Water Resource Management
Responsible water management is central to our operations and our communities.
Water is an essential component in oil and gas operations, and Coterra focuses on efficient management of water across the operations cycle. Coterra strives to take the precautions necessary to protect and responsibly use the water supplies in the communities in which we operate.
Let us tell you more about our responsible practices for managing water resources:
Wellbore Integrity
Maintaining an effective barrier between our oil and gas wells and water supplies is critical to the protection of these resources. Soils and overburden at the surface are protected and isolated by a steel conductor pipe, which is cemented into the bedrock as a standard practice to provide an anchor for drilling operations and to provide protection for shallow surface water and soils. Multiple strings of steel pipe, known as casing, are then cemented into place as each well section is drilled. The outer layers of casing are designed to protect groundwater sources while the inner-most casing serves as an isolated conduit for production.
Before hydraulic fracturing begins, the cased and cemented well is tested at pressures greater than those that will be used during fracturing operations. Any anomalies observed during these tests are evaluated and necessary preemptive measures are taken to ensure wellbore integrity. This testing allows for an additional layer of reassurance that groundwater is protected. Coterra monitors wellbore pressure throughout the life of the well to ensure wellbore integrity remains intact. Further, in the Marcellus, quarterly mechanical integrity assessments (MIA) are conducted, recorded, and appropriately acted upon.
Water Use and Recycling
Coterra’s operations are related to oil and natural gas extraction in the Permian, Anadarko, and Appalachian basins. Water is critical in hydraulic fracturing operations and must be efficiently managed to support the local needs and long-term viability of modern oil and natural gas production. Typical hydraulic fracturing fluid used in our operations is composed of more than 99 percent sand and water.
Permian Basin
Our operations team developed an on-demand pipeline system in the Permian Basin that ties into our existing saltwater gathering and disposal infrastructure so that we can recycle produced water from our oil and gas wells to use as source water for our completion operations. This system reduces the Company’s need to purchase fresh or brackish water for Permian Basin hydraulic fracturing operations. As water volume requirements for stimulation operations have grown, Coterra has been able to meet the additional water requirements through this system. Permian Basin source water was comprised of 73% recycled volumes in 2020 versus 64% in 2019, while total sourced water in the basin decreased by 47% year-over-year due to decreased activity levels. In addition to our own produced water, Coterra actively investigates alternative means to minimize fresh water needs, such as sourcing produced water from third-party disposal facilities and other offset operators. When recycled water volumes do not fulfill our stimulation requirements, Coterra purchases water, including brackish and other non-potable water, from third-party sources.
All gathered produced water in excess of volumes used for a completions operation is disposed in saltwater disposal (SWD) wells. We use our gathering system to transport these excess volumes to SWD wells, which we typically own and operate (third-party SWD wells utilized when necessary). When determining the locations and underground target formations of our SWD wells, we forecast produced water rates for future development needs and consider any potential seismic impact. We also review the Environmental, Health and Safety (EHS) programs of the third-party operators of SWD wells that dispose of our produced water to ensure they are operating at a high standard.
Anadarko Basin
In the Anadarko Basin, we primarily source our completion water needs from local water sources. We regularly assess community needs for water versus industry demand. If community constraints are forecasted, Coterra has contingency plans in place to move to alternative water sources. The oil and gas wells in the Anadarko Basin produce significantly lower volumes of water than the Permian Basin, and the majority of our Anadarko water production is associated with completion operations. As a result, the water production is short-lived and is piped or trucked to SWD wells, most of which we operate. Any third-party operators that we use for water disposal are vetted to ensure they are operating at a high standard.
Marcellus Shale
Along with our efforts to use water efficiently, we recycle and reuse process and produced waters where possible. In our Marcellus Shale operations, we recycle nearly 100% of the water generated by our drilling, completion and production operations. Recycled water that we do not use in our own operations is managed by third-party beneficial reuse and disposal facilities. We do not discharge process water, fracturing water, or produced water to surface water bodies. However, any water not processed for reuse by the permitted third-party beneficial reuse and disposal facilities may ultimately be treated for discharge to surface waters in strict compliance with their respective National Pollution Discharge Elimination System (NPDES) permits or will otherwise be properly disposed in accordance with applicable laws and regulations.
Groundwater Protection
Protecting community access to clean, safe water is a top priority of Coterra. Our groundwater protection program covers our operational regions, and includes performing water supply baseline surveys and sampling, ensuring gas well integrity, engaging with landowners and complying with federal, state, and local regulations.
Baseline Sampling
Coterra has established a baseline sampling program for its operations. During the well permit application process, we notify nearby landowners of our intent to drill a well and offer them the opportunity to have their water resource supply tested at our expense. We test water supplies for a predefined set of parameters, which include general water quality indicators, metals, dissolved gases, and petroleum constituents. We use independent state-accredited laboratories for all our water testing and provide landowners with the results of the analyses. With the analytical package provided to the landowner, Coterra provides available United States Environmental Protection Agency (EPA) drinking water standards for comparison, as well as a link to the appropriate state environmental agency website for additional information on how to interpret the results.
Addressing Landowner Concerns
Coterra takes landowner and community concerns very seriously. We address each complaint or concern through internal and regulatory processes. If the complaint relates to water quality or diminution, Coterra coordinates with the appropriate regulatory agencies to evaluate the water supply conditions to ensure any water supply concerns are properly addressed and resolved in accordance with all applicable regulations.
Chemical Disclosure
Much of our nation’s hydrocarbon supplies, including those owned by Coterra, are located in shale formations, which require fracture stimulation to develop. As such, hydraulic fracturing is critical to our operations. We understand the public’s desire to know more about what is involved in our hydraulic fracturing operations, so we voluntarily disclose the chemicals used in hydraulic fracturing fluid through www.fracfocus.org.