Marcellus Shale Project
THE MARCELLUS PLAN
Upon seeing the underlying business case and demand for its exclusive technology, ROR made the decision to no longer provide the equipment, or design the construction of, these recycling plants for other companies. Instead, ROR realized that it is uniquely positioned to execute its own build-own-operate business model and arguably be in position to control how the produced and frac water in the oil and gas market must be treated. ROR’s goal is to be first to market with the most efficient, cost effective, and environmentally friendly technology to win this very lucrative produced water market.
To that end, Reliable One expects to locate its first four facilities in close proximity to some of the most active oil and gas fields in the Marcellus Shale and Utica Shale region.
As described above, Reliable One is also securing water for its future treatment facilities through the acquisition of trucking and disposal well assets. The growing number of disposal well shutdowns, production water allocation moratoriums, energy companies’ very high cost to dispose of their produced water via transportation to far distant disposal wells, and new legislation prohibiting energy companies from putting their frac or produced water into frac pits or frac ponds will serve to motivate these energy companies to commit their produced water to Reliable One for recycling. The commitments will be conditional in the sense that as long as Reliable One’s recycling plant is capable of receiving and recycling produced water to levels consistent with reuse/re-drilling standards at $7.25 cents per barrel (transportation included), the energy companies will commit to dedicating barrels of its produced and frac waters to the Reliable One plants.