© Chevron 2005

Chevron

Piceance BasinNatural Gas Development Program

Northwest Colorado Oil & Gas Forum

Presented by:Michael DeBerry

June 5, 2008

2© Chevron 2005 Chevron Mid-Continent Business Unit

Chevron’s Commitment to Environmental Stewardship

•Assistance to state agencies as a landowner in responding to Garden Gulch

•Engagement with Mineral Lessees as the Landowner

•Stormwater Management Programs

•Carbon Footprint Assessment, Alternative Energy Opportunities and Resource Conservation

•Surface Use Location Selection Process for Fee Acreage

3© Chevron 2005 Chevron Mid-Continent Business Unit

Assistance to State Agencies

•Recent Garden Gulch Activity

Worked closely with all regulatory agencies to provide information and access to property

No regulatory obligation as landowner

Provided CDOW access to conduct water and fish studies and samplings

Provided on site access for EPA, CDPHE, CDOW, Garfield County and the Colorado Water Quality Control Commissioners – irrespective of statutory right of access

4© Chevron 2005 Chevron Mid-Continent Business Unit

Stormwater Management Best Management Practices (BMPs)

• Controls

Workforce training and awareness raising

Utilization of stormwater program service providers for construction and inspection

Preventing erosion and/or sedimentation with best management practices applications

Silt Fence

Retention Basins

Check Dams

Seeding and Mulching

Grading/Roughening Techniques

Road and driveway surfacing

Spill Prevention Control and Countermeasure plans for reducing spills and/or consequences

5© Chevron 2005 Chevron Mid-Continent Business Unit

Stormwater Management BMPs cont.

Emergency Response Plans

Methods of handling/disposing of contaminated soils

•Post Construction Controls

Interim period between construction completion and final stabilization of the area

Must be inspected once a month

6© Chevron 2005 Chevron Mid-Continent Business Unit

Surface Use Location Selection Process

The purpose of the process is to make quality land use decisions for the Piceance Development Program.

Quality means balancing the environmental and surface use aspects with asset development.

Similar processes are employed with mineral lessees on Chevron lands and where Chevron operates on other’s lands.

•Initial location selection

Geologist recommends the pad location & description

•Area review

On-site review and report with aerial photo of any findings

Road access

Grazing and/or irrigation impacts

Pad orientation

•Drilling and Geology Review

Will pad location and orientation work

7© Chevron 2005 Chevron Mid-Continent Business Unit

Surface Use Location Selection Process cont.

•Formal Review of Site

Record issues and mitigation recommendations

Disturbed area

Access road(s)

Visual/noise impacts

Grading

Rig layout and well slot coordinates

Pit liners

Production facilities

Wildlife habitat and migration

T&E species considerations

8© Chevron 2005 Chevron Mid-Continent Business Unit

Surface Use Location Selection Process cont.

•Mitigation Plan/Stakeholder Meeting

Determine if process can proceed or if recycle is necessary

•Land Survey

Disturbed area to be identified

•Detail Pad Design

•APD/SUP Preparation

•Construction and Operations Review for Final Pad Design