BA ARNE ETT SH HALE HY YDRA AULIC C FRA CTUR RING

FACTSHEET

M A Y 2 0 12

Hydr raulic fracturin ng, commonly y referred to as a fracing, is a prove en technologic cal advanceme ent which allo ows producers s to sa afely recover natural gas and oil from m deep shale e forma ations. This discovery d has the potential to not only y dram matically reduc ce our relianc ce on foreign fuel imports, , but a also to do so in an econom mically and en nvironmentally y respo onsible manner. Simply put, deep shale natural n gas and d oil de evelopment is critical to Am mericas energy y needs and its s econo omic renewal. . Expe erts have kno own for years s that natural gas and oil l deposits existed in deep shale for rmations, but until recently y vast quantities of natural gas and oil in the ese formations s the v were not thought to t be recovera able. Today, th hrough the use e ydraulic fractu uring and soph histicated horizontal drilling g of hy techn niques, extraor rdinary amoun nts of natural gas g and oil are e being g safely produc ced from deep p shale formati ions across the e count try. Hydr raulic fracturin ng has been used by the indu ustry since the e 1940s and has beco ome a key ele ement of natur ral gas and oil l lopment worl ldwide. In fac ct, this proce ess is used in n devel nearly y all natural ga as wells drilled d in the United d States today. . Prope erly conducted d, modern fra acing is a highl ly engineered, , contr rolled, sophisti icated and safe procedure.

Hydraulic frac cturing is essen ntial for the production of naturalgasan ndoilfromshaleformations. Barnett fracin ng fluids are co omprised of ap pproximately 99% water and sand and are e handled in se elfcontained systems. Freshwateraq quifersareprot tectedbymult tiplelayersof protective ste eel casing surro ounded by cem ment. This is administereda andenforcedu understatereg gulations. atural gas and d oil formations exist many Deep shale na thousandsoff feetundergrou und.

KEYPOI INTS

draulic Frac cturing Proc cess Hyd Hydr raulic fracturi ing is the pro ocess of creating fissures, or fractu tures, in unde erground form mations to allo ow natural ga as and oil to flow. I In the Barnett t Shale, Chesa apeake Energy poration pump ps water, sand d and other a additives under Corp high pressure into o the formatio on to create fractures. The fluid is approxima ately 99% wa ater and sand, along with a small l amount of f special-purp pose additives s. The newly y creat ted fractures are propped d open by th he sand, which h allow ws the natura al gas to flow w into the we ellbore and be colle ected at the s surface. Norm mally a hydra aulic fracturing g oper ration is only p performed on nce during the e life of a well l. Varia ables such as s surrounding ro ock formations and thicknes ss of th he targeted sh hale formatio on are studied d by scientist ts befor re hydraulic f fracturing is conducted. T The result is a highl ly sophisticate ed process tha at optimizes th the network of o fractu tures and keeps them sa afely containe ed within the boun ndaries of the d deep shale nat tural gas forma ation. Frac cing Fluid M Makeup In ad ddition to wat ter and sand, other additiv ves are used to o allow w hydraulic fr racturing to b be performed in a safe and d effec ctive manner. Additives use ed in fracing f fluids include a numb mber of com mpounds foun nd in comm mon consumer prod ducts.

ChesapeakesBarnettShaleOperations

201 12Chesapeake e

Page1of3

Barne ettShaleHydr raulicFracturin ng

May2012

Water and d Sand: ~99% %

Other: ~1% % Ac cid An nti-bacterial A Agent Br reaker Co orrosion Inhib bitor Friction Reduce er Ge elling Agent Iro on Control Sc cale Inhibitor

mple of Typi ical Barnett Shale Fracin ng Fluid Mak keup Exam A representatio on showing th he percent by volume v of typ pical Barnett Sh hale fracing flu uid componen nts (see graphic) r reveals that approximately 99% 9 of the fra acing fluid is comprised of w water and sand d. Visit fracfoc cus.org for th he a additive quanti ities used to hydraulically fr racture Chesap peake and othe er industry we ells. This fluid d is injected int to t the deep shale natural gas for rmation and is s typically conf fined by many y thousands of f feet of rock la ayers.
Pro oduct Water r and Sand: ~99 9% W Water S Sand (Pro oppant) Expa ands the fracture e and deliv vers sand Allow ws the fractures to t remain open n so the natural gas g can escape Helps dissolve miner rals and ate cracks in the rock initia inates bacteria in the Elimi wate er that produces corrosive by-pr roducts Allow ws a delayed brea akdown of the gel g ome stays in the formation, while e the remainder returns So with natural forma ation water as pr roduced water (a actual am mounts returned vary from well to o well) St tays in the forma ation, embedded in the fractures s (used to "prop" fractures op pen) La andscaping and m manufacturing Dr rinking water filtration, play sa and, concrete an nd brick mortar Purpose Downhole R Result Other Common Uses*

Other Additives: ~1% A Acid Anti-b bacterial Ag gent Re eacts with the minerals present iin the formation to create sa alts, water and ca arbon dioxide (ne eutralized) Re eacts with micro-organisms that may be present in the tre eatment fluid and formation; the ese micro-organis sms break do own the product with a small amo ount returning to o the su urface in the prod duced water Re eacts with the crosslinker and ge el once in the for rmation making it easier fo or the fluid to flow w to the borehol le; this reaction produces s ammonia and s sulfate salts, whi ich are returned to the surface in the prod duced water Bo onds to metal su urfaces, such as pipe, downhole; any remaining product t that is not bond ded is broken do own by micro-organisms and a consumed o r returned to the e surface in the produced wate er Re emains in the for rmation where te emperature and exposure to the breaker allo ows it to be broke en down and con nsumed by na aturally occurring g micro-organism ms; a small amou unt returns to the surface with h the produced w water Co ombines with the e breaker in the f formation, makin ng it easier for the fluid to flow w to the borehole e and return to th he surface in produced water r Re eacts with miner rals in the format tion to create sim mple salts, ca arbon dioxide and d water, all of wh hich are returned d in pr roduced water At ttaches to the for rmation downho ole with the majo ority of pr roduct returns to o the surface with h the produced w water, wh hile the remainin ng reacts with miicro-organisms that break do own and consum me it Sw wimming pool ch hemicals and cleaners Di isinfectant; sterilizer for m medical and denta al equipment Ha air colorings, as a disinfectant an nd in the manufa acture of co ommon househo old plastics Ph harmaceuticals, acrylic fibers an nd plastics Co osmetics including hair, makeup p, nail and skin p products Co osmetics, baked goods, ice cr ream, toothpaste es, sauces an nd salad dressings Fo ood additives; food and be everages; lemon juice Ho ousehold cleans sers, de-icers, pa aints and caulks

Bre eaker

Corrosion hibitor Inh Fri iction Red ducer

ents corrosion of f the pipe Preve

Slicks the water to minimize frictio on Thick kens the water in n order to susp pend the sand Preve ents precipitation of metal in the pipe Preve ents scale depos sits down nhole and in surf face equipment

Gellin ng Agent

Iron Control

Scale Inh hibitor

*Othe er common uses of o the product may y not be in the sam me quantity or con ncentration.

201 12Chesapeake e

Page2of3

Barne ettShaleHydr raulicFracturin ng

May2012

Hyd draulic Fract turing and Groundwate G er Prot tection Unlik ke shallow nat tural gas and oil o projects, su uch as shallow w coalb bed methane (CBM), ( the producible p por rtions of deep p shale natural gas an nd oil formatio ons exist many y thousands of f feet b below the surf face. The Barn nett Shale is fo ound at depths s rangin ng from 6,500 0 to 8,500 feet underground d. The average e depth h of a Chesape eake natural gas well in the Barnett B Shale is s more e than 7,200 feet. Chesape eake does not t conduct any y produ uction or hydraulic h frac cturing activit ties in fresh h groun ndwater aquif fers. In fact, across a Chesape eakes Barnett t Shale operations, groundwater g aquifers a are se eparated from m produ ucing natural gas g and oil form mations by tho ousands of feet t and th he immense weight w of tons of o protective ro ock barriers. State natural gas and oil regul latory program ms also place e great t emphasis on n protecting groundwater. g Current well l const truction requ uirements con nsist of instal lling multiple e layers s of protective e steel casing surrounded by b cement that t is spe ecifically desig gned and installed to prote ect freshwater r aquife fers.

The measures req quired by state e regulatory a agencies in the explo oration and pr roduction of d deep shale natu ural gas and oi il form mations have b been very effe ective in prote ecting drinking g wate er aquifers from m contaminat tion attributab ble to hydraulic fractu turing operatio ons. Based on n reviews of st tate natural ga as and o oil agencies, t there has not been a docum mented case of o drink king water aq quifer contam mination related to hydraulic fractu turing of a deep shale natura al gas or oil we ell. Furth hermore, the Ground Wate er Protection Council issued d a re eport in Apr ril 2009 stati ing that the potential for hydr raulic fracturin ng in deep shal le natural gas a and oil wells to o impa act groundwat ter is extreme ely remote, as s low as one in n 200 m million. Info ormation So ources Dr. Mich hael Economid des Ground W Water Protect tion Council United St tates Departm ment of Energy y Abo out Chesape eake Ches sapeake Ener rgy Corporat tion is the second-larges st prod ducer of natu ural gas, a To op 15 produc cer of oil and d natur ral gas liquids s and the most t active driller r of new well ls in t the U.S. He eadquartered in Oklahom ma City, the comp pany's operat tions are foc cused on dis scovering and d deve eloping unconv ventional natu ural gas and oil l fields onshore in th he U.S. Che esapeake own ns leading po ositions in the Barn nett, Haynesvil lle, Bossier and Marcellus na atural gas shale plays s and in the e Granite W Wash, Clevelan nd, Tonkawa a, Missiissippi Lime e, Bone Spr ring, Avalon n, Wolfcamp p, fberry, Eagle Ford, Niobrar Wolf ra, Three Fork ks/Bakken and d Utica a unconventio onal liquids pl lays. The com mpany has also o vertiically integrat ted its operat tions and ow wns substantia al mids stream, com mpression, dr rilling, truck king, pressure pump mping and ot ther oilfield service asset ts. For more infor rmation on C Chesapeake en nvironment in nitiatives, visi it the environm ment sect tion of CHK.com m, Hydr raulicFracturin ng.com, N NaturalGasAirE Emssions.com m, Natu uralGasWaterU Usage.com, AskChesape eake.com or FracF Focus.com.

No ottoscale

Approximately A 7,200 feet deep

201 12Chesapeake e

Page3of3