Business Description

SALT CAVERNS VS. INJECTION WELLS

FOR DISPOSAL OF OIL & GAS WASTE:

1. Most oilfield waste disposal sites are for fluids only. Fluids must be pre-filtered and pumped under pressure into a non-productive zone underground or into a zone that is productive, but suitable for receiving fluids. Pore space and permeability (ability of fluids to migrate through rock) are critical. Operations could require high injection pressures (2,000 lbs. per square inch) or more. Salt Caverns do not require extensive filtration, nor do they require high pressures for injection.

2. The high pressures associated with fluids injection into rock formations creates a real risk of the injection well causing fractures in the injection zone rock, allowing oilfield wastes to migrate from deeper depths to shallower depths and thus contaminating fresh water aquifers. Salt Caverns are "self-healing":  salt caverns with fluid in them  have the ability to close back up in in the case of a rupture; the use of deep salt caverns is also one of the most environmentally secure; rock salt exhibits extremely low porosity and permeability, plastic deformation characteristics, and self-healing characteristics  at the subsurface depths that the caverns are located. These self-healing characteristics will almost instantly close any rnicrocracks, should they develop in the walls of the salt caverns.

3. Fluids disposal sites primarily accept produced water, frac water, and salty runoff water. Solids must be disposed of in Permitted solids disposal facilities. Because most of these solids pits (like in a landfill) are above ground water tables, they are subject to leakage into groundwater. Salt Cavern Sites, when permits are in place for such activities, can accept all manner of Non-hazardous oilfield wastes. This creates an oligopoly for disposal of all manner of Non-hazardous Oilfield Wastes which are inadvisable or impossible for injection wells to receive. The subject cavern site should be able to receive all waste streams shown in the above figure as opposed to the 4 or 5 waste streams that a typical disposal well can receive. The resulting pricing for these waste streams tends to be higher.

The Energy Information Administration, the Environmental Protection Agency ("E.P.A."), the Texas Commission on Environmental Quality ("T.C.E.Q.") and the Texas Railroad Commission agree that Salt Caverns are superior for oilfield waste as well as storage for oil, natural gas, propane, and other hydrocarbon based materials.

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