Consortium of Oil & Natural Gas Industry Leaders Form Committee to Address Water...

Wed Jul 16, 2008 6:44pm EDT

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Consortium of Oil & Natural Gas Industry Leaders Form Committee to Address Water Needs in Marcellus Shale

   Companies Recognize the Need for Enhanced Water Treatment and
Recycling Techniques
PITTSBURGH--(Business Wire)--
A consortium of energy companies active in the Appalachian Basin
have organized to form the Appalachian Shale Water Conservation and
Management Committee (ASWCMC). The founding members include: Anadarko
Petroleum, Cabot Oil & Gas, Chesapeake Energy, Chief Oil & Gas, EOG
Resources, Equitable Resources, J-W Operating, Marathon Oil
Corporation and Range Resources. The ASWCMC has joined with the Gas
Technology Institute (GTI), a leading research, development and
training organization, and selected Tom Hayes as the Managing Director
for the committee.

   The Marcellus Shale formation, one of several Appalachian
potential shale plays, is an emerging resource for natural gas in the
country with potential reserves estimated to be as high as 50-200
trillion cubic feet (Tcf). As the shale development continues and new
companies enter the Appalachian Basin, the companies participating in
the ASWCMC will likely increase.

   The mission of the ASWCMC is to develop best management practices
and technical solutions for shale developments in the Appalachian
Basin. The committee will work cooperatively with the appropriate
regulatory agencies to ensure that water resources are managed in an
efficient and environmentally responsible manner. Initial goals of the
ASWCMC will be to determine current and future water needs, water
quality specifications for drilling and hydraulic fracturing, and to
identify technologies that provide solutions for water management and
water conservation. "There are several water treatment and recycling
techniques, some of which are being tested in other shale fields. The
consortium has engaged GTI to help us identify the options available
and help us find the best techniques for use in Appalachia and the
Marcellus Shale development," said Len Paugh, Operations Manager with
Range Resources.

   Only around 200 wells have been drilled into the Marcellus Shale
in the Appalachian Basin, but the industry recognized the need to
responsibly manage water resources early. In April 2008, the ASWCMC
organizers submitted a cooperative government-industry research
proposal to the U.S. Department of Energy - National Energy Technology
Laboratory. "The proposed project would include funding for studies to
obtain water management information, to develop solutions to manage
water streams associated with energy development and methods that
minimize the demands on public water supplies," said Tom Hayes,
Managing Director of the ASWCMC. "We will pursue other opportunities
for research of industry pilot water treatment and recycling tests."

   ASWCMC is a consortium of energy companies focused on efficient
and responsible use of water in drilling, completion, and production
operations associated with shale development in the Appalachian

Chief Oil & Gas
Kristi Gittins, 214-402-8137

Copyright Business Wire 2008
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