Marcellus Shale Showcase Presentation Frank Hajduk – ORA Board Member

 Background  Western Pennsylvania – Unique Challenges and Opportunities  Building the Future for our Region  Key Success Factors  Role of the Oil Region Alliance  Our Legacy

 Western Pennsylvania ushered in the birth of the Oil and Natural Gas industries  We have a long history with these industries and a knowledge of the full lifecycle of their business impact  The infrastructure is in place to support the Marcellus Shale Development

 Background  Western Pennsylvania – Unique Challenges and Opportunities  Building the Future for our Region  Key Success Factors  Role of the Oil Region Alliance  Our Legacy

 The shale is thinner is our region and will be explored later in the “play”

Non – Marcellus Permits – 53% Marcellus Permits – 47%

 The shale is thinner is our region and will be explored later in the “play”  We are in the area of “wet” or “rich” gas

 The shale is thinner is our region and will be explored later in the “play”  We are in the area or “wet” or “rich” gas  We have ample water and approved treatment facilities in the region

 The shale is thinner is our region and will be explored later in the “play”  We are in the area or “wet” or “rich” gas  We have ample water and approved treatment facilities in the region  The major gas transportation lines and infrastructure are in place or in process

 Background  Western Pennsylvania – Unique Challenges and Opportunities  Building the Future for our Region  Key Success Factors  Role of the Oil Region Alliance  Our Legacy

 We are committed to building sustainable businesses and relationships that outlive the “boom” and utilize the advantages of Western Pennsylvania Water transportation and treatment

 Water treatment facility using an evaporative process to separate out the brine from frac wastewater

New DEP regulations require treatment of Marcellus wastewater to achieve Total Dissolved Solids of 500mg/liter after processing

 Water treatment facility using an evaporative process to separate out the brine from frac wastewater New DEP regulations require treatment of Marcellus wastewater to achieve Total Dissolved Solids of 500mg/liter after processing Evaporation is the most viable technology that can achieve this

 Water treatment facility using an evaporative process to separate out the brine from frac wastewater New DEP regulations require treatment of Marcellus wastewater to achieve Total Dissolved Solids of 500mg/liter after processing Evaporation is the most viable technology that can achieve this We are uniquely positioned along the Allegheny River to achieve this

DEP Title 25 Ch. 95, page 4

Average TDS Concentration Estimates ( 500 is the limit ) No Permits to be issued above

Brine Treatment Franklin Emlenton Refinery Gas Power Plant Coal Power Plant I-80 Allegheny River – Franklin to Emlenton Airport

 Water treatment facility using an evaporative process to separate out the brine from frac wastewater  Create a transportation infrastructure for moving water by rail and road

Freight Railways in Western Pennsylvania

 We are committed to building sustainable businesses and relationships that outlive the “boom” and utilize the advantages of Western Pennsylvania Water transportation and treatment “Wet gas” Development

 Install a stripper plant in the region Currently one being built in Evans City in Butler County

 Install a stripper plant in the region Currently one being built in Evans City in Butler County  Recruit chemical plants that use propane, methane, ethane, and butane as feedstock

 Install a stripper plant in the region Currently one being built in Evans City in Butler County  Recruit chemical plants that use propane, methane, ethane, and butane as feedstock  Create storage and transportation systems for these gases as capacity increases

 We are committed to building sustainable businesses and relationships that outlive the “boom” and utilize the advantages of Western Pennsylvania Water transportation and treatment “Wet gas” Development Expand the use of natural gas products

 Natural gas power plants using as much of the higher BTU content “wet” gas as possible ( approx. 26% more heat content / cubic foot)

 Natural gas power plants using higher BTU content “wet” gas if possible  Recruit energy intensive industries to take advantage of available power

 Natural gas power plants using higher BTU content “wet” gas if possible  Recruit energy intensive industries to take advantage of available power  Become a storage area for natural gas and its by-products

 Natural gas power plants using higher BTU content “wet” gas if possible  Recruit energy intensive industries to take advantage of available power  Become a storage area for natural gas and its by-products  Recruit businesses that use methane as a feedstock

 Natural gas power plants using higher BTU content “wet” gas if possible  Recruit energy intensive industries to take advantage of available power  Become a storage area for natural gas and its by-products  Recruit businesses that use methane as a feedstock  Recruit businesses to convert the transportation industry from petroleum to natural gas

 Background  Western Pennsylvania – Unique Challenges and Opportunities  Building the Future for our Region  Key Success Factors  Role of the Oil Region Alliance  Our Legacy

 Understanding the impact of the severance tax on drilling in our area

 Determining the most cost effective method of meeting the new DEP Regulations for Total Dissolved Solids

 Understanding the impact of the severance tax on drilling in our area  Determining the most cost effective method of meeting the new DEP Regulations for Total Dissolved Solids  Balancing the economic opportunity with the environmental and infrastructure concerns

 Background  Western Pennsylvania – Unique Challenges and Opportunities  Building the Future for our Region  Key Success Factors  Role of the Oil Region Alliance  Our Legacy

 A non-profit Company that has Economic Development, Heritage Preservation, and Recreational Development as its mission

 Has a network of contacts throughout the region that know how to make things happen

 Has a balanced full time staff that can service all your needs

 It begins here ! – Become the “Go To” resource in Western Pennsylvania starting with The Marcellus Shale Showcase

 …and ends with an economically prosperous region in balance with our rich heritage, breathtaking landscapes, and enviable quality of life

 Background  Western Pennsylvania – Unique Challenges and Opportunities  Building the Future for our Region  Key Success Factors  Role of the Oil Region Alliance  Our Legacy

 Now it is our time to build our legacy– we have been given an opportunity to create a bright future for not only our region, but our country as well. If we act responsibly, using the knowledge that we have gained from the past wisely, we, and generations to come, can look back at this point in time with pride knowing that we were part of something great.