COALESCING FILTERS

for the

Shale Gas Processing Industry

ED Barthelmes TM Filtration A leader in Gas Filtration Technology www.tmfiltration.com

1432 Walnut Street, Erie, PA 16502 email: [email protected]

Who is TM FILTRATION ?

 TM Filtration is a division of TM Industrial Supply, a provider of Custom Engineered Filtration Solutions.

 Over 35 years experience supplying filtration products to the world’s largest fluid treatment and engineering companies.

 17 Patents in the US and Foreign Countries  TM Products can be found in 78 countries and 6 continents

Statement of Problem

 Shale Gas is “Wetter” than conventional Natural Gas  Conventional Coalescing filters have high probability of contaminate carryover  Contaminate Carryover causes: * Damage to downstream components = added expense * Shut in situations = reduce revenue

FLOW INSIDE TO OUT REQUIRES UPSTREAM PRE-FILTER to ELIMINATE SLUGS & GROSS CONTAMINATE LIQUIDS COALESCE ON OUTLET SURACE OF ELEMENT FILTERED GAS FLOW EXPOSED TO CONTAMINATE = Source for CARRYOVER NGL CARRY OVER COMMON

TM ’s “NEW FLOW” GFM TECHNOLOGY

FLOW OUTSIDE TO IN POLYPROPYLENE MEMBRANE BARRIER ISOLATES CONTANINATE FROM GAS FLOW LIQUIDS COALESCE ON INNER SURFACE OF ELEMENT NO UPSTREAM PRE-FILTER REQUIRED FLOW ALLOWS FOR PLEATED ELEMENT AND LARGE SURFACE AREA COMPLETE NGL SEPARATION

Filter Design Comparison

Traditional Element Design GFM Technology Element Design Flow Inside to Outside Flow Outside to Inside

GFM COALESCING FILTER DESIGN

3rd Stage Coalescing Filter element 2 nd Stage Mist Separator 1st Stage Centrifugal Separator

TM’s INTEGRATED Multi Stage Filtration

FLOW PATTERN OUTSIDE OF ELEMENT , INWARD 1st Stage ELIMINATES LIQUID SLUGS AND GROSS CONTAMINATES 2 nd Stage MIST EXTRACTION FOR SEPARATING LIQUIDS OF MICRON SIZE THAT CREATE DROPLETS WHICH FALL OUT OF THE FLOW STREAM DUE TO GRAVITY 3 rd Stage COALESCING AND FINE PARTICULAE FILTRATION WITH GFM TECHNOLOGY ® CLEANED GAS IS NOT IN CONTACT WITH COALESCED CONTAMINATE

OPERATING COST PROJECTIONS

Capital Equipment cost Coalescing Filter Pre-Filter Installation Cost Total Equipment TM Filtration $ 65,000 1,500 $ 65,000 Competitor $ 65,000 45,000 3,000 $ 113,000 Element Cost Cost per element Number of elements per unit Operational Element Cost Element Change-out Cost Maintenance Cost for change-out ($50/hr) Number of change-outs per year Total Annual MAINTENANCE cost TOTAL 1 st YEAR COST OF FILTRATION $ 625 1 $ 625 $ 100 2 $ 1450 $ 66,450 Totally Clean $ 100 12 $ 1,200 $ 200 6 $ 8,400 $ 121,400 Partially Clean

TECHNOLOGY MATURITY

 PATENT Number 7,332,010  PROVEN SUCESSFUL SHALE GAS APPLICATION with Rice Energy/ Columbia Gas Transmission  Over 90 units in service on FUEL GAS CONDITIONING and COAL BED METHANE Applications since 2002  THIRD PARTY VALIDATION by GANNON UNIVERSITY

MARKET OVERVIEW

 GFM Technology Positioned to meet Shale Gas Application Requirements  Filtration Considered “Commodity” with short lead time  TM Filtration Reacting to Meet Market Demand  Manufacturing Units to have in Inventory for “OFF the Shelf” Delivery

TM’s VALUE PROPOSITION

• CLEANER GAS STREAMS • HIGHER % NGL RECOVERY • DECREASED TOTAL COST OF OPERATION TM Filtration 1432 Walnut Street, Erie PA 16502 814-456-1448 www.tmfiltration.com