“Creating Successful Community Partnerships –

Carrizo-Wilcox Aquifer Collaboration in Louisiana”

Marcellus Shale Summit

October 11, 2010

Jim Welsh --- Louisiana Commissioner of Conservation

Gary Hanson --- Louisiana State University – Shreveport,

Red River Watershed Management Institute

Mike Mathis --- Chesapeake Energy Corporation,

Water Planning Manager

LOUISIANAHAYNESVILLE SHALE

OVERVIEW

1

2

Shale Gas Plays, Lower 48 States

Source: Energy Information Administration based on data from various published studies

Updated: May 28, 2009

3

Current Haynesville Shale Activity

4

Generalized Lithostratigraphic ColumnNorthwest Louisiana Haynesville Shale Area

Data compiled from various sources by Office of Conservation Geological Division

Oct. 2010

5

Current Haynesville Shale Activity in LA

6

Estimated Ultimate Recovery in Tcf

(Tcf = Trillion cubic feet)

Data compiled from various sources by Office of Conservation Engineering Division

2008

7

Aquifers of Northwest Louisiana

8

Ground Water Use Advisory

9

Directive Issued to Industry for Frac Water Reporting

Due to revisions of the WH-1 form, water source and associated volumes are now reported on page 3.

Reported Usage from 10/1/2009 to 8/25/2010

Water Usage Data for 494 Haynesville Shale Natural Gas Wells

Water Stats

Source Volume (Gallons)

Frac Groundwater 275,151,196

Frac Surface Water 1,853,007,067

Drilling Rig Groundwater Supply 223,467,598

Drilling Rig Surface Water Supply 29,078,243

Other Groundwater 4,033,153

Other Surface Water 10,001,189

Frac Stages 4,801

Total Frac Water Used (gallons) 2,123,158,263

Volume per Frac Stage(gallons) 442,232

Average Frac Stages per Well 9.7

Average Water Use per Well 4,828,464

Average Frac Water Use per Well 4,297,891

Frac Supply Ground Water11%

Rig Supply Ground Water10%

Other Ground Water<0.5%

Frac Supply Surface Water78%

Rig Supply Surface Water1%

Other Surface Water<0.5%

Haynesville Shale Natural Gas Well Development

Drilling and Stimulation Operations

10

11

Red River & Toledo Bend Yield Capacity

Source: Jim Pratt, Executive Director – Sabine River Authority

Jamie Triplett, Hydraulic Eng. – US Army Corps of Eng.

Red River & Toledo Bend Yield Capacity vs. Projected Surface Water Usage at 70 % Level

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

0

50

100

150

200

250

300

350

Water Usage Toledo Bend Red River

Bill

ion

Ga

llon

s o

f W

ate

r

CONCLUSION

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http://dnr.louisiana.gov/haynesvilleshale/

MarcellusShaleSummit.ppsx