BEFORE THE CORPORATION COMMISSION OF THE STATE OF OKLAHOMA FINDINGS AND ORDER

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1 BEFORE THE CORPORATION COMMISSION OF THE STATE OF OKLAHOMA APPLICANT: NEWFIELD EXPLORATION MID-CONTINENT INC. RELIEF SOUGHT: DRILLING AND SPACING UNITS LEGAL DESCRIPTION: SECTIONS 9,16 AND 21, TOWNSHIP 2 NORTH, RANGE 3 WEST, GARVIN COUNTY, OKLAHOMA CAUSE CD NO T ORDER NO. -iu FINDINGS AND ORDER 1. Hearing Date and Place: 8:30 a.m., 12 1h day of May, 2014, Eastern Regional Division, 440 S. Houston, Suite 114, Tulsa, Oklahoma. 2. Appearances: Ron M. Barnes, Attorney, appeared for the Applicant. 3. Notice and Jurisdiction: Notice has been given as required and the Commission has jurisdiction of the subject and persons. 4. Previous Order: None. 5. Amendment: None. 6. Reconciliation of Conflicting Nomenclature or Spacing: None. 7. Relief Requested: That a drilling and spacing unit should be created for the common sources of supply set forth in "Relief Granted" below. That the manner in which each unit is to be created, as well as the depth, classification of production, size of unit, and location of well, are also set forth in Relief Granted" below. 8. Relief Granted: a. Previous Orders Vacated, Amended or Reformed: That the Commission enter its order extending Order No insofar as it established a 640-acre horizontal drilling and spacing unit for the Mississippian, Woodford and Hunton common sources of supply underlying Section 28, Township 2 North, Range 3 West, Garvin County to include Sections 21, 16 and 9, Township 2 North, Range 3 West, Garvin County, Oklahoma. The horizontal well units may exist concurrently with the producing nonhorizontal drilling and spacing units, if any. The horizontal well units shall also supersede any existing non-developed non-horizontal drilling and spacing units. Thus Order No which established a 640-acre drilling and spacing unit for the Mississippian, Woodford and Hunton common sources of supply underlying Section 9, Township 2 North, Range 3 West, Garvin County, Oklahoma is not being vacated. L:\NEWFIELD \NEWFIELD 40051\ SPC\40051-I690 doe

2 PAGE 2 b. All of the following land is underlain by the respective common sources of supply designated and therefore the following drilling and spacing units are hereby established: Common Source Order of Supply Classification Depth Size Extended Mississippian Gas 11,553' 640-acre horizontal Woodford Gas 11,730' 640-acre horizontal Hunton Gas 11,950' 640-acre horizontal Underlying Sections 21, 16 and 9, Township 2 North, Range 3 West, Garvin County, Oklahoma. C. Form and Shape of Unit: The 640-acre horizontal drilling and spacing units established hereby shall be formed as follows: A Governmental Section. d. Location of Unit Well: The one well permitted for each 640-acre horizontal drilling and spacing unit established hereby shall be located as follows: The Woodford common source of supply is an unconventional reservoir and for an unconventional reservoir the completion lateral of a horizontal well drilled in a horizontal well unit shall be located not less than feet from the unit boundary. The Mississippian and Hunton common sources of supply are conventional reservoirs and for a conventional reservoir the completion interval of a horizontal well in a horizontal well unit shall be located not less than feet from the unit boundary of each 640- acre horizontal unit. e. Map Attached: Attached to this Order is a plat indicating the information required by statute. f. There is no production from any non-horizontal well in the unit. L:\NEWFIELD 4005 I\NEWFIELD 40051\ SPC\ doc

3 PAGE 3 9. Conclusion: The relief requested is necessary to prevent or to assist in preventing the various types of waste of oil or gas prohibited by statute, or any of said wastes, and to protect or assist in protecting the correlative rights of interested parties. Such requested relief, as set forth above, should be granted and IT IS SO ORDERED. DONE AND PERFORMED this day of C BY H ISSON: CORPg RATION CO ISSth1 OF OKLAHOMA, 06 BOB ANTHONY, CWrman 1, PZZGLAS Y DANA L. MURPHY, (, PEGGY INWIULL, Commission Secretary REPORT OF THE ADMINISTRATIVE LAW JUDGE The foregoing Interim Findings and Order is the report and recommendation of the Administrative Law Judge. APPROVED: Thct i/ii 4_ KATHLEEN M. MCKEOWN ADMINISTRATIVE LAW JUDGE REVIEWER Date s(z 1/ t,' Date L:\NEWFIELD \NEWFIELD \ SPC\ doc

4 PAGE 4 EXHIBIT "A-I" Sections 21, 16 and 9, Township 2 North, Range 3 West, Garvin County, Oklahoma COMMON SOURCE OF SUPPLY: WOODFORD FORM AND SHAPE OF UNITS: A GOVERNMENTAL SECTION LOCATION OF UNIT WELL: THE WOODFORD COMMON SOURCE OF SUPPLY IS AN UNCONVENTIONAL RESERVOIR AND FOR AN UNCONVENTIONAL RESERVOIR THE COMPLETION INTERVAL OF A HORIZONTAL WELL IN A HORIZONTAL WELL UNIT SHALL BE LOCATED NOT LESS THAN FEET FROM ANY OPPOSITE UNIT BOUNDARY. L:\NEWFIELD 4005 I\NEWFIELD 40051\ SPC\ doc

5 PAGE 5 EXHIBIT "A-2" Sections 21, 16 and 9, Township 2 North, Range 3 West, Garvin County, Oklahoma COMMON SOURCES OF SUPPLY: MISSISSIPPIAN AND HUNTON FORM AND SHAPE OF UNITS: A GOVERNMENTAL SECTION LOCATION OF UNIT WELL: THE MISSISSIPPIAN AND HUNTON COMMON SOURCES OF SUPPLY ARE CONVENTIONAL RESERVOIRS AND FOR A CONVENTIONAL RESERVOIR THE COMPLETION INTERVAL OF A HORIZONTAL WELL IN A HORIZONTAL WELL UNIT SHALL BE LOCATED NOT LESS THAN FEET FROM ANY OPPOSITE UNIT BOUNDARY OF THE 640-ACRE HORIZONTAL UNIT. L:\NEWFIELD \NEWFIELD 40051\ SPC\4005 I-I 690.doc

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