# Quality Assurance Project Plan for the Coalbed Methane Detailed Study

Questionnaire

(Element A.1)

Prepared for:



## U.S. Environmental Protection Agency
Office of Science and Technology Engineering and Analysis Division

1200 Pennsylvania Avenue, NW Washington, DC 20460

Prepared by:



## PG Environmental, LLC
570 Herndon Parkway, Suite 500
Herndon, VA 20170

and



## Eastern Research Group, Inc.
14555 Avion Parkway, Suite 200 Chantilly, VA 20151-1102

EPA Contract No: EP-C-07-029 Work Assignment No. 2-01

January 27, 2010

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# Contents (Element A.2)

Contents ...................................................................................................................... ..... i

Tables ........................................................................................................................ ...... i Figures ....................................................................................................................... ..... ii Appendi ces .................................................................................................................... . ii Distribution (Elem ent A.3) ............................................................................................... iii

1.0 Introduction and Ba ckground .................................................................................. 1

2.0 Project Management Elements ............................................................................... 2

2.1 Project/Task Organization (Element A.4) ................................................................ 2 2.1.1 Project Management and Technical Staff ............................................... 2 2.1.2 Quality Assu rance St aff .......................................................................... 4

2.2 Problem Definition and Backg round (Element A.5) ................................................. 4

2.3 Project/Task Description (Element A.6) ................................................................... 5 2.3.1 Finalizing Deta iled Questi onnaire ........................................................... 6 2.3.2 Preparing Electronic Versio n of Detailed Questionnaire ......................... 6 2.3.3 Mailing and Tra cking Questi onnaires ..................................................... 6 2.3.4 Developing a Survey Dat abase and Data Dictionar y ............................. 6 2.3.5 Providing Surv ey Assist ance .................................................................. 6 2.3.6 Following Up on Incomplete Surveys ..................................................... 7 2.3.7 Coding and Entering Respondent Data into Survey Database ............... 7

2.3.8 Tabulati ng Data ...................................................................................... 7

2.4 Quality Objectives and Crit eria (Element A.7) ......................................................... 7 2.4.1 Comple teness ........................................................................................ 8

2.4.2 Accu racy ................................................................................................ 8

2.4.3 Reas onableness .................................................................................... 8

2.5 Special Training Requirements / Certification (Element A.8) ................................... 8

2.6 Documentation and Record s (Element A.9) ............................................................ 9

3.0 Data Generation and Ac quisition El ements ........................................................... 10

3.1 Sampling Process Design (Element B.1) .............................................................. 10

3.2 Sampling Methods (E lement B. 2) .......................................................................... 10 3.2.1 Comple teness ...................................................................................... 10

3.2.2 Accu racy .............................................................................................. 11

3.3 Data Handling and Custody (Element B.3) ............................................................ 11

3.4 Data Management (Ele ment B.10) ........................................................................ 12

3.4.1 Questionnaire Non-Re sponse Foll ow Up ............................................. 12 3.4.2 Questionnaire Response Re view and Foll ow Up ................................. 13 3.4.2 Questionnaire Response Coding and Data Entry ................................. 15

4.0 Assessment and Oversi ght Elem ents.................................................................... 16

4.1 Assessments and Response Acti ons (Element C.1) ............................................. 16

4.2 Reports to Management (Element C.2) ................................................................. 16

5.0 Reconciliation with Us er Require ments ................................................................. 18

6.0 Referenc es ............................................................................................................ 19



# Tables

Table 1. QAPP Distribution ..................................................................................................... iiiRev. 1 January 27, 2010 PG QAPP–CBM Detailed Study Questionnaire Page ii of iii



# Figures

Figure 1. Projec t Organization ........................................................................................ 3 Figure 2. CBM Detailed Ques tionnaire Contac t Record ............................................... 14



# Appendices

Appendix A – Final Detail ed Questionna ire .................................................................. A-1 Appendix B – ICR Suppor ting Statem ent ..................................................................... B-1Rev. 1 January 27, 2010 PG QAPP–CBM Detailed Study Questionnaire Page iii of iii



# Distribution (Element A.3)

This Quality Assurance Project Plan (QAPP) was distributed to staff of the U.S. Environmental Protection Agency, PG Environmental, LLC, and Eastern Research Group, Inc. (Table 1). A copy of the document was provided to all PG a nd Eastern Research Group personnel involved in the project, including those who joined th e project after public ation of the QAPP.

Table 1. QAPP Distribution

Name

Title Contact Information Mailing Address

U.S. Environmental Protection Agency

Damon Highsmith Technical Project Officer (202) 566-2504 (phone) highsmith.damon@epa.gov
U.S. Environmental Protection Agency Office of Science and Technology 1200 Pennsylvania Avenue, NW (4303T) Washington, DC 20460
(202) 566-1053 (fax) Marion Kelly Quality Assurance Coordinator (202) 566-1045 (phone) kelly.marion@epa.gov Carey Johnston Work Assignment Manager (202) 566-1014 (phone) johnston.carey@epa.gov

Janet Goodwin Technology & Statistics Branch

Chief (202) 566-1060 (phone) goodwin.janet@epa.gov

PG Environmental, LLC

Jim Parker Work Assignment Manager (703) 707-8258 x100 (phone) jim.parker@pgenv.com PG Environmental, LLC 570 Herndon Parkway, Suite 500
Herndon, VA 20170
(703) 707-8259 (fax) Jan McGoldrick Quality Assurance Officer (703) 707-8258 x108 (phone) jan.mcgoldrick@pgenv.com

Katie Bradshaw

Environmental Scientist (703) 707-8258 x109 (phone) katie.bradshaw@pgenv.com

Paul Hanson Senior Chemical Engineer (303) 279-1778 x104 (phone) paul.hanson@pgenv.com PG Environmental, LLC

607 10 th Street, Suite 307
Golden, CO 80401
(303) 279-1793 (fax)

Eastern Research Group, Inc. (subcontractor to PG Environmental)

Birute Vanatta Task Order Manager (703) 633-1724 (phone) Birute.Vanatta@erg.com Eastern Research Group, Inc. 14555 Avion Parkway

Suite 200 Chantilly, VA 20151-1102
(703) 263-7280 (fax) Betsy Bicknell Project Quality Assurance Officer (703) 633-1612 (phone) Betsy.Bicknell@erg.com

Lori Weiss Senior Chemical Engineer (703) 633-1658 (phone) Lori.Weiss@erg.com

Anne Jones Senior Economist (781) 674-7328 (phone) Anne.Jones@erg.com Eastern Research Group, Inc

110 Hartwell Avenue Lexington, MA 02421-3136
(781) 674-2851 (fax)Rev. 1 January 27, 2010 PG QAPP–CBM Detailed Study Questionnaire Page 1 of 19



# 1.0 Introduction and Background

The U.S. Environmental Protection Agency (E PA), acting through its Office of Science and Technology (OST), Engineering and Analysis Divi sion (EAD), is studying whether it would be appropriate to revise the efflue nt guidelines for the Oil and Gas Point Source Category to control pollutant discharges from coalbed methane ( CBM) produced waters. Discharges from CBM operations are not covered by existing effluent limitations, guidelines, and standards (ELGs)
because at the time the ELGs were established, CBM extraction was not a standard practice. Such extraction, however, has increased in recent years, raising the question of whether specific discharge restrictions should be developed.

EPA required more detailed information on the characteristics of CBM produced water and of the technologies available to treat such disc harges. To obtain these data, EPA undertook a Detailed Study, including a scre ener questionnaire and a detailed industrial survey. EPA tasked PG Environmental, LLC, (PG) with supporting the Agency in its Detailed Study under Work Assignment 2-01 of Contract No. EP-C-07-029. Sp ecifically, EPA tasked PG with finalizing the draft detailed questionnaires that had been de veloped under earlier work assignments (Work Assignments 0-01 and 1-01) of the same contract.

The detailed questionnaire contained both tech nical (Parts A and C) and economic (Part B) sections. PG finalized the questionnaire with assistance from Eastern Research Group, Inc., (ERG) (Work Assignment 2-01, EPA Contract No. EP-C-07-029, Subcontract No. EAD/029-
001). ERG provided support for revising the eco nomic portion (Part B) of the detailed questionnaire under a separate wo rk assignment and contract ( under EPA Contract No. 68-C02-
095). This document represents PG’s project-specific QAPP to finalize and implement the detailed questionnaire up to and including data entry of Part A and Part C questionnaire responses into a database. It covers the wo rk of the entire PG Team (i.e., PG and its subcontractor ERG) in conducting these tasks (1 ). Subsequent revisions to this QAPP will address the technical analysis of questionnaire responses. Qualit y assurance procedures related to survey design and statistical analyses ar e provided in the QAPP prepared by Battelle under a separate contract ( Quality Assurance Project Plan for WA 2-11: Statistical Support for Coalbed Methane Detailed Study; Contract No. EP-C-05-030 ) (2). Procedures for maintaining the CBM public record are provided in the 304(m) Project File Management Plan prepared by ERG under a separate contract (1).

This QAPP is responsive to applicable elements in EPA Requirements for Quality Assurance Project Plans QA/R-5 (3). It is a project-specific s upplement to PG’s corporate quality management protocols, which detail the responsi bilities of PG’s Quality Assurance and Quality Control (QA/QC) personnel and project management team; it also describes the procedures these staff use to plan, implement, and assess project quality.

PG has organized this document according to th e elements outlined in the above-mentioned EPA guidance document. Group A elements are addresse d from the title page through section 2.6 of the document, while applicable Group B elemen ts are addressed in section 3.0. Group C elements are addressed in section 4.0, and appl icable Group D elements are addressed in section 5.0. References are provided in Section 6.0.Rev. 1 January 27, 2010 PG QAPP–CBM Detailed Study Questionnaire Page 2 of 19



# 2.0 Project Management Elements

In this section, PG discusses its project management approach for the assignment. The discussion is organized according to the nine elements EP A identified for inclusion in this section:

A.1 Title and Approval Sheet

A.2 Table of Contents

A.3 Distribution List A.4 Project/Task Organization A.5 Problem Definition/Background A.6 Project/Task Description A.7 Quality Objectives and Criteria A.8 Special Training/Certification

A.9 Documents and Records

Elements A.1 to A.3 were provided earlier in this document. The remaining elements are

discussed below.



## 2.1 Project/Task Organization (Element A.4)

Figure 1 presents the organizational framework under which PG developed and implemented the detailed questionnaire. The chart depicts the staff with program management and technical responsibilities and t hose with QA/QC roles. It show s the relationship and lines of communication among all project participants, incl uding those from EPA, as users of the data, and those from ERG, a subcontractor on the assignment.

2.1.1 Project Management and Technical Staff

Jim Parker, the PG Work Assignment Manager (W AM), was responsible for all management and administrative aspects of the technical work perf ormed for the project and for ensuring that the quality of work, schedule, and budget met the requ irements of the EPA/EAD effluent guidelines program. Mr. Parker was also responsible for ensuring that all contractual issues were addressed. He was the principal contact for th e EPA WAM on project issu es, deliverables, and schedule, and he provided dire ction to ERG under subcontract EAD/029-001. Mr. Parker kept
Jan McGoldrick, the PG QA Officer (QAO), info rmed of any quality issues that arose.

Under the assignment, the PG Team (1) revised and finalized the detail ed questionnaire; (2) developed an electronic version of the detailed questionnaire; (3) mailed and tracked the detailed questionnaires; (4) developed a da tabase and database dictionary to house questionnaire data; (5) assisted detailed questionnaire respondents through voicemail and email; (6) followed up on incomplete detailed questionnaires; (7) entered detailed questionnaire data into the survey
database; and (8) tabula ted questionnaire data.Rev. 1 January 27, 2010 PG QAPP–CBM Detailed Study Questionnaire Page 3 of 19



### OST/EAD Project Officer

PG QA Officer

Other PG QA/QC

Staff

Technical Reviewers OST/EAD QA

Coordinator

OST/EAD Work Assignment

Mana g er

PG Program

Manager

ERG Work Assignment

Manager

and

Technical Staff PG Work Assignment

Technical Staff PG Work Assignment

Manager

ERG Project QA

Coordinator

Project Reporting and Authority

Lines of Communication



### Figure 1: Project Organization (Element A.4)Rev. 1 January 27, 2010 PG QAPP–CBM Detailed Study Questionnaire Page 4 of 19



### Mr. Jim Parker led PG’s efforts, while Ms. Biru te Vanatta led ERG’s efforts. Mr. Parker and Ms. Vanatta were supported by other PG and ERG pr oject staff as needed. The staff adhered to the QA guidelines outlined in this QAPP when providing technical support under the work assignment. In addition, they maintained comple te, legible, permanent, and defensible records documenting all work performed.

2.1.2 Quality Assurance Staff

Jan McGoldrick, PG’s QAO, was responsible fo r developing and maintaining PG’s QA program based on the firm’s quality management protocols. She provided direction and guidance to PG
and subcontractor QA/QC staff and, through them, to the tec hnical and administrative staff completing the work. On this work assignment, Ms. McGoldrick, following consultation with PG’s Program Manager (PM), had the authority to suspend the performance of any activities determined to be deviating from the establishe d quality management procedures, work plan, or project-specific QAPP until appropriate corrective actions were instituted.

Betsy Bicknell served as ERG’s QA Coordinator for this project and, as such, was responsible for developing and executing ERG’s QA activ ities under the assignment. The PG WAM reviewed ERG’s performance, including its QA/ QC activities, on an ongoing basis. The PG
QAO could at her discretion conduct an audit of ERG’s QA activities dur ing the period of performance of the assignment.

The PG QAO and PG WAM appointed Technical Reviewers as needed during the conduct of this assignment. The Technical Reviewers evalua ted the quality of work products as they were being developed and once they were completed. The reviewers did not have any involvement in the products or processes for which they were assigned QA/QC responsibilities. The Technical

Reviewers could be internal or external to the PG Team. They had science, engineering, or water policy backgrounds, as well as experience in survey design, administration, and analysis. The ERG Work Assignment Manager also assi gned internal ERG Technical Reviewers for activities being conducted by ERG. (For further discussion on procedures, see section 4.1 of
this QAPP.)



## 2.2 Problem Definition and Background (Element A.5)

EPA developed and administered the CBM scre ener and detailed questionnaires to collect information to determine whether it would be appr opriate to revise the ef fluent guidelines for the Oil and Gas Point Source Category to control pol lutant discharges from CBM produced water. The purpose of the questionnaires was to gather i ndustry information that would enable EPA to:

• Profile the CBM industry and its prod uced water management practices

• Determine the scope of the industry and any subcategories

• Determine whether technically and economica lly feasible control technologies or management strategies exist to reduce or eliminate the discharge of pollutants

• Determine whether the current regulatory controls are adequate.

To address the key questions and project outc ome described below, EPA employed a two-phase sample design. In the first phase, EPA collected information about CBM projects from a censusRev. 1 January 27, 2010 PG QAPP–CBM Detailed Study Questionnaire Page 5 of 19



### of CBM projects with more than two wells. The responses to the screener questionnaire served as the basis for EPA to select a sample of CBM projects to receive the detailed questionnaire. (For further discussion on sample de sign, see section 3.1 of this QAPP.)

The detailed questionnaire was designed to answer the following key questions:

• What pollutants are being di scharged by CBM operations?

• How do produced volumes of gas and water change over the life of CBM projects?

• What are the existing technically feasible produced water management alternatives?

• For what geology/geography is each management altern ative feasible?

• What are the operation and maintenance cost s of the technically feasible control technologies?

• For what produced water characteristic is each management alternative feasible?

• What are the expected incremental pollutant removals attributable to each management

alternative?

• What is the economic affordability (e.g., production losses, firm failures, impacts on
small business) of each ma nagement alternative?

• What are the non-water-quality impact s of each management alternative:

o Soil contamination, destruction, and erosion

o Energy use

o Treatment residuals and other solid waste

o Other impacts?

This QAPP specifically addresses implemen tation of the detailed questionnaire. As noted in section 1.0 of this QAPP, survey design and statis tical analysis for EPA’s CBM survey effort was handled by Battelle under a separate contract (2)

.



## 2.3 Project/Task Description (Element A.6)

EPA received approval from the Office of Mana gement and Budget (OMB) for an industrial survey (screener and detailed questionnaires) under the Pape rwork Reduction Act on February 29, 2009. EPA published two Federal Register Notices announcing the data collection efforts (73 FR 4556, January 25, 2008; 73 FR 40575, July 15, 2008). The PG Team aided EPA in (1) finalizing the hard-copy detail ed questionnaire, (2) prepar ing an electronic detailed questionnaire, (3) mailing and tracking questionnai res, (4) developing a survey database and database dictionary, (5) a ssisting respondents by phone and email, (6) following up on incomplete surveys, (7) entering respondent data into the survey data base, and (8) tabulating questionnaire response data. A brie f description of these tasks is pr ovided in the subsections that
follow. The QA/QC activities associated with the tasks are discussed in section 3 of this QAPP.Rev. 1 January 27, 2010 PG QAPP–CBM Detailed Study Questionnaire Page 6 of 19



### 2.3.1 Finalizing Detailed Questionnaire

The PG Team assisted EPA in finalizing the detailed questionnaire. There were no significant changes to the detailed questionnaire––only edits to improve the look and ease of use. Questions for the detailed questionnaire were designed to elicit informa tion in the following areas:

• Company economic information

• Quantity and quality of water produced during methane extraction

• Produced water discharge or reuse location and method

• Produced water treatment methods prior to disposal or reuse

• Capital and operating costs and energy consum ption of produced water treatment and disposal

• Residuals (sludge, brine, air emissions) produced during water treatment––quantity, quality, and disposition

• Names, locations, and production histories of CBM extraction projects (one or more
wells)

• Gas and produced water production ra tes over the life of each project

• Information about current National Pollutant Discharge Elimination System (NPDES) and other operating permits.

Appendix A of this QAPP is a copy of the final de tailed questionnaire. Appendix B is a copy of the Information Collection Request supporting statement.

2.3.2 Preparing Electronic Vers ion of Detailed Questionnaire

PG, with support from ERG, developed an electroni c version of the detaile d questionnaire. This version enabled CBM project operators to report their responses to the detailed questionnaire electronically to EPA. The electronic version of the detailed questi onnaire was produced in

Microsoft Word and was similar in a ppearance to the hard-copy version.

2.3.3 Mailing and Tracking Questionnaires

PG printed and mailed hard-copy versions of the fina l detailed questionnaire as directed by EPA. PG also accepted delivery of completed detailed questionnaires. The PG Team conducted some follow-up in terms of questionnai res not returned (e.g., follow-up phone calls, emails, or letters).

2.3.4 Developing a Survey Data base and Data Dictionary

Under Work Assignment 2-01, the PG Team de veloped a database for entering questionnaire responses for Parts A and C of th e questionnaire, as well as a data dictionary describing the data elements. In addition, the PG Team develope d procedures it would use for performing QA/QC of the data and preparing and printing data tabulations.

2.3.5 Providing Survey Assistance

PG maintained a phone number and email addr ess on behalf of EPA during the detailed questionnaire response period. Operators with in quiries about the questio nnaires were able toRev. 1 January 27, 2010 PG QAPP–CBM Detailed Study Questionnaire Page 7 of 19



### contact EPA through PG in this manner. PG logged and reviewed the messages daily and distributed the questions to appr opriate responders using a tracking system. In general, the PG Team responded to questions pertaining to the technical portion of the questionnaires, while ERG, under a separate contract and work assign ment, responded to questions pertaining to the economic section (1). PG forwarded policy-re lated questions to EPA OST/EAD for response.

The PG Team prepared a Frequently Asked Questions (FAQs) document in anticipation of commonly asked administrative and technical qu estions. The PG Team and EPA continually discussed the nature of the quest ions received and the response s given to ensure consistency among responses and to minimize the introduction of bias into the survey process. As necessary, the FAQs were updated to reflect revised or ad ditional questions and associated responses.

2.3.6 Following Up on Incomplete Surveys

As PG received the detailed questionnaires, they were reviewed for completeness (i.e., to ensure that responses to all que stions were provided). Procedures for follow-up are identified in section 3.4 of this QAPP . PG developed documentation for the public record that summarized how the questionnaires were implemented and tracked.

2.3.7 Coding and Entering Respondent Data into Survey Database

For the detailed questionnaire, the PG Team c oded responses on the hard -copy questionnaires to ensure that the responses were in a form that could be easily entered into the detailed survey database. The Team then entered the detailed ques tionnaire responses into the survey database. More detail regarding this procedur e is provided in Section 3.4.2.

CBM operators were able to identify responses containing confidentia l business information (CBI) on the questionnaires. The PG Team handled all CBI data in accordance with applicable EPA procedures ( see also section 2.5 ).

2.3.8 Tabulating Data

Once all the questionnaires had been entered into the survey database, in accordance with the procedures in section 3.4, the PG Team conducted accuracy checks and followed up on any problems identified in reviewing the hard-copy qu estionnaires and data. The PG Team also identified whether the database contained any outliers and investigated them accordingly.



## 2.4 Quality Objectives and Criteria (Element A.7)

The primary objective of this QAPP was to ensure that the data collected using the CBM detailed questionnaires would be of the quality necessary to support EPA in determining whether it would be appropriate to revise the e ffluent guidelines for the Oil and Gas Point Source Category to control pollutant discharges from CBM produced wa ter. The tasks describe d earlier, in section 2.3, involved the collection and use of data gath ered using a detailed survey of selected CBM projects. Questionnaire data co llected directly from industry pe rsonnel were considered primary data. The PG Team defined the acceptance criteria (i.e., data specifications) it used to evaluate

whether the data collected unde r the technical portions of the screener and detailed questionnaires would be suitable for EPA’s study n eeds. The acceptance criteria were related to the completeness, accuracy, and reasonabl eness of questionnai re responses.Rev. 1 January 27, 2010 PG QAPP–CBM Detailed Study Questionnaire Page 8 of 19



### 2.4.1 Completeness

Completeness was defined as the number of valid responses received compared to the number of questionnaires distributed. As described in part B of the ICR Supporting Statement (Appendix B), EPA considered non-responses to specific questi ons and non-responses to the overall detailed questionnaires in developing the sampling design for the CBM industry. Therefore, acceptable completeness was determined in terms of EPA’s st atistical sampling plan. The PG Team worked

with EPA’s statisticians to dete rmine the levels of completeness required. The specific methods the PG Team used to improve completeness ar e described in section 3.4 of this QAPP.

2.4.2 Accuracy

Questionnaire accuracy pertained to (1) whether th e respondents provided correct answers to the questions asked; (2) whether the responses provided were interpreted correctly by the questionnaire sponsor; and (3) whether the resp onses entered into the questionnaire database

were free from error. The PG Team was not ta sked with developing and implementing tools, such as conducting on-site inspections and interviews, to measure elements 1 and 2. The
methods the PG Team used to measure element 3, or to increase the accu racy of responses, are
described in section 3.4 of this QAPP. The PG Team’s goal for data entry accuracy was 100 percent error-free.

2.4.3 Reasonableness

To be suitable for use in EPA’s overall CBM Deta iled Study, the data collected by the detailed questionnaires had to reasonably reflect physical possibilities and industry practices. For example, a produced water flow rate of 1 billion gallons per hour is not physically possible and

therefore is not reasonab le. The PG Team’s goal was for all responses to be reasonable. The methods the PG Team used to evaluate and improve the reasonableness of questionnaire responses are described in section 3.4 of this QAPP.



## 2.5 Special Training Requirements / Certification (Element A.8)

As noted previously, the owners and operators of CBM industries could indicate that certain responses on their questionnaires contained CBI . PG’s Document Control Officer (DCO) for CBI worked in conjunction with EPA’s DCO to re gulate access to all CBI received by PG under this assignment. Only authorized PG employees and subcontractors were allowed access to the CBI. Only the PG DCO or an authori zed employee could release CBI material.

Access to CBI by PG employees was based on an employee’s need-to-know status. Before access was authorized, an employee’s justificat ion for access was documented and submitted to

the PG DCO. This notice indicated the name of the employee, why access to CBI was necessary, and the Work Assignment number under which the employee used CBI. The PG DCO informed the employee of his or her respon sibilities for the security of CBI. The employee was required to

familiarize himself or herself with the a ppropriate procedures for handling CBI.

PG required all subcontractors and consultants that had been determined by the PG DCO to have

a demonstrated need to know under the work assi gnment to submit a CBI security plan before being awarded any tasks involving CBI. ERG, th e subcontractor under this assignment, already had an approved CBI plan with EPA OST/EAD fo r effluent guidelines-related support.Rev. 1 January 27, 2010 PG QAPP–CBM Detailed Study Questionnaire Page 9 of 19



## 2.6 Documentation and Records (Element A.9)

PG developed and instituted document contro l mechanisms for reviewing, revising, and distributing QAPPs. Each QAPP has a signed approval form, title page, table of contents, and EPA-approved document control format, which appear s in the upper right corner of each page. (See header at the top of each page of this QAPP for a specific example.) During the course of the project, PG circulated any revisions to the QAPP to technical and QA/QC project staff at PG,
ERG, and EPA.

PG and ERG adhered to their respective standard practices for managing project-related data, documents, and records. In finalizing and impl ementing the detailed questionnaire, information

and data collected included questionnaire responses, help line questions and responses, questionnaire tracking documentation, and summary memoranda related to the survey effort. In addition, survey responses were entered into a database for subsequent analysis by EPA. All technical data collected, generate d, and analyzed on the project were handled and stored in a centralized file in PG’s Herndon, Virginia, offi ce. All documents collected or produced in the course of the project were stored in the cen tralized file. The ERG Task Order Manager designated an ERG project staff member to maintain all project files and ensured that appropriate files were submitted to PG at periodic intervals throughout the assignment.

The PG Team describes how it managed data obta ined from the CBM detailed questionnaires in
section 3.4 of this QAPP under Element B.10, Data Management. Computer files were maintained by PG employees and on PG’s servers. All computer users were instructed on the importance of routinely archiving project data f iles from hard drives to the server and, as necessary, tape backup storage or diskettes.

As described in Section 2.5 above, materials de signated as CBI were maintained separately, under restricted access, and used only in accordan ce with PG’s policies and procedures for CBI by staff who had received CBI clearance, with oversight by the DCO.

All quality system documents and records will be maintained for the life of the contract. Quality system records were filed according to guida nce provided by the PG Program Manager and
QAO.

Disposition of quality system documents and records was determined in accordance with contract requirements.Rev. 1 January 27, 2010 PG QAPP–CBM Detailed Study Questionnaire Page 10 of 19



# 3.0 Data Generation and Acquisition Elements

The detailed questionnaire invo lved collecting and re viewing data obtained from the owners and/or operators of CBM extraction projects. El ements B.1 to B.3 and Element B.10 below were relevant to this task. The PG Team’s approach to each of these elements is described in the

subsections that follow.

• 

### Element B.1, Sampling Process Design

• 

### Element B.2, Sampling Methods

• 

### Element B.3, Sample Handling and Custody

• 

### Element B.4, Analytical Methods

• 

### Element B.5, Quality Control

• 

### Element B.6, Instrument/Equipment Te sting, Inspection, and Maintenance

• 

### Element B.7, Instrument/Equipment Calibration and Frequency

• 

### Element B.8, Inspection/Acceptan ce of Supplies and Consumables

• 

### Element B.9, Non-direct Measurements

• 

### Element B.10, Data Management



## 3.1 Sampling Process Design (Element B.1)

As discussed in sections 1.0 and 2.3 of this QAPP, EPA conducted a detailed survey of a sampling of CBM projects identifie d as part of the screener ques tionnaire. Using a sample frame of 773 projects (screener surveys), EPA, with s upport from Battelle, sel ected 203 CBM projects to receive detailed questionnaires. EPA se lected the projects for sampling by basin, establishment size, and discharge me thod (i.e., direct or indirect di scharge, and zero discharge). Within each sampled strata, EPA targeted 30 perc ent of the projects for sampling. Additional details on the sampling process design have been provided in a memorandum prepared by Battelle under a separate contract ( EPA Contract No. EP-05-030, Work Assignment 4-11: Coalbed Methane (CBM) Study: Final Detailed Questionnaire Sample Design ) (4).



## 3.2 Sampling Methods (Element B.2)

EPA distributed the detailed questionnaires under the authority of section 308 of the Clean Water
Act (Federal Water Pollu tion Control Act, 33 U.S.C. § 1318). All CBM project operators that received a detailed questionnaire were required by law to respond to it.

3.2.1 Completeness

As it relates to the sampling method, completeness was defined as the number of valid responses received compared to the number of questionnaire s distributed. EPA assumed a relatively high response rate for the survey effort. For the de tailed questionnaire, EPA adjusted the estimated sample size assuming a non-response rate of 10 pe rcent. This assumption of a 10 percent nonresponse rate was based on EPA’s experience with a typical effluent guidelines questionnaire. EPA adjusted the detailed sample weights for any non-response for the survey.

When developing the initial drafts of the deta iled questionnaire, EPA and the PG Team had worked closely (under other work assignments) with applicable industry trade associations. TheRev. 1 January 27, 2010 PG QAPP–CBM Detailed Study Questionnaire Page 11 of 19



### CBM industry was therefore generally well informed of the goals and objectives of EPA’s study effort and of EPA’s schedule for ques tionnaire distribution and receipt.

Under a previous work assignment, ERG and EPA had developed contact names and mailing lists for CBM operators. An accurate mailing list reduced the number of undeliverable questionnaires and improved completeness.

3.2.2 Accuracy

For the questionnaires to result in accurate information concerning the CBM industry, respondents had to provide correct responses to the questions as ked, and the PG Team and EPA had to interpret the responses correctly. Unde r an earlier work assignment, the PG Team and EPA had worked with industry representatives to determine the best terminology to use when developing questions. Industry representatives had also made suggestions regarding the types of questions that would be best. The PG Team a nd EPA then verified that draft questions would elicit the information needed to answer questions related to EPA’s overall CBM Detailed Study.

The entities listed below were asked to provide co mments on drafts of the detailed questionnaire and to provide specific comment on the terminology used, the definitions of key terms, and the availability of the data requested:

• Internal ERG and PG environmental Technical Reviewers

• EPA core workgroup members

• EPA extended workgroup members

• CBM industry and trade association personnel

• General public, including tr ibes, environmental groups, and other stakeholders

• The Office of Management and Budget (OMB).



## 3.3 Data Handling and Custody (Element B.3)

As noted previously, PG assigned a unique survey identifier to every potential respondent to the detailed questionnaire. PG also established hard-copy files for each respondent containing this information. Finally, PG printed the survey identifi er on each page of the de tailed questionnaire.

PG established an electronic system to track each detailed questionnaire mailed. The system included the unique survey identifier and the da tes the questionnaires were mailed and received by the applicable CBM owner/operator. As comple ted detailed questionnaire s were received, PG date-stamped the first severa l pages of each major section and logged the dates into the electronic tracking system.

As described in Section 2.3.2, an electronic de tailed questionnaire was provided as an option for response. PG also logged the dates on whic h any CD-ROMs or DVDs of electronic detailed questionnaire responses were received.

To document reviewer mark-ups, PG photocopied a ll returned detailed que stionnaires. The PG Team used the photocopies of the questionnaire responses when conducting follow-up, data coding (where applicable), a nd data entry. These photocopi es, along with the original questionnaires, were stored in PG’s CBI room in files arranged by the unique survey identifierRev. 1 January 27, 2010 PG QAPP–CBM Detailed Study Questionnaire Page 12 of 19



### number and respondent name. Upon completion of the survey review task, PG provided EPA

with the CD-ROM or DVD versions of the mark ed-up photocopies for the public record (minus any data identified as CBI). ERG, under a separate contract with EPA (1), maintained the public record for the CBM survey effort.

The PG Team managed the data entry process for Parts A and C of the detailed questionnaire. PG provided ERG with PDF versions of each detail ed questionnaire for its review and data entry
for Part B (economic section). The PG Team reviewed, coded, and entered detailed questionnaire data. ERG’s activities related to review and data entry of the economic portions of the detailed questionnaire were performe d under a separate work assignment (1). PG logged the date on which the PDF versions of the detailed questionnaires were transmitted to ERG into the electronic tracking system. PG and ERG adhere d to EPA procedures for handling CBI when handling and transmitting questionnaires, as well as to their own standard protocols for handling other project-related data, docum ents, records, and memoranda.



## 3.4 Data Management (Element B.10)

The PG Team implemented the following QA activ ities to improve the completeness, accuracy, and reasonableness of responses to th e detailed questionn aires received.

3.4.1 Questionnaire Non-Response Follow Up

The PG Team conducted some follow-up (e.g., fo llow-up phone calls) in terms of non-response to questionnaires. EPA determined the extent to which follow-up would be conducted before considering a questionnaire non-resp onsive. The PG Team determined, in conjunction with the EPA statisticians, what was an acceptable respon se rate for the questionnaires. EPA was ready to implement other means for collecting questionn aires, including, as necessary, follow-up phone calls and letters, criminal fines, civil penalties, and other sanctions, as provided by law. The PG Team operated a phone line and email address wh ere CBM industry owners and operators could submit questions regarding the surveys. The PG Team and EPA responded to these inquiries in a consistent manner. These activities also help ed to improve the completeness of responses on individual questionnaires ( see section 3.4.2 below ).

As noted previously, EPA tasked PG with distribu ting the detailed questionna ires. The PG Team undertook numerous QC activities to improve the que stionnaire responses. The QC activities included the following:

• PG printed the questionnaires with a unique su rvey identifier on every page. The unique survey identifier was then included in the questionnaire database, hard-copy and electronic tracking forms, and hard-copy files.

• PG reviewed the questionnaire cover letters, printed questionnaire forms, and mailing labels against the original mailing list provided by EPA to ensure that all the information

matched and was consistent.

• PG created an electronic tracking log. For the detailed questionna ires the log included such information as the unique survey iden tifier, targeted CBM operator and address,Rev. 1 January 27, 2010 PG QAPP–CBM Detailed Study Questionnaire Page 13 of 19



### date mailed, date received by recipient, da te returned, follow-up conducted and results, and date data entered into survey database.

• PG mailed a hard-copy form of the detailed questionnaire to a sample of CBM projects identified by EPA through a tracking service (i.e ., U.S. Postal Service registered mail, or Federal Express). This enabled the PG Team to track each proj ect’s receipt of the questionnaire. Respondents, however, also ha d the option of downloading an electronic version of the detailed questionnaire from EPA’s Web site so that they could complete it electronically rather than by hand. Responde nts choosing this approach simply mailed EPA a CD-ROM or DVD of their questionnai re responses rather than sending a hardcopy version. The purpose of providing re spondents with alternative forms of submission was to enhance EPA’s ability to collect detailed questionnaires.

• Reminder postcards were sent midway through the survey time frame to operators that had not yet responded to the survey at that po int in time. The purpose of this effort was to ensure that responses would be received.

3.4.2 Questionnaire Respon se Review and Follow Up

PG reviewed Parts A and C of each received detailed questionnaire for completeness and reasonableness. As necessary, PG called res pondents when questionnaires were found to be incomplete. PG’s reviews specifically identified the following:

• Missing or incomplete responses if not caught earlier during the ques tionnaire receipt and tracking phase

• Inconsistent responses (e.g., questions comple ted when a response directed that they be skipped, responses that contradi cted other questionnaire responses)

• Unreasonable responses (out of the permissible range).

If any of these issues were identified, PG calle d the respondent to obtain a complete, consistent response to each question. PG documented t hose communications and changed the original questionnaire response based on the follow-up communication. The communications were logged, and the communication record was stored in the survey file in PG’s CBI-secured room. After review and follow-up were completed, PG reported the number of valid responses provided for each question. PG worked with EPA statis ticians to determine whether there were enough responses to make generalizations about the CBM project universe.

To further improve the completeness and accuracy of questionnaire responses, PG developed an

electronic version of the detailed questionnaire that aided in the preparation of responses to the questionnaire. Second, the PG Team and EPA provided assistance to questionnaire respondents by telephone and an email messaging system. For the detailed survey effort, the PG Team also offered support to respondents in comp leting the detailed questionnaire.

Before mailing out the detailed questionnaires, the PG Team also developed FAQs that contained anticipated questions from questionnaire respon dents and appropriate re sponses from the PG Team and EPA staff. The PG Team routinely di scussed with EPA the nature of questions beingRev. 1 January 27, 2010 PG QAPP–CBM Detailed Study Questionnaire Page 14 of 19



### received and the answers being given to ensure th at bias was not being introduced into the survey process. The PG Team updated the FAQs as necessary and distributed the updated FAQs to appropriate project team members.

PG documented the following with respect to th e detailed questionnaires: mail-out and receipt dates; specifics regarding follow- ups to helpline and email inquiries ; findings from the review of completed questionnaires; notes from follow-up inquiries with respondents and related edits made to questionnaire responses; and transmissi on of questionnaires from PG to ERG.

PG used a form (Figure 2) to document telephone conversations with respondents. PG stored the completed forms in the applicable questionnaire f ile in the CBI room for the study. PG provided copies of these records to EPA as requested.

Project Name: CBM Detailed Study

Project No:

Facility ID:

Facility Name:

Contact Name: Contact Phone No: Contact Email Address:

Date: PG Staff Name:

Time: AM PM

This document

contains CBI:

_____ Yes

_____ No Type of Contact:

Email Telephone

General Subject(s)

Discussed:

CBI = Yes (Y) Question

No. Topics Discussed



### Figure 2: CBM Detailed Questionnaire Contact RecordRev. 1 January 27, 2010 PG QAPP–CBM Detailed Study Questionnaire Page 15 of 19



### At the completion of the detailed questionnaire mail-out and receipt pr ocedures, PG produced a memorandum for the public record that summari zed the tracking procedures followed. The

memorandum included such information as basic procedures followed, st atistics regarding the number of questionnaires mailed and returned, si gnificant dates, statistic s regarding the number of complete and incomplete questionnaires, th e number of helpline calls or email inquiries received and responded to while the questionnaire s were in the field, and the number of followup calls the PG Team and EPA made to obtain complete questionnaires.

3.4.2 Questionnaire Respon se Coding and Data Entry

The PG Team developed a Microsoft Access da tabase in which responses to the detailed questionnaires were entered.

Before entering the data for Parts A and C of the detailed questionnaire, PG Team staff coded the completed detailed questionnaires to ensure that all responses were in the format required for data entry. (Questionnaire coding improves the accuracy of data entr y.) A CBI-cleared ERG employee with prior experience related to questio nnaire data entry keyed information from the hard-copy surveys into the database. To ensure that the database was accurate, a second CBIcleared PG team member independently reviewed 20 percent of the questionnaires for data entry accuracy. If data entry errors were identified, the PG Team co ordinated with the EPA WAM to
determine, based on the resources available, the ex tent of additional review (i.e., greater than 20 percent) that should be performed on data entry. To further mini mize the potential for keying or
other errors, all data entr y staff were experienced in the use of Microsoft Access. When errors in database entry were discovered during review , ERG corrected the data field for the CBM project(s). Separate ER G staff performed a 100 percent check to ensure that resolved errors were correctly re-entered into th e Microsoft Access database.

The completed database containing detailed que stionnaire data was stored electronically on

ERG’s secure CBI network. PG also stored a co py of the database on its secure CBI network to facilitate future data analysis. The PG Team pr epared a data element dictionary to document the database structure and to serve as a guide for database users. The PG Team could query the system to determine whether any responses were missing for a given question for any questionnaire respondent. The PG Team follo wed up on any such discrepancies identified.Rev. 1 January 27, 2010 PG QAPP–CBM Detailed Study Questionnaire Page 16 of 19



# 4.0 Assessment and Oversight Elements

This section describes the methods the PG Team used to assess the quality of work conducted for the questionnaire data collection tasks.



## 4.1 Assessments and Response Actions (Element C.1)

The PG WAM and PG QAO appointed Technical Re viewers as needed du ring the conduct of the work assignment. The ERG Task Order Mana ger and QA Coordinator did the same. The products likely to receiv e a technical review included one or more of the following:

• Revisions to the deta iled questionnaire

• Draft/final of electronic detailed questionnaire

• Draft/final of survey database and database dictionary.

In addition, a technical review of the doc umentation of follow-up work on incomplete questionnaires was performed. For the detailed survey, only a sample was reviewed. Technical reviews are critical evaluations of work perfor med. PG and ERG adhered to their respective standard procedures for conducting and documenting such reviews, as well as the responsibilities of reviewers. In general, technical reviews ar e conducted by professionals who are proficient in
the work areas of interest, but who were not dir ectly responsible for performance of the work.

Technical reviewers document the results of thei r reviews. For this work assignment, the PG WAM was responsible for ensuring that techni cal reviews were conducted by the appropriate personnel and documented according to company policies.

PG’s QAO and ERG’s Project QA Coordinato r assessed the implementation of QA/QC procedures on this project as follows:

• Reviewed this QAPP for completeness and app licability and signed th e signature page of the QAPP following successful review(s).

• Trained all project staff to ensure that a ll QC procedures in the QAPP were understood prior to initiation of technical support.

• Audited project files to verify that project staff were (1) using the QC procedures identified in this QAPP, (2) using ap propriate PG and ERG standard operating procedures, and (3) documenting the deliverable review process. If not, the PG QAO directed the PG WAM to implement correctiv e action and document that the action was taken. ERG followed a similar procedure be tween that firm’s Project QA Coordinator and Task Order Manager. Corrective action c ould include additional staff instruction or the development and use of additional measures to ensure the quality of data management

and review.



## 4.2 Reports to Management (Element C.2)

The PG WAM informed the EPA WAM of the progress of all work activities through the monthly progress reports required under Work Assignment 2-01 of EPA Contract No. EP-C-07-

029.Rev. 1 January 27, 2010 PG QAPP–CBM Detailed Study Questionnaire Page 17 of 19



### PG’s Technical Reviewers and the QAO communicated any quality deficiencies identified as a

result of reviews or audits to the PG WAM in writing. ERG’s Technica l Reviewers and Project QA Coordinator did the same, notifying ERG’s Task Order Manager, who, in turn, reported the information to the PG WAM. If quality objectives and criteria were not met, the PG WAM was responsible for ensuring that the appropriate corrective actions we re taken and reported to PG’s QAO. An example of an appropriate corrective ac tion would be additional data entry review if data entry errors were identified.

As required by Work Assignment 2-01, PG also supplied quarterly QA status reports to the EPA WAM. During the active phase of the detailed survey, the QA status reports were provided monthly, and verbal reports were provided as part of the standing weekly work assignment status meeting. If urgent issues arose, verbal reports were provided to EPA immediately.Rev. 1 January 27, 2010 PG QAPP–CBM Detailed Study Questionnaire Page 18 of 19



# 5.0 Reconciliation with User Requirements

Completed detailed questionnaires are the primary data sources that EPA used to answer the key questions posed in section 2.2.1 of this QAPP. The questionnaire res ponses provided detailed descriptions of CBM extraction operations, industry finances, and produced water management practices. EPA used the questionnaire data, in combination with secondary data, to support its overall CBM Detailed Study.

The PG Team thoroughly documented for the pub lic record all primary and secondary source data used in any reports or memoranda devel oped under Work Assignment 2-01 of Contract No. EP-C-07-029. Subsequent analyses of questionnai re responses clearly de scribed for the record any limitations of the quality of the questionnaire data or assumptions required for its use.Rev. 1 January 27, 2010 PG QAPP–CBM Detailed Study Questionnaire Page 19 of 19



# 6.0 References

(1) ERG finalized, reviewed, and analyzed the economic section (Part B) of the detailed questionnaire under a separate QAPP, work a ssignment, and contract (Contract No. 68-C02-
095). ERG also assisted PG as a subcontractor in finalizing, review ing, and analyzing the detailed questionnaire under WA 2-01 of EPA Contract EP-C-07-029. This QAPP is for the latter activities (Parts A and C), although refe rence is often made to ERG’s activities with respect to the economic sections of the questionnaires.

(2) Battelle (November 2, 2007). Quality Assurance Project Pl an for WA 2-11: Statistical Support for Coalbed Methane Detaile d Study; Contract No. EP-C-05-030

.

(3) U.S. Environmental Protection Agency (March 2001). EPA Requirements for Quality Assurance Project Plans, EPA QA/R-5. EPA, Office of Environmental Information, Washington, DC, EPA/240/B-01/003.

(4) Battelle (October 19, 2009). EPA Contract No. EP-05-030, Work Assignment 4-11: Coalbed Methane (CBM) Study: Final Detailed Questionnaire Sample Design.Rev. 1 January 27, 2010 Appendix A, PG QAPP–CBM Detailed Study Questionnaires Page 1 of 116



# Appendix A

Draft Detailed Questionnaire

### November 2009 Attach Address Label



# U.S. ENVIRONMENTAL PROTECTION AGENCY

DRAFT QUESTIONNAIRE FOR THE COALBED METHANE

EXTRACTION SECTOR

Form Approved

OMB Control No. 2040-0279 Approval Expires 2/29/12

The public reporting and recordkeeping burden for this collection of information is estimated to average approximately 80 hours per response. Burden means the total time, effort, or financia l resources expended by persons to generate, maintain, retain, or disclose or provide information to or for a Federal agen cy. This includes the time needed to review instructions, develop, acquire, install, and utilize tech nology and systems for the purposes of collecting, validating, and verifying information, processing and maintaining informat ion, and disclosing and providing information; adjust the existing ways to comply with any previously applicable instruct ions and requirements; train personnel to be able to respond
to a collection of information; search da ta sources; complete and review the coll ection of information; and transmit or otherwise disclose information. An agency may not conduct or sponsor, and a person is not required to respond to, a

collection of information unl ess it displays a currently valid OMB control number.

To comment on the Agency’s need for this information, the accuracy of the provided burden estimates, and any suggested methods for minimizing responde nt burden, including the use of auto mated collection techniques, EPA has established a public docket for this ICR under Docket ID No. EPA-HQ-OW-2006-0771, which is available for public viewing at the Water Docket in the EPA Docket Center (EPA/DC), EPA West, Room B102, 1301 Constitution Ave., NW, Washington, DC 20004. The EPA Docket Cent er Public Reading Room is open from 8:30 a.m. to 4:30 p.m., Monday through Friday, excluding legal holidays. The telephone number f or the Reading Room is (202) 566-1744, and the telephone number for the Water Docket is (202) 566-2426. An electronic versio n of the public docket is available through the federal data management system (FDMS) at http://www.regulations.gov . Use FDMS to submit or view public comments, access the index listing of the contents of the public docket, and to access those documents in the public docket that are available electronically. Also, you can send comments to the Office of Information and Regulatory Affairs, Office of Management and Budget, 725 17 th Street, NW, Washington, DC 20503, Attention: Desk Officer for EPA. Please include the EPA Docket ID No. EPA-HQ-OW-2006-0771 and OMB control number (2040-0279) in any correspondence.General Instructions CBM Questionnaire



### i Operator ID:
INTRODUCTION



### The U.S. Environmental Protection Agency (EPA) is conducting a survey of coalbed methane (CBM) extraction operations. EPA will use the responses collect ed in this detailed questionnaire to inform its

decision on whether to initiate a rule making to potentially revise the effluent guidelines for the Oil and Gas Extraction Point Source Category (40 CFR 435) to include limits for pollutants discharged in CBM produced water. This questionnaire is not focused on conventional oil and gas ex traction. Any regulatory decisions resulting from this survey will not affect conventional oil and gas operations. The technical

data collected will be used to determine the ch aracteristics of CBM produced water, potential environmental impacts, existing management, benefici al use, and disposal practices for CBM produced
water, and the related costs for th is industry sector. The financial a nd economic data collected will be

used to characterize the economic status of the in dustry sector and to esti mate the possible economic impacts of potential technology and beneficial use options for CBM produced water. EPA is conducting this survey as part of its annual review of existin g effluent guidelines, which is required by the Clean Water Act (CWA) sections 301(d) and 304(b). You must respond to this questi onnaire if you operated a

CBM well in 2008.

EPA is conducting this survey under the authority of Section 308 of the Clean Water Act (Federal Water Pollution Control Act, 33 U.S.C. Section 1318). You must respond to this questionnaire within 60 days of receiving it unless EPA authorizes an extension (see page iii). Fail ure to respond, late filing, or failure to comply with the instruct ions may result in criminal fines, civil penalties, and other sanctions, as provided by law.

OVERVIEW OF THE QUESTIONNAIRE



### The questionnaire is divided into th ree parts: Part A lists the proj ects operated by your company that have been selected for this questionnaire, Part B c ontains financial and economic Information, and part C contains produced water management information. The parts are divided into the following sections:

PART A: CBM PROJECTS SELECTED FOR QUESTIONNAIRE AND CERTIFICATION

Part A of the questionnaire identifies the projects selected for this que stionnaire. The questions in Parts B and C pertain only to the projects listed in Part A. You are required to provide information in Part B, Section 3, and Part C, Sections 2 through 4, fo r each of the projects identified in Part A.

PART B: FINANCIAL AND ECONOMIC INFORMATION

INSTRUCTIONS FOR PART B

SECTION 1: CONTACT INFORMATION

SECTION 2: FIRM-LEV EL FINANCIAL QUESTIONS

SECTION 3: PROJ ECT-LEVEL QUESTIONS

The financial and economic data collected in Part B of this questionnaire will be used to characterize the economic status of the industry and to estimate the possible economic im pacts of wastewater regulations. The questions in Part B pe rtain to calendar years 2006 through 2008.

PART C: PRODUCED WATER MANAGEMENT INFORMATION

INSTRUCTIONS FOR PART C

SECTION 1: GENERAL OPERATOR INFORMATION

SECTION 2: PRODUCED WATER MANA GEMENT SYSTEM GENERAL QUESTIONSGeneral Instructions CBM Questionnaire



### ii SECTION 3: DETAILED PRODUCED WATER MANAGEMENT AND TREATMENT QUESTIONS SECTION 4: PRODUCED WATER QUALITY DATA

The information requested in Part C of this quest ionnaire will be used to analyze produced water production rates, produced water characteristics, and produced water management, treatment, and disposal practices. Part C requests information for calendar year 2008.

PART D: SUPPORTING INFORMATION

LIST OF ACRONYMS

DEFINITION OF KEY TERMSGeneral Instructions CBM Questionnaire



### iii Operator ID: COMPLETION OF THE QUESTIONNAIRE



### Each section of the questionnaire should be comp leted by the person(s) most knowledgeable about the information requested. The corporate official or de signee responsible for dire cting or supervising the response to the questionnaire must sign the Certifi cation Statements on page A-6 to verify and validate the information provided.

Keep a Copy of the Completed Questionnaire

Please keep a copy of the complete d questionnaire, including attachments . EPA will review the information submitted and may request your cooperati on in answering follow-up questions, if necessary, to complete analyses.

QUESTIONNAIRE ASSISTANCE

EPA Coalbed Methane Help Lines

Phone Line (Leave Voice Mail for a Response within On e Business Day) .......................................................... ........... XXX-XXX-XXXX Internet Electronic Mailing Address (R esponse within One Business Day) ........................................................

............... XXX@XXX.com

WHEN TO RETURN QUESTIONNAIRE



### You must respond to this questionnaire within 60 days of receiving it.

If you wish to request an extension, you must do so in writing within 30 days of receipt of this questionnaire. Written requests may be e-mailed to Mr . Carey Johnston at johnston.carey@epa.gov with “CBM Survey Extension Request” in the e-mail subject line or may be mailed to:

United States Postal Service One- or Two-Day Delivery (e.g., FedEx) Mr. Carey Johnston Mr. Carey Johnston
U.S. EPA, Office of Water U.S. EPA, Office of Water
Mail Code: 4303T Room 6231G, EPA West 1200 Pennsylvania Avenue, N.W. 1301 Constitution Avenue, NW Washington, DC 20460 Washington, DC 20004

Extension requests will be evaluated on a case-by-cas e basis. Submittal of an extension request to EPA

does not alter the due date of your questionnaire unl ess and until EPA agrees to the extension and

establishes a new date.

WHERE TO RETURN QUESTIONNAIRE



### After completing the questionnaire and certifying the information th at it contains, please use the enclosed mailing label to mail the completed que stionnaire to:

U.S. Environmental Protection Agency CBM Industry Survey
c/o PG Environmental, LLC

447B Carlisle Drive
Herndon, VA 20170General Instructions CBM Questionnaire



### iv Operator ID: REQUESTING AN ELECTRONIC VERSI ON OF THE QUESTIONNAIRE



### If you would like an electronic ve rsion of the questionnaire, it is available on the EPA Web site at:

http://www.epa.gov/guide/cbm/.

CONFIDENTIAL BUSINESS INFORMATION



### If no business confidentiality clai m accompanies the information when it is received by EPA, EPA may make the information available to the public without further notice.

Regulations governing the confidential ity of business information are co ntained in the Code of Federal Regulations (CFR) at Title 40 Part 2, Subpart B. You may assert a business confidentiality claim covering part or all of the informati on you submit, other than effluent data and information or data that is otherwise publicly available , as described in 40 CFR 2.203(b):

“(b) Method and time of asserting business confidentiality claim. A business which is submitting information to EPA may assert a busi ness confidentiality claim covering t he information by placing on (or attaching to) the information, at the time it is submitted to EPA, a cover sheet, stamped or typed legend, or other suitable form of notice complying language su ch as ‘trade secret,’ ‘proprietary,’ or ‘company confidential.’ Allegedly confidential portions of ot herwise non-confidential do cuments should be clearly identified by the business, and may be submitted sepa rately to facilitate ident ification and handling by

EPA. If the business desires confidential treatment only until a certain date or until the occurrence of a
certain event, the notice should so state.”



### You may claim as confidential all information incl uded in the response to a question by checking the Confidential Business Information (CBI) box next to the question number. Altern atively, all questions marked with a CBI check box may be claimed confid ential now by checking the box at the end of this paragraph. If you do not check this box, any individual response where “CBI” is NOT checked will be

considered nonconfidential. Note th at you may be required to justify a ny claim of confidentiality at a

later time . Note also that facility effluent data are not eligible for confidential treatment, pursuant to Section 308(b) of the Clean Water Act, and thus will be treated as non-confidential even if the CBI box is checked. In addition, information that is pub licly-available should not be claimed confidential . Note

also that information claimed confid ential cannot be accessed, verified, or used by the industry at a later date to evaluate data and analyses supporting the results of the CBM study.

Check Here to Claim All Eligible Data are CBI

Information covered by a claim of confidentiality will be disclosed by EPA only to the extent of, and by means of, the procedures set forth in 40 CFR Part 2, Subpart B. In general, submitted information protected by a business confiden tiality claim may be disclosed to other employees, officers, or authorized representatives of the United States concerned with implementi ng the Clean Water Act. Exemption 4 of the Freedom of Information Act (FOI A) protects from disclo sure "trade secrets and

commercial or financial informati on obtained from a person and privileged or confidential." See 5 U.S.C. 552(b)(4).

Information covered by a claim of confidentiality will be made available to EPA contractors under EPA
Contract Numbers No. 68-C02-095, EP-C-07-029, a nd EP-C-05-030 to enable the contractors toGeneral Instructions CBM Questionnaire



### v perform the work required by their contracts with EPA. All EPA contracts provide that contractor employees use the information only for the purpose of performing the work re quired by their contracts and will not disclose any CBI to anyone other th an EPA without prior written approval from each affected business or from EPA’s legal office. EPA ha s approved written procedures for each contractor on how they will gather, safeguard, and secure CBI. Any comments you may wish to make on this issue must be submitted in writing along with your completed survey.Part A. CBM Projects Selected for Questi onnaire CBM Questionnaire



### A-1 Operator ID:



### PART A. CBM PROJECTS SELECTED FOR QUESTIONNAIRE AND

CERTIFICATION

A1-1. Did you respond to EPA’s screener questionnaire on CBM projects?

Yes. Continue with Question A1-2.

No. Skip to Question A1-3.

A1-2. You have been selected by EPA to respond to questions about projects you identified in EPA’s screener survey sent to you on XXX, 2009. EPA has selected the following projects in its representative sampling of CBM projects for this survey:



### [This table will be pre-populated based on informa tion collected in the screener questionnaire.]

Table A-1. Projects Selected for this Questionnaire



### Project Identifier Count of Wells Productive in
2008 (from screener)

For each of the projects listed in Table A-1 , EPA requests that you prov ide identifying information on all wells that were actively producing either water or gas in 2008. The number of wells with identifying information submitted should match the nu mber of wells listed in Table A-1 (reported in your screener survey). Reasons for any discrepancies should be repor ted in the Comments section in Question A1-4. You may use Table A-2 to fill in this information or y ou can submit your own printout or electronic form, whichever is more convenient. Make as many copies of the table as you need, ensuring that the relevant projec t identifier is written on the top right hand corner of the page.

Please provide the API number for each well in the project unless the well is located in Kansas, Virginia, or Indiana. List the API number in Column A of Table A-2 if you choose to use this table. Please follow the instructions below for Kansas, Vi rginia, and Indiana and enter the information into Column B of Table A-2 if using this table.

• Kansas -The well identifying information should be the lease/permit number that is in the form of a six-digit number, e.g., 221405.

• Virginia -The well identifying information should be the permit number that is in the form of a 2-letter and 4-digit number combination, e.g., BU-0390.

• Indiana -The well identifying information should be the permit number that is in the form of a 5-digit number, e.g., 50125.



### If you have projects listed in Table A-1, plea se skip Question A1-3 . Remember to sign the Certification Statement on page A-6 afte r completing the rest of the questionnaire.Part A. CBM Projects Selected for Questi onnaire CBM Questionnaire



### A-2 Operator ID: 

### Project ID:

A1-3. According to EPA’s information, you did not receive a screener questionnaire, but most likely you operated only one or two CBM projects in 2008. A CBM project comprises a well, group of wells, lease, group of leases, or recognized unit for which you operated as an economic unit when making production decisions in 2008 . If you did not operate any CBM wells in 2008 or if you had another concern about whether your organization is the appropriate respondent for this questionnaire, please contact the EPA help line for further instructio ns. Otherwise, EPA reque sts that you provide identifying information on all CBM wells that were acti vely producing water or gas in 2008, by project. EPA recognizes that such gr oupings can change over ti me, so define your projec t(s) in a way that is best representative of your prod uction decision grouping in 2008.

Please provide an identifying name or number for your project in the top right-hand corner of Table A-2. Table A-2 must be completed for each CBM project you identify (you will need to copy the table if you have more than one project). Y ou will need to use this project ident ifier in other sections of this survey questionnaire.

Please provide the API number in Column A of Tabl e A-2 for each well in the project unless the well is located in Kansas, Virginia, or Indiana. Please follow the instructions below for Kansas, Virginia,

and Indiana and enter the information into Colu mn B of Table A-2 if using this table.

• Kansas – The well identifying information should be the lease/permit number that is in the form of a six-digit number, e.g., 221405.

• Virginia – The well identifying in formation should be the permit number that is in the form of a 2-letter and 4-digit number combination, e.g., BU-0390.

• Indiana – The well identifying information should be the permit number that is in the form of a 5-digit number, e.g., 50125.



### Remember to sign the Certificat ion Statement on page A-6 after completing the rest of the questionnaire.Part A. CBM Projects Selected for Questi onnaire CBM Questionnaire



### A-3 Operator ID:
Table A-2. Well Identifying Information for All Actively Producing Wells for Project ID ______ (Submit One Copy for Each Project Listed in Table A-1 or Requested in Question A3-1.)



### Column A

API Number (Excluding Kansas, Virginia, Indiana) Column B

Permit Number (Kansas, Virginia, Indiana Only)Part A. CBM Projects Selected for Questi onnaire CBM Questionnaire



### A-4 Operator ID:

Copy of

A1-4. Comments on Part A. Please cross-reference your comments by question number. If you need additional space, please photocopy this page before writing on it , and number each copy in the space provided.



### Question

Number Comment

CBI?

Yes

CBI?

Yes

CBI?

Yes

CBI?

Yes

CBI?

Yes

CBI?

Yes

CBI?

Yes

CBI?

Yes

CBI?

Yes

CBI?

Yes

CBI?

Yes

CBI?

Yes

CBI?

YesPart A. CBM Projects Selected for Questi onnaire CBM Questionnaire



### A-5Part A. CBM Projects Selected for Questi onnaire CBM Questionnaire



### A-6 Operator ID:

CERTIFICATION STATEMENT



### I certify under penalty of law that the attached questionnaire was prepared under my direction or supervision and that qualified pers onnel properly gathered and evaluat ed the informat ion submitted. The information submitted is, to the best of my knowledge and belief, accurate and complete. In those cases where we did not possess the requested information for questions applicable to our operations, we provided best estimat es. We have to the best of our abi lity indicated what we believe to be company confidential business informati on as defined under 40 CFR Part 2, Subpart B. We understand that we may be required at a later time to ju stify our claim in detail with respect to each item claimed confidential. I am aware that there are significant penalties for submitting false information, including the possibi lity of fines and imprisonment as explained in Section 308 of the

Clean Water Act.

Signature of Certifying Official Date

( ) Printed Name of Certifying Offici al Telephone Number of Certifying

Official

Title of Certifying Official

Facility Name

(Continue to Part B, Section 1 of the questionnaire, complete all sections, and return the questionnaire along with th e signed Certification Statement to the address provided on page iii.)Part B. Financial and Economic Information

Section 1: Contact Information CBM Questionnaire



### B-1 Operator ID:



### PART B. FINANCIAL AND ECONOMIC INFORMATION

SECTION 1: CONTACT INFORMATION

GENERAL INSTRUCTIONS FOR SECTION 1



### This section of the questionnaire is designed to collect general operat or information pertinent to Part B, including contact information.

Indicate information that should be treated as confidential by checking the Confidential Business Information (CBI) box next to each question num ber with responses containing CBI. Any response

where "CBI" is not checked will be considered non-confidential unless you have previously indicated that all eligible information should be considered conf idential. Refer to the instructions given in the CONFIDENTIAL BUSINESS INFORMATION section on page iv for additional information regarding EPA's confidentiality procedur es set forth in 40 CFR Part 2, Subpart B.

B1-1. Provide the name, title, telephone and facsimile numbers, and e-mail address of the primary contact at your operation for information supplied in the firm-level financial and economic portions of the questionnaire ( Part B, Section 2)

.

( ) 

### Primary Contact Name Telephone Number

( ) 

### Primary Contact Title Facsimile Number

Convenient time to call between:

Email Address am / pm and

am / pm (Eastern Time)

B1-2. Provide the name, title, telephone and facsimile numbers, and e-mail address of the primary contact at your operation for information supplied in the proj ect-level economic and financial portions of this questionnaire ( Part C ), if different from the primary contact above.

( ) 

### Primary Contact Name Telephone Number

( ) 

### Primary Contact Title Facsimile Number

Convenient time to call between:

Email Address am / pm and

am / pm (Eastern Time) CBI?

Yes

CBI?

Yes

CBI?

YesPart B. Financial and Economic Information

Section 1: Contact Information CBM Questionnaire



### B-2 B1-3. If you know that other fac ilities in your firm have received this questionnaire and would like to reference the firm-level information provided by another respondent, please provide the operator ID (shown at the top of each page of the questionnai re) of the respondent who is submitting Part B Section 2 for your firm:Part B. Financial and Economic Information

Section 2: Firm-Level Financia l Questions CBM Questionnaire



### B-3 Operator ID:

SECTION 2: FIRM-LEVEL FINANCIAL QUESTIONS



### Instructions: Section 2 of this survey is focused primarily on collecting firm-level financial information at the lowest corporate level for whic h it is available or can be reasonably estimated. This level is considered the “immediate owner/op erator.” Most respondents to this detailed questionnaire were identified using a screener survey.

For those who were not asked to respond to a screen er survey, the detailed questionnaire has been sent to the entity that is listed in state oil and gas commission (o r similar agency) databases as the operator of one or more CBM wells within the stat e. Because the survey is focused on the lowest corporate level, the appropriate respondent should be the “immediate owner/operator,” who is the entity responsible for management and/or day-to -day operation of this project and makes the following types of decisions:

• Whether well(s) should be shut-i n, worked over or abandoned.



### • Whether additional or replacement wells should be drilled into a reservoir



### • Whether additional or different producti on equipment should be installed; and



### • Any other decision factor used by DOE in the General Instructions to Form EIA-23 (see also definition of management decisions in the Definitions of Ke y Terms section at the end of the questionnaire).



### If you are an owner who manages a contract opera tor to oversee the operati on of the project or projects, you are still considered the immediate owner/ope rator for the purposes of this questionnaire. EPA is aware that you might need to consult w ith or send portions of this questionnaire to your contract operator fo r assistance in completing the survey.

If you have any concerns that you r organization is not the appropria te respondent for this survey, please contact the EPA help line. As an example, if you have a working interest in one or more CBM wells but do not operate or manage the well or wells yourself, nor do you oversee a contract operator for this work, you will need to contact the EPA help line.

EPA would like at least some minimum informati on on three levels of co rporate hierarchy, if applicable: immediate owner/operator, owner, a nd parent or ultimate parent. Some immediate owner/operators are independent (not owned by a ny other firm). Others have owner firms above them in the hierarchy. The owner firm, in turn, ma y be owned directly or through other intermediate parents by an ultimate parent, which is the highest level of the corporate hierarchy. In many cases, information requested from higher levels of the co rporate hierarchy will include only the names of key corporate entities.

Additionally, some immediate owner/operators are owned by more than one owner firm (e.g., joint ventures). EPA will be requesting only the corporate names of joint owners; financial information will be requested only from the firm created as the joint venture (e.g., a limite d liability corporation).Part B. Financial and Economic Information

Section 2: Firm-Level Financia l Questions CBM Questionnaire



### B-4 Operator ID:

B2-1. Describe the position in the corporate hierarch y of the immediate owner/operator (as defined above). If the location to which this questionnaire was mail ed is, for example, a field office and not considered a separate corporate entity for accounting purposes, you may need to confer with corporate staff to complete Part B, Section 2. In this case, check the box that applies to the lowest level in your corporate hierarchy where accoun ting statements (audited or unaudited) are recorded. This may be at the division level or at a higher firm level, depending on your circumstances. If you are not sure how to answer this question, please contact the EPA help line.

(Choose only one of the following.) Independent owner/oper ator. This firm is not owned or affiliated with any other firm. Skip to

Question B2-4. Joint venture. This firm is owned by at leas t two other firms (not individuals). Continue with

Question B2-2. Division or profit center. This entity is owned by no more than one owner firm, although the owner firm, in turn, might be a subsidiary or a joint venture. Continue with Question B2-2. 

### Subsidiary firm. This firm is owned by no more than one owner firm (portions may be publicly held). The owner firm, in turn, might be a subsidiary or a joint venture, however. Continue with Question B2-2.

B2-2. If the immediate owner/operator is, in turn, ow ned by an owner firm or firms (is not an independent owner/operator), what is the corporate name (o r names, if a joint venture) of the owner(s)?

B2-3. What is the name of the ultimate parent company (or companies, if a joint venture) for the immediate owner/operator? (If there is only one owner firm ab ove the immediate owner/operator, it should be listed in Question B2-2. In this case, please respond “none”.)

B2-4. In 2008, was your highest level of corporate ownership a small business under the Small Business Administration (SBA) definitions ? If you responded to this questi on in EPA’s screener questionnaire, the response you provided at that time has be en transferred to this questionnaire and you do not need to respond further to this question. Otherwise , please refer to page 12 for definitions that may assist in answering this question. If you need fu rther assistance beyond that provided in Part D, please contact the EPA help line. [NOTE: Question will be prepopulated if they provided a screener answer.]

Yes

No CBI?

Yes

CBI?

Yes

CBI?

Yes

CBI?

Yes

CBI?

YesPart B. Financial and Economic Information

Section 2: Firm-Level Financia l Questions CBM Questionnaire



### B-5 B2-5. What is the 6-digit NAICS code for the i mmediate owner/operator? Please refer to page 12 for definitions that may assist in answering this que stion. If you need any further assistance, please contact the EPA help line and EPA will hel p you make this determination.Part B. Financial and Economic Information

Section 2: Firm-Level Financia l Questions CBM Questionnaire



### B-6 Operator ID:

B2-6. Is the immediate owner/operator a contract operator only (owns no working interests in any CBM projects)?

Yes

No

B2-7. What is the organization type of the immediate owner/operator?

C Corporation S Corporation, Limited Liability Corpor ation, or Limited Liability Partnership

Division or Profit Center. Owner firm is a: C Corporation S Corporation, Limited Liability Corpor ation, or Limited Liability Partnership

Other:



### Other:

B2-8. Are you required to use the cost-depletion method (unit of production) in computing your depletion allowance for tax purposes? (That is, you, your owner firm, or your corporate parent is considered a vertically integrated firm under IRS rules.)

Yes

No

B2-9. What was the 2008 employment at the immediate owner/operator? Please include any local contract labor, but do not allocate overhead empl oyment from higher corporate levels.

a. Total 2008 employment was

b. 2008 employment attributable to CBM operations was (estimate if necessary).

B2-10. In 2008, was all produced water from all CBM projects operated by t he immediate owner/operator injected into a receiving formation in a Cl ass II injection well under the UIC program?

Yes. You have completed Section B, Part 2. Continue with Section B, Part 3.

No. Continue with Question B2-14.



### Instructions: The following questions should be answered at the lowest level of firm organization at

which substantial financial decisions are made on CBM operations (e.g., decisions on major capital investments or major production decisions for an individual project, su ch as converting from discharge of produced water to subsurface injecti on, or whether to develop a new or abandon an existing CBM project). This may be the operator or the operator’s owner firm, for example, or even higher in the corporate hierarchy, such as at a parent firm. Questions B2-11 through B2-14 ask for information critical to evaluating CBM project decisions and/or unde rstanding the financial situation reflected in the information provided in this section.

B2-11. Indicate the corporate level at which major in vestment decisions (such as those discussed above) are

made:

Immediate Owner/Operator Owner Firm(s)

Other. Nam e CBI?

Yes

CBI?

Yes

CBI?

Yes

CBI?

Yes

CBI?

Yes

CBI?

YesPart B. Financial and Economic Information

Section 2: Firm-Level Financia l Questions CBM Questionnaire



### B-7 EPA intends to make assumptions about the met hod of capital investment analysis and cost of capital for projects you operate. You can agree to these assumptions if they seem to reflect your operation adequately, or you can pr ovide alternative assumptions if you feel these assumptions are not appropriate to your operation. If this decisi on is made at a higher level and you do not know the answers to these questions, you have the option of indicating you do not know. If you leave the questions unanswered or you indicate that you do not know, EPA will use the assumptions outlined in the questions.Part B. Financial and Economic Information

Section 2: Firm-Level Financia l Questions CBM Questionnaire



### B-8 Operator ID:

B2-12. EPA plans to use a net present value analysis to determine the ex tent to which costs of various produced water alternatives that ar e analyzed affect the profitability of the project, up to and including a finding that it is not economical to install and op erate produced water management alternatives (i.e., a project with an estimated positive net present va lue is estimated to have a negative net present value if additional costs of produced water ma nagement are incurred). (Choose one answer.)

Agree or Don’t Know. We understand EPA will use the assumpti on discussed above. Disagree. We would prefer EPA consider an analysis as descri bed in the comments section on page B-45.

B2-13. EPA plans to use the avera ge pre-tax cost of capital as re commended by OMB, which assumes an average investment risk. With no in flation considered, this rate is 7 percent. This rate corresponds roughly to a 10 percent interest rate, for example, if a 3 percent inflation rate is assumed throughout the time frame of the analysis. (Choose one answer).

Agree or Don’t Know. We understand EPA will use the assumpti on discussed above. Disagree. We would prefer EPA to use the follo wing figure to represent our pre-tax cost of capital. Provide the nominal rate (i.e., do not s ubtract an inflation rate from this figure).

%

B2-14. EPA will also investigate the impact of alter native produced water manag ement costs using a hurdle rate for future projects (the re turn required to underta ke a project). EPA plans to use a hurdle rate (not including inflation) in sensitivity analyses rangi ng from 12% to 22%. This would be equivalent to a

hurdle rate that includes a factor for inflation of roughly 15% to 25% (assuming a 3 percent factor).

Agree or Don’t Know. We understand EPA will use the assumpti on discussed above. Disagree. We would prefer EPA to use the follo wing figure (nominal, including inflation) to represent our hurdle rate:

%



### Instructions: The following questions (B2-15 through B2-25) ask for income statement (through net income) and balance sheet information. Information is requested at the lowest level in the corporate hierarchy at which such information is kept.

B2-15. If you qualify as a small business under SBA definitions and answered YES to Question B2-4, you have the option of providing just your accounting reports or income tax returns (e.g., Schedule C) for the years 2006, 2007, 2008, showing income and bala nce sheet information. EPA will fill out most of the information needed using your accounting reports or returns.

Yes. We are a small business and are opti ng to have EPA prepare the answers to Questions B2-16 to B2-22 for us. We are providing an es timate of the percentage of our earnings (net revenues minus operating costs minus deprecia tion) attributable to CBM production in 2006,
2007, and 2008:

2006: %

2007: %

2008: %. Skip to Question B2-23.

No. Continue with Question B2-16. CBI?

Yes

CBI?

Yes

CBI?

Yes

CBI?

YesPart B. Financial and Economic Information

Section 2: Firm-Level Financia l Questions CBM Questionnaire



### B-9 Operator ID:

B2-16. Instructions: If you are a small business and have opted to have EPA prepare answ ers to Questions
B2-16 to B2-22, please skip to Question B2-23

.

EPA understands that aud ited financial data may not be available at the immediate owner/operator level in the corporate hierarchy, but wishes to assess impacts on the most sensitive portion of the corporation and encourages good faith estimates or unaudi ted financial data if this is what is available at this level. If you are not comfortable with an es timate, you can opt to answer at a higher level, but please answer all income statement questions (Questions B2-16 through B2-19) at the same corporate level. You will be able to use either an es timate or “NA” to apply to some line items that might not be recorded at a division level, if th is is the level at which you are responding.

Income Statement Information: Questions B2-17 through B2-19 ask for revenues, costs and expenses, and earnings, interest, taxes and net income (loss). To the extent possible, provide this

information at the immediate owner/ operator level, whether a profit center or firm. EPA acknowledges that some items, such as depreciation, taxes, and interest might be kept only at a higher corporate level in some cases, although some or all of t hese may be routinely estimated for planning purposes.
In this case, EPA would like thes e estimates. If you can provide all but depreciation, taxes, and interest at the immediate owner/operator level, please do so, using “NA” for depreciation, taxes and interest. Otherwise, information at the next higher le vel (owner firm) is acceptable. Please indicate the corporate level at which these income statement data are being provided.

Immediate Owner/Operator Owner Firm (from Question B2-2) Other (list corporate name):

B2-17. What were your organization’s revenues for 2006-2008? Report in nearest thousands of dollars (i.e., if net sales were $1,253,779, please report as $1,254,000 ; zeroes have been provided already). If you would like EPA to know that y ou estimated any line item, you c an indicate this by checking ( ) the estimate column (Est.).



### Est. Revenues 2006 2007 

### 2008

a. Net sales and other operating revenues (alloperations, including nonoil and gas related revenues) , ,000 , ,000 , ,000

b. Revenues attributable to all oil and gas operations (including CBM) , ,000 , ,000 , ,000

c. Revenues attributable to CBM operations only , ,000 , ,000 , ,000

d. Other income (Specify):

, ,000 , ,000 , ,000

e. Total revenues (a plus d) , ,000 , ,000 , ,000 CBI?

Yes

CBI?

YesPart B. Financial and Economic Information

Section 2: Firm-Level Financia l Questions CBM Questionnaire



### B-10 Operator ID:

B2-18. What were your organization’s operating ex penses for 2006-2008? Report in nearest thousands of dollars (i.e., if operating costs were $1, 253,779, please report as $1,254,000 ; zeroes have been provided already). If depreciation information is not recorded at the corporate level represented in the income statement information provided above, or is not usually estimated for your corporate level, please insert NA. If depreciation is routinely estima ted or you opt to estimate depreciation, please provide the information. If you would like EPA to know that you estimated any line item, you can indicate this by checking ( ) the estimate column (Est.).



### Est. Costs and Expenses 2006 2007 2008

a. Operating costs (all operations) , ,000 , ,000 , ,000

b. Operating costs attributable to all oil and gas operations (including CBM) , ,000 , ,000 , ,000

c. Operating costs attributable to CBM operations only , ,000 , ,000 , ,000

d. Selling, general, and

administrative costs , ,000 , ,000 , ,000

e. Depreciation, depletion, and

amortization , ,000 , ,000 , ,000

f. Royalty payments ,
,000 , ,000 , ,000

g. Severance tax payments ,
,000 , ,000 , ,000

h. Other costs (Specify):

, ,000 , ,000 , ,000

i. Total costs and expenses (a plus d through h) , ,000 , ,000 , ,000 CBI?

Yes

CBI?

YesPart B. Financial and Economic Information

Section 2: Firm-Level Financia l Questions CBM Questionnaire



### B-11 B2-19. What were your organization’s earnings and net income for 2006-2008? Report in nearest thousands of dollars (i.e., if earnings were $1,253,779, please report as $1,254,000 ; zeroes have been provided already). If tax and/or interest information is not recorded at the corporate level represented in the income statement information provided above, or is not usually estimated for your corporate level, please insert NA. If these items are routinely esti mated or you opt to estimate them, please provide the estimates. If you would like EPA to know that y ou estimated any line item, you can indicate this by checking ( ) the estimate column (Est.).



### Est. Earnings and Net Income 2006 2007 2008

a. Earnings before interest and taxes (Question B2-17e minus Question B2-18i) , ,000 , ,000 , ,000

b. Interest expense ,
,000 , ,000 , ,000

c. Federal and state income tax ,
,000 , ,000 , ,000

d. Net income or net loss (a minus b minus c) , ,000 , ,000 , ,000Part B. Financial and Economic Information

Section 2: Firm-Level Financia l Questions CBM Questionnaire



### B-12 Operator ID:

B2-20. Balance Sheet Questions: Questions B2-21 through B2-23 ask for assets, liabilities and equity information, as well as information on payments to principal. EPA acknowledges that balance sheets might be kept only at a higher cor porate level than the income stat ement information provided, in some cases, although some or all of these may be routinely estimated for planning purposes. In this
case, EPA would like these estimate s. If you can provide estimates at the immediat e owner/operator level, please do so. If not, information at the next high er level (owner firm) is preferred to information at higher levels of the corporation, even if at this level, the inform ation is unaudited. Please indicate

the level at which these balance sheet and other data are being provided:

Immediate Owner/Operator Owner Firm (from Question B2-2) Other (list c o

B2-21. What were your company’s assets in 2008? Repo rt in nearest thousands of dollars (i.e., if assets were $1,253,779, please report as $1,254,000 ; zeroes have been provided already). If you would like EPA to know that you estimated any line item , you can indicate this by checking ( ) the estimate column (Est.).



### Est. Assets 2008

a. Current assets , ,000

b. Property, plant, and equipm ent (net of depreciation) , ,000

c. Other assets (net of depreciation) , ,000

d. Total assets (sum of a through c) , ,000

B2-22. What were your company’s liabilities and equity in 2008? Report in nearest t housands of dollars (i.e., if total liabilities were $1,253,779, please report as $1,254,000 ; zeroes have been provided already). If you would like EPA know that you estimated any lin e item, you can indicate this by checking ( ) the estimate column (Est.).



### Est. Liabilities and Equity 2008

a. Current liabilities (including accounts payable, accrued expenses and taxes, and the current portion of long-term debt) , ,000

b. Long-term debt (including bonds, debentures, long-term
leases, bank debt, and all othe r noncurrent liabilities such as deferred income taxes) , ,000

c. Retained earnings , ,000

d. Other owner equity (not in cluding retained earnings) , ,000

e. Sum of liabilities and owner equity (sum of a, b, c, and d) , ,000 CBI?

Yes

CBI?

Yes

CBI?

YesPart B. Financial and Economic Information

Section 2: Firm-Level Financia l Questions CBM Questionnaire



### B-13 Operator ID:

B2-23. This question asks for payments to principal ov er 3 years. Payments to principal are cash outlays made to pay back long-term debt, excluding intere st payments (similar to a mortgage payment, which can also be split between payments to principal a nd interest). These payments should relate to the long-term debts reported in Question B2-22 or th ose shown in the financial statements submitted in response to Question B2-15. Pl ease provide these payments in:

a. 2006? $ , ,000 This is an estimate: (optional check box)

b. 2007? $ , ,000 This is an estimate: (optional check box)

c. 2008? $ , ,000 This is an estimate: (optional check box)

B2-24. The income statement and balance sheet inform ation reflect a fiscal year starting in (month):



### IMPORTANT : If you have provided your financial inform ation in Questions B2-16 through B2-22, submission of financial reports is optiona l and you may skip to Section 3, Part B . Please note that a benefit of submitting your financial reports in addition to completing Questions B2-16 through B2- 22 is that submission of these financial report s may reduce the need for EPA to contact you for clarifications on your answers to Questions B2-16 through B2-22. If, however, you opted to have EPA complete these questions for you as a small business as indicated in Question B2-15, the submission of financial reports or tax returns is not optional

.

B2-25. Please provide financial statements.

Instructions: For those who choose to or must provide such information, please include copies of all

2006-2008 financial statements that would be needed or were used to compile the answers to Questions B2-16 through B2-22 above with your completed questionnaire. These may be accountant reports, annual reports, Federal income tax retu rns (e.g., Schedule C), and/or 10-K reports. Include
income statements, balance sheets, and associated notes for your organization to the extent possible, preferably at the lowest level in the co rporation at which inform ation is kept. If you have included such financial statements, please check the “attached” box.

Attached. CBI?

Yes

CBI?

Yes

CBI?

YesPart B. Financial and Economic Information Section 3: Project-Level Qu estions CBM Questionnaire



### B-14 Operator ID:

SECTION 3: PROJECT-LEVEL QUESTIONS



### Instructions: This section asks for information from the operator of the project or projects identified in Part A, where operator is defined as the pers on responsible for the management and day-to-day operation of this project or projec ts as defined in Section 2 and in the definitions section of this questionnaire. If your project numbers have not been prepopulated in the tables that follow, please use the project identifiers yo u assigned the project in Table A-2.

If you own but do not operate the proj ect in question, and you are not ab le to complete some or all of the information, please contact you r contract operator to obtain answers to questions for Section 3. Alternatively, you may remove Section 2 of the que stionnaire and provide th e remaining portions of the questionnaire to your contract operator. You are responsible for obtaining the questionnaire from your contract operator, recompiling the questionnaire , signing the certificati on pages, and returning the entire questionnaire to EPA.

If your project(s) operates in a reservoir that has been unitize d, please include information only for that portion of the unit you operate , and provide the unit number or other group identifier in Question B3-9.

[Note: Additional copies will be provided if Part A contains more than 3 projects].Part B. Financial and Economic InformationSection 3: Project-Level QuestionsCBM QuestionnaireB-15Operator ID:Table B-1. General Project Information—Projects through YearEnd 2008 [project identifiers will be pre-populated, where possible]QuestionProjectProjectProjectProject Identifier InformationCBI?YesB3-1. Name or Identifier of Project.Prepopulated Prepopulated PrepopulatedCBI?YesB3-2. Name of Field(s). Indicate “unnamed” if no namehas been assigned.CBI?YesB3-3. Is this project considered a wildcat project?YesNoYesNoYesNoCBI?YesB3-4. Does this project commingle CBM withconventional oil and gas or other unconventionalproduction (e.g., tight shale)?NOTE:unless otherwise specified, allfurther questions relating to gasproduction or water production in Part Bpertain to total (conventional,otherunconventional,and CBM) production.Yes. Continue withQuestion B3-5.No.Skip to QuestionB3-9.Yes. Continue withQuestion B3-5.No.Skip to QuestionB3-9.Yes. Continue withQuestion B3-5.No.Skip to QuestionB3-9.CBI?YesB3-5.If you commingle CBM with conventional oiland gas or other unconventional production,what percentage of the gas and water producedfrom this project was extracted from coalbeds in2008 (%) (estimate if necessary)?a. Gas%b. Water%a. Gas%b. Water%a. Gas%b. Water%CBI?YesB3-6.If you commingle CBM withconventional/other production,what was theoil production from this project in 2008 (bbls)?bblsbblsbblsCBI?YesB3-7.If you commingle CBM withconventional/other production,is the averageroyalty rate on this oil the same as that for gas?If no, please provide the royalty rate; if notapplicable or the rate is the same as that forgas, please insert “NA.”%%%CBI?YesB3-8.If you commingle CBM withconventional/other production,in what yeardid conventional/other gas and/or oil productionbegin?Part B. Financial and Economic InformationSection 3: Project-Level QuestionsCBM QuestionnaireB-16QuestionProjectProjectProjectCBI?YesB3-9. Unit Number, or other group identifier (ifrelevant)Skip to Question B3-11 if not part ofa formal unit.CBI?YesB3-10. Indicate the percentage of annual production onthe unit in 2008 associated with your portion ofthe unit (%).%%%Numbers of Wells in Project at Year End 2008CBI?YesB3-11. Total actively producing (water or gas) in 2008.(Note this should match number reported inTable A-2.).VerticalHorizontalVerticalHorizontalVerticalHorizontalCBI?YesB3-12. Total approved drilling permits consideredapplicable to this project in 2008.VerticalHorizontalVerticalHorizontalVerticalHorizontalCBI?YesB3-13. Spudded, drilling, or completed (productionpending) in 2008.VerticalHorizontalVerticalHorizontalVerticalHorizontalCBI?YesB3-14. Inactive (shut in, temporarily abandoned, orother non-productive status, e.g., permanentlyabandoned, during all of 2008).VerticalHorizontalVerticalHorizontalVerticalHorizontalBasic Historic InformationCBI?YesB3-15. Did you initiate development for this project ordid you acquire a project that another operatordeveloped? If you initiated development, enterthe year in which you acquired the first lease. Ifyou acquired all or part of an existing project,enter the year in which you acquired the project.For the purpose of this questionnaire, anyprojects or portions of projects acquired fromanother operator after lease acquisitionbutbefore developmentare considered part of thelease acquisition process. However, if youacquired any projects or portions of projectsafterinitiating development of the first lease tocreate a larger project, complete both the “firstlease acquired” and “acquired project” dates.First Lease AcquiredAcquired Project (if youanswer here, pleaseskipto Question B3-45).First Lease AcquiredAcquired Project (if youanswer here, pleaseskipto Question B3-45).First Lease AcquiredAcquired Project (if youanswer here, pleaseskipto Question B3-45).Part B. Financial and Economic InformationSection 3: Project-Level QuestionsCBM QuestionnaireB-17QuestionProjectProjectProjectCBI?YesB3-16. Did you answer the “first lease acquired ”question with any answer that wasearlier than2004OR did you answer the “project acquired”question?Yes.Skip to QuestionB3-45.No. Continue withQuestion B3-17.Yes.Skip to QuestionB3-45.No. Continue withQuestion B3-17.Yes.Skip to QuestionB3-45.No. Continue withQuestion B3-17.Part B. Financial and Economic InformationSection 3: Project-Level QuestionsCBM QuestionnaireB-18Operator ID:STOP BEFORE PROCEEDING!Please review Part Cof this questionnaire before beginning the remainder ofPart B. Part C covers all costs ofproduced water management after finalgas/water separation. Exclude all of these produced water management costsin Part B Section 3 of this questionnaire.Part B. Financial and Economic InformationSection 3: Project-Level QuestionsCBM QuestionnaireB-19Table B-2 requests additional historic information on your projects. Note that good faith estimates are acceptable, including averages ortypical values, where information is difficult to quantify. You may note if you haveprovided an estimate, where applicable, inthe box tothe far left shown as “Est.”Instructions:If you indicated this project began prior to 2004, or ifyou acquired any portion of the project after development began (i.e.,beyond just lease acquisition),skip to Question B3-45.Otherwise, provide information for Questions B3-17 through B3-44 on projectcosts and timing forany project you initiated as of January 2004 or laterthat you have operated continuously since that time(i.e.,you did not acquire any portion ofthe project in any stage of development beyond lease acquisition). Report dollar amounts innearestthousands of dollars where indicated(i.e., if lease development costs were$1,253,779, please report as $1,254,000; zeroes have beenprovided already). Note: if you have less than 100 percent working interest, providethe financial information for theentireproject,not just your share.Remember to exclude all produced water management costs covered in Part C from Table B-2.One term that EPA uses in this table isunusual expenditures. There might be two types of unusualexpenditures—those that are amortized(i.e., capitalized) and those that areexpensed (i.e., generally considereda part of O&M butthe expendituredoes not occur in every yearand is a relatively large percentage ofO&M). For the purposes of this survey, an unusual expenditure is defined as:1) An expenditure that does not occur every year and that is morethan 10 percent of O&M (e.g., major storm damage causes largeoutlay for repairs); or2) A capitalized one-time or capital cost not considered a leaseacquisition or development cost (e.g. construction of a septicsystem or abuilding not directly associated with production) and is not a cost covered in Part C.If you are uncertain of which cost categoryany of your expenditures belong, you can provide the expenditure(s) with a descriptionin the comments section, or you can contact the EPA help line.Part B. Financial and Economic InformationSection 3: Project-Level QuestionsCBM QuestionnaireB-20Operator ID:Table B-2. Project HistoryQuestionProjectProjectProjectGeneral QuestionsCBI?YesEst.?YesB3-17. Between January 1, 2004 and December 31,2008 (2004-2008), did you do any exploratorydrilling for CBM in the basin in which thisproject is located (including for this project, ifapplicable)?Yes. Continue withQuestion B3-18.No.Skip to QuestionB3-20.Yes. Continue withQuestion B3-18.No.Skip to QuestionB3-20.Yes. Continue withQuestion B3-18.No.Skip to QuestionB3-20.CBI?YesEst.?YesB3-18. In this basin, between 2004 and 2008, whatwas your average exploratory well success ratefor CBM (% of exploratory wells that result in aproject that produces or is expected to producecommercial gas)? (including for this project, ifapplicable)? (%)%%%CBI?YesEst.?YesB3-19. Between 2004 and 2008, what was youraverage cost per well to drill exploratory wellsin this basin (including for this project, ifapplicable)?$ , ,000$ , ,000$ , ,000Lease Acquisition CostsCBI?YesEst.?YesB3-20. Sum of lease acquisition amounts, 2004-2008.Include legal and administrative costs butexclude lump sum payments or cost ofamenities provided to surface owners. ($000)$ , ,000$ , ,000$ , ,000CBI?YesEst.?YesB3-21. Year(s) of lease(s) acquisition (e.g., 2004,2005).CBI?YesEst.?YesB3-22. Totallump sum(2004-2008) paymentsassociated with securing the leases other thanthose to mineral rightsowners, such as thoseto surface owner(s) (all leases). Also includetotal costs incurred to provide surface ownerswith amenities in lieu of lump sum payments.Do not include royalties, rents, or otherrecurring payments. ($000)$ , ,000$ , ,000$ , ,000Part B. Financial and Economic InformationSection 3: Project-Level QuestionsCBM QuestionnaireB-21QuestionProjectProjectProjectLease Development CostsCBI?YesEst.?YesB3-23. Total one-time outlays on project developmentthrough December 31,2007Include allplanning, geological and geophysical costs,and any site development costs not included asdrilling costs (see definition of well drilling costsin Appendix D). Exclude all permit costs,drilling costs (as defined in Appendix D),stimulations, recompletions, and any costs forwater management systems included inPart C). Note: 2008 data is requested later.($000).$ , ,000$ , ,000$ , ,000CBI?YesEst.?YesB3-24. Total costs of all well drilling through December31, 2007 (through tophole equipment, e.g.,Christmas tree); see definition of drilling costsin Appendix D ($000). Do not includerecompletions. Note: 2008 data is requestedlater.$ , ,000$ , ,000$ , ,000CBI?YesEst.?YesB3-25. Total costs of permit application fees andassociated costs to prepare permit applications(e.g., one-time costs to perform permit-relatedstudies, etc.) through end of 2007. (Do notinclude ongoing costs of monitoring,recordkeeping, and reporting or any costsrelated to produced water managementpermitting, e.g., NPDES or UIC permits,covered in Part C.) ($000)$ , ,000$ , ,000$ , ,000Project Development ScheduleCBI?YesEst.?YesB3-26. Year site preparation work began (e.g., 2004).CBI?YesEst.?YesB3-27. Year drilling began.CBI?YesEst.?YesB3-28. Year water production began.Part B. Financial and Economic InformationSection 3: Project-Level QuestionsCBM QuestionnaireB-22QuestionProjectProjectProjectCBI?YesEst.?YesB3-29. Year CBM gas production began (do notinclude conventional gas or oil or otherunconventional production, if applicable).CBI?YesEst.?YesB3-30. Year of peak water production (NA if waterproduction has not yet peaked).CBI?YesEst.?YesB3-31. Water produced in peak year (bbls) (NA ifwater production has not yet peaked).bblsbblsbblsCBI?YesEst.?YesB3-32. Year of peak gas production (CBM andconventional oil and gas or otherunconventional production, if applicable) (NA ifgas production has not yet peaked).CBI?YesEst.?YesB3-33. Gas produced in peak year (MMBtu) (CBM andconventional/other production, if applicable)(NA if gas production has not yet peaked).MMBtuMMBtuMMBtuOperating and Maintenance Costs of ProjectCBI?YesEst.?YesB3-34. In 2004 through 2007, what were your O&Mcosts for this project by year? Include anyregularly recurring costs, such as labor andenergy costs, lease rental costs, annualpayments to surface owners, or recurring costsassociated with permits (e.g., monitoring,recordkeeping and reporting or other suchpayments) that are not related to producedwater management. Exclude all costs ofproduced water management covered inPart C. Also exclude any costs of workovers,stimulations, recompletions, or other activities ifthese are consideredunusual expendituresand reported in Questions B3-35 or B3-44 (seedefinition ofunusual expendituresin theinstructions to Table B-2 or in the Part D,Definition of Key Terms). If your project wasnot active in a year shown, please indicate withNA. ($000)2004: $ , ,0002005: $ , ,0002006: $ , ,0002007: $ , ,0002004: $ , ,0002005: $ , ,0002006: $ , ,0002007: $ , ,0002004: $ , ,0002005: $ , ,0002006: $ , ,0002007: $ , ,000Part B. Financial and Economic InformationSection 3: Project-Level QuestionsCBM QuestionnaireB-23QuestionProjectProjectProjectOther Expenditures Associated with ProjectCBI?YesEst.?YesB3-35. What was the total cost of workovers,stimulations, and recompletions through yearend 2007 ($000)? If not incurred, indicate 0. Ifany of these activities is considered routineO&M and was included in Question B3-34,indicate NA:WorkoversStimulationsRecompletions$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000CBI?YesEst.?YesB3-36. Total number of such activities through yearend 2007. If not incurred indicate 0. If any ofthese activities is considered routine O&M andwas included in Question B3-34, indicate NA:WorkoversStimulationsRecompletionsCBI?YesEst.?YesB3-37. Were any one-time outlays onunusualexpendituresfor amortized items incurred as ofyear end 2007 on this project that were notincluded in development or drilling costs(Questions B2-23 and B2-24) or in B3-35 asstimulations and recompletions? (See definitionofunusual expendituresabove in instructionsto Table B-2.)Yes. Continue withQuestion B3-38.No.Skip to QuestionB3-41.Yes. Continue withQuestion B3-38.No.Skip to QuestionB3-41.Yes. Continue withQuestion B3-38.No.Skip to QuestionB3-41.CBI?YesEst.?YesB3-38. If you incurredunusual expendituresthat wereamortized, what were they for? If more space isneeded, please use the comments page at theend of this section.Part B. Financial and Economic InformationSection 3: Project-Level QuestionsCBM QuestionnaireB-24QuestionProjectProjectProjectCBI?YesEst.?YesB3-39. When did theseunusual expendituresthatwere amortized occur (Year, e.g., 2004)? Ifmore space is needed, please use thecomments page at the end of this section.CBI?YesEst.?YesB3-40. What was your one-time total outlay on theseunusual expenditureamortized items? ($000) Ifmore space is needed, please use thecomments page at the end of this section.$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000CBI?YesEst.?YesB3-41. Were any otherunusual expendituresfor O&Mincurred as of year end 2007 on this projectthat you excluded in Question B3-34 (O&Mcosts) but did not include in Question B3-35(workovers, stimulations, recompletions)? Donot include produced water costs reported inPart C. See definition ofunusual expendituresin instructions to Table B-2.Yes. ContinueQuestion B3-42.No.Skip to QuestionB3-45 (Table B-3).Yes. ContinueQuestion B3-42.No.Skip to QuestionB3-45 (Table B-3).Yes. ContinueQuestion B3-42.No.Skip to QuestionB3-45 (Table B-3).CBI?YesEst.?YesB3-42. If you incurredunusual expendituresfor O&Mcosts, what were they for? If more space isneeded, please use the comments page at theend of this section.CBI?YesEst.?YesB3-43. When did theseunusual expendituresfor O&Moccur (Year, e.g., 2004)? If more space isneeded, please use the comments page at theend of this section.CBI?YesEst.?YesB3-44. How much did theseunusual expendituresforO&M cost? ($000) If more space is needed,please use the comments page at the end ofthis section.$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000Part B. Financial and Economic InformationSection 3: Project-Level QuestionsCBM QuestionnaireB-25Operator ID:Table B-3 requests information about your project in 2008.Note that good faith estimates, includingaverages or typical values, whereinformation is difficult to quantify are acceptable. Please note if you have provided anestimate, where applicable, in the boxto the far leftshown as “Est.”Instructions:Respond to questions forall projects, regardless of when the project began development or when you acquired the project.Report large dollar amounts in nearest thousands of dollars where indicated (i.e.,if fixed operating costs were $1,253,779, please report as$1,254,000; zeroes have been provided already).Note: if you have less than 100 percentworking interest, provide the financialinformation for theentireproject, not just your share.Remember to exclude all produced water management costs covered in Part C from Table B-3.One term that EPA uses in this table isunusual expenditures. There might be two types of unusualexpenditures—those that are amortized(i.e., capitalized) and those that areexpensed (i.e., generally considereda part of O&M butthe expendituredoes not occur in every yearand is a relatively large percentage ofO&M). For the purposes of this survey, an unusual expenditure is defined as:1) An expenditure that does not occur every year and that is morethan 10 percent of O&M (e.g., major storm damage causes largeoutlay for repairs); or2) A capitalized one-time or capital cost not considered a leaseacquisition or development cost (e.g., construction of a septic system ora building not directly associated with production) and is not a cost covered in Part C.If you are uncertain of which cost categoryany of your expenditures belong, you can provide the expenditure(s) with a descriptionin the comments section, or you can contact the EPA help line.Part B. Financial and Economic InformationSection 3: Project-Level QuestionsCBM QuestionnaireB-26Operator ID:Table B-3. Current (2008) Operations at Your ProjectsQuestionProjectProjectProjectGeneral InformationCBI?YesEst.?YesB3-45. If this is a single lease project, indicate type oflease (fee, federal, state, tribal, other) andskipto Question B3-47. Otherwise indicate NAand answer B3-46.CBI?YesEst.?YesB3-46. If this is a unit ormulti-lease project, list thenumber of each type of lease.FeeFederalStateTribalOtherFeeFederalStateTribalOtherFeeFederalStateTribalOther2008 Drilling ExpendituresCBI?YesEst.?YesB3-47. What was the total cost of all well drilling in thisproject in 2008 (excluding recompletions)? Seedefinition of drilling cost in Appendix D. ($000)$ , ,000$ , ,000$ , ,000CBI?YesEst.?YesB3-48. What was the total number of all wells drilled inthis project in 2008 (excluding recompletions)?2008 Project Development CostsCBI?YesEst.?YesB3-49. What was the total outlay on all activitiesrelated to project development in 2008?Exclude drilling costs, stimulation costs andany produced water management costs thatare reported in Part C. Also exclude any leaseacquisition costs if included in Table B-2.($000)$ , ,000$ , ,000$ , ,000Part B. Financial and Economic InformationSection 3: Project-Level QuestionsCBM QuestionnaireB-27QuestionProjectProjectProject2008 Operating and Maintenance Costs of ProjectCBI?YesEst.?YesB3-50. What were your 2008 total operating andmaintenance costs of gas production? Includeany regularly recurring costs, such as laborand energy costs, lease rental costs, annualpayments to surface owners, or recurring costsassociated with permits (e.g., monitoring,recordkeeping and reporting or other suchpayments) that are not related to producedwater management. Exclude all costs ofproduced water management covered inPart C. Also exclude any costs of workovers,stimulations, recompletions, or other activitiesif these are consideredunusual expendituresand reported in Questions B3-52 or B3-58 (seedefinition ofunusual expendituresin theinstructions to Table B-3 or in the Part D,Definition of Key Terms). ($000).$ , ,000$ , ,000$ , ,000CBI?YesEst.?YesB3-51. In 2008, please estimate the percentage ofO&M costs that would have been incurred hadthe project been temporarily shut in throughoutthe year. This factor should account for anylabor to check on equipment, any annualpayments to surface owners, leaseholdpayments, permit costsnot related to producedwater management or other expenditures thatmight occur regardless of production. EPA willassume this percentage is 5 percent of total2008 O&M unless you specify otherwise.We estimate%We accept the 5%estimateWe estimate%We accept the 5%estimateWe estimate%We accept the 5%estimateOther Expenditures Associated with ProjectPart B. Financial and Economic InformationSection 3: Project-Level QuestionsCBM QuestionnaireB-28QuestionProjectProjectProjectCBI?YesEst.?YesB3-52. What was the total cost of workovers,stimulations, and recompletions in 2008($000)? If not incurred, indicate 0. If any ofthese activities is considered routine O&M andwas included in Question B3-50, indicate NA:WorkoversStimulationsRecompletions$ , ,000$ , ,000$, , ,000$ , ,000$ , ,000$, , ,000$ , ,000$ , ,000$, , ,000CBI?YesEst.?YesB3-53. Were any one-time outlays onunusualexpendituresfor amortized items incurred onthis project in 2008 that were not included indevelopment or drilling costs (Questions B3-47or B3-49) or in Question B3-52 understimulations or recompletions? (See definitionof unusual expendituresin instructions to TableB-3.) Exclude any costs for produced watermanagement that are included in Part C.Yes. Continue withQuestion B3-54.No.Skip to QuestionB3-56.Yes. Continue withQuestion B3-54.No.Skip to QuestionB3-56.Yes. Continue withQuestion B3-54.No.Skip to QuestionB3-56.CBI?YesEst.?YesB3-54. If you incurredunusual expendituresforamortized items, what were they for? If morespace is needed, please use the commentspage at the end of this section.CBI?YesEst.?YesB3-55. What was the total one-time outlay on theseunusual expenditureamortized items? ($000) Ifmore space is needed, please use thecomments page at the end of this section.$ , ,000$ , ,000$, , ,000$ , ,000$ , ,000$, , ,000$ , ,000$ , ,000$, , ,000Part B. Financial and Economic InformationSection 3: Project-Level QuestionsCBM QuestionnaireB-29QuestionProjectProjectProjectCBI?YesEst.?YesB3-56. Were any otherunusual expendituresfor O&Mincurred on this project as of year end 2008 onthis project that you excluded in Question B3-50 (O&M costs) but did not include in QuestionB3-52 (workovers, stimulations,recompletions)? Do not include producedwater costs reported in Part C. See definitionofunusual expendituresin instructions to TableB-3.Yes. Continue withQuestion B3-57.No.Skip to QuestionB3-59.Yes. Continue withQuestion B3-57.No.Skip to QuestionB3-59.Yes. Continue withQuestion B3-57.No.Skip to QuestionB3-59.CBI?YesEst.?YesB3-57. If you incurredunusual expendituresfor O&M,what were they for? If more space is needed,please use the comments page at the end ofthis section.CBI?YesEst.?YesB3-58. How much did theseunusual expendituresforO&M cost? ($000) If more space is needed,please use the comments page at the end ofthis section.$ , ,000$ , ,000$, , ,000$ , ,000$ , ,000$, , ,000$ , ,000$ , ,000$, , ,0002008 Production, Royalties, and TaxesCBI?YesEst.?YesB3-59. What was the totalgas production from thisproject in 2008? (MMBtu)MMBtuMMBtuMMBtuCBI?YesEst.?YesB3-60. What was the total gassold from this project in2008? (MMBtu)MMBtuMMBtuMMBtuCBI?YesEst.?YesB3-61. What was the total gasused by this project in2008? (MMBtu)MMBtuMMBtuMMBtuCBI?YesEst.?YesB3-62. What was the minimum, average, andmaximum wellhead price received for sold gasfor this project in 2008? ($.$$/MMBtu)$min$average$max$min$average$max$min$average$maxPart B. Financial and Economic InformationSection 3: Project-Level QuestionsCBM QuestionnaireB-30QuestionProjectProjectProjectCBI?YesEst.?YesB3-63. What was this project’s total water productionin 2008? (Provide estimate if this was notmeasured.) (bbls)bblsbblsbblsCBI?YesEst.?YesB3-64. What was your average working interest sharefor this project in 2008? (%)%%%CBI?YesEst.?YesB3-65. What was the average gas royalty rate for thisproject in 2008 (among all parties over allleases, including surface owner if relevant)?(%)%%%CBI?YesEst.?YesB3-66. What were the totalseverance taxes from thisproject in 2008? (% or $000)%$ , ,000%$ , ,000%$ , ,000CBI?YesEst.?YesB3-67. Were there any other taxes such as advalorem or production shares associated withthis project? Provide dollar amount and/orpercent and describe:%$ , ,000%$ , ,000%$ , ,000Reserves InformationCBI?YesEst.?YesB3-68. Do you report reserves information to SEC orto DOE using the EIA Form 23 survey?Yes. Continue withQuestion B3-69.No.Skip to QuestionB3-71.Yes. Continue withQuestion B3-69.No.Skip to QuestionB3-71.Yes. Continue withQuestion B3-69.No.Skip to QuestionB3-71.CBI?YesEst.?YesB3-69. What is the estimated remaining provedreserves associated withthis project as ofDecember 31, 2008? (Prorate field estimatesto project, where necessary, and specify unitsused and estimation method.)Specify units (e.g., MMcf):Estimation Method:SEC Definition of Proved ReservesOther:Part B. Financial and Economic InformationSection 3: Project-Level QuestionsCBM QuestionnaireB-31QuestionProjectProjectProjectCBI?YesEst.?YesB3-70. What discount rate and wellhead price wasused for this proved reserve estimate?$at%$at%$at%CBI?YesEst.?YesB3-71.If available, what is the estimated remainingtechnically recoverable reserves (year end2008)? (Prorate field estimates to project,where necessary, and specify units used, e.g.MMcf.) Indicate NA if you do not computetechnically recoverable reserves.Specify units (e.g., MMcf):CBI?YesEst.?YesB3-72.If available, what is the projected remainingproductive life of this project in the technicallyrecoverable reserves estimate? (years)yearsyearsyearsCBI?YesEst.?YesB3-73. What was the cumulative gas production at2008 year end for this project?Specify units (e.g., MMBtu):CBI?YesEst.?YesB3-74. What was the cumulative water production at2008 year end for this project (estimate if notmeasured)?Specify units (e.g., thousand bbls):Part B. Financial and Economic Information Section 3: Project-Level Qu estions CBM Questionnaire



### B-32 Operator ID:



## Questions for Project

[One copy will be provided for each project in Part A.]

FUTURE COSTS AND REVENUES



### Instructions: EPA will need to project costs and revenue s of this project over the next 10 years. EPA acknowledges that projections beyond 5 years ar e very uncertain and will project information beyond the 5 year horizon, unless re spondents prefer to provide t hose estimates themselves. You have several options for provi ding projection information:

1) Provide your own estimate of costs and rev enues at the project over the next 5 years or through the end of your planning horizon (at l east 3 years, including 2009, 2010, and 2011) in
Table B-4;

2) Accept certain assumptions EPA would plan to make in lieu of using your projections;

3) Provide your 5-year projection in Table B-4 plus an additional 5-year projection beyond the fifth year, which you can attach to the questionnaire separately;

4) Use a combination of any of these.



### For respondents choosing not to do their own pr ojections or choosing onl y to project certain information, EPA will rely on state information on production for the wells in your project to determine a production profile, wher e possible, information provided by other respondents to this questionnaire, and/or best professional judgment. For any item you feel that EPA’s assumptions will not work for your project, you can fill out those item s in the 5-year projection table (or provide a 10- year projection, if you choose) for any of Questi ons B3-87 to B3-102 in Table B-4. Please check which overall option you have chosen and follow th e instructions associated with the options you

have selected.

B3-75. Please indicate how you would like to handle projec tions of project data requested in the remainder of this questionnaire. Check any that apply.

We request EPA make some or all of these projections based on the information provided below in Questions B3-76 through B3-86 for any items for which we have not provided a projection for in Table B-4. Instructions: Please complete Questions B3-76 through B3-86 for this project. You do not have to complete Tabl e B-4, which asks for up to 5 years of yearby-year projections, unless y ou have opted out of certain as sumptions and have chosen to provide a projection for one or more line items.

We will be skipping Questions B3-76 through B3-86 a nd will provide year-b y-year projection data for three to five years in Table B-4. Instructions: Please fill out Table B-4 for as many years as you have in your pl anning horizon. EPA is requesting your best judgment on these projections; the Agency is aw are that projections are not ce rtain. If the number of years requested exceeds your planning horizon, please indicate with NA in any remaining years. You may provide projections that include an assumption for inflation but provide that assumption in Question B3-102.

We have attached additional projections out to 10 years for some or all of the information shown in Table B-4 to this questionnaire. If your projections include an assumption for inflation, make sure to show that assu mption explicitly in your attachments. CBI?

YesPart B. Financial and Economic Information Section 3: Project-Level Qu estions CBM Questionnaire



### B-33 Operator ID:



### Instructions: EPA will make projections from 2008 or beyond your planning horizon (as shown in your responses to Table B-4) based on your answ ers to the following que stions, your reported 2008 data, and any information provided in Table B-4. Please provide information to the extent possible without considering the effects of inflation. If this is not possibl e, please note the inflation rate inherent in your answers in the Comments Secti on in Question B3-102. If you have provided some projections in Table B-4, EPA will assume furt her projections based on your answers to the following questions and/or either your last year’s reported values in Table B-4 or the patterns seen in the projections provided (assuming at least 3 years’ projections have been provided). For any of the Questions B3-76 through B3-86 that have not been answered and for which alternative information has not been provided in Table B-4 or attached to this questionnaire, EPA will assume you have agreed to EPA’s approach.

For the few projects where conventional oil is also produced, EPA will make the oil production projections and price projections, unless you provide oil production curves and/or other information with your questionnaire.

B3-76. Please provide the numbers of wells you plan to drill in this project over the next 5 years by year. If any years are beyond your planning horiz on, please indicate with “NA.”

2008 2011

2009 2012

2010

B3-77. In what year do you estimate drilling will be co mpleted for this project, bas ed on your cu rrent plans (and barring any changes in regulations, changes in your assumptions about future gas prices, etc.)

B3-78. EPA will use estimated costs of drilling based on data collected in this questionnaire of the CBM industry, publicly available inform ation, and best engineering judgments as specific to your basin as possible to project drilling costs over 10 years. EPA will also assume drilling costs per well will not change by more than ordinary inflation (estimated as a function of the recent historic Producer Price Index for the oil and gas extraction industry) over the 10-year period (check any that apply):

We agree to this approach.

We would like EPA to use the followi ng average cost per well for drilling:

$ per well ($2008)

We would prefer EPA to cons ider the following factor incremental to inflation to represent drilling cost increases greater than in flation over time at our project:

$ % per year

B3-79. At this point in time, using your current as sumptions about wellhead prices, how much longer would you expect this project to produce economically?

We shut in this project in 2008. 

### We shut in this project in 2009 or we plan to shut in this project in 2009.

From one to 3 years. CBI?

Yes

CBI?

Yes

CBI?

Yes

CBI?

YesPart B. Financial and Economic Information Section 3: Project-Level Qu estions CBM Questionnaire



### B-34 More than 3 years but less than or equal to 5 years. More than 5 years but less than or equal to 8 years. More than 8 years but less than or equal to 10 years. More than 10 years.

Unknown.Part B. Financial and Economic Information Section 3: Project-Level Qu estions CBM Questionnaire



### B-35 Operator ID:

B3-80. EPA will use gas production data found in state reported production data to create gas production profiles for this project. Note that EPA has little to no historic gas producti on information from Indiana and Illinois and very dated informatio n from Pennsylvania, so produc tion curves from operators in these states would be especially appreciated. If hi storic gas production data for this project are not publicly available, or if your project is too new to provide much information to create a production profile, EPA will use information that might be generated by this questi onnaire considered likely to be most representative of your project, general inform ation on gas production prof iles from the state or other published sources, and, if necessary, professional judgment or information from other, similar basins (if relevant) to create the gas pr oduction profile from this project.

We agree to this approach. We have attached a gas production curve for this project. We have attached a gas production curve for a typical well in this project. We have projected our gas volumes for this project in Table B-4. Other approach (provide information in comments section).

B3-81. EPA will use water production data found in stat e reported production data to create produced water production profiles for this proj ect. Note that EPA does not have any well-specific or lease-specific produced water production informatio n from state agencies in the following states: Arkansas, Kansas, Illinois, Indiana, Ohio, Oklahoma, and West Virginia . Also, if water reporting is voluntary and you do
not report water to your state agency, EPA will not have this informat ion. Production curves, or any other production data, from operators in states where production data might be missing would be especially appreciated If historic water production data for this project are not publicly available, or if your project is too new to prov ide much information to create a production profile, EPA will use information that might be generated by this questionnaire considered lik ely to be most representative of your project, general information on water produ ction profiles from the state or other published sources, and, if necessary, profes sional judgment or information from other states in the same or similar basins (if relevant) to create the water production profile from this project.

We agree to this approach. We have attached a water production curve for this project. We have attached a water production curve for a typical well in this project. We have projected our water volumes for this project in Table B-4. Other approach (provide information in comments section)

B3-82. EPA will use frequency of work overs, stimulations, and recompleti ons based on data collected in this questionnaire of the CBM industry , publicly available information, and best engineering judgments as specific to your basin as possible to projec t such activities in EPA’s 10-year projection:

We agree to this approach.

We prefer to provide EPA with workover frequen cies specific to our project. On average, a well in this project is worked over:

time(s) per 10-year period (note that fractions are acceptable).



### We prefer to provide EPA with stimulati on frequencies specific to our project. On average, a well in this project is stimulated:

time(s) per 10-year period (note that fractions are acceptable).

We prefer to provide EPA with recompletion frequ encies specific to our project. On average, a well is recompleted:

time(s) per 10-year period (note that fractions are acceptable). CBI?

Yes

CBI?

Yes

CBI?

YesPart B. Financial and Economic Information Section 3: Project-Level Qu estions CBM Questionnaire



### B-36Part B. Financial and Economic Information Section 3: Project-Level Qu estions CBM Questionnaire



### B-37 Operator ID:

B3-83. EPA will use estimated costs of workovers, stimulati ons, and recompletions ba sed on data collected in this questionnaire of the CBM industry, public ly available information, and best engineering judgments as specific to your basi n as possible to project costs of such activities in EPA’s 10-year projection:

We agree to this approach.

We prefer to provide EPA with work over costs specific to our project.

Average workover cost per well ($2008): $

We prefer to provide EPA with stimul ation costs specific to our project.

Average stimulation cost per well ($2008): $

We prefer to provide EPA with recomp letion costs specific to our project.

Average recompletion cost per well ($2008): $

B3-84. EPA will use the range and average well head pric es reported for your project, along with similar information from other projects in the vicinity of your project, DOE projections of wellhead prices from the current EIA’s Annual Energy Outlook, historic gas prices at Henry Hub, and other publicly available information to project wellhead gas price over the next 10 years at your project. EPA will take into account basin-specific infrastructu re projections, well drilling projections, and other information to identify trends in future basin diffe rentials. Sensitivity analyse s will also be run using low and high wellhead prices based on DOE’s low and high wellhead price projections.

We agree to this approach. We have provided a projection of wellhead price in Table B-4. We have provided additional information in comments that we think should be used in computing this project’s projected wellhead price.

B3-85. Using the percentage provided in Question B3 -51 to split 2008 O&M costs (excluding produced water management costs) between fixed and variable costs, EPA will assu me your existing variable O&M costs for this project (estimated on a per MMBtu bas is) and your existing fixed costs (estimated on a per-year basis) will not vary over the 10- year projection, assuming no inflation.

We agree to this approach. We have provided a projection of O&M costs for this project (excluding produced water management) in Table B-4. We have provided additional information in comments that we think should be used in computing this project’s projected O&M costs for this project.

B3-86. Please use the space below to add any addition al comments you think might be useful to EPA in understanding what issues might affect costs in t he next few years, particularly changes to state regulations that may be pending, competition for drilli ng rigs, changes in infras tructure availability, changes to royalty rates or severance, etc. CBI?

Yes

CBI?

Yes

CBI?

Yes

CBI?

YesPart B. Financial and Economic Information Section 3: Project-Level Qu estions CBM Questionnaire



### B-38Part B. Financial and Economic InformationSection 3: Project-Level QuestionsCBM QuestionnaireB-39Operator ID:If you will not be continuing with Table B-4,please proceed to Part C of this questionnaire. Note: you do not need to indicatewhether theitems in Table B-4 are estimates; EPA will assume all entries are estimates and acknowledges that such estimates are speculative.Report large dollar amounts in nearest thousands of dollars where indicated (i.e., if additional capital expenditures are expected to be$1,253,779, please report as $1,254,000; zeroes have been provided already). If you are providing information ona project that alsoproduces conventional oil, and wishto provide projections of oilproduction and oil prices, pleasedo so in an attachment or in thecomments section in Question B3-103.Remember to exclude all produced water management costs covered in Part C from Table B-3.One term that EPA uses in this table isunusual expenditures. There might be two types of unusualexpenditures—those that are amortized(i.e., capitalized) and those that areexpensed (i.e., generally considereda part of O&M butthe expendituredoes not occur in every yearand is a relatively large percentage ofO&M). For the purposes of this survey, an unusual expenditure is defined as:1) An expenditure that does not occur every year and that is more than 10 percent of O&M (e.g., major storm damage causeslarge outlay for repairs); or2) A capitalized one-time or capital costnot considered a lease acquisition or development cost (e.g. construction of a septicsystem or a building not directlyassociated with production) and isnot a cost covered in Part C.If you are uncertain of which cost categoryany of your expenditures belong, you can provide the expenditure(s) with a descriptionin the comments section, or you can contact the EPA help line.Part B. Financial and Economic InformationSection 3: Project-Level QuestionsCBM QuestionnaireB-40Operator ID:Table B-4. Projections of Costs and Production over 5 YearsQuestion200920010201120122013CBI?YesB3-87. What do you estimate yourtotal operating andmaintenance costs of gasproduction will be in 2009-2013? Include any regularlyrecurring costs, such as laborand energy costs, lease rentalcosts, annual payments tosurface owners, or recurringcosts associated with permits(e.g., monitoring,recordkeeping and reporting orother such payments) that arenot related to produced watermanagement. Exclude allcosts of produced watermanagement covered inPart C. Also exclude any costsof workovers, stimulations,recompletions, or otheractivities if these areconsideredunusualexpendituresand reported inQuestions B3-91 or B3-96 (seedefinition ofunusualexpendituresin the instructionsto Table B-4 or in the Part D,Definition of Key Terms).($000).$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000Drilling Expenditure ScheduleCBI?YesB3-88. Estimated number of wellsdrilled annually (excludingrecompletions).Part B. Financial and Economic InformationSection 3: Project-Level QuestionsCBM QuestionnaireB-41Question200920010201120122013CBI?YesB3-89. Estimated total drilling costsincurred, excludingrecompletions, by year. (Seedefinition of drilling costs inAppendix D.) ($000).$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000Additional ExpendituresCBI?YesB3-90. Estimated number of thefollowing activities: (if notexpected to occur indicate 0. Ifany of these activities isconsidered routine O&M andwas included in Question B3-87 indicate “NA”):WorkoversStimulationsRecompletionsCBI?YesB3-91. Estimated total cost ($000) ofthe following activities in eachyear (if not expected to occurindicate 0. If any of theseactivities is considered routineO&M and was included inQuestion B3-87 indicate “NA”):WorkoversStimulationsRecompletions$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000Part B. Financial and Economic InformationSection 3: Project-Level QuestionsCBM QuestionnaireB-42Question200920010201120122013CBI?YesB3-92. Estimated additional projectdevelopment expendituresincurred (excluding well drillingcosts, costs reported inQuestion B3-91, and producedwater gathering andmanagement costs), by year($000).$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000CBI?YesB3-93. Estimated new permit orpermit renewal costs(excluding produced watermanagement related permits,such as NPDES and UICpermits).$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000CBI?YesB3-94. Total one-time outlays onunusual expendituresforamortized items in each yearthat are not included asdevelopment or drilling costs inQuestions B3-89 or B3-92 orincluded as stimulation orrecompletion costs in QuestionB3-91. (See definition ofunusual expendituresabove ininstructions to Table B-4).Exclude those costs that areassociated with producedwater management as coveredin Part C.If more space isneeded, please use thecomments page at the end ofthis section.$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000CBI?YesB3-95. Description ofunusualexpenditureson amortizeditems included in B3-94 above.If more space is needed,please use the commentspage at the end of this section.Part B. Financial and Economic InformationSection 3: Project-Level QuestionsCBM QuestionnaireB-43Question200920010201120122013CBI?YesB3-96.Other unusual expendituresforO&M not included in QuestionB3-87 (O&M costs) or inQuestion B3-91 (workovers,stimulations, recompletions)(See definitionof unusualexpendituresabove ininstructions to Table B-4).Exclude those costs that areassociated with producedwater management as coveredin Part C.If more space isneeded, please use thecomments page at the end ofthis section.$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000CBI?YesB3-97. Description ofunusualexpendituresincluded in B3-96above. If more space isneeded, please use thecomments page at the end ofthis section.Production ScheduleCBI?YesB3-98. What is your projection of gasproduction at this project?(MMBtu/yr)$MMBtu $MMBtu $MMBtu $MMBtu $MMBtuCBI?YesB3-99. What is your projection ofwater production at thisproject? (bbls/yr)$bbls $bbls $bbls $bbls $bblsCBI?YesB3-100. What wellhead price of gashave you used to project gasproduction? ($.$$/MMBtu)$MMBtu $MMBtu $MMBtu $MMBtu $MMBtuCBI?YesB3-101. What is your projection ofseverance and otherproduction taxes? ($000)$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000Part B. Financial and Economic InformationSection 3: Project-Level QuestionsCBM QuestionnaireB-44Question200920010201120122013CBI?YesB3-102. What inflation rate are youusing in these projections(including expenditureprojections)? If using morethan one inflator for differentcost items, use the commentssection to specify (%).Part B. Financial and Economic Information Section 3: Project-Level Qu estions CBM Questionnaire



### B-45 Operator ID: Copy of

B3-103. Comments on Part B. Please cross-reference your comments by question number. If you need additional space, please photocopy this page before writing on it , and number each copy in the space provided.



### Question

Number Comment

CBI?

Yes

CBI?

Yes

CBI?

Yes

CBI?

Yes

CBI?

Yes

CBI?

Yes

CBI?

Yes

CBI?

Yes

CBI?

Yes

CBI?

Yes

CBI?

Yes

CBI?

Yes

CBI?

YesPart C. Produced Water Management Information Section 1: General Operator Information CBM Questionnaire



### C-1 Operator ID:



### PART C. PRODUCED WATER MANAGEMENT INFORMATION

INSTRUCTIONS FOR PART C (Techni cal Portion of Questionnaire)

Read all question-specific instructions and definitions of key terms (Part D).

Data may be submitted as clearly marked el ectronic attachments to this questionnaire.

Complete this part of the questionnaire fo r only the projects listed in Part A

.

You may need to make copies of some PAGES before responding. Some pages in Part C of the questionnaire will need to be photocopied before you respond. Indicate how many copies of the PAGE you are submitting by completing the entry “Copy ___ of ___” in the top right corner.

Not all questions will be applicable to every operator. EPA prepared Part C of the questionnaire to be applicable to a variety of operators; therefore, not all of the questions will apply to every operator. Complete each relevant item in the questionnaire.

Mark responses for each question. Fill in the appropriate response(s) to each question. Please use

black ink or type in the spaces provided. Answer the questions in sequence unless you are directed to SKIP. Do not leave any entry blank. If the answer is zero, write “0" or “zer o”. If a question is not applicable to your operations, write “NA.” EPA in tends that responses to all questions be based upon available data and information. Please provide be st estimates when exact data are not available. If you provide an estimate, note the methods that we re used to make the estimate, along with the section and question number that th e estimate refers, on the Comments page at the end of Part C.

You are not required to provide a block flow diagram for each Produced Water Management System in Section 2. A narrative description of the Produ ced Water Management System is sufficient. Examples of acceptable block flow di agrams and narrative descri ptions are provided in

Section 2.

You are not required to perform new or non-routine tests or measurements solely for the purpose of responding to this questionnaire. EPA intends that responses to all questions be based upon available data and information. In the event th at exact data are not av ailable, please provide best engineering estimates and note the methods that were used to make the estimates on the Comments page located at the end of each section.

Include any clarifying attachments. If additional attachments are required to clarify a response, please place the associated question number and your operator identification number in the top right corner of each page of the attachments. The foll owing list contains examples of items that may be

included as attachments to this questionnaire: – Operations brochure, pam phlet, general description; – Produced water treatment flow diagrams; – Hard copy or electronic water quality da ta collected from wate r monitoring locations; – Produced water treatment operation and maintenance logs; and – Pollution prevention or manageme nt practices policies or data.Part C. Produced Water Management Information Section 1: General Operator Information CBM Questionnaire



### C-2 Pay close attention to the measurement units requested (e.g., barrels per day, milligrams per liter). Report answers in the units that are specified, unless the ques tion requires you to specify the

units.

Indicate information that should be treated as confidential. You may claim as confidential all information included in the response to a question by checking the Confidential Business Information (CBI) box next to the question number. Note that you may be re quired to justify any claim of confidentiality at a later time. See the CONFIDENTIAL BUSINESS INFORMATION section on page iv.

Questions? If you have any questions regarding the co mpletion of this questionnaire, see the QUESTIONNAIRE ASSISTANCE section on page iii.Part C. Produced Water Management Information Section 1: General Operator Information CBM Questionnaire



### C-3 Operator ID:
SECTION 1: GENERAL OPERATOR INFORMATION

GENERAL INSTRUCTIONS FOR SECTION 1



### This section of the questionnaire collects operator and company addr ess and contact information.

Indicate information that should be treated as confidential by checking the Confidential Business Information (CBI) box next to each question num ber with responses containing CBI. Any response

where "CBI" is not checked will be considered n on-confidential unless you have claimed all CBIeligible data as CBI at the begi nning of the questionnaire. Refer to the instructions given in the

CONFIDENTIAL BUSINESS INFORM ATION section on page iv for additional information regarding EPA's confidentiality procedures set forth in 40 CFR Part 2, Subpart B.

C1-1. Provide the name, title, telephone and facsimile numbers, and e-mail address of the primary contact at your operation for information supplie d in Part C of this questionnaire.



### ( ) Primary Contact Name Telephone Number

( ) Primary Contact Title Facsimile Number

Convenient time to call between:

Email Address am / pm and

am / pm (Eastern Time) CBI?

YesPart C. Produced Water Management Information Section 2: Produced Water Management Syst em General Questions CBM Questionnaire



### C-4 Operator ID:

Project ID from Part A:

Operator’s Name or ID for this Produced Water Management System:

SECTION 2: PRODUCED WATER MANA GEMENT SYSTEM GENERAL QUESTIONS

GENERAL INSTRUCTIONS FOR PART C SECTION 2



### The following questions request general informa tion on the components and costs of the produced water gathering system(s) and the Produced Water Management System(s) used for the project(s)

listed in Part A. These data will be used to ev aluate the costs and benefits of various CBM water

management arrangements.

Produced Water Management System (PWMS) - For the purposes of this questionnaire, Produced Water Management System is defined as a system t hat is managed by the operator as a single unit for produced water management. Produced water management may include different treatment, transfer to disposal locations, and/or reuse prac tices. The Produced Water Management System may treat water from a lease, field, project, or plan of development (POD). Water discharge permits, land application permits, and a pplications for permits to drill (APD) typically use one of these terms to define the well grouping. Note that the Produce d Water Management System can have multiple disposal options but it is managed as a single unit. For example, an operator may use a combination of stock tanks, irrigation, and storage ponds on a single Produced Water Management System. Also

note that the Produced Water Mana gement System may serve the same or different wells from the CBM project defined in Part A. Finally, for the pu rposes of this questionnaire, the PWMS does not include the produced water gathering system (e.g., pi ping or trucking) that is used to transport the produced water between the CBM wellhead and a centralized location (e.g., treatment unit, land application site). For example, pr oduced water gathering pipes are ty pically installed underground at the same time as the gas gathering pipes.



### The following diagrams are designed to help you determine the Produced Water Management Systems that should be addressed in this section of the questionnaire. Please complete a copy of this section for each Produced Water Management System used for the projects listed in Part A. Note that you are not required to pr ovide a block flow diagram for each Produced Water Management System in response to Question C2-1. A narrative description of the Produced Water Management System is sufficient. Examples of acceptable bloc k flow diagrams and narrative descriptions are provided on pages C-11 and C-12.

In Example 1 , the operator is using the same produced wate r management system for all wells in the CBM project listed in Part A. Therefore, ther e is a one-to-one match between the CBM economic project and Produced Water Management System. Th e operator should complete one copy of Part C Sections 2 and 3 for the Produced Water Management System.Part C. Produced Water Management Information Section 2: Produced Water Management Syst em General Questions CBM Questionnaire



### C-5 Operator ID:

Project ID from Part A:

Operator’s Name or ID for this Produced Water Management System:



## CBM Economic Project Matches Directly with the Produced Water Management System

X X X X X X X X X X

Economic Project

Produced Water Management System

Well 

### X Sedimentation

Pond

Discharge

to River Water Gathering System



### Example 1.

In Example 2 , the operator is using the two Produced Water Management Systems for the wells included in the CBM economic project listed in Part A. The operator should complete two copies of
Part C Section 2 and Part C Section 3, one for ea ch produced water management scenario used as part of this economic project.

PWMS #1

Settling pond Land application PWMS #2

Settling pond

Surface water 

## CBM Economic Project with Two Produced Water Management Systems

X X X X X X X X X X

Economic Project

Produced Water Management System

Well 

### X

Water Gathering

SystemPart C. Produced Water Management Information Section 2: Produced Water Management Syst em General Questions CBM Questionnaire



### C-6 Example 2.Part C. Produced Water Management Information Section 2: Produced Water Management Syst em General Questions CBM Questionnaire



### C-7 Operator ID:

Project ID from Part A:

Operator’s Name or ID for this Produced Water Management System:



### In Example 3 , the operator has two economic projects that share the same produced water management system. One of the economic projects, CBM Economic Project 1, was listed in Part A. The operator should have completed Part B, Secti on 3 for Economic Project 1. The operator did not need to provide information for Economic Project 2 because it was not listed in Part A. The operator should complete one copy of Part C for the combined produced water management system. In Example 3, the operator will identify the CBM wells and different produced water volumes managed by the PWMS from Project 1 and Project 2.

Example 3.

For EACH Produced Water Management System y ou operated in 2008 to manage produced water from the wells listed in Part A, complete a c opy of the entire Part C Section 2 and Section 3. You may need to make multiple copi es of these sections. Please enter a Produced Water Management System number or name in the upper right-hand corn er of this section. The number you choose could be one you use internally to refer to the project, but can be just a numbe r such as 1, 2, 3, etc., if you

use no formal identifier. This information will be used to check that the detailed information provided in this section is linked to the correct Produced Water Management System.

Question C2-1 requests a block flow diagram or narrative description fo r each Produced Water Management System. EPA has provided examples to guide you in completing this question.

Questions C2-2 through C2-14 request general information on the Produced Water Management System such as how the management system was selected and capital and operating costs.

Questions C3-1 through C3-13 request discharge a nd treatment information for the Produced Water Management System.Part C. Produced Water Management Information Section 2: Produced Water Management Syst em General Questions CBM Questionnaire



### C-8 Question C4-3 requests water quality a nd whole effluent toxicity data.

A comment page is included at the end of this section to clarify responses.

Note that this section was designe d to be applicable to a variety of operators. Many of the detailed questions are only applicable to discharge of produced water to surface waters, a POTW, or third party. Please follow the skip patter ns noted throughout the section.Part C. Produced Water Management Information Section 2: Produced Water Management Syst em General Questions CBM Questionnaire



### C-9 Operator ID:

Project ID from Part A:

Operator’s Name or ID for this Produced Water Management System:



### EPA may contact you for additional de tailed cost data for the inform ation you provide in this section of the questionnaire. If you are unsur e of how to complete any parts of this section, please refer to the QUESTIONNAIRE ASSISTANCE information on page iii.

C2-1. For each Produced Water Management System (P WMS), please provide a block diagram (as in the following examples) that shows, or a narrative description that explains, how the produced water was managed from the CBM well field to the PWMS in 20 08. Refer to this diagram or narrative as you answer questions throughout this section. Hand dr awings are sufficient for this question. Please provide a Produced Water Management System ident ification number and name for each diagram.

Attached a block diagram. Attached a narrative description.

The following items should be included on your diag ram or discussed in your narrative for each Produced Water Management System:

Name of the CBM Project in Part A that is connected to this PWMS.

Identify the water gathering system (e.g., under ground pipes, trucking) that moves produced

water from the CBM wellhead to the PWMS.

Name or identification number for this Produced Water Management System. This name or number should be noted in the upper right-hand corner of all pages in this section.

If more than one PWMS serves this project, number of producing wells (including those producing water only) associated with each PWMS.

Discharge, disposal, and reuse practices for this Produced Water Management System including the final destination of the produced water.

Individual treatment units prior to discharge, disposal, or reuse. Please show each individual unit on the diagram. For example, if you have two sedimentation ponds, please show each one on the diagram.

Points of chemical addition, along with the chemical name.

Descriptions of any waste streams result ing from CBM produced water treatment (e.g., concentrated brine, ion exchange rege neration wastewater, settled solids).

Destinations for all produced water. Please re member to include evaporation or infiltration.

The locations where routine water quality dat a are collected (you will be asked to provide some of this data in Part C Section 4).

Please note whether any produced water fr om conventional oil and gas extraction is commingled with produced wa ter from this CBM project . Please indicate on the diagram or in your narrative description, the volumes or flow rates of the conventional oil and gas extraction produced water as well as the point at which these waters are commingled.

Please note whether any produced water from another CBM project (eit her yours or another operator’s) is commingled with produced water from this CBM project . If produced water from CBI?

YesPart C. Produced Water Management Information Section 2: Produced Water Management Syst em General Questions CBM Questionnaire



### C-10 another project operated by your company ent ers this management system, provide the name of the project as provided in your screener survey. Please indicate on the diagram or in your narrative description, the volumes or flow rates of the CBM produced waters that are not from this CBM project as well as the poin t at which these waters are commingled.Part C. Produced Water Management Information Section 2: Produced Water Management Syst em General Questions CBM Questionnaire



### C-11 Operator ID: 9999

Project ID from Part A: PRB1

Operator’s Name or ID for this Produ ced Water Management System: POD1

Example 4 illustrates a Produced Water Management System with only one management practice. In this example, you would complete one copy of this section for this Produced Water Management System.



### One Produced Water Management System for the CBM Project (Treatment and Discharge)

Concentrated Brine –

Contract Hauled

Outfall 001 Discharge to River Sedimentation/ Equalization Pond 8 Wells

2 Routine Sampling Point 1

Routine Sampling Point 2 6 Media Filters

2 RO Units

Blend Tank 1 Backwash

Economic Project: PRB 1

PWMS Name: POD1 Water Gathering System



### Example 4.

Example 5 is an example of a narrative description fo r a CBM project with onl y one PWMS. In this example, you would complete one copy of this section for this Produ ced Water Management System.

Produced water from the eight CBM wells in the San Juan POD is piped underground to six storage tanks. Only wa ter from the eight wells enters the storage tanks. The water is trucked from the storage tanks to one of twoinjection wells. The water is filtered and a biocide is added prior to reinjection. A sample of the water is tested prior to re-injection.

Example 5.Part C. Produced Water Management Information Section 2: Produced Water Management Syst em General Questions CBM Questionnaire



### C-12 Operator ID: 9900

Project ID from Part A: Black Warrior 1

Operator’s Name or ID for this Produced Wate r Management System: Treatment System 1



### Example 6 illustrates a Produced Water Management System with multiple produced water management practices that vary throughout the year. The dates during which each water management practice is in use are shown above that branch of the flow diagram. You should complete two copies of Part C Sections 2 and 3 fo r this scenario, one for the west side and one for

the east side.

50 Wells (West side of CBM Project)

Storage Tanks

Land Application 280 bpd

280 bpd 35 Wells (April-September) (East side of CBM Project)

85 Wells (October-May)

Sedimentation

Pond 1 200 bpd

Sludgecontract

hauled 14 bpd 2 bpd Evaporation

Note: October-May flow in italics Economic Project: Black Warrior 1 PWMS Name: Treatment System 

### Temporal Changes in Produced Water Collection and Management Practices

Discharge to River 1 2 May-October Only

480 bpd

4 bpd 20 bpd

Sedimentation

Pond 2 Sludgecontract

hauled 13 bpd 1 bpd Evaporation 1 bpd 5 bpd Alum, Antimicrobial

3 170 bpd
450 bpd Routine Sampling Points 50 Wells (West side of CBM Project)

Storage Tanks

Land Application 280 bpd

280 bpd 35 Wells (April-September) (East side of CBM Project)

85 Wells (October-May)

Sedimentation

Pond 1 200 bpd

Sludgecontract

hauled 14 bpd 2 bpd Evaporation

Note: October-May flow in italics Economic Project: Black Warrior 1 PWMS Name: Treatment System 

### Temporal Changes in Produced Water Collection and Management Practices

Discharge to River 1 2 May-October Only

480 bpd

4 bpd 20 bpd

Sedimentation

Pond 2 Sludgecontract

hauled 13 bpd 1 bpd Evaporation 1 bpd 5 bpd Alum, Antimicrobial

3 170 bpd
450 bpd Routine Sampling Points Water Gathering System



### Example 6.Part C. Produced Water Management Information Section 2: Produced Water Management Syst em General Questions CBM Questionnaire



### C-13 Operator ID:

Project ID from Part A:

Operator’s Name or ID for this Produced Water Management System:

C2-2. In what year did this Produced Wate r Management System (PWMS) begin operating?

Number of days in operation in 2008:

365 days; or days

C2-3. What was the average daily flowrate or total volume of water treated by this Produced Water Management System in 2008? Pleas e check whether you are provid ing average daily flowrate or total volume and provide the flowrate or volume and units.

d. Generated by the wells identified in Part A in 2008

Average Daily Flowrate

Total Volume

Please specify the flowrate or volume units:

e. Managed by this PWMS in 2008

Average Daily Flowrate

Total Volume

Please specify the flowrate or volume units:

C2-4. Please relate the water produced and gas produc tion from the wells related to this Produced Water Management System with the wells from the proj ect from Part A listed at the top of the page:

f. What percentage of water treated by this Pr oduced Water Management System is from the project from Part A listed at the top of the page:

%

g. What percentage of 2008 gas production from the project listed at the top of this page is associated with the wells served by this Pr oduced Water Management System (estimate is acceptable).”

%

C2-5. Selection of Management Option

h. How was the Produced Water M anagement System designed? (Check all that apply.)

Input from the surface owner during development of the surface use plan

Work with outside contractor

Other: Please describe

i. Who manages the day-to-day operatio ns for the produced water management?

Operator ( Skip to Question C2-6 ) Landowner ( Skip to Question C2-6 ) Contractor/third party; pl ease provide company name CBI?

Yes

CBI?

Yes

CBI?

Yes

CBI?

YesPart C. Produced Water Management Information Section 2: Produced Water Management Syst em General Questions CBM Questionnaire



### C-14 j. Cost of hiring the contractor/third party fo r produced water management in 2008. Exclude the costs associated with the water gathering system from the CBM wells to the PWMS.

2008 annual operating and maintenance cost $

Min imum quantity of CBM produced wa ter required for contract: bbl Skip to Question C2-8, unless you have cost s in addition to contractor/third party
management.Part C. Produced Water Management Information Section 2: Produced Water Management Syst em General Questions CBM Questionnaire



### C-15 Operator ID:

Project ID from Part A:

Operator’s Name or ID for this Produced Water Management System:

C2-6. Produced Water Management System Capital Costs – Please provide the following capital cost information for this Produced Water Management Sy stem (e.g., treatment system, land application site). Exclude any costs associ ated with excavating surface impo undments if the impoundment was

converted from other uses , such as drill pits, but do include the costs of conversion. Also exclude the costs associated with installing the water gatherin g system from the CBM wells to the PWMS. For example, you should exclude the cost s of any trucking or installation of any pumps or pipes used to transport produced water from the CBM wells to the PWMS.

k. Capital cost in dollars: $ Check this box if your company purchased this PWMS from another company and you do not have this capital cost information. Skip to Question C2-6.

l. Year cost incurred:

C2-7. Produced Water Management System Operating and Maintenance Costs – Please provide the costs for this Produced Water Management System (e.g., treatment system, land application site) for

2008. Exclude the costs associated with maintaini ng the water gathering system from the CBM wells to the PWMS. For example, you should exclude the costs of any trucking or pump or pipe maintenance used for the transport of produced wa ter from the CBM wells to the PWMS. You should include non-produced water transportation costs as sociated with the PWMS (e.g., contract hauling residuals from the PWMS, permit compliance monitoring).

m. 2008 operating and maintenance cost in dollars: $

n. Please provide any annual revenue rece ived from operating this Produced Water Management System (e.g., payments from wate r recipients, payment for treating produced water from another operator) $

C2-8. Produced Water Gathering and Transportation Questions. Please provide cost and design information for transporting the produced water from the CBM wells identified in Part A to this PWMS. The produced water gathering system (e.g., piping or trucking) is used to transport the produced

water between the CBM wellhead and a centralized location (e.g., treatment unit, land application site).

o. What is the total 2008 volume of water generat ed from the CBM wells identified in Part A that is piped to this PWMS?

Please specify the volume units:



### NOTE: You should skip to Question C2-8.d if all of the produced water generated from the CBM wells identified in Part A is stored at the CBM wells and subsequently trucked off-site for final disposition (e.g., underground injection, tr eatment and disposal, land application).

p. What is the capital cost in dollars of the piped water gathering system between the CBM

wells identified in Part A and this PWMS?

$ Year cost incurred: Check this box if your company purchased this piped produced water gathering system from another company and you do not have this capital cost

information. Skip to Question C2-8.d. CBI?

Yes

CBI?

Yes

CBI?

YesPart C. Produced Water Management Information Section 2: Produced Water Management Syst em General Questions CBM Questionnaire



### C-16 q. What is the 2008 operating and main tenance cost in dollars of the piped water gathering system between the CBM wells identified in Part A and this PWMS?

$Part C. Produced Water Management Information Section 2: Produced Water Management Syst em General Questions CBM Questionnaire



### C-17 Operator ID:

Project ID from Part A:

Operator’s Name or ID for this Produced Water Management System:

r. Please answer the following questions if you truck produced water from the wells identified in Part A to this PWMS. Otherwise, skip to Question C2-9

.

i. Total volume of produced water trucked to this PWMS in 2008:

ii. Total vehicle miles traveled for the truck transport of produced water to this PWMS in 2008:

iii. Total number of days used to truck prod uced water to this PWMS in 2008:

iv. Average volume capacity of the tanker truck used in 2008 (e.g., 2,000 gal./truck):

v. Total 2008 costs incurred to truck produced water to this PWMS: $

C2-9. Please indicate the land ar ea occupied by your operations.



### Location Area Units

a. Total Project Area (Part A Project)

b. Total PWMS Area

c. Total Undeveloped Area

d. Is the undeveloped area suitable for construction of new or additional wastewater treatment systems?

Yes 

### No: Provide explanation:

C2-10. Have you ever operated or considered oper ating a produced water management system other than what is described in this section for the project?

Yes No ( Skip to Question C2-12 )

C2-11. What type of management system did you consider? CBI?

Yes

CBI?

Yes

CBI?

YesPart C. Produced Water Management Information Section 2: Produced Water Management Syst em General Questions CBM Questionnaire



### C-18Part C. Produced Water Management Information Section 2: Produced Water Management Syst em General Questions CBM Questionnaire



### C-19 Operator ID:

Project ID from Part A:

Operator’s Name or ID for this Produced Water Management System:

C2-12. What were the reasons for not implementi ng or for stopping the operation of the management system?

C2-13. Have any monitoring or other studies been condu cted to assess the potential impacts of produced water for this Produced Water Management System , such as impacts related to irrigation, impoundment, or surface water discharges? Produced water related impacts may include but are not limited to: changes in soil characteristics, changes in stream flows, changes in aquatic toxicity, and changes in aquatic and riparian species composition.

Yes No ( Skip to Part C Section 3)

C2-14. Indicate the following inform ation about the studies, if known. If there are additional studies, please provide the information in the Co mments Section (Question C4-3).



### Title:

Date: / /

Title:

Date: / / CBI?

Yes

CBI?

Yes

CBI?

YesPart C. Produced Water Management Information

Section 3: Detailed Produced Water Management and Treatmen t Questions CBM Questionnaire



### C-20 Operator ID:

Project ID from Part A:

Operator’s Name or ID for this Produced Water Management System:

SECTION 3: DETAILED PRODUCED WATER MANAGEMENT AND TREATMENT QUESTIONS

GENERAL INSTRUCTIONS FOR SECTION 3



### Questions C3-1 through C3-13 request detailed information for the Produced Water Management System. Please see the following tables to identify the questions you should complete.

C3-1. Produced Water Destination - This table provides information on the final destination of the produced water for this Produced Water Management System. Note t hat EPA will request information on any treatment technologies used prior to discharge in later questions. Check ( ) all that apply.

Table C-1. Final Destination of CBM Produced Water



### Check ( )

All that Apply Destination

Discharge to Surface Water, POTWs, and Third Parties

a. Discharge to surface water (requiring NPDES permit)

b. Discharge to POTW or third party (e.g., discharge to another operator’s treatment system)

Zero Discharge

c. Land Application (no crop production)

d. Land Application (for crop production)

e. Underground Injection

f. Evaporation or infiltration pond (with no intended discharge to surface water)

g. Livestock or Wildlife Watering

h. Hauled off site

i. Other (Specify): CBI?

YesPart C. Produced Water Management Information

Section 3: Detailed Produced Water Management and Treatmen t Questions CBM Questionnaire



### C-21 Operator ID:

Project ID from Part A:

Operator’s Name or ID for this Produced Water Management System:

Copy of

C3-2. Cost Information for Each Destination – Complete a copy of the following table for each produced

water destination selected in Question C3-1. You sh ould have one copy of this table for each box

checked in Table C-1.



### Destination Option Selected in Question C3-1 (Use this row to indicate which destination you are providing

information on. You will make multiple copies of this table if you checked more than one destination in Question C3-1.) Discharge to Surface Water Discharge to POTW or

Third Party Land Application (no crop

production) Land Application (for crop

production) Underground Injection Evaporation or infiltration pond

Livestock or wildlife watering

Hauled off site

Other:

2008 Volume of Produced

Water From this PWMS to

this Destination

Unit:

Maximum Daily Capacity of

Produced Water from this PWMS Capable of Going to

this Destination: Unit:

Capital Costs

% of Total Capital Cost Provided in Response to Question C2-6 for this

destination:

%

(If only one box is checked in

Table C-1 then enter 100% above.) Check ( ) the Components Below that are Included in the Capital Costs:

Tanks
Pumps Piping/hoses

Outfall structure Injection well

Pond

Treatment unit Liner Land acquisition Monitoring equipment Aeration equipment Land application equipment

Other:

Other:

Operation and Maintenance

Costs

% of Total Operation and Maintenance Cost provided in Response to Question C2-7:

% Check ( )the Components Below that are Included in the Operation and Maintenance Costs:

Chemicals Energy: electric
Energy: gas Energy: oil Materials

Labor

Other: CBI?

YesPart C. Produced Water Management Information

Section 3: Detailed Produced Water Management and Treatmen t Questions CBM Questionnaire



### C-22 Operator ID:

Project ID from Part A:

Operator’s Name or ID for this Produced Water Management System:

Copy of

C3-3. Residuals Management Information – Complete a copy of the following table for each type of residual generated by this PWMS. Make sure you indicate in your narrat ive description or block diagram (see Question C2-1) each type of residual waste generated by this PWMS and the ultimate disposal of the residual.



### Residuals Management and

Costs

List Type(s) of Residuals Generated (e.g., brine waste from ion exchange unit):

( Note: If more than one residual is generated by this PWMS, please make one copy of this question for each type of residual generated.) Description of Residual Generate d and its Source (e.g., brine waste from ion exchange treatment system):

Volume (and units) of Residual Generated in 2008:

Frequency of Residuals Removal from this PWMS in 2008 (e.g., brine waste tank emptied once per week).

Name of Final Destination for this Residual (e.g., ABC Underground Injection Well, Permit No. XYZ):

Distance from this PWMS to the Final Destination for this

Residual:

miles

Annual 2008 Cost of Disposal for this Residual:

$

Components of Residual Disposal Cost: Transportation: Piped Transportation: Trucked Disposal Fees Other (Specify):Part C. Produced Water Management Information

Section 3: Detailed Produced Water Management and Treatmen t Questions CBM Questionnaire



### C-23 If you check “Discharge to Surface Water” in Tabl e C-1, please also complete Question C3-4 and

then skip to Question C3-7

.

If you check “Discharge to a POTW or Third Part y” in Table C-1, please also complete Question

C3-5 and then skip to Question C3-7

.

If you check “Land Application (No Crop Pr oduction)” or “Land Application (For Crop Production)” in Table C-1, please also complete Question C3-6 and then skip to Question C3-7

.

For all other destinations selected in Table C-1, skip to Question C3-7

.Part C. Produced Water Management Information

Section 3: Detailed Produced Water Management and Treatmen t Questions CBM Questionnaire



### C-24 Operator ID:

Project ID from Part A:

Operator’s Name or ID for this Produced Water Management System:

Surface Water Discharge Question Copy of

C3-4. Surface Water Discharge. Complete Question C3-4 if you checked that this Produced Water Management System discharges to surface water in Table C-1. If this Produced Water Management System does not discharge to surface water, skip to Question C3-5 . Complete one copy of this question for each surface water discharge permit used in this Produced Water Management System

.

s. General Information on Surface Water Discharge Permit – Please complete the following table of general information about t he surface water discharge permit.



### NPDES Permit Number

Permit Type General

Individual

Expiration Date (MM-DD-YYYY)

Stream Monitoring Required? Yes (Specify frequency: )

No

Effluent Monitoring Required? Yes (Specify frequency: )

No

Permit currently being re viewed or modified? Yes

No

t. General Information on Outfa lls Included in Permit – Please complete the following table of general information about the outfalls includ ed in the permit listed in part (a) of this question. Make multiple copies if t he permit covers more than three outfalls.

i. Outfall Number – List each outfall included in the NPDES permit.

ii. Aeration Equipment– Check ( ) any aeration equipment or other treatment equipment used at the outfall.

iii. Flowrate or Volume Discharged Through Outfall – Please provide the total volume discharged through each outfall in 2008.

iv. Frequency of Discharge – Indicate t he frequency of discharge including number of days discharged in 2008. CBI?

YesPart C. Produced Water Management Information

Section 3: Detailed Produced Water Management and Treatmen t Questions CBM Questionnaire



### C-25 Operator ID:

Project ID from Part A:

Operator’s Name or ID for this Produced Water Management System:

Surface Water Discharge Question Copy of



### Outfall Number Treatment at Outfall(s) Flowrate or Volume Discharged Through Outfall (Specify units) Frequency of discharge

None Rip Rap

Atomizer Sprinkler head

Diffuser

Other Specify: Units: Continuous

Intermittent

Number of days of intermittent discharge in

2008

Emergency discharge

only Number of days of emergency discharge in

2008

None Rip Rap

Atomizer Sprinkler head

Diffuser

Other Specify: Units: Continuous

Intermittent

Number of days of intermittent discharge in

2008

Emergency discharge

only Number of days of emergency discharge in

2008

None Rip Rap

Atomizer Sprinkler head

Diffuser

Other Specify: Units: Continuous

Intermittent

Number of days of intermittent discharge in

2008

Emergency discharge

only Number of days of emergency discharge in

2008

u. Discharge Permit and Discharge Monitoring Reports. Please attach a copy of the current surface water discharge NPDES permit. If av ailable, EPA prefers the NPDES permit be submitted in an electronic format (e.g., PDF fo rmat). Please report any discharge monitoringPart C. Produced Water Management Information

Section 3: Detailed Produced Water Management and Treatmen t Questions CBM Questionnaire



### C-26 report (DMR) data for 2006 through 2008 in Part C Section 4. If available, EPA prefers this DMR data be submitted in an electronic format (e.g., PDF format).

Permit Attached.Part C. Produced Water Management Information

Section 3: Detailed Produced Water Management and Treatmen t Questions CBM Questionnaire



### C-27 Operator ID:

Project ID from Part A:

Operator’s Name or ID for this Produced Water Management System:

POTW/Third Party Discharge Question Copy of

C3-5. Discharge to POTW or third party. Complete Question C3-5 if you checked that this Produced Water Management System discharges to a POTW or third party in Question C3-1. If this Produced Water Management System does not discharge to a POTW or third party, skip to Question C3-7

. Complete one copy of this question for each POTW or third party used in this Produced Water Management System

.

POTW.

PrOTW. Other facility.

v. Provide the POTW, PrOTW, or other fac ility name, address, primary contact, and phone number (if applicable).



### POTW/PrOTW/Other Facility Name

Address

City State Zip Code

( ) Primary Contact Name Telephone Number

b. Please attach a copy of the current perm it or discharge agreement. Please report any monitoring data in Part C Section 4. If av ailable, EPA prefers data be submitted in an

electronic format.



### Permit/Discharge Agreement Attached

Continue to Question C3-7. CBI?

YesPart C. Produced Water Management Information

Section 3: Detailed Produced Water Management and Treatmen t Questions CBM Questionnaire



### C-28 Operator ID:

Project ID from Part A:

Operator’s Name or ID for this Produced Water Management System:

Discharge to Land Application (with or without crop production) Question Copy of

C3-6. Discharge to Land Application (with or without crop production) – Complete Question C3-6 if you checked that this Produced Water Managem ent System discharges to land application in Question C3-1. If this Produced Water Management System does not discharge to a land application
system, skip to Question C3-7 . Complete one copy of this questi on for each land application system used at this Produced Water Management System.



### Land Application (Complete for Irrigatio n and Non-Irrigation Land Application)

a. Area of Land Used for Land Application (acres)

b. Describe any criteria on the Produced Water for this Land Application

c. Type of Land Application/Irrigation Above-ground irrigation (e.g., center-pivot) Sub-surface drip irrigation (SDI) Other (Specify):

d. Frequency of Application Continuous

Intermittent: Number of days applied in 2008 Months that the land application occurred in 2008 (e.g., February, March, May) CBI?

YesPart C. Produced Water Management Information

Section 3: Detailed Produced Water Management and Treatmen t Questions CBM Questionnaire



### C-29 Operator ID:

Project ID from Part A:

Operator’s Name or ID for this Produced Water Management System:

Produced Water Treatment

C3-7. Do you treat produced water to remove pollutant s prior to discharge to su rface water or POTW/third party?

Yes No ( Skip to Part C Section 4 )

C3-8. This table provides direction on how to provide information on the treatment of the produced water for this Produced Water Management System. Check ( ) all that apply. EPA will request more detailed information about treatment of the produced water in later questions.

Table C-2. Treatment of CBM Produced WaterCheck(:)AllthatApply



### Type of Treatment Unit Do you have water quality data for the produced water entering and/or leaving this treatment unit? If so, please provide in Section 4 (water quality
section). Additional

Information

a. Sedimentation Pond (for equalization or suspended solids removal) Yes

No Complete Question C3-9 for each pond.

b. Ion exchange Yes

No Complete Question C3-

10 for each ion exchange unit.

c. Low-Pressure Filtration (e.g., Hydro-cyclone, Multi-media filtration) Yes

No Complete Question C3- 11 for each low-pressure

filtration unit.

d. High-Pressure Filtration (e.g.,
Reverse Osmosis, Nanofiltration) Yes

No Complete Question C3-12 for each highpressure filtration unit.

e. Other (Specify): Yes

No Complete Question C3- 13 for any additional

treatment units not listed

elsewhere.

Copy pages as needed to include inform ation on all treatment units checked ( ) in the table above. Please be sure to enter the Produced Water Manage ment System identification number or name so that EPA can link the information in this section to the correct Produced Water Management System. CBI?

Yes

CBI?

YesPart C. Produced Water Management Information

Section 3: Detailed Produced Water Management and Treatmen t Questions CBM Questionnaire



### C-30 Operator ID:

Project ID from Part A:

Operator’s Name or ID for this Produced Water Management System:

Sedimentation Ponds Question Copy of

C3-9. Sedimentation Ponds – Complete Question C3-9 if you checked that this Produced Water Management System uses sedimentation ponds in Tabl e C-2. Also, please indicate the water quality parameters that are removed by this treatment unit and the estimated removal efficiency. If this Produced Water Management System does not use sedimentation ponds, skip to Question C3-10

.



### Design Capacity (acre-feet) acre-feet

Volume of Produced Water into

Sedimentation Pond in 2008 bbl

Surface Area acres

Type of Liner and Thickness (if applicable) Yes – Liner used Specify type and thickness:

No liner

Chemicals Added (e.g., coagulants, biocides)

Capital Cost of Sedimentation Pond and Year

of Cost $

Year:

Initial Bonding Costs and Year of Costs $

Year:

2008 Operating and Maintenance Cost of

Sedimentation Pond $

Targeted Water Quality Parameter

Parameter Name Estimated Removal Efficiency Basis/Comments CBI?

YesPart C. Produced Water Management Information

Section 3: Detailed Produced Water Management and Treatmen t Questions CBM Questionnaire



### C-31Part C. Produced Water Management Information

Section 3: Detailed Produced Water Management and Treatmen t Questions CBM Questionnaire



### C-32 Operator ID:

Project ID from Part A:

Operator’s Name or ID for this Produced Water Management System:

Ion Exchange Question Copy of

C3-10. Ion Exchange - Complete Question C3-10 if you checked that this Produced Water Management System uses ion exchange in Table C-2. Also, pleas e indicate the water quality parameters that are removed by this treatment unit and the estimat ed removal efficiency. If this Produced Water Management System does not use ion exchange, skip to Question C3-11 . Remember to complete one copy of this question for each ion exchan ge unit used in this Produced Water Management System. Also make sure to complete Question C3-3 for any brine waste generated.



### Design Capacity of Ion Exchange System (bbl/d) bbl/d

Volume of produced water into Ion Exchange in 2008 (bbl) bbl

Vendor/Unit Name

Resin Name/Type

Average Regeneration Frequency (specify frequency; e.g., once/hour, once/4 hours, once/day)

Average Resin Life (yrs) years

Chemicals Added (e.g., regenerates, biocides)

Capital Cost of Ion Exchange Unit and Year

of Cost $

Year:

2008 Operating and Maintenance Cost of Ion Exchange Unit $

Pilot Project Yes

No

Targeted Water Quality Parameter

Parameter Name Estimated Removal Efficiency Basis/Comments CBI?

YesPart C. Produced Water Management Information

Section 3: Detailed Produced Water Management and Treatmen t Questions CBM Questionnaire



### C-33Part C. Produced Water Management Information

Section 3: Detailed Produced Water Management and Treatmen t Questions CBM Questionnaire



### C-34 Operator ID:

Project ID from Part A:

Operator’s Name or ID for this Produced Water Management System:

Low-Pressure Filtration Question Copy of

C3-11. Low-Pressure Filtration – Complete Question C3-11 if you checked that this Produced Water Management System uses low-pressure filtration in Table C-2. Also, please indicate the water quality parameters that are removed by this treatment unit and the estimated removal efficiency. If this Produced Water Management System does not use low-pressure filtration, skip to Question C3-12

. Remember to complete one copy of this question fo r each low-pressure filtration unit used in this Produced Water Management System. Also make sure to complete Question C3-3 for any residuals generated.



### Design Capacity of Filtration System (bbl/d) bbl/d

Volume of Produced Water Entering LowPressure Filtration Unit in 2008 (bbl) bbl

Type Multimedia

Sand

Ultrafiltration

Other:

Vendor/Unit Name

Average Cleaning Frequency (specify frequency; e.g., once/hour, once/4 hours, once/day)

Chemicals Added (e.g., coagulants, biocides)

Capital Cost of Filtration System and Year of

Cost $

Year:

2008 Operating and Maintenance Cost of Filtration System $

Pilot Project Yes

No

Targeted Water Quality Parameter

Parameter Name Estimated Removal Efficiency Basis/Comments CBI?

YesPart C. Produced Water Management Information

Section 3: Detailed Produced Water Management and Treatmen t Questions CBM Questionnaire



### C-35Part C. Produced Water Management Information

Section 3: Detailed Produced Water Management and Treatmen t Questions CBM Questionnaire



### C-36 Operator ID:

Project ID from Part A:

Operator’s Name or ID for this Produced Water Management System:

High-Pressure Filtration Question Copy of

C3-12. High-Pressure Filtration – Complete Question C3-12 if you ch ecked that this Produced Water Management System uses high-pres sure filtration in Table C-2. Also, please indicate the water quality parameters that are removed by this treatm ent unit and the estimated removal efficiency. If this Produced Water Management System does not use high-pressure filtration, skip to Question

C3-13 . Remember to complete one copy of this questi on for each high-pressure filtration unit used in this Produced Water Management System. Also ma ke sure to complete Question C3-3 for any residuals generated.



### Design Capacity of Filtration System (bbl/d) bbl/d

Volume of Produced Water Entering HighPressure Filtration Unit in 2008 (bbl) bbl

Type Reverse Osmosis

Nanofiltration Other (Specify type):

Vendor/Unit Name

Average Cleaning Frequency (specify frequency; e.g., once/hour, once/4 hours, once/day)

Membrane Life (years) years

Chemicals Added (e.g., coagulants, biocides)

Capital Cost of Filtration System and Year of

Cost $

Year:

2008 Operating and Maintenance Cost of Filtration System $

Pilot Project Yes

No

Targeted Water Quality Parameter

Parameter Name Estimated Removal Efficiency Basis/Comments CBI?

YesPart C. Produced Water Management Information

Section 3: Detailed Produced Water Management and Treatmen t Questions CBM Questionnaire



### C-37Part C. Produced Water Management Information

Section 3: Detailed Produced Water Management and Treatmen t Questions CBM Questionnaire



### C-38 Operator ID:

Project ID from Part A:

Operator’s Name or ID for this Produced Water Management System:

Treatment Not Specified Elsewhere Question Copy of

C3-13. Treatment Not Specified Elsewhere – Complete Question C3-13 if y ou checked that this Produced Water Management System uses land application or treatment not specified elsewhere in Table C-2. Remember to complete one copy of this question for any additional treatment units used at this Produced Water Management System. Also make sure to complete Question C3-3 for any residuals generated.

a. General Information – Please complete the following table of general information. Also, please indicate the water quality parameters that are removed by any treatment unit and the estimate removal efficiency.



### Design Capacity of This Treatment System (bbl/d) bbl/d

Volume of Produce Water Entering Treatment Unit in 2008 (bbl) bbl

Description of Treatment System

Vendor/Unit Name

Type and Amounts of Chemicals Used With This System in 2008 (e.g., coagulants, biocides, soil amendments)

Average Regeneration/Cleaning Frequency Specify units (e.g., once/hour, once/4 hours, once/day):

Capital Cost of System and Year of Cost $

Year:

2008 Operating and Maintenance Cost of System $

Pilot Project Yes

No

Targeted Water Quality Parameter (Complet e for Treatment Technology Not Specified
Elsewhere)

Name Estimated Removal Efficiency Basis/Comments CBI?

YesPart C. Produced Water Management Information

Section 3: Detailed Produced Water Management and Treatmen t Questions CBM Questionnaire



### C-39Part C. Produced Water Management Information Section 4: Produced Water Qual ity Data CBM Questionnaire



### C-40 Operator ID:

Project ID from Part A:

Operator’s Name or ID for this Produced Water Management System:

SECTION 4: PRODUCED WATER QUALITY DATA



### To enable EPA to evaluate the ability of produced water management systems to remove potential pollutants of concern, water quality data is requ ired. EPA will evaluate th e performance of produced water management systems via analysis of effluent data, and as available, analysis of data that represents the influent to the produced water ma nagement system. EPA also requests information related to the measured values (e.g., analytical me thod information) to allow for examination of the quality of data provided. This section requests this water qualit y data for each Produced Water Management System.

C4-1. Complete Table C-3 for locations related to tr eatment unit processes for which you have water quality

data. All information collected will aid EPA in det ermining CBM produced wa ter characteristics by basin; identifying pollutants; calculating baseli ne loadings; and estimating the effectiveness of treatment technologies. Note that if you already have water quality data in electronic or hardcopy format, you may submit these data using your own reporting method. If you need more space, make a copy of Table C-3. Locatio ns may include: wellhead, influent to treatment; effluent from treatment; and discharge outfalls. Please include all paired influent and effluent data for any treatment units operated by your site. Pr ovide all relevant data for 2008. If 2008 data is unavailable, please provide the most recent data.

• The pollutant analyzed;

• The measured value including units (if not detec ted, list the detection limit value preceded by a less than (<) symbol);

• The analytical method used;

• The date samples were collected;

• Where the samples were collected (this should be a number from a label on your block flow diagram);

• Whether the samples were collected as grabs or as composites; and

• Provide flow rate only if flow rate data we re recorded at the sampling point during the sampling period. CBI?

YesPart C. Produced Water Management Information Section 4: Produced Water Qual ity Data CBM Questionnaire



### C-41 Operator ID:

Project ID from Part A:

Operator’s Name or ID for this Produced Water Management System:

C4-2. Whole Effluent Toxicity Information

c. Have you performed any whole effluent toxi city (WET) testing for this Produced Water Management System?

Yes No ( Skip to Question C4-3 )

d. Please provide the information on the WET te sting conducted, including the including the test organism, test type (e.g., acute or chronic), and the results.

e. Has toxicity ever exceeded permit limits?

Yes No ( Skip to Question C4-3 )

f. Was a toxicity identification evaluation (TIE), toxicity reduct ion evaluation (TRE), or other study performed to determine the cause, treatability, or effect ive management of toxicity?

Yes



### 2008 Annual Costs ($) for TIE and TRE: ____________

No ( Skip to Question C4-3 )

g. Please describe the cause of the toxicity and the final resolu tion of the toxicity issue.



### Attached CBI?

YesPart C. Produced Water Management Information Section 4: Produced Water Qual ity Data CBM Questionnaire



### C-42 Operator ID:

Project ID from Part A:

Operator’s Name or ID for this Produced Water Management System:

Analytical Data Question Copy of

Table C-3. Analytical Data

Note: If you already have water quality data in electronic or hardcopy format, you may submit these data using your own reporting method. EPA prefers water quality data be submitted in an electronic format (e.g., Microsoft© Access, Microsoft© Excel, non-scanned PDF).

Submitted own data as attachment to this questionnaire.



### Pollutant Measure

d Value (mg/L) Analytic

al

Method Permit

Limit (mg/L) Samplin g Date Location Sample Type (grab/ composite
) Flow

Rate (gpm)

Total

Dissolved

Solids 1124 EPA

Method

160.1 7/1/06 SP-1 Grab 130Part C. Produced Water Management Information Section 4: Produced Water Qual ity Data CBM Questionnaire



### C-43Part C. Produced Water Management Information Section 4: Produced Water Qual ity Data CBM Questionnaire



### C-44 Operator ID:

Copy of

C4-3. Comments on Part C. Please cross-reference your comments by question number. If you need additional space, please photocopy this page before writing on it , and number each copy in the space provided. Please use this table to comment on any information you would like to share with EPA on how you manage CBM produced water.



### Question

Number Comment

CBI?

Yes

CBI?

Yes

CBI?

Yes

CBI?

Yes

CBI?

Yes

CBI?

Yes

CBI?

Yes

CBI?

Yes

CBI?

Yes

CBI?

Yes

CBI?

Yes

CBI?

Yes

CBI?

YesPart D. Supporting Information Section 1: List of Acronyms and Abbreviations CBM Questionnaire



### D-1 PART D. SUPPORTING INFORMATION

SECTION 1: LIST OF ACRONYMS AND ABBREVIATIONS



### % Percent bbl Barrel (42 gallons) bbl/d Barrels per day

bcf Billion cubic feet BPJ Best Professional Judgment

BTU British thermal unit

CBM Coal bed methane CFR Code of Federal Regulations CFS Cubic feet per second

Cl- Chloride

CWA Clean Water Act dpy Days per year

EA Environmental Assessment EC Electrical Conductivity EDR Electrodialysis Reversal ELG Effluent limitations guideline EPA U.S. Environmental Protection Agency

ft Foot ft2 Square foot

ft3 Cubic foot gal Gallon gpd Gallons per day gpm Gallons per minute hrs/day Hours per day

in Inch

kWh Kilowatt-hour

lb Pound lb/hr Pounds per hour

mcf Thousand cubic feet

MCL Maximum contaminant level mg/L Milligrams per liter MGD Million gallons per day MMBTU/hr Million BTUs per hour

mmcf Million cubic feet
MW Megawatt

N A N ot applicable POTW Publicly Owned Treatment Works

p pm Parts per million PrOTW Privately Owned Treatment Works

p si p ounds per square inch

RO Reverse osmosis

s Second SAR Sodium Adsorption Ratio

SIC Standard Industrial Classification

tcf Trillion cubic feetPart D. Supporting Information Section 1: List of Acronyms and Abbreviations CBM Questionnaire



### D-2 TDS Total dissolved solids ton English ton, wet weight TMDL Total maximum daily load
tpy Ton per year TSS Total suspended solids
yr YearPart D. Supporting Information

Section 2: Definition of Ke y Terms CBM Questionnaire



### D-3 SECTION 2: DEFINITION OF KEY TERMS



### Ad Valorem Taxes— A type of property taxes, usually levied as a percentage of production or value of production by local authorities, such as a county, a school district, city, or township.

Aeration— Process that mixes air and water, normally by injecting air into water, spraying water into the air, or allowing water to pass over an ir regular surface, to release compounds from the water through oxidation, precipitation, or evaporation.

Arroyo— An intermittently dry creek.

Balance Sheet— A quantitative summary of a company's fina ncial condition at a specific point in time, including assets

, liabilities and net worth . The first part of a ba lance sheet shows all the productive assets a company owns, and the second part shows all the financing methods (such as

liabilities and shareholders' equity ); also called statement of condition.

Batch (Intermittent) Di scharge or Application— A discreet volume or mass of liquid or solid that

is collected and disc harged periodically.

Beneficial Use— The produced water is of good enough quality to be used for wildlife propagation or livestock watering or other agri cultural uses and the produced wate r is actually put to such use during periods of discharge.

Best Management Practices (BMP)— Methods that have been determined to be the most effective, practical means of preventing or reducing pollution from non-point sources. Activities, maintenance procedures, and other management practices to pr event or reduce the pollution. BMPs may include treatment requirements, operating procedures, and pract ices to control plant site runoff, spillage or leaks, sludge or waste disposal, or drainage from raw material storage.

C Corporation— A business that is a completely separate entity from its owners, unlike a partnership.

Capital Cost— The costs associated with the purchase, de velopment or construction of fixed assets such as land, stations, buildings , and water treatment equipment.

Capital Cost of Project Development— As defined for Question B3-13. this includes all capital and one-time costs of project development beyond th e immediate tophole equipment (e.g., Christmas tree), including any exploratory co sts, planning costs, geological and geophysical costs, site development costs, such as pads and roads or other land preparation activities, production pumps, gas/water separation equipment, other onsite gas gath ering or treatment equipm ent, and gas pipelines to offsite location and/or point of sale. It does not include any capital co sts of water management (see definition).

Clarification— Separation and concentration of solids from liquid/solid mixtures that are mostly liquid.

Clean Water Act— Federal legislation enacted by Congress to “restore and maintain the chemical, physical, and biological integrity of the Nation’s waters” (Federal Water Pollution Control Act of 1972, as amended, 33 U.S.C. 1251 et seq.).Part D. Supporting Information

Section 2: Definition of Ke y Terms CBM Questionnaire



### D-4 Coalbed Methane (CBM)— Natural gas found in coal seam reservoirs.

Coalbed Methane (CBM) Project— A CBM project comprises a we ll, group of wells, lease, group of leases, or recognized unit which you operate as an economic unit when making production decisions. The well or wells may be associated with one or more water management practices (that is, the project should be defined on the basis of gas production economics, not necessarily on the basis of a water management system). If a projec t operates as a unit in wh ich you are not the sole operator, please include information only for th at portion of a unit for which you actively operate. EPA understands that the concept of a project is vari able over time, so the we ll or wells included as a part of a project should be those that best defined the project as it existed in 2008.

Coalbed Methane (CBM) Unit— A unit is a group of leases that are managed together with the intention of maximizing production (and/or mini mizing costs), where operating these leases independently might result in more wells drilled, less production realized, or both. Units can be formal, legal entities that are wri tten into lease agreements, pooling agreements, and/or state permits; or informal, particularly where minerals rights on several leases are ow ned by the same entity.

Continuous Flow— A flow regime characterized by persistent flow, as opposed to intermittent flow

or batch processes.

Contract Haul— The removal of any waste stream (includi ng produced water) from a facility by a company authorized to transport and dispose of th e waste, excluding discharges to sewers or surface

waters.

Cost-Depletion Method— Recovery of the tax basis in a mineral deposit by deducting it proportionately over the productive life of the deposit. This is in contra st to the percentage depletion method, which permits a taxpayer with an econo mic interest in a mineral deposit to deduct a specified percentage of the gross income from the deposit instead of using the cost depletion method. Percentage depletion is generally restricted to independent produ cers, royalty owners, and some other narrow categories of oil and gas owners.

Cost of Capital— The opportunity cost of an investment ; that is, the rate of return that a company would otherwise be able to earn at the same risk level as the investment th at has been selected. For example, when an investor purchases stock in a company, he/she expects to see a return on that investment. Since the individual expects to get back more than his/her initial investment , the cost of capital is equal to this return that the investor receives, or the money that the company misses out on by selling its stock.

Creek— A small, natural stream that is often a sh allow or intermittent tributary to a river.

Cumulative Depreciation— The total charges against the fixed assets of a company for wear and tear, obsolescence, or the depleti on of a natural resource—oil in th e ground, for instance—as it is used up.

Current Assets— Any asset that can reasonably be expected to be used up or converted to cash or sold within a year or less, e.g., cas h, accounts receivable, prepaid expenses.Part D. Supporting Information

Section 2: Definition of Ke y Terms CBM Questionnaire



### D-5 Current Liabilities— Debts that are payable within 1 y ear, including accounts payable, notes payable within one year, accrued expenses and taxes, and the portion of long-term debt that are paid this year.

Depreciation, Depletion, and Amortization— The allocation of the cost of an asset over a period of time for accounting and tax purposes. Depletion, whic h reflects the declining value of a natural resource asset as it is produced, may be calculate d either using the cost-depletion or percentage depletion method, depending on type of firm (see cost-depletion method).

Design Capacity Flow Rate— Maximum flow rate a treatment unit is designed to handle.

Direct Discharge— The discernible, confined, and discre te conveyance of pollutants to United

States surface waters such as rivers, lakes, and oceans. See 40 CFR 122.2.

Discharge— The discernible, confined, and discrete c onveyance of pollutants to: (1) United States
surface waters such as rivers, la kes, and oceans (“direct discharg e”), or (2) a publicly owned, privately owned, federally owned, combined, or ot her treatment works (“indirect discharge”). See 40

CFR 122.2.

Disposal— Intentional placement of waste (including produc ed water) into or on any land where the material will remain after closure. Waste placed in to water is defined as discharge, not disposal.

Division— A business unit of a firm, often treated as a profit center (see profit center).

Drilling Cost —Includes tangible and intangible costs of drilling and completing a well (if completed), as defined in API’s Joint Associat ion Survey of Drilling Costs, which includes “expenditures for drilling dry holes and produc tive wells and equipping new productive wells through the Christmas tree” installa tion...these cost elements are the costs of labor, materials, supplies, water, fuels, power, and direct overhead (i.e., field, district, and regional), for such operations as site preparation, road building, erecting and dismantling derr icks and drilling rigs, drilling hole, running and cementing casi ng, hauling materials, etc. Includ e the total cost of water, if purchased, or cost of water well, if drilled and ch argeable to oil or gas well drilling operations. Well costs also include machinery and tool charges and rentals, and deprec iation charges, where appropriate, for rigs and other equipment and faciliti es which will be used in drilling more than one

well. Deduct the condition value of materials salvaged after use wher e appropriate. Do not report the cost of lease equipment such as artificial lift equipment and dow nhole lift equipment, flow lines, flow tans, separators, etc. that are required fo r production. Do not reduc e the costs by test well, bottom hole, or dry hole contributions.

Earnings Before Interest and Taxes (EBIT)— A measure of a company’s earning power from ongoing operations, equal to earnings before deduction of interest pa yments and income taxes; also called operating profit or operating income.

Emergency Discharge— A volume or mass of liquid or solid residuals are discharged only during extenuating circumstances (i.e., a treatment process malfunction).

Equalization— The process of storing produced water for la ter treatment or discharge. This process can also provide some removal of some suspended solids.Part D. Supporting Information

Section 2: Definition of Ke y Terms CBM Questionnaire



### D-6 Evaporation— The process by which water or other liqui d becomes a gas. Water from land areas,
bodies of water, and all other moist surfaces is absorbed into the atmosphere as a vapor.

Filtration— This treatment technology relies on the difference in size between the pore and the particle to be removed. Low-Pressure Filtrati on typical involves using can include direct media filtration using one or more layers of granular medi a such as sand and/or anthracite with coagulation. High-Pressure Filtration typically uses a driving force to transport wastewater through a membrane, which separates the wastewater into two flows: permeate and retentate (e.g., microfiltration, ultrafiltration, and reverse osmosis).

Fiscal Year— A 12-month period over which a company budgets its spending. A fiscal year does not always begin in January and end in Decembe r; it may run over any period of 12 months.

Groundwater— Water in a saturated zone or stratum beneath the surface of land or water.

Hurdle Rate— The required rate of return in a discounted cash flow analysis, above which an

investment makes sense and below which it does not. Often, this is based on the firm's cost of capital

or weighted average cost of capital, plus or minus a risk premium to reflect the project's specific risk
characteristics; also calle d required rate of return.

Income Statement— An accounting report showing various categories of revenues, expenses, interest payments, taxes, and net income.

Indirect Discharge— The discernible, confined, and discrete conveyance of pollutants to a publicly owned, privately owned, federally owned, combined, or other treatment works.

Infiltration— The process by which water penetrates into soil from the ground surface

Injection Well (Deep or Shallow Well Injection) — Any bored, drilled, or driven shaft or a dug hole, improved sinkhole, or a subsurface fluid distribu tion system where the depth is greater than the largest surface dimension that is used to dispose of fluids underground. See underground injection.

Interest Expense— An expense for interest on a loan.

Intermittent Flow— A flow regime characterized by flows th at occur sporadically, seasonally, or for only a portion of time during normal operations.

Ion Exchange (IX) — Treatment process using a resin formul ated to adsorb cationic or anionic species to remove pollutants from an influent stream.

Lake— A body of freshwater or saltwater surrounded by land.

Landfill— A natural or man-made formation in the earth into which solid waste, sludges, or other process residuals are placed for permanent disposal.

Lease Bid— Amount (generally a lump sum at time of leas e acquisition) paid to the mineral rights owner to hold the property for a period of time, wh ether or not the lease is developed. This does not include rental payments, which may be charged over time, nor does it include royalties, which are paid only once production begins.Part D. Supporting Information

Section 2: Definition of Ke y Terms CBM Questionnaire



### D-7 Limited Liability Corporation or Company— A type of company, authorized only in certain states, whose owners and managers receive the limited liability and (usually) tax benefits of an S Corporation without having to conform to the S corporation restrictions.

Limited Liability Partnership— See limited liability corporation.

Long-term Debt— Liabilities that are paid off over periods greater than 1 year, including mortgages, notes, bonds, debentures, long-term leases, bank debt, and deferred income taxes.

Maximum Daily Flow— The maximum flow in a 24-hour period.

Membrane Filtration— Separation processes that use a memb rane as the filter mechanism.

Mineral Rights Owner— Party owning the rights to minerals ben eath land that has been or will be used for the purposes of producing minerals or hy drocarbons. Party may or may not own the rights

to the land surface. See surface owner.

NAICS— NAICS is an economic classification system. Economic units that use like processes to produce goods or services are group ed together. These units are assigned a code for identification purposes. US Census Bureau ( http://www.census.gov/epcd/www/naics.html ). Common 6-digit NAICS in the CBM extraction industry include 2 11111, Crude Petroleum & Natural Gas Extraction; 213111, Drilling Oil and Gas Wells; 213112, S upport Activities for Oil and Gas; 212111, Bituminous Coal & Lignite Surface Mining; 21 2112, Bituminous Coal Underground Mining;
221210, Natural Gas Distribution; 221112, Fossi l Fuel Electric Power Generation; and 324110

Petroleum Refineries.

Nanofiltration— A method of water treatment that utilizes membranes to remove hardness, bacteria, viruses, and organic-related color.

Net Income— Gross sales minus taxes, interest, depreciation, and other expenses.

Net Sales— Gross sales minus returns, discounts, and allowances (investorwords.com).

NPDES Permit Program— The National Pollutant Discharge Elimination System (NPDES) program authorized by Sections 307, 318, 402, a nd 405 of the Clean Water Act that applies to facilities that discharge wastewater directly to United States surface waters. For the CBM industry, operators are required to obtain NPDES permits fo r their direct discharges to surface waters.

Operating and Maintenance Cost— The ongoing, repetitive costs of operating a water system; for example, employee wages and costs for treatment chemicals and periodic equipment maintenance.

Operating Costs (income statement)— These are the recurring expenses which are related to the operation of a business.

Operator— The person responsible for the management and day-to-day operation of one or more CBM wells. The operator is generall y a working interest owner or a company under contract to the working interest owner(s).Part D. Supporting Information

Section 2: Definition of Ke y Terms CBM Questionnaire



### D-8 Other Assets (net of depreciation)— Any non-current assets (assets th at cannot be easily converted to cash) other than property, plant and equipment.

Owner Firm— The next level up in the corporate hierar chy from the owner/operator. This firm owns the owner/operator firm or division, regardle ss of whether the owner/op erator is a contract operator or a working interest operator.

Owner/Operator— The entity (firm or division, if a prof it center) responsible for the management and day-to-day operation of a well. The owner/operator is generall y a working interest owner or a company under contract to the working interest owner(s). Management decisions might include whether well(s) should be shut-in, worked over or abandoned, whether additional or replacement
wells should be drilled, whether additional or di fferent production equipment should be installed, and any other decision factor used by DOE in the General Instructions to Form EIA-23.

Payback Period— The amount of time taken to break even on an investment . Since this method ignores the time value of money and cash flows after the payback period , it can provide only a partial picture of whether th e investment is worthwhile.

Payments to Principal— Payments made on the principal portion of a loan or other borrowing mechanism classified as long-term debt (exc ludes the interest paym ents on these loans).

Pollutant— Under the Clean Water Act, a dredged spoil, solid waste, incinerator residue, filter backwash, sewage sludge, munitions, chemical waste, biological material, certain radioactive material, heat, wrecked or discarded equipment, rock sand, cellar dirt, and i ndustrial, municipal, and agricultural waste (40 CFR 122.2).

Pollution Prevention— The use of materials, processes, or practices that reduce or eliminate the creation of pollutants or wastes. It includes pr actices that reduce the use of hazardous and nonhazardous materials, energy, water, or other resources , as well as those practic es that protect natural resources through conservation or mo re efficient use. Pollution preven tion includes but is not limited to source reduction, in-process recycle and reuse, and water conservation practices.

Primary Collection Point— The first point in the Produced Water Management System where produced water from all wells flowing to one final destination are combined. In example 4, the sedimentation/equalization pond would be the primary collection point.

Privately Owned or Held— A company whose shares are not traded on the open market.

Privately Owned Treatment Works (PrOTW)— Any device or system owned and operated by a private entity and used for storage, treatment, recy cling, or reclamation of liquid industrial wastes.

Produced Water— Water drawn from any hydrologic unit for the purpose of producing hydrocarbons.Part D. Supporting Information

Section 2: Definition of Ke y Terms CBM Questionnaire



### D-9 Produced Water Management System— For the purposes of this questionnaire, Produced Water Management System is defined as a system that is managed by the operator as a single unit for produced water management. Produced water manageme nt may include different treatment, transfer to disposal locations, and/or reuse practices. The Produced Water Management System may treat water from a lease, field, proj ect, or plan of development (POD). Water discharge permits, land application permits, and applications for permits to drill (APD) typically use one of these terms to define the well grouping. Note that the Produced Water Management System can have multiple disposal options but it is managed as a single unit. For example, an operator may use a combination of stock tanks, irrigation, and storage ponds on a single Produced Water Management System. Also note that the Produced Water Management System ma y serve the same or different wells from the CBM project defined in Part A. Finally, for the pu rposes of this questionnaire, the PWMS does not include the produced water gathering system (e.g., pi ping or trucking) that is used to transport the produced water between the CBM wellhead and a cen tralized location (e.g., treatment unit, land application site). For example, produced water gathering pipes are typically installe d underground at the same time as the gas gathering pipes.

Produced Water Treatment or Treatment— The treatment of water with physical, chemical, biological, or other processes to remove specific pollutants from the water stream or to alter the physical or chemical state of specific pollutants in the water stream. Produced water treatment is performed to allow for discharge, dispos al or beneficial use of the water.

Profit Center— A business unit or department which is treated as a distinct entity enabling revenues and expenses to be determined so that profitability can be measured. For the purposes of this questionnaire a profit center is defined as an enti ty that tracks finances at least through earnings

before interest and taxes.

Property, Plant and Equipment— A type of asset a company owns that is vital to business operations but cannot be easily liquidated. The valu e of property, plant and equipment is typically depreciated over the estimated lif e of the assets, because even the longest-term assets become obsolete or useless after a period of time.

Publicly Owned or Held— A company which has issued securiti es through an offering, and which are now traded on the open market.

Publicly Owned Treatment Works (POTW)— Any device or system owned by a state or municipality that is used to recy cle, reclaim, or treat liquid munici pal sewage and/or liquid industrial

wastes.

Receiving Waters— A stream, river, or other surface wate r body to which wastewater or other pollutants are discharged.

Retained Earnings— Earnings not paid out as dividends but instead reinvested in the core business or used to pay off debt; also called earned surplu s or accumulated earnings or unappropriated profit.

Reverse Osmosis (RO)— A method of water treatment that involve s the application of pressure to a concentrated solution which causes the passage of a liquid from the concentrated solution to a weaker solution across a semi-permeable membrane. The membrane allows the passage of the solvent (water) but not th e dissolved solids (solutes ). This water treatment method is typically used

for desalinization and the removal of ions , radionuclides, bacteria, and viruses.Part D. Supporting Information

Section 2: Definition of Ke y Terms CBM Questionnaire



### D-10 River— Water which flows in a channel from high gr ound to low ground and ultimately to a lake or

sea.

Royalty Payments— Payments made to the mineral rights owner. These payments may be based on a percentage of the gas produced or as a percentage of the reve nues received. A royalty is not a working interest share (see working interest).

S Corporation— A form of corporation, allowed by the IR S for most companies with 75 or fewer shareholders, which enables the company to enjoy the benefits of incorporation but be taxed as if it were a partnership. Also calle d Subchapter S Corporation.

SEC Proved Reserves— Proved oil and gas reserves are the estimated quantities of crude oil, natural gas, and natural gas liquids which geol ogical and engineering data demonstrate with reasonable certainty to be recoverable in futu re years from known reservoirs under existing economic and operating conditions, i.e., prices and cost s as of the date the estimate is made. Prices include consideration of changes in existing prices provided only by contractual arrangements, but not on escalations based upon future conditions. See SEC SX Reg. 210.4-10 (November 18, 1981).

Sedimentation Pond— An impoundment constructed at the produ ced water treatment site to remove suspended solids from the produced water. These impoundments can also provide equalization of the produced water prior to treatment or discharge.

Selling, General and Administrative Costs— Income statement item which combines salaries,

commissions , and travel expenses for executives and salespeople, advertising costs, and payroll

expenses.

Severance Tax Payments— Payments made to a state for the right to remove a natural resource, usually applied to gas for use in another state.

Sludge— The accumulated solids and solid residues separated from liquids by settling or treatment.

Storage Pond— An impound for liquid wastes.

Sum of Liabilities and Owner Equity— Current Liabilities + Long-Term Debt + Retained Earnings + Other Owner Equity.

Surface Owner— Party owning land that has been or will be used for the purposes of producing minerals or hydrocarbons. Party may or may not own mineral rights beneath that land.

Surface Use Plan— Agreement between a landowner and a coalbed methane producer describing the conditions of land use for coalbed methane pr oduction including existing a nd proposed facilities (e.g. wells, roads, pipelines, and treatment syst ems), compensation for property damages, and

considerations for land reclamation.

Surface Waters— Waters of the United States including, but not limited to, oceans and all interstate
and intrastate lakes, rivers, streams, creeks, arroyos, mudflats, sand flats, wetlands, sloughs, wet meadows, playa lakes, and natural ponds (40 CFR 122.2).Part D. Supporting Information

Section 2: Definition of Ke y Terms CBM Questionnaire



### D-11 Technically Recoverable Reserves—Reserves recoverable given current technologies and industry practices and assuming no limitations on production due to market conditions.

Total Assets— Total Current Assets + Total Non-current Assets (including Property, Plant, and Equipment and Other Assets Net of Depreciation).

Treatment Unit— A unit operation used to remove pollutants from produced water. Treatment units
include, but are not limited to sedimentation ponds, ion exchange systems, and filters.

Ultimate Parent— The firm at the highest level of the corpor ate hierarchy. If the owner firm is not owned by another firm, the owner firm is the ultima te parent. If the owner/operator is not owned by any other firm, there is no ultimate parent.

Ultrafiltration (UF) — A method of water treatment that uti lizes membranes in a pressure-driven process for concentrating solutions containing colloids and higher molecular weight materials. This water treatment method typically removes viruses, colloids, clays, bacteria, humic acids, and fulvic
acids, but not ions or radionuclides.

Underground Injection— The technology of placing fluids underg round, in porous formations of rocks, through wells or other similar conveyance systems. See injection well.

Unusual Expenditure— An expenditure that does not occur every y ear and that is more than 10 percent of O&M (e.g., major storm damage causes large outlay for repai rs); or a capitalized one-time or capital cost not considered a lease acquisition or development cost (e.g ., construction of a septic system or a building not directly associated with production) and is not a cost covered in Part C.



### Water Reuse— Beneficial use of coalbed methane pr oduced water (e.g., livestock watering, irrigation, or dust control) in lieu of discharge/disposal.

Wellhead Price of Gas— The price of gas at the wellhead, whic h is different from the price at natural gas hubs, reflecting the im plicit cost to transport the gas to buyer, including the cost of gathering, compression, dehydration, etc.

Working Interest— Percentage of ownership in an oil and gas lease granting its owner the right to explore, drill and produce oil and gas from a tract of property. Working intere st owners are obligated

to pay a corresponding percentage of the cost of leas ing, drilling, producing and operating a well or unit. After royalties are paid, the working in terest also entitles its owner to share in production revenues with other working intere st owners, based on the percentage of working interest owned. Working interest is not royalty; mineral rights owners who do not have working interests do not contribute to the costs of production.

Workover, Stimulation, or Recompletion— Major, intermittent tasks. Workovers are major maintenance or remedial treatments on a well. Well stimulation includes fracturing, for example, either performed initially or later in the producti ve life of the well. Recompletion is a process undertaken to restore the productivity of a well, including to complete a well in a new stratum or

strata.Part D. Supporting Information

Section 2: Definition of Ke y Terms CBM Questionnaire



### D-12 Zero Discharge— Disposal of produced water other than by direct discharge to surface water or by indirect discharge to a POTW. Zero discharge does not allow for pe riodic or infrequent discharges
attributed to activities such as maintenance, blowdown, or system purges. Examples include evaporation, underground injection, cont ract hauling, and/or water reuse.

### 12 SECTION 3: SMALL BUSINESS DEFINI TIONS AND NAICS IDENTIFICATION



### SBA allows small businesses to self-certify (subject to challenges, if they arise), which means that if you classify yourself as a small bus iness, EPA will assume you have made this designation in good faith and will accept this designation.

The Small Business Administration (SBA) defi nes small businesses in the following way:

“The Small Business Act states that a small business concern is "one that is independently owned and operated and which is not dominant in its field of operation." The law also states that in determining what constitutes a small business, th e definition will vary from industry to industry to reflect industry diffe rences accurately. SBA's Small Business Size Regulations implement the

Small Business Act's mandate to SBA. SBA has also established a table of size standards, matched to North American Industry Classi fication System (NAICS) industries.”



### The following table lists NAICS codes that are li kely to be common among CBM operators. It also lists the current SBA definitions of small business for each of these likely NAICS codes. If, for any reason, you are not certain of your NAICS , the following website can be accessed using a key word search: http://www.census.gov/na ics/2007/index.html ; alternatively, you can use http://www.census.gov/naics/2007/NAICOD07.HTM , if you prefer to scroll through the definitions by type of industry. Note that cl icking on the NAICS codes provides a definition of the industry in question.

If you do not see an applicable NAICS in this table, you can refer to SBA’s Table of Size
Standards, accessible at http://www.sba.gov/idc/groups/public/docum ents/sba_homepage/serv_sstd_tablepdf.pdf

. Alternatively, if you prefer, you can cont act the EPA help line for assistance.

NAICS Name of Industry SBA Small Business Size

Standard

211xxx Oil and Gas Extraction ≤ 500 employees

21211x Coal Mining ≤ 500 employees

213111 Drilling Oil and Gas Wells ≤ 500 employees

213112 Support Activities for Oil and Gas Operations ≤ $6.5 million annual revenues

213113 Support Activities for Coal Mining ≤ $6.5 million annual revenues

22111x Electric Power Generation <4 million mW-hrs/year

221112 Fossil Fuels Electric Power Ge neration <4 million mW-hrs/year

22112x Electric Power, Transmission, Control and

Distribution <4 million mW-hrs/year

22121x Natural Gas Distribution ≤ 500 employees

32411x Petroleum Refineries ≤ 1,500 employees

486110 Pipeline Transportation of Crude Oil ≤ 1,500 employees

486210 Pipeline Transportation of Natural Gas ≤ $6.5 million annual revenues

The size standards are not the only standards th at apply, however. SBA further defines small business in such a way that any business concern that is affiliated with a large business or, in many cases, a foreign firm cannot be considered a small business. SBA defines affiliation as:

### 13 h. General Principles of Affiliation.

i. Concerns and entities are affiliates of each other when one c ontrols or has the power to control the other, or a third part y or parties controls or has the power to

control both. It does not matter whether c ontrol is exercised, so long as the power to control exists.

ii. SBA considers factors such as ownership, managemen t, previous relationships with or ties to another concern, and contractual relationships, in determining

whether affiliation exists.

iii. Control may be affirmative or negative. Negative control includes, but is not limited to, instances where a minority sh areholder has the ability, under the concern's charter, by-laws, or sharehol der's agreement, to prevent a quorum or otherwise block action by the board of directors or shareholders.

iv. Affiliation may be found where an individual , concern, or entit y exercises control indirectly through a third party.

v. In determining whether affiliation exis ts, SBA will consider the totality of the circumstances, and may find affiliation even though no single factor is sufficient

to constitute affiliation.



### Examples of affiliation would include a subsidiary of a large firm, a firm owned 50 percent or more by a large firm, and a joint venture by a small firm and a large firm. Even if the joint
venture itself meets size standards, this affilia tion would render the joint venture a large firm.
However, if two small firms, each of which meets SBA size standards, join in a joint venture, the joint venture is also considered a small firm if it meets size standards. Another example of

affiliation is a business concern that has as a cor porate officer a person who is a corporate officer of a large firm. Small firms associated with la rge venture capital firms or investment firms through their investments in the small firm , however, are not cons idered affiliated.Rev. 1 January 27, 2010 Appendix A, PG QAPP–CBM Detailed Study Questionnaires Page 1 of 87



# Appendix A

Final Detailed QuestionnaireOctober 2009 

# U.S. ENVIRONMENTAL PROTECTION AGENCY

DETAILED QUESTIONNAIRE FOR THE

COALBED METHANE EXTRACTION SECTOR

Form Approved

OMB Control No. 2040-0279 Approval Expires 2/29/12

The public reporting and recordkeeping burden for this collection of information is estimated to average approximately 80 hours per response. Burden means the to tal time, effort, or financial resources expended by persons to generate, maintain, retain, or disclose or prov ide information to or for a Federal agency. This includes the time needed to review instructions, develop, acquir e, install, and utilize tec hnology and systems for the purposes of collecting, validating, and verifying in formation, processing and maintaining information, and disclosing and providing information; adjust the existi ng ways to comply with any previously applicable instructions and requirements; train personnel to be able to respond to a collection of information; search data sources; complete and review the collection of informati on; and transmit or otherwise disclose information. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a currently valid OMB control number.

To comment on the Agency’s need for this informati on, the accuracy of the provided burden estimates, and any suggested methods for minimizing respondent burden, including the use of automated collection techniques, EPA has established a public docket fo r this ICR under Docket ID No. EPA-HQ-OW-2006-0771, which is available for pub lic viewing at the Water Docket in the EPA Docket Center (EPA/DC), EPA West, Room B102, 1301 Constitution Ave., NW, Washington, DC 2000 4. The EPA Docket Center Public Reading Room is open from 8:30 a.m. to 4:30 p.m., M onday through Friday, excluding legal holidays. The telephone number for the Reading Room is (202) 566-1744, and the telephon e number for the Water Docket is (202) 566-2426. An electronic version of the public docket is available through the federal data management system (FDMS) at http://www.regulations.gov. Use FDMS to submit or vi ew public comments, access the index listing of the contents of the public docket, and to access those do cuments in the public docket that are available electronically. Also, you can send comments to the Office of Information and Regulatory Affairs, Office of Management and Budget, 725 17 th Street, NW, Washington, DC 20503, A ttention: Desk Officer for EPA. Please include the EPA Docket ID No. EPA-HQ-OW-2006-0771 and OMB control number (2040-0279) in any correspondence.General Instructions CBM Questionnaire

i Operator ID:
INTRODUCTION

The U.S. Environmental Protection Ag ency (EPA) is conducting a survey of coalbed methane (CBM) extraction operations. EPA will use the res ponses collected in this detailed questionnaire to in form its decision on whether to initiate a rulemaking to potentially revise the effluent guidelines for the Oil and Gas Extraction Point Source Category (40 CFR 435) to include limit s for pollutants discharged in CBM produced water. This questionnaire is not focused on conventional oil and gas extraction. Any r egulatory decisions resulting from this survey will not affect conventional oil and gas operations. The te chnical data collected will be used to determine the characteristics of CBM produced wa ter, potential environmental impacts, existing management, beneficial use, and disposal practices for CBM produced water, and the related costs for this industry sector. The financial and

economic data collected will be used to characterize the ec onomic status of the industry sector and to estimate the possible economic impacts of potential technology and beneficial use options for CBM produced water. EPA is conducting this survey as part of its annual review of existing effluent guidelines, which is required by the Clean Water Act (CWA) sections 301(d) and 304(b). You must respond to this questionnaire if you operated a CBM well

in 2008.

EPA is conducting this survey under the authority of Section 308 of the Clea n Water Act (Federal Water Pollution Control Act, 33 U.S.C. Section 1318). You must respond to this questionnaire within 60 days of receiving it unless EPA authorizes an extension (see page ii). Failure to respond, late filing, or failure to comply with the instructions may result in criminal fines, civil penalties, and other sanctions, as provided by law.

OVERVIEW OF THE QUESTIONNAIRE

The questionnaire is divided into three parts: Part A lists the projects operated by your company that have been selected for this questionnaire, Part B contains financial and economic information, and Part C contains produced water management information. The parts are divided into the following sections:

PART A: CBM PROJECTS SELECTED FOR QUESTIONNAIRE AND CERTIFICATION

Part A of the questionnaire identifies the projects select ed for this questionnaire. The questions in Parts B and C pertain only to the projects listed in Part A. You are re quired to provide information in Part B, Section 3, and Part C, Sections 2 through 4, for each of the projects identified in Part A.

PART B: FINANCIAL AND ECONOMIC INFORMATION

INSTRUCTIONS FOR PART B

SECTION 1: CONTACT INFORMATION

SECTION 2: FIRM-LEVEL FINANCIAL QUESTIONS

SECTION 3: PROJEC T-LEVEL QUESTIONS

The financial and economic data collected in Part B of this questionnaire will be used to characterize the economic status of the industry and to estimate the po ssible economic impacts of wastewater regulations. The questions in Part B pertain to calendar years 2006 through 2008.

PART C: PRODUCED WATER MANAGEMENT INFORMATION

INSTRUCTIONS FOR PART C

SECTION 1: GENERAL OPERATOR INFORMATION

SECTION 2: PRODUCED WATER MANA GEMENT SYSTEM GENERAL QUESTIONS

SECTION 3: DETAILED PRODUCED WATE R MANAGEMENT AND TREATMENT QUESTIONS

SECTION 4: PRODUCED WATER QUALITY DATA

The information requested in Part C of this questionnai re will be used to analyze produced water production rates, produced water characteristics, and produced water m anagement, treatment, and disposal practices. Part C requests information for calendar year 2008.

PART D: SUPPORTING INFORMATION

SECTION 1: LIST OF ACRONYMS

SECTION 2: DEFINITION OF KEY TERMS

SECTION 3: SMALL BUSINESS DEFINI TIONS AND NAICS IDENTIFICATIONGeneral Instructions CBM Questionnaire

Operator ID:

ii COMPLETION OF THE QUESTIONNAIRE

Each section of the questionnaire should be comple ted by the person(s) most knowledgeable about the information requested. The corporate official or designee re sponsible for directing or supervising the response to the questionnaire must sign the Ce rtification Statements on page A-2 to verify and validate the information provided.

Keep a Copy of the Completed Questionnaire

Please keep a copy of the completed questionnaire, including attachments . EPA will review the information submitted and may request your cooperation in answer ing follow-up questions, if necessary, to complete analyses.

QUESTIONNAIRE ASSISTANCE

EPA Coalbed Methane Help Lines

Phone Line (Leave Voice Mail for a Resp onse within One Business Da y)........................................................1-8 00-864-9230 Internet Electronic Mailing Address (Respons e within One Business Day)........................................ cb mdetaile d@pgenv .com

Please contact the help line if you would like to schedule an appointment for assistance with completing the questionnaire.

WHEN TO RETURN QUESTIONNAIRE

You must respond to this questionnaire within 60 days of receiving it.

If you wish to request an extension, you must do so in writing within 30 days of receipt of this questionnaire. Written requests may be e-mailed to Mr. Carey Johnst on at johnston.carey@epa. gov with “CBM Survey Extension Request” in the e-mail subject line or may be mailed to:

United States Postal Service One- or Two-Da y Delivery (e.g., FedEx) Mr. Carey Johnston Mr. Carey Johnston U.S. EPA, Office of Water U.S. EPA, Office of Water Mail Code: 4303T Room 6231G, EPA West 1200 Pennsylvania Avenue, NW 1301 Constitution Avenue, NW Washington, DC 20460 Washington, DC 20004

Extension requests will be evaluated on a case-by-case basis. Submittal of an extension request to EPA does not alter the due date of your q uestionnaire unless and until EPA agrees to the extension and est ablishes a new date.

WHERE TO RETURN QUESTIONNAIRE

After completing the questionnaire and certifying the inform ation that it contains, pl ease use the enclosed mailing label to mail the completed questionnaire to:

U.S. Environmental Protection Agency CBM Industry Survey c/o PG Environmental, LLC 570 Herndon Parkway, Suite 500
Herndon, VA 20170General Instructions CBM Questionnaire

Operator ID:

iii REQUESTING AN ELECTRONIC VERSI ON OF THE QUESTIONNAIRE

If you would like an electronic version of the questi onnaire, it is available on the EPA Web site at:

http://www.epa.gov/guide/cbm/.

CONFIDENTIAL BUSINESS INFORMATION

If no business confidentiality claim accompanies the information when it is received by EPA, EPA may make the information available to the public without further notice.

Regulations governing the confidentiality of business information are contained in the Code of Federal Regulations (CFR) at Title 40 Part 2, Subpart B. You may assert a business confidentiality claim covering part or all of the information you submit, other than effluent data and information or data that is otherwise publicly

available , as described in 40 CFR 2.203(b):

“(b) Method and time of asserting business confidentiality claim. A business which is submitting information to EPA may assert a busi ness confidentiality claim covering t he information by placing on (or attaching to) the information, at the time it is submitted to EPA, a cover sheet, stamped or typed legend, or other suitable form of notice complying language su ch as ‘trade secret,’ ‘proprietary,’ or ‘company confidential.’ Allegedly confidential portions of ot herwise non-confidential documents should be clearly identified by the business, and may be submitted sepa rately to facilitate identification and handling by

EPA. If the business desires confidential treatment only until a certain date or until the occurrence of a
certain event, the notice should so state.”

You may claim as confidential all information included in the response to a question by checking the Confidential Business Information (CBI) box next to the question numb er. Alternatively, all questions marked with a CBI check box may be claimed confidential now by checking the box at the end of this paragraph. If you do not check this box, any individual response where “CBI” is NOT checked will be consid ered nonconfidential. Note that you may be required to justify any claim of confidentiality at a later time . Note also that facility effluent data are not eligible for confidential treatment, pursuant to Section 308(b) of the Clean Water Act, and thus will be treated as nonconfidential even if the CBI box is checked. In addition, information that is publicly-available should not be claimed

confidential . Note also that information claimed confidential can not be accessed, verified, or used by the industry at a later date to evaluate data and analyses supporting the result s of the CBM study.



### Check Here to Claim All Eligible Data are CBI

Information covered by a claim of confidentiality will be disclosed by EPA only to the extent of, and by means of, the procedures set forth in 40 CFR Part 2, Subpart B. In general, submitted informat ion protected by a business confidentiality claim may be disclosed to other employees , officers, or authorized representatives of the United States concerned with implementing the Clean Water Act. Exemption 4 of the Freedom of Information Act (FOIA) protects from disclosure "trade secrets and commercial or financial information obtained from a person and privileged or confidential. " See 5 U.S.C. 552(b)(4).

Information covered by a claim of confidentiality will be made available to EPA cont ractors under EPA Contract Numbers No. 68-C02-095, EP-C-07-029, and EP-C-05-030 to en able the contractors to perform the work required by their contracts with EPA. All EPA c ontracts provide that contractor employ ees use the information only for the purpose of performing the work required by their cont racts and will not disclose any CBI to anyone other than EPA without prior written approval fr om each affected business or from EPA’s legal office. EPA has approved written procedures for each contractor on how they will gather, safeguard, and secure CBI. Any comments you may wish to make on this issue must be submitt ed in writing along with your completed survey.Part A. CBM Projects Selected for Questi onnaire and Certification CBM Questionnaire

Operator ID:

A-1 

### PART A. CBM PROJECTS SELECTED FOR QUESTIONNAIRE AND

CERTIFICATION

A1-1. Did you respond to EPA’s screener questionnaire on CBM projects?

Yes. Continue with Question A1-2.

No. Skip to Question A1-3.

A1-2. You have been selected by EPA to respond to questions about projects you identified in EPA’s screener survey sent to you on February 27, 2009. EPA has select ed the following projects in its representative sampling of CBM projects for this surv ey (Note: if no projects are listed in Table A-1 below, please contact the EPA Coalbed Methane Help Line):

[This table will be pre-populated based on information collected in the screener questionnaire.]

Table A-1. Projects Selected for this Questionnaire

Project Identifier Count of Wells Productive in 2008 (from screener)

For each of the projects listed in Table A-1 , EPA requests that you prov ide identifying information on all wells that were actively producing either water or gas in 2008. The number of wells with identifying information submitted should match the nu mber of wells listed in Table A-1 (reported in your screener survey). Reasons for any discrepancies should be reported in the Comments section in Question A1-4. You may use Table A-2 to fill in this information or y ou can submit your own printout or electronic form, whichever is more convenient. Make as many copies of the table as you need, ensuring that the relevant project identifier is written on the top right hand corner of the page.

Please provide the API number for each well in the project unless the well is located in Kansas, Virginia, or Indiana. List the API number in Column A of Table A-2 if you choose to use this table. Please follow the instructions below for Kansas, Virginia, and Indiana and enter the information into Column B of Table A-2 if using this table.

• Kansas -The well identifying information should be the lease/permit number that is in the form of a six-digit number, e.g., 221405.

• Virginia -The well identifying information should be the permit number that is in the form of a 2-letter and 4-digit number combination, e.g., BU-0390.

• Indiana -The well identifying information should be the permit number that is in the form of a 5-digit number, e.g., 50125.

If you have projects listed in Table A-1, please skip Question A1-3. Remember to sign the Certification Statement on page A-2 after completing the rest of the questionnaire.Part A. CBM Projects Selected for Questi onnaire and Certification CBM Questionnaire

Operator ID:

A-2 A1-3. According to EPA’s information, you did not receive a screener questionnaire, but most likely you operated only one or two CBM projects in 2008. A CBM project comprises a well, group of wells, lease, group of leases, or recognized unit for which you operated as an economic unit when making production decisions in 2008 . If you did not operate any CBM wells in 2008 or if you had another concern about whether your organization is the appropriate respondent for this questionnaire, please contact the EPA help line for further instructio ns. Otherwise, EPA reque sts that you provide identifying information on all CBM wells that were acti vely producing water or gas in 2008, by project. EPA recognizes that such gr oupings can change ov er time, so define your proj ect(s) in a way that is best representative of your production decision grouping in 2008.

Please provide an identifying name or number for your project (Project ID) in the top right-hand corner of Table A-2 which must be completed for each CBM project you identify (you will need to copy the table if you have more than one project). You will need to use this project identifier in other sections of this survey questionnaire.

Please provide the API number in Column A for each well in the project unless the well is located in Kansas, Virginia, or Indiana. Please follow the instructions below for Kansas, Virginia, and Indiana and enter the information into Column B of Table A-2 if using this table.

• Kansas – The well identifying information should be the lease/permit number that is in the form of a six-digit number, e.g., 221405.

• Virginia – The well identifying information should be the permit number that is in the form of a 2-letter and 4-digit number combination, e.g., BU-0390.

• Indiana – The well identifying information should be the permit number that is in the form of a 5-digit number, e.g., 50125.

Remember to sign the Certification Statement on page A-2 after completing the rest of the questionnaire.Part A. CBM Projects Selected for Questi onnaire and Certification CBM Questionnaire

Operator ID:

A-3 Table A-2. Well Identifying Information for All Ac tively Producing Wells for Project ID

______ (Submit One Copy for Each Project Listed in Table A-1 or Requested in Question A1-3.)

Column A

API Number (Excluding Kansas, Virginia, Indiana) Column B

Permit Number (Kansas, Virginia, Indiana Only)Part A. CBM Projects Selected for Questi onnaire and Certification CBM Questionnaire

Operator ID:

A-4 Copy of

A1-4. Comments on Part A. Please cross-reference your comments by question number. If you need additional space, please photocopy this page before writing on it , and number each copy in the space provided.

Question

Number Comment

CBI?

Yes

CBI?

Yes

CBI?

Yes

CBI?

Yes

CBI?

Yes

CBI?

Yes

CBI?

Yes

CBI?

Yes

CBI?

Yes

CBI?

Yes

CBI?

Yes

CBI?

Yes

CBI?

YesPart A. CBM Projects Selected for Questi onnaire and Certification CBM Questionnaire

Operator ID:

A-5 CERTIFICATION STATEMENT

I certify under penalty of law that the attached questi onnaire was prepared under my direction or supervision and that qualified personnel properly gathered and eval uated the information submitted. The information submitted is, to the best of my knowledge and belief, ac curate and complete. In those cases where we did not possess the requested information for questions applicable to our operations, we prov ided best estimates. We have to the best of our ability indicated what we believe to be company confidential business information as defined under 40 CFR Part 2, Subpart B. We understand that we may be require d at a later time to justify our claim in detail with respect to each item claimed confi dential. I am aware that there are significant penalties for submitting false information, in cluding the possibility of fines and im prisonment as explained in Section

308 of the Clean Water Act.

Signature of Certifying Official Date

( ) - Printed Name of Certifying Official Telephone Number of Certifying Official

Title of Certifying Official

Facility Name

(Continue to Part B, Section 1 of the questionnaire, complete all sections, and return the questionnaire along with the signed Certification Statem ent to the address provided on page ii.)Part B. Financial and Economic Information

Section 1: Contact Information CBM Questionnaire

Operator ID:

B-1 

### PART B. FINANCIAL AND EC ONOMIC INFORMATION

SECTION 1: CONTACT INFORMATION

GENERAL INSTRUCTIONS FOR SECTION 1

This section of the questionnaire is designed to collect general operator information pertinent to Part B, including contact information.

Indicate information that should be treated as confiden tial by checking the Confidential Business Information (CBI) box next to each question number with responses containing CBI. Any response where "CBI" is not checked will be considered non-confidential unless you have previously indicated that all eligible information

should be considered confidential. Refer to the instructions giv en in the CONFIDENTIAL BUSINESS INFORMATION section on page ii for additional information regarding EPA' s confidentiality procedures set forth in 40 CFR Part 2, Subpart B.

B1-1. Provide the name, title, telephone and facsimile numbers, and e-mail address of the primary contact at your operation for information supplied in the firm-level financial and economic portions of the questionnaire ( Part B, Section 3)

.

( ) - Primary Contact Name Telephone Number

( ) - Primary Contact Title Facsimile Number

Convenient time to call between:

Email Address am / pm and

am / pm (Eastern Time)

B1-2. Provide the name, title, telephone and facsimile numbers, and e-mail address of the primary contact at your operation for information supplied in the proj ect-level economic and financial portions of this questionnaire ( Part B, Section 2 ), if different from the primary contact above.

( ) - Primary Contact Name Telephone Number

( ) - Primary Contact Title Facsimile Number

Convenient time to call between:

Email Address am / pm and

am / pm (Eastern Time)

B1-3. If you know that other facilities in your fi rm have received this questionnaire and would like to reference the firm-level information provided by another respondent, please provide the operator ID (shown at the top of each page of the questionnai re) of the respondent who is submitting Part B Section 2 for your firm: CBI?

Yes

CBI?

Yes

CBI?

YesPart B. Financial and Economic Information

Section 2: Firm-Level Financia l Questions CBM Questionnaire

Operator ID:

B-2 SECTION 2: FIRM-LEVEL FINANCIAL QUESTIONS

Instructions: Section 2 of this survey is focused primarily on collecting firm-level financial information at the lowest corporate level for which it is available or c an be reasonably estimated. This level is considered the “immediate owner/operator.” Most respondents to this det ailed questionnaire were identified using a screener

survey.

For those who were not asked to respond to a screener survey, the detailed questionnaire has been sent to the entity that is listed in state oil and gas commission (or similar agency) databases as the operator of one or more CBM wells within the state. Because the survey is focused on the lowest corporate level, the appropriate respondent should be the “immediate owner/o perator,” who is the entity responsible for management and/or day-to-day operation of this project and makes the following types of decisions:



### • Whether well(s) should be shut-i n, worked over or abandoned.



### • Whether additional or replacement wells should be drilled into a reservoir



### • Whether additional or different production equipment should be installed; and



### • Any other decision factor used by DOE in the General Instructions to Form EIA-23 (see also definition of management decisions in the Definitions of Ke y Terms section at the end of the questionnaire).

If you are an owner who manages a contract operator to oversee the operation of the project or projects, you are still considered the immediate owner/operator for the purposes of th is questionnaire. EPA is aware that you might need to consult with or send portions of this que stionnaire to your contract operator for assistance in completing the survey.

If you have any concerns that your organization is not the appropriate respondent for this survey, please contact the EPA help line. As an example, if you have a working interest in one or more CBM wells but do not operate or manage the well or wells yourself, nor do you oversee a contract operator for this work, you will need to contact the EPA help line.

EPA would like at least some minimum information on th ree levels of corporate hierarchy, if applicable: immediate owner/operator, owner, and parent or ulti mate parent. Some immediate owner/operators are independent (not owned by any other firm). Others have owner firms above them in the hierarchy. The owner firm, in turn, may be owned directly or through other in termediate parents by an ul timate parent, which is the highest level of the corporate hierarchy. In many case s, information requested from higher levels of the corporate hierarchy will include only the names of key corporate entities.

Additionally, some immediate owner/operators are owned by more than one owner firm (e.g., joint ventures). EPA will be requesting only the corporate names of join t owners; financial inform ation will be requested only from the firm created as the joint vent ure (e.g., a limited liability corporation).Part B. Financial and Economic Information

Section 2: Firm-Level Financia l Questions CBM Questionnaire

Operator ID:

B-3 B2-1. Describe the position in the corporate hierarch y of the immediate owner/operator (as defined above). If the location to which this questionnaire was mailed is, for example, a field office and not considered a separate corporate entity for accounting purposes, you may need to confer with corporate staff to complete Part B, Section 2. In this case, check the box that applies to the lowest level in your corporate hierarchy where accoun ting statements (audited or unaudited) are recorded. This may be at the division level or at a higher firm level, depending on your circumstances. If you are not sure how to answer this question, please contact the EPA help line.

(Choose only one of the following.) Independent owner/operator. This firm is not owned or affiliated with any other firm. Skip to

Question B2-4. Joint venture. This firm is owned by at leas t two other firms (not individuals). Continue with

Question B2-2. Division or profit center. This entity is owned by no more than one owner firm, although the owner firm, in turn, might be a subsidiary or a joint venture. Continue with Question B2-2. Subsidiary firm. This firm is owned by no mo re than one owner firm (portions may be publicly held). The owner firm, in turn, might be a subs idiary or a joint venture, however. Continue

with Question B2-2.

B2-2. If the immediate owner/operator is, in turn, ow ned by an owner firm or firms (is not an independent owner/operator), what is the corporate name (o r names, if a joint venture) of the owner(s)?

B2-3. What is the name of the ultimate parent company (or companies, if a joint venture) for the immediate owner/operator? (If there is only one owner firm ab ove the immediate owner/operator, it should be listed in Question B2-2. In this case, please respond “none”.)

B2-4. In 2008, was your highest level of corporate ownership a small business under the Small Business Administration (SBA) definitions? If you responded to this question in EPA’s screener questionnaire, the response you provided at that time has be en transferred to this questionnaire and you do not need to respond further to this question. Otherwise , please refer to page D-2 for definitions that may assist in answering this question. If you need fu rther assistance beyond that provided in Part D, please contact the EPA help line. [NOTE: Questi on will be prepopulated if you provided a screener answer.]

Yes

No

B2-5. What is the 6-digit NAICS code for the i mmediate owner/operator? Please refer to page D-2 for definitions that may assist in answering this que stion. If you need any further assistance, please contact the EPA help line and EPA will hel p you make this determination. CBI?

Yes

CBI?

Yes

CBI?

Yes

CBI?

Yes

CBI?

YesPart B. Financial and Economic Information

Section 2: Firm-Level Financia l Questions CBM Questionnaire

Operator ID:

B-4 B2-6. Is the immediate owner/operator a contract operator only (owns no working interests in any CBM projects)?

Yes

No

B2-7. What is the organization type of the immediate owner/operator?

C Corporation S Corporation, Limited Liability Corpor ation, or Limited Liability Partnership

Division or Profit Center. Owner firm is a: C Corporation S Corporation, Limited Liability Corpor ation, or Limited Liability Partnership

Other:

Other:

B2-8. Are you required to use the cost-depletion method (unit of production) in computing your depletion allowance for tax purposes? (That is, you, your owne r firm, or your corporate parent is considered a vertically integrated firm under IRS rules.)

Yes

No

B2-9. What was the 2008 employment at the immediate owner/operator? Please include any local contract labor, but do not allocate overhead employment from higher corporate levels.

a. Total 2008 employment was

b. 2008 employment attributable to CBM operations was (estimate if necessary).

B2-10. In 2008, was all produced water from all CBM projects operated by the immediate owner/operator injected into a receiving formation in a Class II injection well under the UIC program?

Yes. You have completed Part B, Section 2. Continue with Part B, Section 3 on page B-2.

No. Continue with Question B2-14.

Instructions: The following questions should be answered at the lowest level of firm organization at which

substantial financial decisions are made on CBM operations (e.g., decisions on major capital investments or major production decisions for an individual project, such as converting from discharge of produced water to subsurface injection, or whether to develop a new or abandon an existing CBM project). This may be the operator or the operator’s owner firm, for example, or even higher in the corporate hierarchy, such as at a parent firm. Questions B2-11 through B2-14 ask for info rmation critical to evaluating CBM project decisions and/or understanding the financial situation reflected in the information provided in this section.

B2-11. Indicate the corporate level at which major in vestment decisions (such as those discussed above) are

made:

Immediate Owner/Operator Owner Firm(s) Other. Name of entity: EPA intends to make assumptions abou t the method of capital investment analysis and cost of capital for projects you operate. You can agree to these assumptions if they seem to reflect your operation adequately, or you can provide alternative assu mptions if you feel these assumptions are not appropriate to your operation. If this decision is made at a higher level and you do not know the answers to these questions, you have the option of indicating you do not know. If you leave the questions unanswered or you indicate that you do not know, EPA will use the assumptions outlined in the questions. CBI?

Yes

CBI?

Yes

CBI?

Yes

CBI?

Yes

CBI?

Yes

CBI?

YesPart B. Financial and Economic Information

Section 2: Firm-Level Financia l Questions CBM Questionnaire

Operator ID:

B-5 B2-12. EPA plans to use a net present value analysis to determine the extent to which costs of various produced water alternatives that are analyzed affect the profitability of the project, up to and including a finding that it is not economical to install and op erate produced water management alternatives (i.e., a project with an estimated positive net present va lue is estimated to have a negative net present value if additional costs of produced water ma nagement are incurred). (Choose one answer.)

Agree or Don’t Know. We understand EPA will use the assumption discussed above. Disagree. We would prefer EPA consider an analysis as descri bed in the comments section on page B-2.

B2-13. EPA plans to use the average pre-tax cost of capital as recommended by OMB, which assumes an average investment risk. With no inflation considered , this rate is 7 percent. This rate corresponds roughly to a 10 percent interest rate, for example, if a 3 percent inflation rate is assumed throughout the time frame of the analysis. (Choose one answer).

Agree or Don’t Know. We understand EPA will use the assumption discussed above. Disagree. We would prefer EPA to use the follo wing figure to represent our pre-tax cost of capital. Provide the nominal rate (i.e., do not s ubtract an inflation rate from this figure).

%

B2-14. EPA will also investigate the impact of alter native produced water manag ement costs using a hurdle rate for future projects (the re turn required to undertake a projec t). EPA plans to use a hurdle rate (not including inflation) in sensitivity analyses rangi ng from 12% to 22%. This would be equivalent to a

hurdle rate that includes a factor for inflation of roughly 15% to 25% (assuming a 3 percent factor).

Agree or Don’t Know. We understand EPA will use the assumption discussed above. Disagree. We would prefer EPA to use the follo wing figure (nominal, including inflation) to represent our hurdle rate:

%

Instructions: The following questions (B2-15 through B2-25) ask for income statement (through net income) and balance sheet information. Information is requested at the lowest level in the corporate hierarchy at which such information is kept.

B2-15. If you qualify as a small business under SBA definitions and answered YES to Question B2-4, you have the option of providing just your accounting re ports or income tax returns (e.g., Schedule C) for the years 2006, 2007, 2008, showing income and bala nce sheet information. EPA will fill out most of the information needed using your accounting reports or returns.

Yes. We are a small business and are opti ng to have EPA prepare the answers to Questions B2-16 to B2-22 for us. We are providing an es timate of the percentage of our earnings (net revenues minus operating costs minus deprecia tion) attributable to CBM production in 2006,
2007, and 2008:

2006: %

2007: %

2008: %. Skip to Question B2-23.

No. Continue with Question B2-16. CBI?

Yes

CBI?

Yes

CBI?

Yes

CBI?

YesPart B. Financial and Economic Information

Section 2: Firm-Level Financia l Questions CBM Questionnaire

Operator ID:

B-6 B2-16. Instructions: If you are a small business and have opted to have EPA prepare answ ers to Questions
B2-16 to B2-22, please skip to Question B2-23

.

EPA understands that audited financial data may not be available at the immediate owner/operator level in the corporate hierarchy, but wishes to assess impacts on the most sensitive portion of the corporation and encourages good faith estimates or unaudi ted financial data if this is what is available at this level. If you are not comfortable with an es timate, you can opt to answer at a higher level, but please answer all income statement questions (Questions B2-16 through B2-19) at the same corporate level. You will be able to use either an es timate or “NA” to apply to some line items that might not be recorded at a division level, if th is is the level at which you are responding.

Income Statement Information: Questions B2-17 through B2-19 ask for revenues, costs and expenses, and earnings, interest, taxes and net income (loss). To the extent possible, provide this

information at the immediate owner/ operator level, whether a profit center or firm. EPA acknowledges that some items, such as depreciation, taxes, and interest might be kept only at a higher corporate level in some cases, although some or all of t hese may be routinely estimated for planning purposes. In this case, EPA would like these estimates. If you can provide all but depreciation, taxes, and interest at the immediate owner/operator level, please do so, using “NA” for depreciation, taxes and interest. Otherwise, information at the next higher le vel (owner firm) is acceptable. Please indicate the corporate level at which these income statement data are being provided.

Immediate Owner/Operator Owner Firm (from Question B2-2) Other (list corporate name):

B2-17. What were your organization’s revenues for 2006-2008? Report in nearest thousands of dollars (i.e., if net sales were $1,253,779, please report as $1,254,000 ; zeroes have been provided already). If you would like EPA to know that y ou estimated any line item, you c an indicate this by checking ( ) the estimate column (Est.).

Est. Revenues 2006 2007 2008

a. Net sales and other operating revenues (all operations, including non-oil and gas related revenues) , ,000 , ,000 , ,000

b. Revenues attributable to all oil and gas operations (including CBM) , ,000 , ,000 , ,000

c. Revenues attributable to CBM operations only , ,000 , ,000 , ,000

d. Other income (Specify): , ,000 , ,000 , ,000

e. Total revenues (a plus d) , ,000 , ,000 , ,000 CBI?

Yes

CBI?

YesPart B. Financial and Economic Information

Section 2: Firm-Level Financia l Questions CBM Questionnaire

Operator ID:

B-7 B2-18. What were your organization’s operating ex penses for 2006-2008? Report in nearest thousands of dollars (i.e., if operating costs were $1, 253,779, please report as $1,254,000 ; zeroes have been provided already). If depreciation information is not recorded at the corporate level represented in the income statement information provided above, or is not usually estimated for your corporate level, please insert NA. If depreciation is routinely estima ted or you opt to estimate depreciation, please provide the information. If you would like EPA to know that you estimat ed any line item, you can indicate this by checking ( ) the estimate column (Est.).

Est. Costs and Expenses 2006 2007 2008

a. Operating costs (all operations) , ,000 , ,000 , ,000

b. Operating costs attributable to all oil and gas operations (including CBM) , ,000 , ,000 , ,000

c. Operating costs attributable to CBM operations only , ,000 , ,000 , ,000

d. Selling, general, and

administrative costs , ,000 , ,000 , ,000

e. Depreciation, depletion, and

amortization , ,000 , ,000 , ,000

f. Royalty payments , ,000 , ,000 , ,000

g. Severance tax payments , ,000 , ,000 , ,000

h. Other costs (Specify): , ,000 , ,000 , ,000

i. Total costs and expenses (a plus d through h) , ,000 , ,000 , ,000

B2-19. What were your organization’s earnings and net income for 2006-2008? Report in nearest thousands of dollars (i.e., if earnings were $1,253,779, please report as $1,254,000 ; zeroes have been provided already). If tax and/or interest information is not recorded at the corporate level represented in the income statement information provided above, or is not usually estimated for your corporate level, please insert NA. If these items are routinely esti mated or you opt to estimate them, please provide the estimates. If you would like EPA to know that y ou estimated any line item, you can indicate this by checking ( ) the estimate column (Est.).

Est. Earnings and Net Income 2006 2007 2008

a. Earnings before interest and taxes (Question B2-17e minus Question B2-18i) , ,000 , ,000 , ,000

b. Interest expense , ,000 , ,000 , ,000

c. Federal and state income tax , ,000 , ,000 , ,000

d. Net income or net loss (a minus b minus c) , ,000 , ,000 , ,000 CBI?

Yes

CBI?

YesPart B. Financial and Economic Information

Section 2: Firm-Level Financia l Questions CBM Questionnaire

Operator ID:

B-8 B2-20. Balance Sheet Questions: Questions B2-21 through B2-23 ask for assets, liabilities and equity information, as well as information on payments to principal. EPA acknowledges that balance sheets might be kept only at a higher corporate level than the income statement information provided, in some cases, although some or all of these may be routinely estimated for planning purposes. In this case, EPA would like these estimates. If you can pr ovide estimates at the immediate owner/operator level, please do so. If not, information at the next high er level (owner firm) is preferred to information at higher levels of the corporation, even if at this level, the information is unaudited. Please indicate

the level at which these balance sheet and other data are being provided:

Immediate Owner/Operator Owner Firm (from Question B2-2) Other (list corporate name):

B2-21. What were your company’s assets in 2008? Repo rt in nearest thousands of dollars (i.e., if assets were $1,253,779, please report as $1,254,000 ; zeroes have been provided already). If you would like EPA to know that you estimated any line item , you can indicate this by checking ( ) the estimate column (Est.).

Est. Assets 2008

a. Current assets , ,000

b. Property, plant, and equipment (net of depreciation) , ,000

c. Other assets (net of depreciation) , ,000

d. Total assets (sum of a through c) , ,000

B2-22. What were your company’s liabilities and equity in 2008? Report in nearest thousands of dollars (i.e., if total liabilities were $1,253,779, please report as $1,254,000 ; zeroes have been provided already). If you would like EPA know that you estimated any lin e item, you can indicate this by checking ( ) the estimate column (Est.).

Est. Liabilities and Equity 2008

a. Current liabilities (includi ng accounts payable, accrued expenses and taxes, and the current portion of long-term debt) , ,000

b. Long-term debt (including bonds, debentures, long-term leases, bank debt, and all other noncurrent liabilities such as deferred income taxes) , ,000

c. Retained earnings , ,000

d. Other owner equity (not including retained earnings) , ,000

e. Sum of liabilities and owner equi ty (sum of a, b, c, and d) , ,000 CBI?

Yes

CBI?

Yes

CBI?

YesPart B. Financial and Economic Information

Section 2: Firm-Level Financia l Questions CBM Questionnaire

Operator ID:

B-9 B2-23. This question asks for payments to principal ov er 3 years. Payments to principal are cash outlays made to pay back long-term debt, excluding intere st payments (similar to a mortgage payment, which can also be split between payments to principal a nd interest). These payments should relate to the long-term debts reported in Question B2-22 or those shown in the financial statements submitted in response to Question B2-15. Pl ease provide these payments in:

a. 2006? $ , ,000 This is an estimate: (optional check box)

b. 2007? $ , ,000 This is an estimate: (optional check box)

c. 2008? $ , ,000 This is an estimate: (optional check box)

B2-24. The income statement and balance sheet inform ation reflect a fiscal year starting in (month):

IMPORTANT : If you have provided your financial informati on in Questions B2-16 through B2-22, submission of financial reports is optiona l and you may skip to Section 3, Part B . Please note that a benefit of submitting your financial reports in addition to comple ting Questions B2-16 through B2-22 is that submission of these financial reports may reduce the need for EPA to contact you for clarifications on your answers to Questions B2-16 through B2-22. If, however, you opted to have EPA complete these questions for you as a small business as indicated in Question B2-15, the submission of financial reports or tax returns is not optional

.

B2-25. Please provide financial statements.

Instructions: For those who choose to or must provide such information, please include copies of all 2006-2008 financial statements that would be needed or were used to compile the answers to Questions B2-16 through B2-22 above with your completed questionnaire. These may be accountant reports, annual reports, Federal income tax retu rns (e.g., Schedule C), and/or 10-K reports. Include
income statements, balance sheets, and associated notes for your organization to the extent possible, preferably at the lowest level in the co rporation at which information is kept. If you have included such financial statements, please check the “attached” box.

Attached. CBI?

Yes

CBI?

Yes

CBI?

YesPart B. Financial and Economic Information Section 3: Project-Level Q uestions CBM Questionnaire

Operator ID:

B-10 SECTION 3: PROJECT-LEVEL QUESTIONS

Instructions: This section asks for information from the operator of the project or projects identified in Part A, where operator is defined as the person responsible for the management and day-to-day operation of this project or projects as defined in Section 2 and in the definitions section of this questionnaire. If your project numbers have not been prepopulated in the tables that follow, please use the project identifiers you assigned the project in Table A-2

.

If you own but do not operate the project in question, and you are not able to complete some or all of the information, please contact your contract operator to obta in answers to questions for Section 3. Alternatively, you may remove Section 2 of the questionnaire and provi de the remaining portions of the questionnaire to your contract operator. You are re sponsible for obtaining the questionnai re from your contract operator, recompiling the questionnaire, signing the certification pages, and returning the entir e questionnaire to EPA.

If your project(s) operates in a reservoir that has been unitized, please include information only for that portion of the unit you operate, and provide the unit number or other group identifier in Question

B3-9.

[Note: Please make additional copies of Table B-1 through Table B-3 if Part A contains more than 3 projects].Part B. Financial and Economic InformationSection 3: Project-Level QuestionsCBM QuestionnaireOperator ID:B-11Table B-1. General Project Information—Projects through Year End 2008 [Please enter the project name from Part A in the first table row]QuestionProjectProjectProjectProject Identifier InformationCBI?YesB3-1. Name or Identifier of Project.CBI?YesB3-2. Name of Field(s). Indicate “unnamed” if no namehas been assigned.CBI?YesB3-3. Is this project considered a wildcat project?YesNoYesNoYesNoCBI?YesB3-4. Does this project commingle CBM withconventional oil and gas or other unconventionalproduction (e.g., tight shale)?NOTE:unless otherwise specified, all furtherquestions relatingtogas production or waterproduction in Part B pertain to total(conventional,other unconventional,andCBM) production.Yes. Continue withQuestion B3-5.No.Skip to QuestionB3-9.Yes. Continue withQuestion B3-5.No.Skip to QuestionB3-9.Yes. Continue withQuestion B3-5.No.Skip to QuestionB3-9.CBI?YesB3-5.If you commingle CBM with conventional oiland gas or other unconventional production,what percentage of the gas and water producedfrom this project was extracted from coalbeds in2008 (%) (estimate if necessary)?a. Gas%b. Water%a. Gas%b. Water%a. Gas%b. Water%CBI?YesB3-6.If you commingle CBM withconventional/other production,what was theoil production from this project in 2008 (bbls)?bblsbblsbblsCBI?YesB3-7.If you commingle CBM with conventional/other production,is the average royalty rate onthis oil the same as that for gas? If no, pleaseprovide the royalty rate; if not applicable or therate is the same as that for gas, please insert“NA.”%%%CBI?YesB3-8.If you commingle CBM withconventional/other production,in what yeardid conventional/other gas and/or oil productionbegin?Part B. Financial and Economic InformationSection 3: Project-Level QuestionsCBM QuestionnaireOperator ID:B-12QuestionProjectProjectProjectCBI?YesB3-9. Unit Number, or other group identifier (ifrelevant)Skip to Question B3-11 if not part ofa formal unit.CBI?YesB3-10. Indicate the percentage of annual production onthe unit in 2008 associated with your portion ofthe unit (%).%%%Numbers of Wells in Project at Year End 2008CBI?YesB3-11. Total actively producing (water or gas) in 2008.(Note this should match number reported inTable A-2.).VerticalHorizontalVerticalHorizontalVerticalHorizontalCBI?YesB3-12. Total approved drilling permits consideredapplicable to this project in 2008.VerticalHorizontalVerticalHorizontalVerticalHorizontalCBI?YesB3-13. Spudded, drilling, or completed (productionpending) in 2008.VerticalHorizontalVerticalHorizontalVerticalHorizontalCBI?YesB3-14. Inactive (shut in, temporarily abandoned, orother non-productive status, e.g., permanentlyabandoned, during all of 2008).VerticalHorizontalVerticalHorizontalVerticalHorizontalBasic Historic InformationCBI?YesB3-15. Did you initiate development for this project ordid you acquire a project that another operatordeveloped? If you initiated development, enterthe year in which you acquired the first lease. Ifyou acquired all or part of an existing project,enter the year in which you acquired the project.For the purpose of this questionnaire, anyprojects or portions of projects acquired fromanother operator after lease acquisitionbutbefore developmentare considered part of thelease acquisition process. However, if youacquired any projects or portions of projectsafterinitiating development of the first lease tocreate a larger project, complete both the “firstlease acquired” and “acquired project” dates.First Lease AcquiredAcquired Project (if youanswer here,skip to PageB-2).First Lease AcquiredAcquired Project (if youanswer here,skip to PageB-2).First Lease AcquiredAcquired Project (if youanswer here,skip to PageB-2).CBI?YesB3-16. Did you answer the “first lease acquired ”question with any answer that wasearlier than2004OR did you answer the “project acquired”question?Yes.Skip to Page B-2.No. Continue withQuestion B3-17.Yes.Skip to Page B-2.No. Continue withQuestion B3-17.Yes.Skip to Page B-2.No. Continue withQuestion B3-17.Part B. Financial and Economic InformationSection 3: Project-Level QuestionsCBM QuestionnaireOperator ID:B-13STOP BEFORE PROCEEDING!Please review Part Cof this questionnaire before beginning theremainder of Part B. Part C covers all costs of produced watermanagement after final gas/water separation. Exclude all of theseproduced water management costsin Part B Section 3 of thisquestionnaire.Part B. Financial and Economic InformationSection 3: Project-Level QuestionsCBM QuestionnaireOperator ID:B-14Table B-2 requests additional historic information on your projects. Note that good faith estimates are acceptable, including averages or typical values,where information is difficult to quantify.You may note if you have provided an estimate, where applicable, in the box to thefar left shown as “Est.”Instructions:If you indicated this project began prior to 2004, or if you acquired any portion of the project after development began (i.e., beyond justlease acquisition),skip to Page B-2.Otherwise, provide information for Questions B3-17 through B3-44 on project costs and timing forany projectyou initiated as of January 2004 or later that you have operated continuously since that time(i.e., you did not acquire any portion of the projectin any stage of development beyond lease acquisition). Report dollar amounts in nearestthousands of dollars where indicated (i.e., if leasedevelopment costs were $1,253,779, please report as $1,254,000; zeroes have been provided already). Note: if you have less than 100 percentworking interest, provide the financial information for theentireproject, not just your share.Remember to exclude all produced water management costs covered in Part C from Table B-2.One term that EPA uses in this table isunusual expenditures. There might be two types of unusual expenditures—those that are amortized (i.e.,capitalized) and those that are expensed (i.e.,generally considered a part of O&M but the expendituredoes not occur in every yearand is a relativelylarge percentage of O&M). For the purposes of this survey, an unusual expenditure is defined as:1) An expenditure that does not occur everyyear and that is more than 10 percent ofO&M (e.g., major storm damage causes largeoutlay for repairs); or2) A capitalized one-time or capital costnot considered a lease acquisition or development cost (e.g. construction of a septicsystem or abuilding not directly associated with production) and is not a cost covered in Part C.If you are uncertain of which cost category any of your expenditures belong, you can provide the expenditure(s) with a description in thecomments section, or you can contact the EPA help line.[Note: Please make additional copies of Table B-2if Part A contains more than 3 projects].Part B. Financial and Economic InformationSection 3: Project-Level QuestionsCBM QuestionnaireOperator ID:B-15Table B-2. Project History [Please enter the project name from Part A in the first table row]QuestionProjectProjectProjectGeneral QuestionsCBI?YesEst.?YesB3-17. Between January 1, 2004 and December 31,2008 (2004-2008), did you do any exploratorydrilling for CBM in the basin in which thisproject is located (including for this project, ifapplicable)?Yes. Continue withQuestion B3-18.No.Skip to QuestionB3-20.Yes. Continue withQuestion B3-18.No.Skip to QuestionB3-20.Yes. Continue withQuestion B3-18.No.Skip to QuestionB3-20.CBI?YesEst.?YesB3-18. In this basin, between 2004 and 2008, whatwas your average exploratory well success ratefor CBM (% of exploratory wells that result in aproject that produces or is expected to producecommercial gas)? (including for this project, ifapplicable)? (%)%%%CBI?YesEst.?YesB3-19. Between 2004 and 2008, what was youraverage cost per well to drill exploratory wellsin this basin (including for this project, ifapplicable)?$ , ,000$ , ,000$ , ,000Lease Acquisition CostsCBI?YesEst.?YesB3-20. Sum of lease acquisition amounts, 2004-2008.Include legal and administrative costs butexclude lump sum payments or cost ofamenities provided to surface owners. ($000)$ , ,000$ , ,000$ , ,000CBI?YesEst.?YesB3-21. Year(s) of lease(s) acquisition (e.g., 2004,2005).CBI?YesEst.?YesB3-22. Totallump sum(2004-2008) paymentsassociated with securing the leases other thanthose to mineral rights owners, such as thoseto surface owner(s) (all leases). Also includetotal costs incurred to provide surface ownerswith amenities in lieu of lump sum payments.Do not include royalties, rents, or otherrecurring payments. ($000)$ , ,000$ , ,000$ , ,000Part B. Financial and Economic InformationSection 3: Project-Level QuestionsCBM QuestionnaireOperator ID:B-16QuestionProjectProjectProjectLease Development CostsCBI?YesEst.?YesB3-23. Total one-time outlays on project developmentthrough December 31,2007Include allplanning, geological and geophysical costs,and any site development costs not included asdrilling costs (see definition of well drilling costsin Appendix D). Exclude all permit costs,drilling costs (as defined in Appendix D),stimulations, recompletions, and any costs forwater management systems included inPart C). Note: 2008 data is requested later.($000).$ , ,000$ , ,000$ , ,000CBI?YesEst.?YesB3-24. Total costs of allwell drilling through December31, 2007 (through tophole equipment, e.g.,Christmas tree); see definition of drilling costsin Appendix D ($000). Do not includerecompletions. Note: 2008 data is requestedlater.$ , ,000$ , ,000$ , ,000CBI?YesEst.?YesB3-25. Total costs of permit application fees andassociated costs to prepare permit applications(e.g., one-time costs to perform permit-relatedstudies, etc.) through end of 2007. (Do notinclude ongoing costs of monitoring,recordkeeping, and reporting or any costsrelated to produced water managementpermitting, e.g., NPDES or UIC permits,covered in Part C.) ($000)$ , ,000$ , ,000$ , ,000Project Development ScheduleCBI?YesEst.?YesB3-26. Year site preparation work began (e.g., 2004).CBI?YesEst.?YesB3-27. Year drilling began.CBI?YesEst.?YesB3-28. Year water production began.Part B. Financial and Economic InformationSection 3: Project-Level QuestionsCBM QuestionnaireOperator ID:B-17QuestionProjectProjectProjectCBI?YesEst.?YesB3-29. Year CBM gas production began (do notinclude conventional gas or oil or otherunconventional production, if applicable).CBI?YesEst.?YesB3-30. Year of peak water production (NA if waterproduction has not yet peaked).CBI?YesEst.?YesB3-31. Water produced in peak year (bbls) (NA ifwater production has not yet peaked).bblsbblsbblsCBI?YesEst.?YesB3-32. Year of peak gas production (CBM andconventional oil and gas or otherunconventional production, if applicable) (NA ifgas production has not yet peaked).CBI?YesEst.?YesB3-33. Gas produced in peak year (MMBtu) (CBM andconventional/other production, if applicable)(NA if gas production has not yet peaked).MMBtuMMBtuMMBtuOperating and Maintenance Costs of ProjectCBI?YesEst.?YesB3-34. In 2004 through 2007, what were your O&Mcosts for this project by year? Include anyregularly recurring costs, such as labor andenergy costs, lease rental costs, annualpayments to surface owners, or recurring costsassociated with permits (e.g., monitoring,recordkeeping and reporting or other suchpayments) that are not related to producedwater management. Exclude all costs ofproduced water management covered inPart C. Also exclude any costs of workovers,stimulations, recompletions, or other activities ifthese are consideredunusual expendituresand reported in Questions B3-35 or B3-44 (seedefinition ofunusual expendituresin theinstructions to Table B-2 or in the Part D,Definition of Key Terms). If your project wasnot active in a year shown, please indicate withNA. ($000)2004: $ , ,0002005: $ , ,0002006: $ , ,0002007: $ , ,0002004: $ , ,0002005: $ , ,0002006: $ , ,0002007: $ , ,0002004: $ , ,0002005: $ , ,0002006: $ , ,0002007: $ , ,000Part B. Financial and Economic InformationSection 3: Project-Level QuestionsCBM QuestionnaireOperator ID:B-18QuestionProjectProjectProjectOther Expenditures Associated with ProjectCBI?YesEst.?YesB3-35. What was the total cost of workovers,stimulations, and recompletions through yearend 2007 ($000)? If not incurred, indicate 0. Ifany of these activities is considered routineO&M and was included in Question B3-34,indicate NA:WorkoversStimulationsRecompletions$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000CBI?YesEst.?YesB3-36. Total number of such activities through yearend 2007. If not incurred indicate 0. If any ofthese activities is considered routine O&M andwas included in Question B3-34, indicate NA:WorkoversStimulationsRecompletionsCBI?YesEst.?YesB3-37. Were any one-time outlays onunusualexpendituresfor amortized items incurred as ofyear end 2007 on this project that were notincluded in development or drilling costs(Questions B2-23 and B2-24) or in B3-35 asstimulations and recompletions? (See definitionofunusual expendituresabove in instructionsto Table B-2.)Yes. Continue withQuestion B3-38.No.Skip to QuestionB3-41.Yes. Continue withQuestion B3-38.No.Skip to QuestionB3-41.Yes. Continue withQuestion B3-38.No.Skip to QuestionB3-41.CBI?YesEst.?YesB3-38. If you incurredunusual expendituresthat wereamortized, what were they for? If more space isneeded, please use the comments page at theend of this section.Part B. Financial and Economic InformationSection 3: Project-Level QuestionsCBM QuestionnaireOperator ID:B-19QuestionProjectProjectProjectCBI?YesEst.?YesB3-39. When did theseunusual expendituresthatwere amortized occur (Year, e.g., 2004)? Ifmore space is needed, please use thecomments page at the end of this section.$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000CBI?YesEst.?YesB3-40. What was your one-time total outlay on theseunusual expenditureamortized items? ($000) Ifmore space is needed, please use thecomments page at the end of this section.$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000CBI?YesEst.?YesB3-41. Were any otherunusual expendituresfor O&Mincurred as of year end 2007 on this projectthat you excluded in Question B3-34 (O&Mcosts) but did not include in Question B3-35(workovers, stimulations, recompletions)? Donot include produced water costs reported inPart C. See definition ofunusual expendituresin instructions to Table B-2.Yes. Continue withQuestion B3-42.No.Skip to Page B-2.Yes. Continue withQuestion B3-42.No.Skip to Page B-2.Yes. Continue withQuestion B3-42.No.Skip to Page B-2.CBI?YesEst.?YesB3-42. If you incurredunusual expendituresfor O&Mcosts, what were they for? If more space isneeded, please use the comments page at theend of this section.CBI?YesEst.?YesB3-43. When did theseunusual expendituresfor O&Moccur (Year, e.g., 2004)? If more space isneeded, please use the comments page at theend of this section.CBI?YesEst.?YesB3-44. How much did theseunusual expendituresforO&M cost? ($000) If more space is needed,please use the comments page at the end ofthis section.$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000Part B. Financial and Economic InformationSection 3: Project-Level QuestionsCBM QuestionnaireOperator ID:B-20Table B-3 requests information about your project in 2008.Note that good faith estimates, including averages or typical values, where informationis difficult to quantify are acceptable. Please note if you have provided an estimate, where applicable, in the box to the farleft shown as “Est.”Instructions:Respond to questions forall projects, regardless of when the project began development or when you acquired the project. Reportlarge dollar amounts in nearest thousands of dollars where indicated (i.e., if fixed operating costs were $1,253,779, please report as $1,254,000;zeroes have been provided already).Note: if you have less than 100 percent working interest, provide the financial information for theentireproject, not just your share.Remember to exclude all produced water management costs covered in Part C from Table B-3.One term that EPA uses in this table isunusual expenditures. There might be two types of unusual expenditures—those that are amortized (i.e.,capitalized) and those that are expensed (i.e.,generally considered a part of O&M but the expendituredoes not occur in every yearand is a relativelylarge percentage of O&M). For the purposes of this survey, an unusual expenditure is defined as:1) An expenditure that does not occur everyyear and that is more than 10 percent ofO&M (e.g., major storm damage causes largeoutlay for repairs); or2) A capitalized one-time or capital costnot considered a lease acquisition or development cost (e.g., construction of a septic system ora building not directly associated with production) and is not a cost covered in Part C.If you are uncertain of which cost category any of your expenditures belong, you can provide the expenditure(s) with a description in thecomments section, or you can contact the EPA help line.[Note: Please make additional copies of Table B-3if Part A contains more than 3 projects].Part B. Financial and Economic InformationSection 3: Project-Level QuestionsCBM QuestionnaireOperator ID:B-21Table B-3. Current (2008) Operations at Your Projects [Pleaseenter the project name from Part A in the first table row]QuestionProjectProjectProjectGeneral InformationCBI?YesEst.?YesB3-45. If this is a single lease project, indicate type oflease (fee, federal, state, tribal, other) andskipto Question B3-47. Otherwise indicate NAand answer B3-46.CBI?YesEst.?YesB3-46. If this is a unit ormulti-lease project, list thenumber of each type of lease.FeeFederalStateTribalOtherFeeFederalStateTribalOtherFeeFederalStateTribalOther2008 Drilling ExpendituresCBI?YesEst.?YesB3-47. What was the total costof all well drilling in thisproject in 2008 (excluding recompletions)? Seedefinition of drilling cost in Appendix D. ($000)$ , ,000$ , ,000$ , ,000CBI?YesEst.?YesB3-48. What was the total number of all wells drilled inthis project in 2008 (excluding recompletions)?2008 Project Development CostsCBI?YesEst.?YesB3-49. What was the total outlay on all activitiesrelated to project development in 2008?Exclude drilling costs, stimulation costs andany produced water management costs thatare reported in Part C. Also exclude any leaseacquisition costs if included in Table B-2.($000)$ , ,000$ , ,000$ , ,000Part B. Financial and Economic InformationSection 3: Project-Level QuestionsCBM QuestionnaireOperator ID:B-22QuestionProjectProjectProject2008 Operating and Maintenance Costs of ProjectCBI?YesEst.?YesB3-50. What were your 2008 total operating andmaintenance costs of gas production? Includeany regularly recurring costs, such as laborand energy costs, lease rental costs, annualpayments to surface owners, or recurring costsassociated with permits (e.g., monitoring,recordkeeping and reporting or other suchpayments) that are not related to producedwater management. Exclude all costs ofproduced water management covered inPart C. Also exclude any costs of workovers,stimulations, recompletions, or other activitiesif these are consideredunusual expendituresand reported in Questions B3-52 or B3-58 (seedefinition ofunusual expendituresin theinstructions to Table B-3 or in the Part D,Definition of Key Terms). ($000).$ , ,000$ , ,000$ , ,000CBI?YesEst.?YesB3-51. In 2008, please estimate the percentage ofO&M costs that would have been incurred hadthe project been temporarily shut in throughoutthe year. This factor should account for anylabor to check on equipment, any annualpayments to surface owners, leaseholdpayments, permit costsnot related to producedwater management or other expenditures thatmight occur regardless of production. EPA willassume this percentage is 5 percent of total2008 O&M unless you specify otherwise.We estimate%We accept the 5%estimateWe estimate%We accept the 5%estimateWe estimate%We accept the 5%estimatePart B. Financial and Economic InformationSection 3: Project-Level QuestionsCBM QuestionnaireOperator ID:B-23QuestionProjectProjectProjectOther Expenditures Associated with ProjectCBI?YesEst.?YesB3-52. What was the total cost of workovers,stimulations, and recompletions in 2008($000)? If not incurred, indicate 0. If any ofthese activities is considered routine O&M andwas included in Question B3-50, indicate NA:WorkoversStimulationsRecompletions$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000CBI?YesEst.?YesB3-53. Were any one-time outlays onunusualexpendituresfor amortized items incurred onthis project in 2008 that were not included indevelopment or drilling costs (Questions B3-47or B3-49) or in Question B3-52 understimulations or recompletions? (See definitionof unusual expendituresin instructions to TableB-3.) Exclude any costs for produced watermanagement that are included in Part C.Yes. Continue withQuestion B3-54.No.Skip to QuestionB3-56.Yes. Continue withQuestion B3-54.No.Skip to QuestionB3-56.Yes. Continue withQuestion B3-54.No.Skip to QuestionB3-56.CBI?YesEst.?YesB3-54. If you incurredunusual expendituresforamortized items, what were they for? If morespace is needed, please use the commentspage at the end of this section.CBI?YesEst.?YesB3-55. What was the total one-time outlay on theseunusual expenditureamortized items? ($000) Ifmore space is needed, please use thecomments page at the end of this section.$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000Part B. Financial and Economic InformationSection 3: Project-Level QuestionsCBM QuestionnaireOperator ID:B-24QuestionProjectProjectProjectCBI?YesEst.?YesB3-56. Were any otherunusual expendituresfor O&Mincurred on this project as of year end 2008 onthis project that you excluded in Question B3-50 (O&M costs) but did not include in QuestionB3-52 (workovers, stimulations,recompletions)? Do not include producedwater costs reported in Part C. See definitionofunusual expendituresin instructions to TableB-3.Yes. Continue withQuestion B3-57.No.Skip to QuestionB3-59.Yes. Continue withQuestion B3-57.No.Skip to QuestionB3-59.Yes. Continue withQuestion B3-57.No.Skip to QuestionB3-59.CBI?YesEst.?YesB3-57. If you incurredunusual expendituresfor O&M,what were they for? If more space is needed,please use the comments page at the end ofthis section.CBI?YesEst.?YesB3-58. How much did theseunusual expendituresforO&M cost? ($000) If more space is needed,please use the comments page at the end ofthis section.$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,0002008 Production, Royalties, and TaxesCBI?YesEst.?YesB3-59. What was the totalgas production from thisproject in 2008? (MMBtu)MMBtuMMBtuMMBtuCBI?YesEst.?YesB3-60. What was the total gassold from this project in2008? (MMBtu)MMBtuMMBtuMMBtuCBI?YesEst.?YesB3-61. What was the total gasused by this project in2008? (MMBtu)MMBtuMMBtuMMBtuCBI?YesEst.?YesB3-62. What was the minimum, average, andmaximum wellhead price received for sold gasfor this project in 2008? ($.$$/MMBtu)$min$average$max$min$average$max$min$average$maxPart B. Financial and Economic InformationSection 3: Project-Level QuestionsCBM QuestionnaireOperator ID:B-25QuestionProjectProjectProjectCBI?YesEst.?YesB3-63. What was this project’s total water productionin 2008? (Provide estimate if this was notmeasured.) (bbls)bblsbblsbblsCBI?YesEst.?YesB3-64. What was your average working interest sharefor this project in 2008? (%)%%%CBI?YesEst.?YesB3-65. What was the average gas royalty rate for thisproject in 2008 (among all parties over allleases, including surface owner if relevant)?(%)%%%CBI?YesEst.?YesB3-66. What were the totalseverance taxes from thisproject in 2008? (% or $000)%$ , ,000%$ , ,000%$ , ,000CBI?YesEst.?YesB3-67. Were there any other taxes such as advalorem or production shares associated withthis project? Provide dollar amount and/orpercent and describe:%$ , ,000%$ , ,000%$ , ,000Reserves InformationCBI?YesEst.?YesB3-68. Do you report reserves information to SEC orto DOE using the EIA Form 23 survey?Yes. Continue withQuestion B3-69.No.Skip to QuestionB3-71.Yes. Continue withQuestion B3-69.No.Skip to QuestionB3-71.Yes. Continue withQuestion B3-69.No.Skip to QuestionB3-71.CBI?YesEst.?YesB3-69. What is the estimated remaining provedreserves associated with this project as ofDecember 31, 2008? (Prorate field estimatesto project, where necessary, and specify unitsused and estimation method.)Specify units (e.g., MMcf):Estimation Method:SEC Definition of Proved ReservesOther:CBI?YesEst.?YesB3-70. What discount rate and wellhead price wasused for this proved reserve estimate?$at%$at%$at%Part B. Financial and Economic InformationSection 3: Project-Level QuestionsCBM QuestionnaireOperator ID:B-26QuestionProjectProjectProjectCBI?YesEst.?YesB3-71.If available, what is the estimated remainingtechnically recoverable reserves (year end2008)? (Prorate field estimates to project,where necessary, and specify units used, e.g.MMcf.) Indicate NA if you do not computetechnically recoverable reserves.Specify units (e.g., MMcf):CBI?YesEst.?YesB3-72.If available, what is the projected remainingproductive life of this project in the technicallyrecoverable reserves estimate? (years)yearsyearsyearsCBI?YesEst.?YesB3-73. What was the cumulative gas production at2008 year end for this project?Specify units (e.g., MMBtu):CBI?YesEst.?YesB3-74. What was the cumulative water production at2008 year end for this project (estimate if notmeasured)?Specify units (e.g., thousand bbls):Part B. Financial and Economic Information Section 3: Project-Level Q uestions CBM Questionnaire

Operator ID:

B-27 

## Questions for Project ID

[Please provide a copy of Questions B3-75 through B3-102 for each project listed in Part A.]

FUTURE COSTS AND REVENUES

Instructions: EPA will need to project costs and revenues of this project over the next 10 years. EPA acknowledges that projections beyond 5 years are very uncertain and will project information beyond the 5 year horizon, unless respondents prefer to provide t hose estimates themselves. You have several options for providing projection information:

1) Provide your own estimate of costs and rev enues at the project over the next 5 years or through the end of your planning horizon (at least 3 years, including 2009, 2010, and 2011) in
Table B-4;

2) Accept certain assumptions EPA would plan to make in lieu of using your projections;

3) Provide your 5-year projection in Table B-4 plus an additional 5-year projection beyond the fifth year, which you can attach to the questionnaire separately;

4) Use a combination of any of these.

For respondents choosing not to do their own projections or choosing only to project certain information, EPA will rely on state information on production for the well s in your project to det ermine a production profile, where possible, information provided by other respon dents to this questionnaire, and/or best professional judgment. For any item you feel that EPA’s assumptions will not work for your project, you can fill out those items in the 5-year projection table (or provide a 10-year projection, if you choose) for any of Questions B3-87

to B3-102 in Table B-4. Please check which overall option you have chosen and follow the instructions associated with the opti ons you have selected.

B3-75. Please indicate how you would like to handle projec tions of project data requested in the remainder of this questionnaire. Check any that apply.

We request EPA make some or all of these projections based on the information provided below in Questions B3-76 through B3-86 for any items for which we have not provided a projection for in Table B-4. Instructions: Please complete Questions B3-76 through B3-86 for this project. You do not have to complete T able B-4, which asks for up to 5 years of yearby-year projections, unless you have opted out of certain assumptions and have chosen to provide a projection for one or more line items.

We will be skipping Questions B3-76 through B3 -86 and will provide year-by-year projection data for three to five years in Table B-4. Instructions: Please fill out Table B-4 for as many years as you have in your pl anning horizon. EPA is requesting your best judgment on these projections; the Agency is aware that projec tions are not certain. If the number of years requested exceeds your planning horizon, please indicate with NA in any remaining years. You may provide projections that include an assumption for inflation but provide that assumption in Question B3-102.

We have attached additional projections out to 10 years for some or all of the information shown in Table B-4 to this questionnaire. If your projections include an assumption for inflation, make sure to show that assu mption explicitly in your attachments. CBI?

YesPart B. Financial and Economic Information Section 3: Project-Level Q uestions CBM Questionnaire

Operator ID:

Project ID:

B-28 Instructions: EPA will make projections from 2008 or beyond your planning horizon (as shown in your responses to Table B-4) based on your answers to the following questions, your reported 2008 data, and any information provided in Table B-4. Please provide inform ation to the extent possible without considering the effects of inflation. If this is not possible, please note the inflation rate inherent in your answers in Question B3-102. If you have provided some proj ections in Table B-4, EPA will assu me further projections based on your answers to the following questions and/or either your last year’s reported values in Table B-4 or the patterns seen in the projections provided (assuming at least 3 years’ projections have been provided). For any of the Questions B3-76 through B3-86 that have not been answered and for which alternative information has not been provided in Table B-4 or attached to this questionnaire, EPA will assume you have agreed to EPA’s approach.

For the few projects where conventional oil is also produced, EPA will make the oil production projections and price projections, unless you provide oil production curves and/or other information with your questionnaire.

B3-76. Please provide the numbers of wells you plan to drill in this project over the next 5 years by year. If any years are beyond your planning horizon, please indicate with “NA.”

2008 2011

2009 2012

2010

B3-77. In what year do you estimate drilling will be co mpleted for this project, bas ed on your cu rrent plans (and barring any changes in regulations, changes in your assumptions about future gas prices, etc.)

B3-78. EPA will use estimated costs of drilling based on data collected in this questionnaire of the CBM industry, publicly available information, and best engi neering judgments as specific to your basin as possible to project drilling costs over 10 years. EPA will also assume drilling costs per well will not change by more than ordinary inflation (estimated as a function of the recent historic Producer Price Index for the oil and gas extraction industry) over the 10-year period (check any that apply):

We agree to this approach.

We would like EPA to use the followi ng average cost per well for drilling:

$ per well ($2008)

We would prefer EPA to cons ider the following factor incremental to inflation to represent drilling cost increases greater than inflation over time at our project:

$ % per year

B3-79. At this point in time, using your current as sumptions about wellhead prices, how much longer would you expect this project to produce economically?

We shut in this project in 2008. We shut in this project in 2009 or we plan to shut in this project in 2009. From one to 3 years. More than 3 years but less than or equal to 5 years. More than 5 years but less than or equal to 8 years. More than 8 years but less than or equal to 10 years. More than 10 years.

Unknown. CBI?

Yes

CBI?

Yes

CBI?

Yes

CBI?

YesPart B. Financial and Economic Information Section 3: Project-Level Q uestions CBM Questionnaire

Operator ID:

Project ID:

B-29 B3-80. EPA will use gas production data found in state reported production data to create gas production profiles for this project. Note that EPA has little to no historic gas producti on information from Indiana and Illinois and very dated information from Pennsylv ania, so production curves from operators in these states would be especially appreciated. If hi storic gas production data for this project are not publicly available, or if your project is too new to provide much information to create a production profile, EPA will use information that might be generat ed by this questionnaire considered likely to be most representative of your project, general inform ation on gas production profiles from the state or other published sources, and, if necessary, professional judgment or information from other, similar basins (if relevant) to create the gas production profile from this project.

We agree to this approach. We have attached a gas production curve for this project. We have attached a gas production curve for a typical well in this project. We have projected our gas volumes for this project in Table B-4. Other approach (provide information in comments section).

B3-81. EPA will use water production data found in stat e reported production data to create produced water production profiles for this proj ect. Note that EPA does not have any well-specific or lease-specific produced water production information from state age ncies in the following states: Arkansas, Kansas, Illinois, Indiana, Ohio, Oklahoma, and West Virginia . Also, if water reporting is voluntary and you do not report water to your state agency, EPA will not have this informat ion. Production curves, or any other production data, from operators in states where production data might be missing would be especially appreciated If historic water production data for this project are not publicly available, or if your project is too new to provide much inform ation to create a production profile, EPA will use information that might be generated by this questionna ire considered likely to be most representative of your project, general information on water produ ction profiles from the state or other published sources, and, if necessary, professional judgment or information from other states in the same or similar basins (if relevant) to create the water production profile from this project.

We agree to this approach. We have attached a water production curve for this project. We have attached a water production curve for a typical well in this project. We have projected our water volumes for this project in Table B-4. Other approach (provide information in comments section).

B3-82. EPA will use frequency of work overs, stimulations, and recompleti ons based on data collected in this questionnaire of the CBM industry , publicly available information, and best engineering judgments as specific to your basin as possible to projec t such activities in EPA’s 10-year projection:

We agree to this approach.

We prefer to provide EPA with workover frequen cies specific to our project. On average, a well in this project is worked over:

time(s) per 10-year period (note that fractions are acceptable).

We prefer to provide EPA with stimulation frequ encies specific to our project. On average, a well in this project is stimulated:

time(s) per 10-year period (note that fractions are acceptable).

We prefer to provide EPA with recompletion frequ encies specific to our project. On average, a well is recompleted:

time(s) per 10-year period (note that fractions are acceptable). CBI?

Yes

CBI?

Yes

CBI?

YesPart B. Financial and Economic Information Section 3: Project-Level Q uestions CBM Questionnaire

Operator ID:

Project ID:

B-30 B3-83. EPA will use estimated costs of workovers, stimulati ons, and recompletions ba sed on data collected in this questionnaire of the CBM industry, public ly available information, and best engineering judgments as specific to your basi n as possible to project costs of such activities in EPA’s 10-year projection:

We agree to this approach.

We prefer to provide EPA with work over costs specific to our project.

Average workover cost per well ($2008): $

We prefer to provide EPA with stimul ation costs specific to our project.

Average stimulation cost per well ($2008): $

We prefer to provide EPA with recomp letion costs specific to our project.

Average recompletion cost per well ($2008): $

B3-84. EPA will use the range and average well head pric es reported for your project, along with similar information from other projects in the vicinity of your project, DOE projections of wellhead prices from the current EIA’s Annual Energy Outlook, historic gas prices at Henry Hub, and other publicly available information to project wellhead gas pric e over the next 10 years at your project. EPA will take into account basin-specific infrastructure projections, well drilling projections, and other information to identify trends in future basin diffe rentials. Sensitivity analyses will also be run using low and high wellhead prices based on DOE’s low and high wellhead price projections.

We agree to this approach. We have provided a projection of wellhead price in Table B-4. We have provided additional information in comments that we think should be used in computing this project’s projected wellhead price.

B3-85. Using the percentage provided in Question B3 -51 to split 2008 O&M costs (excluding produced water management costs) between fixed and variable costs, EPA will assume your existing variable O&M costs for this project (estimated on a per MMBtu bas is) and your existing fixed costs (estimated on a per-year basis) will not vary over the 10- year projection, assuming no inflation.

We agree to this approach. We have provided a projection of O&M costs for this project (excluding produced water management) in Table B-4. We have provided additional information in comments that we think should be used in computing this project’s projected O&M costs for this project.

B3-86. Please use the space below to add any addition al comments you think might be useful to EPA in understanding what issues might affect costs in t he next few years, particularly changes to state regulations that may be pending, competition for drilli ng rigs, changes in infrastructure availability, changes to royalty rates or severance, etc. CBI?

Yes

CBI?

Yes

CBI?

Yes

CBI?

YesPart B. Financial and Economic InformationSection 3: Project-Level QuestionsCBM QuestionnaireOperator ID:Project ID:B-31If you will not be continuing with Table B-4, please proceed toPart C of this questionnaire. Note: you do not need to indicatewhether the items inTable B-4 are estimates; EPA will assume all entries are estimates and acknowledges that such estimates are speculative.Report large dollar amounts in nearest thousands of dollars where indicated (i.e., if additional capital expenditures are expected to be $1,253,779,please report as $1,254,000; zeroes have been provided already). If you are providing information on a project that alsoproduces conventional oil, andwish to provide projections of oil production and oil prices, pleasedo so in an attachment or in the comments section in Question B3-103.Remember to exclude all produced water management costs covered in Part C from Table B-4.One term that EPA uses in this table isunusual expenditures. There might be two types of unusual expenditures—those that are amortized (i.e.,capitalized) and those that are expensed (i.e.,generally considered a part of O&M but the expendituredoes not occur in every yearand is a relativelylarge percentage of O&M). For the purposes of this survey, an unusual expenditure is defined as:1) An expenditure that does not occur every year and that is more than 10 percent of O&M (e.g., major storm damage causes largeoutlay for repairs); or2) A capitalized one-time or capital cost not considered a lease acquisition or development cost (e.g. construction of a septic system or abuilding not directly associated with production) and is not a cost covered in Part C.If you are uncertain of which cost category any of your expenditures belong, you can provide the expenditure(s) with a description in thecomments section, or you can contact the EPA help line.Part B. Financial and Economic InformationSection 3: Project-Level QuestionsCBM QuestionnaireOperator ID:Project ID:B-32Table B-4. Projections of Costs and Production over 5 YearsQuestion200920010201120122013CBI?YesB3-87. What do you estimate yourtotal operating andmaintenance costs of gasproduction will be in 2009-2013? Include any regularlyrecurring costs, such as laborand energy costs, lease rentalcosts, annual payments tosurface owners, or recurringcosts associated with permits(e.g., monitoring,recordkeeping and reporting orother such payments) that arenot related to produced watermanagement. Exclude allcosts of produced watermanagement covered inPart C. Also exclude any costsof workovers, stimulations,recompletions, or otheractivities if these areconsideredunusualexpendituresand reported inQuestions B3-91 or B3-96 (seedefinition ofunusualexpendituresin the instructionsto Table B-4 or in the Part D,Definition of Key Terms).($000).$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000Part B. Financial and Economic InformationSection 3: Project-Level QuestionsCBM QuestionnaireOperator ID:Project ID:B-33Question200920010201120122013Drilling Expenditure ScheduleCBI?YesB3-88. Estimated number of wellsdrilled annually (excludingrecompletions).CBI?YesB3-89. Estimated total drilling costsincurred, excludingrecompletions, by year. (Seedefinition of drilling costs inAppendix D.) ($000).$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000Additional ExpendituresCBI?YesB3-90. Estimated number of thefollowing activities: (if notexpected to occur indicate 0. Ifany of these activities isconsidered routine O&M andwas included in Question B3-87 indicate “NA”):WorkoversStimulationsRecompletionsCBI?YesB3-91. Estimated total cost ($000) ofthe following activities in eachyear (if not expected to occurindicate 0. If any of theseactivities is considered routineO&M and was included inQuestion B3-87 indicate “NA”):WorkoversStimulationsRecompletions$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000Part B. Financial and Economic InformationSection 3: Project-Level QuestionsCBM QuestionnaireOperator ID:Project ID:B-34Question200920010201120122013CBI?YesB3-92. Estimated additional projectdevelopment expendituresincurred (excluding well drillingcosts, costs reported inQuestion B3-91, and producedwater gathering andmanagement costs), by year($000).$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000CBI?YesB3-93. Estimated new permit orpermit renewal costs(excluding produced watermanagement related permits,such as NPDES and UICpermits).$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000CBI?YesB3-94. Total one-time outlays onunusual expendituresforamortized items in each yearthat are not included asdevelopment or drilling costs inQuestions B3-89 or B3-92 orincluded as stimulation orrecompletion costs in QuestionB3-91. (See definition ofunusual expendituresabove ininstructions to Table B-4).Exclude those costs that areassociated with producedwater management as coveredin Part C.If more space isneeded, please use thecomments page at the end ofthis section.$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000Part B. Financial and Economic InformationSection 3: Project-Level QuestionsCBM QuestionnaireOperator ID:Project ID:B-35Question200920010201120122013CBI?YesB3-95. Description ofunusualexpenditureson amortizeditems included in B3-94 above.If more space is needed,please use the commentspage at the end of this section.CBI?YesB3-96.Other unusual expendituresforO&M not included in QuestionB3-87 (O&M costs) or inQuestion B3-91 (workovers,stimulations, recompletions)(See definitionof unusualexpendituresabove ininstructions to Table B-4).Exclude those costs that areassociated with producedwater management as coveredin Part C.If more space isneeded, please use thecomments page at the end ofthis section.$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000CBI?YesB3-97. Description ofunusualexpendituresincluded in B3-96above. If more space isneeded, please use thecomments page at the end ofthis section.Production ScheduleCBI?YesB3-98. What is your projection of gasproduction at this project?(MMBtu/yr)$MMBtu $MMBtu $MMBtu $MMBtu $MMBtuCBI?YesB3-99. What is your projection ofwater production at thisproject? (bbls/yr)$bbls $bbls $bbls $bbls $bblsPart B. Financial and Economic InformationSection 3: Project-Level QuestionsCBM QuestionnaireOperator ID:Project ID:B-36Question200920010201120122013CBI?YesB3-100. What wellhead price of gashave you used to project gasproduction? ($.$$/MMBtu)$MMBtu $MMBtu $MMBtu $MMBtu $MMBtuCBI?YesB3-101. What is your projection ofseverance and otherproduction taxes? ($000)$ , ,000$ , ,000$ , ,000$ , ,000$ , ,000CBI?YesB3-102. What inflation rate are youusing in these projections(including expenditureprojections)? If using morethan one inflator for differentcost items, use the commentssection to specify (%).Part B. Financial and Economic Information CBM Questionnaire

Operator ID:

B-37 Copy of

B3-103. Comments on Part B. Please cross-reference your comments by question number. If you need additional space, please photocopy this page before writing on it , and number each copy in the space provided.

Question

Number Comment

CBI?

Yes

CBI?

Yes

CBI?

Yes

CBI?

Yes

CBI?

Yes

CBI?

Yes

CBI?

Yes

CBI?

Yes

CBI?

Yes

CBI?

Yes

CBI?

Yes

CBI?

Yes

CBI?

YesPart C. Produced Water Management Information CBM Questionnaire

Operator ID:

C-1 

### PART C. PRODUCED WATER MANAGEMENT INFORMATION

INSTRUCTIONS FOR PART C (Technical Portion of Questionnaire)

Read all question-specific instructions and definitions of key terms (Part D).

Data may be submitted as clearly marked electronic attachments to this questionnaire.

Complete this part of the questionnaire for only the projects listed in Part A

.

You may need to make copies of some PAGES before responding. Some pages in Part C of the questionnaire will need to be photocopied before you res pond. Indicate how many copies of the PAGE you are submitting by completing the entry “C opy ___ of ___” in the top right corner.

Not all questions will be applicable to every operator. EPA prepared Part C of the questionnaire to be applicable to a variety of operators; therefore, not all of the questions will apply to every operator. Complete each relevant item in the questionnaire.

Mark responses for each question. Fill in the appropriate response(s) to each question. Please use black

ink or type in the spaces provided. Answer the questions in sequence unless you are directed to SKIP. Do not leave any entry blank. If the answer is zero, write “0" or “zero”. If a question is not applicable to your operations, write “NA.” EPA intends that responses to all questions be based upon available data and information. Please provide best estimates when exact data are not available. If you provide an estimate, note
the methods that were used to make the estimate, along with the section and question number that the estimate refers, on the Comments page at the end of Part C.

You are not required to provide a block flow diagram for each Produced Water Management System in

Section 2. A narrative description of the Produced Water Ma nagement System is sufficient. Examples of acceptable block flow diagrams and narrativ e descriptions are provided in Section 2.

You are not required to perform new or non-routine tests or measurements solely for the purpose of responding to this questionnaire. EPA intends that responses to all questions be based upon available

data and information. In the event that exact data ar e not available, please provide best engineering

estimates and note the methods that were used to make the estimates on the Comments page located at the

end of each section.

Include any clarifying attachments. If additional attachments are required to clarify a response, please place the associated question number a nd your operator identification number in the top right corner of each page of the attachments. The following list contains ex amples of items that may be included as attachments to this questionnaire: – Operations brochure, pamphlet, general description; – Produced water treatment flow diagrams; – Hard copy or electronic water quality data collected from water monitoring locations; – Produced water treatment operation and maintenance logs; and – Pollution prevention or management practices policies or data.

Pay close attention to the measurement units request ed (e.g., barrels per day, milligrams per liter). Report answers in the units that are specified, unless the question requires you to specify the units.

Indicate information that should be treated as confidential. You may claim as confidential all information included in the response to a question by checking the Confidential Business Information (CBI) box next to the question number. Note that you may be required to ju stify any claim of confidentiality at a later time. See

the CONFIDENTIAL BUSINESS IN FORMATION section on page ii.

Questions? If you have any questions regarding the comp letion of this questionnaire, see the

QUESTIONNAIRE ASSISTANCE section on page ii.Part C. Produced Water Management Information Section 1: General Operator Information CBM Questionnaire

Operator ID:

C-2 SECTION 1: GENERAL OPERATOR INFORMATION

GENERAL INSTRUCTIONS FOR SECTION 1

This section of the questionnaire collects operato r and company address and contact information.

Indicate information that should be treated as confiden tial by checking the Confidential Business Information (CBI) box next to each question number with responses containing CBI. Any response where "CBI" is not checked will be considered non-confidential unless you have claimed all CBI-eligible data as CBI at the beginning of the questionnaire. Re fer to the instructio ns given in the CONFIDENTIAL BUSINESS INFORMATION section on page ii for additional information regarding EPA' s confidentiality procedures set forth in 40 CFR Part 2, Subpart B.

C1-1. Provide the name, title, telephone and facsimile numbers, and e-mail address of the primary contact at your operation for information supplied in Part C of this questionnaire.

( ) - Primary Contact Name Telephone Number

( ) - Primary Contact Title Facsimile Number

Convenient time to call between:

Email Address am / pm and

am / pm (Eastern Time) CBI?

YesPart C. Produced Water Management Information Section 2: Produced Water Management Syst em General Questions CBM Questionnaire

Operator ID:

C-3 Project ID from Part A:

Operator’s Name or ID for this Produced Water Management System:

SECTION 2: PRODUCED WATER MANA GEMENT SYSTEM GENERAL QUESTIONS

GENERAL INSTRUCTIONS FOR PART C SECTION 2

The following questions request general information on the components and costs of the produced water gathering system(s) and the Produced Water Management Sy stem(s) used for the project(s) listed in Part A.

These data will be used to evaluate the costs and benefits of various CBM water management arrangements.

Produced Water Management System (PWMS) - For the purposes of this questionnaire, Produced Water Management System is defined as a system t hat is managed by the operator as a single unit for produced water management. Produced water management may include different treatment, transfer to disposal locations, and/or reuse prac tices. The Produced Water Management System may treat water from a lease, field, project, or plan of development (POD). Water discharge permits, land application permits, and applications for permits to drill (APD) typically use one of these terms to define the well grouping. Note that the Produce d Water Management System can have multiple disposal options but it is managed as a single unit. For example, an operator may use a combination of stock tanks, irrigation, and storage ponds on a single Produced Water Management System. Also note that the Produced Water Management System ma y serve the same or different wells from the CBM project defined in Part A. Finally, for the pu rposes of this questionnaire, the PWMS does not include the produced water gathering system (e.g., pi ping or trucking) that is used to transport the produced water between the CBM wellhead and a centralized location (e.g., treatment unit, land application site). For example, produced water gat hering pipes are typically installed underground at the same time as the gas gathering pipes.

The following diagrams are designed to help you deter mine the Produced Water Management Systems that should be addressed in this section of the questionnaire. Please complete a copy of this section for each Produced Water Management System used for the projects lis ted in Part A. Note that you are not required to provide a block flow diagram for each Produced Water M anagement System in response to Question C2-1. A narrative description of the Produced Water Management System is sufficient. Examples of acceptable block flow diagrams and narrative description s are provided on pages C-2 and C-2.

In Example 1 , the operator is using the same produced wate r management system for all wells in the CBM project listed in Part A. Therefore, there is a one-to-one match between the CBM economic project and Produced Water Management System. The operator should complete one copy of Part C Sections 2 and 3 for the Produced Water Management System.Part C. Produced Water Management Information Section 2: Produced Water Management Syst em General Questions CBM Questionnaire

Operator ID:

C-4 Project ID from Part A:

Operator’s Name or ID for this Produced Water Management System:



## CBM Economic Project Matches Directly with the Produced Water Management System

X X X X X X X X X X

Economic Project

Produced Water Management System

Well 

### X Sedimentation

Pond

Discharge

to River Water Gathering System

Example 1.

In Example 2 , the operator is using the two Produced Water Management Systems for the wells included in the CBM economic project listed in Part A. The operator should complete two copies of Part C Section 2 and Part C Section 3, one for each produced water managem ent system used as part of this economic project.

PWMS #1

Settling pond Land application PWMS #2

Settling pond

Surface water 

## CBM Economic Project with Two Produced Water Management Systems

X X X X X X X X X X

Economic Project

Produced Water Management System

Well 

### X

Water Gathering

System

Example 2.Part C. Produced Water Management Information Section 2: Produced Water Management Syst em General Questions CBM Questionnaire

Operator ID:

C-5 Project ID from Part A:

Operator’s Name or ID for this Produced Water Management System:

In Example 3 , the operator has two economic projects that share the same produced water management system. One of the economic projects, CBM Economic Project 1, was listed in Part A. The operator should have completed Part B, Section 3 for Economic Project 1. The operator did not need to provide information for Economic Project 2 because it was not listed in Part A. The operator should complete one copy of Part C for the combined produced water management system. In Example 3, the operator w ill identify the CBM wells and different produced water volumes managed by the PWMS from Project 1 and Project 2.

Example 3.

For EACH Produced Water Management System you oper ated in 2008 to manage produced water from the wells listed in Part A, complete a copy of the entire Part C Section 2 and Section 3. You may need to make multiple copies of these sections. Please enter a Produced Water Management System number or name in the upper right-hand corner of this section. The number you choose could be one you use internally to refer to the project, but can be just a number such as 1, 2, 3, etc., if you use no formal identifier. This

information will be used to check that the detailed inform ation provided in this section is linked to the correct Produced Water Management System.

Question C2-1 requests a block flow diagram or narra tive description for each Produced Water Management System. EPA has provided examples to guide you in completing this question.

Questions C2-2 through C2-14 request general info rmation on the Produced Water Management System such as how the management system was selected and capital and operating costs.

Questions C3-1 through C3-13 request discharge an d treatment information for the Produced Water Management System.

Question C4-3 requests water quality and whole effluent toxicity data.

A comment page is included at the end of this section to clarify responses.

Note that this section was designed to be applicable to a variety of operators. Many of the detailed questions are only applicable to discharge of produced water to surface waters, a POTW, or third party. Please follow the skip patterns noted throughout the section.Part C. Produced Water Management Information Section 2: Produced Water Management Syst em General Questions CBM Questionnaire

Operator ID:

C-6 Project ID from Part A:

Operator’s Name or ID for this Produced Water Management System:

EPA may contact you for additional deta iled cost data for the information y ou provide in this section of the questionnaire. If you are unsure of how to complete any parts of this section, please refer to the

QUESTIONNAIRE ASSISTANCE information on page ii.

C2-1. For each Produced Water Management System (P WMS), please provide a block diagram (as in the following examples) that shows, or a narrative de scription that explains, how the produced water was managed from the CBM well field to the PWMS in 2008. Refer to this diagram or narrative as you answer questions throughout this section. Hand dr awings are sufficient for this question. Please provide a Produced Water Management System ident ification number and name for each diagram.

Attached a block diagram. Attached a narrative description.

The following items should be included on your diag ram or discussed in your narrative for each Produced Water Management System:

Name of the CBM Project in Part A that is connected to this PWMS.

Identify the water gathering system (e.g., under ground pipes, trucking) that moves produced

water from the CBM wellhead to the PWMS.

Name or identification number for this Produced Water Management System. This name or number should be noted in the upper right-hand corner of all pages in this section.

If more than one PWMS serves this project, number of producing wells (including those producing water only) associated with each PWMS.

Discharge, disposal, and reuse practices for this Produced Water Management System including the final destination of the produced water.

Individual treatment units prior to discharge, disposal, or reuse. Please show each individual unit on the diagram. For example, if you have two sedimentation ponds, please show each one on the diagram.

Points of chemical addition, along with the chemical name.

Descriptions of any waste streams result ing from CBM produced water treatment (e.g., concentrated brine, ion exchange regeneration wastewater, settled solids).

Destinations for all produced water. Please re member to include evaporation or infiltration.

The locations where routine water quality dat a are collected (you will be asked to provide some of this data in Part C Section 4).

Please note whether any produced water fr om conventional oil and gas extraction is commingled with produced wa ter from this CBM project . Please indicate on the diagram or in your narrative description, the volumes or flow rates of the conventional oil and gas extraction produced water as well as the point at which these waters are commingled.

Please note whether any produced water from another CBM project (either yours or another operator’s) is commingled with produced water from this CBM project . If produced water from another project operated by your company ent ers this PWMS, provide the name of the project as provided in your screener survey. Please indicate on the diagram or in your narrative description, the volumes or flow rate s of the CBM produced waters that are not from this CBM project as well as the point at which these waters are commingled. CBI?

YesPart C. Produced Water Management Information Section 2: Produced Water Management Syst em General Questions CBM Questionnaire

C-7 Operator ID: 9999

Project ID from Part A: PRB1

Operator’s Name or ID for this Produced Water Management System: POD1

Example 4 illustrates a Produced Water Management System with only one management practice. In this example, you would complete one copy of this section for this Produced Water Management System.



### One Produced Water Management System for the CBM Project (Treatment and Discharge)

Concentrated Brine –

Contract Hauled

Outfall 001 Discharge to River Sedimentation/ Equalization Pond 8 Wells

2 Routine Sampling Point 1

Routine Sampling Point 2 6 Media Filters

2 RO Units

Blend Tank 1 Backwash

Economic Project: PRB 1

PWMS Name: POD1 Water Gathering System

Example 4.

Example 5 is an example of a narrative description for a CB M project with only one PWMS. In this example, you would complete one copy of this secti on for this Produced Water Management System.

Produced water from the eight CBM well s in the San Juan POD is piped underground to six storage tanks. Only water from th e eight wells enters the storage tanks. The water is trucked from the storage tanks to one of two injection wells. The water is filtered and a biocide is added prior to re-injection. A sample of the water is tested prior to re-injection.

Example 5.Part C. Produced Water Management Information Section 2: Produced Water Management Syst em General Questions CBM Questionnaire

C-8 Operator ID: 9900

Project ID from Part A: Black Warrior 1

Operator’s Name or ID for this Produced Wa ter Management System: Treatment System 1

Example 6 illustrates a Produced Water Management System with multiple produced water management practices that vary throughout the year. The dates du ring which each water management practice is in use are shown above that branch of the flow diagram. You sh ould complete two copies of Part C Sections 2 and 3 for this scenario, one for the west side and one for the east side.

50 Wells (West side of CBM Project)

Storage Tanks

Land Application 280 bpd

280 bpd 35 Wells (April-September) (East side of CBM Project)

85 Wells (October-May)

Sedimentation

Pond 1 200 bpd

Sludgecontract

hauled 14 bpd 2 bpd Evaporation

Note: October-May flow in italics Economic Project: Black Warrior 1 PWMS Name: Treatment System 

### Temporal Changes in Produced Water Collection and Management Practices

Discharge to River 1 2 May-October Only

480 bpd

4 bpd 20 bpd

Sedimentation

Pond 2 Sludgecontract

hauled 13 bpd 1 bpd Evaporation 1 bpd 5 bpd Alum, Antimicrobial

3 170 bpd
450 bpd Routine Sampling Points 50 Wells (West side of CBM Project)

Storage Tanks

Land Application 280 bpd

280 bpd 35 Wells (April-September) (East side of CBM Project)

85 Wells (October-May)

Sedimentation

Pond 1 200 bpd

Sludgecontract

hauled 14 bpd 2 bpd Evaporation

Note: October-May flow in italics Economic Project: Black Warrior 1 PWMS Name: Treatment System 

### Temporal Changes in Produced Water Collection and Management Practices

Discharge to River 1 2 May-October Only

480 bpd

4 bpd 20 bpd

Sedimentation

Pond 2 Sludgecontract

hauled 13 bpd 1 bpd Evaporation 1 bpd 5 bpd Alum, Antimicrobial

3 170 bpd
450 bpd Routine Sampling Points Water Gathering System

Example 6.Part C. Produced Water Management Information Section 2: Produced Water Management Syst em General Questions CBM Questionnaire

Operator ID:

C-9 Project ID from Part A:

Operator’s Name or ID for this Produced Water Management System:

C2-2. In what year did this Produced Water Manag ement System (PWMS) begin operating?

Number of days in operation in 2008:

365 days; or days

C2-3. What was the average daily flowrate or total volume of water treated by this Produced Water Management System in 2008? Please check whethe r you are providing average daily flowrate or total volume and provide the flowrate or volume and units.

a. Generated by the wells identified in Part A in 2008

Average Daily Flowrate

Total Volume Please specify the flowrate or volume units:

b. Managed by this PWMS in 2008

Average Daily Flowrate

Total Volume Please specify the flowrate or volume units:

C2-4. Please relate the water produced and gas produc tion from the wells related to this Produced Water Management System with the wells from the proj ect from Part A listed at the top of the page:

a. What percentage of water treated by this Pr oduced Water Management System is from the project from Part A listed at the top of the page:

%

b. What percentage of 2008 gas production from the project listed at the top of this page is associated with the wells served by this Pr oduced Water Management System (estimate is acceptable).”

%

C2-5. Selection of Management Option

a. How was the Produced Water M anagement System designed? (Check all that apply.)

Input from the surface owner during development of the surface use plan

Work with outside contractor

Other: Please describe

b. Who manages the day-to-day operatio ns for the produced water management?

Operator ( Skip to Question C2-6 ) Landowner ( Skip to Question C2-6 ) Contractor/third party; please provide company name

c. Cost of hiring the contractor/third party fo r produced water management in 2008. Exclude the costs associated with the water gathering system from the CBM wells to the PWMS.

2008 annual operating and maintenance cost $

Minimum quantity of CBM produced water required for contract: bbl Skip to Question C2-8, unless you have costs in addition to contractor/third party
management. CBI?

Yes

CBI?

Yes

CBI?

Yes

CBI?

YesPart C. Produced Water Management Information Section 2: Produced Water Management Syst em General Questions CBM Questionnaire

Operator ID:

C-10 Project ID from Part A:

Operator’s Name or ID for this Produced Water Management System:

C2-6. Produced Water Management System Capital Costs – Please provide the following capital cost information for this Produced Water Management Sy stem (e.g., treatment system, land application site). Exclude any costs associ ated with excavating surface impo undments if the impoundment was converted from other uses, such as drill pits, but do include the costs of c onversion. Also exclude the costs associated with installing the water gatherin g system from the CBM wells to the PWMS. For example, you should exclude the cost s of any trucking or installation of any pumps or pipes used to transport produced water from the CBM wells to the PWMS.

a. Capital cost in dollars: $ Check this box if your company purchased this PWMS from another company and you do not have this capital cost information. Skip to Question C2-7.

b. Year cost incurred:

C2-7. Produced Water Management System Operating and Maintenance Costs – Please provide the costs for this Produced Water Management System (e.g., treatment system, land application site) for

2008. Exclude the costs associated with maintaini ng the water gathering system from the CBM wells to the PWMS. For example, you should exclude the costs of any trucking or pump or pipe maintenance used for the transport of produced wa ter from the CBM wells to the PWMS. You should include non-produced water transportation costs as sociated with the PWMS (e.g., contract hauling residuals from the PWMS, permit compliance monitoring).

a. 2008 operating and maintenance cost in dollars: $

b. Please provide any annual revenue received from operating this Produced Water Management System (e.g., payments from wate r recipients, payment for treating produced water from another operator) $

C2-8. Produced Water Gathering and Transportation Questions. Please provide cost and design information for transporting the produced water from the CBM wells identified in Part A to this PWMS. The produced water gathering system (e.g., piping or trucking) is used to transport the produced water between the CBM wellhead and a centralized location (e.g., treatment unit, land application site).

a. What is the total 2008 volume of water generat ed from the CBM wells identified in Part A that is piped to this PWMS?

Please specify the volume units:

NOTE: You should skip to Question C2-8.d if all of the produced water generated from the CBM wells

identified in Part A is stored at the CBM wells and subsequently trucked off-site for final disposition (e.g., underground injection, treatment and disposal, land application).

b. What is the capital cost in dollars of the piped water gathering system between the CBM

wells identified in Part A and this PWMS?

$ Year cost incurred: Check this box if your company purchased this piped produced water gathering system from another company and you do not have this capital cost information. Skip

to Question C2-8.d.

c. What is the 2008 operating and main tenance cost in dollars of the piped water gathering system between the CBM wells identified in Part A and this PWMS?

$ CBI?

Yes

CBI?

Yes

CBI?

YesPart C. Produced Water Management Information Section 2: Produced Water Management Syst em General Questions CBM Questionnaire

Operator ID:

C-11 Project ID from Part A:

Operator’s Name or ID for this Produced Water Management System:

d. Please answer the following questions if you truck produced water from the wells identified in Part A to this PWMS. Otherwise, skip to Question C2-9

.

i. Total volume of produced water trucked to this PWMS in 2008:

ii. Total vehicle miles traveled for the truck transport of produced water to this PWMS in 2008:

iii. Total number of days used to truck produced water to this PWMS in 2008:

iv. Average volume capacity of the tanker truck used in 2008 (e.g., 2,000 gal./truck):

v. Total 2008 costs incurred to truck produced water to this PWMS: $

C2-9. Please indicate the land area occupied by your operations.

Location Area Units

a. Total Project Area (Part A Project)

b. Total PWMS Area

c. Total Undeveloped Area

d. Is the undeveloped area suitable for construction of new or additional wastewater treatment systems?

Yes No: Provide explanation:

C2-10. Have you ever operated or considered oper ating a produced water management system other than what is described in this section for the project?

Yes No ( Skip to Question C2-12 )

C2-11. What type of management system did you consider? CBI?

Yes

CBI?

Yes

CBI?

YesPart C. Produced Water Management Information Section 2: Produced Water Management Syst em General Questions CBM Questionnaire

Operator ID:

C-12 Project ID from Part A:

Operator’s Name or ID for this Produced Water Management System:

C2-12. What were the reasons for not implementi ng or for stopping the operation of the management system?

C2-13. Have any monitoring or other studies been condu cted to assess the potential impacts of produced water for this Produced Water Management System , such as impacts related to irrigation, impoundment, or surface water discharges? Produced water related impacts may include but are not limited to: changes in soil characteristics, changes in stream flows, changes in aquatic toxicity, and changes in aquatic and riparian species composition.

Yes No ( Skip to Part C Section 3)

C2-14. Indicate the following information about the st udies, if known. If there are additional studies, please provide the information in the Comments Section (Question C4-3).

Title:

Date: / /

Title:

Date: / / CBI?

Yes

CBI?

Yes

CBI?

YesPart C. Produced Water Management Information Section 3: Detailed Produced Water Management and Treatment Questions CBM Questionnaire

Operator ID:

C-13 Project ID from Part A:

Operator’s Name or ID for this Produced Water Management System:

SECTION 3: DETAILED PRODUCED WATER MANAGEMENT AND TREATMENT QUESTIONS

GENERAL INSTRUCTIONS FOR SECTION 3

Questions C3-1 through C3-13 request detailed info rmation for the Produced Water Management System. Please see the following tables to identify the questions you should complete.

C3-1. Produced Water Destination - This table provides information on the final destination of the produced water for this Produced Water Management System. Note t hat EPA will request information on any treatment technologies used prior to discharge in later questions. Check ( ) all that apply.

Table C-1. Final Destination of CBM Produced Water

Check ( ) All

that Apply Destination

Discharge to Surface Water, POTWs, and Third Parties

a. Discharge to surface water (requiring NPDES permit)

b. Discharge to POTW or third party (e.g., discharge to another operator’s treatment system)

Zero Discharge

c. Land Application (no crop production)

d. Land Application (for crop production)

e. Underground Injection

f. Evaporation or infiltration pond (with no intended discharge to surface water)

g. Livestock or Wildlife Watering

h. Hauled off site

i. Other (Specify): CBI?

YesPart C. Produced Water Management Information Section 3: Detailed Produced Water Management and Treatment Questions CBM Questionnaire

Operator ID:

C-14 Project ID from Part A:

Operator’s Name or ID for this Produced Water Management System:

Copy of

C3-2. Cost Information for Each Destination – Complete a copy of the following table for each produced

water destination selected in Question C3-1. You sh ould have one copy of this table for each box

checked in Table C-1.

Destination Option Selected in

Question C3-1 (Use this row to indicate which destination you are providing

information on. You will make multiple copies of this table if you

checked more than one destination in Question C3-1.) Discharge to Surface Water Discharge to POTW or Third

Party Land Application (no crop

production) Land Application (for crop

production) Underground Injection Evaporation or infiltration pond Livestock or wildlife watering

Hauled off site

Other:

2008 Volume of Produced Water

From this PWMS to this

Destination

Unit:

Maximum Daily Capacity of

Produced Water from this PWMS Capable of Going to this

Destination: Unit:

Check ( ) the Components Below that are Included in the Capital

Costs: Capital Costs

% of Total Capital Cost Provided in Response to Question C2-6 for this

destination:

%

(If only one box is checked in Table C-1 then enter 100% above.) Tanks Pumps Piping/hoses

Outfall structure Injection well

Pond

Treatment unit Liner Land acquisition Monitoring equipment Aeration equipment Land application equipment

Other:

Other:

Check ( )the Components Below that ar e Included in the Operation

and Maintenance Costs: Operation and Maintenance

Costs

% of Total Operation and Maintenance Cost provided in Response to Question C2-7:

% Chemicals Energy: electric Energy: gas Energy: oil Materials

Labor

Other: CBI?

YesPart C. Produced Water Management Information Section 3: Detailed Produced Water Management and Treatment Questions CBM Questionnaire

Operator ID:

C-15 Project ID from Part A:

Operator’s Name or ID for this Produced Water Management System:

Copy of

C3-3. Residuals Management Information – Complete a copy of the following table for each type of residual generated by this PWMS. Make sure you indicate in your narrative description or block diagram (see Question C2-1) each type of residual waste generated by this PWMS and the ultimate disposal of the residual.

Residuals Management and

Costs

List Type(s) of Residuals Generated (e.g., brine waste from ion exchange unit):

( Note: If more than one residual is generated by this PWMS, please make one copy of this question for each type of residual generated.) Description of Residual Generated and its Source (e.g., brine waste from ion exchange treatment system):

Volume (and units) of Residual Generated in 2008:

Frequency of Residuals Removal from this PWMS in 2008 (e.g., brine waste tank emptied once per week).

Name of Final Destination for this Residual (e.g., ABC Underground Injection Well, Permit No. XYZ):

Distance from this PWMS to the Fi nal Destination for this Residual:

miles

Annual 2008 Cost of Disposal for this Residual:

$

Components of Residual Disposal Cost: Transportation: Piped Transportation: Trucked Disposal Fees Other (Specify):

If you check “Discharge to Surface Water” in Table C-1, please also complete Question C3-4 and then skip

to Question C3-7

.

If you check “Discharge to a POTW or Third Party” in Table C-1, please also complete Question C3-5 and

then skip to Question C3-7

.

If you check “Land Application (No Cr op Production)” or “Land Application (For Crop Production)” in Table C-1, please also complete Question C3-6 and then skip to Question C3-7

.

For all other destinations selected in Table C-1, skip to Question C3-7

. CBI?

YesPart C. Produced Water Management Information Section 3: Detailed Produced Water Management and Treatment Questions CBM Questionnaire

Operator ID:

C-16 Project ID from Part A:

Operator’s Name or ID for this Produced Water Management System:

Surface Water Discharge Question Copy of

C3-4. Surface Water Discharge. Complete Question C3-4 if you checked that this Produced Water Management System discharges to surface water in Table C-1. If this Produced Water Management System does not discharge to surface water, skip to Question C3-5 . Complete one copy of this question for each surface water discharge permit used in this Produced Water Management System

.

a. General Information on Surface Water Discharge Permit – Please complete the following table of general information about t he surface water discharge permit.

NPDES Permit Number

Permit Type General

Individual

Expiration Date (MM-DD-YYYY)

Stream Monitoring Required? Yes (Specify frequency: )

No

Effluent Monitoring Required? Yes (Specify frequency: )

No

Permit currently being reviewed or modified? Yes

No

b. General Information on Outfa lls Included in Permit – Please complete the following table of general information about the outfalls includ ed in the permit listed in part (a) of this question. Make multiple copies if the permit covers more than three outfalls.

i. Outfall Number – List each outfall included in the NPDES permit.

ii. Aeration Equipment– Check ( ) any aeration equipment or other treatment equipment used at the outfall.

iii. Flowrate or Volume Discharged Through Outfall – Please provide the total volume discharged through each outfall in 2008.

iv. Frequency of Discharge – Indicate t he frequency of discharge including number of days discharged in 2008. CBI?

YesPart C. Produced Water Management Information Section 3: Detailed Produced Water Management and Treatment Questions CBM Questionnaire

Operator ID:

C-17 Project ID from Part A:

Operator’s Name or ID for this Produced Water Management System:

Surface Water Discharge Question Copy of

Outfall Number Treatment at Outfall(s) Flowrate or Volume Discharged Through Outfall (Specify units) Frequency of discharge

None Rip Rap

Atomizer Sprinkler head

Diffuser

Other Specify: Units: Continuous

Intermittent

Number of days of intermittent discharge in

2008

Emergency discharge only

Number of days of emergency discharge in

2008

None Rip Rap

Atomizer Sprinkler head

Diffuser

Other Specify: Units: Continuous

Intermittent

Number of days of intermittent discharge in

2008

Emergency discharge only

Number of days of emergency discharge in

2008

None Rip Rap

Atomizer Sprinkler head

Diffuser

Other Specify: Units: Continuous

Intermittent

Number of days of intermittent discharge in

2008

Emergency discharge only

Number of days of emergency discharge in

2008

c. Discharge Permit and Discharge Monitoring Reports. Please attach a copy of the current surface water discharge NPDES permit. If av ailable, EPA prefers the NPDES permit be submitted in an electronic format (e.g., PDF fo rmat). Please report any discharge monitoring report (DMR) data for 2006 through 2008 in Part C Section 4. If available, EPA prefers this DMR data be submitted in an electronic format (e.g., PDF format).

Permit Attached.Part C. Produced Water Management Information Section 3: Detailed Produced Water Management and Treatment Questions CBM Questionnaire

Operator ID:

C-18 Project ID from Part A:

Operator’s Name or ID for this Produced Water Management System:

POTW/Third Party Discharge Question Copy of

C3-5. Discharge to POTW or third party. Complete Question C3-5 if you checked that this Produced Water Management System discharges to a POTW or third party in Question C3-1. If this Produced Water Management System does not discharge to a POTW or third party, skip to Question C3-7

. Complete one copy of this question for each POTW or third party used in this Produced Water Management System

.

POTW.

PrOTW. Other facility.

a. Provide the POTW, PrOTW, or other fac ility name, address, primary contact, and phone number (if applicable).

POTW/PrOTW/Other Facility Name

Address

City State Zip Code

( ) - Primary Contact Name Telephone Number

b. Please attach a copy of the current perm it or discharge agreement. Please report any monitoring data in Part C Section 4. If av ailable, EPA prefers data be submitted in an

electronic format.

Permit/Discharge Agreement Attached

Continue to Question C3-7. CBI?

YesPart C. Produced Water Management Information Section 3: Detailed Produced Water Management and Treatment Questions CBM Questionnaire

Operator ID:

C-19 Project ID from Part A:

Operator’s Name or ID for this Produced Water Management System:

Discharge to Land Application (with or without crop production) Question Copy of

C3-6. Discharge to Land Application (with or without crop production) – Complete Question C3-6 if you checked that this Produced Water Managem ent System discharges to land application in Question C3-1. If this Produced Water Management System does not discharge to a land application system, skip to Question C3-7 . Complete one copy of this question for each land application system used at this Produced Water Management System.

Land Application (Complete for Irrigati on and Non-Irrigation Land Application)

a. Area of Land Used for Land Application (acres)

b. Describe any criteria on the Produced Water for this Land Application

c. Type of Land Application/Irrigation Above-ground irrigation (e.g., center-pivot) Sub-surface drip irrigation (SDI) Other (Specify):

d. Frequency of Application Continuous

Intermittent: Number of days applied in 2008 Months that the land application occurred in 2008 (e.g., February, March, May) CBI?

YesPart C. Produced Water Management Information Section 3: Detailed Produced Water Management and Treatment Questions CBM Questionnaire

Operator ID:

C-20 Project ID from Part A:

Operator’s Name or ID for this Produced Water Management System:

Produced Water Treatment

C3-7. Do you treat produced water to remove pollutant s prior to discharge to su rface water or POTW/third party?

Yes No ( Skip to Part C Section 4 )

C3-8. This table provides direction on how to provide information on the treatment of the produced water for this Produced Water Management System. Check ( ) all that apply. EPA will request more detailed information about treatment of the produced water in later questions.

Table C-2. Treatment of CBM Produced WaterCheck (:)Allthat Apply

Type of Treatment Unit Do you have water quality data for the produced water entering and/or leaving this treatment unit? If so, please provide in Section 4 (water quality section). Additional Information

a. Sedimentation Pond (for equalization or suspended solids removal) Yes

No Complete Question C3-9 for each pond.

b. Ion exchange Yes

No Complete Question C3-10 for each ion exchange unit.

c. Low-Pressure Filtration (e.g., Hydro-cyclone, Multi-media filtration) Yes

No Complete Question C3-11 for each low-pressure

filtration unit.

d. High-Pressure Filtration (e.g., Reverse Osmosis, Nanofiltration) Yes

No Complete Question C3-12 for each high-pressure

filtration unit.

e. Other (Specify): Yes

No Complete Question C3-13 for any additional

treatment units not listed

elsewhere.

Copy pages as needed to include information on all treatment units checked ( ) in the table above.

Please be sure to enter the Produc ed Water Management System identific ation number or name so that EPA

can link the information in this section to the correct Produced Water Management System. CBI?

Yes

CBI?

YesPart C. Produced Water Management Information Section 3: Detailed Produced Water Management and Treatment Questions CBM Questionnaire

Operator ID:

C-21 Project ID from Part A:

Operator’s Name or ID for this Produced Water Management System:

Sedimentation Ponds Question Copy of

C3-9. Sedimentation Ponds – Complete Question C3-9 if you checked that this Produced Water Management System uses sedimentation ponds in Tabl e C-2. Also, please indicate the water quality parameters that are removed by this treatment unit and the estimated removal efficiency. If this Produced Water Management System does not use sedimentation ponds, skip to Question C3-10

.

Design Capacity (acre-feet) acre-feet

Volume of Produced Water into Sedimentation

Pond in 2008 bbl

Surface Area acres

Type of Liner and Thickness (if applicable) Yes – Liner used Specify type and thickness:

No liner

Chemicals Added (e.g., coagulants, biocides)

Capital Cost of Sedimentation Pond and Year of

Cost $

Year:

Initial Bonding Costs and Year of Costs $

Year:

2008 Operating and Maintenance Cost of

Sedimentation Pond $

Targeted Water Quality Parameter

Parameter Name Estimated Removal Efficiency Basis/Comments CBI?

YesPart C. Produced Water Management Information Section 3: Detailed Produced Water Management and Treatment Questions CBM Questionnaire

Operator ID:

C-22 Project ID from Part A:

Operator’s Name or ID for this Produced Water Management System:

Ion Exchange Question Copy of

C3-10. Ion Exchange - Complete Question C3-10 if you checked that this Produced Water Management System uses ion exchange in Table C-2. Also, pleas e indicate the water quality parameters that are removed by this treatment unit and the estimat ed removal efficiency. If this Produced Water Management System does not use ion exchange, skip to Question C3-11 . Remember to complete one copy of this question for each ion exchange unit used in this Produced Water Management System. Also make sure to complete Question C3-3 for any brine waste generated.

Design Capacity of Ion Exchange System (bbl/d) bbl/d

Volume of Produced Water into Ion Exchange in 2008 (bbl) bbl

Vendor/Unit Name

Resin Name/Type

Average Regeneration Fr equency (specify frequency; e.g., once/hour, once/4 hours, once/day)

Average Resin Life (yrs) years

Chemicals Added (e.g., regenerates, biocides)

Capital Cost of Ion Exchange Unit and Year of

Cost $

Year:

2008 Operating and Maintenance Cost of Ion Exchange Unit $

Pilot Project Yes

No

Targeted Water Quality Parameter

Parameter Name Estimated Removal Efficiency Basis/Comments CBI?

YesPart C. Produced Water Management Information Section 3: Detailed Produced Water Management and Treatment Questions CBM Questionnaire

Operator ID:

C-23 Project ID from Part A:

Operator’s Name or ID for this Produced Water Management System:

Low-Pressure Filtration Question Copy of

C3-11. Low-Pressure Filtration – Complete Question C3-11 if you checked that this Produced Water Management System uses low-pressure filtration in Table C-2. Also, please indicate the water quality parameters that are removed by this treatment unit and the estimated removal efficiency. If this Produced Water Management System does not use low-pressure filtration, skip to Question C3-12

. Remember to complete one copy of this question fo r each low-pressure filtration unit used in this Produced Water Management System. Also make sure to complete Question C3-3 for any residuals generated.

Design Capacity of Filtration System (bbl/d) bbl/d

Volume of Produced Water Entering LowPressure Filtration Unit in 2008 (bbl) bbl

Type Multimedia

Sand

Ultrafiltration

Other:

Vendor/Unit Name

Average Cleaning Frequency (specify frequency; e.g., once/hour, once/4 hours, once/day)

Chemicals Added (e.g., coagulants, biocides)

Capital Cost of Filtration System and Year of Cost $

Year:

2008 Operating and Maintenance Cost of Filtration System $

Pilot Project Yes

No

Targeted Water Quality Parameter

Parameter Name Estimated Removal Efficiency Basis/Comments CBI?

YesPart C. Produced Water Management Information Section 3: Detailed Produced Water Management and Treatment Questions CBM Questionnaire

Operator ID:

C-24 Project ID from Part A:

Operator’s Name or ID for this Produced Water Management System:

High-Pressure Filtration Question Copy of

C3-12. High-Pressure Filtration – Complete Question C3-12 if you checked that this Produced Water Management System uses high-pres sure filtration in Table C-2. Also, please indicate the water quality parameters that are removed by this treatm ent unit and the estimated removal efficiency. If this Produced Water Management System does not use high-pressure filtration, skip to Question

C3-13 . Remember to complete one copy of this question for each high-pressure filtration unit used in this Produced Water Management System. Also ma ke sure to complete Question C3-3 for any residuals generated.

Design Capacity of Filtration System (bbl/d) bbl/d

Volume of Produced Water Entering HighPressure Filtration Unit in 2008 (bbl) bbl

Type Reverse Osmosis

Nanofiltration Other (Specify type):

Vendor/Unit Name

Average Cleaning Frequency (specify frequency; e.g., once/hour, once/4 hours, once/day)

Membrane Life (years) years

Chemicals Added (e.g., coagulants, biocides)

Capital Cost of Filtration System and Year of Cost $

Year:

2008 Operating and Maintenance Cost of Filtration System $

Pilot Project Yes

No

Targeted Water Quality Parameter

Parameter Name Estimated Removal Efficiency Basis/Comments CBI?

YesPart C. Produced Water Management Information Section 3: Detailed Produced Water Management and Treatment Questions CBM Questionnaire

Operator ID:

C-25 Project ID from Part A:

Operator’s Name or ID for this Produced Water Management System:

Treatment Not Specified Elsewhere Question Copy of

C3-13. Treatment Not Specified Elsewhere – Complete Question C3-13 if you checked that this Produced Water Management System uses land application or treatment not specified elsewhere in Table C-2. Remember to complete one copy of this question for any additional treatment units used at this Produced Water Management System. Also make sure to complete Question C3-3 for any residuals generated.

a. General Information – Please complete the following table of general information. Also, please indicate the water quality parameters that are removed by any treatment unit and the estimate removal efficiency.

Design Capacity of This Treatment System (bbl/d) bbl/d

Volume of Produce Water Entering Treatment Unit in 2008 (bbl) bbl

Description of Treatment System

Vendor/Unit Name

Type and Amounts of Chemicals Used With This System in 2008 (e.g., coagulants, biocides, soil amendments)

Average Regeneration/Cleaning Frequency Specify units (e.g., once/hour, once/4 hours, once/day):

Capital Cost of System and Year of Cost $

Year:

2008 Operating and Maintenan ce Cost of System $

Pilot Project Yes

No

Targeted Water Quality Parameter (Complete for Treatment Technology Not Specified Elsewhere)

Name Estimated Removal Efficiency Basis/Comments CBI?

YesPart C. Produced Water Management Information Section 4: Produced Water Quality Data CBM Questionnaire

Operator ID:

C-26 Project ID from Part A:

Operator’s Name or ID for this Produced Water Management System:

SECTION 4: PRODUCED WATER QUALITY DATA

To enable EPA to evaluate the ability of produced water management systems to remo ve potential pollutants of concern, water quality data is required. EPA will evaluate the perfor mance of produced water management systems via analysis of effluent data, and as available, analysis of data that represents the influent to the produced water management system. EPA also requests information relate d to the measured values (e.g., analytical method information) to allow for examination of the quality of data provi ded. This section requests this water quality data for each Produced Water Management System.

C4-1. Complete Table C-3 for locations related to treatment unit processes for which you have water quality

data. All information collected will aid EPA in det ermining CBM produced wa ter characteristics by basin; identifying pollutants; calculating baseli ne loadings; and estimating the effectiveness of treatment technologies. Note that if you already have water quality data in electronic or hardcopy format, you may submit these data using your own reporting method. If you need more space, make a copy of Table C-3. Locatio ns may include: wellhead, influent to treatment; effluent from treatment; and discharge outfalls. Please include all paired influent and effluent data for any treatment units operated by your site. Pr ovide all relevant data for 2008. If 2008 data is unavailable, please provide the most recent data.

• The pollutant analyzed;

• The measured value including units (if not detec ted, list the detection limit value preceded by a less than (<) symbol);

• The analytical method used;

• The date samples were collected;

• Where the samples were collected (this should be a number from a label on your block flow diagram);

• Whether the samples were collected as grabs or as composites; and

• Provide flow rate only if flow rate data were recorded at the sampling point during the sampling period. CBI?

YesPart C. Produced Water Management Information Section 4: Produced Water Quality Data CBM Questionnaire

Operator ID:

C-27 Project ID from Part A:

Operator’s Name or ID for this Produced Water Management System:

C4-2. Whole Effluent Toxicity Information

a. Have you performed any whole effluent toxi city (WET) testing for this Produced Water Management System?

Yes No (Skip to Question C4-3)

b. Please provide the information on the WET te sting conducted, including the including the test organism, test type (e.g., acute or chronic), and the results.

c. Has toxicity ever exceeded permit limits?

Yes No ( Skip to Question C4-3 )

d. Was a toxicity identification evaluation (TIE), toxicity reduct ion evaluation (TRE), or other study performed to determine the cause, treatab ility, or effective management of toxicity?

Yes

2008 Annual Costs ($) for TIE and TRE:

No ( Skip to Question C4-3 )

e. Please describe the cause of the toxicity and the final resolution of the toxicity issue.

Attached CBI?

YesPart C. Produced Water Management Information Section 4: Produced Water Quality Data CBM Questionnaire

Operator ID:

C-28 Project ID from Part A:

Operator’s Name or ID for this Produced Water Management System:

Analytical Data Question Copy of

Table C-3. Analytical Data

Note: If you already have water quality data in electronic or hardcopy format, you may submit these data using your own reporting method. EPA prefers water quality data be submitted in an electronic format (e.g., Microsoft© Access, Microsoft© Excel, non-scanned PDF).

Submitted own data as attachment to this questionnaire.

Pollutant Measured

Value (mg/L) Analytical

Method Permit

Limit (mg/L) Sampling

Date Location Sample Type (grab/ composite) Flow Rate (gpm)

Total Dissolved

Solids 1124 EPA Method

160.1 7/1/06 SP-1 Grab 130Part C. Produced Water Management Information CBM Questionnaire

Operator ID:

C-29 Copy of

C4-3. Comments on Part C. Please cross-reference your comments by question number. If you need additional space, please photocopy this page before writing on it , and number each copy in the space provided. Please use this table to comment on any information you would like to share with EPA on how you manage CBM produced water.

Question

Number Comment

CBI?

Yes

CBI?

Yes

CBI?

Yes

CBI?

Yes

CBI?

Yes

CBI?

Yes

CBI?

Yes

CBI?

Yes

CBI?

Yes

CBI?

Yes

CBI?

Yes

CBI?

Yes

CBI?

YesPart D. Supporting Information Section 1: List of Acronyms a nd Abbreviations CBM Questionnaire

D-1 

### PART D. SUPPORTING INFORMATION

SECTION 1: LIST OF ACRONYMS AND ABBREVIATIONS

% Percent

API American Petroleum Institute bbl Barrel (42 gallons) bbl/d Barrels per day

bcf Billion cubic feet BPJ Best Professional Judgment

BTU British thermal unit

CBM Coal bed methane CFR Code of Federal Regulations CFS Cubic feet per second

Cl- Chloride

CWA Clean Water Act DOE U.S. Department of Energy dpy Days per year

EA Environmental Assessment EC Electrical Conductivity EDR Electrodialysis Reversal ELG Effluent limitations guideline EPA U.S. Environmental Protection Agency

ft Foot ft2 Square foot

ft3 Cubic foot gal Gallon gpd Gallons per day gpm Gallons per minute hrs/day Hours per day

in Inch

kWh Kilowatt-hour

lb Pound lb/hr Pounds per hour

mcf Thousand cubic feet

MCL Maximum contaminant level mg/L Milligrams per liter MGD Million gallons per day MMBTU/hr Million BTUs per hour

mmcf Million cubic feet MW Megawatt NA Not applicable NPDES National Pollutant Discharge Elimination System POTW Publicly Owned Treatment Works ppm Parts per million PrOTW Privately Owned Treatment Works psi pounds per square inch

RO Reverse osmosis

s Second SAR Sodium Adsorption Ratio

SIC Standard Industrial Classification

tcf Trillion cubic feet

TDS Total dissolved solids ton English ton, wet weight TMDL Total maximum daily load tpy Ton per year TSS Total suspended solids yr YearPart D. Supporting Information Section 2: Definition of Key Terms CBM Questionnaire

D-2 SECTION 2: DEFINITION OF KEY TERMS

Ad Valorem Taxes— A type of property taxes, usually levied as a percentage of production or value of production by local authorities, such as a county, a school district, city, or township.

Aeration— Process that mixes air and water, normally by inject ing air into water, spraying water into the air, or allowing water to pass over an irregular surface, to release compounds from the water through oxidation, precipitation, or evaporation.

Arroyo— An intermittently dry creek.

Balance Sheet— A quantitative summary of a company's financial condition at a specific point in time, including assets, liabilities and net worth. The first part of a balance sheet shows all the productive assets a company owns, and the second part shows all the financ ing methods (such as liabilities and shareholders' equity); also called statement of condition.

Batch (Intermittent) Discharge or Application— A discreet volume or mass of liquid or solid that is collected and discharged periodically.

Beneficial Use— The produced water is of good enough qualit y to be used for wildlife propagation or livestock watering or other agricultural uses and the produ ced water is actually put to such use during periods of discharge.

Best Management Practices (BMP)— Methods that have been determined to be the most effective, practical means of preventing or reducing pollution from non-p oint sources. Activities, maintenance procedures, and other management practices to prevent or reduce the pollution. BMPs may include treatment requirements, operating procedures, and practi ces to control plant site runoff, spillage or leaks, sludge or waste disposal, or drainage from raw material storage.

C Corporation— A business that is a completely separate entity from its owners, unlike a partnership.

Capital Cost— The costs associated with the pur chase, development or construction of fixed assets such as land, stations, buildings, and water treatment equipment.

Capital Cost of Project Development— As defined for Question B3-13. this includes all capital and one-time costs of project development beyond the immediate tophol e equipment (e.g., Christmas tree), including any exploratory costs, planning costs, geological and geophysical costs, site development costs, such as pads and roads or other land preparation activities, produ ction pumps, gas/water separation equipment, other onsite gas gathering or treatment equipment, and gas pipelines to offsite location and/or point of sale. It does not include any capital costs of water management (see definition).

Clarification— Separation and concentration of solids from liqui d/solid mixtures that are mostly liquid.

Clean Water Act— Federal legislation enacted by Congress to “r estore and maintain the chemical, physical, and biological integrity of the Nation’s waters” (Feder al Water Pollution Control Act of 1972, as amended, 33 U.S.C. 1251 et seq.).

Coalbed Methane (CBM)— Natural gas found in coal seam reservoirs.

Coalbed Methane (CBM) Project— A CBM project comprises a well, group of wells, lease, group of leases, or recognized unit which you operate as an economic uni t when making production decisions. The well or wells may be associated with one or more water managem ent practices (that is, the project should be defined on the basis of gas production economics, not necessar ily on the basis of a water management system). If a project operates as a unit in which you are not the so le operator, please include information only for that portion of a unit for which you active ly operate. EPA understands that the concept of a project is variable over time, so the well or wells included as a part of a projec t should be those that best defined the project as it

existed in 2008.Part D. Supporting Information Section 2: Definition of Key Terms CBM Questionnaire

D-3 Coalbed Methane (CBM) Unit— A unit is a group of leases that ar e managed together with the intention of maximizing production (and/or minimizing costs), where operating these leases independently might result in more wells drilled, less production realized, or both. Un its can be formal, legal entities that are written into lease agreements, pooling agreements, and/ or state permits; or informal, particularly where minerals rights on several leases are owned by the same entity.

Continuous Flow— A flow regime characterized by persistent flow, as opposed to intermittent flow or batch

processes.

Contract Haul— The removal of any waste stream (including pr oduced water) from a facility by a company authorized to transport and dispose of the waste, excluding discharges to sewers or surface waters.

Cost-Depletion Method— Recovery of the tax basis in a mineral d eposit by deducting it proportionately over the productive life of the deposit. This is in contra st to the percentage depletion method, which permits a taxpayer with an economic interest in a mineral deposi t to deduct a specified percentage of the gross income from the deposit instead of using the cost depletion method. Percentage depletion is generally restricted to independent producers, royalty owners, and some other narrow categories of oil and gas owners.

Cost of Capital— The opportunity cost of an investment; that is , the rate of return that a company would

otherwise be able to earn at the same risk level as the investment that has been selected. For example, when an investor purchases stock in a company, he/she expects to see a return on that investment. Since the individual expects to get back more than his/her initial in vestment, the cost of capital is equal to this return that the investor receives, or the money that the company misses out on by selling its stock.

Creek— A small, natural stream that is often a shal low or intermittent tributary to a river.

Cumulative Depreciation— The total charges against the fixed assets of a company for wear and tear, obsolescence, or the depletion of a natural resource —oil in the ground, for instance—as it is used up.

Current Assets— Any asset that can reasonably be expected to be used up or converted to cash or sold within a year or less, e.g., cash, accounts receivable, prepaid expenses.

Current Liabilities— Debts that are payable within 1 year, includ ing accounts payable, notes payable within one year, accrued expenses and taxes, and the portio n of long-term debt that are paid this year.

Depreciation, Depletion, and Amortization— The allocation of the cost of an asset over a period of time for accounting and tax purposes. Depletion, which reflects the declining value of a natural resource asset as it is produced, may be calculated either using the cost- depletion or percentage depletion method, depending on type of firm (see cost-depletion method).

Design Capacity Flow Rate— Maximum flow rate a treatment unit is designed to handle.

Direct Discharge— The discernible, confined, and discrete conveyance of pollut ants to United States surface waters such as rivers, lakes, and oceans. See 40 CFR 122.2.

Discharge— The discernible, confined, and discrete conveyan ce of pollutants to: (1) United States surface waters such as rivers, lakes, and oceans (“direct disc harge”), or (2) a publicly owned, privately owned, federally owned, combined, or other treatment works (“indirect discharge”). See 40 CFR 122.2.

Disposal— Intentional placement of waste (including produc ed water) into or on any land where the material will remain after closure. Waste placed into water is defined as discharge, not disposal.

Division— A business unit of a firm, often treated as a profit center (see profit center).Part D. Supporting Information Section 2: Definition of Key Terms CBM Questionnaire

D-4 Drilling Cost —Includes tangible and intangible costs of drilling and completing a well (if completed), as defined in API’s Joint Association Survey of Drilling Cost s, which includes “expenditures for drilling dry holes and productive wells and equipping new productive wells th rough the Christmas tree” installation...these cost elements are the costs of labor, materials, supplies, wa ter, fuels, power, and direct overhead (i.e., field, district, and regional), for such operations as site preparation, road building, erecting and dismantling derricks and drilling rigs, drilling hole, running and cementing casing, hauling materials, etc. Include the total cost of water, if purchased, or cost of water well, if drilled and chargeable to oil or ga s well drilling operations. Well costs also include machinery and tool charges and rent als, and depreciation charge s, where appropriate, for rigs and other equipment and facilities which will be used in drilling more than one well. Deduct the condition value of materials salvaged after use where appropriate. Do not report the cost of lease equipment such as artificial lift equipment and downhole lift equipment, flow lines , flow tans, separators, etc. that are required for production. Do not reduce the costs by test well, bottom hole, or dry hole contributions.

Earnings Before Interest and Taxes (EBIT)— A measure of a company’s earning power from ongoing operations, equal to earnings before deduction of intere st payments and income taxes; also called operating profit or operating income.

Emergency Discharge— A volume or mass of liquid or solid residuals are discharged only during extenuating circumstances (i.e., a treatment process malfunction).

Equalization— The process of storing produced water for later tr eatment or discharge. This process can also provide some removal of some suspended solids.

Evaporation— The process by which water or other liquid becomes a gas. Water from land areas, bodies of water, and all other moist surfaces is absorbed into the atmosphere as a vapor.

Filtration— This treatment technology relies on the difference in size between the pore and the particle to be removed. Low-Pressure Filtration typical involves using low pressure and can include direct media filtration using one or more layers of granular media such as sand and/or anthracite with coagulation. High-Pressure Filtration typically uses a driving force to transport wastewater through a membrane, which separates the wastewater into two flows: permeate and re tentate (e.g., nanofiltration and reverse osmosis).

Fiscal Year— A 12-month period over which a company budgets its spending. A fiscal year does not always begin in January and end in December; it may run over any period of 12 months.

Groundwater— Water in a saturated zone or stratum beneath the surface of land or water.

Hurdle Rate— The required rate of return in a discounted cash flow analysis, above which an investment makes sense and below which it does not. Often, this is based on the firm's cost of capital or weighted average cost of capital, plus or minus a risk premium to reflect the project's specific risk characteristics; also called required rate of return.

Income Statement— An accounting report showing various cat egories of revenues, expenses, interest payments, taxes, and net income.

Indirect Discharge— The discernible, confined, and discrete c onveyance of pollutants to a publicly owned, privately owned, federally owned, co mbined, or other treatment works.

Infiltration— The process by which water penetrate s into soil from the ground surface

Injection Well (Deep or Sh allow Well Injection) — Any bored, drilled, or driven shaft or a dug hole, improved sinkhole, or a subsurface fluid distribut ion system where the depth is greater than the largest surface dimension that is used to dispose of fluids underground. See underground injection.

Interest Expense— An expense for interest on a loan.

Intermittent Flow— A flow regime characterized by flows that occur sporadically, seasonally, or for only a portion of time during normal operations.Part D. Supporting Information Section 2: Definition of Key Terms CBM Questionnaire

D-5 Ion Exchange (IX) — Treatment process using a resin formulated to adsorb cationic or anionic species to remove pollutants from an influent stream.

Lake— A body of freshwater or saltwater surrounded by land.

Landfill— A natural or man-made formation in the earth in to which solid waste, sludges, or other process residuals are placed for permanent disposal.

Lease Bid— Amount (generally a lump sum at time of lease acquisition) paid to the mineral rights owner to hold the property for a period of time, whether or not the lease is developed. This does not include rental payments, which may be charged over time, nor does it include royalties, which are paid only once production begins.

Limited Liability Corporation or Company— A type of company, authorized on ly in certain states, whose owners and managers receive the limited liability and (usua lly) tax benefits of an S Corporation without having to conform to the S corporation restrictions.

Limited Liability Partnership— See limited liability corporation.

Long-term Debt— Liabilities that are paid off over periods gr eater than 1 year, including mortgages, notes, bonds, debentures, long-term leases, bank debt, and deferred income taxes.

Maximum Daily Flow— The maximum flow in a 24-hour period.

Membrane Filtration— Separation processes that use a me mbrane as the filter mechanism.

Mineral Rights Owner— Party owning the rights to minerals beneath land that has been or will be used for the purposes of producing minerals or hydrocarbons. Party may or may not own the rights to the land surface.

See surface owner.

NAICS— NAICS is an economic classification system. Econom ic units that use like processes to produce goods or services are grouped together. These units ar e assigned a code for identification purposes. US Census Bureau (http://www.cen sus.gov/epcd/www/naics.html). Common 6-digit NAICS in the CBM extraction industry include 211111, Crude Petroleum & Natural Gas Extraction; 213111, Drilling Oil and Gas Wells; 213112, Support Activities for Oil and Gas; 212111, Bituminous Coal & Lignite Surface Mining; 212112, Bituminous Coal Underground Mining; 221210, Natural Gas Distribution; 221112, Fossil Fuel Electric Power Generation; and 324110 Petroleum Refineries.

Nanofiltration— A method of water treatment that utilizes memb ranes to remove hardne ss, bacteria, viruses, and organic-related color.

Net Income— Gross sales minus taxes, interest, depreciation, and other expenses.

Net Sales— Gross sales minus returns, discounts, and allowances (investorwords.com).

NPDES Permit Program— The National Pollutant Discharge E limination System (NPDES) program authorized by Sections 307, 318, 402, and 405 of the Clea n Water Act that applies to facilities that discharge wastewater directly to United Stat es surface waters. For the CBM industr y, operators are required to obtain NPDES permits for their direct discharges to surface waters.

Operating and Maintenance Cost— The ongoing, repetitive co sts of operating a water system; for example, employee wages and costs for treatment chemicals and periodic equipment maintenance.

Operating Costs (income statement)— These are the recurring expenses which are related to the operation

of a business.

Operator— The person responsible for the management and day -to-day operation of one or more CBM wells. The operator is generally a working interest owner or a company under contract to the working interest owner(s).Part D. Supporting Information Section 2: Definition of Key Terms CBM Questionnaire

D-6 Other Assets (net of depreciation)— Any non-current assets (assets that cannot be easily converted to cash) other than property, plant and equipment.

Owner Firm— The next level up in the corporate hierarchy from the owner/operator. This firm owns the owner/operator firm or division, regardless of whether t he owner/operator is a contract operator or a working interest operator.

Owner/Operator— The entity (firm or division, if a profit c enter) responsible for the management and day-today operation of a well. The owner/ operator is generally a working interest owner or a company under contract to the working interest owner(s). Managemen t decisions might include whether well(s) should be
shut-in, worked over or abandoned, whether addition al or replacement wells should be drilled, whether additional or different production equipment should be in stalled, and any other decision factor used by DOE in

the General Instructions to Form EIA-23.

Payback Period— The amount of time taken to break even on an investment. Since this method ignores the time value of money and cash flows after the payback per iod, it can provide only a partial picture of whether

the investment is worthwhile.

Payments to Principal— Payments made on the principal portion of a loan or other borrowing mechanism classified as long-term debt (excludes the interest payments on these loans).

Pollutant— Under the Clean Water Act, a dredged spoil, solid waste, incinerator residue, filter backwash, sewage sludge, munitions, chemical waste, biological material, certain radioactive material, heat, wrecked or discarded equipment, rock sand, cellar dirt, and industri al, municipal, and agricultural waste (40 CFR 122.2).

Pollution Prevention— The use of materials, processes, or practice s that reduce or eliminate the creation of pollutants or wastes. It includes practices that reduce the use of hazardous and non-hazardous materials, energy, water, or other resources, as well as thos e practices that protect natural resources through conservation or more efficient use. Pollution prevention includes but is not limited to source reduction, inprocess recycle and reuse, and water conservation practices.

Primary Collection Point— The first point in the Produced Water Management System where produced water from all wells flowing to one final destination are combined. In example 4, the sedimentation/equalization pond would be the primary collection point.

Privately Owned or Held— A company whose shares are not traded on the open market.

Privately Owned Treatment Works (PrOTW)— Any device or system owned an d operated by a private entity and used for storage, treatment, recycling, or reclamation of liquid industrial wastes.

Produced Water— Water drawn from any hydrologic unit for the purpose of producing hydrocarbons.

Produced Water Management System— For the purposes of this questionnaire, Produced Water Management System is defined as a system that is managed by the operator as a single unit for produced water management. Produced water management may in clude different treatment, transfer to disposal locations, and/or reuse practices. The Produced Wate r Management System may treat water from a lease, field, project, or plan of development (POD). Wa ter discharge permits, l and application permits, and applications for permits to drill (APD) typically use one of these terms to define the well grouping. Note that the Produced Water Management System can have multiple disposal options but it is managed as a single unit. For example, an operator may use a combination of stock tanks, irrigatio n, and storage ponds on a single Produced Water Management System. Also note that the Produced Water Management System may serve the same or different wells from the CBM project defined in Part A. Finally, for the purposes of this questionnaire, the PWMS does not include the produced wa ter gathering system (e.g., piping or trucking) that is used to transport the produced water between the CBM wellhead and a centralized location (e.g., treatment unit, land application site). For example, produced water gathering pipes are typica lly installed underground at the same time as the gas gathering pipes.Part D. Supporting Information Section 2: Definition of Key Terms CBM Questionnaire

D-7 Produced Water Treatment or Treatment— The treatment of water with physical, chemical, biological, or other processes to remove specific pollutants from the wa ter stream or to alter the physical or chemical state of specific pollutants in the water stream. Produced wa ter treatment is performed to allow for discharge, disposal or beneficial use of the water.

Profit Center— A business unit or department which is treated as a distinct entity enabling revenues and expenses to be determine d so that profitability can be measured. Fo r the purposes of this questionnaire a profit center is defined as an entity that tracks financ es at least through earnings before interest and taxes.

Property, Plant and Equipment— A type of asset a company owns that is vital to business operations but cannot be easily liquidated. The value of property, plant and equipment is typically depreciated over the estimated life of the assets, because even the longest-te rm assets become obsolete or useless after a period

of time.

Publicly Owned or Held— A company which has issued securities through an offering, and which are now traded on the open market.

Publicly Owned Treatment Works (POTW)— Any device or system owned by a state or municipality that is used to recycle, reclaim, or treat liquid m unicipal sewage and/or liquid industrial wastes.

Receiving Waters— A stream, river, or other surface water body to which wastewater or other pollutants are discharged.

Retained Earnings— Earnings not paid out as dividends but inste ad reinvested in the core business or used to pay off debt; also called earned surplus or accumulated earnings or unappropriated profit.

Reverse Osmosis (RO)— A method of water treatment that involv es the application of pressure to a concentrated solution which causes the passage of a liquid from the concentrated solution to a weaker solution across a semi-permeable membrane. The membr ane allows the passage of the solvent (water) but not the dissolved solids (solutes). This water treatme nt method is typically used for desalinization and the removal of ions, radionuclides, bacteria, and viruses.

River— Water which flows in a channel from high ground to low ground and ultimately to a lake or sea.

Royalty Payments— Payments made to the mineral rights ow ner. These payments may be based on a percentage of the gas produced or as a percentage of the revenues received. A royalty is not a working interest share (see working interest).

S Corporation— A form of corporation, allowed by the IRS fo r most companies with 75 or fewer shareholders, which enables the company to enjoy the benefits of incorpor ation but be taxed as if it were a partnership. Also called Subchapter S Corporation.

SEC Proved Reserves— Proved oil and gas reserves are the estima ted quantities of crude oil, natural gas, and natural gas liquids which geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions, i.e., prices and costs as of the date the estimate is made. Prices include consideration of changes in existing prices provided only by contractual arrangements, but not on escalations based upon future conditions. See SEC SX Reg. 210.4-10 (November 18, 1981).

Sedimentation Pond— An impoundment constructed at the produced water treatment site to remove suspended solids from the produced water. These impoundments can also provide equalization of the produced water prior to treatment or discharge.

Selling, General and Administrative Costs— Income statement item which combines salaries, commissions, and travel expenses for executives and sa lespeople, advertising costs, and payroll expenses.

Severance Tax Payments— Payments made to a state for the right to remove a natural resource, usually applied to gas for use in another state.Part D. Supporting Information Section 2: Definition of Key Terms CBM Questionnaire

D-8 Sludge— The accumulated solids and solid residues separated from liquids by settling or treatment.

Storage Pond— An impound for liquid wastes.

Sum of Liabilities and Owner Equity— Current Liabilities + Long-Term D ebt + Retained Earnings + Other Owner Equity.

Surface Owner— Party owning land that has been or will be used for the purposes of producing minerals or hydrocarbons. Party may or may not ow n mineral rights beneath that land.

Surface Use Plan— Agreement between a landowner and a coalbed methane producer describing the conditions of land use for coalbed methane production including existing and proposed facilities (e.g. wells, roads, pipelines, and treatment systems), compensation for property damages, and considerations for land

reclamation.

Surface Waters— Waters of the United States including, but not limited to, oceans and all interstate and
intrastate lakes, rivers, streams, cr eeks, arroyos, mudflats, sand flats, wetlands, sloughs, wet meadows, playa lakes, and natural ponds (40 CFR 122.2).

Technically Recoverable Reserves— Reserves recoverable given current technologies and industry practices and assuming no limitations on production due to market conditions.

Total Assets— Total Current Assets + Total Non-current Assets (including Property, Plant, and Equipment and Other Assets Net of Depreciation).

Treatment Unit— A unit operation used to remove pollutants from produced water. Treatment units include, but are not limited to sedimentation po nds, ion exchange system s, and filters.

Ultimate Parent— The firm at the highest level of the corporate hierarchy. If the owner firm is not owned by another firm, the owner firm is the ultimate parent. If the owner/operator is not owned by any other firm, there is no ultimate parent.

Ultrafiltration (UF) — A method of water treatment that utilizes membranes in a pressure-driven process for concentrating solutions containing colloids and higher molecular weight materials. This water treatment method typically removes viruses, colloids, clays, bacte ria, humic acids, and fulvic acids, but not ions or

radionuclides.

Underground Injection— The technology of placing fluids undergr ound, in porous formations of rocks, through wells or other similar convey ance systems. See injection well.

Unusual Expenditure— An expenditure that does not occur every y ear and that is more than 10 percent of O&M (e.g., major storm damage causes large outlay for repai rs); or a capitalized one-time or capital cost not considered a lease acquisition or development cost (e.g ., construction of a septic system or a building not directly associated with production) and is not a cost covered in Part C.

Water Reuse— Beneficial use of coalbed methane produced water (e.g., livestock watering, irrigation, or dust control) in lieu of discharge/disposal.

Wellhead Price of Gas— The price of gas at the wellhead, which is different from the price at natural gas hubs, reflecting the implicit cost to transport the gas to buyer, including the cost of gathering, compression, dehydration, etc.

Working Interest— Percentage of ownership in an oil and gas lease granting its owner the right to explore, drill and produce oil and gas from a tract of property . Working interest owners are obligated to pay a corresponding percentage of the cost of leasing, drilling, producing and operating a well or unit. After royalties are paid, the working interest also entitles its owner to share in production revenues with other working interest owners, based on the percentage of working inte rest owned. Working interest is not royalty; mineral rights owners who do not have working interests do not contribute to the costs of production.Part D. Supporting Information Section 2: Definition of Key Terms CBM Questionnaire

D-9 Workover, Stimulation, or Recompletion— Major, intermittent tasks. Work overs are major maintenance or

remedial treatments on a well. Well stimulation includes fr acturing, for example, eit her performed initially or later in the productive life of the we ll. Recompletion is a process undertak en to restore the productivity of a well, including to complete a well in a new stratum or strata.

Zero Discharge— Disposal of produced water other than by direct discharge to surface water or by indirect discharge to a POTW. Zero discharge does not allo w for periodic or infrequent discharges attributed to activities such as maintenance, blowdown, or syst em purges. Examples include evaporation, underground injection, contract hauling, and/or water reuse.Part D. Supporting Information

Section 3: Small Business Definitions an d NAICS Identification CBM Questionnaire

D-10 SECTION 3: SMALL BUSINESS DEFINI TIONS AND NAICS IDENTIFICATION

SBA allows small businesses to self-certify (subject to challenges, if they arise), which means that if you classify yourself as a small busine ss, EPA will assume you have made this designation in good faith and will accept this designation.

The Small Business Administration (SBA) defin es small businesses in the following way:

“The Small Business Act states that a small busin ess concern is "one that is independently owned and operated and which is not dominant in its field of operation." The law also states that in determining what constitutes a small business, the def inition will vary from i ndustry to industry to reflect industry differences accurately. SBA's Sma ll Business Size Regulations implement the Small

Business Act's mandate to SBA. SBA has also esta blished a table of size standards, matched to North American Industry Classificati on System (NAICS) industries.”

The following table lists NAICS codes that are likel y to be common among CBM operators. It also lists the

current SBA definitions of small business for each of these likely NAICS codes. If, for any reason, you are not certain of your NAICS, the following website can be accessed using a key word search: http://www.census.gov/naics/2007/index.h tml; alternatively, you can use http://www.census.gov/naics/2007/NAICOD07.HTM, if you pr efer to scroll through the definitions by type of industry. Note that clicking on t he NAICS codes provides a definiti on of the industry in question.

If you do not see an applicable NAICS in this table, you can refer to SBA’s Table of Size Standards, accessible at http://www.sba.gov/idc/groups/public /documents/sba_homepage/serv_sstd_tablepdf.pdf. Alternatively, if you prefer, you can contact the EPA help line for assistance.

NAICS Name of Industry SBA Small Business Size

Standard

211xxx Oil and Gas Extraction ≤ 500 employees

21211x Coal Mining ≤ 500 employees

213111 Drilling Oil and Gas Wells ≤ 500 employees

213112 Support Activities for Oil and Gas Operations ≤ $6.5 million annual revenues

213113 Support Activities for Coal Mining ≤ $6.5 million annual revenues

22111x Electric Power Generation <4 million mW-hrs/year

221112 Fossil Fuels Electric Power Generation <4 million mW-hrs/year

22112x Electric Power, Transmission, Cont rol and Distribution <4 million mW-hrs/year

22121x Natural Gas Distribution ≤ 500 employees

32411x Petroleum Refineries ≤ 1,500 employees

486110 Pipeline Transportation of Crude Oil ≤ 1,500 employees

486210 Pipeline Transportation of Natural Gas ≤ $6.5 million annual revenues

The size standards are not the only standards that apply, however. SBA further defines small business in such a way that any business concern th at is affiliated with a large business or, in many cases, a foreign firm

cannot be considered a small bus iness. SBA defines affiliation as:

a. General Principles of Affiliation.

i. Concerns and entities are affiliates of each other when one controls or has the power to control the other, or a third party or pa rties controls or has the power to control

both. It does not matter whether control is ex ercised, so long as the power to control

exists.Part D. Supporting Information

Section 3: Small Business Definitions an d NAICS Identification CBM Questionnaire

D-11 ii. SBA considers factors such as ownership, management, pr evious relationships with
or ties to another concern, and contractua l relationships, in determining whether

affiliation exists.

iii. Control may be affirmative or negative. Nega tive control includes, but is not limited to, instances where a minority shareholder has the ability, under the concern's charter, by-laws, or shareholder's agreement, to pr event a quorum or otherwise block action by the board of direct ors or shareholders.

iv. Affiliation may be found where an individual , concern, or entity exercises control indirectly through a third party.

v. In determining whether affiliation exis ts, SBA will consider the totality of the circumstances, and may find affiliation even though no single factor is sufficient to

constitute affiliation.

Examples of affiliation would include a subsidiary of a large firm, a firm owned 50 percent or more by a large firm, and a joint venture by a small firm and a large firm. Even if the joint venture itse lf meets size standards, this affiliation would render the joint venture a large fi rm. However, if two small firms, each of which meets SBA size standards, join in a joint venture, the joint vent ure is also considered a small firm if it meets size standards. Another example of affiliati on is a business concern t hat has as a corporate officer a person who is a corporate officer of a large firm. Small firms associat ed with large venture capital firms or investment firms through their investments in the small firm , however, are not considered affiliated.