sale of effluent to apache corporation
TRANSCRIPT
Effluent Sales Contract
for the City Council June 12, 2014
Background
• Reclaimed water = Effluent• Highly treated wastewater• Discharged into local watercourses
– Carters Creek = 6 million gallons/day average
• Effluent can be diverted for other uses– Veteran’s Park uses 250,000 gallons/day– Must follow TCEQ 290 Rules for Type 2 Reclaimed– Special handling and storage requirements
Apache Corporation
• Drilling/Fracturing oil wells east of CCWWTP• Policy is to NOT use potable water• Need 80,000 barrels/day (3.3 million gallons/day)• Duration expected to be 2 years, perhaps longer
• Terms of Proposed Contract:• City reserves at least 3 MGD for Apache, but up to 5 if available• Apache bears all costs to set up needed infrastructure• Requires pumps, power, chlorinator, pipelines, and ponds• Apache gets all required TCEQ Permits• Apache pays $2.50/thousand gallon (Parks pays $2.49)• Expected revenue first 2 years is $5 million
Summary
• City bears no cost and minimal risk• City assists Apache to be “Green”• City has full rights to sell this effluent• Excellent revenue source – helps avoid debt• Staff recommends approval