Investment Entity: Eureka Resources, LLC
Geography: Marcellus Shale Areas, Pennsylvania
Sector: Frac-water Treatment
Investment Fund: Fund IV
Initial Investment: January 2011
In late 2009 and 2010, Haddington observed increased gas drilling activity in the Marcellus Shale with the successful application of new hydraulic fracturing techniques. Hydraulic fracing produces on the order of 500,000 to 1,000,000 gallons of waste "flowback" water for each well drilled. Unlike other shale "plays", deep well injection disposal is not available in most of the Marcellus region.
Eureka Resources operates a 60,000-square-foot water treatment facility in Williamsport, PA utilizing a distillation process exclusive to it within the region around the plant. The operation now recycles up to 200,000 gallons of wastewater every day from customers that include Range Resources, XTO Energy and Chesapeake Energy. Additional capacity is being added later this summer. Eureka is averaging 75-80 percent recovery from the wastewater it receives, as pure distilled water with total dissolved solids (TDS) measuring well below 150 ppm, and only trace chlorides. The Pennsylvania IRRC’s new regulations mandate a maximum of 500 ppm TDS and 250 ppm chlorides in “end of pipe” discharges. Eureka is offering this clean, recycled water for industry re-use rather than disposal.
