032-2009-01 - aogc2.state.ar.us

JERRY L. CANFIELD, P.A.

THOMAS A. DAILY, P.A.

WYMAN R. WAD E, JR. , P.A.

DOUGLAS M. CARSON, P.A.

ROBERT R. BRIGGS, P.A. † *

C . MICHAEL DAILY †

COBY W. LOGAN

L. MA TTHEW DAV IS

* Fayetteville Office

† Also Licensed in Oklahoma

DAILY & WOODSA PROFESSIONAL LIMITED LIABILITY COMPANY

ATTORNEYS AT LAW

KMW BUILDING58 SOUTH SIXTH STREET

P.O. BOX 1446FORT SMITH, AR 72902

TELEPHONE (479) 782-0361FAX (479) 782-6160

______________

3538 N. HIGHWAY 112, SUITE 200FAYETTEVILLE, AR 72703TELEPHONE (479) 582-0361

FAX (479) 251-8111

JAMES E. WEST

PHILLIP J. NORV ELL *

DALE CARLTON *

OF COUNSEL

_______

HARRY P. DA ILY (1886-1965)

JOHN P. WO ODS (1886-1976)

JOHN S. DAILY (1912-1987)

January 6, 2009

Arkansas Oil and Gas Commission301 Natural Resources Drive, Suite 102Little Rock, Arkansas 72205

Re: ORDER REFERENCE NO. 032-2009-01

Application of SEECO, Inc. for Integration of All Unleased Mineral Interests andNon-consenting Working Interests in a unit described as Section 4, Township 8North, Range 13 West, Faulkner County, Arkansas

Commissioners:

SEECO, Inc., 2350 N. Sam Houston Parkway E, Houston, TX 77032, hereby applies tothe Arkansas Oil and Gas Commission for the integration of all unleased mineralinterests and non-consenting working interests in its proposed drilling unit which isdescribed above.

1. The proposed drilling unit is an established unit as defined in paragraph (f) ofArkansas Oil and Gas Commission General Rule B-43. Applicant proposes to drill ahorizontal well from a non-exceptional surface location in the Northwest Quarter downto a non-exceptional bottom hole location in the Southwest Quarter of the above-described unit. The proposed well will be drilled to a total vertical depth of 4,330 feet totest the Fayetteville Shale Formation. Applicant has obtained one or more oil and gasleases covering its proposed drill site.

2. Applicant owns oil and gas leases covering a substantial part of the proposedunit. Applicant should be named as operator of the well. The person or persons to beintegrated are shown in Exhibit "A" attached hereto and made a part hereof.

3. Applicant has made diligent efforts to negotiate with the non-participatingleasehold working interest owners, each of said parties owning an oil and gas leaseholdinterest in the proposed unit, but applicant has been unable to secure an assignment ofthe leasehold interest on an equitable basis or to secure participation by said parties inthe drilling of the proposed well.

4. Applicant states that it has made repeated efforts to negotiate with the owners ofthe unleased mineral interests in order to agree on a plan of development of saiddrilling unit; that those owners have been offered an opportunity to participate in theproposed well; that they have been offered a fair and reasonable bonus considerationfor the execution of an oil and gas lease covering their interests; that they have beenfurnished with a proposed oil and gas lease and a copy of the AAPL operatingagreement form which applicant proposes to use in connection with the drilling of saidwell; but that all of the efforts of the applicant have produced no agreement by saidparties.

5. Applicant states that it is in the best interest of conservation and the protection ofcorrelative rights of all interested parties that the proposed unit be developed for oil andgas production without undue delay.

6. In order that applicant may proceed with the orderly development of said unit,applicant hereby requests that the Arkansas Oil and Gas Commission issue its order, inthe alternative, that:

(a) The owners of non-consenting oil and gas leasehold workinginterests indicated above shall participate in the cost of drilling,testing and completion of the test well to be drilled by applicant onthe captioned unit, subject to the terms of an Operating Agreementwhich substantially employs the terms of the AAPL Operatingagreement, with a COPAS attached.

(b) All of the non-consenting oil and gas leasehold working interestswithin the proposed unit shall be force pooled and integrated intosaid unit, and a reasonable risk factor shall be established andassessed as a penalty against said integrated interest.

7. Applicant further states that due to the risks and costs inherent in the drilling ofthe proposed well, the Commission should fix a reasonable risk factor to be assessedas a penalty against the integrated interests within the unit. The risk factor should beapplied to the proportionate cost and expense of drilling, completing and equipping thewell, which would have been borne by the interest of said parties had they participated. Applicant requests that if the integrated parties do not elect within 15 days afterissuance of the Commission's order as between alternatives (a) and (b), it shall beassumed that the integrated parties elected alternative (b) in lieu of the right toparticipate in the working interest in said unit.

8. Applicant requests that the Arkansas Oil and Gas Commission set this matter forpublic hearing, and after same, issue its order, in the alternative, that:

(a) Each of the owners of the unleased mineral interests indicatedabove execute and deliver to applicant a one year oil and gas

lease, on an AAPL lease form, for a bonus consideration of$500.00 per net mineral acre to be paid as fair and reasonablecompensation in lieu of the right to participate in the workinginterest in said unit, and that said oil and gas lease provide for a3/16 royalty on oil and gas.

(b) Each of the owners of unleased mineral interests indicated abovebe force pooled and integrated into the captioned unit withassessment of a reasonable risk factor penalty against theirinterest.

(c) The owners of unleased mineral interests shall participate in thecost of drilling, testing and completion of the test well to be drilledby applicant on the captioned unit, subject to the terms of anoperating agreement which substantially employs the terms of theAAPL Operating Agreement.

Applicant further requests that said mineral owners be required to elect within fifteen(15) days after issuance of the Commission's order which method will be pursued in thedevelopment of the above described unit, and, in the event no election is made, that itshall be assumed that the owner of said unleased mineral interest has elected to accepta bonus of $500.00 per net mineral acre as compensation in lieu of the right toparticipate in the working interest in said unit, and with the royalty to be 3/16.

9. Applicant further states that due to the risks and costs inherent in the drilling ofthe proposed well, the Commission should fix a reasonable risk factor to be assessedas a penalty against the integrated interests within the unit. The risk factor should beapplied to the proportionate cost and expenses of drilling, completing and equipping thewell, which would have been borne by the interest of said parties had they participated.

10. Applicant further requests that this Commission's order specifically provide thatany party electing either to participate or be force pooled subject to recoupment of arisk factor penalty be bound by the terms of the attached AAPL Operating Agreementfor the life of commercial production within the unit so that all future unit operationsmight be proposed pursuant to the provisions of such agreement without the necessityof future action by this Commission.

11. Applicant also requests that said order be made applicable to any unknownspouse, heir, devisee, personal representative, successor or assign of said parties.

12. The names and addresses of parties interested in this proceeding are set forth inExhibit "A" attached hereto and made a part hereof.

13. Please note the appearance of Thomas A. Daily of Daily & Woods, P.L.L.C.,P.O. Box 1446, Fort Smith, Arkansas, 72902, on behalf of applicant.

Very truly yours,

Thomas A. Dailyjmt

HESTER HALL LIVING TRUST 08-13 #1-4H DOCKET # SECTION 04-T08N-R13W 000-0000-00 FAULKNER COUNTY, AR

EXHIBIT A

INTERESTED PARTIES OXY USA, Inc. (see page 1 of Exhibit B)

XTO Energy, Inc. (see page 2 of Exhibit B)

Hall, Cecil & Carolyn (see page 3 of Exhibit B)

Hall, Bill aka Billy C. (see page 4 of Exhibit B)

Hall, Jerry (see page 5 of Exhibit B)

Findlay, Harriet H. (see page 6 of Exhibit B)

Spatz, Kenneth C. & Thea S. (see page 7 of Exhibit B)

Spatz, Daniel C. & Nona Jo (see page 8 of Exhibit B)

Spatz, David M. & Terri (see page 9 of Exhibit B)

Bollinger, Richard Klein Jr. (see page 10 of Exhibit B)

Stark, James Mitchell, Jr. (see page 11 of Exhibit B)

Veazey, Betty Flo Scammerhorn (see page 12 of Exhibit B)

Bennett, Nan Stark (see page 13 of Exhibit B)

Page 1 of 6


EXHIBIT A

INTERESTED PARTIES Stark, James M. & Virginia V. (see page 14 of Exhibit B)

Bollinger, Florence S. & Richard K. Sr. (see page 15 of Exhibit B)

Dickerson, William Martin (see page 16 of Exhibit B)

Dickerson, Florence – LIFE ESTATE (see page 17 of Exhibit B)

Dickerson-Himmler, Kathie Jane & Charles Himmler (see page 18 of Exhibit B)

Dickerson, Martin (see page 19 of Exhibit B)

Loy, Diana (see page 20 of Exhibit B)

Hollar, Lucille Stewart (see page 21 of Exhibit B)

Edwards, John Preston (see page 22 of Exhibit B)

Crafton, Maxine (see page 23 of Exhibit B)

Jones, Ruth T. (see page 24 of Exhibit B)

NCNB National Bank of Florida, Trustee of the C. J. Green Jr. Testamentary Trust (see page 25 of Exhibit B)

Whatley, Katherine (see page 26 of Exhibit B)

Page 2 of 6


EXHIBIT A

INTERESTED PARTIES Allison, James T. (see page 27 of Exhibit B)

Allison, Edward Harvey (see page 28 of Exhibit B)

Laney, Phillip E. (see page 29 of Exhibit B)

Laney, Phillip B. (see page 30 of Exhibit B)

Laney, Susan A. (see page 31 of Exhibit B)

Crafton, Leo III & Hal Crafton, Co-Trustees of the Mary Crafton Cross Revocable Trust, Dated 10/09/1997 (see page 32 of Exhibit B)

Crafton, Dorothy, Trustee of the Leo H. Crafton, Jr. Residuary Trust dated 3/27/1995 (see page 33 of Exhibit B)

Crafton, Leo III (see page 34 of Exhibit B)

Crafton, Hal (see page 35 of Exhibit B)

Tolleson, Clara Crafton (see page 36 of Exhibit B)

Webb, Virginia Ann (see page 37 of Exhibit B)

Rushin, Cynthia Lane (see page 38 of Exhibit B)

Page 3 of 6


EXHIBIT A

INTERESTED PARTIES Robinette, C. H., deceased, Known & Unknown Heirs of (see page 39 of Exhibit B)

Robinette, Clara (see page 40 of Exhibit B)

Robinette, Chesley H. (see page 41 of Exhibit B)

Simmons, Elizabeth Robinette (see page 42 of Exhibit B)

Robinette, Joe (see page 43 of Exhibit B)

Robinette, Charles (see page 44 of Exhibit B)

Robinette, Robert (see page 45 of Exhibit B)

Wisinger, Sarah F., deceased, Known & Unknown Heirs of (see page 46 of Exhibit B)

Scott, Morgan S. & Janice L. (see page 47 of Exhibit B)

Kesterson, Barbara A. & Scott (see page 48 of Exhibit B)

Robinette, Calvin (see page 49 of Exhibit B)

Watson, Cindy (see page 50 of Exhibit B)

Merritt, Shirley (see page 51 of Exhibit B)

Page 4 of 6


EXHIBIT A

INTERESTED PARTIES Robinette, Bruce (see page 52 of Exhibit B)

Clark, Marisa M. (see page 53 of Exhibit B)

Hall, Hester M., Individually (see page 54 of Exhibit B)

Linn, Don P. & Raye Jean (see page 55 of Exhibit B)

Brown, Robert & Judy (see page 56 of Exhibit B)

UNCOMMITTED WORKING INTEREST OWNERS

Chesapeake Exploration LP (see page 57 of Exhibit B)

BP America (see page 58 of Exhibit B)

Sedna Energy, Inc. (see page 59 of Exhibit B)

Sugarloaf Energy (see page 60 of Exhibit B)

Petrohawk Properties LP (see page 61 of Exhibit B)

Kidd, Trant L. (see page 62 of Exhibit B)

Brown, Jerry A. (see page 63 of Exhibit B)

Page 5 of 6


EXHIBIT A

INTERESTED PARTIES

Page 6 of 6

Oliver, Danny (see page 64 of Exhibit B)


EXHIBIT B

RESUME OF EFFORTS Township 08 North, Range 13 West Section 04: Tracts 2, 3, 4 OXY USA, Inc. formerly Cities Service Oil & Gas Corp. December 30, 2008 SEECO sent out a well proposal letter including AFE & JOA via Fed-X.

January 5, 2009 Well proposal letter and AFE mailed.

Page 1 of 64


EXHIBIT B

RESUME OF EFFORTS Township 08 North, Range 13 West Section 04: Tracts 2, 3, 4 XTO Energy, Inc. December 31, 2008 SEECO sent out a well proposal letter including AFE & JOA via Fed-X.


Page 2 of 64


EXHIBIT B

RESUME OF EFFORTS Township 08 North, Range 13 West Section 04: Tracts 2, 3, 4 Cecil Hall and Carolyn Hall December 26, 2007 Called Lessor and left message inquiring about leasing minerals.

January 12, 2008 Mailed letter to last address of record with official lease offer.

January 19, 2008 Spoke to relative. Lessors and relatives are shopping offer around to see if

another outfit will give them a higher price.

November 19, 2008 Mailing offer letter with current leasing terms.

November 25, 2008 Landman discussing terms with Jerry Hall who is speaking on behalf of Cecil Hall and Carolyn Hall at this point in time.

December 3, 2008 Landman is preparing lease packet with current high offer as the terms. Landman is mailing lease packet to interest owner at best current

December 5, 2008 Landman’s authority has changed for this area, in that it has gone up. Holding off on preparing leases at this time, so that interest owners may consider the new offer. Landman is contacting the numerous mineral owners to relate this offer to them.

December 9th, 2008 Spoke to woman at Jerry Hall’s residence, and left message for Jerry Hall.

December 18, 2008

Contacted Cecil and Carolyn Hall, they agreed to review a lease packet. Landman prepared packet for delivery.

January 5, 2009

Well proposal letter and AFE mailed.

Page 3 of 64


EXHIBIT B

RESUME OF EFFORTS Township 08 North, Range 13 West Section 04: Tracts 2, 3, 4 Bill Hall aka Billy C. Hall December 26, 2007 Called Lessor and left message inquiring about leasing minerals.





November 25, 2008 Landman discussing terms with Jerry Hall who is speaking on behalf of Billy C. Hall, currently.

December 3, 2008 Landman is preparing lease packet with current high offer as the terms. Landman is mailing lease packet to interest owner at best current address available.


December 9, 2008 Spoke to woman at Jerry Hall’s residence, and left message for Jerry Hall.

December 18, 2008

Contacted Billy Hall, he agreed to review a lease packet. Landman prepared packet for delivery.

January 5, 2009


Page 4 of 64


EXHIBIT B

RESUME OF EFFORTS Township 08 North, Range 13 West Section 04: Tracts 2, 3, 4 Jerry Hall December 26, 2007 Called Lessor and left message inquiring about leasing minerals.





November 25, 2008 Phone call placed to Jerry Hall. Went over offer with Jerry Hall. Interest owner is considering terms offered by landman.



December 9, 2008 Spoke to woman at Jerry Hall’s residence, and left message for Jerry Hall.

December 18, 2008

Contacted Jerry Hall and his wife, they agreed to review a lease packet. Landman prepared packet for delivery.


Page 5 of 64


EXHIBIT B

RESUME OF EFFORTS Township 08 North, Range 13 West Section 04: Tracts 2, 3, 4 Harriet H. Findlay December 26, 2007 Called Lessor and left message inquiring about leasing minerals.




November 19, 2008 Mailing offer letter with current leasing terms to best available address.

November 25, 2008 Landman has located a different possible address for the mineral owner and is sending out a new offer letter with contact information.



December 18, 2008 Agent is using internet, old phone books, the U. S. postal service, and other methods trying to locate Mrs. Findlay.

January 5, 2009


Page 6 of 64


EXHIBIT B

RESUME OF EFFORTS Township 08 North, Range 13 West Section 04: Tracts 2, 3, 4 Kenneth C. Spatz and Thea S. Spatz December 26, 2007 Called Lessor and left message inquiring about leasing minerals.





November 25, 2008 Interest owner has not made a decision on leasing process.



December 18, 2008

Contacted Mr. Spatz and he agreed to review a lease packet. Landman prepared packet for delivery. Thinks he can get a better offer, but would like to have our lease to review just in case.

January 5, 2009


Page 7 of 64


EXHIBIT B

RESUME OF EFFORTS Township 08 North, Range 13 West Section 04: Tracts 2, 3, 4 Daniel C. Spatz and Nona Jo Spatz December 26, 2007 Called Lessor and left message inquiring about leasing minerals.








December 18, 2008

Contacted Mr. Spatz and he agreed to review a lease packet. Landman prepared packet for delivery. Thinks he can get a better offer, but would like to have our lease to review just in case.

January 5, 2009


Page 8 of 64


EXHIBIT B

RESUME OF EFFORTS Township 08 North, Range 13 West Section 04: Tracts 2, 3, 4 David M. Spatz and Terri Spatz December 26, 2007 Called Lessor and left message inquiring about leasing minerals.








December 18, 2008

Contacted Mr. Spatz and he agreed to review a lease packet. Landman prepared packet for delivery. Thinks he can get a better offer, but would like to have our lease to review just in case, as his brothers also agreed to do.

January 5, 2009


Page 9 of 64


EXHIBIT B

RESUME OF EFFORTS Township 08 North, Range 13 West Section 04: Tracts 2, 3, 4 Richard Klein Bollinger, Jr. December 26, 2007 Called Lessor and left message inquiring about leasing minerals.


January 15, 2008 Mr. Stark is deceased. Landman is chaining out heirship.

January 22, 2008 Landman is working with distant relative to determine heirship

February 2, 2008 Spoke to another relative. Landman is preparing affidavits and lease forms for

review of potential mineral owner.


November 25, 2008 The deal that was in place in February fell through. Landman has begun new set of negotiations with mineral owner.


December 10, 2008

Landman has spoken with family head, Rick Bollinger, in this matter. We came to new terms. Landman is preparing paperwork.

December 18, 2008

Landman is set to deliver lease packets.

January 5, 2009


Page 10 of 64


EXHIBIT B

RESUME OF EFFORTS Township 08 North, Range 13 West Section 04: Tracts 2, 3, 4 James Mitchell Stark, Jr. December 26, 2007 Called Lessor and left message inquiring about leasing minerals.









December 10, 2008


December 18, 2008


January 5, 2009


Page 11 of 64


EXHIBIT B

RESUME OF EFFORTS Township 08 North, Range 13 West Section 04: Tracts 2, 3, 4 Betty Flo Scammerhorn Veazey December 26, 2007 Called Lessor and left message inquiring about leasing minerals.









December 10, 2008


December 18, 2008


January 5, 2009


Page 12 of 64


EXHIBIT B

RESUME OF EFFORTS Township 08 North, Range 13 West Section 04: Tracts 2, 3, 4 Nan Stark Bennett December 26, 2007 Called Lessor and left message inquiring about leasing minerals.









December 10, 2008


December 18, 2008


January 5, 2009


Page 13 of 64


EXHIBIT B

RESUME OF EFFORTS Township 08 North, Range 13 West Section 04: Tracts 2, 3, 4 James M. Stark and Virginia V. Stark December 26, 2007 Called Lessor and left message inquiring about leasing minerals.







November 25 2008 The deal that was in place in February fell through. Landman has begun new set of negotiations with mineral owner.

December 3, 2008

Landman is preparing lease packet with current high offer as the terms. Landman is mailing lease packet to interest owner at best current address available.

December 10, 2008


December 18, 2008


January 5, 2009


Page 14 of 64


EXHIBIT B

RESUME OF EFFORTS Township 08 North, Range 13 West Section 04: Tracts 2, 3, 4 Florence S. Bollinger and Richard K. Bollinger, Sr. December 26, 2007 Called Lessor and left message inquiring about leasing minerals.


February 5, 2008 Landman has located son of mineral owners and is negotiating lease terms.


November 25, 2008 The deal that was in place in February fell through. Landman has begun new set

of negotiations with mineral owner.

December 3, 2008 Landman is preparing lease packet with current high offer as the terms. Landman is mailing lease packet to interest owner.

December 10, 2008 Landman has spoken with family head, Rich Bollinger, in this matter. We came to new terms. Landman is preparing paperwork.

December 18, 2008


January 5, 2009


Page 15 of 64


EXHIBIT B

RESUME OF EFFORTS Township 08 North, Range 13 West Section 04: Tracts 2, 3, 4 William Martin Dickerson December 26, 2007 Called old neighbor of Lessor and left message inquiring about leasing minerals.


January 23, 2008 Landman believes this mineral owner may be deceased. Trying to locate other

relatives.


November 25, 2008 Landman has located a different possible address of interest owner, sending contact info and offer letter.



December 18, 2008 Agent is using internet, old phone books, the U. S. postal service, and other methods trying to locate Mr. Dickerson. Have a possible lead with a possible relative.

January 5, 2009

Well proposal letter and AFE mailed to best current address.

Page 16 of 64


EXHIBIT B

RESUME OF EFFORTS Township 08 North, Range 13 West Section 04: Tracts 2, 3, 4 Florence Dickerson – LIFE ESTATE Remaindermen: Kathie Jane Dickerson-Himmler, Martin Dickerson and Diana Loy December 26, 2007 Called Lessor and left message inquiring about leasing minerals.



November 25, 2008 Landman has located new possible address of interest owner, sending contact

info and offer letter.



December 18, 2008 Agent is using internet, old phone books, the U. S. postal service, and other methods trying to locate Mrs. Dickerson. Have a possible lead with a possible relative.

January 5, 2009 Well proposal letter and AFE mailed to best current address.

Page 17 of 64


EXHIBIT B

RESUME OF EFFORTS Township 08 North, Range 13 West Section 04: Tracts 2, 3, 4 Katie Jane Dickerson-Himmler and Charles Himmler December 26, 2007 Called Lessor and left message inquiring about leasing minerals.


November 19, 2008 Mailing offer letter with current leasing terms to best currently available address.

November 25, 2008 Landman has located new possible address of interest owner, sending contact info

and offer letter.



December 18, 2008 Interest owners have agreed to review lease packet after Christmas. Agent will prepare lease for them and deliver at their discretion.


Page 18 of 64


EXHIBIT B

RESUME OF EFFORTS Township 08 North, Range 13 West Section 04: Tracts 2, 3, 4 Martin Dickerson December 26, 2007 Called Lessor and left message inquiring about leasing minerals.



November 25, 2008 Landman has located different possible address of interest owner, sending contact




December 18, 2008 Agent is using internet, old phone books, the U. S. postal service, and other methods trying to locate Mr. and Mrs. Dickerson. Have a possible lead with a possible relative.

January 5, 2009 Well proposal letter and AFE mailed to best current address known.

Page 19 of 64


EXHIBIT B

RESUME OF EFFORTS Township 08 North, Range 13 West Section 04: Tracts 2, 3, 4 Diana Loy December 26, 2007 Called Lessor and left message inquiring about leasing minerals.


February 5, 2008 Landman has possibly located mineral owner at different location. Trying to

contact.


November 25, 2008 Landman has located another possible address of interest owner, sending contact info and offer letter.



December 18, 2008 Ms. Loy agreed to review lease packet after Christmas. Agent will prepare lease for them and deliver at their discretion. She is also helping to locate some other interest owners.

January 5, 2009


Page 20 of 64


EXHIBIT B

RESUME OF EFFORTS Township 08 North, Range 13 West Section 04: Tracts 2, 3, 4 Lucille Stewart Hollar December 26, 2007 Called Lessor and left message inquiring about leasing minerals.


February 5, 2008 No response from letter mailed. Still trying to locate. Landman believes to have

a good address, but no response.

November 19, 2008 Mailing offer letter with current leasing terms to best currently available address.

November 25, 2008 Landman has located a different address for interest owner, sending contact info and offer letter.



December 18, 2008 Agent is using internet, old phone books, the U. S. postal service, and other methods trying to locate Mrs. Dickerson. Have a possible lead with a possible relative.

January 5, 2009

Well proposal letter and AFE mailed to best current address.

Page 21 of 64


EXHIBIT B

RESUME OF EFFORTS Township 08 North, Range 13 West Section 04: Tracts 2, 3, 4 John Preston Edwards December 26, 2007 Called Lessor and left message inquiring about leasing minerals.


February 1, 2008 No response from letter mailed. Still trying to locate.

February 5, 2008 Landman found possible widow. Trying to contact.


November 25, 2008 Landman has located different possible address of interest owner, sending contact




December 18, 2008

Mr. Edwards has agreed to review our offer. He has requested a lease packet. He will consider our offer and also speak to his other relatives about it as well.

January 5, 2009


Page 22 of 64


EXHIBIT B

RESUME OF EFFORTS Township 08 North, Range 13 West Section 04: Tracts 2, 3, 4 Maxine Crafton December 26, 2007 Called Lessor and left message inquiring about leasing minerals.


February 5, 2008 Landman has not located mineral owner. Possibly deceased.

November 19, 2008 Mailing offer letter with current leasing terms to best address currently available.

November 25, 2008 Landman has located a new possible address of interest owner, sending contact


December 3, 2008 Landman is preparing lease packet with current high offer as the terms. Landman is mailing lease packet to interest owner at best current address available


December 18, 2008 Interest owner is waiting to see what Mr. Edwards will do in this matter.

January 5, 2009


Page 23 of 64


EXHIBIT B

RESUME OF EFFORTS Township 08 North, Range 13 West Section 04: Tracts 2, 3, 4 Ruth T. Jones December 26, 2007 Called Lessor and left message inquiring about leasing minerals.


January 23, 2008 Landman believes this mineral owner may be deceased. Trying to locate other

relatives.


November 25, 2008 Landman has located a new possible address of interest owner, sending contact info and offer letter.



December 18, 2008 Agent is using internet, old phone books, the U. S. postal service, and other methods trying to locate Mrs. Jones.

January 5, 2009

Well proposal letter and AFE mailed to best currently available address.

Page 24 of 64


EXHIBIT B

RESUME OF EFFORTS Township 08 North, Range 13 West Section 04: Tracts 2, 3, 4 NCNB National Bank of Florida, Trustee of the C.J. Green Jr. Testamentary Trust December 26, 2007 Called Lessor and left message inquiring about leasing minerals.


February 5, 2008 Landman has not located mineral owner. Possibly deceased.

November 19, 2008 Mailing offer letter with current leasing terms to best address available.





December 18, 2008 Agent is using internet, old phone books, the U. S. postal service, and other methods trying to locate C.J. Green.

January 5, 2009

Well proposal letter and AFE mailed to best currently available address.

Page 25 of 64


EXHIBIT B

RESUME OF EFFORTS Township 08 North, Range 13 West Section 04: Tracts 2, 3, 4 Katherine Whatley December 26, 2007 Called Lessor and left message inquiring about leasing minerals.


February 5, 2008 Landman has not located Ms. Whatley. Possibly deceased.






December 18, 2008 Agent is using internet, old phone books, the U. S. postal service, and other methods trying to locate Mrs. Whatley. Have a possible lead with a possible relative.

January 5, 2009

Well proposal letter and AFE mailed to best last known address.

Page 26 of 64


EXHIBIT B

RESUME OF EFFORTS Township 08 North, Range 13 West Section 04: Tracts 2, 3, 4 James T. Allison December 26, 2007 Called Lessor and left message inquiring about leasing minerals.


February 5, 2008 Landman has not located Mr. Allison. Possibly deceased.


November 25, 2008 Landman has located a different possible address of interest owner, sending

contact info and offer letter.



December 17, 2008 Interest owner is considering our offer, wants to shop it around some.

January 5, 2009


Page 27 of 64


EXHIBIT B

RESUME OF EFFORTS Township 08 North, Range 13 West Section 04: Tracts 2, 3, 4 Edward Harvey Allison December 26, 2007 Called Lessor and left message inquiring about leasing minerals.


February 5, 2008 Landman has not located Mr. Allison. Possibly deceased.

November 19, 2008 Mailing offer letter with current leasing terms to best known address.





December 17, 2008 Interest owner is considering our offer, wants to shop it around some.

January 5, 2009


Page 28 of 64


EXHIBIT B

RESUME OF EFFORTS Township 08 North, Range 13 West Section 04: Tracts 2, 3, 4 Phillip E. Laney December 26, 2007 Called Lessor and left message inquiring about leasing minerals.


January 31 2008 Landman is discussing lease terms with mineral owner. He will discuss this

process with his family. They want to get the best deal that they can.


November 25, 2008 Landman has located different possible address of interest owner, sending contact info and offer letter.



December 17, 2008 Interest owner has agreed to lease. Preparing a lease packet.

January 5, 2009


Page 29 of 64


EXHIBIT B

RESUME OF EFFORTS Township 08 North, Range 13 West Section 04: Tracts 2, 3, 4 Phillip B. Laney December 26, 2007 Called Lessor and left message inquiring about leasing minerals.


January 31 2008 Landman is discussing lease terms with son of mineral owner. He will discuss

this process with his family. They want to get the best deal that they can.


November 25, 2008 Landman has located new possible address of interest owner, sending contact info and offer letter.




January 5, 2009


Page 30 of 64


EXHIBIT B

RESUME OF EFFORTS Township 08 North, Range 13 West Section 04: Tracts 2, 3, 4 Susan A. Laney December 26, 2007 Called Lessor and left message inquiring about leasing minerals.


January 31 2008 Landman is discussing lease terms with family of mineral owner. He will discuss

this process with his family. They want to get the best deal that they can.


November 25, 2008 Landman has located new possible address of interest owner, sending contact info and offer letter.




January 5, 2009


Page 31 of 64


EXHIBIT B

RESUME OF EFFORTS Township 08 North, Range 13 West Section 04: Tracts 2, 3, 4 Leo Crafton III and Hal Crafton, Co-Trustees of the Mary Crafton Cross Revocable Trust, Dated 10/09/1997 December 26, 2007 Called Lessor and left message inquiring about leasing minerals.


January 29, 2008 Landman is still trying to locate mineral owner.

November 19, 2008 Mailing offer letter with current leasing terms to best address available.





December 17, 2008

Landman is still using multiple resources to locate mineral owner. Mailing a lease packet to several possible addresses.

January 5, 2009


Page 32 of 64


EXHIBIT B

RESUME OF EFFORTS Township 08 North, Range 13 West Section 04: Tracts 2, 3, 4 Dorothy Crafton, Trustee of the Leo H. Crafton Jr. Residuary Trust dated 3/27/1995 Remaindermen: Leo Crafton III and Hal Crafton December 26, 2007 Called Lessor and left message inquiring about leasing minerals.



November 19, 2008 Mailing offer letter with current leasing terms to best possible address.





December 17, 2008


January 5, 2009

Well proposal letter and AFE mailed to best current address available.

Page 33 of 64


EXHIBIT B

RESUME OF EFFORTS Township 08 North, Range 13 West Section 04: Tracts 2, 3, 4 Leo Crafton III December 26, 2007 Called Lessor and left message inquiring about leasing minerals.



November 19, 2008 Mailing offer letter with current leasing terms to best possible address.





December 17, 2008


January 5, 2009

Well proposal letter and AFE mailed to best current address available.

Page 34 of 64


EXHIBIT B

RESUME OF EFFORTS Township 08 North, Range 13 West Section 04: Tracts 2, 3, 4 Hal Crafton December 26, 2007 Called Lessor and left message inquiring about leasing minerals.



November 19, 2008 Mailing offer letter with current leasing terms to best known possible address.

November 25, 2008 Landman has located another possible address of interest owner, sending contact

info and offer letter



December 17, 2008


January 5, 2009

Well proposal letter and AFE mailed to best possible address available.

Page 35 of 64


EXHIBIT B

RESUME OF EFFORTS Township 08 North, Range 13 West Section 04: Tracts 2, 3, 4 Clara Crafton Tolleson December 26, 2007 Called Lessor and left message inquiring about leasing minerals.





and offer letter



December 17, 2008


January 5, 2009


Page 36 of 64


EXHIBIT B

RESUME OF EFFORTS Township 08 North, Range 13 West Section 04: Tracts 2, 3, 4 Virginia Ann Webb December 26, 2007 Called Lessor and left message inquiring about leasing minerals.





and offer letter



December 17, 2008

Landman is still using multiple resources to locate mineral owner. Located address from previously executed lease in another county. Mailing a lease packet to new possible address.

January 5, 2009


Page 37 of 64


EXHIBIT B

RESUME OF EFFORTS Township 08 North, Range 13 West Section 04: Tracts 2, 3, 4 Cynthia Lane Rushin December 26, 2007 Called Lessor and left message inquiring about leasing minerals.





and offer letter



December 17, 2008


January 5, 2009


Page 38 of 64


EXHIBIT B

RESUME OF EFFORTS Township 08 North, Range 13 West Section 04: Tracts 2, 3, 4 Known and Unknown Heirs of C. H. Robinette, deceased January 12, 2008 Mailed letter to last address of record with official lease offer.

January 29, 2008 Landman is still trying to locate true mineral owner.


November 25, 2008 Landman has located possible heirs of interest owner, sending contact info and

offer letter

December 3, 2008 Landman is preparing lease packet with current high offer as the terms. Landman is mailing lease packet to interest owner at best current address available for possible heirs.


December 17, 2008

Landman is still using multiple resources to locate mineral owners. Mailing a lease packet to several possible addresses.

January 5, 2009


Page 39 of 64


EXHIBIT B

RESUME OF EFFORTS Township 08 North, Range 13 West Section 04: Tracts 2, 3, 4 Clara Robinette December 26, 2007 Called Lessor and left message inquiring about leasing minerals.








December 17, 2008 Interest owner is considering our offer. She wants to review our lease, and discuss with her family.

January 5, 2009


Page 40 of 64


EXHIBIT B

RESUME OF EFFORTS Township 08 North, Range 13 West Section 04: Tracts 2, 3, 4 Chesley H. Robinette December 26, 2007 Called Lessor and left message inquiring about leasing minerals.





November 25, 2008 Landman has located a different possible address of interest owner, sending contact info and offer letter.



December 17, 2008 Interest owner wants to discuss their options with a couple of family members and other interest owners.

January 5, 2009


Page 41 of 64


EXHIBIT B

RESUME OF EFFORTS Township 08 North, Range 13 West Section 04: Tracts 2, 3, 4 Elizabeth Robinette Simmons December 26, 2007 Called Lessor and left message inquiring about leasing minerals.




January 19, 2008 Spoke to a different relative. Lessors and relatives are shopping offer around to see if another outfit will give them a higher price. This interest has passed to heirs, as she is deceased. Landman is not preparing affidavit of heirship at this time, because this family is shopping around for a higher offer.





December 17, 2008 Interest owner wants to discuss with a couple of family members and other interest owners regarding their options. She is also looking in to her paperwork to see if she can help us locate some of the unfound mineral owners.

January 5, 2009


Page 42 of 64


EXHIBIT B

RESUME OF EFFORTS Township 08 North, Range 13 West Section 04: Tracts 2, 3, 4 Joe Robinette December 26, 2007 Called Lessor and left message inquiring about leasing minerals.



another outfit will give them a higher price. This interest has passed to Joe Robinette’s heirs, as he is deceased. Landman is not preparing affidavit of heirship at this time, because this family is shopping around for a higher offer.

November 25, 2008 Landman has located another possible address of interest owner, sending contact info and offer letter.



December 17, 2008 Interest owner still considering our offer. Agent is going to prepare a lease packet for him to fully review.


Page 43 of 64


EXHIBIT B

RESUME OF EFFORTS Township 08 North, Range 13 West Section 04: Tracts 2, 3, 4 Charles Robinette December 26, 2007 Called Lessor and left message inquiring about leasing minerals.


January 19, 2008 Spoke to Lessor. Lessors and relatives are shopping offer around to see if another

outfit will give them a higher price.


November 25, 2008 Landman has located a new possible address of interest owner, sending contact info and offer letter.



December 17, 2008 Interest owner has agreed to lease. Agent is preparing paperwork.

January 5, 2009


Page 44 of 64


EXHIBIT B

RESUME OF EFFORTS Township 08 North, Range 13 West Section 04: Tracts 2, 3, 4 Robert Robinette December 26, 2007 Called Lessor and left message inquiring about leasing minerals.









Page 45 of 64


EXHIBIT B

RESUME OF EFFORTS Township 08 North, Range 13 West Section 04: Tracts 2, 3, 4 Known and Unknown Heirs of Sarah F. Wisinger, deceased December 26, 2007 Called Lessor and left message inquiring about leasing minerals.





November 25, 2008 Landman has determined heirship and is preparing paperwork to mail out.

December 3, 2008 Landman is preparing lease packet with current high offer as the terms. Landman is mailing lease packets to heirs for their review.




Page 46 of 64


EXHIBIT B

RESUME OF EFFORTS Township 08 North, Range 13 West Section 04: Tracts 2, 3, 4 Morgan S. Scott and Janice L. Scott December 26, 2007 Called Lessor and left message inquiring about leasing minerals.









Page 47 of 64


EXHIBIT B

RESUME OF EFFORTS Township 08 North, Range 13 West Section 04: Tracts 2, 3, 4 Barbara A. Scott Kesterson December 26, 2007 Called Lessor and left message inquiring about leasing minerals.




February 5, 2008 Landman has spoken again with Mrs. Kesterson, and she would like a SEECO lease packet sent to her. Landman is preparing paperwork.


December 3, 2008 Interest owner has signed lease. Landman is preparing paperwork.


Page 48 of 64


EXHIBIT B

RESUME OF EFFORTS Township 08 North, Range 13 West Section 04: Tracts 2, 3, 4 Calvin Robinette December 26, 2007 Called Lessor and left message inquiring about leasing minerals.









Page 49 of 64


EXHIBIT B

RESUME OF EFFORTS Township 08 North, Range 13 West Section 04: Tracts 2, 3, 4 Cindy Watson December 26, 2007 Called Lessor and left message inquiring about leasing minerals.







December 17, 2008 Landman is still using multiple sources to find mineral owner. Agent will mail lease packets to several possible addresses.


Page 50 of 64


EXHIBIT B

RESUME OF EFFORTS Township 08 North, Range 13 West Section 04: Tracts 2, 3, 4 Shirley Merritt December 26, 2007 Called Lessor and left message inquiring about leasing minerals.







December 17, 2008 Landman is still using multiple sources to find mineral owner. Agent will mail lease packets to several possible addresses.


Page 51 of 64


EXHIBIT B

RESUME OF EFFORTS Township 08 North, Range 13 West Section 04: Tracts 2, 3, 4 Bruce Robinette December 26, 2007 Called Lessor and left message inquiring about leasing minerals.







December 17, 2008 Interest owner has agreed to review lease packet but is not committed to leasing at this time.


Page 52 of 64


EXHIBIT B

RESUME OF EFFORTS Township 08 North, Range 13 West Section 04: Tracts 2, 3, 4 Marisa M. Clark December 26, 2007 Called Lessor and left message inquiring about leasing minerals.


February 5, 2008 Landman is still trying to locate.


December 3, 2008 Landman is preparing lease packet with current high offer as the terms. Landman

is mailing lease packet to interest owner at best current address available.

December 10, 2008 Landman has made new agreement with interest owner and is preparing paperwork to deliver to interest owner.

December 17, 2008 Interest owner has agreed to lease. Preparing paperwork.


Page 53 of 64


EXHIBIT B

RESUME OF EFFORTS Township 08 North, Range 13 West Section 04: Tracts 3, 4 Hester M. Hall, Individually December 26, 2007 Called Lessor and left message inquiring about leasing minerals.


February 5, 2008 Lessor believes that minerals have already been leased. Landman is trying to

confirm.


December 3, 2008 Landman is working with Jerry Hall on this matter at the behest of Hester.


December 17, 2008 Interest owner is waiting to see what her sons do.


Page 54 of 64


EXHIBIT B

RESUME OF EFFORTS Township 08 North, Range 13 West Section 04: Tract 4 Don P. Linn and Raye Jean Linn December 26, 2007 Called Lessor and left message inquiring about leasing minerals.




February 5, 2008 Lessor believes that minerals have already been leased. Landman is trying to confirm.




December 17, 2008 The partners want to discuss the lease offer agent made to them. They think they can get a better offer, but might also participate.

January 5, 2009


Page 55 of 64


EXHIBIT B

RESUME OF EFFORTS Township 08 North, Range 13 West Section 04: Tract 4 Robert Brown and Judy Brown December 26, 2007 Called Lessor and left message inquiring about leasing minerals.


February 5, 2008 Lessor believes that minerals have already been leased. Landman is trying to

confirm.




December 17, 2008 The partners want to discuss the lease offer agent made to them. They think they can get a better offer, but might also participate.


Page 56 of 64


EXHIBIT B

RESUME OF EFFORTS Township 08 North, Range 13 West Section 04: Tracts 2, 3, 4, 7, 8 Chesapeake Exploration LP December 18, 2008 SEECO sent out a well proposal letter including AFE & JOA via Fed-X.

Page 57 of 64


EXHIBIT B

RESUME OF EFFORTS Township 08 North, Range 13 West Section 04: Tracts 2, 3, 4, 7, 8 BP America Production Company December 30, 2008 SEECO sent out a well proposal letter including AFE & JOA via Fed-X.

Page 58 of 64


EXHIBIT B

RESUME OF EFFORTS Township 08 North, Range 13 West Section 04: Tracts 9, 11, 12 Sedna Energy, Inc. December 18, 2008 SEECO sent out a well proposal letter including AFE & JOA via Fed-X.

Page 59 of 64


EXHIBIT B

RESUME OF EFFORTS Township 08 North, Range 13 West Section 04: Tracts 9, 11, 12 Sugarloaf Energy Company LLC December 30, 2008 SEECO sent out a well proposal letter including AFE & JOA via Fed-X.

Page 60 of 64


EXHIBIT B

RESUME OF EFFORTS Township 08 North, Range 13 West Section 04: Tracts 14, 15 Petrohawk Properties LP December 18, 2008 SEECO sent out a well proposal letter including AFE & JOA via Fed-X.

Page 61 of 64


EXHIBIT B

RESUME OF EFFORTS Township 08 North, Range 13 West Section 04: Tracts 2, 3, 4 Trant L. Kidd December 30, 2008 SEECO sent out a well proposal letter including AFE & JOA via Fed-X.

Page 62 of 64


EXHIBIT B

RESUME OF EFFORTS Township 08 North, Range 13 West Section 04: Tracts 2, 3, 4 Jerry A. Brown December 30, 2008 SEECO sent out a well proposal letter including AFE & JOA via Fed-X.

Page 63 of 64


EXHIBIT B

RESUME OF EFFORTS

Page 64 of 64

Township 08 North, Range 13 West Section 04: Tracts 2, 3, 4 Danny Oliver December 30, 2008 SEECO sent out a well proposal letter including AFE & JOA via Certified Mail.

EXHIBIT “C”Applicant’s statement regarding Operating Agreement

Docket Reference No. 032-2009-01

The applicant requests incorporation of the Model Form Joint Operating Agreement

approved by the Arkansas Oil and Gas Commission on October 24, 2006, with Paragraph

III.1.A.(1) of the COPAS providing for a drilling well rate of $8,080.00 and a producing

well rate of $808.00 , and with the following proposed revisions, deletions and/or

insertions, if applicable:

NONE

Documents

032-2009-01 - aogc2.state.ar.us