Natural gas. A better energy future for Michigan.

Michigan Oil & Gas Producers Education Foundation 1

Overview Why natural gas Job and economic impact for Michigan Hydraulic fracturing Discussion

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Why Natural Gas?

Abundant, Clean and Affordable

Michigan’s Own

Jobs and Economic Recovery

Electricity Generation

Jobs and Economic Recovery

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How We Use Natural Gas

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Did you know…80% of Michigan

homeowners use natural gas to

heat their homes

Michigan Jobs

$2.6 BILLION

Total Labor Income

$5.7 BILLION

Value-Added Economic Output

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Natural Gas and Oil Production

Employment in Michigan

Source: MOGA, ANGA, API

Energizing Michigan’s economy

$100 million+ in 2012 in state royalty, fee, and tax revenues

More than $150 million in income to 8,000 private Michigan landowners annually

$1.25 billion to state lands, parks, outdoor recreation since1927

$1.8 billion annual MI labor impact $3 billion overall to Michigan’s economy

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Source: MOGA, API (Pricewaterhousecoopers, 2011)

Hydraulic fracturing

What it is.What it is not.

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Michigan’s approach Proven

Nearly 60 years of experience 12,000 wells in Michigan

Safe Water resources protected No incidences of harm

Regulated State and federal compliance Role model

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What is shale gas? Locked in deep, dense rock formations

called shale

Vital to our energy needs, self reliance, maintaining affordability

Marcellus, Antrim, Collingwood, Utica, Bakken

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Main area of shale gas production

Typical Vertical

Well

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Fracturing at Work

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Groundwater Protection

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Horizontal Drilling:A Better Way for Deep Shale Gas Development Smaller surface impact

Fewer wells, more clean energy

Less waste

Fewer air emissions

Necessary to produce the energy we need, affordably, responsibly, safely

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Typical Horizonta

l Well

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Water Use

Michigan vertical well: approx. 50,000 gallons

Restaurant aquarium

Michigan horizontal well: up to 5 million gallons

Irrigating 8 acres of corn in season

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Industry and Regulatory Oversight MI DEQ Supervisor or Wells Instruction 1-2011

US EPA

Model Regulatory Framework

Groundwater Protection Council

Interstate Oil and Gas Compact Commission

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Michigan Disclosure Requirements Regular and ongoing monitoring, reporting

Disclosure and record-keeping on larger-volume hydraulic fracturing activities DEQ website, frack job site, local emergency

responders Includes chemicals

Michigan DEQ on site for well construction, fracturing, waste fluid disposal

For national regulations, visit www.FracFocus.org

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Thank you!