BLOSSBURG - Hydro Recovery LP has announced the formation of a business partnership with Shaner Capital L.P., of State College.
The family-based business of DALK Land LP formed Hydro Recovery in 2008 to build a manufacturing facility that would treat Marcellus Shale natural gas wastewater and turn it into a reusable product the company calls HSF-T or Hydraulic Stimulation Fluid.
According to project manager David Hedrick, Shaner Capital is involved with Rex Energy and several bottled water companies as well.
"They are 49-percent business partners helping with financing, operations, management and administration services," Hedrick said.
Hedrick said the two companies became known to each other through a "mutual connection." Once that happened, Hedrick added, "they approached us about becoming partners with us."
There are now three owners. Kaufman Engineering owns 1 percent, and Hydro Recovery and Shaner each own 49 percent. The companies mutually appointed Eddie Lauth, the CEO of Shaner Capital, to also serve as the CEO of Hydro Recovery.
Hydro Recovery's founder and president Neil Hedrick will continue as the manager of the General Partnership under KLAD LLC.
The Blossburg plant opened its doors for business in early June of this year and already is nearing capacity. The partnership with Shaner Capital will allow the company to build additional plants throughout Pennsylvania to meet growing demands.
The companies plan to break ground on a new plant near Antrim this month that also will treat Acid Mine Drainage (AMD) water, as well as natural gas wastewater and additional plants in 2012.
Neil Hedrick he is "excited about the partnership and looks forward to working with representatives from Shaner Capital and Shaner Solutions.
"Hydro Recovery is clearly one of the pioneering, water treatment companies operating in the exciting Marcellus Shale play and Shaner Capital is pleased to be a part of this fast growing, high quality company," Lauth said.
Shaner Capital is a private investment fund formed 2010 by Lance T. Shaner, whose objective of Shaner Capital is to assist well run and innovative companies grow and expand their business. Shaner Capital holds controlling interests in numerous operating companies.
Hydro Recovery's philosophy is based upon 100 percent recycling, which means that no matter what type of water that comes into the plant (pit, drilling fluids, flowback and production water), all of the treated water is transported back to a natural gas company for reuse in future fracking of natural gas wells. By reusing treated wastewater, this preserves the state's fresh water supply and eliminates any water used in fracking from being disposed of into the waterways of the Commonwealth. Many of Hydro's natural gas clients also adhere to this philosophy and are moving towards 100-percent recycling.