TREATMENT OF HYDROCARBON-CONTAMINATED SOIL

& RECYCLING

OF SOLID DRILLING WASTE

Agenda•Boldwater Introduction

o Our Mission

o Environmental Awareness

o The Boldwater Difference

o Our Approach

•Boldwater’s Onsite Services

o Spill or Leak Treatment / Remediation

o Solid Drilling Waste Treatment

o Solid Drilling Waste Recycling

•Case Study

• Summary

Our Mission: Solutions that Deliver Both Environmental & Cost Benefits Industry-Relevant Solutions

• To deliver superior alternatives and customer satisfaction through the development and implementation of customized oil & gas waste treatment solutions across a range of industry needs

• Demonstrate 100% project success and to expand applications for these all-natural and environmentally-friendly processes

• Implement a full line of eco friendly field services for both ex-situ and in-situ type remediation applications maximizing customer value associated with our bio-based solutions

Dependable Results

• All treatment and recycling processes are performed with the highest level of integrity and environmental controls that exceed all commercial and regulatory requirements

Cost-Saving Opportunities

• Projects are designed and executed to meet financial expectations and provide a lower cost when compared to alternative waste-handling practices

Eco-Friendly Method & Results

• Only naturally-occurring microbial based materials are utilized in the treatment

• No hazardous or undesired by-products are used or generated

• We perform all work at the job site and eliminate heavy-haul trucks

• We eliminate volatile organic compounds (VOC’s) at job site

• Leachable TPH is rapidly reduced to trace amounts of CO & H2O

• No hazardous chemicals, combustion processes or dangerous processes are used

• We treat any hydrocarbon-contaminated soil with natural specially selected

microorganisms and co-factors

• We optimize the microbial activities resulting in very rapid and complete results

• Treated and remediated soil from any spills or leaks can be replaced or repurposed

• Only by-products from hydrocarbon decay are trace amounts of CO & H20

The Boldwater Difference

Engineered Solutions Delivered to Your Operating Site

• Every project is uniquely designed and optimized allowing us to accurately plan the project variables to achieve the desired results and value

• Experienced personnel work with you to ensure all physical, legal and financial goals are realized

• We remain flexible and can shift effort & focus as the project unfolds to maximize value impact during each stage

Rapid Results

• Our patented processes work rapidly compared to the time required by comparable remediation

• Aromatic compounds and VOC’s are eliminated within minutes

• Long-chain hydrocarbons reduced in hours

Integrity

• Our professionals have more than 50 years of experience in the O&G industry

• We pledge transparency to our clients over the life of every project

Our Approach…

Every Project Situation is viewed to be Unique

• Waste Treatment programs are customized to meet project needs based on:

o Volume of solid waste material

o Percentages of hydrocarbon contamination

o Characterization of the hydrocarbons and soil

o Timeline available / targeted for completion

o Surrounding area… concerns and controls

o Accessibility to the material and available space for work activity

Success is the Only Option… Every Time

• Expectations vs reality… we are flexible and optimize changes for best results

• We will balance the necessities of our clients, the safety of all personnel, and the

adherence to required regulatory standards

• Boldwater has achieved 100% success in every project

Onsite Spill & Leak Treatment / RemediationOperational Assessments – Monthly and Quarterly

• Let us be your resource to help manage your assets and related regulatory challenges

• We train and assist your personnel for minor spills

• We equip your Operations with “Spill Response Packages” to manage routine activities

• Eliminate contamination around pipelines, processing plants, compressors, pump stations, and storage

Treatment of Hydrocarbon-Contaminated Soils

• We mobilize quickly to implement plans for large spills or leaks

• Lab-verified contaminate-free soil can then be re-placed or re-purposed

• Rapid results will allow you to quickly return the area to its native condition

• We work with you directly or as part of first responders / rapid action companies

Remediation for all NGL’s, Crude Oil, and Refined Products

• Our treatment solution works throughout the entire chain of hydrocarbons including crude oil, condensates and NGL’s, and refined products

Customized Packages Fit Your Needs

Boldwater’s Spill Management Approach

1. Monthly and/or quarterly assessments and planning:

• Operations Reviews – we work with your field operations to evaluate status and determine needs

• Site Visits – we visit review locations as necessary for action and/or inspection

• Reports – we provide you with a comprehensive reports with pertinent information, activities and recommendations going forward

2. Spill Response

• We remain on-call and can mobilize for larger spill or leak events

3. Fast-Action Spill Packs

• We provide materials, resources and training for your personnel to quickly initiate a response for any spill or leak

Onsite Treatment & Recycling of Drilling Wastes

Qualified & Proven

• Boldwater is authorized through State Regulatory groups such as the Railroad Commission

of Texas (TRRC) for the treatment of hydrocarbon-contaminated soils and permitted specifically to recycle solid drilling wastes

• Through our patented treatment & recycling processes, drilling operators are able to cost-

effectively manage and treat all solid drilling wastes and hydrocarbon contaminated soils

to eliminate future environmental liabilities

• All spill & leak treatments are performed onsite eliminating the need for loading, haul off

and disposal fees for these contaminated wastes

• With Recycling, we provide high quality flex base which offsets other flex base purchases

• Our Treatment & Recycling process adds value across a spectrum:

• Drilling – Rapid treatment of waste as it discharges the rig or after drilling is completed

• Construction – Recycled material is high quality base for roads or operational pad sites

• Corporate / Environmental – Through recycling, environmental liabilities are eliminated

Working On-Site …Our Work Plans Are Designed For Efficiency & Value

• On-site Work Plans are flexible and place no restrictions on drilling activities

• Our work starts after your solid waste is separated from usable fluids via Solids Control

• We utilize open-top cuttings boxes for treatment of the contaminated drilling waste

• Treatment & Recycling are generally performed while drilling but can be handled

separately based on client preference

• Recycling steps are performed following the completion of the treatment phase

• The resulting Recycled Material:

o Tested by 3rd party labs to confirm all state and EPA regulatory requirements

o Is pre-approved for re-use in the construction of lease roads, county roads, production or drill pads

o Exceeds regulatory requirements for TxDOT Grade 2 flexible base

o Is a high quality that exceeds specifications of most native base materials

o Is an EPA recognized beneficial material which, when re-used, eliminates liabilities

Why Recycle Drilling Wastes?Diminish costs associated with current processes

• Eliminates loading, hauling and disposal expenses

• Eliminates need for reserve pits and other waste handling

• Reduces Company oversight and personnel requirements

• Reduces the damaging effects of heavy truck traffic on road conditions & air quality

Provides a returned resource value

• Creates high quality road base material for qualifying roads and drill pads

Reduces or eliminates Operators waste liabilities

• Beneficial re-use eliminates all long term environmental liabilities for the Operator

• Recycling process utilizes 3rd party labs to confirm results

Value Proposition

• Our on-site treatment provides a cost savings compared to alternative waste handling methods

• Recycled Material is high quality, strength-stabilized & replaces purchase of other base

• Operator can reduce financial reserves usually associated waste liabilities

Sample: Case Study Summary – TX, H&P Flex Rig

- Operator drilling: 10,385 ft Vertical plus 11,345 ft laterally

- Solids Control: Drying Shakers & Centrifuge

- Waste Cuttings: 60 yd3 Surface, 398 yd3 Production Section & 595 yd3 Centrifuge for total 1053 yd3 waste & 470 bbl associated OOC

- Job Actual Costs: $61,519 plus personnel ($58.43/yd3)

Recycled Material: 1990 yd3 x $25/yd3 = $49,758

Treating Cost: $11,761 or $23.49/yd3

- Test Results: Chloride 300 mg/L, TPH <5.00 mg/L, Benzene < 5.00 mg/L, pH 11.9

- Compressive Strength: 83 psiStarting material

composition

Road completed using

treated drilling waste

DRILLING MUD USED TO;

- LUBRICATE DRILL BIT

- STABILIZE WELL

- REMOVE DRILL CUTTINGS

DRILLING MUD CARRIES DRILL

CUTTINGS TO SURFACE @ ~30%

OIL ON CUTTINGS %

DRILL CUTTINGS ARE

TREATED TO REDUCE TPH

TREATED CUTTINGS ARE

MIXED WITH AGGREGATE &

PLACED IN HOLDING CELL

ELIMINATESENVIRONMENTAL

LIABILITY

Flow Diagram for On-site Treatment of Drilling Waste

Summary

• Boldwater is uniquely qualified for comprehensive eco–friendly treatment

of hydrocarbon-contaminated soils and recycling of solid drilling wastes

• Through our patented on-site treatment & recycling processes, clients are

able to cost-effectively manage and treat all contaminated soils & solid

drilling wastes

• We eliminate ongoing environmental liabilities associated with solid wastes

through our treatment and recycling programs

• Our all-natural processes produce very rapid and 100% proven results

• Boldwater is a reliable and vetted resource with experience, integrity, and

a verified history of 100% success