My World

3

Environmentally Friendly Drilling Systems Program

Awarded

October 5, 2009

Thank you EFD Sponsors!

Under our backyard

Opposition to O&G Activities

EFD PrinciplesWhat gets measured, gets done.

What gets identified, gets dealt with.

What gets expected, gets respected.

Program Highlights

Develop a risk-based selection of Environmentally Friendly Drilling Systems methodology.

Develop a website for the Haynesville Shale that describes the natural gas resources available and their development and provides information about the state and federal regulatory requirements that developers must follow.

• Develop understanding of the environmental and social impacts that gas development in the Uinta Basin.

• Identify opportunities and barriers to expanded use of EFD approaches in the Uinta Basin.

Program Highlights

Initiate an environmentally friendly E&P systems program for the Marcellus Shale Basin.

• Support the Disappearing Roads Competition

• Develop rollout road concept

Identify alternatives to reduce the footprint including offsite operations and innovative fracturing technologies such as a novel process involving: minimal pumping equipment, low volumes of frac fluid and materials that are environmentally green and non-damaging.

Main Components – Rollout Road• Conformable

• Hinged board segments

Program Highlights

Develop a free-access, searchable, database and supporting website for best management practices (BMPs).

www.oilandgasbmps.org

Perform a prototype test of a small footprint drilling rig to investigate how environmental tradeoffs are reduced.

Develop guidelines concerning the measurement of oxides of nitrogen (NOx) for a drilling site and work with operating company personnel to plan an investigation at a location.

Our big challenge: Core Values

• Companies successfully made safety a core value.

• Accomplished by leadership, documenting, measuring and training.

• To achieve the same success in environmental performance, will require leaders to also make this a core value.

Making Environmental Stewardshipa Core Value

Tradeoffs

HumanCulture

All LivingSystems

Scorecard Concepts

Energy ProductionOil and Gas Operations

Upstream Downstream

Field Development

Fiel

d O

pera

tions

Expl

orati

on

Dril

ling

Com

pleti

ons

Proc

essi

ng

Refin

ing

Tran

spor

tatio

n

Dis

trib

ution

Focus Scorecard on Operation

Concept – USGBCLEED Program

Stakeholders are all those who are affected, interested in or have the capacity to influence a project.

Stakeholder Engagement is Important!

Source:Connor Development Services Ltd

Tradeoff Scorecard Development

What to Remember:

www.efdsystems.com

Questions for You

•Does your organization have a definition of environmental stewardship?

•Where are, with reference to this definition, the gaps?

•What are you doing, at the strategic level of the organization, to bridge that gap?

It’s not so hard to be green

Questions?

Thank you