1 May 2010 Unconventional Gas- Shale gas, tight gas and coal seam gas

Frac water handling Unique geology, geography, and producer practice in each region Source: GE Water unconventional gas team Water processing options selected examples 1. Fresh water => Inject Frac => Disposal well 2. Fresh water => Limited Pretreat TSS=> Inject Fresh/Frac Blend => Disposal well 3. Fresh water => Pretreat MB/TSS/Metals => Inject Fresh/Frac Blend => Disposal well 4. Fresh water => Pretreat => TDS Evaporator => Inject Fresh/Fresh blend => Salt disposal/sale 7, ,000 ft Frac Water Frac water pond Fresh Water Central Plants - Pretreatment - TDS Evaporator - Crystallizers / Salt Mobile Plants - MB Reduction - TSS Filtration - TDS Evaporator Reuse of diluted high TDS water Frac water disposal well Truck/pipe for deep injection or Municipal water treatment - Limited treatment before disposal or transfer High Volume, Low TDS Low Volume, High TDS Time Advantages Low cost … potential liability Reduced fresh water Reduces chemical treatment need Recycle fresh water; Cleanest option Ground Water well Frac water flow back profile TDS: Total dissolved solids – salinity etc TSS: Total suspended solids – larger particles. MB: Micro biological Pretreatment can include TSS/ MB/ Metals/ NORM filtration Industry trending toward field water processing of early volumes Centralized processing for recycle and or pipeline-rail- trucking for injection disposal Industry will look for a variety of solutions 30 days 90 days

3 May 2010 Source Water Filtration- Mobile Ultrafiltration

4 Benefits to Filtration Effectively removes TSS, Iron, Mn and organics including SRB’s and APB’s. Reduces or eliminates the need for toxic biocides in source water for hydraulic fracturing. May reduce other chemicals as well. Potential for a better frac job given the cleaner water.

5 Identified Need: TSS Reduction Elimination/Minimization of Chemicals Mobile 4200 GPM Conventional Pretreatment μm SRB/APB Range

6 Building Block Design Fiber Module RackTrain Mobile

7 Conceptual Flows: 4 Trailers 4600 GPM 4200 GPM ~400 GPM

8 M-PAK-1000 Major On-Board Components Feed: – 1150 GPM – PSI – 35-85F – 8” Flange (2) 100% Feed Pumps (2) 500 Micron Self Cleaning Screen Filters (2) 40 Module Trains Filtrate Tank Permeate Pump – PSIG – 8” Flange Reject Pump – PSIG – 6” Flange Filtrate Tank CIP Tank CIP Tank Heater Air Compressor/Blowers Chem Feeds/Neutralization – Sodium Hypochlorite – Citric Acid – Sodium Hydroxide PLC/HMI – Automatic – Manual

9 May 2010 Produced water recycling- Mobile Evaporation

10 GE Water & Process Technologies Confidential August 2010 Marcellus Haynesville Fayetteville Barnett what drives water processing choice? Fayetteville Shale Frac Water Volumes: 0.5MM-2 MM Gallons Water Flowback Rates: 30% initial30 days, balance over 5 800gal-80gal/day Water Quality: 13,000 (mg/l TDS) CTWT: Truck/pipeline to Texas for deep well injection disposal Barnett Shale Frac Water Volumes: 0.8MM-12 MM Gallons Water Flowback Rates: 50% initial 30 days balance over gal-80gal/day Water Quality: 82,000 (mg/l TDS and climbing CTWT: Deep well injection disposal Haynesville Shale Frac Water Volumes: 3MM-8MM Gallons Water Flowback Rates: 30%-50% first 30 days, balance 1200gal/day Water Quality: 100,000 (mg/l TDS) CTWT: Truck/ pipeline to Texas for deep well injection disposal Marcellus Shale Frac Water Volumes: 0.5MM-12 MM Gallons Water Flowback Rates: 20%-40% first 25 days balance >1 Yr 1200gal-70gal/day Water Quality: 125,000 (mg/l TDS) CTWT: Options of dilution or deep well injection disposal determined by regulation and cost. Recycle options needed. CTWT: Current Typical Water Treatment Source: GE Water Unconventional Gas Team Availability of fresh water Quality of flowback water Proximity-availability of disposal wells/sites Environmental sensitivity of region Multiple key factors in shale plays Water characteristics of key shales

11 GE Water & Process Technologies Confidential August 2010 water quality to design basis(SW Marcellus) High Volume, Low TDS Low Volume, High TDS Frac water flow back profile 30 days 90 days GE analysis utilized volume weighted averages of individual wells and regions

12 GE Water & Process Technologies Confidential August 2010 determine design basis The specific objectives of the Marcellus test program involved four areas: 1. Develop process design basis 2. Evaluate feed pretreatment requirements 3. Identify optimum evaporator design parameters o Maximum concentration factor (CF) o Boiling point rise (BPR) o Tendencies for foaming, fouling, scaling o Distillate composition 4. Evaluate Crystallizer Designs & Performance o Boiling point rise (BPR) o Foaming, fouling o Salt purification / separation

13 GE Water & Process Technologies Confidential August 2010 mobile frac evaporator design basis Feed rate = 47 gpm Daily hours of operation = Continuous, 24 hours/day Average feed concentration = 128,000 mg/l TDS Target brine concentration = 280,000 mg/l TDS Average feed volume = 68,000 gal/day (1610 bbl/day) Average brine volume = 31,000 gal/day (730 bbl/day) Average recovered water = 37,000 gal/day (880 bbl/day) GE Water developed design criteria GE Proprietary Draft, Privileged, and Confidential

14 GE Water & Process Technologies Confidential August 2010 mobile frac evaporator design features Heat exchanger (HX) design 2-pass, forced circulation, tube & shell configuration Provides greater reliability (higher on-stream availability) Mechanical vapor recompression (MVR) design dual turbofans in series configuration Lower power consumption (lower OPEX vs. competition) Partial vacuum operation - brine temperature <75 o C (167 o F) Reduced fouling of heat exchange surfaces Truck mounted design – fits within one standard trailer Truly mobile system, straight-forward setup, weather protected Clearly demonstrates cutting edge technological expertise GE Proprietary Draft, Privileged, and Confidential

15 May 2010 Disposal Well Filtration- One Pass Filter

16 GE Customer Presentation 8/15/2015 Membrane Technology Spiral wound/tubular: best suited to NF/RO Hollow fiber: best suited for MF/UF Sand filtration Microfiltration Ultrafiltration Nanofiltration Reverse Osmosis mm Flat plate Reverse Osmosis Increasing pressure requirements One Pass

17 May 2010 GE Water & Process Technology Salt Water Disposal Optimization Benefits Include Minimizes Cost of tank cleaning and maintenance due to the accumulation of solids in the tanks. Minimizes Erosion due to pumping high TSS waters. Maximizes Performance and life expectancy of the disposal well. Reduced Chemical Demand Minimizes Overall Operating Cost Combines Physical Separation & Chemistry Optimization to reduce the Total Operating Cost of Salt Water Disposal Well Operations:

18 GE Customer Presentation 8/15/2015 Filter Vessel Engineered Vessels

19 May 2010 Particle Size Analysis

20 May 2010 Microbiological Testing