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: ED_Barthelmes@tmfiltration.com 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 Flow Inside to Outside GFM Technology Element Design Flow Outside to Inside GFM COALESCING FILTER DESIGN TM’s INTEGRATED Multi Stage Filtration 3rd StageCoalescing Filter element 2nd StageMist Separator 1st StageCentrifugal Separator FLOW PATTERN OUTSIDE OF ELEMENT , INWARD 1st Stage ELIMINATES LIQUID SLUGS AND GROSS CONTAMINATES 2nd Stage MIST EXTRACTION FOR SEPARATING LIQUIDS OF MICRON SIZE THAT CREATE DROPLETS WHICH FALL OUT OF THE FLOW STREAM DUE TO GRAVITY 3rd 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 1,500 $ 65,000 Competitor $ 65,000 45,000 3,000 $ 113,000 $ $ $ 625 1 625 Element Change-out Cost Maintenance Cost for change-out ($50/hr) $ 100 $ Number of change-outs per year Total Annual MAINTENANCE cost 2 $ 1450 6 $ 8,400 TOTAL 1st YEAR COST OF FILTRATION $ 66,450 $ 121,400 Element Cost Cost per element Number of elements per unit Operational Element Cost TM Filtration $ 65,000 Totally Clean 100 12 $ 1,200 200 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 www.tmfiltration.com 814-456-1448