Matthew Peloquin 

Senior Production Engineer 

Anadarko Petroleum Corporation 

1 

Shale Gas Water Management 

Marcellus Initiative 2012 

March 29, 2012 
APC Operated Area 

March 29, 2012 2 

Marcellus Shale Play 

0 20 

Miles 

ANADARKO 

FOCUS AREA 

Challenges 

State Forests 

Populated Areas 

Topography 
Working the Entire Water Life Cycle 

March 29, 2012 3 

Water&Sourcing& Transporta1on& Fluid&Containment&

Well&Flow:Back& Hydraulic&Fracturing& Water&Filtra1on&&&

Recycling&
Understand the Need 

March 29, 2012 4 

Completion 

Assumptions 

Frac design 

Frac schedule 

100% Recycle/Reuse 

Production 

Assumptions 

Gross Gas Forecast 

Flowback Yield 

Produced Yield 

100% Recycle/Reuse 

Freshwater Supply 

Required Volumes minus 

Recycled Volumes 

Mul1:Year&Water&Forecast&
Sourcing: Secure Proximal Water 

March 29, 2012 5 

Pine Creek 1 

Pine Creek 2 

Pine Creek Jersey Mills 

APC Surf Wtr WD via Pipe 

WBS #3 

Avis 

Williamsport 

APC Dedicated via Truck 

Jersey Shore 

Goshen Suburban 

Bellefonte 

Municipal / 3rd Party 

85 miles 

65 miles 
Trucking: Recognize Need for Dedicated 

Logistics 

Manage 20+ water haulers 

Up to 120 trucks on the road for APC at a given time 

Separate Freshwater and Residual Trucks 

EH&S Enforcement and Compliance 

Invoices, Invoices, Invoices... 

24/7 On-Call for Foreman (dispatcher) 

Manual Data Entry 

March 29, 2012 6 
Trucking: Attack Inefficiency 

Logistics Value Proposition 

Dedicated Water Command Center 

24/7 Dispatch 

GPS Asset Tracking 

Added oversight on EH&S Compliance 

Streamlined billing/auditing 

Dedicated fleet of trucks 

Manage all market carriers 

March 29, 2012 7 

Period Volume Cost 

2010 Baseline Baseline

1H2011 

Post-Logistics

103% 

174% 14% 

13% 
GPS Asset Tracking 

March 29, 2012 8 

Field Overview 
GPS Asset Tracking 

March 29, 2012 9 

Active Frac Site 
GPS Asset Tracking 

March 29, 2012 10 

Producing Well 
Enhance EH&S Culture 

EH&S Compliance 

Dedicated EH&S Director 

and Field Personnel 

Routine Mini-DOT 

inspections 

Strict adherence drives 

ownership 

CSA 2010 

• Federal program 

• Individual driver score 

(portable) 

• Carrier score 

• Identify and track desired 

drivers and carriers 

March 29, 2012 11 

Rou1ne&Inspec1on&Conformance&Report&
Pumping Solutions: Reduce Truck 

Dependency 

WithdrawalPipelineImpoundmentPads

Major development area 

Proximal to river/creek 

Streamlines execution 

Bull Run Area 

1-Year Activity 

7 Pads (39 Wells) 

(1) 20 MMgal 

Impoundment 

(2) 4 MMgal 

Storage Tanks 

Total Storage 

28 MMgal 

March 29, 2012 12 

6.5 miles 

4.5 miles 
Surface Water Withdrawal 

Pine Creek 1 

Volume: 0.720 mgd 

Two (2) multi-stage 

centrifugal pumps 

• 250 gpm 

• 850 psi discharge 

• 250 HP 

4.5 miles 6” FlexSteel pipeline 

to Impoundment 

• Pressure rating = 1,500 psi 

• ~1,500 ft elevation rise 

Total Water Pumped 

 > 50 MMgal (since 4Q11) 

Pay-Out 

 < 2 Months 

Eliminated > 10,000 truckloads 

March 29, 2012 13 
Water Transfer: Bridging the Gap 

Large Scale Storage to 

Well Pads 

Midstream lays 16” and 12” HDPE 

water infrastructure with gas lines 

Dual 8” Yelomine Pipe where 

lacking permanent pipe 

Temporary transfer pumps 

• Up to 70 bpm depending on hydraulic 

profile 

• MAOP typically 160 psi 

FRESHWATER ONLY 

March 29, 2012 14 
Automation: Provide Continuous 

Control 

Fully Automated Water Withdrawal System 

Satellite communication 

Remote start/stop 

High/Low alarms 

• Pressure 

• Tank Level 

• Flowrate 

Daily withdrawal volumes 

March 29, 2012 15 
Automation: 24/7 Monitoring 

Freshwater Impoundment Levels 

Satellite communication 

High/Low Alarms 

Level Trending 

March 29, 2012 16 
March 29, 2012 17