Allegheny County Council Meeting

April 23, 2014 December 22, 2011

Presentation Topics

Big Picture Local Activity Who We Are Our Operations Deer Lakes Lease Plans Water Management Safety and Environment Lease Discussion
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Marcellus Shale

Studies: Federal, State & Independent

What They Are Saying

We Produce more natural gas than ever before -- and nearly everyones energy bill is lower because of it. The natural gas boom has led to cleaner power and greater energy independence. We need to encourage that. We should strengthen our position as the top natural gas producer(It) not only can provide safe, cheap power, but it can also help reduce our carbon emissions.

- President Barack Obama

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Economic Impact
National Oil & gas activity increased disposable income by an avg. of $1,200 per U.S. Household in 2012 as savings from lower energy costs.(1) Pennsylvania 244,977: Total Marcellus Shale related Employment. (2) Avg. Salary $89,000, approximately $40,800 more than average wages(2) 500 Employees; Directly support about 5,000 total through subcontractors Range has consistently invested about $1 Billion dollars a year

1. 2.

IHS 9/13 PA Dept. of Labor & Industry

Taxes, Fees & Benefits

$640 million in Impact fees over the last three years More than $2.1 Billion in other taxes since 2008 Industry has spent more than $1 Billion on new roads & infrastructure - Range has spent $120 Million

Local Activity

Current Local Activity

Who We Are Regional Operations for 30 years $15 Billion Market Cap 343,000,000 mcfe in 2013 S&P 500 NYSE: RRC

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About Range Resources

2004 Pioneered and discovered the Marcellus Shale. 2007 Introduced Marcellus Shale Horizontal Drilling technology

2008 Began Operations in Cross Creek County Park

2009 Drilled the industrys first Utica/Point Pleasant horizontal well & Pioneered the Upper Devonian Shales with horizontal drilling. 2009 Pioneered large-scale water recycling in shale gas development, first company to achieve 100% reuse levels.

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About Range Resources

2010 First company to voluntarily disclose fracturing fluids; now a requirement 2010 Completed Yute Well in Frazer Twp. 2011 Implemented Closed-Loop Drilling technology 2012 Initiated a Zero Vapor Protocol for wet gas and super rich areas in Marcellus Shale 2013 Range's commercial fleet order of factory-engineered CNG vehicles is the largest single order for Chrysler and GM.

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Cross Creek County Park

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Our Operations - Permitting

25 PA Code CH. 16 (Water Quality Toxics Management Strategy) 25 PA Code CH. 78 (Oil and Gas Wells) 25 PA Code CH. 79 (Oil and Gas Conservation) 25 PA Code CH. 91 (General Provisions) 25 PA Code CH. 92 (National Pollutant Discharge Elimination System Permitting, Monitoring, and Compliance) 25 PA Code CH. 93 (Water Quality Standards) 25 PA Code CH. 94 (Municipal Waste load Management) 25 PA Code CH. 95 (Wastewater Treatment Requirements) 25 PA Code CH. 96 (Water Quality Standards Implementation) 25 PA Code CH. 102 (Erosion and Sediment Control) 25 PA Code CH. 105 (Dam Safety and Waterway Management)

Title 58 PA C.S. (Oil and Gas) (Act 13 of 2012)

PA One Call (Act 287) Pipeline Safety, Regulatory Certainty, and Job Creation Title 30 PA C.S. (Fish and Boat Code) Allegheny County Health Department Rules and Regulations Act of 2011
Article XXI, Air Pollution Control Act of Nov. 27, 2013, P.L. 1149, No. 104 Cl. 35 (Boiler and Unfired Pressure Vessel Law) (Senate Bill 802) Act of 1937, P.L. 1987, No.394 (Clean Streams Law) Act of Nov. 26, 1978, P.L. 1375, No. 325 (Dam Safety and Encroachments Act) Act of May. 13, 2011, P.L. 7, No. 2 (Coal and Gas Resource Coordination Act - Omnibus Amendments) CH. 11 PA Department of Labor and Industry (Employment of Minors) CH. 13 PA Department of Labor and Industry (Propane and Liquefied Petroleum Gas) Senate Bill 594
Draft Emergency Regulations (Act 9 of 2012) Act 67 of PA Municipalities Planning Code Act 68 of PA Municipalities Planning Code PA Air Emissions Program

Clean Water Act Oil Pollution Act Safe Drinking Water Act Resource Conservation and Recovery Act Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) Emergency Planning and Community Right-To-Know Act (EPCRA) Clean Air Act PA One Call (Act 287) Pipeline Safety, Regulatory Certainty, and Job Creation Act of 2011 Clean Water Act Oil Pollution Act Safe Drinking Water Act Resource Conservation and Recovery Act Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) Emergency Planning and Community Right-To-Know Act (EPCRA) Clean Air Act

25 PA Code CH. 106 (Floodplain Management Act)

25 PA Code CH. 110 (Water Resources Planning Act) 25 PA Code CH. 245 ( Administration of the Storage Tank and Spill Prevention Program)

25 PA Code CH. 287 (Residual Waste Management General Provisions)

25 PA Code CH. 299 (Storage and Transportation of Residual Waste) 58 PA Code Ch. 51 (Recreation Administrative Provisions) 67 PA Code CH. 189 (Hauling in Excess of Posted Weight Limit) 67 PA Code CH. 441 (Access To and Occupancy of Highways by Driveways and Local Roads) Title 27 PA C.S. CH. 31 (Act 220) Water Resources Planning

Pipeline Act (Act 127) Coal and Gas Resource Coordination Act (Act 214) The Oil and Gas Act (Act 223) Oil and Gas Conservation Law (Act 359)

The Solids Waste Management Act

CH. 49 of PA Vehicle Code (Size, Weight, and Load)

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Some Items Covered By Permitting

Water Management Wellbore Construction Erosion and Sedimentation Control Location Construction Road Use Waste Management Emergency Response Plan Preparedness, Prevention and Contingency Plan by County Spill Prevention Control and Countermeasures Air Quality

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Drilling

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Protecting the Groundwater

Arkansas, Pennsylvania Ohio, and Texas each of these states have enacted regulations to advance best practices for well integrity. - Environmental Defense Fund

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Drilling the Horizontal

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Completions

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Completions

Over 6,000 feet below our feet Sand props open paper-thin fractures Monitored and controlled from surface

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Fracturing Fluid
Friction Reducer

Bacteria Nutritional Supplement

Water 95%
Sand 4.76%

Naturally Occurring Bacteria Culture Scale Inhibitor

HCL Acid

Additives 0.24%

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Production

Bakerstown Road Location - Frazer Twp. Less than 1 mile from Deer Lakes Park

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Local Activity

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Deer Lakes Lease Plans

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Deer Lakes Lease Plans

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Surface Water Runoff

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Water Management, northeast Allegheny County

April 23, 2014 Peter Miller Water Resources Manager Southern Marcellus Shale Division

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Water Management- Sourcing

Surface 25%

Recycled 29%

100% recycle & reuse

Municipal 46%

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Water Management Fresh Water Sourcing

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Water Management Fresh Water Storage

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Water Management Temporary Water Lines

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Temporary Water Lines Monitored Daily

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Water Management Recycle & Reuse

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Safety and Environmental Considerations

December 22, 2011 April 23, 2014

Safety and Environmental Protection

Core Value
An effective Safety Culture is part of the business fabric Led by Senior Management

Implemented and supervised by managers

Followed and enforced by all hands and contractors Accountability and responsibility at all levels
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A Safe Workforce
Safety Conscious Workforce through: Training Experience Supervision

Range personnel manage programs and processes Inspections avert incidents and correct discrepancies Company-wide Stop Work authority

Contractor Management sets standards and audits compliance

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A Safe Workforce
Safety Conscious Workforce through:
Training Experience Supervision

Range personnel manage programs and processes

Inspections avert incidents and correct discrepancies Company-wide Stop Work authority Contractor Management sets standards and audits compliance
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A Safe Work Site

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A Safe Work Site

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A Safe Work Site

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A Safe Work Site

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A Safe Work Site

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A Safe Work Site

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A Safe Work Site

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A Safe Work Site

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A Safe Work Site

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A Safe Work Site

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A Safe Work Site

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A Safe Work Site

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A Safe Work Site

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Safe Work Site

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Safe Work Site

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A Safe Work Site

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A Safe Work Site

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A Safe Work Site

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A Safe Work Site

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A Safe Work Site

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Security

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Security

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Incident Management
SMSD Incident Notification Chain (Canonsburg)
Drilling
Site Supervisor NOTIFIES BOTH (Jan 14) (

* Indicates Change from previous update.)

Fac Construct
Site Supervisor NOTIFIES BOTH

Completions
Site Supervisor NOTIFIES BOTH

Production
Site Supervisor NOTIFIES BOTH
EHS Tech Chris McAneny 724-244-3348 OR EHS Opns Mgr Thomas Stewart 724-825-9772 THEY NOTIFY Dir, EHS Opns Steve Johnson 412-420-7253 HE NOTIFIES VP EHS Ralph Tijerina 724-954-5769

MAJOR INCIDENT

Kevin Carter Sr. EHS Tech 505-331-1599 Mark Kiel OR 724-986-5778 Mike Merry OR 580-571-7956 EHS Opns Mgr OR Thomas Stewart Kenneth Wigington 724-825-9772 940-229-1537 OR OR E&S Coordinator Jesse Standifer Jeremy Matinko 337-208-2056 724-809-6583 OR THEY NOTIFY Rick Babbitt Dir EHS Opns 814-671-7892 Steve Johnson THEY NOTIFY 412-420-7253 OR Drilling Manager EHS Opns Mgr Minh Nguyen 817-217-7650 Mike Arch 724-705-4246 OR THEY NOTIFY VP EHS VP Drilling Ralph Tijerina Don Robinson 724-954-5769 469-450-2281 VP EHS DRILLING VP NOTIFIES AS NOTIFIES REQUIRED DEP and/or PEMA VP SMSD John Applegath Regulatory 724-678-7054 Compliance Mgr AND Craig Wyda As Reqd 724-825-6493 Well Control Dir, Public Affairs Contractor Matt Pitzarella 1-800-256-9688 724-678-5138 (Boots-Coots) OR 1-281-784-4700 (WWCI) Sr. Mgmt. Ray Walker 817-939-4811

Robert Foulk 724-914-3757 AND Jason Miller 724-825-8932 THEY NOTIFY Operations Mgr. Shawn Hodges 814-720-1410

MINOR INCIDENT

EHS Tech Andrew Mihalcin 724-579-9966 OR EHS Opns Mgr Thomas Stewart 724-825-9772 THEY NOTIFY Dir, EHS Opns Steve Johnson 412-420-7253

Production Supervisors Dean Shober 724-884-3592 OR Gary McVicker 330-697-0997 OR Area Measurement Supervisor Dave Cloninger 724-579-4609 SUPERVISORS NOTIFY Dist Manager* Ryan Healy 724-678-4224 DISTRICT MANAGER NOTIFIES Opns Director Dennis Degner 412-926-4730 DIR OPNS NOTIFIES VP SMSD John Applegath 724-678-7054

SERIOUS INCIDENT

OPNS MGR NOTIFIES

HE NOTIFIES VP EHS Ralph Tijerina 724-954-5769

EHS Tech Construction Sup Dan Waters Guy Marsteller 724-531-3040 724-858-8628 OR OR EHS Tech Chris Instrumentation McAneny Supervisor 724-244-3348 Robert Newton 724-825-1840 THEY NOTIFY OR EHS Opns Mgr Electrical Sup Thomas Stewart Ed Dermont 724-825-9772 724-579-4324 OR SUPERVISOR NOTIFIES Fac Construct Mgr Dir, EHS Opns Mike McLaughlin Steve Johnson 412-420-7253 330-904-8720 OR Facilities Engineering Mgr Paul Deakin 724-809-1602 MANAGERS NOTIFY Opns Director* Dennis Degner 412-926-4730 THEY NOTIFY VP EHS Ralph Tijerina 724-954-5769 VP EHS NOTIFIES AS REQUIRED Regulatory Compliance Mgr Craig Wyda 724-825-6493 Dir, Public Affairs Matt Pitzarella 724-678-5138 Sr. Mgmt. Ray Walker 817-939-4811

MINOR INCIDENT SERIOUS INCIDENT

Opns Director Dennis Degner 412-926-4730

DIR OPNS NOTIFIES VP SMSD John Applegath 724-678-7054 AND As Reqd Well Control Contractor 1-800-256-9688 (Boots-Coots) OR 1-281-784-4700 (WWCI)

VP EHS NOTIFIES AS REQUIRED DEP and/or PEMA Regulatory Compliance Mgr Craig Wyda 724-825-6493 Dir, Public Affairs Matt Pitzarella 724-678-5138 Sr. Mgmt. Ray Walker 817-939-4811

VP EHS NOTIFIES AS REQUIRED DEP and/or PEMA Regulatory Compliance Mgr Craig Wyda 724-825-6493 Dir, Public Affairs Matt Pitzarella 724-678-5138 Sr. Mgmt. Ray Walker 817-939-4811

MAJOR INCIDENT

DIR OPNS NOTIFIES VP SMSD John Applegath 724-678-7054

HAZMAT Contractors Weavertown: 1-800-746-4850; EAP Industries: 888-294-5227 ECS&R: 877-902-2452; Alex Paris: 724-947-2235

Agency Contacts DEP Hotline800-541-2050; Natl Resp Ctr800-424-8802 OSHA Hotline800-321-6742; PEMA717-651-2001; Fish/Boat Commission814-445-8974

MARKWEST Brian Rayburn: 231-492-4763 Greg Sullivan: 740-314-9571

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Emergency Response Planning Emergency Response Plans

Preparedness Prevention Contingency Plan (PPC)

Governing Regulators Pennsylvania DEP

Spill Prevention Control and Countermeasures Plan (SPCC)

Unconventional Site Emergency Response Plan

Environmental Protection Agency

Pennsylvania DEP

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Individual Site Emergency Response Plan

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First Responder Training

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First Responder Training

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Performance
Range surpassed the milestone of more than one million man hours worked in our Marcellus Shale division with no OSHA reportable incidents and has since maintained a standard well above industry averages.
Industry Avg. For Oil & Gas Extraction per 100 Workers* Days Away, Restrictions & Transfers (DART) Total Recordable Incidence Rate or Workplace Injuries (TRIR)
*Bureau of Labor Statistics, 2011 **Range Resources SMSD, 2013

Range Resources** 0.00 0.30

0.5 0.9

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Performance

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Performance
Industry Avg: 0.76 Range Incident SMSD: Violations Rate 80 0.16 0.16 52 0.24
121 96 116 230 222 176 404 86 100 154 144 110 201 149 373 316 0.36 0.38 0.42 0.49 0.51 0.52 0.58 0.59 0.70 0.81 1.00 1.11 1.17 1.26 1.32 2.11

Operator
Range SMSD CNX CHEVRON SWN EQT TLM SWEPI APC CHK EOG WPX SENECA PGE CARRIZO XTO EXCO COG CHIEF

Horizontal Wells
485 218 332 255 275 469 432 340 698 147 142 189 144 99 172 118 282 150

PA Marcellus Violations per Well spudded 2010-2013

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Violation incident rate per well drilled

0.5 1.0 1.5 2.0 2.5 3.0 3.5 Range SMSD CNX CHEVRON SWN EQT TLM SWEPI APC CHK

EOG
WPX SENECA PGE CARRIZO XTO EXCO COG CHIEF

Performance

No. of horiz wells drilled

Violatons per horiz well drilled

100

Total horizontal wells drilled

200

300

400

500

600

700

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Safety and Environmental Protection

Summary
At Range, Safety is a Core Value

Effective Safety Culture that is led by example

Work Sites are designed to be safe for employees, contractors, the public, and the environment Incidents are averted through close attention to detail and corrected to preclude reoccurrence Plans in place to respond to incidents
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