improper plugging of bailee #1 well -...

EXHIBIT'

• Antelope

Resources

Inc.

Improper Plugging of

Bailee #1 Well

SE/SE 18 (361' FSL & 679' FEL)

T11N — R28E

Howard Coulee Field

Musselshell County, Montana

• • GR EL — 3290'

• P & A —July 3, 2006

• TD — Tyler (3460)

• Surface casing to 340'

• No production casing

• No cement plugs over Porous Amsden & Piper formation at 3150 to 3300'

• Lowest cement plug is over lower 3 rd Cat Creek Sands and Morrison Sands

(2500 — 2650') - 50 Sacks 2 nd p l ug Base surface casing 3rd plug top surface casing — 1 sack

• Note: R&A Comp Rpt — August 2007: Important Zones of Porosity

- 1st Cat Creek- 2189 — 2206

- Amsden- 3190 — 3351

- Tyler- 3351 — 3432

27 North 27th Street, Suite 2102, Billings, Montana 59101 406-259-5781 Phone, 406-839-2381 Fax

Kluzek 18-11-28 Bailee-2

• (4)

Bailee-1

BN 171-11-28-1 e

• Kluzek-2 Kluak-1

— —

BN 21-19

BN 41-19

@ I BN 19-111-28-2

-19 -

approx. 112 mi.

• Heartly-1 RE

20

TliN R28E

Well Section Spot Description

BN 17-11-28-1 17 C-SW-SW 660 ft FSL 660 ft FWL

Bailee-1 18 SE-SE 361 ft FSL 679 ft FEL

Bailee-2 18 C-SE-SE 660 ft FSL 660 ft FEL

Kluzek 18-11-28 18 C-SW-SE 660 ft FSL 1980 ft FEL

EN 21-19 19 NE-NW 660 ft FNL 2066 ft FWL

BN 41-19 19 C-NE-NE 660 ft FNL 660 ft FEL

BN 19-11-28-2 19 C-SW-NE 1980 ft FNL 1980 ft FEL

Kluzek-1 20 NW-NW 660 ft FNL 662 ft FWL

Kluzek-2 20 NW-NW 616 ft FNL 659 ft FWL

Heartly-1 RE 20 SW-NW 1980 ft FNL 662 ft FWL

• Productive from the Piper Lime

• Potential pay in the Piper Lime

O Productive from the Tyler

Antelope Resources

ConocoPhillips lease

i Cirque farmout

Cemented casing to TD

ft MD 2590

Well schematic - nc. scale • Bailee-2 N > SE/SE 18-T11N-R28E S Bailee-1

- 300 ft r No easing ----- 7

ft MD 2500

• • 3rd Cat Creek reservoir porosity •

• •

/ 7 Morrison reservoir porosity 2600

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4 / Cement Plug

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rit

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ter

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• • Swift reservoir porosity / • • . .

/

3070

Rierdon reservoir porosity

% /

3162

Piper Fm.

3197

Piper Lime porosity

Amsden porosity & fractures / /

2" radial drainholes, — 130 ft long /

Tyler © 3460 TD Amsden TD 3293

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REVENUE INTO STATE SPECIAL REVENUE ACCOUNT 12110/13

Oil Production Tax Gas Production Tax

FY 14 FY 13

1,858,828 151,953

Percentage FY14:FY13

0.52 / 0.58

Drilling Permit Fees 21,875 68,400 0.32 UIC Permit Fees 200 225,200 Interest on Investments 1,776 6,239 0.28 Copies of Documents 3,306 6,754 0.49 Miscellaneous Reimbursemts 14,395

TOTALS $ 1,191,697 $ 2,331,769 0.51

REVENUE INTO DAMAGE MITIGATION ACCOUNT as of 12/10/13

FY14 Transfer in from Orphan Share 0 Rh T Interest 0 Bond Forfeitures 50,000

Interest on Investments 252 TOTAL $ 50,252

REVENUE INTO GENERAL FUND FROM FINES as of 12/10/13 FY 14

Hofland James D 7/5/2013 200 Hawley Oil LLP 7/15/2013 220 Denmark Resources Inc. 7/16/2013 70 Hawley Oil 7/16/2013 30

Montana Resources Mgmt 7/19/2013 60

Slohcin Inc. 7/31/2013 60

Glen Habets 8/23/2013 70

Colby Branch 9/25/2013 60

Buckley Production 9/25/2013 10

Longshot Oil LLC 10/1/2013 60

Bensun Energy 10/15/2013 140 Denbury 11/15/2013 2000

TOTAL 2,980.00

BOND FORFEITURES AS OF 12110/13 Go into Damage Mitigation Account Native American Energy Group

50,000

None

Investment Account Balances - 12/10/13

Regulatory Account (02432)

3,148,520

Damage Mitigation Account (02010)

471,534

• •

•

GRANT BALANCES - 12110113

Name Authorized Amt* Expended Balance

2009 Northern Rh T 10-8697 322,236 203,066 119,170 2009 Southern RIT 108698 315,219 170,632 144,587 2007 Tank Battery RIT 10-8711 304,847 304,847 0 2011Southem - TankBattery2 RIT 12-8723 / 204,951 108,493 96,4 2011 Northern/Eastern RIT 13-8753 332,642 0 332,642 2011 Eastern Rh T 13-8752 318,498 0 318,498 • includes match requirement for grant

TOTALS $1,798,393 $787,038 $1,011,355

CONTRACT BALANCES. 12110/13

HydroSolutions.- EPA Primacy Class VI Injection 57,156 15,991 41,165 exp 5-31-14

MT Tech - Procedures Manual/Field Inspection System 32,699 4,946 27,753 exp 3-30.14 MT Tech - Survey of Native Proppant (SNaP) 383,101 78,38 _ 304,719 exp 9-30-15 ,

MT Tech - Elm Coulee EOR Study 863,905 236,646 -' 627,259 exp 12-31-1-7,

Automated Maintenance Services, Inc. FY14 21,848 -. 8,320 13,528 exp 6-30-14 Agency Legal Services - Legal 60,000 19,048 40,952 exp 6-30-14

Central Avenue Mall FY 14 400 400 0 automatically renewable

Liquid Gold Well Service, Inc. - 09 Northern 179,941 176,458 3,483 exp 12-31-13

Liquid Gold Well Service, Inc. -09 Southern 185,059 185,059 0 exp 12-31-13 ../".

C-Brewer - 07 & 11 Southern Tank Battery. 424,650 _--413,175-1 1,475 ( >xp 12-31-13

Liquid Gold Well Service - 11 Eastern 201,459 0 201,459 exp 6/30/14

Liquid Gold Well Service - 11 Northern/Eastern 201,325 0 201,325 exp 6/30/14

Frontier Fence Co - Billings Gate 12,500 12,500 0 done

MT Fish, Wildlife and Parks 37,500 0 37,500 exp 1-31-14

Teachers Workshop 2014 and 2015 96,000 0 96,000 exp 7/31/15

TOTALS 2,757,543 1,150,924 1,606,619

Agency Legal Services Expenditures in FY14 FY 13

Case Amt Spent Last Svc Date

BOGC Duties 19,048 11-2013 24,166

FY 12

32,162

EXHIBIT 3 Montana Board of Oil and Gas Conservation

Summary of Bond Activity 10/8/2013 Through 12/10/2013

Approved

American Midwest Oil & Gas Corp. 744 G4 Approved 12/5/2013

Billings MT Amount: $1,500.00

Purpose: Single Well Bond

Certificate of Deposit $1,500.00 Western Security Bank









Antelope Resources, Inc. 365 T2 Approved 10/29/2013


Purpose: UIC Single Well Bond

Certificate of Deposit $1,500.00 FIRST STATE BANK OF SHELBY

Great Plains Energy, Inc. 753 G1 Approved 10/18/2013

Lincoln NE Amount: $10,000.00


• Certificate of Deposit $10,000.00 FIRST INTERSTATE BANK _

James G. Seymour 752 L1 Approved 10/17/2013

Cut Bank MT Amount: $31,500.00

Purpose: Limited Bond

Certificate of Deposit $31,500.00 Bank of Glacier County

Long Rider, LLC 751 G1 Approved 10/11/2013

Great Falls MT Amount: $5,000.00


Surety Bond $5,000.00 Lexon Insurance Company

MCR, LLC 399 16 Approved 11/27/2013

Shelby MT Amount: $5,000.00



Minuteman Exploration, LLC 756 M1 Approved 12/10/2013

Tulsa OK Amount: $50,000.00

Purpose: Multiple Well Bond

Surety Bond $50,000.00 Liberty Mutual Insurance Company

Northern Oil Production, Inc. 5421 16 Approved 11/26/2013

Bozeman MT Amount: $10,000.00


Certificate of Deposit $10,000.00 FIRST INTERSTATE BANK • Page 1 of 4

Montana Board of Oil and Gas Conservation Summary of Bond Activity

10/8/2013 Through 12/10/2013

212 T2 Approved 11/13/2013

Amount: $10,000.00


$10,000.00 Argonaut Insurance Company

212 T3

Approved 11/13/2013

Amount: $10,000.00



212 T4

Approved 11/13/2013

Amount: $10,000.00


Approved

Rim Operating, Inc.

Englewood CO

Surety Bond

Rim Operating, Inc.

Englewood CO

Surety Bond

Rim Operating, Inc.

Englewood CO

Surety Bond


Rim Operating, Inc. 212 T5

Approved 11/13/2013

Englewood CO

Amount: $10,000.00


Surety Bond $10,000.00 Argonaut Insurance Company _

Synergy Offshore LLC 662 V1 Approved 10/31/2013

Houston TX Amount: $314,375.00

Purpose: UIC Blanket Bond


Synergy Offshore LLC 662 M2 Approved 10/31/2013




Tanglewood Oil & Gas. LLC

681 L1 Approved 10/28/2013

Calgary AB

Amount: $3,000.00



Tanglewood Oil & Gas, LLC 681 G2 Approved 11/1/2013

Calgary AB Amount: $5,000.00



Tanglewood Oil & Gas, LLC 681 G1 Approved 11/1/2013

Calgary AB Amount: $5,000.00



Three Forks Resources. LLC 593 G5 Approved 10/10/2013

Denver CO Amount: $1,500.00


Surety Bond

$1,500.00 Lexon Insurance Company • Page 2 of 4


10/8/2013 Through 12/10/2013

Approved

Three Forks Resources, LLC 593 G6 Approved 11/29/2013




Three Forks Resources, LLC 593 G7 Approved 11/29/2013




Bond Increase _

Chaco Energy Company 125 L1 Bond Increase 11/22/2013



Surety Bond $25,000.00 Bond Safeguard Insurance Company

Surety Bond $30,000.00 American Safety Casualty Insurance Company

Whiting Oil and Gas Corporation 404 U1 Bond Increase 11/25/2013


Purpose: UIC Limited Bond

Surety Bond $60,000.00 RLI INSURANCE COMPANY

afeited

WNative American Energy Group, Inc. 472 M1 Forfeited 11/21/2013

Forest Hills NY Amount: $50,000.00


Surety Bond $50,000.00 U.S. Specialty Insurance Co.

Released

Dry Coulee Oil & Gas Company 2072 L1 Released 12/10/2013

Oilmont MT Amount: $25,000.00


Certificate of Deposit $25,000.00 1ST STATE BANK - SHELBY

Petroleum, Inc. 6020 B1 Released 11/19/2013

Mohall ND Amount: $10,000.00

Purpose: Blanket Bond

Surety Bond $10,000.00 ST.PAUL FIRE & MARINE INS. CO .

Shay, C.W. 6885 B1 Released 11/22/2013

Kevin MT Amount: $9,635.00


Surety Bond $9,635.00 TRAVELERS CASUALTY & SURETY CO. OF AMERICA

Synergy Offshore LLC

662 M1 Released 10/31/2013

Houston TX

Amount: $50,000.00



Page 3 of 4


• 10/8/2013 Through 12/10/2013

Released

Synergy Offshore LLC 662 U1 Released 10/31/2013


Purpose: UIC Limited Bond


Targe Energy Exploration and Production, LLC 541 G7 Released 11/1/2013




large Energy Exploration and Production, LLC 541 G2 Released 11/1/2013







Certificate of Deposit

$1.500.00

FIRST BANK OF SHELBY

Certificate of Deposit

$1,500.00

FIRST STATE BANK OF SHELBY ■.■



11111 Certificate of Deposit $1,500.00 FIRST STATE BANK OF SHELBY


• Page 4 of 4

• Page 1 of 5

•

Wednesday. December 11, 2013 8:18 26 AM

•

Docket Summary 12/12/2013 Hearing

496-2013 Interstate Explorations, LLC Vacate Order 92-1981 for spacing unit 14N-60E-29: SE/4, 32: NE/4. Temporary spacing unit, Red River Formation, 14N-60E-29:

2 -6601-setbaek-from-south_and_east for permanent spacing within 90 days of successful completion.

Continued 497-2013 Statoil Oil & Gas LP Permanent spacing unit, Bakken/Three Forks Formation, 28N-57E- 22: all, 27: all (Nelson 27-22-1H).

TSU, Order 34-2011. Related Dockets 497, 498, and 499-2013 Continued, email recd 12/2/2013.

498-2013 Statoil Oil & Gas LP Pool, permanent spacing unit, BakkenfThree Forks Formation, 28N-57E-22: all, 27: all (Nelson 27-22 1H). Non-joinder penalties requested.

Continued Related Dockets 497, 498, and 499-2013

Continued, email recd 12/2/2013.

499-2013 Statoil Oil & Gas LP Authorization to drill up to four additional Bakken/Three Forks wells, permanent spacing unit, 28N-57E-22: all, 27: all, 200' heel/toe, 500' lateral setback. Default request.

Continued Related Dockets 497, 498, and 499-2013

Continued, email recd 121212013.

500-2013 Energy Corporation of America Protest by Carbon County Resource Council, permit to drill a well in 8S-23E-7: 741 FSU805 FWL.

Dismissed Dismissed -

501-2013 Kraken Oil & Gas LLC Temporary spacing unit, Bakken/Three Forks Formation, 26N-51E- Default 7: all, 200' heel/toe, 660' lateral setbacks. Apply for permanent spacing within 90 days of successful completion. Default request.



504-2013 Petro - Hunt, LLC Permanent spacing unit. Red River Formation, 19N-54E-17: S/2, 20: N/2 (Boje Farms 19 -54 - 17D -20 - 1H).

Designated 640-acre statewide (horizontal) TSU comprised of same lands.

505-2013 Petro-Hunt, LLC Permanent spacing unit, Red River Formation, 19N -54E -21: W/2 (Olson 19 -54 -21B -2-1H).


506-2013 Petro-Hunt, LLC Permanent spacing unit, Red River Formation, 19N-54E-18: E12 Designated E/2 vertical TSU for depths below (Walter Senner 19-54-18D-2-1). 11,000 feet; completed above 11,000 and

statewide TSU would be 160-acres.

507-2013 Petro-Hunt, LLC Permanent spacing unit, Red River Formation, 19N-54E-2: SW/4, 3: SE/4 (Bomtrager 2C-2-1).

Designated E/2 vertical TSU for depths below 11,000 feet; completed below 11,000'.

508-2013 Petro-Hunt, LLC Permanent spacing unit, Red River Formation, 19N-53E-2: NW/4, 3: NE/4 and 20N-53E-34: SE/4, 35: SW/4 (Austby 19-53-2B-34-


1H).

Li

Li

0

Li

E

Li

• Page 2 of 5

410 Wednesday, December 11, 2013 8:18:26 AM

•

509-2013 EOG Resources, Inc. - - - - - - - - - - - - - - - - - - - - — -- Permanent spacing unit, BakkenfThree Forks Formation, 28N-59E-35: all, 36: all (Stateline 13-3635H).

TSU, Order 13-2012.

Related Dockets 509, 510, and 511-2013.

Li

510-2013 EOG Resources, Inc. Pool, permanent spacing unit, Bakken/Three Forks Formation, 28N-59E-35: all, 36: all (Stateline 13-3635H). Non-consent penalties requested.

Related Dockets 509, 510, and 511-2013.

511-2013 EOG Resources, Inc. Authorization an additional Bakken/Three Forks well, permanent spacing unit, 28N-59E-35. ail, 36. all, 200' heel/toe, 500 lateral setback. Default request.

Related Dockets 509, 510, and 511-2013. El

512-2013 MCR, LLC Protest by Grammer Oil and Gas LLC, Class ll enhanced recovery permit, Swift Formation, Federal 1-12, 37N-4E-12: 330 FSU2130

Protested Area injection Permit, Order 8-1999.

FEL (SWSE), API #051-05460. Whit/ash East (State) Swift Sand Unit. - -

513-2013 Vector Energy Corporation Vacate Waterflood approval, Ragged Point Tyler A Unit, Order 35- 1-1 1965, 11N-30E-8: E/2NE/4, SE/4, 9: all, 10: W/2SW/4, SE/4SW/4, 15: NW/4NW/4, 16: N/2N/2.

514-2013 Vector Energy Corporation Amend Order 8-1959 to vacate spacing, Tyler Formation, 11N-30E-9: all, 330' setback from section boundaries.

Li

515-2013 Thor Resources USA, LLC Temporary spacing unit, Nisku Formation, 34N-2W-29: W/2NWNW, NWSWNW, 30: S/2SENW, SENWNE, S/2NE,

Default Nisku - subject to statewide rule. Li NENENE, S/2NENE, E/2NWSW, NESW, NESWSW, NWSESW, N/2NWSE, SWNWSE, well to be located approximately 505' FNU784' FWL in Sec. 29, PBHL: 1544' FSL/1139' FWL in Sec. 30, 330' setbacks. Apply for permanent spacing within 90 days of successful completion. Default request.

— - •

516-2013 Continental Resources Inc Permanent spacing unit, Bakken/Three Forks Formation, 23N-54E-34: all (Williamson 1-34H).

- • .

Statewide w/ 200' toe/heel by Order 72-2013.

517-2013 Continental Resources Inc Permanent spacing unit, Bakken/Three Forks Formation, 23N-54E-27: all (Blount 1-27).

Statewide w/ 200' toe/heel by Order 193-2013.

518-2013 Continental Resources Inc Permanent spacing unit, BakkenfThree Forks Formation, 26N-56E-14: all, 23: all (Mabel 1-14H).

Special Statewide Spacing (380-2011). Li Related Dockets 518 and 519-2013.

- • ■ ■

519-2013 Continental Resources Inc Authorization to drill up to three additional Bakken/Three Forks wells, permanent spacing unit, 26N-56E-14: all, 23: all, 200' heel/toe, 500' lateral setback.

- •

Related Dockets 518 and 519-2013. Li

520-2013 Continental Resources Inc Permanent spacing unit, Bakken/Three Forks Formation, 23N-53E-24: all (Odair 1-24H).

Statewide w/ 200' toe/heel by Order 189-2013. EJ

Related Dockets 520 and 521-2013.

521-2013 Continental Resources Inc Authorization to drill up to three additional Bakken/Three Forks wells, permanent spacing unit, 23N-53E-24: all, 200' heel/toe, 660' lateral setback.

Withdrawn - - - - -

Related Dockets 518 and 519-2013.

Withdrawn, Itr dated 12/5/2013.

Li

of 5

4110 Wednesday, December 11, 2013 8:18:26 AM •

F.1

522-2013 Continental Resources Inc Permanent spacing unit, Bakken/Three Forks Formation, 27N-56E- 29: all, 32: all (Mulholland Federal 1-32H)

Special statewide spacing (Order 380-2011).

Related Dockets 522, 523-2013.

523-2013 Continental Resources Inc Authorization to drill up to three additional Bakken/Three Forks wells, permanent spacing unit, 27N-56E-29: all, 32: all, 200' heel/toe, 500' lateral setback.


524-2013 Continental Resources Inc Permanent spacing unit, Bakken/Three Forks Formation, 23N-54E- 30: all (Mifflin 1-30H).

Statewide with 200' toe/heel (Order 190-2013).


525-2013 Continental Resources Inc Authorization to drill up to three additional Bakken/Three Forks wells, permanent spacing unit, 23N-54E-30: all, 200' heel/toe, 660' lateral setback.


526-2013 Continental Resources Inc Permanent spacing unit, Bakken/Three Forks Formation, 26N-53E-6: all, 7: all (Parson Federal 1-6H).

TSU, Order 364-2011.


527-2013 Continental Resources Inc — — -

Authorization to drill up to three additional Bakken/Three Forks wells, permanent spacing unit, 26N-53E-6: all, 7: all, 200' heel/toe, 500' lateral setback.


- — 528-2013 Permanent spacing unit, Bakken/Three Forks Formation, 23N-55E-

22: all, 23: all, 26: all, 27: all (Lucille/Reimann HSU). Overlapping TSU, Order 341-2008. Continental Resources Inc

529-2013 Continental Resources Inc Permanent spacing unit, Bakken/Three Forks Formation, 23N-55E-10: all, 11: all, 14: all, 15: all (Ardelle/Staci HSU).

Overlapping TSU, Order 280-2008.

530-2013 Continental Resources Inc Overlapping temporary spacing unit, Bakken/Three Forks Continued PSU, Sections 5 & 32 - Order 440-2005. Formation, 24N-56E-32: all, 33: all and 23N-56E-4: all, 5: all, 200' heel/toe, 500' common boundary, 660' exterior setbacks. Apply for permanent spacing within 90 days of successful completion.

PSU, Sections 4 & 33 - Order 210-2004. Continued to February, ltr dated 11/22/2013.

Default request.

531-2013 Continental Resources Inc Overlapping temporary spacing unit, Bakken/Three Forks Continued PSU, Sections 10 & 15 - Order 290-2004 Formation, 23N-56E-10: all, 11: all, 14: all, 15: all, 200' heel/toe, 500' common boundary, 660 exterior setbacks. Apply for permanent spacing within 90 days of successful completion.

PSU, Sections 11 & 14 - Order 307-2003 Continued to February, ltr dated 11/22/2013.

Default request.

532-2013 Continental Resources Inc Temporary spacing unit, Winnipeg Formation, 25N-55E-8: NE/4, 9: Continued Hear - 300' setback. NW/4, 300' south/east setback, 660' north/west setback. Apply for permanent spacing within 90 days of successful completion. Continued to February, ltr dated 11/22/2013. Default request.

533-2013 Continental Resources Inc Authorization to drill an additional Red River Formation well, permanent spacing unit, 25N-55E-8: NE/4, 9: NW/4, 300' south/east setback, 660' north/west setback. Default request.

Continued Hear - 300' setback.

Continued to February, ltr dated 11/22/2013.

534-2013 Continental Resources Inc Temporary spacing unit, Red River Formation, 25N-55E-8: S/2, 200' heel/toe, 660' lateral setbacks. Apply for permanent spacing within 90 days of successful completion. Default request.

Continued Hear- 200' setback

Continued to February, ltr dated 11/22/2013.

V

Wednesday, December 11, 2013 8:18:26 AM Page 4 of 5

4110 • •

- - Continued Hear- 200 setback.

Continued to February, ltr dated 11/2212013.

535-2013 Continental Resources Inc Temporary spacing unit, Red River Formation, 25N-55E-16: W/2, 200' heel/toe, 660' lateral setbacks. Apply for permanent spacing within 90 days of successful completion. Default request.

LY_J

536-2013 Continental Resources Inc Temporary spacing unit, Red River Formation, 25N-55E-29: E12, 200' heel/toe, 660' lateral setbacks. Apply for permanent spacing within 90 days of successful completion. Default request.


Continued to February, Itr dated 11/2212013. —

537-2013 Continental Resources Inc Temporary spacing unit, Red River Formation, 25N-55E-14: S/2, 200' heel/toe, 660' lateral setbacks. Apply for permanent spacing within 90 days of successful completion. Default request.


Continued to February, Itr dated 11/2212013.

538-2013 Continental Resources Inc Temporary spacing unit, Red River Formation, 25N-55E-21: Continued Hear - 200' setback. E/2SW14, W/2SE/4, 28: E/2NW/4, W/2NE/4, 200' heel/toe, 660' lateral setbacks. Apply for permanent spacing within 90 days of successful completion. Default request.

Continued to February, ltr dated 11/2212013.

539-2013 Denbury Onshore, LLC Exception to drill horizontal well, Red River Formation, Coral Creek Deep Unit; surface location: 6N-60E-2: SE/4 SW/4, PBHL: 7N-60E-

Default Footage measurements from north and east unit boundary.

35: SW/4SW/4 (670' FNUL/ 776' FEUL). Default request.

540-2013 Denbury Onshore, LLC Exception to drill horizontal well, Red River Formation, Coral Creek Deep Unit; surface location: 7N-60E-34: NE/4SE14; PBHL: 7N-60E-

Default Footage measurements from north and east unit boundary.

34: SW/4NE/4 (689' FNUL/710' FEUL). Default request.

541-2013 Justice SWD, LLC Modification to Class II saltwater disposal permit, additional Default Dakota Formation perforations and perforate the Kibbey Formation, Christensen Trust 15-9 SWD (API #091-21814), 34N- 57E-9: 660' FSLJ 1700' FEL (SW14SE/4).

476-2012

■

Oasis Petroleum, Inc. Pool, permanent spacing unit, Bakken/Three Forks Formation, 27N-58E-4: all, 9: all (Signal Butte Federal 2758 43-9H). Non-consent penalties requested.

Continued PSU, Order 352-2012; additional wells, Order 353-2012.

Continued, fax recd 12/3/2013.

736-2012 Oasis Petroleum, Inc. Permanent spacing unit, Bakken/Three Forks Formation, 27N-58E- Continued TSU, Order 441-2011 - 1320/200. 27: all, 28: all (Betsy Federal 2758 24-29H). Related Dockets 736, 737, 738-2012.

Continued, fax recd 12/3/2013. -

737-2012 Oasis Petroleum, Inc. Pool, permanent spacing unit, Bakken/Three Forks Formation, 27N-58E-27: all, 28: all (Betsy Federal 2758 24-29H). Non- consent penalties requested.

Continued Related Dockets 736, 737, 738-2012.

Continued, fax recd 1213/2013. —

738-2012 Oasis Petroleum, Inc. Exception to drill up to four additional wells, permanent spacing unit, Bakken/Three Forks Formation, 27N-58E-27: all, 28: all, 200' heel/toe, 500' lateral setbacks. Default request.

Continued Related Dockets 736, 737, 738-2012.


Li

746-2012 Oasis Petroleum, Inc. Pool, permanent spacing unit, Bakken/Three Forks Formation, 28N-58E-29: all, 32: all (Piercy Federal 2758 13-5H). Non- consent penalties requested.

Continued PSU, Order 608-2012, Additional wellls, Order 609-2012.

LI


• Wednesday, December 11, 2013 8:18:26 AM • Page 5 of 5

-

174-2013 Pool, permanent spacing unit, Bakken/Three Forks Formation, Continued 28N-57E-35: all, 36: all (State 42X-36C). Non-consent penalties requested.

XTO Energy Inc. PSU, Order 128-2013; additional wells, Order 129-2013.


345-2013 Statoil Oil & Gas LP Permanent spacing unit, Bakken/Three Forks Formation, 25N-59E-25: all, 26: all, 35: all, 36: all (Sundheim 26-35 #1-H and Sundheim

TSU, Order 188-2011, 2 wells authorized. Related Dockets 345, 346, 347, 348-2013.

26-35 #2-H).

346-2013 Statoil Oil & Gas LP Pool, permanent spacing unit, Bakken/Three Forks Formation. Related Dockets 345, 346, 347, 348-2013. _1 25N-59E-25: all, 26: all, 35: all, 36: all (Sundheim 26-35 #1-H). Non-joinder penalties requested.

— 347-2013 Statoil Oil & Gas LP Pool, permanent spacing unit, Bakken/Three Forks Formation,

25N-59E-25: all, 26: all, 35: all, 36: all (Sundheim 26-35 #2-H). Related Dockets 345, 346, 347, 348-2013. L

Non-joinder penalties requested. - - - - -

348-2013 Statoil Oil & Gas LP Exception to drill up to five additional wells, permanent spacing unit, Bakken/Three Forks Formation, 25N-59E-25: all, 26: all, 35:

Related Dockets 345, 346, 347, 348-2013.

all, 36: all, 200' heel/toe, 500' lateral setbacks. Default request. - - — — —

472-2013 Continental Resources Inc Permanent spacing unit, BakkenfThree Forks Formation, 23N-53E-34: all (Lepel 1-34H).

Statewide TSU, toe setback exception by Order 647-2012.

L_

Related Dockets 472, 473-2013. NOTICE OBJECTION - THOMAS HALVORSON

494-2013 Black Gold Energy Services Incorporated

Class II saltwater disposal permit, Dakota Formation, Briske 4-9H, 29N-58E-9: 300' FNL/300' FWL (NW/4NW/4), API #085-21709.

E

542-2013 Summer Night Oil Company, LLC Show cause, failure to file production reports.

• ALL APPLICATIONS, 12/1212013 (In Order of Publication)

Docket 496-2013 497-2013 498-2013 499-2013 500-2013 501-2013 502-2013 503-2013 504-2013 505-2013 506-2013 507-2013 508-2013 509-2013 510-2013 511-2013 512-2013 513-2013 514-2013 515-2013 516-2013 517-2013 518-2013 519-2013 520-2013 521-2013 522-2013 523-2013 524-2013 525-2013 526-2013 527-2013 528-2013 529-2013 530-2013 531-2013 532-2013 • 533-2013 534-2013 535-2013

Applicant Interstate Explorations, LLC Statoil Oil & Gas LP Statoil Oil & Gas LP Statoil Oil & Gas LP Energy Corporation of America Kraken Oil & Gas LLC Kraken Oil & Gas LLC Kraken Oil & Gas LLC Petro-Hunt, LLC Petro-Hunt, LLC Petro-Hunt, LLC Petro-Hunt, LLC Petro-Hunt, LLC FOG Resources, Inc. FOG Resources, Inc. EOG Resources, Inc. MCR, LLC Vector Energy Corporation Vector Energy Corporation Thor Resources USA, LLC Continental Resources Inc Continental Resources Inc Continental Resources Inc Continental Resources Inc Continental Resources Inc Continental Resources Inc Continental Resources Inc Continental Resources Inc Continental Resources Inc Continental Resources Inc Continental Resources Inc Continental Resources Inc Continental Resources Inc Continental Resources Inc Continental Resources Inc Continental Resources Inc Continental Resources Inc Continental Resources Inc Continental Resources Inc Continental Resources Inc

Status I Request Temp. Spacing

Continued Spacing Continued Pooling Continued Well Density Dismissed Protest

Default Temp. Spacing Default Temp. Spacing Default Temp. Spacing

Spacing Spacing Spacing Spacing Spacing Spacing Pooling Well Density

Protested Protest Vacate Field/Rule Vacate Field/Rule

Default Temp. Spacing Spacing Spacing Spacing Well Density Spacing

Withdrawn Well Density Spacing Well Density Spacing Well Density Spacing Well Density Spacing Spacing

Continued Temp. Spacing Continued Temp. Spacing Continued Well Density Continued Well Density Continued Temp. Spacing Continued Temp. Spacing

•

• 536-2013 Continental Resources Inc Continued Temp. Spacing 537-2013 Continental Resources Inc Continued Temp. Spacing 538-2013 Continental Resources Inc Continued Temp. Spacing 539-2013 Denbury Onshore, LLC Default Exception - Drilling 540-2013 Denbury Onshore, LLC Default Exception - Drilling 541-2013 Justice SWD, LLC Default Class II Permit 476-2012 Oasis Petroleum, Inc. Continued Pooling 736-2012 Oasis Petroleum, Inc. Continued Spacing 737-2012 Oasis Petroleum, Inc. Continued Pooling 738-2012 Oasis Petroleum, Inc. Continued Well Density 746-2012 Oasis Petroleum, Inc. Continued Pooling 174-2013 XTO Energy Inc. Continued Pooling 345-2013 Statoil Oil & Gas LP Spacing 346-2013 Statoil Oil & Gas LP Pooling 347-2013 Statoil Oil & Gas LP Pooling 348-2013 Statoil Oil & Gas LP Well Density 472-2013 Continental Resources Inc Spacing 494-2013 Black Gold Energy Services Incorporated Class II Permit 542-2013 Summer Night Oil Company, LLC Show-Cause

•

• Page 2 of 2

• APPLICATIONS TO HEAR, 12/12/2013 (In Order of Hearing)

Docket

Applicant 496-2013 Interstate Explorations, LLC 504-2013 Petro-Hunt, LLC 505-2013 Petro-Hunt, LLC 506-2013 Petro-Hunt, LLC 507-2013 Petro-Hunt, LLC 508-2013 Petro-Hunt, LLC 509-2013 EOG Resources, Inc. 510-2013 EOG Resources, Inc. 511-2013 EOG Resources, Inc. 512-2013 MCR, LLC 513-2013 Vector Energy Corporation 514-2013 Vector Energy Corporation 516-2013 Continental Resources Inc 517-2013 Continental Resources Inc 518-2013 Continental Resources Inc 519-2013 Continental Resources Inc 520-2013 Continental Resources Inc 522-2013 Continental Resources Inc 523-2013 Continental Resources Inc 524-2013 Continental Resources Inc 525-2013 Continental Resources Inc 526-2013 Continental Resources Inc 527-2013 Continental Resources Inc 528-2013 Continental Resources Inc 529-2013 Continental Resources Inc 472-2013 Continental Resources Inc 345-2013 Statoil Oil & Gas LP 346-2013 Statoil Oil & Gas LP 347-2013 Statoil Oil & Gas LP 348-2013 Statoil Oil & Gas LP 494-2013 Black Gold Energy Services Incorporated 542-2013 Summer Night Oil Company, LLC

I = Status I Request Temp. Spacing Spacing Spacing Spacing Spacing Spacing Spacing Pooling Well Density

Protested Protest Vacate Field/Rule Vacate Field/Rule Spacing Spacing Spacing Well Density Spacing Spacing Well Density Spacing Well Density Spacing Well Density Spacing Spacing Spacing Spacing Pooling Pooling Well Density Class II Permit Show-Cause

•

DEFAULT DOCKET, 12/12/2013

Docket Applicant Status Request 501-2013 Kraken Oil & Gas LLC Default Temp. Spacing 502-2013 Kraken Oil & Gas LLC Default Temp. Spacing 503-2013 Kraken Oil & Gas LLC Default Temp. Spacing 515-2013 Thor Resources USA, LLC Default Temp. Spacing 539-2013 Denbury Onshore, LLC Default Exception - Drilling 540-2013 Denbury Onshore, LLC Default Exception - Drilling 541-2013 Justice SWD, LLC Default Class ll Permit

•

•

IN REPLY REFER TO: Real Estate Services Code 428

EXHIBIT 5

United States Department of the Interior Bureau of Indian Affairs Rocky Mountain Regional Office

2021 4th Avenue North Billings, Montana 59101

NOV 2 0 2013

ECEIVED NOV 2 2 2013

MONTANA BOARD OF OIL & GAS CONSEFVATION BILLINGS

MTM 68718X Tesoro Cut Bank Sand Unit

Mr. Mark Rievaj K2 America Corporation eo Guardian Exploration Inc. 620, 510 5th Street SW Calgary, Alberta T2P 3S2

Dear Mr. Rievaj:

• We are in receipt of your letter dated September 5, 2013, in which you request approvall for the voluntarily termination of the Tesoro Cut Bank Sand Unit located in Glacier County, Montana. The unit contains approximately 1,100-acres (54.46 percent) of Indian Tribal lands, and 920-acres (45.54 percent) of Private (Fee) lands, totaling 2,020-acres. The unit was originally approved effective June 23, 1971, as a secondary recovery unit for production in the Cut Bank Formation.

Article 22 of the unit agreement permits the unit to be voluntarily terminated by the Working Interest Owners, owning ninety percent (90%) or more of the participation percentag in the Unitized Land. The Working Interest Owners in your letter have been identified as being 1(2 America Corporation, the current unit operator, and the Blackfeet Tribe.

We are in receipt of Tribal Resolution EX305-2013, which states that the Blackfeet Tribe does not consent to have its surrendered lease tracts included within the Tesoro Cut Bank Sand Unit. And by signatures of Graydon Kowal, President K2 American Corp, and Willie A. Sharp, Jr., Chairman, Blackfeet Nation, on the "Cut Bank Sand Unit Termination Agreement", it shows that both parties jointly request that the Bureau of Indian Affairs terminate the Unit Agreement that has been in effect since 1971. Since 100 percent (100%) of the Working Interest Owners have complied with the provisions in Article 22; the unit is voluntarily terminated.

We will notify the appropriate Federal and Indian Offices of this voluntary termination. wF request that you notify all other interested parties.

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CC:

RECEIVED NOV 22 2013

MONTANA BOARD OF OIL & GAS CONSERVATION BP) iNGS

If you have any other questions, please contact Jana Waters, Realty Specialist, Bureau of Indian Affairs at (406) 247-7935 or the following Bureau of Land Management contacts Pascual "Pas" R. Laborda at (406) 896-5102, or Merry Prestridge at (406) 896-5026.

Sincerely,

Regional Director

Superintendent Blackfeet Agency Bureau of Indian Affairs P.O. Box 880 Browning, Montana 594 1 7

Mr. Pascual R. Laborda Bureau of Land Management 5001 Southgate Drive Billings, Montana 59101-4996

Mr. Donato Judice Bureau of Land Management Great Falls Oil and Gas Field Office 1101 15th Street North Great Falls, Montana 59403

s4r. Thomas Richmond Montana Board of Oil and Gas Conservation 2535 St. John's Avenue Billings, Montana 59102

Ms. Stacy Burkhardt Office of Natural Resources Revenue Doc Processing, Mail Stop 63230B P. 0. Box 25627 Denver, CO 80225-0627

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BEFORE THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF MONTANA

c..<

IN THE MATTER OF THE APPLICATION ) OF TESORO PETROLEUM CORPORATION ) FOR AN CRDER AUTHORIZING THE INSTITUTION AND OPERATION OF A ) NATERFLOOD PROJECT IN THE TESORO CUT BANK SAND UNIT AREA, ) GLACIER COUNTY, MONTANA.

Docket No. 17-71 )

ORDER NO. 23-71

Report of the Commission

The above entitled cause came on regularly for hearing on the 15th day of July, 1971, at 9:00 o'clock A.M. in the Clark Room of the Colonial Motor Hotel, City of Helena, County of Lewis and Clark, State of Montana, pursuant to the order of the Oil and Gas Conservation Commission of the State of Montana, hereinafter referred to as the "Commission". At the commencement of the hearing, Commissioner Cox disqualified himself and took no further part in the proceedings or the Commission's deliberations in this matter. No one appeared at the hearing to object to or contest the said application.

Evidence was taken on behalf of the applicant, testimony was presented, statements and exhibits were received; and the Commission then took the cause under advisement.

NOW, on this 15th day of July, 1971, the Commission, a quorum being present, having fully considered the application and testimony and exhibits, and based on evidence presented at such hearing and all things and matters presented to it for its consideration in the matter, and being well and fully advised in the premises, finds and concludes as follows:

Findings of Fact

1. Applicant gave due and proper notice of his intention to make such application by mailing notice to that effect to all persons then known to applicant as owning an interest in the oil and gas within the proposed unit area, and with each notice to the producers applicant enclosed a copy of his proposed plan of unit operations. Such application was filed on June 23, 1971; that no objections or complaints to said applica-tion were filed within ten days of the application as required by the rules and regulations of the Commission. Legal notice was published and given of this matter, of the hearing hereon, and of the time and place for such hearing as well as the purpose thereof. All parties were afforded ample opportunity to present evidence, oral and documentary.

2. Applicant is the owner of leasehold interests underlying 100% of the surface within the area delineated as the "Tesoro Cut Bank Sand Unit Area"; and he has applied to the Commission for an order providing for the unit operation of the Cut Bank Sand Unit within such delineated area, approving or prescribing a plan for unit operations thereof, approval of the unit agreement therefor, and authorization and approval of a waterflood injection program for secondary recovery.

3. The delineated "Tesoro Cut Bank Sand Unit Area" is composed of the following described lands situated in Glacier County, Montana:

Township 32 North, Range 6 West, M.P.M.

• Section 1: Lot 4, 14SW;t Secti‘n 2: Lots 1, 2, 3, 4, S1/2 Section 3: Section 10: All Section 11: N1/2NE=4, SW3/4NEt, Section 12: NI,J107 ,-% Section 14: N14„ N1/2SG;3/4 Section 15: Nk, SW3/4, ASE1/4, NE3/4SE3/4, 1dSE3/4SEi Section 22: N1/2N14,

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ORDER NO. 23-71 (Continued)

4. The waterflood project proposed is that of injecting water into the Cut Bank Sand underlying such unit area, which injection will be initially accomplished through nine input wells, the locations of which are specifically shown in the application and exhibits. The estimated amount of wat- -: to be injected daily will be approximately 10,100 barrels.

5. The primary energy of the reservoir has been substantially depleted, and secondary recovery by water injection is feasible and reasonr_bly necessary to increase the ultimate recovery of oil and gas. The inauguration and conduct of a waterflood injection program such as that proposed by the applicant will result in the recovery of a substantial amount of additional oil which would otherwise remain in place.

6. In order to effectively and efficiently conduct waterflood operations within the delineated area, for pressure maintenance or secondary recovery purposes, there is need for the operation as a unit of the Cut Bank Sand formation or pool underlying the above described lands; and it is necessary that the interests of all owners in the oil and gas therein be unitized.

7. Evidence presented by applicant sufficiently showed that it was not possible to effect a wholly voluntary unitization of interests in said reservoir, and that the issuance of an order for the unit operation of that part of the pool within the delineated area is necessary under the provisions of Section 60-131.1 through Section 60-131.13 of the Revised Codes of Montana.

8. The value of the estimated additional recovery of oil less royalties exceeds the estimated additional cost incident to conducting such operations; and

• 9. The full areal extent of such pool has been reasonably defined and determined by drilling operations; and

10. Applicant's plan for unit operations, as presented at the hearing contains terms and conditions that are just and reasonable and includes the provisions that are required by Section 60-131.3 of the Revised Codes of Montana, as amended; and

11. The plan allocates to each tract in the unit area its fair share of the oil and gas produced from the unit area and not required or consumed in the conduct of the operation of the unit area or unavoidably Lost. The Commission considered the relative value that such share of pro-duction bears to the relative value of all of the separately owned tracts in the unit area, exclusive of physical equipment utilized in unit operations. In so considering such relative value, the Commission weighed the economic value of the gas to all persons affected as compared to the economic value of the oil to all persons affected; and

12. Such plan for unit operations has been heretofore approved in writing by more than the requisite number of owners and persons, and by more than the requisite percentage of interests in the unit area, than the number or amount specified in Section 60-131.4 of the Revised Codes of Montana, as amended; and

13. The proposed unit, unit agreement, plan for unit operations, and waterflood injection program (secondary recovery) are in the public interest, and are in the interests of conservation of oil and gas and prevention of waste within the State of Montana.

Conclusions of Law

The Commission concludes, as a matter of law, that the application

of Tesoro Petroleum Corporation should be granted as applied for. • -2--

ORDER NO. 23-71 (Continued)

Order

IT IS THEREFORE ORDERED by the Oil and Gas Conservation Commission of the State of Montana that the application of Tesoro Petroleum Corporation for an order providing for the operation as a unit of the "Tesoro Cut Bank Sand Unit Area", adopting and approving a plan of unit operations and approving a unit agreement therefor, and authorizing a waterflood injection program in said unit area is hereby granted as applied for. The Commission hereby adopts the plan for unit operations incorporated in the Unit Agreement and Unit Operating Agreement attached hereto and by this reference incorporated as a part hereof, and further approves such Unit Agreement and Unit Operating Agreement.

IT IS FURTHER ORDERED that applicant may drill additional oil or water source wells and may drill or utilize additional input wells and may convert any well to an input well as are necessary to operate said

waterflood project without further notice and hearing, but subject to administrative authorization by this Commission for any such additional wells or well conversions within the unit area.

Done and performed by the Oil and Gas Conservation Commission of the State of Montana, at Helena, Montana, this 15th day of July, 1971.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF MONTANA

C. J. Iverson, Vice Chairman Raymond A. Grant, Commissioner Milton G. Anderson, Commissioner • (Seal)

ATTEST:

Norman J. Beaudry, Executive Secretary

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EXHIBIT 6

GRANT PROJECT SUMMARY: 2007, 2009, 2011, 2013

12-11-13

2007 & 2011 Southern Tank Battery Grant:

The analytical data from the last soil sampling came back in late October, it indicated that oil &

grease concentrations were high in a few spots and further tilling of the landfarm needs to be

done. C Brewer did not get the soils tilled again before soil freeze-up so it will need to be done

in the spring and fertilized again to aid in the bioremediation process. There is now only

$11,474 left in the contract, the Budget Office has not yet approved moving the remaining

grant balance of $96,458 towards increasing the C-Brewer contract to finish the project. The

414044( has been extended until 10-31-14.

tra4,1—

2009 Grants:

Northern: Project completed. $119,169.97 unspent grant money left.

Southern: Project completed. $144,586.56 unspent grant money left.

Total of $263,756 unspent grant money left.

• Northern-Southern: A contract will be issued to Liquid Gold Well Service for $263,756 to plug

18 prioritized wells off their original proposal at an estimated bid cost of $257,699.25

2011 Grants: Eastern: LGWS began plugging the first well on the project in October then pulled

their crews and equipment off back to Cut Bank to meet the demands of service work for

Synergy's new drilling program and the plugging of wells for Anschutz in Glacier County.

Northern-Eastern: LGWS will begin plugging the Northern wells(14) closer to Cut Bank over

the next few months(winter), then will move back east to work on the others.

2013 Grant:-

Not funded by legislature.

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EXHIBIT 7 DEPARTMENT OF NATURAL REcOURCES

AND CONSERVATION BOARD OF OIL AND GAS CONSERVATION

STEVE BULLOCK, GOVERNOR

OIL AND GAS CONSERVATIOT DIVISION

-STATE OF IMO\TA\A

October 30, 2013

Jeff Avery Windy Butte Reclamation 6950 92 nh Ave. NW Powers Lake, ND 58773

Dear Mr. Avery:

This morning, a Board of Oil and Gas field inspector inspected the SWD 101 disposal well operated by Windy Butte Reclamation. He found the well injecting at a pressure of 1650 psi, which is over the permitted pressure of 1550 psi.

This is the 4 th time within the past 16 months Windy Butte has been observed operating this well in violation of its permit.

The next meeting of the Board is on December 11, 2013. ThLs situation will be brought to the Board's attention for enforcement action at that meeting.

You can contact me at (406) 656-0040 if you have any questtons.

Sincerely,

George Hudak UIC Director

CC: Plentywood Field Office

DIVISION OFFICE 1625 ELEVENTH AVENUE

PO BOX 201601 HELENA, MONTANA 59620-1601

(406) 444-6675 •

TECHNICAL AND SOUTHERN FIELD OFFICE

2535 ST. JOHNS AVENUE BILLINGS, MONTANA 59102-4693

(406) 656-0040

NORTHERN FIELD OFFICE 201 MAIN STREET

PO BOX 690 SHELBY, MONTANA 59474-0690

(406) 434-2422