1. March 30, 2016 Murrysville Oil & Gas Ordinance Education Series Developer Perspective Huntley & Huntley Petroleum & Natural Gas Exploration Established 1912 3

2. Murrysville is within the sweet spot of SW PA Marcellus

3. Murrysville Land Coverage Gross:23,578.4 Ac No-Drill Zone:14,433.8 Ac (61%) Drill Zone: 9,144.6 Ac (39%) HHEX Leased 7,828.5 Ac (86%)

4. Gross Recoverable:$2.97 Billion No-Drill Zone Recoverable:$1.83 Billion Drill Zone Recoverable:$1.14 Billion Murrysville – Marcellus Gas Value

5. HHEX alignment of interest with Murrysville for Marcellus development NO Yes

6. HHEX alignment of interest with Murrysville for Marcellus development Minimal Number of Drill Site Pads to Recover Maximum Gas – Long Horizontal Laterals Small Super Single Rig vs Walking Triple Rig Pump Water to Pad Sites vs Trucking Water Use produced gas to fuel drilling process and hydro-fracing process to minimize diesel fuel use Vent-less production systems on producing wells We live here too – each community has its own unique circumstances for considering land uses

7. Industry Regulations

8. -STRONGER- Statewide Independent Regulation Review State Review of Oil & Natural Gas Environmental Regulation - www.strongerinc.org Develop and share guidelines for state oil and gas environmental regulatory programs through the use of subject matter experts from multi-stakeholder workgroupsguidelines Review volunteer state regulatory programs against the guidelines through the use of multi-stakeholder review teams, and produce consensus reports containing findings and recommendationsreports PA 2013 Review of ACT 13 Received Highest Grades in the United States

9. Best Business Practices Used to Protect Our Water and Our Air Protecting soil and ground water contamination from spills at surface during the well construction phase Protecting the groundwater table while drilling through them and from subsurface produced fluids or frac water contamination through Casing String/Cement Design Why 60 plus years of Hydraulic fracturing has resulted zero fresh water table contaminations via pressure propagation Protection does not stop after facility construction but continues throughout the wells life Air Emissions – Testing results and Impact

10. Locations Utilizing Flat Topography Leave Smaller Legacy Footprints

11. Locations Built on Hill Sides Have a Much Larger Legacy & Noticeable Footprint

12. Spills On or From the Construction Site Highest Risk of Contaminating Soils or Ground Water Table

13. Auger Rig Moves In and Installs Cellar and 24” Conductor Pipe

14. Liner Installed Around Cellar Wall

15. Primary Containment Cellar Receives Polyurethane Seal

16. Secondary Containment Liner Bonded to Cellar

17. The future of wellhead cellars

18. Auger Rig Moves Out Secondary Containment Installation

19. Rolled and Seam Welded Pad Layout Seam Welding

20. Entire Location Construction Site is Now Liner Protected and Spill-Proof

21. Next is Drilling the Vertical Wells and Protecting the Ground Water Table

22. Closed Loop System – Means No Pits on Location to Collect Fluids or Cuttings

23. Vertical Drilling Rig is No Different Than the 100,000 PA Vertical Wells Historically Drilled Except Best in the Nation Casing and Cement Design

24. Fresh Water Table is Behind Four Casing Strings with Cement Outside of Each in Murrysville Area

25. Little Rig Moves Off Site and Location is Prepared for Big Rig to Drill the Horizontal Section

26. Big Rig in industry called a Super Single Low Profile and Easy Mobilization

27. Most of The Industry is Using a Walking Triple High Profile with Week Long Mobilization

28. Closed Loop System Marcellus Cutting not a NORM Concern at Landfill

29. 8 Horizontal Wells Do the Work of 32 Vertical Wells – Now to Fracture Stimulate

30. Hydro-Fracing Equipment & Supplies are either Primary or Secondary Contained for 100% Spill Protection

31. Frac Well Head and Valves

32. Fresh Water (<2000 TDS) Storage in Silos not Pits & Piped to location, not Trucked

33. Water Manifold feeding the Frac Equipment 1” of Rain on 2000 acres enough water for Frac

34. Recycled Water is Stored for use in Tanks with Secondary Containment

35. What is in the Frac Fluid? 100% Transparency

36. Fear of Fracing Contaminating the Fresh Water Table is Misunderstood

37. Once the Rock Breaks the Fractures Propagate in Outward Wings (Think Log Splitter)

38. Final Producing Wellhead

39. Final Production Facilities Corridor with Methane Vent-less, Vandal-Proof Equipment

40. 24 Hour Real-Time Monitoring & Control 911 Address

41. Emergency Response Safety Setbacks – The Experts Have Provided Guidance – Only need 500’

42. Air Pollution Investigation Cooperation 2011 DEP Results In 2011, 57 operators of unconventional wells and 40 mid- stream operators of 150 compressor stations reported air quality data to the DEP. Natural gas is replacing coal in electric power generation. Since 2008, air emissions across the state are declining in part due to this shift to natural gas. The study found that State wide unconventional gas production and processing did emit 16,542 tons of nitrogen oxides in 2011, however emissions of the same pollutant have fallen 43,000 tons per year. Natural Gas produces 75% less CO2 than Coal in Electric Generation

43. U.S. Energy Information Administration CO 2 Emissions at 27 year low From 1988 to 2015 – U.S. Population Increased from 244M to 320M From 1988 to 2015 – Nat Gas Electric Generation Growth 15% to 36% From 1988 to 2015 – Coal Electric Generation Declined 58% to 35%

44. Your World Class Asset Entrusted to us to Develop Thank You Citizens of Murrysville This is your world class asset and it deserves the best the industry can provide for our safety and our environment in its development Huntley & Huntley

45. Questions?