1. Task Group 8, Work Group _ API Reference Materials Work Group Work Group Members: BAKER HUGHES INC.; Don Krause* CHEVRON : Keith Morton HALLIBURTON – BAROID FLUID SERVICES: Viktoriya Kirk* Shannon Sobkowiak M-I SWACO:Tim Hubbard* Tim Wilkin* NEWPARK DRILLING FLUIDS; Charles Mooney* David Breeden Volunteers? * Confirmed SC13 – Drilling Completion and Fracturing Fluids

2. API Reference Materials Work Group Charge: Purchase, qualify, repackage, store and distribute API SC 13 Spec 13 reference materials in support of the API Standards and Monogram Programs. Reference Materials: API Calibration Barite API Calibration Bentonite API Reference Bentonite API Standard Evaluation Base Clay SC13 – Drilling Completion and Fracturing Fluids

3. API Funded Contract No. 2010-105249 received: – $10,000 /year to a fixed fee of $40,000 to purchase, qualify, repackage, store and distribute API SC 13 Spec 13 reference materials. – These funds partially re-coup company costs for of purchasing candidate materials, packaging/shipping materials and delivery to distributors. – Status: Baker Hughes Legal is reviewing the contract for approval SC13 – Drilling Completion and Fracturing Fluids

4. Current Inventory Reference Material Units in Stock As of 11/1/2010: API Calibration Bentonite (2 gal Pail) 128 API Calibration Barite (2 gal Pail) 58 API Reference Bentonite (2 gal Pail) 0 API Standard Evaluation Base Clay (5 gal pail) 7 As of 1/7/2011: API Calibration Bentonite (2 gal Pail) 128 API Calibration Barite (2 gal Pail) 58 API Reference Bentonite (2 gal Pail) 0 API Standard Evaluation Base Clay (5 gal pail) 304 SC13 – Drilling Completion and Fracturing Fluids

5. Next Proposed Project: Replace current API Calibration Bentonite Inventory and create API Reference Bentonite Inventory – Dedicate 2+ tons of non-treated bentonite as a candidate for both API Calibration Bentonite and API Reference Bentonite – Round Robin test to both qualify as API Calibration bentonite and meet API Spec 13 A non-treated bentonite specifications. – Split the volume and label ½ as API Calibration Bentonite and ½ as API Reference Bentonite SC13 – Drilling Completion and Fracturing Fluids