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HomeMy WebLinkAbout3.4.1 COGCC PermitsF 2 Rs 11105 C/ State of Colorado Oil and Gas Conservation Commission 1120 LimoIn Steer Suite 801, Denver, Cdaedo 130203 Phone: (S03)844-2100 Fax:(303)884.210s APPLICATION FOR PERMIT TO: Spacing Order Number (s) o< r Unit Configuration II02, SE/4, etc.) f _ ' ',,A��% CONDITIONS OF APPROVAL: BATTLEMENT MESA PARTNERS PA 424-5 24 HOUR SPUD NOTICE REQUIRED. E-MAIL; JAIME.ADKINS@STATE.CO.US NEW GARFIELD COUNTY RULISON FIELD NOTICE TO OPERATORS. NOTE: ALL NOTICES SHALL BE GIVEN VIA E-MAIL RESERVE PIT MUST BE LINED. TO PREVENT THE LOSS OF DRILLING FLUID TO SHALLOW FORMATIONS AND TO PROTECT SHALLOW GROUNDWATER AND SURFACE WATERS, CONDUCTOR PIPE SHALL BE SET AT A DEPTH SUFFICIENT TO INSURE ABSOLUTE WELLBORE INTEGRITY DURING DRILLING OPERATIONS. CONDUCTOR PIPE MUST BE SET AT A MINIMUM DEPTH OF 200', OR AT A DEPTH AT WHICH FORMATION INTEGRITY IS SUFFICIENT TO PREVENT A LOSS OF DRILLING FLUID, WHICHEVER IS GREATER, ON THE FIRST WELL ON EACH PAD AND CEMENTED BY THE PUMPED PLUG METHOD. CONDUCTOR PIPE SETTING DEPTHS ON SUBSEQUENT WELLS ON THE PAD MAY BE INCREASED OR DECREASED BASED ON GEOLOGIC CONDITIONS ENCOUNTERED IN THE FIRST WELL SO AS TO INSURE ABSOLUTE WELLBORE INTEGRITY. CEMENT TOP VERIFICATION BY CBL REQUIRED. THE PROPOSED SURFACE CASING IS MORE THAN 50' BELOW THE DEPTH OF THE DEEPEST WATER WELL WITHIN 1 MILE OF THE SURFACE LOCATION WHEN CORRECTED FOR ELEVATION DIFFERENCES. THE DEEPEST WATER WELL WITHIN 1 MILE IS 205 FEET DEEP. THE OPERATOR SHALL COMPLY WITH RULE 321., AND IT SHALL BE THE OPERATOR'S RESPONSIBILITY TO ENSURE THAT THE WELLBORE COMPLIES WITH SETBACK REQUIREMENTS IN COMMISSION ORDERS OR RULES PRIOR TO PRODUCING THE WELL. • • • 0 s r NOTICE TO ALL OPERATORS DRILLING WILLIAMS FORK FORMATION WELLS IN GARFIELD COUNTY SURFACE CASING DEPTH AND MODIFICATION OFLEAKOFFTEST REQUIREMENTS JUNE 23, 2006 (Amends May 3, 2001 Notice) Based on the evaluation of the leakoff test data, drilling histories and reservoir parameters for Williams Fork Formation wells in Garfield County, the surface casing setting depth requirements specified in the September 22, 1998 policy statement amended May 3, 2001 will remain in effect. Surface casing leakoff tests will be performed at the discretion of the operator with the exception of additional leakoff test requirements that may apply in the Grand Valley Field as required by an earlier notice. The following conditions are to be attached to all Permits -to -Drill for Williams Fork Formation or deeper gas wells in Garfield County: The following shall be required in the Rulison Field Overpressured Area: I , The Rulison Field Overpressured Area is defined as (see attached map): Township 6 South, Range 94 West, Sections 9, 15-23, 26-35 Township 7 South, Range 94 West, Sections 2-6, 8-10, 11, 15, 16 2. Surface casing must be set at a minimum depth of 1100 feet. The following shall be required in all fields in Garfield County: 1. Notify the COGCC Northwest Area Engineer 24 hours prior to commencing wellsite construction, setting of conductor pipe, well spudding, running all casing and any cementing operations so that COGCC staff may have the opportunity to witness. All notification shall be given via e-mail whenever possible. 2. Surface casing shall be set at a minimum depth of ten percent (10%) of the total depth of the well. 3. All lost circulation zones, gas kicks and water flows shall be reported to the COGCC Northwest Colorado Area Engineer as soon as feasible within twenty-four (24) hours of occurrence. 4. Significant lost circulation shall be defined as a mud loss in excess of 100 barrels and which requires shut down of operations for an hour or longer to pump lost circulation material and rebuild pit volume. The following data is required: depth, mud volume lost, whether or not a kick ensued, mud weights before and after lost circulation, and procedures used to regain circulation. 5. A significant kick shall be defined as one that is managed by shutting in the well to circulate out the kick or that is managed by going on choke and requiring an increase in mud weight exceeding 3/10ths of one pound per gallon to control. The following data is required: date and time of the kick, total depth of the well at the time of the kick, surface casing depth, size and cementing data, initial and final mud weights, shut in drill pipe pressure, shut in casing pressure, or any other pressure measurement or information used to determine the mud weight necessary to control the kick. 6. The depth, rate and mud weight on all water flows must be reported. 7. Upon completion of the primary cementing operation, the annular fluid level around the production casing shall be monitored for a minimum of 4 hours after cementing. Operators shall maintain the ability to monitor the annular fluid level and keep the hole full. The amount of mud that is used to keep the hole full shall be recorded. If mud volumes in excess of twenty (20) barrels are necessary to keep the hole full, the loss of fluid shall be reported to the COGCC immediately. For all notifications contact COGCC Northwest Area Colorado Area Engineer Jaime Adkins via e-mail at: jaime.adkins@state.co.us or in urgent cases at 970-285-9000(0), 970-250-2440(C). Thank you for cooperating with these requirements. Brian Macke, Director 8 .Of 9 10 • 18 17 400.1(++ .«4,t M L /wr . Mme„ c.c 4M , .04Urt.��.p.. O- '[036 40.00. 3 16 ....rr. .«».n •p11' ..1.tR nt 1�n..r~s 4040. 'w 15 .. rsre •.f 0... 14 p . ▪ 0 imam11 O' ICbolo ow ▪ .tQ, .0 19 •4040..... - • "4040"' _q • /e... - - ......cso. •_ wpm • Om .__.�li� - . ! J 9▪ ..ril.kai \ USW 7S'` 21 .. 000•1 ._ 2�)n m II.Pre 03 ;0.40 • .,..,f @w ?,,,40" :.'" 0 401111. .m7 is 4t$;:, aim. Q' $• _ iii 40.00.., • • f .�1y1.��.ia�. y •e r ».'.V Y ��MSJ7 040.0 pear Y.0i1.. 0 •4040:..., . ..yK .wf g.1 awr r.c MIC ...meat r..1.a1 Mal my, -30 I JP • •r."N+tiei wore 0003032wsw .I.ar-. -,•Q,»4 WAS 33. 41 11100611.411 • • BillWiwamens IRIFM p • `• ..�_.,. -1' ,40 • 11.4 wave amet 40..0 +_ 36S !Z 9411,./ T7 s OWN Y�.1. PCP FIELD O VE + pgEss vR gt. 14 •f1Rx a/00 C A.r / • ruAFACE ,G KEQVIZE�� • I. FORM Formation Code Spacing Order Number (s) u Unit Configuration (14+2, 80/4, etc.) FE WMFK State of Colorado _ S/2 Spreading INN a pit permit (Rude 9055.) local fire officials, Rev i Oil and Gas Conservation Commission 1120 Lhrdn Sleet Suis 801. Darer, Colorado 80207 Phone: (303)894.2100 Fard303)8s4.210e �. N ( L [ F^ C E I V r D APPLICATION FOR PERMIT TO: V a��" T:�+c� (� L.. 1 © Drill, = Deepen, - Re-enter, - Recomplete and Operate flrl 22 0-1 TYPE OIL NI OF WELL GAS X COALBED - OTHER: Reining I Sidetrack Indian Lease x _ Indian 80402. Plugging 8oSurety IDS ACC SINGLE ZONER MULTIPLE ZONES COMMINGLE ZONES - C Lump < 1 3 Name of Operator Williams Production RMT Company 4. COGCC Operator Number 96850 Auachrrxnt Cheats. OP COCCC 5. Address: 1515 Arapahoe St., Tower 3,411000 APD Ong 8 1 Copy X 25. Distance to Nearest Mineral Lease Line: Approx 395' EHL 26. Total Acres in Lease: 160 (estimated) City: Denver Stale CO Zip: 80202 Form 2A X 6. Contact Name: Howard Harris Phone: (303) 606-4086 Fax: (303) 629-8285 Well location plat X 7. Well Name: Battlement Mesa Partners Well Number. PA 434-5 Topo reap X 11 Yc'yfi74 8. Unit Name (il appl): Unit Number: Mineral lease map X 9. Proposed Total Measured Depth: 6642 Surface agrmUSurety X 32. BOP Equipment 33. Comments WELL LOCATION INFORMATION 30 Day notice letter X 1.4.60 10. OtrOtr: N1N14 SE/4 Sec: 5 Twp: 7S Rng: 95W Meridian: 6111 P.M. . Deviated ()rifling Plan X 34. Initial Rule 306 Consultation took has been waived or if good faith PERMIT SUBMITTED TO COGCC t hereby certify that a complete to the best of my kr/ledge. trj, Signed: __tet..) ` Latitude: 39.464381° Longitude: 108.020047° Exception Location waived, or is not required. Provide supporting documentation if consultation 306 CONSULTATION SHALL BE RETURNED UNAPPROVED. Local Government Designee(s). arc all statements made in this tone are, Print Name: Howard Harris In consultation. WITH RULE been sent to the appticable roast selr?vA Request Footage At Surface: 1767 FSL 2266 IFEL Exception Loc Waivers .1 11. Field Name: Parachute Field Number: 67350 4125 Contingency Plan 12. Ground Elevation: 5105 13. County: Garfield Federal Drifin_o Permit 14 GPS Data: Date of Measurement: 5/7/2007 POOP Reading: 2.5 Instrument Operatofs Name: Lauren Vance 15. If well is: © Directional - Horizontal (highly deviated), submit deviated drifting plan. Botomhole Sec Twp Rng. SWSE Sec 5-17S-R95W Mum. FCUrw. rMAet FR., w. Footage At Top of Prod Zoe: 1395 1 ® h962 1 FEL At Bottom Hole: 1395 1 gal 11962 1 FEL 16. Is bation in a high density area (Rule 6039)? - Yes © No 17. Distance to the nearest building, public road, above ground utility or railroad: ....2,•,68 -VP 18. Distance to Nearest Property Line: Approx 410' SHL 19. Distance 10 nearest well permitted/completed in the same formation: Approx 1074' From BHL 20. LEASE, SPACING AND POOLING INFORMATIO Objective Formation(s) Formation Code Spacing Order Number (s) Unit Acreage Assigned 10 Well Unit Configuration (14+2, 80/4, etc.) Williams Fork WMFK 440.36 320 Fee Poosd S/2 Spreading INN a pit permit (Rude 9055.) local fire officials, String Size of tole Size of Casing Weight Per Foot Setting Oepth Sacks Cement Cement Bottom Cement Top nductor 24' 18' 484 21. Mineral Ownership: X Fee 22. Surface Ownership: X Fee 23. Is the Surface Owner also the Mineral Owner? 23a. If 23 is Yes: Is the Surface Owners) 230. If 23 Is No: © Surface Owners 24. Using standard OtrOtr, Sec, Twp, Rng format See Attached State State - Federal 1111111 Federal Indian Lease x _ Indian Surface Surety IN - signature on Agreement Attached enter entire Yes ( 8 No the lease? I Yes - No Bond III55,000 Staface Bond separate sheeUmap 6 you prefer), or I 525,000 Blanket Surface Bond (♦ S2000 Surface upon which this proposed wellsite is located (attach • mineral lease dee:dation 25. Distance to Nearest Mineral Lease Line: Approx 395' EHL 26. Total Acres in Lease: 160 (estimated) DRILLING PLANS AND PROCEDURES /c) 27. IS H2S anticipated? - Yes © No 28. 11.411 salt sections be encountered cluing drilling? 29. Will salt (>15,000 ppm TDS CI) or dl based muds be used 30. II questions 27 0r 28 are yes, is this location in a sensitive 31. Mud disposal: - Offsite © Onsite Method: I. Land Farming - Land NOTE: The use o an earthen pit for Recompletion fluids requires 9 Yes, attach continge plan. No No No 1128, 29 or 30 are 'Yes' a ph permit © Other: Evaporation and Bacldilling may be required. - Yes © during drilling? area (Rule 903)? IN Yes 7, - Yes Disposal FaciI0 It air/gas Milling, no Spreading INN a pit permit (Rude 9055.) local fire officials, String Size of tole Size of Casing Weight Per Foot Setting Oepth Sacks Cement Cement Bottom Cement Top nductor 24' 18' 484 40' Ckoaare Cw Io Surface 40 Surface Surface 1312' 9518' 32.34 1517 GaateCowie Surface 1517 Surface Production 7748' 412' 11.64 6642 Cm1200' atom upperm,^st mesaverde sane 11 Yc'yfi74 Skiit'.0 4*.I . $ rivfa'W:•: Stage Tool 32. BOP Equipment 33. Comments Typo: © Annular Prevn�ntor [] Double Ram Ci:i,i,.t .J .-•.,...4 3cr5- © Rotating Head n None .� a- (4 t4 /0 -2gv7 ,:wr v./u..,e-.r /3•STdeyeie•(L_ 34. Initial Rule 306 Consultation took has been waived or if good faith PERMIT SUBMITTED TO COGCC t hereby certify that a complete to the best of my kr/ledge. trj, Signed: __tet..) ` dace on (date) effort did not result PRIOR TO COMPLIANCE permit package has t�e'' co/ne/r�_ and complete. //'_ -_ • / /j' ' ,was waived, or is not required. Provide supporting documentation if consultation 306 CONSULTATION SHALL BE RETURNED UNAPPROVED. Local Government Designee(s). arc all statements made in this tone are, Print Name: Howard Harris In consultation. WITH RULE been sent to the appticable - Title: Sr. Engineering Technician Date: /D/L 7/n7 Email: ard.NamnCDWenams.cmn Based on the Information pr COGCC Approved: d herein this Application for Permit -to -Dell complies with COGCC Rules and applicable orders and is hereby approved. Director of COGCC Dale: //-/9-07 API NUMBER D5 -O(-/5 _ /509 2 _ orf 4. 7 L. 2 Permit Number: 90 7 5 9 6 5 CONDITIONS OF APPROVAL, IF ANY: SEE ATTACHED PAGES: CONDITIONS OF APPROVAL AND NOTICE 'TO OPERATORS Expiration Date: 11-18' -oar CONDITIONS OF APPROVAL: BATTLEMENT MESA PARTNERS PA 434-5 24 HOUR SPUD NOTICE REQUIRED. E-MAIL; JAIME.ADKINS@STATE.00.US NEW GARFIELD COUNTY RULISON FIELD NOTICE TO OPERATORS. NOTE: ALL NOTICES SHALL BE GIVEN VIA E-MAIL RESERVE PIT MUST BE LINED. TO PREVENT THE LOSS OF DRILLING FLUID TO SHALLOW FORMATIONS AND TO PROTECT SHALLOW GROUNDWATER AND SURFACE WATERS, CONDUCTOR PIPE SHALL BE SET AT A DEPTH SUFFICIENT TO INSURE ABSOLUTE WELLBORE INTEGRITY DURING DRILLING OPERATIONS. CONDUCTOR PIPE MUST BE SET AT A MINIMUM DEPTH OF 200', OR AT A DEPTH AT WHICH FORMATION INTEGRITY IS SUFFICIENT TO PREVENT A LOSS OF DRILLING FLUID, WHICHEVER IS GREATER, ON THE FIRST WELL ON EACH PAD AND CEMENTED BY THE PUMPED PLUG METHOD. CONDUCTOR PIPE SETTING DEPTHS ON SUBSEQUENT WELLS ON THE PAD MAY BE INCREASED OR DECREASED BASED ON GEOLOGIC CONDITIONS ENCOUNTERED IN THE FIRST WELL SO AS TO INSURE ABSOLUTE WELLBORE INTEGRITY. CEMENT TOP VERIFICATION BY CBL REQUIRED. THE PROPOSED SURFACE CASING IS MORE THAN 50' BELOW THE DEPTH OF THE DEEPEST WATER WELL WITHIN 1 MILE OF THE SURFACE LOCATION WHEN CORRECTED FOR ELEVATION DIFFERENCES. THE DEEPEST WATER WELL WITHIN 1 MILE IS 205 FEET DEEP. THE OPERATOR SHALL COMPLY WITH RULE 321., AND IT SHALL BE THE OPERATOR'S RESPONSIBILITY TO ENSURE THAT THE WELLBORE COMPLIES WITH SETBACK REQUIREMENTS IN COMMISSION ORDERS OR RULES PRIOR TO PRODUCING THE WELL. • • • • • NOTICE TO ALL OPERATORS DRILLING WILLIAMS FORK FORMATION WELLS LN GARFIELD COUNTY SURFACE CASING DEPTH AND MODIFICATION OF LEAKOFF TEST REQUIREMENTS JUNE 23, 2006 (Amends May 3, 2001 Notice) Based on the evaluation of the leakoff test data, drilling histories and reservoir parameters for Williams Fork Formation wells in Garfield County, the surface casing setting depth requirements specified in the September 22, 1998 policy statement amended May 3, 2001 will remain in effect. Surface casing leakoff tests will be performed at the discretion of the operator with the exception of additional leakoff test requirements that may apply in the Grand Valley Field as required by an earlier notice. The following conditions are to be attached to all Permits -to -Drill for Williams Fork Formation or deeper gas wells in Garfield County: The following shall be required in the Rulison Field Overpressured Area: 1. The Rulison Field Overpressured Area is defined as (see attached map): Township 6 South, Range 94 West, Sections 9, 15-23, 26-35 Township 7 South, Range 94 West, Sections 2-6, 8-10, 11, 15, 16 2. Surface casing must be set at a minimum depth of 1100 feet. The following shall be required in all fields in Garfield County: I. Notify the COGCC Northwest Area Engineer 24 hours prior to commencing wellsite construction, setting of conductor pipe, well spudding, running all casing and any cementing operations so that COGCC staff may have the opportunity to witness. All notification shall be given via e-mail whenever possible. 2. Surface casing shall be set at a minimum depth of ten percent (10%) of the total depth of the well. 3. All lost circulation zones, gas kicks and water flows shall be reported to the COGCC Northwest Colorado Area Engineer as soon as feasible within twenty-four (24) hours of occurrence. 4. Significant lost circulation shall be defined as a mud loss in excess of 100 barrels and which requires shut down of operations for an hour or longer to pump lost circulation material and rebuild pit volume. The following data is required: depth, mud volume lost, whether or not a kick ensued, mud weights before and after lost circulation, and procedures used to regain circulation. 5. A significant kick shall be defined as one that is managed by shutting in the well to circulate out the kick or that is managed by going on choke and requiring an increase in mud weight exceeding 3/10ths of one pound per gallon to control. The following data is required: date and time of the kick, total depth of the well at the time of the kick, surface casing depth, size and cementing data, initial and final mud weights, shut in drill pipe pressure, shut in casing pressure, or any other pressure measurement or information used to determine the mud weight necessary to control the kick. 6. The depth, rate and mud weight on all water flows must be reported. 7. Upon completion of the primary cementing operation, the annular fluid level around the production casing shall be monitored for a minimum of 4 hours after cementing. Operators shall maintain the ability to monitor the annular fluid level and keep the hole full. The amount of mud that is used to keep the hole full shall be recorded. If mud volumes in excess of twenty (20) barrels are necessary to keep the hole full, the loss of fluid shall be reported to the COGCC immediately. For all notifications contact COGCC Northwest Area Colorado Area Engineer Jaime Adkins via e-mail at: jaime.adkinsCstate.co.us or in urgent cascs at 970-285-9000(0), 970-250-2440(C). Thank you for cooperating with these requirements. Brian Macke, Director w 4 • }s t. a�c•f 8 9 10 10...000 • •0 4900. ..•9000 .w— 11 .Q� 1 ;„. y. M.�( Ow .f0 M..[00 .. 9.9.09 S r 9.69949 •�•PT. ”' ,00F 18 • Fr(TT • 4i.• - #M c 1rW.• (q•/ w�+h•1�i1Q' ...y. • 17. „1716 /00,690 r i9 vow) 9.•.00 11.9.9099. % - .•• 696. 0.... =Merl 41= .•r 19 # —7 qr. OM 14 6..09 dowry• ma M • ....{.�0[.d!" 00.00: O� 9..00 ° rr: w M•+ 99;00p4 f •004* 9r.f -« • 0000 mfr • s. y19►T, N 6 23 ?.1 9.69!7, ..w.. .90009 • 0.0.00 4 26 31 000 01.00.. _ate, .040 or - .rA O w OM • •; man-324vviv ' I 01.9.19•4' I • F01101.10. "'"."0.004 33 . Mus ��►i00peRty wimii .06r17 *~- -- • 0 . 171• „rr .4_..P,f1r. •9..• • T 6 S A 99W • • • • FO11M 2 Rev 12/05 State of Colorado 011 and Gas Conservation Commission 1120 Lincoln Street, Suite 801,Denver, Colorado 80203 Phone' (30094.2100 Fax(303)894.2109 APPLICATION FOR PERMIT TO: 1. 0 Dri,l, Deepen, 0 Re-enter, Recomplete end Operate 2. TYPE OF WELL OILED GAS X COALBEDD OTHER: SINGLE ZONE R MULTIPLE ZONESf COMMINGLE ZONES Refiling Sidetrack 3. Name of Operator. Williams Production RMT Company 4. COGCC Operator Number; 96850 5. Address: 1515 Arapahoe St., Tower 3, #1000 City: Denver 6. Contact Name: Howard Harris Cornpleta lF9 Attatment Checkl:ei OP APO Ong 81 Copy X State: CO Zip: 80202 7. Well Name; Battlement Mesa 8. Unit Name (if appl): Phone: (303)606.4086 Fax: (303) 629-8265 9. Proposed Total Measured Depth: 7261'1 Well Number: PA 13-5 Form 2A X Well location plat X Topo map X Unit Number: Mineral lease map x Surface agrmt/Surety X 10. OtrQtr: NWSE Latitude: 39.464507° WELL LOCATION INFORMATION Sem 5 Twp: 7S Footage At Surface: 1811 11. Field Name: Parachute sal Rng; 9$W Longitude: 108.020263 -8817w. FEL , Field Number. 2325 12. Ground Elevation: 5104 13. County: Garfield Meridian: 6th P.M. 67350 30 Day notice letter X Deviated Drilling Plan Exception Location Request Exception Loc Waivers H2S Contingency Plan Federal Drilling Permit 14. GPS Data: Date of Measurement: 6/112008 PDOP Reading: < 6.0 Instrument Operator's Name: J. Kirkpatrick 15. If well is: ❑X Directional ED Horizontal (highly deviated), fNUFSL Footage Al Top at Prod Zone: 12164 IFSLI submit deviated drilling plan. rElhw. 1184 1FWL] Bottomhole Sec Twp Rng: NWSW Sec 5-17S-R95W (2164 Riff SL 1184 FEt.0 w FWL 16. Is location in a high density area (Rule 6036)? ED Yes 1---1 No 17. Distance 10 the nearest building, public road, above ground utility or railroad: Approx 252' OE (Drk Ht 127) 18. Distance to Nearest Property Line: Approx 301' SHL 19. Distance to nearest well permittecYcornplated in the same formation; Approx 722' From BHL 20. Objective Formation(s) Formation Code 4�n��, ��ne.,,.., n,........�..._ Spacing Order Number (s) .... _. _-....._.. Unit Acreage Assigned to Well Unit Configuration (N/2, SE/4, etc.) Williams Fork WMFK 440-36 320 S'2 (Fee Pooled) Disp sal Facility 0 air/gas drilling, notify Spreading gm a p4 permit (Rule 905b.) local fire officials. String Size of Hole Sae of Casing Weight Per Foot Setting Depth Sacks Cement Cement Bottom Cement Top Conductor 24 18' 21. Mineral Ownership: X 22. Surface Ownership: 5 23. Is the Surface Owner also the 23a. If 23 is Yes: Is the Surface 236.1123 is No: © Surface 24. Using standard OtrOtr, Sec, Federal Federal Lease 4 Fee El State Fee State _Indian Indian Surface Surety Di Mineral Owne 1 • Owner(s) signature an Owners Agreement Attached Twp, Rng format enter entire Yes ' X No the lease? 1 Yes No Bond • $5,000 Surface Bond separate sheet'map if you prefer): or I $25,000 Blanket Surface Bond El $2,000 Surface upon which this proposed wellsite is located (attach See Attached mineral lease description 25. Distance tc Nearest Mineral Lease Line: 184 26. Total Acres in Lease: 146.10 Crre 200' aboue uppemlos mesaverde sand Based on the in+crmation provi eroin, tr A plication for Permit -to -Drill complies with COGCC Rules and applicable orders and Is hereby approved. COGCC Approved: atae �ls• Director of COGCC Date: Sy Expiration Date: a / 1 to / a-ot eo R Permit Number: O O Q U v 6 API NUMBER 05- OL -t5 ^ l t'%'3 'o0 CONDITION F APPROVAL IF ANY: SEE ATTACHED PAGES: CONDITIONS OF APPROVAL AND NOTICE 10 OPERATORS 27. Is 1125 anticipated? El Yes © No 28. Will salt sections be encountered duing drilling? 29. Wil salt (>15,000 ppm IDS CI) or oil based muds be used 30. If questions 27 or 28 are yes, is bus location In a sensitive 31. Mud disposal: I OfIsite © Onsite Method: I. Land Farming III Lend NOTE: The use of an earthen pit for Recompletion Iluids regJhes 11 Yes, attach cone r��ency plan. No No No If 28, 29 or 30 are 'Yes" a pit permlt © Other. Evaporation and Backfilling may be required. Yes I X during drilling? area (Rule 903)? Yes X Yes__ Disp sal Facility 0 air/gas drilling, notify Spreading gm a p4 permit (Rule 905b.) local fire officials. String Size of Hole Sae of Casing Weight Per Foot Setting Depth Sacks Cement Cement Bottom Cement Top Conductor 24 18' 458 44, �)- 25 45' 01' Surface Surface 11312' 9 5/8' 32.30 137§ Circulate Cent to surface 61 Surface Production 77/8' 4 1/2' 11.68 7 11a'go Crre 200' aboue uppemlos mesaverde sand ,^a'', t .•''.:- .' 74'.i':_.2S'StageTool . 32. BOP Equipment 33. Comments .. Annular Preventor 320 acres IIII None wells at this time, total planned wells 29 Type: © © Double Ram in s2 Unit, currently 5 existing © Rotating Head wells, permitting 16 Closed Loop Mud System 34 Initial Rule 306 Conauftadon took place on (date) has been waived or if good faith effort did not result PERMIT SUBMITTED TO COGCC PRIOR TO COMPLIANCE 1 hereby certify that a complete permit package has to the best of my owledge, tr , rre , and complete. Signed: / 10/16/2007 ,was waved, or Is not required. Provide supporting documentation if consultation 306 CONSULTATION SHALL BE RETURNED UNAPPROVED. Local Government Designee(s). and all statements made in this form are. Print Name: Howard Harris in consultation. WITH RULE been sent to the applicable • 11 Title: Sr /He Engineering Technician Date: /a T Ernail: t w8rrd H?Ipis6WIuiaM5 cum Based on the in+crmation provi eroin, tr A plication for Permit -to -Drill complies with COGCC Rules and applicable orders and Is hereby approved. COGCC Approved: atae �ls• Director of COGCC Date: Sy Expiration Date: a / 1 to / a-ot eo R Permit Number: O O Q U v 6 API NUMBER 05- OL -t5 ^ l t'%'3 'o0 CONDITION F APPROVAL IF ANY: SEE ATTACHED PAGES: CONDITIONS OF APPROVAL AND NOTICE 10 OPERATORS CONDITIONS OF APPROVAL WILLIAMS BATTLEMENT MESA PA 13-5 24 HOUR SPUD NOTICE REQUIRED. E-MAIL: david.andrews(a�state.co.us NEW GARFIELD COUNTY RULISON FIELD NOTICE TO OPERATORS. NOTE: ALL NOTICES SHALL BE GIVEN VIA E-MAIL. SEE ATTACHED NOTICE RESERVE PIT MUST BE LINED. CEMENT TOP VERIFICATION BY CBL REQUIRED OPERATOR MUST ENSURE 100 PERCENT SECONDARY CONTAINMENT FOR ANY VOLUME OF FLUIDS CONTAINED AT WELL SITE DURING DRILLING AND COMPLETION OPERATIONS. IF FLUIDS ARE CONVEYED VIA PIPELINE, OPERATOR MUST IMPLEMENT BEST MANAGEMENT PRACTICES TO CONTAIN ANY UNINTENTIONAL RELEASE OF FLUIDS.. FLOWBACK TO TANKS ONLY. SUBMIT A SECONDARY AND TERTIARY CONTAINMENT PLAN VIA SUNDRY NOTICE FORM 4 FOR THE TANKS. ATTN: CHRIS CANFIELD. OBTAIN APPROVAL OF THE PLAN PRIOR TO FLOWBACK. THE MOISTURE CONTENT OF ANY DRILL CUTTINGS IN A CUTTINGS PIT, TRENCH, OR PILE SHALL BE AS LOW AS PRACTICABLE TO PREVENT ACCUMULATION OF LIQUIDS GREATER THAN DE MINIMIS AMOUNTS. AT THE TIME OF CLOSURE, THE DRILL CUTTINGS MUST ALSO MEET THE APPLICABLE STANDARDS OF TABLE 910-1. THE PROPOSED SURFACE CASING IS MORE THAN 50' BELOW THE DEPTH OF THE DEEPEST WATER WELL WITHIN IMILE OF THE SURFACE LOCATION WHEN CORRECTED FOR ELEVATION DIFFERENCES. THE DEEPEST WATER WELL WITHIN 1 MILE IS 205 FEET DEEP. THE OPERATOR SHALL COMPLY WITH RULE 321. AND 1T SHALL BE THE OPERATOR'S RESPONSIBILITY TO ENSURE THAT THE WELLBORE COMPLIES WITH SETBACK REQUIREMENTS IN COMMISSION ORDERS OR RULES PRIOR TO PRODUCING THE WELL. • • • • • NOTICE TO ALL OPERATORS DRILLING WILLIAMS FORK FORMATION WELLS IN GARFIELD COUNTY SURFACE CASING DEPTH AND MODIFICATION OF LEAKOFF TEST REQUIREMENTS JUNE 23, 2006 (Amends May 3, 2001 Notice) Based on the evaluation of the leakoff test data, drilling histories and reservoir parameters for Williams Fork Formation wells in Garfield County, the surface casing setting depth requirements specified in the September 22, 1998 policy statement amended May 3, 2001 will remain in effect. Surface casing leakoff tests will be performed at the discretion of the operator with the exception of additional leakoff test requirements that may apply in the Grand Valley Field as required by an earlier notice. The following conditions are to be attached to all Permits -to -Drill for Williams Fork Formation or deeper gas wells in Garfield County: The following shall be required in the Rulison Field Overpressured Area: 1. The Rulison Field Overpressured Area is defined as (see attached map): Township 6 South, Range 94 West, Sections 9, 15-23, 26-35 Township 7 South, Range 94 West, Sections 2-6, 8-10, 11, 15, 16 2. Surface casing must be set at a minimum depth of 1100 feet. The following shall be required in all fields in Garfield County: 1. Notify the COGCC Northwest Area Engineer 24 hours prior to commencing wellsite construction, setting of conductor pipe, well spudding, running all casing and any cementing operations so that COGCC staff 'nay have the opportunity to witness, All notification shall be given via e-mail whenever possible. 2. Surface casing shall be set at a minimum depth of ten percent (10%) of the total depth of the well. 3. All lost circulation zones, gas kicks and water flows shall be reported to the COGCC Northwest Colorado Area Engineer as soon as feasible within twenty-four (24) hours of occurrence. 4. Significant lost circulation shall be defined as a mud loss in excess of 100 barrels and which requires shut down of operations for an hour or longer to pump lost circulation material and rebuild pit volume. The following data is required: depth, mud volume lost, whether or not a kick ensued, mud weights before and after lost circulation, and procedures used to regain circulation. 5. A significant kick shall be defined as one that is managed by shutting in the well to circulate out the kick or that is managed by going on choke and requiring an increase in mud weight exceeding 3/10ths of one pound per gallon to control. The following data is required: date and time of the kick, total depth of the well at the time of the kick, surface casing depth, size and cementing data, initial and final mud weights, shut in drill pipe pressure, shut in casing pressure, or any other pressure measurement or information used to determine the mud weight necessary to control the kick. 6. The depth, rate and mud weight on all water flows must be reported. 7. Upon completion of the primary cementing operation, the annular fluid level around the production casing shall be monitored for a minimum of 4 hours after cementing. Operators shall maintain the ability to monitor the annular fluid level and keep the hole full. The amount of mud that is used to keep the hole full shall be recorded, If thud volumes in excess of twenty (20) barrels are necessary to keep the hole full, the loss of fluid shall be reported to the COGCC immediately. For all notifications contact COGCC Northwest Area Colorado Area Engineer Jaime Adkins via e-mail at: iaime.adkins(cr�state.co.us or in urgent cases at 970-285-9000(0), 970-250-2440(C). Thank you for cooperating with these requirements. Brian Macke, Director COGCC Notice to Operators (June 23, 2006) Rulison Overpressured Area (1100 feet of Surface Casing Required) • • • State of Colorado Oil and Gas Conservation Commission 1120 Lnudn Sseat,6Wte 821.0eeier•Coluado 80203 Perm 1303)894.2100 Fax APPLICATION FOR PERMIT TO: 1. E3 Drill, Ej Deepen, El Re-enter, J Recomplete and Opelale 2. TYPE OF WELL OLD GASX COALBED OTHER: SINGLE ZONE MULT:PLE ZONES] , COMMINGLE ZONES Refiling Sidetrack \-1DEC 102008 ,.„,gonoCiOC 3. Name or Ope ator Williams Production RMT Company 4. COGCC Operator Number 96850 Complete the Anachmenl Cneck,at OP OGCC 5. Address: 1515 Arapahoe St., Tower 3, 61003 City: Denver State: CO Zip: 80202 6 Contact Name: Howard Hams Phone: (303) 606.4086 Fax: (303) 6298265 7. Well Name: Battlement Mesa Wel! Number: PA 23-5 8. Unit Name (it appl):n , 1 Unit Number. 9. Proposed Total Measured Depth: In 10. QtrOtr: NWSE Sec: 5 APO 0rg & 1 Cop x Farm 2A X Well location plat x Top. map X Mineral lease 11102 X Surface agrrJSurety X WE L LOCATION INFORMATION ling: 95W Meridian: 6th P.M. Two: 7S Latitude: 39.464526° Longitude: 108.020237 FEL/Al. 9,FR Footage At Surface: 11818 I FSL 11. Field Name: Parachute 12.317 IFEL 1 2. Ground Elevation: 5104 13. County: Garfield Field Number. 67350 30 Day notice letter X Deviated Dr81in5 Flan -€xception Location Request Exception Loc Waivers H2S Contingency Plan Federal Drilling Permit 14. GPS Data: Date of Measurement. 6/112008 FDOP Reading: < 6.0 Instrument Operator's Name: J. Kirkpatrick 15. If well is: EX Directional Horizontal (highly deviated), FrefFS: Footage At Top of Prod Zone: 12411 11332 submit deviated drilling plan. FEL'F1. FWL Bottomhole Sec Twp Rng: 12411 NWSW Sec 5-T7S-695W 11332 FWL 16. Is location in a high density area (Rule 603b)? E=1 Yes No 17. Distance to the nearest building, public road, above ground utility or 16:11 ad: Approx 252' OE (Drk Ht. =127') 18. Distance to Nearest Property Line: Approx 301' SHL 19. Distance to nearest well permitted/completed in Ise same formation: Approx 545' From BHL 20. Objective Formation(s) Formation Code LCAoc, arwt.rtvu N1ev rvvrll.v Spacing Order Number (s) .,....,.,...•.••,•. Unit Acreage Assigned to Well Unit Configuration (N2, SE14, elc.) Williams Fork WMFK 440-36 320 S/2 (PeePeeled) Yes C Disposal Facility 11 aidgas drilling, notify Spreading 1111111 a pit permit (Rule 905b.) local fix officials. String Size of Hole Size of Casing Weight Per Foot Setting Sacks Cement Cement. Cement Top Conductor 24' 18' FeerStale Fee Mineral Owne Owners) Owners Twp, Rng format State EN Federal 1111 Federal Indian Indian Lease 9 21. Mineral Ownership: © 22. Surface Ownership: © 23. Is the Surface Owner also the 23a. If 23 is Yes: Is the Surface 23b. If 23 is No: © Surface Surface Surety 106 ? IMI signature Agreement Attached enter entire Yes I X No 0 the lease? ( Yes Blanket Surface upon which See Attached 11.1No Production or 1___$25,000 mineral leasee description Bond 1.1 52,000 Surface Bond 55.000 Surface Bond 24. Using standard OIrOS, Sec, this proposed wellsite is located (attach separate sheeUrrap if you prefer): 25. Distance to Nearest Mineral Lease Line: 200 26. Total Acres in Lease: 146.10 [ nl lee* 27. Is H2S anticipated? 28. Will salt sedans 29. Will salt (>15,000 30. 11 questions 27 31. Mud disposal: Method: NOTE: The use of URILLIreu rr.nno If Yes, attach contin.:n nr..< r .. plan. No .- No No 1128, 29 or 30 are "Yes' a pit permit © Other: Evaporation and Backfilling may be required. In Yes © No be encountered cluing drilling? • ppm TDS C!) or 51) based muds be used or 28 are yes, is this location in a sensitive - Offsite © Onsite Land Farming 111. Land an earthen pit tar Recomplelion fluds requires 111. Yes © during drilling? area (Rule 9031? ME Yes 6 Yes C Disposal Facility 11 aidgas drilling, notify Spreading 1111111 a pit permit (Rule 905b.) local fix officials. String Size of Hole Size of Casing Weight Per Foot Setting Sacks Cement Cement. Cement Top Conductor 24' 18' 486 4 ' `yt\"l 25 45' +/ja, Peace Surface 1312' 9 518' 32.38 1 circulate Crm to Surface of \ , Surface Production 77/8' 412° 11.69 ll 88b0\11 Cne 200' above uppermos mesave de sand rf;7.2-4:W.`- rn: t Tool r; 32. BOP Equipment 33. Comments -... .. ..Stage Annular Preventor 320 acres 1.111 None wells at this time, total planned wells 29 Type: I© i© Double Ram In s2 Unit, currently 5 existing mi Rotating Head wells, permitting 16 Closed Loop Mud System 34. Initial Rule 306 Consultation took place on (date) has been waived or 11 good faith effort did not result PERMIT SUBMITTED TO COGCC PRIOR TO COMPLIANCE I hereby certify that a complete permit p ckage has to the best of my k wledge, c cl, and complete. Signed: , 10/16/2007 ,was waived. or is not required. 306 CONSULTATION Local Government Print Name: Howard Provide supposing documentation it consultation SHALL BE RETURNED UNAPPROVED. Designee(s). and all statements made it this form are, Harris In consultation. WITH RULE been sent to the applicable O: Email: How .Hrtilis mitlamscnm Title: Sr. Engineering Technician Date: - 1 •d d is hereb aFProvad Based en the information. prov COGCC Approved: here!n, t is pQpl for ermit-to-Onit pies with cveacc Rules and opp6cab a o. urs an y Vjl Director of COGCC Dae: a / r API NUMBER 05-045- ' 1161-020 Permit Number: �% �, g g 5 3 CONDITIO O APPI§VAL, I ANY: Expiration Date: , / 16 t `3 c0 o SEE ATTACHED PAGES: CONDITIONS OF APPROVAL AND NOTICE TO OPERATORS CONDITIONS OF APPROVAL WILLIAMS BATTLEMENT MESA PA 23-5 24 HOUR SPUD NOTICE REQUIRED. E-MAIL: david.andrews@state.co.us NEW GARFIELD COUNTY RULISON FIELD NOTICE TO OPERATORS. NOTE: ALL NOTICES SHALL BE GIVEN VIA E-MAIL. SEE ATTACHED NOTICE RESERVE PIT MUST BE LINED. CEMENT TOP VERIFICATION BY CBL REQUIRED OPERATOR MUST ENSURE 100 PERCENT SECONDARY CONTAINMENT FOR ANY VOLUME OF FLUIDS CONTAINED AT WELL SITE DURING DRILLING AND COMPLETION OPERATIONS. IF FLUIDS ARE CONVEYED VIA PIPELINE, OPERATOR MUST IMPLEMENT BEST MANAGEMENT PRACTICES TO CONTAIN ANY UNINTENTIONAL RELEASE OF FLUIDS.. FLOWBACK TO TANKS ONLY. SUBMIT A SECONDARY AND TERTIARY CONTAINMENT PLAN VIA SUNDRY NOTICE FORM 4 FOR THE TANKS. ATTN: CHRIS CANFIELD. OBTAIN APPROVAL OF THE PLAN PRIOR TO FLOWBACK. THE MOISTURE CONTENT OF ANY DRILL CUTTINGS IN A CUTTINGS PIT, TRENCH, OR PILE SHALL BE AS LOW AS PRACTICABLE TO PREVENT ACCUMULATION OF LIQUIDS GREATER THAN DE MINIMIS AMOUNTS. AT THE TIME OF CLOSURE, THE DRILL CUTTINGS MUST ALSO MEET THE APPLICABLE STANDARDS OF TABLE 910-1. THE PROPOSED SURFACE CASING IS MORE THAN 50' BELOW THE DEPTH OF TIIE DEEPEST WATER WELL WITHIN I MILE OF THE SURFACE LOCATION WHEN CORRECTED FOR ELEVATION DIFFERENCES. THE DEEPEST WATER WELL WITHIN 1 MILE IS 205 FEET DEEP. THE OPERATOR SHALL COMPLY WITH RULE 321. AND 1T SHALL BE THE OPERATOR'S RESPONSIBILITY TO ENSURE THAT THE WELLBORE COMPLIES WITH SETBACK REQUIREMENTS IN COMMISSION ORDERS OR RULES PRIOR TO PRODUCING THE WELL. • • • • • • NOTICE TO ALL OPERATORS DRILLING WILLIAMS FORK FORMATION WELLS IN GARFIELD COUNTY SURFACE CASING DEPTH AND MODIFICATION OF LEAKOFF TEST REQUIREMENTS JUNE 23, 2006 (Amends May 3, 2001 Notice) Based on the evaluation of the leakoff test data, drilling histories and reservoir parameters for Williams Fork Formation wells in Garfield County, the surface casing setting depth requirements specified in the September 22, 1998 policy statement amended May 3, 2001 will remain in effect. Surface casing leakoff tests will be performed at the discretion of the operator with the exception of additional leakoff test requirements that may apply in the Grand Valley Field as required by an earlier notice. The following conditions are to be attached to all Permits -to -Drill for Williams Fork Formation or deeper gas wells in Garfield County: The following shall be required in the Rulison Field Overpressured Area: 1. The Rulison Field Overpressured Area is defined as (see attached map): Township 6 South, Range 94 West, Sections 9, 15-23, 26-35 Township 7 South, Range 94 West, Sections 2-6; 8-10, 11, 15, 16 2. Surface casing must be set at a minimum depth of 1100 feet. The following shall be required in all fields in Garfield County: 1. Notify the COGCC Northwest Area Engineer 24 hours prior to commencing wellsite construction, setting of conductor pipe, well spudding, running all casing and any cementing operations so that COGCC staff may have the opportunity to witness, All notification shall be given via e-mail whenever possible. 2. Surface casing shall be set at a minimum depth of ten percent (10%) of the total depth of the well. 3. All lost circulation zones, gas kicks and water flows shall be reported to the COGCC Northwest Colorado Area Engineer as soon as feasible within twenty-four (24) hours of occurrence. 4. Significant lost circulation shall be defined as a thud loss in excess of 100 barrels and which requires shut down of operations for an hour or longer to pump lost circulation material and rebuild pit volume. The following data is required: depth, mud volume lost, whether or not a kick ensued, mud weights before and after lost circulation, and procedures used to regain circulation. 5. A significant kick shall be defined as one that is managed by shutting in the well to circulate out the kick or that is managed by going on choke and requiring an increase in mud weight exceeding 3/10ths of one pound per gallon to control. The following data is required: date and time of the kick, total depth of the well at the time of the kick, surface casing depth, size and cementing data, initial and final mud weights, shut in drill pipe pressure, shut in casing pressure, or any other pressure measurement or information used to determine the mud weight necessary to control the kick. 6. The depth, rate and mud weight on all water flows must be reported. 7. Upon completion of the primary cementing operation, the annular fluid level around the production casing shall be monitored for a minimum of 4 hours after cementing. Operators shall maintain the ability to monitor the annular fluid level and keep the hole full. The amount of mud that is used to keep the hole full shall be recorded, If mud volumes in excess of twenty (20) barrels are necessary to keep the hole full, the loss of fluid shall be reported to the COGCC immediately. For all notifications contact COGCC Northwest Area Colorado Area Engineer Jaime Adkins via e-mail at: jaime.adkins@state.co.us or in urgent cases at 970-285-9000(0), 970-250-2440(C). Thank you for cooperating with these requirements. Brian Macke, Director 1 6 5 4 3 2 1 12 7 8 r t 9 1 G 11 12 13 18 17 16 15 14 13 T6S°R94W 24 19 20 21 22 ' 23 24 I 25 30 29 28 27 26 25 _ 1 36 31 32 33 34 35 36 .:t is 1 6 5 4 3 2 ;, 1 • 12 7 8 9 ,10 11 12 T 7S R94W 13 18 17 16 15 14 ! 13 24 19 1 20 21 22 23 24 L I i COGCC Notice to Operators (June 23, 2006) Rulis©r Overpressured Area (1100 feet of Surface Casing Required) • • • FORM -s • 2 Ray 12,05 1. ❑X 04)), State of Colorado Oil and Gas Conservation Commission 1120 Lincetn Street, Suite 801,Denver, Colorado 80203 Phene: (300)894-2100 Fex(303)894'2109 APPLICATION FOR PERMIT TO: El Deepen, 0 Re-enter, o Recomplete and Operate OILS GAS X COALBED OTHER: SINGLE ZONE MULTIPLE ZONES n COMMINGLE ZONES Settling Sidetrack 2. TYPE OF WELL 7.1 DEC�1 0 2_0tF0�8_ Plugg Bep"Uacc D 3. Name of Operator. Williams Production RMT Company 4. COGCC Operator Number 96850 5. Address: 1515 Arapahoe Si, Tower 3, x1006 City: Denver 6. Contact Name: Howard Harris 7. Well Name: Battlement Mesa Complete the Attachment Checklist OP COGCC APD Orig 81 Copy X State: CO Zip: 80202 Phone: (303) 606.4086 Fax: (303) 629.8285 Wel Number: PA 323-5 8. Unit Name (if apply: 9. Proposed Total Measured Depth: 66 Form 2A X Well location plat X Tope map x Unit Number: Mineral lease map x Surface agrmt/Surety X WELL OCATION INFORMATION 10. OtrOtr. NWSE Sec: 5 Twp: 7S Rng: 95W Meridian: 6th P.M. Latitude: 39.454511, Footage Al Surface: 11. Field Name: Parachute 12. Ground Elevation: R'. 4s: 12613 Longitude: 108.020219 002'W. FEL Field Number: 12312 5104 13. County: Garfield 67350 30 Day notice letter X Deviated Drilling Plan Exception Location Request Exception Loc Waivers H2O Contingency Plan Federal Drilling Permit 14. GPS Data: Date 01Weas.;'Ement: 6/11/2008 PDOP Reading: <6.0 Instrument Operator's NAM: J. Kirkpatrick 15. If well is: OX Directional El Hor)zontal (highly deviated), FNUFSL Footage At Top of Prod Zone: 2140 submit deviated drilling plan. BCttomho'S Sec Twp Rng: NESW Sec 5-T7S-R95W HUM FM /FS,. 11817 1 FWL 12140 1 11817 FEUM! FV& 16. Is location in a high density area (Rule 603b)? E] Yes [ No 17. Distance to the nearest bu',iding, public road, above ground WIRY or railroad: Approx 252' OE (011114t. 127') 18. Distance to Nearest Properly Lire: Approx 301' SHL 19. Distance lc nearest well permitted/completed in the same formation: Approx 560' From BHL 20. Objective Formation(s) Formation Code ra�r.�a., v, ..v,,... .,..... ��_..._..... Spacing Order Number (s) 440-36 _...._ -.. Unit Acreage Assigned to Well 320 Unit Configuration (N2, SE/4, etc.) S2 (Fee Pooled) Williams Fork WMFK may be required. 1111 Yes 1 X during drilling? area (Rule 903)7 0 - L. Disposal II notify Spreading 11111 a pit permit (Rule 9055.) local lire officials. String Size of hole 1' Size of Casing Weiphl Per Foot 21. Mineral Owmers P: CFee 22. Surlace Ownership: X Fee 23. Is the Surface Owner al 0 the Mineral Owner? 23a.1123 is Yes. Is the Surface Owners) 23b. It 23 is No: Q Surface Owners 24. Using standard QtrQtr, Sec, Twp, Rng format CState State =Federal Federal Indian Lease 4 Indian Surface Surety 108 III signature on Agreement Attached enter entire Yes l X No the tease? 1 Yes MI Nc Bond MI $5,000 Surface Bond separate sheet/map if you prefer): or 1 $25,000 Blanket Surface Bond I. $2,000 Surface upon which this proposed wellsle is located (attach See Attached mineral lease description 25. Distance to Nearest Mineral Lease Line: Approx 471' 26. Total Acres in Lease: 146.10 Circulate Orate Surface Based on the Information provid COGCC Approved: 1 Hecriteir.41,j A li for Pfjnnil4o-Drill complies with COGCC Rules and applicable orders and is hereby approved. dye rj Director of COGCC Dale: a / I' / d�S //6 /aJFJ API NUMBER 05.04G-ljl$\_00 Permit Number. Mt, 4 AUL 5 1 Expiration Date: CONDITIO A L, ANY: SEE ATTACHED PAGES: CONDITIONS OF APPROVAL AND NOTICE TO OPERATORS 27. Is H2S anticipated? IN Yes © No 28. P411 sell sections be encountered dying drilling? 29. 0511 salt (>15.000 ppm TDS CI) or oil based muds be used 30. II questions 27 or 28 are yes, is this location in a sensitive 31. Mud disposal: Offsite © Onsite Method: Land Farming III Land NOTE. The use o an earthen pit for Recompietion tIuids requires If Yes. attach contingency plan. No Yes Yes Facility air/gas drilling, No No If 28, 29 or 30 are' Yes" a pit permit © Other. Evaporation and Backfilling may be required. 1111 Yes 1 X during drilling? area (Rule 903)7 0 - L. Disposal II notify Spreading 11111 a pit permit (Rule 9055.) local lire officials. String Size of hole 1' Size of Casing Weiphl Per Foot Setting pth/ Sacks Cement Cement fin, 9lfy V Cement Top Conductor 24' 18 484 4 /10 25 45' I[1 j Surface Surface 131/2' 95x8' 32.34 1 141» 1 Circulate Orate Surface 4 Surface Production 7 7/8' 41/2' 11.6# 8 .' 11 1 Celt Mahon uppermost rnesave sane � .:o.:'7'.-::-.:.'l)'!,. 'BOP .i i' -. 2 L Stage Tool 32. Equipment 33. Comments Annular Preventor 320 acres Rotating Head wells, permitting 16 isi None planned wells 29 Type: © © Double Ram © in s/2 Unit, currently 5 existing wells at this time, total Closed Loop Mud System 34. Ini8a1 Rule 306 Consultation took has been waived or If good faith PERMIT SUBMITTED TO COGCC I hereby certify that a complete M the best ofn7y knowledge. true Signed: fl place on (date) effort did not result PRIOR TO COMPLIANCE permit package has J rrect, a complete. �s -.� 10/1E42007 ,was waived, or Is not 306 CONSULTATION local Government Print Name: Date: (2/// required. Provide supporting documentation if consultation SHALL BE RETURNED UNAPPROVED. Designee(s), and all statements made in this form are, Howard Hants In consultation. WITH RULE been sent to the applicable r/ij Title: Sr. Engineering Technician - " Email: 4Iov,48rd harrse.11, my 5orn Based on the Information provid COGCC Approved: 1 Hecriteir.41,j A li for Pfjnnil4o-Drill complies with COGCC Rules and applicable orders and is hereby approved. dye rj Director of COGCC Dale: a / I' / d�S //6 /aJFJ API NUMBER 05.04G-ljl$\_00 Permit Number. Mt, 4 AUL 5 1 Expiration Date: CONDITIO A L, ANY: SEE ATTACHED PAGES: CONDITIONS OF APPROVAL AND NOTICE TO OPERATORS CONDITIONS OF APPROVAL WILLIAMS BATTLEMENT MESA PA 323-5 24 HOUR SPUD NOTICE REQUIRED. E-MAIL: david.andrews@a,state.co.us NEW GARFIELD COUNTY RULISON FIELD NOTICE TO OPERATORS. NOTE: ALL NOTICES SHALL BE GIVEN VIA E-MAIL. SEE ATTACHED NOTICE RESERVE PIT MUST BE LINED. CEMENT TOP VERIFICATION BY CBL REQUIRED OPERATOR MUST ENSURE 100 PERCENT SECONDARY CONTAINMENT FOR ANY VOLUME OF FLUIDS CONTAINED AT WELL SITE DURING DRILLING AND COMPLETION OPERATIONS. IF FLUIDS ARE CONVEYED VIA PIPELINE, OPERATOR MUST IMPLEMENT BEST MANAGEMENT PRACTICES TO CONTAIN ANY UNINTENTIONAL RELEASE OF FLUIDS.. FLOWBACK TO TANKS ONLY. SUBMIT A SECONDARY AND TERTIARY CONTAINMENT PLAN VIA SUNDRY NOTICE FORM 4 FOR THE TANKS. ATTN: CHRIS CANFIELD. OBTAIN APPROVAL OF THE PLAN PRIOR TO F LOWBACK. THE MOISTURE CONTENT OF ANY DRILL CUTTINGS IN A CUTTINGS PIT, TRENCH, OR PILE SHALL BE AS LOW AS PRACTICABLE TO PREVENT ACCUMULATION OF LIQUIDS GREATER THAN DE MINIMIS AMOUNTS. AT THE TIME OF CLOSURE, THE DRILL CUTTINGS MUST ALSO MEET THE APPLICABLE STANDARDS OF TABLE 910-1. THE PROPOSED SURFACE CASING IS MORE THAN 50' BELOW THE DEPTH OF THE DEEPEST WATER WELL WITHIN 1 MILE OF THE SURFACE LOCATION WHEN CORRECTED FOR ELEVATION DIFFERENCES. THE DEEPEST WATER WELL WITHIN 1 MILE IS 205 FEET DEEP. THE OPERATOR SHALL COMPLY WITH RULE 321. AND IT SHALL BE THE OPERATOR'S RESPONSIBILITY TO ENSURE THAT THE WELLBORE COMPLIES WITH SETBACK REQUIREMENTS IN COMMISSION ORDERS OR RULES PRIOR TO PRODUCING THE WELL. • • • • NOTICE TO ALL OPERATORS • DRILLING WILLIAMS FORK FORMATION WELLS IN GARFIELD COUNTY SURFACE CASING DEPTH AND MODIFICATION OF LEAKOFF TEST REQUIREMENTS JUNE 23, 2006 (Amends May 3, 2001 Notice) Based on the evaluation of the leakoff test data, drilling histories and reservoir parameters for Williams Fork Formation wells in Garfield County, the surface casing setting depth requirements specified in the September 22, 1998 policy statement amended May 3, 2001 will remain in effect. Surface casing leakoff tests will be performed at the discretion of the operator with the exception of additional leakoff test requirements that may apply in the Grand Valley Field as required by an earlier notice. The following conditions are to be attached to all Permits -to -Drill for Williams Fork Formation or deeper gas wells in Garfield County: • • The following shall be required in the Rulison Field Overpressured Area: I. The Rulison Field Overpressured Area is defined as (see attached map): Township 6 South, Range 94 West, Sections 9, 15-23, 26-35 Township 7 South, Range 94 West, Sections 2-6, 8-10, 11, 15, 16 2. Surface casing must be set at a minimum depth of 1100 feet. The following shall be required in all fields in Garfield County: 1. Notify the COGCC Northwest Area Engineer 24 hours prior to commencing wellsite construction, setting of conductor pipe, well spudding, running all casing and any cementing operations so that COGCC staff may have the opportunity to witness, All notification shall be given via e-mail whenever possible. 2. Surface casing shall be set at a minimum depth of ten percent (10%) of the total depth of the well. 3. All lost circulation zones, gas kicks and water flows shall be reported to the COGCC Northwest Colorado Area Engineer as soon as feasible within twenty-four (24) hours of occurrence. 4. Significant lost circulation shall be defined as a mud loss in excess of 100 barrels and which requires shut down of operations for an hour or longer to pump lost circulation material and rebuild pit volume. The following data is required: depth, mud volume lost, whether or not a kick ensued, mud weights before and after lost circulation, and procedures used to regain circulation. 5. A significant kick shall be defined as one that is managed by shutting in the well to circulate out the kick or that is managed by going on choke and requiring an increase in mud weight exceeding 3/10ths of one pound per gallon to control. The following data is required: date and time of the kick, total depth of the well at the time of the kick, surface casing depth, size and cementing data, initial and final mud weights, shut in drill pipe pressure, shut in casing pressure, or any other pressure measurement or information used to determine the mud weight necessary to control the kick. 6. The depth, rate and mud weight on all water flows must be reported. 7. Upon completion of the primary cementing operation, the annular fluid level around the production casing shall be monitored for a minimum of 4 hours after cementing. Operators shall maintain the ability to monitor the annular fluid level and keep the hole full. The amount of mud that is used to keep the hole Rill shall be recorded, If mud volumes in excess of twenty (20) barrels are necessary to keep the hole full, the loss of fluid shall be reported to the COGCC immediately. For all notifications contact COGCC Northwest Area Colorado Area Engineer Jaime Adkins via e-mail at: jaime.adkins@state.co.us or in urgent cases at 970-285-9000(0), 970-250-2440(C). Thank you for cooperating with these requirements. Brian Macke, Director 1 12 13 24 25 36 1 12 13 24 3 2 1 10 17 16 15 T63 R94W 11 12 14 13 7 18 24 25 36 1 12 14 ! 13 19 20 21 COGCC Notice to Operators (June 23. 2006) Rulisori Overpressured Area (1100 feet of Surface Casing Required) • • • 11867 f FORM 2 P Rolf 12/05 2 State of Colorado 011 and Gas Conservation:Commission 1120 Linda Steel, Sete 801, Denver, Co'.: radc 80203 ?hone 413)894.2100 Fax(303)894.2109 APPLICATION FOR PERMIT TO: 0 Drill, Deepen, El Re-enter, ED Recomplete and Operate TYPE OF WELL OILE1 GAS X COALBED OTHER: SINGLE ZONE MULTIPLE ZONES 1 . COMMINGLE ZONES Reuling Sidetrack QED IVSD DEC 10 2006 "Va./MX 3. Name of Oporalo Wr,.arns Production RMT Company . 4. COGCC Operator Number 90850 5. Address: 1515 Arapahoe SL, Tower 3, 01000 Complete ale Attachment Checklist OP COGCC APE Orig & 1 Copy x City: Denver State: CO : Zip: 80202 Phone: (303) 606-4066 Fax: (303) 829-8285 6. Contact Name: Howard Harris 7. Weil Name: Battlement Mesa 8. Unit Name (it app!): 9. Proposed Total Measured Depth: 7 15 Well Number: PA 313.5 Form 2A x Wel location plat X Topo map X Unit Number: Mineral Wase map x Surface egrmt/Surety x WELL LOCATION INFORMATION 10. OtrOtr: NWSE Sec: 5 Twp: 7S ring: 95W Meridian: 601 P.M. Longilude: 108.020244 FLU'S: Hatt Footage At Surface: 'FEL Latitude: 39.454492, 11806 11. Field Name: Parachute 12320 12. Ground Elevation: 5104 13. County: Garfield Field Number:. 67350 30 Day notice letter X Deviated Drilling Plan Exception Location Request Exception Loc Waivers H25 Contingency Fian Federal Drilling Permit 14. GPS Data: Dale of Measurement: 61112008 PDOP Reading: < 6.0 Instrument Operator's Name: J. Kirkpatrick 15. II well is: E3 Directional El Horizontal (h)ghly deviated), FILFSL Footage AI Top of Prod Zone: 1867 1FSL1 submit deviated drilling plan. FEL1W. 11217 1 1FWL Bottomhole Sec Twp Rng: NWSW Sec 5-T7S•R95W F15 FSL GEM 11217 16. Is location in a high density area (Rule 603b)? Yes L No 17. Distance to the nearest building, public road, above ground ut'1y cr railroad: Approx 252' OE (Dirk Ht.. 127') 18. Distance to Nearest; Property Line: Approx 301' 541 19. Distance to nearest well permittedreompleted in the samo formation: Approx 554' From BHL 20, et Objective Foal:ons) Formation Code , , r...,,.......-. -__..-_ Spacing Order Number (s) .... _......` .-__ Unit Acreage Assigned to Well Unit Configuration (N/2. SEJ4, etc.) Williams Fork. WMFK 440.36 Yes 52 (Fee Pooled ) Disposal Facility If aidgas drilling, notif Spreading mg a pit permit (Rule 905b.) cel lire officials. String Size of Hole Size of Casino Weight Per Foot Setting De ih Sacks Cement Cement Bo / Cement Top 'Surface Conductor 24' 16. Fee Fee Mineral Owner? Owners) Owners Twp, Rng format CSlate State Federal NI Federal Indian Lease 1` 21. Mineral Ownership: © 22. Surface Ownership: © 23. Is the Surface Owner also the 23a. 223is Yes: Is the Surface 235.1123 is No: Q Surface ^ Indian Surtace Surety 1D0 signature on Agreement Attached enter entire Yes X No the lease? 1 Yes MN No Bond MI 55,000 Surlace Bond 01 L_525,C00 mineral lease description Blanket Surface upon which See Attached Bond NI 52,000 S.dace 24. Using standard OtrOtr, Sec, this proposed wellsde is located (enach separate sheet/map if you prefer): 25. Distance to Nearest Mineral Lease Line: 744 26. Total Aces in Lease: 146.10 Based on the information prcv COGCC Approved: t'r'im,! pliyeggrl for nnil-to•Drill complies with COGCC Rules and applicable orders and is hereby approved. �l!!// Ak2\ Director of COGCC Date: . ( 1 ? / 3.eD Expiration Date: 3, i u'' a' API NUMBER 05- ot-v5• Ijt°a-o7c Permit Number: j0 o 8 8 4 CONDITIONSO/9 F APPROVAL, 8 FANY: SEE ATTACHED PAGES: CONDITIONS OF APPROVAL AND NOTICE 1'O OPERATORS 27. Is H2S anticipated? im Yes © No 28. Will salt sections be encountered duing driiiing? 29. Will salt (>15,000 ppm TDS CI) or of based muds be used 30. If questions 27 or 28 are yes, is this location in a sensitive 31. Mud disposal:Offsite © Onsite Method: E Land Fanning 11111 Land NOTE: The use o an earthen pit tor Recornptetion fluids requires 11 Yes, attach comm an plan. No No No H28, 29 or 30 are "Yes' a pit permit © Other: Evaporation and Bacalling may to required. //g NMI Yes X during drilling? area (Rule 903)? Yes - Yes i.._ Disposal Facility If aidgas drilling, notif Spreading mg a pit permit (Rule 905b.) cel lire officials. String Size of Hole Size of Casino Weight Per Foot Setting De ih Sacks Cement Cement Bo / Cement Top 'Surface Conductor 24' 16. 466 45' i r9 25 45' i 7G rr Sudace 1312' 95/8' 32.36 1 ' f Circulate crmwSurface 1 7 1 Surface Production 77/8" 412' 11.64 15 Cmt20e above uppern psi mesavelds sand .. _r_. •is .'tri-.... •,,...... : i7.T.--(4...1 Stage Too 32. BOP Equipment 33. Comments Type: © Annular Preventor © Double Ram 320 acres In s"2 Unit, currently 5 existing © Rotating Head Ell None wells at this time, total planned wells 29 wells, permitting 16 Closed Loop Mud System 34 Initial Rule 306 Consultation took place on (date) has been waived et it good faith ef'on did not result PERMIT SUBMITTED TO COGCC PRIOR TO COMPLIANCE 1 hereby certify that a complete permit packagehas to the best of my wiedge, trug�correct, nd complete. Signed: le/10'2307 ,was waived, or is not required. Provide supporting documentatan It consultation 306 CONSULTATION SHALL BE RETURNED UNAPPROVED. Local Government Designee(s), and ali statements made in this form are. Print Name: Howard Herds In consultation. WITH RULE been sent to the applicable S//] Title: Sr. Engineering Technician Date: 12_/f%p,,qEmail: tioward.HemisdWilii m"con Based on the information prcv COGCC Approved: t'r'im,! pliyeggrl for nnil-to•Drill complies with COGCC Rules and applicable orders and is hereby approved. �l!!// Ak2\ Director of COGCC Date: . ( 1 ? / 3.eD Expiration Date: 3, i u'' a' API NUMBER 05- ot-v5• Ijt°a-o7c Permit Number: j0 o 8 8 4 CONDITIONSO/9 F APPROVAL, 8 FANY: SEE ATTACHED PAGES: CONDITIONS OF APPROVAL AND NOTICE 1'O OPERATORS CONDITIONS OF APPROVAL WILLIAMS BATTLEMENT MESA PA 313-5 24 HOUR SPUD NOTICE REQUIRED. E-MAIL: david.andrews(astate.co.us NEW GARFIELD COUNTY RULISON FIELD NOTICE TO OPERATORS. NOTE: ALL NOTICES SHALL BE GIVEN VIA E-MAIL. SEE ATTACHED NOTICE RESERVE PIT MUST BE LINED. CEMENT TOP VERIFICATION BY CBL REQUIRED OPERATOR MUST ENSURE 100 PERCENT SECONDARY CONTAINMENT FOR ANY VOLUME OF FLUIDS CONTAINED AT WELL SITE DURING DRILLING AND COMPLETION OPERATIONS. IF FLUIDS ARE CONVEYED VIA PIPELINE, OPERATOR MUST IMPLEMENT BEST MANAGEMENT PRACTICES TO CONTAIN ANY UNINTENTIONAL RELEASE OF FLUIDS.. FLOWBACK TO TANKS ONLY. SUBMIT A SECONDARY AND TERTIARY CONTAINMENT PLAN VIA SUNDRY NOTICE FORM 4 FOR THE TANKS. ATTN: CHRIS CANFIELD. OBTAIN APPROVAL OF THE PLAN PRIOR TO FLOWBACK. THE MOISTURE CONTENT OF ANY DRILL CUTTINGS IN A CUTTINGS PIT, TRENCH, OR PILE SHALL BE AS LOW AS PRACTICABLE TO PREVENT ACCUMULATION OF LIQUIDS GREATER THAN DE MINIMIS AMOUNTS. AT THE TIME OF CLOSURE, THE DRILL CUTTINGS MUST ALSO MEET THE APPLICABLE STANDARDS OF TABLE 910-1. THE PROPOSED SURFACE CASING IS MORE THAN 50' BELOW THE DEPTH OF THE DEEPEST WATER WELL WITHIN 1 MILE OF THE SURFACE LOCATION WHEN CORREC FED FOR ELEVA"I'ION DIFFERENCES. THE DEEPEST WATER WELL WITHIN 1 MILE IS 205 FEET DEEP. THE OPERATOR SHALL COMPLY W1TI1 RULE 321. AND IT SHALL BE THE OPERATOR'S RESPONSIBILITY TO ENSURE THAT THE WELLBORE COMPLIES WITH SETBACK REQUIREMENTS IN COMMISSION ORDERS OR RULES PRIOR TO PRODUCING THE WELL. • • • • • • NOTICE TO ALL OPERATORS DRILLING WILLIAMS FORK FORMATION WELLS IN GARFIELD COUNTY SURFACE CASING DEPTH AND MODIFICATION OF LEAKOFF TEST REQUIREMENTS JUNE. 23, 2006 (Amends May 3, 2001 Notice) Based on the evaluation of the leakoff test data. drilling histories and reservoir parameters for Williams Fork Formation wells in Garfield County, the surface casing setting depth requirements specified in the September 22, 1998 policy statement amended May 3, 2001 will retrain in effect. Surface casing leakoff tests will be performed at the discretion of the operator with the exception of additional leakoff test requirements that may apply in the Grand Valley Field as required by an earlier notice. The following conditions are to be attached to all Permits -to -Drill for Williams Fork Formation or deeper gas wells in Garfield County: The following shall be required in the Rulison Field Overpressured Area: 1. The Rulison Field Overpressured Area is defined as (see attached map): Township 6 South, Range 94 West, Sections 9, 15-23, 26-35 Township 7 South, Range 94 West, Sections 2-6, 8-10, 11, 15, 16 2. Surface casing must be set at a minimum depth of 1 100 feet. The following shall be required in all fields in Garfield County: 1. Notify the COGCC Northwest Area Engineer 24 hours prior to commencing wellsite construction, setting of conductor pipe, well spudding, running all casing and any cementing operations so that COGCC staff may have the opportunity to witness, All notification shall be given via e-mail whenever possible. 2. Surface casing shall be set at a minimum depth of ten percent (10%) of the total depth of the well. 3. All lost circulation zones, gas kicks and water flows shall be reported to the COGCC Northwest Colorado Area Engineer as soon as feasible within twenty-four (24) hours of occurrence. 4. Significant lost circulation shall be defined as a mud loss in excess of 100 barrels and which requires shut down of operations for an hour or longer to pump lost circulation material and rebuild pit volume. The following data is required: depth, mud volume lost, whether or not a kick ensued, mud weights before and after lost circulation, and procedures used to regain circulation. 5. A significant kick shall be defined as one that is managed by shutting in the well to circulate out the kick or that is managed by going on choke and requiring an increase in mud weight exceeding 3/l0ths of one pound per gallon to control. The following data is required: date and time of the kick, total depth of the well at the time of the kick, surface casing depth, size and cementing data, initial and final mud weights, shut in drill pipe pressure, shut in casing pressure, or any other pressure measurement or information used to determine the mud weight necessary to control the kick. 6. The depth, rate and mud weight on all water flows must be reported. 7. Upon completion of the primary cementing operation, the annular fluid level around the production casing shall be monitored for a minimum of 4 hours after cementing. Operators shall maintain the ability to monitor the annular fluid level and keep the hole full. The amount of mud that is used to keep the hole full shall be recorded, If mud volumes in excess of twenty (20) barrels are necessary to keep the hole full, the loss of fluid shall be reported to the COGCC immediately. For all notifications contact COGCC Northwest Area Colorado Area Engineer Jaime Adkins via e-mail at: jaitne.adkins@state.co.us or in urgent cases at 970-285-9000(0), 970-250-2440(C). Thank you for cooperating with these requirements. Brian Macke, Director 1 12 13 24 25 36 6 5 4 3 2 1 7 8 a 9 fl 10 11 12 18 17 16 T6S 15 14 R94W 13 19 20 30 29 21 i 28 22 27 23 26 f 24 25 = 31 32 33 34 35 36 S 1 6 5 4 3 f 2 ' 1 12 13 24 7 8 9 T7SR941N .10 11 12 :. 18 1 17 16 f _ I 15 14 a 13 i 19 1 20 21 22 23 i24 COGCC Notice to Operators (June 23, 2006) Rulison Overpressured Area (1100 feet of Surface Casing Required) • • 1. Drill, State of Colorado 011 and Gas Conservation Commission 1120 L1- onSaes?, Suite 801. Deem, Colorado 80203 Phone 1.03)884.2100 Fer(3031894.2109 APPLICATION FOR PERMIT TO: ❑ Deepen, p Reenter, Q Recomplele and Operate 2. TYPEOFWELL OIL GAS X COALBED OTHER: SINGLE ZONE MULTIPLE ZONES COMMINGLE ZONES Reeling Sidetrack p_FtEliED DEC 1.0 2008 Pluggirlg'B C 3. Name of Operator% a ems Production RMT Company 4. COGCC Operator Number 96850 5. Address: 1515 Arapahoe St, Tower 3. #1000 City: Denver 6. Contact Name: Howard Harris Complete lire aa ACrtmei.l Checkksl OP coac c AFD Orig & 1 Copy X State: CO Zip: 80202 Phone: (303) 6664086 Fax: (303) 629-6265 7, Well Name: Battlement Mesa Weil Number: PA 413.5 Form 2A X Well location plat X Topo map x B. Unit Name (4 app!): Unit Number. 9. Proposed Total Measured Depth: 10. QaQtr: NW'SE Latitude: 39.4644772 90 Mineral lease map x Surface agnn0'Surey X WE L LOCATION INFORMATION Rng: 95W Meraan: 6th P.M. Sec: 5 Twp: 7S Footage Al Surface: 11800 11. Field Name: Parachute Longitude: 108.020226 ik UfNL 12315 [FEL 12. Ground Elevation: 5104 13. Count': Garfield Field Number: 67350 30 Day notice letter x Deviated Drilling Plan Exception Location Request Exception Loc Waivers H2S Contingency Plan Federal Drilling Permd 14. GPS Data: Date of Measurement 6/11/2008 POOP Reading: <6.0 Instrument Operators Name: J. Kirkpatrick 5. It well is: Q Directional D Horizonte! (highly deviated). submit deviated drilling plan. FEVFNL FNJFSE Footage At Top of Prod Zone: 11606 1 IFS:I 1605 1 Bottomhole Sec Twp Rng: FIM ELI (1606 NWSW Sec 5.776-R95W 605 FNL 16. Is location in a high density area (Rule 603b)? p Yes n No 17. Distance to the nearest building, public road, above ground utility or raliroad: Approx 252' OE (Drk HI. -127') 18. Distance to Nearest Properly Line: Approx 301' SHI. 19. Distance b nearest well permitted/completed in the same formation: Approx 312' From BHL 20. Objective Fcrmation(s) Formation Code LCMJC, JrieLans.a ',INV rvv.-.,•v Spacing Order Number (s) .r.. • Unit Acreage Assigned lo Well Unit Configuration (N/2. SFJ4, etc ) Weliams Fork WMFK 440.36 320 S/2 (Fee Pooled) Disposal Facility If air/gas drilling, notiy © Other: Evaporation and Backfilling Spreading NI ape permit (Rule 90ob.) boa! fire 00/00ls. String Size cf Hole Size of Casing Weigh Per Foot Setting Depth Sacks Cement Cement Bottom Cement Top Conductor 21. Mineral Ownership: X 22. Surface Ownership: X 23. Is the Surface Owner also the 23a II 23 is Yes: Is the Surface 235. !f 23 is No: © Surface 24. Lsing standard OtrOtr, Sec, FeoStale Fee EState Mineral Owner? III Owner(s) signature on Owners Agreement Attached Twp, Rng format enter entire NI Federal III Federal Indian Lease a Indian Surface Surety ID# Yes ( X No the lease? Yes 11.1 No Bond ❑$5,006 Surface Bond separate sheet/map If you prefer): or 1 525,000 Blanket Surface Bond III 62,000 Surface upon which this proposed wellsile is located (attach See Attached mineral lease description 25. Distance to Nearest Mineral Lease Line: 605 26. Total Acres in Lease: 146.10 nnenr roe[ 141,71=1:1.1-10.0i111 complies with COGCC Rules and applicable orders and is hereby approved. Number. O O Ft 81 4 2 Expiration Date: .2 I 1 e' 0.p10 Based on the infomstion provi�er�hareln, isig COGCC Approved: API NUMBER 05- O -n5' t`b t° - o Permit � Director of COGCC Date ? (. 2� CONDITION F APPROVAL, IF ANY: SEE ATTACHED PAGES: CONDITIONS OF APPROVAL AND NOTICE TO OPERATORS 27. Is H2S anticipated? IIII Yes © No 28. Will salt sections be encountered cluing drilling? 29. Will salt (>15,000 ppm TDS 0) or oil based muds be used 30. It 27 or 28 are yes, is this location In a sensitive It Yes, attach oontin ency plan. MI Yes X No No 1t 28, 29 or 30 are 'Yes" a pit permit may be required, IIII Yes ©No during drilling? area (Rule 903)? IIII Yes questions 31. Mud disposal MI Offsite © Ormite Method: IM Land Farming IIIII Land NOTE: The use of an ea'tnen pit for Reconpletion fluids requires Disposal Facility If air/gas drilling, notiy © Other: Evaporation and Backfilling Spreading NI ape permit (Rule 90ob.) boa! fire 00/00ls. String Size cf Hole Size of Casing Weigh Per Foot Setting Depth Sacks Cement Cement Bottom Cement Top Conductor 24' 18' 484 45' / 25 45' 14 \ Surface Surface 131 /2' 95/8' 32.35 464 014A Gimlets Cml to 5ullace .26W' Surface Production 77/8' 41/2' 11.61r7' 9 Cit 20C' aboveuppemros mesaverde sand 1 ,rel 1 `.:.r;_,x.et.,'qt.• .'Stage Tool I 32. BOP Equipment 33. Comments .e _ Annular Preventor ID Double Ram 320 acres in s/2 Unit. currently 5 existing IIII None wells al this time, total planned wells 29 Type` E. © Rotating Head wells, permitting 16 Closed Loop Mud System 34. Initial Rule 306 Consultation took place on (date) has been waived or H good faith effort did not result PERMIT SUBMITTED TO COGCC PRIOR TO COMPLIANCE I hereby certify that a complete permit package has to the best of my kn dge, true orrect,pnd complete. Signed: '-'.7 hi."-------- 10/1C'2007 .was waived, or is not required. Provide supporting documentation if consuitation 306 CONSULTATION SHALL BE RETURNED UNAPPROVED. Local Government Des!gnee(s), and ell ,statements made in this form are, - Print Name: Howard Harris In consultation. WITH RULE been sent to the applicable Tele: Sr. Engineering Technician Date: Email' l4owar3,HarriVOW i m .. •.. 141,71=1:1.1-10.0i111 complies with COGCC Rules and applicable orders and is hereby approved. Number. O O Ft 81 4 2 Expiration Date: .2 I 1 e' 0.p10 Based on the infomstion provi�er�hareln, isig COGCC Approved: API NUMBER 05- O -n5' t`b t° - o Permit � Director of COGCC Date ? (. 2� CONDITION F APPROVAL, IF ANY: SEE ATTACHED PAGES: CONDITIONS OF APPROVAL AND NOTICE TO OPERATORS CONDITIONS OF APPROVAL WILLIAMS BATTLEMENT MESA PA 413-5 24 HOUR SPUD NOTICE REQUIRED. E-MAIL: david.andrews@state.co.us NEW GARFIELD COUNTY RULISON FIELD NOTICE TO OPERATORS. NOTE: ALL NOTICES SHALL BE GIVEN VIA E-MAIL. SEE ATTACHED NOTICE RESERVE PIT MUST BE LINED. CEMENT TOP VERIFICATION BY CBL REQUIRED OPERATOR MUST ENSURE 100 PERCENT SECONDARY CONTAINMENT FOR ANY VOLUME OF FLUIDS CONTAINED AT WELL SITE DURING DRILLING AND COMPLETION OPERATIONS. IF FLUIDS ARE CONVEYED VIA PIPELINE, OPERATOR MUST IMPLEMENT BEST MANAGEMENT PRACTICES TO CONTAIN ANY UNINTENTIONAL RELEASE OF FLUIDS.. FLOWBACK TO TANKS ONLY. SUBMIT A SECONDARY AND TERTIARY CONTAINMENT PLAN VIA SUNDRY NOTICE FORM 4 FOR THE TANKS. ATTN: CHRIS CANFIELD. OBTAIN APPROVAL OF THE PLAN PRIOR TO FLOWBACK. THE MOISTURE CONTENT OF ANY DRILL CUTTINGS IN A CUTTINGS PIT, TRENCH, OR PILE SHALL BE AS LOW AS PRACTICABLE TO PREVENT ACCUMULATION OF LIQUIDS GREATER THAN DE MINIMIS AMOUNTS. AT THE TIME OF CLOSURE, THE DRILL CUTTINGS MUST ALSO MEET THE APPLICABLE STANDARDS OF TABLE 910-1. THE PROPOSED SURFACE CASING IS MORE THAN 50' BELOW THE DEPTH OF THE DEEPEST WATER WELL WITHIN 1MILE OF THE SURFACE LOCATION WHEN CORRECTED FOR ELEVATION DIFFERENCES. THE DEEPEST WATER WELL WITHIN I MILE IS 205 FEET DEEP. THE OPERATOR SHALL COMPLY WITH RULE 321. AND IT SHALL BE THE OPERATOR'S RESPONSIBILITY TO ENSURE THAT THE WELLBORE COMPLIES WITH SETBACK REQUIREMENTS IN COMMISSION ORDERS OR RULES PRIOR TO PRODUCING THE WELL. • • • • • NOTICE TO ALL OPERATORS DRILLING WILLIAMS FORK FORMATION WELLS IN GARFIELD COUNTY SURFACE CASING DEPTH AND MODIFICATION OF LEAKOFF TEST REQUIREMENTS JUNE 23, 2006 (Amends May 3, 2001 Notice) Based on the evaluation of the leakoff test data, drilling histories and reservoir parameters for Williams Fork Formation wells in Garfield County, the surface casing setting depth requirements specified in the September 22, 1998 policy statement amended May 3, 2001 will remain in effect. Surface casing leakoff tests will be performed at the discretion of the operator with the exception of additional leakoff test requirements that may apply in the Grand Valley Field as required by an earlier notice. The following conditions are to be attached to all Permits -to -Drill for Williams Fork Formation or deeper gas wells in Garfield County: The following shall be required in the Rulison Field Overpressured Area: I. The Rulison Field Overpressured Area is defined as (sec attached map): Township 6 South, Range 94 West, Sections 9, 15-23, 26-35 Township 7 South, Range 94 West, Sections 2-6, 8-10, 11, 15, 16 2. Surface casing must be set at a minimum depth of 1100 feet. The following shall be required in all fields in Garfield County: 1. Notify the COGCC Northwest Area Engineer 24 hours prior to commencing wellsite construction, setting of conductor pipe, well spudding, running all casing and any cernenting operations so that COGCC staff may have the opportunity to witness, All notification shall be given via e-mail whenever possible. 2. Surface casing shall be set at a minimum depth of ten percent (10%) of the total depth of the well. 3. All lost circulation zones, gas kicks and water flows shall be reported to the COGCC Northwest Colorado Area Engineer as soon as feasible within twenty-four (24) hours of occurrence. 4. Significant lost circulation shall be defined as a mud Toss in excess of 100 barrels and which requires shut down of operations for an hour or longer to pump lost circulation material and rebuild pit volume. The following data is required: depth, mud volume lost, whether or not a kick ensued, mud weights before and after lost circulation, and procedures used to regain circulation. 5. A significant kick shall be defined as one that is managed by shutting in the well to circulate out the kick or that is managed by going on choke and requiring an increase in mud weight exceeding 3/10ths of one pound per gallon to control. The following data is required: date and time of the kick, total depth of the well at the time of the kick, surface casing depth, size and cementing data, initial and final mud weights, shut in drill pipe pressure, shut in casing pressure, or any other pressure measurement or information used to determine the mud weight necessary to control the kick. 6. The depth, rate and mud weight on all water flows must be reported. 7. Upon completion of the primary cementing operation, the annular fluid level around the production casing shall be monitored for a minimum of 4 hours after cementing. Operators shall maintain the ability to monitor the annular fluid level and keep the hole full. The amount of mud that is used to keep the hole full shall be recorded, If mud volumes in excess of twenty (20) barrels are necessary to keep the hole full, the loss of fluid shall be reported to the COGCC immediately. For all notifications contact COGCC Northwest Area Colorado Area Engineer Jaime Adkins via e-mail at: jaitne.adkins@u,state.co.us or in urgent cases at 970-285-9000(0), 970-250-2440(C). Thank you for cooperating with these requirements. Brian Macke, Director 13 18 17 16 15 T6S R94W 24 19 ! 20 ' 21 25 30 29 28 2 1 11 12 14 13 24 25 1 12 20 i 21 22 COGCC Notice to Operators (June 23, 2006) Rulison Overpressured Area (1100 feet of Surface Casing Required) • • • yaw Zip: 80202 Phone: (303) 606-4086 Fax: (303) 629-8285 CORM 2 State of Colorado • Rev 12/e5 Oil and Gas Conservation Commission J 1120 Lincoln Steel, Sure 801, Denver, Colorado 80203 Phoria: (3031894.2100 Fax:(3331694-2109 APPLICATION FOR PERMIT TO: EX Drill, El Deepen, J Re-enter, n Recomplete and Operate 2. TYPE OF WELL OIL GAS X COALBED OTHER: SINGLE ZONE R MULTIPLE ZONESn COMMINGLE ZONESr Refling Sidetrack 3. Name or Operator Williams Production RMT Company & COGCC Operator Number 96850 5. Address: 1515 Arapahoe St., Tower 3, 41000 City: Denver State: CO 6. Contact Name: Howard Hants 7. Well Name: Battlement Mesa 8. Unit Name (if appe: 9. Proposed Total Measured Depth: 4835 b 10. 0(rCtr: NWSE Latitude: 39.4644960 Complete the Altaehment Cbeck st OP COGCC Well Number. PA 33.5 Unit Number: WELL LOCATION INFORMATION Sec: 5 Twp: 7S Rng: 95W Meridian: 6th P.M. Footage At Surface: 1807 11. Field Name: Parachute Lone_ tude: 108.020201 1441.4.51iFL'fMl. 2307 12. Ground Elevation: 5104 13. Cnunry. Garfield Field Number: 67350 AFD Orig & 1 Copy Form 2A X X Wall location plat Tope nap Mineral lease map X X X Surface agrmt'Surety X 30 Day notice letter X Deviated Drilling Plan X Exception Location Request Exception Loc Waivers H2S Contingency Plan Federal Drilling Permit 14. GPS Data: Date of Measurement: 6111/2008 POOP Reading: < 0 0 instrument Operators Name: J. Kirkpatrick 15. If well is: M Directional Ej Horizontal (highly deviated), submit deviated drilling plan. Bottomhole Sec Twp Rng: NWSE Sec 5-1-/S•R95W FN:/rel. FEVFYA FNIASt. fEIIFW. Footage At Top of Prod Zone; 12428 1 ® 12367 l 1FEL 1 12428 1 ® 12357 1 1FEL 16. Is location in a high density area (Rule 603b)? E3 Yes No 17. Distance to the nearest building, public road, above ground utility or railroad: Approx 252' Of (Ore Ht. > 12T) 18. Distance 10 Nearest Property Line: Approx 301' SOL 19. Distance to nearest well pen:Need/completed in the same formation: Approx 607' From BI -IL au. Ob(ec6ve Formation(s) Formation Code WMFK Spacing Order Number (s) 440-36 Unit Acreage Assigned to Well 320 Unit Configuration (512. SE14, etc.) S12 ciEeewliteeler6 Williams Fork DEC 1 "t IPS Pluggu}g., 0 2008 e D 30. If questiore 27 or 28 are yes, Is this location In a sensitive 31. Mud disposal: OHsIle © Onsite Method: NI Land Farming MIII Land NOTE: The use o an earthen pit for Recompletion fluids requires area (Rule 903)7 Yes C No If 28, 29 or 30 are "Yes' a pit permit © Other: Evaporation and Backfilling 3. Name or Operator Williams Production RMT Company & COGCC Operator Number 96850 5. Address: 1515 Arapahoe St., Tower 3, 41000 City: Denver State: CO 6. Contact Name: Howard Hants 7. Well Name: Battlement Mesa 8. Unit Name (if appe: 9. Proposed Total Measured Depth: 4835 b 10. 0(rCtr: NWSE Latitude: 39.4644960 Complete the Altaehment Cbeck st OP COGCC Well Number. PA 33.5 Unit Number: WELL LOCATION INFORMATION Sec: 5 Twp: 7S Rng: 95W Meridian: 6th P.M. Footage At Surface: 1807 11. Field Name: Parachute Lone_ tude: 108.020201 1441.4.51iFL'fMl. 2307 12. Ground Elevation: 5104 13. Cnunry. Garfield Field Number: 67350 AFD Orig & 1 Copy Form 2A X X Wall location plat Tope nap Mineral lease map X X X Surface agrmt'Surety X 30 Day notice letter X Deviated Drilling Plan X Exception Location Request Exception Loc Waivers H2S Contingency Plan Federal Drilling Permit 14. GPS Data: Date of Measurement: 6111/2008 POOP Reading: < 0 0 instrument Operators Name: J. Kirkpatrick 15. If well is: M Directional Ej Horizontal (highly deviated), submit deviated drilling plan. Bottomhole Sec Twp Rng: NWSE Sec 5-1-/S•R95W FN:/rel. FEVFYA FNIASt. fEIIFW. Footage At Top of Prod Zone; 12428 1 ® 12367 l 1FEL 1 12428 1 ® 12357 1 1FEL 16. Is location in a high density area (Rule 603b)? E3 Yes No 17. Distance to the nearest building, public road, above ground utility or railroad: Approx 252' Of (Ore Ht. > 12T) 18. Distance 10 Nearest Property Line: Approx 301' SOL 19. Distance to nearest well pen:Need/completed in the same formation: Approx 607' From BI -IL au. Ob(ec6ve Formation(s) Formation Code WMFK Spacing Order Number (s) 440-36 Unit Acreage Assigned to Well 320 Unit Configuration (512. SE14, etc.) S12 ciEeewliteeler6 Williams Fork 111111 Yes © during drilling? 11111111 Yes X 30. If questiore 27 or 28 are yes, Is this location In a sensitive 31. Mud disposal: OHsIle © Onsite Method: NI Land Farming MIII Land NOTE: The use o an earthen pit for Recompletion fluids requires area (Rule 903)7 Yes C No If 28, 29 or 30 are "Yes' a pit permit © Other: Evaporation and Backfilling may be required. Disposal Facility If arrigas drilling, notify Spreading IN a pit permit (Rule 905b.) local fire officials. String Size of Hole Size of Cas 21. Mineral0wnership: X 22. Surface Ownership: X 23. is the Surface Owner also the 23a. If 23 is Yes: Is the Surface 23b.1123 is No: © Surface 24. Using smndard OtrOtr, Sec, Fee Slate Fee ^ State go Federal IIIII Federal Indian Indian Lease 6 Surface Surety 124 Mineral Owner? M Owner(s) signature on Owners Agreement Attached Twp, Rng format enter entire Yes f X No the lease? 1 Yes MI No Bond • $5,000 Surface Bond separate sheet/map it you prefer): or , 925,000 Blanket Surface Bond • 52,000 Surface upon which this proposed wellsite is located (attach See Attached mineral lease descip'on 25. Dstsnce to Nearest Mineral Lease Line: Approz 176' BNL 26. Total Acres in Lease: 223.95 `654 I�Iri 4 Based on the information provri herein sgra iaRijpp for ennit-to-Drill complies with COGCC Rules and applicable order's and is hereby approved. COGCC Approved: �/( �T � Director of COGCC Dale: - / 1- / 20A°1 0088147 API NUMBER 05- 045- Iblciok onzn Permit Number: CONDITIONS OF APPROVAL, IF ANY: SEE ATTACHED PAGES: CONDITIONS OF APPROVAL AND NOTICE TO OPERATORS Expiration Date: 9- 1) b 27. Is H2S anticipated? • Yes in No 28. Will salt sections be encountered cluing drilling? 29. Will salt (>15,000 ppm TDS CI) or oil based muds be used II Yes, attach cone .ency plan. No No 111111 Yes © during drilling? 11111111 Yes X 30. If questiore 27 or 28 are yes, Is this location In a sensitive 31. Mud disposal: OHsIle © Onsite Method: NI Land Farming MIII Land NOTE: The use o an earthen pit for Recompletion fluids requires area (Rule 903)7 Yes C No If 28, 29 or 30 are "Yes' a pit permit © Other: Evaporation and Backfilling may be required. Disposal Facility If arrigas drilling, notify Spreading IN a pit permit (Rule 905b.) local fire officials. String Size of Hole Size of Cas Weight Per Foot Setting Depth Sacks Cement Cement Bottom Cement Top Conductor 24' 18' 486 45'` 25 45' Surface Surface 13112' 9 5/8' 32.36 `654 I�Iri 4 Circulate Cmc to Surface � 4-J /ry 4/ Surface Production 77(8' 4'./2' 11.64 -66G6-(- tY Cant 203 above uapamros messrerde sand `fi',-'s.,-. ;,,.t' : ,.H,.7:.3','??; =-7.:-:..-:7f.7... .. Stage Tool 32. BOP Equipment 33. Comments Type: © Annular Preventor © Double Ram 320 acres in 6/2 Unit, currently 5 existing © Rotating Head IIIIINone wells at this time, total planned wells 29 wells, permitting 16 Loop Mud System Closed 34 Initial Rule 306 Consultation took place on (date) has been waived or d good faith effort did not result PERMIT SUBMITTED TO COGCC PRIOR TO COMPLIANCE I hereby certify that a complete permit package has to the best of my owledge, t , comR,ct, and complete. Signed: 10116/2007 ,was waived, oris not required. 306 CONSULTATION Local Government Print Name: Howard Provide supponing documentation if consultation SHALL BE RETURNED UNAPPROVED, Designee(s), and au statements made in this form are. Harris in consultation. WITH RULE been sent to the applicable _ ,/'14 Title: Sr. Engi Bering Technician Date: 21 „ G- Ernaih t!y,1 arnsrdwiuiemcram Based on the information provri herein sgra iaRijpp for ennit-to-Drill complies with COGCC Rules and applicable order's and is hereby approved. COGCC Approved: �/( �T � Director of COGCC Dale: - / 1- / 20A°1 0088147 API NUMBER 05- 045- Iblciok onzn Permit Number: CONDITIONS OF APPROVAL, IF ANY: SEE ATTACHED PAGES: CONDITIONS OF APPROVAL AND NOTICE TO OPERATORS Expiration Date: 9- 1) b CONDITIONS OF APPROVAL WILLIAMS BATTLEMENT MESA PA 33-5 24 HOUR SPUD NOTICE REQUIRED. E-MAIL: david.andrews(state.co.us NEW GARFIELD COUNTY RULISON FIELD NOTICE TO OPERATORS. NOTE: ALL NOTICES SHALL BE GIVEN VIA E-MAIL. SEE ATTACHED NOTICE RESERVE PIT MUST BE LINED. CEMENT TOP VERIFICATION BY CBL REQUIRED OPERATOR MUST ENSURE 100 PERCENT SECONDARY CONTAINMENT FOR ANY VOLUME OF FLUIDS CONTAINED AT WELL SITE DURING DRILLING AND COMPLETION OPERATIONS. IF FLUIDS ARE CONVEYED VIA PIPELINE, OPERATOR MUST IMPLEMENT BEST MANAGEMENT PRACTICES TO CONTAIN ANY UNINTENTIONAL RELEASE OF FLUIDS.. FLOWBACK TO TANKS ONLY. SUBMIT A SECONDARY AND TERTIARY CONTAINMENT PLAN VIA SUNDRY NOTICE FORM 4 FOR THE TANKS. ATTN: CHRIS CANFIELD. OBTAIN APPROVAL OF THE PLAN PRIOR TO FLOWBACK. THE MOISTURE CONTENT OF ANY DRILL CUTTINGS IN A CUTTINGS PIT, TRENCH, OR PILE SHALL BE AS LOW AS PRACTICABLE TO PREVENT ACCUMULATION OF LIQUIDS GREATER THAN DE MINIMIS AMOUNTS. AT THE TIME OF CLOSURE, THE DRILL CUTTINGS MUST ALSO MEET THE APPLICABLE STANDARDS OF TABLE 910-1. THE PROPOSED SURFACE CASING IS MORE THAN 50' BELOW THE DEPTH OF THE DEEPEST WATER WELL WITHIN (MILE OF THE SURFACE LOCATION WIIEN CORRECTED FOR ELEVATION DIFFERENCES. THE DEEPEST WATER WELL WITHIN 1 MILE IS 205 FEET DEEP. THE OPERATOR SHALL COMPLY WITH RULE 321. AND IT SHALL BE THE OPERATOR'S RESPONSIBILITY TO ENSURE THAT THE WELLBORE COMPLIES WITH SETBACK REQUIREMENTS IN COMMISSION ORDERS OR RULES PRIOR TO PRODUCING THE WELL. • • • • • NOTICE TO ALL OPERATORS DRILLING WILLIAMS FORK FORMATION WELLS IN GARFIELD COUNTY SURFACE CASING DEPTH AND MODIFICATION OF LEAKOFF TEST REQUIREMENTS JUNE 23, 2006 (Amends May 3, 2001 Notice) Based on the evaluation of the leakoff test data, drilling histories and reservoir parameters for Williams Fork Formation wells in Garfield County, the surface casing setting depth requirements specified in the September 22, 1998 policy statement amended May 3, 2001 will remain in effect. Surface casing leakoff tests will be performed at the discretion of the operator with the exception of additional leakoff test requirements that may apply in the Grand Valley Field as required by an earlier notice. The following conditions are to be attached to all Permits -to -Drill for Williams Fork Formation or deeper gas wells in Garfield County: The following shall be required in the Rulison Field Overpressured Area: 1. The Rulison Field Overpressured Area is defined as (see attached map): Township 6 South, Range 94 West, Sections 9, 15-23, 26-35 Township 7 South, Range 94 West, Sections 2-6, 8-10, 11, 15, 16 2. Surface casing must be set at a minimum depth of 1100 feet. The following shall be required in all fields in Garfield County: 1. Notify the COGCC Northwest Area Engineer 24 hours prior to commencing wellsite construction, setting of conductor pipe, well spudding, running all casing and any cementing operations so that COGCC staff may have the opportunity to witness, All notification shall be given via e-mail whenever possible. 2. Surface casing shall be set at a minimum depth of ten percent (l0%) of the total depth of the well. 3. All lost circulation zones, gas kicks and water flows shall be reported to the COGCC Northwest Colorado Area Engineer as soon as feasible within twenty-four (24) hours of occurrence. 4. Significant lost circulation shall be defined as a mud loss in excess of 100 barrels and which requires shut down of operations for an hour or longer to pump lost circulation material and rebuild pit volume. The following data is required: depth, mud volume lost, whether or not a kick ensued, mud weights before and after lost circulation, and procedures used to regain circulation. 5. A significant kick shall be defined as one that is managed by shutting in the well to circulate out the kick or that is managed by going on choke and requiring an increase in mud weight exceeding 3/10ths of one pound per gallon to control. The following data is required: date and time of the kick, total depth of the well at the time of the kick, surface casing depth, size and cementing data, initial and final mud weights, shut in drill pipe pressure, shut in casing pressure, or any other pressure measurement or information used to determine the mud weight necessary to control the kick. 6. The depth, rate and mud weight on all water flows must be reported. 7. Upon completion of the primary cementing operation, the annular fluid level around the production casing shall be monitored for a minimum of 4 hours after cementing. Operators shall maintain the ability to monitor the annular fluid level and keep the hole full. The amount of mud that is used to keep the hole full shall be recorded, If mud volumes in excess of twenty (20) barrels are necessary to keep the hole full, the loss of fluid shall be reported to the COGCC imtnediately. For all notifications contact COGCC Northwest Area Colorado Area Engineer Jaime Adkins via e-mail at: iaime.adkinsQstate.co.us or in urgent cases at 970-285-9000(0), 970-250-2440(C). Thank you for cooperating with these requirements. Brian Macke, Director 3 13 18 17 16 15 T6S R94U1� 2 1 11 12 14 13 24 24 19 i 20 21 22 ; 23 25 36 1 12 14 1 13 24 19 20 21 22 23 i 24 COGCC Notice to Operators (June 23, 2006) Rulison Overpressured Area (1100 feet of Surface Casing Required) • • • 12169 1 FORM 2 Rev 12105 State of Colorado Oil and Gas Conservation Commission 1120 Lincoln Street Stile eel, Denier, Cciurado 80203 Phone: (303)804.2100 Fax:(333)894-2109 APPLICATION FOR PERMIT TO: 1. 0 Drill, J Deepen, Q Re-enter, ED Recompfete and Operate 2. TYPE OF WELL OIL GAS X COALBED OTHER: SINGLE ZONE❑ MULTIPLE ZONES n COMMINGLE ZONES ReEing Sidetr ack v, _ r 1,D : *w- ECFV/ UM Acreage Assigned to Well DEC 150 20081 Pwgg r��7J V c 3. Name of Operator Wliiams Production RMT Company 4. 00GCC Operator Number 96850 5. Address: 1515 Arapahoe St., Tower 3, 61000 Complete the Attacnment Check451 OP COGCC APD On & 1 Copy X City: Denver State: CO Zip: 80202 6. Contact Name: Howard Harris Phone: (373) 606-4086 Fax: (303) 6298265 7. Well Name: Battlement Mesa 8. Unit Name (if apply 9. Proposed Total Measured Depth: OtkcJd' Well Number: PA 333-5 Form 2A Well location plat 5 Unit Number. Topo map Mineral lease map X X Surface agrmliSurey X 10. OtrOtr: NWSE Sec 5 Latitude: 39.4644819 Footage Al Surface: 1802 11. Field Name: Parachute WELL LOCATION INFORMATION Twp: 7S Rng: 95W Lorodude: 108.020182 rls/rs: TOW. 12302 1 FEL 1 12. Ground Elevation: 5104 13. County: Garfield Meridian: 6th P.M. Field Number: 67350 30 Day notice letter X Deviated Drh'ing Plan Exception Location Request Exception Loc Waivers H2S Contingency Plan Federal Drlling Permit 4. GFS Data: Date of Measurement: 6/112006 PDC° Reading: <6.0 Instrument Operator's Warne: J. Kirkpatrick 15. If well is: ® Directional 0 Horizontal (highly deviated), Iwret Footage At Top of Prod Zone: 12169 submit deviated dri8ing plan. Bottomhole Sec Twp Rng: NWSE Sec 5-T7S-R95W 11831 FEIN% 1RJF1: 11E31 rEurW. FEL 16. Is location in a high density area (Rule 6035)? [] Yes No 17. Distance to the nearest building, public road, above ground utility or railroad: Approx 252 OE (Duk HL =127') 18. Distance t0 Nearest Property Line: Appro. 331' SHL 19. Distance to nearest well permitted/completed in the same formation: Approx 607' From BHL LEASE SPACING AND POOLING INFORMATION c0. Objective Formadon(s) Formation Code Spacing Order Number (s) UM Acreage Assigned to Well Unit Configuration (N/2, SE/4, etc.) W !iams Fork WMFK 44036 320 S2 (Fee Pooled) Disposal Facility If arc/gas drilling, roti Spreading = a p:: permit (Rule 9055.) local fee officials. String Size of Hole Size of Casing Weight Per Fool Setting Depth 45' Sacks Cement 25 Cement Bottom 45' u'I(budace (1 Cement Tap Conductor 24' 18' 21. Mineral Ownership: X 22. Surface Ownership: X 23. Is the Surface Owner also the 23a. It 23 is Yes: Is the Surface 23b.II 23 is No: Q Surface 24. Using standard OtrDtr, Sec, Fee NM State Fee NMI State Federal Federal -Indian Lease : Indian Surface Surety De Mineral Owne ? L Owners) signature on Owners Agreement Attached Twp- Rng format enter entire Yes 1 X No the lease? 1 Yes II. No Bond • S5,000 Surface Bond separate sheet/map if you prefer): or I $25,000 Blanket Sulam Bond 1111 52,500 Surface nation upon which this proposed website is located (attach See Attached mineral (ease des 25. Distance to Nearest Mineral Lease Line: Approx 359' BHL 26. Total Acres in Lease: 223.95 Based on the information 1 J� Jgerein, t A li n for P,r,rma-to-Drill complies with COGCC Rules and applicable orders and is hereby approved. COGCC Approved: provL." C� � ���%1 Director of COGCC Dec / 13 / a0. Permit Number: % 0088149 Expiration Date: a / 11 / 2r 'a CONDIT' S OF APPROVAL, IF ANY: API NUMBER 05-O'i5- )x)16 O. SEE ATTACHED PAGES: CONDITIONS OF APPROVAL AND NOTICE TO OPERATORS 27. Is H2S anicipated? El Yes © No 28. Wil; salt sections be encountered cluing drilling? 29. Will salt (A5,000 ppm TDS CI) or oil based muds be used 30. It questions 27 or 28 are yes, Is this location in a sensitive 31. Mud disposal: - Onsite © Onsite Method: - Land Farming II Land NOTE: The use of an earthen p8 for Recompletion fluids requires If Yes, attach cont: ency plan. No No No 1128, 29 or 30 are 'Yes" a pit permit © Other: Evaporation end Beckt./ing may be required. 111111 Yes ® during drilling? area (Rule 903)? - Yes C gm Yes C Disposal Facility If arc/gas drilling, roti Spreading = a p:: permit (Rule 9055.) local fee officials. String Size of Hole Size of Casing Weight Per Fool Setting Depth 45' Sacks Cement 25 Cement Bottom 45' u'I(budace (1 Cement Tap Conductor 24' 18' 486 Surface 1312' 95/8' 412' 32,36 11.60 -646°,1 -850T"�6 Circulate aNtoSurface Cmt200' above uppermost rfi4E1' mesavelde send Surface Production 77/8' iti 32. BOP Equipment 39. Comments Type: © Annular Preventor 320 acres © Double Ram in s/2 Un t, currently 5 existing © Rotating Head II. None wells at this time, total planned wets 29 webs, permitting 16 Loop Mud System Closed 34. initial Rule 300 Consultation took place on (date) has been waived or if good faith effort did not result PERMIT SUBMITTED TO COGCC PRIOR TO COMPLIANCE I hereby certify that a complete permit package has to the best of m owled rue, core . and complete. Signed: J/i �-.. 1 CO S/2oo7 ,was waived, or is not required. Provide supporting documentation if consultation 306 CONSULTATION SHALL BE RETURNED UNAPPROVED. Local Government Designee(s), and all statements made in this form are, Print Name: Howard Harris in ccosstation, WITH RULE been sent to the applicable Title: Sr. Engineering Technician Date: /.21// di---- • Email: jioward.Harris3Wilrams.com Based on the information 1 J� Jgerein, t A li n for P,r,rma-to-Drill complies with COGCC Rules and applicable orders and is hereby approved. COGCC Approved: provL." C� � ���%1 Director of COGCC Dec / 13 / a0. Permit Number: % 0088149 Expiration Date: a / 11 / 2r 'a CONDIT' S OF APPROVAL, IF ANY: API NUMBER 05-O'i5- )x)16 O. SEE ATTACHED PAGES: CONDITIONS OF APPROVAL AND NOTICE TO OPERATORS CONDITIONS OF APPROVAL WILLIAMS BATTLEMENT MESA PA 333-5 24 HOUR SPUD NOTICE REQUIRED. E-MAIL: david.andrews@state.co.us NEW GARFIELD COUNTY RULISON FIELD NOTICE TO OPERATORS. NOTE: ALL NOTICES SHALL BE GIVEN VIA E-MAIL. SEE ATTACHED NOTICE RESERVE PIT MUST BE LINED. CEMENT TOP VERIFICATION BY CBL REQUIRED OPERATOR MUST ENSURE 100 PERCENT SECONDARY CONTAINMENT FOR ANY VOLUME OF FLUIDS CONTAINED AT WELL SITE DURING DRILLING AND COMPLETION OPERATIONS. IF FLUIDS ARE CONVEYED VIA PIPELINE, OPERATOR MUST IMPLEMENT BEST MANAGEMENT PRACTICES TO CONTAIN ANY UNINTENTIONAL RELEASE OF FLUIDS.. FLOWBACK TO TANKS ONLY. SUBMIT A SECONDARY AND TERTIARY CONTAINMENT PLAN VIA SUNDRY NOTICE FORM 4 FOR THE TANKS. ATTN: CHRIS CANFIELD. OBTAIN APPROVAL OF THE PLAN PRIOR TO FLOWBACK. THE MOISTURE CONTENT OF ANY DRILL CUTTINGS IN A CUTTINGS PIT, TRENCH, OR PILE SHALL BE AS LOW AS PRACTICABLE TO PREVENT ACCUMULATION OF LIQUIDS GREATER THAN DE MINIMIS AMOUNTS. AT THE TIME OF CLOSURE, THE DRILL CUTTINGS MUST ALSO MEET THE APPLICABLE STANDARDS OF TABLE 910-1. THE PROPOSED SURFACE CASING IS MORE THAN 50' BELOW THE DEPTH OF THE DEEPEST WATER WELL WITHIN 1 MILE OF THE SURFACE LOCATION WHEN CORRECTED FOR ELEVATION DIFFERENCES. THE DEEPEST WATER WELL WITHIN 1 MILE IS 205 FEET DEEP. THE OPERATOR SHALL COMPLY WITH RULE 321. AND IT SHALL BE THE OPERATOR'S RESPONSIBILITY TO ENSURE THAT THE WELLBORE COMPLIES WITH SETBACK REQUIREMENTS IN COMMISSION ORDERS OR RULES PRIOR TO PRODUCING THE WELL. • • • f • • • NOTICE TO ALL OPERATORS DRILLING WILLIAMS FORK FORMATION WELLS IN GARFIELD COUNTY SURFACE CASING DEPTH AND MODIFICATION OF LEAKOFF TEST REQUIREMENTS JUNE 23, 2006 (Amends May 3, 2001 Notice) Based on the evaluation of the leakoff test data, drilling histories and reservoir parameters for Williams Fork Formation wells in Garfield County, the surface casing setting depth requirements specified in the September 22, 1998 policy statement amended May 3, 2001 will remain in effect. Surface casing leakoff tests will be performed at the discretion of the operator with the exception of additional leakoff test requirements that may apply in the Grand Valley Field as required by an earlier notice. The following conditions are to be attached to all Permits -to -Drill for Williams Fork Formation or deeper gas wells in Garfield County: The following shall be required in the Rulison Field Overpressured Area: 1. The Rulison Field Overpressured Area is defined as (see attached map): Township 6 South, Range 94 West, Sections 9, 15-23, 26-35 Township 7 South, Range 94 West, Sections 2-6, 8-10, 11, 15, 16 2. Surface casing must be set at a minimum depth of 1100 feet. The following shall be required in all fields in Garfield County: 1. Notify the COGCC Northwest Area Engineer 24 hours prior to commencing wellsite construction, setting of conductor pipe, well spudding, running all casing and any cementing operations so that COGCC staff may have the opportunity to witness, All notification shall be given via e-mail whenever possible. 2. Surface casing shall be set at a minimum depth of ten percent (10%) of the total depth of the well. 3. All lost circulation zones, gas kicks and water flows shall be reported to the COGCC Northwest Colorado Area Engineer as soon as feasible within twenty-four (24) hours of occurrence. 4. Significant lost circulation shall be defined as a mud loss in excess of 100 barrels and which requires shut down of operations for an hour or longer to pump lost circulation material and rebuild pit volume. The following data is required: depth, mud volume lost, whether or not a kick ensued, tnud weights before and after lost circulation, and procedures used to regain circulation. 5. A significant kick shall be defined as one that is managed by shutting in the well to circulate out the kick or that is managed by going on choke and requiring an increase in mud weight exceeding 3/10ths of one pound per gallon to control. The following data is required: date and time of the kick, total depth of the well at the time of the kick, surface casing depth, size and cementing data, initial and final mud weights, shut in drill pipe pressure, shut in casing pressure, or any other pressure measurement or information used to determine the mud weight necessary to control the kick. 6. The depth, rate and mud weight on all water flows must be reported. 7. Upon completion of the primary cementing operation, the annular fluid level around the production casing shall be monitored for a minimum of 4 hours after cementing. Operators shall maintain the ability to monitor the annular fluid level and keep the hole full. The amount of mud that is used to keep the hole full shall be recorded, If mud volumes in excess of twenty (20) barrels are necessary to keep the hole full, the loss of fluid shall be reported to the COGCC immediately. For all notifications contact COGCC Northwest Area Colorado Area Engineer Jaime Adkins via e-mail at: laime.adkins/Astate.co.us or in urgent cases at 970-285-9000(0), 970-250-2440(C). Thank you for cooperating with these requirements. Brian Macke, Director 1 12 7 5 4 3 „.....„,...„. ,..,.._H 8 13 18 17 --4 9 16 T6S 24 19 20 21 25 36 30 i 29 31 32 10 1. R94W 22 2 1 11 12 14 13 23 28 27 26 33 34 35 1 12 13 24 6 5 4 8 18 19 17 20 3 9 10 L7S, R94W 16 15 2 11 21 22 24 25 36 1 12 14 ! 13 23 24 COGCC Notice to Operators (June 23, 2006) Rulison Overpressured Area (1100 feet of Surface Casing Required) • • FORM 2 Rev 12100 1. El Drill, State of Colorado Oil and Gas Conservation Commission 1170 Llmdn Street, Suite 801, Denver, Cdorado 80243 Pho-e: (303)894.7100 Fax.(303)894-2104 APPLICATION FOR PERMIT TO: Deepen, ID Re-enter, 1E1 Recomplete and Operate 2. TYPE OF WELL OIL GAS X COALBED OTHER: SINGLE ZONE MULTIPLE ZONES COMMINGLE ZONES Refiling Ir-I�I Sidetrack 3. Nome of oeerator Williams Production RMT Company CCGCC Operator Number: 96550 5. Address: 15115 Arapahoe St., Tower 3, 01050 City: Denver 6. Contact Name: Howard Harris DEC 10 2008 �,• G Compote the Atts:hment Checklist 00 COGCC APD Ong b 1 Copy X State: CO Zip: 60202 Phone: (303) 606.4066 Fax: (303) 629-8265 7. Well Name: Battlement Mesa 8. Unit Name (0 appy: 9. Proposed Total Measured Depth: 7 Well Number: PA 14.5 Unit Number: Form 2A X Well location plat X Topo mao X Mineral lease map Surface agrmt'Surety WELL LOCATION INFORMATION Rng: 95W Meridian: 6th P.M. L ongi;ude: 108.020208 FLUFW. FEL Field Number. 10, OUOtr: NWSE Sec: 5 Twp: 7S Latitude: 39.464462` FWrSt Footage At Surface: 11. Field Name: Parachute 1795 12310 12. Ground Elevation: 5104 13. County: Garfield 67350 30 Day notice halter Deviated Drilling Plan Exception Location Request Exception Loc Waivers H2S Contingency Plan Federal Drilling Permit 14. GPS Data: Date of Measurement: 6/11/2008PDGF Reading g 6.0 Instrument Operator's Name; J. KirkpaMck 15. If well is: ❑X Directional c3 Horizontal (highly deviatec), rtJUFei Footage At Top of Prod Zone: 11301 1 FSL submit deviated drilling plan. FEIAW 1662 Boaomhole Sec Two F1ne: 11301 J IFSL SWSW Sec 5.775-R95W 1662 ELTv& IFWL 16. Is location in a high density area (Rule 603b)? El Yes 1-'1 No 17. Distance to the nearest building, public road, above ground utility or ra'iroad: Approx 252' CE (Drk Ht. r. 12T) 18. Distance to Nearest Property Line: Approx 301' SHL 19. Distance to nearest well permitted/completed in lie same formation; Approx 302' From BHL 20. Objective Formation(s) Formation Code l t.cno�, �rn�Fm.................... Spacing Order Number (s) .... _........._ Unit Acreage Assigned to Well Unit Configuration (Nll2, SE/4, etc.) W Cams Fork WMFK 440.36 320 8/2 (Fee Pooled) during drilling? area (Rule 903)7 Yes 0 - Yes C _ Disposal Facility It aidgas drilling. notify Spreading Ell an earthen p8 for Recornpletion a pit permit (Rule 905b.) local fire officials. String Size of Hole Size of Casing Weicht Per Foot Setting Depth , CN Sacks Cement 21. Mineral Ownership: 0 22. Surface Ownership: CX 23. Is the Surface Owner also the 23a. If 23 is Yes: Is the Surtace 23b.1i 23 is No: © Surface 24. Using standard OtrOtr, Sec, Fes LI Stale Fee I♦ State IIIII Federal I♦ Federal ndien Indien Lease it Surtace Surety 100 Mineral Owner? MI Owner(s) signature on Owners Agreement Atl Twp, Rng format enter entire Yes I X No We lease? I Yes No Bond 1155,000 Surface Bora separate sheettmap 0 you prefer): ched or 1 625,000 Blanket Surface Bond 52,000 Surtace upon which this proposed wellsite is located (attach See Attached mineral lease des,.ription 25. Distance to Nearest Mineral Lease Line: Approx 662 BHL 26. Total Acres in Lease: 146.10 Surface Based on the information proviereln, 1 sptie9►i7 for :mlbto-DV complies with COGCC Rules and applicable orders and is hereby approved. COGCC Approved: IJ 0d5 grector of COGCC Dale: el /11 Permit Number: 2 0 Expiration Date: / 1 b /X1'0 CONDITIONS OF APPROVAL, IF ANY: API NUMBER 05- 0` - I1,t0,3' 00 SEE ATTACHED PAGES: CONDITIONS OF APPROVAL. AND NOTICE TO OPERATORS 27. Is H2S anticipated? 28. Will salt sections 29. Will salt (>15,000 30. if questions 27 31. bud disposal: Method: NOTE: The use 0 Yes be encountered cluing per TDS CI) or oil or 28 are yes, is this Offsite IN Land Farming © No drilling? based muds be used location in a sensitive © Onsde IN Land fluids requires 11 Yes, attach conhngon„ plan. No No No 1f 28, 29 or 30 are "Yes" a ph permit © Other: Evaporation and Backtiliing may be required. LL Yes during drilling? area (Rule 903)7 Yes 0 - Yes C _ Disposal Facility It aidgas drilling. notify Spreading Ell an earthen p8 for Recornpletion a pit permit (Rule 905b.) local fire officials. String Size of Hole Size of Casing Weicht Per Foot Setting Depth , CN Sacks Cement Cement Bott C Cement Top Conductor 24' 18' 4604 ' 25 45' ) Surface Surtace 131/2' 95/8' 32.30 1 9 1/" CkculateCrmtoSurface 109 Surface Production 7 7/8' 4 1/2' 11.60 7/89 Cmt 200' anon unoC rn mesaverde send `qQ bU f 11. _. `."�:. 7 .,1:4-:.:1•:•',.C., ;.*'•S State Too: - 1_.1N'''' 4 ..'�. yr 32. BOP Equipment 33. Comments Annular Preventor 320 acre I. None planned wells 29 Type: © © Double Ram © Rotating Head In s2 Unit, currently 5 existing wells, permitting 16 wells at this time, total Closed Loop Mud System 34. Initial Rule 306 Consultation took place 0n (date) has been waived cr 0 good faith effort did not result PERMIT SUBMITTED TO COGCC PRIOR TO COMPLIANCE I hereby certify that a comptete permit package has to the best of my owledge, 1 r c and complete. Signed: 10/1672007 ,was waived, or is not required. 306 CONSULTATION Local Government Print Name: Howard Provide supporting documentation if consultation SHALL BE RETURNED UNAPPROVED. Dosgnee(s), and all statements made in this form are, Harris in consultation. WITH RULE been sent to the applicable rse• 0, Fnninhorinn Tnchnir.:nn Date: /1-4/="$ Erna,: yward Herri;33tWilltams.4Ont Based on the information proviereln, 1 sptie9►i7 for :mlbto-DV complies with COGCC Rules and applicable orders and is hereby approved. COGCC Approved: IJ 0d5 grector of COGCC Dale: el /11 Permit Number: 2 0 Expiration Date: / 1 b /X1'0 CONDITIONS OF APPROVAL, IF ANY: API NUMBER 05- 0` - I1,t0,3' 00 SEE ATTACHED PAGES: CONDITIONS OF APPROVAL. AND NOTICE TO OPERATORS CONDITIONS OF APPROVAL WILLIAMS BATTLEMENT MESA PA 14-5 24 HOUR SPUD NOTICE REQUIRED. E-MAIL: david.andrews@state.co.us NEW GARFIELD COUNTY RULISON FIELD NOTICE TO OPERATORS. NOTE: ALL NOTICES SHALL BE GIVEN VIA E-MAIL. SEE ATTACHED NOTICE RESERVE PIT MUST BE LINED. CEMENT TOP VERIFICATION BY CBL REQUIRED OPERATOR MUST ENSURE 100 PERCENT SECONDARY CONTAINMENT FOR ANY VOLUME OF FLUIDS CONTAINED AT WELL SITE DURING DRILLING AND COMPLETION OPERATIONS. IF FLUIDS ARE CONVEYED VIA PIPELINE, OPERATOR MUST IMPLEMENT BEST MANAGEMENT PRACTICES TO CONTAIN ANY UNINTENTIONAL RELEASE OF FLUIDS.. FLOWBACK TO TANKS ONLY. SUBMIT A SECONDARY AND TERTIARY CONTAINMENT PLAN VIA SUNDRY NOTICE FORM 4 FOR THE TANKS. ATTN: CHRIS CANFIELD. OBTAIN APPROVAL OF THE PLAN PRIOR TO FLOWBACK. THE MOISTURE CONTENT OF ANY DRILL CUTTINGS IN A CUTTINGS PIT, TRENCH, OR PILE SHALL BE AS LOW AS PRACTICABLE TO PREVENT ACCUMULATION OF LIQUIDS GREATER THAN DE MINIMS AMOUNTS. AT THE TIME OF CLOSURE, THE DRILL CUTTINGS MUST ALSO MEET THE APPLICABLE STANDARDS OF TABLE 910-1. THE PROPOSED SURFACE CASING IS MORE THAN 50' BELOW THE DEPTH OF THE DEEPEST WATER WELL WITHIN 1MILE OF THE SURFACE LOCATION WHEN CORRECTED FOR ELEVATION DIFFERENCES. THE DEEPEST WATER WELL WITHIN 1 MILE IS 205 FEET DEEP. THE OPERATOR SHALL COMPLY WITH RULE 321. AND 1T SHALL BE THE OPERATOR'S RESPONSIBILITY TO ENSURE THAT THE WELLBORE COMPLIES WITH SETBACK REQUIREMENTS IN COMMISSION ORDERS OR RULES PRIOR TO PRODUCING THE WELL. • • • • • • NOTICE TO ALL OPERATORS DRILLING WILLIAMS FORK FORMATION WELLS IN GARFIELD COUNTY SURFACE CASING DEPTH AND MODIFICATION OF LEAKOFF TEST REQUIREMENTS JUNE 23, 2006 (Amends May 3, 2001 Notice) Based on the evaluation of the leakoff test data, drilling histories and reservoir parameters for Williams Fork Formation wells in Garfield County, the surface casing setting depth requirements specified in the September 22, 1998 policy statement amended May 3, 2001 will remain in effect. Surface casing leakoff tests will be performed at the discretion of the operator with the exception of additional leakoff test requirements that may apply in the Grand Valley Field as required by an earlier notice. The following conditions are to be attached to all Pennits-to-Drill for Williams Fork Formation or deeper gas wells in Garfield County: The following shall be required in the Rulison Field Overpressured Area: 1. The Rulison Field Overpressured Area is defined as (see attached map): Township 6 South, Range 94 West, Sections 9, 15-23, 26-35 Township 7 South, Range 94 West, Sections 2-6, 8-10, 11, 15, 16 2. Surface casing must be set at a minimum depth of 1100 feet. The following shall be required in all fields in Garfield County: 1. Notify the COGCC Northwest Area Engineer 24 hours prior to commencing wellsite construction, setting of conductor pipe, well spudding, running all casing and any cementing operations so that COGCC staff may have the opportunity to witness, All notification shall be given via e-mail whenever possible. 2. Surface casing shall be set at a minimum depth of ten percent (10%) of the total depth of the well. 3. All lost circulation zones, gas kicks and water flows shall be reported to the COGCC Northwest Colorado Area Engineer as soon as feasible within twenty-four (24) hours of occurrence. 4. Significant lost circulation shall be defined as a mud loss in excess of 100 barrels and which requires shut down of operations for an hour or longer to pump lost circulation material and rebuild pit volume. The following data is required: depth, mud volume lost, whether or not a kick ensued, mud weights before and after lost circulation, and procedures used to regain circulation. 5. A significant kick shall be defined as one that is managed by shutting in the well to circulate out the kick or that is managed by going on choke and requiring an increase in mud weight exceeding 3/l0ths of one pound per gallon to control. The following data is required: date and time of the kick, total depth of the well at the time of the kick, surface casing depth, size and cementing data, initial and final mud weights, shut in drill pipe pressure, shut in casing pressure, or any other pressure measurement or information used to determine the mud weight necessary to control the kick. 6. The depth, rate and mud weight on all water flows must be reported. 7. Upon completion of the primary cementing operation, the annular fluid level around the production casing shall be monitored for a minimum of 4 hours after cementing. Operators shall maintain the ability to monitor the annular fluid level and keep the hole full. The amount of mud that is used to keep the hole full shall be recorded, If mud volumes in excess of twenty (20) barrels are necessary to keep the hole full, the loss of fluid shall be reported to the COGCC immediately. For all notifications contact COGCC Northwest Area Colorado Area Engineer Jaime Adkins via e-mail at: jaime.adkinsAstate.co.us or in urgent cases at 970-285-9000(0), 970-250-2440(C). Thank you for cooperating with these requirements. Brian Macke, Director 1 12 6 7 5 8 4 3 2 9 10 11 L- 1 12 i 13 18 17 16 15 14 13 TCS R94W 24 19 20 21 22 I 23 j 24 25 30 29 1 28 27 26 25 1 36 31 32 33 34 35 .. ;1- 36 1 1 6 5 4 3 2 1 12 7 8 9 10 11 12 T 75 R941N 13 18 1 17 16 15 14 ! 13 24 19 1 20 1 21 22 23 i 24 COGCC Notice to Operators (June 23, 2006) Rulison Overpressured Area (1100 feet of Surface Casing Required) • • FORM 2 Rav 12100 State of Colorado Oil and Gas Conservation Commission 1122 Linc0in Street, Suite 901, Denver, Cdaedo 60203 Phu, 13g3i594-2103 Fax:13D31694-2109 APPLICATION FOR PERMIT TO: 1. Q Dr `I, El Deepen, ED Re-enter, D Hecomplete and Operate 2. TYPE OF WELL OILD GASX SINGLE ZON COALBEDD OTHER: MULTIPLE ZONES COMMINGLE ZONESf' Ref!ing Sidetrack DEC 10 21309 000# 3. Name of Operator Williams Production PMT Company 4. COGCC Operator Number 96850 5. Address: 1515 Arapahoe St, Tower 3.41000 City: Denver State: CO Z.p: 80202 6. Contact Name: Howard Hams Phone: (303) 6064086 Fax: (303) 629.6285 Well Number: PA 314-5 7. Wet Name: Battlement Mesa 8. Unit Name (it appl): 9. Proposed Total Measured Depth: 6468 Unit Number: 10. 09.Otr: NWSE Latitude: 39.464447r Sec: 5 Footage At Surface: 11. Field Name: Parachute 12. Ground Elevation: 1790 WELL LOCATION INFORMATION Twp: 7S Rng: 95W Meridian: 6th P.M. Longitude: 108.020190 Wight LEVAN. 2305 IFEL 5104 13. County: Garfield Field Number 67350 CompIote the Attachment Checkis1 OP 0000 APD Ong 81 Copy X Form 26 X Wet location Topa map X 8 Mineral lease map X Surface agrmVSurety X 30 Day notice letter X Deviated Drilling Plan Exception Location Request Exception Loc Waivers H2S Contingency Plan Federal Drilling Penh 14. GPS Data: Date of Measurement 6111/2005 PDOP Reading: . 6.0 Instrument Operator's Name: J. Kirkpatrick 15. 11 well is: X Directional D Horizontal (highly deviated), FNJFeI Footage At Top of Prod Zone: 11000 FSL submit deviated drilling plan. Batton -hole Sec Twp Rng: SWSW Sec 5-T7S-R95W Fiche F24 100100 FWL horao 11111 1624 revrw, IFWL 16. Is location in a high density area (Rule 603b)? El Yes I No 17. Distance to the nearest building, public road, above ground utility or rat road: Approx 252' OE (Drk Ht. r 127') 18. Distance to Nearest Properly Line: Aporoz 301' SHL 19. Distance to nearest well perp itted'completed In the same format on: Apprcx 296' From BHL 20. Objective Formations) Formation Code Lcnac, or nvrn.a r.r.........,.....,.... Spacing Order Number (s) ..... ..._.. Unit Acreage Assigned to Well Unit Con (gura5or. (N/2, SE/4. etc.) Williams Fork WMFK 440-36 320 S/2 (Fee Pooled) area (Rule 903)? 1.1 Yes No II 28, 29 or 30 are 'Yes" a pit permit © Other: Evaporation and Backfilling may be required. Disposal Facility If aidgas drilling, nobly Spreading 11.11 a pit permit (Rule 905b.) local fire officials. String Size of Hole Sae of Casing Weight Per Foot Setting Depth Sacks Cement Cement Bottom 1/ 21. Mineral Ownership: *Fee 22. Surface Ownership: CX 23. Is the Surface Owner also the 23a. If 23 is Yes: Is the Surface 23b. If 23 is No: © Surface 24. Using standard 01101r, Sec, II. State III Federal Fee • Stale IIII Federal Indian Lease 4 Indian Surface Surety IN Mineral Owner? MO Owner(s) signature on Owners Agreement Attached Twp, Rng format enter entire Yes 1 X No the lease? 1 Yes lin No Bond III 52,600 Sudace this proposed weisite is located (attach 1 7 ( or ( $25,000 Blanket Surface upon which See Attached Bond • 55,000 Surface Bond separate sheet/map if you prefer): mineral lease description 25. Distance to Nearest Mineral Lease Line: Approx 624 BHL 26, Total Acres in Lease: 146.10 11.66 Based on the information prov,d ;31;; c1 Appl' pt`or P mrt-to-Drill complies with COGCC Rues and appiicab!e orders and is hereby approved. COGCC Approved: CXT �/l �x� Director of COGCC Date: a / 0? / aaoC Expiration Date: API NUMBER 05- a'.ts - o0 Permit Number: 00$8152 CONDITIOg OF APPROVAL, IF ANY: SEE ATTACHED PAGES: CONDITIONS OF APPROVAL AND NOTICE: TO OPERATORS 27. Is H2S anticipated? 28. Will salt sections 29. Will salt (>15,000 IIIII Yes it No If Yes, attach continge pian. No be encountered duing drilling? ppm TOS CI) or oil based muds be used II. Yes ©Nc during drilling? - Yes X 30. II questions 27 or 26 are yes, is this location in a serutitive 31. Mud disposal: Offsite Q Onsite Method: Ell Land Farming • Land NOTE: The use of an earth n pit for Recompletion fluids requires area (Rule 903)? 1.1 Yes No II 28, 29 or 30 are 'Yes" a pit permit © Other: Evaporation and Backfilling may be required. Disposal Facility If aidgas drilling, nobly Spreading 11.11 a pit permit (Rule 905b.) local fire officials. String Size of Hole Sae of Casing Weight Per Foot Setting Depth Sacks Cement Cement Bottom 1/ Cement Top udace Conductor 24' 18' 464 45' 1 25 Surface 131/2' 95/6' 32.36 1 7 ( CtraieteCn6toSurface :If/a Sudace Production 7 7/8' 41/2' 11.66 N, 6^8AlI COM' above uppermost mesa sand -, ... ..a, 1`.,:.' r'..,,; Stage TOO! -::ii,.t'y=,,:.. 32. BOP Equipment 33. Comments _ Annular Preventor 320 saes IN None webs at this time, total planned wells 29 Type: © Q Double Ram in sr2 Unit, currently 5 existing © Rotating Head wells, permitting 16 Closed Loop Mud System 34 Initial Rule 306 Consultation took place on (date) has been waived or if good faith effort did not result PERMIT SUBMITTED TO COGCC PRIOR TO COMPLIANCE I hereby certify that a complete permit package has the dost of my kn ledge, true corrett, and complete. Signed: /!`/Ir' 10.1512397 ,was waived, or is not required. Provide supporting documentation it consultation 308 CONSULTATION SHALL BE RETURNED UNAPPROVED. Local Government Designee(s), and all statements made In this fon are, Print Name: Howard Harris in constitaticn. WITH RULE been sent to the applicable 1(i-0+---f--�S/) Title: Sr. Engineering Technician Date: / y.,_/0-6°mall' Howard Harr 0' wnliams nom Based on the information prov,d ;31;; c1 Appl' pt`or P mrt-to-Drill complies with COGCC Rues and appiicab!e orders and is hereby approved. COGCC Approved: CXT �/l �x� Director of COGCC Date: a / 0? / aaoC Expiration Date: API NUMBER 05- a'.ts - o0 Permit Number: 00$8152 CONDITIOg OF APPROVAL, IF ANY: SEE ATTACHED PAGES: CONDITIONS OF APPROVAL AND NOTICE: TO OPERATORS CONDITIONS OF APPROVAL WILLIAMS BATTLEMENT MESA PA 314-5 24 HOUR SPUD NOTICE REQUIRED. E-MAIL: david.andrews@state.co.us NEW GARFIELD COUNTY RULISON FIELD NOTICE TO OPERATORS. NOTE: ALL NOTICES SHALL BE GIVEN VIA E-MAIL. SEE ATTACHED NOTICE RESERVE PIT MUST BE LINED. CEMENT TOP VERIFICATION BY CBL REQUIRED OPERATOR MUST ENSURE 100 PERCENT SECONDARY CONTAINMENT FOR ANY VOLUME OF FLUIDS CONTAINED AT WELL SITE DURING DRILLING AND COMPLETION OPERATIONS, IF FLUIDS ARE CONVEYED VIA PIPELINE, OPERATOR MUST IMPLEMENT BEST MANAGEMENT PRACTICES TO CONTAIN ANY UNINTENTIONAL RELEASE OF FLUIDS.. FLOWBACK TO TANKS ONLY. SUBMIT A SECONDARY AND TERTIARY CONTAINMENT PLAN VIA SUNDRY NOTICE FORM 4 FOR THE TANKS. ATTN: CHRIS CANFIELD. OBTAIN APPROVAL OF THE PLAN PRIOR TO FLOWBACK. THE MOISTURE CONTENT OF ANY DRILL CUTTINGS IN A CUTTINGS PIT, TRENCH, OR PILE SHALL BE AS LOW AS PRACTICABLE TO PREVENT ACCUMULATION OF LIQUIDS GREATER THAN DE MINIMIS AMOUNTS. AT THE TIME OF CLOSURE, THE DRILL CUTTINGS MUST ALSO MEET THE APPLICABLE STANDARDS OF TABLE 910-1. THE PROPOSED SURFACE CASING IS MORE THAN 50' BELOW THE DEPTH OF THE DEEPEST WATER WELL WITHIN IM1LE OF THE SURFACE LOCATION WHEN CORRECTED FOR ELEVATION DIFFERENCES. THE DEEPEST WATER WELL WITHIN 1 MILE IS 205 FEET DEEP. THE OPERATOR SHALL COMPLY WITH RULE 321. AND IT SHALL BE THE OPERATOR'S RESPONSIBILITY TO ENSURE THAT THE WELLBORE COMPLIES WITH SETBACK REQUIREMENTS IN COMMISSION ORDERS OR RULES PRIOR TO PRODUCING THE WELL. • • • NOTICE TO ALL OPERATORS DRILLING WILLIAMS FORK FORMATION WELLS IN GARFIELD COUNTY SURFACE CASING DEPTH AND MODIFICATION OF LEAKOFF TEST REQUIREMENTS JUNE 23, 2006 (Amends May 3, 2001 Notice) Based on the evaluation of the leakoff test data, drilling histories and reservoir parameters for Williams Fork Formation wells in Garfield County, the surface casing setting depth requirements specified in the September 22, 1998 policy statement amended May 3, 2001 will remain in effect. Surface casing leakoff tests will be performed at the discretion of the operator with the exception of additional leakoff test requirements that may apply in the Grand Valley Field as required by an earlier notice. The following conditions are to be attached to all Permits -to -Drill for Williams Fork Formation or deeper gas wells in Garfield County: The following shall be required in the Rulison Field Overpressured Area: 1. The Rulison Field Overpressured Area is defined as (see attached map): Township 6 South, Range 94 West, Sections 9, 15-23, 26-35 Township 7 South, Range 94 West, Sections 2-6, 8-10, 11, 15, 16 2. Surface casing must be set at a minimum depth of 1100 feet. The following shall be required in all fields in Garfield County: 1. Notify the COGCC Northwest Area Engineer 24 hours prior to commencing welisite constriction, setting of conductor pipe, well spudding, running all casing and any cementing operations so that COGCC staff may have the opportunity to witness, All notification shall be given via e-mail whenever possible. 2. Surface casing shall be set at a minimum depth of ten percent (10%) of the total depth of the well. 3. All lost circulation zones, gas kicks and water flows shall be reported to the COGCC Northwest Colorado Area Engineer as soon as feasible within twenty-four (24) hours of occurrence. 4. Significant lost circulation shall be defined as a mud loss in excess of 100 barrels and which requires shut down of operations for an hour or longerto pump lost circulation material and rebuild pit volutne. The following data is required: depth, mud volume lost, whether or not a kick ensued, mud weights before and after lost circulation, and procedures used to regain circulation. 5. A significant kick shall be defined as one that is managed by shutting in the well to circulate out the kick or that is managed by going on choke and requiring an increase in mud weight exceeding 3/10ths of one pound per gallon to control. The following data is required: date and time of the kick, total depth of the well at the time of the kick, surface casing depth, size and cementing data, initial and final mud weights, shut in drill pipe pressure, shut in casing pressure, or any other pressure measurement or information used to determine the mud weight necessary to control the kick. 6. The depth, rate and mud weight on all water flows must be reported. 7. Upon completion of the primary cementing operation, the annular fluid level around the production casing shall be monitored for a minimum of 4 hours after cementing. Operators shall maintain the ability to monitor the annular fluid level and keep the hole full. The amount of mud that is used to keep the hole full shall be recorded, If mud volumes in excess of twenty (20) barrels are necessary to keep the hole full, the loss of fluid shall be reported to the COGCC immediately. For all notifications contact COGCC Northwest Area Colorado Area Engineer Jaime Adkins via e-mail at: jaime.adkins(alstate.co.us or in urgent cases at 970-285-9000(0), 970-250-2440(C). Thank you for cooperating with these requirements. Brian Macke, Director 4 9 16 T6S 3 2 1 11 12 14 13 24 25 36 9 10 T 7S, R94.W 22 23 24 COGGC Notice to Operators (June 23, 2006) Ruiison Overpressured Area (1100 feet of Surface Casing Required) • • • zu Obieciwe Formation(s) State of Colorado Oil and Gas Conservation 1120 Lincoln Stroet, Suite 801, Denver, Cuarado 80203 Phone: APPLICATION FOR PERMIT , • 1111:i -, I - ,>m C i;« Commission p' > (333)894-2100 Fati:i303)894.2109 iit',F ":". ,; TO: Pozogr DEC 10 2008 ---PI _'' 440-38 i. © Drill, M Deepen, 1111 Reenter, Reoomplete and Operate II • _ Disposal Facility If air/gas drilling, roti 2. TYPE OF WELLRefiling Sidetrack OIL II SINGLE ZONE GAS X COALBED OTHER: MULTIPLE ZONES(-] COMMINGLE ZONES Size of Casing Complete the Attachment Checki.st Setting Depth 3. Name of 5. Address: Operator. Williams Production RMT Company 4. COGCC Operator Number. 96850 OP COGCC 1515 Arapahoe St., Tower 3,41000 APD Ong & 1 Copy X Indian Lease 4 City: Denver State: CO Zip: 50202 (303) 629-8285 Form 2_3 X the lease? 6. Contact 7. Well Name: 8. Unit Name 9. Proposed Name: Howard Harris Phone: (303) 606.4086 Fax: Well location plat X 25. Distance to Nearest Mineral Lease Line: 231 26. Total Acres Battlement Mesa Well Number PA 524.5 Topo map X Cat 200'atxweuppem,os mesaverde sand (1 apply: Unit Number: Mineral lease map X Total Measured Depth: 6919 Surface agrmt/Surely X . 5:1:1Y.i.•:q;>?i WELL LOCATION INFORMATION 10. OtrOtr: NWSE Sec: 5 Twp: 7S Rng: 95W' Meridian: 6th P.M. '‘...r.::-...4,.: .W.t''.`_,.: 30 Day notice letter X Deviated Drilling Flan X 32. BOP Equipment 33. Comments Latitude: Footage 11. Field Name: 12. Ground 39.464388° Longitude: 106.020116 67350 Exception Loatlon Request Closed Loop Mud System 34 Initial Rule 306 Consultation look place on (dale) has been waived or if good faith effort do not result PERMIT SUBMITTED TO COGCC PRIOR TO COMPLIANCE I hereby certify that a complete permit package has to the best of my kit ledge, trlr-egnect, a complete. Signed: (7) rant. FEL/M. At Surface: 1769 FSL 2264 'FEL 1 Exception Loc Waiters in consultation. WITH RULE been sent to the applicable Title: Sr. Eng'neering Technician Date:Email: Parachute Field Number. H2S Contingency Plan Elevation: 5104 13. County: Garfield Federal Drilling Permit 14. GPS Data: Date of Measurement: 6/112008 PDOP Reading: < 6.0 Instrument Operator's Name: J. Kirkpatrick 15. If well is: Footage At Top 16. Is location 17. Distance 18. Distance submit deviated drilling plan. Bodorn ols SecTwp FEUFIw Rng: FM/rSi. I ® SESW Sec 5-17S-R95W © Directional • Horizontal (highly deviated), F00001, 1 From FLAW, al Prod Zone: 1231 I ® 11942 1 ® 1231 11942 1PWL- in a high density area (Rub 6036)? MI Yes to the nearest building, public road, above ground utility to Nearest Property Line: Approx 301' SHL BHL © No or railroad: Approx 252' OE (Drk HL =127') 19. Distance to nearest well permitted/completed Ln the same formation: Approx 605' zu Obieciwe Formation(s) Formation Code Spaci j Order Number (s) Unit Acresge Assigned to Well Unit Configuration (N/2, SE/4, etc.) W., .ams Fork WMFK 440-38 320 S2 (Fee Pooled) Yes 0 Yes C _ Disposal Facility If air/gas drilling, roti Spreading I. a pit permit (Rule 9056.) fluids requkes local fire officials. String Sae of Hole Size of Casing Weight Pet Foot Setting Depth Sacks Cement Cement Bottom. Cement Top Conductor 21. Mineral Ownership: X 22. Surface Ownership: CX 23. Is the Surface Owner also the 23a. If 23 is Yes: Is the Surface 236.8 23 is No: © Surface 24. Using standard OtrOtr, Sec, Fes State Fee IN State Federal I. Federal Indian Lease 4 _ Indian Surface Surety Oa Mineral Owner? Owner(s) signature on Owners Agreement Attached Twp, Rng formal enter entire Yes X No the lease? I Yes 1111 No Bond 1111 55,000 Surface Bond separate sheet/map it you prefer): or 1 925,000 Blanket Surface Bond 111 $2,000 Surface upon which this proposed wellsite Is located (attach See Attached mineral lease description 25. Distance to Nearest Mineral Lease Line: 231 26. Total Acres In Lease: 146.10 412' Based on the information provide rein, the pptication for Permit-te-Drill complies with COGCC Rules end applicable orders and is hereby approved. � + Director of COGCC Dale: , / ,'3 /��+ Permit Number: R R / II Expiration Date: ., / r. /d0' o CONDITIO A R I A COGCC Approved: API NUMBER 05- CI -t 6 - t 4. r - [TO SEE ATTACHED PAGES: CONDI'T'IONS OF APPROVAL AND NOTICE TO OPERATORS 27. Is H2S anticipated? Ill Yes 26. Will salt sections be encountered doing 29. Will salt (>15,000 ppm TDS CI) or 30. If questions 27 or 8 are yes, is this 31. Mud disposal E Offsite Method: Land Farming NOTE: The use of an earthen pit for Recompletion © No drilling? oil based muds be used location in a sensitive © Onsite 11.1 Land If Yes, attach contin. enty plan. No No No If 28, 29 or 30 are "Yes° a pit permit © Other. Evaporation. and Backfilling may be required. Yes �X during drilling?_ area (Rule 903)? Yes 0 Yes C _ Disposal Facility If air/gas drilling, roti Spreading I. a pit permit (Rule 9056.) fluids requkes local fire officials. String Sae of Hole Size of Casing Weight Pet Foot Setting Depth Sacks Cement Cement Bottom. Cement Top Conductor 24' 18' 484 45' 25 45' �y¢Sudace JJ- Surface 131/2' 9 5/8' 32.34 414i/ ij3 A Circulate Cm; in Surface Surface Production 77/8' 412' 11.6e 6919 Cat 200'atxweuppem,os mesaverde sand . 5:1:1Y.i.•:q;>?i ' ILI.:C.cb.:'.0.. '.l '‘...r.::-...4,.: .W.t''.`_,.: Stage Tool 32. BOP Equipment 33. Comments Type: © Annular Preventor © Double Ram 320 acres in s/2 Urlt, currently 5 existing © Rotating Head um None wells at this time, total planned wells 29 wells, permitting 16 Closed Loop Mud System 34 Initial Rule 306 Consultation look place on (dale) has been waived or if good faith effort do not result PERMIT SUBMITTED TO COGCC PRIOR TO COMPLIANCE I hereby certify that a complete permit package has to the best of my kit ledge, trlr-egnect, a complete. Signed: (7) lel 10!r6!2007 ,was waived, or is not required. 308 CONSULTATION Local Government Print Name: Howard Provide support ng documentation if consultation SHALL BE RETURNED UNAPPROVED. Designee(s), and al stetements made in this form are. Harris in consultation. WITH RULE been sent to the applicable Title: Sr. Eng'neering Technician Date:Email: Hyward.H8 s'vxWllfiems toll Based on the information provide rein, the pptication for Permit-te-Drill complies with COGCC Rules end applicable orders and is hereby approved. � + Director of COGCC Dale: , / ,'3 /��+ Permit Number: R R / II Expiration Date: ., / r. /d0' o CONDITIO A R I A COGCC Approved: API NUMBER 05- CI -t 6 - t 4. r - [TO SEE ATTACHED PAGES: CONDI'T'IONS OF APPROVAL AND NOTICE TO OPERATORS CONDITIONS OF APPROVAL WILLIAMS BATTLEMENT MESA PA 524-5 24 HOUR SPUD NOTICE REQUIRED. E-MAIL: david.andrews(a,state.co.us NEW GARFIELD COUNTY RULISON FIELD NOTICE TO OPERATORS. NOTE: ALL NOTICES SHALL BE GIVEN VIA E-MAIL. SEE ATTACHED NOTICE RESERVE PIT MUST BE LINED. CEMENT TOP VERIFICATION BY CBL REQUIRED OPERATOR MUST ENSURE 100 PERCENT SECONDARY CONTAINMENT FOR ANY VOLUME OF FLUIDS CONTAINED AT WELL SITE DURING DRILLING AND COMPLETION OPERATIONS. IF FLUIDS ARE CONVEYED VIA PIPELINE, OPERATOR MUST IMPLEMENT BEST MANAGEMENT PRACTICES TO CONTAIN ANY UNINTENTIONAL RELEASE OF FLUIDS.. FLOWBACK TO TANKS ONLY. SUBMIT A SECONDARY AND TERTIARY CONTAINMENT PLAN VIA SUNDRY NOTICE FORM 4 FOR THE TANKS. ATTN: CHRIS CANFIELD. OBTAIN APPROVAL OF THE PLAN PRIOR TO FLOWBACK. THE MOISTURE CONTENT OF ANY DRILL CUTTINGS IN A CUTTINGS PIT, TRENCH, OR PILE SHALL BE AS LOW AS PRACTICABLE TO PREVENT ACCUMULATION OF LIQUIDS GREATER THAN DE MINIMIS AMOUNTS. AT THE TIME OF CLOSURE, THE DRILL CUTTINGS MUST ALSO MEET THE APPLICABLE STANDARDS OF TABLE 910-1. THE PROPOSED SURFACE CASING IS MORE THAN 50' BELOW THE DEPTH OF "I -HE DEEPEST WATER WELL WITI IIN 1 MILE OF THE SURFACE LOCATION WHEN CORRECTED FOR ELEVATION DIFFERENCES. THE DEEPEST WATER WELL WITHIN 1 MILE IS 205 FEET DEEP. THE OPERATOR SHALL COMPLY WITH RULE 321. AND IT SHALL BE THE OPERAT'OR'S RESPONSIBILITY TO ENSURE THAI" THE WELLBORE COMPLIES WITH SETBACK REQUIREMENTS 1N COMMISSION ORDERS OR RULES PRIOR TO PRODUCING THE WELL. • • NOTICE TO ALL OPER TORS DRILLING WILLIAMS FORK FORMATION W LLS IN GARFIELD COUNTY SURFACE CASING DEPTH AND MODIFICATION 0 LEAKOFF TEST REQUIREMENTS JUNE 23, 2006 (Amends May 3, 2001 Notice) Based on the evaluation of the leakoff test data, drilling histories Formation wells in Garfield County, the surface casing setting de 22, 1998 policy statement amended May 3, 2001 will remain in e performed at the discretion of the operator with the exception of a apply in the Grand Valley Field as required by an earlier notice. all Permits -to -Drill for Williams Fork Formation or deeper gas w. The following shall be required in the Rulison Field Overpressure 1. The Rulison Field Overpressured Area is defined as (see a Township 6 South, Range 94 West, Sections 9, 15-23, 26 - Township 7 South, Range 94 West, Sections 2-6, 8-10, 11 2. Surface casing must be set at a minimum depth of 1100 f nd reservoir parameters for Williams Fork th requirements specified in the September ect. Surface casing leakoff tests will be ditional leakoff test requirements that may e following conditions are to be attached to lls in Garfield County: Area: tached map): 5 15, 16 et. The following shall be required in all fields in Garfield County: 1. Notify the COGCC Northwest Area Engineer 24 hours pri r to commencing wellsite construction, setting of conductor pipe, well spudding, running all casinand any cementing operations so that COGCC staff may have the opportunity to witness, All no ificalion shall be given via a -mail whenever possible. 2. Surface casing shall be set at a minimum depth of ten per ent (10%) of the total depth of the well. 3. All lost circulation zones, gas kicks and water flows shall be reported to the COGCC Northwest Colorado Area Engineer as soon as feasible within twenty-four (24) hours of occurrence. 4. Significant lost circulation shall be defined as a mud Toss in excess of 100 barrels and which requires shut down of operations for an hour or longer to pump lost circulation material and rebuild pit volume. The following data is required: depth, mud volume lost, whether or not a kick ensued, mud weights before and after lost circulation, and procedures used to regain circulation. 5. A significant kick shall be defined as one that is managed by shutting in the well to circulate out the kick or that is managed by going on choke and requiring an increase in mud weight exceeding 3/10ths of one pound per gallon to control. The following data is required: date and time of the kick, total depth of the well at the time of the kick, surface casing depth, size and cementing data, initial and final mud weights, shut in drill pipe pressure, shut in casing pressure, or any other pressure measurement or information used to determine the mud weight necessary to control the kick. 6. The depth, rate and mud weight on all water flows must be reported. 7. Upon completion of the primary cementing operation, the annular fluid level around the production casing shall be monitored for a minimum of 4 hours after cementing. Operators shall maintain the ability to monitor the annular fluid level and keep the hole full. The amount of mud that is used to keep the hole full shall be recorded, If mud volumes in excess of twenty (20) barrels are necessary to keep the hole full, the loss of fluid shall be reported to the COGCC immediately. For all notifications contact COGCC Northwest Arca Colorado Area Engineer Jaime Adkins via e-mail at: jaime.adkins@state.co.us or in urgent cases at 970-285-9000(0), 970-250-2440(C). Thank you for cooperating with these requirements. Brian Macke, Director 9 10 T 7S R94W 16 15. COGCC Notice to Operators (June 23, 2006) Rulisoru Overpressured Area (1100 feet of Surface Casing Required) • • 7.1 1 FORM Roy 12/05 1. Drill. TYPE OF WELL OILD GAS © COALBED❑ OTHER: SINGLE ZONE MULTIPLE ZONES State of Colorado Oil and Gas Conservation Commission 1120 Lince', Street, Scale 801, Omer, Colorado 80203 Phone (343)894-2100 Fac(303)894-2l09 APPLICATION FOR PERMIT TO: aDeepen, Q Reenter, c Rocomplete and Operate COMMINGLE ZONESn Re 'ling Si etrack f'ECE!VEG OCT 22 07 Pugging Bond Su - I00 3. Name of Operator Williams Production RMT Company 4. COGCC Operator Number 9 5. Address: 1515 Arapahoe 5L, Tower 3, 91000 50 Complete the Attachment Checkfw City: Denver Stale: 6. Contact Name: Howard Harris COZip: 80202 7. Well Name: Battlement Mesa Partners Phone: (303 606-4086 Wel, N Unit Nu 8. Unit Name (if appl): 9. Proposed Total Measured Depth: 6507 Fax: (303)629-8255 APD Orig & 1 Copy Form 2A OP X COGCC Well location plat X PA 433.5 Topo map x er Mineral lease map Surface agrmt/Surety X x 10. olrOtr. NW/4 SE/4 WELL LOCATION INFORMATION Seo: 5 Twp: 7S Rng: 95W Latitude: 39.46456" Longitude: 108.120139" Footage At Surface: !1793 11. Fleid Name: Parachute Meridian 6171P.M. 2292 12. Ground Elevation: 14 GPS Data: 5105 13. County: Garfield MAW - Field Number: 67350 30 Cay notice letter Deviated Drilling Pian x auk,. Cif' Exception Location Request Exception Loc Waivers H2S Contingency Plan Federal Drilling Permit Date of Measurement 5/7/2007 POOP Reading. 2.5 Insbument aloes Name: Lauren Vance 15. If well is: D Directional ❑ Horizontal (highly deviated), 01.484. Footage Al Top of Prod Zone: )438 submit deviated drilling p FEL/PYA At Bodo 1655 -, n. Battomhole Sec Twp Rng: NWSE Sec 5-T7S-R95W' MOS; Hole: 11438 i FSL.] 1655 FEL 16. Is location in a high density area (Rule 603b)? E:lYes r, No 17. Distance to the nearest building, public road, above ground utility or railroad: .. Gil' Z 18. Distance to Nearest Property Line: Approx 410' SNL 19. Distance to nearest r II permitted/completed in the same formation: Approx 745' From BfiL 20. P F Objective Formation(s) Formation Code Spacing Order Number (s) 440-36 Unit Acreage Assigned to Weil 320 Fee Pooled Unit Configuration (N/2., SE/4, etc.) 5!2 Williams Fork WMFK 21. Mineral OwnersNp © 22. Surface Ownership: © 23. Is the Surface Owner also the 23a. II 23 is Yes: Is the Surface 23h.1) 23 is No: Q Surface 24. Using standard 01r0e, Sec, Tap, See Attached FeerSlate Fee State Federal Ell Federal Indian Surface Lease 1 Indian Surety Do Mineral Owner? in Owner(s) signature on Owners Agreement Attached Rng format enter entire Yes 1 X No the lease? ' Yes - No in $2600 Surface Bond MI 55,000 Surface Bond wells to 8 located (attach separate sheet/map if you prefer): or f $25,000 Blanket Surface Bond upon which this proposed mineral lease description 25. Distance lo Nearest Mineral Lease Line: Approx 1010' BI -1L 26. Total Acres in Lease: 160 (estimated) AND PROC DURES 27, Is H2$ anticipated? [J Yes 0 No If Yes, attach contingen 28. Will salt sections be encournered duing drilling? E:3 Yes © No 29. 1M1! salt (>15,000 ppm TDS CI) or oil based muds be used during drilling? - Yes 30. If questions 27 or 28 areyes, is this location in a sensitize area (Rule 903)? MN Yes 31. Mud disposal: EOffsite X❑ Onsite Method: Land Farming 0 Land Spreading [J Disposal Facility NOTE: The use of an earthen pit for Recompletiun fluids requires a pit permit (Rule 905b.) II air/gas drilling String Size of Hole Size of Casing Weight Per Foot Setting Depth nductor 24' 16' 486 40 Surface 1312' 95/8' 32.36 1472 plan. 1 • No No 1t 28, 29 or 30 are 'Yes" a pit permit may be required. Other: Evaporation and Backfilling Wily local ire officials. Sacks Cement Circtlale ON In Surface Cement Bottom Cement Top 40' Surface Production 77/8' 412' 11.66 6507 Circulate Cml In Surface 1472 ant 700 Move uppeeroc mesaverde sand Surface .a( Stage Tool 32. BOP Equipment Type: �X Annular Precentor EX Double Ram n Rotating Hee 33. Comments Uit: - - L.r is -j c _) __ L•., 'tet' None Aer H K 10-11.f-07 34. Initial Rule 306 Consultation took place on (date) 7,1-477:-.7 :7 ,was waived, or Is not r - ' aired. Provide supporting documentation 1 consultation has been waived or if good faith effort Cid not result in Consultation. PERMIT SUBMITTED TO COGCC PRIOR TO COMPUANCE WITH RULE 306 CONSULTA ON SHALL BE RETURNED UNAPPROVED. 1 hereby certify that a complete permit package has been sent to the applicable Local Govern ant Designee(s). and all statements made in this form are, to the best of my knowledge, true, correct, ref complete. Signed_ _//-m---,._,(1) 44x, Print Name: Hr are Hants Title: Sr. Engineering Technician Date: /G, 2../c,I Email: Hower4,H . 'ri:InEliams com Based on the information pted hereje,s cation or Permit -to -complies with COGC (J�rfC4L'G+// Permit Number: ? 0 n 7 S q 6 71 CONDITIONS -OF APPROVAL; IF ANY: COGCC Approved: Direct API NUMBER OS/)L(S /JO'1I -UC) Rules and applicable orders and is hereby approved. otCOGCC Expiration Date: SEE ATTACHED PAGES: CONDITIONS OF APPROVAL AND NOTICE TO OPERATORS Date: /I -/9-O'7 CONDITIONS OF APPROVAL: BATTLEMENT MESA PARTNERS PA 433-5 24 HOUR SPUD NOTICE REQUIRED. E-MAIL; JAIME,ADKINS@STATE.CO.US NEW GARFIELD COUNTY RULISON FIELD NOTICE TO OPERATORS. NOTE: ALL NOTICES SHALL BE GIVEN VIA E-MAIL RESERVE PIT MUST BE LINED. TO PREVENT THE LOSS OF DRILLING FLUID TO SHALLOW FORMATIONS AND TO PROTECT SHALLOW GROUNDWATER AND SURFACE WATERS, CONDUCTOR PIPE SHALL BE SET AT A DEPTH SUFFICIENT TO INSURE ABSOLUTE WELLBORE INTEGRITY DURING DRILLING OPERATIONS. CONDUCTOR PIPE MUST BE SET AT A MINIMUM DEPTH OF 200', OR AT A DEPTH AT WHICH FORMATION INTEGRITY IS SUFFICIENT TO PREVENT A LOSS OF DRILLING FLUID, WHICHEVER IS GREATER, ON THE FIRST WELL ON EACH PAD AND CEMENTED BY THE PUMPED PLUG METHOD. CONDUCTOR PIPE SETTING DEPTHS ON SUBSEQUENT WELLS ON THE PAD MAY BE INCREASED OR DECREASED BASED ON GEOLOGIC CONDITIONS ENCOUNTERED IN THE FIRST WELL SO AS TO INSURE ABSOLUTE WELLBORE INTEGRITY. CEMENT TOP VERIFICATION BY CBL REQUIRED. THE PROPOSED SURFACE CASING IS MORE THAN 50' BELOW THE DEPTH OF THE DEEPEST WATER WELL WITHIN 1MILE OF THE SURFACE LOCATION WHEN CORRECTED FOR ELEVATION DIFFERENCES. THE DEEPEST WATER WELL WITHIN 1 MILE IS 205 FEET DEEP. THE OPERATOR SHALL COMPLY WITH RULE 321., AND IT SHALL BE THE OPERATOR'S RESPONSIBILITY TO ENSURE THAT THE WELLBORE COMPLIES WITH SETBACK REQUIREMENTS IN COMMISSION ORDERS OR RULES PRIOR TO PRODUCING THE WELL. • • • • r NOTICE TO ALL OPERATORS DRILLING WILLIAMS FORK FORMATION WELLS IN GARFIELD COUNTY SURFACE CASING DEPTH AND MODIFICATION OF LEAKOFF TEST REQUIREMENTS JUNE 23, 2006 (Amends May 3, 2001 Notice) Based on the evaluation of the Ieakoff test data, drilling histories and reservoir parameters for Williams Fork Formation wells in Garfield County, the surface casing setting depth requirements specified in the September 22, 1995 policy statement amended May 3, 2001 will remain in effect. Surface casing Ieakoff tests will be performed at the discretion of the operator with the exception of additional Ieakoff test requirements that may apply in the Grand Valley Field as required by an earlier notice. The following conditions are to be attached to all Permits -to -Drill for Williams Fork Formation or deeper gas wells in Garfield County: The following shall be required in the Rulison Field Overpressured Area: 1. The Rulison Field Overpressured Area is defined as (sec attached map): Township 6 South, Range 94 West, Sections 9, 15-23, 26-35 Township 7 South, Range 94 West, Sections 2-6, 8-10, 11, 15, 16 2. Surface casing must be set at a minimum depth of 1100 feet. The following shall be required in all fields in Garfield County: 1. Notify the COGCC Northwest Area Engineer 24 hours prior to commencing wellsite construction, setting of conductor pipe, well spudding, running all casing and any cementing operations so that COGCC staff may have the opportunity to witness. All notification shall be given via e-mail whenever possible. 2. Surface casing shall be set at a minimum depth of ten percent (10%) of the total depth of the well. 3. All lost circulation zones, gas kicks and water flows shall be reported to the COGCC Northwest Colorado Area Engineer as soon as feasible within twenty-four (24) hours of occurrence. 4. Significant lost circulation shall be defined as a mud loss in excess of 100 ban•els and which requires shut down of operations for an hour or longer to pump lost circulation material and rebuild pit volume. The following data is required: depth, mud volume lost, whether or not a kick ensued, mud weights before and after lost circulation, and procedures used to regain circulation. 5. A significant kick shall be defined as one that is managed by shutting in the well to circulate out the kick or that is managed by going on choke and requiring an increase in mud weight exceeding 3/ I Oths of one pound per gallon to control. The following data is required: date and time of the kick, total depth of the well at the time of the kick, surface casing depth, size and cementing data, initial and final mud weights, shut in drill pipe pressure, shut in casing pressure, or any other pressure measurement or information used to determine the mud weight necessary to control the kick. 6. The depth, rate and mud weight on all water flows must be reported. 7. Upon completion of the primary cementing operation, the annular fluid level around the production casing shall be monitored for a minimum of 4 hours after cementing. Operators shall maintain the ability to monitor the annular fluid level and keep the hole full. The amount of mud that is used to keep the hole full shall be recorded. If mud volumes in excess of twenty (20) barrels are necessary to keep the hole full, the loss of fluid shall be reported to the COGCC immediately. For all notifications contact COGCC Northwest Area Colorado Area Engineer Jaime Adkins via e-mail at: jaime.adkins@'state.co.us or in urgent cases at 970-285-9000(0), 970-250-2440(C). Thank you for cooperating with these requirements. Brian Macke, Director • • oQ = of r*, aF • • 2.[• •ES :. =;• is•.Y O r • • 4 4 , lk w� Ua h' w ;K 14 I; •`K t_ �'-• L 11 ;QE Y Y�° 121:)t 1f� trt 1` E.! i I 4 1. } j i&Y th • st IIP • . J *. 1 ,1 ; i:ici. . i ILA! • . ivy N#1111, . , 1141'61)A 1 II :: 1 1 r 1 • . L. . Psi 7 co • •._� 'Y-X�saYielw;. 4[4,14—.�._`^..U�,Ft^3.`�K 0.037.41% 1.53 • • r. 1SSM 11/19/2007 15:25 ( FOR)4 R..2 3038942109 State of C 1111 OR and Gas Conservatft- CDGCC / 1120 tMdnReet Suit 801 Denver, Womb cram Phew (303)984-2100 Fic(8830.942109 APPLICATION FUR PERMIT TO: 1. QX Dra, [l Deeper, 0 Reeder. Q Raex+mplele end Operate 2 TYPE DP WELL OILO GA SINGLE ZON COALBED❑ OTHER MULTIPLE ZONE$n COMMINGLE ZONESC Ae®Irug Sidetrack PAGE 15/16 RECEIVED Z7t0 D7 3 Name of Opensor Wilkems Production RMT Company 6, 7. 8. 9. Address: 1515 Arapahoe 31, Tower 3,11000 City; Darner Collect flame: Horrid 14erea Wei Warne: Settlement Mass Partners Drift Name (dagga 4. COGCC Operator Nuphar. 96850 Cab 'APD eJelM APD Ong b 1 Copy )191 State: CO 2p: 80202 Phone: (303)606-4066 Far (303) 629.8285 Propoeed Tata Measured Depth: 6615 10. Oe0tr. NW/4 SEl4 Latitude: 39.48e441' Well Number; Form 2A location plat OP CODCC X X X PA 24-5 / Tcpo map x Unit NwnNumberb9reerel lease map WELL LOCATION INFORMATION Sec 5 Tap' 7S Ray 95811 Meridian: Longitude: 108.020120' ciao rturw. FSI. Y187IFEL1 Footage At Surface: 11. Feed Name: Parachute 12. Ground Elevation: 11788 5105 r 13. County: Garfield 14. GPS Data Date of Measurement 5/7/2007 Field Number x MN PM. myna/SurelySurface myna/Surely 30 Day notice deb X yerin4.42 (e. Deviated Dieing Peen Eecepiion Location Request x van Exception Loc Wai S Contingency Plan n Federal Drilling Permit POOP Neadug: 2.5 instrument Operators Name: Lauren Vance 15. 11 well is a D3ectloeal Hortrareel (hlgky d&fated). Furs. Footage AI Tip or ProrZere: !1202 wankdevlMWdrMb9gplan OoltomhdeSeoTwpRig: SESWSec ST73-R9SW MAR t Moot FSL 1018 -I Ir1N9AtEkstrom Hole: 1202 FSL(2118 . (FWL 1 Is location in a high density area (Rule 8036)? Q Yea n No �7�� Drsbfmoe b the nearest building, putt c road, oboe groundi rogroundy o rem: ,iBS- 2I.. l 18. Dlxarra to 'Memel Property Line: Appro. 41O' SHL X19. (*lance to rbaresl wee pemtined/compl0Md in the same Mrmefgn; Amex 691' From BHL 20. Objedoe F4h etIoN) Formation Code Spacing Order Number (s) 44036 1" Una Acreage Aeei,ned to WWI 320 F.ae eeled Unit Confguralia, (102. SE/4, etc.) 5/2 -- *stars Fork WMFK - MI MI Disposal Yes 1� Yes Facll y , No No © 1128,29 or 80 are 'Tee a p8 pew* may be required. Other Evaporation and DeckEl9ig NOTE The use or an earthen pl for AewrnpletIontuds ree pd permit {Rule 9066.) II aidges drilling, notify kcal ere retrials. Stbrg Sire or Hole Size of Cashig 1tMei9►4 Per Fool Setting Depth Secde3 Cement Cerner Bottom 40' Cement Top Surface 21. Mineral Ownership: i XX 22. Surface Genesttp: ii �1 J��"'"e 23. is the Surface Owner L1op lne 236.5 23 L9 Yes: X74Surface 236.823 da No: �I` FF�e LJ 310 Mineral Owner? LY.a Owa,ens) tdgratae on ca Owners Agreement Attached Rog Sonnet oder entire'newel mal NNW " - . -: n Surfaeo Surely Lease 1 - Mien '7. i Yes IDs gag the lease MI No S2,000 Surface Bond s5.000 Sudaoe Bond 1:312,000Q .vertme is baited (attach separate sheethrap k you prefer): or MEN. .000 Blanket Surface Burd upon which tis proposed 2d. Using standard 0� Sec, Twp, See Attached lease desorption 25. Beeman to Names a5neral Lease Lina: Approx 554 811 " 26. Total Acres In Lease: 146.10 DRILLING PLANS AND PROCEDURES 27. le H2S an eipaled? ` 28. WE salt sections be enemm4er8O Yes 1-:.,1 No M Yes, dung drlktg? 1.1 attach .. Yes 0 yea No 29. 1610 eek ('15.000 alt t questions 27 or 31. bbd Repos*.. Method: ppm TDS 28 are I. al Cq 040i1 based muds be used duel drNrtlj7 yes, ie los location in a send6w Brea (Rub 903)? Okaile ID Onsll9 Lurid Failing 0 Lend Spreading - MI MI Disposal Yes 1� Yes Facll y , No No © 1128,29 or 80 are 'Tee a p8 pew* may be required. Other Evaporation and DeckEl9ig NOTE The use or an earthen pl for AewrnpletIontuds ree pd permit {Rule 9066.) II aidges drilling, notify kcal ere retrials. Stbrg Sire or Hole Size of Cashig 1tMei9►4 Per Fool Setting Depth Secde3 Cement Cerner Bottom 40' Cement Top Surface rd4l3x 2C 18' 488 40' Ckaeee One Seem Stiece 131/2' 9 5R' 3234 1542 Charlab Ginn Sedate 1542 Surface Production 7 7f8' 4 172' 11.64 6615 -' CM= sews upperrosi mom* mde ami Siege Tool 32. BOP Equipment Type: T1 33. Comments C Armlike Reverter gg 2J7 j Double Ram [x� Roteeng Head .L. ,34'5-..c7aa..j., -' • None r /, ,0/071>'4,'perk' if H 10- i 7 34. khi(al Rule 306 ConaAatlon 100k dace on (date) 72, 0.7,was waived, er is notred. Provide au +eau) pponlrlg documerManari It cdr153rnaedn hes been waived or i1 good tarifa effort db not result M PERMIT SAMMITTEA TO COGCC PRIOR TO COMPLIANCE WfM RULE 300 CONSULTATION SHALL BE RETURNED UNAPPROVED. I hereby caddy Chet 8 complete permit package haat been sent to the applicable Local Government Designee(s), and 81l alinements made in thio form are. 10 ere beet or nowledge, true co an0 cn0ete. Signed: / ..-�� y[r �_, Print Name: Howard Noris Title: Sr. Engfneenrg Technician Dale: /IA q,/a7 Email: Howend.Nsaggl J 9m ____ Based on the information provided herein, this Apolleatio0 for Parm114o-Dial ewrnplbs with COGCC Rules and vocable orders and is hereby approved. COGCC Approved: AP1 NUMBER °$-' L 5 -1Soy9 -00 fv11, of COGCC Dela 11- 19- o 7 ParmR Number_ 2 5 " Expiration Date: 11- 1-°X CONDITIONS OF APPROVAL, IF ANY: SEE ATTACHED PAGES: CONDITIONS OF APPROVAL AND NOTICE TO OPERATORS 11/L9/2007 15:25 3038942109 COGCC CONDITIONS OF APPROVAL: BATTLEMENT MESA PARTNERS PA 24-5 24 HOUR SPUD NOTICE REQUIRED. E-MAIL; JA1ME.ADKINS@STATE.CO.US PAGE 16/16 NEW GARFIELD COUNTY RULISON FIELD NOTICE TO OPERATORS. NOTE: ALL NOTICES SHALL BE GIVEN VIA E-MAIL RESERVE PIT MUST BE LINED_ TO PREVENT THE LOSS OF DRILLING FLUID TO SHALLOW FORMATIONS AND TO PROTECT SHALLOW GROUNDWATER AND SURFACE WATERS, CONDUCTOR PIPE SHALL BE SET AT A DEPTH SUFFICIENT TO INSURE ABSOLUTE WELLBORE INTEGRITY DURING DRILLING OPERATIONS. CONDUCTOR PIPE MUST BE SET AT A MINIMUM DEPTH OF 200', OR AT A DEPTH AT WHICH FORMATION INTEGRITY IS SUFFICIENT TO PREVENT A LOSS OF DRILLING FLUID, WHICHEVER IS GREATER, ON THE FIRST WELL ON EACH PAD AND CEMENTED BY THE PUMPED PLUG METHOD. CONDUCTOR PIPE SETTING DEPTHS ON SUBSEQUENT WELLS ON THE PAD MAY BE INCREASED OR DECREASED BASED ON GEOLOGIC CONDITIONS ENCOUNTERED IN THE FIRST WELL SO AS TO INSURE ABSOLUTE WELLBORE INTEGRITY. CEMENT TOP VERIFICATION BY CBL REQUIRED. THE PROPOSED SURFACE CASING IS MORE THAN 50' BELOW THE DEPTH OF THE DEEPEST WATER WELL WITHIN 1 MILE OF THE SURFACE LOCATION WHEN CORRECTED FOR ELEVATION DIFFERENCES. THE DEEPEST WATER WELL WITHIN 1 MILE IS 205 FEET DEEP_ THE OPERATOR SHALL COMPLY WITH RULE 321., AND IT SHALL BE THE OPERATOR'S RESPONSIBILITY TO ENSURE THAT THE WELLBORE COMPLIES WITH SETBACK REQUIREMENTS IN COMMISSION ORDERS OR RULES PRIOR TO PRODUCING THE WELL. • • • OGCC FORM 2R F Rov. .10/6 + OIL • • • O1T29190 STATE OF COLORADO GAS CONSERVATION CQMMISS nEtARSMENr _fTCi okAL RESOURCES FOR E9.42P'fl 't9. DRIL' -teiffroW�. T}ON , OR RE-ENTER AND OPERATE••- ,� L .E D ICNAi1QN AND SERIAL NL), �T It. IF 1 •DIAN. ALL n AM& -- I 4 t4 TYFE or WOnx DRILL i._I DEEPEN 0 REENTER 0 6 Tvrt of WELL OIL f-`1 GAS_ - .YtNlX • MNLTtPLZ WELT. 1....7 WELL- OTHER ._._ — _ _ _ ____ -- — 2ONL © ZO14E • - - _ 7, UNIT AGREEMENT NAME E. FARM OR LEASE NAME Mesa Partners ITs - -- -4. __. ....._.. _ _ _ .. 80202 S. PHONE NO. { 303 ) 297-3900 Battlement r OPEiLA1�R Barrett Re&Du rporatcon WELL NO, . CV 87-5 ADDRESS: 1125 17th SIj t .__ �7 ' Colorado ZIP: CITY: Denver ,_ � •IhtIE 10. FIELD AND POOL. OR WILDCAT Par rhure 4. LOCATION OF WELL (Repos lace uoyn�clearly and At "41"L15O 7 'ST q1 ^FT T.- In oceadance with any Static requimorrus,y - - • 11. QTR. QTR SEC SEC TIL AND MERIDIAN LAPSE Sec. 5-T7S--R95W At proposed Prod. 2 w Satre._ _ .___ _ ...- I3. DISTANCE. IF LESS THAN 200 Fr,TROhl ANY_CCL1fLD M.P.G.PUat4C MAD. AP.QVL ROL1 I J TY3N2.QX RAILROAD (SHOW FOOTAGES ON 31.1/1 Greater L1CLr1` 12. COUNTY Gaz-fi-e1d 14. DISTANCE FROM r Qt"S,SF.D. .CADON TO 4J RE J13. PROPERTY OR LEAS. UT NE,_F- ' 7,4301 L.��n (Also to nearest dr1g. sine, if and pooled _ NO. OF ACRES IN LEASE' r 16. NO. OF AERES AND/OR DRILLING UNIT ASSIGPJED DO Tins WELL q c// 17. DISTANCE FROMPROIN0SED LOCATION TO__ F,�RES%]'YE�I2. ib. PROPOSED DEPTH 65_001 19. OBJEC�7lUL ORMATION �1,., MesaVerd_e DRILLING COM FLRTED, . _.— - OR APPLIED FtSIL-ON THI5LEASL3i.. -- - NA - 20. ELEVATIONS (Show• wiwi6ei-G or >Kl31 5108' G.L. 21. DRILLINGK_-__.__- .LEON E._NO. _ _- .. 22. APPROX DATE WORX WILL START November 4, 1990 PROPOSED CASING AND CEMENTING PROGP W S1ZE Or HOLE 1224" 7 7/8" SIZE -OtrltSlHtii- WEIGHT PER FOOT SETTING -DEPTH QUANT' or CEMENT 8 5/8" 24# 5,_1 t L7# •300' 6500' 200 sx 1100 sx 2/ 13 SURFACE -OM'NER,3'Lii'ESHE_blli4ERAL OktLNraTE -a•-6Lfi._- -- — If - if NOT roriace bond muse be o:1Tir -or s spi o7 iutiiacc ag rvn rni mint Tic banished. If inigaled land suriacc bond of 33000 it ttYltlired . 'D. SCRI$£ LEAS _III' QTR QTR...SE.C...,7111N5Hf PJMt _ Sec _ 5-T7S -R95W Lots 8, 11, SE4S514,-.N/E/4.. N 4SI 43 . -fit part o .te SW/4SE74•- lying North of n _ a_aopoi t~t 466`_.North of arrr,� cr of sal yT�4S 4; thence_ __ _ PLEASE FILL IN APPROPRIATE CO DES: OPER NO. 06495 67350 MSVD DRLR. NO. FIELD NO. LEASE NO. desscri 11ne; BegiindDg FORM CD. N ESQ 'its' E 830 t ,este S 8r7 941 30' E 6 m ar Tess to the lE line of said SW/4SE/4 zs. '.-- PRNT r RP CCM 7TS PC ('dlITIF M tat .._...._..—...,..a-._.�_ ..-. - NE YI S=GJ l.i/t.�;t,�r Operations Mona *er �,,, crtober 18 1990 spare (ur srderst or Swat 11 2 8 2 PERMITNO- -. JiP . i�5cC7£l xBUTIQN DATE wat OCT 31 1990 OCT 31 1990 FEB 28 1991 APPROVED BY R. Aiektf.a CONDITIONS OF APPROVAL IF ANY: T1TI F Director Oil k Gas. Conserv. Comm. See Instructions On Reverse Side A.P.I. NUMBER 4 Oil 5 7_33 SEC. , T 7 S. , R - 55W- op TME 6TH pm, G v. 6 -67023'' • 2'93' . A ilgEsr • • LOCATION PLAT kti SCALE o' -LEGEND- k qa 0 NTANOAAO LOCATION Or *10 SUCTION CO1/Nt4S. PLO COMMAS POUND. e'tLt LOCATION *mama. REFERENCE DOCUMENTS /8B'T SLD PLAT iPULtS� GQ, _ DUADRANGLE, THIS WELL .LOCATION PLAT WAS PREPARED FOR: BARRETT RESOURCES TO LOCATE THE 6 V#= _ , 1 ?5 DT F. S. L. & 2293' .. F . E. L. JN T NW 1/4 S__ -_1/4_,10F SECTION .5' ,r 7 S. ,R 95W OF THE 6TH RAI GARFIELD COUNTY, COLORADO $UhvtrrD DNAWN CHICANO /2-9D SURVEYOR'S CERTIFICATE 1, Larry D. Becker : a Registered Land Surveyor In The Stats Of CC26oRAL7 po •r.by Certify That Thls Survey Was Mads Lind Di ct Supervision, and That This Plat Rsprs ants . ,e, Survey/, I1! ... / D42 L.S. # 7734 EWERS SURVEYS CORPORATION iff PIKES PEAK DRIVE SPAN° JUNCTION. CO. °1'!n! (SO$I 145 -?2Z1 *CALA: /"f = /47p0' JON NO. COCCI' Or, Oce.^. ,'ORM 2 ►.-. SOr►6 • STATE Or COLORADO OIL ATI) GAS CONSERVATION COMMISSION DETARTMF_NT Or iaxTui;wL xuO:UACFS APPLICATION FOR PERMIT TO DRIU.. DEEPEN, OR RE-ENTER AND OPERATE r. Tyra Or WoaC MI O% 11x2-1. - OIL ri DRILL LTJ DEEPEN ❑ RE -EA ER ❑ -. WLU. Ld OTN1:, 111.1C111.1C.1111.1C.1.4KllLTr►LS T --i 2f . t � 20141a--- ro NOGUx.flt1Sn 7-3900W 15-5 .ALLr.AMI IM O 'r.PER. TOR.: Barrett ReSources Corporation ,,DDRrss: 11.25 17th Street Suite 2400 CITY: Denver STATE: CD zlf 4. LOCATIDK or S+CLLL rkepon loClpan cI Jf ,oc 111�� tnc ive nn-T•r.ynrnu-r At SWUM 2340' EEL 1790' FSI., SecS-R95W Ar propa►ed Prot. Sony .Same 15.OD 13 TKOM AIJI' OCCumn lLDG roktm RWL'. AtOvi GkOUND 1r711 riY UNi. Pr 303 ) 80202 DISTANCE Ir LESS T13A► ! p.AILADAD (2140v: TOOTACLS Oh SURVtY rLAS) 2 miles from Parachute CO u. NO. or ACk.0 rN LLASL• 233.45 i:. Dal A.NCL rROM rttOPOSED LOLATIDJ. TO NLAKLSI r,OPLJ:'fl OR LLfSL LJNL. rt. 327' IM,o ,o r+ramr orlf. 1.r1c. i1 an.n- ::. DISTANCE MOM. TROrOSLD LOCAl]Oh TO NEAREST WELL It. rROrOSLD DETTH D101-1-1NO. COMrLtTED. OS ArrLliD FOL ON "MIS LLASL. T . :h. LLTVATIONS (Soo., «mnhc+ CA or J:b± - 5080' GR N A 1400' 2J. DRILLING CONTKACTOS mom. NO. 1 Flenburg Exploration 307-235-8609 rROrOSED CASING AND CLML's"17NG rkoCaPId }i1 fl i. Op)ECTn'L FOkMwTIOr. Wasatch PPROI.- DAT/. 1watt/.M',1.;. S1ART 1:: AJuly 20, 1994 NMI ,G. T,ELD wr`D POOL. OR K',LDLw3 IkAil5OTt I i.QTi- Q.Tl`SL 1.3- AND m Oki 1AA NWSE Sec 5--T7S--R95W IL. coLINT) Garfield NO 01 ACkLS AND/Ok Dtti1LLlNG L'NI1 160 rQ /.ISICG.NLD TO 1HIS WLU 1 g11�A7m OT t41'•% SJ2I or NDLI slu 01 LA$U C 1 wtiGlt' TCC row: ' kr. r)Nc. awry( 1 17_`i 5 oi 17 Z./8r ` 4 1/2" 10 ' 1 �' 25C) sx Sa IS SURFACZ 0w r3 ALSO THE MINERAL O++NEF.? YTS X J:C If NOT ►vnact cane mast or on air of ropy of srrriacc artrcrerot must br rurantnre.. li impute lane. ruriaet pond al s5ano n rtom.v . - - -- - - - 0 '^ SGRIs£ LLASE BY Q17, QTR... 5T_`.. TV.•2SHP.. KN -C. see Attached Exhibit 004°) 1.-15" - F �a. t..X cep Ata�- � �., o c �L. � L;.a ' Ted D. B 7.7 T Sr. Petroleum Engineer .71111. asa.r w.. F.artaa er 0►.•r 4... 941 600 PtP.M:" 4C AnrROti7.D E` Ar?R0t oA77. CDKDITJDNS Or AdrkOVA_ IF ANY: 1. 24 Hour Spud Notice required. Contact COGCC Field Engineer Jaime Adkins (303) 878-4252. CCi 141994 Dirrtio- L, J 4a:. Comm:. Corny - Svc Inst-I.Ictioni' On p i-sc Sioc rtL tr& - IN AM1.0T IATE OTiR. NO. OMR 110. F1r_LD ND.45409 67.35v LFASL NO. FORM CO, 06495 $xrxsu7loN DAT= WSM DA;= NUM 7._R. .FROM SEC. 5, 7'. 7 S., H. 95 W OF THE 6771 P.M. HARRETT RLSOURCES w sti5-5: GRID. ELEV: x080 17p0.00' • • • 2340.00' • w . i 0 • • • • • 588'25'7 9"E ' S88'28'55'E 1333.34' 1334.10 PLAT #1 LOCATION PLAT r.� a lean GRAPNIC SCALE IN FEET 'Krt. eoao•t tt —LEGEND '- CV b STANDARD LOCATION OF N CLO SECTION CORNERS CORNERS FOUND e WELL LOCATION STAKED TATS WELL LOCATION PLAT WAS PREPARED FOR BARRETT RESOURCE'S TO LOCATE THE iY #15-5, 1790 FEET FROM THE SOUTH LINE AND 2340 FEET FROM THE EAST LIN.E IN THE S W1/4 SE 1/4 OF SECTION 5, 7'. 7 S., R. 95 W. OF THE 6717 P.M. GARFIELD COUNTY, COLORADO. REFERENCE DOCUMENTS i) T.7 5., R.95 W., 6TH P.M. CLO PLAT 2) U.S.G.S. OUAD: PARACHUTE, CO SURVEYOR'S CERTIFICATE 1, Jerry Hwcr: n Professional Land 51.rvcyor in the Statc of ColorodO du hereby ceutity that this Survey was direct supervision, and that this Plot represents �`�.` • • i.M. 9009 ? T� •.n Op - ON` • ��ij'� CONSTRUCTION SURvE"YS, INC. 1854 CO, RaAL7 793 RIFLE, CO 81660 .303-625-1812 91: 4 SURVEYED: 6/26/94 SCALE: GRAFTED: 6 /29/94 DWG: 5 RRETT\RHV5-5 CHECKED: 6/29 94 SHEET: 1 OF } • cu. Objective Formation(s) Formation Code t ...�.,.., ....-'---'--------------- Spacing Order Number (s) FORM State of Colorado V o:G:;%/ ®r © 2 � Rev 12/05 Oil and Gas Conservation Commission 112C Lincoln Skeet, Suite BDi, Deriver, Cdaado802o3 Phone: (303)89+-2100 Fac(3U3)asi-2109 , . -,.> � �' "14 k 5/2 fPne Iboled) R�CEQ`��® 1, X APPLICATION FOR PERMIT Drill, E Deepen, Re-enter, IM TO: Recomplete and Operate 1M' String DEC 1 0 2008 2. TYPE OIL II OF WELL GAS X COALBED II 1 Refiling OTHER: Sidetrack E 21. Mineral0vmership: © 22. Surface Ownership: ©Fee 23. Is the Surface Owner also the 23a.1123 is Yes: Is the Surface 235.1123 is No: © Surface 24. Using standard Otrotr, Sec, FeeCState CStale Plugging Bond Surety I0ff SINGLE _ Indian ZONE MULTIPLE ZONES n COMMINGLE ZONESf1 f--- 7 . n M_ 3 Name or operato. Williams Production RMT Company 4. COGCC Operator Number 96850 AttachmMM Checklist OP COGCC 5. Address: 1515 Arapahoe St., Tower 3, 81000 APD Orig 8,1 Copy X mineral lease des City: Denver State: CO Zip: 80202 Form 2A X 41/2' 6. Contact Name: Howard Hanis Phone: (303) 6064086 Fax: (303) 629.8285 Wee location plat X 7. Well Name: Battlement Mesa Well Number: . PA 4235 Topo map X 8. Unit Name (9 appl): Unit Number: Mineral (ease map X 9. Proposed Total Measured Depth: 661/ (/ -V8 Surface agrmtlSurety X Stage Tool WELL LOCATION INFORMATION 30 Day notice leiter 0 10. OtTOtr: NW'SE Sec: 5 Twp: 7S Rng; 95W Meridian: 6th P.M. Deviated Dulling Plan X Double.Ram © Rotating Head 111111 Unit, currently 5 existing wells, permitting 16 wells Latitude: 39.464466° Longitude: 108.020164 Exception Location 34. Initial Rule 306 Consultation took place on (date) 10/16/2007 ,was waived. or is not required. Provide supporting documentation if consultation has been waived or if good faith effort did not result in consultation. PERMIT SUBMITTED TO COGCC PRIOR TO COMPLIANCE WITH RULE 306 CONSULTATION SHALL BE RETURNED UNAPPROVED. I hereby certify that a complete permit package has been sent to the applicable Local Government Designee(s). and all statements made in this form are, to the best of myowledge, Uuocorr. and complete. Signed: /- Print Name: Howard Harris ra oil. rRhw. Request Footage Al Surface: [1797 FSL, 2297 FEL Exception Lee Waivers 11, Field Name: Parachute Fieri Number 67350 H2S Contingency Plan 12. Ground Elevation: 5104 13. County: Garfield Federal Drilling Permit 14, GFS Data: Date of Measurement: 6/1112008 PDOP Reading: <6.0 Instrument Operators Name: J. Kirkpatrick 15. 11 well is: Q Directional • Horizontal (highly deviated), submit deviated drilling plan. /NOEL FELFN Bottomhole Sec Twp Rng: NESW Sec 5.175-R95W 151151 r!l/FYK 115n 1 ® 12312 I IFWL_ Footage At Top of Prod Zone: 11532 1 ® 12312 I ® Ht..127') 16. Is location in a high density area (Rule 603b)2 IN Yes ©No 17. Distance to the nearest building, public road, above ground utility or railroad: Approx 252' OE (Drk 18. Distance to Nearest Property Line: Arnim: 301' SHL 19. Distance lo nearest well permitted/completed in the same formation: Appro6..82'From BHL cu. Objective Formation(s) Formation Code t ...�.,.., ....-'---'--------------- Spacing Order Number (s) Unit Acreage Assigned to Well Unit Configuration (N2, 50/4, etc.) Williams Fork WMFK 440-36 320 5/2 fPne Iboled) Onsite muds in a sensitive IIII fluids be used during drilling? area (Rule 900)? Land Spreading requires a pit permit (Rule MI 905b) NI Disposal It Yes F0 Yes n Facility air/gas drilkrg, rutty local fire officials. String Size of Hole Size of Casing Weight Per Fool Settop Depth Sacks Cement Cement Bottom Cement Top 21. Mineral0vmership: © 22. Surface Ownership: ©Fee 23. Is the Surface Owner also the 23a.1123 is Yes: Is the Surface 235.1123 is No: © Surface 24. Using standard Otrotr, Sec, FeeCState CStale Federal III Federal Indian Lease r _ Indian Surface Surety 108 Mineral Owner? NI Owner(s) signature on Owners Agreement Attached Twp, Rng format enter entire Yes X No the lease? 1 Yes III No bond El 95,0700 Surface Bono separate sheet/map ii you prefer): or I 525,000 Banket Surface Bond MI 52,000 Surtace ripdon upon which this proposed wellsite is located (attach See Attached mineral lease des 25. Distance to Nearest Mineral Lease Line: Approx 359' 26. Total Acres in Lease: 146.10 77/8' 27. Is H2S anticipated? 28. MI salt sections be encountered El Yes cluing © drilling? No It Yes, • attach continge Yes © plan. No No No © If 28, 29 or 30 are °Yes" a pit permit may be required. Other: Evaporation and Bacidi,,ng 29. Will salt (>15,000 ppm 705 CI) or oil based 30, if questions 27 0928 ate yes, is this location 31. Mud disposal: C Offsite © Method: C Land Farming NOTE: The use of an earthen pit for Recomptefron Onsite muds in a sensitive IIII fluids be used during drilling? area (Rule 900)? Land Spreading requires a pit permit (Rule MI 905b) NI Disposal It Yes F0 Yes n Facility air/gas drilkrg, rutty local fire officials. String Size of Hole Size of Casing Weight Per Fool Settop Depth Sacks Cement Cement Bottom Cement Top Conductor 24' 18' 488 45' ..r 25 45' 141.7/Surface Sudaco 131 /2' 9 5/8' 32.38 '652- 11-1 (g 1 Cirorlare Cmt to Surtace `652'' Surface Production 77/8' 41/2' 11.69 -' Cmi 200 above uppenms mesaverde sand - : i - . Stage Tool 32. BOP Equipment Type: 33. Comments Q Annular Preventor 320 acres © In s12 Double.Ram © Rotating Head 111111 Unit, currently 5 existing wells, permitting 16 wells None al this time, total planned wells 29 Closed Loop Mud System 34. Initial Rule 306 Consultation took place on (date) 10/16/2007 ,was waived. or is not required. Provide supporting documentation if consultation has been waived or if good faith effort did not result in consultation. PERMIT SUBMITTED TO COGCC PRIOR TO COMPLIANCE WITH RULE 306 CONSULTATION SHALL BE RETURNED UNAPPROVED. I hereby certify that a complete permit package has been sent to the applicable Local Government Designee(s). and all statements made in this form are, to the best of myowledge, Uuocorr. and complete. Signed: /- Print Name: Howard Harris -. Technician Datej_4...-Li./2_•,:___ EmaiC tiowar.Har65 00ams.com Title: Sr. Engineering Based on the information piny COGCC Approved: pm. this pp ad for Per/nit-to-Drill complies with COGCC Rules and applicable orders and is hereby approved. A) Directorireof COGCC Data: .2 / r'. /�� Permit Number: / O O 8 1 T 4 Expiration Date: / 1 d1 /.)‹)1,. CONDITIONS APPRO AL, IF ANY: API NUMBER D5- am - I49L- SEE ATTACHED PAGES: CONDITIONS OF APPROVAL AND NOTICE TO OPERATORS CONDITIONS OF APPROVAL WILLIAMS BATTLEMENT MESA PA 423-5 24 HOUR SPUD NOTICE REQUIRED. E-MAIL: david.andrews@,state.co.us NEW GARFIELD COUNTY RULISON FIELD NOTICE TO OPERATORS. NOTE: ALL NOTICES SHALL BE GIVEN VIA E-MAIL. SEE ATTACHED NOTICE RESERVE PIT MUST BE LINED. CEMENT TOP VERIFICATION BY CBL REQUIRED OPERATOR MUST ENSURE 100 PERCENT SECONDARY CONTAINMENT FOR ANY VOLUME OF FLUIDS CONTAINED AT WELL SITE DURING DRILLING AND COMPLETION OPERATIONS. IF FLUIDS ARE CONVEYED VIA PIPELINE, OPERATOR MUST IMPLEMENT BEST MANAGEMENT PRACTICES TO CONTAIN ANY UNINTENTIONAL RELEASE OF FLUIDS.. FLOWBACK TO TANKS ONLY. SUBMIT A SECONDARY AND TERTIARY CONTAINMENT PLAN VIA SUNDRY NOTICE FORM 4 FOR THE TANKS. ATTN: CHRIS CANFIELD. OBTAIN APPROVAL OF THE PLAN PRIOR TO FLOWBACK. THE MOISTURE CONTENT OF ANY DRILL CUTTINGS IN A CUTTINGS PIT, TRENCH, OR PILE SHALL BE AS LOW AS PRACTICABLE TO PREVENT ACCUMULATION OF LIQUIDS GREATER THAN DE MINIMIS AMOUNTS. AT THE TIME OF CLOSURE, THE DRILL CUTTINGS MUST ALSO MEET THE APPLICABLE STANDARDS OF TABLE 910-1. THE PROPOSE.D SURFACE CASING IS MORE THAN 50' BELOW THE DEPTH OF THE DEEPEST WATER WELL WITHIN MILE OF THE SURFACE LOCATION WHEN CORRECTED FOR ELEVATION DIFFERENCES. THE DEEPEST WATER WELL WITHIN I MILE IS 205 FEET DEEP. THE OPERATOR SHALL COMPLY WITH RULE 321. AND IT SHALL BE THE OPERATOR'S RESPONSIBILITY TO ENSURE THAT THE WELLBORE COMPLIES WITH SETBACK REQUIREMENTS IN COMMISSION ORDERS OR RULES PRIOR TO PRODUCING THE WELL,. • • • NOTICE TO ALL OPERATORS DRILLING WILLIAMS FORK FORMATION WELLS iN GARFIELD COUNTY SURFACE CASING DEPTH AND MODIFICATION OF LEAKOFF TEST REQUIREMENTS JUNE 23, 2006 (Amends May 3, 2001 Notice) Based on the evaluation of the leakoff test data, drilling histories and reservoir parameters for Williams Fork Formation wells in Garfield County, the surface casing setting depth requirements specified in the September 22, 1998 policy statement amended May 3, 2001 will retrain in effect. Surface casing leakoff tests will be performed at the discretion of the operator with the exception of additional leakoff test requirements that may apply in the Grand Valley Field as required by an earlier notice. The following conditions are to be attached to all Permits -to -Drill for Williams Fork Formation or deeper gas wells in Garfield County: The following shall be required in the Rulison Field Overpressured Area: I . The Rulison Field Overpressured Area is defined as (see attached map): Township 6 South, Range 94 West, Sections 9, 15-23, 26-35 Township 7 South, Range 94 West, Sections 2-6, 8-10, 11, 15, 16 2. Surface casing must be set at a minimum depth of 1100 feet. The following shall be required in all fields in Garfield County: 1. Notify the COGCC Northwest Area Engineer 24 hours prior to commencing wellsite constnietion, setting of conductor pipe, well spudding, running all casing and any cementing operations so that COGCC staff may have the opportunity to witness, All notification shall be given via e-mail whenever possible. 2. Surface casing shall be set at a minimum depth of ten percent (10%) of the total depth of the well. 3. All lost circulation zones, gas kicks and water flows shall be reported to the COGCC Northwest Colorado Area Engineer as soon as feasible within twenty-four (24) hours of occurrence. 4. Significant lost circulation shall be defined as a mud loss in excess of 100 barrels and which requires shut down of operations for an hour or longer to pump lost circulation material and rebuild pit volume. The following data is required: depth, mud volume lost, whether or not a kick ensued, mud weights before and after lost circulation, and procedures used to regain circulation. 5. A significant kick shall be defined as one that is managed by shutting in the well to circulate out the kick or that is managed by going on choke and requiring an increase in mud weight exceeding 3/10ths of one pound per gallon to control. The following data is required: date and time of the kick, total depth of the well at the time of the kick, surface casing depth, size and cementing data, initial and final mud weights, shut in drill pipe pressure, shut in casing pressure, or any other pressure measurement or information used to determine the mud weight necessary to control the kick. 6. The depth, rate and mud weight on all water flows must be reported. 7. Upon completion of the primary cementing operation, the annular fluid level around the production casing shall be monitored for a minimum of 4 hours after cementing. Operators shall maintain the ability to monitor the annular fluid level and keep the hole full. The amount of mud that is used to keep the hole Full shall be recorded, If mud volumes in excess of twenty (20) barrels are necessary to keep the hole full, the loss of fluid shall be reported to the COGCC immediately. For all notifications contact COGCC Northwest Area Colorado Area Engineer Jaime Adkins via e-mail at: jaime.adkins@state.co.us or in urgent cases at 970-285-9000(0), 970-250-2440(C). Thank you for cooperating with these requirements. Brian Macke, Director / 12 7 5 8 9 3 2 1 10 16 15 T6S R94W 1 12 13 24 19 28 33 4 9 11 12 14 13 22 23 24 27 26 25 34 ( 35 36 1 T 7S 16 3 10 R94W 15 20 21 22 2 11 1 12 14 13 23 24 COGCC Notice to Operators (June 23, 2006) Rtilisan Overpressured Area (1100 feet of Surface Casing Required) • • • Objective Formation(s) Formation Code Spacing Order Number (s) 'FORN� State of Colorado <oto:,00 �t1 - Rev 12/05 \ / Oil and Gas Conservation Commission 1120 Liman Street, Suite 801. Denver, Colorado 110203 Phone: (303)894-2100 Fax,(303)894.2 t 09 �•'��>- �.• a:rod . Disposal Facility if arc/gas drilling, notify DEC 1 0 2008 APPLICATION FOR PERMIT TO: CHs String Size of Hole 1. X D:!'I, No Deepen, D Reenter, Recomplete and Operate Conductor ®�� 2. TYPE OF WELL 01LGAS X COALBED OTHER: Refiling Sidetrack Fee State Fee Stale Plugging Bond' SINGLE ZONE R MULTIPLE ZONESn COMMINGLE ZONES Complete the 3. Heine of Operator Williams Production RMT Company 4. COC -CC Operator Number 96850 Attachment Checkilst OP C000C 5. Address: 1515 Arapahoe St., Tower 3, #1000 APD Orig 8 1 Copy X 1.11 No City: Denver Stale: CO Zip: 80202 Form 2A X Bond this proposed 6. Contact Name: Howard Harris Phone: (303) 606-4086 Fax: (303) 629-82285 Well location plat X 7. Wei Name: Battlement Mesa Well Number PA 414-5 Topo map X 8.. tint Name (if apply: Unit Number. Mineral lease map X ,''- --- ,, 9. Proposed Total Measured Depth: 226'1 3 0 % Surface agrmt/Surety X WELL LOCATION INFORMATION 30 Day notice letter X Type: © Annular Preverttor © Double Ram 320 acres in ;J2 Unit. currently 5 existing 10. OtrOtr: NWSE Sec: 5 Twp. 7S Rng: 95W Meridian. 6th P.M. Deviated Drilling Plan X Closed Latitude: 39.464433° Longitude: 106.020179 Exception Location 1041612007 ,was waived, oris not required. Provide supporting documentation if consultation 306 CONSULTATION SHALL BE RETURNED UNAPPROVED. Local Government Designee(s). end at: statements made in this form are, Print Name: Howard Hams FFDFr- MAW. Request Date: /-/6/c�" Email: HpWxaro!tam_nd'y" ans.ggm Footage At Surface: 1784 ® 12299 1 [FEL 1 Exception Lac Waivers 11. Field Name: Parachute Field Number: 67350 H2S Contingency Plan 12. Ground Elevation: 5104 13. County: Garfield Federal Drilling Permit 14. GPS Data: Date of Measurement: 6/11/2008 PDOP Reading: <6.0 Instrument Operator's Name: J. Kirkpatrick 15. If well is: © Directional i♦ Horteontal (highly deviated), submit deviated drilling plan. FrNFSL FEUFW; Boeomhole Sec Twp Rng: SWSW Sec 5-T7S-R95W FMJFSL FEUFW. [606 1 1... 1675 1 1FWL Footage At Top of Prod Zone: 1606 1 1FSL 1 1675 I ® 16. Is beaten in a high density area (Rule 6036)? Ng Yes © No 17. Distance to the nearest building, public road, above ground utility or railroad: Approx 252' OE (Drk 111..12T) 18. Distance to Nearest Properly Line: Approx 301' SHL 19. Distance to nearest well permitted/completed in the same formation' Approx 295 From BHL Objective Formation(s) Formation Code Spacing Order Number (s) Unit Acreage Assigned to Well Unit Configurator (/22 SE/4, etc ) Williams Fork WMFK 440-36 320 S/2 (Fee Pooled) Yes Disposal Facility if arc/gas drilling, notify Spreading MI a pit permit (Rule 9056.) local fire officials. String Size of Hole Size of Casing Weight Per Foot Setting Depth I Sacks Cement I Cement Bottom Cement Top Conductor 24' 18' 21. Mineral Ownership: 0 22. Surface Ownership: CX 23. Is the Surface Owner also the 23a. If 23 is Yes: Is the Surface 236. If 23 is No: © Surface 24. Using standard 01,00', Sec, Fee State Fee Stale Federal III Federal Indian Surface Surety Lease # Indian ID# Mineral Owner? MI Owner(s) signature on Owners Agreement Attached Twp, Rng format enter entire Yes j X No the lease? 1 Yes 1.11 No 11111152,000 Suriace Bond 111111$5,000 Surface Bond wellsde is located (attach separate sheet/map 6 you prefer): Or ( 525,000 Blanket Surface upon which See Attached Bond this proposed mineral lease description 25. Distance to Nearest Mineral Lease Line: 606 26. Total Acres in Lease: 146.10 Based On the Information pravi1ereit p4 io narvmit•to-Drill complies with COGCC Rules and applicable orders and is he'ehy approved. J Difor of COGCC Date: a / I / r�yPermit Number: 200Q8 1 4 J Expiration Date: / d r. fir? e3 CONDITIO OF APPROVAL, IF ANY: COGCC Approved: API NUMBER 05- CNC. SEE ATTACHED PAGES: CONDITIONS OF APPROVAL AND NOTICE TO OPERATORS 27. Is H2S anticipated? • Yes © No 28. Will salt sections be encountered cluing drilling? 29. Will salt (>15,000 ppm TDS CI) or oil based muds be used 30. 1f questions 27 or 28 areyes, is this location in a sensitive 31. Mud disposal: r Offsite© Onsite Method: C Land Farming 11111Land NOTE: The use o. an earthen pit for Recompletion fluids requires If Yes, attach contin�gen„ plan. No No No If 28, 29 or 30 are "Yea" a pit permit © Other: Evaporation and Backfilling may be required. OM Yes I X during drilling? area (Rule 903)7 Yes X Yes Disposal Facility if arc/gas drilling, notify Spreading MI a pit permit (Rule 9056.) local fire officials. String Size of Hole Size of Casing Weight Per Foot Setting Depth I Sacks Cement I Cement Bottom Cement Top Conductor 24' 18' 4611 45 /,, 25 45Surface Surface 131/2' 95/8' 32.34 e 91 -rif0 CeculateCmttoSeam 1420}' Surface Production 7 7/6° 4 1/2' 11.64 42eri �,r,"Z, Cmt200' e'en uppernrast mesaverde sand /� .,...,?; .`•F,? ,''- --- .2%...•-.,i _....1 Stage Tool 32. BCP Equipment 33. Comments Type: © Annular Preverttor © Double Ram 320 acres in ;J2 Unit. currently 5 existing © Rotating Head 11111 None wells at this time, total planned wells 29 wells, permitting 16 Closed Loop Mud System 34. Initial Rule 306 Consultation tock place on (date) has been waived or if good faith elod did not result PERMIT SUBMITTED TO COGCC PRIOR TO COMPLIANCE I hereby certify that a complete permit package has to the best of rpy knowledge, . m t, and complete. Signed: 1041612007 ,was waived, oris not required. Provide supporting documentation if consultation 306 CONSULTATION SHALL BE RETURNED UNAPPROVED. Local Government Designee(s). end at: statements made in this form are, Print Name: Howard Hams in consultation. WITH RULE been sent to the applicable ..1.4)^.•.•4"`-, Title: Sr. Engineering Technician Date: /-/6/c�" Email: HpWxaro!tam_nd'y" ans.ggm Based On the Information pravi1ereit p4 io narvmit•to-Drill complies with COGCC Rules and applicable orders and is he'ehy approved. J Difor of COGCC Date: a / I / r�yPermit Number: 200Q8 1 4 J Expiration Date: / d r. fir? e3 CONDITIO OF APPROVAL, IF ANY: COGCC Approved: API NUMBER 05- CNC. SEE ATTACHED PAGES: CONDITIONS OF APPROVAL AND NOTICE TO OPERATORS CONDITIONS OF APPROVAL WILLIAMS BATTLEMENT MESA PA 414-5 24 HOUR SPUD NOTICE REQUIRED. E-MAIL: david.andrews@state.co.us NEW GARFIELD COUNTY RULISON FIELD NOTICE TO OPERATORS. NOTE: ALL NOTICES SHALL BE GIVEN VIA E-MAIL. SEE ATTACHED NOTICE RESERVE PIT MUST BE LINED. CEMENT TOP VERIFICATION BY CBL REQUIRED OPERATOR MUST ENSURE 100 PERCENT SECONDARY CONTAINMENT FOR ANY VOLUME OF FLUIDS CONTAINED AT WELL SITE DURING DRILLING AND COMPLETION OPERATIONS. IF FLUIDS ARE CONVEYED VIA PIPELINE, OPERATOR MUST IMPLEMENT BEST MANAGEMENT PRACTICES TO CONTAIN ANY UNINTENTIONAL RELEASE OF FLUIDS.. FLOWBACK TO TANKS ONLY. SUBMIT A SECONDARY AND TERTIARY CONTAINMENT PLAN VIA SUNDRY NOTICE FORM 4 FOR THE TANKS. ATTN: CHRIS CANFIELD. OBTAIN APPROVAL OF THE PLAN PRIOR TO FLOWBACK. THE MOISTURE CONTENT OF ANY DRILL CUTTINGS IN A CUTTINGS PIT, TRENCH, OR PILE SHALL BE AS LOW AS PRACTICABLE TO PREVENT ACCUMULATION OF LIQUIDS GREATER THAN DE MINIMIS AMOUNTS. AT THE TIME OF CLOSURE, THE DRILL CUTTINGS MUST ALSO MEET THE APPLICABLE STANDARDS OF TABLE 910-1. THE PROPOSED SURFACE CASING IS MORE THAN 50' BELOW THE DEPTH OF THE DEEPEST WATER WELL WITHIN (MILE OF THE SURFACE LOCATION WHEN CORRECTED FOR ELEVATION DIFFERENCES. THE DEEPEST WATER WELL WITHIN 1 MILE IS 205 FEET DEEP. THE OPERATOR SHALL COMPLY WITH RULE 321. AND IT SHALL BE THE OPERATOR'S RESPONSIBILITY TO ENSURE THAT THE WELLBORE COMPLIES WITH SETBACK REQUIREMEN'T'S IN COMMISSION ORDERS OR RULES PRIOR TO PRODUCING THE WELL. • • • • • NOTICE TO ALL OPERATORS DRILLING WILLIAMS FORK FORMATION WELLS IN GARFIELD COUNTY SURFACE CASING DEPTH AND MODIFICATION OF LEAKOFF TEST REQUIREMENTS JUNE 23, 2006 (Amends May 3, 2001 Notice) Based on the evaluation of the leakoff test data, drilling histories and reservoir parameters for Williams Fork Formation wells in Garfield County, the surface casing setting depth requirements specified in the September 22, 1998 policy statement amended May 3, 2001 will remain in effect. Surface casing leakoff tests will be performed at the discretion of the operator with the exception of additional leakoff test requirements that may apply in the Grand Valley Field as required by an earlier notice. The following conditions are to be attached to all Permits -to -Drill for Williams Fork Formation or deeper gas wells in Garfield County: The following shall be required in the Rulison Field Overpressured Area: 1. The Rulison Field Overpressured Area is defined as (see attached map): Township 6 South, Range 94 West, Sections 9, 15-23, 26-35 Township 7 South, Range 94 West, Sections 2-6, 8-10, 11, 15, 16 2. Surface casing must be set at a minimum depth of 1100 feet. The following shall be required in all fields in Garfield County: 1. Notify the COGCC Northwest Area Engineer 24 hours prior to commencing wellsite construction, setting of conductor pipe, well spudding, running all casing and any cementing operations so that COGCC staff may have the opportunity to witness, All notification shall be given via e-mail whenever possible. 2. Surface casing shall be set at a minimum depth of ten percent (10%) of the total depth of the well. 3. All lost circulation zones, gas kicks and water flows shall be reported to the COGCC Northwest Colorado Area Engineer as soon as feasible within twenty-four (24) hours of occurrence. 4. Significant lost circulation shall be defined as a mud loss in excess of 100 barrels and which requires shut down of operations for an hour or longer to pump lost circulation material and rebuild pit volume. The following data is required: depth, mud volume lost, whether or not a kick ensued, mud weights before and after lost circulation, and procedures used to regain circulation. 5. A significant kick shall be defined as one that is managed by shutting in the well to circulate out the kick or that is managed by going on choke and requiring an increase in mud weight exceeding 3/10ths of one pound per gallon to control. The following data is required: date and time of the kick, total depth of the well at the time of the kick, surface casing depth, size and cementing data, initial and final mud weights, shut in drill pipe pressure, shut in casing pressure, or any other pressure measurement or information used to determine the mud weight necessary to control the kick. 6. The depth, rate and mud weight on all water flows must be reported. 7. Upon cornpletion of the primary cementing operation, the annular fluid level around the production casing shall be monitored for a minimum of 4 hours after cementing. Operators shall maintain the ability to monitor the annular fluid level and keep the hole full. The amount of mud that is used to keep the hole full shall be recorded, If mud volumes in excess of twenty (20) barrels are necessary to keep the hole full, the loss of fluid shall be reported to the COGCC immediately. For all notifications contact COGCC Northwest Area Colorado Area Engineer Jaime Adkins via e-mail at: iaime.adkins@state.co.us or in urgent cases at 970-285-9000(0), 970-250-2440(C). Thank you for cooperating with these requirements. Brian Macke, Director 1 12 13 24 25 4 3 10 2 1 11 18 17 16 15 14 T6S`R94W 19 20 21 30 29 13 24 19 20 21 22 12 13 24 25 36 1 12 14 ! 13 23 24 COGCC Notice to Operators (June 23, 2006) Rulison Overpressured Area (1100 feet of Surface Casing Required) • • , Formation Code ��p ,,.. _........._.- Unit Acreage Assigned to Weil Unit Configuration (N12, SE/4. etc.) FORM Stale Colorado 440-36 320 S/2 (Fee Pooled) N� Yes C 2 7R. 12/05 i of Oil and Gas Conservation Commission 1120 Lincoln Street,Swx bet, Denver, Cotdaooae203 Phone: (303)894.2t00 far.(303)894.21ee t` �h' ' - "/" " ; a pit permit (Rule 905b.) 1 O DEC 2008 String APPLICATION FOR PERMIT TO: Weight Per Foot Setting Depth Sacks Cement 1. © Drill, 1.1 Deepen, 111 Re-enter, III Recomplete and Operate i♦ signature on Agreement Attached enter entire �J3�iICDa„/ No 2 TYPE OF WELL Yes 111111 No OTHER: Refiling SidetrackSINGLE - mineral lease description 25. Distance to Nearest Mineral Lease Line: 312 26. Total Acres in Lease: 146.10 Plum' 41/2' OIL 111 GAS X COALBED ZONER MULTIPLE ZONES n COMMINGLE ZONES cornpie:eme Attachment Checklist PMT Company 4. COGCC Operator Number 96850 OP COGCC 3. Name of operator. Williams Production 5. Address: 1515 Arapahoe St., Tower 3, 41000 APD Ong & 1 Copy X Zip: 50202 Form 2A X , ..:`'.*.. ., 32. BOFEquipment 33. Comments City: Denver State: CO ME Norte wells at this time, total planned wells 29 Type: © © Double Ram in s/2 Unit, currently 5 existing Phone: (303) 606-40E6 Fax: (303) 629-6285 Well location plat X Closed Loop Mud System 6. Contact Name: Howard Harris Well Number: PA 514.5 Topa map 6 in consultation. WITH RULE been sent to the applicable 7. Well Name: Battlement Mesa Unit Number: Mineral lease map X 8. Unit Name (B appa): 9. Proposed Total Measured Depth: .3863-11 t{"f Surface agrmL'Sulery X WELL LOCATION INFORMATION 30 Day notice letter X Rng: 95W Meridian: 6th P.M. Deviated Drilling Plan X 10. QlrOtr: NWSE Sec: 5 Twp:7S Exception Location Latitude: 39.4644161 Longitude: 106.020153 Request rk:ANA rn.x 12294 1 FEL j Exception Loc Waivers Footage At Surface: 1779 F51 Field Number 67350 H2S Contingency Plan 11. Field Name: Parachute County: Garfield Federal Drilling Permit 12. Ground Elevation: 5104 13. 14. GPS Data: Date of Measurement: 611/2008 PROP Reading: <6.0 Instrument Operators Name: J. Kirkpatrick deviated), submit deviated drilling plan. Bottomhole Sec Twp Rng: SWSW Sec 5.T7S-R95W 15. limit is: © Directional • Horizontal (highty !0I s& fAUFS: rilrlw Ftt.45L I 1636 1 ® 131'3 312- 1 ® 1636 1 IFM- Footage At Top of Prod Zone: 1313 317,- [ESL 1 16. Is location in a high density area (Rule 603b)? Ell Yes © No Distance to the nearest building, road, above ground utility or raikoad: Approx 252' OE (Drk Nt. =127') 17. public 19. Distance to nearest well permined/completed in the same formation: Approx 296' From Blit 18. Distance to Nearest Property Line: Approx 301' SHL 20. Objective Forrnatian(s) Formation Code 1..�reo,, or MOMS. n.........-..... Spacing Order Number (s) ,,.. _........._.- Unit Acreage Assigned to Weil Unit Configuration (N12, SE/4. etc.) Williams Fork WMFK 440-36 320 S/2 (Fee Pooled) Yes X Yes C _ Disposal Facility 11 air/gas drilling, notity Spreading 11111 an earthen pit tor Recompledon a pit permit (Rule 905b.) local fire officials. String Size of Hole Size of Casing Weight Per Foot Setting Depth Sacks Cement Cement Bottom Cement Top Conductor 21. Mineral Ownership: X Fee 22. Surface Ownership: CX Fee 23. Is the Surface Owner also the Mineral Owner? 23a. If 23 is Yes: Is the Surface Owner(s) 23b.1123 is No: Q Surface Owners 24. Using standard OrOtr, Sec, Twp, Rng format 111 Federal 111. Federal Indian Lease A I State 11111 State - Indian Sudar..e Surety ID% i♦ signature on Agreement Attached enter entire Yes l X No the lease? Yes 111111 No Bond ❑55,000 Surface Bond separate sheet/map 8 you prefer): or 625,000 Blanket Surface Bond El $2,000 Surface upon which this proposed wellsite is touted (attach See Attached mineral lease description 25. Distance to Nearest Mineral Lease Line: 312 26. Total Acres in Lease: 146.10 77/8' 27. Is H2S anticipated? 28. Will salt sections 29. Wil salt (»15,000 30. 11 questions 27 31. Mud disposal Method: NOTE: The use of II Yes, attach contingencv plan. No No No 1128, 29 or 30 are 'Yes" a pit permit Q Other. Evaporation and Backfilling may be required. 1111 Yes be encountered cluing ppm TOS CI) or oil or 28 are yes, is this Offsite 11111 Land Farming © No drilling? based muds be used location in a sensitive © Onsite • Land fields requires Ell Yes l A during drilling? area (Rule 903)? Yes X Yes C _ Disposal Facility 11 air/gas drilling, notity Spreading 11111 an earthen pit tor Recompledon a pit permit (Rule 905b.) local fire officials. String Size of Hole Size of Casing Weight Per Foot Setting Depth Sacks Cement Cement Bottom Cement Top Conductor 24' 15' 484 45' 25 45'Surface Surface 131/2' 9518' 32.3k 3413-1 GA Circulate Cm;toSorface 1431) Surface Production 77/8' 41/2' 11.64 .4%1 1 Cmt 207 above uppermos mesaverde sand *-e; . I .4.;:-. _ +."_-:, . '. _ . .. ...2 Stage Tool , ..:`'.*.. ., 32. BOFEquipment 33. Comments . . ,.. Annular Preventor 320 acres ME Norte wells at this time, total planned wells 29 Type: © © Double Ram in s/2 Unit, currently 5 existing © Rotating Head webs, permitting 16 Closed Loop Mud System 34 Initial Rule 306 Consultation look place on (date) has been waived or if good faith effort did not result PERMIT SUBMITTED TO COGCC PRIOR TO COMPLIANCE I hereby certify that a complete permit package has to the best of my ledge, trues correcl and complete. 10/16/2007 ,was waived, or is not required. Provide supporting documentation if consultation 3De CONSULTATION SHALL BE RETURNED UNAPPROVED. Local Governmer.l Designee(s), and all statements made in this form are, Print Name: Howard Harris in consultation. WITH RULE been sent to the applicable Signed: tele• 0' Fnnrnrrrinn Trrhnirirn Date: 1 712/p',$-- Email. How°. Hamrrc,LWmiiam3.cem Based on the information provi�(] crr,th�q/ 'nor Pirrmit-to-Drill complies with COGCC Rules and applicable orders and is hereby approved. COGCC Approved: f� �^^"' v' ' 1'"0-"s^1 _,D/k'D Director of COGCC Dale: Permit Number:(� Q /` Expiration Date: O- / r b (J.O I o CONDITIONS O A Kirit, $A Y: API NUMBER 05- of -t - l4o 111 `1 - oe SEE ATTACHED PAGES: CONDITIONS OF APPROVAL AND NOTICE TO OPERATORS CONDITIONS OF APPROVAL WILLIAMS BATTLEMENT MESA PA 514-5 24 HOUR SPUD NOTICE REQUIRED. E-MAIL: david.andrewsstate.co.us NEW GARFIELD COUNTY RULISON FIELD NOTICE TO OPERATORS. NOTE: ALL NOTICES SHALL BE GIVEN VIA E-MAIL. SEE ATTACHED NOTICE RESERVE PIT MUST BE LINED. CEMENT TOP VERIFICATION BY CBL REQUIRED OPERATOR MUST ENSURE 100 PERCENT SECONDARY CONTAINMENT FOR ANY VOLUME OF FLUIDS CONTAINED AT WELL SITE DURING DRILLING AND COMPLETION OPERATIONS. IF FLUIDS ARE CONVEYED VIA PIPELINE, OPERATOR MUST IMPLEMENT BEST MANAGEMENT PRACTICES TO CONTAIN ANY UNINTENTIONAL RELEASE OF FLUIDS.. FLOWBACK TO TANKS ONLY. SUBMIT A SECONDARY AND TERTIARY CONTAINMENT PLAN VIA SUNDRY NOTICE FORM 4 FOR THE TANKS. ATTN: CHRIS CANFIELD. OBTAIN APPROVAL OF THE PLAN PRIOR TO FLOWBACK. THE MOISTURE CONTENT OF ANY DRILL CUTTINGS IN A CUTTINGS PIT, TRENCH, OR PILE SHALL BE AS LOW AS PRACTICABLE TO PREVENT ACCUMULATION OF LIQUIDS GREATER THAN DE MINIMIS AMOUNTS. AT THE TIME OF CLOSURE, THE DRILL CUTTINGS MUST ALSO MEET THE APPLICABLE STANDARDS OF TABLE 910-1. TI -IE PROPOSED SURFACE CASING IS MORE THAN 50' BELOW THE DEPTH OF THE DEEPEST WATER WELL WITHIN IMILE OF TIIE SURFACE LOCATION WHEN CORRECTED FOR ELEVATION DIFFERENCES. THE DEEPEST WATER WELL WITHIN 1 MILE IS 205 FEET DEEP. THE OPERATOR SHALL COMPLY WITH RULE 321. AND IT SHALL BE THE OPERATOR'S RESPONSIBILITY TO ENSURE THAT THE WELLBORE COMPLIES WITH SETBACK REQUIREMENTS IN COMMISSION ORDERS OR RULES PRIOR TO PRODUCING THE WELL. • • • • • NOTICE TO ALL OPERATORS DRILLING WILLIAMS FORK FORMATION WELLS IN GARFIELD COUNTY SURFACE CASING DEPTH AND MODIFICATION OF LEAKOFF TEST REQUIREMENTS JUNE 23, 2006 (Amends May 3, 2001 Notice) Based on the evaluation of the leakoff test data, drilling histories and reservoir parameters for Williams Fork Formation wells in Garfield County, the surface casing setting depth requirements specified in the September 22, 1998 policy statement amended May 3, 2001 will remain in effect. Surface casing leakoff tests will be performed at the discretion of the operator with the exception of additional leakoff test requirements that may apply in the Grand Valley Field as required by an earlier notice. The following conditions are to be attached to all Permits -to -Drill for Williams Fork Formation or deeper gas wells in Garfield County: The following shall be required in the Rulison Field Overpressured Area: . The Rulison Field Overpressured Area is defined as (see attached map): Township 6 South, Range 94 West, Sections 9, 15-23, 26-35 Township 7 South, Range 94 West, Sections 2-6, 8-10, 11, 15, 16 2. Surface casing must be set at a minimum depth of 1100 feet. The following shall be required in all fields in Garfield County: 1. Notify the COGCC Northwest Area Engineer 24 hours prior to commencing wellsite construction, setting of conductor pipe, well spudding, running all casing and any cementing operations so that COGCC staff may have the opportunity to witness, All notification shall be given via e-mail whenever possible. 2. Surface casing shall be set at a minimum depth of ten percent (10%) of the total depth of the well. 3. All lost circulation zones, gas kicks and water flows shall be reported to the COGCC Northwest Colorado Area Engineer as soon as feasible within twenty-four (24) hours of occurrence. 4. Significant lost circulation shall be defined as a mud loss in excess of 100 barrels and which requires shut down of operations for an hour or longer to pump lost circulation material and rebuild pit volume. The following data is required: depth, mud volume lost, whether or not a kick ensued, mud weights before and after lost circulation, and procedures used to regain circulation. 5. A significant kick shall be defined as one that is managed by shutting in the well to circulate out the kick or that is managed by going on choke and requiring an increase in mud weight exceeding 3/10ths of one pound per gallon to control. The following data is required: date and time of the kick, total depth of the well at the time of the kick, surface casing depth, size and cementing data, initial and final mud weights, shut in drill pipe pressure, shut in casing pressure, or any other pressure measurement or information used to determine the mud weight necessary to control the kick. 6. The depth, rate and mud weight on all water flows must be reported. 7. Upon completion of the primary cementing operation, the annular fluid level around the production casing shall be monitored for a minimum of 4 hours after cementing. Operators shall maintain the ability to monitor the annular fluid level and keep the hole full. The amount of mud that is used to keep the hole full shall be recorded, If mud volumes in excess of twenty (20) barrels are necessary to keep the hole full, the loss of fluid shall be reported to the COGCC immediately. For all notifications contact COGCC Northwest Area Colorado Area Engineer Jaime Adkins via e-mail at: iaime.adkins@state.co.us or in urgent cases at 970-285-9000(0), 970-250-2440(C). Thank you for cooperating with these requirements. Brian Macke, Director 12 7 8 9 10 18 17 16 15 T6S R94W 2 1 11 12 14 13 23 24 COGCC Notice to Operators (June 23, 2006) RuIison Overpressured Area (1100 feet of Surface Casing Required) • • • cp. Objective Formation(s) rte..._..'_-.--_ . __'..._... Spacing Order Number (s) F t M State of Colorado Williams Fork =■,r+►n i�' 4 See 12,05 Oil and Gas Conservation Commission 11201.Incoln Street, Sone 901, Denver, Colorado 80203 Phone:(303)894.2103 Fax:(303)894-2109 i,••, :'' `eTe=l, sir 1 0 2008 APPLICATION FOR PERMIT TO: i? DEC 1 1. © Drrl,IIIDeepen, Sacks Cement Cement Bottom I. Re-enter, III Recompiete and Operate 484 2. TYPE OF WELLBetalin OIL❑ GAS X COALBED • g OTHER: Sidetrack _ Sunace Surety Piuggir2a _ SINGLE ZONER MULTIPLE ZONES) COMMINGLE ZONES Conpote the 3. Name or Operator. Williams Production RMT Company 4. COG x Operator Number 96850 Auacnment Checkt et OP COGCC 5. Address: 1515 Arapahoe St., Tower 3, M 1000 APD Oria & 1 Coq X or ( City: Denver State: CO Zig: 60202 Form 2A X 25. Distance to Nearest Mineral Lease Line: Approx 765' BHL 26. Total Acres in Lease: 6. Contact Name: Howard Harris Phone: (303) 606-4086 Fax: (303) 629-8285 Well location plat X 7. Well Name: Battlement Mesa Well Number: PA 324-5 Topo map X 8. Unit Name (H appl): Unit Number: Mineral lease map X Stage Tod 9. Proposed Total Measured Depth: 64Ii% Surface agrmt/Surety X WE LOCATION INFORMATION 30 Day notice tetter X IN None wells at this time, total panned welts 29 10. 000k: NWSE • Sec: 5 Twp: 7S Rng: 95W Meridian: 6th P.M. Deviated Drilling Plan X 1elle/2007 ,was Latitude: 39.464403° Longitude: 108.020135 Exception Location �( Tllie: Sr. Engineering Technician Date: /2( 1/ O " Email: Howard /501 s(iWiniams.com tkrfc9L Petro. Request Footage At Surface: 1774 FSL 2289 FEL Exception Loc Waivers 11. Field Name: Parachute Field Number: 67350 H2S Contingency Plan 12. Ground Elevation: 5104 13. County: Garfield Feder! Dnl/ing Permit 14. GPS Data: Date of Measurement: 6'11/2008 PROP Reading: t 6.0 Instrument Operator's Name: J. K rlgatrick 15. H well is: © Directional • Horizontal (highly deviated), submit deviated drilling plan. Bottomhole Sec Twp P.no: SESW Sec 5-T7S-1195W rwS: Gf LF': r s.l Footage At Top 01 Prod Zone: 1834 1 ® 11906 I FWL 1834 1 ! 11906 �FWL+ 16. Is location in a high density area (Rule 603b)? 1111 Yes Q No 17. Distance to the nearest building, pubic road, above ground utility or railroad: Approx 252' OE (Drk Ht =127) 18. Distance to Nearest Property Line: Approx 301' SHL 19. Distance to nearest wc'l permitted/completed in the same formation: Approx 605' From BHL cp. Objective Formation(s) Fonnaton Code rte..._..'_-.--_ . __'..._... Spacing Order Number (s) .. Uri Acreage Assigned to Well Unh Configuration (N/2, SE/4, etc.) Williams Fork WMFK 44036 320 : 5.2 (Fee Pooled) Spreading 11M a pa permit (Rule 905b.) local fire officials. String Sac of Hole Size of Casing Weight Per Foot Setting Depth Sacks Cement Cement Bottom Cement Tap Conductor 24' 18' 484 21. Mineral Ownersnl :: 8 Fes 22. Surface Ownership: CX Fee 23. is the Surface Owner also the Mineral Owner? 23a.1123 is Yes: Is the Surface Owner(s) 236.1123 is No: © Surface Owners 24. Using standard OtsOtr. Sec, Twp, Rng format Stale Stale = Federal Federal -_ Indian Indian Sunace Surety Lease 8 IDI IN signature on Agreement Attached enter entire Yes l X No the lease? I Yes - No III 62,000 Surface Bond 111 $5,000 Surface Bond weesite is located (attach separate sheet/map 11 you prefer): or ( 625,000 Banket Surface upon which See Attached Bond this proposed mineral lease description 25. Distance to Nearest Mineral Lease Line: Approx 765' BHL 26. Total Acres in Lease: 146.10 • 27. Is /125 anticipated? 11111 Yes Q No 26. WII salt sections be encountered duing drilling? 29. We salt (>15,000 ppm TDS CI) or oil based muds be used 30. II questions 27 or 28 are yes, is this location in a sensitive 31. Mud disposal: Dish Q Onsite Method: Land Farming 1111 Land NOTE: The use o an earthen pit for Recompletion fluids requires If Yes, attach con8ngen plan. No No No It 28, 29 or 30 are 'Yes' a pH permit © Other. Evaporation and Backfilling may be required, 0 Yes Q during drilling? am (Rule 903)? 1111 Yes X II.Yes Disposal Facility It airigas drilling, notiy Spreading 11M a pa permit (Rule 905b.) local fire officials. String Sac of Hole Size of Casing Weight Per Foot Setting Depth Sacks Cement Cement Bottom Cement Tap Conductor 24' 18' 484 45'-3 25 45' at Sndace Surface 131/2' 9 5/8' 32.3# ' 01 Cmuats Cml10 Surface _1544-51') Surface Production 7 7/8' 4 I/2' 11.6e .639P' , 0'Cmt20aowe uppermost messverde sand �, t:.:i�:.1 'i ..: ...-.,lla' la -l.:../11' - ..:e:,'.1:; Stage Tod 32. BOP Equipment 33. Comments Type: ( © Annular Preventor © Double Ram 320 acres in s2 Unit, currently 5 existing © Rotating Head IN None wells at this time, total panned welts 29 wells, permitting 16 Closed Loop Mud System 34. Initial Rule 306 Consultation took place on (date) has been waived cr if good faith effort did not result PERMIT SUBMITTED TO COGCC PRIOR TO COMPLIANCE I hereby certify that a complete permit package has to the best of my snowledge, , corre ,, and complete. Signed: 1elle/2007 ,was waived, or is not required. Provide supporting documentation if consultation 306 CONSULTATION SHALL BE RETURNED UNAPPROVED. Local Government Designee(s), and all statements made in this form are. Print Name: Howard Harris in consultation. WITH RULE been sent to the applicable �( Tllie: Sr. Engineering Technician Date: /2( 1/ O " Email: Howard /501 s(iWiniams.com Based on the information prop herein, Is ti Gon for ermit-to•Drill complies with COGCC Rules and applicable orders and is hereby approved. COGCC Approved: cu ) Director of COGCC Date. 1 1-4 / a L Permit Number: 0 0 8 8 1 5 0 Expiration Date: % 1\0 )'` 17 CONDITIONS (J6 APPROVAL, IF ANY: tt API NUMBER 05- O`-15- til„ I- ' -ciaa SEE ATTACHED PAGES: CONDITIONS OF APPROVAL AND NOTICE TO OPERATORS CONDITIONS OF APPROVAL WILLIAMS BATTLEMENT MESA PA 324-5 24 HOUR SPUD NOTICE REQUIRED. E-MAIL: david.andrews@state.co.us NEW GARFIELD COUNTY RULISON FIELD NOTICE TO OPERATORS. NOTE: ALL NOTICES SHALL BE GIVEN VIA E-MAIL, SEE ATTACHED NOTICE RESERVE PIT MUST BE LINED. CEMENT TOP VERIFICATION BY CBL REQUIRED OPERATOR MUST ENSURE 100 PERCENT SECONDARY CONTAINMENT FOR ANY VOLUME OF FLUIDS CONTAINED AT WELL SITE DURING DRILLING AND COMPLETION OPERATIONS. IF FLUIDS ARE CONVEYED VIA PIPELINE, OPERATOR MUST IMPLEMENT BEST MANAGEMENT PRACTICES TO CONTAIN ANY UNINTENTIONAL RELEASE OF FLUIDS.. FLOWBACK TO TANKS ONLY. SUBMIT A SECONDARY AND TERTIARY CONTAINMENT PLAN VIA SUNDRY NOTICE FORM 4 FOR THE TANKS. ATTN: CHRIS CANFIELD. OBTAIN APPROVAL OF THE PLAN PRIOR TO FLOWBACK. THE MOISTURE CONTENT OF ANY DRILL CUTTINGS IN A CUTTINGS PIT, TRENCH, OR PILE SHALL BE AS LOW AS PRACTICABLE TO PREVENT ACCUMULATION OF LIQUIDS GREATER THAN DE MINIMIS AMOUNTS. AT THE TIME OF CLOSURE, THE DRILL CUTTINGS MUST ALSO MEET THE APPLICABLE STANDARDS OF TABLE 910-1. THE PROPOSED SURFACE CASING IS MORE THAN 50' BELOW THE DEPTH OF THE DEEPEST WATER WELL WITHIN 1MILE OF THE SURFACE LOCATION WHEN CORRECTED FOR ELEVATION DIFFERENCES. THE DEEPEST WATER WELL WITHIN 1 MILE IS 205 FEET DEEP. THE OPERATOR SHALL COMPLY WITH RULE 321. AND IT SHALL BE THE OPERATOR'S RESPONSIBILITY TO ENSURE THAT THF, WELLBORE COMPLIES W1TH SETBACK REQUIREMENTS IN COMMISSION ORDERS OR RULES PRIOR TO PRODUCING THE WELL. NOTICE TO ALL OPERA"1 ORS DRILLING WILLIAMS FORK FORMATION WELLS IN GARFIELD COUNTY SURFACE CASING DEPTH AND MODIFICATION OF LEAKOFF TEST REQUIREMENTS JUNE 23, 2006 (Amends May 3, 2001 Notice) Based on the evaluation of the leakoff test data, drilling histories and reservoir paratneters for Williams Fork Formation wells in Garfield County, the surface casing setting depth requirements specified in the September 22, 1998 policy statement amended May 3, 2001 will remain in effect. Surface casing leakoff tests will be performed at the discretion of the operator with the exception of additional leakoff test requirements that may apply in the Grand Valley Field as required by an earlier notice. The following conditions are to be attached to all Permits -to -Drill for Williams Fork Formation or deeper gas wells in Garfield County: The following shall be required in the Rulison Field Overpressured Area: 1. The Rulison Field Overpressured Area is defined as (see attached map): Township 6 South, Range 94 West, Sections 9, 15-23, 26-35 Township 7 South, Range 94 West, Sections 2-6, 8-10, 11, 15, 16 2. Surface casing must be set at a minimum depth of 1 100 feet. The following shall be required in all fields in Garfield County: 1. Notify the COGCC Northwest Area Engineer 24 hours prior to commencing wellsite construction, setting of conductor pipe, well spudding, running all casing and any cementing operations so that COGCC staff may have the opportunity to witness, All notification shall be given via e-mail whenever possible. 2. Surface casing shall be set at a minimum depth of ten percent (10%) of the total depth of the well. 3. All lost circulation zones, gas kicks and water flows shall be reported to the COGCC Northwest Colorado Area Engineer as soon as feasible within twenty-four (24) hours of occurrence. 4. Significant lost circulation shall be defined as a mud loss in excess of 100 barrels and which requires shut down of operations for an hour or longerto pump lost circulation material and rebuild pit volume. The following data is required: depth, mud volume lost, whether or not a kick ensued, mud weights before and after lost circulation, and procedures used to regain circulation. 5. A significant kick shall be defined as one that is managed by shutting in the well to circulate out the kick or that is managed by going on choke and requiring an increase in mud weight exceeding 3/10ths of one pound per gallon to control. The following data is required: date and time of the kick, total depth of the well at the time of the kick, surface casing depth, size and cementing data, initial and final mud weights, shut in drill pipe pressure, shut in casing pressure, or any other pressure measurement or information used to determine the mud weight necessary to control the kick. 6. The depth, rate and mud weight on all water flows must be reported. 7. Upon completion of the primary cementing operation, the annular fluid level around the production casing shall be monitored for a minimum of 4 hours after cementing. Operators shall maintain the ability to monitor the annular fluid level and keep the hole full. The amount of mud that is used to keep the hole full shall be recorded, If mud volumes in excess of twenty (20) barrels are necessary to keep the hole full, the loss of fluid shall be reported to the COGCC immediately. For all notifications contact COGCC Northwest Area Colorado Area Engineer Jaime Adkins via e-mail at: jaime.adkins(@,state.co.us or in urgent cases at 970-285-9000(0), 970-250-2440(C). Thank you for cooperating with these requirements. Brian Macke, Director 12 5 3 2 1 10 11 12 14 13 12 13 24 9 T 7S R94.W 16 15 24 25 36 1 12 14 ! 13 COGCC Notice lo Operators (June 23, 2006) Rulison Overpressured Area (1100 feet of Surface Casing Required) • • • FORM State of Colorado 2 RINDS Oil and Gas Conservation Commission �l 1120 Linos In Steel, Suite S01, Denver, Colorado 80203 Phare: (3031894.2100 Fac(303)804-2109 APPLICATION FOR PERMIT TO: 1. Drill, ❑ Deepen, Reenter, Recomplete and Operate 2. TYPE OF WELL Refiling OIL GAS X COALBED OTHER: Sidetrack ZONE MULTIPLE ZONES[ -1 COMMINGLE ZONES(- or L*C ~n105 Spacing Order Number (s) DEC r�1, 0 2008 P1u9114. C!!'4'+ Unit Configuration (1-1/2, SE/4, etc.) Williams Fork 3. Name of Operator Williams Production RMT Company 4. COGCC Operator Number 96850 . 5. Address: 1515 Arapahoe St., Tower 3, 01000 City: Denver 6. Contact Name: Howard Harris Complete the Atlxhment Checktst OP CCGCC APD Orig 81 Copy x State: CO 7. Well Name: Battlement Mesa Zip: 80202 Phone: (303)606.4086 Fax: (303) 629-8285 8. Unit Name (it appl): 9. Proposed Total Measured Depth: We Number PA 34-5 Form 2A X Well location plat x Tope map X Unit Number: 10. 0500: NWSE Latitude: 39.464421° WELL LOCATION INFORMATION Sec: 5 Twp: 7S Rng: 95W Meridian: Longitude: 108.020108 MAW, Footage At Surface: 1781 11. Field Name: Parachute 2262 tFEL 12. Ground Elevation: 5104 13. County: Garfield Field Number. Mineral lease map x Surface agrmUSurety X 6th P.M. 67350 30 Day notice letter X Deviated Drilling Plan Exception Location Request Exception Loc Waivers H2S Contingency Plan Federal Dr;1ng Permit 14. GPS Data: Date of Measurement 6/11/2005 PDOP Reading: e 6.0 Instrument Operator's Name: J. kirkpatrtck 15. II well is: aX Directional ED Horizontal (highly deviated), ireA Si Footage At Top of Prod Zone: Dow 12049 submtt deviated drilling plan. Bottomhole Sec Twp Rng: FMS,61 FST. 11060 SV/SE Sec 5-T7S-1195W 12049 r1> FEL 16. Is location in a high density area (Rule 6036)? O Yes r---1 No 17. Distance le the nearest building, public road, above ground utility or railroad; Approx 252' 0E (Cris Ht.. 1271 16. Distance to Nearest Property Line: Approx 301' SHL 19. Distance to nearest we permitted/completed in Fre same !ornation: Approx 339' From BHL Objective Formation(s) Formation Code Spacing Order Number (s) Unit Acreage Assened to Weil Unit Configuration (1-1/2, SE/4, etc.) Williams Fork WMFK 440-36 320 S/2 (Fee Pooled) Onsite muds in a sensitive III fluids be used during drilling?_ area (Rule 903)7 Land Spreading requires a pit permit (Rule 1.111 9056.) _ Disposal II Yes Yes Facility arc/gas drilling. X not local fire officials. String Size of Hole Size of Casing I Weight Per Foot Setting Depth Sacks Cement Cement Bottom Cement Top Conductor 24' 21. Mineral Ovmership: ©Fee 22. Surface 0wnershp: © 23. Is the Surface Owner at o the 23a. 11 23 is Yes: Is the Surface 238.1123 is No: © Surface 24. Using standard OtrOtr, Sec, Twp, • State Fee I. State No Federal NI Federal Indian Surface Surety Lease 8 ----. Indian ID0 Mineral Owns 7 EllYes Owner(s) signature on Owrners Agreement Attached Rng format enter entire I X No the lease? 1 Yes IM No M $2,000 Surface Bond 155,000 Surface Bond website is located (attach separate sheet/map if you prefer): or 1 $25,000 Blanket Surface Bond upon which this proposed See Attached mineral lease description 25. Distance to Nearest Mineral Lease tine: Approx 200' BHL 26. Total Acres in Lease: 223.95 27. Is H2S anticipated? I 28. Wi8 salt sections be encountered Yes duing © drilling? No if Yes, .1 attach contn�genvy Yes L X plan. No No No If 28, 29 or 30 are "Yes" a pit permit may be required. © Other: Evaporation and Backfiiling 29. Will sea (>15,000 30. If questions 27 or 31. Mud disposal: Method: NOTE: The use of an earthen ppm TDS 28 are I. M CI) or o/ based yes, is this location Offsite © Land Farming pa for Recompiedon Onsite muds in a sensitive III fluids be used during drilling?_ area (Rule 903)7 Land Spreading requires a pit permit (Rule 1.111 9056.) _ Disposal II Yes Yes Facility arc/gas drilling. X not local fire officials. String Size of Hole Size of Casing I Weight Per Foot Setting Depth Sacks Cement Cement Bottom Cement Top Conductor 24' 18' 486 45' 25 45' Surface Surlace 131/2' 95/8' 32.38 4 Circulate CmtleSudace '14ASurface Production 7 7/8' 41/2' 11.68 a D Cm1200' above uppermamr mesaverde sand :'• k~'..:.' .:... , t Stage Tool ."... 32. BOP Equipment Type: 33. Comments © Annular Preverdor © 320 acres in a/2 Double Ram © Rotating Head III Unit, currently 5 existing wells, permitting 16 wells None at this time, total planned wells 29 Closed Loop Mud System 34 Initial Rule 306 Consultation took place on (date) 10/16/2007 ,was waived, or is not required. Provide suppo„ng documentation it consultation has been waived or it good faith effort did not result in consuhation. PERMIT SUBMITTED TO COGCC PRIOR TO COMPLIANCE WITH RULE 306 CONSULTATION I hereby certify that a complete permit package has been sent t0 the applicable Local Govemment t0 the best of my k ledge, true,,co/pg01, complete. Signed: / C,�/1r-� Print Name: Howard SHALL BE RETURNED UNAPPROVED. Designee(s), and all stalemerts made in This form are. Harris -and . Title: Sr. Engineering Technician Date: / L/'// oy Email. Howani.Hards9W Mnamaygm Based on the information provIdedpn, this ptir�rtloyjor_ eerrrl(t I:r:n complies with COGCC Rules and applicable orders and is hereby approved. COGCC Approved: CGjx(` �I/)�._�/�.'��//V�V� APi NUMBER 05- pHs- t'61a5 - UO2 /'► o 4 Director of COGCC Date: a / v a.c:F Permit Number: g 0 a a 1 6 CONDI N OF APPROVAL, IF ANY: SEE ATTACHED PAGES: CONDITIONS OF APPROVAL AND NOTICE TO OPERATORS Expiration Date: // (o /el.ald CONDITIONS OF APPROVAL WILLIAMS BATTLEMENT MESA PA 34-5 24 HOUR SPUD NOTICE REQUIRED. E-MAIL: david.andrewsstate.co.us NEW GARFIELD COUNTY RULISON FIELD NOTICE TO OPERATORS. NOTE: ALL NOTICES SHALL BE GIVEN VIA E-MAIL. SEE ATTACHED NOTICE RESERVE PIT MUST BE LINED. CEMENT TOP VERIFICATION BY CBL REQUIRED OPERATOR MUST ENSURE 100 PERCENT SECONDARY CONTAINMENT FOR ANY VOLUME OF FLUIDS CONTAINED AT WELL SITE DURING DRILLING AND COMPLETION OPERATIONS. IF FLUIDS ARE CONVEYED VIA PIPELINE, OPERATOR MUST IMPLEMENT BEST MANAGEMENT PRACTICES TO CONTAIN ANY UNINTENTIONAL RELEASE OF FLUIDS.. FLOWBACK TO TANKS ONLY. SUBMIT A SECONDARY AND TERTIARY CONTAINMENT PLAN VIA SUNDRY NOTICE FORM 4 FOR THE TANKS. ATTN: CHRIS CANFIELD. OBTAIN APPROVAL OF THE PLAN PRIOR TO FLOWBACK. THE MOISTURE CONTENT OF ANY DRILL CUTTINGS IN A CUTTINGS PIT, TRENCH, OR PILE SHALL BE AS LOW AS PRACTICABLE TO PREVENT ACCUMULATION OF LIQUIDS GREATER THAN DE MINIMIS AMOUNTS. AT THE TIME OF CLOSURE, THE DRILL CUTTINGS MUST ALSO MEET THE APPLICABLE STANDARDS OF TABLE 910-1. THE PROPOSED SURFACE CASING IS MORE THAN 50' BELOW THE DEPTH OF THE DEEPEST WATER WELL. WITHIN (MILE OF THE SURFACE LOCATION WHEN CORRECTED FOR ELEVATION DIFFERENCES. THE DEEPEST WATER WELL WITHIN 1 MILE IS 205 FEET DEEP. THE OPERATOR SHALL COMPLY WITH RULE 321. AND IT SHALL BE THE OPERATOR'S RESPONSIBILITY TO ENSURE THAT THE WELLBORE COMPLIES WITH SETBACK REQUIREMENTS IN COMMISSION ORDERS OR RULES PRIOR TO PRODUCING THE WELL. • • NOTICE TO ALL OPERATORS DRILLING WILLIAMS FORK FORMATION WELLS IN GARFIELD COUNTY SURFACE CASING DEPTH AND MODIFICATION OF LEAKOFF TEST REQUIREMENTS JUNE 23, 2006 (Amends May 3, 2001 Notice) Based on the evaluation of the leakoff test data, drilling histories and reservoir parameters for Williams Fork Formation wells in Garfield County, the surface casing setting depth requirements specified in the September 22, 1998 policy statement amended May 3, 2001 will remain in effect. Surface casing leakoff tests will be performed at the discretion of the operator with the exception of additional leakoff test requirements that may apply in the Grand Valley Field as required by an earlier notice. The following conditions are to be attached to all Permits -to -Drill for Williams Fork Formation or deeper gas wells in Garfield County: The following shall be required in the Rulison Field Overpressured Area: 1. The Rulison Field Overpressured Area is defined as (see attached map): Township 6 South, Range 94 West, Sections 9, 15-23, 26-35 Township 7 South, Range 94 West, Sections 2-6, 8-10, 11, 15, 16 2. Surface casing must be set at a minimum depth of 1 100 feet. The following shall be required in all fields in Garfield County: 1. Notify the COGCC Northwest Area Engineer 24 hours prior to commencing wellsite constriction, setting of conductor pipe, well spudding, running all casing and any cementing operations so that COGCC staff may have the opportunity to witness, All notification shall be given via e-mail whenever possible. 2. Surface casing shall be set at a minimum depth of ten percent (10%) of the total depth of the well. 3. All lost circulation zones, gas kicks and water flows shall be reported to the COGCC Northwest Colorado Area Engineer as soon as feasible within twenty-four (24) hours of occurrence. 4. Significant lost circulation shall be defined as a mud loss in excess of 100 barrels and which requires shut down of operations for an hour or longer to pump lost circulation material and rebuild pit volume. The following data is required: depth, mud volume lost, whether or not a kick ensued, mud weights before and after lost circulation, and procedures used to regain circulation. 5. A significant kick shall be defined as one that is managed by shutting in the well to circulate out the kick or that is managed by going on choke and requiring an increase in mud weight exceeding 3/10ths of one pound per gallon to control. The following data is required: date and time of the kick, total depth of the well at the time of the kick, surface casing depth, size and cementing data, initial and final mud weights, shut in drill pipe pressure, shut in casing pressure, or any other pressure measurement or information used to determine the mud weight necessary to control the kick. 6. The depth, rate and mud weight on all water flows must be reported. 7. Upon completion of the primary cementing operation, the annular fluid level around the production casing shall be monitored for a minimum of 4 hours after cementing. Operators shall maintain the ability to monitor the annular fluid level and keep the hole full. The amount of mud that is used to keep the hole full shall be recorded, If mud volumes in excess of twenty (20) barrels are necessary to keep the hole full, the loss of fluid shall be reported to the COGCC immediately. For all notifications contact COGCC Northwest Area Colorado Area Engineer Jaime Adkins via e-mail at: jaime.adkins@state.co.us or in urgent cases at 970-285-9000(0), 970-250-2440(C). Thank you for cooperating with these requirements. Brian Macke, Director 3 2 1 21 28 33 22 23 27 1 26 34 4 3 35 2 11 24 25 36 1 12 14 1 13 24 19 ; 20 1 21 22 23 ! 24 i 1 COGCC Notice to Operators (June 23, 2006) Rulison Overpressured Area (1100 feet of Surface Casing Required) • • •