Antero Resources Making Stronger Move into Water & Wastewater

by Duane Nichols on August 25, 2015

Wastewater Evaporators

Antero Announces 60,000 Barrel per Day Advanced Wastewater Treatment Complex

Press Release from Antero Resources Corp., Denver, CO, PRNewswire, August 19, 2015

Antero Resources Corporation announced today that it has signed an agreement with Veolia Water Technologies Inc. and Veolia North America to design and build a state-of-the-art advanced wastewater treatment complex in Doddridge County, West Virginia.

This complex includes an initially designed 60,000 barrel per day facility that will allow Antero to treat and reuse flowback and produced water rather than permanently dispose of the water in injection wells. Antero will own the treatment assets including any ancillary facilities.

The complex will be centrally located in Antero’s footprint in the southwestern core of the Marcellus Shale play with the ability to serve the Company’s development in both the Marcellus and Utica Shale plays.

Announcement Highlights:

>> Veolia will design, build, operate and maintain a 60,000 barrel per day advanced wastewater treatment facility under a turnkey contract for Antero in Doddridge County, West Virginia

>> Antero will own the $275 million treatment complex, which is expected to take two years to build, and generate on a standalone basis $55 million to $65 million of EBITDA at full utilization three years following the in service date

>> Complex will allow Antero to treat and reuse flowback and produced water rather than permanently dispose of the water in injection wells

>> Treatment facility will save Antero approximately $150,000 per well on future completion costs

>> Combined with Antero’s existing freshwater pipeline distribution system, the advanced wastewater treatment complex places Antero at the forefront of environmentally conscious water management in U.S. shale plays

>> The complex will be an integral part of Antero’s water business and is subject to Antero Midstream’s option to purchase the business

Advanced Wastewater Treatment Complex

The Antero advanced wastewater treatment facility will incorporate Veolia’s proprietary AnoxKaldnes™ MBBR biological treatment and its CoLD Process®, an advanced evaporation and crystallization technology, to treat a full range of water qualities including Antero’s completion flowback and produced water.

This same technology has been successfully utilized in dozens of facilities around the world. The 60,000 barrel per day facility will produce fresh water that meets stringent fresh water quality specifications, resulting in the treated water being delivered back into Antero’s existing fresh water distribution system and reused for ongoing completions and development.

In addition to reusable fresh water, the facility is expected to produce marketable byproducts with commercial value including salt and other brine products currently used by oil and gas operators for drilling and completion activities.

Veolia has agreed to build the complex under a turnkey contract and will operate it under a 10-year agreement. The contract contains performance guarantees including uptime availability, which considerably de-risks the project economics and reliability. The treatment facility is expected to be in service by the end of 2017, pending finalization of project logistics including regulatory permitting and construction.

Estimated Capital Expenditures for Advanced Wastewater Treatment Complex

Capital investment for the advanced wastewater treatment complex is estimated to be $275 million, which includes site preparation and construction, byproducts processing equipment and five miles of water pipeline that will connect the Antero treatment facility to its existing fresh water distribution system.

Potential Water Business Drop Down to Antero Midstream

On July 9th, 2015, Antero Midstream Partners LP notified Antero of its intent to exercise its option to purchase Antero’s water business and transaction negotiations between the parties are ongoing. If Antero Midstream purchases Antero’s water business, it is expected to enter into a 20-year water services agreement covering all of Antero’s areas of operations in West Virginia, Ohio, and Pennsylvania, as well as any future areas of operation. The existing water services agreement with Antero would be included in the expected drop down of the water business. The water business will include the advanced wastewater treatment complex.

>>> See also the Article in the PowerSource section of the Pittsburgh Post Gazette titled “Winners and losers in Antero’s $275 million announcement

{ 4 comments… read them below or add one }

suz cleaver August 26, 2015 at 1:57 pm

I want to alert OVEC, for dissemination, of the public comment period until about 9/15/15 about this water treatment plant, and also the pending permit for a class F industrial landfill (think radiation!) at the same site in Doddridge Co.

If you are not receiving The Herald Record out of West Union, Doddridge County, you probably should subscribe. 202 E. Main St., West Union, WV 26456 ($20.14)

love, suz

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suz cleaver August 26, 2015 at 2:12 pm

The Air Quality permit application number is 017-00157.

Email to jerry.williams@wv.gov. (He is the engineer) Use number above in subject line, and request a verification of email receipt.

We are also asking for a public meeting to discuss the permit application.

The application can be viewed at: http://www.dep.wv.gov/daq/Documents/July%202015%20Applications/017-00157_APPL_13-3260.pdf

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S. Thomas Bond August 26, 2015 at 3:10 pm

Well, here we go again! “MBBR” stands for “moving biological bed reactor.”

These are almost always used to treat sewage, occasionally biological waste from factories. They have superior agitation, due to mill-wheel rotating drums. They digest biological waste, then remove nitrogen and phosrphorus producing a solid cake material that can be buried or further processed.

This is the same as putting it through a city water system, which frackers did until stopped. It doesn’t take out some of the chemicals they put down the wells and doesn’t take out some of the dissolved stuff that comes back up.

Doesn’t anyone hire a scientist? Does the government just let a set of hot shots take advantage of both uninformed investors and innocent residents?

What about the public interest?

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suz cleaver August 26, 2015 at 7:42 pm

I just sent my comments to Jerry Williams, as I just realized the public comment period is closing today or tomorrow. (30 days after the July 28 publication of the original legal notice!) (NOT Sept. 15!)

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