Letter From the President & CEO

Advancements in Our Mission to Clean Up Energy℠

For Milestone Environmental Services, 2021 was a groundbreaking year. We made great strides using carbon data to quantify, verify, and attribute the carbon we sequester in our energy waste division so that our customers can have a clear understanding of the carbon benefit of sending their waste to us. In 2021, we sequestered an average of over 750 metric tons of CO2 per day through our slurry injection process.

And as a testament to our mission to Clean Up Energy, we created a new business within Milestone – Milestone CarbonTM – in 2021 to develop a portfolio of prospective CO2 sequestration sites near high-purity industrial emitters and existing infrastructure.

Last year Milestone published its inaugural Sustainability Report, which highlighted our activities in 2020. During that year, we worked with third-party engineering firms to calculate our own carbon footprint, which is meaningfully negative. We showed that Milestone is removing hundreds of thousands of metric tons of carbon from the atmosphere per year by permanently sequestering hydrocarbon-rich waste streams produced by the oil and gas industry. These findings were eye-opening to our customers and helped some operators make the wise decision to move away from risky onsite methods of energy waste disposal.

+ It’s a great start. Now it’s time to take the next steps.

Throughout 2021, we deepened our understanding of the carbon we sequester. Through accelerated sampling protocols and careful tracking of carbon quantities in the waste we handle, we have dramatically advanced our data. We now have clearer visibility into the origins of the carbon in our injection streams, and we’re able to report consistent, reliable data directly from our accounting system, so each customer can see their respective carbon savings by using our advanced proprietary methods.

+ Hydrocarbons remain essential, which makes Milestone indispensable.

Momentum continues to grow in the energy evolution, and oil and gas remains critical to the global economy. They fuel our transportation, our supply chains, and the creation of products that enable modern life. Global supplies of oil and gas have become less abundant and less certain due to years of underinvestment and policymaking that inhibits fossil fuel development. These factors have been exacerbated by geopolitical instability and war, putting the onus on U.S. operators to provide secure, sustainable energy – while reducing carbon.

Milestone is a ready partner to help operators succeed. We help our customers maintain the critical social license to operate in today’s environmentally-conscious environment. Those who regularly dumped their energy waste on-lease via reserve pits and landfarming now have a better option. They’re doing better business, reducing their carbon footprint and their liability because of it. Last year, we highlighted how on-lease disposal methods contribute meaningfully to operators’ Scope 1 emissions. By using third parties to manage their waste, operators are able to move emissions from Scope 1 to Scope 3, but this doesn’t solve the carbon problem. By sending waste to Milestone, they can instead eliminate these emissions entirely, because we geologically sequester the carbon permanently. With us they gain confidence that their waste and liability have been professionally removed, and the data we give them is consistent, reliable, and replicable. You will see this higher level of data precision reflected throughout the pages of this report.

+ We never stop developing, improving, and striving to accomplish our mission.

Milestone will continue to advance forward-thinking environmental infrastructure to serve the industries that help our economy thrive. Through proper management of energy waste, sequestration of carbon, and other developments, Milestone will relentlessly pursue its mission to Clean Up Energy.

Gabriel J. Rio, President & Chief Executive Officer