Wastewater to Frac Water Presented by – Peter Bernard, CEO Active Water Solutions, LLC.

1. A “Smart” Solution for Wastewater Treatment Wastewater to Frac Water Presented by – Peter Bernard, CEO Active Water Solutions, LLC. Williston Basin Petroleum Conference May 22, 2012

2. Global Demand for Water • The total volume of water on Earth is about 1.4 billion km3 (1KM3=220B gallons). The volume of freshwater resources is around 35 million km3, or about 2.5 percent of the total volume • One of four city residents worldwide, 194 million in total, lives without access to improved sanitation facilities • Fresh Water use in US O&G drilling and completions estimated to be 100 billion gallons or 2.5B barrels Source: www.unwater.org

3. North America Drought Map http://www.noaa.gov/

4. Industry Statistics • It takes approximately 5MG of water to drill and complete a well including fracturing. • North Dakota will need to preemptive about where to get water for general population as well as industrial needs. • Current and ongoing drought conditions not likely to improve which will continue to strain on water supply. • Population will continue to grow at an accelerated rate and need solution now • Stats on North Dakota …water consumption… wwvolume… estimated at 2.5 Billion gallons …at 100 gal per person • It’s time to start taking advantage and utilizing what you have at your finger tips.

5. It’s time to think outside the box • We must start looking at the problem. We must find solutions that work more efficiently, are sustainable and game changing. • Current Challenges: • Antiquated Infrastructure • Growing population = maxed out WWTP • Inadequate funding for Sanitation Departments • Regulation Crackdown on discharge levels • Competition for available freshwater resources will increase • Most logical alternative is the direct utilization of treated municipal wastewater because it will conserve available surface and groundwater supplies

6. Capabilities • The AWS product line can provides local municipalities and remote communities a low cost alternative to treating municipal wastewater. • Fixed film reactor that is superior to other biological treatment systems and can meet the EPA and EU effluent requirements for municipal wastewater within 48 hours of initiation • Proprietary blend of non-genetically modified organisms (non-GMO) That integrate all aspects of naturally occurring biofilms. • Sludge abatement can account for approx. 30%-50% of operational costs for wastewater treatment plants. Integrations of AWS system into existing infrastructure will significantly reduce costs while minimizing environmental impact of communities.

7. AWS Technology UnitPhoenix 50K

8. Phoenix solves 2 problems at once: Helps deal with growing populations and wastewater treatment needs Provides near potable water for industrial needs. Products: 450K GPD – Large volume system. Perfect for municipalities that need an alternative to traditional costly permanent WWTP. 50K GPD– Skidded System. Can be housed in any building of your choosing. CW 50K GPD – Housed in a large container that is insulated and heated. Perfect for extreme cold weather scenarios. 25K GPD – Ruggedized system. Fits compactly into 20 ft. ISO shipping container. Great for military and humanitarian applications.

9. Water re-use Advantages • Water effluent quality is near potable • Perfect water to re-use in all O&G needs • Secondary uses in irrigation and industrial • Does not use current freshwater drinking supplies • Low cost to operate and maintain • Ready to use in days