||John Carlson, Alanco Technologies, Inc., 480-505-4869||
Alanco Wins Landmark County Approval For Western Colorado’s First Oil & Gas Waste Disposal Landfill to Include Naturally-Occurring Radioactive Material (NORM) O&G Wastes
(Scottsdale, AZ – December 17, 2013) – Alanco Technologies, Inc. (OTCBB: ALAN) announced that on December 10, 2013, the Mesa, Colorado County Board of Commissioners unanimously approved a proposal for the Company’s Alanco Energy Services (AES) subsidiary to construct and operate on it’s 160 acre Indian Mesa site near Grand Junction, Colorado, an 80 acre, 3 million cubic yard capacity landfill for disposal of solid oil & gas (O&G) waste, such as drill cuttings, tank bottoms, sock filters, etc. Significantly, the landfill approval also allows for disposal of Naturally-Occurring Radioactive Material (NORM) contaminated O&G wastes, including both solids and produced water. This new County landfill approval is in the form of an amendment to AES’s initial Indian Mesa permit issued in 2010 approving produced water disposal utilizing evaporation ponds.
AES expects final construction approval from the Colorado Department of Public Health and Environment (CDPHE) in February, 2014 for Indian Mesa’s produced water disposal ponds, which will consist of 12 ponds on the north 80 acres of the 160 acre site with an annual evaporative capacity in excess of 1 million barrels of produced water. Construction approval for Indian Mesa’s south 80 acre landfill operation is expected by Fall, 2014. Completed build-out of the Indian Mesa facility, including both landfill and evaporative ponds, will result in a unique Western Colorado “one stop shop” for all O&G waste products, including NORM contaminated waste streams.
Update: AES’s Deer Creek Facility
Now over one year in commercial operation, AES’s Deer Creek produced water disposal facility, located approximately 4 miles South East of the AES Indian Mesa site, with evaporative capacity of approximately 300,000 barrels annually, is providing Piceance Basin producers with outstanding service and significant transportation cost savings.
Further improvement in AES’s Deer Creek customer service capability was facilitated on November 12, 2013 by the Mesa County Board of Commissioners approval of an amendment to Deer Creek’s County Use Permit, allowing 24/7 operation versus the previously restricted daylight hours only, and no Sunday operation. The new 24/7 operating permit proved it’s value on Sunday, December 15, 2013 when the Deer Creek facility recorded and processed a record 38 truckloads of produced water, averaging 130 barrels per truck.
Bob Kauffman, Alanco CEO commented “While Mesa County’s unanimous approval of our proposed Indian Mesa landfill is a very important milestone in our development of AES’s Colorado O&G waste disposal business, the inclusion of NORM disposal capability may well prove to be the pivotal outcome. The State of Colorado is in the forefront of recent activity to develop new regulations for permanent disposal of NORM contaminated waste products, most particularly O&G waste materials due to volume and projected growth. We believe that new, more restrictive NORM regulations will be imposed on Colorado oil and gas producers within 12-18 months, which will result in a multi-million dollar market opportunity for approved, logistically attractive NORM O&G disposal facilities. Currently, the only disposal site in the State of Colorado permitted to receive NORM waste is Clean Harbor’s Deer Trail facility in Eastern Colorado. Indian Mesa is anticipated to be the first “one stop shop” NORM O&G disposal facility in Western Colorado serving Piceance Basin producers, and poised to provide exceptional future value to both potential customers and AES.”
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