# CONSOL&Energy

# About&CONSOL&Energy

 Company&Founded&in& 1860;&began&opera=ons& in&1864&
 Market&Cap&=&$2.7&billion&

(as&of&3/4/2016)&
 2015&Total&Revenue&=&

$3.1&billion&
 Member&–&S&P&Midcap&

400&Index&  One&of&the&largest&

independent&natural&gas& E&P&companies.&& Opera=ons¢ered&in& the&major&shale& forma=ons&located&in&the& Appalachian&basin&
 5.6&tcf&natural&gas&

reserves&  Three&premier&mining&

complexes&with&access&to& seaborne&markets&via& whollyZowned&Bal=more& Marine&Terminal&

# CONSOL&Energy’s&Transforma=ve&Journey

............................................................................................................ 

## 1864& 2005& 2013& 2014/15&

1999& 2010&

CONSOL&Energy&begins& trading&on&the&New&York& Stock&Exchange&under&CNX& CONSOL&Energy&begins& transforma>on&to&a&diversified& energy&producer& CNX&Gas&corporate&subsidiary& is&formed&as&a&standCalone,& publiclyCtraded&natural&gas& subsidiary&of&CONSOL&Energy& CONSOL&Energy&acquires& Dominion&Resources&natural&gas& explora>on&and&produc>on& assets,&tripling&CONSOL’s& Marcellus&Shale&acreage&posi>on&& CONSOL&Energy&acquires&all& outstanding&CNX&Gas&shares& CONSOL&Energy& announces&sale&of&five& thermal&coal&mines& CONE&Midstream&Partners,& formed&by&CONSOL&Energy& and&Noble&Energy,&begins& trading&on&the&NYSE&under& CNNX& The&Journey& Begins&

CNX&Coal&Resources&LP& begins&trading&on&NYSE& under&CNXC&

# CONSOL&Energy&Core&Values

# CONSOL’s&Unique&Perspec=ve&

CONSOL&Energy&is&the&only&company&that&operates&across&& all&of&these&different&horizons.&& 8,000&Q& - 8,000 ft Upper Devonian Sands - – 1,750 – 5,500 ft

Utica Shale – 11,500 ft Rhinestreet Shale - – 7,400 – 7,800 ft Marcellus Shale – 8,000 ft Surface Sewickley Coal Seam – 900 ft Pittsburgh Coal Seam – 1,000 ft Freeport Coal Seam – 1,650 ft

# Agenda
o CONSOL&Energy& 

#  Water&Management& 

# o Wastewater& 

# o Reuse& 

# o Water&Treatment& 

# o Disposal& 

# o Infrastructure& 

# o Operator&Partnering&&

# Water&Management

PennState&Extension&:&Water’s&Journey&Through&the&Shale&Gas&Drilling&and&Produc=on&Processes&in&the&MidZAtlan=c&Region&&

# Decrease&in&PA&Shale&Ac=vity&&
January&2015&vs.&January&2016&

• Gas&Produc>on&

• Increased&by&10%&
• Minimal&wells&coming& online&

• Produced&Water&to&injec>on&

• Increased&by&72%&
• Limited&reuse&&

0& 10000& 20000& 30000& 40000& 50000& 60000& 70000&

JanuaryC15& JanuaryC16& 0& 50& 100& 150& 200& 250& 300& 350& 400& 450&Waste&Water&Produc=on&(&,000's&bbl.)&Gas&Produc=on&(MMCF)& 

### Pennsylvania&Monthly&Well&Data& Gas&(MMCF)& Waste&Water&(&,000s&bbl.)&

PA&DEP&Oil&&&Gas&Repor>ng&Website&

# Focused&Business&Group

• CSSD&standards&focus&on&key&areas&

• Maximizing&Water&Recycling&
• Development&of&Ground&Water&protec>on&Plan&
• Closed&Loop&Drilling&
• Well&Casing&Design&
• Groundwater&Monitoring&
• Wastewater&Disposal&
• Impoundment&Integrity&
• Reduced&Toxicity&Fracturing&Fluid&



### • CONVEY&Water&

• Formed&January&2016&
• CNX&core&customer&

# Key&Drivers&for&CONVEY&Water

Proximity Quality

Quan>ty Appe>te

# Water&Chemistry

• Barium&and&Sulfates&&
• Produced&water&contains&barium&
• Sulfates&must&be&<&100&ppm&
• Barium&sulfate&inhibit&well&produc>on&

• Marcellus&Shale&
• 100%&Reuse&achieved&
• Marcellus&to&Marcellus&only&
• Switch&from&anionic&to&ca>onic&

• U>ca&Shale&
• 80%&reuse&achieved&
• U>ca&to&U>ca&only&
• Ca>onic&FR&only&

• Expected&to&begin&using&Marcellus&produced&fluid&in&U>ca&comple>ons& hhp://blogs.bakerhughes.com/reservoir/2010/11/15/waterCissuesCforCpetroleumCengineersC introduc>on/&

# Agenda
o CONSOL&Energy& 

# o Water&Management& 

#  Wastewater& 

##  Reuse& 

##  Water&Treatment& 

##  Disposal& 

# o Infrastructure& 

# o Operator&Partnering&&

# Produced&Water&and&Flowback

• Flowback&Process& 

## • Associated&with&process¬&water&type& 

## • Process&allows&well&to&flow&back&fluids,&sand,& and&solids& 

## • Prior&to&the&well&flowing&hydrocarbons.& 

## • All&flowback&water&is&produced&water&



## • Produced&Water& 

## • All&water&that&is&returned&to&the&surface& through&a&well&borehole& 

## • Composed&of&frac&water&as&well&as&natural& forma>on&water& 

## • Follows&similar&produc>on&curve&as&gas& 

## • Water&quality&and&quan>ty&vary&significantly& by&play&

# Water&Reuse

• Marcellus&water&is&able&to&be&used&for&reuse& 

## • Low&TSS&aQer&ini>al&flowback&(~160&ppm)& 

## • Centralized&impoundment&storage& 

## • AST&storage& 

## • Piped&or&trucked&to&pads&



## • Benefits& 

## • Reduc>on&in&volume&of&wastewater& 

## • Less&freshwater&needed&for&fracturing& 

## • Reduced&truck&traffic&& 

## • Helps&reduce&the&cost&of&operators&



## • 100%&Produced&Water&Fracs&

# Produced&Water&Treatment

• Criteri a& 1. Safety& 2. Environmentally&compliant& 3. Economical&



### • Technologies&
• Sock&Filtra>on&
• Sehling&ponds&
• Thermal&Dis>lla>on&
• Reverse&Osmosis& • Chemical/Electro&Precipita>on&



### • First&Mover& Disadvantage&
• Expensive&pilot&studies&
• Early&majority&benefit&most&
• Lihle&incen>ve&
• Marketplace&partnerships&

# Disposal

hhp://oilandgas.ohiodnr.gov/industry/undergroundCinjec>onCcontrol&

###  Commissioned&facility&on&June&18 th& 

###  Copper&Ridge&forma=on&(10,491’&in&depth)& 

# CNX&Barnesville&UIC&Well

# • Drive&Times

• SWPA&Area: &1&hour&25&min.&

• CPA&Area: 2&hours&30&min.&

• WV&office&to&UIC: &2&hours&40&min.&

• UIC&Well&Address:&&&& 62785&Walker&Rd.&&&&& Barnesville,&Ohio&20636&&&&& Belmont&Co.&

• Main&Telephone:&& 740C425C9180& CPA&

SWPA& UIC&Well&

# Agenda
o CONSOL&Energy& 

# o Water&Management& 

# o Wastewater& 

# o Reuse& 

# o Water&Treatment& 

# o Disposal& 

#  Infrastructure& 

# o Operator&Partnering&&

# Water&Infrastructure Infrastructure&Design:&Examining&how&the&layout&of&the&facility& was&designed&to&op>mize&proximity&and&transport&costs&

# Water&Infrastructure

### Copyrighted page(s) removed. Copyrighted material is not available in Regulations.gov since it may not be reproduced without consent of the copyright holder. Removed pages can be viewed at the USEPA Docket Center, Public Reading Room. Address: 1301 Constitution Ave, NW Room 3334 Washington, DC 20004 Telephone: 202-566-1744 Email: docket-customerservice@epa.gov

# Infrastructure

Monitoring&of&water&assets&& with&technology&to&reduce&& incident&exposure&and&& increase&system&performance&

# Agenda
o CONSOL&Energy& 

# o Water&Management& 

# o Wastewater& 

# o Reuse& 

# o Water&Treatment& 

# o Disposal& 

# o Infrastructure& 

#  Operator&Partnering&&

# Operator&Partnering&

• Sharing&Produced&Water& 

## • Sharing&agreements&in&place& 

## • Provide&produced&water&to&reduce&disposal& 

## • Accept&produced&water&to&reduce&fresh&water&needs& 

## • Assist&other&operators&to&help&manage&their&tank&and&CI&levels&



## • Asset&Collabora=on&(pipeline&and&storage)& 

## • Reduce&truck&traffic& 

## • Reduces&capital& 

## • Increases&storage&capacity& 

## • Grow&industry&network&



# • Partnerships&will&drive&down&environmental&impact&and&costs& hhp://www.hallaton.com/applica>ons/oilCandC gas/&