Y:COMMISSION 0JULYREADY TO PRINTConway - SEECO ---- 453 ... Applications Archive/2010/July/453-2… · 2. Applicant owns oil and gas leases covering a substantial part of the proposed

JERRY L. CANFIELD, P.A.THOMAS A. DAILY, P.A.WYMAN R. WADE, JR., P.A.DOUGLAS M. CARSON, P.A.ROBERT R. BRIGGS, P.A. † *C. MICHAEL DAILY, P.A. †COBY W. LOGANL. MATTHEW DAVIS, P.A. †COLBY T. ROE

* 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

______________

COMMERCE PARK II BUILDING2049 EAST JOYCE BOULEVARD, STE. 401

FAYETTEVILLE, AR 72703TELEPHONE (479) 582-0361

FAX (479) 251-8111

JAMES E. WESTPHILLIP E. NORVELL *

DALE CARLTON *

OF COUNSEL

_______

HARRY P. DAILY (1886-1965)JOHN P. WOODS (1886-1976)JOHN S. DAILY (1912-1987)

July 6, 2010

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

Re: ORDER REFERENCE NO. 453-2010-07

Application of SEECO, Inc. for Integration of All Unleased Mineral Interests andNon-consenting Working Interests in a unit described as Section 6, Township 7North, Range 14 West, Conway 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 Southeast 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 6,988 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 gaslease, on an AAPL lease form, for a bonus consideration of

$1,000.00 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 a1/6 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 $1,000.00 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 1/6.

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

Duvall, Jerry 07-14 #1-06 Section 6 – T7N – R14W Conway County, Arkansas

EXHIBIT A

INTERESTED PARTIES

Page 1 of 3

MINERAL OWNERS

Byers, Odie See Page 1 of Exhibit B

Colwell, Jim See Page 2 of Exhibit B

Colwell, Luke M. and Medie R. Colwell See Page 3 of Exhibit B

Crow, Linda See Page 4 of Exhibit B

Duvall, Jerry and Wanda Duvall See Page 5 of Exhibit B

Freeburn, William and Vickie J. Freeburn See Page 3 of Exhibit B

Halliburton, Mildred, Heirs See Page 6 of Exhibit B

Kellar, Carolyn Sue See Page 7 of Exhibit B

Mahan, Haven aka Haven A. Mahan and Helen Mahan aka Helen A. Mahan, Heirs See Page 8 of Exhibit B

Murrell, Charles See Page 9 of Exhibit B

Price, Albert Lathell See Page 10 of Exhibit B

Price, John Edward See Page 11 of Exhibit B

Thomas, Missouri West, Heirs aka Missouri Thomas Walker, Heirs See Page 12 of Exhibit B

Walker, S. D., or his heirs See Page 12 of Exhibit B


EXHIBIT A

INTERESTED PARTIES

Page 2 of 3

Walter, Michael G. and Linda McIntyre Walter See Page 13 of Exhibit B

Watkins, Dallas, Heirs See Page 14 of Exhibit B

West, Albert, Heirs See Page 15 of Exhibit B

West, Edward Dewey See Page 16 of Exhibit B

West, Jettie Mary See Page 17 of Exhibit B

West, Joseph See Page 18 of Exhibit B

West, Lowena See Page 19 of Exhibit B

West, Ronald A. See Page 20 of Exhibit B

West, Ronald Coleman aka Ronald C. West, Heirs See Page 21 of Exhibit B

West, Vivian See Page 22 of Exhibit B

West, Xavier See Page 23 of Exhibit B

West, Zoann See Page 24 of Exhibit B

West, Zolanda See Page 25 of Exhibit B

WORKING INTEREST OWNERS:

BP America Production Company See Page 26 of Exhibit B


EXHIBIT A

INTERESTED PARTIES

Page 3 of 3

Chesapeake Exploration, LLC See Page 27 of Exhibit B

David H. Arrington Oil & Gas, Inc. See Page 30 of Exhibit B

Mobile Operating, LLC See Page 31 of Exhibit B

Petrohawk Properties, LP See Page 32 of Exhibit B


EXHIBIT B

RESUME OF EFFORTS TO LEASE

Page 1 of 32

Odie Byers April 20, 2010 Searched office records for contact information. Nothing found.

Conducted internet search for possible contact information. No positive results.

April 21, 2010 Checked local and surrounding area directories for possible contact

information. Nothing found. May 5, 2010 Searched courthouse records. Located a court case filed between the West

heirs and Macie L. (West) Franklin. Learned that Theresa Smith is a relative of Odie Byers. Conducted internet search and located a possible telephone number for Theresa Smith.

May 10, 2010 Called and spoke with Theresa Smith. Asked for information about

owner. She informed me of the state where she thought he lived, but was unsure of his whereabouts. Conducted internet search to include state where owner’s sister thought he now lived. No positive results.

May 18, 2010 Called and spoke with Theresa Smith again. She had no new information

to offer. May 28, 2010 Expanded internet search for any new information on owner. Nothing

new found. June 15, 2010 Spoke with Theresa Smith again to see if she had any new information on

how to reach her brother. She had nothing new to offer. June 18, 2010 Mailed lease proposal letter to owner in care of Theresa Smith. June 28, 2010 No response to lease proposal letter. Called Theresa smith again, no

answer. Left a message. July 6, 2010 Well proposal letter and AFE mailed to owner in care of Theresa Smith.


EXHIBIT B


Page 2 of 32

Jim Colwell May 7, 2010 Searched office records for owner’s contact information. Nothing found. May 11, 2010 Searched local phone directories. Nothing found. May 13, 2010 Searched courthouse records. Located owner’s contact information.

Called, no answer. Left a message. May 27, 2010 Called again, still no answer. Left another message. June 10, 2010 Spoke with owner. Discussed lease terms. He will consider offer. He

said his daughter is leased with a third party. He would like to talk with his family. He will call back.

June 28, 2010 No return call from owner. Called again. He hasn’t talked with his family

yet. June 29, 2010 Mailed lease proposal letter to owner. July 6, 2010 Well proposal letter and AFE mailed.


EXHIBIT B


Page 3 of 32

Luke M. Colwell and Medie R. Colwell William Freeburn and Vickie J. Freeburn William Freeburn and Vickie J. Freeburn are remaindermen to Luke M. Colwell and Medie R. Colwell’s life estate. May 7, 2010 Searched office records for owner’s contact information. Nothing found. May 11, 2010 Searched local phone directories. Located a phone number. Called, no

answer. May 13, 2010 Called again, still no answer. May 27, 2010 Called again, still no answer. June 10, 2010 Spoke with Jim Colwell (See Page 2 of Exhibit B). He said Luke M.

Colwell is deceased. He will speak with Medie and the rest of the family. He will call back.

June 28, 2010 No return call from owner. Called Jim Colwell again. He hasn’t talked

with his family yet. June 29, 2010 Mailed lease proposal letter to owner. July 6, 2010 Well proposal letter and AFE mailed to all parties.


EXHIBIT B


Page 4 of 32

Linda Crow May 7, 2010 Searched office records for owner’s contact information. Nothing found. May 11, 2010 Searched local phone directories. Located phone number. Called, no

answer. Left a message. May 19, 2010 Called again, left another message. May 27, 2010 Called again, still no answer. Left another message. June 10, 2010 Spoke with owner. Discussed lease terms. She is a member of the

Colwell family. She will do whatever the rest of the family decides to do. June 28, 2010 No return call from owner. Called again, no answer. Spoke with Mr.

Colwell, he hasn’t talked with his family yet. June 29, 2010 Mailed lease proposal letter to owner. July 6, 2010 Well proposal letter and AFE mailed.


EXHIBIT B


Page 5 of 32

Jerry Duvall and Wanda Duvall At Book 208, Page 560, dated February 2, 2001, the Commissioner in Chancery, Carolyn Gadberry, conveyed, by Commissioner’s Deed, Tracts 30, 31, 32 and 33 to Jerry D. Duvall and Wanda K. Duvall, husband and wife. In this Commissioner’s Deed, however, the Commissioner did not reserve the minerals as instructed in the Partition Decree. Due to this oversight, the Commissioner executed an “Amended Commissioner’s Deed” at Book 208, Page 654, dated February 14, 2001, properly limiting the conveyance to surface rights only in Tracts 30, 31, 32 and 33, in favor of Jerry D. Duvall and Wanda K. Duvall, husband and wife. The problem with the Amended Commissioner’s Deed is that, in Arkansas, a grantor who has conveyed by an effective and unambiguous instrument cannot, without the express written consent of the grantee, by executing another instrument, make a substantial change in the name of the grantee, decrease the size or extent of the estate granted, impose a condition or limitation upon the interest granted, or otherwise derogate from the first grant, even though the latter purports to correct or modify the former. There is a caveat to this specific factual scenario, however. Prior to execution of the first Commissioner’s Deed (as well as execution of the Amended Commissioner’s Deed), Mr. and Mrs. Duvall, as grantees in each Deed, would have been on constructive notice of the Court’s August 8, 2000 Decree wherein the Chancery Court specifically limited the Commissioner’s sale of Tracts 30, 31, 32 and 33 to surface rights only. Therefore, Jerry Duvall and Wanda Duvall are being named for protection purposes. May 7, 2010 Searched office records for owner’s contact information. Nothing found.

Checked local phone directories. Nothing found. May 18, 2010 Checked courthouse records. Located an address for owner. Searched internet

for a phone number. Located a phone number for owner. Called, no answer. Left a message.

May 29, 2010 Called again, still no answer. Left another message. Mailed lease proposal

letter. June 15, 2010 Called again, still no answer. Left another message. Searched internet again.

Located another phone number. Called, no answer, left another message. July 1, 2010 Called again. Spoke with Mrs. Duvall. She said she will have Jerry call. We

will have to discuss the interest with him. July 2, 2010 No return call from Jerry Duvall. Called again, no answer. Left a message. July 6, 2010 Well proposal letter and AFE mailed.


EXHIBIT B


Page 6 of 32

Mildred Halliburton, Heirs April 20, 2010 Searched office records for contact information. Nothing found.

Conducted internet search for possible contact information. No positive results.

April 21, 2010 Checked local and surrounding area directories for possible contact

information. Nothing found. May 5, 2010 Searched courthouse records. Located a court case filed between the West

heirs and Macie L. (West) Franklin. Learned that Theresa Smith is a relative of Mildred Halliburton. Conducted internet search and located a possible telephone number for Theresa Smith.

May 10, 2010 Called and spoke with Theresa Smith. Asked for information about

owner. She informed me that owner is now deceased. Asked her for information on any heirs of owner. She informed that owner did have children and she would give them the message to call me.

May 18, 2010 Called and spoke with Theresa Smith. Asked if I could have the telephone

numbers of owner’s children. Theresa Smith, again, said she would give the children a message to call. She would not provide me with telephone numbers. Searched internet for Halliburton’s in the area. Located two different people. No phone number found. Mailed lease proposal letters.

May 28, 2010 No calls received from heirs of owner. Expanded internet search for any

new information on owner’s heirs. Nothing new found. No response to letters mailed.

June 15, 2010 Spoke with Theresa Smith again to see if she would be willing to give

owner’s heirs names and phone numbers. She again stated that she would not provide the information. She will ask them to call.

June 28, 2010 Still no response to letters mailed. No return call from heirs of owner.

Unable to determine heirship at this time. July 6, 2010 Well proposal letter and AFE mailed in care to Theresa Smith.


EXHIBIT B


Page 7 of 32

Carolyn Sue Kellar May 6, 2010 Located owner’s contact information. Called, no answer. Left message. May 21, 2010 Called again, still no answer. Left another message. June 5, 2010 Called again, still no answer. Left another message. Mailed lease

proposal letter to owner. June 17, 2010 Spoke with owner. She said she had received better offers from third

parties. June 25, 2010 No change in status. Owner is still considering other offers. July 6, 2010 Well proposal letter and AFE mailed.


EXHIBIT B


Page 8 of 32

Haven Mahan aka Haven A. Mahan and Helen Mahan aka Helen A. Mahan, Heirs April 22, 2010 Searched office records for contact information. Located a possible

address. Searched internet. Located a possible telephone number. Called, no answer. Left a message.

April 25, 2010 No return call. Called again, no answer. Left another message. May 11, 2010 Called and spoke with resident at phone number. It is not owner we are

looking for. Asked if they knew of owner. Said they did not know of owner or any heirs of owner.

May 23, 2010 Drove out to address we have for owners. No one was there. June 1, 2010 Mailed letter to last known address. June 17, 2010 Located a phone number for owner’s daughter, Carolyn Sue Kellar. (See

Page 7 of Exhibit B). She said they are both deceased. Discussed lease offer. She said she had received better offers.

June 18, 2010 Mailed lease proposal letter to owner. June 25, 2010 No change in status. Owner’s daughter is still considering other offers. July 6, 2010 Well proposal letter and AFE mailed.


EXHIBIT B


Page 9 of 32

Charles Murrell An executed oil and gas lease from Virginia Murrell was received. Said lease is recorded in Oil & Gas book 197 at page 98. Lease was originally made out to Virginia Murrell and Charles Murrell, w/h. Virginia Murrell crossed out “Charles Murrell, w/h” on the lease documents. She does not know where he is. Therefore, Charles Murrell is being named for protection purposes. May 6, 2010 Searched local phone directories. Nothing found. May 16, 2010 Checked courthouse records and local phone directories. Nothing found. May 19, 2010 Spoke with family of Mr. Murrell. No one knew how to contact him. June 3, 2010 Spoke with other family members, who said owner may be deceased. June 4, 2010 No change in status. Unable to locate owner. June 22, 2010 Expanded internet search again. Nothing new found. July 6, 2010 Well proposal letter and AFE mailed to owner in care of Virginia Murrell.


EXHIBIT B


Page 10 of 32

Albert Lathell Price April 23, 2010 Located contact information for owner’s family. Called, the family agreed

to lease. Lease and related documents being prepared. April 25, 2010 Lease and related documents mailed. May 3, 2010 Received a call from owner’s family. There are some corrections to be

made in the heirship affidavits and leases. Corrected leases and related documents prepared and mailed.

May 20, 2010 Called owner’s family to verify receipt of new lease. No answer. Left a

message. June 7, 2010 Called again, still no answer. Left another message. June 18, 2010 Owner’s brother called. He said he would have owner send the lease back

in. July 6, 2010 Well proposal letter and AFE mailed.


EXHIBIT B


Page 11 of 32

John Edward Price April 23, 2010 Located contact information for owner’s family. Called, the family agreed

to lease. Lease and related documents being prepared. April 25, 2010 Lease and related documents mailed. May 3, 2010 Received a call from owner’s family. There are some corrections to be

made in the heirship affidavits and leases. Corrected leases and related documents prepared and mailed.

May 20, 2010 Called owner’s family to verify receipt of new lease. No answer. Left a

message. June 7, 2010 Called again, still no answer. Left another message. June 18, 2010 Spoke with owner’s brother. He said owner is in jail, but planned to

execute the lease and return it. July 6, 2010 Well proposal letter and AFE mailed.


EXHIBIT B


Page 12 of 32

Missouri West Thomas, Heirs aka Missouri Thomas Walker, Heirs S. D. Walker or his heirs We believe that Missouri West Thomas was survived by a child, S.D. Walker. At paragraph 6 of the August 8, 2000 Partition Decree, the Court found that: [N]o heirs of Missouri West Thomas have appeared in this proceeding. The parties do not know of the existence of any heirs, although if the heirs of Missouri West Thomas are later found to exist, appropriate changes can be made in the division of the proceeds from the sale of the lands (as hereinafter set out).” As referenced above, in a separate quiet title petition, styled James L. Martin and Myra W. Martin v.Paul Broadhead, Administrator of the Estate of Sam Broadhead, deceased; Case No. 8863 in the Chancery Court of Conway County, Arkansas, the same being dated October 17, 1972, the Petitioners allege that S.D. Walker was the “sole heir of Missouri Thomas Walker.” We do note that in the chain of title for Tract 28, S.D. Walker appears of record and conveys interests in this same tract for a number of years. Because we believe that Missouri West Thomas did pass survived by S.D. Walker, we believe that her 1/3 mineral interest in Tracts 30, 31, 32 and 33 would now be owned by either S.D. Walker or, if Mr. Walker is deceased, by his heirs at law. We have reviewed no affidavit of death and heirship for S.D. Walker, nor have we reviewed any probate proceedings from any county in Arkansas which would allow us to opine title beyond S. D. Walker. Nevertheless, we do not believe, as the Court held in its August 8, 2000 Decree, that Missouri Thomas West died without any surviving heirs. May 2, 2010 Searched office records for information on owner. Nothing found. Searched

local and surrounding phone directories. Nothing found. May 10, 2010 Searched courthouse records. Nothing new found. May 23, 2010 Contacted several West heirs. None contacted had any information about

owners. June 2, 2010 Expanded courthouse search. Located a deed in Tract 28 to a Sidney Walker.

Expanded internet search. Found a Sidney Walker in ancestry.com who might have been owner, but no way to verify. The entry also showed he died in the 1970’s. No heirship information was available.

June 10, 2010 Spoke with other West heirs. No new information found. June 18, 2010 Expanded internet search again. Still nothing found. June 30, 2010 Status remains unchanged. No new sources have surfaced and no new

knowledge of this owner or heirs of this owner has been obtained. Unable to locate owner.


EXHIBIT B


Page 13 of 32

Michael G. Walter and Linda McIntyre Walter April 8, 2010 Searched office records for contact information. Located a possible

address. Conducted internet search. Located a possible telephone number. Called, no answer. Left message.

April 10, 2010 No return call. Called, no answer. Left another message. April 20, 2010 Called and spoke with person at this number. It is not the subject owner

we are looking for. Asked if he knew of owner or how to contact owner. He did not know of owner.

May 5, 2010 Expanded internet search. Found three possible listings. Called, no

answer. Left message at all three. May 16, 2010 No return calls. Called all numbers again and left messages. June 3, 2010 Mailed lease proposal letter to last known address. June 15, 2010 No response to lease proposal letter. Called other Walter’s listings. Spoke

with one, who did not know owners. Called two other listings. No answer. Left messages.

June 28, 2010 Drove to the area. Nothing there. Spoke with some neighbors. No one

contacted had any information. Unable to communicate with owners. July 6, 2010 Well proposal letter and AFE mailed to last known address.


EXHIBIT B


Page 14 of 32

Dallas Watkins, Heirs The possible heirs of Dallas Watkins have leased their interest to Chesapeake Exploration, LLC. (See Page 27 of Exhibit B). Heirship has not been determined. Therefore, this interest is being named for protection purposes pending curative from Chesapeake Exploration, LLC. July 6, 2010 Well proposal letter and AFE mailed to Dallas Watkins, Heirs in care of

Altha M. Dorn.


EXHIBIT B


Page 15 of 32

Albert West, Heirs Albert Lathell Price See Page 10 of Exhibit B John Edward Price See Page 11 of Exhibit B


EXHIBIT B


Page 16 of 32

Edward Dewey West May 7, 2010 Searched office records and local phone directories for owner’s contact

information. Nothing found. May 16, 2010 Spoke with other West heirs in the section. None have heard from owner

in quite some time. May 20, 2010 Searched internet for information on owner. Nothing found. June 5, 2010 Spoke with more members of the West family. Nothing new found. June 18, 2010 No change in status. Unable to locate owner. June 30, 2010 Status remains unchanged. No new sources have surfaced and no new

knowledge of this owner or heirs of this owner has been obtained. Unable to locate owner.


EXHIBIT B


Page 17 of 32

Jettie Mary West May 7, 2010 Searched office records for owner’s contact information. Nothing found. May 14, 2010 Checked local phone directories and internet. Located a possible phone

number. Called, no answer May 18, 2010 Received some information from another West heir for owner’s brother.

Tried to call Joseph West, owner’s brother. No answer. May 22, 2010 Located a possible phone number for owner. Called, no answer. Left a

message. June 5, 2010 Called again, still no answer. Left another message. June 18, 2010 Tried to call owner’s brother, Joseph, again. Still no answer. June 24, 2010 Spoke with owner’s brother, Joseph West. He said to call his sister,

Zoann West. Called, she said to mail her a lease proposal letter for her sister.

July 6, 2010 Well proposal letter and AFE mailed to owner in care of her sister, Zoann

West.


EXHIBIT B


Page 18 of 32

Joseph West April 10, 2010 Searched office records for owner’s contact information. Nothing found.

Checked local phone directories. Nothing found. April 12, 2010 Searched internet. Nothing found. April 16, 2010 Spoke with a family member of owner. Obtained owner’s contact

information. Called, no answer. No answering machine. Unable to leave a message. Mailed lease proposal letter.

May 2, 2010 Called again, no answer. May 18, 2010 No response to lease proposal letter. Called again. Still no answer.

Mailed second lease proposal letter. May 23, 2010 Obtained owner’s cell phone number from a family member. Called, no

answer. Left a message. June 2, 2010 Called again. No answer, left another message. June 18, 2010 Called again, still no answer. No response to lease proposal letter. June 24, 2010 Spoke with owner. Discussed lease terms. He agreed to lease. Lease and

related documents prepared. June 26, 2010 Lease and related documents mailed. July 6, 2010 Well proposal letter and AFE mailed.


EXHIBIT B


Page 19 of 32

Lowena West April 5, 2010 Obtained owner’s contact information from a family member. Called,

discussed lease terms. Owner agreed to lease. Lease and related being prepared.

April 8, 2010 Lease and related documents mailed. April 22, 2010 Called owner to verify receipt of lease documents. No answer. Left a

message. May 5, 2010 Called again, no answer. Left a message. May 18, 2010 Spoke with owner’s relative. He said he would ask owner to call. June 2, 2010 Called again, still no answer. Left a message. Waiting for executed

documents to be returned. June 17, 2010 Spoke with owner’s relative again. He said he will speak with owner

about returning the executed document. July 6, 2010 Well proposal letter and AFE mailed.


EXHIBIT B


Page 20 of 32

Ronald A. West April 5, 2010 Obtained owner’s contact information from a relative. Called, discussed

lease terms. Owner agreed to lease. Lease and related documents being prepared.


message. May 7, 2010 Spoke with owner. He verified the lease had been received. He said he

would execute and return soon. May 12, 2010 Spoke with owner again. He asked for a lease without his spouse’s name

listed. Replacement lease and related documents prepared and mailed. May 26, 2010 Called owner to discuss the status of the replacement lease. No answer.

Left another message. June 3, 2010 Called again, still no answer. Left another message. June 18, 2010 Spoke with owner. His attorney is reviewing the lease. He will return it

after his attorney approves the document. July 6, 2010 Well proposal letter and AFE mailed.


EXHIBIT B


Page 21 of 32

Ronald Coleman West aka Ronald C. West, Heirs Lowena West See Page 19 of Exhibit B Ronald A. West See Page 20 of Exhibit B Zolanda West See Page 25 of Exhibit B


EXHIBIT B


Page 22 of 32

Vivian West April 10, 2010 Searched office records for owner’s contact information. Nothing found.

Checked local phone directories. Nothing found. April 12, 2010 Searched internet. Nothing found. April 16, 2010 Spoke with a family member of owner. Obtained contact information for

owner’s son, Joseph West (See Page 18 of Exhibit B). Called, no answer. No answering machine. Unable to leave a message. Mailed lease proposal letter.

May 2, 2010 Called Joseph West again, no answer. May 18, 2010 No response to lease proposal letter. Called again. Still no answer.

Mailed second lease proposal letter. June 2, 2010 Called again. No answer. June 18, 2010 Called again, still no answer. No response to lease proposal letter. June 24, 2010 Spoke with owner’s son, Joseph. Obtained phone number for his sister,

Zoann West. Spoke with Zoann. She will speak with her mother and the rest of the family. She will call back.

July 1, 2010 No return call from Zoann West. Called her again. No answer. Left a

message. July 6, 2010 Well proposal letter and AFE mailed to owner in care of her daughter,

Zoann West.


EXHIBIT B


Page 23 of 32

Xavier West April 10, 2010 Searched office records for owner’s contact information. Nothing found.

Checked local phone directories. Nothing found. April 12, 2010 Searched internet. Nothing found. April 16, 2010 Spoke with a family member of owner. Obtained contact information for

owner’s brother, Joseph West (See Page 18 of Exhibit B). Called, no answer. No answering machine. Unable to leave a message. Mailed lease proposal letter.

May 2, 2010 Called Joseph West again, no answer. May 18, 2010 No response to lease proposal letter. Called again. Still no answer.

Mailed second lease proposal letter. June 2, 2010 Called again. No answer. June 18, 2010 Called again, still no answer. No response to lease proposal letter. June 24, 2010 Spoke with Joseph West. He will contact owner and have her call back. July 6, 2010 Well proposal letter and AFE mailed.


EXHIBIT B


Page 24 of 32

Zoann West May 2, 2010 Searched office records for owner’s contact information. Nothing found.

Searched local and surrounding phone directories. Nothing found. May 7, 2010 Searched internet. Located several people with the same on in the SSDI

records. Unable to determine if any of them are owner. May 12, 2010 Expanded internet search to include surrounding states. Nothing new

found. May 27, 2010 Searched courthouse records. Located a court case dealing with several

members of the West family. Called and spoke with Macie Franklin, one of the parties in the suit. She did not know owner.

June 2, 2010 Tried to call owner’s brother, Joseph West. No answer, left another

message. June 18, 2010 Called Joseph West again, still no answer. No response to lease proposal

letter. June 24, 2010 Spoke with owner’s brother. Obtained owner’s phone number and

address. Called her, discussed lease terms. She asked for the offer in writing. Mailed lease proposal letter.

July 1, 2010 Called owner, no answer. Left a message. July 6, 2010 Well proposal letter and AFE mailed.


EXHIBIT B


Page 25 of 32

Zolanda West April 5, 2010 Obtained owner’s contact information from a relative. Called, discussed

lease terms. Owner agreed to lease. Lease and related documents being prepared.


message. May 7, 2010 Spoke with owner. She verified the lease had been received. He said he

would execute and return soon. May 26, 2010 Called owner to discuss the status lease. No answer. Left another

message. June 3, 2010 Called again, still no answer. Left another message. June 18, 2010 Spoke with owner’s brother. Their attorney is reviewing the lease. Owner

will return it after the attorney approves the document. July 6, 2010 Well proposal letter and AFE mailed.


EXHIBIT B


Page 26 of 32

BP America Production Company BP America Production Company owns a working interest in the following Oil & Gas leases recorded in Conway County, Arkansas:

1) William E. Smith and Linda Smith to Chesapeake Exploration Limited Partnership dated February 7, 2006 and recorded in Oil & Gas book 117 at page 410.

2) Danny Dale Sullivan and Rosemary Antoniette Sullivan to David H. Arrington Oil & Gas, Inc. dated June 19, 2006 and recorded in Oil & Gas book 124 at page 446.

3) Daniel Phillips and Anita Phillips and Mary Lou Phillips to David H. Arrington Oil & Gas, Inc.

dated May 10, 2006 and recorded in Oil & Gas book 125 at page 481.

4) Dorchester Minerals, LP to Chesapeake Exploration Limited Partnership dated June 27, 2006 and recorded in Oil & Gas book 125 at page 583.

5) James M. Sullivan to David H. Arrington Oil & Gas, Inc. dated May 6, 2006 and recorded in Oil

& Gas book 127 at page 80.

6) John Wilton Sullivan and Eleanor Joan Sullivan to David H. Arrington Oil & Gas, Inc. dated July 12, 2006 and recorded in Oil & Gas book 129 at page 130.

7) Leon Gardner and Patricia A. Gardner to David H. Arrington Oil & Gas, Inc. dated August 31,

2006 and recorded in Oil & Gas book 135 at page 68.

8) Ricky Joe Buckmaster and Cathy Anne Buckmaster to David H. Arrington Oil & Gas, Inc. dated June 2006 and recorded in Oil & Gas book 144 at page 30.

9) Bruce Curtis Buckmaster and Patricia Williams Buckmaster to David H. Arrington Oil & Gas,

Inc. dated June 2006 and recorded in Oil & Gas book 144 at page 27. ( Corrected at book 160 at page 685.)

10) James Alan Buckmaster and Juanita Ann Buckmaster to David H. Arrington Oil & Gas, Inc.

dated June 2006 and recorded in Oil & Gas book 144 at page 33.

Chesapeake Exploration L. L. C. assigned an undivided interest to BP America Production Company. Said assignment is effective July 1, 2008 and recorded in Oil & Gas book 171 at page 610. July 6, 2010 Well proposal letter and AFE mailed.


EXHIBIT B


Page 27 of 32

Chesapeake Exploration, LLC Chesapeake Exploration, LLC owns a working interest in the following Oil & Gas leases recorded in Conway County, Arkansas:

1) William E. Smith and Linda Smith to Chesapeake Exploration Limited Partnership dated February 7, 2006 and recorded in Oil & Gas book 117 at page 410.

2) Danny Dale Sullivan and Rosemary Antoniette Sullivan to David H. Arrington Oil & Gas, Inc. dated June 19, 2006 and recorded in Oil & Gas book 124 at page 446.

3) Daniel Phillips and Anita Phillips and Mary Lou Phillips to David H. Arrington Oil &

Gas, Inc. dated May 10, 2006 and recorded in Oil & Gas book 125 at page 481.

4) Dorchester Minerals, LP to Chesapeake Exploration Limited Partnership dated June 27, 2006 and recorded in Oil & Gas book 125 at page 583.

5) James M. Sullivan to David H. Arrington Oil & Gas, Inc. dated May 6, 2006 and recorded in Oil & Gas book 127 at page 80.

6) John Wilton Sullivan and Eleanor Joan Sullivan to David H. Arrington Oil & Gas, Inc. dated July 12, 2006 and recorded in Oil & Gas book 129 at page 130.

7) Leon Gardner and Patricia A. Gardner to David H. Arrington Oil & Gas, Inc. dated August 31, 2006 and recorded in Oil & Gas book 135 at page 68.

8) Bruce Curtis Buckmaster and Patricia Williams Buckmaster to David H. Arrington Oil & Gas, Inc. dated June 2006 and recorded in Oil & Gas book 144 at page 27. ( Corrected at book 160 at page 685.)

9) Ricky Joe Buckmaster and Cathy Anne Buckmaster to David H. Arrington Oil & Gas, Inc. dated June 2006 and recorded in Oil & Gas book 144 at page 30.

10) James Alan Buckmaster and Juanita Ann Buckmaster to David H. Arrington Oil & Gas, Inc. dated June 2006 and recorded in Oil & Gas book 144 at page 33.

11) Isaac Zachary and Mae Ruth Zachary to Chesapeake Exploration, LLC dated September

24, 2008 and recorded in Oil & Gas book 173 at page 264.

12) Lorenzo Bass and Linda Bass to Chesapeake Exploration, LLC dated September 24, 2008 and recorded in Oil & Gas book 173 at page 344.


EXHIBIT B


Page 28 of 32

Chesapeake Exploration, LLC continued from page 27 of Exhibit B

13) Gary S. Edwards aka Gary Edwards to Chesapeake Exploration, LLC dated October 7, 2008 and recorded in Oil & Gas book 173 at page 650.

14) Sam Sledge and Estelle Sledge to Chesapeake Exploration, LLC dated September 24, 2008 and recorded in Oil & Gas book 175 at page 240.

15) John A. West, Jr. to Chesapeake Exploration, LLC dated February 13, 2009 and recorded in Oil & Gas book 183 at page 686.

16) John A. West, Jr. to Chesapeake Exploration, LLC dated February 13, 2009 and recorded in Oil & Gas book 183 at page 693.

17) James Byers and Brenda Avery-Byers to Chesapeake Exploration, LLC dated March 30, 2009 and recorded in Oil & Gas book 184 at page 104.

18) Macie L. Franklin aka Marcie L. Franklin & Saunders T. Franklin to Chesapeake

Exploration, LLC dated March 11, 2009 and recorded in Oil & Gas book 184 at page 701.

19) Richard D. West to Chesapeake Exploration, LLC dated February 13, 2009 and recorded

in Oil & Gas book 184 at page 706.

20) Dorothy Jean West aka Dorothy Jeanette West to Chesapeake Exploration, LLC dated May 12, 2009 and recorded in Oil & Gas book 185 at page 135.

21) Kenneth D. West and Sarah West to Chesapeake Exploration, LLC dated February 13,

2009 and recorded in Oil & Gas book 185 at page 189.

22) Theresa Marie Smith and Henry D. Smith to Chesapeake Exploration, LLC dated July 28, 2009 and recorded in Oil & Gas book 187 at page 366.

23) Altha M. Dorn to Chesapeake Exploration, LLC dated August 7, 2009 and recorded in

Oil & Gas book 188 at page 557.

24) Deryl L. Martin to Chesapeake Exploration, LLC dated August 7, 2009 and recorded in Oil & Gas book 189 at page 170.

25) Gayle Fuller and Stephen Fuller to Triple A LLC dated January 22, 2010 and recorded in

Oil & Gas book 194 at page 127.


EXHIBIT B


Page 29 of 32

Chesapeake Exploration, LLC continued from page 27 of Exhibit B

26) William C. Brazil aka William Clay Brazil to Chesapeake Exploration, LLC dated January 5, 2010 and recorded in Oil & Gas book 195 at page 55.

27) James Brazil aka James Edward Brazil & Margaret Brazil to Chesapeake Exploration,

LLC dated January 5, 2010 and recorded in Oil & Gas book 195 at page 141.

28) Kerry Crofford and Sharla Crofford to Chesapeake Exploration, LLC dated January 18, 2010 and recorded in Oil & Gas book 197 at page 478.

Chesapeake Exploration Limited Partnership, by Affidavit of Identity and Corporate Successorship, is now Chesapeake Exploration, LLC effective August 6, 2007 and recorded in Oil & Gas book 151 at page 239. Through various assignments, Chesapeake Exploration, LLC now owns an undivided interest in the above leases. July 6, 2010 Well proposal letter and AFE mailed.


EXHIBIT B


Page 30 of 32

David H. Arrington Oil & Gas, Inc. David H. Arrington Oil & Gas, Inc. owns a working interest in the following Oil & Gas leases recorded in Conway County, Arkansas:

1) Daniel Phillips and Anita Phillips and Mary Lou Phillips to David H. Arrington Oil & Gas, Inc. dated May 10, 2006 and recorded in Oil & Gas book 122 at page 643.

July 6, 2010 Well proposal letter and AFE mailed.


EXHIBIT B


Page 31 of 32

Mobile Operating, LLC Mobile Operating, LLC owns a working interest in the following Oil & Gas leases recorded in Conway County, Arkansas:

1) Parowan Corporation to Mobile Operating, LLC dated August 24, 2006 and recorded in Oil & Gas book 130 at page 145.

2) Paul Broadhead and Sherry Monroe Broadhead to Mobile Operating, LLC dated August 24, 2006 and recorded in Oil & Gas book 132 at page 146.

July 6, 2010 Well proposal letter and AFE mailed.


EXHIBIT B


Page 32 of 32

Petrohawk Properties, LP Petrohawk Properties, LP owns a working interest in the following Oil & Gas leases recorded in Conway County, Arkansas:

1) William E. Smith and Linda Smith to Griffith Land Services, Inc. dated December 23, 2004 and recorded in Oil & Gas book 99 at page 464.

2) Barbara Hilton and Carl Hilton to Griffith Land Services, Inc. dated July 25, 2005 and recorded in Oil & Gas book 106 at page 95.

3) William E. Smith and Linda Smith to Petrohawk Properties Lp by P-H Energy, LLC

dated December 18, 2009 and recorded in Oil & Gas book 192 at page 590. Through various assignments, Petrohawk Properties, LP owns an undivided interest in the above Oil & Gas leases. July 6, 2010 Well proposal letter and AFE mailed.

EXHIBIT “C”Applicant’s statement regarding Operating Agreement

The applicant requests incorporation of the Model Form Joint Operating Agreement

approved by the Arkansas Oil and Gas Commission on October 28, 2008, with Paragraph

III.1.A.(1) of the COPAS providing for a drilling well rate of $7,500.00 and a producing

well rate of $750.00 , and with the following proposed revisions, deletions and/or

insertions, if applicable:

NONE

Documents

Y:COMMISSION 0JULYREADY TO PRINTConway - SEECO ---- 453 ... Applications Archive/2010/July/453-2… · 2. Applicant owns oil and gas leases covering a substantial part of the proposed