1. “Creating Successful Community Partnerships – Carrizo-Wilcox Aquifer Collaboration in Louisiana” Marcellus Shale Summit October 11, 2010 Jim Welsh ---Louisiana Commissioner of Conservation Gary Hanson ---Louisiana State University – Shreveport, Red River Watershed Management Institute Mike Mathis ---Chesapeake Energy Corporation, Water Planning Manager

2. LOUISIANA HAYNESVILLE SHALE OVERVIEW 1

3. 2 Shale Gas Plays, Lower 48 States Source: Energy Information Administration based on data from various published studies Updated: May 28, 2009

4. 3 Current Haynesville Shale Activity

5. 4 Generalized Lithostratigraphic Column Northwest Louisiana Haynesville Shale Area Data compiled from various sources by Office of Conservation Geological Division Oct. 2010

6. 5 Current Haynesville Shale Activity in LA

7. 6 Estimated Ultimate Recovery in Tcf (Tcf = Trillion cubic feet) Data compiled from various sources by Office of Conservation Engineering Division 2008

8. 7 Aquifers of Northwest Louisiana

9. 8 Ground Water Use Advisory

10. 9 Directive Issued to Industry for Frac Water Reporting Due to revisions of the WH-1 form, water source and associated volumes are now reported on page 3.

11. Reported Usage from 10/1/2009 to 8/25/2010 Water Usage Data for 494 Haynesville Shale Natural Gas Wells Water Stats SourceVolume (Gallons) Frac Groundwater275,151,196 Frac Surface Water1,853,007,067 Drilling Rig Groundwater Supply223,467,598 Drilling Rig Surface Water Supply29,078,243 Other Groundwater4,033,153 Other Surface Water10,001,189 Frac Stages4,801 Total Frac Water Used (gallons)2,123,158,263 Volume per Frac Stage(gallons)442,232 Average Frac Stages per Well9.7 Average Water Use per Well4,828,464 Average Frac Water Use per Well4,297,891 Haynesville Shale Natural Gas Well Development Drilling and Stimulation Operations 10

12. 11 Red River & Toledo Bend Yield Capacity Source: Jim Pratt, Executive Director – Sabine River Authority Jamie Triplett, Hydraulic Eng. – US Army Corps of Eng. Red River & Toledo Bend Yield Capacity vs. Projected Surface Water Usage at 70 % Level

13. CONCLUSION 12 http://dnr.louisiana.gov/haynesvilleshale/ MarcellusShaleSummit.ppsx