1. WE FIND A BETTER WAY R The Missouri Carbon Sequestration Project – A Model For State Assessment of Carbon Sequestration Feasibility Gary J. Pendergrass, PE, RG – Principal, GeoEngineers AEG 54 th Annual Meeting, Anchorage, Alaska September 23, 2011

2. WE FIND A BETTER WAY R Project Overview  The Missouri Carbon Sequestration Project is federally-funded research project to assess feasibility of onsite carbon sequestration at Missouri power plant sites.

3. WE FIND A BETTER WAY R Genesis of the Project  City Utilities of Springfield began researching carbon sequestration in 2006.  At the time, there was energetic debate in Congress regarding regulation of carbon dioxide with several competing bills eventually being offered.  DOE Regional Partnerships also began to identify, evaluate best sequestration targets.  City Utilities concluded CO2 pipeline connecting Missouri power plant sites to regional sequestration sites would likely be years away and involve very great expense.  City Utilities assembled consortium of organizations to address carbon sequestration in Missouri.

4. WE FIND A BETTER WAY R Member Organizations and Supporters  Research Members —City Utilities of Springfield —Missouri Department of Natural Resources —Missouri University of Science & Technology —Missouri State University  Utility Members —Ameren Missouri —Associated Electric Cooperative, Inc. —City Utilities of Springfield —Kansas City Power & Light —The Empire District Electric Company  Supporting Organizations —Missouri Energy Development Association —Missouri Public Utility Alliance

5. WE FIND A BETTER WAY R Member Utility Coal-Fired Power Plants  Missouri’s electric utilities and Missouri’s citizens have large stake in project.  The 5 member utilities collectively provide electricity to 90% of Missouri’s farms, families and businesses.

6. WE FIND A BETTER WAY R Project Funding  City Utilities proposed project to Senator Christopher (Kit) Bond, who secured $4.8M in federal funding.  Member utilities contributed required matching funds; providing total project budget just under $6M.

7. WE FIND A BETTER WAY R Project Administration  The Missouri Carbon Sequestration Project is being administered by Department of Energy National Energy Technology Laboratory under Cooperative Agreement No. DE- NT0006642.

8. WE FIND A BETTER WAY R Target Formation  St. Francois Aquifer comprised of basal Lamotte Formation and overlying Reagan Sandstone.  Lamotte Formation is lateral equivalent of Mt. Simon Formation.

9. WE FIND A BETTER WAY R Target Formation  Thickness of St. Francois Aquifer varies greatly since deposited on irregular erosional surface, but ranges up to 700 feet.

10. WE FIND A BETTER WAY R Confining Layer  Derby-Doerun/Davis confining layer separates St. Francois Aquifer from overlying Ozark Aquifer.

11. WE FIND A BETTER WAY R Original Project Scope – John Twitty Energy Center  3D Seismic Reflection Survey.  Installation of 2 Exploratory Wells (coring of confining layer, target formation, geophysical logging, pump testing, packer testing, and completion of exploratory wells as monitoring wells).  Basic research at MS&T, MSU (core analysis and reservoir analysis).  Installation of additional perimeter monitoring well.  Design and Installation of UIC Class 6 Injection Well.  Injection Test utilizing “food grade” CO2.  Long-term Monitoring.

12. WE FIND A BETTER WAY R Exploratory Well #1 - Drilling & Coring  Cuttings, core logged by MDNR geologist.  Core archived in MDNR McCracken Core Library in Rolla, MO.  MSU grad student in foreground. Project has funded several grad students at MS&T, MSU.

13. WE FIND A BETTER WAY R Selecting Core Intervals for Laboratory Testing  Graduate students, under supervision of faculty, selected representative core intervals for testing and analysis at MS&T, MSU.

14. WE FIND A BETTER WAY R MDNR Personnel Cutting Core Samples  MDNR personnel cut and split the selected core intervals for laboratory analysis, testing.  Except for few small intervals, split samples were retained for archive in McCracken Core Library.

15. WE FIND A BETTER WAY R Confining Layer  Derby-Doerun/Davis confining layer consists of thinly- bedded dolomite, shale.  Permeability of confining layer proved too low to measure.

16. WE FIND A BETTER WAY R Target Formation Porosity Measurements  Reagan Sandstone and Lamotte Formation porosity varied from < 1% to 18%.  Results show very good correlation between MS&T and Core Lab measurements.

17. WE FIND A BETTER WAY R Target Formation Permeability Measurements  2 zones of high permeability were found in Reagan Sandstone (1780’ – 1795’ and 1812’ – 1832’).  Permeability of remainder of Reagan Sandstone is low.

18. WE FIND A BETTER WAY R Target Formation Permeability Measurements  Permeability range throughout Lamotte Formation was very low (1 to 10 mD).

19. WE FIND A BETTER WAY R Target Formation Water Quality  Water samples obtained from Reagan, Lamotte sandstone units once coring completed.  Water analyses yielded Total Dissolved Solids (TDS) concentrations of 152 mg/L for Reagan and 208 mg/L for Lamotte, which are well below DOE guidelines for CO2 injection tests.  Plans for injection test at John Twitty Energy Center abandoned and project re-directed.

20. WE FIND A BETTER WAY R Revised Project Scope – Additional Drilling Sites  3 additional boreholes will be completed at utility member sites.  Drilling, coring and testing will be conducted as at JTEC site.  4 boreholes will collectively provide good assessment of carbon sequestration feasibility in Missouri, fill important DOE data gap. IATAN GENERATING STATION - KCP&L THOMAS HILL ENERGY CENTER - AECI RUSH ISLAND POWER PLANT - AMEREN JOHN TWITTY ENERGY CENTER - CITY UTILITIES

21. WE FIND A BETTER WAY R Revised Project Scope – Additional Drilling Sites  Based on available data, TDS concentrations at 3 additional drilling sites are expected to occur in range of 10,000 to 45,000 mg/L.

22. WE FIND A BETTER WAY R Thomas Hill Energy Center – Borehole #2  Thomas Hill Energy Center is located on northern flank of Ozark Uplift, between Lincoln Fold and Forest City Basin.  Based on available geologic data, Borehole #2 is expected to encounter top of Lamotte Formation at 2,300 feet, Precambrian surface at 3,000 feet.

23. WE FIND A BETTER WAY R Iatan Generating Station – Borehole #3  Iatan Generating Station is located on edge Forest City Basin.  Based on available geologic data, Borehole #3 is expected to encounter Lamotte Formations at 2,727 feet, Precambrian surface at 2,745 feet.

24. WE FIND A BETTER WAY R Rush Island Power Station – Borehole #4  Rush Island Power Station is located on edge Illinois Basin.  Based on available geologic data, Borehole #4 is expected to encounter Lamotte Formation at 2,585 feet, Precambrian surface at 3,000 feet.

25. WE FIND A BETTER WAY R Project Schedule  Request for Proposals for drilling and coring services released next week.  Boreholes drilled sequentially over next 18 months.  Final report compiled and submitted to Department of Energy National Energy Technology Laboratory by September 30, 2012.

26. WE FIND A BETTER WAY R Acknowledgement  “This material is based on work supported by the Department of Energy National Energy Technology Laboratory under Award Number DE-NT0006642.”

27. WE FIND A BETTER WAY R Disclaimer  “This report was prepared as an account of work sponsored by an agency of the United States Government. Neither the United States Government nor any agency thereof, nor any of their employees, makes any warranty, express or implied, or assumes any legal liability or responsibility for the accuracy, completeness, or usefulness of any information, apparatus, product, or process disclosed, or represents that its use would not infringe privately owned rights. Reference herein to any specific commercial product, process, or service by trade name, trade mark, manufacturer, or otherwise does not necessarily constitute or imply its endorsement, recommendation, or favoring by the United States Government or any agency thereof. The views and opinions of authors expressed herein do not necessarily state or reflect those of the United State Government or any agency thereof.”

28. WE FIND A BETTER WAY R Questions?  Gary J. Pendergrass, PE, RG Principal/Geological Engineer GeoEngineers, Inc. 3050 S. Delaware Avenue Springfield, MO 65804 (417) 831-9700 gpendergrass@geoengineers.com