ENVIRONMENTAL AWARENESS

The Company has a firm policy of adhering to strict industry standards relating to the protection of the environment.

Industry practices to operate safely and to protect the environment have evolved significantly in the past few decades. Improvements in technology enable us to conduct many aspects of our operations far more efficiently than just a decade ago. This efficiency translates to smaller "footprints" (the amount of surface area disturbed), less waste generated, cleaner and safer operations, and greater compatibility with the environment.

• Companies have substantially reduced the amount of land disturbance required for drilling a well, and by drilling several wells from a single location (with directional or multilateral technology) fewer sites are required to achieve the same level of production.
• If drilling operations are unsuccessful, companies plug the well below the surface with cement, then recontour and revegetate the surface as nearly as possible to predrilling conditions (as required by landowners and state or federal agencies, who often must approve the company's completion of restoration activities). In many cases, within a very short period of time, it is virtually impossible to tell that a well was ever drilled in an area.

Oil and gas companies have developed and implemented sophisticated management systems that spell out the procedures that are required by employees and contractors to operate safely and to protect the environment. These management systems have been extended to include social responsibility and ethical considerations. The Company pursues a policy of sustainable development is to balancing economic, environmental, and social challenges.

The industry has shown repeatedly that energy production and environmental protection are not mutually exclusive. The industry can produce the oil and gas needed to give consumers the freedom and mobility they demand, the warmth and light needed to survive, and still preserve the natural beauty of the environment.