Hydraulic Fracturing (Fracking) The process of creating fractures in rocks First industrial usage in 1903 to separate granite blocks from bedrock Oil and gas industry use fracking at a wellbore drilled into reservoir rock Oil and Gas Fracking The stimulation of oil and natural gas wells was first used in U.S. in 1947 Industry use of oil and gas fracking started in 1949 90% of natural gas production wells in U.S. may use fracking Fracking regulations Energy Policy Act of 2005 exempted wells which are hydraulic fractured from being re-classified as injection wells under Safe Drinking Act FRAC Act of 2009 referred to the Committee on Environment and Public works  NPDES permit for 23 existing offshore platforms and future drilling operations in specific lease blocks on the Pacific Outer Continental shelf (March 1, 2014)

Hydraulic Fracturing Once the drilling rig leaves, hydraulic fracturing can begin Hydraulic fracturing was first used by the natural gas and oil industry in the 1940s Since its first uses, fracing has developed into a highly engineered and advanced technology that allows for the safe and economic removal of natural gas and oil from deep shale formations

Typical Hydraulic Fracturing Site Layout

Scenario Modeling Modeling is a key component of optimizing the treatment program by minimizing the quantity of fluids and additives required for an economically successful well Identify optimum treatment type based on knowledge of geological conditions Fluid type selected on the basis of most effective fracture creation and controlled proppant (e.g. sand) transport Fracture fluid additives incorporated to provide increased viscosity, control corrosion, reduce friction, control bacteria, etc. Minimizing fluid quantities will typically reduce the volume of produced water that will need to be managed

Staged Hydraulic Fracturing Hydraulic Fracturing of horizontal wells typically occurs in stages Each stage consists of isolating a specific length of the horizontal lateral and can vary depending on total length of lateral and specific characteristics of the Shale at a particular site or location Each interval would typically have 4 clusters of perforations with each cluster being 2 feet in length and having 6 perforations per foot (12 perforations total for each 2 ft cluster) Individual intervals are isolated for each stage of the fractures by a packer or bridge plug

Typical Fracturing Products Products are rarely all used in one shale play Other: ~2% Acid Anti-bacterial Agent Breaker Clay Stabilizer Corrosion Inhibitor Crosslinker Friction Reducer Gelling Agent Iron Control pH Adjusting Agent Scale Inhibitor Surfactant Water and Sand: ~98% For more information, visit HydraulicFracturing.com and FracFocus.org or see our fact sheet on Hydraulic Fracturing

Chemical Management Disclosure of chemical additives Oil and Gas Companies are actively participating in a national publicly accessible web-based registry developed by the Ground Water Protection Council and the Interstate Oil and Gas Compact Commission and supplying data on all of it’s new wells being drilled. For details visit: www.fracfocus.org Surface management of chemicals Chemicals received follow Department of Transportation (DOT) shipping guidelines with material safety data sheets (MSDS) Employees and emergency responders have access to the MSDS so they can work and respond appropriately This system with industry BPMs and appropriate site construction, minimize potential impacts

Fluid Migration Several factors keep fluids out of drinking water aquifers Casing and cementing Frac design and physics Imbibition into face of fractures Volume of water and horse power necessary to force fluids to surface through multiple layers of both permeable and impermeable formations Lack of energy once hydraulic fracturing job is over Low pressure zone around wellbore

Fracking Diagram

Fracking Diagram