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Atlas_2013_Fall_Newsletter_Mech.qxd:Layout 1

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Editorial Staff: Marci F. Bleichmar, Executive Vice President, Marketing Jack L. Hollander, Executive Vice President, Direct Participation Programs Bruce Bundy, Regional Marketing Director, Great Plains Vicki Burbridge, Regional Marketing Director, Pacific West Barry Dow, Regional Marketing Director, Mid-Atlantic Andrew Eisen, Regional Marketing Director, Northeast Robert Gourlay, Regional Marketing Director, Southeast Neil Nakagawa, Regional Marketing Director, West Jeff Smith, Regional Marketing Director, East Paul Tencer, Regional Marketing Director, Midwest Nancy Hiler, Managing Editor Karen Morstad & Associates, Designer We welcome your comments/questions. Contact investorservices@atlasenergy.com or 800-251-0171 option 3.

Atlas’ Environmental Outreach – Headwaters Update Another recent example of Atlas Energy’s ongoing local environmental outreach, as reported in these pages a year ago, Atlas Resource Partners, L.P. (ARP) became the first company in the oil and gas industry to become a founding partner in the Headwaters Conservation Partnership (HCP) program.

The study marked the first time that a drilling company let government scientists inject special tracers into the fracking fluid and then continue regular monitoring to see whether it spread toward drinking water sources, according to the statement. The research is being done at a drilling site in Greene County, which is southwest of Pittsburgh and adjacent to West Virginia. Eight new Marcellus Shale horizontal wells were monitored seismically and one was injected with four different man-made tracers at different stages of the fracking process, which involves setting off small explosions to break the rock apart. The scientists also monitored a separate series of older gas wells that are about 3,000 feet above the Marcellus to see if the fracking fluid reached up to them. Kathryn Klaber, CEO of the Marcellus Shale Coalition, called the study "great news." Klaber was quoted as saying, "It's important that we continue to seek partnerships that can study these issues, and inform the public of the findings."

Energy NewsLine is published by Atlas Resources, LLC

page 3 • •

Natural Gas Inventories to Rise U.S. Natural Gas Production Hits Record High

Natural Gas Increasingly Replacing Coal page 2

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New Center for Sustainable Shale MLPS, Energy Markets Predominate Development, A Collaborative Effort Atlas’ Environmental Outreach – Headwaters Update

Study Finds Fracking Has No Impact on Drinking Water

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page 1

IN THIS ISSUE:

T H E Q U A R T E R LY N E W S L E T T E R F O R T H E AT L A S I N V E S T M E N T C O M M U N I T Y

ENERGY NEWSLINE

Compliments: Michael French from the American Chestnut Foundation

This program is sponsored by the non-profit Headwaters Resources Conservation & Development Council (HRC&D), which promotes the quality of life in north central Pennsylvania by restoring, protecting and enhancing the area’s natural and cultural resources. Since our joining this worthy group, HCP has spearheaded several impressive new partnerships and projects, including:

Volume 16 – Issue 3 • Fall 2013

• Bennett’s Branch American Chestnut - Reforestation Project, Elk County, PA. This project was a collaborative effort to reforest 30 acres of reclaimed mined land, with volunteers planting more than 20,000 blight-resistant American chestnut trees and other native species. • Troyer 2 Erosion Control, Potter County, PA. A previously stalled erosion control project was completed on the east branch of the Genesee River, including installation of eight multi-log vane deflectors and a 200-foot-long mudsill, greatly reducing soil erosion and providing additional habitat for fish and other aquatic organisms. • Environmental Education Materials, McKean & Cameron Counties. Educational materials were provided, including a “My Growing Tree Program” for 1st and 2nd graders, and the 2013 “Wild” Envirothon environmental competition for high school students. ▲

Also, according to the trade magazine Environmental Leader, a Duke University study of wells near shale gas drilling sites in Fayetteville, Arkansas, published in May 2013 also found no groundwater contamination. Low levels of methane found in samples were mostly from biological activity inside shallow aquifers, not from shale gas production contamination, scientists reportedly concluded. The industry and many state and federal regulators have long contended that fracking itself won't contaminate surface drinking water because of the extreme depth of the gas wells. Most are more than a mile underground, while drinking water aquifers are usually within 500 to 1000 feet of the surface, the AP report said. SOURCES: The Associated Press, and the Environmental Leader.

Landmark DOE Study Finds Fracking Has No Impact on Drinking Water A landmark federal study on hydraulic fracturing, or fracking, found no evidence that chemicals in fluids injected into the ground during the natural gas drilling process moved up to contaminate drinking water aquifers at a western Pennsylvania drilling site, the Department of Energy recently told the Associated Press. For the past year, researchers at the DOE’s National Energy Technology Laboratory (NETL) have monitored a fracking site in western Pennsylvania, southwest of Pittsburgh. In July 2013, the researchers announced their preliminary findings that the chemical-laced fluids used to free gas trapped deep below the surface stayed thousands of feet below the shallower areas that supply drinking water, geologist Richard Hammack told the AP.

Park Place Corporate Center One 1000 Commerce Drive, Suite 410 Pittsburgh, PA 15275

These fluids were injected into wellbores more than 8,000 feet below the surface and were not detected 3,000 feet higher. That means the drilling fluids remained about a mile away from drinking water supplies, the AP reported.

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Atlas’ Environmental Outreach – Headwaters Update

The study marked the first time that a drilling company let government scientists inject special tracers into the fracking fluid and then continue regular monitoring to see whether it spread toward drinking water sources, according to the statement. The research is being done at a drilling site in Greene County, which is southwest of Pittsburgh and adjacent to West Virginia.

Another recent example of Atlas Energy’s ongoing local environmental outreach, as reported in these pages a year ago, Atlas Resource Partners, L.P. (ARP) became the first company in the oil and gas industry to become a founding partner in the Headwaters Conservation Partnership (HCP) program.

Eight new Marcellus Shale horizontal wells were monitored seismically and one was injected with four different man-made tracers at different stages of the fracking process, which involves setting off small explosions to break the rock apart. The scientists also monitored a separate series of older gas wells that are about 3,000 feet above the Marcellus to see if the fracking fluid reached up to them. Kathryn Klaber, CEO of the Marcellus Shale Coalition, called the study "great news." Klaber was quoted as saying, "It's important that we continue to seek partnerships that can study these issues, and inform the public of the findings."

Energy NewsLine is published by Atlas Resources, LLC

9/13/13

Editorial Staff: Marci F. Bleichmar, Executive Vice President, Marketing Jack L. Hollander, Executive Vice President, Direct Participation Programs Bruce Bundy, Regional Marketing Director, Great Plains Vicki Burbridge, Regional Marketing Director, Pacific West Barry Dow, Regional Marketing Director, Mid-Atlantic Andrew Eisen, Regional Marketing Director, Northeast Robert Gourlay, Regional Marketing Director, Southeast Neil Nakagawa, Regional Marketing Director, West Jeff Smith, Regional Marketing Director, East Paul Tencer, Regional Marketing Director, Midwest Nancy Hiler, Managing Editor Karen Morstad & Associates, Designer We welcome your comments/questions. Contact investorservices@atlasenergy.com or 800-251-0171 option 3.

Atlas_2013_Fall_Newsletter_Mech.qxd:Layout 1

page 3 • •

Natural Gas Inventories to Rise U.S. Natural Gas Production Hits Record High

Natural Gas Increasingly Replacing Coal page 2

page 2

New Center for Sustainable Shale MLPS, Energy Markets Predominate Development, A Collaborative Effort page 1

page 1

Study Finds Fracking Has No Impact on Drinking Water

Atlas’ Environmental Outreach – Headwaters Update

IN THIS ISSUE:

T H E Q U A R T E R LY N E W S L E T T E R F O R T H E AT L A S I N V E S T M E N T C O M M U N I T Y

Also, according to the trade magazine Environmental Leader, a Duke University study of wells near shale gas drilling sites in Fayetteville, Arkansas, published in May 2013 also found no groundwater contamination. Low levels of methane found in samples were mostly from biological activity inside shallow aquifers, not from shale gas production contamination, scientists reportedly concluded.

Compliments: Michael French from the American Chestnut Foundation

This program is sponsored by the non-profit Headwaters Resources Conservation & Development Council (HRC&D), which promotes the quality of life in north central Pennsylvania by restoring, protecting and enhancing the area’s natural and cultural resources.

The industry and many state and federal regulators have long contended that fracking itself won't contaminate surface drinking water because of the extreme depth of the gas wells. Most are more than a mile underground, while drinking water aquifers are usually within 500 to 1000 feet of the surface, the AP report said.

ENERGY NEWSLINE

Since our joining this worthy group, HCP has spearheaded several impressive new partnerships and projects, including: • Bennett’s Branch American Chestnut - Reforestation Project, Elk County, PA. This project was a collaborative effort to reforest 30 acres of reclaimed mined land, with volunteers planting more than 20,000 blight-resistant American chestnut trees and other native species. • Troyer 2 Erosion Control, Potter County, PA. A previously stalled erosion control project was completed on the east branch of the Genesee River, including installation of eight multi-log vane deflectors and a 200-foot-long mudsill, greatly reducing soil erosion and providing additional habitat for fish and other aquatic organisms. • Environmental Education Materials, McKean & Cameron Counties. Educational materials were provided, including a “My Growing Tree Program” for 1st and 2nd graders, and the 2013 “Wild” Envirothon environmental competition for high school students. ▲

SOURCES: The Associated Press, and the Environmental Leader.

Volume 16 – Issue 3 • Fall 2013

Landmark DOE Study Finds Fracking Has No Impact on Drinking Water A landmark federal study on hydraulic fracturing, or fracking, found no evidence that chemicals in fluids injected into the ground during the natural gas drilling process moved up to contaminate drinking water aquifers at a western Pennsylvania drilling site, the Department of Energy recently told the Associated Press. For the past year, researchers at the DOE’s National Energy Technology Laboratory (NETL) have monitored a fracking site in western Pennsylvania, southwest of Pittsburgh. In July 2013, the researchers announced their preliminary findings that the chemical-laced fluids used to free gas trapped deep below the surface stayed thousands of feet below the shallower areas that supply drinking water, geologist Richard Hammack told the AP. These fluids were injected into wellbores more than 8,000 feet below the surface and were not detected 3,000 feet higher. That means the drilling fluids remained about a mile away from drinking water supplies, the AP reported.

1

Park Place Corporate Center One 1000 Commerce Drive, Suite 410 Pittsburgh, PA 15275


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MLPS, Energy Markets Predominate Master Limited Partnerships (MLPs) have become an increasingly popular way to invest in the significant growth in the North American energy sector. From 2000 to 2012, the total return for MLPs was 492%, as represented by the Alerian MLP Index. Due to the unique MLP requirements of the tax code, MLPs are predominantly involved in the energy markets.

MLPs by Industry Group – 2013 Energy and Natural Resources 83% Other Businesses 3%

MLPs Defined Investment/Financial 10%

By definition, a master limited partnership (MLP) is a limited partnership that is publicly traded. A limited partnership is a business structure in which ownership is shared among partners, but in which limited partners take no part in day-to-day management operations and are not personally liable for any amount beyond their original investment in the partnership. MLPs combine the affordability and liquidity of corporate stocks and bonds with the advantages of investing in a partnership. A share in an MLP is called a unit, and unitholders who own MLP units are limited partners.

Real Estate (incl. mortgage securities) 4%

Source: NAPTP

grow, MLP prices tend to trade higher. So that means a low, double-digit total return expectation for the next year. That is exactly what MLPs were designed to produce.”

Energy Markets Due to the unique MLP requirements of the tax code, MLPs are predominantly involved in the energy markets. Of the roughly 120 MLPs trading on major exchanges with total market capital of over $440 billion as of June 2013, an estimated 83% of the total, over $365 billion, is attributable to energy and natural resources MLPs, according to the NAPTP. Most of these are in oil and gas-related businesses, particularly in the midstream sector, which gathers, processes, transports, and stores oil, natural gas, and refined petroleum products. There are also many MLPs engaged in the production of oil and natural gas, distribution of propane and other refined fuel, coal and other mining, and marine transportation of petroleum products. ▲

MLPs generally provide consistent streams of cash flow in the form of quarterly distributions and growth. By all accounts, this has been one of the best performing asset classes over the past decade due to the combination of attractive yields and tax advantages, making for a total return value proposition. In general, MLPs are structured so that unitholders benefit from favorable tax treatment on any partnership income received, due to tax-deferred distributions.

SOURCES: The National Association of Publicly Traded Partnerships, and “Boom... or Bust? Master limited partnerships have benefited from low rates and an energy boom. But what's next?,” Barron’s, August 10, 2013. NOTE: The above information contains forward-looking statements that involve a number of assumptions, risks and uncertainties that could cause actual results to differ materially from those noted and is not a guarantee of future performance. Such forward-looking statements include, but are not limited to, statements about future financial and operating results, resource potential, the company's plans, objectives, expectations and intentions and other statements that are not historical facts. Risks, assumptions and uncertainties could cause actual results to materially differ.

While individual MLP total returns have exceeded 20% in some cases, as a market, total returns for MLPs average 6% today, according to a August 10, 2013 article in Barron’s. “The average current yield is around 6%, and we believe that MLPs can grow their distributions in the neighborhood of 6% to 8%,” the article stated. “When distributions

New Center for Sustainable Shale Development, A Collaborative Effort The CSSD is comprised of four gas producers, including Chevron, major environmental groups including the Environmental Defense Fund, the Clean Air Task Force, and the Pennsylvania Environmental Council, as well as the philanthropic partners William Penn Foundation and Heinz Endowments.

What do four energy giants, five national, state and regional environmental groups and two philanthropic foundations have in common? Very little, it seemed, until recently, when these divergent groups formed a consortium known as the Center for Sustainable Shale Development (CSSD) to create rigorous environmental standards for companies developing the Marcellus Shale and other Appalachian formations. Earlier this year, the CSSD announced that it had developed 15 initial performance standards for operators that are protective of air quality, water resources, and climate, which for shale gas development that, in large part, exceed regulatory requirements found in the Appalachian Basin states.

Market Watch: Natural Gas Natural Gas Inventories to Rise The main factors affecting inventory needs are usage, such as that by electricity generation plants, and heating needs due to the mildness or severity of winter weather. A major factor in meeting these needs is, of course, storage of natural gas inventories. Natural gas inventories are expected to total about 3,800 billion cubic feet (bcf) by October 31, 2013, the nominal end of the summer season, the U.S. Energy Information Administration (EIA) reports. Of course, additional inventories of natural gas into storage often continue into November, depending on weather and storage levels at the time. To meet their target storage inventory levels for the start of the 2013/14 winter, many local distribution companies will need to increase the amount of natural gas they have in underground storage fields this summer compared to last summer, the EIA reports. The EIA report notes that end of Summer 2013 natural gas storage rates should come to outpace last year's levels because aggregate storage at the April 1 start of the storage season was 31% lower than in 2012, despite the fact that storage was unusually high after an extremely mild winter. Additionally, so far this season, higher natural gas production and lower gas use for power generation have contributed to more inventory compared to 2012. Use of natural gas for power generation was about 20% less than last year during the second quarter of 2013 (April, May, and June), and the EIA Short-Term Energy Outlook (STEO) projects third-quarter consumption will average about 12% less than in the same quarter of 2012.

Also, the lowest Spring natural gas prices in 10 years boosted natural gas use for electricity generation, as generators substituted natural gas for coal by changing the dispatch order of their generation plants. ▲ SOURCES: Energy Information Administration’s 2013 Natural Gas Monthly and ShortTerm Energy Outlook.

Projected Natural Gas Inventories Lower 48 States

U.S. Natural Gas Production Hits Record High

billion cubic feet (bcf) 4,500 4,000 demonstrated peak capacity = 4,265 bcf 3.500 3,000 2,500 2,000 1,500 1,000 500 current inventories high and low injection seasons STEO projections 0 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13

U.S. natural gas production is projected to exceed 70 billion cubic feet per day for the very first time in 2013, the Energy Information Administration (EIA) has estimated, a record high. This is based on reports that both increased onshore reserves and higher prices will be seen this year. Specifically, daily output for domestic natural gas will reach 70.01 billion cubic feet per day (bcfd), up from its estimate in May of 69.9 billion, the EIA reported in June 2013. The EIA reports that it expects output to be up a total of 1.2 percent from the record-breaking levels of 2012 and that 2013 gas demand will also rise from 2012 levels.

Source: EIA

“These standards represent consensus on what is achievable and protective of human health and the environment,” the CSSD announcement said.

What distinguishes the CSSD performance standards from those conceived by many trade association guidelines or industry bestpractices is that those companies that adopt CSSD standards will be awarded certification only if they pass a comprehensive, independent third-party audit for compliance. ▲

The Washington Post editorial board said the Pittsburgh, Pennsylvaniabased CSSD represented “a heartening breakthrough in the war over fracking: a handful of major green groups and big drillers agreed on environmental standards.”

Sources: Pittsburgh Quarterly; www.pittsburghtoday.com;The Washington Post, March 23, 2013; https://www.sustainableshale.org; Oil & Gas Journal, and the Philadelphia Inquirer.

2

The chart above shows the EIA's projection of how much natural gas will likely be injected into storage by November 2013, along with EIA's estimate of the demonstrated peak capacity, and representative profiles of seasons that had relatively higher (2003) and lower (2006) injections.

U.S. Factors Many determining factors contribute to the EIA’s stringent analysis of these estimates, including weather, exports and imports, natural gas prices, and domestic shale exploration. ▲

Two key factors affected injections during summer 2012— starting inventories and gas use for power. Injections were historically low last summer because the warmest winter in 60 years left end-of-season inventories at record highs.

Sources: Energy Information Administration’s 2013 Natural Gas Monthly and ShortTerm Energy Outlook.

3


Atlas_2013_Fall_Newsletter_Mech.qxd:Layout 1

9/13/13

4:10 PM

Page 2

MLPS, Energy Markets Predominate Master Limited Partnerships (MLPs) have become an increasingly popular way to invest in the significant growth in the North American energy sector. From 2000 to 2012, the total return for MLPs was 492%, as represented by the Alerian MLP Index. Due to the unique MLP requirements of the tax code, MLPs are predominantly involved in the energy markets.

MLPs by Industry Group – 2013 Energy and Natural Resources 83% Other Businesses 3%

MLPs Defined Investment/Financial 10%

By definition, a master limited partnership (MLP) is a limited partnership that is publicly traded. A limited partnership is a business structure in which ownership is shared among partners, but in which limited partners take no part in day-to-day management operations and are not personally liable for any amount beyond their original investment in the partnership. MLPs combine the affordability and liquidity of corporate stocks and bonds with the advantages of investing in a partnership. A share in an MLP is called a unit, and unitholders who own MLP units are limited partners.

Real Estate (incl. mortgage securities) 4%

Source: NAPTP

grow, MLP prices tend to trade higher. So that means a low, double-digit total return expectation for the next year. That is exactly what MLPs were designed to produce.”

Energy Markets Due to the unique MLP requirements of the tax code, MLPs are predominantly involved in the energy markets. Of the roughly 120 MLPs trading on major exchanges with total market capital of over $440 billion as of June 2013, an estimated 83% of the total, over $365 billion, is attributable to energy and natural resources MLPs, according to the NAPTP. Most of these are in oil and gas-related businesses, particularly in the midstream sector, which gathers, processes, transports, and stores oil, natural gas, and refined petroleum products. There are also many MLPs engaged in the production of oil and natural gas, distribution of propane and other refined fuel, coal and other mining, and marine transportation of petroleum products. ▲

MLPs generally provide consistent streams of cash flow in the form of quarterly distributions and growth. By all accounts, this has been one of the best performing asset classes over the past decade due to the combination of attractive yields and tax advantages, making for a total return value proposition. In general, MLPs are structured so that unitholders benefit from favorable tax treatment on any partnership income received, due to tax-deferred distributions.

SOURCES: The National Association of Publicly Traded Partnerships, and “Boom... or Bust? Master limited partnerships have benefited from low rates and an energy boom. But what's next?,” Barron’s, August 10, 2013. NOTE: The above information contains forward-looking statements that involve a number of assumptions, risks and uncertainties that could cause actual results to differ materially from those noted and is not a guarantee of future performance. Such forward-looking statements include, but are not limited to, statements about future financial and operating results, resource potential, the company's plans, objectives, expectations and intentions and other statements that are not historical facts. Risks, assumptions and uncertainties could cause actual results to materially differ.

While individual MLP total returns have exceeded 20% in some cases, as a market, total returns for MLPs average 6% today, according to a August 10, 2013 article in Barron’s. “The average current yield is around 6%, and we believe that MLPs can grow their distributions in the neighborhood of 6% to 8%,” the article stated. “When distributions

New Center for Sustainable Shale Development, A Collaborative Effort The CSSD is comprised of four gas producers, including Chevron, major environmental groups including the Environmental Defense Fund, the Clean Air Task Force, and the Pennsylvania Environmental Council, as well as the philanthropic partners William Penn Foundation and Heinz Endowments.

What do four energy giants, five national, state and regional environmental groups and two philanthropic foundations have in common? Very little, it seemed, until recently, when these divergent groups formed a consortium known as the Center for Sustainable Shale Development (CSSD) to create rigorous environmental standards for companies developing the Marcellus Shale and other Appalachian formations. Earlier this year, the CSSD announced that it had developed 15 initial performance standards for operators that are protective of air quality, water resources, and climate, which for shale gas development that, in large part, exceed regulatory requirements found in the Appalachian Basin states.

Market Watch: Natural Gas Natural Gas Inventories to Rise The main factors affecting inventory needs are usage, such as that by electricity generation plants, and heating needs due to the mildness or severity of winter weather. A major factor in meeting these needs is, of course, storage of natural gas inventories. Natural gas inventories are expected to total about 3,800 billion cubic feet (bcf) by October 31, 2013, the nominal end of the summer season, the U.S. Energy Information Administration (EIA) reports. Of course, additional inventories of natural gas into storage often continue into November, depending on weather and storage levels at the time. To meet their target storage inventory levels for the start of the 2013/14 winter, many local distribution companies will need to increase the amount of natural gas they have in underground storage fields this summer compared to last summer, the EIA reports. The EIA report notes that end of Summer 2013 natural gas storage rates should come to outpace last year's levels because aggregate storage at the April 1 start of the storage season was 31% lower than in 2012, despite the fact that storage was unusually high after an extremely mild winter. Additionally, so far this season, higher natural gas production and lower gas use for power generation have contributed to more inventory compared to 2012. Use of natural gas for power generation was about 20% less than last year during the second quarter of 2013 (April, May, and June), and the EIA Short-Term Energy Outlook (STEO) projects third-quarter consumption will average about 12% less than in the same quarter of 2012.

Also, the lowest Spring natural gas prices in 10 years boosted natural gas use for electricity generation, as generators substituted natural gas for coal by changing the dispatch order of their generation plants. ▲ SOURCES: Energy Information Administration’s 2013 Natural Gas Monthly and ShortTerm Energy Outlook.

Projected Natural Gas Inventories Lower 48 States

U.S. Natural Gas Production Hits Record High

billion cubic feet (bcf) 4,500 4,000 demonstrated peak capacity = 4,265 bcf 3.500 3,000 2,500 2,000 1,500 1,000 500 current inventories high and low injection seasons STEO projections 0 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13

U.S. natural gas production is projected to exceed 70 billion cubic feet per day for the very first time in 2013, the Energy Information Administration (EIA) has estimated, a record high. This is based on reports that both increased onshore reserves and higher prices will be seen this year. Specifically, daily output for domestic natural gas will reach 70.01 billion cubic feet per day (bcfd), up from its estimate in May of 69.9 billion, the EIA reported in June 2013. The EIA reports that it expects output to be up a total of 1.2 percent from the record-breaking levels of 2012 and that 2013 gas demand will also rise from 2012 levels.

Source: EIA

“These standards represent consensus on what is achievable and protective of human health and the environment,” the CSSD announcement said.

What distinguishes the CSSD performance standards from those conceived by many trade association guidelines or industry bestpractices is that those companies that adopt CSSD standards will be awarded certification only if they pass a comprehensive, independent third-party audit for compliance. ▲

The Washington Post editorial board said the Pittsburgh, Pennsylvaniabased CSSD represented “a heartening breakthrough in the war over fracking: a handful of major green groups and big drillers agreed on environmental standards.”

Sources: Pittsburgh Quarterly; www.pittsburghtoday.com;The Washington Post, March 23, 2013; https://www.sustainableshale.org; Oil & Gas Journal, and the Philadelphia Inquirer.

2

The chart above shows the EIA's projection of how much natural gas will likely be injected into storage by November 2013, along with EIA's estimate of the demonstrated peak capacity, and representative profiles of seasons that had relatively higher (2003) and lower (2006) injections.

U.S. Factors Many determining factors contribute to the EIA’s stringent analysis of these estimates, including weather, exports and imports, natural gas prices, and domestic shale exploration. ▲

Two key factors affected injections during summer 2012— starting inventories and gas use for power. Injections were historically low last summer because the warmest winter in 60 years left end-of-season inventories at record highs.

Sources: Energy Information Administration’s 2013 Natural Gas Monthly and ShortTerm Energy Outlook.

3


Atlas Resources, LLC - Energy Newsline - Q3 2013