APPLIED CONSULTANTS, INC. – Brief Project Review

M3 Midstream – Marcellus Shale: Applied Consultants has supplied Inspection for the Greenfield project for M3 Midstream in the Marcellus Shale. This project consisted of 120 miles of 24” Transmission Pipe with numerous lateral lines. The project also consisted of 2 Compressor Stations and 2 CDP’s as well as multiple HDD’s. This system is located in the remote areas of West Virginia and South West Pennsylvania. This is the first footprint for M3 in the Marcellus Shale. This project has transitioned into the Utica with Applied supplying Inspection personnel on several large Plants and pipeline projects. Applied currently has 94 Inspectors working for M3 Midstream and M3 Utica.

Pioneer Natural Resources – EFS Midstream/Eagle Ford Shale: Applied has provided inspection and engineering services to this green field project since July 2010. With Applied’s assistance, EFS Midstream was able to in quickly develop their position in the Eagle Ford trend almost 6-8 months ahead of any of their competitors. Applied currently has approximately 50 employees working in various roles on this project. To highlight this effort; six (6) large Central Gas Processing (CGPs) facilities were engineered, constructed and brought on line within 12 months. Each of these facilities consisted of 150 gpm amine plants, glycol dehydration units and 5000 bpd condensate stabilization units. Custody transfer services were also provided at these facilities for both gas and condensate. 300 miles of 8” and 12” pipelines have been laid with numerous bores, including bores under the San Antonio River and Interstate 37. This is an on-going project that continues to keep EFS Midstream as the major contender in this trend.

Hawk Field Services/Haynesville Shale Play: Applied has effectively delivered inspection and engineering services to Hawk in a grass-roots movement to develop their position in the Haynesville play since August 2008. To support the ensuing multitude of projects, Applied currently has 54 Inspectors working on these projects in the Haynesville for Hawk Field Services. Highlighted projects during this period are 59 miles and 43 miles - 16” pipelines including 2 Red River bores with an additional 65 miles of pipeline. Our inspectors also managed the installation of several meter facility interconnects to transmission lines with a collective takeaway capacity of some 685MMCFD. Applied’s engineering staff has worked or is working on the design, drafting and installation of 7 amine plants that will total approximately 1300GPM when all are complete.

Mark West/Oklahoma: The construction of a 50 mile - 24” gas pipeline began January of 2009 originating in Colgate Oklahoma and ties into Gulf South’s system near Bennington, Okla. Applied’s construction inspection services for this project and others have required a maximum level of some 40 inspectors and field staff. This project completed in June of 2009.

Energy Transfer/Barnett: Applied has worked throughout the Barnett for many years and for many companies. We have worked on several projects for ETC over this time period furnishing both inspection and engineering assistance. Some of the ETC projects Applied has furnished inspection services for are:

1) 21 miles of 36” Tolar to Cleburne including a power plant lake bore;

2) 54 mi of 24” Cleburne to Springtown; and

3) Numerous gathering interconnects in NW Barnett of some 100 miles.

Encana: Applied provides various inspection services for Encana throughout the US. Some of the inspection disciplines include:

1) Monitoring new construction for pipelines, plants, compressor stations and measurement facilities.

2) Inspection of DOT system upgrades for class location changes;

3) Injection facilities; and

4) A host of misc maintenance projects.

Our inspector staffing has routinely been between 10 to 70 Applied employees, depending on work load, for the last 3 years lending a definite level of consistency to desired goals achieved.

GMX Resources/Haynesville & Cotton Valley: Applied’s engineering department conducted detailed design for a 500MMSCFD, 18 unit single-stage Cat 3608 (2300HP) compressor station and will serve as project manager for the construction. The project also included six inlet pipelines, inlet separation, compression, SulfaTreat and four outlet pipelines. Applied also supplied design, engineering and pipeline inspection for six miles of 12” and 16” pipelines. Our contribution included project management, site plan, plot plan, foundations, P&ID, equipment specifications, piping design, and complete 3D compressor, vessel and piping drawings. The piping drawings included plan & elevation drawings, bill of materials and isometric drawings.

Tristate Midstream/Haynesville: Applied has provided plot plan & P&ID as-built drawings for six (6) compression, treating and dehydration facilities. We also provided the design and engineering of a 40 MMSCFD treating and dehydration facility. Engineering included project management, site plan, plot plan, foundations, P&ID, piping design, complete 3D vessel and piping drawings. The piping drawings included plan & elevation drawings, bill of materials and isometric drawings. We have also provided all the inspection services for these projects.

TGG Pipeline/Haynesville: Applied served as project manager providing engineering design and inspection services for a 12” HDD of the KCS Railroad along with 4.5 miles of 36” header pipeline. We also conducted the initial permitting process for a 36” dry bore of the same railway. Applied’s engineering department is presently providing the same services for a 23 mile extension of the pipeline and a 500MMSCFD, 4 unit Cat 3616 (4735hp) compressor station with treating and dehydration capability including 5 inlet pipelines and 3 sales connects. Engineering services include the complete basic design package (including those attributes noted in the GMX and Tri-State narratives above) as well as construction specifications to include a RFP for construction of the station.

TGG Pipeline/Haynesville: Included in the Basic Engineering Package are:

o Design Basis

o Block Flow Diagram & Plot Plan

o Specs for Eqpt, Piping, Elec, & Const.

o Project Schedule

o P&IDs

o Data for environmental permits

o Electrical One-Line Diagram & Plot

o Equipment List

o Instrument List

o Foundation Design

o Piping Drawings

o Bill of Materials

o Electrical Area Classification

o Power & Grounding

Petrologistics: Applied has served as project manager providing inspection services for 35 miles of 8” & 12” gas pipeline. Applied has also Project Managed and inspected over a Depropanizer plant that was built for around $46 million dollars. We have had as many as 35 inspectors and field staff with Petrologistics at one time to complete their projects.

Crosstex Energy: We have worked on several projects for Crosstex over the last 4 years furnishing both inspection and engineering assistance. Some of the Crosstex projects Applied has furnished inspection services for are:

1) 12 miles of 20” West Weatherford Loop Line

2) 10 miles of 8” & 10” Benbrook Line

3) Numerous ESB Systems and Compressor Stations

Chesapeake Energy – Barnett, Haynsville, Eagle Ford, Marcellus Shales: Applied has provided inspection and engineering services to Chesapeake in these main shale’s but also in several other remote locations. Applied Consultants has become a valued client of Chesapeake’s and has helped build gathering systems, Plants, Compressor Station, Meters, etc. Currently we have over 120 inspectors working throughout the United States for Chesapeake and still growing.