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U Mi , Produced Waters — A New Resource or an Old Problem? Reagan M. Waskom, Colorado Water Resources Research Institute, Interim Director The Colorado Water Resources Research Institute recently co- sponsored a national workshop to create a dialog on the potential opportunities for putting produced water to beneficial use. Water that is brought to the surface during oil and gas production is commonly known as `produced waters'. Prior to the recent large -scale development of coal bed natural gas (or coal bed methane), this water was generally considered of insufficient quality to be used beneficially. Hence, energy companies have developed methods to reinject or otherwise dispose of this by- product as efficiently and cheaply as pos- sible. What has changed to make us reconsider produced waters? First and foremost, the pace of coal bed natural gas develop- ment in the West has been frenzied due to current energy prices. These coal formations act as aquifers that must be de- watered to allow gas extraction. Produced water must be dealt with, but traditional methods of disposal usually result in these waters being lost for further human use and in some cases creating problems for downstream landowners. The water shortages of recent years have prompted many to ask if we are wise to sacrifice one vital resource in order to gain another. Technology exists today to treat impaired waters to meet beneficial -use standards. In certain situations there appear to be favorable economic trade -offs between water disposal costs and treatment for resale. However, to make produced water a viable and reliable source of water, the energy industry, water industry, water -user interests, environmental interests, as well as Federal, State and local governments must come together to overcome the constraints hindering development of this resource. The various parties must collaborate to overcome the legal impediments to simultaneously developing energy and water. Water and energy businesses operate within different markets and, consequently, within very different incentive structures and time frames. Oil and gas producers react quickly to swings in the energy market, while water suppliers enjoy a more steady market without large swings in price (except in periods of drought). As a result, energy companies work quickly in developing their non - renewable supplies, while raw water suppliers (generally government organizations) work over long time frames in planning new water projects. Energy companies often work with high risk, while water utilities /dis- tricts try to reduce risk to the lowest possible levels. Energy and water are two very different cultures, a point which was apparent many times during the workshop. A number of other common summary points were apparent through the talks and audience discussions concerning benefi- cial use of these waters: • Currently, there are institutional barriers within state water law, policy and administration that limit or confound the beneficial use of produced water. States play the key role in water management and administration and must lead on changing laws and policies to facilitate beneficial uses of produced waters. • The most promising opportunities to convert produced waters to beneficial use are where produced water sources geographically align with markets for water. • Water markets and the costs of disposal versus treatment will drive the value of produced waters and will be the funda- mental factor in determining if produced waters are converted to beneficial use. • Current water purification technology is generally ad- equate to treat produced waters, where it makes sense to do so. There is a portfolio of technologies available depending on site - specific factors. Managing the concentrated brine was mentioned several times as a problem that needs further research. • Social science research could help facilitate the removal of institutional and social barriers limiting the beneficial use of produced waters. • Science and data gaps also need to be addressed to better understand and manage the long -term adverse impacts to lands, ground waters, and ecosystems. • Sustainability is a concern. The water will only last as long as the oil and gas development is in production. How- ever, the water produced over the next two decades may buy time for additional water conservation measures and infra- structure to be developed. This issue of the Colorado Water newsletter provides a brief overview of selected papers delivered during the Produced Waters Workshop held April 4 -5, 2006 in Fort Collins. Nearly 200 participants from government, energy companies, water users, water supply planners, government agency staff, researchers, and industry representatives met and held lively discussions on the needs and challenges of putting this water to beneficial use. For those with further interest in this topic, we will publish the conference proceedings both on -line and in printed form within the next month. Please access http:// cwrri.colostate.edu/ in July to find or order a copy of the proceedings.