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ScottKell

OhioDepartmentofNaturalResourcesOil

and

Gas

Resources

Management

April10,2013

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UticaShale(Equivalent)

Ontario,Canada

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UticaPointPleasantPermits: 581

Drilledto

TD:

281

Completed/Producing: 85(AsofMarch23,2013)

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PublicMeetinginAthens,Ohio, Nov.29,2012

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Statute

AmendmentsSB165(Effective:2010)

SB315(Effective:2012)

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Agencyfunding

Wellboreconstruction/Integrity

Straygas

Hydraulicfracturing

Waterwithdrawal/Usage

Pad/Impoundmentconstruction

Wastemanagement/Undergroundinjection

Enforcementauthority

Andmore

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0

10

20

30

40

50

60

70

80

90

100

110

120

130

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2012*

Central

TotalFieldEnforcement

Inspectors

*2012Doesnotinclude1,000hourIntermittentemployees,Interns,AppointedCommissionMembers

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AbandonedSitesAbandonedSites

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WellboreIntegrityStandards

Isolationofflowzones

Cementdesignstandards

Annularmonitoring

Annularpressurereliefvalves

Diagnostic

tests

and

logs

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ImprovingResponse

and

MitigationCapabilities

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In1965,

few

injectionwellsfordisposal

Most

disposal

in

evaporationpits

Leadtogroundwatercontamination

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OhioClassIIInjectionWells

(2012)

Permitted: 212

Operating: 181

Applications:29

13,972,000barrelsinjected

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Divisioninspectors

conduct

unannouncedinspectionsevery11to12weeks

Check

injection

and

annulus

pressuresforintegrity

Checkfacilityandpipelines

for

leaks

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ClassIIWellSurfaceFacility

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StormwaterBMP

Predisturbancesiteevaluation

24hour

notice

Newrules

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RoadMaintenanceAgreements

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Predrill

sampling

Insurancepremiumincreases

Drilling

fluid

chemical

disclosureCivilpenaltyenhancements

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Secondarycontainmentrules

Centralizedimpoundment

construction

standardrules

Temporaryproducedwaterstoragefacility

permitand

construction

standards

Padconstructionstandards

Datamanagementsystem(RBDMS)upgrades

Websiteuprades

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Questions?

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Phase4:Production/Storage

Pre1985BrineStoragePit

CurrentOil/BrineStorageTanks