Alanco Technologies, Inc. (Alanco), through its subsidiary, Alanco Energy Services, Inc. (AES), is engaged in the water treatment and disposal operations. The Company, through AES, has developed the Deer Creek site with approximately eight acres of evaporation ponds for the treatment and disposal of large quantities of produced water generated by oil and gas producers in Western Colorado. AES also has a 160 acre site near Grand Junction, Colorado (Indian Mesa site) for additional expansion of the disposal facility and land fill site. The Company's Deer Creek produced water disposal facility, has an annual evaporative capacity of approximately 300,000 barrels. It bills customers (primarily in the oil and gas industry) to receive produced water generated as a byproduct from oil and natural gas production in Western Colorado. Its subsidiary is Alanco Energy Services, Inc. (AES). It has revenue from oil reclamation and recognizes oil revenue when the oil is picked up by the customer.