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SHELL’S APPROACH TO SITE RESTORATION

Presentation to the Pennsylvania Department of Conservation of Natural Resources

Natural Gas Advisory Committee

Kim Kaal and Jim Sewell Shell Environmental and Regulatory

1 July 2014

Use this area for cover image (height 6.5cm, width 8cm)

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AGENDA

1. Integrated Vegetation Management Guideline Development and Background

2. Methodology and Contents

3. Other Elements of Importance

4. Questions and Answers

5. Summary

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Integrated Vegetation Management Guideline Development and Background

SECTION ONE 1.0

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GUIDELINE DEVELOPMENT AND BACKGROUND

Primary drivers for guideline development:

Shell’s Onshore Tight Sand/Shale Oil & Gas Operating Principles

Comply with requirements established by the Shell July 2012 Final Phase 3 Impact Assessment

Developed the plan using learnings from other assets

The guideline provides information detailing land stewardship practices for re-establishing vegetation that is compatible with post-activity land use and that compliments the surrounding vegetative community.

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SHELL UPSTREAM AMERICAS

Brazil - BC-10

Pinedale

GoM Perdido

AOSP Tight & Shale Gas Heavy Oil

GoM - Production & Exploration

Aera Eagleford

Tight & Shale Gas

Traditional Oil & Gas

Unconventional/Heavy Oil

Exploration & Acreage

Focus Basins

Wind Power

Appalachia

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SITE RESTORATION PROGRAM OBJECTIVES

Shell’s long term habitat and landscape restoration goals for the Shell Appalachia Areas of Operation are as follows:

1. Minimize the construction footprint by leaving a location in the same or better environmental condition than when activity started

2. Re-establish vegetation that is compatible with post-activity land use that compliments the surrounding vegetative community;

3. Provide for a viable and functioning ecological community for all Shell restoration sites

6 July 2014

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GUIDELINE DEVELOPMENT AND BACKGROUND

Technical elements include:

Soil conservation

Erosion and sediment control

Reclamation practices

Soil testing

Seed species selection, handling and quality control

Revegetation techniques

Weed management

Final restoration objectives

Footprint monitoring

Guideline developed in 2012 and completed in 2013

Utilized internal specialists and consultants to gather all known public information on site restoration

7 July 2014

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Methodology and Contents

SECTION TWO 2.0

8 July 2014

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METHODOLOGY FOR GUIDELINE DEVELOPMENT

Shell’s leasehold covers a broad area across Pennsylvania

There are four distinct areas:

Tioga County

Northwest PA (ANF)

Slippery Rock

Black Lagoon

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FOUR PHASES OF DEVELOPMENT

Stabilized Disturbed Areas

Permitted Limit Of Disturbance (ESCGP-2)

Final Site Restoration

Area Disturbed During Construction

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CONTENTS OF GUIDELINE

What does the guideline contain?

Part One – Introduction

Restoration goals and objectives for Shell Appalachia areas of operation

Part Two – Shell Appalachia areas of operation

Location description

Topography

Soil types

Ve getation types

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GUIDELINE CONTENTS, CONTINUED

Part Three – Restoration Plan

Restoration methodologies and specifications (subsections)

Substrate nutrient testing

Substrate compaction

Topsoil handling

Seed selection

Seeding timing

Seeding methods

Seed delivery, storage and handling

Seed selection in forest and wetland restoration areas

Mulching

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GUIDELINE CONTENTS, CONTINUED

Part Four – Invasive Weed Species Management

Inventory of invasive, introduced, and noxious weed species by development area

Identification and planning

Eradication and control

Part Five – Best Management Practices

Part Six – Monitoring and Reporting

Construction and bidding specifications

Success criteria

Monitoring

Impact assessment and restoration tracking tool

Part Seven - References

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Other Elements of Importance

SECTION THREE 3.0

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OTHER IMPORTANT PLAN CONTENTS (APPENDICES)

Description of the impact assessment site selection and screening process

Current practices on construction, interim and final restoration

Typical sequence in reduction of the construction interim and final restoration (e.g. four stages)

Recommended seed mixes and seeding rates

Seeding detail

PA DCNR list of invasive plants

DCNR fact sheets for invasive species present in Pennsylvania

Erosion and sediment control inspection form

Annual monitoring form

Vegetation restoration tracking tool

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Q & A

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SUMMARY

Through this guideline, Shell is able to pull together information sources including

DCNR, USDA, NRCS, USFS, Penn State, county conservation districts, and independent sources

in order to create an easy-to-understand guideline for planners and field personnel to use

The guideline is proactive and voluntary

It contains general information and information relative to the areas where Shell operates

Shell has performed an inventory and photo log of all sites

Shell also measures and monitors its footprint

Shell also integrates footprint monitoring into their own web application

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FINALLY...

Shell desires to balance development with land conservation practices through innovative and thoughtful approaches; building upon what we have learned in other assets

18 July 2014