2. My World

3. 3 Environmentally Friendly Drilling Systems Program A w a r d e d O c t o b e r 5, 2 0 0 9

4. Thank you EFD Sponsors!

5. Under our backyard

6. Opposition to O&G Activities

7. EFD Principles What gets measured, gets done. What gets identified, gets dealt with. What gets expected, gets respected.

8. Program Highlights Develop a risk-based selection of Environmentally Friendly Drilling Systems methodology. Develop a website for the Haynesville Shale that describes the natural gas resources available and their development and provides information about the state and federal regulatory requirements that developers must follow. Develop understanding of the environmental and social impacts that gas development in the Uinta Basin. Identify opportunities and barriers to expanded use of EFD approaches in the Uinta Basin.

9. Program Highlights Initiate an environmentally friendly E&P systems program for the Marcellus Shale Basin. Support the Disappearing Roads Competition Develop rollout road concept Identify alternatives to reduce the footprint including offsite operations and innovative fracturing technologies such as a novel process involving: minimal pumping equipment, low volumes of frac fluid and materials that are environmentally green and non-damaging. Main Components – Rollout Road Conformable Hinged board segments

10. Program Highlights Develop a free-access, searchable, database and supporting website for best management practices (BMPs). www.oilandgasbmps.org Perform a prototype test of a small footprint drilling rig to investigate how environmental tradeoffs are reduced. Develop guidelines concerning the measurement of oxides of nitrogen (NOx) for a drilling site and work with operating company personnel to plan an investigation at a location.

11. Our big challenge: Core Values Companies successfully made safety a core value. Accomplished by leadership, documenting, measuring and training. To achieve the same success in environmental performance, will require leaders to also make this a core value.

12. Making Environmental Stewardship a Core Value

13. Tradeoffs Human Culture All Living Systems

14. Scorecard Concepts

15. Energy Production Oil and Gas Operations Upstream Downstream Field Development Field Operations Exploration DrillingCompletions Processing Refining Transportation Distribution Focus Scorecard on Operation Concept – USGBC LEED Program

16. Stakeholders are all those who are affected, interested in or have the capacity to influence a project. Stakeholder Engagement is Important! Source:Connor Development Services Ltd Academia Texas A&M University College Station Texas A&M University Kingsville University of New Hampshire UT Medical Center Mississippi State University Sam Houston State University of South Alabama John Hopkins University University of Arizona University of Texas University of Houston Environmental Organizations Natural Resources Defense Council Environmental Defense Fund The Nature Conservancy Conservation International Mercer Arboretum Bureau of Applied Anthropology/Arizona Clinton Climate Initiative Rocky Mountain Clean Air McFaddin Ranch Industry API Ballard Exploration BP Shell Chevron StatoilHydro ConocoPhillips Devon King Exploration Halliburton Huisman National Oil Well – Varco MI Swaco TerraPlatform T. Baker Smith Weatherford Derrick Equipment Composite Mats Ecology and Environmental Inc. PTTC IADC State/Federal Agencies US Department of Energy Bureau of Land Management US Park Service Texas Railroad Commission Texas General Land Office Texas Dept. of Agriculture Texas Dept. of Transportation US Minerals Management Services Texas Parks & Wildlife Texas Water Board Texas Commission on Env. Quality US Environmental Protection Agency US Fish and Wildlife Argonne National Laboratory Big Thicket Preserve Idaho National Laboratory

17. Tradeoff Scorecard Development

18. What to Remember: Joint industry, academia, government, non-profit program Focused on current and emerging technologies Demonstrates technologies and measures tradeoffs Environmentally Friendly Drilling Systems Program Key component of the Program What gets measured, gets done. What gets identified, gets dealt with. What gets expected, gets respected. Measuring Environmental Tradeoffs Different Scorecards for Different Ecosystems Six Attributes: Air, Water, Waste Management, Site, Biodiversity, Societal Environmental Stewardship as a Core Value www.efdsystems.com

19. Questions for You Does your organization have a definition of environmental stewardship? Where are, with reference to this definition, the gaps? What are you doing, at the strategic level of the organization, to bridge that gap?

20. It’s not so hard to be green Questions? Thank you