1. Marcellus Shale Showcase Presentation Frank Hajduk – ORA Board Member

2.  Background  Western Pennsylvania – Unique Challenges and Opportunities  Building the Future for our Region  Key Success Factors  Role of the Oil Region Alliance  Our Legacy

4.  Western Pennsylvania ushered in the birth of the Oil and Natural Gas industries  We have a long history with these industries and a knowledge of the full lifecycle of their business impact  The infrastructure is in place to support the Marcellus Shale Development

5.  Background  Western Pennsylvania – Unique Challenges and Opportunities  Building the Future for our Region  Key Success Factors  Role of the Oil Region Alliance  Our Legacy

6.  The shale is thinner is our region and will be explored later in the “play”

9. Non – Marcellus Permits – 53% Marcellus Permits – 47%

10.  The shale is thinner is our region and will be explored later in the “play”  We are in the area of “wet” or “rich” gas

13.  The shale is thinner is our region and will be explored later in the “play”  We are in the area or “wet” or “rich” gas  We have ample water and approved treatment facilities in the region

14.  The shale is thinner is our region and will be explored later in the “play”  We are in the area or “wet” or “rich” gas  We have ample water and approved treatment facilities in the region  The major gas transportation lines and infrastructure are in place or in process

18.  Background  Western Pennsylvania – Unique Challenges and Opportunities  Building the Future for our Region  Key Success Factors  Role of the Oil Region Alliance  Our Legacy

19.  We are committed to building sustainable businesses and relationships that outlive the “boom” and utilize the advantages of Western Pennsylvania Water transportation and treatment

20.  Water treatment facility using an evaporative process to separate out the brine from frac wastewater

21. New DEP regulations require treatment of Marcellus wastewater to achieve Total Dissolved Solids of 500mg/liter after processing

22.  Water treatment facility using an evaporative process to separate out the brine from frac wastewater New DEP regulations require treatment of Marcellus wastewater to achieve Total Dissolved Solids of 500mg/liter after processing Evaporation is the most viable technology that can achieve this

23.  Water treatment facility using an evaporative process to separate out the brine from frac wastewater New DEP regulations require treatment of Marcellus wastewater to achieve Total Dissolved Solids of 500mg/liter after processing Evaporation is the most viable technology that can achieve this We are uniquely positioned along the Allegheny River to achieve this

24. DEP Title 25 Ch. 95, page 4

25. Average TDS Concentration Estimates ( 500 is the limit ) No Permits to be issued above 375 159 409 242 346

26. Brine Treatment Franklin Emlenton Refinery Gas Power Plant Coal Power Plant I-80 Allegheny River – Franklin to Emlenton Airport

27.  Water treatment facility using an evaporative process to separate out the brine from frac wastewater  Create a transportation infrastructure for moving water by rail and road

28. Freight Railways in Western Pennsylvania

29.  We are committed to building sustainable businesses and relationships that outlive the “boom” and utilize the advantages of Western Pennsylvania Water transportation and treatment “Wet gas” Development

30.  Install a stripper plant in the region Currently one being built in Evans City in Butler County

31.  Install a stripper plant in the region Currently one being built in Evans City in Butler County  Recruit chemical plants that use propane, methane, ethane, and butane as feedstock

32.  Install a stripper plant in the region Currently one being built in Evans City in Butler County  Recruit chemical plants that use propane, methane, ethane, and butane as feedstock  Create storage and transportation systems for these gases as capacity increases

33.  We are committed to building sustainable businesses and relationships that outlive the “boom” and utilize the advantages of Western Pennsylvania Water transportation and treatment “Wet gas” Development Expand the use of natural gas products

34.  Natural gas power plants using as much of the higher BTU content “wet” gas as possible ( approx. 26% more heat content / cubic foot)

35.  Natural gas power plants using higher BTU content “wet” gas if possible  Recruit energy intensive industries to take advantage of available power

36.  Natural gas power plants using higher BTU content “wet” gas if possible  Recruit energy intensive industries to take advantage of available power  Become a storage area for natural gas and its by-products

37.  Natural gas power plants using higher BTU content “wet” gas if possible  Recruit energy intensive industries to take advantage of available power  Become a storage area for natural gas and its by-products  Recruit businesses that use methane as a feedstock

38.  Natural gas power plants using higher BTU content “wet” gas if possible  Recruit energy intensive industries to take advantage of available power  Become a storage area for natural gas and its by-products  Recruit businesses that use methane as a feedstock  Recruit businesses to convert the transportation industry from petroleum to natural gas

39.  Background  Western Pennsylvania – Unique Challenges and Opportunities  Building the Future for our Region  Key Success Factors  Role of the Oil Region Alliance  Our Legacy

40.  Understanding the impact of the severance tax on drilling in our area

41.  Determining the most cost effective method of meeting the new DEP Regulations for Total Dissolved Solids

42.  Understanding the impact of the severance tax on drilling in our area  Determining the most cost effective method of meeting the new DEP Regulations for Total Dissolved Solids  Balancing the economic opportunity with the environmental and infrastructure concerns

43.  Background  Western Pennsylvania – Unique Challenges and Opportunities  Building the Future for our Region  Key Success Factors  Role of the Oil Region Alliance  Our Legacy

44.  A non-profit Company that has Economic Development, Heritage Preservation, and Recreational Development as its mission

45.  Has a network of contacts throughout the region that know how to make things happen

46.  Has a balanced full time staff that can service all your needs

47.  It begins here ! – Become the “Go To” resource in Western Pennsylvania starting with The Marcellus Shale Showcase

48.  …and ends with an economically prosperous region in balance with our rich heritage, breathtaking landscapes, and enviable quality of life

49.  Background  Western Pennsylvania – Unique Challenges and Opportunities  Building the Future for our Region  Key Success Factors  Role of the Oil Region Alliance  Our Legacy

51.  Now it is our time to build our legacy– we have been given an opportunity to create a bright future for not only our region, but our country as well. If we act responsibly, using the knowledge that we have gained from the past wisely, we, and generations to come, can look back at this point in time with pride knowing that we were part of something great.