1. Summary Device protocols tied intimately to applications. A need to significantly reduce critical data update times. Current network bandwidth consumption limiting additional information. “One to One” information silos. “ Operational Intelligence ” stranded in field devices! Poll-Response SCADA systems were perfectly viable solutions when first developed 35 years ago. They have served the industry well, and continue to do so. But we are entering 2014 and are now challenged with:

2. IBM Oil & Gas Seminar December 2013 Customer Feedback On Smart Remote Diagnostic Services 2 Security & Reliability Data Management Analytics Impact Deployment Rising Interoperability Critical Willingness To Pay Cloud Services Collaboration Rising User Experience Industrial security is “top of list” issue with industrial users Want multiple options for data management – local (on premise) & remote See big benefits – want better software tools for diagnostic analytics Growing number of users are planning programs for remote services Data cannot be easily accessed across differing application systems Willingness to pay in users with remote services history and experience Sophisticated users see big shift in budgets from capex to opex Users see many opportunities for using new mobile technologies Want better more intuitive software for maintenance workers

3. IBM Oil & Gas Seminar December 2013 Harbor Research – Strategies For Smart Systems and The Internet of Things Convene Advise Research Collaborative Design System Discovery Market Discovery Discovering And Developing Smart Businesses Discover / Understand Emerging Opportunities Domains Technologies Markets Plan / Build New Businesses Analysis Strategy Planning Design / Develop Platforms and Systems: Collaborative Design Interactive Forums Community Participation and Validation we combine deep domain and technology knowledge, creative processes and facilitation and an extensive network of expertise and relationships as growth catalysts…..

4. We can apply technology to: Mitigate environmental risk Detect leaks earlier Resolve problems faster Manage audit and regulation more effectively Run operations more efficiently Instrumented Interconnected Intelligent

5. Future Opportunities for Message-Based SCADA Systems (from a 2005 perspective) “Flight Simulator” for pipeline Controllers Interface to business systems Real-time meter ticket transactions to shippers and other carriers’ business systems Distributed SCADA

6. Schneider Electric 6 Smarter SCADA Infrastructure Transformation Benefits: From the SCADA Supplier Perspective Project Development Only ONE Industry Standard Protocol is Required Reduced Project Schedule Reduced Project Budget Reduced Project Risk Customer Support prior to Shipment All Field Communications can be tested in the Factory The SCADA Database is 100% verified in the Factory All Applications Can be More Thoroughly Tested in the Factory Customer Support In the Field Point to Point PHMSA Requirement now becomes Manageable & Cost Efficient Support is Very Manageable & Complete due to Virtualization & Pub/Sub Broker System Cutover Costs are Reduced for Both Companies Continuous Microsoft Updates & Patches Can now be Implement Efficiently

7. Schneider Electric 7 Smarter SCADA Infrastructure New Opportunities: From the SCADA Supplier Perspective SaaS, Hosted Applications Cloud Based SCADA Solutions Cloud Based Applications Like Leak Detection, Gas Measurement Energy & Business Optimization Energy & Business Optimization Applications are now decoupled from Data Source Applications now Access a Virtually Integrated Corporation, Not Constrained by Communications or Proprietary Legacy Databases Business Applications Cloud Based Business Optimization Applications Ease of Adding & Deleting Assets Productivity Applications

8. Summary Proven and Reliable Solutions Over 14 Years of Experience with MQTT and M2M Customizable and Flexible Solutions Configuration Can be Done Remotely or On-Site Compatible With All Field Devices Multiple Types of Communication Numerous Security Options Customizable Hardware Provides Simple Migration Path

9. Migration Strategy Provide a high level transition timeline Identify and document any risks and issues Identify other data producers / consumers Provide a recommendation on Gateway/Edge devices or direct device enablement to provide MQTT message transport to a selected field device Provide future state topology for OT/IT integration Provide a recommendation on next steps