Select Energy Services LLC, Houston, has reported the acquisition of EXCO Water Resources LLC from EXCO Resources, Dallas, (NYSE: XCO), an industrial pipeline used to deliver water for hydraulic fracturing operations in the Haynesville Shale.

"The acquisition of the EXCO pipeline represents a significant investment by Select Energy Services to ensure that the pipeline continues to be environmentally safe for use in industry operations," says John Schmitz, CEO of Select. "It serves as a great opportunity for Select and the operators in the region to become less dependent on the use of local ground or surface water necessary for fracturing operations and demonstrates our company’s commitment to protecting the environments in which we operate."

The pipeline was originally part of a creative beneficial reuse project established by EXCO and International Paper, and permitted by the Louisiana Department of Environmental Quality. EXCO developed the 12-mile underground pipeline to transport process water from an International Paper mill in Louisiana to EXCO's Holly Field in Desoto Parrish, LA. The process water is suitable for hydraulic fracturing operations and thereby creates a unique opportunity for the recycling and reuse of this treated water that would otherwise be discharged into the Red River. Now in full operation, the line is providing a reliable source of frac water to EXCO and with this acquisition, Select intends to market water from the line to other operators in the region.

"The pipeline is a significant step for our company to further establish itself as an industry leader in providing Water Solutions and Environmental services to the oil and gas industry, and we look forward to providing an uninterrupted beneficial reuse water solution to operators in the region," adds Schmitz.

Image courtesy of Select Energy Services