Examining How WPX Energy Has 

Successfully Located Water Sources and 

Cost Effectively Attained Freshwater for 

Fracing 

March 28th, 2012 

Heath Auman 

Water Specialist 

WPX Energy 

Canonsburg Shale Gas Conference l March 28 1" th, 2012
Overview 

Water Sourcing 

 Well Pad Proximity to Water Sources 

 Headwaters vs. Large Rivers and Streams 

 Lakes and Ponds 

 Water Source Selection Criteria 

Overcoming Topographic, Geographic and Regulatory Challenges 

 Eastern PA vs. Western PA Terrain 

 Well Pad Density 

 Permitting Time, Policies and Regulations 

Increasing Time Efficiency and Reducing Costs 

 Reduce Trucking Times 

 Increase Truck Load Efficiency 

 Trucking vs. Pipeline 

 WPX Energy Pipeline Examples 

Alternative Water Sources 

 Sewage Treatment Plants 

 Industrial Discharges 

 Mine Pools 

2"

Canonsburg Shale Gas Conference l March 28th, 2012
Water Sourcing 

Well Pad Proximity to Water Sources 

 Well Pads are Typically Located on Upland Areas 

 Smaller Streams 

 Larger Streams are Located in Valleys 

 Long Trucking Times and Pipelines 

Headwaters and Large Rivers and Streams 

 Headwaters 

 Low Available Withdrawal Volume 

 Environmentally Sensitive 

 Usually Close to Well Pads 

 Difficult Permitting Process 

 Major Rivers Provide Ample Withdrawal Volume 

Lakes and Large Ponds 

 Ideal Source of Water if Regulated Discharge 

 Permitting Process 

3"

Canonsburg Shale Gas Conference l March 28th, 2012
Water Sourcing (Continued) 

Water Source Selection Criteria ± Proximity to Well Pads 

 Determine Your Needs

 Well, Well Pad and Unit Count 

 One Unit Requires 38 MM gallons 

 (TXLYDOHQWWR ́RI5DLQIDOO2YHU8QLW

 Completions Schedule 

 Select a Withdrawal Amount That Is Not Excessive 

 Preliminary Desktop Feasibility Study

 Identify Conflicts and Permitting Requirements Upfront 

 Preliminary Landowner Approval

 Reduce/Eliminate Surprises 

 Field Investigation 

 Submit Permits 

 Final Landowner Approval 

 Wait 

 Hope Pad/ROW Alignments Have not Shifted 

 Procure Materials 

 Keep Landowners Informed 

 Construct

 Operational

Each Source is Unique 

4"

Canonsburg Shale Gas Conference l March 28th, 2012
Water Sourcing (Continued) 

Determining a Suitable Withdrawal Amount 

 Each Source is Unique 

 10% Q7-10 vs. Passby 

 Q7-10 is no Longer Available 

 Passby 

 No Maximum Limit 

 Review Gage Data and Rating Curve 

 Install Gage 

 New Policy? 

 The Nature Conservancy 

 Unpredictable Passby Conditions 

Schedule Fracs Around Passby Conditions When Possible 

 Must Have an Uninterruptible Source 

 June Through September are Typically Dry 

 Impoundments Help 

 Additional Impacts and Cost 

5"

Canonsburg Shale Gas Conference l March 28th, 2012
Overcoming Geographic, Topographic and 

Regulatory Challenges 

Eastern PA vs. Western PA Terrain 

 Steep Slopes vs. Plateau 

 Distance to Well Pads 

 Distance Between Well Pads 

 Difficult Accessibility 

 Floodplain and Floodway 

 Power 

 May Have to Pipe to Another Property to Truck 

 Railroad Tracks 

Well Pad Density 

 Increases Efficiency 

 Fewer Water Sources Required 

 Shorter Trucking Routes 

 Increased Probability of Competent Roads

6"

Canonsburg Shale Gas Conference l March 28th, 2012
Overcoming Geographic, Topographic and 

Regulatory Challenges (Continued) 

Permitting, Policies and Regulations 

 Long Wait Times 

 Well Pads and ROW Can Shift 

 Joint Permit 

 Changing Policies 

 Moving Target 

 Stay on Your Toes 

 Strict Regulations 

 SRBC 10 Meter Buffer 

 Results in Greater Impacts when ROW Alignments Shift 

 Water Management Plan and SRBC Approval Overlap 

 Wait Time Results in Missing Fracs 

 Name Changes 

 Wait Time of Greater Than 3 Months 

7"

Canonsburg Shale Gas Conference l March 28th, 2012
Increasing Time Efficiency and Reducing 

Costs 

Reduce Trucking Times 

 Withdrawal Proximity to Well Pads 

 Reduce Travel Times and Distance 

 Reduce Road Repair and Replacement 

 Efficient Loading Area 

 Reduce Loading and Waiting Times 

 Dispatch Trucks Accordingly 

 Numerous Load Outs 

 Pumping Rate 

 Grading 

 Increase Truck Load Efficiency 

 HydroWatch 

 Well Pad Layout 

 Water Trucks Cannot Unload Efficiently 

 Idling Trucks Equal Wasted Money 

8"

Canonsburg Shale Gas Conference l March 28th, 2012
Increasing Time Efficiency and Reducing 

Costs (Continued) 

9"

Canonsburg Shale Gas Conference l March 28th, 2012

y"="0.001x"+"1E214

0

10

20

30

40

50

1,000 6,000 11,000 16,000 21,000 26,000 31,000 36,000 41,000 46,000 51,000

Water""Source"Distance"(mi)

Equivalent"Miles"Per"Road"Lane

Water"Source"Distance"vs."Road"Lane"Miles

One"mile"results"in"1,028"miles"per"road"lane
Increasing Time Efficiency and Reducing 

Costs (Continued) 

10

Canonsburg Shale Gas Conference l March 28th, 2012

1,077

1,067

1,057

1,047

1,038

1,028

1,019

1,010

1,001

y"="29.5285x"+"2076.8

990

1,000

1,010

1,020

1,030

1,040

1,050

1,060

1,070

1,080

1,090

104 105 106 107 108 109 110 111 112 113 114

T

r

u

c

k

L

o

a

d

s

p

e

r

W

e

l

l

Bbls"per"Truck"Load

Number"of"Truck"Loads"vs."Truck"Load"Efficiency

Average"Well"Volume ="113,095"bbls

1"bbl"load"reduction"results"in"$2,000"increased"cost
Increasing Time Efficiency and Reducing 

Costs (Continued) 

Trucking vs. Pipeline 

 Withdrawal Proximity to Well Pads and Density 

 Foreseeable Operational Plans 

 Well Count 

 Proximity to Gas Pipeline Stream/River Crossings 

 Long Permitting Times Results in Alignment Shifts 

 Strict Regulatory Requirements 

 Increase Cost and Disturbance 

 Upfront Capital Costs 

 Selecting the Right Material for Your Needs 

 Mixture of Materials 

 Realize Your Trucking Costs 

 Include Road Repair and Replacement 

 Probability of Accidents 

 Environmental Impacts Associated with Diesel Emissions 

 Savings of greater than $50 MM Over Lifespan of Operations and Pipeline 

11

Canonsburg Shale Gas Conference l March 28th, 2012
Increasing Time Efficiency and Reducing 

Costs (Continued) 

WPX Energy Pipeline Examples (currently on hold until full development mode) 

Susquehanna River - 2 Water System 

 Approximately 150,000 feet in Length 

 Capital Cost of $29 MM 

 Supplies 145 Wells

 Savings of $20 MM vs. Trucking 

Snake Creek - 2 Water System 

 Approximately 65,000 feet in Length 

 Capital Cost of $12 MM 

 Supplies 100 Wells

 Savings of $15 MM vs. Trucking 

 Intake is Close to Gas Pipeline Right-of-Way

Donegal Lake Water System 

 Approximately 8,000 feet in Length 

 Supplies 8 Wells and an Impoundment 

 Not Expanded due to High Trucking Efficiency 

12

Canonsburg Shale Gas Conference l March 28th, 2012
Alternative Water Sources ± 

Beneficial Re-use of Degraded Water 

Sewage Treatment Plants 

 Reduced BOD, Nitrate and Phosphorus Loading to Local Water Bodies 

 Incompatibility Issues 

 Low Volume and Passby Restrictions 

 Permitting Process 

Industrial Discharges 

 Mostly Located in Populated Areas 

 Reduces Trucking Efficiency 

Mine Pools 

 Primarily Located in Central and Western PA 

 Review Drilling Logs 

 Liability

AMD Impacted Streams 

 Reduces Passby Percent 

 Incompatibility Issues 

13

Canonsburg Shale Gas Conference l March 28th, 2012
Summary 

Water Sourcing 

 Types 

 Criteria 

Topographic, Geographic and Regulatory Challenges 

 Steep Terrain 

 Well Pad Density 

 Changing Policies and Regulations 

Increased Efficiency 

 Design 

 Trucking vs. Piping 

Alternate Water Sources 

14

Canonsburg Shale Gas Conference l March 28th, 2012