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within the oil and gas field. However, once resource areas become more developed the water demand for E&P activities decreases. When this occurs, the amount of produced water requiring disposal may increase. This may increase disposal costs, particularly if insufficient injection disposal well capacity exists. Industry representatives indicated that treating and discharging produced water should be an available option in these cases and that treatment for discharge may be cost-competitive with other options. Also, there may be short-term or long-term slowdowns in drilling activity if commodity prices decrease. The associated decrease in water demand could present water management challenges that could be addressed via a surface discharge option. Industry representatives indicated that currently reuse within the oil and gas field and disposal in Class II UIC wells are generally the least-cost methods of managing produced water. In the near-term industry doesn’t see this changing on a national scale. Reuse is the preferred method of management and is utilized where possible. One major operator stated that they would not support the use of treated produced water outside the oilfield due a lack of science around treatment efficacy and associated liability risks. There are some impediments to reuse, including perceived liability as well as business competition. In addition, existing state regulations were identified as barriers to reuse in some areas. Where reuse is not available, disposal in Class II UIC disposal wells is frequently utilized. Costs for injection disposal were reported to generally be less than $1 per barrel of produced water. In addition, disposal wells were reported to be plentiful in most areas such that trucking or piping costs to these wells is low. As a comparison, treatment for discharge may cost several dollars per barrel, and may be $10 or more per barrel depending on the market and the level of treatment needed. According to industry, even when considering potential reductions in transportation costs, treatment for discharge would still cost more than injection disposal in most cases. However, industry indicated that there are currently specific areas of the country where reuse and disposal options are limited, and that treatment and discharge would be utilized if more discharge options were available. A primary driver is the distances that produced water must be transported to disposal options. Industry also indicated that there are specific areas of the country (an example is the Permian Basin) where disposal at some injection wells is limited, for example due to concerns over induced seismicity. In these cases, operators have had to transport produced water greater distances for disposal. Industry is concerned that as the quantity of produced water increases as production of oil and gas increases, that injection disposal well capacity will be insufficient to meet demand. Also, industry noted that regulatory agencies are reevaluating the suitability of some currently used injection zones and may limit or prohibit injection in those areas in the future. Industry indicated that as injection capacity decreases, other produced water management options would be needed. While use of CWT facilities is currently limited as they exist only in certain areas of the country, producers indicated that they would use commercial facilities if they were available and cost-competitive with other disposal options. Producers indicated that they have discussed increasing CWT availability with vendors and water service companies, however these companies frequently want long-term contracts with producers before investing in treatment plants. Producers generally are reluctant to engage in such contracts Study of Oil and Gas Extraction Wastewater Management 24 Section 4−The EPA’s Outreach to StakeholdersPDF Image | Study of Oil and Gas Extraction Wastewater
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