Building the Future for Western Pennsylvania October 6,2010

1. Building the Future for Western PennsylvaniaOctober 6,2010 Marcellus Shale Showcase Presentation Frank Hajduk – ORA Board Member

2. Building the Future for Western Pennsylvania – Agenda Background Western Pennsylvania – Unique Challenges and Opportunities Building the Future for our Region Key Success Factors Role of the Oil Region Alliance Our Legacy

3. Torpedoing a well – 1860’s

4. Background Western Pennsylvania ushered in the birth of the Oil and Natural Gas industries We have a long history with these industries and a knowledge of the full lifecycle of their business impact The infrastructure is in place to support the Marcellus Shale Development

5. Building the Future for Western Pennsylvania – Agenda Background Western Pennsylvania – Unique Challenges and Opportunities Building the Future for our Region Key Success Factors Role of the Oil Region Alliance Our Legacy

6. Western Pennsylvania – Unique Challenges and Opportunities The shale is thinner is our region and will be explored later in the “play”

7. Marcellus Shale Thickness

8. Gas wells currently in the state

9. Non – Marcellus Permits – 53% Marcellus Permits – 47%

10. Western Pennsylvania – Unique Challenges and Opportunities The shale is thinner is our region and will be explored later in the “play” We are in the area of “wet” or “rich” gas

11. Wet / Dry Gas Line

13. Western Pennsylvania – Unique Challenges and Opportunities The shale is thinner is our region and will be explored later in the “play” We are in the area or “wet” or “rich” gas We have ample water and approved treatment facilities in the region

14. Western Pennsylvania – Unique Challenges and Opportunities The shale is thinner is our region and will be explored later in the “play” We are in the area or “wet” or “rich” gas We have ample water and approved treatment facilities in the region The major gas transportation lines and infrastructure are in place or in process

15. U.S. Gas Pipeline System

17. Venango Co. Gas Lines

18. Building the Future for Western Pennsylvania – Agenda Background Western Pennsylvania – Unique Challenges and Opportunities Building the Future for our Region Key Success Factors Role of the Oil Region Alliance Our Legacy

19. Building the Future for our Region • We are committed to building sustainable businesses and relationships that outlive the “boom” and utilize the advantages of Western Pennsylvania • Water transportation and treatment

20. Water Transport and Treatment Water treatment facility using an evaporative process to separate out the brine from frac wastewater

21. Water Transport and Treatment • Water treatment facility using an evaporative process to separate out the brine from frac wastewater • New DEP regulations require treatment of Marcellus wastewater to achieve Total Dissolved Solids of 500mg/liter after processing

22. Water Transport and Treatment • Water treatment facility using an evaporative process to separate out the brine from frac wastewater • New DEP regulations require treatment of Marcellus wastewater to achieve Total Dissolved Solids of 500mg/liter after processing • Evaporation is the most viable technology that can achieve this

23. Water Transport and Treatment • Water treatment facility using an evaporative process to separate out the brine from frac wastewater • New DEP regulations require treatment of Marcellus wastewater to achieve Total Dissolved Solids of 500mg/liter after processing • Evaporation is the most viable technology that can achieve this • We are uniquely positioned along the Allegheny River to achieve this

24. . DEP Title 25 Ch. 95, page 4

25. 242 159 409 346 Pennsylvania Watersheds Average TDS Concentration Estimates ( 500 is the limit ) No Permits to be issued above 375

26. Allegheny River – Franklin to Emlenton Franklin Brine Treatment Airport Gas Power Plant Coal Power Plant Emlenton Refinery I-80

27. Water Transport and Treatment Water treatment facility using an evaporative process to separate out the brine from frac wastewater Create a transportation infrastructure for moving water by rail and road

28. Railways and Roads along Allegheny Freight Railways in Western Pennsylvania

29. Building the Future for our Region • We are committed to building sustainable businesses and relationships that outlive the “boom” and utilize the advantages of Western Pennsylvania • Water transportation and treatment • “Wet gas” Development

30. “Wet gas “ Development • Install a stripper plant in the region • Currently one being built in Evans City in Butler County

31. “Wet gas “ Development • Install a stripper plant in the region • Currently one being built in Evans City in Butler County • Recruit chemical plants that use propane, methane, ethane, and butane as feedstock

32. “Wet gas “ Development • Install a stripper plant in the region • Currently one being built in Evans City in Butler County • Recruit chemical plants that use propane, methane, ethane, and butane as feedstock • Create storage and transportation systems for these gases as capacity increases

33. Building the Future for our Region • We are committed to building sustainable businesses and relationships that outlive the “boom” and utilize the advantages of Western Pennsylvania • Water transportation and treatment • “Wet gas” Development • Expand the use of natural gas products

34. Expand the Use of Natural Gas Products Natural gas power plants using as much of the higher BTU content “wet” gas as possible ( approx. 26% more heat content / cubic foot)

35. Expand the Use of Natural Gas Products Natural gas power plants using higher BTU content “wet” gas if possible Recruit energy intensive industries to take advantage of available power

36. Expand the Use of Natural Gas Products Natural gas power plants using higher BTU content “wet” gas if possible Recruit energy intensive industries to take advantage of available power Become a storage area for natural gas and its by-products

37. Expand the Use of Natural Gas Products Natural gas power plants using higher BTU content “wet” gas if possible Recruit energy intensive industries to take advantage of available power Become a storage area for natural gas and its by-products Recruit businesses that use methane as a feedstock

38. Expand the Use of Natural Gas Products Natural gas power plants using higher BTU content “wet” gas if possible Recruit energy intensive industries to take advantage of available power Become a storage area for natural gas and its by-products Recruit businesses that use methane as a feedstock Recruit businesses to convert the transportation industry from petroleum to natural gas

39. Building the Future for Western Pennsylvania – Agenda Background Western Pennsylvania – Unique Challenges and Opportunities Building the Future for our Region Key Success Factors Role of the Oil Region Alliance Our Legacy

40. Key Success Factors for Western Pa. Understanding the impact of the severance tax on drilling in our area

41. Key Success Factors for Western Pa. Understanding the impact of the severance tax on drilling in our area Determining the most cost effective method of meeting the new DEP Regulations for Total Dissolved Solids

42. Key Success Factors for Western Pa. Understanding the impact of the severance tax on drilling in our area Determining the most cost effective method of meeting the new DEP Regulations for Total Dissolved Solids Balancing the economic opportunity with the environmental and infrastructure concerns

43. Building the Future for Western Pennsylvania – Agenda Background Western Pennsylvania – Unique Challenges and Opportunities Building the Future for our Region Key Success Factors Role of the Oil Region Alliance Our Legacy

44. Role of the Oil Region Alliance A non-profit Company that has Economic Development, Heritage Preservation, and Recreational Development as its mission

45. Role of the Oil Region Alliance Has a network of contacts throughout the region that know how to make things happen

46. Role of the Oil Region Alliance Has a balanced full time staff that can service all your needs

47. Role of the Oil Region Alliance It begins here ! – Become the “Go To” resource in Western Pennsylvania starting with The Marcellus Shale Showcase

48. Role of the Oil Region Alliance …and ends with an economically prosperous region in balance with our rich heritage, breathtaking landscapes, and enviable quality of life

49. Building the Future for Western Pennsylvania – Agenda Background Western Pennsylvania – Unique Challenges and Opportunities Building the Future for our Region Key Success Factors Role of the Oil Region Alliance Our Legacy

50. Our Legacy – starting in 1859