1. 600 East Boulevard Ave. - Dept 405 Bismarck, ND 58505-0840 (701) 328-8020(701) 328-8000 North Dakota Department of Mineral Resources http://www.state.nd.us/ndgshttp://www.oilgas.nd.gov

2. Development area > 15,000 sq mi Size of West Virginia

5. 2,400 wells=90MW

6. 350-375 wells 2013-2020

9. Western North Dakota 1,100 to 2,700 wells/year = 2,000 expected –185 rigs = 22,000 temporary drilling jobs –Another 13,000 temporary jobs building infrastructure –2,000-3,000 permanent jobs added each year –185 rigs will complete the first phase of drilling in 6-12 months –185 rigs will require about 20 years to complete phase 2 drilling –2,000 new wells per year requires 11-22 million gallons of frac water per day –40,000-45,000 new wells = 40,000-70,000 long term jobs 17-28 million gallons per day maintenance water

13. Reclamation 26,346 wells permitted as of 9/1/13 –1,291 approved locations –1,136 drilling and completing –2,837 cancelled and expired permits –9,096 producing –972 idle producers –447 active EOR injectors –390 idle EOR injectors –398 active disposal wells –234 idle disposal wells –1,113 bond not released 8,432 reclaimed locations

20. NDIC Goals Reduce Flared volume Reduce number of wells flaring Reduce duration of flaring from wells

23. NDIC 2013-2014 Rulemaking 41 sections proposed – 16 due to statute changes – 11 apply to treating plants – 13 administrative or industry request/friendly Hearing 8:30am October 1, 2013 Comment period ends 5:00pm October 11, 2013 Final NDIC approval November 26, 2013 Effective date April 1, 2014

27. WILLISTON BASIN TEMPERATURE PROFILE PROJECT

29. NDIC Drill Cuttings Samples Multi-well pads – Sample the one/two well(s) per pad to the deepest layer/bench – Sample vertical and build section at 30 foot intervals – Sample horizontal section at 90 foot intervals Single well pads – Sample vertical and build section at 30 foot intervals – Sample horizontal section at 90 foot intervals