This document discusses how the drought has affected Dow Chemical Company's business operations in Texas. It focuses on four Dow sites - Freeport, Seadrift-Victoria, Texas City, and Deer Park. At the Freeport site, which sources freshwater from the Brazos River, water quantity and quality were major issues during the drought. Dow Freeport has senior water rights but is still working on mitigation projects. The Seadrift-Victoria site sources from a stressed basin and also faced water quality and volume issues. Both sites are actively working on projects. The Texas City and Deer Park sites purchased water that was less impacted by the drought. The document provides details on Dow's large Freep

1. How the Drought Has
Affected Business
TWCA 68th Annual Convention
March 8, 2012
Gená Leathers
The Dow Chemical Company

2. Dow Texas Operations Sites Impacted
Freeport
 Freshwater is sourced from Brazos River.
 Water quantity and quality were significant issues for the site.
 Dow Freeport has some of the more senior water rights.
 Site continues working to develop projects to mitigate both short term and longer term risk .
Seadrift – Victoria
 Water is sourced from a water stressed water basin – Guadalupe and San Antonio Rivers
 This basin has a Water master.
 Lower flow Water quality was the primary issue for the site; however, as drought continued
volume was escalating as an issue.
 The site is actively working to develop projects to mitigate both short term and longer term.
Texas City
 Freshwater is purchase from Gulf Coast Water Authority (GCWA) and Water is sourced from
the Brazos River. GCWA has some of the more senior water rights.
 Texas City was at risk being impacted if GCWA was force to ration.
Deer park
 Freshwater is purchased from Coastal Water Authority (CWA) and Water is sourced from the
Trinity River . Water basin was less stressed than for facilities sourced from rivers further west
in Texas.

3. Freeport Drought Management
Texas Drought “Burning Platform”
“We Have A
• Freeport site has not experienced a severe, 1 in 30
Water Challenge” yr, drought event since the 1950s,
• Interruptible water no longer available
Brazos Immediately Upstream of Dow Basin continues to be in drought conditions with
For Much of Year 2011 substantially depleted reservoirs
Freeport Operation Has Not Curtailed Operations Due To Water Supply.

4. Dow Texas Operation, Freeport
The Largest Petrochemical Facility
Quick Facts
In The Western Hemisphere
3 Major Dow Complexes : Plant A, Plant B and Oyster Creek
- 65 production plants
- More than 5,000 acres
- More than 1900 buildings
- 8000+ Direct Jobs (Dow and contractors)
- > $450 M GDP per employee
- 5 to 15 jobs multiplier effect in Texas/US B
- 32 billion pounds/yr Production
- 44 percent of Dow's US products
- 21 percent of Dow's Global OC
Fence Line Partners Include: BASF, Shintech,
Nalco, SI Group, Others
Dow operations in Texas:
-contribute over $1 B to local Texas
economies where we operate
-pay in excess of $100 MM in state and
local taxes. A
-Dow purchases $2.5 B of Fuel and
hydrocarbon feed stocks from Texas/Gulf
Coast

5. Municipal Supply
Dow’s intake is the primary potable water supply
for Southern Brazoria County
Brazosport Water Authority (BWA) Supplies
freshwater to 7 Municipalities
 Clute, Freeport, Lake Jackson, Oyster
Creek, Quintana, Richwood, and Surfside Beach
 90,000 people
 2 Prison Systems
 Dow Plants A & B Potable Systems
 Multiple Industrial Users Directly or Indirectly

6. System Description
The Last Major Intake
on The River

7. Perception: The Brazos River Has Large Flows
Relative to Dow/Local Demand
Seawater Intrusion Upstream
Brazos River just up
stream of Rosharon
Brazos River at HWY Gage. Maximum
35 West of Angleton water depth is 15” in a
~12 ft section of river
Total with is ~ 40 ft
with most of flowing
stream < 5” deep
Measure Flow ~ 50 cfs

8. A Closer Look: 2009 and 2011
Purchased Water
220 cfs Normal Intake Short term spike
In flow from recent
rains
Dow pump rate = 290 cfs
Dow demand rate = ~220 cfs
Average Dow release rate = ~113 cfs

9. Freeport Drought Management
Demand Side:
Conservation Efforts
• General Conservation Measures (5.0%)
• Cooling Optimizations (4.0%)
• LJ WW Recycle (2.5%)
• Raw Water Alkalinity Treatment (2.8%)
New Technology
Supply Side:
New or alternative Freshwater Sources
Additional Reservoir Storage Capacity
Salt Water Barrier
WaterMaster