Phase One of Solaris Water Midstream’s Pecos Star System is now operating. Located in Eddy and Lea counties in New Mexico and Culberson and Loving counties in Texas, the system serves Delaware Basin oil and gas producers by gathering, transporting, recycling and disposing of produced water. Current customers include three of the largest operators in the Permian Basin.
“The Pecos Star System is the first large-scale, fully integrated water-handling and supply system in the Delaware Basin,” said Solaris Water Midstream CEO Bill Zartler. “Our system offers operators shared infrastructure to multiple disposal wells and recycling facilities with built-in redundancies to save capital and lower costs while reliably addressing both peak-water production and peak-water demand. We believe the system provides long-term cost savings and high-capacity, dependable services to our customers by providing a permanent infrastructure system to handle supply needs, produced-water takeaway, and water recycling and disposal.”
When finished, the Pecos Star System will include an extensive integrated network of more than 300 miles of high-capacity gathering and distribution pipelines ranging from 12 to 16 inches in diameter, dozens of disposal wells, storage ponds, aboveground storage and recycling facilities. The system is designed to provide flexibility to move water across the entire system with multiple connections to oil and gas operators for produced water, water supply, disposal wells and recycling facilities.
Phase One of Solaris Water’s Pecos Star System comprises approximately 50 miles of 12- and 16-inch produced-water pipelines, multiple disposal-well connections, the ability to supply recycled water and freshwater wells and ponds. The build-out of additional phases is underway with continuous construction expected over the course of the coming year.
In other Solaris news, it has acquired a significant New Mexico water-supply business owned by Vision Resources Inc. Vision, active in the Delaware Basin, brings to the deal an established customer base that includes the largest oil and gas producers operating in the Delaware and water rights to more than 15 million barrels of industrial water per year and access to significant sources of water, freshwater storage ponds, more than 200 miles of water-supply pipelines and associated rights of way.
The Vision acquisition gives Solaris the ability to establish a permanent infrastructure and blend waters to supply clients. Bill Zartler, chief executive officer of Solaris Water Midstream, said, the company is actively recycling water in its Midland Basin system and will expand that to the Delaware soon to meet customer demand for recycling produced or flowback water or blends of fresh and produced water. With the chemicals used in hydraulic fracturing jobs evolving, "It makes it easier to reuse and recycle the water—it doesn't need to be Perrier," he said.
"Water has been a part of the oil business a long time," Zartler said. "The size and the magnitude of water issues have grown rapidly. The size has created the need for infrastructure, like oil and gas created the need for roads. We're building that road in the form of pipeline. The first evolution of water management was trucks. With this evolution, we're getting trucks off the road."