1. Well Life Plugging Insurance

2. Well Life is… a proven idea used in a new way Burial insurance for humans is a time tested proven idea Burial insurance for humans is a time tested proven idea Burial insurance covers the costs of burying a person

3. Well Life is… burial insuranceburial insurance for all oil & gas wells Well Life covers the costs of plugging new or existing... land, bay or offshore wells

4. Bonding Protection pays out only under certain conditions Well Life is… an alternative to bonding

5. Well Life Well Life Insurance Well specificWell specific paid-uppaid-up non-cancelablenon-cancelable non-surrenderablenon-surrenderable Plugging Insurance remains with the well bore for life regardless of ownership transfer

6. Well Life Well Life Eliminates all future plugging liabilities for Operators, Land owners Working Interest Owners and States

7. Well Life Well Life Consists of an insurance policy and an insurance policy and a well service contract a well service contract together these guarantee every covered well will be plugged Well Life covers 100% of the expense 100% of the time

8. Well Life Plugging Insurance How it Works Well Operator Well Operator (Policy Purchaser) Single Pay Premium Policy Benefits (Paid AFTER plugging is completed) S tate Approved Plugging Companies S tate Approved Plugging Companies (Policy Primary Beneficiary) Insurance Company Insurance Company (Policy Insurer) Backup system for perpetual assurance Fee for Service State State (Policy Owner & Contingent Beneficiary) *Note: Policy benefits are paid to the state in the event of non-performance by primary beneficiary

9. Well Life Advantages …for Industry Liability into asset Liability into asset Tax savings Tax savings Deal maker Deal maker Locked in price Locked in price Reputation builder Reputation builder

10. Well Life Advantages …for Regulators Orphaned wells gone Orphaned wells gone Less work / Lower costs Less work / Lower costs Stops fund raiders Stops fund raiders Protect state lands Protect state lands

11. Well Life Plugging Insurance

12. Assumptions: + Avg well depth = 5,494feet + Avg cost to plug well bore = $2.75ft + Avg surface remediation cost = $600/well + Texas Bond Requirements: $2.00/ft … or $25,000 for up to 10 wells $50,000 for up to 99 wells $250,000 for 100 wells or more

13. Assumptions: + Avg well depth = 5,494feet + Avg cost to plug well bore = $2.75ft + Avg surface remediation cost = $600/well + Texas Bond Requirements: $2.00/ft … or $25,000 for up to 10 wells $50,000 for up to 99 wells $250,000 for 100 wells or more 10 Well Example: Bond = $25,000 Insurance = $150,000 Surface = $6,000

14. Assumptions: + Avg well depth = 5,494feet + Avg cost to plug well bore = $2.75ft + Avg surface remediation cost = $600/well + Texas Bond Requirements: $2.00/ft … or $25,000 for up to 10 wells $50,000 for up to 99 wells $250,000 for 100 wells or more

15. Well Life Well Life Legislative Action? State Policy Ownership status State Contingent Beneficiary status Insurance equivalence to Bonding