Marcellus Opportunity

Marcellus Shale Project

OPPORTUNITY

Reliable One’s unique, proprietary, and patented water recycling technologies, coupled with current market conditions in the Marcellus region outlined above, provides a variety of extremely profitable opportunities in markets across the U.S. and around the world.  ROR’s technology is the only market-ready, proven, cost-effective system capable of treating produced and frac water from natural gas and oil wells with TDS content up to 330,000 PPM.

As described in detail in the “Market” section above, the most attractive immediate opportunity for Reliable One is in the Marcellus Shale region.  The in-depth market data listing the amounts paid for produced water disposal by major operators over the last five years shows prices ranging from $7.50-$12.50 per barrel, and in some cases even more.  Due to the high cost and the restrictions on underground produced water injection discussed above, many operators have been forced to curtail their production operations, which deals a significant and direct blow to their revenues.

As you will see in the accompanying information, drilling in the Marcellus Shale produced 60 million gallons of produced water every 24 hours in 2016.  This one water hauler that has Master Service Agreements with the largest driller in the Marcellus, would like to deliver their Marcellus produced water to Reliable One for treatment.  Given the urgent need and few alternatives for oil and gas operators and water haulers, maintaining consistent supply to the proposed facilities is of little concern.

On August 16, 2017, Reliable One made a presentation to the Pennsylvania DEP, since this department is the oversight agency granting recycling permits for water recycling plants in the state.  Meeting attendees included PDEP’s Chief Engineering Manager Lisa Houser and her 7 department heads.

The presentation was a resounding success as Ms. Houser ended the meeting by remarking, “Reliable One’s solution for treating frac and produced water appears to be the only extant technology in today’s market that is capable of obviating the need to ever have to put produced or frac water back into disposal or injection wells. As a result, the PDEP is eager to review Reliable One’s application for its proposed recycling facility and will hopefully be delivering our approval at the end of our review.”

In addition to the revenues from the water treatment and resale, there are additional revenue streams generated from saleable commodities removed from the produced water.  When treating oilfield wastewater, high grade oil is separated, captured and is then owned by the plant, resulting in a significant ancillary revenue stream.  The technology also removes 99.9% of the BTEX (the benzene, toluene, ethyl benzene and, xylene) from the water, which are also valuable, marketable commodities that will be sold for additional income.

The produced water that comes out alongside every cubic meter of natural gas or barrel of oil in the Marcellus Shale has the perfect constituency of salt content (33%) for a commercial byproduct of de-icing salt.  Hundreds of millions of tons of de-icing salt are purchased by northern U.S. states and their departments of transportation each year.  Through a proprietary process, ROR’s engineers extract the necessary materials from the Marcellus produced water to make the de-icing, which will be sold as a traction control product to virtually every town, city, parish, and county in the 7 largest northwest states and 5 northeast states for use on their roads in the winter.