RECORD OF PROCEEDINGS

Transcription

1 October 29, 2018 The Colorado Oil and Gas Conservation Commission ( COGCC or Commission ) met on October 29-30, 2018, at the COGCC Office Wasatch Hearing Room at 1120 Lincoln Street, STE 801, Denver, CO Monday, October 29, :02 am Roll Call of Commissioners: Present: John Benton Howard Boigon Ashley Ager Bill Hawkins Kent Jolley Karin McGowan Erin Overturf Chair Vice Chair Commissioner Commissioner Commissioner Commissioner Commissioner Staff present: Kyle Davenport Julie Prine Assistant Attorney General Secretary 9:04 am Public Comment: The Commission heard general public comments. 10:15 am 10:43 am Commissioner Randall arrives Report from the Executive Director s Office SCORP (Statewide Comprehensive Outdoor Recreation Plan) update included economic impact numbers; Outdoor Recreation economy contributed 62 billion to Colorado s economy in 2017 and consumer spending contributed 35 billion (10% of CO GDP). Outdoor Recreation accounts for over half a million jobs in Colorado and 84 million out of state visitors were attracted which contributed 1.25 million in state and local tax revenues. Colorado Water Conservation Board is working with the 7 states along the Colorado River Basin to plan for drought. This is year 19 of drought and hydrology does not indicate that it is improving. * Commission proceedings began at 9:00 am MDT on October 29, Time stamps provided throughout these minutes reflect the approximate time of day that the agenda item was addressed by the Commission. The audio recording of this Hearing can be found at Page 1 of 52

2 10:53 am Introduced Mike Leonard as Acting Director while Director Murphy is out on maternity leave. Commissioner Hawkins extends gratitude to Greg Deranleau for speaking at a water conference exploring ways to recycle and reuse produced and flow-back water and use less fresh water. Commissioner Hawkins also asked about the two Comments about Form 2A in Aurora Highlands and First Creek Ranch. Ms. Prine reports that Extraction has requested that they are delayed so that process with stakeholders can continue. Greg Deranleau can provide additional details if anyone is interested. Mike Leonard would like to make a clarification regarding public comments about Conoco Philips fire. Two weeks ago Friday, Conoco Phillips had a tank fire which was quickly put out by the fire department and reported as required. On Sunday, they had an upset condition where some liquids came in contact with an ECD (Emission Control Device) and caused black smoke (which the fire department was called for). There was no spill. They also had a safety moment companywide in the area to address concerns. Mike Leonard would like to provide an update on the tank explosion last Saturday about 3 miles east of Briggsdale on Mallard Exploration site. Wells have not been drilled. They were constructing a tank battery and using used tanks on the site. Workers were warned that tanks were hot (vapors in the tanks) and they were to treat the tanks as if they had fluids in them. An employee used a power tool within the proximity of the tank and that caused the explosion. OSHA is on the scene and OGCC will cooperate with the investigation. Report from the Director No Director Report 10:53 am Report from the Secretary 179 applications for December cycle; continuing upward trend Commissioners can request state s, have paperwork available Docket No payment of proceeds case withdrawn on agenda) Piceance Basin order the director and stakeholders changed some of the language, will be an updated order provided after lunch break. Consent agenda typos will be corrected 10/3 Minutes have been corrected 10:55 am Commissioner Comments: Commissioner Ager o Concern based on public comment: Are Swan or Tower pads on the consent agenda? Mr. Leonard: They are not and the Swan well was rejected for technical reasons. o Concern based on public comment: Is Rocky Mountain Arsenal grounds drilling on consent agenda? Mr. Leonard: No. Page 2 of 52

3 o Concern based on public comment: Are the 5 proposed sites in Commerce City on the consent agenda today? Ms. Prine & Mr. Leonard: Not sure, will find out and get back to you. o Two hearings ago, there was public comment about an unpermitted flaring incident at the Triple Creek site. Mr. Leonard has been in touch with Mr. Lewis who will be here in December to speak. It will be on Staff Report. o Is there an update on the SOGRE report? Ms. Prine states that it is still being reviewed internally and Director Murphy will be providing a report regarding this at the next commissioner hearing. Commissioner Overturf asked Ms. Prine to clarify if staff was accelerating applications due to the election and Proposition 112 (based on multiple public comments). Ms. Prine reports that it is business as usual and notes that there are more applications and the OGCC is fully staffed making it possible to process more in one hearing cycle that 6 months ago. Commissioner Randall also notes that Director Murphy has directed staff to handle permits as they would in the normal course of business without regard to the pending election or the backlog. Commissioner Hawkins asked if Commissioners might consider a basin-wide Order in DJ Basin to lower number of applications in the region. Commissioner Overturf (regarding public comment) asked about timing for upcoming School Setback Rulemaking scheduled for December hearing. There is still a stakeholder meeting this Wednesday. 11:09 am Approval of Minutes Motion: Commissioner Hawkins moved to approve minutes for September 2018 hearings. Second: Commissioner Ager Yea: Ager, Benton, Hawkins, Jolley, McGowan, Overturf & Randall Abstain: Boigon Nay: None Recused: None Result: Motion passed (7-0). Motion: Commissioner Boigon moved to approve minutes for special October 3 rd hearing as amended. Second: Commissioner Hawkins Yea: Ager, Benton, Boigon, Hawkins, Jolley, McGowan, Overturf & Randall Abstain: Nay: None Recused: None Result: Motion passed (8-0). 11:11 am General Consent Agenda: Secretary Prine called out the following mistakes on the agenda Group F, DN continued to future hearing Page 3 of 52

4 Group E, all following Docket Numbers should begin 1810, not 1809 as reflected in agenda: , , , , , , , , , Commissioner Boigon recused himself from the following: o Group B, DN , , , (Axis & Extraction) o Group H, DN , (Conoco) o Group J, DN , (8 North) Commissioner Ager discloses that BP America has some applications in Group D; she does sometimes work with BP, but not anything related to the spacing units on the consent agenda and she is able to be impartial. No rebuttals. Commissioner Benton recused himself from Group L, DN (Caerus). Motion: Commissioner Jolley moved to approve Consent Agenda Groups A-T (those with no recusals, listed above). Second: Commissioner Boigon Yea: Ager, Benton, Boigon, Hawkins, Holton, Jolley, McGowan & Abstain: None Overturf Nay: None Recused: None Result: Motion passed (8-0). Motion: Commissioner Hawkins moves to approve Consent Agenda Group L, DN Second: Commissioner Jolley Yea: Ager, Boigon, Hawkins, Holton, Jolley, McGowan & Overturf Abstain: None Nay: None Recused: Benton Result: Motion passed (7-0). Commissioner Hawkins to approve remaining Consent Agenda matters (DN Motion: , , , , , , , Second: Commissioner Jolley Yea: Ager, Benton, Hawkins, Holton, Jolley, McGowan & Overturf Abstain: None Nay: None Recused: Boigon Result: Motion passed (7-0). 11:19 am Enforcement Consent Agenda: There are no conflicts. Page 4 of 52

5 Commissioner Ager discloses that there are multiple references to LT Environmental and would like to clarify that she works for this company but has not worked on this project or with this client. (Dockets ) No rebuttals. Commissioner Overturf asked about updating financial assurance. Commissioner Randall responded that there should be recommendations made at the December hearing, based on conclusions made by the stakeholder group that has been meeting on the issue. Motion: Commissioner Hawkins moved to approve Enforcement Consent Agenda Group A Second: Commissioner Ager Yea: Ager, Benton, Boigon, Hawkins, Jolley, McGowan, Overturf & Randall Abstain: None Nay: None Recused: None Result: Motion passed (8-0). 11:40 am , Entek GRB LLC (Operator No ) Enforcement matter: Staff: Steven Mah, Enforcement Officer Pursuant to Rule 522.e.(2), Staff requests approval of a Stipulated OFV assessing a $61,330 penalty for a violation of Rule 326 (Mechanical Integrity Testing) at the Battle Mountain Federal #14-15 well in Moffat County. Staff wants to claim bond. Commissioners are concerned that these wells are going to become orphaned and potentially want to put a lien on the property. Also concerned about financial assurance going forward. Motion: Commissioner McGowan moved to approve the order finding violation Second: Commissioner Hawkins Yea: Ager, Benton, Boigon, Hawkins, Jolley, McGowan, Overturf & Randall Abstain: None Nay: None Recused: None Result: Motion passed (8-0). 11:59 pm Docket No RC Operating LLC (Operator No ) Docket No , Fortigen Resources, LLC (Operator No ) Staff: Jeremy I. Ferrin, Enforcement Supervisor David A. Beckstrom, Assistant Attorney General Pursuant to Rule 522.e.(1), Staff requests approval of an AOC with 2RC imposing a $73,600 penalty for a 368-day violation of Rule 312.a. (COGCC Form 10. Certificate of Clearance and/or Change of Operator). Page 5 of 52

6 Attorneys: Julia E. Rhine Request for an order granting a waiver of the Rule 707.a. requirement for additional financial assurance for "excess inactive wells" and granting a variance to the mechanical integrity testing requirements of Rule 326.c. 12:22 pm pm 1:45 pm 1:46 pm Break: 5min The Commission requests that the parties come back tomorrow with an alternate plan focusing on financial assurance and commitment to report on progress at the January hearing. Motion: Commissioner McGowan moved to approve the AOC for 2RC ( ). Second: Commissioner Overturf Yea: Ager, Benton, Boigon, Hawkins, Jolley, McGowan, Overturf & Randall Abstain: None Nay: None Recused: None Result: Motion passed (8-0). Lunch Break/Executive Session Motion: Commissioner Jolley moved to enter into Executive Session. Second: Commissioner Randall Yea: Ager, Benton, Boigon, Hawkins, Jolley, McGowan, Overturf & Randall Abstain: None Nay: None Recused: None Result: Motion passed (8-0). 2:30 pm Motion: Commissioner Hawkins moved to exit into Executive Session. Second: Commissioner McGowan Yea: Ager, Benton, Boigon, Hawkins, Jolley, McGowan, Overturf & Randall Abstain: None Nay: None Recused: None Result: Motion passed (8-0). No decisions were made nor votes taken during the Executive Session. 2:35 pm General Hearing: Secretary Prine read a statement by Director Murphy in support of the Noble Comprehensive Drilling Plan (CDP). Docket No , Weld County Applicant: Noble Energy, Inc. (Operator No ) Page 6 of 52

7 Attorneys: Hearing Officer: Michael J. Wozniak, James Martin & Jillian Fulcher James P. Rouse Establishing and approving a Comprehensive Drilling Plan in accordance with the requirements of Commission Rule 216 for the Application Lands, for the comprehensive development and operation of the Niobrara, Fort Hays, Codell, and Carlile Shale formations Motion: Commissioner Boigon moved to approve docket No Second: Commissioner Randall Yea: Ager, Benton, Boigon, Hawkins, Jolley, McGowan, Overturf & Randall Abstain: None Nay: None Recused: None Result: Motion passed (8-0). 3:22 pm Break: 5min 3:27 pm Docket No , Delta, Garfield, Mesa, and Rio Blanco Counties Colorado Oil and Gas Conservation Commission staff, having coordinated with various stakeholders, seeks an order to establish Piceance Basin drilling and spacing requirements for the Williams Fork Formation and Iles Formation (of the Mesa Verde Group) in portions of Delta, Garfield, Mesa, and Rio Blanco counties, as follows: a downhole density equivalent to one well per ten acres, a 100-foot downhole setback at northern and southern unit boundaries or lease lines, a 600-foot downhole setback at eastern and western unit boundaries or lease lines, and no more than one multi-well pad located in any given quarter-quarter. Commissioners Benton and Jolley recuse themselves due to conflicts of interest. The Commission heard from Stuart Ellsworth and Jane Stanczyk of the COGCC, Counsel, COO of Laramie Energy, Michael Jewell and 2 witnesses of Terra Energy Partners (TEP). Director Murphy worked with TEP and Laramie to find agreeable language. Page 7 of 52

8 TEP reluctantly withdraws their protest as they feel they have been heard; 5:03 pm Record is closed. 5:15 pm 5:20 pm 5:03 pm Motion: Commissioner Hawkins motions to approve the order with the modifications provided by staff (version 3). Second: Commissioner Overturf Yea: Ager, Boigon, Hawkins, McGowan, Overturf & Randall Abstain: None Nay: None Recused: Benton & Jolley Result: The motion passed (6-0). Motion: Commissioner McGowan moves to adjourn until 9:00am, Tuesday 10/30/18 Second: Commissioner Hawkins Yea: Ager, Benton, Boigon, Hawkins, Abstain: None Jolley, McGowan & Overturf Nay: None Recused: None Result: Motion passed 7-0 Page 8 of 52

9 October 29-30, 2018 The Colorado Oil and Gas Conservation Commission ( COGCC or Commission ) met on October 29-30, 2018, at the COGCC Office Wasatch Hearing Room at 1120 Lincoln Street, STE 801, Denver, CO Tuesday, October 30, :00 am Roll Call of Commissioners: Present: John Benton Howard Boigon Ashley Ager Bill Hawkins Kent Jolley Karin McGowan Erin Overturf Chair Vice Chair Commissioner Commissioner Commissioner Commissioner Commissioner Staff present: Julie Murphy Kyle Davenport Julie Prine Director Assistant Attorney General Secretary 9:06 am Docket No , Fortigen Resources, LLC (Operator No ) Attorneys: Julia E. Rhine Request for an order granting a waiver of the Rule 707.a. requirement for additional financial assurance for "excess inactive wells" and granting a variance to the mechanical integrity testing requirements of Rule 326.c. Motion: Vice Chair Hawkins moves to approve the order as revised including slight verbal modifications. Second: Commissioner Ager Yea: Ager, Benton, Boigon, Hawkins, Abstain: None Jolley, McGowan & Overturf Nay: None Recused: None Result: Motion passed 7-0 Page 9 of 52

10 9:08 am Order No SWN URU Review This is an informational update, and any decisions will be continued to January hearing. It is the hope the mineral rights in question will be sold by then. 9:33 am Order No Great Western Pierce South URU Review Informational update. 9:45 am General Hearings: Docket No Pooling and Hearing Process Rulemaking AAG Davenport reiterated scope of rulemaking as defined in the Notice. Secretary Prine provided draft rules with review comments of all outstanding issues from 10/3 Special Hearing. The Commission worked through each comment, making some amendments to rules. Commissioner Overturf requested a separate rulemaking to update Rule 508, with stakeholder discussions beginning in January 2019, and asked staff to report back to Commission next March. Roll Call Vote: Does the commission agree to the following wording of Rule 530.a: The Commission must receive evidence that owners were tendered a reasonable offer to lease or participate no less than sixty (60) days prior to an involuntary pooling hearing. An application for involuntary pooling may be filed concurrently with the sending of a reasonable offer to lease or participate. Yea: Ager, Hawkins, Jolley, McGowan & Overturf Nay: Benton, Boigon Abstain: None Result: Motion passed 5-2 Recused: None Vote: Will the commission accept staff proposed changes of Rule 509.B.ii. Yes to leave as is, No to make changes. Yea: Benton, Boigon, Hawkins Nay: Ager, Jolly, McGowan & Overturf Abstain: None Result: Motion failed 4-3 Recused: None 12:45 pm 1:20 pm Lunch Return from Lunch, continue Pooling and Hearing Process Rulemaking Rule 509 redrafting. Page 10 of 52

11 2:32 pm 2:42 pm Commissioner Boigon leaves the room. Motion: Commissioner Jolley moves to approve Docket Pooling & Hearing process rules as amended by proceedings today. Second: Commissioner McGowan Yea: Ager, Benton, Hawkins, Jolley, Abstain: Boigon (out of the room) McGowan & Overturf Nay: None Recused: None Result: Motion passed 6-0 2:43 pm Docket No , Weld County Applicant: Attorneys: Hearing Officer: Extraction Oil & Gas, LLC (Operator No ) Joseph C. Pierzchala & Geoffrey W. Storm James P. Rouse & Michael Eden Protested by: Attorney: Establish an approximate 1,280-acre drilling and spacing unit for the Application Lands for the production of oil, gas and associated hydrocarbons from the Niobrara and Codell Formations, and approve up to 22 horizontal wells within the unit. SRC Energy Inc. Brent Chicken & David Little 2:45 pm 5:47 pm 5:48 pm Commissioner Boigon returns to the room, recuses himself for conflict of interest and is dismissed for the day. Motion: Commissioner Hawkins moves to approve docket Second: Commissioner Jolley Yea: Ager, Benton, Hawkins, Jolley, Abstain: None McGowan & Overturf Nay: None Recused: Boigon Result: Motion passed 6-0 Public Comment: The Commission heard general public comments from those who were not able to take their turn yesterday due to time constraints. Page 11 of 52

12 6:00 pm Motion: Commissioner Hawkins moves to adjourn. Second: Commissioner Ager Yea: Ager, Benton, Hawkins, Jolley, Abstain: None McGowan & Overturf Nay: None Recused: Boigon Result: Motion passed 6-0 Page 12 of 52

13 Approved General Consent Orders: See Appendix A Approved Enforcement Consent Orders: See Appendix B -END FOR THE COLORADO OIL AND GAS CONSERVATION COMMISSION Julie Spence Prine, Secretary Approved: John Benton, Chair Page 13 of 52

14 Appendix A Approved General Consent Orders Group A Docket No , Weld County Applicant: PDC Energy, Inc., LLC (Operator No ) Attorneys: Michael T. Jewell & Courtney M. Shephard interests in an approximate 640-acre designated horizontal wellbore spacing unit, established for the operation of the Niobrara Formation. Township 5 North, Range 64 West, 6th P.M. Section 29: NW¼, W½NE¼ Section 30: N½ Township 5 North, Range 65 West, 6th P.M. Section 25: E½NE¼ Docket No , Weld County Applicant: PDC Energy, Inc., LLC (Operator No ) Attorneys: Michael T. Jewell & Courtney M. Shephard interests in an approximate 640-acre designated horizontal wellbore spacing unit, established for the operation of the Niobrara Formation. Township 5 North, Range 64 West, 6th P.M. Section 29: NW¼, W½NE¼ Section 30: N½ Township 5 North, Range 65 West, 6th P.M. Section 25: E½NE¼ Docket No , Weld County Applicant: PDC Energy, Inc., LLC (Operator No ) Attorneys: Michael T. Jewell & Courtney M. Shephard interests in an approximate 640-acre designated horizontal wellbore spacing unit, established for the operation of the Niobrara Formation. Page 14 of 52

15 Township 5 North, Range 64 West, 6th P.M. Section 29: NW¼, W½NE¼ Section 30: N½ Township 5 North, Range 65 West, 6th P.M. Section 25: E½NE¼ Docket No , Weld County Applicant: PDC Energy, Inc., LLC (Operator No ) Attorneys: Michael T. Jewell & Courtney M. Shephard interests in an approximate 640-acre designated horizontal wellbore spacing unit, established for the operation of the Niobrara Formation. Township 5 North, Range 64 West, 6th P.M. Section 19: S½S½ Section 20: S½SW¼, SW¼SE¼ Section 29: N½NW¼, NW¼NE¼ Section 30: N½N½ Township 5 North, Range 65 West, 6th P.M. Section 24: SE¼SE¼ Section 25: NE¼NE¼ Docket No , Weld County Applicant: PDC Energy, Inc., LLC (Operator No ) Attorneys: Michael T. Jewell & Courtney M. Shephard interests in an approximate 320-acre designated horizontal wellbore spacing unit, established for the operation of the Niobrara Formation. Township 5 North, Range 64 West, 6th P.M. Section 29: N½NW¼, NW¼NE¼ Section 30: N½N½ Township 5 North, Range 65 West, 6th P.M. Section 25: NE¼NE¼ Docket No , Weld County Applicant: PDC Energy, Inc., LLC (Operator No ) Attorneys: Michael T. Jewell & Courtney M. Shephard interests in an approximate 320-acre designated horizontal wellbore spacing unit, established for the Page 15 of 52

16 operation of the Niobrara Formation. Township 5 North, Range 64 West, 6th P.M. Section 29: N½NW¼, NW¼NE¼ Section 30: N½N½ Township 5 North, Range 65 West, 6th P.M. Section 25: NE¼NE¼ Docket No , Weld County Applicant: PDC Energy, Inc., LLC (Operator No ) Attorneys: Michael T. Jewell & Courtney M. Shephard Request for an order to among other things Pool all interests in an approximate 640-acre designated horizontal wellbore spacing unit, established for the operation of the Niobrara Formation. Township 5 North, Range 64 West, 6th P.M. Section 29: NW¼, W½NE¼ Section 30: N½ Township 5 North, Range 65 West, 6th P.M. Section 25: E½NE¼ Docket No , Weld County Applicant: PDC Energy, Inc., LLC (Operator No ) Attorneys: Michael T. Jewell & Courtney M. Shephard interests in an approximate 400-acre designated horizontal wellbore spacing unit, established for the operation of the Niobrara Formation. Township 5 North, Range 65 West, 6th P.M. Section 11: E½ Section 14: N½NE¼ Docket No , Weld County Applicant: PDC Energy, Inc., LLC (Operator No ) Attorneys: Michael T. Jewell & Courtney M. Shephard interests in an approximate 200-acre designated horizontal wellbore spacing unit, established for the Page 16 of 52

17 operation of the Niobrara Formation. Township 5 North, Range 65 West, 6th P.M. Section 11: E½E½ Section 14: NE¼NE¼ Docket No , Weld County Applicant: PDC Energy, Inc., LLC (Operator No ) Attorneys: Michael T. Jewell & Courtney M. Shephard interests in an approximate 200-acre designated horizontal wellbore spacing unit, established for the operation of the Niobrara Formation. Township 5 North, Range 65 West, 6th P.M. Section 12: E½W½ Section 13: NE¼NW¼ Docket No , Weld County Applicant: PDC Energy, Inc., LLC (Operator No ) Attorneys: Michael T. Jewell & Courtney M. Shephard interests in an approximate 200-acre designated horizontal wellbore spacing unit, established for the operation of the Niobrara Formation. Township 5 North, Range 65 West, 6th P.M. Section 12: W½W½ Section 13: NW¼NW¼ Docket No , Weld County Applicant: PDC Energy, Inc., LLC (Operator No ) Attorneys: Michael T. Jewell & Courtney M. Shephard Request for an order to among other things Pool all interests in an approximate 400-acre designated horizontal wellbore spacing unit, established for the operation of the Niobrara Formation. Page 17 of 52

18 Township 5 North, Range 65 West, 6th P.M. Section 11: E½E½ Section 12: W½W½ Section 13: NW¼NW¼ Section 14: NE¼NE¼ Wellbore Spacing Unit No. 1 Barr 11i-221 Well (API No ) Niobrara Wellbore Spacing Unit No. 2 Barr 11i-301 Well (API No ) Niobrara Wellbore Spacing Unit No. 3 Barr 4N Well (API No ) Niobrara Wellbore Spacing Unit No. 4 Barr 3N Well (API No ) Niobrara Docket No , Weld County Applicant: PDC Energy, Inc., LLC (Operator No ) Attorneys: Michael T. Jewell & Courtney M. Shephard interests in four approximate 400-acre designated horizontal wellbore spacing units, established for the operation of the Niobrara and Codell Formations. Township 5 North, Range 65 West, 6th P.M. Section 12: W½ Section 13: N½NW¼ Wellbore Spacing Unit No. 1 Barr 11L-221 Well (API No ) Niobrara Wellbore Spacing Unit No. 2 Barr 11L-301 Well (API No ) Niobrara Wellbore Spacing Unit No. 3 Barr 11L-401 Well (API No ) Codell Wellbore Spacing Unit No. 4 Barr 11L-201 Well (API No ) Niborara Docket No , Weld County Applicant: PDC Energy, Inc., LLC (Operator No ) Attorneys: Michael T. Jewell & Courtney M. Shephard interests in an approximate 400-acre designated horizontal wellbore spacing unit for the development and operation of the Niobrara Formation. Township 4 North, Range 64 West, 6th P.M. Section 5: W½SW¼ Section 6: S½ Docket No , Weld County Page 18 of 52

19 Applicant: Attorneys: PDC Energy, Inc., LLC (Operator No ) Michael T. Jewell & Courtney M. Shephard Establish an approximate 1,040-acre drilling and spacing unit for the Application Lands and approve up to 19 horizontal wells in the proposed unit, for production of oil, gas, and associated hydrocarbons from the Niobrara and Codell Formations. Township 4 North, Range 64 West, 6th P.M. Section 5: S½S½SW¼ Section 6: S½S½S½ Section 7: N½, N½S½, S½SE¼, SE¼SW¼ Section 8: W½ Group B Docket No , Weld County Applicant: Verdad Resources LLC (Operator No ) Attorneys: Joseph C. Pierzchala & Geoffrey W. Storm Establish two approximate 640-acre drilling and spacing units covering the Second Amended Application Lands for production of oil, gas and associated hydrocarbons from the Codell and Niobrara Formations and Approve a total of eleven (11) new horizontal wells in each unit. DSU No. 1 Township 1 North, Range 65 West, 6th P.M. Section 15: E½ Section 22: E½ DSU No. 2 Township 1 North, Range 65 West, 6th P.M. Section 15: W½ Section 22: W½ Docket No , Arapahoe County Applicant: Axis Exploration (Operator No ) Attorneys: Joseph C. Pierzchala & Geoffrey W. Storm Establish an approximate 160-acre enhanced oil recovery unit for the J-Sand Formation to obtain enhanced oil production from the J-Sand Formation from the Cavanaugh #3 well (API No ). Page 19 of 52

20 Township 4 South, Range 64 West, 6th P.M. Section 15: SW¼ Docket No , Weld County Applicant: Extraction Oil & Gas, LLC (Operator No ) Attorneys: Joseph C. Pierzchala & Stephen J. Sullivan interests in the Application Lands underlying an approximate 1,360-acre drilling and spacing unit for the operation of the Codell and Niobrara Formations. Township 1 North, Range 68 West, 6th P.M. Section 33: E½ Section 34: W½ Township 1 South, Range 68 West, 6th P.M. Section 3: W½ Section 4: E½, E½E½W½ Docket No , Weld County Applicant: Verdad Resources LLC (Operator No ) Attorneys: Joseph C. Pierzchala & Geoffrey W. Storm Establish an approximate 640-acre drilling and spacing unit for the Application Lands for the production of oil, gas and associated hydrocarbons from the Niobrara, Fort Hays, Codell, and Carlile Formations and approve up to 16 horizontal wells within the unit. Township 8 North, Range 61 West, 6th P.M. Section 26: All Docket No , Weld County Applicant: Verdad Resources LLC (Operator No ) Attorneys: Joseph C. Pierzchala & Geoffrey W. Storm Modify an approximate 640-acre drilling and spacing unit established by Order No for the Application Lands to include the Fort Hays, Codell, and Carlile Formations. Page 20 of 52

21 Township 8 North, Range 61 West, 6th P.M. Section 27: All Docket No , Adams County Applicant: Axis Exploration, LLC (Operator No ) Attorneys: Joseph C. Pierzchala & Geoffrey W. Storm 1) Modify an established 1,280-acre drilling and spacing unit under Order No covering the Application Lands for the development and operation of the Niobrara Formation; 2) Approve a total of up to 16 total horizontal wells within the unit. Township 3 South, Range 65 West, 6th P.M. Section 16: All Section 17: All Docket No , Broomfield & Adams Counties Applicant: Extraction Oil & Gas, LLC (Operator No ) Attorneys: Joseph C. Pierzchala & Stephen J. Sullivan interests in an approximate 640-acre drilling and spacing unit covering the Application Lands for the development and operation of the Niobrara and Codell Formations. Township 1 North, Range 68 West Section 34: E½ Township 1 South, Range 68 West Section 3: E½ Group C Docket No , Weld County Applicant: Edge Energy II, LLC (Operator No ) Attorneys: Joseph C. Pierzchala & Stephen J. Sullivan Establish two approximate 1,280-acre drilling and spacing units for the Application Lands and approve a total of up to 12 horizontal wells within each unit for the production of oil, gas, and associated hydrocarbons from the Niobrara, Fort Hays, Codell, and Carlile Formations. Page 21 of 52

22 Township 8 North, Range 66 West, 6th P.M. Section 11: All Section 14: All DSU No. 2 Township 8 North, Range 66 West, 6th P.M. Section 12: All Section 13: All Docket No , Weld County Applicant: Edge Energy II, LLC (Operator No ) Attorneys: Joseph C. Pierzchala & Stephen J. Sullivan Establish an approximate 1,280-acre drilling and spacing unit for the Application Lands, and approve a total of up to 12 horizontal wells within the unit for the production of oil, gas, and associated hydrocarbons from the Niobrara, Fort Hays, Codell, and Carlile Formations. Township 8 North, Range 64 West, 6th P.M. Section 5: All Section 6: All Docket No , Weld County Applicant: Edge Energy II, LLC (Operator No ) Attorneys: Joseph C. Pierzchala & Stephen J. Sullivan Establish an approximate 1,280-acre drilling and spacing unit for the Application Lands, and approve a total of up to 12 horizontal wells within the unit for the production of oil, gas, and associated hydrocarbons from the Niobrara, Fort Hays, Codell, and Carlile Formations. Township 8 North, Range 67 West, 6th P.M. Section 2: All Section 3: All Docket No , Weld County Applicant: Bayswater (Operator No ) Attorneys: Joseph C. Pierzchala & Geoffrey W. Storm Establish an approximate 800-acre drilling and spacing unit covering the Application Lands, and approve up to ten horizontal wells within the unit, for Page 22 of 52

23 production of oil, gas and associated hydrocarbons from the Niobrara and Codell Formations. Township 7 North, Range 66 West, 6th P.M. Section 26: W½NW¼ Section 27: N½ Section 28: N½ Section 29: E½NE¼ Docket No , Weld County Applicant: Verdad Resources LLC (Operator No ) Attorneys: Joseph C. Pierzchala & Geoffrey W. Storm Establish an approximate 960-acre drilling and spacing unit for the Application Lands, approve up to 16 horizontal wells within the unit. Township 3 North, Range 62 West, 6th P.M. Section 17: S½ Section 20: All Docket No , Weld County Applicant: Verdad Resources LLC (Operator No ) Attorneys: Joseph C. Pierzchala & Geoffrey W. Storm Establish an approximate 1,280-acre drilling and spacing unit for the Application Lands described below, approve up to 16 horizontal wells within the unit, and establish well location rules, for the drilling of wells and production of oil, gas, and associated hydrocarbons from the Niobrara and Codell Formations. Township 3 North, Range 62 West, 6th P.M. Section 10: All Section 15: All Docket No , Weld County Applicant: Verdad Resources LLC (Operator No ) Attorneys: Joseph C. Pierzchala & Geoffrey W. Storm Establish an approximate 1,280-acre drilling and spacing unit for the Application Lands, and approve a total of up to 16 additional horizontal wells within Page 23 of 52

24 the unit, for the production of oil, gas, and associated hydrocarbons from the Niobrara, Fort Hays, Codell, and Carlile Formations. Township 7 North, Range 60 West, 6th P.M. Section 29: All Section 32: All Docket No , Weld County Applicant: Verdad Resources LLC (Operator No ) Attorneys: Joseph C. Pierzchala & Geoffrey W. Storm Modify an approximate 1,280-acre drilling and spacing unit for the Application Lands to include the Fort Hays, Codell and Carlile Formations, and to approve a total of up to 16 horizontal wells within the unit. Township 8 North, Range 61 West, 6th P.M. Section 31: All Township 7 North, Range 61 West, 6th P.M. Section 6: All Group D Docket No , La Plata County Applicant: BP America Production Company (Operator No ) Attorneys: Elizabeth Y. Spencer Vacate, as to certain parties, Order No , which subject all nonconsenting interests in the Application Lands to the cost recovery provisions of (7) C.R.S., for the drilling of the Rhodes #1 Well (API No ). Township 34 North, Range 6 West, N.M.P.M.(SUL) Section 6U: E½ (Lots 1 and 2) Section 7U: E½ Group E Docket No , Weld County Applicant: Kerr-McGee Oil & Gas Onshore LP (Operator No ) Attorneys: James Parrot, Jillian Fulcher & Jobediah Rittenhouse interests in two approximate 720-acre designated Page 24 of 52

25 horizontal wellbore spacing units, established for the operation of the Niobrara and Codell Formations. Township 2 North, Range 67 West, 6th P.M. Section 25: S½S½ Section 26: SE¼SW¼, S½SE¼ Section 35: NE¼NW¼, N½NE¼ Section 36: N½N½ Township 2 North, Range 66 West, 6th P.M. Section 30: S½SW¼ Section 31: N½NW¼ Docket No , Weld County Applicant: Kerr-McGee Oil & Gas Onshore LP (Operator No ) Attorneys: James Parrot, Jillian Fulcher & Jobediah Rittenhouse interests in an approximate 880-acre designated horizontal wellbore spacing unit, established for the operation of the Niobrara Formation. Township 1 North, Range 65 West, 6th P.M. Section 7: SE¼SE¼ Section 8: SW¼SW¼ Section 17: W½W½ Section 18: E½E½ Section 19: E½E½ Section 20: W½W½ Section 29: W½NW¼ Section 30: E½NE¼ Docket No , Weld County Applicant: Kerr-McGee Oil & Gas Onshore LP (Operator No ) Attorneys: James Parrot, Jillian Fulcher & Jobediah Rittenhouse Request for an order to among other things Pool all interests in three approximate 880-acre designated horizontal wellbore spacing unit, established for the operation of the Niobrara and Codell Formations. Township 1 North, Range 65 West, 6th P.M. Section 8: S½SW¼ Section 17: W½ Section 20: W½ Section 29: NW¼ Docket No , Weld County Applicant: Kerr-McGee Oil & Gas Onshore LP (Operator No ) Attorneys: James Parrot, Jillian Fulcher & Jobediah Rittenhouse Page 25 of 52

26 interests in two approximate 440-acre designated horizontal wellbore spacing units, established for the operation of the Niobrara and Codell Formations. Township 1 North, Range 65 West, 6th P.M. Section 8: SE¼SW¼ Section 17: E½W½ Section 20: E½W½ Section 29: E½NW¼ Docket No , Weld County Applicant: Kerr-McGee Oil & Gas Onshore LP (Operator No ) Attorneys: James Parrot, Jillian Fulcher & Jobediah Rittenhouse interests in three approximate 880-acre designated horizontal wellbore spacing units, established for the operation of the Niobrara and Codell Formations. Township 1 North, Range 65 West, 6th P.M. Section 8: S½SE¼ Section 17: E½ Section 20: E½ Section 29: NE¼ Docket No , Weld County Applicant: Kerr-McGee Oil & Gas Onshore LP (Operator No ) Attorneys: James Parrot, Jillian Fulcher & Jobediah Rittenhouse interests in three approximate 720-acre designated horizontal wellbore spacing units, established for the operation of the Niobrara and Codell Formations. Township 1 North, Range 65 West, 6th P.M. Section 9: S½SE¼ Section 16: E½ Section 21: E½ Docket No , Weld County Applicant: Kerr-McGee Oil & Gas Onshore LP (Operator No ) Attorneys: James Parrot, Jillian Fulcher & Jobediah Rittenhouse Page 26 of 52

27 interests in two approximate 360-acre designated horizontal wellbore spacing units, established for the operation of the Niobrara and Codell Formations. Township 1 North, Range 65 West, 6th P.M. Section 9: SE¼SE¼ Section 16: E½E½ Section 21: E½E½ Docket No , Weld County Applicant: Kerr-McGee Oil & Gas Onshore LP (Operator No ) Attorneys: James Parrot, Jillian Fulcher & Jobediah Rittenhouse interests in an approximate 480-acre designated horizontal wellbore spacing unit, established for the operation of the Codell Formation. Township 1 North, Range 65 West, 6th P.M. Section 18: S½SE¼ Section 19: E½ Section 30: N½NE¼ Docket No , Weld County Applicant: Kerr-McGee Oil & Gas Onshore LP (Operator No ) Attorneys: James Parrot, Jillian Fulcher & Jobediah Rittenhouse interests in an approximate 240-acre designated horizontal wellbore spacing unit, established for the operation of the Niobrara Formation. Township 1 North, Range 65 West, 6th P.M. Section 18: S¼SE¼ Section 19: E½E½ Section 30: N¼NE¼ Docket No , Weld County Applicant: Kerr-McGee Oil & Gas Onshore LP (Operator No ) Attorneys: James Parrot, Jillian Fulcher & Jobediah Rittenhouse interests in an approximate 480-acre designated horizontal wellbore spacing unit, established for the Page 27 of 52

28 operation of the Niobrara Formation. Township 1 North, Range 65 West, 6th P.M. Section 17: SW¼SW¼ Section 18: SE¼SE¼ Section 19: E½E½ Section 20: W½W½ Section 29: NW¼NW¼ Section 30: NE¼NE¼ Docket No , Weld County Applicant: Kerr-McGee Oil & Gas Onshore LP (Operator No ) Attorneys: James Parrot, Jillian Fulcher & Jobediah Rittenhouse interests in an approximate 480-acre designated horizontal wellbore spacing unit, established for the operation of the Niobrara Formation. Township 1 North, Range 65 West, 6th P.M. Section 7: S½SE¼ Section 18: E½ Section 19: N½NE¼ Group F Docket No , Garfield County Applicant: Ursa Operating Company LLC (Operator No ) Attorneys: James Parrot & Jillian Fulcher interests, including, but not limited to, any nonconsenting interests, in the approximate 480-acre drilling and spacing unit for the Application Lands, proposed by the concurrent spacing application filed by Applicant. Township 7 South, Range 95 West, 6th P.M. Section 17: W½, W½E½ Docket No , Weld County Applicant: Ephphatha, LLC (Operator No ) Attorneys: James Parrot & Jillian Fulcher interests in an approximate 200-acre drilling and spacing unit in the Application Lands, for the Page 28 of 52

29 development Formation. and operation of the Niobrara Township 6 North, Range 88 West, 6th P.M. Section 29: W½SW¼ Section 30: SE¼SE¼ Section 31: NE¼NE¼ Section 32: NW¼NW¼ Docket No , Weld County (Continued to future hearing) Applicant: SRC Energy Inc. (Operator No ) Attorneys: James Parrot & Jillian Fulcher interests in two approximate acre designated horizontal wellbore spacing units, established for the operation of the Niobrara Formation. Township 5 North, Range 66 West, 6th P.M. Section 6: SW¼SW¼ Section 7: NW¼NW¼ Township 5 North, Range 67 West, 6th P.M. Section 1: S½S½ Section 2: S½S½ Section 11: N½N½ Section 12: N½N½ Docket No , Weld County Applicant: SRC Energy Inc. (Operator No ) Attorneys: James Parrot, Jillian Fulcher & Jobediah Rittenhouse interests in two approximate acre designated horizontal wellbore spacing units, established for the operation of the Niobrara and Codell Formations. Township 5 North, Range 66 West, 6th P.M. Section 5: S½S½ Section 6: S½S½ Section 7: N½N½ Section 8: N½N½ Township 5 North, Range 67 West, 6th P.M. Section 1: SE¼SE¼ Section 12: NE¼NE¼ Docket No , Weld County Applicant: Enerplus Resources (USA) Corporation (Operator No ) Attorneys: James Parrot, Jillian Fulcher & Evan Bekkedahl Page 29 of 52

30 Establish an approximate 1, acre drilling and spacing unit for the Application Lands, for production of oil, gas, and associated hydrocarbons from the Niobrara, Fort Hays, Codell, and Carlile Formations, and Approve the drilling of 12 horizontal wells in the proposed unit, to be drilled in a general east/west orientation. Township 8 North, Range 65 West, 6th P.M. Section 31: All Section 32: All Docket No , Weld County Applicant: Enerplus Resources (USA) Corporation (Operator No ) Attorneys: James Parrot, Jillian Fulcher & Evan Bekkedahl interests in an approximate 640-acre drilling and spacing unit established for the Application Lands, for the development and operation of the Niobrara, Fort Hays, Codell, and Carlile Formations. Township 8 North, Range 67 West, 6th P.M. Section 25: E½ Section 36: E½ Docket No , Weld County Applicant: Enerplus Resources (USA) Corporation (Operator No ) Attorneys: James Parrot, Jillian Fulcher & Evan Bekkedahl interests in an approximate 640-acre drilling and spacing unit established for the Application Lands, for the development and operation of the Niobrara and Codell Formations. Township 7 North, Range 65 West, 6th P.M. Section 5: All Section 6: All Docket No , Weld County Applicant: Enerplus Resources (USA) Corporation (Operator No ) Attorneys: James Parrot, Jillian Fulcher & Evan Bekkedahl Page 30 of 52

31 Declare Order No , which pooled all interests in an approximate 640-acre drilling and spacing unit established for the Application Lands, to be applicable to all previously unnoticed parties. Township 8 North, Range 66 West, 6th P.M. Section 33: S½ Section 34: S½ Group G Docket No , Weld County Applicant: Kerr-McGee Oil & Gas Onshore LP (Operator No ) Attorneys: James Parrot, Jillian Fulcher & Jobediah Rittenhouse interests in an approximate 240-acre designated horizontal wellbore spacing unit, established for the operation of the Niobrara Formation. Township 1 North, Range 65 West, 6th P.M. Section 7: S¼SE¼ Section 18: E½E½ Section 19: N¼NE¼ Docket No , Weld County Applicant: Kerr-McGee Oil & Gas Onshore LP (Operator No ) Attorneys: James Parrot, Jillian Fulcher & Jobediah Rittenhouse interests in two approximate 800-acre designated horizontal wellbore spacing unit, established for the operation of the Niobrara and Codell Formations. Township 4 North, Range 67 West, 6th P.M. Section 16: S½SW¼; SW¼SE¼ Section 17: S½S½ Section 18: S½SE¼; SE¼SW¼ Section 19: N½NE¼; NE¼NW¼ Section 20: N½N½ Section 21: N½NW¼; NW¼NE¼ Docket No , Weld County Applicant: Kerr-McGee Oil & Gas Onshore LP (Operator No ) Attorneys: James Parrot, Jillian Fulcher & Jobediah Rittenhouse Page 31 of 52

32 interests in an approximate 400-acre designated horizontal wellbore spacing unit, established for the operation of the Niobrara Formation. Township 4 North, Range 67 West, 6th P.M. Section 19: N½NE¼; NE¼NW¼ Section 20: N½N½ Section 21: N½NW¼; NW¼NE¼ Docket No , Weld County Applicant: Kerr-McGee Oil & Gas Onshore LP (Operator No ) Attorneys: James Parrot, Jillian Fulcher & Jobediah Rittenhouse interests in three approximate 800-acre designated horizontal wellbore spacing unit, established for the operation of the Niobrara and Codell Formations. Township 4 North, Range 67 West, 6th P.M. Section 19: NE¼; E½NW¼ Section 20: N½ Section 21: NW¼; W½NE¼ Docket No , Weld County Applicant: Kerr-McGee Oil & Gas Onshore LP (Operator No ) Attorneys: James Parrot, Jillian Fulcher & Jobediah Rittenhouse interests in an approximate 800-acre designated horizontal wellbore spacing unit, established for the operation of the Codell Formation. Township 4 North, Range 67 West, 6th P.M. Section 19: S½NE¼; N½SE¼; SE¼NW¼; NE¼SW¼ Section 20: S½N½; N½S½ Section 21: S½NW¼; N½SW¼; SW¼NE¼; NW¼SE¼ Docket No , Weld County Applicant: Kerr-McGee Oil & Gas Onshore LP (Operator No ) Attorneys: James Parrot, Jillian Fulcher & Jobediah Rittenhouse Page 32 of 52

33 interests in two approximate 720-acre designated horizontal wellbore spacing units, established for the operation of the Niobrara and Codell Formations. Township 2 North, Range 66 West, 6th P.M. Section 7: SE¼SW¼; SW¼SE¼ Section 18: E½W½; W½E½ Section 19: E½W½; W½E½ Docket No , Weld County Applicant: Kerr-McGee Oil & Gas Onshore LP (Operator No ) Attorneys: James Parrot, Jillian Fulcher & Jobediah Rittenhouse interests in three approximate 720-acre designated horizontal wellbore spacing units, established for the operation of the Niobrara and Codell Formations. Township 2 North, Range 66 West, 6th P.M. Section 7: S½SE¼ Section 18: E½ Section 19: E½ Docket No , Weld County Applicant: Kerr-McGee Oil & Gas Onshore LP (Operator No ) Attorneys: James Parrot, Jillian Fulcher & Jobediah Rittenhouse interests in an approximate 360-acre designated horizontal wellbore spacing unit, established for the operation of the Niobrara Formation. Township 2 North, Range 66 West, 6th P.M. Section 7: SW¼SE¼ Section 18: W½E½ Section 19: W½E½ Docket No , Weld County Applicant: Kerr-McGee Oil & Gas Onshore LP (Operator No ) Attorneys: James Parrot, Jillian Fulcher & Jobediah Rittenhouse interests in two approximate 360-acre designated horizontal wellbore spacing units, established for the Page 33 of 52

34 operation of the Niobrara and Codell Formations. Township 2 North, Range 66 West, 6th P.M. Section 7: SE¼SE¼ Section 18: E½E½ Section 19: E½E½ Docket No , Weld County Applicant: Kerr-McGee Oil & Gas Onshore LP (Operator No ) Attorneys: James Parrot, Jillian Fulcher & Jobediah Rittenhouse interests in an approximate 720-acre designated horizontal wellbore spacing unit, established for the operation of the Niobrara Formation. Township 2 North, Range 66 West, 6th P.M. Section 7: SE¼SE¼ Section 8: SW¼SW¼ Section 17: W½W½ Section 18: E½E½ Section 19: E½E½ Section 20: W½W½ Group H Docket No , Weld County Applicant: Nickel Road Operating, LLC (Operator No ) Attorneys: Jamie L. Jost & Kelsey H. Wasylenky Establish an approximate 1,280-acre drilling and spacing unit for Sections 16 and 17, Township 7 North, Range 65 West, 6th P.M., and allowing up to 24 new horizontal wells in the unit in order to efficiently and economically develop and recover the Codell and Niobrara Formations in the unit. Township 7 North, Range 65 West, 6th P.M. Section 16: All Section 17: All Docket No , Weld County Applicant: Confluence DJ LLC (Operator No ) Attorneys: Jamie L. Jost & Kelsey H. Wasylenky Establish an approximate 1,280-acre drilling and Page 34 of 52

35 spacing unit and approve up to 27 horizontal wells within the unit, for the production of oil, gas, and associated hydrocarbons from the Niobrara and Codell Formations. Township 7 North, Range 64 West, 6th P.M. Section 6: All Township 7 North, Range 65 West, 6th P.M. Section 1: All Docket No , Weld County Applicant: Crestone Peak Resources Operating LLC (Operator No ) Attorneys: Jamie L. Jost & Kelsey H. Wasylenky Establish an approximate 960-acre drilling and spacing unit, and allow up to eight horizontal wells within the unit for the development and operation of the Niobrara and Codell Formations, and Authorize one new well pad within the unit. Township 2 North, Range 68 West, 6th P.M. Section 19: E½ Section 30: E½ Section 31: E½ Docket No , Weld County Applicant: ConocoPhillips Company (Operator No ) Attorneys: Jamie L. Jost & Kelsey H. Wasylenky Approve an additional four horizontal wells, for a total of up to nine. Township 4 South, Range 65 West, 6th P.M. Section 25: All Section 26: All Docket No , Weld County Applicant: ConocoPhillips Company (Operator No ) Attorneys: Jamie L. Jost & Kelsey H. Wasylenky Request for an order to among other thingsapprove an additional seven horizontal wells, for a total of up to eleven. Page 35 of 52

36 Township 4 South, Range 65 West, 6th P.M. Section 27: All Section 28: All Docket No , Weld County Applicant: Noble Energy, Inc. (Operator No ) Attorneys: Jamie L. Jost & Kelsey H. Wasylenky interests, including but not limited to any nonconsenting interests and any party failing to fulfill its election, in ten designated horizontal Wellbore Spacing Units established for the Application Lands for the development and operation of the Codell and Niobrara Formations. WSU #1: Emmy State H (API No ) (Niobrara) Township 3 North, Range 65 West, 6th P.M. Section 13: SE¼SE¼ Section 24: E½E½ Section 25: E½E½ Section 36: NE¼NE¼ 400-acres, more or less, Weld County, Colorado. WSU #2-3: Emmy State H (API No ) (Niobrara) Emmy State H (API No ) (Niobrara) Township 3 North, Range 65 West, 6th P.M. Section 13: S½SE¼ Section 24: E½ Section 25: E½ Section 36: N½NE¼ 800-acres, more or less, Weld County, Colorado. WSU #4: Emmy State H (API No ) (Niobrara) Township 3 North, Range 65 West, 6th P.M. Section 13: SW¼SE¼ Section 24: W½E½ Section 25: W½E½ Section 36: NW¼NE¼ 400- acres, more or less, Weld County, Colorado. WSU #5-6 Emmy State H (API No ) (Niobrara) Emmy State H (API No ) (Niobrara) Township 3 North, Range 65 West, 6th P.M. Section 13: SE¼SW¼, SW¼SE¼ Section 24: E½W½, W½E½ Section 25: E½W½, W½E½ Section 36: NE¼NW¼, NW¼NE¼ 800- acres, more or less, Weld County, Colorado. WSU #7: Emmy State H (API No ) (Niobrara) Township 3 North, Range 65 West, 6th P.M. Section 13: SE¼SW¼, SW¼SE¼ Section 24: E½W½, W½E½ Section 25: E½W½, W½E½ Section 36: NE¼NW¼ 760-acres, more or less, Weld County, Colorado. WSU #8: Independence D (API No ) (Codell) Page 36 of 52

37 Township 3 North, Range 64 West, 6th P.M. Section 17: SW¼SW¼ Section 18: SE¼SE¼ Section 19: E½E½ Section 20: W½W½ Section 29: W½W½ Section 30: E½E½ Section 31: NE¼NE¼ Section 32: NW¼NW¼ 800-acres, more or less, Weld County, Colorado. WSU #9: Independence D (API No ) (Niobrara) Township 3 North, Range 64 West, 6th P.M. Section 17: SW¼SW¼ Section 18: SE¼SE¼ Section 19: E½E½ Section 20: W½NW¼ Section 30: E½E½ Section 31: NE¼NE¼ 520-acres, more or less, Weld County, Colorado. WSU #10: Independence State D (API No ) (Niobrara) Township 3 North, Range 64 West, 6th P.M. Section 18: SW¼SW¼ Section 19: W½W½ Section 30: W½W½ Section 31: NW¼NW¼ Township 3 North, Range 65 West, 6th P.M. Section 13: SE¼SE¼ Section 24: E½E½ Section 25: E½E½ Section 36: NE¼NE¼ Group I Docket No , Weld County Applicant: Mallard Exploration, LLC (Operator No ) Attorneys: Jamie L. Jost & Kelsey H. Wasylenky Establish an approximate 1,280-acre drilling and spacing unit, and approve up to 16 new wells in the unit, for the production of oil, gas, and associated hydrocarbons from the Niobrara and Codell Formations. Township 7 North, Range 61 West, 6th P.M. Section 4: All Section 5: All Docket No , Weld County Applicant: Mallard Exploration, LLC (Operator No ) Attorneys: Jamie L. Jost & Kelsey H. Wasylenky Amend Order No which established an approximate 640-acre drilling and spacing unit established for Section 33, Township 8 North, Range 59 West, 6th P.M., for the production of oil, gas and associated Page 37 of 52