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

STATE OF UTAH

F I LED SEP 242012

SECRETARY, BOARD OF OIL, GAS & MINING

IN THE MATTER OF THE REQUEST FOR AGENCY

ACTION OF BILL BARRETT CORPORATION FOR

AN ORDER AUTHORIZING THE FLARING OF GAS

IN EXCESS OF THE AMOUNTS ALLOWED UNDER

UTAH ADMIN. CODE RULE R649-3-20(1.1)

FROM THE 10-22-22 SOUTH ALTAMONT WELL

LOCATED IN THE NWI;4SEI;4 OF SECTION 22 AND

THE l3-22-22 SOUTH ALTAMONT WELL

LOCATED IN THE SWl;4SWI;4 OF SECTION 22,

ALL IN TOWNSHIP 2 SOUTH, RANGE 2 WEST,

U M DUCHESNE COUNTY, UTAH

PETITIONER'S EXHIBITS

Docket No. 2012-035

Cause No. 144-31

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

Corporation ("BBC"), by and through its counsel of record, Beatty & Wozniak, P.C.,

hereby respectfully submits the following exhibits intended to be offered into evidence in

support of its Request for Agency Action ("RAA") at the October 24,2012 hearing on this

cause:

EXHIBIT "A" - BBC's witnesses' resumes (collectively 3 pages):

• Matthew P. Wold - Landman • Anna M. Young - Sr. Reservoir Engineer

EXHIBIT "B" - General reference location plat (1 page).

EXHIBIT "C" - Plat reflecting location of wells in subject Section 22 (l page).

EXHIBIT "D" - Plat reflecting planned pipeline from existing pipeline to the 10-22 Well and the 13-22 Well (l page).

EXHIBIT "E" - Gas Analysis of the 10-22 Well (also previously submitted as Exhibit "2" to the RAA) (l page).

5015.108

EXHIBIT "F" - Gas Analysis of the 13-22 Well (1 page).

EXHIBIT "G" - Actual Production of the 10-22 Well (1 page).

EXHIBIT "H" - Projected Production of the 10-22 Well (1 page).

EXHIBIT "I" - Actual Production of the 13-22 Well (1 page).

EXHIBIT "J" - Projected Production of the 13-22 Well (1 page).

EXHIBIT "K" - Economic Evaluation including a description of the amount of gas used in lease operation (2 pages).

Respectfully submitted this 24th day of September, 2012.

BEATTY & WOZNIAK, p.e.

Frederick M. MacDonald 7440 Creek Road, Suite 300 Sandy, UT 84093 Telephone: (801) 566-8446 Facsimile: (801) 566-8447 E-Mail: DBolda@bwenergylaw.com E-Mail: FMacdonald@bwenergylaw.com Attorneys for Petitioner Bill Barrett Corporation

2

WORK EXPERIENCE

MA 1THEW PETER WOLD 675 DAHLIA STREET' DENVER, COLORADO 80220 303.870.1969· MATTPWOLD@GMAIL.COM

Bill Barrett Corporation, Denver, CO Landman

September 2011-Present

• Performing all aspects of Division Order Title Opinion curative, fee leasing, and aiding in the maintenance of multiple drilling prospects.

• Responsible for coordinating communication between internal teams and external contractors.

• Coordinating mineral acquisition and surface negotiations in the highly competitive Uinta Basin play; complex semi-urban environment.

• CreatingJOA's for Working Interest Owners. • Serving as the point of contact for multiple title attorneys and coordinating the ordering

of Drilling and Division Order Title Opinions. o Point of contact for field brokers, directing Leasing, Surface Use Agreements and

Right of Ways across Private Lands.

Transcontinent Oil Company, Denver, CO February 2010 - September 2011 Business DeIJe/opmelJt, • Researched and attracted new clients. Landman 0 Oversaw client relationships.

o Researched mineral ownership, negotiated lease terms and acquisitions. o Conducted title procurement, title opinion preparation, and full abstracting.

Wold Oil Properties, Casper, WY - Craig, CO December 2008 - December 2009 Landman, 0 Performed site assessment and monitored government compliance. EnIJironmelJtal Consliitant • Researched mineral leases and Right of Ways on Federal, State, and Private Land.

o Assisted in environmental reclamation and remediation . • Completed title chain reports.

Lummis for Congress, Casper, WY May - November 2008 Campaign Manager, • Coordinated political strategy with candidate and advisory boards. Deputy Campaigll Manager • Communicated spending and budget issues.

• Managed fundraising committee and coordinated fundraising events . o Supervised and assisted volunteer coordinators with outreach and organization.

United States Senate (Office of Sen. Thomas and Sen. Barrasso), Washington, DC May - August 2007 Ellef:gy Committee, 0 Researched issues and conducted correspondence. Illtern 0 Assisted staff during transition between Senators.

The White House, Washington, DC May - August 2006 Illtern • Assisted with photography database compilation and organization .

• Provided support for Presidential and Vice Presidential photography events.

Wyoming Geological Survey, Laramie, WY February - August 2005 WaterQllah!J AnalYst • Compiled database on quality of coal-bed methane (CBM) water in Wyoming .

• Researched and compiled information regarding new CBM wells in the Powder River Basin.

American Talc Co., Van Horn, TX May - August 2004 Quality COlltrol, 0 Conducted chemical and heat testing of talc for quality analysis and geologic assessment. Loading Operatiolls 0 Assisted with blasting, crushing, loading operations, and basic talc mine upkeep.

EDUCATION University of Wyoming: Laramie, Wyoming Bachelor of Science in Political Science Completed Eight Geology Classes

Laramie, WY May 2008

Casper College: Casper, Wyoming August 2003 - May 2004

PROFESSIONAL ORGANIZATIONS Denver Association of Petroleum Landmen, American Association of Professional Landmen, Young Professionals in Energy (YPE)

E>tHIBIT A

EDUCATION

Sr. Reservoir Engineer, Shell Offshore Inc. New Orleans (GaM - Shelf, LA State Waters)

1/97-12/01

Worked as a reservoir engineer in a development group, updating field studies and preparing drilling opportunities for fields in primary and secondary re-development. Responsibilities included well economics, justifications, and reserve evaluation using volumetric analysis, reservoir simulation, and material balance. Served as team lead on two of the projects.

Worked as a surveillance reservoir engineer within a multidisciplinary team responsible for Eugene Island 3301175/136 and 152 fields in Gulf of Mexico and Louisiana State Waters. Specific activities included reserve evaluation, production forecasting, pressure transient analysis, reservoir simulations, determining acid stimulation candidates, determining additional well and recompletion opportunities, and lease tract value during lease sales.

Reservoir Engineer, Shell Western E&P Inc. Houston (Texas - South/North/East)

6/92-12/96

Worked as a reservoir engineer on various mUltidisciplinary teams in South Texas (Vicksburg and Frio). Provided well economics, reserve and production forecasts, pressure transient analysis and material balance analysis for both production and exploration projects. Recommended reconditioning and recompletion work in wells, primarily on hydraulic fracture performance. Aided in the preparation of wells/fields for severance tax exemption and commingled well status.

Performed a broad reservoir study of an old waterflood (North Texas) and increased the value of the waterflood by identifying some unconventional ideas to access unswept reserves which included horizontal sidetracks and a horizontal well. Coordinated the drilling of 3 Cotton Valley sandstone wells on East Texas leasehold. Prepared sale values for both fields and aided in the final sale transaction.

Served as team leader for a Frio field, South Texas field and North/East Texas fields. Duties included coordinating bi-monthly team meetings, preparing agendas, and serving as the focal point for issues regarding these fields.

Worked as a member ofthe 'growth team' for one year in the South Texas area calculating field acquisition prices and evaluating economics of exploration prospects.

Summer Intern, Mobil Oil Corp. 7/91-8/91

6/89-8/89, 6/90-8/90,

Employed three summers as a summer intern for Mobil Oil. Worked two summers with operations in Duncan, OK and Hugoton, KS and one summer in the Denver office with engineering on 2 waterfloods in Wyoming.

Various inhouse training courses at Shell E&P Co. (Phase I, II, III) 6/92-7/05 B.Sc. in Petroleum Engineering, Colorado School of Mines, 5/92 - GPA 3.8

PREVIOUS EXPERT OUALIFICATION

Qualified and recognized as an expert in Petroleum Engineering by the Utah Board of Oil, Gas and Mining in Cause No. 139-87 (October, 2011)

WORK EXPERIENCE

Anna M. Young 8973 E 29th Place

Denver, CO 80238 amyoung522@comcast.net

home: (303)-379-9191 cell: (303)-885-5086

Sr. Reservoir Engineer, Bill Barrett Corp. Denver (Uinta Basin, Utah)

1211 O-present

Provide reservoir support for the BlackTail Ridge - Lake Canyon oil fields in the Uinta basin. Primary responsibilities include reserve determination, production forecasting, type curve development, evaluating exploration opportunities and analog well performance analysis. Serve as team coordinator, coordinating team meetings, field development plans, rig scheduling and yearly corporate budgeting.

Reservoir Engineering Advisor, Rosetta Resources Denver (Rocky Mountains)

1110-12/10

Provide reservoir engineering support for Pinedale Anticline and southern San Juan CBM. Primary responsibilities include reserve determination, log evaluation, production forecasting, and analog performance analysis. Also provided engineering support for acquisition proposals in the eastern DJ basin biogenic Niobrara play.

Sr. Reservoir Engineer, New Ventures, Cimarex Energy Denver (Continental u.s.)

11108-1110

Provide reservoir engineering support in evaluating unconventional new plays including Haynesville shale, Eagleford shale, Bakken, Niobrara, and Marcellus shale. Primary responsibilities include data gathering, log evaluation, play studies, reserve determination, competitor analysis and economics.

Sr. Reservoir Engineer, Gulf Coast Exploration Region, Cimarex Energy Denver (SE Texas, South Louisiana)

7/05-11108

Provide reservoir engineering support for a multi-disciplinary South Louisiana, SE Texas exploration team. Primary responsibilities included probabilistic reserve determination, risked prospect economics, analog field studies, log evaluation, reservoir simulation and reserve forecasting.

Staff Reservoir Engineer, Shell Rocky Mtn. Production Denver (Pinedale Anticline, WY)

1102-7/05

Developed and implemented a development process for the Pinedale Anticline which included managing construction, drilling, and completion schedules, internal and external AFE's, coordinating well permitting activities, managing internal and external AFE's, and well justifications. Regularly met with BLM to discuss permitting and development activity with regard to the Pinedale ROD/EIS. Instituted and lead weekly rig schedule and weekly engineering meetings to better manage all facets of the development ofthe Anticline. Developed 2003 and 2004 capital investment programs. Coordinated major subsurface projects with both Denver and Houston staff. Provided reservoir engineering support including reservoir simulation, economics, reserve estimates and production forecasts.

EXHIBIT B

~ II .... Bill BarreB Corporation

2S/2W I~ I I Leasehold Status Map J

0 to--22 m -:z:: )( -, W

i-- 2,000' ~

ISOUTH ALTAMONT 10-22-22(i'r1 ~

2,120'

SOUTH ALTAMONT 13-22-22J ./ r +--810' Ir--

810'

! Feet 0 500 1,000 2,000

.... , Bill Barrett Corporation

1,000

EXHIBIT "E" (Previously submitted as Exhibit 2 to the RAA)

(Gas Analysis 10-22 Well)

10-22-22 Greg Warren bottle #029 print Date Time : 09/06/2012 10:31

Lab Name: SCI AUTOMATION Analyzed By: Greg Warren--- SCI LAB TECH Meter ID: 10-22-22 Analysis Time: 09/06/2012 11:26 sample TYpe: Spot Flowing Temp. : 100 Deg. F Flowing Pressure: 60 psig

comp UnNorm Normal Liquids Ideal Rel . Density % % (usgal/MCF) (BtU/SCF)

-------------------------------------- ------- --- - - ------ ------------------------propane 1. 8722 1. 9019 Hydrogen sulfide 0.0000 0.0000 IsoButane 0.4709 0.4784 Butane 0.4681 0.4755 Neopentane 0 . 0075 0.0077 IsoPentane 0.2552 0.2592 Pentane 0.2321 0.2358 Hexane+ 0.7822 0.7946 Nitrogen 1. 0146 1. 0306 Methane 84.9277 86.2744 carbonDi oxi de 1.1546 1.1729 Ethane 7.2540 7.3690 Hexane 0.0000 0.7946 Heptane+ 0.0000 0.0000 Heptane 0.0000 0.0000 Octane 0.0000 0.0000 Nonane+ 0.0000 0.0000 Nonane 0.0000 0.0000 Decane 0.0000 0.0000 undecane 0.0000 0.0000 Dodecane 0.0000 0.0000 Ethane- 0.0000 0.0000 propane + 0.0000 0.0000 oxygen 0.0000 0.0000 Water 0.0000 0.0000

Total 98.4391 100.0000

Inferior wobbe 1376.7207 (Btu/SCF) compressibility 0.9971 Real Rel. Density 0.6681 wet CV 1124.6891 (BtU/SCF) Contract Temp. 60.0000 (deg F) Number of cycles 1 Atmospheric Pressure 14.65

comments: 10-22-22 Greg Warren bottle #029

0.5254 47.8541 0.0000 0.0000 0.0000 0.0000 0.1570 15.5557 0.0000 0.1503 15.5132 0.0000 0.0028 0.3063 0 . 0000 0.0950 10.3705 0.0000 0.0857 9.4515 0.0000 0.0000 0.0000 0.0000 0.1137 0.0000 0.0000

14.6648 871. 3710 0.0000 0.2007 0.0000 0.0000 1. 9760 130.4099 0.0000 0.3276 37.7902 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000

18.2990 1138.6224 0.6681

superior wobbe 1400.2712 Density 0.0511

( BtU/SCF ) ( 1 bm/f1:3 ) (BtU/SCF) ( BtU/SCF) ( psi a )

Ideal CV 1138.6224 Dry CV 1144.5693 Contract press. 14.7300 connected Stream 1

EXHIBIT.E

EXHIBIT "F" (Gas Analysis 13-22 Well)

17796 S.A. 13-22-22 Greg warren, Bottel 21 print Date Time: 09/20/2012 17:27

Analyzed By: Meter ID:

GREG WARREN, SCI AUTOMATION 17796 S.A. 13-22-22

Analysis Time: Flowing Temp. :

09/20/2012 17:21 sample Type: Spot 106 Deg. F Flowing Pressure: 20 psig

comp

propane Hydrogen sulfide IsoButane Butane NeoPentane ISOPentane Pentane Hexane+ Nitrogen Methane carbonDioxide Ethane Hexane Heptane+ Heptane Octane Nonane+ Nonane Decane undecane Dodecane Ethane-propane + oxygen water

UnNorm %

1. 67833 0.0 0.44588 0.51158 0.00982 0.26935 0.28374 0.61038 1.22719

84.53551 2.19484 6.35475 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Normal %

1.71046 0.0 0.45442 0.52137 0.01001 0.27451 0.28917 0.62207 1. 25069

86.15402 2.23686 6.47642 0.62207 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Liquids (usgal/MCF)

0.47244 0.0 0.14909 0.16479 0.00367 0.10065 0.10509 0.0 0.13795

14.64325 0.38273 1. 73649 0.25647 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Ideal Rel. Density (BtU/SCF)

43.03695 0.00000 0.0 0.0

14.77722 0.00000 17.00864 0.00000

0.40061 0.00000 10.98275 0.00000 11. 59201 0.00000

0.0 0.00000 0.0 0.00000

870.15558 0.00000 0.0 0.00000

114.61317 0.00000 29.58500 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.00000 0.0 0.00000 0.0 0.0 0.0 0.0

Total 98.12138 100.00000 18.15261 1112.15198 0.67061

Inferior wobbe 1342.1677 (BtU/SCF) compressibility 0.9972 Real Rel. Density 0.6706 Wet CV 1098.4598 (BtU/SCF) Contract Temp. 60.0000 (deg F) Number of cycles 1 Atmospheric Pressure 14.65

Comments: 17796 S.A. 13-22-22 Greg warren, Bottel 21

superior wobbe 1365.0837 Density 0.0513 Ideal CV 1112.1520 Dry CV 1117.8738 Contract Press. 14.7300 connected stream 1

EXHJBITF

(BtU/SCF) (lbm/ft3) (BtU/SCF) (BtU/SCF) (psia)

SA 10-22-22 Actual production _1i~_O>y_OI1 .....

i!~ :: ::: ::: :::::: :::::::::::::::::::::::: :::::::::::::::::::::: :::::::::::: :::: : :::::: ::::::: :::::::::: :::::::::: ::~:::~:::::: :::::::::: :::::: :::: :::::::: ::::::::: ::::::::::::::::::::::::. ~ ~ 5 . _~ ._ .. _ .. ______ ........ _ ........... _ .. _ .. _ ..... _____________ ...... ___ ........ _. _ .. _ ....... _ ._r_ .. ____________ . _________ .. ____ r_. __ . ___ ._. ____ . _______ ... __ .. __ .............. ......... _._ .. ______ ... ____ .. _______ ... _ ........ __ .. ..

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- A - ~ 2012

SA 10-22-22 Projected production 20 ~----------------------------------------------------------------~ 20

Expected pipeline completion 12/2012 •••• "" .'

.. ' . ' .' .' .. ."

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1800 MCF Allowable I ••.•..••••••.••.•• .•......•....•• --------------------~~~~-r--------............................ I ........ I ........

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SA 13-22-22 Actual production _ vU' _DIy_Oil

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SA 13-22-22 Projected production 20 ~--------------------------------------------------------------------. 20

15 +---------------------------------------------------------------------+ 15

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.. , ..... -------... . ...

~ -------------------------~i~--------,. .... 5 + ______________________________________________ ~~--L---------------_+ 5 .' I ....... . ' .. ' I .. , .. '

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•••••• Cumulative Gas (MMCF) • ••••• Cumulative Oil (MBO)

12 ::I E a

h ~ -~ -::E: X w

Gas Disposition Options • Gas pipeline alternatives

.:. Other industry processes such as Compressed Natural Gas

(CNG), Electrical Generation, Gas-to-Liquids (GTL) or Gas

Injection ~ All require (high' capital investment ($ 2,000M- $10,000M+ vs. $ 700M)

~ Longer time frame than current estimate for pipeline (up to years vs. a few weeks) ~

.:. Lease use ~ Well is expected to produce more than equipment needs

~ Current production> 100 mcf/d, expected usage 20 mcf/d

• Gas pipeline (preferred option) .:. Infrastructure in area

.:. tV4 weeks for construction

.:. Cost effective tV $700M

to--CXl -::J: X w

Flaring justification • Formation damage with shutting-in well

.:. Reduction in ultimate recovery ~ Dehydration of gelled hydraulic fracture fluid still in formation

~ Crushing of proppant in hydraulic fractures given apparent over-pressure in lower Wasatch

• Economic impact of shutting in well .:. Reduction in net present value

~ Example 1: 3 months shut-in would result in 6% lower present value of current completed interval

.:. Risk of not returning well to original productivity ~ Example 2: 3 months shut-in with 90% of well's rate prior to shut-in would result

in loss of EUR and reduction of present value by 20%

~ Example 3: 3 months shut-in with 75% of well's rate prior to shut-in would results in loss of EUR and reduction of present value by 39%

~ Examples assume a flat $95/bbl oil and $3.50/mmcf gas price

Exhibit AExhibit BExhibit CExhibit DExhibit EExhibit FExhibit GExhibit HExhibit IExhibit JExhibit K