1. Methane Gas in Coal Mining SA June 18 – 21, 2012 Barry Stevens, Ph.D. President TBD America, a Technology Business Development consulting group 1 @ 2011 TBD America

2. NATURAL GAS Low natural gas prices are lifting the U.S. economy even as many people are asking questions about its environmental impact. "Natural gas is revitalizing America's steel industry, reinvigorating its petrochemical industry and benefiting heavy-equipment makers. …. Keith Hutton, CEO, XTO Energy @ 2011 TBD America 2

3. 3 WHY STORAGE Reliability Meet Load Variations Efficiency

4. SECONDARY PURPOSES @ 2011 TBD America 4 Operational Integrity Maintaining Contractual Balance Unforeseen Accidents & Disasters Regulatory Obligations Reducing Price Volatility Market Speculations

5. THE INDUSTRY @ 2011 TBD America 5

6. THE MARKET Regulated Market Deregulated Market @ 2011 TBD America 6

7. OPERATING CHARACTERISTICS Total Gas Storage Capacity Base / Cushion Gas Working / Top Gas Deliverability Injection Capacity / Rate Cycling @ 2011 TBD America 7

8. HOW THEY WORK @ 2011 TBD America 8

9. UNDERGROUND Depleted Gas Reservoirs Aquifer Reservoirs Salt Caverns @ 2011 TBD America 9

10. Disadvantages Low Deliverability & Injection Rates One Yearly Injection/Withdrawal Cycle High Base Gas Requirement Costly Reconstruction & Maintenance DEPLETED GAS RESERVOIRS Advantages Lowest Cost Existing Pipeline Connections Existing Wells & Surface Facilities Well Characterized Geology Utilization of Indigenous Gas @ 2011 TBD America 10

11. Advantages Enables gas storage development in locations where hydrocarbon reservoirs are not readily available or suitable for natural gas storage Disadvantages Highest Capital Cost High Cushion Gas Requirement ( 50 % to 80 %) Maintaining Integrity of Gas/Water Interface Infrastructure Not Developed Poor Retention Capabilities Environmental Restrictions AQUIFERS @ 2011 TBD America 11

12. SALT CAVERNS Disadvantages High Capital Cost Environmental Issues - Brine Disposal Volume of Each Cavern has Practical & Geological Limitations Periodic Service Disruptions - Government Mandated Inspections High Operating Cost Due To Corrosive Environment @ 2011 TBD America 12 Advantages Very Low Base Gas Requirements Highest Deliverability Highest Injection Rates High Cycling Characteristics Multiple Cycles Reduces Unit Cost of Gas Injected & Withdrawn

13. ABOVE GROUND @ 2011 TBD America 13 Liquefied Natural Gas (LNG) Tank Farms Line Packing

14. High Volumetric Efficiency Costs Going Down Supports Stranded Gas Deposits LNG @ 2011 TBD America 14

15. DEVELOPMENT COSTS @ 2011 TBD America 15

16. CHALLENGES Management & Control Industry & Market Demands Regulatory Hurdles Location Constraints @ 2011 TBD America 16

17. FUTURE @ 2011 TBD America 17

18. SUMMARY Efficiency & Reliability Needs Capacity & Deliverability Driven Geographic & Economic Dependency Commodity Price Management @ 2011 TBD America 18

19. Barry Stevens, PhD President TBD America, Inc. www.tbdamericainc.com THANK YOU @ 2011 TBD America 19