Collaborative Efforts in Environmental Sustainability by Industry Leaders

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Widener University School of Law's initiative, Social License to Operate, involves standards, validation, and collaboration among key organizations in promoting environmental stewardship. Founding members include Chevron, Heinz Endowments, Clean Air Task Force, and others. The Board of Directors comprises distinguished individuals from various sectors. Efforts such as the U.S. Secretary of Energy's Advisory Board's work on shale gas production reflect a commitment to continuous improvement and stakeholder engagement. The National Petroleum Council advocates for prudent development of natural gas and oil resources through industry-led councils. Collaboration among industry, government, NGOs, and academics is prioritized for effective environmental practices.

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SOCIAL LICENSE TO OPERATE: Standards, Validation, Collaboration Widener University School of Law Andrew G. Place Interim Executive Director September 27, 2013

ENGAGEMENT 2

Founding Members Chevron Heinz Endowments Clean Air Task Force Citizens for Pennsylvania s Future (PennFuture) CONSOL Energy Pennsylvania Environmental Council Environmental Defense Fund EQT Corporation Shell Group Against Smog and Pollution (GASP) William Penn Foundation 3

Board of Directors Armond Cohen, Executive Director, Clean Air Task Force Nigel Hearne, President, Chevron Appalachia Jared Cohon (Chair), President Emeritus of Carnegie Mellon University Paul O Neill, former Secretary of the U.S. Treasury Department and former CEO of Alcoa Nicholas Deluliis, President of CONSOL Energy David Porges, President and CEO of EQT Corporation Paul Goodfellow, Vice President, U.S. Unconventionals, Shell Robert Vagt, President, The Heinz Endowments Paul King, President, Pennsylvania Environmental Council Christine Todd Whitman, former Administrator of the U.S. Environmental Protection Agency and former Governor of New Jersey Fred Krupp, President, Environmental Defense Fund Jane Long, Principal Associate Director/Fellow, Lawrence Livermore National Laboratory (retired) 4

CORRELATIVE WORK 5

U.S. Secretary of Energys Advisory Board, Shale Gas Production Subcommittee for industry to increase their best practices process for field engineering and environmental control activities by adopting the objective of continuous improvement, validated by measurement and disclosure of key operating metrics Best practices involves the entire range of shale gas operations understand the importance of involving non-industry stakeholders Source: SEAB Shale Gas Production Subcommittee Final Report (November 2011) 6

National Petroleum Council prudent development of North American natural gas and oil resources means development, operations, and delivery systems that achieve a broadly acceptable balance of several factors: economic growth, environmental stewardship and sustainability the NPC recommends the establishment of industry-led, regionally based, councils of excellence for identification and dissemination of effective environment, health, and safety practices for natural gas and oil production and delivery. The intention is to involve industry, government, academics, nongovernmental organizations (NGOs), and other stakeholders include operational risk management approaches, better environmental management techniques, and methods for measuring environmental performance. Source: National Petroleum Council, Prudent Development (September 2011) 7

IEA: Golden Rules for a Golden Age of Gas Measure, disclose and engage Watch where you drill Isolate wells and prevent leaks Treat water responsibly Eliminate venting, minimize flaring and other emissions Be ready to think big Ensure a consistently high level of environmental performance Source: Golden Rules for a Golden Age of Gas (IEA, 2012) 8

CONTEXT 9

Working group (2011) Defined scope Conceptually aligned Constrained group size Standards & Certification Derivative from existing body of work Third-party, independent certification Basin specific Regionally Bound Standards process model Balance Collaboration Verifiability 10

STANDARDS & EVALUATION 11

Groundwater Protection Standards Zero discharge of wastewater until adoption of a treatment standard. Groundwater monitoring pre and post operation. Wastewater recycling > 90%. Casing and cement standards. Disclosure of well stimulation fluids. Closed loop containment of drilling fluids. Well pad design minimizing risk to water sources. Double-lined impoundments with leak detection. Spill response and public notification plans. Pad specific Area of Review and risk analysis. 12

Regional Air and GHG Standards Removal of hydrocarbons from flowback and produced water before storage. Reduced Emissions Completions with exceptions. Flaring requirements 98% destruction efficiency. Emissions standards for: diesel drilling rig engines frac pump engines compressor engines on-road truck engines Condensate tank emissions control. Reciprocating compressor and pneumatic controller emissions reductions. 13