Breakwater Breaks Ground on Second Commercially Permitted Recycling System to Address Midland Basin Seismicity

HOUSTON, Nov. 15, 2021 /PRNewswire/ -- Breakwater Energy Partners, LLC ("Breakwater") is pleased to announce that it has broken ground on the Morita Commercial Recycling Facility ("Morita"), its second Texas Railroad Commission ("RRC") Division 6 H-11 commercially-permitted facility for the receipt, storage, handling, treatment and recycling of nonhazardous oil and gas produced water.  Breakwater also operates nine separate non-commercial water recycling facilities for five operators in the Midland Basin. Once complete, Morita will be one of the largest produced water recycling facilities in the Permian Basin with throughput capacity in excess of 200,000 barrels per day.

Rising Permian Basin seismicity has prompted the RRC to announce two separate Seismic Response Actions ("SRAs") which limit the injection of produced water into regional Saltwater Disposal Wells ("SWDs"). The RRC has determined that produced water injection into SWDs is likely a primary contributor to the unprecedented rise in the frequency and intensity of earthquakes observed in the Permian Basin. "With more of these seismic events shifting to the population centers near Midland, Stanton, and Big Spring, an alternative to wastewater disposal is becoming essential to operators. That is what we are providing with these regional recycling facilities." said Jason Jennaro, Chief Executive Officer of Breakwater. "Operators are looking for environmentally sustainable alternatives to disposal within these SRAs and seismic clusters, which is why system interconnectivity and commercial recycling is central to sensible stewardship of the water supply chain."

Located in southwestern Howard County, Morita will serve Martin, Glasscock, and Howard counties with sustainable water solutions. Morita will also have interconnectivity to Texas' first and largest commercial produced water recycling facility, Breakwater's Big Spring Recycling System ("BSRS"), which was recently expanded into Martin County with a large diameter pipeline capable of delivering up to 360,000 barrels per day of recycled water. Morita and BSRS link together numerous operators' produced water systems into nexus and storage points, allowing Breakwater to serve customers with frac water blends of up to 100% recycled water. Collectively, BSRS and Morita will be capable of treating and distributing more than half a million barrels of produced water per day to the Midland Basin.  

About Breakwater Energy Partners, LLC
Headquartered in Houston, Texas, Breakwater is a leading provider of sustainable water supply chain solutions to the oilfield. Breakwater's management team has been providing environmentally focused water management solutions to customers across the United States since 1994 including large-scale sewer rehabilitation projects, wastewater treatments plants and related services for major municipalities.

Breakwater's water recycling segment is the market-leading provider of water reuse services in the Permian Basin. Breakwater formed its water recycling segment in 2016 by acquiring Waterstone Resources, which began operations in 2013. Breakwater's water recycling operations in the Permian Basin have the installed capacity to process more than 1.25 million barrels of water per day for a customer base comprised mostly of large E&P operators.

Breakwater's water transfer division owns more than 350 miles of lay flat hose, 150 water transfer pumps and in-basin accommodations for 300 employees. It has become one of the largest providers of transfer services in the Eagle Ford and Permian basins. Breakwater's water sourcing division has exclusive access to deliver more than twenty-five million barrels of sourced water with relationships to deliver up to fifty million barrels of fresh water across the Delaware and Midland basins.

Breakwater's midstream division develops and operates large-scale recycling systems across the Permian Basin and integrates them into its water supply, transfer, and recycling capabilities. Breakwater operates two commercial and nine separate noncommercial recycling facilities in the Midland Basin.

For more information, please visit www.breakwaterenergy.com.

SOURCE Breakwater Energy Partners