BEFORE THE BOARD OF OIL, GAS AND MINING ......2014/09/29 · Englewood, CO 80112 Steven F. Alder Assistant Attorneys General Utah Division of Oil, Gas & Mining 1594 W North Temple,

BEFORE THE BOARD OF OIL, GAS AND MINING

DEPARTMENT OF NATURAL RESOURCES STATE OF UTAH

IN THE MA TIER OF THE REQUEST FOR AGENCY

ACTION OF ULTRA RESOURCES, INC. FOR AN

ORDER EXTENDING THE BOARD'S ORDER

ENTERED IN CAUSE 270-02 TO ESTABLISH 40-ACRE (OR SUBSTANTIAL EQUIVALENT) DRILLING

UNITS FOR THE PRODUCTION OF OIL, GAS AND

ASSOCIA TED HYDROCARBONS FROM THE EOCENE

MIDDLE AND LOWER GREEN RIVER

FORMATIONS UNDERLYING THE NWV4SEV4 AND

SWV4SEV4 OF SECTION 27, TOWNSHIP 7 SOUTH,

RANGE 20 EAST, SLM, UINTAH COUNTY, UTAH,

AND AUTHORIZING UP TO TWO (2) WELLS ON

EACH SUCH DRILLING UNIT SO ESTABLISHED

NOTICE OF HEARING

Docket No. 2014-038 Cause No. 270-06

THE STATE OF UTAH TO ALL PERSONS INTERESTED IN ABOVE ENTITLED MATTER.

Notice is hereby given that the Board of Oil, Gas and Mining ("Board"), State of Utah, will conduct a hearing on WEDNESDAY, OCTOBER 22,2014, at 9:00 AM, or as soon thereafter as possible, in the auditorium of the Department of Natural Resources, 1594 West North Temple, Salt Lake City, Utah.

The hearing will be conducted as a formal administrative adjudication in accordance with the rules of the Board as set forth in Utah Administrative Code R641 et seq. and as provided for in Utah Code Ann. § 40-6-1 et seq. and Utah Code Ann. § 63G-4-101 through 601.

The purpose of the hearing will be for the Board to receive testimony and evidence regarding a Request for Agency Action that the Board enter an Order:

1. Extending the Board's Order entered on November 9, 2013, in Cause No. 270 02 (the "270-02 Order") establishing 40-acre drilling units for the production of oil, gas and associated hydrocarbons from the Eocene Middle and Lower Green River formations, defined in the 270-02 Order as follows:

the stratigraphic equivalent of the interval between the TGR3 marker, as found at 5,019 feet (measured depth), and the base of the Uteland Butte member, as found at 6,746 feet (measured

depth), in the Axia Energy Three Rivers 2-13-820 Well located in the SW\I4NW\14 of Section 2, T8S, R20E, SLM,

(the "Subject Formations"), comprised of the following Uintah County, Utah lands:

Township 7 South, Range 20 East. SLM

respectively (the "Subject Lands");

Section 27: NWY4SEY4 Section 27: SWY4SEY4

2. Authorizing up to two (2) producing wells per drilling unit so established; provided no well may be located closer than 460 feet to a shared drilling unit/lease boundary line and no closer than 100 feet if the adjacent lands are within the same lease and have the same production interest owners, without an exception location approval in accordance with Utah Admin. Code Rule R649-3-3 (or subsequently enacted equivalent regulation);

3. Declaring the existing wells producing from the Subject Formations upon the Subject Lands to be at legal locations notwithstanding the relief requested;

4. Expressly ordering that Utah Admin. Code Rule R649-3-11(1.1) is inapplicable to any directionally drilled well on the drilling units so established as long as the productive intervals are within the setbacks so established and with the caveat that, if an uphole completion closer than the setback is subsequently proposed, an exception location approval in accordance with Utah Admin. Code Rule R649-3-3 (or subsequently enacted equivalent regulation) will be required; and

5. Provide for such other and further relief as may be just and equitable under the circumstances.

Objections to the Request for Agency Action must be filed with the Secretary of the Board at the address listed below no later than the 10th day of the month, or two weeks before the scheduled hearing, whichever is earlier. A party must file a timely written objection or other response in order to participate as a party at the Board hearing. Failure to participate can result in a default judgment.

Natural persons may appear and represent themselves before the Board. All other representation of parties before the Board will be by attorneys licensed to practice law in the State of Utah, or attorneys licensed to practice law in another jurisdiction which meet the rules of the Utah State Bar for practicing law before the Utah Courts.

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Persons interested in this matter may participate pursuant to the procedural rules of the Board. The Request for Agency Action, and any subsequent pleadings, may be inspected at the office of the undersigned, and inspected online at the Utah Board of Oil, Gas and Mining's website at http://ogm.utah.gov/arnrlboardtemp/redesignlbooks.html.

Pursuant to the Americans with Disabilities Act, persons requiring auxiliary communicative aids and services to enable them to participate in this hearing should call Julie Ann Carter at (801) 538-5277, at least three working days prior to the hearing date.

DATED this 29th day of September, 2014.

STATE OF UTAH BOARD OF OIL, GAS AND MINING Ruland J. Gill, Jr., Chairman

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CERTIFICATE OF PUBLISHED NOTICE

I hereby certify that I caused a true and correct copy of the foregoing NOTICE OF HEARING for Docket No. 2014-035 Cause No. 139-124 to be PUBLISHED in the following newspapers on the following days:

October 5, 2014: The Salt Lake Tribune and Deseret Morning News, newspapers of general circulation in Salt Lake City and County.

October 7, 2014: Uintah Basin Standard, a newspaper of general circulation in Duchesne and Uintah Counties.

October 7, 2014: Vernal Express, a newspaper of general circulation in Daggett and Uintah Counties.

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CERTIFICATE OF SERVICE

I hereby certify that on this 29th day of September, 2014, I caused a true and correct copy

of the foregoing NOTICE OF HEARING for Docket No. 2014-038, Cause No. 270-06, to be

mailed by Email or via First Class Mail with postage prepaid, to the following:

J. Brent Allen, Esq. Relma M. Miller, Esq. MacDonald & Miller Mineral Legal Services, PLLC 7090 S. Union Park Avenue, Suite 400 Salt Lake City, UT 84047

Attorneys for Petitioner Ultra Resources, Inc.

Michael S. Johnson Assistant Attorney General Utah Board of Oil, Gas & Mining 1594 W North Temple, Suite 300 Salt Lake City, UT 84116 [Via Email]

Suzanne Okelberry P.O. Box 1481 Bountiful, UT 84011

Rosemary Rogers P.O. Box 1364 Bountiful, UT 84011

Lynn Rodger Calder 2611 South 450 East Bountiful, UT 84010

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Mary Sharon Balakas CPL, Director of Land Ultra Resources, Inc.304 Inverness Way South, Suite 295 Englewood, CO 80112

Steven F. Alder Assistant Attorneys General Utah Division of Oil, Gas & Mining 1594 W North Temple, Suite 300 Salt Lake City, UT 84116 [Via Email]

E J Winder Family LLC c/o Kenneth A. and Kareen R. Winder 333 Kensington Drive Lehi, UT 84043

Zoila Leticia Calder 1690 Mountain Circle Fruit Heights, UT 84037

Wasatch Oil & Gas, LLC 1010 North 500 East, Ste. 320 North Salt Lake, UT 84054

Bret Calder, Co-Trustee Calder Irrevocable Trust 12367 South 2320 West Riverton, UT 84065

Irene Calder Berkoff, Ttee. of the Calder Family Trust 21797 SW. Oak Hill Lane Tualatin, OR 97062

EnCana Oil and Gas (USA) Inc. 370 1 ih Street, Suite 1700 Denver, CO 80202

Bill Barrett Corporation 1099 18th Street, #2300 Denver, CO 80202

Newfield Production Company 100 1 17th Street, #2000 Denver, CO 80202

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Stonegate Resources, LLC P.O. Box 680667 Park City, UT 84068-0667

Joann W. Hunting 2575 South 2400 East Vernal, UT 84078

Crescent Point Energy U.S. Corp. 555 1 ih Street, Suite 1800 Denver, CO 80202

Robert L. Bayless, Producer LLC 62 1 1 ih Street, Suite 2300 Denver, CO 80293

Salt Lake Tribune & Deseret News Published on Sunday, October 5, 2014

NOTICE OF HEARING BEFORE THE BOARD OF OIL, GAS AND MINING


THE STATE OF UTAH TO ALL PERSONS INTERESTED IN THE FOLLOWING MATTERS (Docket Nos. 2014-031, 2014-033, 2014-034, 2014-035, 2014-037, 2014-038, and 2014-039): NOTICE IS HEREBY GIVEN that the Board of Oil, Gas and Mining (“Board”), State of Utah, will conduct a hearing on WEDNESDAY, October 22, 2014, at 9:00 AM, or as soon thereafter as possible, in the auditorium of the Department of Natural Resources, 1594 West North Temple, Salt Lake City, Utah. THE HEARING WILL BE CONDUCTED as a formal administrative adjudication in accordance with the rules of the Board as set forth in Utah Administrative Code R641 et seq. and as provided for in Utah Code Ann. § 40-6-1 et seq., Utah Code Ann. § 40-8-1 et seq., and Utah Code Ann. § 63G-4-101 through 601. DOCKET NO. 2014-031 CAUSE NO. 191-06 – In the Matter of the Request for Agency Action of QEP Energy Company for an Order suspending the application of Utah Admin. Code R649-3-2, R649-3-10, and R649-3-11(1) and (2) for the Ouray Park II Federal Exploratory Unit, covering all of Section 2, all of Section 3, the N1/2, N1/2S1/2, S1/2SE1/4, and the SE1/4SW1/4 of Section 10, the W1/2NE1/4, W1/2, SE1/4NE1/4, and the SE1/4 of Section 11, the W1/2SW1/4 and the SE1/4SWl/4 of Section 12, and the E1/2 of Section 14, Township 7 South, Range 20 East, SLM, Uintah County, Utah. THE PURPOSE OF THE PROCEEDING will be for the Board to receive testimony and evidence regarding a Request for Agency Action that the Board enter an Order: 1. Suspending Utah Admin. Code R649-3-2, R649-3-10, and R649-3-11(l) and (2) for the Ouray Park II Federal Exploratory Unit ("OP II Unit"), covering the following lands:

Township 7 South, Range 20 East, SLM Section 2: All Section 3: All Section 10: N½, N½S½, S½SE¼, SE¼SW¼ Section 11: W½NE¼, W½, SE¼NE¼, SE¼ Section 12: W½SW¼, SE¼SW¼ Section 14: E½

(the “Subject Lands”); 2. Providing that the producing interval in any future well may not be located closer than 460 feet to the boundaries of the OP II Unit without obtaining an exception location from the Division pursuant to Utah Admin. Code R649-3-3; 3. Providing that no well may be directionally drilled if any producing portion of the 460 foot radius along the projected wellbore intersects with the boundaries of the OP II Unit without complying with the requirements of Utah Admin. Code R649-3-11; 4. Providing that QEP or its successor as unit operator of the OP II Unit agrees to provide (1) a plat or sketch showing the distance to lease boundaries and the target location with any

application for permit to drill filed for a directionally drilled well and (2) a copy of the annual plan of development and operation for the OP II Unit; 5. Providing the requested suspension of these rules will remain in effect only for as long as the Subject Lands are committed to the OP II Unit; and 6. Providing for such other and further relief as may be just and equitable under the circumstances. DOCKET NO. 2014-033 CAUSE NO. 139-123 – In the Matter of the Request for Agency Action of NEWFIELD PRODUCTION COMPANY for an Order: (1) partially vacating the Board’s Order entered in Cause No. 139-109 insofar as it pertains to Section 23, T3S, R3W, USM; and (2) modifying the Board’s Orders entered in Cause Nos. 139-8, 131-51 and 139-90 to establish Special 1280-Acre (or substantial equivalent) Drilling Units for the production of oil, gas and associated hydrocarbons from the Upper Wasatch Formation, comprised of Sections 6 and 7, T3S, R1W, USM, Sections 5 and 8, 6 and 7, and 28 and 33, T3S, R2W, USM, and Sections 5 and 8, 13 and 24, and 14 and 23, T3S, R3W, USM, respectively, Duchesne County, Utah, and to authorize the drilling and production of up to Eight (8) Long Lateral Horizontal Wells on each such Special Drilling Unit so established. THE PURPOSE OF THE PROCEEDING will be for the Board to receive testimony and evidence regarding a Request for Agency Action that the Board enter an Order: 1. Partially vacating the Board’s order entered on November 26, 2013 in Cause No. 139-109 (the “139-109 Order”) insofar as it pertains to Section 23, T3S, R3W, USM; 2. Modifying the Board’s order entered on September 20, 1972 in Cause No. 139-8, on October 27, 1983 in Cause No. 131-51, and on May 9, 2012 in Cause No. 139-90 (the “139-90 Order”) to establish special 1,280-acre (or substantial equivalent combination of lots and quarter-quarter sections) drilling units for the production of oil, gas and hydrocarbons from the Upper Wasatch formation, defined for purposes of this cause as follows:

the base of the Uteland Butte Member of the Lower Green River formation to the top of the Wasatch Red Beds, being the stratigraphic equivalent of the interval from 8,765 feet to 9,967 feet MD as identified in the Dual Induction Log run on March 7, 1972 in the JW Accawinna # 1 Well located in the NE¼SW¼ of Section 13, T3S, R3W, USM,

comprised of Sections 6 and 7, T3S, R1W, USM, Sections 5 and 8, 6 and 7, and 28 and 33, T3S, R2W, USM, and Sections 5 and 8, 13 and 24, and 14 and 23, T3S, R3W, USM, respectively, Duchesne County, Utah (the “Subject Lands”), and authorizing the drilling and production of up to eight (8) long lateral horizontal wells upon each such unit; 3. Providing that no producing interval of the authorized horizontal lateral may be located closer than 330 feet to the north and south, and 660 feet to the east and west, boundaries of said special drilling unit, no closer than 950 feet to an existing vertical or directionally drilled well producing from the Upper Wasatch formation (as defined above), and no closer than 660 feet laterally when closer than 200 feet vertically to another horizontal lateral within the special drilling unit, without obtaining an exception location approval in accordance with Utah Admin. Code Rule R649-3-3. With respect to horizontally stacked laterals within the special drilling unit, there shall be no inter-well setback distance laterally required provided the stacked horizontal laterals are located at least 200 feet or greater apart in vertical distance; 4. Providing that the surface location of any authorized horizontal well not only may be anywhere upon the special drilling unit, but may also be located off the special drilling unit presuming proper surface and sub-surface authorization for such a location has been obtained from the owners and the well will be cased and cemented to the 330-foot drilling unit setback

within the special drilling unit as set forth in (3) above, both to be evidenced and satisfied by a self-certification to such effect executed by the operator of the special drilling unit and filed with the Utah Division of Oil, Gas and Mining, and the other setbacks for the wells set forth in (3) above are maintained; 5. Providing that any horizontal well drilled pursuant to the Order, if granted, may not be plugged back or recompleted to produce from any other formation other than the Upper Wasatch formation (as defined above), and no additional wells located upon the Subject Lands may be perforated to produce from the Upper Wasatch formation (as defined above), without further authorization from the Board; 6. Providing that the 139-90 Order shall continue to govern production allocation from the existing vertical or directionally drilled wells producing from the Upper Wasatch formation (as defined above), i.e., shall continue on a sectional basis; and 7. Provide for such other and further relief as may be just and equitable under the circumstances. DOCKET NO. 2014-034 CAUSE NO. 259-05 – In the Matter of the Request for Agency Action of ROBERT L. BAYLESS, PRODUCER LLC for an Order establishing two (2) Special Drilling Units for the production of oil, gas and associated hydrocarbons from the Uteland Butte Member of the Lower Green River Formation, comprised of Lot 3 and the bed of the Green River adjacent thereto (49.15 acres), and Lots 1 and 4 and the bed of the Green River adjacent thereto (66.66 acres), Section 9, T10S, R19E, SLM, Uintah County, Utah, and authorizing Directionally Drilled Wells on each such Drilling Unit so established to achieve an approximate equivalent 20-acre well density. THE PURPOSE OF THE PROCEEDING will be for the Board to receive testimony and evidence regarding a Request for Agency Action that the Board enter an Order: 1. Establishing two special drilling units for the production of oil, gas and hydrocarbons from the Uteland Butte member of the Lower Green River formation, defined for purposes of this Cause as follows:

the stratigraphic equivalent of the interval between 4,657 feet MD and 4,816 feet MD as reflected on the Dual Induction Log of the RBU #7-9E Well, API No. 43-047-36426, located 1,906 feet FSL and 1,597 feet FEL in Lot 7 of Section 9, T10S, R19E, SLM

(the “Subject Formation”), comprised of the following Uintah County, Utah lands: A) Township 10 South, Range 19 East, SLM Sec. 9: Lot 3 (27.22) and the bed of the Green River adjacent thereto (21.93) (containing 49.15 acres, more or less); and B) Township 10 South, Range 19 East, SLM Sec. 9: Lots 1 (25.21) and 4 (5.70) and the bed of the Green River adjacent thereto (35.75) (containing 66.66 acres, more or less);

2. Authorizing the number of wells per drilling unit so established as described above to achieve an equivalent 20-acre well density; provided no well may be located closer than 330 feet to a drilling unit boundary line or 660-feet to another well producing from the Subject Formation without an exception location approval in accordance with Utah Admin. Code Rule R649-3-3 (or subsequently enacted equivalent regulation); 3. Expressly ordering that Utah Admin. Code Rule R649-3-11(1.1) is inapplicable to any well on the drilling units so established as long as the productive intervals are within the setbacks so established and with the caveat that, if an uphole completion closer than the setback is

subsequently proposed, an appropriate exception location approval and/or consents will be obtained as circumstances may require under applicable regulation; and 4. Provide for such other and further relief as may be just and equitable under the circumstances. DOCKET NO. 2014-035 CAUSE NO. 139-124 – In the Matter of the Joint Request for Agency Action of BILL BARRETT CORPORATION and EP ENERGY E&P COMPANY, L.P. for an Order modifying the Board’s Orders entered in Cause Nos. 139-84, 139-85, 139-87 and 139-90 to authorize additional Vertical and/or Directionally Drilled Wells to achieve the equivalent of up to an 80-acre well density pattern for the production of oil, gas and associated hydrocarbons for the Lower Green River-Wasatch Formations on the sectional drilling units comprising the Black Tail Ridge, Lake Canyon and portions of the Western Altamont Fields, Duchesne County, Utah. THE PURPOSE OF THE PROCEEDING will be for the Board to receive testimony and evidence regarding a Request for Agency Action that the Board enter an Order: 1. Modifying the Board’s Orders entered on December 30, 2008 in Cause No. 139-84, on March 11, 2010 in Cause No. 139-85, on December 6, 2011 in Cause No. 139-87 and on May 9, 2012 in Cause No. 139-90 to authorize additional vertical/directionally drilled wells for the production of oil, gas and associated hydrocarbons from the Lower Green River-Wasatch formations to achieve an equivalent 80-acre well density on each of the following existing sectional drilling units located in Duchesne County, Utah:

Township 2 South, Range 4 West, USM Sections 19 through 36 inclusive


Township 3 South, Range 4 West, USM Sections 4 through 10, 14 through 21, 23, 27, and 30 through 33




Township 3 South, Range 8 West, USM Sections 25 and 36

Township 4 South, Range 5 West, USM Sections 2 through 22, and 30



Township 4 South, Range 8 West, USM Sections 1, 12, 13, 24, 25, and 36

(the “Subject Lands”); 2. Providing that each additional well so authorized may neither be drilled closer than 660 feet to a sectional boundary, nor, subject to the provisions of (4) below, 990 feet to another well producing in the Lower Green River-Wasatch formations without an exception location approval

in accordance with Utah Admin. Code Rule R649-3-3 (or subsequently enacted similar regulation); 3. Declaring that, so long as the initial intersection with the Lower Green River-Wasatch formations, all productive intervals, and the bottom hole location of a directionally drilled well so authorized are all within the setbacks set forth under (2) above, no additional exception location approval or consents under Utah Admin. Code Rules R649-3-3 and R649-3-11(1) are required. With respect thereto, Bill Barrett Corporation and EP Energy E&P Company, L.P. (or their successor operators) will provide to the Utah Division of Oil, Gas and Mining, along with an application for permit to drill relating to such a well, a self-certification that no perforations above the top of the Lower Green River will be made without an exception location approval and consents as circumstances may require under said regulations; 4. Providing that any additional well so authorized may be located closer than 990 feet to an existing horizontal well only if it is not perforated in and does not produce from the same producing member of the horizontal well; 5. Providing that no other Lower Green River-Wasatch horizontal wells may be drilled on the Subject Lands without further Board authorization; and 6. Provide for such other and further relief as may be just and equitable under the circumstances. DOCKET NO. 2014-037 CAUSE NO. ACT/007/020 (04) – In re Hidden Splendor Mine, Inc. and Request by the Utah Division of Oil, Gas and Mining that the Board of Oil, Gas and Mining Forfeit the reclamation surety which consists of a Deed of Trust in Unit No. R-2404-N of the American Towers Condominiums located at 57 West 200 South, Salt Lake City, Salt Lake County, Utah; and has been provided to guaranty reclamation of the Horizon Mine, Permit ACT/007/020 located in Sections 13 and 17, Township 13 South, Range 8 East, SLM, Carbon County, Utah. THE PURPOSE OF THE PROCEEDING will be for the Board to receive testimony and evidence regarding a Notice of Agency Action that the Board enter an Order: 1. Terminating the permit for the Horizon Mine ACT/007/020; 2. Forfeiting to the Division all interest in the Deed of Trust held as surety for the performance of the obligations under the Reclamation Agreement dated June 11, 2003 and the obligation under the Act to reclaim the lands disturbed by mining operations; 3. Authorizing the Division and Utah Attorney General Office to take any and all actions necessary to foreclose the Deed of Trust and exercise of the power of sale and other actions necessary to liquidate the real property held as surety and used such proceeds from the sale of the real property to pay the costs of reclamation of said lands; 4. Authorizing the Division to use the proceeds obtains from the foreclosure of the Deed of Trust for the reclamation of the land disturbed by Horizon Mine in accordance with the mine reclamation plan and the Act; 5. Authorizing the Utah Attorney General to take action as appropriate to recover any cost of reclamation not covered by the proceeds of the foreclosure; and 6. Provide for such other and further relief as may be just and equitable under the circumstances. DOCKET NO. 2014-038 CAUSE NO. 270-06 – In the Matter of the Request for Agency Action of ULTRA RESOURCES, INC. for an Order extending the Board’s Order entered in Cause 270-02 to establish 40-acre (or substantial equivalent) drilling units for the production of oil, gas and associated hydrocarbons from the Eocene Middle and Lower Green River Formations underlying the NW¼SE¼ and SW¼SE¼ of Section 27, Township 7 South, Range 20 East, SLM, Uintah County, Utah, and authorizing up to two (2) wells on each such drilling

unit so established. THE PURPOSE OF THE PROCEEDING will be for the Board to receive testimony and evidence regarding a Request for Agency Action that the Board enter an Order: 1. Extending the Board’s Order entered on November 9, 2013, in Cause No. 270 02 (the “270-02 Order”) establishing 40-acre drilling units for the production of oil, gas and associated hydrocarbons from the Eocene Middle and Lower Green River formations, defined in the 270-02 Order as follows:

the stratigraphic equivalent of the interval between the TGR3 marker, as found at 5,019 feet (measured depth), and the base of the Uteland Butte member, as found at 6,746 feet (measured depth), in the Axia Energy Three Rivers 2-13-820 Well located in the SW¼NW¼ of Section 2, T8S, R20E, SLM,

(the “Subject Formations”), comprised of the following Uintah County, Utah lands: Township 7 South, Range 20 East, SLM

Section 27: NW¼SE¼ Section 27: SW¼SE¼

respectively (the “Subject Lands”); 2. Authorizing up to two (2) producing wells per drilling unit so established; provided no well may be located closer than 460 feet to a shared drilling unit/lease boundary line and no closer than 100 feet if the adjacent lands are within the same lease and have the same production interest owners, without an exception location approval in accordance with Utah Admin. Code Rule R649-3-3 (or subsequently enacted equivalent regulation); 3. Declaring the existing wells producing from the Subject Formations upon the Subject Lands to be at legal locations notwithstanding the relief requested; 4. Expressly ordering that Utah Admin. Code Rule R649-3-11(1.1) is inapplicable to any directionally drilled well on the drilling units so established as long as the productive intervals are within the setbacks so established and with the caveat that, if an uphole completion closer than the setback is subsequently proposed, an exception location approval in accordance with Utah Admin. Code Rule R649-3-3 (or subsequently enacted equivalent regulation) will be required; and 5. Provide for such other and further relief as may be just and equitable under the circumstances. DOCKET NO. 2014-039 CAUSE NOS. S/023/0087, S/039/0024, S/039/0027, S/039/0030 – In the Matter of the Notice of Agency Action to affecting the mining operations of M. TODD WILHITE, WALL & ROCK, INC., and/or WILHITE & ASSOCIATES, INC., by (1) withdrawing a Notice of Intention, (2) forfeiting a Certificate of Deposit No. 7089407881 in the amount of $7000 plus accrued interest held by ZIONS BANK, (3) ordering reclamation of mines, and (4) requesting the Division of Oil, Gas and Mining and the Attorney General to take all other actions necessary to recover costs, fees, and fines for the operations occurring at (a) Gulch Mine (S023/0087) in Juab County; (b) Freedom from War Mine (S/039/0024) in Sanpete County; (c) Mount Pleasant Mine (S/039/0027) in Sanpete County; and (d) Mount Pleasant North Mine (S/039/0030) in Sanpete County. THE PURPOSE OF THE PROCEEDING will be for the Board to receive testimony and evidence regarding a Notice of Agency Action that the Board enter an Order: A. Gulch Mine (S/023/0087) 1. Order Mr. Wilhite, Wilhite & Associates, and Wall & Rock to update the NOI with current information and to have the actual operating entity enter a new reclamation contract;

2. Request that the Division and the Attorney General, under subsections 40-8-9.1(4), (6) of the Utah Code, take all necessary actions―including filing a civil action―to collect all outstanding annual permit fees and all penalties assessed against Wall & Rock, Inc., Wilhite & Associates, Inc., and/or Mr. Wilhite; and 3. Grant any other just and equitable relief in these circumstances. B. Freedom From War Mine (S/039/0024) 1. Withdraw approval of the Notice of Intention under subsection 40-8-16(2) of the Utah Code; 2. Forfeit, under subsection 40-8-14(6) of the Utah Code, Certificate of Deposit number 7089407881 held by Zions Bank, which is for the benefit of the Division, and order Zions Bank to deliver the principle of $7000 together with any accrued interest to the Division to pay for the costs associated with reclaiming the Freedom from War Mine site; 3. Authorize the Division to reclaim the lands affected by the Freedom from War Mine site under Utah Administrative Code Rule R647-3-112(1); 4. Request that the Division and the Attorney General, under subsections 40-8-9.1(4), (6) of the Utah Code, take all necessary actions―including filing a civil action―to collect all outstanding annual fees, those reclamation costs greater than CD no. 0329574941 might cover, and all penalties assessed against Wall & Rock, Inc. and/or M. Todd Wilhite; and 5. Grant any other just and equitable relief in these circumstances. C. Mount Pleasant - Wilhite Mine (S/039/0027) 1. Request that the Division and the Attorney General, under subsections 40-8-9.1(4), (6) of the Utah Code, take all necessary actions―including filing a civil action―to collect all outstanding annual permit fees and all penalties assessed against Wall & Rock and/or Mr. Wilhite; 2. Order, under Utah Code subsection 40-8-6(4), Mr. Wilhite and Wall & Rock, jointly and severally, to reclaim the mine site to the Division’s specifications, and if the order is not complied with by April 1, 2015, order the Division and the Attorney General to take all necessary actions―including filing a civil action―against Mr. Wilhite and Wall & Rock to collect the estimated costs of reclaiming the mine site; and 3. Grant any other just and equitable relief in these circumstances. D. Mount Pleasant North Mine (S/039/0030) 1. Request that the Division and the Attorney General, under subsections 40-8-9.1(4), (6) of the Utah Code, take all necessary actions―including filing a civil action―to collect all outstanding annual permit fees and all penalties assessed against Wall & Rock and/or Mr. Wilhite; 2. Order, under Utah Code subsection 40-8-6(4), Mr. Wilhite and Wall & Rock, joint and severally, to reclaim the mine site to the Division’s specifications, and if the order is not complied with by April 1, 2015, order the Division and the Attorney General to take all necessary actions―including filing a civil action―against Mr. Wilhite and Wall & Rock to collect the estimated costs of reclaiming the mine site; and 3. Grant any other just and equitable relief in these circumstances. Objections to the Requests for Agency Action and the Notices of Agency Action must be filed with the Secretary of the Board at the address listed below no later than the 10th day of the month, or two weeks before the scheduled hearing, whichever is earlier. A party must file a timely written objection or other response in order to participate as a party at the Board hearing. Failure to participate can result in a default judgment. Natural persons may appear and represent themselves before the Board. All other representation of parties before the Board will be by attorneys licensed to practice law in the State of Utah, or

attorneys licensed to practice law in another jurisdiction which meet the rules of the Utah State Bar for practicing law before the Utah Courts. Persons interested in this matter may participate pursuant to the procedural rules of the Board. The Requests for Agency Action, the Notices of Agency Action, and any subsequent pleadings, may be inspected at the office of the undersigned, and inspected online at the Utah Board of Oil, Gas and Mining's website at http://ogm.utah.gov/amr/boardtemp/redesign/books.html. Pursuant to the Americans with Disabilities Act, persons requiring auxiliary communicative aids and services to enable them to participate in this hearing should call Julie Ann Carter at (801) 538-5277, at least three working days prior to the hearing date. DATED this 29th day of September, 2014. STATE OF UTAH BOARD OF OIL, GAS AND MINING Ruland J. Gill, Jr., Chairman /s/ Julie Ann Carter Board Secretary 1594 West North Temple, Suite 1210 Salt Lake City, Utah 84116 (801) 538-5277

Uintah Basin Standard Published on Tuesday, October 7, 2014



THE STATE OF UTAH TO ALL PERSONS INTERESTED IN THE FOLLOWING MATTERS (Docket Nos. 2014-031, 2014-033, 2014-034, 2014-035, and 2014-038): NOTICE IS HEREBY GIVEN that the Board of Oil, Gas and Mining (“Board”), State of Utah, will conduct a hearing on WEDNESDAY, October 22, 2014, at 9:00 AM, or as soon thereafter as possible, in the auditorium of the Department of Natural Resources, 1594 West North Temple, Salt Lake City, Utah. THE HEARING WILL BE CONDUCTED as a formal administrative adjudication in accordance with the rules of the Board as set forth in Utah Administrative Code R641 et seq. and as provided for in Utah Code Ann. § 40-6-1 et seq., Utah Code Ann. § 40-8-1 et seq., and Utah Code Ann. § 63G-4-101 through 601. DOCKET NO. 2014-031 CAUSE NO. 191-06 – In the Matter of the Request for Agency Action of QEP Energy Company for an Order suspending the application of Utah Admin. Code R649-3-2, R649-3-10, and R649-3-11(1) and (2) for the Ouray Park II Federal Exploratory Unit, covering all of Section 2, all of Section 3, the N1/2, N1/2S1/2, S1/2SE1/4, and the SE1/4SW1/4 of Section 10, the W1/2NE1/4, W1/2, SE1/4NE1/4, and the SE1/4 of Section 11, the W1/2SW1/4 and the SE1/4SWl/4 of Section 12, and the E1/2 of Section 14, Township 7 South, Range 20 East, SLM, Uintah County, Utah. THE PURPOSE OF THE PROCEEDING will be for the Board to receive testimony and evidence regarding a Request for Agency Action that the Board enter an Order: 1. Suspending Utah Admin. Code R649-3-2, R649-3-10, and R649-3-11(l) and (2) for the Ouray Park II Federal Exploratory Unit ("OP II Unit"), covering the following lands:



application for permit to drill filed for a directionally drilled well and (2) a copy of the annual plan of development and operation for the OP II Unit; 5. Providing the requested suspension of these rules will remain in effect only for as long as the Subject Lands are committed to the OP II Unit; and 6. Providing for such other and further relief as may be just and equitable under the circumstances. DOCKET NO. 2014-033 CAUSE NO. 139-123 – In the Matter of the Request for Agency Action of NEWFIELD PRODUCTION COMPANY for an Order: (1) partially vacating the Board’s Order entered in Cause No. 139-109 insofar as it pertains to Section 23, T3S, R3W, USM; and (2) modifying the Board’s Orders entered in Cause Nos. 139-8, 131-51 and 139-90 to establish Special 1280-Acre (or substantial equivalent) Drilling Units for the production of oil, gas and associated hydrocarbons from the Upper Wasatch Formation, comprised of Sections 6 and 7, T3S, R1W, USM, Sections 5 and 8, 6 and 7, and 28 and 33, T3S, R2W, USM, and Sections 5 and 8, 13 and 24, and 14 and 23, T3S, R3W, USM, respectively, Duchesne County, Utah, and to authorize the drilling and production of up to Eight (8) Long Lateral Horizontal Wells on each such Special Drilling Unit so established. THE PURPOSE OF THE PROCEEDING will be for the Board to receive testimony and evidence regarding a Request for Agency Action that the Board enter an Order: 1. Partially vacating the Board’s order entered on November 26, 2013 in Cause No. 139-109 (the “139-109 Order”) insofar as it pertains to Section 23, T3S, R3W, USM; 2. Modifying the Board’s order entered on September 20, 1972 in Cause No. 139-8, on October 27, 1983 in Cause No. 131-51, and on May 9, 2012 in Cause No. 139-90 (the “139-90 Order”) to establish special 1,280-acre (or substantial equivalent combination of lots and quarter-quarter sections) drilling units for the production of oil, gas and hydrocarbons from the Upper Wasatch formation, defined for purposes of this cause as follows:

the base of the Uteland Butte Member of the Lower Green River formation to the top of the Wasatch Red Beds, being the stratigraphic equivalent of the interval from 8,765 feet to 9,967 feet MD as identified in the Dual Induction Log run on March 7, 1972 in the JW Accawinna # 1 Well located in the NE¼SW¼ of Section 13, T3S, R3W, USM,

comprised of Sections 6 and 7, T3S, R1W, USM, Sections 5 and 8, 6 and 7, and 28 and 33, T3S, R2W, USM, and Sections 5 and 8, 13 and 24, and 14 and 23, T3S, R3W, USM, respectively, Duchesne County, Utah (the “Subject Lands”), and authorizing the drilling and production of up to eight (8) long lateral horizontal wells upon each such unit; 3. Providing that no producing interval of the authorized horizontal lateral may be located closer than 330 feet to the north and south, and 660 feet to the east and west, boundaries of said special drilling unit, no closer than 950 feet to an existing vertical or directionally drilled well producing from the Upper Wasatch formation (as defined above), and no closer than 660 feet laterally when closer than 200 feet vertically to another horizontal lateral within the special drilling unit, without obtaining an exception location approval in accordance with Utah Admin. Code Rule R649-3-3. With respect to horizontally stacked laterals within the special drilling unit, there shall be no inter-well setback distance laterally required provided the stacked horizontal laterals are located at least 200 feet or greater apart in vertical distance; 4. Providing that the surface location of any authorized horizontal well not only may be anywhere upon the special drilling unit, but may also be located off the special drilling unit presuming proper surface and sub-surface authorization for such a location has been obtained from the owners and the well will be cased and cemented to the 330-foot drilling unit setback

within the special drilling unit as set forth in (3) above, both to be evidenced and satisfied by a self-certification to such effect executed by the operator of the special drilling unit and filed with the Utah Division of Oil, Gas and Mining, and the other setbacks for the wells set forth in (3) above are maintained; 5. Providing that any horizontal well drilled pursuant to the Order, if granted, may not be plugged back or recompleted to produce from any other formation other than the Upper Wasatch formation (as defined above), and no additional wells located upon the Subject Lands may be perforated to produce from the Upper Wasatch formation (as defined above), without further authorization from the Board; 6. Providing that the 139-90 Order shall continue to govern production allocation from the existing vertical or directionally drilled wells producing from the Upper Wasatch formation (as defined above), i.e., shall continue on a sectional basis; and 7. Provide for such other and further relief as may be just and equitable under the circumstances. DOCKET NO. 2014-034 CAUSE NO. 259-05 – In the Matter of the Request for Agency Action of ROBERT L. BAYLESS, PRODUCER LLC for an Order establishing two (2) Special Drilling Units for the production of oil, gas and associated hydrocarbons from the Uteland Butte Member of the Lower Green River Formation, comprised of Lot 3 and the bed of the Green River adjacent thereto (49.15 acres), and Lots 1 and 4 and the bed of the Green River adjacent thereto (66.66 acres), Section 9, T10S, R19E, SLM, Uintah County, Utah, and authorizing Directionally Drilled Wells on each such Drilling Unit so established to achieve an approximate equivalent 20-acre well density. THE PURPOSE OF THE PROCEEDING will be for the Board to receive testimony and evidence regarding a Request for Agency Action that the Board enter an Order: 1. Establishing two special drilling units for the production of oil, gas and hydrocarbons from the Uteland Butte member of the Lower Green River formation, defined for purposes of this Cause as follows:



2. Authorizing the number of wells per drilling unit so established as described above to achieve an equivalent 20-acre well density; provided no well may be located closer than 330 feet to a drilling unit boundary line or 660-feet to another well producing from the Subject Formation without an exception location approval in accordance with Utah Admin. Code Rule R649-3-3 (or subsequently enacted equivalent regulation); 3. Expressly ordering that Utah Admin. Code Rule R649-3-11(1.1) is inapplicable to any well on the drilling units so established as long as the productive intervals are within the setbacks so established and with the caveat that, if an uphole completion closer than the setback is

subsequently proposed, an appropriate exception location approval and/or consents will be obtained as circumstances may require under applicable regulation; and 4. Provide for such other and further relief as may be just and equitable under the circumstances. DOCKET NO. 2014-035 CAUSE NO. 139-124 – In the Matter of the Joint Request for Agency Action of BILL BARRETT CORPORATION and EP ENERGY E&P COMPANY, L.P. for an Order modifying the Board’s Orders entered in Cause Nos. 139-84, 139-85, 139-87 and 139-90 to authorize additional Vertical and/or Directionally Drilled Wells to achieve the equivalent of up to an 80-acre well density pattern for the production of oil, gas and associated hydrocarbons for the Lower Green River-Wasatch Formations on the sectional drilling units comprising the Black Tail Ridge, Lake Canyon and portions of the Western Altamont Fields, Duchesne County, Utah. THE PURPOSE OF THE PROCEEDING will be for the Board to receive testimony and evidence regarding a Request for Agency Action that the Board enter an Order: 1. Modifying the Board’s Orders entered on December 30, 2008 in Cause No. 139-84, on March 11, 2010 in Cause No. 139-85, on December 6, 2011 in Cause No. 139-87 and on May 9, 2012 in Cause No. 139-90 to authorize additional vertical/directionally drilled wells for the production of oil, gas and associated hydrocarbons from the Lower Green River-Wasatch formations to achieve an equivalent 80-acre well density on each of the following existing sectional drilling units located in Duchesne County, Utah:



Township 3 South, Range 4 West, USM Sections 4 through 10, 14 through 21, 23, 27, and 30 through 33




Township 3 South, Range 8 West, USM Sections 25 and 36

Township 4 South, Range 5 West, USM Sections 2 through 22, and 30



Township 4 South, Range 8 West, USM Sections 1, 12, 13, 24, 25, and 36

(the “Subject Lands”); 2. Providing that each additional well so authorized may neither be drilled closer than 660 feet to a sectional boundary, nor, subject to the provisions of (4) below, 990 feet to another well producing in the Lower Green River-Wasatch formations without an exception location approval

in accordance with Utah Admin. Code Rule R649-3-3 (or subsequently enacted similar regulation); 3. Declaring that, so long as the initial intersection with the Lower Green River-Wasatch formations, all productive intervals, and the bottom hole location of a directionally drilled well so authorized are all within the setbacks set forth under (2) above, no additional exception location approval or consents under Utah Admin. Code Rules R649-3-3 and R649-3-11(1) are required. With respect thereto, Bill Barrett Corporation and EP Energy E&P Company, L.P. (or their successor operators) will provide to the Utah Division of Oil, Gas and Mining, along with an application for permit to drill relating to such a well, a self-certification that no perforations above the top of the Lower Green River will be made without an exception location approval and consents as circumstances may require under said regulations; 4. Providing that any additional well so authorized may be located closer than 990 feet to an existing horizontal well only if it is not perforated in and does not produce from the same producing member of the horizontal well; 5. Providing that no other Lower Green River-Wasatch horizontal wells may be drilled on the Subject Lands without further Board authorization; and 6. Provide for such other and further relief as may be just and equitable under the circumstances. DOCKET NO. 2014-038 CAUSE NO. 270-06 – In the Matter of the Request for Agency Action of ULTRA RESOURCES, INC. for an Order extending the Board’s Order entered in Cause 270-02 to establish 40-acre (or substantial equivalent) drilling units for the production of oil, gas and associated hydrocarbons from the Eocene Middle and Lower Green River Formations underlying the NW¼SE¼ and SW¼SE¼ of Section 27, Township 7 South, Range 20 East, SLM, Uintah County, Utah, and authorizing up to two (2) wells on each such drilling unit so established. THE PURPOSE OF THE PROCEEDING will be for the Board to receive testimony and evidence regarding a Request for Agency Action that the Board enter an Order: 1. Extending the Board’s Order entered on November 9, 2013, in Cause No. 270 02 (the “270-02 Order”) establishing 40-acre drilling units for the production of oil, gas and associated hydrocarbons from the Eocene Middle and Lower Green River formations, defined in the 270-02 Order as follows:




respectively (the “Subject Lands”); 2. Authorizing up to two (2) producing wells per drilling unit so established; provided no well may be located closer than 460 feet to a shared drilling unit/lease boundary line and no closer than 100 feet if the adjacent lands are within the same lease and have the same production interest owners, without an exception location approval in accordance with Utah Admin. Code Rule R649-3-3 (or subsequently enacted equivalent regulation); 3. Declaring the existing wells producing from the Subject Formations upon the Subject Lands to be at legal locations notwithstanding the relief requested;

4. Expressly ordering that Utah Admin. Code Rule R649-3-11(1.1) is inapplicable to any directionally drilled well on the drilling units so established as long as the productive intervals are within the setbacks so established and with the caveat that, if an uphole completion closer than the setback is subsequently proposed, an exception location approval in accordance with Utah Admin. Code Rule R649-3-3 (or subsequently enacted equivalent regulation) will be required; and 5. Provide for such other and further relief as may be just and equitable under the circumstances. Objections to the Requests for Agency Action must be filed with the Secretary of the Board at the address listed below no later than the 10th day of the month, or two weeks before the scheduled hearing, whichever is earlier. A party must file a timely written objection or other response in order to participate as a party at the Board hearing. Failure to participate can result in a default judgment. Natural persons may appear and represent themselves before the Board. All other representation of parties before the Board will be by attorneys licensed to practice law in the State of Utah, or attorneys licensed to practice law in another jurisdiction which meet the rules of the Utah State Bar for practicing law before the Utah Courts. Persons interested in this matter may participate pursuant to the procedural rules of the Board. The Requests for Agency Action and any subsequent pleadings, may be inspected at the office of the undersigned, and inspected online at the Utah Board of Oil, Gas and Mining's website at http://ogm.utah.gov/amr/boardtemp/redesign/books.html. Pursuant to the Americans with Disabilities Act, persons requiring auxiliary communicative aids and services to enable them to participate in this hearing should call Julie Ann Carter at (801) 538-5277, at least three working days prior to the hearing date. DATED this 29th day of September, 2014. STATE OF UTAH BOARD OF OIL, GAS AND MINING Ruland J. Gill, Jr., Chairman /s/ Julie Ann Carter Board Secretary 1594 West North Temple, Suite 1210 Salt Lake City, Utah 84116 (801) 538-5277

Vernal Express Published on Tuesday, October 7, 2014



THE STATE OF UTAH TO ALL PERSONS INTERESTED IN THE FOLLOWING MATTERS (Docket Nos. 2014-031, 2014-034, and 2014-038): NOTICE IS HEREBY GIVEN that the Board of Oil, Gas and Mining (“Board”), State of Utah, will conduct a hearing on WEDNESDAY, October 22, 2014, at 9:00 AM, or as soon thereafter as possible, in the auditorium of the Department of Natural Resources, 1594 West North Temple, Salt Lake City, Utah. THE HEARING WILL BE CONDUCTED as a formal administrative adjudication in accordance with the rules of the Board as set forth in Utah Administrative Code R641 et seq. and as provided for in Utah Code Ann. § 40-6-1 et seq., Utah Code Ann. § 40-8-1 et seq., and Utah Code Ann. § 63G-4-101 through 601. DOCKET NO. 2014-031 CAUSE NO. 191-06 – In the Matter of the Request for Agency Action of QEP Energy Company for an Order suspending the application of Utah Admin. Code R649-3-2, R649-3-10, and R649-3-11(1) and (2) for the Ouray Park II Federal Exploratory Unit, covering all of Section 2, all of Section 3, the N1/2, N1/2S1/2, S1/2SE1/4, and the SE1/4SW1/4 of Section 10, the W1/2NE1/4, W1/2, SE1/4NE1/4, and the SE1/4 of Section 11, the W1/2SW1/4 and the SE1/4SWl/4 of Section 12, and the E1/2 of Section 14, Township 7 South, Range 20 East, SLM, Uintah County, Utah. THE PURPOSE OF THE PROCEEDING will be for the Board to receive testimony and evidence regarding a Request for Agency Action that the Board enter an Order: 1. Suspending Utah Admin. Code R649-3-2, R649-3-10, and R649-3-11(l) and (2) for the Ouray Park II Federal Exploratory Unit ("OP II Unit"), covering the following lands:



application for permit to drill filed for a directionally drilled well and (2) a copy of the annual plan of development and operation for the OP II Unit; 5. Providing the requested suspension of these rules will remain in effect only for as long as the Subject Lands are committed to the OP II Unit; and 6. Providing for such other and further relief as may be just and equitable under the circumstances. DOCKET NO. 2014-034 CAUSE NO. 259-05 – In the Matter of the Request for Agency Action of ROBERT L. BAYLESS, PRODUCER LLC for an Order establishing two (2) Special Drilling Units for the production of oil, gas and associated hydrocarbons from the Uteland Butte Member of the Lower Green River Formation, comprised of Lot 3 and the bed of the Green River adjacent thereto (49.15 acres), and Lots 1 and 4 and the bed of the Green River adjacent thereto (66.66 acres), Section 9, T10S, R19E, SLM, Uintah County, Utah, and authorizing Directionally Drilled Wells on each such Drilling Unit so established to achieve an approximate equivalent 20-acre well density. THE PURPOSE OF THE PROCEEDING will be for the Board to receive testimony and evidence regarding a Request for Agency Action that the Board enter an Order: 1. Establishing two special drilling units for the production of oil, gas and hydrocarbons from the Uteland Butte member of the Lower Green River formation, defined for purposes of this Cause as follows:



2. Authorizing the number of wells per drilling unit so established as described above to achieve an equivalent 20-acre well density; provided no well may be located closer than 330 feet to a drilling unit boundary line or 660-feet to another well producing from the Subject Formation without an exception location approval in accordance with Utah Admin. Code Rule R649-3-3 (or subsequently enacted equivalent regulation); 3. Expressly ordering that Utah Admin. Code Rule R649-3-11(1.1) is inapplicable to any well on the drilling units so established as long as the productive intervals are within the setbacks so established and with the caveat that, if an uphole completion closer than the setback is subsequently proposed, an appropriate exception location approval and/or consents will be obtained as circumstances may require under applicable regulation; and 4. Provide for such other and further relief as may be just and equitable under the circumstances. DOCKET NO. 2014-038 CAUSE NO. 270-06 – In the Matter of the Request for Agency Action of ULTRA RESOURCES, INC. for an Order extending the Board’s Order entered in Cause 270-02 to establish 40-acre (or substantial equivalent) drilling units for the production of oil, gas and associated hydrocarbons from the Eocene Middle and Lower Green River Formations underlying the NW¼SE¼ and SW¼SE¼ of Section 27, Township 7 South, Range

20 East, SLM, Uintah County, Utah, and authorizing up to two (2) wells on each such drilling unit so established. THE PURPOSE OF THE PROCEEDING will be for the Board to receive testimony and evidence regarding a Request for Agency Action that the Board enter an Order: 1. Extending the Board’s Order entered on November 9, 2013, in Cause No. 270 02 (the “270-02 Order”) establishing 40-acre drilling units for the production of oil, gas and associated hydrocarbons from the Eocene Middle and Lower Green River formations, defined in the 270-02 Order as follows:




respectively (the “Subject Lands”); 2. Authorizing up to two (2) producing wells per drilling unit so established; provided no well may be located closer than 460 feet to a shared drilling unit/lease boundary line and no closer than 100 feet if the adjacent lands are within the same lease and have the same production interest owners, without an exception location approval in accordance with Utah Admin. Code Rule R649-3-3 (or subsequently enacted equivalent regulation); 3. Declaring the existing wells producing from the Subject Formations upon the Subject Lands to be at legal locations notwithstanding the relief requested; 4. Expressly ordering that Utah Admin. Code Rule R649-3-11(1.1) is inapplicable to any directionally drilled well on the drilling units so established as long as the productive intervals are within the setbacks so established and with the caveat that, if an uphole completion closer than the setback is subsequently proposed, an exception location approval in accordance with Utah Admin. Code Rule R649-3-3 (or subsequently enacted equivalent regulation) will be required; and 5. Provide for such other and further relief as may be just and equitable under the circumstances. Objections to the Requests for Agency Action must be filed with the Secretary of the Board at the address listed below no later than the 10th day of the month, or two weeks before the scheduled hearing, whichever is earlier. A party must file a timely written objection or other response in order to participate as a party at the Board hearing. Failure to participate can result in a default judgment. Natural persons may appear and represent themselves before the Board. All other representation of parties before the Board will be by attorneys licensed to practice law in the State of Utah, or attorneys licensed to practice law in another jurisdiction which meet the rules of the Utah State Bar for practicing law before the Utah Courts. Persons interested in this matter may participate pursuant to the procedural rules of the Board. The Requests for Agency Action and any subsequent pleadings, may be inspected at the office of the undersigned, and inspected online at the Utah Board of Oil, Gas and Mining's website at http://ogm.utah.gov/amr/boardtemp/redesign/books.html.

Pursuant to the Americans with Disabilities Act, persons requiring auxiliary communicative aids and services to enable them to participate in this hearing should call Julie Ann Carter at (801) 538-5277, at least three working days prior to the hearing date. DATED this 29th day of September, 2014. STATE OF UTAH BOARD OF OIL, GAS AND MINING Ruland J. Gill, Jr., Chairman /s/ Julie Ann Carter Board Secretary 1594 West North Temple, Suite 1210 Salt Lake City, Utah 84116 (801) 538-5277

PROOF OF PUBLICATION

STATE OF UTAH.)s.s.

County of Uintah

I, TONYA MUSE, being duly sworn, depose and say that I am theLegals Manager ofThe Vernal Express, a weekly newspaper ofgeneral circulation, published each week at Vemal, Utah, that thenotice attached hereto was published in said newspaper for Ipublication(s), the first publication having been made on October7, 2014 and the last on October 7, 2014, that said notice waspublished in the regular and entire issue of every number of thepaper during the period and times ofpublication, and the same waspublished in the newspaper proper and not in a supplement; andwas published on Utahlegals.com, a website established by theUtah Press Association tbrough the collective efforts of Utah,snewspapers, on the same day as the frst newspaper publicationand tie notice remained on Utahlegals.com untit the last day ofpublication.

532 lines. Publication fee, $532.25.

This page is not a billing statement or invoice, but a proof ofpublication. Please make payment from billing invoice.

Bdfii'igrlAH?i8H i

^ff#m"ffik I

Subscribed and sworn to before me October 7. 2014.

!\W siglfl"?'u?Jf, |

NOTICE OFHEARING

BEFORE 11{EBO,\RD OF OIL,GAS AND MININC

Dt]PARTMENTOF \ATTjRALRESOURCES

STAIE OF UTAHTHE STAIE

OF UTAH TOALI, PERSONSIN I FJRESTED INTHI] FOLLOWIN3MAITERS (Dock,itNos.2014-031,2014-034. and 2014-03t):

NOTICE IS

HEREBY GIVENthal $e Boad ofOil, Gas and Mining("Board"), Stateof Utah, will con-duct a hearing onWEDNESDAYOcrober 22, 2014, d.9:00 AM, or as soonthereafter as possible,in the auditorium ofthe Depanment ofNatural Resources,1594 West North'Iemple, Salt LakeCit); Utah.

THE HEARINGWII"L BECONDUCTED as albnral administra-tive adjudication inaccordance wirh therules ol'the Boardas set forth in UtahAdministrative CodeR64l ct seq. and asprovided for in UtahCode Ann. $ ,10-6-let seq., Utah CodeAnn. A.l0-8-l et seq.,and Utah Code Ann.$ 6lG-4-l0l rhrough

601.DOCKET NO,

2014-031 cAUsENO. 19l-06 - In theMatter ofthe RequestforAgency AclionofQEP Energ/Company for anOrder suspending theapplication of UtahAdmin. Code R649-3-2, R649-3-10, andR649-3-ll(l) and (2)for the Ouray Park [lFederal ExploratoryUnit, covering allof Section 2, allof Section 3, theN l/2, N l/2S l/2,S l/2SE l/4, andthe SEI/4SW 1/4ofSection 10, the\\'l2NE l/il, Wl/2,SEI/4NE l/4, and theSEI/4 of Section I l,the Wl/2SWl/4 andthe SEI/4SWl/4 ofSection 12, and theEl,/2 of Secrion 14,Township 7 Sourh,Range 20 East, SLM,Uintah Counq, Urah.

THE PURPOSEOF THEPROCEEDINO t|,iubc fo! $c Board torcceive tcstimony andevidence regarding aRequest for AgencyAction that the Boardenier an Order:

l. SuspendingUtah Admin. CodeR649-3-2, R649-3-10, and R649-3-l I (Dand (2) for th€ OurayPark Il F'ederalExploratory Unit("OP II Unit,'), cov-ering the followinglands:

Township 7 South,Range 20 East, SLM

Section 2: AllSection 3: AllSection l0: NZ:,

N%S%, S%SE /1,sE%sw%

Section I | :\ t%NE74 \N%,SE%NE%, SEZ

Section l2:w%s\N%, sE71sw%

Section 14: E%(he "Subiecr

Lands");2. Providing that

the producing intervalin any future wellna\. not be locatedcloser than 460 i'eet tothe boundaries oftheOP II Udt withoutobtaining an excep.tion location ftom theDivision pu*uant toulah Admin. codeR649-3-3;

3. Providing thatno well may be direc-tionally drilled ifanyproducing ponion ofthe 460 foot radiusalong thc projectedwellbore intcrsectswith thc tDundar-ies ofthe Op II Unitwitlout complyingwith the requircmentsof Utah Admin. CodeR649-3-l l;

equivalent oftheint€rval bctweon4,657 f€ct MD and4,816 fect MD asr€flect€d on the DualInduction Log oftheRBU #7.9E well,API No. 43-047-36426, located 1,906Let FSL and 1,597feet FEL in Lot 7of Section 9, Tl0S,RI9E, SLM

(the "SubjecrFormation"), com-prised ofthe follow-ing Uintah County,Utah lands:

A) Township l0South, Range 19 East,SLM

Sec.9: Lot 3(27.22) and rhe bed ofthe Green River adja-cent thereto (21.93)

(containing 49.l5acres, more or less);and

B) Township l0South, Range 19 East,SLM

Sec.g: Lots I

(25.21) and 4 (5.70)and the bed oftheCreen River adjacentthereto (35.75)

(containing 66.66acres! more or less);

2. Authorizing thenumber ofwells perdrilling unit so estab-lished as describedabove to achieve anequivalent 2o-acrewell density; pro-vided no well may belocated closer than330 feet to a drillingunit boundary line or660-feet to anotherwell producing fromthe Subject Formationwithout an exceptionlocation approva,lm accordance withUtah Admin. CodeRule R649-3-3 (orsubsequeltly enactedequivalent regula-hon);

interval bctween theTGR3 marker, asfound at 5,019 fect(measurcd depth),and the bas€ ofthe Uteland Buttemember, as found at6,746 feet (measureddepth), in the AxiaEnergy Three Rives2-13-820 Well locat-ed in the SW%NW%of Section 2, T8S,R2OE, SLM,

(the "SubjectFormations"), com-prised ofthe follow-ing Uintah County,Utah lands:

'lbwnship 7 South,Range 20 East, SLM

Section 27:NW%SE%

Jeclrolt 2/:sw%sE%

respectively (the"Subject Lands");

2. Authorizing upto two (2) produc-ang we lls per drillingunit so established;provided no well maybe located closer than460 f'eet to a shareddrilling unitleaseboundary line andno closer than 100feet il'the adjacentlands are \\,ithin thesame lease and havethe same prodw-tion intercst owners,without an exceptionlocation approvalin accordance withUtah Admin. CodeRule R649-3-3 (orsubsequently enactedequivalent regula-tion);

3. Declaring theexisting wells produc-ing from the SubjecrFormaaions uponthe Subject Lands robe at legal locationsnotwithstanding the.eliefrequested;

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Documents

BEFORE THE BOARD OF OIL, GAS AND MINING ......2014/09/29 · Englewood, CO 80112 Steven F. Alder Assistant Attorneys General Utah Division of Oil, Gas & Mining 1594 W North Temple,