In correspondence dated November 24, 2014, Eureka Resources received confirmation from the Pennsylvania Department of Environmental Protection (PADEP) of successful demonstration of dewasting treatment capability at the Standing Stone, PA treatment facility, in accordance with requirements set forth in Condition 23 of the WMGR123 Residual Waste General Permit. The demonstration included final effluent sample collection and characterization efforts from July 21 through September 19, 2014, including 14 daily flow-proportional composite samples, two weekly flow-proportional composite samples, and two grab samples. Final effluent at the Standing Stone facility is produced via a patented treatment process, capable of treating unconventional oil and gas wastewater to freshwater levels, and recovering safe, saleable co-products. Through this effort, Eureka has demonstrated that the final effluent produced from the Standing Stone facility meets the stringent limits included in Appendix A of the WMGR123 permit, and therefore can be managed as dewasted (i.e. fresh) water, both at the Standing Stone facility, as well as at facilities using/storing final effluent treated through all processes at the Standing Stone facility (e.g., storage in freshwater impoundments).

The dewasting demonstration is reflective of the unique capabilities that Eureka provides for treatment/management of unconventional oil and gas wastewater. Through our patented treatment process, we provide TRUE disposal-level capability, allowing for recovery of a significant proportion of freshwater for reuse or safe surface/groundwater discharge, and elimination on reliance of higher-risk management alternatives such as underground injection disposal. Eureka is the only company in PA (and likely in the entirety of North America) that has demonstrated this level of dewasting capability, capable of consistently generating final effluent below the stringent limits set forth in Appendix A of the PADEP’s WMGR123 permit. The Appendix A limits are largely comprised of drinking water standards, which are significantly more stringent than the effluent limits included in the NPDES industrial direct discharge permit issued to Eureka for the Standing Stone, PA facility.

Demonstration Analytical Results

PADEP approval letter