Eureka Resources Supports New Pennsylvania DEP Standards Encouraging Reuse of Wastewater From Oil and Gas Sites

WILLIAMSPORT, Pa., April 5, 2012 /PRNewswire/ -- Eureka Resources, LLC, President Dan Ertel said today that new standards set by the Pennsylvania Department of Environmental Protection (DEP) under General Permit WGMR123 will help reduce environmental hazards and lower transportation and infrastructure costs associated with storage of partially treated wastewater from oil and gas sites in the Marcellus Shale. 

Eureka is prepared to meet or exceed the new standards for treatment of oil and gas wastewater, including drilling and production fluids, top hole and flow back waters, as well as those from oil and gas transmission facilities.

DEP's revised General Permit WGMR123 for the processing and beneficial use of oil and gas liquid waste was published March 14, 2012, in the Pennsylvania Bulletin. The permit encourages the reuse of liquid waste after it has been treated or processed by establishing water quality criteria that allow processed water to be managed, stored and transported as fresh water.

Mr. Ertel said that Eureka has been meeting the new permit requirements since the expansion of its Williamsport plant was completed in November 2011. The Company's centralized treatment facility in Williamsport, Pa., which has the capacity to treat 10,000 barrels of wastewater per day, utilizes thermally efficient NOMAD distillers as one of several key components in achieving the de-wasting determination for wastewater from hydrofracturing operations in the Marcellus Shale.  

Mr. Ertel said the new ruling will also allow Eureka and other treatment companies to provide producers with the option of utilizing a single water treatment service provider for all of their water treatment and management needs.  Liquid waste that is processed under the authority of this general permit will not be considered a waste as defined in Pa. Code ~ 287.1 as long as the conditions of the permit are met.  These include:  processing must be done at a centrally located permitted treatment facility; the specified post treatment concentration limits specified in the permit must be achieved; and the de-wasted liquid must be transported to a permitted well site for beneficial use to develop or hydraulically fracture an oil or gas well.

The permit also allows producers to utilize their existing permitted water impoundments for storage of this de-wasted water, as necessary, for beneficial reuse. Utilizing existing impoundments reduces the need for frac tanks and their associated expense.

"DEP continues to take a proactive role in monitoring and regulating activity in the Marcellus Shale Region and beyond," Mr. Ertel said. "With this new permit, the agency is again encouraging the use of the best available technology for water treatment, recycling and management.  This permit will result in reductions to environmental hazards associated with storage of large quantities of partially treated wastewater stored throughout Pennsylvania and should also help reduce transportation and infrastructure costs of both the state and the producers."  

Eureka is currently permitting three additional sites across Pennsylvania's northern tier including one in Bradford County.  Producers using Eureka's plants under the new permit will reduce the need for disposal of water and save transportation and legacy costs associated with disposal to injection wells in Ohio.

Mr. Ertel reaffirmed Eureka's commitment to playing an important role in addressing the needs of oil and gas operators.  "Effectively treating the wastewater that results from oil and gas operations is a difficult challenge for energy companies. We are committed to providing a cost-effective, environmentally-sustainable method for the treatment of their wastewater and its beneficial reuse," he said. 

About Eureka Resources, LLC

Headquartered in Williamsport, Pa., Eureka Resources, LLC, provides wastewater treatment solutions to the natural gas exploration and hydrofracturing industry.  Visit our website at www.eureka-resources.com.

About Haddington Ventures, L.L.C.

Haddington Ventures, L.L.C., through its private equity funds, generally makes control-oriented investments in companies focused on gathering, separation, processing, treating, compression, storage, and transmission of energy. Haddington is unique in that it is the only midstream energy fund in which all principals have substantial direct operating company experience, both in energy-related acquisitions and in energy infrastructure development. For more information, visit www.hvllc.com.   

This news release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  Forward-looking statements include, without limitation, the Company's plans, objectives, goals, strategies, future events, future bookings, revenue, or performance, capital expenditures, financing needs, plans, or intentions relating to acquisitions, business trends, executive compensation, and other information that is not historical information. Actual results, performance, or achievements could differ materially from those expressed in, or implied by, the forward-looking statements.  The Company undertakes no obligation to update or revise forward-looking statements, which may be made to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events.

SOURCE Eureka Resources, LLC