conf ntiai. - utah · 11002 e. 17500 s. vernal, utah 84078 phone 435-781-4331 fax 435-781-4395 d 4....

FORM APPROVED

Form 3160-3 OMB NO. 1040-0136(July 1992) UNITED STATES SUBMITINTRIPLICATE, Expires: February 28, 1995

DEPARTMENT OF THE INTERIOR 5. LEASE DESIGNATIONAND SERIAL NO.BUREAU OF LAND MANAGEMENT UTU-77301

6. IF INDIAN,ALLOTTEE OR TRIBE NAMEAPPLICATION FOR PERMIT TO DRILL OR DEEPEN NIA

TYPE OF WORK 7. UNIT AGREEMENT NAMEDRILL E DEEPEN BIG VALLEYUNIT

TYPE OF WELL 8. FARM OR LEASE NAME, WELL NO.

O O O SINGLE MULTIPLEOIL WELL GAS WELL OTHER ZONE ZONE NBZ 8D-29-8-242. NAME OF OPERATOR Contact: Jan Nelson 9.API NUMBER:

QUESTAR EXPLORATION& PRODUCTIONCO. E-Mail: [email protected] 7 ÖÂQÍ3. ADDRESS Telphone number 10. FIELDAND POOL, OR WILDCAT VAN

11002 E. 17500 S. Vernal, Utah 84078 Phone 435-781-4331 Fax 435-781-4395 D

4. LOCATION OF WELL (Report location clearly and in accordance with and State requirements*) 11. SEC.,T, R, M, OR BLK & SURVEY OR AREAAt Surface {p ¶0 7¶Q 1979' FNL 1006' FEL, SENE, ECTION29, T8S, R24EAt proposed production zone µ33 0/ '/ /Z SEC. 29, T8S, R24E SLB&M

14. DISTANCEIN MILES FROM NEAREST TOWN OR POSTOFFICE* 12. COUNTYOR PARISH 13. STATE34 + I - SOUTH OF VERNAL, UTAH Uintah UT15. DISTANCE FROM PROPOSED LOCATION TO NEAREST 16.NO.OF ACRES IN LEASE 17. NO. OF ACRES ASSIGNED TO THIS WELL

PROPERTY OR LEASE LINE, FT.(also to nearest drig,unit line if any) 1505.46 40

1006' + l -

18.DISTANCE FROM PROPOSED location to nearest well, drilling, 19. PROPOSED DEPTH 20. BLMIBIABond No. on filecompleted, applied for, on this lease, ft

13,224'ESBOOOO24

4510' + l -

21. ELEVATIONS(Show whether DF, RT, GR, ect.) 22. DATEWORK WILL START 23. Estimated duration5143.8' GR ASAP 35 days

24. Attachments

The following,completed in accordance with the requirments of Onshore Oil and Gas Order No. 1, shall be attached to this form:1. Well plat certified by a registered surveyor. 4. Bond to cover the operations unless covered by an exisiting bond on file (see2. A DrillingPlan Item 20 above).3. A surface Use Plan ( if location is on National Forest System Lands, 5. Operator certification.

the SUPO shall be filed with the appropriate Forest Service Office). 6. Such other site specific information and/or plans as may be required by theauthorized officer.

SIGNED Name (printedItyped) Jan Nelson DATE 09/10/2008

TITL Regulatory Affairs

(This space f Federal or State office use)

PERMIT NO. 'Ô APPROVAL DATE

Application approval does not warrant or certify the appli ny legal or equitable title to thoseSightsi th ubject lease which would entitle the applicant to conduct operations thereon

CONDITIONS APPROV A Y

BRADLEYG. HILLAPPROVED By TITLE ENVIRONMENTALMANAGER DATE

*See Instructions On Reverse Side

.::: CONFŒNTIAI.PetfaralApptiova/of this SActlanIs

NecessaryDIXOFOIL,GAS

FORM APPROVED












1006' + l -


13,224'ESBOOOO24

4510' + l -


24. Attachments













FORM APPROVED












1006' + l -


13,224'ESBOOOO24

4510' + l -


24. Attachments













QUESTAR EXPLR. & PROD.

TBS, R24 E, S. L.B. &M. 1°il,°°,°*',°hneNSEBZ#48D-E29-/84-24,Slocated29as '

T8S, R24E, S.L.B.&M., Uintah County, Utah.BASIS OF ELEVATIONNB9 55'4J"W - 2645.45' (Meas.) NB9°55'JP"W

- 2644.05' (Meas.)LL

| Js BENCH MARK 45EAM LOCATED IN THE NW 1/4 SW 1/4 OF1916 Brass Cap 1916 Brass Cap -J1916 Brass Cap SECTION 6, T9S, R24E, S.L.B.&M. TAKEN FROM THE BONANZA,8' gh, Scattered 7' gh, Scattered 0.8 igh, MoundQUADRANGLE,UTAH, UINTAH COUNTY, 7.5 MINUTE QUAD.(TOPOGRAPHIC MAP) PUBLISHED BY THE UNITED STATESDEPARTMENTOF THE INTERIOR,GEOLOGICALSURVEY. SAIDELEVATIONIS MARKED AS BEING 5350 FEET.

BASIS OF BEARINGSBASIS OF BEARINGS IS A G.P.S. OBSERVATION.

NBZ f8D-29-8-24Elev. Ungraded Ground = 5148' ( N

of Stones

SCALE

CETHIS IS TO CERTIFYTHAT PLA ARED FROMFIELD NOTES OF ACTUAL D BY M ER MYSUPERVISIONAND THAT ME g ECT TO THEBEST OF MYKNOWLEDG AN

TERED S YO319

1916 Ðrass Capg (gg1.5'xJ/4" Rebar on 2" Steel Post. 1916 Brass Capin Sand Dune, Large Sand Stone GB' High, ScatteredNO Cap J' NLY Stones UINTE ENGINEERING & IAND SURVEYINGNB9 51'OB"W -- 2644.86' (Meas.) NB9°56'15"W

- 2644.08' (Meas.) BS SOUTH 200 FAST - VERNAL, UTAH 84078(435) 789-1017

(AUTONOMOUSNAD 83)LEGEND.SCALE DATE SURVEYED: DATE DRAWN:

· LATITUDE= 40'05'43.42" (40.095394) 1" = 1000' 06-27-07 07-09-07LONGITUDE= 109°13'55.63" (109.232119)-90° SYMBOL PARTY REFERENCES(AUTONOMOUS NAD 27) D.A. S.V. T.A. L.K. G.L.O. PLAT= PROPOSED WELL HEAD. LATITUDE= 40°05'43.54" (40.095428)

WEATHER FILELONGITUDE= 109'13'53.20" (109.231444)A = SECTION CORNERS LOCATED. HOT QUESTAREXPLR. &




- 2644.05' (Meas.)LL




of Stones

SCALE


TERED S YO319









- 2644.05' (Meas.)LL




of Stones

SCALE


TERED S YO319






duction Company11002 East 17500 SouthVemal, UT 84078Tel 435 781 4300 • Fax 435 781 4329

September 10, 2008

Division of Oil, Gas & Mining1594 W. N. Temple STE 1210Salt Lake City, UT 84114-5801

To Whom It May Concern:

In reference to the State Oil and Gas Conservation rule R649-3-3 QuestarExploration & Production Company NBZ 8D-29-8-24 is an exception to thisrule due to topography.

There are no additional lease owners within 460' of the proposed location. Ifyou have any question please contact Jan Nelson @(435) 781-4331.

hank you,

Jan Nelson

RECEIVEDSEP15 2008

DIVOFOIL,GAS&

duction Company

11002 East 17500 SouthVemal, UT 84078

Tel 435 781 4300 • Fax 435 781 4329

September 10, 2008





hank you,

Jan Nelson

RECEIVEDSEP15 2008

DIVOFOIL,GAS&

duction Company

11002 East 17500 SouthVemal, UT 84078

Tel 435 781 4300 • Fax 435 781 4329

September 10, 2008





hank you,

Jan Nelson

RECEIVEDSEP15 2008

DIVOFOIL,GAS&

QUESTAR EXPLR. & PROD.Well locotion, NBZ ¢80-29-8-24, locoted asT8S, R24 E. S. L.B. &M shown in the SE 1/4 NE 1/4 of Section 29,TSS, R24E, S.LB.8eM.,Ulntoh County, Utah.

BASISOF ELEVATIONNB955'4J'W -2646.45°

(Meas.) NB955'JO"W - 2644.05' (Mees.)BENCH MARK 45EAM LOCATEDIN THE NW 1/4 SW 1/4 OFtete ans, op reis auss 4 914 A"" SECTON 8, TSS, R24E. S.L.B.&M. TAKEN FROM THE SONANZA,or QUADRANCLE,UTAH, UNTAH COUNTY, 7.5 MINUTEQUAD.(TOPOGRAPH1CMAP) PUBUSHEDBY THEUNITED STATESDEPARTMENTOF THE1NTERIOR,GEOLOCICALSURVEY. SAIDELEVARONIS MARKEDAS BEING 5350 FEET.

BASISOF BEARINGSBASISOF BEARINGSIS A G.P.S. OBSERVATION.6

NÐZ f6D-29-8-24 i

Elev. tJrtgraded Ground = N

460-ft R .

o ô

mis me., em 8 8 - 8

SCALE

CERTIFICATETHISIS TOCERWY THATTNE ARED PR(miF1EI.DNo1ESOF Ag1UAI. MYSUPERWSIONAND19tATTN 10 1HEBEST OF MY MOM,5DGE

&e., "'" Mr** ag 2°""*' Unrmr Ðiommois a*fillIŸ SummasoNOS'5139"W - 2644.86' (Meas.) N8956'15"W - 2644.00' (Meaa) 85 SOf??N 200 ÆdST - PERNAT. UTAN 84078(456) 189-1017(AUTONOMOUSNAD83)LEGEND: Lapyger . 46.os•43.42" (40.095394) 1" - 1000' 6 7 7 os o7- W' SYMBŒ LONGITUDE= 109°13'55.63" (109.232119)

(AUTONOMOUSNAD27) 0.A. S.V. T.A. LK. G.LO. PLAT= PROPOSED ililELLHEAD. LASTUDE- 40'05'43.54" (40.095428) minen FaxLONGITUDE- 109'13'53.20" (109.231444)* A - SECTON CORNERS LOCATED. HOT QUESTAREXPLR. &





NÐZ f6D-29-8-24 i


460-ft R .

o ô

mis me., em 8 8 - 8

SCALE


&e., "'" Mr** ag 2°""*' Unrmr Ðiommois a*fillIŸ SummasoNOS'5139"W - 2644.86' (Meas.) N8956'15"W - 2644.00' (Meaa) 85 SOf??N 200 ÆdST - PERNAT. UTAN 84078(456) 189-1017(AUTONOMOUSNAD83)LEGEND: Lapyger .

46.os•43.42" (40.095394) 1" - 1000' 6 7 7 os o7- W' SYMBŒ LONGITUDE= 109°13'55.63" (109.232119)(AUTONOMOUSNAD27) 0.A. S.V. T.A. LK. G.LO. PLAT= PROPOSED ililELLHEAD. LASTUDE- 40'05'43.54" (40.095428) minen FaxLONGITUDE- 109'13'53.20" (109.231444)* A - SECTON CORNERS LOCATED. HOT QUESTAREXPLR. &





NÐZ f6D-29-8-24 i


460-ft R .

o ô

mis me., em 8 8 - 8

SCALE


&e., "'" Mr** ag 2°""*' Unrmr Ðiommois a*fillIŸ SummasoNOS'5139"W - 2644.86' (Meas.) N8956'15"W - 2644.00' (Meaa) 85 SOf??N 200 ÆdST - PERNAT. UTAN 84078(456) 189-1017(AUTONOMOUSNAD83)LEGEND: Lapyger .

46.os•43.42" (40.095394) 1" - 1000' 6 7 7 os o7- W' SYMBŒ LONGITUDE= 109°13'55.63" (109.232119)(AUTONOMOUSNAD27) 0.A. S.V. T.A. LK. G.LO. PLAT= PROPOSED ililELLHEAD. LASTUDE- 40'05'43.54" (40.095428) minen FaxLONGITUDE- 109'13'53.20" (109.231444)* A - SECTON CORNERS LOCATED. HOT QUESTAREXPLR. &

O O

Additional Operator Remarks

Questar Exploration & Production Company proposes to drill a well to 13,224' to test the Dakota. Ifproductive, casing will be run and the well completed. If dry, the well will be plugged and abandonedas per BLMand State of Utah requirements"

Please see Questar Exploration & Prodcution Company Standard Operating Practices dated October18, 2005, for Mesa Verde Formation Wells located in Red Wash, Wonsits Valley, Gypsum Hills, WhiteRiver, Glen Bench, and Undesignated fields on Townships 07, 08 and 09 South, Ranges 21 to 25East.

Please see Onshore Order No. 1.

Please be advised that Questar Exploration & Production Company agrees to be responsible underthe terms and conditions of the lease for the operations conducted upon the lease lands.

Bond coverage for thiswell is provided by Bond No.ESBOOOO24. The principal is Questar Exploration& Production company via surety as consent as provided for the 43 CFR

O O







O O







ONSHORE OIL & GAS OR R NO. 1QUESTAR EXPLORATION & PRODUCTION, CO.NBZ 8D-29-8-24

DRILLINGPROGRAM

ONSHORE OIL & GAS ORDER NO. 1Approval of Operations on Onshore

Federal Oil and Gas Leases

All lease and/or unit operations will be conducted in such a manner that full compliance is madewith applicable laws, regulations (43 CFR 3100), Onshore Oil and Gas No. 1, and the approvedplan of operations. The operator is fully responsible for the actions of his subcontractors. A copyof these conditions will be furnished the field representative to insure compliance.

1. Formation Tops

The estimated tops of important geologic markers are as follows:

Formation DepthUinta SurfaceGreen River 1,344'Wasatch 4,154'Mesaverde 5,804'Sego 7,844'Castlegate 8,054'Mancos Shale 8,634'Dakota 12,674'TD 13,224'

2. Anticipated Depths of Oil Gas Water and Other Mineral Bearing Zones

The estimated depths at which the top and bottom of the anticipated water, oil, gas orother mineral bearing formations are expected to be encountered are as follows:

Substance Formation DepthGas Wasatch 4,154'Gas Mesaverde 5,804'Gas Mancos Shale 8,634'Gas Dakota 12,674'

All fresh water and prospectively valuable minerals encountered during drilling will berecorded by depth and adequately protected. All oil and gas shows will be tested todetermine commercial potential.

All water shows and water-bearing sands will be reported to the BLM in Vernal, Utah.Copies of State of Utah form OGC-8-X are acceptable. If flows are detected, samples willbe submitted to the BLM along with any water analyses conducted. Fresh water will beobtained from Wonsits Valley water right # A36125 (which was filed on May 7, 1964,)


DRILLINGPROGRAM




1. Formation Tops









DRILLINGPROGRAM




1. Formation Tops









DRILLING PROGRAM

Red Wash water right # 49-2153 (which was filed on March 25, 1960). It was determinedby the Fish and Wildlife Service that any water right number filed before1989 is notdepleting to the Upper Colorado River System, to supply fresh water for drilling purposes.All water resulting from drilling operations will be disposed of at Red Wash CentralBattery Disposal Site; SWSE, Section 27, T7S, R23E or Wonsits Valley Disposal Site;SWNW, Section 12, T8S, R21E.

3. Operator's Specification for Pressure Control Equipment:

A. A 10,000 psi double gate, 10,000 psi single gate, 10,000 psi annular BOP (schematicincluded) from surface casing point to total depth.

B. Functional test daily.

C. All casing strings shall be pressure tested (0.2psi/foot or 1500 psi, whichever isgreater) prior to drilling the plug after cementing; test pressure shall not exceed theinternal yield pressure of the casing.

D. Ram type preventers and associated equipment shall be tested to the approved stackworking pressure if isolated by test plug or to 50 percent of internal yield pressure ofcasing whichever is less. BOP and related equipment shall meet the minimumrequirements of Onshore Oil and Gas Order No. 2 for equipment and testingrequirements, procedures, etc..., for a 10M system and individual components shallbe operable as designed.

4. Casing Design:

Hole Csg. Top Bottom Mud Wt. Grade Thread Cond.Size Size (MD) (MD) Weight lb/ft

26" 20" surf 60-80' N/A Steel Cond. None Used

12-1/4" 9-5/8" surf 2,200' N/A 36.0 J-55 STC New

8-1/2" 7" Surface 8,700' 11.5 26.0 HCP-110 LTC New

6-1/8" 4-1/2" surf 13,224' 13.5 15.1 P-110 LTC New

Casing Strengths: Collapse Burst Tensile (minimum)

9-5/8" 36 lb. J-55 STC 2,020 psi 3,520 psi 394,000 lb.

7" 26 lb. HCP-110 LTC 7,800 psi 9,950 psi 693,000 lb.

4-1/2" 15.1 lb. P-110 LTC 14,350 psi 14,420 psi 406,000


DRILLING PROGRAM







4. Casing Design:



12-1/4" 9-5/8" surf 2,200' N/A 36.0 J-55 STC New


6-1/8" 4-1/2" surf 13,224' 13.5 15.1 P-110 LTC New


9-5/8" 36 lb. J-55 STC 2,020 psi 3,520 psi 394,000 lb.


4-1/2" 15.1 lb. P-110 LTC 14,350 psi 14,420 psi 406,000


DRILLING PROGRAM







4. Casing Design:



12-1/4" 9-5/8" surf 2,200' N/A 36.0 J-55 STC New


6-1/8" 4-1/2" surf 13,224' 13.5 15.1 P-110 LTC New


9-5/8" 36 lb. J-55 STC 2,020 psi 3,520 psi 394,000 lb.


4-1/2" 15.1 lb. P-110 LTC 14,350 psi 14,420 psi 406,000

ONSHORE OIL & GAS O ER NO. 1QUESTAR EXPLORATION & PRODUCTION, CO.NBZ 8D-29-8-24

DRILLINGPROGRAM

MINIMUM DESIGN FACTORS:

COLLAPSE: 1.125BURST: 1.10TENSION: 1.80

Area Fracture Gradient: 0.9 psi/footMaximum anticipated mud weight: 13.5 ppgMaximum surface treating pressure: 8,500 psiOver pull margin (minimum): 100,000 lbsPressure while bumping plug: 8,000 lbs

5. Cementing Program

20" Conductor:Cement to surface with construction cement.

9-5/8" Surface Casing: surf -- 2,200' (MD)Lead/Tail Slurry: 0' - 2,200'. 765 sks (1375 cu ft) Vericem cement + 0.25 lb/sk KwikSeal (lost circulation additive) + 0.125 lb/sk Poly-E-Flake (lost circulation additive).Slurry wt: 13.5 ppg, Slurry yield: 1.80 ft3/sk, Slurry volume: 12-1/4" hole + 100% excess.

7" Intermediate Casing: surf - 8,700' (MD)Lead Slurry: 0' - 4,000'. 185 sks (710 cu ft) Halliburton Hi-Fill cement. Slurry wt: 11.0ppg, Slurry yield: 3.84 ft3/sk,Slurry volume: 12-1/4" hole + 25% excess in open hole.Tail Slurry: 4,000' - 8,700'. 715 sks (885 cu ft) 50/50 Poz Premium cement + 0.6%Halad-322 (low fluid loss control) + 2.0% Microbond (expander) + 5.0% salt(accelerator) + 0.125 lb/sk Poly-E-Flake (lost circulation additive). Slurry wt: 14.35 ppg,Slurry yield: 1.24 ft3/sk,Slurry volume: 12-1/4" hole + 25% excess.

4-1/2" Production Casing: surf - 13,224' (MD)Lead/Tail Slurry: 4,000' - 13,224'. 635 sks (985 cu ft) 50/50 Poz Premium cement +

20% SSA-1 (additive material) + 3 lb/sk silicalite compacted (additive material) + 0.5%Halad-344 (low fluid loss control) + 0.2% Halad-413 (low fluid loss control) + 0.2% HR-12 (retarder) + 0.2% Super CBL (expander) + 0.2% Suspend HT (suspension agent).Slurry wt: 14 ppg, Slurry yield: 1.55 ft3/sk, Slurry volume: 6-1/8" hole + 15% in openhole section.

*Final cement volumes to be calculated from caliper log with an attempt to be made tocirculate cement to the surface on the intermediate strings and 4,000' on the productionstring. A bond log will be run across the zone of interest and across zones as required bythe authorized officer to insure protection of natural


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DRILLING PROGRAM

6. Auxiliary Equipment

A. Kelly Cock - yes

B. Float at the bit - yes

C. Monitoring equipment on the mud system - visually and/or PVT/Flow Show

D. Full opening safety valve on the rig floor - yes

E. Rotating Head - yes

F. Request for Variance

Drilling surface hole with air:

A variance from 43 CFR 3160 Onshore Oil and Gas Order #2, Section IIIRequirements, subsection E. Special Drilling Operations is requested for thespecific operation of drilling and setting surface casing on the subject well with atruck mounted air rig. The variance from the following requirements of Order #2is requested because surface casing depth for this well is 2,200 feet and highpressures are not expected.

1. Properly lubricated and maintained rotating head - A diverter system in placeof a rotating head. The diverter system forces the air and cutting returns to thereserve pit and is used to drill the surface casing.

2. Blooie line discharge 100 feet from wellbore and securely anchored - theblooie line discharge for this operation will be located 50 to 70 feet from thewellhead. This reduced length is necessary due to the smaller location size tominimize surface disturbance.

3. Automatic igniter or continuous pilot light on blooie line - a diffuser will beused rather than an automatic pilot/igniter. Water is injected into the compressedair and eliminates the need for a pilot light and the need for dust suppressionequipment.

4. Compressors located in the opposite direction from the blooie line aminimum of 100 feet from the wellbore - compressors located within 50 feet onthe opposite side of the wellbore from the blooie line and is equipped with a 1)emergency kill switch on the driller's console, 2) pressure relief valves on thecompressors, 3) spark arrestors on the motors.

5. Kill Fluid to control well - In lieu of having mud products on location to kill thewell for an unanticipated kick, Questarwill kill the well with water contained in a400 bbl tank on site. The 400 bbl water tank will also be storage for surface casingcement


DRILLING PROGRAM


A. Kelly Cock - yes














DRILLING PROGRAM


A. Kelly Cock - yes














DRILLING PROGRAM

6. Deflector on the end of the blooie line - Questarwill mount a deflector unit atthe end of the blooie line for the purpose of changing the direction and velocity ofthe air and cuttings flow into the reserve pit. Changing the velocity and directionof the cuttings and air will preserve the pit liner. In the event the deflector washesout due to erosion caused by the sand blasting effect of the cuttings, there will beno problem because the deflector is mounted on the very end of the blooie. Awashed out deflector will be easily replaced.

7. Flare Pit - there will be no need of a flare pit during the surface hole air drillingoperation because the blooie line is routed directly to the reserve pit. When the bigrig arrives for the main drilling after setting surface casing, a flare box will beinstalled and all flare lines will be routed to the flare box.

G. All other operations and equipment for air/gas drilling shall meet specifications inOnshore Order #2, Section III Requirements, subsection E. Special DrillingOperations and Onshore Order #1.

Surface hole will be drilled with air, air/mist, foam, or mud depending on hole conditions.Intermediate and production holes will be drilled with water based drilling fluidsconsisting primarily of fresh water, bentonite, lignite, caustic, lime, soda ash andpolymers. No chromates will be used. Maximum anticipated mud weight is 13.5 ppg.

No minimum quantity of weight material will be required to be kept on location.

PVT/Flow Show will be used from base of surface casing to TD.

Gas detector will be used from surface casing depth to TD.

7. Testing, logging and coring program

A. Cores - none anticipated

B. DST - none anticipated

C. Logging - Mud logging - 3,000' to TDGR-SP-Induction, Neutron Density, FMI

D. Formation and Completion Interval: Dakota, Mancos, Mesaverde, Wasatchintervals, final determination of completion will be made by analysis of logs.Stimulation - Stimulation will be designed for the particular area of interest as


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DRILLING PROGRAM














DRILLINGPROGRAM

8. Anticipated Abnormal Pressures and Temperatures, Other Potential Hazards

No abnormal temperatures or pressures are anticipated. No H2S has been encountered inor known to exist from previous wells drilled to similar depths in the general area.Maximum anticipated bottom hole pressure equals approximately 9,280 psi. Maximumanticipated bottom hole temperature is 250°


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DRILLINGPROGRAM




DRILLING PROGRAM

10M BOP x 10M Annular

Rotating HeadFlowline

Spacer Spool

o O10M Annular

i I

10M Double Ram

10M Drilling Spool

2" KillLine 3" Choke Line

2" 10M 2" 10M 2" 10M 3" 10M 3" 10MCheck Manual Manual Manual HCR

I I

10M Single Ram

I 1G.L. _ __ __ G.L

Mat Board Mat BoardMatBoard

10M Spacer Spool

5M x 10M Multi-Bowl Head

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SM x 9 5/8" SOW


DRILLING PROGRAM



Spacer Spool

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10M Double Ram

10M Drilling Spool



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10M Single Ram

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Spacer Spool

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10M Drilling Spool



I I

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ONSHORE OIL & GAS OR R NO. IQUESTAR EXPLORATION & PRODUCTION, CO.NBZ 8D-29-8-24

DRILLING PROGRAM

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DRILLING PROGRAM




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DRILLING PROGRAM




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O O

QUESTAR EXPLORATION & PRODUCTION, CO.Request for Exception to Buried Pipeline

ForNBZ 8ML-29-8-24

QEP respectfully requests an exception to burying this pipeline. We understand thestandard Condition of Approval (COA) that may be included in the approved Applicationfor Permit to Drill (APD) is: "As a Best Management Practice (BMP), the pipeline wouldbe buried within the identified construction width of an access corridor that contains theaccess road and pipelines. The construction width for the access corridor would increasefrom30feet,by an additional 20feet,to a total of 50feet.Exceptions to this BMP may begranted where laterally extensive, hard indurated bedrock, such as sandstone, is at orwithin 2 feet of the surface; and, soil types with a poor history of successfulrehabilitation. " QEP will install the pipeline within the access corridor and will avoidcross-country installation when possible. Our reason for requesting a surface line isbased on the following justification:

Class IV VRM

+ This area's designated Visual Resource Management is classified as Class IV. TheClass IV objective is to provide for management activities that require majormodification to the existing character of the landscape. The level of change to thelandscape can be high. The management activities may dominate the view and maybe the major focus of the viewer attention. However, every attempt should be madeto minimize the impact of these activities through careful location, minimaldisturbance, and repetition of the basic visual elements of form, line, color, andtexture.

+ QEP feels that surface pipe will comply with this classification more so than buriedpipe due to the amount of surface disturbance that will be required to bury it. Webelieve surface installation within the access corridor will minimize the disturbanceso that the pipeline does not dominate the view.

Environmental and Safety Concerns

+ Buried pipe will greatly increase surface disturbance and habitat fragmentation.The soil in this area has a poor history of successful rehabilitation. Buried pipewill have an increased corrosion rate and would need to be dug up for repairs orreplacement; the constant surface disturbance will not allow time for successfulreclamation.

+ Increasing surface disturbance will greatly increase noxious and invasive weed

O O


ForNBZ 8ML-29-8-24


Class IV VRM






O O


ForNBZ 8ML-29-8-24


Class IV VRM






BLM - VFO - 2 - 9/4/2008

+ With the increased corrosion rate, buried pipe may have undetectable leaks thatcould go unnoticed for months. Small leaks may turn into large plumes ofunderground hazards because they are not easily monitored and not seen rightaway. An undetected leak also increases the potential for explosive incidents.Once detected, the surface will need to be disturbed, once again, to dig up the lineand replace or repair it.

+ Accidents associated with pipe breaks during construction activities couldincrease substantially as the number of buried lines increases.

+ The additional surface disturbance will increase the risk of disturbingpaleontological sites.

Operational and Mechanical Concerns for Gas Lines

+ Cathodic protection will be required for buried pipe. Cathodic protection requiresanode beds that must be maintained. This will add substantial costs in labor andmaterial. Additional power lines will need to be installed to the anode beds. Theadditional costs for equipment and labor will be approximately $50,000.00persection.

+ Pipeline markers need to be used with buried pipe. This will add costs in laborand material.

+ Every tie in requires a valve. The average distance between valves isapproximately ¼ mile. Valves will have to be placed in "freeze boxes" or "valveboxes". Valve boxes will be considered confined space which increases themanpower needed to repair or replace valves. Every valve box will also requirebright yellow guard rails.

+ Additional equipment required for buried pipe can include blades/dozers,trenchers (cutting or blasting in hard rock), side booms, etc. which increasesinstallation costs.

+ Buried pipe must have fusion bonded epoxy (FBE) coating. FBE pipe will costan additional $2.00per foot compared to bare pipe.

+ This pipeline has the potential for being upgraded/upsized to a larger pipediameter depending on production volumes. If upsizing is required, the pipe willneed to be dug up which will cause additional surface disturbance and will notallow adequate time for successful reclamation.

+ Surface lines are sometimes relocated to accommodate new locations; this is donein an effort to minimize the amount of pipe needed and the amount of surfacedisturbed. If this pipe is buried, this will no longer be an

BLM - VFO - 2 - 9/4/2008












BLM - VFO - 2 - 9/4/2008












O OQUESTAR EXPLORATION & PRODUCTION CO.

NBZ 8D-29-8-241979' FNL 1006' FEL

SENE, SECTION 29, T8S, R24EUINTAH COUNTY, UTAH

LEASE # UTU-77301

ONSHORE ORDER NO. 1

MULTI - POINT SURFACE USE & OPERATIONS PLAN

An onsite inspection was conducted for the NBZ 8D-29-8-24 on August 7, 2007 . Weather conditions wereHot & Sunny at the timeof the onsite. In attendance at the inspection were the following individauls:

Paul Buhler Bureau of Land ManagementBrandon McDonald Bureau of Land ManagementJan Nelson Questar Exploration & Production, Co.

1. Existinq Roads:

The proposed well site is approximately34 miles south of Vernal, Utah.

Refer to Topo Maps A and B for location of access roads within a 2 - mile radius.

There will be no improvements made to existing road.

2. Planned Access Roads:

Please see Questar Exploration & Production company Standard Operating Practices dated October 18,2005, for Mesa Verde formation Wells located in Red Wash, Wonsits Valley, Gypsum Hills, White River,Glen Bench, and Undesignated fields in Townships 07, 08 & 09 South, Ranges 21 to 25 East.

Refer to Topo Map B for the location of the proposed access road.

3. Location of Existinq Wells Within a 1 - Mile Radius:

Please refer to Topo Map C.

4. Location of Existinq & Proposed Facilities:

Please see Questar Exploration & Production company Standard Operating Practices dated October 18,2005, for Mesa Verde formation Wells located in Red Wash, Wonsits Valley, Gypsum Hills, White River,Glen Bench, and Undesignated fields in Townships 07, 08 &09 South, Ranges 21 to 25 East.

Refer to Topo Map D for the location of the proposed pipeline.

It was determined on the onsite by the BLMVFO AO that the facilities will be painted Carlsbad Canyon.

Pipeline willbe 6" or smaller.

5. Location and Type of Water Supply:

Please see Questar Exploration & Production company Standard Operating Practices dated October 18,2005, for Mesa Verde formation Wells located in Red Wash, Wonsits Valley, Gypsum Hills, White River,Glen Bench, and Undesignated fields in Townships 07, 08 & 09 South, Ranges 21 to 25


NBZ 8D-29-8-241979' FNL 1006' FEL


LEASE # UTU-77301

ONSHORE ORDER NO. 1




1. Existinq Roads:

















NBZ 8D-29-8-241979' FNL 1006' FEL


LEASE # UTU-77301

ONSHORE ORDER NO. 1




1. Existinq Roads:
















0 0

6. Source of Construction Materials:


7. Methods of Handlinq Waste Materials:

Please see Questar Exploration &Production company Standard Operating Practices dated October 18,2005, for Mesa Verde formation Wells located in Red Wash, Wonsits Valley, Gypsum Hills, White River,Glen Bench, and Undesignated fields in Townships 07, 08 & 09 South, Ranges 21 to 25 East.

An enhanced evaporation system will be used for evaporating fluids from reserve pit after drilling andcompletion are completed for thiswell. The system will be monitored regularly to ensure that operation isbeing done in a safe and environmentally protective manner. The system will be controlledduring daylighthours by our lease operators and the pump willonly be operated when wind direction and velocity arefavorable to eliminate over - spray on vegetation. The evaporation system is structured on a fifth wheelportable trailerthat runs on diesel fuel only.

8. Ancillary Facilities:


9. Well Site Layout: (See Location Layout Diagram)

The attached Location Layout Diagram describes drill pad cross-sections, cuts and fillsand locations of the mud tanks, reserve pit, flare pit, pipe racks, trailerparking, spoil dirtstockpile(s), and surface material stockpile(s).

Please see the attached diagram to describe rig orientation, parking areas, and access roads.

A pit liner is required. A felt pit liner will be required if bedrock is encountered.

10. Plans for Reclamation of the Surface:


Interim Reclamation

Please see attached Interim Reclamation plan.

Once the well is put onto production, Questar Exploration & Production Company will reclaim as muchof the well pad as possible thatwillallow for operations to continue in a safe and reasonable manner.Reseeding will be done in the spring and fall of each year to allow winter precipitation to aid in the successof

0 0














Interim Reclamation



0 0














Interim Reclamation



O O

Seed Mix:Interim Reclamation:3 lbs. Needle &Threadgrass3 lbs. Fourwing Saltbush

Final Reclamation:Seed Mix# 1 3 lbs. Fourwing Saltbush, 3 lbs. Indian Rice Grass, 1 lb. Needle &Threadgrass

4 lbs. Hycrest Crested Wheat

11. Surface Ownership:

The well pad and access road are located on lands owned by:

Bureau of Land Management170 South 500 EastVernal, Utah 84078

12. Other Information

A Class lil archaeological survey was conducted by Montgomery ArchaeologyConsultants. A copy of this report was submitted directly to the appropriate agencies byMontgomery Archaeology Consultants. Cultural resource clearance was recommendedfor this location.

A Class lilpaleontological survey was conducted by Intermountain Paleo Consulting. A copyof this report was submitted directly to the appropriate agencies by Stephen D. Sandau. The inspectionresulted in the location of exposed Member of the Unita Formation. Therefore, a Paleo monitor will bepresent during construction.

No Drillingor construction willtake place during the Pronghorn season May 15 thru June 20.

There is a Ferruginous Hawk stipulation from March 1st to August 31st. No construction or drilling willcommence during this period unless otherwise determined by a wildlife biologist that the site is inactive.

Berm East side of Location, Maintain berm throughoutthe life of the well.

Install 18" Culvert at proposed access road leaving main road.

Rock & Gravel

O O














Rock & Gravel

O O














Rock & Gravel

O OLessee's or Operator's Representative:

Jan NelsonRed Wash Rep.

Questar Expl. & Prod. Co.11002 E. 17500 So.Vernal, Utah 84078

(435) 781-4331

Certification:

All lease and/or unitoperations will be conducted in such a manner that full complianceis made with all applicable laws, regulations, Onshore Oil & Gas Orders, the approved

plan of operations, and any applicable Notice to Lessees.

Questar Exploration & Production Company will be fully responsible for the actions of theirsubcontractors.

A complete copy of the approved Application for Permit to Drillwill be furnished to thefield representative(s) to ensure compliance and shall be on location during all

construction and drilling operations.

I hereby certify that I, or persons under my direct supervision, have inspected theproposed drill site and access route; that I am familiar with the conditionswhich currently

exist; that the statements made in thisplan are, to the best of my knowledge, true andcorrect; and that the work associated with the operations proposed herein will be

performed by Questar Exploration & Production Company, it's contractors and subcontractorsin conformitywith thisplan and the termsand conditions under which it is approved. Thisstatement is subject to the provisions of 18 U.S.C. 1001 for the filing of a false statement.

,ty3 3L, 9/10/2008Jan Nelson Date

Red Wash




(435) 781-4331

Certification:










Red Wash




(435) 781-4331

Certification:










Red Wash

QUESTAR EXPLR. & PROD.NBZ #8D-29-8-24

LOCATED IN UINTAH COUNTY, UTAHSECTION 29, T8S, R24E, S.L.B.&M.

PHOTO: VIEW FROM CORNER #5 TO LOCATION STAKE CAMERA ANGLE: SOUTHEASTERLY

PHOTO: VIEW FROM BEGINNING OF PROPOSED ACCESS CAMERA ANGLE: SOUTHERLY

N LOCATIONPHOTos 07 09 07 PHOTO85 South 200 East Vernal, Utah 84078 MONTH DAY YEAR

-Since 1964 - 435-789-1017 [email protected] TAKENBY:S.V. DRAWNBY:C.P. REVISED:













QUESTAR EXPLR. & PRO . FICURE #1LOCATIONLAYOUT FOR

NBZ #8D-29-8-24SECTION 29, T8S, R24E, S.L.B.&M.

1979' FNL 1006' FEL Approx.Top ofCut Slope C-4.5'

C- 0. 7 B. 48. J'B. 44.5'

100'

C-5.7'sto. 4+00 '

ESNCT

B. 49.5' Round Corners ifas Needed

SCALE: 1" = 50'DATE: 07-09-07DRAWN BY: L.K.

NOTE:Flore Pit is to be /ocateda min. of 100' from theWell Head. It mt3

PIPE TUBi ! I

PIPE RACKS-5.7'

C C-2 j' C-4.0'E/. J5.5' 30 50 ri. 45.9' E/. 4Z8'

C-6.7 150' Sto. 2+005 TOILET ;F- J.8

--- 0 - ç_; vm E/. 40.0'-- -- - E/. 45.0

LIGHT PLANT

BOILER

Pt HOUSECO SSOR

B R

---- TRASH

PROPANE Jiad*50- E - STORAGE

AE/. 415'

Sta. 0+00

-4. J' eroposed Access oe A'" E/. 39.5 Road Fill Slope E/. J7.5'

NO TES:Elev. Ungraded Ground At Loc. Stake = 514 8'

5' °' UINTAH ENGINEERING oc LAND SURVEYINGEIN/SHED GRADE ELEV AT LOC. STAKE = 14 .o 85 So. 200 East * Vernal, Utah 84078 * (435)




C- 0. 7 B. 48. J'B. 44.5'

100'

C-5.7'sto. 4+00 '

ESNCT




PIPE TUBi ! I

PIPE RACKS-5.7'

C C-2 j' C-4.0'E/. J5.5' 30 50 ri. 45.9' E/. 4Z8'

C-6.7 150' Sto. 2+005 TOILET ;F- J.8

--- 0 - ç_; vm E/. 40.0'-- -- - E/. 45.0

LIGHT PLANT

BOILER

Pt HOUSECO SSOR

B R

---- TRASH


A

E/. 415'

Sta. 0+00







C- 0. 7 B. 48. J'B. 44.5'

100'

C-5.7'sto. 4+00 '

ESNCT




PIPE TUBi ! I

PIPE RACKS-5.7'

C C-2 j' C-4.0'E/. J5.5' 30 50 ri. 45.9' E/. 4Z8'

C-6.7 150' Sto. 2+005 TOILET ;F- J.8

--- 0 - ç_; vm E/. 40.0'-- -- - E/. 45.0

LIGHT PLANT

BOILER

Pt HOUSECO SSOR

B R

---- TRASH


A

E/. 415'

Sta. 0+00




/FICURE #2TYPICAL CROSS SECTIONS FOR

X-Sectionscale NBZ #8D-29-·8-24

SECTION 29, T8S, R24E, S.L.B.&M.1" = 100' 1979' FNL 1006' FEL

DATE: 07-09-07DRAWN BY: L.K.

100' 150'

PreconstructionGrade CU T

10'-80' 50' 150'

l.0CATION STAKE gg ggt

80' 50' 150'10'

Slop e = 1 1/2: 1

SM. 0+50- CUT

140' 150

Finished Grade

SM. 0+00

APPROX/MATE ACREAGES* NO TE:WELLS/TE D/STURBAHCE = ± J.1J9 ACRES E/LL QUANT/TYINCLUDES

NOTE: ACCESS ROAD DISTURBANCE = ± 0.JO7 ACRES 5% FOR COMPACT/ONTopsoil should not be P/PELINE O/STURBAHCE = ± 0.25J ACRESStripped Below FinishedGrade on Substructure Area. TOTAL = ± J.699 ACRES

APPROXIMATE YARDAGES EXCESS MATERIAL = 5,290 Cu. Yds.Topsoil & Pit Backfill = 5,290 Cu. Yds.

CUT (1/2 Pit Vol.)(6") Topsoil Stripping = 2,320 Cu. Yds.

EXCESS UNBALANCE = 0 Cu. Yds.Remaining Location = 8,980 Cu. Yds. (After Interim Rehabilitation)

TOTAL CUT = 11,300 CU.YDS.UINTAH ENCINEERING & LAND SURVEYING

FILL = 6,010 CU.YDS. 85 So. 200 Etr,st * Vernal, Utah 84078 * (435)





100' 150'


10'-80' 50' 150'


80' 50' 150'10'

Slop e = 1 1/2: 1

SM. 0+50- CUT

140' 150

Finished Grade

SM. 0+00












100' 150'


10'-80' 50' 150'


80' 50' 150'10'

Slop e = 1 1/2: 1

SM. 0+50- CUT

140' 150

Finished Grade

SM. 0+00








/FIGURE #3INTERIM RECLAMATION PLAN FOR

NBZ #8D-29-8-24 imSECTION 29, TSS, R24E, S.L.B.&M. E

1979' FNL 1006' FEL


GAS UNIT y

Production Tanks

o WELLHEAD

AccessRoad

INTERIM RECLAMATION UINTAH ENGINEERING & I2AND SURVEYING85 So. 200 East * Vernal, Utah 84078 * (435)



1979' FNL 1006' FEL


GAS UNIT y

Production Tanks

o WELLHEAD

AccessRoad




1979' FNL 1006' FEL


GAS UNIT y

Production Tanks

o WELLHEAD

AccessRoad


PROPOSED LOCATION:NBZ #8D-29-8-24

C

LEGEND: QUESTAR EXPLR. & PROD.O PROPOSED LOCATION N NBZ #8D-29-8-24

SECTION 29, TSS, R24E, S.L.B.&M.1979' FNL 1006' FEL

Uintah Engineering & Land Surveying¯Ì¯Õ¯P

OGR A PH I c 07 0 0785 South 2OO East VernaL, IJtah 84078 M A P ONTH DAY YEAR(435) 789-1017 * FAX (435) 789-1813SCALE:1:100,000 DRAWNBY:C.P. REVISED:

PROPOSED LOCATION:NBZ #8D-29-8-24

C

LEGEND: QUESTAR EXPLR. & PROD.O PROPOSED LOCATION N NBZ #8D-29-8-24

SECTION 29, TSS, R24E, S.L.B.&M.1979' FNL 1006' FEL

Uintah Engineering & Land Surveying¯Ì¯Õ¯P

OGR A PH I c 07 0 0785 South 2OO East VernaL, IJtah 84078 M A P ONTH DAY YEAR(435) 789-1017 * FAX (435) 789-1813SCALE:1:100,000 DRAWNBY:C.P. REVISED:

" M 51

VERNAL 3 .6 MI. +/-

096

PROPOSED ACCEÐS FOR 77301

E #7MI. 9 0.4 MI. +/-

#7ML-29

2 28

P El LC I N:

20°

NBZ #8D-29-8-24

5/8/

00 BM 6350

LEGEND: QUESTAR EXPLR. & PROD.EXISTING ROAD N NBZ #8D-29-8-24

----------- PROPOSED ACCESS ROAD SECTION 29, T8S, R24E, S.L.B.&M.1979' FNL 1006' FEL

- Uintah Engineering & Land Surveying TOPOGR A PH I C 07 0 0785 South 200 East VernnI, IJtah 84078 M A P MONT DAY YEAR

(435) 789-1017 * FAX (435) 789-1813SCALE:1" = 2000 DRAWNBY:C.P. REVISED:

" M 51

VERNAL 3 .6 MI. +/-

096

PROPOSED ACCEÐS FOR 77301

E #7MI. 9 0.4 MI. +/-

#7ML-29

2 28

P El LC I N:

20°

NBZ #8D-29-8-24

5/8/

00 BM 6350

LEGEND: QUESTAR EXPLR. & PROD.EXISTING ROAD N NBZ #8D-29-8-24

----------- PROPOSED ACCESS ROAD SECTION 29, T8S, R24E, S.L.B.&M.1979' FNL 1006' FEL

- Uintah Engineering & Land Surveying TOPOGR A PH I C 07 0 0785 South 200 East VernnI, IJtah 84078 M A P MONT DAY YEAR

(435) 789-1017 * FAX (435) 789-1813SCALE:1" = 2000 DRAWNBY:C.P. REVISED:

"" TS

SM 5119

00

81030 2 28

CW#1-28

PROPOSED LOCATI N

5/8/52/7

00 S 50

LEGEND: QUESTAR EXPLR. & PROD.pf DISPOSAL WELLS WATER WELLS N NBZ #8D-29-8-24O PRODUCING WELLS ABANDONED WELLS SECTION 29, T8S, R24E, S.L.B.&M.

SHUT IN WELLS -@- TEMPORARILY ABANDONED 1979' FNL 1006' FEL

Uintah Engineering & Land Surveying TOPOGR A PH I c 07 09 0785 South 2OO East Vernal, Utah 84078 I Á Ÿ ONTH DAY YEAR

(435) 789-1017 * FAX (435) 789-1813SCALE:1" = 2000' DRAWNBY:C.P. VISED:00-00-00

"" TS

SM 5119

00

81030 2 28

CW#1-28

PROPOSED LOCATI N

5/8/52/7

00 S 50





"" TS

SM 5119

00

81030 2 28

CW#1-28

PROPOSED LOCATI N

5/8/52/7

00 S 50





TSS R24E

U77301

7ML-29

PROPOSED LOCATION: 5/88NBZ #8D-29 -24

1

00

APPROXIMATE TOTAL PIPELINE DISTANCE = 368' +/-

LEGEND: QUESTAR EXPLR. & PROD.PROPOSED ACCESS ROAD N NBZ #8D-29-8-24

----------- PROPOSED PIPELINE SECTION 29 TSS R24E S.L.B.&M.PROPOSED PIPELINE * *

TSS R24E

U77301

7ML-29


1

00




TSS R24E

U77301

7ML-29


1

00




IR3RKSHEETAPPLICATION FOR PERMIT TO DRILL

APD RECEIVED: 09/15/2008 API NO. ASSIGNED: 43-047-40361

WELL NAME: NBZ 8D-29-8-24

OPERATOR: QUESTAR EXPLORATION & ( N5085 ) PHONE NUMBER: 435-781-4331

CONTACT: JAN NELSON

PROPOSED LOCATION: INSPECT LOCATN BY: / /SENE 29 080S 240E . .

Tech Review Initials DateSURFACE: 1979 FNL 1006 FEL

BOTTOM: 1979 FNL 1006 FEL Engineering

COUNTY: UINTAH GeologyLATITUDE: 40.09539 LONGITUDE: -109.2315

UTM SURF EASTINGS:650756 NORTHINGS: 4439633 Surface

FIELD NAME: BIG VALLEY ( 791 )

LEASE TYPE: 1 - Federal

LEASE NUMBER: UTU-77301 PROPOSED FORMATION: DKTA

SURFACE OWNER: 1 - Federal COALBED METHANE WELL? NO

RECEIVED AND/OR REVIEWED: LOCATION AND SITING:

,r-Plat R649-2-3.

' Bond: Fed[1] Ind[] Sta[] Fee[]Unit: BIG VALLEY

No. ESB000024 )Potash (Y/N) R649-3-2. General

Oil Shale 190-5 (B) or 190-3 or 190-13 Siting:460 From Qtr/Qtr & 920' Between Wells

"Water Permit 4/ R649-3-3. Exception

No. 49-2153 )Drilling Unit

ft RDCC Review (Y/N)Board Cause No:

(Date: )Eff Date:

ALA Fee Surf Agreement (Y/N) Siting:

<gg Intent to Commingle (Y/N) .

I R649-3-11. Directional Drill

COMMENTS:

STIPULATIONS: AÑ





CONTACT: JAN NELSON











,r-Plat R649-2-3.




"Water Permit 4/R649-3-3. Exception



(Date: )Eff Date:




COMMENTS:

STIPULATIONS: AÑ





CONTACT: JAN NELSON











,r-Plat R649-2-3.




"Water Permit 4/R649-3-3. Exception



(Date: )Eff Date:




COMMENTS:

STIPULATIONS: AÑ

O OAPI Number: 4304740361

4304734180 Well Name: NBZ 8D-29-8-24FEDERAL 33-20

Township 08.0 S Range 24.0 E Section 29

Meridian: SLBMOperator: QUESTAR EXPLORATION & PRODUCTION CO

19 20 21 Map Prepared:Map Produced by Diana Mason

Units Wells Query Events4304737586

COY 14ML-21-8-24STATUS

<allothervalues>

ACTIVE

4304737587 EXPLORATORY GIS_STAT_TYPE

COY 15ML-21-8-24GAS STORAGE

<NuP>

NFPPOIL APD

NF SECONDARY DRL

PP GASGS

PP GEOTHERML

PPOIL X t^

SECONDARY NEW

TERMINATED OPS

Fields PA

B3 ACRVE

438

D- 9-

o om Hole Lodon

4304731794COYOTE WASH 1-28 Cache

Box Elder Rici Location Map3 40 eber

1 -29 -2

. orDa mLak

Summ

Tooelesate Duchesne

Utah Uintag4304738498

SAND RIDGE 1-28 Carbon

Emery Grand

7 36 sevier

4 4 351 -2 8

N 1 -3 -8-

Beaver PiuteGarfieldWayne

30 4San Juan

2 2 Washington Kane

5 4

-2

-2

1,300 650 0 1,300 Feet








<allothervalues>

ACTIVE



<NuP>

NFPPOILAPD

NF SECONDARY DRL

PP GASGS

PP GEOTHERML

PPOIL X t^

SECONDARY NEW

TERMINATED OPS

Fields PA

B3 ACRVE

438

D- 9-

o om Hole Lodon



1 -29 -2

. orDa mLak

Summ

Tooelesate Duchesne



Emery Grand

7 36 sevier

4 4 351 -2 8

N 1 -3 -8-


30 4San Juan

2 2 Washington Kane

5 4

-2

-2

1,300 650 0 1,300 Feet








<allothervalues>

ACTIVE



<NuP>

NFPPOILAPD

NF SECONDARY DRL

PP GASGS

PP GEOTHERML

PPOIL X t^

SECONDARY NEW

TERMINATED OPS

Fields PA

B3 ACRVE

438

D- 9-

o om Hole Lodon



1 -29 -2

. orDa mLak

Summ

Tooelesate Duchesne



Emery Grand

7 36 sevier

4 4 351 -2 8

N 1 -3 -8-


30 4San Juan

2 2 Washington Kane

5 4

-2

-2

1,300 650 0 1,300 Feet

pÏ2Š2008) ÒianaMason - Big alley d Page

|

United States Department of the InteriorBUREAU OF LAND MANAGEMENT

Utah State OfficeP.O. Box 45155

Salt Lake City, Utah 84145-0155

IN REPLY REFER TO:3160(UT-922)

September 23, 2008

Memorandum

To: Assistant District Manager Minerals, Vernal District

From: Michael Coulthard, Petroleum Engineer

Subject: 2008 Plan of Development Big Valley Unit, Uintah County,Utah.

Pursuant to email between Diana Whitney, Division of Oil, Gas and Mining, and MickeyCoulthard, Utah State Office, Bureau of Land Management, the following wells areplanned for calendar year 2008 within the Big Valley, Uintah County, Utah.

API# WELLNAME LOCATION

(Proposed PZ Dakota)

43-047-40360 NBZ 10D-29-8-24 Sec 29 TO8S R24E 2109 FSL 1927 FEL43-047-40361 NBZ 08D-29-8-24 Sec 29 TO8S R24E 1979 FNL 1006 FEL43-047-40362 NBZ 14D-29-8-24 Sec 29 TO8S R24E 0469 FSL 2170 FWL43-047-40363 NBZ 16D-29-8-24 Sec 29 TO8S R24E 0615 FSL 0780 FEL43-047-40364 NBZ 12D-29-8-24 Sec 29 TO8S R24E 2014 FSL 0463 FWL43-047-40365 NBZ 13D-30-8-24 Sec 30 TO8S R24E 0504 FSL 0772 FWL

This office has no objection to permitting the wells at this time.

Is/ Michael L. Coulthard

bcc: File - Big Valley UnitDivision of Oil Gas and MiningCentral FilesAgr. Sec. ChronFluid Chron


|





September 23, 2008

Memorandum












|





September 23, 2008

Memorandum











stateoŸUtahDEPARTMENT OF NATURAL RESOURCES

MICHAEL R. STYLERExecutiveDirector

JON M. HUNTSMAN, JR.ÜÎVISÍOn of Oil, Gas and Mining

Governor JOHN R. BAZADivision Director

GARY R. HERBERTLieutenant Governor

September 25, 2008

QuestarExploration & Production Company11002 E 17500 SVernal, UT 84078

Re: NBZ 8D-29-8-24 Well, 1979' FNL, 1006' FEL, SE NE, Sec. 29, T. 8 South, R. 24 East,Uintah County, Utah

Gentlemen:

Pursuant to the provisions and requirements of Utah Code Ann.§ 40-6-1 et seq., UtahAdministrative Code R649-3-1 et seq., and the attached Conditions of Approval, approval to drillthe referenced well is granted.

Appropriate information has been submitted to DOGM and administrative approval ofthe requested exception location is hereby granted.

This approval shall expire one year from the above date unless substantial and continuousoperation is underway, or a request for extension is made prior to the expiration date. The APIidentification number assigned to this well is 43-047-40361.

Sincerely,

Gil HuntAssociate Director

pabEnclosures

cc: Uintah County AssessorBureau of Land Management, Vernal Office

UTAH

DNR

1594 West North Temple, Suite 1210, PO Box 145801, Salt Lake City, UT 84114-5801telephone (801) 538-5340 • facsimile (801) 359-3940 • TTY (801) 538-7458 • wwwogm.utah.gOV OIL, GAS &






September 25, 2008



Gentlemen:




Sincerely,


pabEnclosures


UTAH

DNR







September 25, 2008



Gentlemen:




Sincerely,


pabEnclosures


UTAH

DNR


O OOperator: QuestarExploration & Production CompanyWell Name & Number NBZ 8D-29-8-24

API Number: 43-047-40361Lease: UTU-77301

Location: SE NE Sec. 3 T. 8 South R. 24 East

Conditions of Approval1. General

Compliance with the requirements of Utah Admin. R. 649-1 et seq., the Oil and GasConservation General Rules, and the applicable terms and provisions of the approvedApplication for permit to drill.

2. Notification RequirementsNotify the division within 24 hours of spudding the well.

• Contact Carol Daniels at (801) 538-5284.

Notify the Division prior to commencing operations to plug and abandon the well.• Contact Dustin Doucet at (801) 538-5281 (801) 733-0983 home

3. Reporting RequirementsAll required reports, forms and submittals will be promptly filed with the Division,including but not limited to the Entity Action Form (Form 6), Report of WaterEncountered During Drilling (Form 7), Weekly Progress Reports for drilling andcompletion operations, and Sundry Notices and Reports on Wells requesting approval ofchange of plans or other operational actions.

4. State approval of this well does not supersede the required federal approval, which must beobtained prior to drilling.

5. This proposed well is located in an area for which drilling units (well spacing patterns) havenot been established through an order of the Board of Oil, Gas and Mining (the "Board").In order to avoid the possibility of waste or injury to correlative rights, the operator isrequested, once the well has been drilled, completed, and has produced, to analyzegeological and engineering data generated therefrom, as well as any similar data fromsurrounding areas if available. As soon as is practicable after completion of its analysis,and if the analysis suggests an area larger than the quarter-quarter section upon which thewell is located is being drained, the operator is requested to seek an appropriate orderfrom the Board establishing drilling and spacing units in conformance with such analysisby filing a Request for Agency Action with the

O O

Operator: QuestarExploration & Production CompanyWell Name & Number NBZ 8D-29-8-24











O O

Operator: QuestarExploration & Production CompanyWell Name & Number NBZ 8D-29-8-24











API Well No: 43047403610000

STATE OF UTAHDEPARTMENT OF NATURAL RESOURCES

DIVISION OF OIL, GAS, AND MINING

FORM 9

5.LEASE DESIGNATION AND SERIAL NUMBER: UTU-77301

SUNDRY NOTICES AND REPORTS ON WELLSDo not use this form for proposals to drill new wells, significantly deepen existing wells below currentbottom-hole depth, reenter plugged wells, or to drill horizontal laterals. Use APPLICATION FOR PERMIT TODRILL form for such proposals.

6. IF INDIAN, ALLOTTEE OR TRIBE NAME:

7.UNIT or CA AGREEMENT NAME: BIG VALLEY

1. TYPE OF WELL Gas Well

8. WELL NAME and NUMBER: NBZ 8D-29-8-24

2. NAME OF OPERATOR: QUESTAR EXPLORATION & PRODUCTION CO

9. API NUMBER: 43047403610000

3. ADDRESS OF OPERATOR: 11002 East 17500 South , Vernal, UT, 84078

9. FIELD and POOL or WILDCAT: BIG VALLEY

4. LOCATION OF WELL FOOTAGES AT SURFACE: 1979 FNL 1006 FEL QTR/QTR, SECTION, TOWNSHIP, RANGE, MERIDIAN: Qtr/Qtr: SENE Section: 29 Township: 08.0S Range: 24.0E Meridian: S

COUNTY: UINTAH

STATE: UTAH

11.

CHECK APPROPRIATE BOXES TO INDICATE NATURE OF NOTICE, REPORT, OR OTHER DATA

TYPE OF SUBMISSION TYPE OF ACTION

NOTICE OF INTENTApproximate date work will start:

9/25/2010

SUBSEQUENT REPORTDate of Work Completion:

SPUD REPORTDate of Spud:

DRILLING REPORTReport Date:

ACIDIZE ALTER CASING CASING REPAIR

CHANGE TO PREVIOUS PLANS CHANGE TUBING CHANGE WELL NAME

CHANGE WELL STATUS COMMINGLE PRODUCING FORMATIONS CONVERT WELL TYPE

DEEPEN FRACTURE TREAT NEW CONSTRUCTION

OPERATOR CHANGE PLUG AND ABANDON PLUG BACK

PRODUCTION START OR RESUME RECLAMATION OF WELL SITE RECOMPLETE DIFFERENT FORMATION

REPERFORATE CURRENT FORMATION SIDETRACK TO REPAIR WELL TEMPORARY ABANDON

TUBING REPAIR VENT OR FLARE WATER DISPOSAL

WATER SHUTOFF SI TA STATUS EXTENSION APD EXTENSION

WILDCAT WELL DETERMINATION OTHER OTHER:

12. DESCRIBE PROPOSED OR COMPLETED OPERATIONS. Clearly show all pertinent details including dates, depths, volumes, etc.

Questar Exploration and Production Company hereby requests one yearextension for the APD on the above captioned well.

NAME (PLEASE PRINT) Jan Nelson

TITLE Permit Agent

SIGNATURE N/A

DATE 9/23/2009

PHONE NUMBER:435 781-4362 Ext

PHONE NUMBER435 781-4331

September 23, 2009

September 30, 2009

iPI Well No: 43047403610000

FORM 9STATE OF UTAH

DEPARTMENT OF NATURAL RESOURCESDIVISION OF OIL, GAS, AND MINING 5.LEAS7E DESIGNATION AND SERIAL NUMBER:

SUNDRY NOTICES AND REPORTS ON WELLS 6. IF INDIAN, ALLOTTEE OR TRIBE NAME:

Do not use this form for proposals to drill new wells, significantly deepen existing wells below currentbottom-hole depth, reenter plugged wells, or to drill horizontal laterals. Use APPLICATION FOR PERMIT TO 7.UNIT or CA AGREEMENT NAME:

DRILL form for such proposals. BIG VALLEY

1. TYPE OF WELL 8. WELL NAME and NUMBER:Gas Well NBZ 8D-29-8-24

2.NAMEOFOPERATOR: 9.APINUMBER:QUESTAR EXPLORATION & PRODUCTION CO 43047403610000

3. ADDRESS OF OPERATOR: PHONE NUMBER: 9. FIELD and POOL or WILDCAT:11002 East 17500 South ,Vernal,UT,84078 435 781-4362 Ext BIG VALLEY

4.LOCATIONOFWELL COUNTY:FOOTAGES AT SURFACE: UINTAH

1979 FNL 1006 FELQTR/QTR, SECTION, TOWNSHIP, RANGE, MERIDIAN: STATE:

Qtr/Qtr: SENE Section: 29 Township: 08.05 Range: 24.0E Meridian: S UTAH

11.CHECK APPROPRIATE BOXES TO INDICATE NATURE OF NOTICE, REPORT, OR OTHER DATA



/ NOTICE OF INTENTApproximate date work will start: CHANGE TO PREVIOUS PLANS CHANGE TUBING CHANGE WELL NAME

9/25/2010CHANGE WELL STATUS COMMINGLE PRODUCING FORMATIONS CONVERT WELL TYPE

SUBSEQUENT REPORT DEEPEN FRACTURE TREAT NEW CONSTRUCTIONDate of Work Completion:



O SPUD REPORTDate of Spud: REPERFORATE CURRENT FORMATION SIDETRACK TO REPAIR WELL TEMPORARY ABANDON


DRILLING REPORT WATER SHUTOFF SI TA STATUS EXTENSION APD EXTENSIONReport Date:


12. DESCRIBE PROPOSED OR CC MPLETED OPERATIONS. Clearly show all pertinent details including dates, depths, volumes, etc.

Questar Exploration and Production Company hereby requests one yearextension for the APD on the above captioned well. Approved by the

Utah Division ofOil, Gas and Mining

Date: September 30, 2009

By:

NAME (PLEASE PRINT) PHONE NUMBER TITLEJan Nelson 435 781-4331 Permit Agent

SIGNATURE DATEN/A 9/23/2009

RECEIVED September 23,

iPI Well No: 43047403610000

FORM 9STATE OF UTAH



























By:




iPI Well No: 43047403610000

FORM 9STATE OF UTAH



























By:




The Utah Division of Oil, Gas, and Mining

- State of Utah- Department of Natural Resources

Electronic Permitting System - Sundry Notices

Request for Permit Extension Validation Well Number 43047403610000

API: 43047403610000Well Name: NBZ 8D-29-8-24

Location: 1979 FNL 1006 FEL QTR SENE SEC 29 TWNP 080S RNG 240E MER SCompany Permit Issued to: QUESTAR EXPLORATION & PRODUCTION CO

Date Original Permit Issued: 9/25/2008

The undersigned as owner with legal rights to drill on the property as permitted above, hereby verifies thatthe information as submitted in the previously approved application to drill, remains valid and does notrequire revision. Following is a checklist of some items related to the application, which should be verified.

If located on private land, has the ownership changed, if so, has the surface agreement beenupdated? Yes No

Have any wells been drilled in the vicinity of the proposed well which would affect the spacing orsiting requirements for this location? Yes No

Has there been any unit or other agreements put in place that could affect the permitting or operationof this proposed well? Yes No

Have there been any changes to the access route including ownership, or rightof- way, which couldaffect the proposed location? Yes No

Has the approved source of water for drilling changed? Yes No

Have there been any physical changes to the surface location or access route which will require achange in plans from what was discussed at the onsite evaluation? Yes No

Is bonding still in place, which covers this proposed well? Yes No

Signature: Jan Nelson Date: 9/23/2009

Title: Permit Agent Representing: QUESTAR EXPLORATION & PRODUCTION CO

September 23, 2009

September 30, 2009

UTAH

[gg The Utah Division of Oil, Gas, and Mining- State of Utah- Department of Natural ResourcesElectronic Permitting System - Sundry Notices

OTI GAS & MINTNG






• If located on private land, has the ownership changed, if so, has the surface agreement beenupdated? I Yes I ) No

• Have any wells been drilled in the vicinity of the proposed well which would affect the spacing orsiting requirements for this location? I i Yes i i No

• Has there been any unit or other agreements put in place that could affect the permitting or operationof this proposed well?

_

I Yes i i No

•Have there been any changes to_the access route including ownership, or rightof- way, which couldaffect the proposed location? I:_ I Yes I:BI No

• Has the approved source of water for drilling changed? I Yes I:¾) No

• Have there been any physical changes to the surface location or access route which will require achange in plans from what was discussed at the onsite evaluation? I i Yes i No

Approved by the•Is bonding still in place, which covers this proposed well? I i Yes .

I No Utah Division ofOil, Gas and Mining

Signature: Jan Nelson Date: 9/23/2009Title: Permit Agent Representing: QUESTAR EXPLORATION & PRODUCTIOpel;e: September 30, 2009

By:


UTAH

[gg The Utah Division of Oil, Gas, and Mining- State of Utah- Department of Natural Resources

Electronic Permitting System - Sundry NoticesOTI GAS & MINTNG









_

I Yes i i No







By:


UTAH











_

I Yes i i No







By:


Division of Oil, Gas and Mining ROUTINGOPERATOR CHANGE WORKSHEET (for state use only) CDW

Change of Operator (Well Sold) X - Operator Name ChangeThe operator of the well(s) listed below has changed, effective: (,/14/2010

FROM: (oldOperator): TO: ( New Operator):N5085-QuestarExploration and Production Company N3700-QEP Energy Company

1050 17th St, Suite 500 1050 17th St, Suite 500Denver, CO 80265 Denver, CO 80265

Phone: 1 (303) 308-3048 Phone: 1 (303) 308-3048

CA No. Unit: BIG VALLEYWELL NAME SEC TWN RNG API NO ENTITY LEASE TYPE WELL WELL

NO TYPE STATUSSEE ATTACHED

OPERATOR CHANGES DOCUMENTATIONEnter date after each listed item is completed1. (R649-8-10) Sundry or legal documentation was received from the FORMER operator on: 6/28/20102. (R649-8-10) Sundry or legal documentation was received from the NEW operator on: 6/28/20103. The new company was checked on the Department of Commerce, Division of Corporations Database on: 6/24/20104a. Is the new operator registered in the State of Utah: Business Number: 764611-01435a. (R649-9-2)Waste Management Plan has been received on: Requested5b. Inspections of LA PA state/fee well sites complete on: n/a5c. Reports current for Production/Disposition & Sundries on: ok6. Federal and Indian Lease Wells: The BLM and or the BIA has approved the merger, name change,

or operator change for all wells listed on Federal or Indian leases on: BLM 8/16/2010 BIA not yet7. Federal and Indian Units:

The BLM or BIA has approved the successor of unit operator for wells listed on: 8/16/20108. Federal and Indian Communization Agreements ("CA"):

The BLM or BIA has approved the operator for all wells listed within a CA on: N/A9. Underground Injection Control ("UIC") Division has approved UIC Form 5 Transfer of Authority to

Inject, for the enhanced/secondary recovery unit/project for the water disposal well(s) listed on: 6/29/2010DATA ENTRY:1. Changes entered in the Oil and Gas Database on: 6/30/20102. Changes have been entered on the Monthly Operator Change Spread Sheet on: 6/30/20103. Bond information entered in RBDMS on: 6/30/20104. Fee/State wells attached to bond in RBDMS on: 6/30/20105. Injection Projects to new operator in RBDMS on: 6/30/20106. Receipt of Acceptance of Drilling Procedures for APD/New on: n/aBOND VERIFICATION:1. Federal well(s) covered by Bond Number: ESBOOOO242. Indian well(s) covered by Bond Number: 9650106933a. (R649-3-1) The NEW operator of any state/fee well(s) listed covered by Bond Number 9650106953b. The FORMER operator has requested a release of liability from their bond on: n/aLEASE INTEREST OWNER NOTIFICATION:4. (R649-2-10) The NEW operator of the fee wells has been contacted and informed by a letter from the Division

of their responsibility to notify all interest owners of this change on: n/aCOMMENTS:

QEP Energy (Big Valley) FORM A.xls





Phone: 1 (303) 308-3048 Phone: 1 (303) 308-3048














Phone: 1 (303) 308-3048 Phone: 1 (303) 308-3048










STATE OF UTAH FORM 9DEPARTMENT OF NATURAL RESOURCES

DIVISION OF OIL, GAS AND MINING 5 LEASEDESIGNATIONANDSERIALNUMBER

See attachedSUNDRY NOTICES AND REPORTS ON WELLS I NDIA AcLLO EEORTRIBENAME:

7 UNIT or CA AGREEMENTNAME:Do not use thisform for proposals to drillnew wells,significantlydeepen existing wells below current bottom-hole depth, reenter plugged wells, of t° See attacheddrill norizontallaterals. Use APPLICATIONFOR PERMIT TO DRILLform for such proposals.1 TYPE OF WELL

8. WELLNAMEand NUMBER:OfL WELL GAS WELL O OTHERSee attached

2 NAMEÓF OPERATOR:9. API NUMBER:Questar Exploration and Production Cornpany $$Ñ Attached

3. ADDRESS OF OPERATOR: PHONE NUMBER: 10. FIELDANDPOOL, OR WILDCAT:1050 17th Street, Suite 500 Denver o g, CO z, 80265 (303) 672-6900 See attached4 LOCATION OF WELL

FOOTAGESAT SURFACE: See attached couuTY: AttachedQTR/QTR. SECTION, TOWNSHIP, RANGE, MERIDIAN: STATE:

UTAH

n CHECK APPROPRIATE BOXES TO INDICATENATUREOF NOTICE, REPORT, OR OTHER DATATYPE OF SUBMISSION TYPE OF ACTION

ACIDŒE DEEPEN REPERFORATECURRENT FORMATIONNOTICEOF INTENT(Submit in Duplicate) ALTERCASING FRACTURETREAT SIDETRACKTO REPAIR WELL

Approximate date work willstart: CASING REPAIR NEW CONSTRUCTION TEMPORARILYABANDON

6/14/2010 CHANGETO PREVIOUS PlANS OPERATOR CHANGE TUBINGREPAIR

O CHANGE TUBING PLUGAND ABANDON VENTOR FLARESUBSEQUENT REPORT CHANGE WELL NAME PLUG BACK WATER DISPOSAL(Submit Original Form Only)

CHANGE WELLSTATUS PRODUCTION{START/RESUME) WATERSHUT-OFFDate of wait completion:COMM1NGLEPRODUCING FORMATIONS RECLAMATIONOF WELLSITE OTHER: Operator Name

O CONVERTWELLTYPE RECOMPLETE - DIFFERENTFORMATION Change12 DESCRIBE PROPOSED OR COMPLETED OPERATIONS. Clearly show all pedinent details including dates, depths, volumes, etc.

Effective June 14, 2010 Questar Exploration and Production Company changed its name to QEP Energy Company. This namechange involves only an internal corporate name change and no thirdparty change of operator is involved. The sameemployees will continue to be responsible for operations of the properties described on the attached list. Alloperations willcontinue to be covered by bond numbers:Federal Bond Number: 965002976 (BLMReference No. ESBOOOO24)Utah State Bond Number: 965666683Fee Land Bond Number:BIA Bond Number: 79944& QGŠ~0/O

(o 3The attached document is an all inclusive list of the wells operated by Questar Exploration and Production Company. As ofJune 14, 2010 QEP Energy Company assumes all rights, duties and obligations as operator of the properties as described onthe list

NAME(PLEASE P Morgan Anderson Regulatory AffairsAnalyst

SIGNATURg DATE 6/23/2010

(This space for State use only)

RECElVED APPROVEDÁ/g/2JUN2 8 2010

(5/2000)

DIV,OFOIL,GAS&MININËeeInstructions on Reverse Side)

ÜÎVÎSÎOHOf Oil,OasandMining'EarleneRussell.Ennineerina









UTAH














(5/2000)











UTAH














(5/2000)



Questar Exploration Production Company (N5085) to QEP Energy Company (N3700)BIG VALLEY

eñectiveJune 14,2010

well name sec twp rng api entity mineral type stat Clease

RWS 3ML-9-9-24 09 090S 240E 4304735483 15190 Federal GW SRTVS10h4L-6-9-24 06 090S 240E 4304735653 17644 Federed (in? PCWD 4ML-32-8-24 32 080S 240E 4304735684 17644 Federal GW SNBZ 4D-30-8-24 30 080S 240E 4304737229 16630 Federal GW OPS CNBZ 6ML-30-8-24 30 080S 240E 4304737230 16810 Federal GW OPS CFEBZ8AIL-30-8-24 30 080S 240E 4304737231 17644 Federal (39V PNBZ 10ML-30-8-24 30 080S 240E 4304737232 16695 ÈederalGW OPS Cf(BZ 1213-30-8-24 30 080S 240E 4304737233 16631 Federal (IVV CIPS CFEBZ14hdL-30-8-24 30 080S 240E 4304737234 16696 Federal (ivV C)PS CNBZ 6D-31-8-24 31 080S 240E 4304737235 16611 Federal GW OPS CNBZ 4D-31-8-24 31 080S 240E 4304737236 16576 Federal GW OPS CNBZ 13ML-29-8-24 29 080S 240E 4304737237 17644 Federal GW PFEBZ813-31-8-24 31 080S 240E 4304737238 17644 Federal GNV PNBZ 2ML-31-8-24 31 080S 240E 4304737239 17098 Federal GW OPS CNBZ 11D-29-8-24 29 080S 240E 4304737240 16612 Federal GW OPS CNBZ 5D-29-8-24 29 080S 240E 4304737241 16632 Federal GW OPS CNBZ 9D-29-8-24 29 080S 240E 4304737244 15677 Federal GW OPS CNBZ 15ML-29-8-24 29 080S 240E 4304737246 16697 Federal GW OPS CCWD 3D-32-8-24 32 080S 240E 4304737274 16923 Federal GW OPS CCWD 14ML-32-8-24 32 080S 240E 4304737277 17644 Federal GW PCWD 16D-32-8-24 32 080S 240E 4304737278 17644 Federal GW PRVVS2A41,5-9-24 05 090S 240E 4304737306 17644 Federal (39V PRWS 8D-5-9-24 05 I 090S 240E 4304737307 16614 Federal GW OPS CRWS 10ML-5-9-24 05 090S 240E 4304737308 17644 Federal GW S1091812hfi,5-9-24 105 090S 240E 4304737309 17644 Federal (39V PIUVVS1413-5-9-24 |05 090S 240E 4304737310 17644 Federal CivV PItWVS16A4Le5-9-24 05 090S 240E 4304737311 16698 Federal (ITV C)PS CRWS 12ML-6-9-24 06 090S 240E 4304737312 17644 Federal GW PItvVS16A4L,6-9-24 06 090S 240E 4304737335 17644 Federed (39V PCWD 10D-32-8-24 32 080S 240E 4304737347 17644 Federal GW PRWS 6D-5-9-24 05 090S 240E 4304737350 17644 Federal GW PItiVS4hdi,5-9-24 05 090S 240E 4304737351 17644 Federal (ITV PRTVS8D-6-9-24 06 090S 240E 4304737352 17644 Federed CTW PRWS 2D-6-9-24 06 090S 240E 4304737411 17272 Federal GW OPS CRWS 4ML-6-9-24 06 090S 240E 4304737412 17644 Federal GW SRWS 6D-6-9-24 06 090S 240E 4304737413 17644 Federal GW PRWS 14D-6-9-24 06 090S 240E 4304737414 17644 Federal GW PRWS 5ML-9-9-24 09 090S 240E 4304738645 17273 Federal GW OPS CRWS 12ML-9-9-24 09 090S 240E 4304738646 17274 Federal GW OPS CNBZ 16D-31-8-24 31 080S 240E 4304739435 Federal GW APD CNBZ 10D-31-8-24 31 080S 240E 4304739456 Federal GW APD CNBZ 12D-31-8-24 31 080S 240E 4304739457 Federal GW APD CNBZ 14D-31-8-24 31 080S 240E 4304739458 Federal GW APD CCWD 13D-32-8-24 32 080S 240E 4304739464 Federal GW APD CRWS 7D-6-9-24 06 090S 240E 4304739494 Federal GW APD CRWS 13D-6-9-24 06 090S 240E 4304739495 Federal GW APD CRWS 11D-6-9-24 06 090S 240E 4304739496 Federal GW APD CRWS 9D-6-9-24 06 090S 240E 4304739497 Federal GW APD CRWS 3D-6-9-24 06 090S 240E 4304739498 Federal GW APD CRWS 15D-6-9-24 06 090S 240E 4304739500 Federal GW APD C

Bonds:BLhn= ESBOOOO24BIA= 956010693

State= 965010695 1 of






State= 965010695 1 of






State= 965010695 1 of


effective June 14, 2010

well name see twp rng api entity mineral type stat Clease

RWS SD-6-9-24 06 090S 240E 4304739501 Federal GW APD CRWS 7D-5-9-24 05 090S 240E 4304739502 Federal GW APD CRWS 11D-5-9-24 05 090S 240E 4304739503 Federal GW APD CRWS 9D-5-9-24 05 090S 240E 4304739504 Federal GW APD CRWS 13D-5-9-24 05 090S 240E 4304739505 Federal GW APD CRWS 15D-5-9-24 05 090S 240E 4304739506 Federal GW APD CRWS 3D-5-9-24 05 090S 240E 4304739507 Federal GW APD CRWS 1D-5-9-24 05 090S 240E 4304739508 Federal GW APD CNBZ 5D-31-8-24 31 080S 240E 4304739511 Federal GW APD CCWD llD-32-8-24 32 080S 240E 4304739535 Federal GW APD CCWD 15D-32-8-24 32 080S 240E 4304739536 Federal GW APD CRWS 5D-5-9-24 05 090S 240E 4304739673 Federal GW APD CRWS 1D-6-9-24 06 090S 240E 4304739674 Federal GW APD CNBZ 3D-31-8-24 31 080S 240E 4304739675 Federal GW APD CNBZ 16D-30-8-24 30 080S 240E 4304740355 Federal GW APD CNBZ 15D-30-8-24 30 080S 240E 4304740356 Federal GW APD CCWD 6D-32-8-24 32 080S 240E 4304740357 Federal GW APD CCWD 2D-32-8-24 32 080S 240E 4304740358 Federal GW APD CCWD 5D-32-8-24 32 080S 240E 4304740359 Federal GW APD CNBZ 10D-29-8-24 29 080S 240E 4304740360 Federal GW APD CNBZ 8D-29-8-24 29 080S 240E 4304740361 Federal GW APD CNBZ 14D-29-8-24 29 080S 240E 4304740362 Federal GW APD CNBZ 16D-29-8-24 29 080S 240E 4304740363 Federal GW APD CNBZ 12D-29-8-24 29 080S 240E 4304740364 Federal GW APD CNBZ 13D-30-8-24 30 080S 240E 4304740365 Federal GW APD CRWS 4D-9-9-24 09 090S 240E 4304740470 Federal GW APD CNBZ 9D-30-8-24 30 080S 240E 4304740471 Federal GW APD CNBZ 11D-30-8-24 30 080S 240E 4304740472 Federal GW APD CNBZ 7D-30-8-24 30 080S 240E 4304740473 Federal GW APD CNBZ 2D-29-8-24 29 080S 240E 4304740476 Federal GW APD CCWD 7D-32-8-24 32 080S 240E 4304740477 Federal GW APD CCWD 9D-32-8-24 32 080S 240E 4304740478 Federal GW APD CRWS 6D-9-9-24 09 090S 240E 4304740479 Federal GW APD CRWS 13D-9-9-24 09 090S 240E 4304740480 Federal GW APD CNBZ 6D-29-8-24 29 080S 240E 4304740483 Federal GW APD CNBZ ID-30-8-24 30 080S 240E 4304740484 Federal GW APD CNBZ 20-30-8-24 30 080S 240E 4304740485 Federal GW APD CNBZ 3D-30-8-24

, 30 080S 240E 4304740486 Federal GW APD C

Bonds: BLM= ESBOOOO24BIA = 956010693

State = 965010695 2 of







State = 965010695 2 of







State = 965010695 2 of

'a United States Department of the Interior

BUREAU OF LAND MANAGEMENTTAKE PRtoE'+4

H 35/ Utah State Office INAM ERICAP.O. Box 45155Salt Lake City, UT 84145-0155

http://www.b1m.gov/ut/st/en.html


JUL 2 8 2010

Memorandum

Fr m:

1FieldhOffice PriaceFie ce Moa Fi

Subject: Name Change Recognized

Attached is a copy of the Certificate of Name Change issued by the Texas Secretary of State anda decision letter recognizing the name change from the Eastern States Office. We have updatedour records to reflect the name change in the attached list of leases.

The name change from QuestarExploration and Production Company into QEP EnergyCompany is effective June 8, 2010.

cc: MMSUDOGM

RECE EDAUS16






JUL 2 8 2010

Memorandum

Fr m:





cc: MMSUDOGM

RECE EDAUS16






JUL 2 8 2010

Memorandum

Fr m:





cc: MMSUDOGM

RECE EDAUS16

API Well No: 43047403610000



FORM 9







2. NAME OF OPERATOR: QEP ENERGY COMPANY

9. API NUMBER: 43047403610000

3. ADDRESS OF OPERATOR: PHONE NUMBER: 11002 East 17500 South , Vernal, Ut, 84078 303 308-3068 Ext



COUNTY: UINTAH

STATE: UTAH

11.




9/25/2011















QEP ENERGY COMPANY HEREBY REQUESTS A ONE YEAR EXTENSION FOR THEAPD ON THE ABOVE CAPTIONED WELL.

NAME (PLEASE PRINT) PHONE NUMBER Jan Nelson 435 781-4331

TITLE Permit Agent

SIGNATURE N/A

DATE 9/23/2010

September 23, 2010

September 28, 2010

iPI Well No: 43047403610000

FORM 9STATE OF UTAH

DEPARTMENT OF NATURAL RESOURCESDIVISION OF OIL, GAS, AND MINING 5.LEAS7EnDESIGNATION AND SERIAL NUMBER:





2. NAME OF OPERATOR: 9. API NUMBER:QEPENERGYCOMPANY 43047403610000

3. ADDRESS OF OPERATOR: PHONE NUMBER: 9. FIELD and POOL or WILDCAT:11002 East 17500 South , Vernal, Ut, 84078 303 308-3068 E×t BIG VALLEY







NOTICE OF INTENTApproximate date work will start: CHANGE TO PREVIOUS PLANS CHANGE TUBING CHANGE WELL NAME





SPUD REPORTDate of Spud: REPERFORATE CURRENT FORMATION SIDETRACK TO REPAIR WELL TEMPORARY ABANDON





QEP ENERGY COMPANY HEREBY REQUESTS A ONE YEAR EXTENSION FOR THEAPD ON THE ABOVE CAPTIONED WELL. Approved by the



By:




iPI Well No: 43047403610000

FORM 9STATE OF UTAH



























By:




iPI Well No: 43047403610000

FORM 9STATE OF UTAH



























By:









Location: 1979 FNL 1006 FEL QTR SENE SEC 29 TWNP 080S RNG 240E MER SCompany Permit Issued to: QEP ENERGY COMPANY










Signature: Jan Nelson Date: 9/23/2010

Title: Permit Agent Representing: QEP ENERGY COMPANY

September 23, 2010September 23, 2010

September 28, 2010

UTAH

[gg The Utah Division of Oil, Gas, and Mining- State of Utah- Department of Natural ResourcesElectronic Permitting System - Sundry Notices

OTI GAS & MINTNG






•If located on private land, has the ownership changed, if so, has the surface agreement beenupdated? I Yes I:$l No

• Have any wells been drilled in the vicinity of the proposed well which would affect the spacing orsiting requirements for this location? I

_

I Yes i i No

• Has there been any unit or other_agreements put in place that could affect the permitting or operationof this proposed well? :___:I Yes ig:I No

• Have there been any changes to the access route including ownership, or rightof- way, which couldaffect the proposed location? I

_

I Yes g:I No

• Has the approved source of water for drilling changed? I Yes i i No

• Have there been any physical changes to the surface location or access route which will require achange in plans from what was discussed at the onsite evaluation? I i Yes g:I No

Approved by the•Is bonding still in place, which covers this proposed well? I:gi Yes i No Utah Division of

Oil, Gas and MiningSignature: Jan Nelson Date: 9/23/2010

Title: Permit Agent Representing: QEP ENERGY COMPANY Date: September 28, 2010

By:


UTAH










_

I Yes i i No



_

I Yes g:I No






By:


UTAH










_

I Yes i i No



_

I Yes g:I No






By:




FORM 9








9. API NUMBER: 43047403610000




COUNTY: UINTAH

STATE: UTAH

11.




9/25/2012
















NAME (PLEASE PRINT) PHONE NUMBER Valyn Davis 435 781-4369

TITLE Regulatory Affairs Analyst

SIGNATURE N/A

DATE 9/22/2011

09/27/2011

Sep. 22, 2011

Sundry Number: 18737 API Well Number: 43047403610000

FORM 9STATE OF UTAH

DEPARTMENT OF NATURAL RESOURCESDIVISION OF OIL, GAS, AND MINING 5.LEASE DOESIGNATION AND SERIAL NUMBER:





2. NAME OF OPERATOR: 9. API NUMBER:QEP ENERGY COMPANY 43047403610000

3. ADDRESS OF OPERATOR: PHONE NUMBER: 9. FIELD and POOL or WILDCAT:11002 East 17500 South , Vernal, Ut, 84078 303 308-3068 Ext BIG VALLEY

4.LOCATIONOFVVELL COUNTY:FOOTAGES AT SURFACE: UINTAH















12. DESCRIBE PROPOSED OR C( MPLETED OPERATIONS. Clearly show all pertinent details including dates, depths, volumes, etc.


Approved by theUtah Division of

Oil, Gas and Mining

Date: 09/27/2011

By:

NAME (PLEASE PRINT) PHONE NUMBER TITLEValyn Davis 435 781-4369 Regulatory Affairs Analyst

SIGNATURE DATEN/A

FORM 9STATE OF UTAH


























Oil, Gas and Mining

Date: 09/27/2011

By:


SIGNATURE DATEN/A

FORM 9STATE OF UTAH


























Oil, Gas and Mining

Date: 09/27/2011

By:


SIGNATURE DATEN/A
















Signature: Valyn Davis Date: 9/22/2011

Title: Regulatory Affairs Analyst Representing: QEP ENERGY COMPANY

Sep. 22, 2011


UTAH

DNR The Utah Division of Oil, Gas, and Mining- State of Utah- Department of Natural ResourcesElectronic Permitting System - Sundry Notices

TI, BAS Pr NINTfdG






• If located on private land, has the ownership changed, if so, has the surface agreement beenupdated? Yes © No

• Have any wells been drilled in the vicinity of the proposed well which would affect the spacing orsiting requirements for this location? Yes © No

• Has there been any unit or other agreements put in place that could affect the permitting or operationof this proposed well? Yes © No

• Have there been any changes to the access route including ownership, or rightof- way, which couldaffect the proposed location? Yes © No

• Has the approved source of water for drilling changed? Yes © No

• Have there been any physical changes to the surface location or access route which will require achange in plans from what was discussed at the onsite evaluation? Yes © No

• Is bonding still in place, which covers this proposed well? U Yes No

Signature: Valyn Davis Date: 9/22/2011Title: Regulatory Affairs Analyst Representing: QEP ENERGY

UTAH

DNR The Utah Division of Oil, Gas, and Mining- State of Utah- Department of Natural Resources

Electronic Permitting System - Sundry NoticesTI, BAS Pr N1NTMG






•If located on private_land, has the ownership changed, if so, has the surface agreement beenupdated? O Yes No

• Have any wells been drilled in the vicinity of the roposed well which would affect the spacing orsiting requirements for this location? O Yes No

• Has there been any unit or other agreements put in place that could affect the permitting or operationof this proposed well? O Yes @ No

• Have there been any changes to the access route including ownership, or rightof- way, which couldaffect the proposed location? O Yes @ No

• Has the approved source of water for drilling changed? O Yes @ No

• Have there been any physical changes to the surface location or access route which will require achange in plans from what was discussed at the onsite evaluation? O Yes @ No

• Is bonding still in place, which covers this proposed well? @ Yes O No


UTAH

DNR The Utah Division of Oil, Gas, and Mining- State of Utah- Department of Natural Resources

Electronic Permitting System - Sundry NoticesTI, BAS Pr N1NTMG






•If located on private_land, has the ownership changed, if so, has the surface agreement beenupdated? O Yes No

• Have any wells been drilled in the vicinity of the roposed well which would affect the spacing orsiting requirements for this location? O Yes No

• Has there been any unit or other agreements put in place that could affect the permitting or operationof this proposed well? O Yes @ No

• Have there been any changes to the access route including ownership, or rightof- way, which couldaffect the proposed location? O Yes @ No

• Has the approved source of water for drilling changed? O Yes @ No

• Have there been any physical changes to the surface location or access route which will require achange in plans from what was discussed at the onsite evaluation? O Yes @ No

• Is bonding still in place, which covers this proposed well? @ Yes O No


Form 3 M2000 UNITED STATES RECElVP3 FORM APPROVED(AugusDEPARTMENT OF THE INTERIOR a - L OMB NO. 1004-0135

BUREAU OF LAND MANAGEMENT Expires: July 31, 2010

DEC19 2011 i Lese senado.SUNDRY NOTICES AND REPORTS ON WELLS UTU77301Do not use this form for proposals to dri/I or to re-enter an

.abandoned we/I. Use form 3160-3 (APD) for such proposal 6. If Indian, Allottee or Irlbe Name

SUBMIT IN TRIPLICATE - Other instructions on reverse side. J. It Umtor CA/Agreement, Name and/or Ño¯UTU81308C

1. lype of Well 8. WellName and.No.O Oil Wen g Gas Well O Other NBZ 8D-29-8-24

2. NameofOperator Contact: VALYNDA\/IS 9. APIWellNo.QEP ENERGY COMPANY E-Mail: [email protected] 43-047-40361-00-X13a. Address 3b. PhoneNo. (melude area code) 10. Fieldand Pool,or Exploratory11002 EAST 17500 SOUTH Ph: 435-781-4369 UNDESIGNATEDVERNAL, UT 84078 Fx: 435-781-43954. Locationof Well µ<ootage,sec.,2., R., bl., or Survey Description) 11. County or Parlsh,and State

Sec 29 T8S R24E SENE 1979FNL 1006FEL UINTAHCOUNTY, UT

12. CHECK APPROPRIATE BOX(ES) TO INDICATE NATURE OF NOTICE, REPORT, OR OTHER DATA


g Notice of Intent g Acidize g Deepen 0 Production (Start/Resume) Q Water Shut-Off

0 Alter Casing O Fracture Treat 0 Reclamation O Well Integrity0 Subsequent Report

g Casing Repair g New Construction 0 Recomplete OtherO Final Abandonment Notice O Change Plans O Plug and Abandon 0 Temporarily Abandon pgange to Original

O Convert to Injection 0 Plug Back O Water Disposal13.besenbe Proposedor Completed Op oration (clearly state all pertment details,meludmg estimated startmg dateof any proposed work and approximate durationthereof.If the proposal is to deepen directionally or recomplete horizontally, give subsurface locations and measured and.true vertical depths of all pertinent markers and zones.Attach the Bond under which the work will be performed or provide the Bond No. on file with BLM/BIA. Required subsequent reports shall be filed within 30 daysfollowing completion of the involved operations. If the operation results in a multiple completion or recompletion in a new interval, a Form 3160-4 shall be filed oncetesting has been completed. Final Abandonment Notices shall be filed only after all requirements, including reclamation, have been completed, and the operator hasdetermined that the site is ready for final inspection.)

QEP ENERGY COMPANY HEREBY REQUESTS A TWO YEAR EXTENSION FOR THE APD ON THE ABOVE CAPTIONED WELL.BLMAPPROVAL DATE: 12/21/2009

RECEIVEDFEBO'32012

GEOLDIV.OF00..,GAS&MINING E.8.

CONDITIONSOFAPPROVALATTACHED PET

RECl14. I herebycertify that the toregomgis true and correct.

Electronic Submission #126245 verifici by the BLM Well Information SystemFor QEP ENERGY COM: ANY, sent to the Vernal

Committed to AFMSS for processing by ROEIN R. HANSEN on 12/29/2011 (12RRH1204SE)Name(Printed/Typed) VALYN DAVIS Title REGULATORY AFFAIRS ANALYST

Signature (Electronic Submission) Date 12/19/2011

THIS SPACE FOR FEDERAL OR STATE OFFICE USE

Assistant Field Manager j Stei$ ËÊApproved By Title LSOdS & Mine¶RIRearµgeneConditions of ached. Approval of this notice does not warrant orcertify that the can al or equitable title to those rights in the subject lease VERNALFIELDOFFICEwhich would entitle the applicant to conduct operations thereon. Office

TitlËÍŒU.S.C. Section 1001 and Title 43 U.S.C. Section 1212, make it a crime for any person knowingly and willfully to make to any department or agency of the






1. lype of Well 8. WellName and.No.

O Oil Wen g Gas Well O Other NBZ 8D-29-8-24










RECEIVEDFEBO'32012















1. lype of Well 8. WellName and.No.

O Oil Wen g Gas Well O Other NBZ 8D-29-8-24










RECEIVEDFEBO'32012










CONDITIONS OF APPROVAL

QEP ENERGY COMPANY

Notice of IntentAPD Extension

Lease: UTU-77301Well: NBZ 8D-29-8-24Location: SENE Sec 29-T8S-R24E

An extension for the referenced APD is granted as requested with the following conditions:

1. The extension and APD shall expire on 12/21/2013.

2. No other extension shall be granted.

If you have any other questions concerning this matter, please contact Robin L Hansen of thisoffice at (435)


QEP ENERGY COMPANY








QEP ENERGY COMPANY







RECEIVED: Sep. 24, 2012



FORM 9


SUNDRY NOTICES AND REPORTS ON WELLS

Do not use this form for proposals to drill new wells, significantly deepen existing wells belowcurrent bottom-hole depth, reenter plugged wells, or to drill horizontal laterals. Use APPLICATIONFOR PERMIT TO DRILL form for such proposals.






9. API NUMBER: 43047403610000




COUNTY: UINTAH

STATE: UTAH

11.




9 /25 /2013















QEP ENERGY COMPANY HEREBY REQUESTS A ONE YEAR EXTENSION FORTHE APD ON THE ABOVE CAPTIONED WELL.



SIGNATURE N/A

DATE 9 /24 /2012

September 27, 2012

Sundry Number: 30157 API Well Number: 43047403610000Sundry Number: 30157 API Well Number: 43047403610000

FORM 9STATE OF UTAH

DEPARTMENTOF NATURALRESOURCES5.LEASE DESIGNATION AND SERIAL NUMBER:DIVISION OF OIL, GAS, AND MINING UTU-77301


Do not use this form for proposals to drill new wells, significantly deepen existing wells belowcurrent bottom-hole depth, reenter plugged wells, or to drill horizontal laterals. Use APPLICATION 7.UNITor CA AGREEMENT NAME:

FOR PERMIT TO DRILL form for such proposals. BIG VALLEY




4. LOCATION OF WELL COUNTY:FOOTAGESATSURFACE: UINTAH

1979 FNL 1006 FELQTRIQTR, SECTION, TOWNSHIP, RANGE, MERIDIAN: STATE:

QtrlQtr: SENE Section: 29 Township: 08.0S Range: 24.0E Meridian: S UTAH

CHECK APPROPRIATE BOXES TO INDICATENATURE OF NOTICE, REPORT, OR OTHER DATA


ACI DIZE ALTER CASING CASING REPAIRNOTICE OF INTENT

Approximate date work will start: CHANGE TO PREVIOUS PLANS CHANGE TUBING CHANGE WELL NAME




PRODUCTION START OR RESUME RECLAMATION OF WELL SITE RECOMPLETE DIFFERENT FORMATIONSPUD REPORT

Date of Spud: REPERFORATE CURRENT FORMATION SIDETRACK TO REPAIR WELL TEMPORARY ABANDON



WILDCATWELLDETERMINATION OTHER OTHER:


QEP ENERGYCOMPANYHEREBYREQUESTS A ONE YEAR EXTENSIONFOR Approved by theTHE APD ON THE ABOVE CAPTIONED WELL. Utah Division of

OFI, Gas and Mining


By:



RECEIVED: Sep. 24,


FORM 9STATE OF UTAH

























OFI, Gas and Mining


By:



RECEIVED: Sep. 24,


FORM 9STATE OF UTAH

























OFI, Gas and Mining


By:



RECEIVED: Sep. 24,








Date Original Permit Issued: 9 /25 /2008

The undersigned as owner with legal rights to drill on the property as permitted above, hereby verifies that theinformation as submitted in the previously approved application to drill, remains valid and does not require revision.Following is a checklist of some items related to the application, which should be verified.

If located on private land, has the ownership changed, if so, has the surface agreement been updated? Yes No

Have any wells been drilled in the vicinity of the proposed well which would affect the spacing or sitingrequirements for this location? Yes No

Has there been any unit or other agreements put in place that could affect the permitting or operation of thisproposed well? Yes No

Have there been any changes to the access route including ownership, or rightof- way, which could affect theproposed location? Yes No


Have there been any physical changes to the surface location or access route which will require a change inplans from what was discussed at the onsite evaluation? Yes No


Signature: Valyn Davis Date: 9 /24 /2012



UTAH

DNR The Utah Division of Oil, Gas, and Mining'

- State of Utah- Department of Natural ResourcesElectronic Permitting System - Sundry Notices

OTI.EMI N1NTrie






* If located on private land, has the ownership changed, if so, has the surface agreement been updated? OYes No

• Have any wells been drilled in the vicinity of the proposed well which would affect the spacing or sitingrequirements for this location? O Yes No

• Has there been any unit or other agreements put in place that could affect the permitting or operation of thisproposed well? (_) Yes No

• Have there been any changes to the access route including ownership, or rightof- way, which could affect theproposed location? O Yes i No

· Has the approved source of water for drilling changed? O Yes No

• Have there been any physical changes to the surface location or access route which will require a change inplans from what was discussed at the onsite evaluation? Yes No

' Is bonding still in place, which covers this proposed well? Yes No

Signature: Valyn Davis Date: 9/24/2012Title: Regulatory Affairs Analyst Representing: QEP ENERGYCOMPANY

RECEIVED: Sep. 24,


UTAH



Electronic Permitting System - Sundry NoticesOTI.EMI N1NTrie














RECEIVED: Sep. 24,


UTAH



Electronic Permitting System - Sundry NoticesOTI.EMI N1NTrie














RECEIVED: Sep. 24,




FORM 9


SUNDRY NOTICES AND REPORTS ON WELLS

Do not use this form for proposals to drill new wells, significantly deepen existing wells belowcurrent bottom-hole depth, reenter plugged wells, or to drill horizontal laterals. Use APPLICATIONFOR PERMIT TO DRILL form for such proposals.






9. API NUMBER: 43047403610000




COUNTY: UINTAH

STATE: UTAH

11.




9 /25 /2014















QEP ENERGY COMPANY HEREBY REQUESTS A ONE YEAR EXTENSION FORTHE APD ON THE ABOVE CAPTIONED WELL.



SIGNATURE N/A

DATE 9 /23 /2013

September 25, 2013


FORM 9STATE OF UTAH








4. LOCATION OF WELL COUNTY:FOOTAGESAT SURFACE: UINTAH








SUBSEQUENTREPORT DEEPEN FRACTURETREAT NEWCONSTRUCTIONDate of Work Completion:









OFI, Gas and Mining


By:



RECEIVED: Sep. 23,


FORM 9STATE OF UTAH

























OFI, Gas and Mining


By:



RECEIVED: Sep. 23,


FORM 9STATE OF UTAH

























OFI, Gas and Mining


By:



RECEIVED: Sep. 23,








Date Original Permit Issued: 9 /25 /2008


If located on private land, has the ownership changed, if so, has the surface agreement been updated? Yes No

Have any wells been drilled in the vicinity of the proposed well which would affect the spacing or sitingrequirements for this location? Yes No

Has there been any unit or other agreements put in place that could affect the permitting or operation of thisproposed well? Yes No

Have there been any changes to the access route including ownership, or rightof- way, which could affect theproposed location? Yes No


Have there been any physical changes to the surface location or access route which will require a change inplans from what was discussed at the onsite evaluation? Yes No


Signature: Valyn Davis Date: 9 /23 /2013



UTAH


- State of Utah- Department of Natural ResourcesElectronic Permitting System - Sundry Notices

OTI. EMI Pr N1NTrie














RECEIVED: Sep. 23,


UTAH



Electronic Permitting System - Sundry NoticesOTI. EMI Pr N1NTrie














RECEIVED: Sep. 23,


UTAH



Electronic Permitting System - Sundry NoticesOTI. EMI Pr N1NTrie














RECEIVED: Sep. 23,

FIlE EDIT OIL GAS GAS PLANT REPORTS DB MAINTENANCE OPTIONS HELP DATA CONVERSION GEO LOGS DATABASE QUERY

WELL DATA WELL HISTORY WELL ACTMTY

WELlNAME IHBZ80-:n-8-24 AP1NUWlER 14304740361 WEll TYPE ~ WEll STATUS ~ OPERATOR '-1 OE-P-EU£-RG-Y-CO-"'-P-A-NY------ ACCOUNT 1 N3100 r-- OPERATOR APPROVED BY BlM ISlA r;;

DESIGNATED OPERATOR I ACCOUNT r--r AELD NAME I BIG VALLEY

WElL LOCATION CONfIOENTIAl FLAG r LEASE NUIABER I UTU-n301 SURF LOCATION 1'179 FNL1006 FEL

OO.S T.RIA. ~Fros:osI24.0E fS COUNTY I UlNTAH

CONl'IOENTIAl DATE III MINERAL LEASE TYPE f1-::J DlRECTJOtoW.I HORIZONTAL I SURFACE OWNER TYPE f1-::J

HORIZONTAL LATERALS I IND1AN TRIBE I lIT1I COORDINATE S

SURFACE· N 1«39838.00 BHL • N 1

SURFACE· E 1650694.00 BHL· E '-1 ---

LATITUDE 140.09535 LONGITUDE 1.,011.23219

COIIUINGlED PRODUCTION r C.A NUIoI8ER I ORIGIW.L FIELD TYPE n UNIT NAME I BIG VALLEY

WILDCAT TAX FlAG r CUMUlATIVE PRODUCTION:

CB-IIETHANE FlAG r OIL 10 ELEVATION 15143GR GAS 10

WATER 10 BONO NUWlER I TYPE IE 5BOOOO24 f1-::J WELL FILES I 'NaL PHOTOS I PROD. GRAPH I

COUMENTS 090930 lYRAFO EXTOP FR N5085:1009281YR AFO EXT: 1109271YRAFO EXT:1209271YR.AI'O EXT:1309251YR.AI'O EXT:140918lJ1 PER OP

~::-e=l--S~ Cancel Change I To tl~~ 1 To Activity ennl Reed 1 Export Reed 1 .... 1 "I

::J

IL& -

FILE EDIT OIL GAS GASPLANT REPORTS DBMAINTENANCE OPTIONS HELP DATACONVERSION GEOLOGS DATABASEQUERY

WELL SERCH WELL HISTORY WELLACTMTY

WELLNAME NBZ8D-29-8-24 AP1 NUMBER 4304740361 WELL TYPE GW WELLSTATUS LA

OPERATOR QEP ENERGYCOMPANY ACCOUNT N3700 OPERATORAPPROVEDBYBLM/ BIA9

DESIGNATEDOPERATOR ACCOUNT

FIELDNAME BIG VALLEY FIELDNUMBER 791 FIRST PRODUCTION LAIPADATE

WELLLOCATION CONFIDENTIALFLAG F LEASENUMBER UTUT/301

SURF LOCATION 1979 FNL1006 FELCONFIDENT1ALDATE MINERALLEASETYPE 1

QQ. ST R. M SENE 08.0 S 24.0 ED%CRONÆ | HORŒONT SURFACEOWNERTYPE 1

COUNTY UINTAHHORIZONTALLATERALS INDIANTRIBE

UTMCODRDINATES

SURFACE- N 4439838.00 BHL - NCOMMINGLEDPRODUCTION CA NUMBER

SURFACE- E 650694.00 BHL- EORIGINALFIELDTYPE D UNITNAME BIG VALLEY

LAWUDE .09535

WILDCATTAXFLAG CUMULATNEPRODUCTlON

CORNE FLAG OIL 0

LONGITUDE -109.23219

ELEVATION 5143 GR GAS 0

WELL FILES WELL PHOTOS PROD. GRAPHBONONUMBERITYPE E58000024 1

WATER 0

COMMENTS 090930 1YRAPDEXTOP FR N5085 100928 1YRAPOEXT:110927 1YRAPDEXT:120927 1YRAPDEXT:130925 1YRAPDEXT:140918 LAPER OP

Create New Rec Sa Cancel Change To History To Activity Print Recd Export Reed

|

IL& -

FILE EDIT OIL GAS GASPLANT REPORTS DBMAINTENANCE OPTIONS HELP DATACONVERSION GEOLOGS DATABASEQUERY

WELL SERCH WELL HISTORY WELLACTMTY

WELLNAME NBZ8D-29-8-24 AP1 NUMBER 4304740361 WELL TYPE GW WELLSTATUS LA

OPERATOR QEP ENERGYCOMPANY ACCOUNT N3700 OPERATORAPPROVEDBYBLM/ BIA9

DESIGNATEDOPERATOR ACCOUNT

FIELDNAME BIG VALLEY FIELDNUMBER 791 FIRST PRODUCTION LAIPADATE

WELLLOCATION CONFIDENTIALFLAG F LEASENUMBER UTUT/301

SURF LOCATION 1979 FNL1006 FELCONFIDENT1ALDATE MINERALLEASETYPE 1

QQ. ST R. M SENE 08.0 S 24.0 ED%CRONÆ | HORŒONT SURFACEOWNERTYPE 1

COUNTY UINTAHHORIZONTALLATERALS INDIANTRIBE

UTMCODRDINATES

SURFACE- N 4439838.00 BHL - NCOMMINGLEDPRODUCTION CA NUMBER

SURFACE- E 650694.00 BHL- EORIGINALFIELDTYPE D UNITNAME BIG VALLEY

LAWUDE .09535

WILDCATTAXFLAG CUMULATNEPRODUCTlON

CORNE FLAG OIL 0

LONGITUDE -109.23219

ELEVATION 5143 GR GAS 0

WELL FILES WELL PHOTOS PROD. GRAPHBONONUMBERITYPE E58000024 1

WATER 0

COMMENTS 090930 1YRAPDEXTOP FR N5085 100928 1YRAPOEXT:110927 1YRAPDEXT:120927 1YRAPDEXT:130925 1YRAPDEXT:140918 LAPER OP

Create New Rec Sa Cancel Change To History To Activity Print Recd Export Reed

|

GARY R. HERBERT Governor

SPENCER J. COX Lieutenant Governor

Valyn Davis

State of Utah DEPARTMENT OF NATURAL RESOURCES

MICHAEL R. STYLER Executive Director

Division of Oil, Gas and Mining JOHNR.BAZA Division Director

September 25,2014

QEP Energy Company 11002 East 17500 South Vernal, UT 84078

RE: APDs Rescinded for QEP Energy Company, Uintah County, Utah

Dear Ms. Davis:

As requested, attached is a list of the APD's that the Division of Oil, Gas and Mining "the Division" has rescinded. No drilling activity at these locations has been reported to the Division. Therefore, approval to drill these wells is hereby rescinded, effective September 18, 2014.

New APD's must be filed with this office for approval prior to the commencement of any future work on the subject locations.

If any previously unreported operations have been performed on these well locations, it is imperative that you notifY the Division immediately.

LC

Attachment: (1) cc: Well File

Bureau of Land Management, Vemal

Sincerely,

Lisha Cordova Environmental Scientist

1594 West North Temple, Suite 1210, PO Box 145801, Salt Lake City, UT 841 14-5801 telephone (801) 538-5340. facsimile (801) 359-3940. TTY (801) 538-7458. www.ogm.utah.gov

OIL, GAS Ii MINING

State of UtahDEPARTMENT OF NATURAL RESOURCES

-ML),, MICHAEL R. STYLER

GARY R. HERBERT Executive Director

Govern¤r Division of Oil, Gas and MiningSPENCER J. COX JOHN R. BAZALieutenant Governor Division Director

September 25, 2014

Valyn DavisQEP Energy Company11002 East 17500 SouthVernal, UT 84078

RE: APDs Rescinded for OEP Energy Company, Uintah County, Utah

Dear Ms. Davis:

As requested, attached is a list of the APD's that the Division of Oil, Gas and Mining"the Division" has rescinded. No drilling activity at these locations has been reported to theDivision. Therefore, approval to drill these wells is hereby rescinded, effective September 18,2014.

New APD's must be filed with this office for approval prior to the commencement of anyfuture work on the subject locations.

If any previously unreported operations have been performed on these well locations, it isimperative that you notify the Division immediately.

Sincerely,

Lisha CordovaEnvironmental Scientist

LCAttachment: (1)cc: Well File

Bureau of Land Management, Vernal

UTAH

DNR1594 West North Temple, Suite 1210, PO Box 145801, Salt Lake City, UT 84114-5801telephone (801) 538-5340 • facsimile(801) 359-3940 • TTY (801) 538-7458 • www.ogm.utah.gov

OIL, GAS &

State of UtahDEPARTMENT OF NATURAL RESOURCES

-ML),, MICHAEL R. STYLER

GARY R. HERBERT Executive Director

Govern¤r Division of Oil, Gas and MiningSPENCER J. COX JOHN R. BAZALieutenant Governor Division Director

September 25, 2014

Valyn DavisQEP Energy Company11002 East 17500 SouthVernal, UT 84078

RE: APDs Rescinded for OEP Energy Company, Uintah County, Utah

Dear Ms. Davis:

As requested, attached is a list of the APD's that the Division of Oil, Gas and Mining"the Division" has rescinded. No drilling activity at these locations has been reported to theDivision. Therefore, approval to drill these wells is hereby rescinded, effective September 18,2014.

New APD's must be filed with this office for approval prior to the commencement of anyfuture work on the subject locations.

If any previously unreported operations have been performed on these well locations, it isimperative that you notify the Division immediately.

Sincerely,

Lisha CordovaEnvironmental Scientist

LCAttachment: (1)cc: Well File

Bureau of Land Management, Vernal

UTAH

DNR1594 West North Temple, Suite 1210, PO Box 145801, Salt Lake City, UT 84114-5801telephone (801) 538-5340 • facsimile(801) 359-3940 • TTY (801) 538-7458 • www.ogm.utah.gov

OIL, GAS &

September 25,2014 APDs Rescinded eff. 9/18114

43-047-15245- RW 32-23A (DEEPENING) 43-047-15279- RW 32-33A (DEEPENING) 43-047-16478- RW 12-27A (DEEPENING) 43-047-40360- NBZ 10D-29-8-24 43-047-40361- NBZ 8D-29-8-24 43-047-40362- NBZ 14D-29-8-24 43-047-40363- NBZ 16D-29-8-24 43-047-40364- NBZ 12D-29-8-24 43-047-40365- NBZ 13D-30-8-24 43-047-38659- WVX IMU-18-8-21 43-047-38660- WVX 9MU-18-8-21 43-047-38661- GH 8G-18-8-21 43-047-38664- WV 2ML-24-8-21

Page 2September 25, 2014APDs Rescinded eff. 9/18/14

43-047-15245- RW 32-23A (DEEPENING)43-047-15279- RW 32-33A (DEEPENING)43-047-16478- RW 12-27A (DEEPENING)43-047-40360- NBZ 10D-29-8-2443-047-40361- NBZ 8D-29-8-2443-047-40362- NBZ 14D-29-8-2443-047-40363- NBZ 16D-29-8-2443-047-40364- NBZ 12D-29-8-2443-047-40365- NBZ 13D-30-8-2443-047-38659- WVX 1MU-18-8-2143-047-38660- WVX 9MU-18-8-2143-047-38661- GH 8G-18-8-2143-047-38664- WV

Page 2September 25, 2014APDs Rescinded eff. 9/18/14

43-047-15245- RW 32-23A (DEEPENING)43-047-15279- RW 32-33A (DEEPENING)43-047-16478- RW 12-27A (DEEPENING)43-047-40360- NBZ 10D-29-8-2443-047-40361- NBZ 8D-29-8-2443-047-40362- NBZ 14D-29-8-2443-047-40363- NBZ 16D-29-8-2443-047-40364- NBZ 12D-29-8-2443-047-40365- NBZ 13D-30-8-2443-047-38659- WVX 1MU-18-8-2143-047-38660- WVX 9MU-18-8-2143-047-38661- GH 8G-18-8-2143-047-38664- WV

• .> 9/1812014 State of Utah Mall - Rescind APO's

Diana Mason <[email protected]>

Re$cind APD's

Valyn Davis <[email protected]> Thu, Sep 18,2014 at 12:54 PM To: "[email protected]" <[email protected]>

Hi Oiana-

Hope you are doing .well ©.

Can you please rescind the following APO's:

43-047-15245- RW 32-23A

43-047-15279- RW 32-33A

43-047-16478- RW 12-27A

43-047-40360- NBZ 100-29-8-24

43-047-40361- NBZ 80-29-8-24

43-047-40362- NBZ 140-29-8-24

43-047-40363- NBZ 160-29-8-24

43-047-40364- NBZ 120-29-8-24

43-047-40365- NBZ 130-30-8-24

43-047-38659- WVX 1 MU-18-8-21

43-047-38660- WVX 9MU-18-8-21

43-047-38661- GH 8G-18-8-21

43-047-38664- WV 2ML-24-8-21

Thank you-

Valyn

htlps://mall.~e.com/mallluJOnul=2&1k=8d7a8b69b3&view=pt&search=inbox&msg=1488a1dbf3097759&siml=1488a1dbf3097759 112

9/18/2014 State of Utah Mall - Rescind APD's


Rescind APD's

Valyn Davis <[email protected]> Thu, Sep 18, 2014 at 12:54 PMTo: "[email protected]"<[email protected]>

HiDiana-

Hope you are doing well©.

Can you please rescind the following APD's:

43-047-15245- RW 32-23A

43-047-15279- RW 32-33A

43-047-16478- RW 12-27A

43-047-40360- NBZ 10D-29-8-24

43-047-40361- NBZ 8D-29-8-24

43-047-40362- NBZ 14D-29-8-24

43-047-40363- NBZ 16D-29-8-24

43-047-40364- NBZ 12D-29-8-24

43-047-40365- NBZ 13D-30-8-24

43-047-38659- WVX1MU-18-8-21

43-047-38660- WVX 9MU-18-8-21

43-047-38661- GH 8G-18-8-21

43-047-38664- WV 2ML-24-8-21

Thank you-

Valyn

httpsilmall.Ooogle.com/malilul0/7ul=2&lk=8d7a8b69b3&vlew=pt&search=Inbox&msg=1488aidbf3097759&siml=1488aidbf3097759

9/18/2014 State of Utah Mall - Rescind APD's


Rescind APD's

Valyn Davis <[email protected]> Thu, Sep 18, 2014 at 12:54 PMTo: "[email protected]"<[email protected]>

HiDiana-

Hope you are doing well©.

Can you please rescind the following APD's:

43-047-15245- RW 32-23A

43-047-15279- RW 32-33A

43-047-16478- RW 12-27A

43-047-40360- NBZ 10D-29-8-24

43-047-40361- NBZ 8D-29-8-24

43-047-40362- NBZ 14D-29-8-24

43-047-40363- NBZ 16D-29-8-24

43-047-40364- NBZ 12D-29-8-24

43-047-40365- NBZ 13D-30-8-24

43-047-38659- WVX1MU-18-8-21

43-047-38660- WVX 9MU-18-8-21

43-047-38661- GH 8G-18-8-21

43-047-38664- WV 2ML-24-8-21

Thank you-

Valyn

httpsilmall.Ooogle.com/malilul0/7ul=2&lk=8d7a8b69b3&vlew=pt&search=Inbox&msg=1488aidbf3097759&siml=1488aidbf3097759

9/18/2014 State of Utah Mail - Rescind APD's

RegL-(lcrtorlj Affcr~ys Avtcrlljst

-'/-35-222-1.052 ceLL

htlps:llmail.google.com/mail/u/0I?ui=2&ik=8d7 a8b69b3&view=pt&search=inbox&msg=1488a 1 dbf3097759&siml=1488a1 dbf3097759 212


435-222-1052 C6LL

[email protected]

https://mail.google.com/maillu/0/?ui=2&ik=8d7a8b69b3&view=pt&search=inbox&msg=1488a1dbf3097759&siml=1488a1dbf3097759


435-222-1052 C6LL

[email protected]

https://mail.google.com/maillu/0/?ui=2&ik=8d7a8b69b3&view=pt&search=inbox&msg=1488a1dbf3097759&siml=1488a1dbf3097759

FORM APPROVED

rm 3110-3 OMB NO. 1040-0131 Fo (J uly 19921 UNITED STATES SUBMIT IN TRlPUCATE"

Exp'ru: Feb"",,, 21,1_

DEPARTMENT OF THE INTERIOR RECEIVElL_,· 1"';- 6. lEASE DESIGNATION AND SERIAL NO. ~ VERNAL FiELD (Jr i' ,~~ BUREAU OF LAND MANAGEMENT UTu-n301

6. IF INDIAN, AllOTTEE OR TRIBE NAME

-APPLICATION FOR PERMIT TO DRILL QR, D..EPP~~ ern t1 (c.. NlA

CI..,I'J;,: .. -TYPE OF WORK 7. UNIT AGREEMENT NAME

DRill 0 DEEPEN 0 1'-""'1''"' BIG VAllEY UNIT DEPT OF THE IN t;l{ly'" TYPE OF WELL BUREAU OF LAND MGM I 8. FARM OR lEASE NAME, WEll NO.

0 0 0 SINGLE 0 MULTIPLE Oil WEll GAS WEll OTHER ZONE ZONE NBZ 8D-29-8-24

2. NAME OF OPERATOR Contact: Jan Nelson 9.API NUMBER:

QUESTAR EXPLORATION & PRODUCTION CO. E-Mail: Jan.nelaonaqueatar.com Lfo -0Lt1- 40o~' 3. ADDRESS Telphone number 10. FIELD AND POOL, OR WILDCAT

11002 E.17600 S. Vemal, Utah 84078 Phone 436-781-4331 Fax 436-781-4396 UNDESIGNATED

4. lOCATION OF WELL (Report location clearly and in accordance with and State requlrements*) 11. SEC., T, R, M, OR BlK & SURVEY OR AREA

At Surface 1979' FNL 1006' FEL, SENE, SECTION 29, TIS, R24E

At proposed production zone SEC. 29, TIS, R24E SlB&M

14. DISTANCE IN MilES FROM NEAREST TOWN OR POSTOFFICE* 12. COUNTY OR PARISH 113. STATE

34 + f - SOUTH OF VERNAL, UTAH Ulntah UT

16. DISTANCE FROM PROPOSED lOCATION TO NEAREST 16.NO.OF ACRES IN lEASE 17. NO. OF ACRES ASSIGNED TO THIS WEll

PROPERTY OR lEASE LINE, FT. (also to nearest drlg,unlt line If any) 1605.46 40

1006' + f-

18.DISTANCE FROM PROPOSED location to nearest well, drilling, 19. PROPOSED DEPTH 20. BLM/BIA Bond No. on file completed, applied for, on this lease, ft ESBOOOO24

13,224' 4510' + f-

21. ELEVATIONS (Show whether DF, RT, GR, ect) 22. DATE WORK Will START 23. Estimated duration

6143.8' GR ASAP 36dava

24. Attachments

The followlng,completed In accordance with the requlrmenta of Onshore 011 and Gas Order No.1, shall be attached to this form:

1. Well plat certified by a registered surveyor. 2. A Drilling Plan

3. A surface Use Plan ( if location is on National Forest System Lands,

the SUPO shall be filed with the appropriate Forest Service Office).

TITLE Regulatory Affairs

(This spa .. fo._' .... _ 0lil"_1

PERMIT NO.

4. Bond to cover the operations unless covered by an exisiting bond on file (see

Item 20 above).

5. Operator certification.

6. Such other site specific infonnation and/or plans as may be required by the

authorized officer.

Jan Nelson DATE 09f1012008

APPROVAL DATE

~ ___ not_orCO��ffytf1e_-__ or_-Io-tIghIolntllea_-wIIIchwould..-tf1eoppllcontloconcluct __ -

CONDITIONS OF APPROVAL, IF ANY: CONDmONS OF APPROVAL ATTACHED 0" .J~ J Aalstant Field Manager APPROVE~~ • t. £ TlnGulAe & Minerai ResOurces DATE ,z/.",/a1

J *se:n:trUctions On Reve,.e Side VERNAL FIELD OFFICE N OS ? /' fJ1 I TIlle 11 U.8.C 8ection 1001, rna .... H a crt .... for any parson knowingly and wllIfU'1y 10 ....... to any depaJtmont 0"_ of the .

/ 0 7 YoUed_unyfal .. , fi_OUOO'f"UdR'~EofvEDnoutoany-._'n Hsjurtod~n CONFIDENTIAL AFMSS# 01PP:/tl99~

UDOGM JAN 25 ·2010 NOTICE OF APPROVAL

DIV, OF OIL, GAS & MiNING

FORM APPROVED

Fonn 3164 3 OMB NO. 1040-0136

"*'" UNITED STATES SUBMITIN TRIPLICATE, Expkes: February 28, 1995

DEPARTMENTOF THE INTERIOR RECENE - 6. LEASE DESIGNATIONAND SERIAL NO.BUREAU OF LANDMANAGEMENT VERNAi..RED 0

6. IF INDIAN,ALLOTTEE OR TRIBE NAME

, APPLICATION FOR PERMITTO DRILL D ON NIA

TYPEOF WORK 7. UNITAGREEMENT NAMEDRILL U DEEPEN O BIG VALLEYUNIT

TYPEOF WELL yREAUOF LANDMG 8. FARM OR LEASE NAME,WELL NO.

O O SINGLE MULTIPLEOIL WELL GAS WELL OTHER ZONE ZONE NBZ 8D-29-8-24

2. NAMEOF OPERATOR Contact: Jan Nelson 9.API NUMBER:QUESTAR EXPLORATION& PRODUCTIONCO. E-Mall: [email protected] 6 - OSla

3. ADDRESS Tetphone number 10. FIELDAND POOL, OR WILDCAT11002 E. 17500 S. Vernal, Utah 84078 Phone 435-781-4331 Fax 436-781-4395 UNDESIGNATED

4. LOCATIONOF WELL (Report location clearly and in accordance with and State mquirements*) 11. SEC.,T, R, M, OR BLK & SURVEY OR AREAAt Surface 1979' FNL 1006' FEL, SENE, SECTION 29, T8S, R24EAt proposedproductionzone SEC. 29, T8S, R24E SLB&M

14. DISTANCE IN MILES FROM NEAREST TOWN OR POSTOFFICE* 12. COUNTYOR PARISH 13. STATE34 + I - SOUTH OF VERNAL, UTAH Ulntah UT

16. DISTANCE FROM PROPOSED LOCATIONTO NEAREST 16.NO.0F ACRES IN LEASE 17. NO. OF ACRES ASSIGNED TO THIS WELLPROPERTY OR LEASE LINE, FT.

(also to nearest drig,unit line If any) 1505.46 401006' + I -

18.DISTANCE FROM PROPOSED location to nearest well, drilling, 19. PROPOSED DEPTH 20. BLMIBIABond No. on fliecompleted, applied for, on this lease, R

13,224'E88000024

4510' + I -


24. Attachments

The following,completed in accordance with the requirments of Onshore 011and Gas Order No. 1, shall be attached to this form:1. Well plat certifledby a registeredsurveyor 4. Bondtocover theoperations unless covered by an exisiting bond on file (see2. A Drilling Plan Item 20 above).3. A surface Use Plan ( if location is on National Forest System Lands, 5. Operatorcertification.

the SUPO shall be flied with the appropriateForest Service Office) 6. Such other site specificinformation and/or plans as may be required by theauthorizedoficer.

SIGNED , Name (printedityped)Jan Nelson DATE 09/10/2008

TITLE Regulatory Affairs

(This space for Federal or State office use}

PERMITNO. APPROVALDATE -

AppHeadon approval does not warrant or ce!¾fy theappHeant holds any legal or equiable tlie lo those righis in the subject lease which Would enSUo the appHoant to conduct operadens thereon

CONDITIONSOF APPROVAL,IFANY: CONDITl0NSOFAPPROVAI.ATTACHEDAselstantFleidManager

APPROVED Ti &MineralRe rees DATE /*See structions On Reverse Sid. VERNALFIELDOFFICE

NOS 7 * o ""°''" "°n 1001, makes It a crime for any person knowingly and willfullyto make to any department or agency of the

any falso, fictitious or fraud n o reseE"'dusas to any mater within its jurisdiction CONROBM.AFMSS# 07¾/994 JAN25 2010 NOTICEOFAPPROVAL

DIV.OFOIL,GAS&

Company: Well No: API No:

UNITED STATES DEPARTMENT OF THE INTERIOR BUREAU OF LAND MANAGEMENT

VERNAL FIELD OFFICE 170 South 500 East VERNAL, UT 84078 (435) 781-4400

CONDITIONS OF APPROVAL FOR APPLICATION FOR PERMIT TO DRILL

Questar Exploration & Production, Co Location: NBZ 80-29-8-24 Lease No:

SENE,Sec.29,T8S,R24E UTU-77301

43-047 -40361 Agreement: Big Valley Unit

OFFICE NUMBER: (435) 781-4400

OFFICE FAX NUMBER: (435) 781-3420

A COPY OF THESE CONDITIONS SHALL BE FURNISHED TO YOUR FIELD REPRESENTATIVE TO INSURE COMPLIANCE

All lease and/or unit operations are to be conducted in such a manner that full compliance is made with the applicable laws, regulations (43 CFR Part 3160), and this approved Application for Permit to Drill including Surface and Downhole Conditions of Approval. The operator is considered fully responsible for the actions of his subcontractors. A copy of the approved APD must be on location during construction, drilling, and completion operations. This permit is approved for a two (2) year period, or until lease expiration, whichever occurs first. An additional extension, up to two (2) years, may be applied for by sundry notice prior to expiration.

NOTIFICATION REQUIREMENTS

Location Construction - Forty-Eight (48) hours prior to construction of location and (Notify Environmental Scientist) access roads.

Location Completion - Prior to moving on the drilling rig. (Notify Environmental SCientist)

-------

Spud Notice - Twenty-Four (24) hours prior to spudding the well. (Notify Petroleum Engineer)

Casing String & Cementing - Twenty-Four (24) hours prior to running casing and (Notify Supv. Petroleum Tech.) cementing all casing strings to: ut vn [email protected].

""--- "~------"----

BOP & Related Equipment Tests - Twenty-Four (24) hours prior to initiating pressure tests. (Notify Supv. Petroleum Tech.)

I

First Production Notice - Within Five (5) business days after new well begins or ~ (Notify Petroleum Engineer) production resumes after well has been off production for

more than ninety (90) days.

I

e eUNITED STATES DEPARTMENT OF THE INTERIOR

BUREAU OF LAND MANAGEMENT• VERNAL FIELD OFFICE

170 South 500 East VERNAL, UT 84078 (435) 781-4400

CONDITIONSOF APPROVAL FOR APPLICATION FOR PERMIT TO DRILL

Company: Questar Exploration & Production, Co Location: SENE, Sec. 29, T8S, R24EWell No: NBZ 8D-29-8-24 Lease No: UTU-77301API No: 43-047-40361 Agreement: Big Valley Unit

OFFICE NUMBER: (435) 781-4400

OFFICE FAX NUMBER: (435) 781-3420

A COPY OF THESE CONDITIONSSHALL BE FURNISHEDTO YOURFIELD REPRESENTATIVE TO INSURE COMPLIANCE

AIIlease and/or unit operations are to be conducted in such a manner that full compliance is made with the applicablelaws, regulations (43 CFR Part 3160), and this approved Application for Permit to Drill including Surface andDownhole Conditions of Approval. The operator is considered fully responsible for the actions of his subcontractors.A copy of the approved APD must be on location during construction, drilling, and completion operations. Thispermit is approved for a two (2) year period, or until lease expiration, whichever occurs first. An additionalextension, up to two (2) years, may be applied for by sundry notice prior to expiration.

NOTIFICATION REQUIREMENTS

Location Construction - Forty-Eight (48) hours prior to construction of location and(Notify Environmental Scientist) access roads.

Location Completion - Prior to moving on the drilling rig.(Notify Environmental Scientist)

Spud Notice - Twenty-Four (24) hours prior to spudding the well.(Notify Petroleum Engineer)

Casing String &Cementing - Twenty-Four (24) hours prior to running casing and(Notify Supv. Petroleum Tech.) cementing all casing strings to: ut vn [email protected].

BOP & Related Equipment Tests - Twenty-Four (24) hours prior to initiating pressure tests.(Notify Supv. Petroleum Tech.)

First Production Notice - Within Five (5) business days after new well begins or(Notify Petroleum Engineer) production resumes after well has been off production for

more than ninety (90)

SURFACE USE PROGRAM CONDITIONS OF APPROVAL (COAs)

Page 2 of 7 Well: NBZ 80-29-8-24

12/17/2009

• All new and replacement internal combustion gas field engines of less than or equal to 300 designrated horsepower must not emit more than 2 gms of NOx per horsepower-hour. This requirement does not apply to gas field engines of less than or equal to 40 design-rated horsepower.

• All and replacement internal combustion gas field engines of greater than 300 design rated horsepower must not emit more than 1.0 gms of NOx per horsepower-hour.

• If there is an active Gilsonite mining operation within 2 miles of the well location, operator shall notify the Gilsonite operator at least 48 hours prior to any blasting during construction.

• If paleontological materials are uncovered during construction, the operator is to immediately stop work and contact the Authorized Officer (AO). A determination will be made by the AO as to what mitigation may be necessary for the discovered paleontologic material before construction can continue.

• During operations, if any vertebrate paleontological resources are discovered, all operations affecting such sites shall be immediately suspended, and all discoveries shall be left intact until authorized to proceed by the Authorized Officer. The appropriate Authorized Officer of the Vernal BlM office shall be notified within 48 hrs of the discovery, and a decision as to the preferred alternative/course of action will be rendered.

• As per e-mail received 9/14/09, the operator has committed to not construct or drill from March 1-July 15 to protect black-footed ferrets during the breeding season.

O OPage 2 of 7

Well: NBZ 8D-29-8-2412/17/2009

SURFACE USE PROGRAMCONDITIONS OF APPROVAL (COAs)

• AIInew and replacement internal combustion gas field engines of less than or equal to 300 design-rated horsepower must not emit more than 2 gms of NOxper horsepower-hour. This requirementdoes not apply to gas field engines of less than or equal to 40 design-rated horsepower.

• All and replacement internal combustion gas field engines of greater than 300 design ratedhorsepower must not emit more than 1.0 gms of NOxper horsepower-hour.

• Ifthere is an active Gilsonite miningoperation within2 miles of the well location, operator shallnotifythe Gilsonite operator at least 48 hours prior to any blasting during construction.

• If paleontological materials are uncovered during construction, the operator is to immediately stopwork and contact the Authorized Officer (AO). A determination will be made by the AO as to whatmitigationmay be necessary for the discovered paleontologic material before construction cancontinue.

• During operations, if any vertebrate paleontological resources are discovered, all operationsaffectingsuch sites shallbe immediately suspended, and all discoveries shall be left intact untilauthorized to proceed by the Authorized Officer. The appropriate Authorized Officer of the VernalBLMoffice shall be notifiedwithin48 hrs of the discovery, and a decision as to the preferredalternative/course of action willbe rendered.

• As per e-mail received 9/14/09, the operator has committed to not construct or drill from March 1-July 15 to protect black-footed ferrets during the breeding

DOWNHOLE PROGRAM CONDITIONS OF APPROVAL (COAs)

SITE SPECIFIC DOWNHOLE COAs:

QEP COAs Downhole


12/17/2009

• The operator is required to use '10,000' psi annular preventer for the specified BOP 10M system.

• A casing shoe integrity test shall be performed before drilling more than twenty feet below the casing shoe on the intermediate casing.

• Oil shall not be used in the water based mud system without prior approval. Written request for approval shall be required;

• Intermediate casing 7" cement shall be brought up and into the surface casing shoe. The minimum cement top is 300 ft above the surface casing shoe.

• Production casing cement shall be brought up and into the intermediate casing shoe 7". The minimum cement top is 300 ft above the intermediate casing shoe.

• A Gamma Ray well Log shall be run from the well Total Depth to the surface. A copy of the Gamma Ray well Log shall be submitted to the BLM Vernal Field Office.

QEP Drilling Site Specific COAs Special Drilling Operations, air/gas drilling (drilling surface hole to 2,200 ft)

• All requirements will be adhered to covering air/gas drilling operations as described in Onshore Order #2 III. E. 1. Drilling Operations, Special Drilling Operations, air/gas drilling. variance(s) to Onshore Order #2 Drilling Operations III. E.

- requirement for rotating head equipment - requirement waived for rotating head equipment

substitution of rotating head equipment with a diverter bowl equipment (drilling without back pressure)

• A variance is granted for Onshore Order #2 Drilling Operations III. E. "Blooie line discharge 1 00 feet from well bore and securely anchored" Blooie .Iine can be 35 feet. All requirements will be adhered to covering air/gas drilling operations as described in Onshore Order #2 III. E. 1. Drilling Operations, Special Drilling Operations, air/gas drilling.

All provisions outlined in Onshore Oil & Gas Order #2 Drilling Operations shall be strictly adhered to. The following items are emphasized:

DRILLING/COMPLETION/PRODUCING OPERATING STANDARDS

O OPage 3 of 7

Well: NBZ8D-29-8-2412/17/2009

DOWNHOLE PROGRAMCONDITIONS OF APPROVAL (COAs)

SITE SPECIFIC DOWNHOLE COAs:

QEP COAs Downhole

• The operator is required to use '10,000' psi annular preventer for the specified BOP 10M system.

• A casing shoe integrity test shall be performed before drilling more than twentyfeet below thecasing shoe on the intermediate casing.

• Oil shall not be used in the water based mud system without prior approval. Written request forapproval shall be required.

• Intermediate casing 7" cement shall be brought up and into the surface casing shoe. The minimumcement top is 300 ft above the surface casing shoe.

• Production casing cement shall be brought up and into the intermediate casing shoe 7". Theminimumcement top is 300 ft above the intermediate casing shoe.

• A Gamma Ray well Log shall be run from the well Total Depth to the surface.A copy of the Gamma Ray well Log shall be submitted to the BLMVernal Field Office.

QEP Drilling Site Specific COAsSpecial Drilling Operations, air/gas drilling (drilling surface hole to 2,200 ft)

• AIIrequirements will be adhered to covering air/gas drilling operations as described in OnshoreOrder #2 III. E. 1. Drilling Operations, Special Drilling Operations, air/gas drilling.variance(s) to Onshore Order #2 Drilling Operations III. E.

- requirement for rotating head equipment- requirement waived for rotating head equipment

substitution of rotating head equipment with a diverter bowl equipment (drilling without backpressure)

• A variance is granted for Onshore Order #2 Drilling Operations III. E. "Blooie line discharge 100 feetfrom well bore and securely anchored" Blooie line can be 35 feet.All requirements will be adhered to covering air/gas drilling operations as described in OnshoreOrder #2 III.E. 1. DrillingOperations, Special Drilling Operations, air/gas drilling.

AII provisions outlined in Onshore Oil & Gas Order #2 Drilling Operations shall be strictly adheredto. The following items are emphasized:

DRILLINGICOMPLETIONIPRODUCING OPERATING

of7 Well: NBZ 8D-29-8-24

12/17/2009

• The spud date and time shall be reported orally to Vernal Field Office within 24 hours of spudding.

• Notify Vernal Field Office Supervisory Petroleum Engineering Technician at least 24 hours in advance of casing cementing operations and BOPE & casing pressure tests.

• All requirements listed in Onshore Order #2 'III. E. Special Drilling Operations are applicable for air drilling of surface hole.

• Blowout prevention equipment (BOPE) shall remain in use until the well is completed or abandoned. Closing unit controls shall remain unobstructed and readily accessible at all times. Choke manifolds shall be located outside of the rig substructure.

• All BOPE components shall be inspected daily and those inspections shall be recorded in the daily drilling report. Components shall be operated and tested as required by Onshore Oil & Gas Order No.2 to insure good mechanical working order. All BOPE pressure tests shall be performed by a test pump with a chart recorder and NOT by the rig pumps. Test shall be reported in the driller's log.

• BOP drills shall be initially conducted by each drilling crew within 24 hours of drilling out from under the surface casing and weekly thereafter as specified in Onshore Oil & Gas Order No.2.

• Casing pressure tests are required before drilling out from under all casing strings set and cemented in place.

• No aggressive/fresh hard-banded drill pipe shall be used within casing.

• Cement baskets shall not be run on surface casing.

• The operator must report all shows of water or water-bearing sands to the BlM. If flowing water is encountered it must be sampled, analyzed, and a copy of the analyses submitted to the BlM Vernal Field Office.

• The operator must report encounters of all non oil & gas mineral resources (such as Gilsonite, tar sands, oil shale, trona, etc.) to the Vernal Field Office, in writing, within 5 working days of each encounter. Each report shall include the well name/number, well location, date and depth (from KB or Gl) of encounter, vertical footage of the encounter and, the name of the person making the report (along with a telephone number) should the BlM need to obtain additional information.

• A complete set of angular deviation and directional surveys of a directional well will be submitted to the Vernal BlM office engineer within 30 days of the completion of the well.

• While actively drilling, chronologic drilling progress reports shall be filed directly with the BlM, Vernal Field Office on a weekly basis in sundry, letter format or e-mail to the Petroleum Engineers until the well is completed.

• A cement bond log (CBl) will be run from the production casing shoe to the top of cement and shall be utilized to determine the bond quality for the production casing. Submit a field copy of the CBl to this office.

O OPage 4 of 7

Well: NBZ 8D-29-8-2412/17/2009

• The spud date and timeshall be reported orallyto Vernal Field Office within24 hours of spudding.

• Notify Vernal Field OfficeSupervisory Petroleum Engineering Technician at least 24 hours inadvance of casinq cementinq operations and BOPE & casinq pressure tests.

• All requirements listed in Onshore Order #2 III. E. Special Drilling Operations are applicable for airdrilling of surface hole.

• Blowout prevention equipment (BOPE) shall remain in use untilthe well is completed orabandoned. Closing unit controls shall remain unobstructed and readily accessible at all times.Choke manifolds shall be located outside of the rig substructure.

• AIIBOPE components shall be inspected daily and those inspections shall be recorded in the dailydrilling report. Components shall be operated and tested as required by Onshore Oil& Gas OrderNo. 2 to insure good mechanical working order. All BOPE pressure tests shall be performed by atest pump with a chart recorder and by the rig pumps. Test shall be reported in the driller'slog.

• BOP drills shall be initially conducted by each drilling crew within24 hours of drilling out from underthe surface casing and weekly thereafteras specified in Onshore Oil & Gas Order No. 2.

• Casing pressure tests are required before drilling out from under all casing strings set andcemented in place.

• No aggressivelfresh hard-banded drill pipe shall be used within casing.

• Cement baskets shall not be run on surface casing.

• The operator must report all shows of water or water-bearing sands to the BLM. Ifflowing water isencountered it must be sampled, analyzed, and a copy of the analyses submitted to the BLMVernalField Office.

• The operator must report encounters of all non oil& gas mineral resources (such as Gilsonite, tarsands, oilshale, trona, etc.) to the Vernal Field Office, in writing, within 5 working days of eachencounter. Each report shall include the well namelnumber, well location, date and depth (from KBor GL) of encounter, vertical footage of the encounter and, the name of the person making thereport (along with a telephone number) should the BLM need to obtain additional information.

• A complete set of angular deviation and directional surveys of a directional wellwill be submitted tothe Vernal BLMoffice engineer within30 days of the completion of the well.

• While actively drilling, chronologic drilling progress reports shall be filed directly with the BLM,Vernal Field Office on a weekly basis in sundry, letter format or e-mail to the Petroleum Engineersuntilthe well is completed.

• A cement bond log (CBL) will be run from the production casing shoe to the top of cement and shallbe utilized to determine the bond quality for the production casing. Submit a field copy of the CBLto this

of? Well: NBZ 80-29-8-24

12/17/2009

• Please submit an electronic copy of all other logs run on this well in lAS format to [email protected]. This submission will supersede the requirement for submittal of paper logs to the BlM.

• There shall be no deviation from the proposed drilling, completion, and/or workover program as approved. Safe drilling and operating practices must be observed. Any changes in operation must have prior approval from the BlM Vernal Field Office.

O OPage 5 of 7

Well: NBZ 8D-29-8-2412/17/2009

• Please submit an electronic copy of all other logs run on this well in LAS format [email protected]. This submission will supersede the requirement for submittalof paper logs to the BLM.

• There shall be no deviation from the proposed drilling, completion, and/or workover program asapproved. Safe drilling and operating practices must be observed. Any changes in operation musthave prior approval from the BLMVernal Field

OPERATING REQUIREMENT REMINDERS:


12/17/2009

• All wells, whether drilling, producing, suspended, or abandoned, shall be identified in accordance with 43 CFR 3162.6. There shall be a sign or marker with the name of the operator, lease serial number, well number, and surveyed description of the well.

• In accordance with 43 CFR 3162.4-3, this well shall be reported on the "Monthly Report of Operations" (Oil and Gas Operations Report «OGOR» starting with the month in which operations commence and continue each month until the well is physically plugged and abandoned. This report shall be filed in duplicate, directly with the Minerals Management Service, P.O. Box 17110, Denver, Colorado 80217-0110, or call 1-800-525-7922 (303) 231-3650 for reporting information.

• Should the well be successfully completed for production, the BlM Vernal Field office must be notified when it is placed in a producing status. Such notification will be by written communication and must be received in this office by not later than the fifth business day following the date on which the well is placed on production. The notification shall provide, as a minimum, the following informational items:

o Operator name, address, and telephone number.

o Well name and number.

o Well location (XX, Sec., Twn, Rng, and P.M.).

o Date well was placed in a producing status (date of first production for which royalty will be paid).

o The nature of the well's production, (Le., crude oil, or crude oil and casing head gas, or natural gas and entrained liquid hydrocarbons).

o The Federal or Indian lease prefix and number on which the well is located; otherwise the non-Federal or non-Indian land category, i.e., State or private.

o Unit agreement and/or participating area name and number, if applicable.

o Communitization agreement number, if applicable.

• Any venting or flaring of gas shall be done in accordance with Notice to lessees (NTl) 4A and needs prior approval from the BlM Vernal Field Office.

• All undesirable events (fires, accidents, blowouts, spills, discharges) as specified in NTl 3A will be reported to the BlM, Vernal Field Office. Major events, as defined in NTl3A, shall be reported verbally within 24 hours, followed by a written report within 15 days. "Other than Major Events" will be reported in writing within 15 days. "Minor Events" will be reported on the Monthly Report of Operations and Production.

• Whether the well is completed as a dry hole or as a producer, 'Well Completion and Recompletion Report and log" (BlM Form 3160-4) shall be submitted not later than 30 days after completion of the well or after completion of operations being performed, in accordance with 43 CFR 3162.4-1. Two copies of all logs run, core descriptions, and all other surveys or data obtained and compiled during the drilling, workover, and/or completion operations, shall be filed on BlM Form 3160-4.

O OPage 6 of 7

Well: NBZ 8D-29-8-2412/17/2009

OPERATINGREQUIREMENT REMINDERS:

• AIIwells, whether drilling, producing, suspended, or abandoned, shall be identified in accordancewith 43 CFR 3162.6. There shall be a sign or marker with the name of the operator, lease serialnumber, well number, and surveyed description of the well.

• In accordance with 43 CFR 3162.4-3, this well shall be reported on the "Monthly Report ofOperations" (Oiland Gas Operations Report ((OGOR)) starting with the month in which operationscommence and continue each month untilthe well is physically plugged and abandoned. Thisreport shall be filed in duplicate, directly with the Minerals Management Service, P.O. Box 17110,Denver, Colorado 80217-0110, or call 1-800-525-7922 (303) 231-3650 for reporting information.

• Should the well be successfully completed for production, the BLMVernal Field office must benotifiedwhen it is placed in a producing status. Such notificationwill be by written communicationand must be received in this office by not later than the fifth business day following the date onwhich the well is placed on production. The notificationshall provide, as a minimum,the followinginformational items:

o Operator name, address, and telephonenumber.

o Well name and number.

o Well location (¼¼,Sec., Twn, Rng, and P.M.).

o Date wellwas placed in a producing status (date of first production for which royaltywill bepaid).

o The nature of the well's production, (i.e., crude oil,or crude oiland casing head gas, ornatural gas and entrained liquid hydrocarbons).

o The Federal or Indian lease prefix and number on which the well is located; otherwise thenon-Federal or non-Indian land category, i.e., State or private.

o Unit agreement and/or participating area name and number, if applicable.

o Communitizationagreement number, if applicable.

• Any venting or flaring of gas shall be done in accordance with Notice to Lessees (NTL) 4A andneeds prior approval from the BLMVernal Field Office.

• All undesirable events (fires, accidents, blowouts, spills, discharges) as specified in NTL 3A willbereported to the BLM,Vernal Field Office. Major events, as defined in NTL3A, shall be reportedverbally within 24 hours, followed by a written report within 15 days. "Other than Major Events" willbe reported in writing within 15 days. "Minor Events" will be reported on the Monthly Report ofOperations and Production.

• Whether the well is completed as a dry hole or as a producer, "Well Completion and RecompletionReport and Log" (BLM Form 3160-4) shall be submitted not later than 30 days after completion ofthe well or after completion of operations being performed, in accordance with 43 CFR 3162.4-1.Two copies of all logs run, core descriptions, and all other surveys or data obtained and compiledduring the drilling, workover, and/or completion operations, shall be filed on BLM Form

of7 Well: NBZ 80-29-8-24

12/17/2009

Submit with the well completion report a geologic report including, at a minimum, formation tops, and a summary and conclusions. Also include deviation surveys, sample descriptions, strip logs, core data, drill stem test data, and results of production tests if performed. Samples (cuttings, fluid, and/or gas) shall be submitted only when requested by the BlM, Vernal Field Office.

• All off-lease storage, off-lease measurement, or commingling on-lease or off-lease, shall have prior written approval from the BlM Vernal Field Office.

• Oil and gas meters shall be calibrated in place prior to any deliveries. The BlM Vernal Field Office Petroleum Engineers will be provided with a date and time for the initial meter calibration and all future meter proving schedules. A copy of the meter calibration reports shall be submitted to the BlM Vernal Field Office. All measurement facilities will conform to the API standards for liquid hydrocarbons and the AGA standards for natural gas measurement. All measurement points shall be identified as the point of sale or allocation for royalty purposes.

• A schematic facilities diagram as required by Onshore Oil & Gas Order No. 3 shall be submitted to the BlM Vernal Field Office within 30 days of installation or first production, whichever occurs first. All site security regulations as specified in Onshore Oil & Gas Order No.3 shall be adhered to. All product lines entering and leaving hydrocarbon storage tanks will be effectively sealed in accordance with Onshore Oil & Gas Order No.3.

• Any additional construction, reconstruction, or alterations of facilities, including roads, gathering lines, batteries, etc., which will result in the disturbance of new ground, shall require the filing of a suitable plan and need prior approval of the BlM Vernal Field Office. Emergency approval may be obtained orally, but such approval does not waive the written report requirement.

• No location shall be constructed or moved, no well shall be plugged, and no drilling or workover equipment shall be removed from a well to be placed in a suspended status without prior approval of the BlM Vernal Field Office. If operations are to be suspended for more than 30 days, prior approval of the BlM Vernal Field Office shall be obtained and notification given before resumption of operations.

• Pursuant to Onshore Oil & Gas Order No.7, this is authorization for pit disposal of water produced from this well for a period of gO days from the date of initial production. A permanent disposal method must be approved by this office and in operation prior to the end of this gO-day period. In order to meet this deadline, an application for the proposed permanent disposal method shall be submitted along with any necessary water analyses, as soon as possible, but no later than 45 days after the date of first production. Any method of disposal which has not been approved prior to the end of the authorized gO-day period will be considered as an Incident of Noncompliance and will be grounds for issuing a shut-in order until an acceptable manner for disposing of said water is provided and approved by this office.

• Unless the plugging is to take place immediately upon receipt of oral approval, the Field Office Petroleum Engineers must be notified at least 24 hours in advance of the plugging of the well, in order that a representative may witness plugging operations. If a well is suspended or abandoned, all pits must be fenced immediately until they are backfilled. The "Subsequent Report of Abandonment" (Form BlM 3160-5) must be submitted within 30 days after the actual plugging of the well bore, showing location of plugs, amount of cement in each, and amount of casing left in hole, and the current status of the surface restoration.

e ePage 7 of 7

Well: NBZ 8D-29-8-2412/17/2009

Submit with the well completion report a geologic report including, at a minimum,formation tops,and a summary and conclusions. Also include deviation surveys, sample descriptions, strip logs,core data, drill stem test data, and results of production tests if performed. Samples (cuttings, fluid,and/or gas) shall be submitted onlywhen requested by the BLM, Vernal Field Office.

• All off-lease storage, off-lease measurement, or comminglingon-lease or off-lease, shall have priorwritten approval from the BLMVernal Field Office.

• Oil and gas meters shall be calibrated in place prior to any deliveries. The BLMVernal Field OfficePetroleum Engineers willbe provided with a date and timefor the initial meter calibration and allfuture meter proving schedules. A copy of the meter calibration reports shall be submitted to theBLMVernal Field Office. All measurement facilitieswill conform to the API standards for liquidhydrocarbons and the AGA standards for natural gas measurement. AIImeasurement points shallbe identified as the point of sale or allocation for royalty purposes.

• A schematic facilities diagram as required by Onshore Oil & Gas Order No. 3 shall be submitted tothe BLMVernal Field Office within 30 days of installation or first production, whichever occurs first.All site security regulations as specified in Onshore Oil&Gas Order No. 3 shall be adhered to. Allproduct lines entering and leaving hydrocarbon storage tanks willbe effectivelysealed inaccordance with Onshore Oil& Gas Order No. 3.

• Any additional construction, reconstruction, or alterations of facilities, including roads, gatheringlines, batteries, etc., which willresult in the disturbance of new ground, shall require the filing of asuitable plan and need prior approval of the BLMVernal Field Office. Emergency approval may beobtained orally, but such approval does not waive the written report requirement.

• No location shall be constructed or moved, no well shall be plugged, and no drilling or workoverequipment shall be removed from a well to be placed in a suspended status without prior approvalof the BLMVernal Field Office. Ifoperations are to be suspended for more than 30 days, priorapproval of the BLMVernal Field Officeshall be obtained and notificationgiven before resumptionof operations.

• Pursuant to Onshore Oil & Gas Order No. 7, this is authorization for pit disposal of water producedfrom thiswell for a period of 90 days from the date of initial production. A permanent disposalmethod must be approved by this officeand in operation prior to the end of this 90-day period. Inorder to meet this deadline, an application for the proposed permanent disposal method shall besubmitted along with any necessary water analyses, as soon as possible, but no later than 45 daysafter the date of first production. Any method of disposal which has not been approved prior to theend of the authorized 90-day period will be considered as an Incident of Noncompliance and will begrounds for issuing a shut-in order untilan acceptable manner for disposing of said water isprovided and approved by this office.

• Unless the plugging is to take place immediately upon receipt of oral approval, the Field OfficePetroleum Engineers must be notifiedat least 24 hours in advance of the plugging of the well, inorder that a representative may witness plugging operations. If a well is suspended or abandoned,all pits must be fenced immediately untilthey are backfilled. The "Subsequent Report ofAbandonment" (Form BLM3160-5) must be submitted within30 days after the actual plugging ofthe well bore, showing location of plugs, amount of cement in each, and amount of casing left inhole, and the current status of the surface

conf ntiai. - utah · 11002 e. 17500 s. vernal, utah 84078 phone 435-781-4331 fax 435-781-4395 d 4....

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