ARKANSAS OIL AND GAS COMMISSION

Transcription

1 Director s Office: 301 Natural Resources Drive Suite 102 Little Rock, AR Phone: (501) Fax: (501) ARKANSAS OIL AND GAS COMMISSION Mike Beebe Governor Lawrence Bengal Director El Dorado Regional Office: 2215 West Hillsboro El Dorado, AR Phone: (870) FAX: (870) Fort Smith Regional Office: 3309 Phoenix Avenue Fort Smith, AR Phone: (479) FAX: (479) March 13, 2013 Arkansas Oil & Gas Commission 301 Natural Resources Drive, Suite 102 Little Rock, AR RE: Docket No. 081A Request for Well Abandonment Operators: Storm Cat Energy (USA) Operating Corporation Storm Cat Energy USA Corporation Dear Commissioners: The Commission Staff requests an Order declaring the subject well(s) formerly operated by Storm Cat Energy (USA) Operating Corporation and Storm Cat Energy USA Corporation ( Operator ) abandoned under the authority in Ark. Code Ann , , and : Storm Cat Energy (USA) Operating Corporation Kamalmaz #3-13H Permit No Sec. 13-T11N-R17W This well is plugged, open reserve pit and well pad. Storm Cat Energy USA Corporation Vaughan #1-14H Permit No Sec. 14-T11N-R17W Surface casing in place, open reserve pit and well pad. McEntire #1-6H Permit No Sec. 6-T11N-R16W COMMISSION MEMBERS Chad White, Chairman, Magnolia W. Frank Morledge, Vice-Chairman, Forrest City Charles Wohlford, Fort Smith Mike Davis, Magnolia William L. Dawkins, Jr., Fort Smith Jerry Langley, Smackover Chris Weiser, Magnolia Jim Phillips, Smackover George Carder, Searcy An equal opportunity employer

2 Surface casing in place, open reserve pit and well pad. Files #1-11H Permit No Sec. 11-T11N-R17W Lease road is impassable. Surface casing in place, open reserve pit and well pad. Basis of Abandonment Request General Rule G-1 Upon review of Commission records, Commission Staff has determined that the subject well(s) may be an Abandoned Well as defined in General Rule G-1, as the well(s) have never produced, and the Operator(s) have filed bankruptcy. Determination of Abandonment / Request for Authority to Plug Staff further requests that the Order provide that if the Operator fails to properly plug and abandon the wells and restore and remediate surface conditions surrounding the wells and well sites within 30 days of the effective date of the Order, the wells and well sites shall become part of the Commission s Abandoned and Orphaned Well Plugging Program, and the Director may either (1) transfer the wells in accordance with General Rule G-3, or (2) authorize any person to enter upon the land and properly plug and abandon the wells and well sites in accordance with General Rule G-1. As provided by General Rule G-1, any work shall be paid with funds from the Abandoned and Orphan Well Plugging Fund, and the Director may dispose of all well site equipment and hydrocarbons, to offset the costs to properly plug and abandon the wells and well sites and restore and remediate surface conditions surrounding the wells and well sites. The Operator shall reimburse the Commission for any and all costs expended to properly plug and abandon the wells and well sites and restore and remediate surface conditions surrounding the wells and well sites. All payments shall be by cashier s checks or money orders, and shall be deposited in the Abandoned and Orphaned Well Plugging Fund. Failure to reimburse the Commission may result in the initiation of Commission enforcement action to recover the expended funds. Sincerely, Lawrence E. Bengal Director

3 Exhibit 081A Staff Application for an Order of Abandonment (G-1) A. Copy of Form 1 Organization Reports B. Compilation of Form 2s for Wells subject to this request C. Affidavit of Notice D. Copy of Notice E. Proof of Public Notice from Arkansas Democrat Gazette

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12 NOTICE OF HEARING The Arkansas Oil and Gas Commission will conduct its monthly hearing beginning at 9:00 a.m. on March 27, 2013 and thereafter at the Embassy Suites Hotel, 400 Convention Blvd., Hot Springs, AR Due to the length of some docket items, the hearing may continue into the following day. The AOGC will hear Docket No , the application of Staff requesting an Order abandoning the following wells formerly operated by Storm Cat Energy (USA) Operating Corporation and Storm Cat Energy USA Corporation in accordance with General Rule G-1 and as authorized in Ark. Code Ann , , and : Storm Cat Energy (USA) Operating Corporation Kamalmaz #3 Permit No Sec. 13-T11N-R17W Storm Cat Energy USA Corporation Vaughan #1-14H Permit No Sec. 14-T11N-R17W McEntire #1-6H Permit No Sec. 6-T11N-R16W Files #1-11H Permit No Sec. 11-T11N-R17W Any parties who propose to oppose a filed application, shall notify, in writing, or via e- mail at objections@aogc.state.ar.us, the Hearing Officer or Director of the Arkansas Oil and Gas Commission, no later than close of business on March 22, ARKANSAS OIL AND GAS COMMISSION Lawrence E. Bengal Director EXHIBIT D