> AltelaRain Solution

The AltelaRain^SM solution not only provides each customer with the technology required to successfully treat and purify highly challenged water (such as produced water), but also delivers a complete environmental permitting package, including treatment system permits, discharge and land application permits, and reclamation planning. Altela's unique multidisciplinary expertise, including in-house legal and engineering consulting services, provides a proven solution to produced water cost mitigation.

Through Altela's professional services division, the company has successfully acquired several precedent-setting environmental permits to discharge the cleaned water (for irrigation, livestock use, aquifer recharge and in-stream water right flows) – as well as provide it back to the customer for frac and other well completion needs. These permits include:

• -The first-ever approval in New Mexico to surface discharge treated, purified produced water for re-use,


• -The first-ever EPA-based approval for a centralized waste treatment facility to treat produced water for in-stream flow and aquifer recharge through the publicly owned treatment works (POTW),


• -The first-ever Navajo Nation environmental permit to surface discharge treated, purified produced water for irrigation, livestock and agricultural re-use,


• -Precedent-setting approval for beneficial reuse of treated, clean water in the Piceance Basin, and


• -The first-ever U.S. EPA-based approval to discharge treated, clean water into the Colorado River.

The AltelaRain^SM solution provides several distinct competitive advantages including:

Cost: The cost structure associated with building, installing, maintaining and servicing its equipment is significantly lower than the escalating costs associated with highly challenged brine and brackish water handling, including water hauling and re-injection.

Energy Use: Altela's technology allows it to desalinate/decontaminate highly brackish water and related brine streams, including produced water, using less than 30% of the energy of competitive distillation/concentration technologies. As an essentially passive system operating at ambient pressures and comparatively low temperatures, Altela's system has little of the energy loss associated with powering high pressure electrical pumps and other machinery typical in reverse osmosis (RO) and other membrane technologies.

On-Site Treatment: By treating and disposing brackish produced water on-site, Altela eliminates the cost and uncertainty of water hauling and assures continuous 24/7 production to the oil and gas well operator.

Universal Applicability: The AltelaRain^SM technology can treat extremely brackish water, including produced water, of varying chemistry and contaminate concentrations. Competing technologies such as RO cannot treat such brine streams with total dissolved solids (TDS) concentrations above 40,000 TDS, and require site specific pre- and post-treatment of these streams. The AltelaRain^SM technology has no TDS limitations and does not require pre- or post-treatment.

Environmental and Infrastructure Impact: Because the Altela treatment is done on-site, and the treated produced water or other brines are converted into extremely pure water that can be surface discharged (or be put to use wherever clean water is needed), Altela's service significantly mitigates the damage to transportation infrastructure from water hauling and potential environmental problems from spills and improper reinjection.

Water: The AltelaRain^SM technology creates pure water from PW that can be used at the well site for irrigation, stock watering, drilling "frac" water or other clean water uses. Altela converts produced water and other highly challenged brine water liabilities into clean water assets.