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GROWING COTTON IN TEXAS WITH RECYCLED PRODUCED WATER
Source: Energy Water Solutions news release

Energy Water Solutions ("EWS") today announces the culmination of a six-month project to irrigate a cotton crop in Pecos, Texas, using recycled produced water from nearby oil and natural gas activity in the Delaware Basin. This cotton-growing project is the first of its kind in Texas and required a groundbreaking coalition of partners to make it happen.

The coalition for this project included the Texas Railroad Commission, Texas A&M AgriLife Research, Anadarko Petroleum Corporation (NYSE: APC), Gibson Energy (TSX: GEI) and EWS. The AgriLife Research station in Pecos, Texas, was selected as the site for the project based on its ability to host advanced research in crop science. A detailed whitepaper will be authored by the AgriLife team to document both the crop and soil science experienced during the six-month project.

The outcome of the whitepaper will form the foundation for the discussion about adapting water laws in Texas to facilitate similar conservation efforts. Bob Avant, Program Director for Texas A&M AgriLife Research, said, "This project fits the purpose of our Pecos Research facility perfectly. It is exciting to have the Texas oil and natural gas industry and agriculture working together on beneficial uses of produced water."

The Railroad Commission has the jurisdiction for granting the permit to allow for the produced water to be used on the research facility. It granted the permit to EWS for the research of recycled produced water to be used as a water source for growing cotton.

David Porter, Chairman of the Railroad Commission, said, "I have always said that the only thing more important to the economic future of Texas than oil and gas, is WATER. The Railroad Commission updated its rules to remove regulatory barriers that hindered operators from developing innovations that encourage water recycling and conservation.

This creative, collaborative effort between Texas A&M, Anadarko, Gibson Energy and Energy Water Solutions serves as evidence that the free-market is doing its job, and I want to sincerely commend them for their innovative work and their contribution to the state of Texas."

The produced water used in the research was provided by Anadarko, which owns and operates oil and natural gas wells in the Delaware Basin in close proximity to the Pecos Research Station. Chad McAllaster, Vice President of Anadarko's Operations for West Texas said, "We recognize the importance of water, particularly in a region such as West Texas where it can be scarce at times.

This is the reason we put significant emphasis on being a responsible user of water, participating in studies, gathering data and tailoring our water-management strategies with a conservation focus."

The produced water was stored and recycled onsite at the Research Station. Gibson Energy provided the storage for both the produced water and the recycled water used in the field. EWS used its patented technology to recycle the water to a standard suitable for growing the cotton.

Bill Weathersby, CEO of EWS, said, "We have used our patented technology to do this in other states and wanted to work with the proper group in Texas to show this is possible. I think the ability to pull together this type of coalition speaks to the importance of the water issues in the state."

The cotton will be harvested in late November and will be tested by the AgriLife team. The full report is expected to be available in January 2016.


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