f i led - utah … · f i led sep 232013 secretary, board of oil, gas & mining before the board...

130
F I LED SEP 232013 SECRETARY, BOARD OF OIL, GAS & MINING BEFORE THE BOARD OF OIL, GAS AND MINING DEPARTMENT OF NATURAL RESOURCES STATE OF UTAH IN THE MA ITER OF THE REQUEST FOR AGENCY ACTION OF BILL BARRETT CORPORATION FOR AN ORDER AUTHOR- IZING THE DIRECTIONAL DRILLING OF THE FD 3-29D-2-2 WELL IN SECTION 29, T2S, R2E, USM, THE FD 5-17D-2-2 WELL IN SECTION 17, T2S, R2E, USM, THE FD 9-9D-6-19 WELL IN SECTION 9, T6S, RI9E, SLM, AND THE FD 14-21D-5-19 WELL IN SECTION 21, T5S, RI9E, SLM, UINTAH COUNTY, UTAH, AND THE SA 16-27D-23 WELL IN SECTION 27, T2S, R3W, USM, AND SA 14-26D-22 WELL IN SECTION 26, T2S, R2W, USM, DUCHESNE COUNTY, UTAH PETITIONER'S EXHIBITS Docket No. 2013-033 Cause No. 131-135 Pursuant to Utah Admin. Code Rule R641-105-500, Petitioner Bill Barrett Corporation ("BBC"), by and through its counsel of record, MacDonald & Miller Mineral Legal Services, PLLC, hereby respectfully submits the following exhibits intended to be offered into evidence in support of its Request for Agency Action ("RAA") at the October 23, 2013 hearing on this cause: EXHIBIT "A" - Resume of David M. Watts - Land Manager (3 pages). EXHIBIT "B" - True and correct copies of the Board's Orders entered in Cause Nos. 131-14, 131-27, 139-42 and 139-90 and of Utah Admin. Code Rules R649-3-10 and 11 (collectively 41 pages). EXHIBIT "C" - Reference locator plat, reflecting the location of the six wells at issue in relation to Roosevelt City (1 page).

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Page 1: F I LED - Utah … · f i led sep 232013 secretary, board of oil, gas & mining before the board of oil, gas and mining department of natural resources state of utah in the ma iter

F I LED SEP 232013

SECRETARY, BOARD OF OIL, GAS & MINING

BEFORE THE BOARD OF OIL, GAS AND MINING DEPARTMENT OF NATURAL RESOURCES

STATE OF UTAH

IN THE MA ITER OF THE REQUEST FOR AGENCY ACTION OF BILL BARRETT CORPORATION FOR AN ORDER AUTHOR­IZING THE DIRECTIONAL DRILLING OF THE FD 3-29D-2-2 WELL IN SECTION 29, T2S, R2E, USM, THE FD 5-17D-2-2 WELL IN SECTION

17, T2S, R2E, USM, THE FD 9-9D-6-19 WELL IN SECTION 9, T6S, RI9E, SLM, AND THE FD 14-21D-5-19 WELL IN SECTION 21, T5S, RI9E, SLM, UINTAH COUNTY, UTAH, AND THE SA

16-27D-23 WELL IN SECTION 27, T2S, R3W, USM, AND SA 14-26D-22 WELL IN SECTION 26, T2S, R2W, USM, DUCHESNE COUNTY,

UTAH

PETITIONER'S EXHIBITS

Docket No. 2013-033

Cause No. 131-135

Pursuant to Utah Admin. Code Rule R641-105-500, Petitioner Bill Barrett

Corporation ("BBC"), by and through its counsel of record, MacDonald & Miller Mineral

Legal Services, PLLC, hereby respectfully submits the following exhibits intended to be

offered into evidence in support of its Request for Agency Action ("RAA") at the

October 23, 2013 hearing on this cause:

EXHIBIT "A" - Resume of David M. Watts - Land Manager (3 pages).

EXHIBIT "B" - True and correct copies of the Board's Orders entered in Cause Nos. 131-14, 131-27, 139-42 and 139-90 and of Utah Admin. Code Rules R649-3-10 and 11 (collectively 41 pages).

EXHIBIT "C" - Reference locator plat, reflecting the location of the six wells at issue in relation to Roosevelt City (1 page).

Page 2: F I LED - Utah … · f i led sep 232013 secretary, board of oil, gas & mining before the board of oil, gas and mining department of natural resources state of utah in the ma iter

EXHIBIT "D" - Table of reasons for surface hole location placement (1 page).

EXHIBIT "E" - Plats of the FD 3-29D-2-2 Well reflecting surface and bottom hole locations in relation to drilling unit setbacks under the 131-27 and 139-42 Orders and vertical deviation (collectively 2 pages).

EXHIBIT "F" - Plats of the FD 5-17D-2-2 Well reflecting surface and bottom hole locations in relation to drilling unit setbacks under the 131-27 and 139-42 Orders and vertical deviation (collectively 2 pages).

EXHIBIT "G" - Plats of the FD 9-9D-6-19 Well reflecting surface and bottom hole locations in relation to drilling unit setbacks under the 131-27 and 139-42 Orders and vertical deviation (collectively 2 pages).

EXHIBIT "H" - Plats of the FD 14-21D-5-19 Well reflecting surface and bottom hole locations in relation to drilling unit setbacks under the 131-27 and 139-42 Orders and vertical deviation (collectively 2 pages).

EXHIBIT "I" - Plats of the SA 16-17D-23 Well reflecting surface hole and bottom hole locations in relation to drilling unit setbacks under the 131-14 and 13 9-90 Orders and vertical deviation (collectively 2 pages).

EXHIBIT "J" - Plats of the SA 14-26D-22 Well reflecting surface hole and bottom hole locations in relation to drilling unit setbacks under the 131-14 and 139-90 Orders and vertical deviation (collectively 2 pages).

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FMM:nmc 1000.27

EXHIBIT "K" - True and correct copies of return receipts indicating receipt of a copy of the Request by, or the status of delivery to, or of the mailings returned as undeliverable to, parties identified in the Certificate of Service dated September 17, 2013, on file in this cause, as of September 20, 2013 (to be supplemented prior to hearing) (collectively 69 pages).

Respectfully submitted this 23rd day of September, 2013.

MACDONALD & MILLER MINERAL LEGAL SERVICES, PLLC

Frederick M. MacDonald, Esq.

7090 S. Union Park Avenue, Suite 420 Salt Lake City, UT 84047 Telephone: (801) 676-0050 Facsimile: (801) 676-0051 E-Mail: [email protected]

Attorneys for Petitioner Bill Barrett Corporation

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Page 4: F I LED - Utah … · f i led sep 232013 secretary, board of oil, gas & mining before the board of oil, gas and mining department of natural resources state of utah in the ma iter

EDUCATION

David Matthew Watts 3800 East 7th Avenue Parkway

Denver, CO. 80206 Telephone: 303-619-5393

Email: [email protected]

University of Colorado at Denver Business School Masters of Science in Global Energy Management

Middlebury College Bachelor of Science in Biology with a minor in American History Emphasis: Aquatic Ecology NCAA National Championship, 1999 Lacrosse Season

University of Colorado at Denver Class Emphasis: Geology & Natural Resources

WORK EXPERIENCE

Denver, CO July 2009-January 2011

Middlebury, VT 1995-1999

Denver, CO 2002-2003

Bill Barrett Corporation (Powder River Basin & Uinta Basin) Denver, CO Land Manager January 2008-Present Performing all aspects of title research, Drilling and Division Order Title Opinion curative, fee leasing, purchasing fee and federal working interests and aiding in the maintenance of multiple drilling prospects. • Negotiating with Working Interest Owners purchasing Federal Operating Rights, Fee Leasehold Interests and Leasing Mineral

Owners. • Preparing assignment documentation and coordinating the accompanying closing events for signature and recording. • Creating JOA's for Working Interest Owners. • Calculating and proofing Net Revenue Interests, Gross Working Interests, Burdens and Acreage Totals. • Preparing Communitization Agreements and Declarations of Pooling. • Performing all aspects of title curative throughout multiple prospects within the Powder River Basin and Uinta Basin. • Serving as the point of contact for multiple title attorneys and coordinating the ordering of Drilling and Division Order Title

Opinions. • Negotiating with and preparing leases and assignments for the Bureau of Indian Affairs • Point of contact for field brokers, directing Leasing, Surface Use Agreements and Right of Ways across Public, Private, BIA and

Division of Wildlife Lands.

Delta Petroleum Corporation (Piceance & Columbia River Basins) Denver, CO Landman July 2007-January 2008 Performing all aspects of title research, Drilling and Division Order Title Opinion curative, fee leasing and aiding in the maintenance of multiple drilling prospects. • Developing Lease Schedules, Lease Purchase Reports, Mineral Ownership Reports, Contract Briefs, AMI's and assignments

throughout Mesa County Colorado and 8 Counties in Washington State. • Negotiating and preparing leases for land and mineral owners throughout Colorado and the Columbia River Basin. • Calculating and proofmg Net Revenue Interests, Gross Working Interests, Burdens and Acreage totals. • Evaluating Joint Operating Agreements spanning multiple states throughout the Rocky Mountain region. • Researching Federal Leases for Record Title and Operating Rights at the BLM offices located in Golden Colorado. • Attending BLM lease sale for client. • Preparing Communitization Agreements, Declarations of Pooling, Affidavits of Production and Non-Production and Federal

Assignments. • Performing curative for individual lease files throughout the Columbia River Basin mending leases, Memorandums, Assignments of

Oil and Gas Leases and Assignments of Overriding Royalty Interests.

EX+tIBIT A

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David Matthew Watts 3800 East 7th Avenue Parkway

Denver, CO. 80206 Telephone: 303-619-5393

Email: [email protected]

Bill Barrett Corporation (Williston Basin) Denver, CO Landman December 2006-July 2007 Performing all aspects oftitle research and curative while aiding in the preparation of multiple prospect Divestures. o Proofmg Lease Schedules, Lease Purchase Reports, Mineral Ownership Reports and Contract Data Sheets, AMI's and assignments

throughout the Williston Basin. o Preparing Lease Schedule Exhibits for presentation to buyers. o Calculating and proofing Net Revenue Interests, Gross Working Interests, Burdens and Acreage totals. o Evaluating Joint Operating Agreements and developing spreadsheets representing Preferential Rights. o Reviewing Consent to Assign and Notification of Assignment information in order to assemble exhibits for presentation. o Preparing Communitization Agreements, Declarations of Pooling, Affidavits of Production and Preferential Rights correspondence.

Transcontinent Oil Company (Contract - Southern Alberta Basin & Williston Basin) Shelby, MT & Denver, CO Field Landman April2006-December 2006 Performing all aspects of lease buying, title research, obtaining right of ways, aiding in preparing abstracts and drilling opinions. o Assisting in the negotiation and preparation of leases for land and mineral owners throughout 5 Counties in Northwestern Montana. o Preparing Cursory Reports and Mineral Ownership Reports utilizing local title companies and courthouses. o Developing and coordinating leasing strategies in specific drilling areas. o Aiding in Abstract and Title Opinion preparation in order to commence operations throughout privately held lands, government and

state properties and Native American Reservations. o Assisting in coordinating ingress and egress strategies for minimizing surface damages from a biological and crop impact level. o Indexing and briefing documentation dating back to United States patents through the present day in order to create complete

mineral ownership chains. o Organizing and allocating incoming title assignments to other members of the research team. o Contracted to work with Fidelity Exploration proofmg Lease Purchase Reports, Mineral Ownership Reports and Contract Data

Sheets in support of a purchased assignment throughout the Williston Basin.

Call For The Wild Foundation Denver, CO Executive Director 2004-2006 Performing all aspects of the environmental conservation process that help protect native aquatic species throughout the Rocky Mountain Region and the Belize Barrier Reef System in Central America. o Developed project strategies and scientific implementation for programs in the Rocky Mountain Region and the Belize Barrier Reef

System in Central America. o Launched fundraising campaigns and grant writing for all projects resulting in donations exceeding $400K. o Initiated all marketing and public relations programs that focus on education and awareness of the environment throughout the

regions of conservation. o Planned and executed on-site research throughout the Gulf of Honduras in Belize and the San Luis Valley in Colorado. o Coordinated strategic partnerships with other non-profit organizations throughout Belize and the United States. o Maintained profit and loss figures involved with the operations ofthe foundation. o Completed all necessary requirements and was granted 501 (c) 3 status from the United States Internal Revenue Service.

Harrow Sports, Inc. Sales Associate Strategic development and sales oflacrosse products throughout North America. o Served as the 5th employee of Harrow Sports, Inc. assisting the design process of all lacrosse products introduced into

industry. o Traveled throughout North America opening retail accounts for the lacrosse and ice hockey divisions. o Planned and executed major trade show presentations attracting retail store buyers and foreign manufacturers. o Managed individual client accounts for the lacrosse division.

Denver, CO 2002-2003

o Aided in the development ofthe Youth Denver Lacrosse Club, which continues to compete throughout Colorado and the Rocky Mountain Region.

o Developed a multi-national high school and college client database for sales and marketing purposes. o Developed and launched the team sales department for the lacrosse branch of the company.

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Page 6: F I LED - Utah … · f i led sep 232013 secretary, board of oil, gas & mining before the board of oil, gas and mining department of natural resources state of utah in the ma iter

David Matthew Watts 3800 East 7th Avenue Parkway

Denver, CO. 80206 Telephone: 303-619-5393

Email: [email protected]

Amherst Reeves Worldwide / Argus Public Relations (Formally Forum21.com) Executive Analyst & Departmental Production Manager Project development and profit and loss responsibility for the ARW / APR client base. • Organized and allocated all incoming assignments to the creative department. • Collected production estimates and provided pricing to the account executives. • Calculated all project profit and loss schedules. • Performed market research and implemented strategic direction for current and prospective clients. • Planned and executed major trade show presentations for current and prospective clients. • Negotiated with potential business partners and vendors regarding several $250K client accounts.

Forum21.com Account Executive Serving the needs of all current and prospective clients seeking marketing and advertising support. • Designed marketing proposals and pricing strategies for prospective clients. • Managed all accounts related to fmancial institutions and biotechnology. • Developed new brand positioning for client sales exceeding $4MM. • Coordinated several business strategies to support current client sales forces.

Denver, CO 2001

Denver, CO 2000-2001

Janus Mutual Funds Denver, CO Investor Service Representative 1999-2000 Worked as an Investor Service Representative for private accounts while serving as a Global Life Science Consultant to the data management and analytical research teams. • Executed trades of all mutual funds and money market funds for clients calling the company. • Received Series 6 and 63 trading licenses. • Consulted the Global Life Science research teams in possible future investments regarding science based companies and

biotechnology. • Developed investment strategies for current and prospective clients.

PROFESSIONAL ORGANIZATIONS

Denver Association of Petroleum Landmen Masonic Building 535 16th Street, Suite 850 Denver, Colorado 80202

PREVIOUS EXPERT QUALIFICATION

American Association of Professional Landmen 4100 Fossil Creek Boulevard Fort Worth, Texas 76137

Qualified and recognized as an expert in Petroleum Land Management by the Utah Board of Oil, Gas and Mining in Cause No. 139-86 (July, 2011), Cause No. 139-87 (October, 2011), Cause No. 139-88 (March, 2012), Cause No. 139-89 (March, 2012), Cause No. 139-91 (May, 2012), Cause No. 139-94 (September, 2012) and Cause No. 139-101 (February, 2013)

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Page 7: F I LED - Utah … · f i led sep 232013 secretary, board of oil, gas & mining before the board of oil, gas and mining department of natural resources state of utah in the ma iter

: ..

BEFORE THE BOARD OF OIL .AND GAS CONSERVATION DEPARTNENT OF NATURAL RESOURCES

IN AND FOR THE STATE OF UTAH

IN 111£ NATTEil. OF tHE APPLICATION OF ) CHEVRON OIL CONPNlY, WESTERN DIVISION , ) FOR Iu~ ORDER HODIFYING Al"lD EXTENDING ) PRIOR ORDERS OF THE BOARD IN CAUSE ) NO. l31-ll, 'ro COVER ADDITIONAL ) INTERVALS AN D L~\NDS WITHIN AND OUTSIDE ) OF THE BLUEBELL FIELD, DUCHESNE AND ) UINTAH COL'NTIES, UTAH. )

ORDER

CAUSE NO. 131-14

Pursuant to Notice of Hearing dated July 16, 1971, of the Board of

Oil and Gas Conservation, Department of Natural Resources of the State of Utah,

thia Cause came on for hearing b~fore said Board at 11:00 a.m., on Wednesday,

August 11, 1971, in the Governor's Board Room, Second Floor - State Capitol

Building, Salt Lake City, Utah. The fol l owing Board members were present:

Delbert M. Draper, Jr., Esq., Chairman, Presiding

Robert R. Norman

Wesley R. Dickerson

Evart J. Jensen

Also present:

Cleon B. Feight, Esq., Director, Division of Oil and Gas Conservation

Paul W. Burchell, Chief Petroleum Engineer, Division of Oil and Gas Conservation

Paul E. Reimann, Esq., Special Assistant Attorney General

Bernard Moroz, United States Geological Survey, Salt Lake City, Utah

Appearances were made as follows:

For Chevron Oil Company, Western Division:

For Gas Producing Euterprises, Inc.:

For Humble Oil & Refining Company:

For Diamond Shamrock Oil and Gas Company:

For Flying Diamond Land and Mineral Corporation:

EXHIBIT B

William ~[. Balkovatz, Esq. Denver, Colorado

Richard K. Sager, Esq. Salt Lake City, Utah

Robert G. Pruitt, Esq. Salt Lake City, Utah

William S. Livingston, Esq. Denver, Colorado

Hugh Garner, Esq. Salt Lake City, Utah

Richard K. Sager, Esq. Salt Lake City, Utah

Page 8: F I LED - Utah … · f i led sep 232013 secretary, board of oil, gas & mining before the board of oil, gas and mining department of natural resources state of utah in the ma iter

.-.....

For Shell Oil Company:

F,n Mountain Fuel Supply Company:

For Amerada-Hess Corporation:

For Mobtl Oil Corporation:

For himself:

For the Hansen Family Trust:

'--Don F. Gallion, Esq. Denver, Colorado

Glen M. Hatch, Esq. Salt Lake City, Utah

S. K. Smith Tulsa, Oklahoma

Frank Allen Oklahoma C:I. ty, Oklahoma

Dave Calder

Lester Hansen

NOW, THEREFORE, the Board having considered the testimony adduced,

and the exhibits received at said hearing and being fully advised in the premises,

now makes and enters the following:

FINDINGS

1. Due and regular notice of the time, place and purpose of the hearing

was given to all interested parties in the form and manner and within the time

required by law and the rules and regulations of the Board.

2. The Board has jurisdiction over the matter covered by said Notice

and over all parties interested therein and has jurisdiction to make and promul-

gate the Order hereinafrer set forth.

3. TIlut by Order designated Cause No. 131-11, dated February 17. 1971,

the Board, in addition to other matters ordered therein, established drilling units

comprising eacll governmental section for the production of oil, gas and associated

hydrocaIbons from the interval, described in Paragraph 8 thereof, underlying the

lands all as more particularly described in said Cause No. 131-11.

4. That further drilling and development operat5_ons and the infol:mation

obtained therefrom, both within and outside of the presently defined boundaries of

lands described in said Order entered in Cause No. 131-11, subsequent to the date

of said Order, indicate that the existing spaced area as described in said Order

should now be enlarged both areally and vertically as follows:

(a) That the lands known and believed to be underlain by the common

sour~e of supply from which oil, gas and associated hydrocarbons

can be produced from the hereinafter designated interval of the

Green River-Wasatch formations, situate in Duchesne and Uintah

Counties, Utah, include the following-described lands which fn-

clude the lands described in said Cause No. 131-11, to-vit:

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I I

Page 9: F I LED - Utah … · f i led sep 232013 secretary, board of oil, gas & mining before the board of oil, gas and mining department of natural resources state of utah in the ma iter

'. ~ .

..~. -Township 1 South, Runge 1. Wes~~V. /' All o f the i>ect:\.ons ;\.ncl.ud(!d in s~ Township 1 South, Range 1 ~!eflt

Township 1 South, Range 2 West, USM _____ . All of the Sections included in said ~ Township 1 South ... Range 2 West

Township South, R~e 3 West, USM Sections 1. and 2: A1l Sections 11 through 14: All Sections 23 thr.ough 26: All Sections 35 and 36: All

Township 2 South, R_ange 1 West, USM All of the Sections included in sa~­TOvffiship 2 South, Roe.nge 1 Vlest

TOWT1~~South, Range 2 West, / USl;!. /"" Allor the Sections included in s~~ Township 2 South, Range 2 West

Township 2 South, Range 3 West, USM Sections 1 and 2: All

All / Sections 9 through 16: Sections 21 through 28: All SectionfJ 33 throu&h 36: All

]:ownship 1 North, Range 1 West, USM All of Sections 19 through 36 '.

Township 1. North, Range 2 We..:!.t, USM I ~o All of Sections 19 through 36

TCt.'fIship 1. North, Range 3 Wes t, USM

'V

All of Sections 23, 2~. 25, 26, 35 and 36

(b) The spaced interval underlying the lands described in Paragraph

4(a) above, should be. defined as:

That interval below the stratigraphic equivalent of-9,600 feet depth in the "E" Log of the Carter 112 Bluebell ,.ell located in the SW~W~, Section 3, Township 1 South, Range 2 West, USM (which equivalence is the depth 9,530 feet of the SP curve, Dual Induction T,og, run March 15, 1968, in the Chevron in Blanchard well located 1.n the NW!,;SE"4 Of said Section 3), to the base of t;reen River-Wasatch formations.

5. That one well on a 640-acre tract will effici.ently and economically

drain the recoverable oil, gas and associated hydrocarbons from the aforesaid de-

scribed interval underlying the lands describ2d in Paragraph 4(a) above, and that

a 640-acre drilling uni t is not larger than the maximuIll an~a that can be effici.ell tly

and economically drained by one we.ll_

6. That the Orde·r entered in Cause No. 131-11 which provides for a

tolerance of '-20 feet from the permi tted well locations should be ameNl.E'.:i to

provide, that except for existing Hells or deepenin;:; or plugging back thereof,

that the pennitted we] 1 location shall be located no closer than 1,320 fC8t fr01;1

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Page 10: F I LED - Utah … · f i led sep 232013 secretary, board of oil, gas & mining before the board of oil, gas and mining department of natural resources state of utah in the ma iter

.... - -the exterior boundary of any governmental section; provided that an exception to

said 1,320-foot limitation may be granted administratively without a hearing

where a topographical exception is deemed necessary; and further provided that

the well located in the sW, of Section 13, TO,",'Ilship 1 South, Range 1 West, USM,

shall be the pe.rmitted well for said Section and that upon abandonment thereof,

the permitted well location therein shall be in the approximate center thereof with

the toh,rance as herein set forth.

7. That any and all Orders of the Board heretofore promulgated concern-

iug the Bluebell. Area, Duchesne and Uintah Counties, Utah, which are inconsistent

with the Ordel:s hereinafter set forth should be vacated upon the effective date

hereinafter set forth.

OR D E R -- - --IT IS THEREFORE ORDERED:

To prevent waste of oil, gas and associated hydrocarbons, to avoid the

drilling of unnecessary \.ells, to protect correlative rights and to establish

drilling unics of uniform size and shape for the Bluebell Area, Duchesne and

Uintah Counties, Utah, t.he folloHing Orders are hereby promulgated to go\'ern

operations in said area effective August 11, 1971:

(a) That upon said effective date any and all Orders of the Board

heretofore promulgated which are inconsistent with the Orders

herein set forth shall be and are hereby vacated.

(b) That 640-acre drilling units be and the same are hereby established

comprising each governmental section or governmental lots corres-'

ponding thereto, for the development and production of oil, gas and

associated hydrocarbons from the interval described in Paragraph

4(b), above, underlying the lands described in Paragraph 4(a), above.

(c) That except for existing wells or deepening or plugging back there-

of, the permitted well location shall be located no closer than

1,320 feet from the exterior boundary of any governmental sectJ~n;

provided that an exception to said 1,320-foot limitation may be ~ granted administratively without a hearing where a topographical

exception is deemed necessary; and further provided that the well

located in the swlt; of Section 13, Township 1 South, Range 1 West,

Page 11: F I LED - Utah … · f i led sep 232013 secretary, board of oil, gas & mining before the board of oil, gas and mining department of natural resources state of utah in the ma iter

· ~,

........ -USH, shall be the permitted well [or said section and that upon

I abandonment thereof, the permitted we.n location in said Section

13 shall be in the center thereof with the tolerance as herein

set forth.

(d) That this Order is a temporary Order and the Board, on its own

motion, or any interested party may file an application requesting

a hearing to present new evidence concerning the matters set forth

herein.

(e) That the Board retains continuing jurisdiction of all matters

covered by this Order and all other applicable orders and over all

parties affected thereby and particularly that the Board reta:!.ns

and reserves continuing jurisdiction to make further orders as

appropriate and authorized by statute and applicable regulations.

ENTERED this eleventh day of August, 1971.

BOARD OF OIL AND GAS CONSERVATION OF THE STATE OF UTAH

lre;reyfR. Dickerson

~,J-~'F/ Evar t J. Jc.nse .

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-f:: .. ~ , . , . ".

BEFORE THE BOARD OF OIL AND GAS CONSERVATION DEPARTMENT OF NATURAL RESOURCES

IN AND FOR THE STATE OF UTAH

IN THE MATTER OF THE APPLICATION OF SHELL OIL COMPANY FOR AN ORDER MODIFYING AND EXTENDING PRIOR ORDERS OF THE BOARD IN CAUSES NO. 131-14 AND NO. 131-24 TO COVER ADDITIONAL LANDS IN THE BLUEBELL FIELD AREA UINTAH COUNTY, UTAH

CAUSE NO. 131-27

ORDER

Pursuant to Notice of Hearing dated March 25, 1975, of the Board

of Oil and Gas Conservation, Department of Natural Resources of the State of

Utah, this cause came on for hearing at 10:00 a.m. on April 16, 1975, in the

Executive Conference Room, Holiday Inn, 1659 West North Temple, Salt Lake

City, Utah. The following Board members were present:

Guy N. Cardon, Chairman, Presiding

Charles R. Henderson

Hyrum L. Lee

James P. Cowley

Also present I

C1eon B. Feight, Esq., Director. Division of Oil and Gas Conservation

E. W. Guynn, District Engineer. United States Geological Survey, Salt Lake City. Utah

Appearances were made as follows:

for Shell Oil Company:

for Chevron Oil Company Western Divisionl

D. F. Gallion, Esq. Houston, Texas

J. E. Springborn

J. J. Schneider

William M. Ba1kovatz, Esq. Denver, Colorado

T. R. Ashmore

NOW. THEREFORE, the Board having considered the testimony adduced,

and the exhibits received at said hearing, and being fully advised in the premises,

now makes and enters the following:

Page 13: F I LED - Utah … · f i led sep 232013 secretary, board of oil, gas & mining before the board of oil, gas and mining department of natural resources state of utah in the ma iter

'FINDINGS

1. Due and regular notice of the time, place and purpose of the

hearing was given to all interested parties in the form and manner and within

the time required by law and the rules and regulations of the Board.

2. The Board has jurisdiction of the matters covered by the applica-

tion and over all parties interested therein and has jurisdiction to make

and promulgate the Order herein set forth.

3. The Board, by Order entered in Cause No. 131-14 dated August 11,

1971, established drilling units comprising each governmental section or

governmental lots corresponding thereto, for the production of oil, gas and

associated hydrocarbons from the interval, described in Paragraph 4(b) thereof,

underlying the lands described and referred to in said Cause No. 131-14 and

by Order entered in Cause No. 131-24 dated January 16, 1974, the Board extended

the Order entered in Cause No. l3l~l4 to cover additional lands described in

Paragraph 4(a) thereof.

4. Further drilling and development operations subsequent to such

Orders, and information and data obtained therefrom, indicate that the

presently producing and spaced 'i interval of the Bluebell Field, as defined in

Paragraph 4(b) of the Order entered in Cause No. 131-14, also underlies

additional lands lying generally east of the existing spaced area and that

prior Orders entered in Cause No. 131-14 and Cause No. 131-24 should be modified

and extended to cover and include the following described lands, to witl

Township 1 South, Range 2 'East All of Sections 30 and 31;

Township 2 South, Range 2 East All of Sections 5, 6, 7, 8, 16, 17, 18, 19, 20, 21, 28,

2~.,30, 31, 32, 33 and 34;

Township 5 South; Ranee 19 'East All of Sections 20, 21, 22, 23, 26, 27, 28, 29, 32, 33,

34 and 35;

Townehip '6 ' South, Range '19 'East All of Sections 3,' 4, 5, 9, 10, 15, 16, 22, 27 and 34.

5. A substantial part of the above-described lands is comprised of

sections of land irregular in size and shape due to the Salt Lake Meridian

and Unita Special Meridian running through the area; consequently, to prevent

the drilling of unnecessary wells and to protect correlative rights, drilling

• I r

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' . , units for the spaced interval underlying such lands should be established

and defined as hereinafter set forth.

6. Due to such irregularities and to provide for orderly well

spacing in the area, the permitted well location for such drilling units should

be modified slightly from that set out in Ordering Paragraph (c) of Cause

No. 131-14, with appropriate exceptions allowed for existing wells.

7. One well on each such designated drilling unit will efficiently

and economically recover underlying oil, gas and associated hydrocarbons.

8. Due to remoteness and insufficient production data to evaluate

and determine oil and gas reserves underlying the lands described in Para-

graph 4 above; oil and gas wells located on such lands should be relieved

of the requirements and restrictions imposed in the Order entered in Cause

No. 144-2 as to flaring of casinghead gas from producing wells; in substitu-

tion, the provisions of the Order entered in Cause No. 144-13 should apply.

'ORDER

IT IS THEREFORE ORDERED:

That Orders entered in Cause No. 131-14 and Cause No. 131-24 are

hereby modified and extended as follows:

A. To cover and include the spaced interval, as defined in Para-

graph 4(b) of the Order entered in Cause No. 131-14, underlying the lands

described in Paragraph 4 above,

B. The following described drilling units are hereby established

for the development and production of oil, gas and associated hydrocarbons

from such spaced interval underlying the lands described in Paragraph 4 above:

(1) All of Section 30, T~l-S, R~2-E, U.S.M, All of Section 20, T-5-S, R-l9-E, S.L.H.

(2) All of Section 21, T-5-S, R-l9-E, S.L.M.

(3) All of Section 22, T-S-S, R~19-E, S.L.M.

(4) All of Section 23, T-5-S, R~19-E, S.L.M.

(5) All of Section 26, T-S_S, R-l9-E, S.L.M.

(6) All of Section 27, T-S-S, R-19-E, S.L.M.

(7) All of Section 28, T-S-S, R-19-E, S.L.M.

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..

;, ~ .. . ..

.. .. : " " t

(8) All of Section 29, T-5-S, R-19-E, S.L.M. All of Section 31, T-l-S, R-2-E, U.S.M.

(9) All of Sections 32 & 33, T-5-s, R-19-E, S.L.M. All of Section 5, T-2-S, R-2-E, U.S.M.

(10) All of Section 34, T-5-S, R-19-E, S.L.M.

(11) All of Section 35, T-5-S, R-19-E, S.L.M.

(12) All of Section 6, T-2-5, R-2-E, U.S.M.

(13) All of Section 7 and Lot 1 and SW-l/4 NW-l/4 Section 8, T-2-S, R-2-E. U.S.M.

(14) Lots 2, 3 & 4, W-l/2 SW-l/4. SE-l/4 SW-l/4, Section 8, T-2-S, R-2-E, U.S.M. and All of Sections 4 & 5 and Lots 5, 6 & 7, Section 9, T-6-S, R-19-E. S.L.M.

(15) All of Section 3 and Lot 1, N-l/2 NE-l/4 and NE-l/4 NW-1/4 Section 10, T-6-S. R .. 19-E, S.L.M.

(16) All of Section 18 (including that part of Patented Mining Claim. Tract 38, lying within Section 18) and the W-1/2 NW .. 1/4 Section 17, T-2-S, R-2-E, U.S.M.

(17) All of Section 16 and Lots I, 2, 3, 4 & 5. w-1/2 SE-l/4. SW-1/4 & E-l/2 NW-l/4 Section 17, T-2-S, R-2-E, U.S.M. and that part of Resurvey Tract 42 lying within Section 9, T .. 6 .. S, R-19-E, S.L.M.

(18) Lots 2, 3, 4, 5, 6 & 7 Section 10, those parts of Resurvey Tracts 42 and 44 lying within Sections 10' & 15, all of Resurvey Tract 43 Section 10, that part of Resurvey Tract 47 lying within Sections 15 and 16, Lots 3, 4, 5 & 6 Section IS, T-6-S, R-19~E, S.L.M.

(19) All of Section 19 (including those parts of Patented Mining Claims, Tracts 38 & 39, lying within Section 19), T~2-S, R_2 .. E, U.S.M.

(20) All of Section 20 (including that part of Patented Mining Claim Tract 39, lying within Section 20), and Lots 1 & 2, NW-1/4 SW-r/4 Section 21, T-2-S, R-2-E. U.S.M.

(21) Lots 3 & 4, sW-1/4 SW-1/4 Section 21, T-2-S. R-2-E, U.S.M. and Lots 7, 8, 9, 10, II, s-1/2 NE-l/4, N-1/2 SE-l/4, E-1/2 SW-1/4 and that part of Resurvey Tract 48 lying within Sections 15 & 22, all of Resurvey Tract 49, Sections 15 & 22, and Lots 5, 6 & 7, Section 22, T-6-S, R-19-E, S.L.M.

(22) All of Section 30, . T-2-S, R_2-E, U.S.M.

(23) All of Section 29 and W-l/2 NW-1/4 Section 28, T_2-S, R-2-E, U.S.M.

(24) Lots I, 2, 3, 4, SE-1/4 NW-1/4, SW-1/4, and SW~1/4 SE-1/4 Section 28, T-2~S, R~2~E, U.S.M, and Lots 8 & 9, all of resurvey Tract 50, E_1/2 SE-1/4 Section 22 and NE .. 1/4 NE ... 1/4, Lot 5 Section 27, T~6 ... S, R ... 19 ... E, S.L.M •

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(25)

(26)

(27)

All of Section 31, T-2-S, R-2~E, U.S.M.

All of Section 32 and W-l/2 NW-l/4 Section 33, T-2-S, R-2-E, U.S.M.

S-1/2, E-l/2 NW-l/4, W-l/2 NE-l/4, SE-l/4 NE-l/4, Lot 1, Section 33, Lots 1, 2 & 3 Section 34, T-2-S, R-2-E, U.S.M. and Lots 6, 7, 8, 9 of Section 27 and all of Section 34. T-6-S, R-19-E. S.L.M.

C. No more than one well shall be drilled on any such unit for the

production of oil. gas and associated hydrocarbons from the spaced interval

and the permitted well for each such unit shall be located a minimum of

1320 feet from the exterior boundary thereof; provided that exceptions to the

permitted well location are hereby allowed for Shell 1~20B2E, located in

Section 20. T-2-S, R-2-E. and Chevron-Federal 1-28, located in Sectlon 28,

T-5-S, R-19-E, and that each such well is designated as the permitted well

for its respective drilling unit.

IT IS FURTHER ORDERED:

That, effective on the entry date of this Order, the Order entered in

Cause No. l44~2 shall be and is hereby vacated with respect to the lands

described in Paragraph 4 of FINDINGS and Ordering Paragraph B above, and the

rules set forth in the three numbered paragraphs of Ordering Paragraph (b)

of Order entered in Cause No. 144-13 shall apply to such lands.

That the Board retains continu~ng jurisdiction of all matters covered

by this Order and particularly retains continuing jurisdiction fo make further

orders as appropriate and authorized by statute and applicable regulations.

ENTERED AND EFFECTIVE this 16th day of April, 1975.

STATE OF UTAH DEPARTMENT OF NATURAL RESOURCES BOARD OF OIL AND GAS CONSERVATION

~!ta'd~~

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.~:.....~'-'--._ .:.~:.. '~ . .., I

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"'-

--BEFORE THE BOARD OF OIL, GAS AND MINING

DEPARTMENT OF NATURAL RESOURCES

STATE OF UTAH

IN THE MATTER OF THE AMENDED PETITION OF ANR LIMITED INC., ET AL. FOR AN ORDER MODIFYING PREVIOUS ORDERS WHICH ESTABLISHED DRILLING AND SPACING UNITS AND ANY OTHER ORDERS RELATING TO TEST WELLS FOR THE ALTAMONT, BLUEBELL AND CEDAR RIM-SINK DRAW FIELDS, DUCHESNE AND UINTAH COUNTIES, UTAH

:

. .

FINDINGS OF FACT, CONCLUSIONS OF LAW AND ORDER

Docket No. 85-007 Cause No. 139-42

Pursuant to the Amended Notice of Hearing dated March

4, 1985 of the Board of Oil, Gas and Mining ("Board"), Department

of Natural Resources of the State of Utah, said cause came on for

hearing on Thursday, April 11, 1985 at 10:00 a.m. in the Board

Room of the Division of Oil, Gas and Mining ("Division"), 355

west North Temple, 3 Triad Center, Suite 301, Salt Lake City,

Utah.

The following members of the Board were present:

Gregory P. Williams, Chairman James W. Carter Charles R. Henderson Richard B. Larson E. Steele McIntyre John M. Garr, having recused himself,

did not participate

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"-

Mark C. Moench, Assistant Attorney General, was present

on behalf of the Board.

Members of the Staff of the Division present and

participating in the hearing included:

Dr. Dianne R. Nielson, Director Ronald J. Firth, Associate Director John R. Baza, Petroleum Engineer

Barbara W. Roberts, Assistant Attorney General, was

present on behalf of the Division.

Appearances were made as follows: Petitioners ANR

Limited, ~ ~., by Frank Douglass, Esq. and Ray H. Langenberg,

Austin, Texas; Robert G. Pruitt, Jr., Esq., Salt Lake City, Utah;

Frank J. Gustin, Esq., Salt Lake City, Utah; Louis A. Posekany,

Jr., General Counsel, and George W. Hellstrom, Esq., ANR

Production Company, Phillip K. Chattin, General Counsel, Utex Oil

Company; Hugh C. Garner, Esq., for Coastal Oil & Gas Corporation;

Phillip William Lear, Esq., for Phillips Petroleum Company;

Jeffrey R. Young, Esq., for Bow Valley Petroleum, Inc., B. J.

Lewis, Esq., Vice President, and Robert W. Adkins, Esq., Linmar

Energy Corporation; Robert Buettner, Esq., Koch Exploration

Company; Lane Jamison, Esq., Sonat Exploration Company; Victor

Brown and Robert Brown, Utah Royalty Association; John Harja,

Esq., Gulf Oil Corporation; Martin Seneca, General Counsel, Ute

Indian Tribe; Assad M. Raffoul, Petroleum Engineer, Bureau of

Land Management; John Chasel, on his own behalf; George Morris,

Esq., Ute Distribution Corporation; Dr. Gilbert Miller,

Conservation Superintendent, Amarada Hess Corporation; and L. A.

Pike, Roosevelt, Utah, landowner.

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Now therefore, the Board having considered the

'- testimony of the witnesses, John C. Osmond, Petroleum Geologist;

Clarke Gillespie, Petroleum Reservoir Engineer; and R. Thayne

Robson, Economist, for Petitioners and B. J. Lewis, Vice

President, and John W. Clark, Petroleum Engineer, for Linmar

Energy Corporation, and the exhibits received at said hearing and

being fully advised in the premises, now makes and enters the

following:

FINDINGS OF FACT

1. Due and regular notice of the time, place and

purpose of the hearing was given to all interested parties as

required by law and the rules and regulations of the Board.

2. The Board has jurisdiction over the matters covered

by said notice and over all parties interested therein and has

jurisdiction to make and promulgate any order hereinafter set

forth.

3. The Board has heretofore entered 640 acre drilling

and spacing orders for the Lower Green River/Wasatch Formation in

Causes No. 139-3, 139-4, 139-5, 139-8, and 139-17 (Altamont

Field), Causes No. 131-11,131-14,131-24,131-27,131-32,131-

33,131-34,131-45 and 131-55, (Bluebell Field), and Causes No.

140-6 and 140-7 (Cedar Rim-Sink Draw Field) as to the following

described lands:

UINTAH SPECIAL MERIDIAN

Township 1 North. Range 1 west Sections: 19-36

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~mlnahi~ 1 NQ.t:thl Range 2 Heat

'- sections: 19-36

~QI(mshi~ 1 NQ.t:th. Range 3 Neat sections 23-26, 35 and 36

~Qlrmshi~ 1 SQuthl Range 1 6a.at sections: All (except Roosevelt Unit)

~Qlrlnahi~ 1 SQuthl Range 2 6a.at sections: 4-8,18-19, 30-31

~Qltlnahi~ 1 SQuth, Ra.nge 1 Heat sections: All (except Roosevelt Unit)

~Q.ltlnahi~ 1 SQuth, Range 2 tht:Qugh 4 Neat Sections: All

~Qltlnshi~ 1 SQuth, Range 5 Neat Sections: 10-17, 20-36

~Qltlnahi~ 1 SQuth. Range fi Neat Sections: 25-26, 35-36

~Qltlnahi~ 2 SQuthl Range 1 th.t:Qugh 2 6a.st sections: All

~Q~nShi~ 2 SQuth. RWlge 1 th.t:Qugh ti Neat Sections: All

~Qltlnahi~ 2 SQuth, Range 1 Hest Sections: 19, 30-36

~QltlnShi~ 2 SQuth, Range a Neat Sections: 23-26, 31-36

~Qlllnahi~ :3 SQuth. Rsmge :3 Heat sections: 5-8, 17 -20, 29-32

~Qltlnshi~ 3 SQuth. Range 4 tht:Qugh a Heat Sections: All

~Qltlnahi~ 4 SQuth. Range :3 Heat Sections: 5 and 6

~Qltlnahi~ 4 SQuth. Range 4 Heat Sections: 1-6

~Qltlnahi~ 4 SQuth. Range 5 Hest sections: 1-6

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Township 4 South. Range 6 West Sections: 1-18

SALT LAKE MERIDIAN

TownShip 5 South. Range 19 East Sections: 20-23, 26-29, 32-35

Township 6 South. Range 19 East Sections: 3-5, 9, 10, 15, 16, 22, 27 and 34

4. In Cause No. 140-12, the Board authorized the

drilling of test or second wells that may only be produced

alternatively with the initial well on the same drilling unit.

5. The Lower Green River/Wasatch Formation underlying

the subject fields constitutes a pool as that term is defined in

Utah Code Ann. §40-6-2(9) (1953, as amended), and is a highly

complex series of isolated and discontinuous beds of productive

rock that are randomly distributed vertically over a several

thousand feet thick interval. Normally, the productive beds are

separate and distinct and not in communication with each other.

6. Many of the productive beds are not corre1atable

from well to well and will not afford communication between wells

as close as 1000 feet. Of the productive beds that correlate,

various geological factors prevent a significant number form

communicating between wells within the same section.

7. Geologic and engineering information from initial

unit wells and test wells show that a single well will not

effectively drain the recoverable oil and gas underlying any

given 640 acre spacing unit because the productive beds are too

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small or have other limiting characteristics precluding effective

and efficient drainage of the recoverable reserves underlying the

unit.

8. Data from production logs and field performance

show that test wells drilled under the Order in Cause No. 140-12

after 1978 have caused the recovery of substantial amounts of oil

from separate and distinct productive beds and from previously

undepleted productive beds, and that the drilling of additional

wells on existing units will increase the ultimate recovery of

oil from the subject fields.

9. The prohibition of simultaneous production from the

initial well and test well on the same unit has caused the

shutting in of wells with the potential to produce substantial

amounts of additional reserves.

10. Each additional well drilled under this order will

tap producing formations that are separate and distinct from and

not in communication with any other producing formation and is

not an unnecessary well.

11. In some areas of the subject fields, geologic,

engineering, and economic factors justify drilling additional

wells on existing units. In other areas, geologic, engineering

and economic factors may not justify drilling additional wells on

existing units.

CONCLUSIONS OF LAW

1. Due and regular notice of the time, place and

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purpose of the hearing was given to all interested parties as

required by law and the rules and regulations of the Board.

2. The Board has jurisdiction over the matters covered

by said notice and over all parties interested therein and has

jurisdiction to make and promulgate any order hereinafter set

forth.

3. The Board is authorized to modify its previous

orders to permit additional wells to be drilled within

established units under Utah Code Ann. §40-6-6(4) (1953, as

amended) •

4. An order permitting (a) the drilling of additional

wells on existing units as provided herein and (b) the

simultaneous production of initial wells and additional wells

will prevent the waste of hydrocarbons, prevent the drilling of

unnecessary wells, and protect correlative rights.

ORDER

IT IS THEREFORE ORDERED:

To prevent waste of oil, gas and associated liquid

hydrocarbons, to avoid the drilling of unnecessary wells, to

protect correlative rights and to maintain, to the maximum extent

practicable, drilling units of uniform size and shape for the

promotion of more orderly development of the lands described in

Finding of Fact No.3 above, the following order is hereby

promulgated to govern operations in said area effective as of

April 12, 1985:

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Page 24: F I LED - Utah … · f i led sep 232013 secretary, board of oil, gas & mining before the board of oil, gas and mining department of natural resources state of utah in the ma iter

A. upon the effective date any and all orders of the

Board heretofore promulgated which are inconsistent with the

orders herein set forth shall be and are hereby vacated to the

extent inconsistent herewith.

B. Additional wells may be drilled, completed, and

produced on established drilling units comprising government

surveyed sections of approximately 640 acres (or other designated

drilling units so long as such unit is at least 400 acres in

size) to a density of no greater than two producing wells on each

unit comprising a section (or other designated unit).

c. Additional wells may be drilled at the option of

the operator of the unit, based upon geologic and engineering

data for that unit which will justify the drilling of an

additional well in order to recover additional oil, provided the

.~ additional well appears to be economically feasible.

D. Economically feasible means that a prudent operator

would have a reasonable opportunity to recover the costs of

drilling, completing, producing and operating the well, plus a

reasonable profit.

E. It is not the intent of this order, in permitting

additional wells to be drilled on established drilling units, to

change or amend the existing contractual rights or relationships,

express or implied, of any parties who share in production or the

proceeds therefrom in the spaced area.

F. Any additional well must be located at least 1,320

feet from the existing well on the unit and not closer than 660

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--

feet from the exterior boundary of the unit. No two wells may be

drilled in any drilling unit within the same governmental quarter

section or equivalent lot.

G. If an operator elects to initially complete a well

solely within producing formations that are separate and distinct

from and not in communication with any other producing formation,

the operator will use reasonable precautions in order that such

well is not completed in any producing formation that may be

effectively drained by any other well.

H. Second or test wells drilled under previous orders

as well as additional wells to be drilled under this order may be

produced simultaneously with initial wells.

I. The Board retains exclusive and continuing

jurisdiction of all matters covered by this order and of all

parties affected thereby and particularly that the Board retains

and reserves exclusive and continuing jurisdiction to make

further orders as appropriate and authorized by statute and

applicable regulations.

l +L ENTERED this I ----day of If v r/ I , 1985.

I

STATE OF UTAH BOARD OF OIL, GAS AND MINING

~~ . GO • W LL lAMS, Chal. man

APPROVED AS TO FORM:

~r5./I(~ .. MARK C. MOENCH Assistant Attorney General

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F I LED MAY 0 9 2012

S6CRETARV, BOARD OF OIL, GAS & MINING

BEFORE THE BOARD OF OIL, GAS AND MINING DEPARTMENT OF NATURAL RESOURCES

STATE OF UTAH

IN THE MA TIER OF THE REQUEST FOR AGENCY ACTION OF NEWFIELD PRODUCTION COMPANY FOR AN ORDER EXTENDING THE BOARD'S ORDERS ENTERED IN CAUSE NOS. 139-8 AND 139-84 TO ESTABLISH SECTIONAL DRILLING UNITS AND AUTHOR1ZE UP TO FOUR PRODUCING WELLS (WHETHER ALL VERTICAL, ALL H0R1Z0NTAL, OR A COMBINATION OF BOTH) PER SECTIONAL DRILLING UNIT SO ESTABLISHED OR PREVIOUSLY ESTABLISHED FOR THE PRODUCTION OF OIL, GAS AND ASSOCIATED HYDROCARBONS FROM THE LOWER GREEN RIVER AND WASATCH FORMATIONS UNDERLYING THE "CENTRAL BASIN AREA," COMPRISED OF VARIOUS SECTIONS WITHIN TOWNSHIPS 2 SOUTH, RANGES I THROUGH 4 WEST, USM, 3 SOUTH, RANGES 1 THROUGH 4 WEST, USM, AND 4 SOUTH, RANGES 3 AND 4 WEST, USM, DUCHESNE AND UINTAH COUNTIES, UTAH

FINDINGS OF FACT, CONCLUSIONS OF LAW AND

ORDER

Docket No. 2012-013

Cause No. 139-90

This Cause came on for hearing before the Utah Board of Oil, Gas and Mining

(the "Board") on Wednesday, April 25, 2012, at approximately 10:30 a.m., in the

Commission Chambers of the Sevier County Administration Building in Richfield. The

following Board members were present and participated at the hearing: Chairman James

T. Jensen, Ruland J. Gill, Jr., Jake Y. Harouny, Kelly L. Payne, Carl F. Kendel and Chris

D. Hansen. Board Member Jean Semborski was unable to attend. The Board was

represented by Michael S. Johnson, Esq., Assistant Attorney General.

Page 27: F I LED - Utah … · f i led sep 232013 secretary, board of oil, gas & mining before the board of oil, gas and mining department of natural resources state of utah in the ma iter

" . ~ . ~ .'

Testifying on behalf of Petitioner Newfield Production Company ("Newfield")

were Laura Smith - Land Lead, Steve Adams - Asset Team Lead - Geology, and Mike

Jensen - Engineering Advisor. Said witnesses were recognized by the Board as experts

in petroleum land management, geology and petroleum engineering, respectively, for

purposes of this Cause. Frederick M. MacDonald, Esq., of and for Beatty & Wozniak,

P .C., appeared as attorney for Newfield.

The Division of Oil, Gas and Mining (the "Division") did not file a staff

memorandum in this Cause but nevertheless participated in the hearing. Dustin Doucet,

Petroleum Engineer, asked questions on the Division's behalf. Emily Lewis, Esq.,

Assistant Attorney General, appeared as attorney for the Division. At the conclusion of

Newfield's presentation-in-chief, the Division expressed its support for the granting of

Newfield's Request for Agency Action dated March 8, 2012, as modified by

Modification filed April 9, 2012 (collectively the "Request"), as conformed to the

testimony and other evidence provided at the hearing.

On April 9, 2012, Ms. Jeanne S. Cox, a ranch operator of the surface and an owner

of oil and gas interests within Section 3, Township 2 South, Range 3 West, USM, filed a

letter with the Board not objecting to the Request, but instead outlining her concerns on

the impact of oil and gas operations upon currently producing agricultural lands. Ms.

Cox did not make an appearance at the hearing.

2

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On April 12, 2012, Bill Barrett Corporation ("BBC") and El Paso E&P Company,

L.P. ("EI Paso"), working interest owners and operators within the lands relevant to the

Request, filed letters with the Board expressing their respective support for the granting

of the Request. Similarly, on April 13, 2012, Ute Energy Upstream Holdings LLC ("Ute

Energy"), a working interest owner within the lands relevant to the Request, filed a letter

with the Board expressing its support for the granting of the Request. Neither BBC, El

Paso nor Ute Energy made an appearance at the hearing.

On Apri123, 2012, the Vernal District Office of the United States Bureau of Land

Management ("BLM"), acting in its trust capacity on behalf of the Ute Indian Tribe and

Indian Allottees and as advisor to the Bureau of Indian Affairs, Uintah & Ouray Agency

("BIA"), filed a letter with the Board Secretary expressing its support for the granting of

the Request. No BLM representative made an appearance at the hearing.

At the conclusion of Newfield's presentation-in-chief and the Division's

statement, the Board invited and received statements from Bruce Dart, a surface and oil

and gas owner within the lands relevant to the Request, and from Gordon Moon,

individually as a surface and oil and gas owner within the lands relevant to the Request,

and on behalf of the Utah Royalty Owners Association.

No other party filed a response to the Request and no other party appeared or

participated at the hearing.

3

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The Board, having considered the testimony presented and the exhibits received

into evidence at the hearing, being fully advised, and for good cause, hereby makes the

following findings of fact, conclusions of law and order in this Cause.

FINDINGS OF FACT

1. Newfield is a Texas corporation with its principal place of business for

Rocky Mountain operations in Denver, Colorado. Newfield is duly qualified to conduct

business in the State of Utah, and is fully and appropriately bonded with all relevant

Federal, Indian and State of Utah agencies.

2. By Order entered on August 11, 1971 in Cause No. 131-14 (the "131-14

Order"), the Board established sectional (640-acre or substantial equivalent) drilling units

for the production of oil, gas and associated hydrocarbons from the Lower Green River

and Wasatch formations, defined as follows:

that interval below the stratigraphic equivalent of 9,600 feet depth in the "E" Log of the Carter #2 Bluebell well located in the SWY4NWY4, Section 3, Township 1 South, Range 2 West, U.S.M. (which equivalence is the depth 9,530 feet of the SP curve, Dual Induction Log, run March 15, 1968, in the Chevron #1 Blanchard well located in the NWY4SEY4 of said [Section 3]), to the base of the Green River-Wasatch formations,

for the following Duchesne and Uintah County lands:

Township 2 South, Range 1 West, USM

Sections 19,25 and 27-36 inclusive

4

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Township 2 South. Range 2 West. USM

Sections 20-36 inclusive

Township 2 South. Range 3 West, USM

Sections 25-28 and 33-36 inclusive

(the "131-14 Lands"), and ruled only one well may produce on each such unit so

established, which must be located no closer than 1,320 feet from the exterior boundary

of any governmental section; provided, that an exception to said 1,320-foot limitation

may be granted administratively without a hearing where a topographical exception is

deemed necessary.

3. By Order entered on September 20, 1972 in Cause No. 139-8 (the "139-8

Order"), the Board established sectional (640-acre or substantial equivalent) drilling units

for the production of oil, gas and associated hydrocarbons from the Lower Green River-

Wasatch fonnations, defined as follows:

the interval from the top of the Lower Green River formation (TGR3 marker) to the base of the Green River-Wasatch formations (top of Cretaceous), which base is defined as the stratigraphic equivalent of the Dual Induction Log depths of 16,720 feet in the Shell-Ute 1-18B5 well located in the S~NEli4 of Section 18, Township 2 South, Range 5 West, U.S.M., and 16,970 feet in the Shell-Brotherson 1-11B4 well located in the S'l2NEY4 of Section 11, Township 2 South, Range 4 West, U.S.M.,

for the following Duchesne County lands:

5

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..

Township 2 South. Range 3 West, USM

Sections 29-32 inclusive

Township 2 South. Range 4 West, USM

Sections 34-36 inclusive

Township 3 South. Range 3 West. USM

Sections 5-8, 17-20 and 29-32 inclusive

Township 3 South, Range 4 West. USM

Sections 1-36 inclusive

Township 4 South, Range 3 West USM

Sections 5 and 6 inclusive

Township 4 South, Range 4 West, USM

Sections 1-6 inclusive

(the "139-8 Lands"), and ruled only one well may produce on each such unit so

established, which must be located in the center of the NE~ with a tolerance of 660 feet

in any direction; provided that an exception to said tolerance may be granted

administratively without a hearing where a topographical exception is deemed needed.

4. By Order entered on October 27, 1983 in Cause No. 131-51 (the "131-51

Order"), the Board extended application of the 131-14 Order to the following Duchesne

County lands:

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(the "131-51 Lands").

Township 3 South. Range 1 West, USM

Sections 4-9 and 16-18 inclusive

Township 3 South. Range 2 West. USM

Sections 1-3 and 10-15 inclusive

5. The following Duchesne and Uintah County lands are not currently subject

to any order of the Board establishing drilling units for Lower Green River and Wasatch

formation production:

Township 3 South. Range 1 West. USM

Sections 1-3, 10-15 and 19-36 inclusive

Township 3 South, Range 2 West. USM

Sections 4-9 and 16-36 inclusive

Township 3 South, Range 3 West, USM

Sections 1-4,9-16,21-28 and 33-36 inclusive

(the '~139-8 Extension Lands"). Instead, they are currently only subject to the Board's

and Division's general operational rules, including the general well siting rule (Utah

Admin. Code Rule R649-3-2).

6. The 131-14, 13 9-8 and 131-51 Lands are collectively hereinafter referred to

as the "Existing Spaced Lands." The 139-8 Extension Lands and the Existing Spaced

Lands are collectively hereinafter referred to as the "Subject Lands," and comprise the

lands within what Newfield has designated its "Central Basin Area."

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7. By Order entered on April 17, 1985 in Cause No. 139-42 (the "139-42

Order"), the Board modified the 131-14 and 139-8 Orders, among other orders, but not

the 131-51 Order, to provide that additional Lower Green River-Wasatch wells may be

drilled, completed, and produced on the established drilling units to a density of no

greater than two producing wells in each unit comprising a section. Additional wells may

be drilled at the option of the operator of the unit based upon geologic and engineering

data for that unit which will justify an additional well in order to recover oil, provided

that said operator would have a reasonable opportunity to recover costs of drilling,

completing, producing and operating a well plus a reasonable profit. Any additional well

must be located at least 1,320 feet from an existing well in the unit and not closer than

660 feet from the exterior boundary of the unit, and no two wells may be drilled in the

same quarter section.

S. By Order entered December 31, 200S in Cause No. 139-S4 (the "139-S4

Order"), the Board further modified the 131-14, 139-8 and 139-42 Orders, among many

other orders applicable to the greater AltamontlBluebell fields, but not the 131-51 Order,

and only as relating to lands other than the Existing Spaced Lands, to allow up to four (4)

producing Lower Green River-Wasatch wells upon each drilling unit established under

said orders, to be drilled at the option of the operator and with the operator's full

discretion as to the development of the hydrocarbon resources; provided that each

additional well shall be no closer than 1,320 feet from an existing unit well completed in

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and producing from the formations and no closer than 660 feet from the drilling unit

boundary (in essence, eliminating any flrst well siting requirement under the applicable

existing order). The Board did not speciflcally address whether the authorized wells are

to be just vertical/deviated wells or may also include horizontal wells.

9. The mineral estate underlying the Subject Lands is primarily fee (privately)

and Indian (both Tribal and Allotted) owned, with scattered Federal and State of Utah

owned parcels. The Lower Green River and Wasatch formation oil, gas and associated

hydrocarbons are in large part under lease to, or subject to exploration and development

agreements with, Newfield.

10. As relating to the Lower Green River and Wasatch formations, the Board,

in the 139-84 Order, expressly found:

a) [P]roduction occurs from mUltiple, generally low-matrix porosity, thin-bedded sandstones, forming a highly complex series of isolated and discontinuous beds that are randomly distributed vertically over a several thousand-foot interval. Normally, the productive beds are separate and distinct and not in communication with each other [Findings of Fact No. 15];

b) [M]any of the productive beds are not correlatable from well to well and will not afford communication between wells within several hundred feet of one another [Findings of Fact No. 16];

c) [E]vidence from mudweights, pressure data, well logs, and production data show virgin and near virgin zones exist and reserves that otherwise would not be produced will be recovered by the drilling, completion and production of third and fourth wells [Findings of Fact No. 21]; and

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d) The drilling of increased density wells under existing orders within [the area subject to the 139-84 Order] demonstrates:

• Second wells have recovered in excess of 55 MMBOE of incremental oil to date;

• Second and third wells drilled discovered incremental oil in new reservoirs not intersected by earlier wells;

• Second and third wells do not drain the reserves in the drilling units and are nearing the end of their economic lives;

• The average well drainage area [for the area subject to the 139-84 Order] is approximately 160 acres;

• Some of the reservoirs intersected by second and third wells do communicate with the earlier wells drilled, but also encountered incremental reserves (new reservoirs) that have not been previously encountered and produced;

• Despite some pressure communication between increased density wells with fIrst and subsequent wells in [sic, a] section, there is not overall production interference or production acceleration between wells; and

• Production from second, third, and even fourth wells in section did not adversely affect production in the fIrst and other pre-existing wells producing from the [Lower Green River and Wasatch formations] in the drilling units.

[Findings of Fact No. 22].

In addition, the Board expressly made the following conclusions oflaw:

a) The 640-acre drilling units shall remain a uniform size and shape ... and conform to the predominant pattern in the area established by the [139-42 Order] .... [Conclusion of Law No.5]; and

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b) An order authorizing the drilling of additional wells, up to four wells in the established drilling units at the option of the operator, ... will promote the public interest, economically increase ultimate maximum recovery, prevent waste, protect correlative rights of all owners, and avoid the drilling of unnecessary wells [Conclusion of Law No. 7].

11. By Order entered on December 6, 2011 in Cause No. 139-87, the Board

extended application of the 139-8 and 139-84 Orders to lands either previously subject to

the 139-8 Order but not subject to the 139-84 Order, or lands previously unspaced,

located in Townships 3 and 4 South, Ranges 5 and 7 West, USM, referred to as the "Lake

Canyon" area, portions of which are directly adjacent to the Subject Lands. The Board

expressly stated the authorized four (4) wells on the sectional Lower Green River-

Wasatch drilling units could be all vertical, all horizontal or a combination of both.

12. The testimony and exhibits received into evidence in Cause Nos. 139-84

and 139-87, and in this Cause, reflect that, as relevant to the Lower Green River and

Wasatch formations underlying the Subject Lands:

a) Geologic and reservoir characteristics of the Lower Green River­Wasatch formations as underlying the Subject Lands are similar and analogous to the adjacent AltamontIBluebelllands already subject to the 139-84 and 139-87 Orders;

b) Geologic and engineering information from the initial wells drilled demonstrate that the recoverable oil and gas will not be effectively drained in a 640-acre drilling unit by one (1) or two (2) wells and an addition of up to four (4) wells per section will tap into smaller productive reservoirs that have geologic and engineering characteristics that prevent one or two wells from draining those resources;

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c) Many of the productive reservoirs that are drilled do not correlate well from well to well. This geologic characteristic prevents communication between wells at intervals as small as less than 1,000 feet;

d) The reservoir penneability and nature of the fracture components of the reservoir reduces the effect of communication with the sand that do correlate and does not allow for efficient drainage of the hydrocarbon resource;

e) Production data and geologic calculations demonstrate that one or two wells per section do not effectively drain the reservoir and recoverable hydrocarbons can be recovered with up to four wells per section;

f) After more than 35 years of production from these lands and adjacent lands, newly drilled wells are finding reservoir pressures similar to the offsetting wells and sometimes higher than the offsetting wells demonstrating the potential for additional recovery of hydrocarbons in a section;

g) Separate and distinct reservoirs will be found with additional wells drilled in the field and hydrocarbons recovered from new wells can not be recovered with the existing wells in the field;

h) The current orders and rules applicable to the [all of the lands which were the subject of the Cause] allow for operators to shut-in and plug existing wells in the field with potential resources that may not be recovered in order to drill new wells that have higher potential. Waiting for the existing wells to deplete causes economic waste and higher operating expenses which will reduce the ultimate recovery of the hydrocarbons. Surface facilities deteriorate, gas gathering systems are under utilized and run less efficiently, and overall production operating expenses are higher reducing the effective productive life or the field and reduces ultimate recovery; and

i) In some areas of the field based on geologic, engineering and economic factors additional drilling with up to four wells per section

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will not cause unnecessary wells to be drilled and will allow additional hydrocarbons to be economically produced that would otherwise not be recovered.

13. The following Newfield operated wells, located on the following 139-8

Extension Lands, currently produce from the Lower Green River-Wasatch fonnations:

Well Name

Kettle 1-10-3-1

Lamb 1-19-3-1

Lamb 12-20-3-1

Miles 15-8-3-2

Padilla 1-18-3-2

Giles 1-19-3-2

Bar F 1-20-3-2

O. N. Moon 1-27-3-2

Location

T3S, Rl W, USM Sec. lO: SWY4SEY4

T3S, Rl W, USM Sec. 19: NWY4NWY4

T3S, RIW, USM Sec. 20: NWY4SWY4

T3S, R2W, USM Sec. 8: SWY4SEY4

T3S. R2W, USM Sec. 18: NEY4NEII4

T3S,R2W, USM Sec. 19: NEY4NEY4

T3S. R2W. USM Sec. 20: SEY4SEY4

T3S, R2W, USM Sec. 27: SWY4NEY4

13

Date of First Production

10/21110

8/21111

11/21111

10111111

12/2/11

2/24/11

3/23/10 (LGRJ Wasatch

recompletion)

11/6/10

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Abbott 3-29-3-2

LH Trust 3A-30-3-2

Murphy 2-31-3-2

Evans 1-4-3-3

T3S, R2W, USM Sec. 29: NE1i4NWV4

T3S, R2W. USM Sec. 30: NEV4NW11t

T3S, R2W. USM Sec. 31: NWV4NEV4

T3S, R3W, USM Sec. 4: SWV4NWV4

12/21111

2114112

10/2/11

4121110

Although sectional drilling units had not yet formally been established by the Board

inclusive of these lands, all of the leases within the respective sections upon which these

wells are located have already been voluntarily pooled/communitized on a sectional

basis. As a consequence, production from such wells has been and still is being allocated

to all production interest owners within the section pro-rata.

14. In addition, since the filing of the Request, Newfield has drilled the

following two wells within Section 21 of Township 3 South, Range 2 West, USM:

Alzada 11-21-3-2W (vertical)

Thome 4-21-3-2WH (horizontal)

Location

NEY4SWV4

NWV4NWY4 (SHL) SWV4SWV4 (BHL)

Date of First Prod.

417112

still awaiting completion as of the date of the

hearing

The Alzada well has not been completed in the Ute1and Butte member of the Lower

Green River formation, but the Thome well horizontal lateral has been drilled through

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and will be completed for production in said Uteland Butte member. However, the oil

and gas ownership in Section 21 is divided Indian and fee, and will require a

communitization agreement to create a conforming sectional proration unit. Retroactive

sectional spacing of said Section 21 to April 7, 2012, the date of first production for the

Alzada well, is therefore fair, reasonable and just under the circumstances.

15. Based on the testimony given at the hearing, it appears at least four (4)

wells per section, whether all vertical or all horizontal, or a combination of both, are

required to recover Lower Green River-Wasatch resources from the Subject Lands.

16. A copy of the Request was mailed, postage pre-paid, certified with return

receipt requested, and properly addressed to all mineral, leasehold and production interest

owners in the 139-8 Extension Lands, to all working interest owners and operators

including unleased owners, in the remaining Subject Lands, and to the Utah School of

Institutional Trust Land Administration ("TLA"), the Utah Division of Forestry, Fire and

State Lands ("DFFSL"), the BIA and to the Utah State and Vernal Field Offices of the

BLM. The mailings were sent to said parties at their last addresses disclosed by the

relevant TLA, DFFSL, BIA, BLM and Duchesne and Uintah County realty records.

17. Notice of the filing of the Request and of the hearing thereon was duly

published in the Salt Lake Tribune and the Deseret Morning News on April 8, 2012 and

in the Uintah Basin Standard on April 3 and 10, 2012, and in the Vernal Express on April

4 and 11,2012.

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18. The vote of the Board members present and participating in the hearing on

this Cause was unanimous (6-0) in favor of granting the Request.

CONCLUSIONS OF LAW

1. Due and regular notice of the time, place and purpose of the hearing was

properly given to all parties whose legally protected interests are affected by the Request

in the form and manner as required by law and the rules and regulations of the Board and

Division.

2. The Board has jurisdiction over all matters covered by the Request and all

interested parties therein, and has the power and authority to render the order herein set

forth pursuant to Utah Code Ann. §§40-6-5(3)(b) and 40-6-6.

3. The Lower Green River-Wasatch formations, as defined in the 139-8 Order,

as underlying the 139-8 Extension Lands constitute a "common source of supply" as that

phrase is defmed in Utah Code Ann. §40-6-2(18).

4. Extension of the 139-8 Order to establish consistent and conforming

sectional drilling units for the 139-8 Extension Lands is therefore appropriate, just and

reasonable under the circumstances.

5. Extension of the 139-84 Order to the Subject Lands, with the additional

clarification that the authorized four (4) wells may be either all vertical, all horizontal, or

a combination of both, will allow for uniform and consistent development of the Lower

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Green River-Wasatch oil, gas and associated hydrocarbons and is therefore appropriate,

just and reasonable under the circumstances.

6. Granting the requested relief will not adversely impact the existing

voluntary contractual production allocation as outlined in Findings of Fact No. 13 above.

In fact, the granted relief will simply confirm and justify the basis for such allocation.

7. Utah Admin Code Rule R649-3-2(6) establishes sectional "temporary

spacing units" for horizontal wells, but the definition of "temporary spacing units"

contained in Utah Admin Code Rule R649-3-1 expressly provides that "[a] temporary

spacing unit shall not be a drilling unit as provided for in U .C.A. 40-6-6, Drilling Units,

and does not provide a basis for pooling the interest therein as does a drilling unit."

Therefore, an order establishing "permanent" sectional drilling units is required to allow

conforming sectional communitization as relating to the authorized horizontal wells in

accordance with Federal regulations, guidelines and practice and to protect correlative

rights.

8. Federal regulations, guidelines and practice require communitization

agreements to be effective no later than the date of first production. As a consequence,

retroactive spacing of Section 21 of Township 3 South, Range 2 West, USM, to April 7,

2012, the date of first production of the Alzada 11~21-3-2W well, is required and

appropriate under the circumstances.

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.--

9. The relief granted hereby will result in consistent and orderly development

and the greatest recovery of oil, gas and associated hydrocarbons from the Lower Green

River-Wasatch fonnations underlying the Subject Lands, prevent waste and adequately

protect the correlative rights of all affected parties.

10. Newfield has sustained its burden of proof, demonstrated good cause, and

satisfied all legal requirements for the granting of the Request.

ORDER

Based upon the Request, testimony and evidence submitted, and the findings of

fact and conclusions of law stated above, the Board hereby orders:

1. The Request in this cause is granted.

2. Application of the 139-8 Order is hereby extended to effectively establish

sectional (640-acre or substantial equivalent) drilling units for the production of oil, gas

and associated hydrocarbons from the Lower Green River and Wasatch formations, as

defined in said Order, for the 139-8 Extension Lands described above.

3. Application of the 139-84 Order is hereby extended to all of the Subject

Lands to allow up to four (4) producing Lower Green River-Wasatch wells, whether all

vertical, all horizontal, or a combination of both, upon the sectional drilling units so

established for the 139-8 Extension Lands, as well as the existing sectional drilling units

for the Existing Spaced Lands described above, subject to the same off-set limitations set

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forth in the 139-84 Order, and with no additional specific quarter section location

requirements for the first well upon such units.

4. As to Section 21 of Township 3 South, Range 2 West, USM, application of

the 139-8 and 139-84 Orders shall be retroactively effective as of April 7,2012.

5. All existing producing wells located on the Subject Lands are hereby

declared to be at legal locations notwithstanding the relief granted herein.

6. All sectional drilling units established andlor modified herein are declared

to be "permanent" for purposes of any authorized horizontal wells drilled thereon.

7. Pursuant to Utah Admin. Code Rules R641 and Utah Code Ann. §63G-4-

204 to 208, the Board has considered and decided this matter as a formal adjudication.

8. This Order is based exclusively on evidence of record in the adjudicative

proceeding or on facts officially noted, and constitutes the signed written order stating the

Board's decision and the reasons for the decision, all as required by the Administrative

Procedures Act, Utah Code Ann. §63G-4-208 and Utah Administrative Code Rule R64l-

109.

9. Notice re: Right to Seek Judicial Review by the Utah Supreme Court or to

Request Board Reconsideration: As required by Utah Code Ann. §63G-4-208(e) - (g),

the Board hereby notifies all parties in interest that they have the right to seek judicial

review of this final Board Order in this formal adjudication by filing a timely appeal with

the Utah Supreme Court within 30 days after the date that this Order issued. Utah Code

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Ann. §§63G-4-401(3)(a) and 403. As an alternative to seeking immediate judicial

review, and not as a prerequisite to seeking judicial review, the Board also hereby notifies

parties that they may elect to request that the Board reconsider this Order, which

constitutes a final agency action of the Board. Utah Code Ann. §63G-4-302, entitled,

"Agency Review - Reconsideration," states:

(I)(a) Within 20 days after the date that an order is issued for which review by the agency or by a superior agency under Section 63G-4-301 is unavailable, and if the order would otherwise constitute final agency action, any party may file a written request for reconsideration with the agency, stating the specific grounds upon which relief is requested.

(b) Unless otherwise provided by statute, the filing of the request is not a prerequisite for seeking judicial review of the order.

(2) The request for reconsideration shall be filed with the agency and one copy shall be sent by mail to each party by the person making the request.

(3)(a) The agency head, or a person designated for that purpose, shall issue a written order granting the request or denying the request.

(b) If the agency head or the person designated for that purpose does not issue an order within 20 days after the filing of the request, the request for reconsideration shall be considered to be denied.

Id. The Board also hereby notifies the parties that Utah Admin. Code Rule R641-110-

100, which is part of a group of Board rules entitled, "Rehearing and Modification of

Existing Orders," states:

Any person affected by a final order or decision of the Board may file a petition for rehearing. Unless otherwise provided, a petition for rehearing must be filed no later than the 10th day of the month following the date of signing of the final order or decision for which the rehearing is sought. A

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copy of such petition will be served on each other party to the proceeding no later than the 15th day of the month.

Id. See Utah Admin. Code Ru1e R641-11 0-200 for the required contents of a petition for

Rehearing. If there is any conflict between the deadline in Utah Code Ann. §63G-4-302

and the deadline in Utah Admin. Code Rule R641-110-IOO for moving to rehear this

matter, the Board hereby rules that the later of the two deadlines shall be available to any

party moving to rehear this matter. If the Board later denies a timely petition for

rehearing, the party may still seek judicial review of the Order by perfecting a timely

appeal with the Utah Supreme Court within 30 days thereafter.

10. The Board retains continuing jurisdiction over all the parties and over the

subject matter of this cause, except to the extent said jurisdiction may be divested by the

filing of a timely appeal to seek judicial review of this order by the Utah Supreme Court.

11. For all purposes, the Chainnan's signature on a faxed copy of this Order

shall be deemed the equivalent of a signed original.

DATED this 915 d;Jy of ~ ,2012.

STATE OF UTAH BOARD OF OIL, GAS AND MINING

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R649-3-10. Tolerances for Vertical Drilling.

1. Deviation from the vertical for short distances is permitted in the drilling of a well without special approval to straighten the hole, sidetrack junk, or correct other mechanical difficulties.

2. All wells shall be drilled such that the surface location of the well and all points along the intended well bore shall be within the tolerances allowed by R649-3-2, Location and Siting of Vertical Wells and Statewide Spacing for Horizontal Wells, or the appropriate board order.

R649-3-11. Directional Drilling.

1. Except for the tolerances allowed under R649-3-10, no well may be intentionally deviated unless the operator shall first file application and obtain approval from the division.

1.1. An application for directional drilling may be approved by the division without notice and hearing when the applicant is the owner of all the oil and gas within a radius of 460 feet from all points along the intended well bore, or the applicant has obtained the ""ritten consent of the owner to the proposed directional drilling program.

1.2. An application for directional drilling may be included as part of the initial APD for a proposed well.

2. An application for directional drilling shall include the following information:

2.1. The name and address ofthe operator.

2.2. The lease name, well number, field name, reservoir name, and county where the proposed well is located.

2.3. A plat or sketch showing the distance from the surface location to section and lease lines, the target location within the intended producing interval, and any point along the intended well bore outside the 460 foot radius for which the consent of the owner has been obtained.

2-4. The reason for the intentional deviation.

2.5. The signature of designated agent or representative of operator.

3. Within 30 days following completion of a directionally drilled well, a complete angular deviation and directional survey of the well obtained by an approved well survey company shall be filed with the division, together with other regularly required reports.

Page 48: F I LED - Utah … · f i led sep 232013 secretary, board of oil, gas & mining before the board of oil, gas and mining department of natural resources state of utah in the ma iter

Reference Locator Plat Docket No. 2013-033 Cause No. 131-135

Exhibit C

Page 49: F I LED - Utah … · f i led sep 232013 secretary, board of oil, gas & mining before the board of oil, gas and mining department of natural resources state of utah in the ma iter

Well Name

FD 3-29D-2-2

FD 5-17D-2-2

FD 9-9D-6-19

FD 14-21D-5-19

SA 16-27D-23

SA 14-26D-22

REASONS FOR SURFACE HOLE LOCATION PLACEMENT

Reason for Location

- Drilled directionally to avoid having the well pad location on or near FWS Wetlands and Riparian environment.

- Drilled directionally to accommodate topographical features such as large ridge to the south and canal/stream to the north.

- Drilled directionally to accommodate Mr. Vernon Richens' agricultural use of the surface estate directly above the target bottom hole

location. This was a viable and economic way to abide by rule R649-3-38. Surface Owner Protection Act Provisions, Section 3, which states,

"Oil and gas operations shall be conducted in such manner as to prevent unreasonable loss of a surface land owner's crops on surface land,

unreasonable loss of value of existing improvements owned by a surface land owner on surface land, and unreasonable permanent damage to

surface land." (http://utrules.eregulations.us/code/rule/R649-3-38)

- Drilled directionally to:

1) avoid having the well pad location on or near FWS Wetlands and Riparian environment.

2) accommodate Mr. Glen Huber's use of the surface estate directly above the target bottom hole location which he identified as the

premier pasture ground on his property.

- moved off center to minimize crop damage

- remove it from the path of a future pivot

-offset to place the location within the boundaries of a single lot within a platted (though as yet undeveloped) subdivisions, minimizing our

impact to surface owners planned use

Docket No. 2013-033 Cause No. 131-135

Exhibit D

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u o

"f' 9~2SI2E - 21

\

~O

\1, FO 3·290·2·2 I

---~ - - -- __ flllJ-_1III

I

I

• I

I I I

I I 29 I

I , I

I I I

I I

-_ .. ------

, t I I

I I I

I I I

I

,

I I I I

I I ;----

... -- ~------. -_ .. ------

I

Legend

Bill Barrett Corporation • Surface Hole Location 460 foot Horizontal Wellbore Buffer

FO 3-290-2-2 SHL (300' FNLl1925'FWL) BHL (660' FNLl1980'FWL)

T2S-R2E SECTION 29 Unitah County, UT

• Bottom Hole Location L _ I Negative 660 Foot Section Buffer

----- Planned Horizontal Wellbore C Drilling Unit Boundary

EXHIBITE D BBe Leasehold

28

___ Feel

5001,000 o

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Bill Barrett Corporation

COMPANY DETAILS: BILL BARRETT CORP

Calculation Method: Minimum Curvature Error System: ISCWSA Scan Method: Closest Approach 3D Error Surface: Elliptical Conic

Warning Method: Error Ratio

SITE DETAILS: FD 3-290-2-2 Fort Duchesne

Site Latitude: 40° 17' 12.260 N Site Longitude: 109° 47' 43.400 W

Positional Uncertainity: 0.0 Convergence: 1.12

Local North: True

WELL DETAILS: FO 3-290-2-2 Ground Level: 5075.0

+N/-S +E/-W Northing Easting Latillude Longitude Slot 0.0 0.0 -12310.94 2475593.68 40' 17' 12.260 N 109' 47' 43.400 W

WELLBORE TARGET DETAILS (LAT/LONG)

Name TVO +N/-S +E/-W Latitude Longitude Shape FO 3-290-2-2 BTV 7000.0 -359.2 57.5 40' 17' 8.711 N 109' 47' 42.659 W Rectangle (Sides: L200.0 W200.0)

FO 3-290-2-2 PBHL 10416.0 -359.2 57.5 40' 17' 8.711 N 109' 47' 42.659 W Rectangle (Sides: L200.0 W200.0)

SECTION DETAILS FORMATION TOP DETAILS

TVDPath MDPath Formation Sec MO Inc Azi TVO +N/-S +E/-W OLeg TFace VSec Target 5480.0 5489.3 Green River 1 0.0 0.00 0.00 0.0 0.0 0.0 0.00 0.00 0.0 6560.0 6572.0 Mahogany

2 1600.0 0.00 0.00 1600.0 0.0 0.0 0.00 0.00 0.0 7809.0 7821.7 TGR3

3 1870.5 4.06170.91 1870.2 -9.5 1.5 1.50 170.91 9.6 7987.0 7999.7 Douglas Creek 8486.0 8498.7 Black Shale Facies

4 6742.2 4.06170.91 6729.8 -349.8 56.0 0.00 0.00 354.2 8693.0 8705.7 Castle Peak 5 7012.7 0.00 0.00 7000.0 -359.2 57.5 1.50 180.00 363.8 FO 3-290-2-2 BTV 8853.0 8865.7 Uleland Butle

6 10428.7 0.00 0.00 10416.0 -359.2 57.5 0.00 0.00 363.8 FO 3-290-2-2 PBHL 9419,0 9431 .7 Wasatch

CASING DETAILS

No casing data is available I '1 j.: .. ~ I L,.i J I 't I

o~-~~~~~~~~~~~~~;-~~;-~+-~ I I Slart BUil~ 1.sOi l, _ "I-Ll J. I I I I 1 t l' I III I i , -' \ 1- 1 Slart 4871 .8 hold at 1870.5 ~D I

-75 - I 1 \1 1 I I I I! I I 1 I

c II i i: I Ii' ~\ ii' ::1 i,!: I, i ~-150~-~~~~I ;-rr+-~~I \'~~~~~~~~-r~~ &5 ! I: I I 1\' 1111 I' I' 'II I :s ,I f I I I' I I ~ -225 I I I I I IpB~L: !6 io FNL & 19 0 FWL

~ 1 ! I I ' J.\ _ Jj i .1: I I I' I ~ -: t! I -I I I I i I II ~~ta~~r~p ;\50

0

i I I! II -I I

- I , II 1500

I II -

~ -300 I I I II I I I I I\. l1-f. !' I I I I I , II :-? 3000 1- I ~

~ .

i l l ! I II 0 0 0 (f) -£,4500 a. <ll 0

~ 6000"': 'E <ll > <ll 27500 I-

-9000

I - , I I I I ,

I I II I , I I II I I

Green Riv~t i \ I ! 1

~~. I I I

. ~ lJ I I : SlartD"","~ 1 I; f

l"Y+-t-++--++...,--l--T-f-I-l-+-', ,ti ll i i 11 -I. J I J I I I

]GR3_ Douglas Cree I . , ! I!

J~ ~ 1 , I I r-+-:- DI.cI< Sh.'" f ,.;. - ~ .. '1 J. I I I I 111 : j , I

r+-F-i--" C8a.1:o Pt! I

, '1 I - , I I 1 I I J.

I

I I ,

.! Ui_But

"II I . _. I 111 TOni 1()42t!.7

II 'f~

4500 -3000 -1500 0 1ioo 3000

Vertical Section at 170.91 0 (3000 ftlin)

i I

(f) I 1 I : i\ ' -1-1 t _ _ FD 3-290·2-2 BTv

-375--Slart3416.oholdaI7012.7 .Mi,f ~ ~~_I Ii 1 LL i I 'III i I I I VI ii' ,- I n~ 3-2~DI_2~2 IpB~ I TO at 10428], , I! I I ! I,

- 'I I I ', I t , -, I I I I I

-450 I II: I I'; 11 I';! I It: I I I

J - I

I I ----r

I I

-150 -75 ~ /5 ' 150 225

West(-)/East( +) (150 ftlin)

Azimuths to True North Magnetic North: 11.01 '

300

4500

Magnetic Field Strength: 52299.1snT

Dip Angle: 66.00' Date: 4/19/2013

Model: IGRF2010

Page 52: F I LED - Utah … · f i led sep 232013 secretary, board of oil, gas & mining before the board of oil, gas and mining department of natural resources state of utah in the ma iter

L3 35.76

L4 35.74

L1 35.26

L2 35.24

L3 35.2

I

I I I

o I

I I

-.l

Bill Barrett Corporation 5·170·2·2 FO

SHL (1550' FNLl500' FWL) BHL (1980' FNLl660'FWL)

T2S·R2E SECTION 17 Unitah County, UT

I I

I I I

L2

Legend

• Surface Hole Location , 460 foot Horizontal Wellbore Buffer

• Bottom Hole Location L _ I Negative 660 Foot Section Buffer

----- PlaDned Horizontal Wellbore C Drilling Unit Boundary

LI5 ;:''3. 67

L5 39.78

I

I I I

9

~ \

L1 18.5

I-

EXHIbiT F 0 BBG Leasehold - __ Feet a 5001,000

Page 53: F I LED - Utah … · f i led sep 232013 secretary, board of oil, gas & mining before the board of oil, gas and mining department of natural resources state of utah in the ma iter

B Bill Barrett Corporation

COMPANY DETAILS: BILL BARRETT CORP

Calculation Method: Minimum CUNature Error System: ISCWSA Scan Method: Closest Approach 3D Error Surface: Elliptical Conic

Warning Method: Error Ratio

SITE DETAILS: FD 5-170-2-2 Fort Duchesne

Site Latitude: 40° 18' 44.251 N Site longitude: 109° 48' 2.099 W

Positional Uncertainity: 0.0 Convergence: 1.12

Local North: True

WELL DETAILS: FO 5-170-2-2 Ground Level: 5168.0

+N/-S +E/-W Northing Easting Latittude Longitude 1090 48' 2.099 W 0.0 0.0 -3031.30 2473962.66 40· 18' 44.251 N

WELLBORE TARGET DETAILS (LAT/LONG)

Name TVO +N/-S +E/-W Latitude Longitude Shape FD 5-170-2-2 BTV 7000.0 -426.3 160.9 400 18' 40.039 N 1090 48' 0.022 W Rectangle (Sides: L200.0 W200.0)

FO 5-170-2-2 PBHL 12656.0 -426.3 160.9 40° 18' 40.039 N 109° 48' 0.022 W Rectangle (Sides: L200.0 W200.0)

SECTION DETAILS FORMATION TOP DETAILS

TVDPalh MDPalh Formalion Sec MO Inc Azi TVO +N/-S +E/-W OLeg TFace VSec Target 5820.0 5839.3 Green River

1 0.0 0.00 0.00 0.0 0.0 0.0 0.00 0.00 0.0 7146.0 7171.2 Mahogany

2 2600.0 0.00 0.00 2600.0 0.0 0.0 0.00 0.00 0.0 8052.0 8077.2 TGR3 8234.0 8259.2 Douglas Creek

Slot

3 3037.3 6.56159.32 3036.4 -23.4 8.8 1.50 159.32 25.0 8668.0 8693.2 Black Shale Facies 4 6587.8 6.56159.32 6563.6 -402.9 152.1 0.00 0.00 430.6 5 7025.2 0.00 0.00 7000.0 -426.3 160.9 1.50 180.00 455.6 6 12681 .2 0.00 0.00 12656.0 -426.3 160.9 0.00 0.00 455.6

CASING DETAilS

No casing data is available

- ' ~' I . I I : I • 1 2000 -l;Ff:~F:!::!=I:=t'~'=I=:!=\:::!=l:::\:::~:IIR::::\:::!=f:t=l::::\:::I=I=~. =1'R=H::!=j

=,'[1 i.1 · ·~1 : ', '!Norlh\H 1"'"1, i III L ~ ,: II II I I I,

\

' 1D oI12eai li: '- FOS,170-2-2 P1!H!: I I I I 1 '1 ' 1 I 1' 11' 1 I I I I '

-4000 -2000 a 20100 ~OOO 6000

Vertical Section at 159.32° (4000 Win)

FD 5-170-2-2 BTV FD 5-170-2-2 PBHL

8925.0 8950.2 Castle Peak 9176.0 9201 .2 Uleland Butte 9656.0 9681.2 Wasalch

11407.0 11432.2 North Horn 11829.0 11854.2 Fouch

Azimuths to True North Magnetic North: 11.010

Magnetic Field Strength: 52270.7snT

Dip Angle: 66.02· Date: 4/19/2013

Model: IGRF2010

t.lOl"OI\lOI1" - lIm~ ~I '/ 11~

Page 54: F I LED - Utah … · f i led sep 232013 secretary, board of oil, gas & mining before the board of oil, gas and mining department of natural resources state of utah in the ma iter

\ \

12 21.33

-~~

8 L3 37.91

... - .... 1

j - - --

4

- - - - -

T40 122.45

\ I I

,~ U

, U; , L5

L4 20.47 I 25 .67 I LrS.72

14. 6 I I

~

,---""--------. __ LJ. --

31.38

L1 38.41'

I

I I \

I I

r-- --- i ----

L2 35.27

Z

1

• I 1 I .--- - --.

L13 39. 95

I

1 1 1 1 1

:17 I ,

1- .~ .....

I 1

I I I

I I ,

12 39.99

, I I I I 1..3

8.55

L4-25.7

1 I

1 I 1 I L5 " ------. - -- ------I -- ~n -

__ I

Legend

• Surface Hole Location

1---- I ~ ...- ~ : 'I.. ___ -'-

• U 25.51

9 FD 9 .9D:r.~w{'

~,r 1 r. 2 ___ - - - .... 1 319_ ~ 5 , I 1 , 1 1 I 1

.... --_. \ "x T47 L6 I

55.94 11.31 I

~----

L1 16 U 18.58 34.11

~ \ ,-.----

N

460 foot Horizontal Well bore Buffer

Bill Barrett Corporation

9-90-6-19 FO - - t SHL (2950' FNLl225' FEL) BHL (3300' FNLl660'FEL)

T6S-R19E SECTION 9 Unitah County, UT

• Bottom Hole Location L _ 1 Negative 660 Foot Section Buffer

----- Planned Horizontal Wellbore Drilling Unit Boundary

EXHIBIT G D SBG Leasehold

___ Fee~

500 1,000 o

Page 55: F I LED - Utah … · f i led sep 232013 secretary, board of oil, gas & mining before the board of oil, gas and mining department of natural resources state of utah in the ma iter

Bill Barrett Corporation

COMPANY DETAILS: BILL BARRETT CORP

Calculation Method: Minimum Curvature Error System: ISCWSA Scan Method: Closest Approach 3D Error Surface: Elliptical Conic

Warning Method: Error Ratio

+N/-S 0.0

+E/-W 0.0

SITE DETAILS: FD 9-90-6-19 Fort Duchesne

Site Latitude: 40° 18' 42.271 N Site Longitude: 109° 46' 43.900 W

Positional Uncertainity: 0.0 Convergence: 1.13

Local North: True

WELL DETAILS: FO 9-90-6-19

Northing -3112.41

Ground Level: Easting

2480024.04

5148.0 Latittude

40· 18' 42.271 N

--

Longitude 109· 46' 43.900 W

WELLBORE TARGET DETAILS (LAT/LONG)

Name TVO +N/-S +E/-W Latitude Longitude Shape FO 9-90-6-19 BTV 7000.0 -350.1 -434.010· 18' 38.812 N 109' 46' 49.501 W Rectangle (Sides: L200.0 W200.0)

FO 9-90-6-19 PBHL 12038.0 -350.1 -434.010· 18' 38.812 N 109· 46' 49.501 W Rectangle (Sides: L200.0 W200.0)

SECTION DETAILS FORMATION TOP DETAILS

TVDPalh MDPath Formation Sec MO Inc Azi TVO +N/-S +E/-W OLeg TFace VSec Target 5823.0 5852.8 Green River 1 0.0 0.00 0.00 0.0 0.0 0.0 0.00 0.00 0.0 7088.0 7126.3 Mahogany

2 2600.0 0.00 0.00 2600.0 0.0 0.0 0.00 0.00 0.0 7958.0 7996.3 TGR3 8118.0 8156.3 Douglas Creek

Slot

3 3149.5 8.24231.11 3147.6 -24.8 -30.7 1.50 231.11 39.5 8603.0 8641 .3 Black Shale Facies 4 6488.8 8.24231.11 6452.4 -325.3 -403.3 0.00 0.00 518.2 8888.0 8926.3 Castle Peak

5 7038.3 0.00 0.00 7000.0 -350.1 -434.0 1.50 180.00 557.6 FD 9-90-6-19 BTV 9038.0 9076.3 Uteland BuUe

6 12076.3 0.00 0.00 12038.0 -350.1 -434.0 0.00 0.00 557 .6 FD 9-90-6-19 PBHL 9538.0 9576.3 Wasatch

CASING DETAILS

No casing data is available 100 ' !' ! J \ ' I -1. ' ' ! 1 : o_-i l.~_11_1~~i:~~;~:T:+-'~1~~B~H+',"!~~,00_r_~, +-~~6r~,FET,L~;~I __ ~hi ~~~: -rl : II I. J 1 !I II: l' Y ';1

~-100 II I j \ I , I I'" I , 'I

O-rrr---.-,""'" --.----r-r---r-rrr---l..-r--r-r-r-;-r-;' ............ -.--l g _ i ,. 1 I: I : , l-11 I, : I ' I ! - I I III : . !I -I' I II i : I I :--200--H------;I~if__+_ slartDrop-1.50 1 I, /i I I

II 1750 I I ~J I 1 I: € : I , l \ I I I 4f ' I I I I I -c l I I '" I' ! I ',I ~ -: I : 11\ 2~ I I I ,I I i I: , ; . _ r I I I I; i II 'i I ~.3oo __ = I " t 1J.l)K' I I I I I I II I J

; 3500 I " 1,1 I ! I 'I \ 11 I! III III ~ '" I I Tr·~,:·:l l·,~-r-9D·I·19 IB~ I I : :-; ,I , ~ I I ! 1,1 i I -400 - I I!I! I III! I FD9.9D.6.19PBHd._L--;\-+1 ~ITI+--I-rll ~ 5250- G! .. n 11'..,., I - I I .I.L "J I 1 I " I II I, .c 11 , ' SwtOrop.1.5</ ! " I -0. : . - . - . ill ............... ,'--1 r I I r I TD at 12076,3 \ : I I II I I : c3 ", I III I I! I, '1'1 ,I [! :! I I I -500 Slart 5038.0 hold at 7038.3

1

i lD I I I' I , , - ';~ L ~""1 6Il38.~ ho!d., 7,038.3,· 111 I I I I I I , "', II ~ 7000---Pi~==2=l**=F*F=~=i='*=*99A1fi#.=f=R=!=ii=l==I=i=;=~ _ - I I t I I I' I I ill I '

~ - - 1_ ~Gll j ; I ..., ;;~F~ ~19~.6-\ 9 ~J I I -600 -5~0 '4~O -3~0 ~200 .100 o

~ :-~IT~_:_ tf-~D~~~la~S ~~':Mrr!!~~EE~I ~'-~-I~~E!I ~5EEEI ~~JU~ ________ ~~W~e;st~(-~)/~E~a~st~(+~)~(2;0;0~W~i;n~)======~--~ t= 8750 BII\dIShlltoF

:t'-::l-'c.siIop;~ 111! I I I "I 'I rl,-ry-'~ .l 1 III!: _' !, I I I I

10500 __ W .... j!-- ~Buti. " I I , I ,J I I

1': II; ~L ~~!e 3: ~iJDlg.91~Ulj PI» I, Ii I I:

I I II ; I ,- I I I , ·5250

t , ,1_ -3500 ·1750 0 1750 3500 5250

Vertical Section at 231.11 0 (3500 Win)

Azimuths to True North Magnetic North: 11.00°

Magnetic Field Strength: 52273.5snT

Dip Angle: 66.02° Date: 4/19/2013

Model: IGRF2010

_.

Page 56: F I LED - Utah … · f i led sep 232013 secretary, board of oil, gas & mining before the board of oil, gas and mining department of natural resources state of utah in the ma iter

L?

L8 39.94

L2 38.53

L3 !20 17.15

L1 35.92

L4 35.7.

I

1~.~~ 29

L1 19.36

I

-)... -- D -- -

I

--4 --­, L8

j 38.62 ~ , I

41.85

L4

L1

___ ------ -----~--I

..- 21

.. - - -- -------_ .

28

"'1111!~ Bill Barrett Corporation Legend • Surface Hole Location 460 foot Horizontal WeliboreBuffer

FO 14-210-5-19 SHL (410' FNLl2299' FWL) BHL (660' FNLl1988'FWL)

T5S-R19E SECTION 21 Unitah County, UT

- -• Bottom Hole Location L _ I Negative 660 Foot Section Buffer

----, Planned Horizontal Wellbore C Drilling Unit Boundary

EXH f B n . H D BBC Leasehold ____ Fee

500 1,000 o

Page 57: F I LED - Utah … · f i led sep 232013 secretary, board of oil, gas & mining before the board of oil, gas and mining department of natural resources state of utah in the ma iter

@ Bill Barrett Corporation

COMPANY DETAILS: BILL BARRETT CORP

Calculation Method: Minimum Curvature Error System: ISCWSA Scan Method: Closest Approach 3D Error Surface: Elliptical Conic

Warning Method: Error Ratio

Name

SITE DETAILS: FD 14-210-5-19 East Bluebell

Site Latitude: 40° 21' 41.789 N Site Longitude: 109° 47' 46.259 W

Positional Uncertainity: 0.0 Convergence: 1.12

Local North: True

WELL DETAILS: FD 14-210-5-19 Ground Level: 5326.0

+N/-S +E/-W Northing Easting Latittude Longitude Slot 0.0 0.0 14956.652474837.38 40'21'41.789N 109° 47'46.259 W

WELLBORE TARGET DETAILS (LAT/LONG)

+E/-W Latitude Shape FD 14-21D-5-19

FD 14-210-5-19 PBHL

TVD 7000.0

13230.0

+N/-S 245.9 245.9

-313.5\0° 21' 44.219 N -313.5\0° 21' 44.219 N

Longitude 109' 47' 50.309 W 109' 47' 50.309 W

Rectangle (Sides: L200.0 W200.0) Rectangle (Sides: L200.0 W200.0)

SECTION DETAILS FORMATION TOP DETAILS

Sec MD Inc Azi TVD +N/-S +E/-W DLeg TFace VSec Target TVDPath

6265.0 7015.0 8285.0 8545.0 8960.0 9155.0

10230.0

MDPath 6287.2 7040.8 8310.8 8570.8 8985,8 9180.8

10255.8

Formation Green River Mahogany TGR3

1 0.0 0.00 0.00 0.0 0.0 0.0 0.00 0.00 0.0 2 3600.0 0.00 0.00 3600.0 0.0 0.0 0.00 0.00 0.0 3 4126.5 7.90 308.11 4124.8 22.4 -28.5 1.50 308.11 36.2 4 6499.3 7.90308.11 6475.2 223.6 -285.0 0.00 0.00 362.3 5 7025.8 0.00 0.00 7000.0 245.9 -313.5 1.50 180.00 398.5 FD 14-210-5-19

Douglas Creek Black Shale Facies Castle Peak Wasatch

613255.8 0.00 0.00 13230.0 245.9 -313.5 0.00 0.00 398.5 FD 14-21 D-5-19 PBHL

CASING DETAILS

No casing data is available

375

O-rrr".-rr'-.-rr.-.--r.--rrr".--.-.~1 300 C £! a ~ 225

I I r 'I I, I' j II r ~I r I" 1- I I 1750--+H--H-+-H-+--+-H-+-+-+--I-+--i;r-+--HI--+--,,--,--+I --L1 +-il.....,'

I I 1'1 I I I II "+ r: t ~ 150 I '1 I! , ~ rrrn II I! I 3500 - I'

~ , I : I! I \ JTmli"~1 7 r: "5 0

(/) 8 5250- Green Rivo I I ! I, ' I

~ : ' III j - ! I! ,J1iri l . I t 7000 L ~a~og~n~ I I I I I I I L _~,~rt 6230.0 hold a: 7025.6 ~,o:

I I I ' ! I '- I I I J I I I I I ~ _ TCiRJ t I IF~ 114'21'O'51 '1 ~ ' I 'I II ri ~I I I I I I I----y=-

t 8750iij~~~- ~D~0UQI~ .. ~Ct~··i~~~il~~' gi~~~'~'~1 ~ -:: - I - , Q) - ~'.l.I - '~I·JB~ Sha'. f.J I i I! I 2 -I Castle Peak I I I I L I I I I I- ". I I

10500 ~.'..Ia; I 'I I I ' I I I

-- I 1- I ! i !! I.! I I II : 12250 I ! I' I I ; I

. I jl I' I! ! I . - ,i- ,_ , II , I I

_i++++t-+-ltrlt T~a"32j;5.8 j' I F014·210-5·19.PIlfIL I i 14000

I i I I : IIi I I II I

-5250 1. I • J. "

-3500 ·1750 0 1750 3500 5250

Vertical Section at 308.110 (3500 ftlin)

75

- I J TJ i t II, I' ., II .. I· I I .J.. ~,2 .. ,. I J '- 1 · 1 I' PBHl 6ouFSiJ .. 1988FWL i

-

--

It t I,>. , K-" q·.I"LLL I I I J I I I TD at ,13255 81 ~\ ! I ~ I II St~rt 6230.0 hold 8

17025.8 ~q

I ,I , II =HI' N. II I, I I I ---

I " ·450 -375 -300 -225 -150 -75 o

West( -)/East( +) (150 ftlin)

Azimuths to True North Magnetic North: 11.08°

Magnetic Field Strength: 52345.0snT

Dip Angle: 66.07° Date: 10/23/2012 Model: IGRF2010

Page 58: F I LED - Utah … · f i led sep 232013 secretary, board of oil, gas & mining before the board of oil, gas and mining department of natural resources state of utah in the ma iter

22 23

-

r----, . -- --- -------- ---\

1 1 1 1 1 I I •

- . 1 r--

I I

1 I

1 1 26 , 27 DO 1

I I

['----

-,-

I I

I I

I _{ _l 1 '" 1- _ .. -------",.- i) , SA 16.270.23·

0 34 --- 35

Bill Barrett Corporation Legend

SA 16-270-23 SHL (325' FSLl223' FEL) BHL (810' FSLl810' FEL) T2S-R3W SECTION 27 Duchesne County, UT

• Surface Hole Location 460 foot Horizontal Wellbore Buffer

• Bottom Hole Location l. _ I Negative 660 Foot Section Buffer

----. Planned Horizontal Wellbore C Drilling Unit Boundary

EXHfBIT I D BBG Leasehold

___ Fee

o 5001,000

Page 59: F I LED - Utah … · f i led sep 232013 secretary, board of oil, gas & mining before the board of oil, gas and mining department of natural resources state of utah in the ma iter

(8 Bill Barrett Corporation

COMPANY DETAILS: BILL BARRETT CORP

Calculation Method: Minimum Curvature Error System: ISCWSA Scan Method: Closest Approach 3D Error Surface: Elliptical Conic

Warning Method: Error Ratio

SITE DETAILS: 14-260-22 SA South Altamont

Site Latitude: 40° 16' 25.910 N Site Longitude: 110° 4' 44.980 W

Positional Uncertainity: 0.0 Convergence: 0.91

Local North: True

WELL DETAILS: 14-26D-22 SA Ground Level: 5222.0

+N/-S +E/-W Northing Easting Latittude 0.0 0.0 709950.94 2396437.02 40" 16' 25.910 N

Longitude 110" 4' 44.980 W

WELLBORE TARGET DETAILS (LAT/LONG)

Name TVD +N/-S +E/-W Latitude Longitude Shape 14-26D-22 SA BTV 7000.0 389.8 171.3 40" 16' 29.762 N 110" 4' 42.769 W Rectangle (Sides: L200.0 W200.0)

14-26D-22 SA PBHL 11896.0 389.8 171.340"16'29.762N 1100 4' 42.769 W Rectangle (Sides: L200.0 W200.0)

SECTION DETAILS FORMATION TOP DETAILS

TVDPath MDPath Formation Sec MO Inc Azi TVO +N/-S +E/-W DLeg TFace VSec Target 4582.0 4591.7 Green River 1 0.0 0.00 0.00 0.0 0.0 0.0 0.00 0.00 0.0 6204.0 6222.9 Mahogany

2 2600.0 0.00 0.00 2600.0 0.0 0.0 0.00 0.00 0.0 7697.0 7718.9 TGR3 7937.0 7958.9 Douglas Creek

Slot

3 3005.7 6.08 23.73 3004.9 19.7 8.7 1.50 23.73 21.5 9134.0 9155.9 Black Shale Facies 4 6616.2 6.08 23.73 6595.1 370.1 162.7 0.00 0.00 5 7021.9 0.00 0.00 7000.0 389.8 171.3 1.50 180.00 6 11917.9 0.00 0.00 11896.0 389.8 171.3 0.00 0.00

CASING DETAILS

No casing data is available

O~-~I~~I ~I,~I~~_ ~_:~~~Bl~llt~;~~!~:: '

1750-l+-t_ -+++1++ +-++-1 !+HI -+-Ht-T-T-+J~: +++11 +++-1 t-'-;-,r-:I

! 3500-1_"" ~ -j-.!1-++-H1· +-+---'-+--f-1-: ++II -HII~~ i'lITtM

~ I \ I II I 1' 1 ?; 5250-1-1-1-+-1--+-1-1-",-++-1-1--;-1 -1-1-+1-11-1 -H,-+H-H-+H--!-tI

0. I Stotto..,, -I '!f Q) _.I~_~--'-+--+-CH-,f-I--,l-il-I--'-+-+-I-I-+,_"""",'+I ~~ I . -! .. o _ I I 1 I· . f -I Slo~ 4696.0 ~d 01 702'.9 ~: ~ 7000- -TG.;~+4+-~~' -H~' ++-H~I ~r4'~-H-+' 7' 4-IH-'+' ~1 t - ; ' 1 I jl 1- I !l ' I r I ~ ~~I~kt±i=t~~~~~~~t~t.lI '~I;~·2~~~~2~~~~a~~~! Q) - L j ~.- I T'I I - I, i

l 2 8750-l- HOoJ--:-Qlas--j--<C< ..... 8II .... .'-I--t--t--"-+++-Hrl--HIIH-''-t-+t-H-++-++-tl

I- CasU. Po ' I _L1.1. -- ..... _ _ _ uto1and8~ t

- _L - ' • Wasalch I I l I I I I l.l I -- -.

10500 I

I - -- I -

-I I

I! I I I I! I I 1

II TDat119'~ 1 14-26D-22SAPBH- I ' I 1' 111' I --=;1' 11 i II I:

404.2 9262.0 9283.9 Castle Peak 425.8 14-260-22 SA BTV 9580.0 9601.9 Uteland Butte

425.8 14-260-22 SA PBHL 9896.0 9917.9 Wasatch

450 il"1 ~ , 'I J I ' I , I I l : , =r 11i r 1- I' 11 . _ -: 14-2,6D-22 r ST -_. i. _ I .~ _"- - ~~ - . I I I I - I

375 ' l' TO at 11917;~ -, • T .~ I ·'" - - 14-26D-22 SA pst!!:

'2 -= I 1_: I I I ; . -'- .,,'.:- ~ q IL ! I I '1 ~ - II I StartDrop-1.50 I JI " I I \ II o -1 I I I I I - 'I' 1- i 1-

: 300 -i I I! I :' , I' I i I I I!I :2

225- .1 ~ I ,I 71 L~J:190FNJ&1r9&! F~U -

~ :! I I 'I: I ~ I III i I: 11 s I I! j 1-1 I ,I 1: I I ~ 150 -'.1 ! II ! I j . I I' .! I I! i

_I I 1 -' II ' I I ; I I I

75 _I 1 ~ ~lx! .l ~t~~;rri5 rl'd at 3, 0507

1

'1 I :1 I l-r' .SlartBuild1 .50 j I 1

o I 1- , '; ~ -:-, 'I I ' I I ! , I, '

-75 I "" ,

75 150 225 300

West(-)/East(+) (150 Win)

T

/\ M Azimuths to True North Magnetic North: 11.12°

375

-5250 -3500 -1~50 0 17150 3500 5250 ,K Magnetic Field

Strength: 52210.2snT Dip Angle: 65_93°

Date: 4/22/2013 Model: IGRF2010

Vertical Section at 23.73 0 (3500 Win)

'-V tor::~CQIVQn ' IVI~V 1 IZ 11~

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7

~4

I I I

---~-~-~- --- ... --~--. I I

I I ,. • I I , I I 26 , I

I I I

I

I I I

1_-- -- ...... - --_ .... -_ .. -I

) SA 14-260-22·

35

, t

I I I I I I L2

, L1 L4

L2 I L1 L4 L3

I I 41.05 I 40.99 40.89 .11 ?R

, 41.22 41.17 41.11

Bill Barrett Corporation Legend

SA 14-260-22 SHL (415' FSLl1808' FWL) BHL (810' FSLl1980' FWL)

T2S-R2W SECTION 26 Duchesne County, UT

• Surface Hole Location 460 foot Horizontal Wellbore Buffer

• Bottom Hole Location L _ I Negative 660 Foot Section Buffer

- ---. Planned Horizontal Wellbore C Drilling Unit Boundary

EXHIBIT .J D BBe Leasehold

t , I L3 I 40.65 I

~

t ___ Fee

5001,000 o

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Bill Barrett Corporation

COMPANY DETAILS: BILL BARRETT CORP

Calculation Method: Minimum Curvature Error System: ISCWSA Scan Method: Closest Approach 3D Error Surface: Elliptical Conic

Warning Method: Error Ratio

SITE DETAILS: SA 16-270-23 South Altamont

Site Latitude: 40° 16' 24.532 N Site Longitude: 110° 11' 59.500 W

Positional Uncertainity: 0.0 Convergence: 0.83

Local North: True

WELL DETAILS: SA 16-270-23 Ground Level:

+N/-S 0.0

+E/-W 0.0

Northing 709299.18

Easting 2362764.28

5672.0 Latittude

40° 16' 24.532 N Longitude

110' 11'59.500W Slot

WELLBORE TARGET DETAILS (LAT/LONG)

Name TVO +N/-S +E/-W Latitude Longitude SA 16-270-23 BTV 6607.0 481.6 -575.910' 16' 29.291 N 110' 12' 6.930 W

SA 16-270-23 PBHL 11787.0 481.6 -575.910' 16' 29.291 N 110' 12'6.930W

SECTION DETAILS

Sec MO Inc Azi TVO +N/-S +E/-W OLeg TFace VSec Target 1 0.0 0.00 0.00 0.0 0.0 0.0 0.00 0.00 0.0 2 1700.0 0.00 0.00 1700.0 0.0 0.0 0.00 0.00 0.0 3 2370.1 10.05309.90 2366.7 37.6 -45.0 1.50 309.90 58.6 4 5999.4 10.05309.90 5940.3 444.0 -530.9 0.00 0.00 692.1 5 6669.6 0.00 0.00 6607.0 481.6 -575.9 1.50 180.00 750.7 SA 16-270-23 BTV 6 11849.6 0.00 0.00 11787.0 481.6 -575.9 0.00 0.00 750.7 SA 16-270-23 PBHL

CASING DETAILS

No casing data is available

-6JOO -4000 -2000 ~ 20'00 4000 6000

Vertical Section at 309.90° (4000 ftlin)

Shape Rectangle (Sides: L200.o W200.0) Rectangle (Sides: L2oo.o W20O.0)

FORMATION TOP DETAILS

TVDPath MDPath Formation Fouch L MKR

2521.0 2526.8 Uinta 4747.0 4787.5 Trona Top 5447.0 5498.5 Trona Base 6607.0 6669.6 Mahogany 7937.0 7999.6 TGR3 9567.0 9649.6 Black Shale Facies 9687.0 9749.6 CasUe Peak

10287.0 10349.6 Wasatch

IlL I

I I -'

, I: 1

Azimuths to True North Magnetic North: 11.19°

Magnetic Field Strength: 52209.9snT

Dip Angle: 65.91 ° Date: 2/6/2013

Model: IGRF2010

o

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