Cost Analysis

Below is a summary of the costs associated with the current typical operations for the supply, handling, transportation and storage of water needed for drilling and Fracking operations, as well as the costs for the typical means used to provide well pad protection.

Assumptions:

Location Size: 300' X 600'
Above ground temporary protection: 30 Mil HDPE with Felt Base
Fresh Water Requirement: 5.7 Million Gallons Per Well
Truck Capacity: 160 Barrels (6,720 Gallons)
Trucking Cost: $200/truck
Fresh water Cost: $0.35/barrel ($.0083/Gallon)
Liner Cost: $1.00/Sq. Ft Installed
Felt Cost: $0.50/Sq. Ft Installed
Six (6) wells per pad.
5,089 truckloads of water required to drill and Frack six (6) wells on a single pad.

The following table illustrates assumed costs currently being incurred using traditional methods for containment and fresh water usage (based on 6 wells per pad):

Estimated Site Development Costs using Current Technology (Based on 6 Wells Per Pad)
Water Delivery Cost:	5,089 trucks @ $200.00 ea. x 6 wells =	$1,017,800.00
Fresh Water Cost:	(5,7M gals @ $.0083 ea.) x 6 wells =	$283,860.00
Temporary plastic applied on the surface of the well pad:
	(90,000 SF @ $1.00/SF to drill each well) x 6 =	$540,000.00
	(90,000 SF @ $1.00/SF to frack each well) x 6 =	$540,000.00
Temporary felt applied under the plastic:
	(90,000 SF @ $0.50/SF to drill each well) x 6 =	$270,000.00
	(90,000 SF @ $0.50/SF to drill each well) x 6 =	$270,000.00
	Total =	$2,921,660.00*

* Total Cost is based on 6 wells per pad. The cost of water and delivery will increase with each additional well required. These figures DO NOT include the cost of on site or centralized impoundments and the associated piping to get water to the site which may be used to currently store fresh water. They also do not include the cost of removing the protective system.

This cost of $2,921,660.00 per pad is based on six (6) wells drilled and Fracked per pad. If the number of wells per pad increases, the cost for the water and the delivery of the water will also increase accordingly.

The cost of the D.A. Nolt, Inc. of PA Containment and Water Management System ("CWMS") is approximately between $4.00 and $5.00 per SF or for a 300’ X 600’ well pad site, $720,000.00 to $900,000.00 (plus drainage stone and some additional trucking costs are not included). Although some trucking of fresh water will be required with the initial implementation of the D.A. Nolt, Inc. of PA CWMS, once multiple underground CWMS’s are installed there will be additional cost savings to the drilling and energy companies, but more importantly, there will be a huge reduction to the impact on the roads and the environment. Although it is difficult to put an exact cost figure to these items, the savings and benefits are significant.

Savings Using the D. A. Nolt, Inc. of PA Well Pad Containment & Water Management System (CWMS) for a Six (6) Well Pad Site
CWMS Cost Per Pad Site is Approximately $4.00 to $5.00 per sq. ft. for a 300' x 600' site.

Well Pad Site (At High End $5.00 / sq. ft)	$900,000.00*
Well Pad Site Using Current Technology	$2,921,660
Savings	$2,021,660.00

* Cost does not include some trucking costs nor added site work & drainage stone required with the initial implementation of system. Projected savings are based on high end of cost range $5.00.

D.A. Nolt, Inc. of PA Containment and Water Management System ("CWMS") is a permanent containment system with total one time approximate cost of $720,000.00 to $900,000.00.

This system is in compliance with ACT 13 when installed as a complete system (see letter for the Department of Environmental Protection.

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