GWI - 2009Malta

Brookside Storage LLC At the Bethel Salt Dome

Anderson County, Texas

Presented by: Travis RussellRussell Drilling Co., Inc.

The Bethel Salt Dome is located 18 miles Northeast of Palestine, Texas

The facility will have a natural gas working capacity of 20 BCF with the ability to increase to 40 BCF.

It is ideally located with connections to several large pipelines serving the Barnett Shale and East Texas Production areas, as well as power plants, residential and industrial customers in the East Texas market.

Increasingly, there has developed a need for high deliverability in the marketplace. The residential and commercial demand can increase by a factor of 10 from summer to winter. Meanwhile, the increasing use of natural gas for power generation creates substantial demand during peak load periods in the summer.

• Having weather sensitive customers that require substantial amount of gas during periods of extreme weather, the Brookside facility in the Bethel Salt Dome will allow them to respond to those needs.

• The facility will inject gas during low customer needs, and withdraw during periods of high demand.

• In this way, salt dome storage provides a valuable balancing service to shift natural gas availability from times of excess to times of shortage.

The Brookside Facility will provide interconnection with four major

pipelines.

1. Enterprises2. Atmos3. Energy Transfer4. Anadarko

Brookside expects its first 10.0 BCF working phase to be operational in spring 2011. The second 10.0 BCF working phase is expected to be operational years later.

The Bethel Salt Dome is ideally suited for natural gas storage. The salt deposit is contiguous and impermeable to leakage. The caverns will be created using a solution mining process. *This is accomplished by drilling a well into the salt deposit and then pumping a stream of water down the well to dissolve away enough salt to create a cavern.

Each cavern will be approximately 320’ in diameter and 1560 ‘ tall. The top of each cavern will be located 3200 ‘ below the surface. This provides for a total volume of approximately 14.5 billion cubic feet of in each cavern. This will provide about 10 billion cubic feet of working natural gas storage in each cavern.

The Salt dome wells themselves will be constructed by setting 750’ of 48” casing. 950’ of 42”casing , and 3200’ of 36” casing. The casing will then be drilled out to 6,000 feet and solution mining commencing.

There is a need for about 4300 GPM of fresh water needed to proceed the solution mining. This will continue for about two years, with the casing being moved up or down as needed to wash out the cavern. 20” casing will be installed near the bottom of the salt for leaching operations. This pipe will be moved upward in the hole as the cavern is made larger.

• One 16” straight wall well was drilled nearby to about 500’ and a 16”x10” well drilled adjacent to a depth of 770’. The shallow well produced about 500 GPM and the deeper well produced 1000 GPM.

Electric Log

Studies are now being conducted by three different hydrologist firms to determine placement and the number of additional wells to be drilled.

Facilities are being constructed on site to perform the solution mining process. These consist of water supply and disposal wells, pumps, control valves, retention ponds, and piping to pump fresh water into the salt and subsequently prepare the brine for disposal.