Eureka Meets or Exceeds Pennsylvania Regulations for Treatment of Marcellus Shale Wastewater

Eureka Resources, LLC, said today that the Company is prepared to meet or exceed new standards proposed by the Pennsylvania Department of Environmental Protection (DEP) for treatment of oil and gas wastewater, including drilling and production fluids and tophole and flowback water.

According to Eureka President Dan Ertel, the Company has reviewed the DEP's proposed new regulations published August 6, 2011, in the Pennsylvania Bulletin. Ertel said the new regulations state that oil and gas wastewater that has been processed under the authority of this general permit is not considered a waste as defined in 25Pa. Code287.1 provided it meets the concentration limits as required in this general permit and is transported and stored under the control of a drilling company in an impoundment or similar structure designed to hold water prior to use for fracturing a gas or oil well. The department has also proposed revised testing, monitoring and handling standards which must be met by the treatment facilities and producers handling these types of wastewater.

"We are pleased that the DEP is taking a proactive role in monitoring and regulating activity in the Marcellus Shale Region and is encouraging the use of the best available technology for water treatment and recycling," Mr. Ertel said. "These changes will result in reductions to the environmental hazards associated with storage of large quantities of partially- treated wastewater stored throughout the state."

Eureka is playing an important role in addressing the needs of Marcellus Shale natural gas operators by providing an environmentally-sustainable method for handling flowback water from hydrofracturing and produced water from drilling operations.