OGP Activity on Shale Gas

1. OGP Activity on Shale Gas Social Responsibility Working Group meeting Washington D.C, June 2013

2. Myths & Realities: “Flaming Faucets” “Gasland incorrectly attributes several cases of water well contamination in Colorado to oil and gas development when our investigations determined that the wells in question contained biogenic methane that is not attributable to such development.” Image from GasLand film

3. International approach, regional focus

4. Gas From Shale Task Force:2013 technical and global work • Critical period of time for NGS in EU • EU activities shifting from political to regulatory phase • SGATF becoming more proactive and strategic to drive the legislative agenda • Risk of EU rushing into ‘inappropriate’ regulation • Need for additional technical expertise • Close coordination with other related initiatives (e.g. Gas Naturally, Shale Gas Europe) • Legislative “way forward” expected June-October 2013 • Requests from EU • On-line Disclosure of HF Fluid Components • Study on potential economic benefits of NGS production in EU • OGP Code of Good Practices for NGS

5. A simple, easy to implement, public website is appropriate at this stage • To cover shale directed, hydraulically fractured wells in the European Economic Area • Potential to extend to other countries • OGP members able to participate on a voluntary basis • others welcome to join if they commit to providing timely and accurate data • Information, as per “fracfocus” in pdf format to be submitted by the operator to OGP • Name of operator • Location of well • Well depth • Total volume of water used • Chemical usage – maximum ingredient concentration (% by mass) • Access via the OGP website • Searchable by country • Complementary to other initiatives Fluid and Additive Component Transparency Service

6. Multiplying Industry voice • Industry Coalition  competitiveness & growth • Need for data  Poyry study • EU28 but focus on PL, UK, FR • 3 scenarios: low, good, ‘boom’ production scenario in EU • Impact on direct and indirect job creation, tax revenue • Modelling of impact on gas and electricity prices

7. Good Practices • Request from European Commission • Global reach but initial EU focus • NOT standard • NOT binding for members • Draft based on assessment of API, CAPP, APPEA, IEA, DNV and member standards, practices, codes of conduct etc • Launch Q3 2013

8. Good Practices: Content • Potential Issues and Impacts • Health and Safety • Stakeholder Engagement and Community Impacts • Well Integrity and Groundwater Protection • Surface Water Protection and Produced Water Disposal • Surface Water Use and Sources • Air Emissions • Land Use • Biodiversity • Induced Seismicity • Glossary

9. Activities Outside the EU • Translating external NGS Q&A’s into Arabic, French immediately for North Africa, then Spanish for Latin America • Bi-monthly discussion with members how/when to expand activities beyond current European focus • Expect OGP on-line disclosure of HF fluid components to be expanded globally in next five years

10. Thank you OGP Contact: Rachel Bonfante Rachel.Bonfante@ogp.be

11. Shale Gas Advocacy Task Force, Brussels • EU legislative agenda – non exhaustive highlights • May 2013: Green Week – no speaking slot for OGP • 2 May: SGATF meeting • June 2013: International Conference on Economic Aspects of Shale Gas organized by DG ENER TBC • 6 June: SGATF meeting • 7 June 2013 : DG ENVI stakeholder conference – OGP present • 18 June 2013: Launch of NGS FACTS in Brussels (date TBC) • July 2013: launch of inter-service consultation • July 2013: Final Poyry report; Final draft Good Practices document • 11 July: SGATF meeting • October 2013 (TBC): Communication launched(Guidelines, recommendations, gap-filling legislation…?)