The Greater Cumberland Committee Presentation

Introduction to Introduction to Marcellus Shale Natural Marcellus Shale Natural Gas DevelopmentGas DevelopmentPrepared for The Greater Cumberland Prepared for The Greater Cumberland CommitteeCommittee

Date:11/03/2011Date:11/03/2011

Speaker - Tejas Gosai, TheMarcellusShale.comSpeaker - Tejas Gosai, TheMarcellusShale.com

ShaleShaleShale is a sedimentary rock Shale is a sedimentary rock commonly deposited in deep commonly deposited in deep ocean water.ocean water.

very fine particles of mud, very fine particles of mud, compressed to form shale rock. compressed to form shale rock. Shale is Shale is ““tight,tight,”” meaning that meaning that the grains are interlocking and the grains are interlocking and hard to pass liquids or gas hard to pass liquids or gas throughthrough

Marcellus Shale contains dead Marcellus Shale contains dead organics, which were compressed organics, which were compressed and cooked over time to form and cooked over time to form natural gas, which is mostly natural gas, which is mostly methane methane

Shale PlaysShale Plays

American Energy American Energy ResourcesResources

BarnettBarnett

Eagle FordEagle Ford

HaynesvillHaynesvillee

BakkenBakken

Marcellus Marcellus

UticaUtica

ScopeScope

Increase in gas estimatesIncrease in gas estimates

EconomicsEconomics

TechnologyTechnology

InfrastructureInfrastructure

KnowledgeKnowledge

ProcessProcess

Increase in gas estimatesIncrease in gas estimates

EconomicsEconomics

TechnologyTechnology

InfrastructureInfrastructure

KnowledgeKnowledge

Industry EffectsIndustry Effects

Oil and Gas BusinessOil and Gas Business

Job CreationJob Creation

Economic BoomEconomic Boom

Ancillary Businesses Ancillary Businesses

Political ClimatePolitical Climate

Miscellaneous Miscellaneous ConcernsConcerns

The report shows that in the 12 months ending in March, job growth in the United States was 1.3 percent and in Pennsylvania 1.2 percent. But, Butler County saw job growth of 4.2 percent, placing it sixth in the country.

Hot Button IssuesHot Button Issues

Land Owner RightsLand Owner Rights

Environmental ConcernsEnvironmental Concerns

Water ImpactWater Impact

Legal concerns - forced pooling, etc. Legal concerns - forced pooling, etc.

TaxTax

RegulationRegulation

Local, State and Federal ConcernsLocal, State and Federal Concerns

Myth V. FactMyth V. Fact

TGCCTGCCMaryland, Allegany and Garrett

West Virginia, Mineral

Pennsylvania, Somerset and Bedford

SWOT - Strengths, Weaknesses, SWOT - Strengths, Weaknesses, Opportunities, ThreatsOpportunities, Threats