen transportation and disposal costs rise as high as $20/bbl, according to Bluefield. This has prompted E&Ps to buy injection well assets, and another “key area of investment” has been the networking of disposal wells with pipelines across shale plays. E&Ps are investing in projects connected to wastewater plants, water recycling facilities and pipeline transport. As this still nascent water management and services value chain evolves, Bluefield is tracking several trends in particular: private water utilities leveraging their local presence; pure-play water service providers focusing on transport logistics, treatment and disposal; companies providing centralized treatment in the Marcellus; and increasingly, midstream energy service providers moving into water markets, often by leveraging their related E&P divisions. In other instances, private equity firms are backing midstream entities focused on the water value chain, with some carving out niches in individual basins. With only 6% of produced water currently being treated and reused, Bluefield projects this share will rise to 16% by 2026. Recycling of flowback water should hit 90% by the same period. And the dollars needed to fund this effort will continue to seed opportunity for investors. Susan Klann Susan Klann has more than 30 years of publishing experience, with more than half of those spent in oil and gas publishing with Hart Energy, most recently as group managing editor of Oil and Gas Investor. See full bio

Permian Basin Produced Water May Hit 1B Barrels Per Day Experts say produced water from the Permian Basin may hit 1 billion barrels per day within the next decade. July 4, 2017, at 10:53 a.m.

HOBBS, N.M. (AP) — Experts say produced water from the Permian Basin may hit 1 billion barrels per day within the next decade. The Hobbs News-Sun reports (https://goo.gl/zJXnaA ) New Mexico EnergyPlex Conference panelist Nathan Zaugg told attendees last week that the billion barrels per day estimate could fill Elephant Butte Lake in around 21 days. Produced water also contains heavy metals including zinc, lead, manganese, iron and barium. Zaugg, industrial group leader for Carollo Engineers of Salt Lake City, said his company and a New Mexico company are working together to address the problem with urgency. Ken McQueen, secretary for the New Mexico Energy, Minerals and Natural Resources Department, says companies now know the importance of recycling water, realizing brackish water as a source rather than using fresh water.

PECAN WEEVIL REGULATION DISCUSSION

PECAN WEEVIL REGULATION DISCUSSION New Mexico Department of Agriculture and Eddy, Chaves and Lea County Extension Service will be conducting a discussion with Pecan growers and related industry business owner on October 26: Roswell 9:30 am Farm Bureau building Eastern Fair grounds. Artesia CVE 1:30 pm community room 13th and Richey street Carlsbad Eddy County Extension Office 6:30 pm 1304 West Stevens The purpose of the meeting is to discuss the current situation with Pecan weevil in New Mexico and proposed emergency regulations to contain this pest. There is limited space so if you wish to pre-register or if you are in need of special assistance due to a disability please contact the Eddy County Extension Office 887-6595 at least 1 day before the class. This and all programs are available to everyone regardless of age, color, disability, gender, national origin, race, religion, or veteran status. New Mexico State University, U.S. Department of Agriculture, and the Eddy County Government Cooperating “to put knowledge to work”.

One sorrel mare with star, small snip and left front sock. The livestock was/were found at: Kevil and Haston Road south of Carlsbad

The Following Found Livestock Notice Has Been Posted on the NMLB Website: NOTICE ID 2960 - 10/20/2017 The following described livestock was/were found by the NMLB without ownership being known: - Carlsbad, NM 88220 Brand(s) described on livestock: No Brand Please Contact Inspector Kenneth Whetham at 575-840-5374 if you have information regarding ownership of the described livestock. NOTICE EXPIRATION DATE: 10/25/2017 Livestock are being held in Eddy County DOCUMENTS AND/OR IMAGES: Notice ID 2960 Pic 1.JPG Notice ID 2960 Pic 2.JPG Notice ID 2960 Pic 3.JPG If you did not sign up for this mailing list or would like to be taken off of the list Click Here and your email address will be removed from our list.

NMED Rulidoso regional water treatment

________________________________________ VILLAGE OF RUIDOSO AND CITY OF RUIDOSO DOWNS REGIONAL WASTEWATER TREATMENT PLANT JOINT USE BOARD PROPOSES WATER QUALITY STANDARDS CHANGES FOR THE LOWER RIO RUIDOSO AND UPPER RIO HONDO IN LINCOLN COUNTY, NEW MEXICO NOTICE OF PUBLIC COMMENT PERIOD EXTENDED TO DECEMBER 19, 2017 The Village of Ruidoso and City of Ruidoso Downs Regional Wastewater Treatment Plan Joint Use Board (JUB) invites the public to comment on the draft Use Attainability Analysis (UAA) and proposed amendments to the surface water quality standards (20.6.4. NMAC) for the lower Rio Ruidoso and upper Rio Hondo in Lincoln County, New Mexico. As required by the federal Clean Water Act and the New Mexico Water Quality Act, the state has established water quality standards for its surface waters. Water quality standards (WQS) identify the water quality goals for a water body, or portion thereof, by designating the use or uses of the water and by setting criteria that protect those designated uses. A UAA is a scientific study that assesses the factors affecting the attainment of a designated use. In accordance with 40 CFR 131 and 20.6.4.15 NMAC, the JUB, with technical assistance from Environmental Science Associates, has conducted a UAA for the lower Rio Ruidoso and upper Rio Hondo in Lincoln County. The draft UAA along with the proposed water quality standards amendment under 20.6.4 NMAC, are available on the New Mexico Environment Department, Surface Water Quality Bureau (SWQB) website at https://www.env.nm.gov/surface-water-quality/wqs/ The comment period for this proposal begins September 20, 2017 and has been extended to December 19, 2017 5:00 MST. Comments for inclusion in the public record must be submitted in writing to Jim Good at Environmental Science Associates, 5309 Shilshole Ave. NW, Suite 200, Seattle, WA, 98107; or by e-mail: jgood@esassoc.com For more information, please contact Jim Good at 505-697-9831 or jgood@esassoc.com ________________________________________ NMED does not discriminate on the basis of race, color, national origin, disability, age or sex in the administration of its programs or activities, as required by applicable laws and regulations. NMED is responsible for coordination of compliance efforts and receipt of inquiries concerning non-discrimination requirements implemented by 40 C.F.R. Part 7, including Title VI of the Civil Rights Act of 1964, as amended; Section 504 of the Rehabilitation Act of 1973; the Age Discrimination Act of 1975, Title IX of the Education Amendments of 1972, and Section 13 of the Federal Water Pollution Control Act Amendments of 1972. If you have any questions about this notice or any of NMED’s non-discrimination programs, policies or procedures, you may contact: Kristine Pintado, Non-Discrimination Coordinator New Mexico Environment Department 1190 St. Francis Dr., Suite N4050 P.O. Box 5469 Santa Fe, NM 87502 (505) 827-2855 nd.coordinator@state.nm.us If you believe that you have been discriminated against with respect to a NMED program or activity, you may contact the Non-Discrimination Coordinator identified above or visit our website at https://www.env.nm.gov/non-employee-discrimination-complaint-page/ to learn how and where to file a complaint of discrimination. ________________________________________ NM WATER QUALITY STANDARDS CONTACT: Jennifer Fullam 505-827-2637 https://www.env.nm.gov/surface-water-quality/wqs/

Water Research Insitute Stake holders meeting

WRRI meeting

Optimizing Water Use to Sustain Food Systems

Optimizing Water Use to Sustain Food Systems Ogallala Water Coordinated Agriculture Project Website The challenges faced by Ogallala aquifer region producers are not confined by state lines. Neither are the solutions. Water. Whether it falls from the sky or is pumped from the Ogallala aquifer, is of central importance to the High Plains economy and way of life. Groundwater pumped from the Ogallala aquifer (the principal formation of the High Plains aquifer system) has transformed the region from a Dustbowl to an agricultural powerhouse. More than 30% of U.S. crops and livestock are produced in this region, significantly impacting domestic and international food supplies…The Ogallala Water Coordinated Agriculture Project, a multi-disciplinary collaborative effort funded by USDA-NIFA, is focused on developing and sharing practical, science-supported information relevant to best management practices for optimizing water use across the Ogallala region. MORE: http://ogallalawater.org/

Meeting informs public about water application El Defensor Chieftain

Meeting informs public about water application El Defensor Chieftain By John Larson ...One question caught the co-facilitators off guard. “If this application from a multi-national company is approved, could [they] sell it to another multi-national company, say from Russia?” Besides questions, Myers read comments from the cards submitted. “This water appropriation should not happen...ranchers have senior water rights,” Socorro County rancher Randell Major commented. “This mining application has been unable to prove their pumping will not harm existing water rights. This has been going on for ten years and should be put to an end now.” More at; http://www.dchieftain.com/news/meeting-informs-public-about-water-application/article_12e769be-a946-11e7-9b0d-77c54c89c6b6.html

White sands Millitay and ranches

White sands Millitay and ranches LAS CRUCES - The dramatic history and transformation of White Sands Missile Range is the subject of this month’s Culture Series at the New Mexico Farm & Ranch Heritage Museum. “The Range: From Livestock to Missiles,” is set for 7 p.m. on Oct. 12 in the museum’s theater. The focus is ranching in the Tularosa Basin and in the San Andres and Oscura mountain ranges and how the ranchers lost their land to America's military needs. The speaker is Jim Eckles, who spent 30 years working in the public affairs office at the missile range. Admission to the presentation is free. During his time on the range, Eckles saw the Space Shuttle Columbia land, followed the Noss treasure hunters into Victorio Peak, escorted dozens of ranch families to visit their old homes, experienced many ear-splitting explosions and missile launches, and has been to Trinity Site probably more than any other human being. Eckles grew up in Nebraska and attended the University of Nebraska. He majored in psychology and English literature, and a master's degree followed at the University of Washington. Eckles, who is on the White Sands Missile Range Historical Foundation board of directors, has published three books: "Pocketful of Rockets," "Trinity: The History of An Atomic Bomb National Landmark," and "Deming New Mexico's Camp Cody: A World War One Training Camp."

Are you interested in New Mexico’s Water Future?

Are you interested in New Mexico’s Water Future? Save the dates of December 13th-14th for an important town hall on the 2018 State Water Plan. As many of you know, the state water plan sets the policy agenda for water use in New Mexico. This upcoming town hall deliberation provides the primary opportunity for the public to develop policy priorities for the plan. The town hall will take place in Albuquerque. Registration will open by November 2017.

Happy National 4-H Week

Friday, October 6, 2017 Happy National 4-H Week Opportunity to Share Your Thoughts on Positive Youth Development and other NIFA Supported Programs USDA’s National Institute of Food and Agriculture Needs Stakeholder Input on Food, Agriculture Priorities The National Institute of Food and Agriculture is accepting input from stakeholders regarding research, extension, and education priorities in food and agriculture. A series of four in-person listening sessions hosted in different regions across the country and submission of written comments will offer two ways to share your thoughts and ideas. Stakeholder input received from both methods will be treated equally. NIFA Listens: Investing in Science to Transform Lives” focuses on answering to two questions from stakeholders: • What is your top priority in food and agricultural research, extension, or education that NIFA should address? • What are the most promising science opportunities for advancement of food and agricultural sciences? NIFA wants to hear from you about priorities and opportunities in agricultural sciences. This will help NIFA prioritize science emphasis areas, identify gaps in programming, and determine which programs are redundant or underperforming. To contribute your ideas online and to register for in-person listening sessions, fill out our input form. You have the option to give a five minute oral presentation and submit written content; however, it is not required to do both. • Individuals wishing to attend in-person listening sessions must complete the RSVP in the input form no later than Thursday, October 12, 2017. If you are making a five minute oral presentation, you must submit a short 250 word abstract describing your topic. • Submissions of written comments will be accepted through Friday, December 1, 2017. The input form is one opportunity to share written comments. Please take time to consider and clearly form your answers to the questions above before filling out the form. You will be allowed 600 words for each question. You may also submit written comments via NIFAlistens@nifa.usda.gov. Four regional in-person listening sessions will be held: • Thursday, Oct. 19, Kansas City, Missouri • Thursday, Oct. 26, Atlanta, Georgia • Thursday, Nov. 2, Sacramento, California • Wednesday, Nov. 8, Hyattsville, Maryland Each session is scheduled to begin at 8:30 a.m. and end no later than 5 p.m. The sessions will be webcast live, transcribed, and made available for playback. All submissions, regardless of the mode, are processed in the same manner. Additional details, including livestream information, will be added as they become available. To stay informed on “NIFA Listens: Investing in Science to Transform Lives,” sign up for the NIFA Update, a weekly compendium of news and information that may be of interest to land-grant and non-land-grant universities, NIFA stakeholders, and other subscribers.

White sands Millitay and ranches

LAS CRUCES - The dramatic history and transformation of White Sands Missile Range is the subject of this month’s Culture Series at the New Mexico Farm & Ranch Heritage Museum. “The Range: From Livestock to Missiles,” is set for 7 p.m. on Oct. 12 in the museum’s theater. The focus is ranching in the Tularosa Basin and in the San Andres and Oscura mountain ranges and how the ranchers lost their land to America's military needs. The speaker is Jim Eckles, who spent 30 years working in the public affairs office at the missile range. Admission to the presentation is free. During his time on the range, Eckles saw the Space Shuttle Columbia land, followed the Noss treasure hunters into Victorio Peak, escorted dozens of ranch families to visit their old homes, experienced many ear-splitting explosions and missile launches, and has been to Trinity Site probably more than any other human being. Eckles grew up in Nebraska and attended the University of Nebraska. He majored in psychology and English literature, and a master's degree followed at the University of Washington. Eckles, who is on the White Sands Missile Range Historical Foundation board of directors, has published three books: "Pocketful of Rockets," "Trinity: The History of An Atomic Bomb National Landmark," and "Deming New Mexico's Camp Cody: A World War One Training Camp."

“Wetlands Across Borders Workshop – Playas of the Southern High Plains

We have to change the dates for the “Wetlands Across Borders Workshop – Playas of the Southern High Plains.” Instead of starting on October 31 and running through November 3, 2017, the new dates are Tuesday, December 12 through Friday December 15. It is still at the Clovis Community College, in Clovis, New Mexico but starting Tuesday December 12 through Friday December 15, 2017. The meeting will consist of one and one half days of presentations and panel discussions about playa ecology, conservation, restoration and other important topics about playas. The meeting will be followed by three track options – New Mexico Rapid Assessment Method Training for Playa Wetlands, a Playas and Roads workshop, or a half-day field trip to look at local playas. We will be sending out more information, a draft agenda, and an invitation to sign up for the meeting and the track options soon. If you would like to be a presenter or bring a poster to the event, please let me know as the agenda will fill up fast. There is no cost to attend but for planning purposes and limited seating for the track options, you will have to register on-line through Evite as soon as we have it available. Note that Wetlands Across Borders Meetings are for participants from neighboring states as well as New Mexico. We will be reaching out to Texas, Oklahoma, Colorado as well. If you know of anyone interested in playas, please pass on this information. Let me know if you have questions. Also, I want to thank those that attended the New Mexico Rapid Assessment Method Training for Playa Wetlands, conducted last week in Clovis New Mexico on September 27 through September 29, 2017. We appreciated your participation and helpful comments during the training. We got to experience playa wetlands first hand since two out of the three playas that we visited were inundated and it rained on day one and day two. Ducks were there enjoying the ponds and wetland vegetation. If you missed this opportunity, we will be providing the training again during the Wetlands Across Borders Workshop in December. Be there or be square! Thank you, Maryann