Water Management for Shale Plays Mid-Continent 2014 Tutorial Draft Agenda

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1 Water Management for Shale Plays Mid-Continent 2014 Tutorial Draft Agenda Thursday, January 30, 2014 Tutorial Day One 8:00-8:50 Registration & Breakfast 8:50-9:00 Opening Remarks by Summit Chair 9:00-9:45 Keynote Address: Evolution of Water Management in 2014: A Producer s Perspective James E. Myers, Staff Environmental Engineer, CHEVRON (Invited) 9:45-10:30 Industry Overview: Key Drivers in the Advancement of Water Management for Shale Plays What are the key opportunities and challenges with regards to the life cycle of water (water sourcing, fluid containment, well pad operations, transportation, and water disposal)? What are the key demand drivers commodity prices, transportation costs, social license to operate and regulatory changes? Data and analysis benchmarking costs to help plan future budgets and make treatment and disposal decisions Marcus Gay, Research Director, Water Information and Insight, IHS 10:30-11:00 Networking Break 11:00-11:30 Presentation: Integrating Sustainable Development Technologies into Your Operation Strategies for minimizing your water footprint How can greener technologies combined with the correct frac fluid formulation help reduce the impact on the environment and costs for producers? Water Sourcing Walter Dale, Strategic Business Manager Water Solutions, HALLIBURTON 11:30-12:00 Case Study: Shale Water Re-Use Richard Weatherly, Associate, FREESE AND NICHOLS INC.

2 12:00-12:30 Presentation: Challenges of Providing Alternative Frac Water Sources Hydraulic Fracturing operations require large quantities of water for drilling and fracking. Since water is becoming scarce process water has to be transported to the fracking sites. Depending on the location of the well site, the well formation, and the productivity of the well, required water volumes can be 3 to 6 million gallons per well. Water use reduction, produced water reuse, alternative water sources, and water quality requirements are becoming important issues to be solved. Factors for limited water supply include cost, availability, regulations, and restrictions by communities. This presentation discusses current and alternative water sources for hydraulic fracturing, required fracking water quality issues, and practical treatment options and management of produced water. Fred Reinhard, Ph.D., Principal Technical Consultant, WORLEYPARSONS 12:30-2:00 Group Luncheon 2:00-2:30 Presentation: Maximizing Recovery Rates & Minimizing Demand for Water Needed in Fracturing Operations What are the determining factors in choosing the most feasible source of freshwater for fracing? How do you develop a systematic approach for sourcing water to increase efficiencies and reduce costs? What are the challenges associated with water sourcing and the techniques for minimizing the cost of freshwater supply? How have water sourcing challenges been overcome to enhance operations? Various means of recycling and how they can reduce the need for freshwater Presenter to be Announced Water Storage 2:30-3:00 Presentation: Storing Water On-Site to Reduce Transportation Costs and Maximize Efficiencies Which storage option is most efficient in relation to your operation: tanks, above ground temporary basin, ponds etc? What are the advantages, disadvantages and liabilities associated with these storage options? What are the differences between storing fresh water, brine, flowback, produced water, treated produced water, treated flow back etc.? Factors to consider when constructing storage facilities for flowback vs. fresh water Understanding how to store water safely and which technologies can be used to minimize risk Jonathan D. Hoopes, President, COO, Interim CEO and Director, GREENHUNTER WATER, LLC

3 Water Treatment & Re-Use 3:00-3:30 Presentation: Mobile Water Treatment Systems for Processing Frac Water Numerous companies have proposed and demonstrated small-scale wellhead water treatment, while other companies focus on transporting water to centralized treatment. Both solutions face serious practical challenges, driving the business toward what may be a middle way : modular systems designed to move only occasionally to follow fracing activity. This talk will examine the key players in the field and look at the competing technologies, as well as the factors that are driving the industry toward more rational solutions. Elizabeth Tess Murray, Research Associate, LUX RESEARCH INC. 3:30-4:00 Networking Break 4:00-4:30 Presentation: Water Infrastructure versus Mobile Options for Treating and Disposing Fracking and Produced Water Nathan Zaugg, Principal Engineer, MWH GLOBAL 4:30-5:30 Series of Presentations: Innovative Treatment Technologies for Treating Shale Water for Re-Use This series of presentations will highlight the latest treatment technologies, including fracing formulations that are being advanced in the treatment of shale for re-use. These presentations will also highlight ways to reduce water disposal and acquisition costs through recycling and reuse. Brent Halldorson, Chief Operation Officer, FOUNTAIN QUAIL WATER MANAGEMENT Ron Pettengill, Executive Vice President, Oil, Gas & Coal Produced Water Solutions, EPIPHANY SOLAR WATER SYSTEMS Friday, January 31, 2014 Tutorial Day Two 8:00-8:50 Registration & Breakfast 8:50-9:00 Opening Remarks by Chair 9:00-9:30 Presentation: Reducing water consumption in shale development through wastewater reuse: modeling regulatory incentives While annual US water consumption for the oil and gas industry is only about 0.2% of that for agriculture, droughts localized to a small area or short time, combined with the localized intensity of water withdrawal for hydraulic fracturing, can lead to stress on water resources. However, increasing the volume of wastewater recycling can reduce significantly consumptive water use, and some regulators are seeking methods to encourage wastewater recycling. This presentation shows the results of a cost-optimizing decision tool for wastewater management; this tool is applied to hypothetical field of 100 wells in the Barnett shale. Modeling regulatory mechanisms shows that financial

4 incentives for wastewater reuse can decrease water consumption by nearly half in the hypothetical case study. Sarah Fletcher, Senior Research Analyst II, IHS ENERGY INSIGHT 9:30-10:00 Presentation: Understanding and Optimizing the Water Management Value Chain Identifying the total cost of water sourcing, transport, storage, treatment, collection (flowback) transportation and disposal Myths about the cost of treatment vs. the status quo Fixed vs. mobile treatment technical and economic factors in determining where to treat Building a better water alternatives to fresh water in hydraulic fracturing HSE Reducing risk with water management Frank Zamora, Vice President, Engineering and Technology, TRICAN WELL SERVICE, LTD. 10:00-10:30 Presentation: Baseline Groundwater Sampling for Risk Management Overview of current regulations by State How to execute a comprehensive baseline sampling program Pros and cons of conducting baseline sampling Managing the information generated by a baseline sampling program John W. Oneacre, President, GROUND WATER SOLUTIONS, LTD. (GWS) 10:30-11:00 Networking Break Water Transport 11:00-11:30 Presentation: Water Program Management for Hydraulic Fracturing What facets determine the feasibility of water sources? What are the regulatory standards affecting quality, procurement, and transportation? Are there costeffective investment solutions for both short-term needs and long-term planning? How can a comprehensive water management program effectively increase efficiency and decrease downtime? What are the major challenges for E&P companies water program development, and what are the best options for both cost savings and optimal output? Water Disposal Kevin P. Molloy, P.G., Vice President, Oil and Gas Sector Leader, CDM SMITH 11:30-12:00 Presentation: Disposal Wells: An Assessment of History and Future Prospects An assessment of existing disposal wells and their limitations, disposal fees, locations and capacities in different regions Issues and potential for developing new disposal wells Hurdles in acquiring a disposal well permit and outlook for solutions Future of disposal wells vs. alternative methods of wastewater disposal

5 James L. Gooding, Ph.D., Industry Specialist, Management Consulting Division, BLACK & VEATCH 12:00 Summit Adjourns

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