1. Oil Region Alliance Burt A Waite, P.G. Moody and Associates, Inc. (814) 724 - 4970

2. Key Issues  Water Sourcing  Hydraulic Fracturing  Stray Gas  Presumption of Guilt  Water Replacement  Chapter 78  Waste Fluid Disposal 2

3. Water Sourcing  Multiple regulatory oversight PA DEP, SRBC, DRBC  Massive amounts are not that massive  42” of Rain Per Year  86,000 miles of streams  One square mile = 73 million gallons of water (146 wells)  Less water than watering golf courses in the SRB (48 mgd vs. 35 to 40 at peak development) 3

4. Hydraulic Fracturing  What is it?  None in a million  Leaking impoundments / spills a risk  Disclosure of chemical additives 4

5. Stray Gas  Recognized as a concern  New regulation package focuses on this issue  Incidents are few, but potentially serious  1939 Geologic report – Gas in aquifers  Isotopic gas testing 5

6. Presumptive Law  1000’ radius  Designed to protect homeowners  Pre-drill surveys are a key component (Don’t Say No) 6

7. Water Replacement  Most common complaint is turbidity  Most temporary  Supply temporary water  Supply permanent replacement  Must be as good as existing water in quantity and quality 7

8. Chapter 78  Significant changes to 1985 Reg package  Much more reporting and transparency  New casing and cementing requirements 8

9. Waste Fluid Disposal  Treat and discharge was preferred method  New Total Dissolved Solids (TDS) will change this 9