Unconventional Resources DevelopmentSocial License to Operate / Learnings

March 21-22, 2018International Energy Agency – Gas and Oil Technologies Forum

Paul Krishna

Corporate SSH&E

Environment, Regulatory, and Socioeconomics Manager

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Exxon Mobil Corporation has numerous subsidiaries, many with names that include

ExxonMobil, Exxon, Esso and Mobil. For convenience and simplicity in this

presentation, the parent company and its subsidiaries may be referenced

separately or collectively as "ExxonMobil." Abbreviated references describing

global or regional operational organizations and global or regional business lines

are also sometimes used for convenience and simplicity. Nothing in this

presentation is intended to override the corporate separateness of these separate

legal entities. Working relationships discussed in this presentation do not

necessarily represent a reporting connection, but may reflect a functional guidance,

stewardship, or service relationship.

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Social License to Operate / Learnings

Content

• Methane Emissions

• Importance

• USA Voluntary Reduction Program and API Environmental Partnership

• Research

• Global Methane Principles

• Industry Leadership

• Protecting drinking water

• Water usage

• Chemical Disclosure and Frac Focus

• Seismicity and Gas Storage

• Increasing Regulator Capacity

• Community

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• Subsidiary of Exxon

Mobil Corporation

• Founded in 1986 in Fort

Worth, Texas

• Operating units across

the USA, Canada, and

Argentina

• USA’s leading oil &

natural gas producer

About XTO Energy

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Oil and Gas

Multi-Sector Opportunity to Reduce Methane

Wetlands Rice Cultivation

Ruminants

• Half from natural sources

– Anaerobic decay

– Termite digestion

– Natural seeps

Natural Seeps Oil & Gas

Biomass Decay

Termites

• Agriculture is major human contributor

– Rice cultivation

– Livestock

Landfills /

Burning

Based on data from IPCC, 2013

• Oil and gas ~10% of total

• Landfills also significant sourceLandfills

Landfills /

Burning

Landfills /

Burning

Sources of Atmospheric Methane

Natural

Agriculture

Landfills

Oil

& Gas

Coal

• Coal mining is balance

Lifetime in the atmosphere is 7-10 years.

Global Warming Potential-100-years is 28.

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ExxonMobil expands methane emissions reduction program

News Release

Energy Factor Perspectives Blog

Infographic

Program Website Content

Environmental Defense Fund

Blog: Leading methane

commitment from Exxon's

U.S. driller: Why it matters

Statement : XTO Steps Up

on Methane Mitigation

“XTO Energy is showing real

leadership in addressing methane

emissions at key sources across

its U.S. operations.

Delivering on this promise will

make XTO a stand-out among the

U.S. oil and gas industry.”

“….this kind of company

responsiveness to local

community, investor and advocate

concerns is refreshing.

“XTO’s expanded methane

management program is a timely

reminder that reducing methane

emissions from today’s levels is

technologically feasible, cost

effective, and necessary.”

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Methane Emission Reduction Program at XTO Energy

Leak Detection and Repair

• Annual optical gas imaging camera surveys of equipment, fittings,

flanges, and connections. Enhanced to include pneumatic devices, tank

hatches. Repair on site or queue larger repairs.

• Includes relevant federal and state requirements, and substantial

‘beyond regulation’ activity.

Pneumatic Devices

• Replace all high-bleed devices with lower emitting devices.

• Research low emission devices with third-party manufacturers.

New Construction

• Designs to emphasize low emissions and include lower emitting or no

bleed devices.

• Expanded use of vapor recovery units, enhanced process monitoring,

and centralized facilities.

Manual Liquid Unloading

• Monitor operations; minimize release of natural gas.

Operations

• Training on optical imaging camera use and emission management.

• Methane emission learnings shared across the organization.

Manual Liquid Unloading

Pneumatic Device

Leak Detection & Repair

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API Environmental Partnership announced 12/5/17

Focus: Reduce methane and VOC emissions, starting January 1, 2018.

Participating companies represent 25% of U.S. gas industry volumes.

Companies to determine level of participation and which programs they will participate

Environmental Performance Programs

1. Leak monitoring using optical imaging camera or Method 21. Timely Repair.

2. High bleed pneumatic device phaseout (5-years)

3. Manual Liquid Unloading monitoring.

Participation Agreement and Report

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Global Methane Roundtable – 11/22/2017

• IEA World Energy Outlook said industry “has

homework to do” on methane emissions.

• Industry response to IEA with message: Natural

gas is a global fuel with environmental benefits.

• Guiding principles to respond to WEO key points.

10/25 Meeting.

• Participants: Shell, ExxonMobil, BP, Eni, Statoil,

Total, Repsol, and Wintershall.

• Notables: IEA, EDF, UNEP, and World Bank.

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Industry Leadership – Other Issues

GWPC Produced Water

and Beneficial Use (2018)

Stanford–ExxonMobil Fault Slip Potential Tool (2017)

Frac Focus (2010-2017)

States First: Gas

Storage (2017)

StatesFirst: Seismicity

(2016/2017)

TOPCORP University Regulator Training

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Addressing Local Impact through Community

Relations and Health Study

Community relations

• Addressing local impacts (trucks, noise, lights)

• Importance of communications

• Operation adjustments

Health Study

• Health Effects Institute (HEI) and Industry pursuing a first-of-its-

kind exposure study to assess community health impacts from

unconventional resources development.

• Industry Participants: ExxonMobil, Shell, Chevron, Statoil,

BHP-B, ConocoPhillips, Halliburton, Schlumberger, Noble

Energy & American Chemistry Council.

• HEI is a non-profit research organization chartered in 1980 to

provide high-quality, impartial, and policy-relevant science.

Lengthy respected track record.

• 5-Year $28M study. HEI in discussions with Congressional

Appropriations and EPA.