contact us at: Only available through retail insurance agents AmWINS Brokerage of Texas *Houston Business Insurance Agency Dominique Renaud

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1 Well Control Trends Have your Insurance Agent contact us at: Control of Well Insurance Program The industry shift to unconventional drilling and unconventional well completions has had the following effect on Well Control Risk: Increase in blowouts during well completions. Increase in blowouts involving communication between wells. Increase in blowouts caused by casing/cementing failure. Increase in blowouts caused by surface events. Only available through retail insurance agents AmWINS Brokerage of Texas Houston, TX In addition to the above blowout trends, the industry is also seeing: An increase in blowouts involving producing wells. An increase in blowouts involving plugged and abandoned wells. One Star Insurance Solutions, LLC Houston TX , *Appointed agent to contact

2 Oil & Gas Lease Operators are at significant risk for blowouts Blowout Case Studies Control of Well Insurance Program Features Key Risks Arising from Blowouts Include: Photo Michael Nelson Extinguishing any fire from any insured well caused by a well that is out of control. Expenses incurred in bringing the well under control. Re-drill and Extra Expense incurred to restore the well. Pollution & Clean-Up expenses Evacuation Underground Blowout Third Party Equipment Transfer risk with insurance! 1. During drilling, a pad well has a blowout that communicates with ih two other wells on the pad at the operator s drill site. 2. A non-owned well on another property blows out as a result of hd hydraulic fracturing during the completion of a well on an adjacent property by an operator. 3. Operator buys control of well insurance only for drilling & work over wells. A producing well has a significant blowout with high costs to the operator 4. Operator has a significant blowout which took a relief well to be drilled d to bi bring the well under control. Evacuation and surface pollution clean up costs were unexpected. Re-drill costs were significant. The operator was underinsured. 10% TAEP discount Fast Turn Around Flexible Options and Limits Experience Endorsed By Texas Alliance of Energy Producers Photo Michael Nelson

3 Care, Custody and Control Have your Insurance Agent contact us at: Oil and Gas Property Insurance Programs Oil & Gas Lease Operators can be responsible for all equipment at a well site that is in their Care, Custody, & Control. Completion contractors place expensive pieces of equipment in very close proximity to each other for the Hydraulic Fracturing process. It has been advised it is now possible to have over $100mm of equipment onsite. Liability for all of the equipment at the well site during the completion stage of a well is sometimes placed on the operator by the completion contractor through the Master Service Agreement. There have been documented un-insured losses due to this of over $30,000,000. An operator in this position who wants to manage this new risk with insurance; this new insurance product addresses those needs. Only available through retail insurance agents AmWINS Brokerage of Texas Houston TX service@hbicom.net One Star Insurance Solution, LLC Houston TX service@hbicom.net *Appointed AmWINS agents to contact

4 Oil Lease Property Insurance Rig Property Damage Terrorism Rig Property Damage insurance. The Terrorism Risk Insurance Act (TRIA) Broad insurance coverage and competitive enacted in 2002 requires all commercial pricing. property and casualty insurance policies to offer Terrorism coverage. Loss of Hire and Contingent Control of Well insurance available. TRIA coverage is very rarely purchased by the Oil & Gas industry due to the limited coverage that it offers. The dfiii definition of an Act of Terrorism by the government is the main limiting factor. Broad form All Risk Property Damage insurance including Business Interruption and Boiler and Machinery coverage. Eco Terrorism is an example of a form of Terrorism not covered by TRIA and an exposure all Oil & Gas operations could have. Acts of Sabotage are also not covered. This new Terrorism insurance product has much broader coverage and is designed for Oil & Gas operations Available for all Oil Lease Property and Control of Well risks. Photo Michael Nelson

5 About the Group The TAEP Workers Compensation Safety Group, the FIRST oil & gas safety group in the state, was founded in The Plan Administrator is One Star Insurance Solutions, LLC in Wichita Falls, Texas and the carrier is Texas Mutual Insurance, the number one writer of workers comp and safety groups in the state. The group is endorsed by the Texas Alliance of Energy Producers. TDI Classification codes allowed in the group are: 1321, 6202, 6203, 6206, 6213, 6214, 6216, 6233, 6237, 6238, 7515, 8113 and Benefits for the Client Premium discounts based on the group s written premium (currently at 10.9%) Potential purchasing group dividend* for qualifying members if a dividend is declared General policyholder dividends* for qualifying policyholders Loss prevention services industry-specific safety plans for group members The client retains his/her own experience modifier *Dividends are not guaranteed and past dividends are not a guarantee of future dividends. The Texas Department of Insurance must approve ALL dividend plans. Requirements for Membership Must be a member of the Texas Alliance of Energy Producers Must be in good standing with Texas Mutual Ask your agent why you are not in the Texas Alliance of Energy Producers Workers Comp Safety Group!

6 Your membership gives you: A Voice in Pro-Active Government Relations Programs Timely Information on Industry Trends & Government Action Immediate Returns By Cutting Your Business Costs Marketing Opportunities to Over 3,300 Members in 35 States Basic Membership $240 Benefits include: representation on pocketbook issues before the Railroad Commission, Texas Legislature, U.S. Congress and federal agencies; opportunity for personal involvement on committees; eligibility to serve on committees, Board or as an officer; opportunity to be a part of the Alliance s grass-roots lobbying network and be a player in developing policy in Washington and Austin; support of pro-industry candidates through the Alliance s political action program; participation in Alliance s pro-active public outreach program designed to change public attitudes toward the industry; subscription to monthly newsletter, NewsLine; subscription to monthly magazine, The American Oil and Gas Reporter; access to oil and gas price hotline; access to insurance programs (health, workers comp, liability, etc.) specifically designed for Alliance members; free issue of the Blue Book Membership Directory and Buyers Guide; free company listing in the Buyers Guide; and networking opportunities with the leading decision-makers in the oil patch. Corporate Membership* $325 In addition to receiving all of the benefits listed for Basic Members, Corporate members receive: opportunity to participate in special member delegations in Austin and Washington; Legislative briefings on state and federal issues and their impact on your company s bottom line; free issue of Texas Legislative Handbook; 10% additional discount on meetings, conferences and seminars; and special recognition in Membership Directory & Buyers Guide. Chairman s Roundtable* $1,250+ In addition to receiving all of the benefits of Basic and Corporate membership, the members of the Chairman s Roundtable will receive: special name tags at all meetings; special recognition in the Membership Directory and Buyers Guide; news for CEOs through the Exec Report newsletter; special luncheon briefings on issues; and free issue of U.S. Congressional Handbook; prestigious wall plaque * For each $100 in dues, you may name one associate member who receives all benefits of a Basic Membership Texas Alliance of Energy Producers Membership Form Please print the information below or attach a business card. Questions? Call (940) Name Title Company Address City/State/Zip Telephone Fax Membership Level: $ Send invoice/receipt Bill my MasterCard Bill my Visa Bill my AmExpress Credit Card # Exp Date (mo/yr) Name on card Mail form & payment to Texas Alliance of Energy Producers, th Street, Ste. 400, Wichita Falls, TX For federal income tax purposes, 64% of the Alliance s dues may be deductible as an ordinary and necessary business expense, but not as a charitable contribution.

7 $20,320,072 In Dividends Paid Back To Participants Of The Texas Alliance of Energy Producers Insurance Programs* Program Inception to Date Alliance Insurance Programs BITCO Insurance Company offers Property, General Liability (including underground resources, pollution, and saline substance contamination), Business Auto, Oil Lease Property and Umbrella Liability with special pricing and the potential for a Safety Group dividend*. Texas Mutual Insurance Company underwrites a Worker s Compensation Safety Group for Alliance members that provides significant savings on premiums with the potential for safety group dividends*. AmWINS Brokerage s Control of Well program offers a 10% discount for Alliance members. Also available is Care, Custody and Control Coverage, Oilfield Property, Rig Physical Damage and Upstream Equipment. BFHD Financial Services has 15% discounted rates including Employer s Liability and ERISA documents on the Occupational Accident Plan for those rejecting Worker s Comp. UmbrellEssentials, LLC has an Excess Coverage (Umbrella) Program for any General Liability and Business Auto policy with extremely competitive pricing. HR SOLUTIONS The Alliance has partnered with Monarch Employer Solutions to provide human resources solutions, payroll and tax solutions, worker s compensation in the TAEP Safety Group, and employee benefits and administration at 15% discount for Alliance members. Quote Process Appointed BITCO agents can make direct submission by asking for a quote in the Alliance Group. If you are insured by BITCO and are not in the program, ask your agent to put you in at next renewal. If your agent is not appointed with BITCO, have them contact Curtis Heptner at (940) Contact your agent and ask for a quote in the TAEP Worker s Comp Safety Group or contact Master Agent Curtis Heptner at (940) Quotes are only available through retail insurance agents. Be sure to have your agent note your membership in the Alliance for the plan discount. Insurance agents should contact Pascal Ray at AmWINS Brokerage for more information at or to Pascal.Ray@amwins.com. Have your agent contact David Hardee at (940) for more information on this Group Occupational Accident Plan. Have your agent contact Curtis Heptner at (940) or send submissions to submissions@umbrellessentials.com for a quote usually within hours. These services can be accessed through Monarch Employer Solutions; contact Steve Mills at (214) or through One Star Insurance Solutions, LLC; contact Curtis Heptner at (940) These programs are available through any appointed insurance agent of your choice. Get a quote even if you are not an Alliance member and join if you accept it. *Dividends are not guaranteed and past dividends are no guarantee of future dividends.