About Tellurian

Tellurian Inc. (Tellurian) is developing and plans to own and operate a portfolio of LNG marketing and infrastructure assets that includes an LNG terminal facility (the 'Driftwood terminal') and related pipelines. The Driftwood terminal and related pipelines are collectively referred to as the 'Driftwood Project.' The company also owns upstream natural gas assets; on February 6, 2024, the company announced that the company is exploring a sale of those assets. The company refers to the Driftwood Project and the company's upstream assets as the 'Business.' As of December 31, 2023, the company's upstream natural gas assets consisted of 30,034 net acres and interests in producing wells located in the Haynesville Shale trend of northern Louisiana. The company's Business may be developed in phases. As part of the company's execution strategy, which includes increasing the company's asset base, the company will consider various commercial arrangements with third parties across the natural gas value chain. The company is also pursuing activities, such as direct sales of LNG to global counterparties. The company remains focused on the financing and construction of the Driftwood Project. The company manages and reports its operations in three reportable segments. The Upstream segment is organized and operates to produce, gather, and deliver natural gas and to acquire and develop natural gas assets. The Midstream segment is organized to develop, construct and operate LNG terminals and pipelines. The Marketing & Trading segment is organized and operates to purchase and sell natural gas produced primarily by the Upstream segment, market the Driftwood terminal's LNG production capacity and trade LNG. Natural Gas Properties The company's natural gas assets consist of 30,034 net acres and interests in producing wells located in the Haynesville Shale trend of north Louisiana. For the year ended December 31, 2023, the company's average net production was approximately 198.6 MMcf/d. Production For the year ended December 31, 2023, the company produced 72,477 MMcf of natural gas. Acreage The company has 9,003 gross (7,950 net) developed leasehold acres that are held by production. Additionally, the company hold 23,090 gross (22,084 net) undeveloped leasehold acres. Of the total gross and net undeveloped acreage, 18,208 gross (17,688 net) acres are not held by production, of which 2,822 gross and net acres are set to expire in 2024 unless production is established within the spacing units covering the acreage prior to the expiration dates or unless such leasehold rights are extended or renewed. Gathering, Processing and Transportation As part of the company's acquisitions of natural gas properties, the company also acquired certain gathering systems that deliver the natural gas the company produces into third-party gathering systems. These systems and other available midstream facilities and services in the Haynesville Shale trend are adequate for the company's operations and near-term growth. Government Regulations The company's operations are subject to extensive federal, state and local statutes, rules, regulations, and laws that include, but are not limited to, the NGA, the Energy Policy Act of 2005 ('EPAct 2005'), the Oil Pollution Act, the National Environmental Policy Act ('NEPA'), the Clean Air Act (the 'CAA'), the Clean Water Act (the 'CWA'), the Resource Conservation and Recovery Act ('RCRA'), the Natural Gas Pipeline Safety Act of 1968, as amended and including the latest Pipeline Safety Improvement Act of 2002 (the 'PSIA'), and the Coastal Zone Management Act (the 'CZMA'), as amended from time to time. These statutes cover areas related to the authorization, construction and operation of LNG facilities, natural gas pipelines and natural gas producing properties, including discharges and releases to the air, land and water, and the handling, generation, storage and disposal of hazardous materials and solid and hazardous wastes. These laws are administered and enforced by governmental agencies including but not limited to FERC, the U.S. Environmental Protection Agency (the 'EPA'), DOE/FECM, the U.S. Department of Transportation ('DOT'), the Pipeline and Hazardous Materials Safety Administration ('PHMSA'), the Louisiana Department of Environmental Quality and the Louisiana Department of Natural Resources. Additionally, numerous other governmental and regulatory permits and approvals have been required to build and operate the company's Business, including, with respect to the construction and operation of the Driftwood Project, consultations and approvals by the Advisory Council on Historic Preservation, the USACE, the U.S. Department of Commerce, the National Marine Fisheries Service, the U.S. Department of the Interior, the U.S. Fish and Wildlife Service, and the U.S. Department of Homeland Security. Criminal and regulatory enforcement agencies, such as the U.S. Department of Justice have conducted investigations and have imposed criminal and civil penalties on other companies within the company's industry. The design, construction and operation of natural gas liquefaction facilities and pipelines, the export of LNG and the transportation of natural gas are highly regulated activities. In order to site, construct and operate the Driftwood Project, the company obtained authorizations from FERC under Section 3 and Section 7 of the NGA, as well as several other material governmental and regulatory approvals and permits. Driftwood LNG has authorization from the DOE/FECM to export LNG in a volume up to the equivalent of 1,415.3 Bcf per year of natural gas to FTA countries for a term of 30 years and to Non-FTA countries for a term through December 31, 2050. The construction and operation of the Driftwood Project are subject to federal permits, approvals and consultations required by other federal and state agencies, including DOT, the Advisory Council on Historic Preservation, the USACE, the U.S. Department of Commerce, the National Marine Fisheries Service, the U.S. Department of the Interior, the U.S. Fish and Wildlife Service, the EPA, and the U.S. Department of Homeland Security. Three significant permits that apply to the Driftwood Project are the USACE Section 404 of the CWA/Section 10 of the Rivers and Harbors Act Permit, the CAA Title V Operating Permit and the Prevention of Significant Deterioration Permit, of which the latter two permits are issued by the Louisiana Department of Environmental Quality. Each of the Driftwood terminal and related pipelines has received its permit from the USACE, including a review and approval by the USACE of the findings and conditions set forth in an Environmental Impact Statement and Record of Decision issued for the Driftwood terminal and [the related pipelines] pursuant to the requirements of NEPA. The Louisiana Department of Environmental Quality has issued the Prevention of Significant Deterioration permit, which is required to commence construction of the Driftwood terminal, as well as the Title V Operating Permit. NEPA and comparable state laws and regulations require that government agencies review the environmental impacts of proposed projects. On January 9, 2023, the CEQ published interim guidance for federal agencies on the consideration of greenhouse gas ('GHG') emissions and climate change under NEPA. On June 3, 2023, President Biden signed the Fiscal Responsibility Act of 2023, which amended NEPA with a goal of streamlining the NEPA process. On July 31, 2023, CEQ published proposed NEPA regulations to implement NEPA amendments that were part of the Fiscal Responsibility Act, to revise prior NEPA regulations, and improve efficiency and effectiveness of the environmental review process. The impact on the company of these and future developments in NEPA regulation and guidance is not determinable at this time, especially with respect to those aspects of the company's operations and development projects that may require future federal approvals. The Driftwood Project includes facilities and operations that are subject to the federal CAA and comparable state and local laws, including requirements to obtain pre-construction permits and operating permits. Certain aspects of the Driftwood terminal are subject to the requirements of the CZMA. The CZMA is administered by the states (in Louisiana, by the Department of Natural Resources). This program is implemented to ensure that impacts to coastal areas are consistent with the intent of the CZMA to manage the coastal areas. Certain facilities that are part of the Driftwood Project obtained permits for construction and operation in coastal areas pursuant to the requirements of the CZMA. The Driftwood Project is subject to the CWA and analogous state and local laws. The company's operations involve the use or handling of materials that include or may be classified as hazardous substances under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) or regulated under similar state statutes. Under the NEPA review process conducted by FERC, the company has been required to consult with federal agencies to determine limitations on and mitigation measures applicable to activities that have the potential to result in harm to threatened or endangered species of plants, animals, fish and their designated habitats. The company is subject to anti-corruption laws in various jurisdictions that prohibit bribery and corruption, such as the U.S. Foreign Corrupt Practices Act of 1977, as amended (the 'FCPA'), the U.K. Bribery Act 2010 and other anti-corruption laws. The company is also subject to laws that prohibit commercial bribery. The company is also subject to other laws and regulations governing the company's international operations, including regulations administered by the U.S. Department of Commerce's Bureau of Industry and Security, the U.S. Department of Treasury's Office of Foreign Assets Control, the U.K. Office of Financial Sanctions Implementation, and various international government entities, including applicable export control regulations, economic sanctions on countries and persons, customs requirements, currency exchange regulations, and transfer pricing regulations (collectively, 'Trade Control laws'). The company is also subject to the U.K. corporate criminal offenses for failure to prevent the facilitation of tax evasion pursuant to the Criminal Finances Act 2017, which imposes criminal liability on a company where it has failed to prevent the criminal facilitation of tax evasion by a person associated with the company. The company has instituted policies, procedures and ongoing training of employees designed to ensure that the company and its employees and agents comply with the FCPA, other anti-corruption laws, Trade Control laws and the Criminal Finances Act 2017. History Tellurian Inc. was incorporated in 1957.