1 May 2010

Unconventional Gas- Shale gas, tight gas and coal seam gas

Frac water handling

Unique geology, geography, and producer practice in each region

Source: GE Water unconventional gas team

Water processing options selected examples1. Fresh water => Inject Frac => Disposal well 2. Fresh water => Limited Pretreat TSS=> Inject Fresh/Frac Blend => Disposal well3. Fresh water => Pretreat MB/TSS/Metals => Inject Fresh/Frac Blend => Disposal well4. Fresh water => Pretreat => TDS Evaporator => Inject Fresh/Fresh blend => Salt disposal/sale

7,000-12,000

ft

Frac Water

Frac water pond

Fresh Water

Central Plants - Pretreatment- TDS Evaporator- Crystallizers / Salt

Mobile Plants - MB Reduction- TSS Filtration- TDS Evaporator

Reuse of diluted high TDS water

Frac water

disposal well

Truck/pipe for deep injection or Municipal water treatment- Limited treatment before disposal or transfer

High Volume, Low TDS

Low Volume

, High TDSTime

AdvantagesLow cost … potential liability Reduced fresh waterReduces chemical treatment needRecycle fresh water; Cleanest option

GroundWat

erwell

Frac water flow back profile

TDS: Total dissolved solids – salinity etcTSS: Total suspended solids – larger particles.MB: Micro biological

Pretreatment can includeTSS/ MB/ Metals/ NORM filtration

Industry trending toward field water processing of early volumes

Centralized processing for recycle and or pipeline-rail- trucking for injection disposal

Industry will look for a variety of solutions

30 days

90 days

3 May 2010

Source Water Filtration- Mobile Ultrafiltration

4

Benefits to Filtration

Effectively removes TSS, Iron, Mn and organics including SRB’s and APB’s.Reduces or eliminates the need for toxic biocides in source water for hydraulic fracturing. May reduce other chemicals as well.Potential for a better frac job given the cleaner water.

5

Identified Need:•TSS Reduction

•Elimination/Minimization of Chemicals•Mobile

•4200 GPM

Conventional Pretreatment0.02-0.1 μm SRB/APB Range

6

Building Block DesignFiber Module Rack Train

Mobile

7

Conceptual Flows: 4 Trailers

4600 GPM 4200 GPM

~400 GPM

8

M-PAK-1000 Major On-Board Components•Feed:

– 1150 GPM– 15-90 PSI– 35-85F– 8” Flange

• (2) 100% Feed Pumps• (2) 500 Micron Self Cleaning

Screen Filters• (2) 40 Module Trains• Filtrate Tank• Permeate Pump

– 1000 gpm @ 30 PSIG– 8” Flange

• Reject Pump– 630 gpm @ 15 PSIG– 6” Flange

• Filtrate Tank• CIP Tank• CIP Tank Heater• Air Compressor/Blowers• Chem Feeds/Neutralization

– Sodium Hypochlorite– Citric Acid– Sodium Hydroxide

• PLC/HMI– Automatic– Manual

9 May 2010

Produced water recycling- Mobile Evaporation

10 GE Water & Process Technologies Confidential

August 2010

Marcellus

Haynesville

FayettevilleBarnett

what drives water processing choice?

Fayetteville ShaleFrac Water Volumes: 0.5MM-2 MM GallonsWater Flowback Rates: 30% initial30 days, balance over 5 Yr @ 800gal-80gal/dayWater Quality: 13,000 (mg/l TDS)CTWT: Truck/pipeline to Texas for deep well injection disposal

Barnett ShaleFrac Water Volumes: 0.8MM-12 MM GallonsWater Flowback Rates: 50% initial 30 days balance over 6 Yr @ 1200gal-80gal/dayWater Quality: 82,000 (mg/l TDS and climbingCTWT: Deep well injection disposal

Haynesville ShaleFrac Water Volumes: 3MM-8MM GallonsWater Flowback Rates: 30%-50% first 30 days, balance >1Yr @ 1200gal/dayWater Quality: 100,000 (mg/l TDS)CTWT: Truck/ pipeline to Texas for deep well injection disposal

Marcellus ShaleFrac Water Volumes: 0.5MM-12 MM GallonsWater Flowback Rates: 20%-40% first 25 days balance >1 Yr 1200gal-70gal/dayWater Quality: 125,000 (mg/l TDS)CTWT: Options of dilution or deep well injection disposal determined by regulation and cost. Recycle options needed.

CTWT: Current Typical Water Treatment Source: GE Water Unconventional Gas Team

• Availability of fresh water• Quality of flowback water• Proximity-availability of disposal wells/sites• Environmental sensitivity of region

Multiple key factors in shale playsWater characteristics

of key shales

11 GE Water & Process Technologies Confidential

August 2010

water quality to design basis(SW Marcellus) 

High Volume, Low TDS

Low Volume, High TDS

Frac water flow back profile

30 days 90 days

GE analysis utilized volume weighted averages of individual wells and regions

12 GE Water & Process Technologies Confidential

August 2010

determine design basisThe specific objectives of the Marcellus

test program involved four areas:1. Develop process design basis2. Evaluate feed pretreatment

requirements3. Identify optimum evaporator

design parameterso      

Maximum concentration factor (CF)

o       Boiling point rise (BPR)o       Tendencies for foaming,

fouling, scalingo       Distillate composition

4. Evaluate Crystallizer Designs & Performanceo       Boiling point rise (BPR)o       Foaming, foulingo       Salt purification /

separation

13 GE Water & Process Technologies Confidential

August 2010

mobile frac evaporator design basis

Feed rate = 47 gpmDaily hours of operation = Continuous, 24 hours/dayAverage feed concentration = 128,000 mg/l TDSTarget brine concentration = 280,000 mg/l TDSAverage feed volume = 68,000 gal/day (1610 bbl/day)Average brine volume = 31,000 gal/day (730 bbl/day)Average recovered water = 37,000 gal/day (880

bbl/day)GE Water developed design criteria

GE ProprietaryDraft, Privileged, and Confidential

14 GE Water & Process Technologies Confidential

August 2010

mobile frac evaporator design features

Heat exchanger (HX) design • 2-pass, forced circulation, tube & shell configuration• Provides greater reliability (higher on-stream availability)

Mechanical vapor recompression (MVR) design • dual turbofans in series configuration • Lower power consumption (lower OPEX vs. competition)

Partial vacuum operation - brine temperature <75oC (167oF)• Reduced fouling of heat exchange surfaces

Truck mounted design – fits within one standard trailer• Truly mobile system, straight-forward setup, weather protected

Clearly demonstrates cutting edge technological expertise

GE ProprietaryDraft, Privileged, and Confidential

15 May 2010

Disposal Well Filtration- One Pass Filter

16GE Customer Presentation

04/22/23

Membrane Technology

Spiral wound/tubular: best suited to NF/RO

Hollow fiber: best suited for

MF/UF

Sand filtrationSand filtration

MicrofiltrationMicrofiltration

UltrafiltrationUltrafiltration

NanofiltrationNanofiltration

Reverse OsmosisReverse Osmosis

0.0001 0.001 0.01 0.1 1 10 100mm

Flat plate

Reverse Osmosis

Increasing pressure requirements

One Pass

17 May 2010

GE Water & Process TechnologySalt Water Disposal Optimization

• Benefits Include• Minimizes Cost of tank cleaning and maintenance due to the accumulation of solids in the tanks.• Minimizes Erosion due to pumping high TSS waters.• Maximizes Performance and life expectancy of the disposal well.• Reduced Chemical Demand• Minimizes Overall Operating Cost

Combines Physical Separation & Chemistry Optimization to reduce the Total Operating Cost of Salt Water Disposal Well Operations:

18GE Customer Presentation

04/22/23

Filter Vessel

Engineered Vessels

19 May 2010

in out % removal1887.29 93 0.95 20-May 9:302097.98 104.81 0.95 19-May1346.59 8.93 0.99 13-May 7:30619.45 2.45 1.00 13-May 9:30357.03 3.04 0.99 12-May

0.13 0.01 0.92 6-May 2:4518.76 0.09 1.00 6-May 10:15

0.1 0.0001 1.00 7-May

Particle Size Analysis

20 May 2010

Date Location SRB APB

5/5/2009 Tk Inlet 4 45/6/2009 Tk Inlet 4 4

Filter in 4 4Filter out 0 1

5/7/2009 Non AR inlet 4 4AR inlet 4 4Filter Out 0 1Inlet SWD 4 4

5/8/2009 Tk Inlet 2 8AR inlet 8 8SWD inlet 4 4

5/9/2009 SWD in 8 75/12/2009 AR inlet 4 5

Filter inlet 2 5Filter out 0 1SWD inlet 4 7

5/13/2009 AR inlet 2 2Filter inlet 2 2Filter out 0 2

5/14/2009 M-1 test 0 25/19/2009 Gun Barrel in 1 7

Filter in 2 2Filter out 0 2SWD in 1 8

5/21/2009 Tk inlet 0 5

Microbiological Testing