The company, which provides pipeline services, water reclamation and processing management services including water desalination, received approval from the Middle Pecos Water District for drilling, production and transportation of the water on STW Water’s MRK lease in Pecos County.
San Andres formation is an unused water source that typically produces nearly 3 million gallons of water per day, STW Resources says. For comparison: at peak demand, the nearby city of Fort Stockton consumes about 7 mgd.
Previously, STW Water applied for a consolidated drilling and production permit from the San Andrés formation to be utilized within the county and to be exported out of Pecos County to surrounding areas in need of water. The water district approved the permit in a unanimous decision, with STW meeting the following conditions:
- 5,000 acre-feet or 4,464,000 gallons per day for industrial use (oil and gas) with the ability to export the water out of the county.
- The drilling of one monitor well on the company’s leased property.
- Approval for three new wells to be drilled and spread out on the two properties near Imperial, Texas on land STW has under lease.
- The ability to rehab the existing two wells (MRK East & MRK West) if STW is unable to rehab the wells, whereupon the company will plug the wells with the ability to request two replacement wells from the general manager of the water district.
- The submission of a revised and updated hydrogeological study to the water district from the information obtained by drilling and testing these wells.
The company also has the ability to submit a request to the water district for a larger permit once it is determined by the hydrogeologist that the formation can withstand an increase in yield without any negative effects. Additionally, with several prospective buyers already in place, STW can begin selling water immediately.
STW Resources anticipates water sales in the first quarter of 2016 and says it has already received a letter of intent from a local customer to purchase water.
In 2013 ThermoEnergy and STW Resources completed a successful pilot test of ThermoEnergy’s TurboFrac produced water recycling system at a major oil producer’s site near Midland, Texas.