December 22, 2011
Allegheny County Council Meeting
April 23, 2014
2
Presentation Topics
• Big Picture
• Local Activity
• Who We Are
• Our Operations
• Deer Lakes Lease Plans
• Water Management
• Safety and Environment
• Lease Discussion
3
Marcellus Shale
4
Studies: Federal, State & Independent
5
What They Are Saying
“We Produce more natural gas than ever before -- and nearly everyone’s energy bill is lower because of it. The natural gas boom has led to cleaner power and greater energy independence. We need to encourage that.” “We should strengthen our position as the top natural gas producer…(It) not only can provide safe, cheap power, but it can also help reduce our carbon emissions.”
- President Barack Obama
6
Economic Impact
National
• Oil & gas activity increased disposable income by an avg. of $1,200 per U.S. Household in 2012 as savings from lower energy costs.(1)
Pennsylvania
• 244,977: Total Marcellus Shale related Employment. (2)
• Avg. Salary $89,000, approximately $40,800 more than average wages(2)
• 500 Employees; Directly support about 5,000 total through subcontractors
• Range has consistently invested about $1 Billion dollars a year
1. IHS – 9/13 2. PA Dept. of Labor & Industry
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Taxes, Fees & Benefits
• $640 million in Impact fees over the last three years
• More than $2.1 Billion in other taxes since 2008
• Industry has spent more than $1 Billion on new roads & infrastructure - Range has spent $120 Million
8
Local Activity
9
Current Local Activity
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Who We Are
• Regional Operations for 30 years
• $15 Billion Market Cap
• 343,000,000 mcfe in 2013
• S&P 500
• NYSE: RRC
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About Range Resources
• 2004 – Pioneered and discovered the Marcellus Shale.
• 2007 – Introduced Marcellus Shale Horizontal Drilling technology
• 2008 – Began Operations in Cross Creek County Park
• 2009 – Drilled the industry’s first Utica/Point Pleasant horizontal well & Pioneered the Upper Devonian Shales with horizontal drilling.
• 2009 – Pioneered large-scale water recycling in shale gas development, first company to achieve 100% reuse levels.
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About Range Resources
• 2010 – First company to voluntarily disclose fracturing fluids; now a requirement
• 2010 – Completed Yute Well in Frazer Twp.
• 2011 – Implemented Closed-Loop Drilling technology
• 2012 – Initiated a Zero Vapor Protocol for wet gas and super rich areas in Marcellus Shale
• 2013 – Range's commercial fleet order of factory-engineered CNG vehicles is the largest single order for Chrysler and GM.
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Cross Creek County Park
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Our Operations - Permitting
25 PA Code CH. 16 (Water Quality Toxics Management Strategy)
25 PA Code CH. 78 (Oil and Gas Wells)
25 PA Code CH. 79 (Oil and Gas Conservation)
25 PA Code CH. 91 (General Provisions)
25 PA Code CH. 92 (National Pollutant Discharge Elimination System Permitting, Monitoring, and Compliance)
25 PA Code CH. 93 (Water Quality Standards)
25 PA Code CH. 94 (Municipal Waste load Management)
25 PA Code CH. 95 (Wastewater Treatment Requirements)
25 PA Code CH. 96 (Water Quality Standards Implementation)
25 PA Code CH. 102 (Erosion and Sediment Control)
25 PA Code CH. 105 (Dam Safety and Waterway Management)
25 PA Code CH. 106 (Floodplain Management Act)
25 PA Code CH. 110 (Water Resources Planning Act) 25 PA Code CH. 245 ( Administration of the Storage Tank and Spill Prevention Program)
25 PA Code CH. 287 (Residual Waste Management General Provisions)
25 PA Code CH. 299 (Storage and Transportation of Residual Waste)
58 PA Code Ch. 51 (Recreation Administrative Provisions)
67 PA Code CH. 189 (Hauling in Excess of Posted Weight Limit) 67 PA Code CH. 441 (Access To and Occupancy of Highways by Driveways and Local Roads)
Title 27 PA C.S. CH. 31 (Act 220) Water Resources Planning
Title 58 PA C.S. (Oil and Gas) (Act 13 of 2012)
Title 30 PA C.S. (Fish and Boat Code)
Allegheny County Health Department Rules and Regulations Article XXI, Air Pollution Control
Act of Nov. 27, 2013, P.L. 1149, No. 104 Cl. 35 (Boiler and Unfired Pressure Vessel Law) (Senate Bill 802)
Act of 1937, P.L. 1987, No.394 (Clean Streams Law)
Act of Nov. 26, 1978, P.L. 1375, No. 325 (Dam Safety and Encroachments Act)
Act of May. 13, 2011, P.L. 7, No. 2 (Coal and Gas Resource Coordination Act - Omnibus Amendments) CH. 11 PA Department of Labor and Industry (Employment of Minors)
CH. 13 PA Department of Labor and Industry (Propane and Liquefied Petroleum Gas)
Senate Bill 594
Draft Emergency Regulations (Act 9 of 2012)
Act 67 of PA Municipalities Planning Code
Act 68 of PA Municipalities Planning Code
PA Air Emissions Program
Pipeline Act (Act 127)
Coal and Gas Resource Coordination Act (Act 214)
The Oil and Gas Act (Act 223)
Oil and Gas Conservation Law (Act 359)
The Solids Waste Management Act
CH. 49 of PA Vehicle Code (Size, Weight, and Load)
PA One Call (Act 287) Pipeline Safety, Regulatory Certainty, and Job Creation Act of 2011
Clean Water Act
Oil Pollution Act
Safe Drinking Water Act
Resource Conservation and Recovery Act Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) Emergency Planning and Community Right-To-Know Act (EPCRA)
Clean Air Act
PA One Call (Act 287) Pipeline Safety, Regulatory Certainty, and Job Creation Act of 2011
Clean Water Act
Oil Pollution Act
Safe Drinking Water Act
Resource Conservation and Recovery Act Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) Emergency Planning and Community Right-To-Know Act (EPCRA)
Clean Air Act
15
Some Items Covered By Permitting
• Water Management
• Wellbore Construction
• Erosion and Sedimentation Control
• Location Construction
• Road Use
• Waste Management
• Emergency Response Plan
• Preparedness, Prevention and Contingency Plan by County
• Spill Prevention Control and Countermeasures
• Air Quality
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Drilling
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Protecting the Groundwater
“Arkansas, Pennsylvania Ohio, and Texas each of these states have enacted regulations to advance best practices for well integrity.” - Environmental Defense Fund
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Drilling the Horizontal
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Completions
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Completions
• Over 6,000 feet below our feet
• Sand props open paper-thin fractures
• Monitored and controlled from surface
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Additives 0.24%
Sand 4.76%
Friction Reducer
Bacteria Nutritional Supplement
Naturally Occurring Bacteria Culture
Scale Inhibitor
HCL Acid
Water 95%
Fracturing Fluid
22
Production
Bakerstown Road Location - Frazer Twp. Less than 1 mile from Deer Lakes Park
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Local Activity
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Deer Lakes Lease Plans
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Deer Lakes Lease Plans
26
Surface Water Runoff
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April 23, 2014
Peter Miller
Water Resources Manager Southern Marcellus Shale Division
Water Management, northeast
Allegheny County
28
Water Management- Sourcing
Recycled 29%
Municipal 46%
Surface 25%
100% recycle &
reuse
29
Water Management– Fresh Water Sourcing
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Water Management– Fresh Water Storage
31
Water Management– Temporary Water Lines
32
Temporary Water Lines Monitored Daily
33
Water Management – Recycle & Reuse
December 22, 2011
Safety and Environmental Considerations
April 23, 2014
35
Safety and Environmental Protection
Core Value
• An effective Safety Culture is part of the business fabric
• Led by Senior Management
• Implemented and supervised by managers
• Followed and enforced by all hands and contractors
• Accountability and responsibility at all levels
36
A Safe Workforce
• “Safety Conscious” Workforce through:
• Training Experience Supervision
• Range personnel manage programs and processes
• Inspections avert incidents and correct discrepancies
• Company-wide “Stop Work” authority
• Contractor Management sets standards and audits compliance
38
A Safe Workforce
“Safety Conscious” Workforce through:
Training Experience Supervision
Range personnel manage programs and processes
Inspections avert incidents and correct discrepancies
Company-wide “Stop Work” authority
Contractor Management sets standards and audits
compliance
39
A Safe Work Site
40
A Safe Work Site
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A Safe Work Site
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A Safe Work Site
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A Safe Work Site
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A Safe Work Site
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A Safe Work Site
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A Safe Work Site
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A Safe Work Site
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A Safe Work Site
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A Safe Work Site
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A Safe Work Site
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A Safe Work Site
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Safe Work Site
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Safe Work Site
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A Safe Work Site
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A Safe Work Site
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A Safe Work Site
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A Safe Work Site
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A Safe Work Site
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Security
60
Security
61
Incident Management
Drilling Manager
Minh Nguyen
817-217-7650
OR
VP Drilling
Don Robinson
469-450-2281
SE
RIO
US
IN
CID
EN
TM
INO
R IN
CID
EN
T
DRILLING VP
NOTIFIES
VP SMSD
John Applegath
724-678-7054
AND
As Req’d
Well Control
Contractor 1-800-256-9688
(Boots-Coots)
OR
1-281-784-4700
(WWCI)
MA
JO
R IN
CID
EN
T
MIN
OR
INC
IDE
NT
Dir EHS Opns
Steve Johnson
412-420-7253
OR
EHS Opns Mgr
Mike Arch 724-705-4246
THEY NOTIFY
VP EHS
Ralph Tijerina
724-954-5769
VP EHS
NOTIFIES AS
REQUIRED
DEP and/or PEMA
Regulatory
Compliance Mgr
Craig Wyda
724-825-6493
Dir, Public Affairs
Matt Pitzarella
724-678-5138
Sr. Mgmt.
Ray Walker
817-939-4811
Drilling Site Supervisor
NOTIFIES BOTH
Completions
Site Supervisor
NOTIFIES BOTH
Production
Site Supervisor
NOTIFIES BOTH
Fac Construct Site Supervisor
NOTIFIES BOTH
OPNS MGR
NOTIFIES
Opns Director
Dennis Degner
412-926-4730
EHS Tech
Andrew Mihalcin
724-579-9966
OR
EHS Opns Mgr
Thomas Stewart
724-825-9772
THEY NOTIFY
Dir, EHS Opns
Steve Johnson
412-420-7253
HE NOTIFIES
VP EHS
Ralph Tijerina
724-954-5769
DIR OPNS
NOTIFIES
VP SMSD
John Applegath
724-678-7054
AND
As Req’d
VP EHS
NOTIFIES AS
REQUIRED
DEP and/or PEMA
Regulatory
Compliance Mgr
Craig Wyda
724-825-6493
Dir, Public Affairs
Matt Pitzarella
724-678-5138
Sr. Mgmt.
Ray Walker
817-939-4811
DISTRICT
MANAGER
NOTIFIES
Opns Director
Dennis Degner
412-926-4730
DIR OPNS
NOTIFIES
VP SMSD
John Applegath
724-678-7054
EHS Tech
Chris McAneny
724-244-3348
OR
EHS Opns Mgr
Thomas Stewart
724-825-9772
THEY NOTIFY
Dir, EHS Opns
Steve Johnson
412-420-7253
VP EHS
NOTIFIES AS
REQUIRED
DEP and/or PEMA
Regulatory
Compliance Mgr
Craig Wyda
724-825-6493
Dir, Public Affairs
Matt Pitzarella
724-678-5138
Sr. Mgmt.
Ray Walker
817-939-4811
HE NOTIFIES
VP EHS
Ralph Tijerina
724-954-5769
DIR OPNS
NOTIFIES
VP SMSD
John Applegath
724-678-7054
Construction Sup
Guy Marsteller
724-858-8628
OR
Instrumentation
Supervisor
Robert Newton
724-825-1840
OR
Electrical Sup
Ed Dermont
724-579-4324
SUPERVISOR
NOTIFIES
Fac Construct Mgr
Mike McLaughlin
330-904-8720
OR
Facilities
Engineering Mgr
Paul Deakin
724-809-1602
MANAGERS
NOTIFY
Opns Director*Dennis Degner
412-926-4730
Production
Supervisors
Dean Shober
724-884-3592
OR
Gary McVicker
330-697-0997
OR
Area
Measurement
Supervisor
Dave Cloninger
724-579-4609
SUPERVISORS
NOTIFY
Dist Manager*Ryan Healy
724-678-4224
EHS Tech
Dan Waters
724-531-3040
OR
EHS Tech Chris
McAneny
724-244-3348
THEY NOTIFY
EHS Opns Mgr
Thomas Stewart
724-825-9772
OR
Dir, EHS Opns
Steve Johnson
412-420-7253
THEY NOTIFY
VP EHS
Ralph Tijerina
724-954-5769
VP EHS
NOTIFIES AS
REQUIRED
Regulatory
Compliance Mgr
Craig Wyda
724-825-6493
Dir, Public Affairs
Matt Pitzarella
724-678-5138
Sr. Mgmt.
Ray Walker
817-939-4811
Robert Foulk
724-914-3757
AND
Jason Miller
724-825-8932
THEY NOTIFY
Operations Mgr.
Shawn Hodges
814-720-1410
SMSD Incident Notification Chain (Canonsburg) (Jan ‘14) ( * Indicates Change from previous update.)
SE
RIO
US
INC
IDE
NT
Agency Contacts
DEP Hotline—800-541-2050; Nat’l Resp Ctr—800-424-8802
OSHA Hotline—800-321-6742; PEMA—717-651-2001;
Fish/Boat Commission—814-445-8974
HAZMAT Contractors
Weavertown: 1-800-746-4850; EAP Industries: 888-294-5227
ECS&R: 877-902-2452; Alex Paris: 724-947-2235
MARKWEST
Brian Rayburn: 231-492-4763
Greg Sullivan: 740-314-9571
MA
JO
R IN
CID
EN
T
Well Control
Contractor 1-800-256-9688
(Boots-Coots)
OR
1-281-784-4700
(WWCI)
Kevin Carter
505-331-1599
OR
Mike Merry
580-571-7956
OR
Kenneth Wigington
940-229-1537
OR
Jesse Standifer
337-208-2056
OR
Rick Babbitt
814-671-7892
THEY NOTIFY
Sr. EHS Tech
Mark Kiel
724-986-5778
OR
EHS Opns Mgr
Thomas Stewart
724-825-9772
OR
E&S Coordinator
Jeremy Matinko
724-809-6583
THEY NOTIFY
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Emergency Response Planning
Emergency Response Plans
• Preparedness Prevention Contingency Plan (PPC)
• Spill Prevention Control and Countermeasures Plan (SPCC)
• Unconventional Site Emergency Response Plan
Governing Regulators
• Pennsylvania DEP
• Environmental Protection Agency
• Pennsylvania DEP
63
Individual Site Emergency Response Plan
64
First Responder Training
65
First Responder Training
66
Performance
• Range surpassed the milestone of more than one million man hours worked in our Marcellus Shale division with no OSHA reportable incidents and has since maintained a standard well above industry averages.
Industry Avg. For Oil & Gas Extraction per 100
Workers* Range Resources**
Days Away, Restrictions & Transfers (DART)
0.5 0.00
Total Recordable Incidence Rate or Workplace Injuries (TRIR)
0.9 0.30
*Bureau of Labor Statistics,
2011
**Range Resources SMSD,
2013
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Performance
68
Performance
Operator Horizontal Wells Violations Incident Rate Range SMSD 485 80 0.16
CNX 218 52 0.24
CHEVRON 332 121 0.36
SWN 255 96 0.38
EQT 275 116 0.42
TLM 469 230 0.49
SWEPI 432 222 0.51
APC 340 176 0.52
CHK 698 404 0.58
EOG 147 86 0.59
WPX 142 100 0.70
SENECA 189 154 0.81
PGE 144 144 1.00
CARRIZO 99 110 1.11
XTO 172 201 1.17
EXCO 118 149 1.26
COG 282 373 1.32
CHIEF 150 316 2.11
Industry Avg:
0.76
Range SMSD:
0.16
PA Marcellus – Violations per Well spudded 2010-2013
69
Performance
0
100
200
300
400
500
600
700
-
0.5
1.0
1.5
2.0
2.5
3.0
3.5
Ran
ge S
MSD
CN
X
CH
EVR
ON
SWN
EQT
TLM
SWEP
I
AP
C
CH
K
EOG
WP
X
SEN
ECA
PG
E
CA
RR
IZO
XTO
EXC
O
CO
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CH
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Tota
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Vio
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inci
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Violatons per horiz well drilled
No. of horiz wells drilled
70
Safety and Environmental Protection
Summary
• At Range, Safety is a Core Value
• Effective Safety Culture that is led by example
• Work Sites are designed to be safe for employees, contractors, the public, and the environment
• Incidents are averted through close attention to detail and corrected to preclude reoccurrence
• Plans in place to respond to incidents