1. FracFocus- THE National Hydraulic Fracturing Disclosure Registry TCEQ Environmental Trade Fair May 6, 2016

2. WHY IS HYRAULIC FRACTURING A CONTINUING ISSUE? WHY IS HYRAULIC FRACTURING A CONTINUING ISSUE? Exploration in formerly non producing areas Severed mineral vs. surface rights The process seems mysterious Trade secret claims decrease public trust Shortage of accurate public information Misinformation by the media

3. Mis-information

4. PROVIDING INFORMATION! – THIS TAKES AWAY FEAR OF THE UNKNOWN! AND – EMPOWERS PEOPLE! The best way to counter mis-information is by:

5. Why FracFocus? Growth in high volume hydraulic fracturing led to greater concerns about the chemicals being used Potential federal intervention into state issues (FRAC Act) concerned states Desire by the states (and industry) to decrease public concern by providing transparency

6. FracFocus What is it? – The ONLY nationwide source of hydraulic fracturing chemical, informational and regulatory information. What is its purpose? – FracFocus provides transparency through a national Web site that discloses hydraulic fracturing chemical data and information. How did it start – Joint-partnership formed in 2010 between two state’s organizations: Ground Water Protection Council and Interstate Oil & Gas Compact Commission

7. What FracFocus does not and does do? What FracFocus does not do. – Act as a regulatory program – Act as a well drilling and completion reporting system – Make regulatory decisions regarding reporting parameters or trade secrets What FracFocus does. – Provides the ONLY national source for hydraulic fracturing chemical information authorized by state government agencies – Provides landowners and researchers with extensive information about the chemicals used in the hydraulic fracturing of individual wells – Notifies state government regulatory agencies when disclosures are received – Shows locations of disclosures using a Google Maps® style interface – Acts as the means for regulatory reporting in 23 states

9. HOW DOES IT WORK? WWW.FRACFOCUS.ORG

10. Two parts – Public side General information Disclosure presentation – Disclosure submittal side Operator inputs Agency outputs

12. FracFocus Elements Hydraulic Fracturing: How it Works Groundwater Protection Regulations by State Chemical Use Find a Well by State This element describes the process of hydraulic fracturing including the history of the practice, what, why and how fracturing is conducted, site development, and fluid management

13. FracFocus Elements Hydraulic Fracturing: How it Works Groundwater Protection Regulations by State Chemical Use Find a Well by State This element talks about groundwater and the methods used to protect it including water usage, well construction, and groundwater quality and testing.

14. FracFocus Elements

15. Hydraulic Fracturing: How it Works Groundwater Protection Regulations by State Chemical Use Find a Well by State This element provides the user with information about the reasons chemicals are used in hydraulic fracturing, the chemicals most commonly used, and laws regarding public disclosure of chemicals.

16. FracFocus Elements Hydraulic Fracturing: How it Works Groundwater Protection Regulations by State Chemical Use Find a Well by State This element allows the user to locate a well that has been hydraulically fractured and to see a record of the chemicals used in the fracturing process. It provides the user with multiple ways to find a well such as searches by state, county, well name, API number and operator

17. Find a Well by State

19. Disclosure presentation

20. Click on pdf Icon to open the record

21. FracFocus 2.0 Generated PDF: Example

22. Additional Features Publications Links Frequent Questions The website has a publications page that allows the user to see reports, studies and publications related to hydraulic fracturing and water. These include reports from the GWPC, USGS, USEPA, IOGCC Universities and others.

23. Additional Features Publications Links Frequent Questions The links page contains hyperlinks to government and technical resources

24. Additional Features Publications Links Frequent Questions This element offers answers to the most frequently asked questions concerning hydraulic fracturing. The page also contains an Ask a Question form that can be used to submit questions about the website or hydraulic fracturing.

25. Future Infographics Design

27. Step 2 Concurrent with drilling, layers of pipe called casing strings are placed in the hole. Each string of casing is cemented into the hole to prevent migration of fluids from one zone to another. Read more….. Constructing the Well Each casing string is run to a specific depth to isolate zones from succeeding drilling and completion processes.

28. Centralizers keep the casing Centered in the hole Cement between the casing and the hole isolates groundwater The horizontal leg of a well can extend for several thousand feet Not to scale

30. Return to Groundwater Protection: Well Construction & Groundwater Protection

31. Disclosure Submittal From FracFocus 1.0 to 3.0

32. Developed in 4 months Data entry via Excel spreadsheet Converted to pdf’s Only header data (Operator, location TVD etc…) captured in database Maintained on individual PC’s Limited data validation FracFocus 1.0

33. Initially, chemical data entry into the registry by the oil and gas companies was voluntary, but in the first year of operation, several states adopted regulations requiring data on the chemicals used in frac fluids to be disclosed – Many of those states specifically referenced FracFocus as the mechanism for submitting those data The number of wells for which chemical information was entered grew quickly – By the end of 2012, data had been entered on more than 34,000 wells, representing 342 companies FracFocus 1.0

34. FracFocus 2.0 FracFocus 1.0 was developed to fill an important gap in public disclosure information – The programming and system design were done in a way that allowed FracFocus 1.0 to get underway quickly in early 2011 As the volume of information entered into the system grew, industry, GWPC, and IOGCC realized that a more efficient data management system was needed – This led to the development of FracFocus 2.0 during 2012 and early 2013

35. 2.0 Server Side Data Management Removed Distributed Excel File Issues Centralized Data Single Standardized Software Application Consistent Disclosure Presentation Operator’s Manage and Create Disclosures Service Company Uploads to Operators Agents Approved to Manage Data Agencies Allowed to Review & Request Compliance Information

36. Created New User Categories

37. The FracFocus 2.0 Disclosure Submission System

38. Service company creates xml and sends to operator via e-mail Service company creates xml and uploads directly to operator queue Operator or registered agent creates xml using pre-loaded forms Three ways to generate FracFocus 2.0 files

39. FracFocus 2.0 Data Entry Forms

40. E&P Operator: View Disclosure Details Click Edit Disclosure From Pending List: Visibly review entered or uploaded Data, Map of Well Spot, Access Edit Options

41. State and county auto-filled from API number Coordinates checked to be within county boundaries Warnings for – Invalid CAS #’s – Fluid % not within range – Bad county numbers by state code Errors for – Invalid coordinate ranges – No entries in Base water or Base non-water volumes – No entry in TVD – No purpose listed – No supplier listed FracFocus 2.0 Validation Checks

42. FracFocus 3.0 1.Independent reviews and suggestions 2.Public input on system functionality 3.FracFocus systems and security audit 4.Secretary of Energy Advisory Board recommendations

43. FracFocus 3.0 1.Improvements to the accuracy of well data disclosed on FracFocus 2.Establishment of a policy for data custody, management, security, and retention 3.Upgrades to data downloads to improve user access to information 4.State validation of compliance 5.Bureau of Land Management participation

44. Improvements to the accuracy of well data disclosed on FracFocus Six step validation process to improve data quality and accuracy

45. Data quality – Step 1 CAS Number Validation Changed Invalid CAS from a Warning to an Error

46. Data quality – Step 2 Ingredient Pulldown List

47. Data quality – Step 3 Trade Secret, Proprietary, CBI Contact information is required for any ingredient marked as Trade Secret, Proprietary, CBI, Confidential or Not Assigned

48. Data quality- Step 4 Hover text to assist users Providing textual assistance to the user to define field information

49. Data quality: Step 5 Real time Warning and Error messages Improve the quality of date by showing the user warnings when a field value falls outside of an expected range and errors when data is not acceptable

50. Data quality – Step 6 Reducing trade secret claims: The systems approach

51. Data quality – Step 6 cont’d Reducing trade secret claims: The systems approach

53. Ingredients with CAS #s

54. Establishment of a policy for data custody, management, security, and retention FracFocus was updated to comply with current versions of software Penetration testing was performed and an extra layer of security was installed to prevent malicious internet attacks Google analytics was added to help manage the web site and internet traffic

55. FracFocus amended and original record retention policy All records, originals and amended, are permanently stored in the FracFocus database (does not include all FracFocus 1.0 records) FracFocus 3.0 has a redundant backup system to ensure that all records are retained All current records were made available in digital format for download from FracFocus on May 7, 2015 – Limitations: FracFocus 1.0 records have header data only Records from June 1, 2013 on have chemical data FracFocus cannot warrant the accuracy of records because we are not allowed to review and modify records submitted under regulatory requirements

56. Upgrades to data downloads to improve user access to information Digital downloading of data based on individual searches Connections with the National Oil and Gas Gateway Expanded data download formats (csv, ASCII, etc…)

57. State validation of compliance Under FracFocus 2.0 states had the ability to download data to check compliance FracFocus 3.1 – RBDMS: automatic sync and report generation

58. State validation of compliance

59. RBDMS report form to check for chemical filing compliance

60. RBDMS – chemical disclosure report Disclosure date HF start/end date

61. Bureau of Land Management Designation of Federal and Indian lands Certification of compliance with BLM requirements Notification of disclosure submission to BLM

62. BLM Requirements The Bureau of Land Management needed to differentiate between wells on Federal and Indian lands. FracFocus 3.0 added additional checkboxes for compliance with this BLM requirement. Additional XML element(s) were also added to account for this change. If users select the Federal and/ or Indian well’s checkbox an additional popup box will be displayed requiring the user to certify compliance with BLM requirements.

63. BLM Certification

64. Company Growth By Month

65. Disclosures Reported By Period

66. Disclosures Reported By State* 24 States

67. MIKE NICKOLAUS, GWPC MNICKOLAUS@GWPC.ORG Ground Water Protection Council