SOME BAYOUS OFF-LIMITS TO O&G OPERATORS - Shreveport Times article, Vickie Wellborn, Oct. 31, 2011

Oil and gas operators are working harder to find alternate surface water sources for their hydraulic fracturing process because of the ongoing drought that's left some small streams and bayous void of much flow.

Operators were shifted away from ground water to surface water sources shortly after the Haynesville Shale grabbed the region in 2008 because of fears the Carrizo-Wilcox Aquifer could not sustain the additional pull of millions of gallons of water. Many companies boast of 100 percent surface water sources, while others put their percentage at 90 or better.

The Department of Natural Resources has a cooperative endeavor agreement with operators taking water from the state's waterways. Each must report withdrawal times, estimated volumes and monitoring results. Last month, those pumping from Bayou Pierre, Cypress Bayou and Red Chute Bayou were notified they are prohibited from doing so until further notice.

For Shell Oil Company, that means additional planning and longer transfers of water. Well delivery Manager Dave Carpenter said the company, which has used Bayou Pierre in east DeSoto Parish, plans three months out and relies heavily upon farm ponds.

One man per shift solely focuses on water supply. Lists of all who sell water are tracked closely, down to the amount of water in each pond and how much is promised to which company. And instead of 1- or 2-mile transfers, 8- or 9-mile transfers are more common.

Lengthy transfers are more expensive. "It is an issue. But we have yet to have to truck water," said Carpenter. "So still for fracking it's all out of surface sources, ponds or rivers, wherever we have a permit. "» Before we are drilling wells we are out there talking to people about water."

Chesapeake Energy also has used Bayou Pierre. In one instance, the company was transferring water from the bayou to privately-owned holding ponds on state Highway 522, then sending it again through pipes to fracking operations near Mansfield.

"Chesapeake is continuing its practice of using 95 percent surface water in its hydraulic fracturing operations. As a result of the area's draught conditions, Chesapeake is currently transferring surface water through piping systems over greater distances to the well sites for which the water is intended. We continue to work closely with the Louisiana Department of Natural Resources and the Office of Conservation as they monitor and manage our state's water resources," media relations coordinator Katie McCullin said. "The Office of Conservation has encouraged the use of the Red River Alluvial aquifer system (non-potable water) for industrial purposes, and Chesapeake is open to utilizing this system whenever feasible."

McCullin expects less demand on local water sources as Chesapeake's drilling enters a "more controlled period of progression."

An example of the reduced activity is evident in the latest rig count. In July 2010, there were 142 rigs in northwest Louisiana, with 66 of those in DeSoto, 32 in Red River, 10 in Caddo and seven in Bossier. On Oct. 21, the rig count was at 80, with 40 in DeSoto, 16 in Red River, 10 in Sabine, five in Caddo and two in Bossier.

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