FAQs

SWN Resources Canada is a wholly owned subsidiary of Southwestern Energy Company and has an office in Moncton, New Brunswick. Since March 2010, we have conducted a variety of exploration techniques to better understand the geology in our licence areas. In all of our activities we operate with the greatest respect for people, the environment and communities. We believe strongly in the importance of being a responsible corporate citizen and will continue to be the right people doing the right things.

With the same spirit of exploration that led Southwestern Energy to the discovery of the Fayetteville Shale in Arkansas, the company’s team of experienced professionals recognized the potential of New Brunswick. The province is rich in natural resources and has the high quality and thickness of the Frederick Brook Shale. The Maritimes and Northeast pipeline also runs through New Brunswick.

In March 2010, the New Brunswick Department of Natural Resources awarded SWN Resources Canada a three-year licence to explore for oil and gas covering 1 million hectares (2.5 million acres) within New Brunswick. SWN Resources Canada is committed to invest $49 million CAD in capital over a three-year period. This exploration program includes:

• Airborne Gravity and Magnetic Surveys.
• Surface Geochemistry.
• 2D Seismic.
• Exploratory Test Wells.

Our approach to finding new energy sources is most clearly defined by our unique Formula for Success:

Our Formula represents an engaging and compelling vision that evokes thoughtful action. It provides a foundation for us to make good decisions and motivates and encourages us to surpass even our highest goals. It is an ever-present reminder to create exceptional value and to strive to be "the Right People doing the Right Things."

The principles behind the Formula also drive us to operate in an environmentally and socially responsible manner, striving to enhance the quality of life wherever we have operations.

• North America has a large supply of clean natural gas that is so vast it can literally power our continent for decades to come.
• The Fayetteville Shale in Arkansas produced approximately 3.6% of the United States' dry natural gas production during 2010.
• According to the U.S. Energy Information Administration, natural gas is twice as clean as coal, has fewer emissions and produces virtually no solid waste.
• According to a recent study by the IPA, in 2010 this clean energy source supported almost 4 million jobs in communities across the U.S. and it offers an abundant, clean energy solution for power generation and transportation.
• The U.S. Environmental Protection Agency calls natural gas the cleanest alternative transportation fuel commercially available today.
• Compressed natural gas can be used as a vehicle fuel to power cars and trucks. It is another opportunity to utilize our own natural resources.*
• As an advocate of clean energy, Southwestern Energy works with several environmental and alternative energy groups to educate people about the advantages of natural gas.
  

*Source: America’s Natural Gas Alliance www.anga.us

Natural gas is a mixture of hydrocarbon gases, mostly methane and ethane, found trapped in the pore spaces of some sedimentary rocks.

Shale is a dense, fine-grained rock that typically requires hydraulic fracture stimulation to produce economic quantities of natural gas. It has only been in recent years that shale has become an economic source of natural gas supply due to better drilling and completion technologies.

The major difference between the two is the manner in which the gas is extracted. Natural gas is locked inside naturally occurring rock formations like carbonates, sandstones and siltstones. And, for nearly 100 years, natural gas has been captured from these conventional formations. But today, because of advances in technology, it is economically feasible to capture natural gas from low permeability sandstones and limestones, coal beds, and organic rich shale.

Natural gas is a domestic source of energy, which means increased use of natural gas can reduce our energy dependence on foreign fuel sources. And, advances in technology are making it easier for us to discover and produce it.

Natural gas is widely used as a fuel source today for homes and businesses. It powers factories and helps create electricity. Compressed natural gas can be used as a vehicle fuel to power cars and trucks. It is another opportunity for us to utilize our own natural resources.

By increasing the domestic natural gas supply, we are helping reduce dependence on foreign fuel sources, and keeping energy-related jobs and investments in North America.

Natural gas burns more cleanly than other hydrocarbon fuels, such as oil and coal, and produces less carbon dioxide per unit of energy released.

For seismic energy sources the Province of New Brunswick specifies offset distances from manmade objects like buildings, water wells, and pipelines to ensure no damage occurs from seismic activity.

SWN Resources Canada will follow Guidelines for Canadian Drinking Water Quality in sampling and analysis of water from private wells. With landowner consent, SWN Resources Canada will sample water wells prior to seismic activity to obtain a baseline understanding of water quality. Following seismic activity, water well quality will be retested to understand if water quality impacts could have resulted from seismic activities. All results from the analytical work will be provided to the landowner. In addition, with landowner permission, ground motion will be measured near seismic activity.

SWN Resources Canada has made an approximately $49 million CAD in capital investment commitment over a three-year period.

We are still in the early stages of exploration, but in the event of a commercial discovery and active operations, there is an opportunity for significant economic gains for New Brunswick. The most important gains include increased jobs, new business growth, and additional revenues from taxes and royalties.

In 2011, SWN Resources Canada had 200 people participate in the 2011 2D Seismic and Geochemistry Programs, of which 175 were from the Maritimes and used the services of over 70 local companies, generating over $4 million in direct economic benefits in New Brunswick.

SWN Resources Canada was required to pay a monetary bonus to the province in order to secure its licences. SWN Resources Canada’s commitment will not be paid to the province if all required capital investments are made within the three year period and SWN Resources Canada will not directly pay any other monies to the province other than fees, taxes, royalties, and annual rentals associated with conducting our operations, all of which are outlined in provincial legislation.

There is great potential for employment opportunities. A commercial discovery, would create stable long-term jobs with higher than average wages and large scale resource development would require support from a wide range of occupations directly and indirectly associated with the oil and gas activities.

Increased industry activity would require support from a variety of businesses, including the service sector. For example:

• Construction and manufacturing
• Drilling, completion, geological, geophysical and production
• Pipeline and associated infrastructure
• Environment and other consulting services
• Legal and land
• Natural gas distribution
• Service industries and logistics
• Transportation and distribution (air, land and sea)
• Municipal and governmental
• Retail, food, health, merchandise, education, and financial services.

The oil and natural gas industry is diverse, providing employment opportunities which range from manual labour to specialists like geologists and engineers. The needs of companies operating in the province will vary.

Because the oil and gas industry requires an array of professions, some positions will require specialized education and years of experience beyond university, while other positions will involve certifications or adequate on-the-job training. Understanding your own skill set is the first step to determining what positions are best suited for you. From there, information can be provided to help you understand how to become qualified for such a position.

As opportunities become available, we will post them on http://www.swnnb.ca/

SWN Resources Canada will always seek landowner permission before we conduct operations of any nature on your property. It is your right to refuse the request. Since the manner of our operations often provides flexibility of surface use, we would then look to another property owner in the area for a seismic or well location. The Province of New Brunswick does provide operators with an appeal process, but we will always try to make other arrangements with the landowners.

Yes. We will compensate the surface owner with fair market value for use of their property.

Only the surface owner of the drill site location will be compensated for any disturbance on his or her property. Should our operations warrant the use and disturbance of any of your surface in our operations, we will contact you directly to negotiate appropriate compensation and make arrangements.

The Crown owns all minerals in New Brunswick and the Department of Natural Resources is mandated to manage the natural resources of the province in the best interest of its people.

We will only conduct operations on private property with the landowner’s permission and a permit. We do not anticipate our operations will have any adverse effects on your property. If our operations adversely impact your property we will work to correct.

Our exploration phase will involve the drilling of exploratory test wells. The exact location of these wells is not yet determined. Any potential well in a development program, will be located and drilled in accordance with the provincial regulations and permit requirements.

The energy industry is highly regulated, and our company will meet or exceed all regulations. Local, provincial and national regulations, as well as the Canadian Association of Geophysical Contractors, provide guidelines regarding operations of seismic imaging activities. The current regulatory framework is sufficient for the type and level of oil and gas activity currently underway.

We are deeply committed to environmental stewardship and being a good corporate citizen. Our geochemical and geophysical activities have a minimal, temporary impact on the surface, and therefore do not require extensive impact studies.

An EIA is a tool used in the approval process of various activities, and the requirements vary between jurisdictions. Wherever we operate, we work hard to understand what is required of us, to abide by local requirements and to determine where and how we can go above and beyond. In New Brunswick, the EIA process is overseen by the Department of Environment, which works with the Department of Natural Resources and other appropriate entities to ensure natural resources are protected.

The provincial government is proactively researching other provinces and states and the Department of Natural Resources, the Department of Environment and other provincial ministries are working with the industry and stakeholders to develop comprehensive regulations to better manage the challenges specific to unconventional resource plays. Moreover, they are studying other key issues such as citizen engagement and awareness, economic benefits, resource and community development and stringent environmental protections.

We have 32 licences to explore for oil and natural gas in the province encompassing approximately 1 million hectares (2.5 million acres). These licences can be grouped into three main geographic blocks—the largest is bounded on the west by McAdam, on the north by Doaktown and on the east by Richibucto. The second block of licences extends from Petticodiac on the southwest to Shediac on the northeast, and the third block is in the Chipman / Minto area.

Our initial work includes four types of exploration activities:

• Airborne gravity and magnetics
• Surface geochemical survey
• Two-dimensional seismic
• Exploratory test wells

During May, June and July 2010, Fugro Airborne Surveys conducted airborne magnetic and Falcon™ gravity gradiometry surveys on behalf of SWN Resources Canada. These airborne surveys passively measure gravity and magnetic responses created by the subsurface structure of the earth. The data is processed to remove the regional effects to yield a final measurement that shows changes in the gravitational field and the magnetic field across the licence areas. This data will help the company develop a better understanding of the geological complexities under their licence areas.

• One plane collected both gravity and magnetic data, and
• A second aircraft collected only magnetic data.

Fugro Airborne Surveys has been conducting this type of survey globally for more than 30 years, including many previous surveys in New Brunswick. Work consisted of flying an aircraft between 150 and 300 meters above ground, flying back and forth along parallel lines. Apart from normal aircraft noise, there was no surface impact.

SWN Resources Canada is using geochemical sensors to help determine if hydrocarbons have formed in the rock layers beneath the licence areas. Although the presence of hydrocarbons would not ensure the economic viability of this project, it would give further clues toward determining the possible locations of any hydrocarbon accumulations in the subsurface.

This low-impact process includes the following three basic steps:

• First, a field technician uses a hand tool to make a small, shallow hole in the ground. The hole measures from 1-2 cm in diameter and is 50-100 cm deep. The coordinates are recorded using GPS hand units.
• Second, a flexible tube is placed into the hole. This tube captures the minute amounts of hydrocarbon gases that naturally diffuse to the surface over very long periods of time.
• Finally, the entire tube is retrieved three weeks later and the hole is filled. The tube is sent to the laboratory for very detailed analyses of the trace amounts of hydrocarbons.

Seismic imaging, which creates maps that show potential crude oil and natural gas reservoirs far beneath the earth’s surface, is a well-established practice in the oil and gas industry.

Seismic imaging maps the earth’s subsurface through the use of sound waves, which are generated using truck-mounted vibrators or buried charges. Seismic specialists will use trucks equipped with an underlying vibrating plate to generate specific sound frequencies. When the plate is placed on the ground and activated, these downgoing signals are reflected off subsurface rock formations and recorded by the geophones located at the surface in the surrounding area. In some cases, depending on terrain, a small charge may be placed in a hole drilled 12-15 metres deep and tamped into place with clay and gravel. These sources are activated at pre-planned and surveyed positions with listening devices (geophones) arranged along the profile to record the signals that are reflected from beneath the earth’s surface. In both cases the sources are activated electrically and a mobile, truck-mounted central recording unit collects the sound wave readings. These techniques are combined with computers and processors to create a two-dimensional image of the earth’s subsurface layers.

SWN Resources Canada plans to conduct additional seismic imaging across a portion of our licenced areas during 2012.

Raw recorded seismic data is processed by a computer to remove noise and enhance the useful signal before it is graphically displayed. Once this process is complete, a geoscientist will interpret and map the data to help in the selection of any appropriate exploratory well locations.

Specialists on the seismic crew are trained and provincially-licenced in the use of explosives. These workers (also called shooters) will ensure that everything is compliant to all regulations before any sources are activated. To ensure further safety, these sources are stored separately in an environmentally controlled structure.

No, regulations from the province, local governments, and the Canadian Association of Geophysical Contractors provide guidelines to geophysical contractors specifying the distance activity must keep from all structures, water wells, pipelines and designated wetlands.

SWN Resources Canada will test water wells before and after seismic activity. These tests will establish the baseline chemistry and biological character of the water. With landowner permission, water wells within 200 metres of seismic operations will be tested. In addition, the company utilizes devices that measure ground movement. Again, with landowner permission, these will be placed near water wells and structures as well as near highway traffic to demonstrate the insignificant movement caused by seismic activity.

We are currently in an exploration phase and have not determined the exact location or timing of any potential wells.

We do not anticipate any adverse effects to your property. If, by chance, something does occur, you will receive full restitution for damages incurred.

The industry's use of horizontal drilling has significantly increased the recovery of crude oil and natural gas from shale rock formations previously considered uneconomic. Because of this, it is likely that horizontal drilling could be one of the tools used to produce crude oil and natural gas in New Brunswick. A horizontal well provides a long length of contact with the subsurface formation as well as flexibility in the selection of surface drill sites.

In most places, formations must be deep below the water table to contain commercial hydrocarbons. Hydrocarbon prospective reservoirs are generally hundreds, but more often thousands of metres below potable water sources.

The fresh water resources are separated from the crude oil and natural gas reservoirs by several hundred or thousands of metres of confining rock. This coupled with the fact SWN Resources Canada will use high-strength steel pipes, which are cemented in place and tested at higher pressures than used during drilling. This helps protect fresh water resources from exposure during the drilling process.

Regulatory requirements will ensure that well construction practices and onsite monitoring prevent adverse impact to ground and surface water. In addition, we have a team of environmental and technical professionals who monitor our operations every day to ensure compliance with regulatory guidelines, and we self-report any violations.

Pre-planning is the single best element to preventing blow-outs and other well control problems. Prior to even starting construction of the drilling location, a thorough examination is conducted. Wells are compared using knowledge gained through geological mapping and correlation, seismic measurements, gravity measurements and magnetometer measurements. The experiences of the prior wells are mapped to the new well location. When the new well is drilled, these conditions will be expected. With these expectations, the best well design can be created to cope with these conditions. All wells are overdesigned to prevent well control incidents and are properly equipped to control any unforeseen incidents.

With properly constructed wells, the drilling process will not contaminate water wells or water tables. The drilling of oil and gas wells in and through the potable water zones is similar to the process used for drilling water supply wells. Simply stated, water sources are isolated and protected with steel pipe and cement while drilling continues past these fresh water zones.

Drilling the first segment of the well is done in a manner similar to the drilling of water wells as the fluids used to drill through the water sources are the same type of fluids with similar additives as water well drillers use when drilling both domestic and municipal water wells. These fluids protect and do not contaminate the water zones as they are drilled. When drilling has extended deeper than the bottom of the water-bearing zones, the drilling equipment is pulled out of the well. Casing, large-diameter steel pipe which will be permanently left in the well, is run to the bottom of the well and a cement slurry is pumped down the casing and out into the space between the casing and the formation until the cement returns back to the surface. When the cement returns to the surface, indicating that the space between the formation and the casing is completely filled with the cement, pumping is stopped. Also, special attachments to the casing, called centralizers, hold the casing in the center of the hole so that there is a relatively even layer of cement around the outside of the pipe. The cemented pipe isolates further well operations from the potable water sources and prevents movement of water or other fluids and gases between different zones in the subsurface.

Hydraulic fracturing or “fracing” is a process in which primarily water, sand and a small percentage of additives are injected into a well at high pressures to create fractures within a tight rock formation. Fracing allows more crude oil and gas to be produced from a single well, and reduces the number of wells that must be drilled. It also allows very low permeability formations to produce economically. The technique has been practiced extensively over the past sixty years over a wide range of formations and applications.

Current practices protect against environmental and human health concerns while hydraulic fracturing. SWN Resources Canada has a team of environmental and technical professionals who monitor our operations every day to ensure compliance with regulatory guidelines and self-report any violations.

Like many other industries and activities, if conducted properly, hydraulic stimulation will not pose significant risk to safety, health or the environment.

Because shale is a tight formation, fracture stimulation must be used to crack the rock and allow the hydrocarbons to flow back to the earth’s surface. The chemicals utilized may vary depending on the design of the hydraulic fracture. For example, during this process in the Fayetteville Shale in Arkansas, we use a mixture of water and sand (99.9%) with a miniscule amount of additives (0.1%) commonly found in many other things. The additives that make up this 0.1% are typically an acid (HCl commonly used as a swimming pool cleaner), a friction reducer (varying types with alternate uses in soil treatments, make-up removers, laxatives, and candy), and a biocide (used in disinfectants and for medical equipment sterilization). Sometimes a scale inhibitor (also used for automotive antifreeze and household cleaners) is required if the water shows to have a scaling tendency.

Benzene and diesel fuel are not used in our hydraulic fracturing fluid. Diesel is used to run the trucks and equipment on location during hydraulic fracturing.

Water usage depends on the design of the hydraulic fracture that is required to fracture stimulate the hydrocarbon bearing formation. Water volumes can range from 250 – 1,590 cubic metres per fracture treatment. The number of fracture treatments or stages depends on whether the well is horizontal and the length of the horizontal lateral.

Fracture fluid return volumes are typically low, in the 5-20% range for tight reservoirs in the first 30 to 60 days. The stimulation fluid will continue to be produced in small quantities throughout the life of the well.

It's too early to tell since we are just in an exploration phase at this point, but we anticipate developing water resources that respect the environment, consider competing water uses and needs, and abide by the regulatory guidelines.

Our company uses high-strength steel pipe, which is cemented in place and tested at higher pressures than used during drilling or stimulation. These measures help us to know that freshwater resources are protected during the drilling, completion, and production processes. We monitor pressures before, during and after the frac job to ensure that the wellbore integrity is not compromised.

We evaluate the rock formations where we drill to determine the make-up of the rock layers to ensure proper containment of fluids used during the fracing process. Southwestern Energy ensures that all waters and fluids used in its operations are properly recycled, cleaned and disposed of in a manner that meets or exceeds all regulatory and environmental standards.

We’re committed to effective collaboration with our industry partners and regulators in order to meet our Health, Safety and Environmental (HSE) objectives and work with them to ensure they understand our expectations. If any type of spill occurs, the responsible party is charged with properly cleaning the spill as well as reporting it to appropriate authorities.

Typically a well is fracture stimulated at the beginning of its life. Under current practice it is rare if wells are fracture stimulated again.

Please see our animation of a horizontal drilling and completion operation in the Fayetteville Shale on http://www.swnnb.ca/.

The typical stages of completing a horizontal shale gas well are:

• Perforate the casing at the end of the horizontal lateral (toe stage) via tubing conveyed perforating guns
• Pump hydraulic fracture treatment
• Set wireline plug and perforate the next interval of the horizontal lateral
• Pump hydraulic fracture treatment
• Repeat the process of setting a plug, perforating and hydraulic fracturing until the entire lateral is stimulated
• Drill out plugs via coil tubing
• Run production tubing
• Flowback well and turn over to production to connect to sales.

In the case of natural gas, the well is connected via pipe to a gathering system common to the field. The natural gas is then carried through a buried pipeline for delivery to market and end users.

The operator will follow provincial rules and regulations for proper notifications, decommissioning process and restoration of the surface.

The operator will follow provincial rules and regulations for proper notifications, decommission process and restoration of the surface. The general process is to place cement plugs in the well to permanently isolate all formations from one another, therefore no other formations, potable water zones or the surface are impacted. Finally, the casing is cut off below ground, all surface equipment is removed and the location is restored to its original condition.

The equipment is removed for salvage or disposal by the operator.

If we are successful in our efforts to find and produce natural gas in New Brunswick, there will be many potential uses in industry, manufacturing, private and commercial users as well as new, yet to be realized possibilities such as natural gas vehicles. A significant discovery could likely yield quantities of natural gas well beyond the province’s ability to consume. In that case, there are markets outside the province to the west in Canada, as well as the northeast United States. New Brunswick could benefit greatly from the export of natural gas just as it has for decades reaped benefits from the export of the mineral industry products such as zinc, lead, gold and potash.

The use of horizontal drilling has allowed us to decrease our surface impact significantly by drilling multiple wells from a single surface location. We always strive to construct sites in a location that avoids sight and proximity to structures or other significant culture. The land used for locations is usually not more than two hectares. To build a location, an area is cleared and covered with gravel and/or rock. The location is constructed to specific engineering standards to minimize run-off, control erosion and will be maintained throughout the life of the well. Every consideration is given to high safety and environmental standards. Any and all trees and brush from the clearing of the location will be removed and used in the most practical manner. Once the well reaches the end of its productive life and has been properly decommissioned, all the surface production equipment will be removed for either disposal or reuse. The location will be restored to its original condition by planting native trees, plants and grasses.

Underground piping runs from the wellhead through a production separator to separate water from gas. The gas then proceeds on to and through the well site measurement equipment. Produced water that is separated is stored in surface tanks on the location. From time to time, trucks come by the location to pick up the produced water for proper disposal. The water storage tanks are surrounded by a secondary containment structure designed to contain any leaks or spills. The tanks are also underlain by an impervious membrane or soil to prevent any spillage from leaching into the ground. There may occasionally be gas-driven engine well-site compression. Finally, the equipment is often painted a color that blends in with the surroundings and low-profile equipment can be deployed where necessary.

At the edge of each location the gas will be tied into underground pipelines and the gas will be transported to distant sales points. Natural gas is not stored on the well site. Also, the well site will be secured by either fencing, cattleguards or gates depending on site-specific needs. This equipment and well site security is monitored and maintained closely. The site will be attended regularly by a trained operator to inspect equipment, verify proper gas volume measurement and ascertain if water needs to hauled off for disposal. The operator will also check wellhead pressures to ensure wellbore mechanical integrity is secure.

Our company has a compelling story highlighted by a track record of remarkable accomplishments. An essential part of our story is how we support the communities where we operate, doing what we can to enhance the quality of life for those around us. At SWN Resources Canada we are committed to programs in education and public safety as well as initiatives that protect and preserve the environment.

While we are still new to New Brunswick, we have supported Science East, the Frye Festival, Atlantic Wildlife Institute and the Nature Conservancy. We look forward to being involved and making a difference in New Brunswick communities for the long-term.

Southwestern Energy has a long and notable record as a caring and supportive corporate citizen in the areas where we operate. We believe in helping our neighbours and take pride in supporting the communities in which our employees live and work. Doing what we can to enhance the quality of life for those around us is an essential part of our business.

The company is committed to providing support at the local level where our communities need us the most. Most of our efforts today focus on education, environment and community improvement.

Our employees volunteer their time to make a positive difference in their communities. In addition, the company supports communities through contributions to worthy causes and organizations.

Some of our signature giving programs include:

• Southwestern Energy Arkansas State Science and Engineering Fair - SWN pledged $100,000 to the Arkansas State Science and Engineering Fair in 2010 and became the largest donor in the organization’s history. The company believes that promoting science and engineering among students in Arkansas is important for the future of the state and the natural gas industry.
• Junior Achievement - Through our investment in Junior Achievement of Arkansas, our employees are volunteering in the classroom to help teach high school students about personal finance.
• Petroleum Technology Program - Students of all ages are starting new careers through the new petroleum technology program we helped establish through a $200,000 donation at the University of Arkansas Community College in Morrilton, Arkansas.
• Everyday Heroes - Volunteer fire departments, police departments, sheriff’s offices and offices of emergency management in towns where SWN works are being honoured for the valuable role they play in their communities with funding through the company’s Everyday Heroes grant program.
• Bobwhite Quail Habitat - Landowners are improving their land, and wildlife have a new opportunity to thrive in the Bobwhite Quail Habitat we helped create through a $250,000 donation and a ground-breaking public-private partnership with the Natural Resources Conservation Service, the Arkansas Game and Fish Commission, and the Arkansas Association of Conservation Districts.
• School grants program – Funds are made available each year to school districts throughout the Fayetteville Shale region for math, science and technology initiatives.
• Other groups we support in our major areas of activity include United Way and 4-H Foundations, chambers of commerce, county fairs and many fund-raising events for charities.
• In Texas, employees support a variety of charitable giving programs including Komen for the Cure, MS 150 and a partnership with a local school district.

From rig sites to our corporate office, SWN Resources Canada holds health, safety and the environment in high regard. In fact, we formed an entire department around them. They guide our philosophy, business and decisions and serve as a direct extension of our Formula.

Our company is committed to:

• Identifying potential HSE aspects and impacts
• Developing and executing safe and environmentally friendly solutions
• Monitoring, measuring and verifying HSE performance in accordance with our standards
• Verifying compliance with HSE laws and regulations
• Cooperating with local, provincial and federal agencies.

Our HSE department provides guidance and facilitates this company commitment. They also provide assurances through programs, systems, processes and reports (including compliance reviews) that this commitment is being executed.

Our company has developed and adopted a variety of HSE-related training programs for employees including but not limited to:

• Construction and drilling safety
• Hazard communication
• Emergency planning and response
• Chemical awareness and material safety data sheet awareness
• Proper lifting techniques and back injury prevention
• Ergonomics
• Electrical safety
• Excavation safety
• Fire prevention and protection
• Good Decisions
• HSE Leadership Training
• J.J. Keller program
• Lock-out/tag-out
• Pre-construction environmental review
• Erosion control process
• Smith Driver Training Program
• Trenching safety
• Waste management process
• Use of proper protective equipment, etc.

This training is delivered in numerous ways and formats including classroom, hands-on, tailgate sessions, computer assisted, on the job, video, etc.

Our exploration, production and gas gathering activities help bring natural gas to market. Natural gas is recognized as a clean fuel and helps maintain air quality. In the United States, we proactively implement activities such as green well completions (to either significantly reduce or eliminate any flaring or venting) and utilize low emissions combustion engines and gas processing equipment to minimize our impact on air quality. We typically meet and, in many cases, exceed air quality standards and regulations for oil and gas activities and as a company are voluntarily reporting our greenhouse gas (GHG) emissions through such programs as the United States EPA’s Gas Star.

As mentioned above, SWN Resources Canada will proactively implement green well completions and equip our operating facilities, including gas processing facilities, with low emission equipment. We utilized new generation technology for our large compressors and we equip them with combustion catalysts and low air emissions equipment. We utilized this approach from well head through gas gathering and processing.

In 2012, SWN will take yet another step toward monitoring and reporting its greenhouse gas emissions. Using an internet-based system, we can provide a greenhouse gas emissions inventory for our larger combustion sources. In addition to delivering improved reporting accuracy, this system will create a clearer picture we can use to further reduce our carbon footprint.

Our exploration, production and gas gathering activities help bring natural gas to market. Natural gas is recognized as a clean fuel and helps maintain air quality. In the United States, we proactively implement activities such as green well completions and utilize low emissions combustion engines to minimize our impact on air quality.

Our company has developed environmentally friendly strategies to ensure the water necessary to satisfy our drilling and completion needs. For example, in our Fayetteville Shale project we work closely with landowners to construct rainwater collection ponds. In addition to satisfying our needs, these ponds decrease sedimentation in nearby rivers and create a game and fish habitat that benefits the area for years to come. As exploration in New Brunswick continues we will be working with regulatory and environmental organizations and educational institutions to develop ideas on how to best manage water needs that support the environment at the same time.

SWN Resources Canada doesn’t take a single drop of water for granted. Our goal is to not only capture but also recycle as much of the water we use in our operations as possible.

Safety is a priority in all areas of operations, and training is a key component of our company's health, safety and environmental management system. We strive to build a culture of safety which, in turn, reduces incidents at our locations and creates safer environments for everyone. In fact, we utilize national safety programs and have developed and implemented our own safety-focused trainings to ensure we're doing all we can to equip those who work with us the tools they need to perform their job in a healthy, safe and environmentally responsible manner.

Our corporate HSE department has a comprehensive health, safety and environmental management system. It guides activities in all areas of operations by setting forth policies and procedures and equipping employees through extensive training.

Safety is a top priority in all areas of our operations. We work hard to negate incidents and accidents. We develop crisis management and incident response plans that anticipate possible accident or incident scenarios and provides for a plan to command, control and coordinate an incident response. The plan prescribes a means to coordinate the efforts for different functional groups, contractors, and agencies as they work toward the common goal of stabilizing the incident and protecting life, property, and the environment. The plan is typically designed for a large spectrum of emergencies, from small to complex incidents including natural and man-made.

We do not anticipate that our operations will have an effect on wildlife in the area. From a planning perspective, we will work to understand what potential impacts our activities may have on wildlife. Where effects from our activities are suspected, we will employ approaches that minimize the adverse effects on wildlife and the environment. We will work with governing bodies to ensure we are compliant with all regulations set forth in the province.

We are currently in the exploration stage of our operations and, during this stage, local residents will see little to no change to the landscape.

The EIA is a comprehensive and multidisciplinary tool that is engaged now even before drilling begins. EIA represents a proactive, preventive approach to environmental management and protection.

New Brunswick’s Environmental Impact Assessment Regulation was established in 1987. The EIA Regulation 87-83 falls under the Clean Environment Act and is the responsibility of the Minister of the Department of the Environment and Local Government. The Project Assessment Branch of the Department is responsible for implementing the regulation.

Any private firm, individual or government agency that proposes an undertaking in New Brunswick that is listed in the regulation’s “Schedule A” must formally register details of their proposal in accordance with the EIA Regulation. (Examples of undertakings from this schedule include projects such as highway construction, power generation and mining.) The registering party is then referred to as the “proponent.” Throughout an EIA, there are points at which the public can become aware of and respond to a proposed project or development. These opportunities have been identified in the following section as “public consultation.”

An air quality approval is required by owners and operators of a source of air contaminants for the construction, operation, or modification of the source. This applies to most existing or new industrial and some commercial or institutional facilities.