New	Ideas	for	an	age-old	problem: 

### How	do	we	manage	water	use,	reuse,	recycling &	disposal	when	we	don’t	have	any	money? Eddy	Biehl,	CEO Stonebridge	Opera>ng	Co.,	LLC

### My Background

• 4 th Generation Oilman
• Almost 5 th -but for that Panic & Oil Crash of 1873
• Harvard, Class of 1978
• BA in Economic Geology
• Over 35-year Career Progression
• Geological & Engineering Consultants to ‘86 bust • Workout Specialists through the rest of the ‘80’s
• Then producer, workout candidate, shale service company & producer again

# Oil	&	Gas	Industry	Roots

Great-	Great-	Uncle Moore’s	Junc>on	-	1891 Great	Uncles Midway	Sunset	-	1910 Grandfather Newell’s	Run	–	1928 Drilling Comple>on Produc>on

## In	Water	Management, Timing	is	everything:

• I	never	have	enough	of	the	water at	the	quality	I	need	it	but	I	always have	too	much	of	every	variety when	I	don’t

### Water:	How	do	we	store	it	un>l	we	need	it?

• In-ground	impoundments-a	tricky	issue	and	on	the way	out	for	all	but	fresh	water • Tanks-geYng	cheaper	but	s>ll	can	run	up	quite	a	tab in	a	“cashless	environment”

• Coordinated	Use	is	the	key

– Con>nuous	but	reduced	pace	opera>ons	in-house

– Alterna>ve	uses	inside	the	company

– Shared	use	between	companiesIt	is	tough	in	a	cold	weather	environment- 

## Winterizing Water	Facili>es

• Heat	the	product

• Heat	the	plumbing

• Move	the	product

• Add	chemicals	to	lower	freezing	point 

### It	all	costs	$$$$$$$$$$$$$$$

# Induced	Seismicity: Proceed	With	Cau>on Induced	Seismicity,	“earthquakes	caused	by injec>on”,	is	one	of	the	new	hot	bu`on	issues	the an>-oil	ac>vists	are	using	to	restrict	development.

And	it	can	be	a	problem	in	the	Appalachian	Basin as	well	as	in	the	Mid-Con>nent	and	East	TexasOklahoma	&	NE	Texas	Show	up	on	the	Induced	Seismicity	Watch	ListEarthquake	Epicenters	in	Ohio	and	Border	Areas
Ohio	epicenters are	mostly located	away from	injec>on well	sites	but there	are	areas of	concern.To	date,	only	the	D&L injec>on	wells	in Mahoning	County	near Youngstown	have	been >ed	to	induced	seismicity though	other	areas	bear monitoring.

## It	has	always	been	about	the 

# Booms .... and	the 

# Busts

• From	Drake	to	the	Shale	Boom	&	Bust	it	is	a	brutally cyclical	business • The	key	is	recognizing	it	is	a	cycle	but	remembering	its unpredictability	as	to	exact	>ming • Each	cycle	has	its	unique	characteris>cs • But	they	all	have	one	thing	in	common: A	Boom	will	be	followed	by	a	Bust	followed	by	a	Boom

# Types	of	Oil	Booms

– Play	Driven

– Technology

– Price

– Poli>cal

– Macro-Economic

# Play	Driven	Booms

• Discovery	Driven

- Examples	are Spindletop on	the Texas	Gulf	Coast	&	the	original	Drake Well	at	Titusville	among	many	others



## • “Close-ology” -Everyone	wants	to	get	in	on	the boomer	well

# Technology	Driven	Booms

• Engineering	Advances

- Examples	are	the	introduc>on	of rotary	drilling	in	the	early	20 th Century



## • Geological	Advances -Seismic	in	all	its	evolu>ons	& revolu>ons

# Price	Driven	Booms

• Local	Factors

- Controls	on	interstate	NG	Prices	in the	mid-70’s	led	to	drilling	booms	in Texas	&	Ohio	for	“self-help”	gas



## • Global	Economy-Supply	shortages-real	or	perceivedcan	drive	up	oil	&	gas	prices

# Poli>cally	Driven	Booms

• Regional	Ac>ons -The	Arab	Oil	Embargo	in	1973	is	the	classic example 

### • Government	Ac>ons -The	NGPA	of	1978	set	the	MLP	for	NG which	resulted	in	ar>ficially	high	prices 

### • Wars	are	poli>cal	&	drive	demand

# Macro-Economic	Driven	Booms

• Recessions	&	Booms -The	recent	Asian	Demand	scenario


### • Monetary	Policy	&	the	like -Expansionary	policy	drives	commodity prices

# The	Horizontal	Shale	Boom We	had	elements	of	all	five	factors
• Resource	Plays	like	the	Shale	got	hot	& sprang	up	everywhere • Geology	&	engineering	unlocked	the resource	and	made	it	plen>ful	&	economic • Prices	hit	all	>me	highs • Post	9-11	Military	ac>ons	increased	demand • The	central	banks	printed	money	like	it	was going	out-of-style	post-2008	Crash So	where	do	we	go	from	here.....?????