1. Northwest & Intermountain Power Producers Coalition Shale Gas: Lemonade or Lemons? Randy Friedman Director, Gas Supply Northwest Natural Gas July 2012

2. Shale Gas is (almost) Everywhere 2

3. - Gas Daily, May 23, 2012 The Good - Energy Biz, March/April 2012 3 - www.forbes.com, May 21, 2012

4. The Bad 4 - Gas Daily, May 24, 2012 - www.syracuse,com, March 21, 2012 - Bloomberg News, May 31, 2012

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7. What are the Major Issues? 7  Water Quality  Protection of Aquifers  Consumption of Fresh Water  Safe Disposal of Produced Water  Air Emissions  CO 2 from compressors and other operations  Methane from venting/leakage  Other air pollutants, e.g., from diesel trucks  Other environmental impacts  Seismic activity  Endangered species  Construction in sensitive areas

8. Pavillion – The Smoking Gun? 8  Dec. 8, 2011, EPA issues Draft Report  Presence of certain chemicals in drinking water samples is “consistent with migration from areas of gas production.”  High methane levels  Benzene well above Safe Drinking Water Act standards  Not So Fast!  Results above from deep wells, not drinking water wells  Bad water in region pre-dates natural gas drilling  Sampling tests and methodology flawed  Mar. 8, 2012, EPA announces new testing  EPA acknowledges concerns  New process likely to run through year-end

9. 9 Doing it Right Proper Well Construction Layers of Separation Safe Disposal of Drilling Fluids

10. 10 Faulty Wells, Not Fracking, Blamed for Water Pollution - Wall Street Journal, March 13, 2012

11. Transparency on Fracking Chemicals 11 www.fracfocus.org

12. Fracking and Earthquakes 12 - Scientific American, Nov. 14, 2011 - Environmental Working Group, April 2012 - Christian Science Monitor, April 12, 2012

13. Expect this to get Worst… 13 “Gasland 2” due out in late 2012 Focus on lobbying efforts, exports of fracking technology and climate change Goal is to ban fracking in the U.S. - National Journal, April 20, 2012 “Promised Land” expected in 2013 Matt Damon, Gus Van Sant Movie centers on the dangers of fracking

14. …before it gets Better 14 Executive Order issued April 13, 2012 establishes a new federal Interagency Working Group to: “coordinate the…safe and responsible development of unconventional domestic natural gas resources and associated infrastructure“ “help reduce our dependence on oil” “take full advantage of our natural gas resources” set “sensible, cost-effective public health and environmental standards” to “augment State safeguards.” - Huffington Post, May 11, 2012