TECHNOLOGY & STEWARDSHIP SPOTLIGHT SM Energy’s Commitment to Produced Water Innovation T he journey toward 100% produced water completions on SM Energy’s asset has been years in the making, and it is a powerful example of how innovation, persistence and stewardship go hand-in-hand. When XCL purchased the asset from Axia Energy in 2020, completions faced immediate challenges. Axia’s design required fresh water only, limiting flexibility across the 10,000’ laterals. From the start, XCL’s completion engineers began redesigning to allow for effective proppant delivery using produced water. But with COVID-19 slowing operations that same year, only four pads (nine wells) were completed. At the time, water infrastructure was severely limited — Axia had invested $25 million in a freshwater system, but no network for produced water gathering or recycling. In 2021, as operations ramped back up, XCL launched the build-out of its Water Gathering System (WGS), Wasatch Water. Initially, trucks hauled limited volumes of produced water to completions. That same year, $20 million was invested in a 25-mile trunk line connecting to XCL’s only saltwater disposal (SWD) well, with a capacity of just 7,500 barrels per day. Early completions relied on just 10-20% produced water due to system limitations. By 2022, XCL had worked closely with the state to build out a produced water recycling pond and recycling system, expanding both gathering and delivery capabilities. Over the following years, hundreds of miles of pipeline and booster stations were added, extending capacity to meet the demands of larger completion designs. When SM Energy took over the asset, the company made it a goal to run completion projects on 100% produced water. In 16 UPDATE
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