The Original Drilling Fluids Company™ NSF/ANSI Certification and the Mining /Exploration Industry CDDA 2008 By Mark Duckworth

25 July 2006 “For External Distribution.© 2006 Halliburton. All Rights Reserved.” NSF/ANSI Certification of Drilling Fluids  What is the NSF?  What is NSF certification  What are the benefits of NSF certification?  What does it mean for the mining and exploration industry?

25 July 2006 “For External Distribution.© 2006 Halliburton. All Rights Reserved.” What is NSF?  “NSF International” is an independent not for profit non-governmental organization, is dedicated to being the leading global provider of public health and safety standards.  The NSF Mark is recognized for its value in international trade around the world and is respected by regulatory agencies at the local, state, and federal levels.

25 July 2006 “For External Distribution.© 2006 Halliburton. All Rights Reserved.”  In 1988 the EPA (Environmental Protection Agency) stopped approving products based on EPA standards  They continued to write the standards and contracted with NSF to certify that the products were fit for use under the EPA standards  As a result of this relationship many provinces and states now recognize the value of this certification.

25 July 2006 “For External Distribution.© 2006 Halliburton. All Rights Reserved.” Canadian Territories & Provinces

25 July 2006 “For External Distribution.© 2006 Halliburton. All Rights Reserved.” United States

25 July 2006 “For External Distribution.© 2006 Halliburton. All Rights Reserved.” Scope of Water Treatment Chemicals Covered by NSF/ANSI Standard 60 Covers all categories of water treatment chemicals:  Coagulation and flocculation  Corrosion and scale control  Disinfection and oxidation Miscellaneous Treatment Applications algicide fluoridation Miscellaneous Water Supply Products cleaning aids drilling aids >>> Baroid IDP products (bentonites & polymers, LCM, etc) lubricating oils

25 July 2006 “For External Distribution.© 2006 Halliburton. All Rights Reserved.” Purpose of Standard 60  Establishes minimum health effects requirements for treatment chemicals Active ingredients  Is the chemical safe at its maximum use level? Ex. is the maximum reasonable use level of QUIK-GEL safe? Impurities  Are contaminants below maximum allowable levels? Depends on what you drill through.

25 July 2006 “For External Distribution.© 2006 Halliburton. All Rights Reserved.” Drilling Fluids Degradation & NSF Certification  Degradation is the deterioration in the composition, quality, level, or standard of performance of a functional unit. NSF certification indicates that this process is either slowed sufficiently or yields by- products not harmful to the environment; i.e., functionally inert.  Biodegradation is the process by which organic substances are broken down by living organisms  Substrate for potential addition of microbes, bacteria, fungi, etc  Introduced to subsurface geology including aquifers where they were not located prior to drilling

25 July 2006 “For External Distribution.© 2006 Halliburton. All Rights Reserved.” Exploration & Mining  Environmental concerns are becoming part of the equation when performing different drilling procedures.  Maintaining a base of NSF/ANSI standard 60 certified products reduces the issues with regards to environmental compliance.

25 July 2006 “For External Distribution.© 2006 Halliburton. All Rights Reserved.”  NSF reduces the level of concern for the end user, the drilling contractor, the client, and the regulator as to whether or not the materials are fit for use in a potable aquifer.  If an issue develops and you have used NSF/ANSI standard 60 certified products you can be assured that you have not contributed to the issue at hand.

25 July 2006 “For External Distribution.© 2006 Halliburton. All Rights Reserved.”  Baroid supports NSF/ANSI standard 60 and recommends the use of Standard 60 certified products when in contact with a potable water aquifer.  Every effort is made to ensure that any new product is certifiable under NSF/ANSI Standard 60.  If you have any questions, contact your drilling fluid supplier.

25 July 2006 “For External Distribution.© 2006 Halliburton. All Rights Reserved.” Questions

25 July 2006 “For External Distribution.© 2006 Halliburton. All Rights Reserved.” A Point to Ponder  In closing let me suggest that we do not inherit the environment and the ground water from our ancestors, but we borrow it from our children.