Brady Murphy: Right. So on the regulatory side, it’s apparent that each operator of the produced water is going to have to get their own permits for the produced water projects. The project that we work on with our with our pilot project is in process. We’ve seen the requirements for the regulatory and we feel very confident that our technology will meet those requirements, but each operator is going to have to go through a permitting process before we can deploy a desalination unit to the project. As far as the pilot goes itself, the membrane technologies, whether it’s the KMS, or the high that we have negotiated agreements with performed extremely well, in this case, the pretreatment also performed well, but we’ve got to do some field worthiness and kind of long term plant design upgrades to both primarily the pre-treatment.
That’s pretty critical to the process. And that’s the stage that we’re performing right now before we would be ready to take on a long term plan.
Tim Moore: Good to know, thanks. That seems like that’s progressing well. That’s it for my questions.
Brady Murphy: Thanks, Tim.
Operator: Your next question comes from Samantha Hoh with Evercore ISI. Please go ahead.
Samantha Hoh: Hey, guys, so most of my questions been answered, but I wanted to drill down a little bit more on this produce water initiative. So you mentioned that each operator needs their own permit for their own projects. I’m kind of wondering how you’re thinking about that, in terms of as you do start to deploy this technology? Are you taking a similar model as like how you deploy the sandstorm technology where you’re just going to lease it. Or do you need to partner up with large producer to have more scale, as you start to roll out that new initiative?
Brady Murphy: Yes. Samantha, good morning. So, each project, I think, is going to be very specific to that operator. I think you’re going to see projects range from a 10,000 barrel a day, which will be a smallish project. But again, this is a 10, 15 year, 20 year potentially type of plan and up to potentially 100,000 barrels a day or more. And so and the capital costs associated with each of those are going to be very different. Whether the customers will fund the capital for the projects or we will fund them if they’re smaller, we’re going to take that on a case by case basis Samantha, based on how we see the opportunity and the operators that kind of partnership agreement.
Samantha Hoh: Okay. And then you kind of mentioned that there’s still a lot of uncertainty out there mostly with gas activity. I’m kind of wondering where your exposure is on the U.S. land side for gas isn’t pretty easy just to like, move some of that sandstone fleet and hoses around to like an oily basin?
Brady Murphy: Yes. So we do have a good operation in the Marcellus. TETRA has been there a long time, with a strong Water business and a Flowback business. We have not seen any meaningful results or changes yet. But it’s something we’re going to keep an eye on. The good news is that our demand for all of our assets, whether it’s water flowback or sandstorms are all very high in the Permian or South Texas, or mid Qcon where again, we have strong market positions. I’m not concerned at all about moving those assets if we need to, but so far, we haven’t seen any material change that would warrant that type of movement. We don’t have a big presence in the Haynesville. So less exposure on that, but we have plenty of other market outside of the Marcellus that if we do see something back, we’ll be, we think we’ll be in great shape.
