EBA - Hydraulic Fracturing 11- June - 2012

1. EBA - Hydraulic Fracturing 11- June - 2012 Ken Powell For the benefit of business and people

2. HF Environmental Issues 2 According to a study released Thursday, February 17, 2012 by the Energy Institute at The University of Texas of Austin. - No direct connection has been found between hydraulic fracturing and reports of groundwater contamination. Environmental Risk - Water Availability - Fluid Disposal - Induced Seismicity - Proprietary Additives - Emissions EBA : 10-June-2012

3. HF Environmental Issues 3 Air emissions can be grouped into two main categories: - Emissions from transportation Fine diesel particulate matter (PM). Each well requires 2+ million gallons of fracking fluid per fracking event so 1,000+ trucks/ single fracking event - Emissions from natural gas drilling & processing Chemicals EBA : 10-June-2012

4. Design Solution 4 Reduced Emission Completion (RECs) or Green Completion - Captures gas and sells produced during well completions and well work-overs following hydraulic fracturing. - Reduces volatile organic compounds (VOCs) and hazardous air pollutants (HAPs). Waste Water & Flow Back Reduction - 15 to 20% of wastewater returns to the surface - On site storage, Transport for treatment/disposal, Underground Injection, Recycling New Approach - On-Site Waste water treatment Removes dissolved and suspended solids by 97% to a level where the water is acceptable for re-use. EBA : 10-June-2012

5. Design Solutions 5 • Well Completion Design Integrity Casing Selection - Casing provide for the isolation of fresh water zones and groundwater from the inside of the well. - Casing is designed with safety factor of least 2x Cementing - As important as casing is, it is the cementation of the casing that adds the most value to the process of groundwater protection. - Proper sealing of annular spaces with cement creates a hydraulic barrier to both vertical and horizontal fluid migration. : Consequently, the quality of the initial cement job is a critical factor in the prevention of fluid movement from deeper zones into groundwater resources - Provide mechanical support, protect casing from corrosion - Support wellbore walls (in conjunction with casing) to prevent collapse EBA : 10-June-2012

6. Thanks! Ken Powell

7. Natural-gas condensate is a low-density mixture of hydrocarbon liquids that are present as gaseous components in the raw natural gas produced from many natural gas fields. • Total suspended solids (TSS) is a water quality measurement usually abbreviated. The dry-weight of particles trapped by a filter • Volatile organic compounds (VOCs) are emitted as gases from certain solids or liquids. VOCs include a variety of chemicals, some of which may have short- and long-term adverse health effects. Concentrations of many VOCs are consistently higher indoors (up to ten times higher) than outdoors. VOCs are emitted by a wide array of products numbering in the thousands. Examples include: paints and lacquers, paint strippers, cleaning supplies, pesticides, building materials and furnishings, office equipment such as copiers and printers,

8. Hazardous air pollutants (HAPs) are chemicals which can cause adverse effects to human health or the environment.

9. Environmental Risks – Specific Examples

10. Environmental Risks • Water Availability: • Water availability could pose potential for conflict since water withdrawal can have cumulative impact on local watersheds. • Fluid Disposal: • 20 – 40% of the frac fluid is produced back to the surface. Returned frac fluid contains toxic additives, proppants and NORMs (Naturally Occurring Radioactive Material). • Disposal options include – transporting the fluid to land disposal facility, disposal using an injection well or recycling. In any case, monitoring the toxic content and treating may be required depending on the local laws and regulations. • Induced Seismicity: • Mild earthquakes have been experienced in some fields where hydraulic fracturing was implemented. • Proprietary Additives: • Since many additives are proprietary, these chemicals are not disclosed and full extent of their properties and effects on environment may not be known. • Since these are unidentified, contamination caused by them (or lack of contamination) cannot be verified. • Potential to Impact Ecosystem: • Exposure of livestock and wildlife to produced water • Inadvertent spread of invasive plants through increased traffic • Habitat fragmentation • Effects of contaminated water on aquatic life

11. Air Pollution • Air emissions from hydraulic fracturing can be grouped into two main categories: • 1) Emissions from transportation • Fine diesel particulate matter (PM). • Each well requires between 2+ million gallons of fracking fluid per fracking event. • Water transported by diesel trucks, with an approximate capacity of 3,000 gallons (EPA 2011) therefore over 1,660 trucks/ single fracking event. • Emissions from natural gas drilling and processing EBA : 10-June-2012

12. Water Table vs. Frac Depth 3 More Fracs have been mapped in the Barnett than any other reservoir since 2001. Perforation depths are illustrated by the red-colored band . Barnett Marcellus EBA : 10-June-2012

13. AIR QUALITY CONCERNS • Air pollutant emissions from hydraulic fracturing can be grouped into two main categories: • 1) Emissions from transportation • Emissions from natural gas drilling and processing. • Each well requires between 2 to 7.8 million gallons of fracking fluid per fracking event. Since water – the • primary constituent of fracking fluid – is not generally pumped directly to wells, water must be • transported by diesel trucks, each of which has an approximate Maintenance Solutions - 23/01/06

14. Maintenance Solutions - 23/01/06

15. Water Table vs. Frac Depth 3 Barnett Marcellus Maintenance Solutions - 23/01/06

16. VOLATILE ORGANIC COMPOUNDS (VOC) • VOCs are defined as organic compounds that react in the presence of sunlight, with nitrogen oxides • (NOx) to form ozone, a regulated pollutant in Colorado. This lower level ozone combines with fine • particles of dust and other material and contributes to smog formation. Although ozone is needed in • the upper atmosphere, in the lower atmosphere (near the earth's surface) it acts as an irritant, • causing health problems for all life, including animals and plants. • HAZARDOUS AIR POLLUTANTS (HAPS) • HAPs are Hazardous Air Pollutants. A HAP is a compound that has been included on the EPA list • of 188 chemicals that can have detrimental effects on humans and the environment. These • substances have been known to cause headaches, dizziness, difficulty breathing, increased risk of • cancer, birth defects, and other harmful effects. Maintenance Solutions - 23/01/06

17. http://www.youtube.com/watch?v=73mv-Wl5cgg http:http://10.1.0.114:15871/cgi-bin/blockpage.cgi?ws- session=1813031276//www.oerb.com/default.aspx?tabid=242 http://10.1.0.114:15871/cgi-bin/blockpage.cgi?ws-session=3775966142 Maintenance Solutions - 23/01/06

18. HF Environmental Issues 3 Air emissions can be grouped into two main categories: - Emissions from transportation Fine diesel particulate matter (PM). Each well requires 2+ million gallons of fracking fluid per fracking event so 1,660 trucks/ single fracking event - Emissions from natural gas drilling & processing Chemicals EBA : 10-June-2012

19. 5 > Summary

20. Thanks!

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