/ . ... Jo

NEW MEXICO OIL CONSERVATION DIVISION;

- Engineering Bureau * 1220 South St Francis Drive, Santa Fe, NM 87505" ,

ADMINISTRATIVE APPLICATION CHECKLIST •' THIS CHECKLIST IS MAWDATORt FOR ALL ADMINISTRATIVE APPLICATIONS FOR EXCEPTIONS TO 0W15K3N RULES AW) REGULAT10H3

.' V*ICH REQUIRE PROCESSING AT THE DIVtSJON LEVEL IK SANTA FE _ . Appl icat ion A c r o n y o w •• . • f ' -

(NSt^Hon^landard Locat ion] [HSP-Non-SIandanl Pronation Unit) pO-Mmti t tnnaowa DadlcaUonJ ., ' / [DH&Oownhola Commlntf lnaJ [ C n M o s a a Commingl ing] [PLW»oo in . i o« * Comwlnp lhu l

. [PC-Pool Conwnlngllnai fOLB . OfT4.«*M Store a * I [OLM-OIT4.aoa« K a u u r w M n q [WPX-Katarf lood Expansion] [PMX-Pre«*uro Maintenance Capanalan]

'••..if.. [3WD<SaJt WatarDlapoaaf l pPI- In ject ion Prtaaura Incrooao] [EOR<Qusflf i«dEnhaae*d 0HR«:ovaryCor1Htcattort ] IPPR-Poalthro Product ion Ra tponM]

[1] TYPE OF APPLICATION - Check Those Which Apply tor [A[ %• [A] ; • Location - Spacing Unit - Simultaneous Dedication

• NSL • NSP • SD i

Check One Only for [B] or [C] (BJ Cojrlrningluig - Storage - Kleasurenwnl

ET r [C] Inirciibn'. Disposal-Pressure Increase* Enhanced Oil Recovery * ' S £ Q I ' & S>7Tt-**J~& $ , [ J WFX • PMX D,SWD • IPI • EOR • PPR '

imingiing-aiorage-Measuremeni . * •- -

DHC :L3;CTB. Q PLC, • PC • OLS Q OLM — -c^lj

[D) : Other; Specify'

12} NOTIFICATION REQUIRED TO: - Check Those Which Apply, or Does Not Apply, t : > ; J I A]' • Working, Royalty or Overriding Royalty Interest Owners

3 Q-rO '2~f —3'7 YpO,

IB]

(C)

[0]

IE]

[fY

f~) Offset Operalors. Leaseholders or Surface Owner : . _

• Application is One Which Requires Published Legal Notice !:

;(9^Noiificalimond/arConcurrehlApproval by BLM orSLO1

• For all of the above, Pioof of Notification or Publication'is Attached, and/or,

• Waivers arc Attached ' V

•'•ss -V<3' ;

SUBMIT ACCURATE AND COMPLETE INFORMATION REQUIRED TO PROCESS THE TYPE OF APPLICATION INDICATED ABOVE. : '„' •„ , f ' V ^ . t " .. V •, V ' v^^:'".,-.'

t j CERTIFICATION: I hereby certify thai the information submitted with this application for administrative ^ approval is accurate ond complete to.the best ofrny knowledge. I also understand thai no action will be taken on this application until the required information and notificatwns are submitted to the Division.

O .

- 3

. - Nota: UalamantmuU

.'•PnmorTyr* r ^ u w ' g v ' . . Signature

by in tadhWuil wWt manaoarttl andfar (liptrvtMry capaetty.

Title

e-mail Address

tlli-S Inal i tW a l l . l * . M l >«:*!. V

_ i l l > tl<IM , . v « u NM •«:!''"••

^C:3^ » I r K K l k N i a i l e NU (*.*»

\" i'i; •-. ' SUICOfNeW.McUCO .,' ' i - "

,.: -jEnerg}-. Minerals and Natural Kewutws Department

i ' "^6(1 Comer*ailop Ui i l i l j i t i ? t , "'r.t

I S U S f , ' ' Sanls"Fe?Ne» Mexico H7J05' - / ; , ; . ' ; ; ; ^V 1 ^ : ! .

A P P L I C A T I O N F O R ' D O W N H O L E C O M . M I N G I J N G

-Fonn C-I07A . Bciiied Aayui 1.2£t I

. / APPLICATION tYPE^. J/Single Well ;

^^Esbhliih Prc-Apprmetl Pofh . f EXISTING WELLIWRF." ' "

.. i X ' r t ....'..So "

t Lease;-'"' ;>«.;. , , '- Weil So'; " t'nil lert«'Seelinn-Toiiiilhip'Rji>[r : =• , . . " ' . - " . Crun*;,

OG RI D No^S^3S]?PrQPi.Tt>' Co~dc31 l ^ j 0 H ? API V o i d - O S S ' R l ^ B O Lc.sc T jpe ; ' Federal, l / s l a l c _ ; > ' « .

n U A i i t M h r LPPFR 70NL [ IMERMEDIATE ZONE LOWER ZONE '

Pool Name • • ^••i1;-- fanrki. ' iowwijv

Pool Code ' '.' ":

_____ , n - j u - - J

Tap and Bollum"of Pit]Section*. (Perforated or Open-Hole IwenaU'i'''"

Melhod of Production *$J~( '/J0C' (Flowing oi Artificial I.ifit': i- -'• ;r BoTiomholc Pressure7"-vv'."' > 1 .

[V1I U O ••>[)•. ' k i i j A - K > i l l w l |>f <0> - -

.'ViTi.'-"- . • !*T-"'--

Oil Grawtvur Gais BTU L ', - /\m - Zhou • .Producing. Shut-In oi'J^-fL -New Zunc:.:~"":' z • " ; - • ! " ' SJMJ i^:

Dale and 0 it/Gas. Water Rates of last Production.-.'(j v•', • ( S t < l l*h-»a A - _ , 4 * O B i { v * £ * ' a nl!j4.>')

J ^ T 4 « J M . U U r v i ^ p j f ^ l b - •aqhp-'.bk.TB-*

riVire*:..'* A i ' i ^ r v R * ! 4 m r- " L" >,' h c, ofa! 10 ^2/3?/* Fixed Allocation Percentage-.-11

i i _ » j « T i i » i i r < > ' ! > ' * » " * " T P 1 1 " 1 * - - 1 . ! •-*

Oil ( a

0 •• 3k '• Oil CMS

0 •• 3k •• oi l r ;••,' ='Oa«;, . • "•

v'o

V Yes,

?- .Yes";

A i m i i l O N A I , D A T A

5f-;; Awail;wiirkirig'; ruyalij^ind o>c.'nidint"njali)- inieristi idnniit j l in all cnmminillcd ioives?*-- ; n ' . : ' ' i; I f nni; Itave all wortiinj-j'rujatl}' and nvcmdm^ myall} inicrwi o»ncn besn nmifwJ hv c^ntfii-t! mail 1

"Arc all produced fiuidi from atl coinmiii(;lnJ wae* compatible « i lh eath o d i « ; . ,

J Will comniin^tin^detrcasc I I K tatueol pruducluin -. - -- ̂ .

• I If this well i i ' im, bi cominuniii/nJ wiiti. sutcoi fnkral brtds, t u i either die ( ommmuiitCT of Public t.amU l;]j".oniK l 'n l to i Sulci Bureau of Land Maniiicnicni been nolified in •*rittHg °fj , |V s jipplicaimn'*

^-'S\tOCO Hcferente't'aic No. applicable to tliij Vtfltiv-;;^^ ^.j. ^i"^-T':^ [L.^.'...^.v*L^./-LrV?-''-L'.'. y~~"^ '.: •< •

Aitath tne nu: : ' r ' ' ; '•• '". " ' /•>•• '•• * , " '.^ 1 ' , c . 101 fin each rone w bc cominintlnJ ttiu«ihg i i i *pjctne unit and Jcrcagedcdieaiion -' . . . * -'

Produclion cunc for each/onc fur al leail pne }c i r | l f not j v j l b b k ; onacli expbnaiion i - • F ^ " •V.-T;._." For zones with nil pruduciimi hiMor>. estimated pioductinn rates and lypponini; daia,". - ! .<i--. • - , " - " i i S t Data tojupport allocation meilimibr foniiub •;'''•.•.• - ••' 'C- •• • _ , f : • " , .

;nN'ntificaiiph l i i i of w'otiing. rci>»Hj ando\«ridin!; rojaliv' imeresu fiirunenmnton i n t « « i i a » « „•, f.,,.; i -, -. ' , , .., - : • An\ iddii tonal sutstncnti. data oi ditumcnts irqutredm luppotl cotniniheli'n(j. . '•'-' -^.v'^'-"''! rt-'S \,J^'

i ^ i t - ' ' ' ' - _ - - / - j . 7 PRE-APPROVKD POOLS ' ' . ^ V . .

. ^ ' l - i ' ' ' . , . t f application is to establish Pie-Appro^cd Pools, die fallonine additional inr(irrnaiii.<n will be ra^uired:

> Listofbtiier'ani=riapprovingdownholecomm ." 1 - , ...^i •. v!-'i l.iil of all bperatob'wtthinthepropttwd Pre^Approveil Pools .,' • , / •'•• V'*:.:-;,̂ A1" : - ?•>• ;'|'•;•',"'• '-?'•-''' ';.•.,.' Proof tltal i l l opefalbtVwtthin' the propnied Pre-ApprbVcd Pools were provided notice of thii'applicatuin.1 V j , . : V ••' =S 'v 1 • • • r ' . Baitcidratepr«sutedata.- " '' - X ^ -'' -.. ' - • „ ' " '•' •

7 So v

So.., .v'-.-

No.__l/_l

No •

' thereby certify t'

^SIGNATURE

(the t| fomt3tion abute is ime and complete lo (he best o f my" knowledge and belief.'

I M , - . ••• TITLL

u y ^ T N'PL OR PRINT N A M E _

-E-MAll.'ADDRESS ; r A / t f e ^ P j \ t t \ V ) i f f * * ~..' '.'

'-^ ' H;LKPHOSF. NO,(' ?3ji - > 377 • T^O?

DISTRICT I

ion M. FUHCII ca.. ooeu. tw ss2«o

DISTRICT U

iMi w. curat iVDRn. utntsu, m aww

DISTRICT HI 1000 Wo Bretoa Rd.. i s Lee. NU B74I0

DISTRICT IV 1ZM B. ST. nUHOS DR.. tUTtk FL NM BT60J

O-^j? State of New Mexico xRj' taergj. Iflnttala tad Natarol E I M U R M Daputncal

O I L C O N S E R V A T I O N D I V I S I O N 1220 SOUTH St: FRANCIS DR. Santa Fe, New Mexico 87505

WELL LOCATION AND ACREAGE DEDICATION PLAT

Form CV102 Revised JUNE 10^2003

Submit to Appropriate DlatricU Off Ico State Leue.- 4 Copies

Fee Leaae'- 3 Copiei

• AMENDED REPORT "API Number

>

Pool Code Pool Name

u Property Code Propertj Nima '

COLE STATE Well Number

19 OGRID No. f ) One ra tor Name Elevation

341 r ;

Surface Location

2k'r" • r UI or tot No. SectloD Township Ran__ Lot Ida Feet from the North/South line Feet from the East/Heat line * County

k 9 16 22 -s 37-E 1650 NORTH 1800 EAST

Bo t lorn Hole Location If Different From Surface UL or lot No. Section TownabJp Ranee Lot Ida Peel from the North/South line Pest from tbe Eaat/WeaL line COUOI?

'•• Dedicated Acres

HO Joint or Infill Consolidation Code Order No.

NO ALLOWABLE WILL BE ASSIGNED TO THIS COMPLETION UNTIL ALL INTERESTS HAVE BEEN CONSOLIDATED OR A NON-STANDARD UNIT HAS BEEN APPROVED BY THE DIVISION

_ + GEODETIC COORDINATES NAD 27 NME

Y=509190.7 N X=860680.9 E

LAT.=32,23'40.Q6~ N LONG.**103'09'53.39" W

[_ _

T

•1800'-

OPERATOR CERTIFICATION I hereby certify the the infernuxHon

contained herein ie true end, complete to the

beet 0/ my knowledge and belief.

kfyiaau tilth Printed Name

TlUe Sr. ty*. Dote

SURVEYOR CERTIFICATION

/ hereby certify that the well location tfunun

en this plat wot platted from field notes of

actual iimvi mad* re me er undmr my

sup«rvtsen and 'Aai th* mame le true and

camel fa lha test ef my batief.

JULY 12, 2005 Data Surveyed TX

^'/•DISTRICT I >'̂ ~-< iftzs N. PUNCH WL, noma, KM MMO i,V . •= - - •

: , H ^DISTRICT II ... , rf-.-'s-: iaoi t. CkutD trow*, junto*, KM aaaio

j | f ^DISTRICT-III IOOO Rto Brsxos Rd.. Aztec. NU 67410

® DISTRICT IV ^ <S-'\ lECO B. ST. PtlHOS 0»- EUTTi ft. KM S7KB

State of New Mexico | | J f Entro. Ularrali tad Natural Bwonrcts Dsntrtcunt

O I L C O N S E R V A T I O N D I V I S I O N 1220 SOUTH ST. FRANCIS DR. Santa Fe, New Mexico 87505

WELL LOCATION AND ACREAGE DEDICATION PLAT

F o r m C - 1 0 2 Revised JUNE 10.^2003

Submit lo Appropriate District 1 Off Ice E la te Lease - 4 Capita

Fee Lease * 3 Copies

• AMENDED REPORT API Numbar

)

Pool Coda

€Z>35T> _ Pool Name .

Property Code Property Name f (

COLE STATE • J Well Number

• OGRID No. . ^Onerator Name Elevation

3411'"

E M Surface Location 'Ut or lot No.

Si , G , Section 1

16 Township

22-S Range

37-E Lot Idn Feet from the

1650 North/South Une

NORTH . Feet from the

1800 But/Test line

EAST y. County

Bottom Hole Location If Different From Surface UL or lot No. Sectloo Township Range Lot Idn Feet from the North/South Une Feel from the East/West line County

Dedicated Acres

4o Joint or Infill Consolidation Cade Order No.

NO ALLOWABLE WILL BE ASSIGNED TO THIS COMPLETION UNTIL ALL INTERESTS HAVE BEEN CONSOLIDATED OR A NON-STANDARD UNIT HAS BEEN APPROVED BY THE DIVISION - '

GEODETIC COORDINATES NAD 27 NME

V'"509190.7 N X**860680.9 E

LAT.-32'23'40.06" N L0NG.^103V9t53.39'' W

U. -

T

-18Q0'

Signature

Printed Name

*\r. Hps. TiUe / , )

II I Dale f 1

OPERATOR CERTIFICATION I hereby certify the Out information

conlained herein ia true end. complete ta the

beet ef my hnemtedge and belie/.

SURVEYOR CERTIFICATION

/ hereby certify that the well location iA*um "'

on this ptal toot platted from field note* of

actual lurvfyt made by nu ar under mv

•uptrviion, and that the mama la true end

earreet ta the beet of my belief,

JULY 12, 2005 Data Surveyed

S I ^ a t u ^ f f i K ,

State of New Mexico Intrwj. Iltairalj and Nttunl RaasrtM Dapirtmiol

Form X4l02 t-.: " R«Tinsel JUNE 1032003

O I L C O N S E R V A T I O N D I V I S I O N submit to Appropriate DittH^diftn 1220 SOUTH ST. FRANCIS DR. ^ i v I S . ^ 5 & Santa Fe, New Mexico 87505 ;

, DISTRICT I 1«ZS N. ntntCB ML, 00683, KU 00240

-i DISTRICT II =!»»' *• CJUJTO ATEKUI. AinsU. HU OB*10

t h DISTRICT III , > ;10M PJo Bratoa Rd., JULec. NM 07410

r D I S I R I C I i 3 1 . 1 . . ™ WELL LOCATION AND ACREAGE DEDICATION PLAT ii< im ajrr. PIUKCIS ctu BAHTA rt. mt rata

• AMENDED REPORT API. Number Pool Code Pool Nome

Property Code

3/MOM Property Name J /

COLE STATE Tell Number

19 j OGRID No. *% . Onerator Name

IAMI»/W ri.rh\'tHin LLC. Elevation ..'

3411' - ,

•Is.

ion JUL or lot No. Section

16 Townablp

22-S Ranfc

37-E Lol Idn Peel from the

1650 North/South Une

NORTH Feel Trom the

1800 Eatt/Wesl Une

EAST "County

• | J ^

Bottom Hole Location If Different From Surface Ut or lot No. Section Toraablp Range Lot Idn Foci from the North/South line Feel from the Eaat/Weat line County

Dedicated Acres Joint or hifill Cotuotldatlon Code Order No.

•ifVft. NO ALLOWABLE, WILL BE ASSIGNED TO THIS COMPLETION UNTIL ALL INTERESTS HAVE BEEN CONSOLIDATED* t OR A NON-STANDARD UNIT HAS BEEN APPROVED BY THE DIVISION

- + GEODETIC COORDINATES NAD 27 NME

Y-509190.7 N X=860680.9 E

LAT.=32'2?40.06'' N L0NG. = 103-09'53.39" W

T

-1800'

OPERATOR CERTIFICATION / hereby certify the the information,

contained herein is true and complete to the

beet uf my knowledge and belief.

_ - _

Printed Name

Sr. OfS. Title

DaU

SURVEYOR CERTIFICATION:

f hrrtby certify thai the vtell location thoum on thie plat tvox plotted from, f ield notes : of actual i w M | a mad* by mm or under.ma tuperviion. and thai the some i e true''-, met earreet to the beet ef my actio/.

JULY 12, 2005 b a l e Survoy ed TX

Me No. GARY E* 12841

3 S ^ dP

Cole State #19

API # 30-025-37400

Pool Name Pool Code Pay Interval Status

Rates from 24 hr tests, 0,G,W Allocation %

Pool 24 hrTest Combined Test

Pool 24 hrTest Combined Test

Poo! 24 hrTest Combined Test

Pool 24 hrTest Combined Test

Eumont; Yates,7R-Queen

22800

3485' - 3534'

Producing

0 50

0% 36%

0.00%

50

20

138 36.23%

Penrose Skelly;Grayburg 50350

3634' - 3796' Producing

0 50 0% 36%

Combined Tests

2 138

0.00%

50

20

45

138 36.23%

Eunice;San Andres, SW 24180

3836' - 3887' Shut in

2 38 5

100% 28%

2_

2 100.00%

38_

138 27.S4%

^VANGUARD li m n PERMIAN. LLC PERMIAN, LLC

November 5, 2014

Michael A. McMillan Engineering & Geological Services Bureau Oil Conservation Division 1220 South St. Francis Drive Santa Fe, NM 87505

RE: DHC Application Cole State #10 (API 300252216300); Cole State #12 (API 300252248600); Cole State #14 (API 300252382800); Cole State #17 (API 300253739900); Cole State #18 (API 300253782700); Cole State #19 (API 300253740000); Lea County, NM

Gentlemen:

Please be advised that Vanguard Permian, LLC, ("Vanguard"), owns 100% of the working interest in the above captioned wells Additionally, the various interest owners in all of the wells noted above are identical. In order to more efficiently produce the captioned wells and avoid waste, we respectfully request to downhole commingle the specified wells.

Should you have additional questions or comments in this regard, please feel free to contact me directly at 832.399.3764 or csledae@vnrllc.com or for technical questions please contact Randall Hicks at 832.377.2207 or rhicks@vnrilc.com.

Respectfully submitted,

Vanguard Permian, LL

Carol M. Sledge, CPL Senior Landman

cc: Randall Hicks via email at rhicks@vnrUc.com

1.000,

Cole State 19 - Cole Stale 19 Wh

OB (bbl) - Gas(mcO - Water (bbl)

iVANGUARD NATURAL RESOURCES, LLC NASDAQ: VNR

November 6,2014

Engineering and Geological Services Bureau, Oil Conservation Division Attn: Michael A. McMillan 1220 South St. Francis Dr. Santa Fe, NM 87505

Re: DHC Application Cole State #19 AP Iff30-025-37400

Dear Mr. McMillan:

The Pools to be comingled in the Cole State #19 well are the Eunice; Yates, 7R-Queen (22800), the Penrose Skelly;Grayburg (50350) and the Eunice; San Andres, Southwest (24180). The comingling ofthe Eunice; Yates, 7R-Queen, Penrose Skelly;Grayburg and the Eunice, San Andres, Southwest will not reduce the value of total remaining production.

The production percentages were calculated based on the last 24 hr daily test from the Eunice; San Andres, Southwest dated 6/3/2014 prior to the workover. The Eunice; Yates, 7R-Queen and Penrose Skelly; Grayburg production was based on an even split of the most recent 24 hr dairy test dated 10/18/14 which was 4 months after the workover. Those tests were then divided by the combined tests to get a percentage for each pool. This was done for both oil and gas.

Ownership interests between all pools is identical.

This is a State property and the SLO is being notified by this letter. A hard copy of this application with a $30 processing fee will be mailed to the SLO.

Thank you.

Randall Hicks Sr. Operations Engineer Vanguard Natural Resources

53^7 San reiiM, Su.te 3000 - riSJSron, Te<6! 77057 - shone <S32) 327-2255 • rax (312) 327-2230 - wwrw.vr.rirc CDT<

I f.

McMillan, Michael, EMNRD

From: Sent: To: Subject:

Randall Hicks <rhicks@vnrllc.com> Tuesday, November 11, 2014 10:47 AM McMillan, Michael, EMNRD Vanguard - Cole State #19 - DHC Application

Mr. McMillan,

For the DHC application, the production between the Eumont; Yates, 7R-Queen (22800) and the Penrose-Skelly; Grayburg (50350) was split evenly because one large fracture stimulation was put on both zones at one time. Further, a similar number of perforation are in the Queen and as are in the Grayburg creating an even split for the fracture treatment.

The 24 hr production test for the combined Queen and Grayburg is a more accurate number and should be used to determine the percentages for each pool. The daily production graph is an allocated number from a single tank battery with 17 wells producing to it. Due to certain wells contributing to the tank battery being down or other factors, the allocated production may not match the 24 hr test number exactly, however the 24 production test is an accurate indication of the production from that well.

If you have any other questions, feel free to call.

Thank you,

Randall Hicks Sr Operations Engineer Vanguard Natural Resources, LLC 832-377-2207 office 713-252-1626 mobile

l