1. Piceance Basin Natural Gas Development Program
Northwest Colorado Oil & Gas Forum
Presented by:
Michael DeBerry
September 4, 2008
Kristi Pollard – Policy, Government & Public Affairs, → Chevron Staff, based in Grand Junction
Sean Norris – Coordinator for the Environmental, Social and Health Impact Assessment (ESHIA), → Chevron Staff, based in Grand Junction
Aim of the meeting
To provide you with more information about the project, and to answer your questions

2. Piceance Natural Gas Program Update
Two Recent Hand Injuries that Required Medical Attention
83 Wells on 4 Pads Have Been Drilled to Date
H&P Rig 318 Celebrated One Year Injury Free
KSI (Construction Contractor) Completed One Year Injury Free
30 Inch Sales Pipeline Completed in August 2008
Currently Flowing 5MMCFD
Gas is Being Processed by Enterprise
Enhanced Performance Through Technology/Process Improvements

3. Well Design TD – 200’ below the WF. Average TVD ~ 5,800’.
KOP – Minimum 200’
Max Build Rate – 3o / 100’
Max Inclination – 40o
Max Drop Rate - 2o / 100’
Average Departure ~ 1100’.
Section 25 shown with 64, 10 acre wells hit from three pads in valley location.

4. Piceance Natural Gas Program Update cont.
ESHIA Being Implemented into Project Management Plan
Plan Replaced Produced Water Pond with Tanks
Steadily Expanding Environmental Monitoring Programs – Water Quality and Wildlife
Finalized $25M Agreement with Garfield County for CR 204
Granted a $45K Grant to the De Beque School District for a Computer Lab, Software and Hardware

5. Piceance Natural Gas Program Update cont.
Partnering with the Tamarisk Coalition on the Watson Island Project
Eradication and Re-vegetation along a 70 mile stretch of the Colorado River
Major Sponsor for the Robb River Rally on Sept. 13th
A Community Biking/Running Event to Continue the Vision of Completing a Trail System Along the Colorado River from Garfield County to Utah and from Grand Junction to Delta along the Gunnison River

6. The Future of the Piceance Program
Continue Operating the Current Two Drilling Rigs Until Mid 2010.
Continue Infrastructure Installation in the Clear Creek Valley.
Central Production Facility Commissioning Targeted for Second Quarter 2009.
Continue Interim Production Operations Until Facility Commissioning.
Limited Well Completion Activity Until Second Quarter 2009.