RGDEF to pipe treated wastewater
BY COREY PAUL cpaul@oaoa.com | Posted: Sunday, June 8, 2014 4:15 am
The developer of a project to pipe treated wastewater east from Gulf Coast Waste Disposal Authority
for use in oil production will release details of the plan in coming days.
So far RDX Technologies, a public company based in Arizona, has disclosed little publicly about how
the project will work since it was announced in March by CEO Dennis Danzik, who described it at the
time as a first-of-its kind approach of supplying water for shale oil production.
RDX Technologies is in the process of acquiring Kerr Energy, which reached an agreement in
October with GCWDA to acquire up to 2 million gallons of treated water a day to the company for oil
and gas production.
But before Kerr Energy can take a drop, they must file notice with the GCWDA 30 days in advance,
said Gordon Pederson, GCWDA manager of Facility Services.
“We have to approve the pipeline, but they also have to put equipment on site to pump the water to
them,” Pederson said. “They pump it from my site to some sort of distribution center.”
State and local public records yield little about where those facilities could be.
Ian Kerof Kerr Energy declined to discuss details of the project on Friday but said to expect an
announcement “very soon.” Danzik did not respond to inquiries last week.
The company has a multi-year contract with COG Operating LLC, a subsidiary of Concho Resources
in Midland, for more than 45,000 barrels per day of treated water, according to previous
announcements. The contract, entered between the companies on March 1, lasts for 13 years, divided
into three terms.
In the first three-year term of the contract with COG, RDX Technologies reported an expected $14.6
million guarantee but up to $24 million in income from the project.
Concho is pursuing a strategy described by executives to double Permian Basin production
in the next three years through horizontal drilling. A Concho Resources representative also did not
respond to inquiries for this article.
In a March conference call, Danzik said about a mile of pipeline will
extend from where the company has an operating contract with the GCWDA, the water treatment
facility based at 2760 S. Grandview Ave. RDX Technologies at the time reported about a total 16
miles of right-of-way secured for pipeline.
If utilized, Danzik told investors the pipeline could pump about 81,000 gallons of water per hour.
Transporting wastewater often requires trucks, which means more traffic and cost for oil and gas
companies. Danzik has described trucking as RDX’s competition and said the company was
negotiating with other companies, expecting to contract out the rest of its available water by June 15.
“I believe that our pipeline network will extend and it will also multiply,” Danzik said at the time. It’s
unclear whether it already has. The Texas Commission of Environmental Quality in Midland shows no
permits for Kerr Energy, RDX Technologies or Ridgeline Energy Services, which RDX Technologies
spun off of.
That suggests the permits Danzik said the company filed for were under a different operating name.
Ector County project manager David Peck said he did not know where RDX Technologies is planning
to put the facility and that the county does not require permitting for buildings.
In the long-term, RDX Technology officials have said they want to develop pipelines to take produced
water and flow back water off leases so it could be recycled.
“We believe we can show the state of Texas how a lot of this water can be recycled,” Danzik told
investors in March. “And we are working very, very hard on that process right now.
And so we are told this is the golden age
And gold is the reason for the wars we wage U2
AI
