1. Changes to Statewide Rule 13 June, 2013 Texas Alliance of Energy Producers John Tintera, P.G. Sebree & Tintera, LLC.

2. Statewide Rule 13 Amendments to take effect: January 1, 2014 Will not apply to wells completed before the implementation date Changes primarily deal with Casing, Cementing, Drilling, Well Control, and Well Completion

3. Amendments: Casings Operators will be required to pressure test well casings to the maximum pressure expected during fracture treatment Railroad Commission must be notified of any failed test

4. Amendments: Casings (Continued) During hydraulic fracturing, operators must monitor the annular space between the well’s casings for pressure changes (indicating a potential leak) If a potential leak is detected through annuli monitoring, hydraulic fracturing operations must be suspended

5. Amendments: Casings (Continued) Operators must verify the mechanical integrity of surface and intermediate casings for wells in which the drilling time for the next casing string (intermediate or production) exceeds 360 hours

6. Amendments: Isolation Operators must isolate across and above all formations that have a permit for an injection or disposal well within ¼ mile of a proposed well

7. Amendments: Casing Depth Railroad Commission approval is required before setting surface casing to a depth greater than 3,500 feet

8. Amendments: Testing and Monitoring Additional testing and monitoring is required for “minimum separation wells” Minimum separation wells: wells where the vertical distance between the base of usable quality water and the top of the formation to undergo hydraulic fracturing is <1,000 feet

9. Amendments: Groundwater Protection Operators must use air, fresh water, or fresh water-based drilling mud until surface casing is set and cemented in a well to protect usable quality groundwater

10. Amendments: Isolation Operators must pump sufficient cement to isolate and control annular gas migration, potential flow zones, and zones with corrosive formation fluids.

11. Amendments: Cement References to cement quality, cementing, well equipment, well casing centralizers, and well control have been updated Minimum cement sheath thickness is set at 0.75 inches for surface casing, 0.50 inches for subsequent casing strings

12. Amendments: Well Control Requirements for well control and blowout preventers have been consolidated and updated Distinction has been made between the use of well control equipment on inland, bay, and offshore wells

13. Amendments: Groundwater Advisory Unit Article 2 of House Bill 2694 has been implemented to reflect the transfer the Texas Commission on Environmental Quality’s Surface Casing Section to the Railroad Commission It is now called the Groundwater Advisory Unit

14. SWR 13 Questions SWR 13 Workshops? What’s Next: SWR 9 & 46