contribute to the GHG pollution. Following issuance of the Endangerment Finding, the EPA promulgated final motor
vehicle GHG emission standards on April 1, 2010. The EPA has asserted that the final motor vehicle GHG emission
standards will trigger construction and operating permit requirements for stationary sources. In addition, climate
change legislation is pending in the United States Congress. These developments may curtail production and demand for
fossil fuels such as oil and gas in areas of the world where our customers operate and thus adversely affect future
demand for our services, which may in turn adversely affect future results of operations. Additionally, legislation to
reduce greenhouse gases may have an adverse effect on our operations, including payment of additional costs due to
carbon emissions. Higher carbon emission activities include transportation, including marine vessels, cement produc-
tion (by third party suppliers), and electricity generation (by third party suppliers) as well as other activities. Finally, our
business could be negatively affected by climate change related physical changes or changes in weather patterns, which
could result in damages to or loss of our physical assets, impacts to our ability to conduct operations and/or disruption of
our customers’ operations.
Legislation may be introduced in the United States Congress that would authorize the EPA to regulate hydraulic
fracturing. In addition, a number of states are evaluating the adoption of legislation or regulations governing hydraulic
fracturing. Such legislation or regulations could reduce demand for pressure pumping services. If federal and/or state
legislation or regulations were enacted, it could adversely affect our financial condition, results of operations and cash
flows. We are unable to predict whether the proposed legislation, regulations, or any other proposals will ultimately be
enacted.
11
Part I, Item 1A
