By Vickie Welborn • vwelborn@gannett.com • August 9, 2009


NEAR MANSFIELD — International Paper Company's Mansfield Mill is testing a partnership with the region's burgeoning natural gas business through an environmentally friendly move that could have a long-range positive impact on both industries.



IP and EXCO Resources Inc. are in a trial to reuse the papermaker's treated processed water to aid EXCO in its hydraulic fracturing process. The trial run, which has been approved by the Louisiana Department of Environmental Quality, will go through Sept. 30, allowing EXCO to complete two Haynesville Shale natural gas wells.

The end result is that millions of gallons of treated processed water that normally would be discharged into the Red River will be diverted through pipelines to EXCO's drilling locations, thus providing the oil and gas company with an alternative source of water.

"IP's interest in this is not to make a profit but to find beneficial use for our processed water," said Kimberly Leupo, communications manager for the Mansfield Mill.

If the trial is successful, IP will explore a permanent pipeline solution, said James Strange, environmental manager.

Water and where it comes from for the hundreds — and eventually thousands — of natural gas well drilling operations has emerged as one of the biggest concerns during the Haynesville Shale play. It takes millions of gallons of water per well to force open the tight underground shale deposit.

Sinking water wells into the Carrizo-Wilcox Aquifer for the drilling operations were the companies' first options. Worries about competition with residential and domestic customers soon opened a dialogue that strongly promoted groundwater sources.

Recycling wastewater in addition to the possibility of utilizing IP's treated processed water will be a "tremendous help" to the oil and gas operators, said Gary Hanson, director of the LSUS Red River Watershed Management Institute and chairman of the Water Resources Committee of Northwest Louisiana. "You can't say enough about being able to reuse a waste product that would normally go into the environment."

The biggest plus from IP's involvement is that it offers a solution for areas in "no man's land" — the swath between the Red River and Sabine River where operators are heavily dependent upon water trucked to the well sites, Hanson said.



The Mansfield Mill, which gets its fresh water through a pipe that crosses DeSoto Parish from the Sabine River, for months has been sought out as an alternative for fresh water — and ultimately its treated processed water — as one of the solutions the industry was seeking. EXCO took the lead in pursuing the processed water, Strange said.

"It's a readily available source of water that enables us to use a product that's going to be discarded and reuse it instead of using a fresh water source. We all know that fresh water supplies are a concern in this region," said EXCO's regulatory manager Mark Henkhaus.

The company, which is still testing the water to make sure it is appropriate for use, has not considered such a partnership before now.

"This Haynesville Shale is a new play for everybody. We've only been in it a year or so like other operators and I think everyone is looking for viable water sources. The play is new enough that we are looking at what's out there and considering what our options are," Henkhaus said.

IP has long been interested in finding a beneficial use for its treated processed water — a byproduct of the paper-making process. Strange estimates IP, which has had a presence in DeSoto Parish since the early 1980s, discharges approximately 12 million gallons of treated processed water a day into the Red River in compliance with water discharge permits issued by DEQ.

IP is sending the water to EXCO's drilling sites through a three-mile, 10-inch aluminum line that is being monitored by a third party, Impact, which will be responsible for making sure the pipeline is leak-free and the pump station is in working order.

EXCO expects to use 2 to 5 million gallons of water per well, Henkhaus said. That equates to about a day's worth of IP's discharge.

"This partnership reduces input into the Red River and provides the oil and gas industry with a very low cost solution," Strange said. "We make paper. "» But we want to be good stewards of the environment and look for ways to help solve this problem."

Added mill manager Mike Craft: "The Mansfield mill is proud of its outstanding environmental compliance record and continues to look for opportunities to partner with neighbors in the DeSoto Parish community. We are excited about being part of a solution that reduces the demand for surface and groundwater in DeSoto Parish. IP is a socially responsible company committed to making wise use of natural resources."

Strange and IP officials deserve kudos for getting involved, Hanson said. "I've said it before, but it's a win-win situation."