TM FiltrationA leader in

Gas Filtration Technologywww.tmfiltration.com

1432 Walnut Street, Erie, PA 16502 email: ED_Barthelmes@tmfiltration.com

COALESCING FILTERSfor the

Shale Gas Processing IndustryED Barthelmes

Who is TM FILTRATION ?TM Filtration is a division of TM Industrial

Supply, a provider of Custom Engineered Filtration Solutions.

Over 35 years experience supplying filtration products to the world’s largest fluid treatment and engineering companies.

17 Patents in the US and Foreign Countries

TM Products can be found in 78 countries and 6 continents

Statement of ProblemShale Gas is “Wetter” than conventional Natural

Gas

Conventional Coalescing filters have high probability of contaminate carryover

Contaminate Carryover causes:* Damage to downstream components = added expense* Shut in situations = reduce revenue

FLOW INSIDE TO OUT

REQUIRES UPSTREAM PRE-FILTER to ELIMINATE SLUGS & GROSS

CONTAMINATE

LIQUIDS COALESCE ON OUTLET SURACE OF ELEMENT

FILTERED GAS FLOW EXPOSED TO CONTAMINATE = Source for

CARRYOVER

NGL CARRY OVER COMMON

FLOW OUTSIDE TO IN

POLYPROPYLENE MEMBRANEBARRIER ISOLATES

CONTANINATE FROM GAS FLOW

LIQUIDS COALESCE ON INNER SURFACE OF ELEMENT

NO UPSTREAM PRE-FILTER REQUIRED

FLOW ALLOWS FOR PLEATED ELEMENT AND LARGE

SURFACE AREA

COMPLETE NGL SEPARATION

TM’s “NEW FLOW” GFM TECHNOLOGY

Filter Design ComparisonTraditional Element Design GFM Technology Element Design

Flow Inside to Outside Flow Outside to Inside

GFM COALESCING FILTER DESIGN

FLOW PATTERN OUTSIDE OF ELEMENT , INWARD

1st Stage ELIMINATES LIQUID SLUGS AND GROSS

CONTAMINATES

2nd StageMIST EXTRACTION FOR SEPARATING

LIQUIDS OF MICRON SIZE THAT CREATE DROPLETS WHICH FALL OUT OF THE

FLOW STREAM DUE TO GRAVITY

3rd StageCOALESCING AND FINE PARTICULAE

FILTRATION WITH GFM TECHNOLOGY®

CLEANED GAS IS NOT IN CONTACT WITH COALESCED CONTAMINATE

TM’s INTEGRATED Multi Stage Filtration

2nd Stage-Mist Separator

3rd Stage- Coalescing Filter element

1st Stage- Centrifugal Separator

OPERATING COST PROJECTIONSCapital Equipment cost TM Filtration Competitor

Coalescing Filter $ 65,000 $ 65,000Pre-Filter 45,000Installation Cost 1,500 3,000

Total Equipment $ 65,000 $ 113,000

Element CostCost per element $ 625 $ 100Number of elements per unit 1 12

Operational Element Cost $ 625 $ 1,200

Element Change-out CostMaintenance Cost for change-out ($50/hr) $ 100 $ 200

Number of change-outs per year 2 6Total Annual MAINTENANCE cost $ 1450 $ 8,400

TOTAL 1st YEAR COST OF FILTRATION $ 66,450 $ 121,400

Totally Clean Partially Clean

TECHNOLOGY MATURITYPATENT Number 7,332,010

PROVEN SUCESSFUL SHALE GAS APPLICATION with Rice Energy/ Columbia Gas Transmission

Over 90 units in service on FUEL GAS

CONDITIONING and COAL BED METHANE Applications since 2002

THIRD PARTY VALIDATION by GANNON UNIVERSITY

MARKET OVERVIEWGFM Technology Positioned to meet Shale Gas

Application Requirements

Filtration Considered “Commodity” with short lead time

TM Filtration Reacting to Meet Market Demand

Manufacturing Units to have in Inventory for “OFF the Shelf” Delivery

TM’s VALUE PROPOSITION

• CLEANER GAS STREAMS

• HIGHER % NGL RECOVERY

• DECREASED TOTAL COST OF OPERATION

TM Filtration 1432 Walnut Street, Erie PA 16502 814-456-1448

www.tmfiltration.com