Range Resources Deer Lakes Park proposal

transcript

December 22, 2011

Allegheny County Council Meeting

April 23, 2014

Presentation Topics

• Big Picture

• Local Activity

• Who We Are

• Our Operations

• Deer Lakes Lease Plans

• Water Management

• Safety and Environment

• Lease Discussion

Marcellus Shale

Studies: Federal, State & Independent

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

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

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

Local Activity

Current Local Activity

Who We Are

• Regional Operations for 30 years

• $15 Billion Market Cap

• 343,000,000 mcfe in 2013

• S&P 500

• NYSE: RRC

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.

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.

Cross Creek County Park

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

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

Drilling

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

Drilling the Horizontal

Completions

• Over 6,000 feet below our feet

• Sand props open paper-thin fractures

• Monitored and controlled from surface

Additives 0.24%

Sand 4.76%

Friction Reducer

Bacteria Nutritional Supplement

Naturally Occurring Bacteria Culture

Scale Inhibitor

HCL Acid

Water 95%

Fracturing Fluid

Production

Bakerstown Road Location - Frazer Twp. Less than 1 mile from Deer Lakes Park

Local Activity

Deer Lakes Lease Plans

Surface Water Runoff

April 23, 2014

Peter Miller

Water Resources Manager Southern Marcellus Shale Division

Water Management, northeast

Allegheny County

Water Management- Sourcing

Recycled 29%

Municipal 46%

Surface 25%

100% recycle &

Water Management– Fresh Water Sourcing

Water Management– Fresh Water Storage

Water Management– Temporary Water Lines

Temporary Water Lines Monitored Daily

Water Management – Recycle & Reuse

December 22, 2011

Safety and Environmental Considerations

April 23, 2014

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

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

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

A Safe Work Site

Safe Work Site

A Safe Work Site

Security

Incident Management

Drilling Manager

Minh Nguyen

817-217-7650

VP Drilling

Don Robinson

469-450-2281

DRILLING VP

NOTIFIES

VP SMSD

John Applegath

724-678-7054

As Req’d

Well Control

Contractor 1-800-256-9688

(Boots-Coots)

1-281-784-4700

(WWCI)

Dir EHS Opns

Steve Johnson

412-420-7253

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

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

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

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

Instrumentation

Supervisor

Robert Newton

724-825-1840

Electrical Sup

Ed Dermont

724-579-4324

SUPERVISOR

NOTIFIES

Fac Construct Mgr

Mike McLaughlin

330-904-8720

Facilities

Engineering Mgr

Paul Deakin

724-809-1602

MANAGERS

NOTIFY

Opns Director*Dennis Degner

412-926-4730

Production

Supervisors

Dean Shober

724-884-3592

Gary McVicker

330-697-0997

Measurement

Supervisor

Dave Cloninger

724-579-4609

SUPERVISORS

NOTIFY

Dist Manager*Ryan Healy

724-678-4224

EHS Tech

Dan Waters

724-531-3040

EHS Tech Chris

McAneny

724-244-3348

THEY NOTIFY

EHS Opns Mgr

Thomas Stewart

724-825-9772

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

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.)

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

Well Control

Contractor 1-800-256-9688

(Boots-Coots)

1-281-784-4700

(WWCI)

Kevin Carter

505-331-1599

Mike Merry

580-571-7956

Kenneth Wigington

940-229-1537

Jesse Standifer

337-208-2056

Rick Babbitt

814-671-7892

THEY NOTIFY

Sr. EHS Tech

Mark Kiel

724-986-5778

EHS Opns Mgr

Thomas Stewart

724-825-9772

E&S Coordinator

Jeremy Matinko

724-809-6583

THEY NOTIFY

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

Individual Site Emergency Response Plan

First Responder Training

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,

**Range Resources SMSD,

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:

Range SMSD:

PA Marcellus – Violations per Well spudded 2010-2013

Performance

Violatons per horiz well drilled

No. of horiz wells drilled

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

Range Resources Deer Lakes Park proposal

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