17 September 2018
Pioneer trades plant upgrade for water supply
Delegates at this week’s WateReuse Symposium in Austin heard how Pioneer Resources struck a deal with the City of Midland to contribute to the cost of an upgrade...
Delegates at this week’s WateReuse Symposium in Austin heard how Pioneer Resources struck a deal with the City of Midland to contribute to the cost of an upgrade to the city’s wastewater treatment plant in exchange for around 360,000 barrels a day of filtered and UV-disinfected effluent. The deal is based on a total volume flow, so its length will depend on how much water Pioneer takes. It is expected to last between 20 and 28 years. The contract was originally signed in 2016, but was amended in June of 2018 to address design modifications that came out of pilot work done by Jacobs. They found that the aeration basin volume had to be doubled to address Midland’s wastewater, which turned out to be more challenging to treat than expected.
Jason Curl of Jacobs (formerly CH2M) presented on the public/private project said that the original price of the project was estimated to be less than $125 million dollars in 2016. With the design changes and increase in construction costs the plant’s price tag has risen to $133.5 million. To meet the difference, the City will contribute $4.25 million from the unappropriated Water and Wastewater Fund, and Pioneer will increase their contribution to be paid back in water credits up to $9.25 million dollars.
This deal, along with the one struck with the City of Odessa in early 2016, provides up to 475,000 barrels a day of treated Permian wastewater to Pioneer for use in their operations.