1. © 2005 STS WMH StS WM Surface to Surface Waste Management Holdings Inc. September 2005

2. © 2005 STS WMH Problem Used drilling mud may contain hazardous and foreign substances leading to: Used drilling mud may contain hazardous and foreign substances leading to: Complex and costly disposal methods Complex and costly disposal methods Potential long term environmental liabilities for producers Potential long term environmental liabilities for producers High costs for remediation High costs for remediation Increasingly stringent regulatory environment(s) Increasingly stringent regulatory environment(s) Negative public perception (land contamination / water use) Negative public perception (land contamination / water use)

3. © 2005 STS WMH HDD - Problem sludge pit Vac truck hauling to landfill high tipping fees long term environmental liability

4. © 2005 STS WMH PitDry TM Solution One Step Process One Step Process PitDry Mixer used in combination with dry reagents PitDry Mixer used in combination with dry reagents Results in solidification of solid/liquid mud/waste Results in solidification of solid/liquid mud/waste

5. © 2005 STS WMH HDD – PitDry Solution sludge pit Vac truck hauling to landfill high tipping fees long term environmental liability No tipping fees – landfill cover or on-site spread PitDry

6. © 2005 STS WMH The following pictures show the progress of the test conducted September 28, 2005. The test was to see the effects of pumping directly on to a flat surface (on-site spread) and if the resulting effluent setup the same as it does in a dump truck box (hauling for landfill cover). The approx. total amount of the fluid was 4500 us gal Aprox. run time 57 min. (start time 11:06 end time 11:59) Average flow 79 gpm. Test was successful! HDD PIT DRY Test Sept 28/05

7. © 2005 STS WMH Layout of the Test Site Tanker Truck – 4500 gal Holding Pit PitDry tm Mixer Ground Discharge Area

8. © 2005 STS WMH 11:13

9. © 2005 STS WMH 11:37

10. © 2005 STS WMH 11:13 Discharge area 7 minutes after start of test 11:37 31 Minutes after start Note: Growth, Stacking, and Flow

11. © 2005 STS WMH 11:43

12. © 2005 STS WMH 11:43

13. © 2005 STS WMH 12:04

14. © 2005 STS WMH 12:05 Note: Perspective for size of discharge area and stacking of processed mud

15. © 2005 STS WMH 12:06

16. © 2005 STS WMH 12:10 Sample #1 11:12 Sample #2 11:36 Sample #3 11:50

17. © 2005 STS WMH The following pictures were taken six hours after the test run.

18. © 2005 STS WMH 6:20pm

19. © 2005 STS WMH 12:06 6:20pm Two pictures of the same area some 6 hours apart.

20. © 2005 STS WMH 6:20pm

21. © 2005 STS WMH 6:21pm

22. © 2005 STS WMH 6:21pm

23. © 2005 STS WMH Sample #1 Sample #2 Sample #3 6:22pm

24. © 2005 STS WMH Summary In approximately one hour, approximately 4,500 gal (US) (17 cubic meters, or 22 cubic yards) were processed and mixed with reagents which resulted in stackable solids which could be site spread or hauled away to a landfill in a dump truck. In approximately one hour, approximately 4,500 gal (US) (17 cubic meters, or 22 cubic yards) were processed and mixed with reagents which resulted in stackable solids which could be site spread or hauled away to a landfill in a dump truck. The reagents combine with the water and spent mud to trap and bind contaminating constituents thus making them non-hazardous. The reagents combine with the water and spent mud to trap and bind contaminating constituents thus making them non-hazardous. Output solid met all Ontario disposal requirements – considered dirt – spreadable/disposable anywhere Output solid met all Ontario disposal requirements – considered dirt – spreadable/disposable anywhere

25. © 2005 STS WMH Conclusion This test has shown that we can turn waste drilling fluids and residue to environmentally compliant transportable/land disposable solids, using a simple robust method (equipment, reagents, and process) thereby eliminating problems/costs with current waste fluid disposal methods.