Rural towns in New Mexico's arid region are looking to treated oil wastewater for a drought solution.

Stephen Aldridge, a pilot of a four-seater helicopter, could see a dozen lagoons filled with toxic waste glistening in the distance between drill rigs.

The mayor of Jal, a tiny town nestled in the middle of U.S. Oil Country near the Texas border, saw the scene as a chance to find water for the state that is suffering from a worsening drought.

He said, "Our future will depend on how that water is used."

Aldridge belongs to a growing number of New Mexico politicians that want to see the state develop regulations to allow the millions of gallons per day of produced water, which is spewed out along with the Permian Basin's abundant oil and gas, to be used instead of being thrown away. They are also encouraging companies to find a way to do it safely, cheaply and in large quantities.

The oil and gas industry of New Mexico will produce enough toxic fracking waste in 2022 to cover 266,000 acres (107,000 hectares) at a depth of 31 cm. The state's oil and gas drillers reuse more than 85% of the produced water for new operations.

New Mexico, however, has restricted deep-underground disposal due to the filling of injection wells, which have caused earthquakes. New Mexico is expected to export more than 3 million barrels per day of this water by 2024, a bizarre dynamic for a state that has a scarcity of water.

A state-sponsored pilot program has seen around 10 wastewater treatment companies in New Mexico take on the challenge. The program has already spurred projects for growing crops such as hemp and cotton, and irrigating rangeland grasses.

Although completed pilots have proven the technology works, at present it is too expensive for wide adoption.

Companies and their supporters also face a difficult political battle. New Mexico's debate on how to use this water is one of its most controversial political issues. Opponents are mainly concerned about unintended health effects and subsidizing oil industry waste.

Michelle Lujan Grisham, the Democratic Governor of New Mexico, introduced legislation in late 2013 that would have created a reserve for treated produced water. The bill was defeated in state legislatures, but it will be brought back in the next session of legislative in January.

Texas, which is adjacent, also faces growing problems with wastewater disposal. This includes an epidemic of orphan wells exploding as the subsurface pressure increases, raising concerns about a possible crackdown. The Permian Basin, which spans Texas and New Mexico is the largest oilfield in the United States.

The energy consultancy B3's Rob Bruant said, "We are getting closer to the critical point."

Colorado and California, for example, use small amounts of treated produced water to irrigate their crops. New Mexico is different because of the overwhelming volume and because the water needs to be treated more thoroughly because it's three times as salty as the Pacific.

CRYSTAL CLEAR FISH TANKS

Aldridge is a standout in dusty New Mexico with his shoulder-length hair, bushy beard and bright West African tunics.

The tour was part of an Aris Water Solutions pilot project for wastewater treatment in the state.

Aldridge was impressed by the display of fish tanks at the Aris mobile field office, which contained two dozen minnows and crystal clear water treated with Aris's technology.

Water is hazardous before it is treated. The employees on the site must wear flame-retardant clothing and carry portable gas monitors.

Local drillers truck in the untreated water, which is then stored in two large tanks. Then it's pumped through a membrane to remove any solids and then distilled.

The process produces clear water and a mud-like substance that is highly toxic. This mud is then injected into the ground at a saltwater disposal facility.

Aris claims that the water is clean and suitable for agricultural and industrial use. Aris, which won a $10 million grant from the U.S. Department of Energy this year, will start growing cotton next year as part of its non-food crop program.

Lisa Henthorne is the chief scientist of Aris. She said, "We are looking at the concept desalinating produced and creating a water resource for Permian in the same way that the water industry has been able to show that municipal wastewater can be treated safely and used for a variety of purposes that the society would find acceptable."

Aris' and other companies' main concern is the cost. Aris charges over $2 per barrel for its treated water, which is much higher than the typical industrial and agricultural water user's bill. Aris claims its goal is to reduce costs to $1, but that still represents a large bill for customers.

Zwitter of Massachusetts, which completed a pilot water treatment project in New Mexico recently, stated that treated water will never be cheap but it could become viable when it is cheaper than disposal.

"It's unlikely that agricultural or other water users can pay more than cents a barrel." The value of desalination is driven by the savings in disposal costs, and could range from $2 to 3/BW in the future.

Currently, disposal costs are cents per barrel. However, this could increase as the injection sites become full and waste must be transported further.

Aris has signed strategic agreements with Permian Oil Majors such as Chevron and ConocoPhillips to develop and test technologies for the treatment of produced water.

Exxon subsidiary XTO is also partnering with Infinity Water Solutions. This water treatment company has a Permian pilot project.

Michael Dyson, CEO of Infinity, said: "I can tell that the H2O molecules have no value until they run out."

TERRIFIED TO GET IT WRONG

Avner Vengosh is a professor at Duke University who specializes in environmental quality. He said that unknown safety risks were also a major concern.

According to federal law, U.S. producers do not have to disclose the full list of chemicals that they use to drill oil wells. This has led to concerns about water testing and treatment, which may be missing certain dangerous components.

"There are many technologies that can be used to treat water, but how can we determine all the possible contaminants present in the produced water?" "I'm not saying that it's impossible but it must be done properly," he said.

Dyson, Infinity's CEO, agreed that the industry must tread carefully.

He said, "We're aware that we only have one chance to get this right. I think the majority of us are afraid of making a mistake."

The state's Environment Department is updating the 2019 Produced Water Act to tighten up rules for water reuse and expand research and development outside of the oil and gas industry.

Early August saw a week-long hearing on the project, during which environmental groups and scientists questioned the safety of the final product.

Daniel Tso is a former Navajo Nation Council Member. He told Daniel Tso that the Navajo were stung in New Mexico before when uranium mining for decades on their land during the last century caused widespread radioactive contamination.

He said that the produced water industry was trying to make it a public issue. The public should be examining the effects.

James Kenney, New Mexico’s environment secretary, said that the advancements in technology during the past five years gives him confidence that produced water treated can be safe. However, he acknowledged New Mexico’s poor track record.

We must acknowledge the past of uranium mining and other things that have failed to protect our health. "So communities are right to remain skeptical," he said.

Aldridge is more than willing to fight the state for more water uses, but the more he knows about wastewater treatment technologies.

"Am I completely convinced?" "No, but they are taking steps to convince me. I must take these steps with them," said he.

He said that his own rural town, Jal, could be home to the "industries for the future", such as data centers, green hydrogen projects and businesses that require ample water supplies.

It could also dry up like the drilling industry when the Permian runs out of oil and natural gas.

"I can't accept the idea that rural communities such as Jal could just disappear." (Reporting and editing by Richard Valdmanis, Marguerita Choy, and Valerie Volcovici)

(source: Reuters)