Polymics Leak-Proof Spill Containment System for Oil & Gas Applications By Tim Hsu, Ph.D. Lin Zhang www.polymics.com

Company Profile Founded 1994 in State College, PA. Privately Owned Manufacturer Technology Focused 150 employees globally (50 US) Multiple patents on ultra-high performance polymers being used by the Oil & Gas Industry Production Facilities in US, China and Taiwan Headquartered in State College, PA 3 shifts provide 24 hour capability Houston Sales & Support Office, TX Manufacturing – Vertically Integrated Polymer Synthesis & Production Specialty Formulation & Compounding Compression & Injection Molding Extrusion, Pultrusion & Filament Winding Centrifugal Assisted Molding Powder & Coating Technology Testing & Pilot Development Laboratory Clients include – Halliburton, Schlumberger

Objectives in Drill Site Spill Containment • Contain mud & frac fluid (water, sand, & chemicals) at drill sites • Mat to be laid on graded patch of land with easy Installation & removal • Mat to bear the load of any vehicle & containers On-Site • Mat to provide leak-proof barrier without the need for an additional liner

Current Issues & Opportunities • Limited supplier & availability of existing system components in use • No primary sealing function provided by existing mat system • Liner used as secondary seal but subject to tear, wear & potential for leakage • Heavy components with complex Interlocking mechanism • Difficult to dissemble during cold weather due to mud buildup

Desirable Features by End Users (Determined through Collaboration with Penn State) Leak Proof (proven through PSU Testing) Installation without heavy equipment Reusable (Durable) Cost effective with minimal environmental impacts Easy to transport from site to site Manufacturability Highly Functional (easy access, non-slip, built – in leak detection, etc.) Quick assembly & disassembly Target Technical Specifications Single piece dimensions not to exceed 10 ft. x 20 ft. Material properties of the mat meets all loading requirements Electrostatic dissipative desirable Ease of Installation – The mat needs to be installed by 3 workers with a fork lift, and any other necessary tools. Sealing Capabilities – The mats will seal against any drill site fluids under atmospheric pressure. Low # of Pieces – A mat with fewer pieces is ideal. Pieces could include: gaskets, springs, locking mechanisms, etc… Field Usable – Each mat will need to be able to withstand the elements on a rig sites, including extreme temperature variations (-50F to 115F), all kinds of precipitation, and various other conditions. Reusable (Durable) – Each system has to have a long work life (~5 years per mat) and work life of approximately 3-5 uses per gasket. Safety – This is in regards to the safety of the workers installing the mats, and the environment outside the drill site. Transportability – The mats need to fit in a shipping container, being shipped by sea from Taiwan. Manufacturability – The ease of manufacturing the mats directly impacts the cost, payback time, and ROI (Return on Investment) of our project. Shape – An awkwardly shaped mat will cost more to ship, and could cause shipping delays; optimization of shape will reduce costs.

Current Design – System Overview Material Selection: Glass Fiber Reinforced Thermoplastic Composite *Carbon fiber reinforced system could be used for specialty needs Key Features: Each 5’ by 10’ mat weighs less than 150 Ibs! (compared to over 500 lbs for the current Polyolefin mat system) Mats provide primary sealing eliminating the need for protective liner Significantly improved wear resistance Easy to assemble and disassemble

Current Design - Mat Internal Attachment Groves are cut on each side of the mat Each mat is slid onto the interlocking support beam system Gasket ensures leak proof connection between mats No bolts are required for the attachment “Brick Pattern” layout is adapted to ensure no leakage at the junction Note: Mats currently utilized in Europe during mining operations to build temporary roads (proven strength and durability)

Key Structural Components Current Curb Design Consistent design with thermoplastic GF composite formed curb Interlocking mechanism for sealing Slides into the mat, no bolts required Easy to manufacture and install All pieces connect internally with secondary seal Key Structural Components a. Interconnecting Frame b. Pultruded GRE channel Allows Leak Detection Sensors and Hot Air Circulation during Winter c. Interlocking internal connection with primary sealing function

Cost & Supply Chain: • Leasing Program will provide competitive cost versus existing system • Elimination of protective liner reduces overall cost (and leak proof mat system eliminates environmental impacts/ costs) Light Weight Components & Ease of Installation save on shipping and handling (install/ disassembly) Costs • All components currently available to offer system at this time

Path Forward Manufacture Prototype system for initial Pad test Goal: Mats and other components for demonstration available in 60 to 90 days Produce 300 mats (15,000 sq. ft. pad) Team with drilling company to gather all performance data Ongoing research collaborative with PSU sponsoring graduate research on specific topics

Summary Acknowledgement • Novel mat system will provide cost effective alternative to existing system • In addition to providing leak and spill containment, elimination of protective liner also further reduces waste and other environmental impacts • Thermoplastic fiber reinforced mat and curb design are ready for full scale production & job site evaluation • Assembly and manufacturing plant can all occur in PA with minimal capital investment • Minuteman Environmental Services • Chesapeake Energy • PSU Learning Factory