y:commission 0marchready to distillfor ...aogc2.state.ar.us/hearing applications...

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

* Fayetteville Office

† Also Licensed in Oklahoma

DAILY & WOODSA PROFESSIONAL LIMITED LIABILITY COMPANY

ATTORNEYS AT LAW

KMW BUILDING58 SOUTH SIXTH STREET

P.O. BOX 1446FORT SMITH, AR 72902

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

______________

COMMERCE PARK II BUILDING2049 EAST JOYCE BOULEVARD, STE. 301

FAYETTEVILLE, AR 72703TELEPHONE (479) 582-0361

FAX (479) 251-8111

JAMES E. WESTPHILLIP E. NORVELL *

DALE CARLTON *

OF COUNSEL

_______

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

March 9, 2010

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

Re: ORDER REFERENCE NO. 186-2010-03Application of Max Extract Technologies, LLC for Integration of All UnleasedMineral Interests and Non-consenting Working Interests in a unit described asLots 15 through 22 and the South Half of Section 4, Township 4 North, Range 30West, Scott County, Arkansas

Commissioners:

Max Extract Technologies, LLC, P.O. Box 184, Fort Smith, AR 72902, hereby appliesto the Arkansas Oil and Gas Commission for the integration of all unleased mineralinterests and non-consenting working interests in its proposed drilling unit which isdescribed above.

1. The proposed drilling unit is an established unit as defined in paragraph (f) ofArkansas Oil and Gas Commission General Rule B-44. Applicant proposes to drill avertical well at a location which is 4,000 feet from the South Line and 2,000 feet fromthe East line of Lot 16, Section 4, Township 4 North, Range 30 West. The proposedwell will be drilled to an approximate depth of 4,000 feet to test the Mansfield Formationand any intervening formations. Applicant has obtained one or more oil and gas leasescovering its proposed drill site.

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

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

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

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

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

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

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

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

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

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

lease, on an AAPL lease form, for a bonus consideration of $50.00per net mineral acre to be paid as fair and reasonablecompensation in lieu of the right to participate in the workinginterest in said unit, and that said oil and gas lease provide for a1/8 royalty on oil and gas.

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

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

Applicant further requests that said mineral owners be required to elect within fifteen(15) days after issuance of the Commission's order which method will be pursued in thedevelopment of the above described unit, and, in the event no election is made, that itshall be assumed that the owner of said unleased mineral interest has elected to accepta bonus of $50.00 per net mineral acre as compensation in lieu of the right toparticipate in the working interest in said unit, and with the royalty to be 1/8.

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

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

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

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

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

Very truly yours,

Thomas A. Dailyjmt

Exhibit “A”

List of Interested Parties

Max Extract Technologies, LLC, Applicant Lots 15 through 22 and the South Half of Section 4-T4N-R30W

Scott County, Arkansas Mineral Owners: Hershey, Lois Jean Hershey, widow of Clarence L Hershey Holitik, Dr. George F. Holitik, Jr. and Connie Holitik Minerals & Royalty, Inc., c/o: Mark S. Killdorf Smoot, Robert E Smoot and Nancy Smoot Wright, Sally Smoot Wright and Dr. A Hugh Wright W.W. Harvey Trust A, JPMorgan Chase Bank, Trustee of W.W. Harvey Trust A W.W. Harvey Trust B, JPMorgan Chase Bank, Trustee of W.W. Harvey Trust B Barbara Jane Harvey, individually, Barbara Jane Harvey and Sue Harvey Secker, Successor Co-Trustees of the Barbara Jane Harvey Trust, c/o: JPMorgan Chase Bank, Trust Department Sue Harvey Secker, a single person, individually, and Sue Harvey Secker and Barbara Jane Harvey, Successor Co-Trustees of the Sue Harvey Secker Testamentary Trust, c/o: JPMorgan Chase Bank, Trust Department K. M. McClain Trust, JPMorgan Chase Bank, Trustee of the K. M. McClain Trust Schumacher Partners II, L.P. Wheelock, John N Wheelock, Jr. Trust, and Marian B. Wheelock, widow of John N. Wheelock, Jr. Leasehold Owners Highland Oil and Gas LLC Billie J. Brown, Trustee of the B.J. Brown & Melba Brown 1999 Revocable Trust K. M. McClain Trust Curative: Unknown Heirs of Clarence L Hershey, deceased Unknown Heirs of Otis Gardenhire, deceased Unknown Heirs of Ila Crowley, deceased Unknown Heirs of W. W. Harvey, deceased Unknown Heirs of John N. Wheelock, Jr., deceased

Exhibit “B”

RESUME OF EFFORTS

Max Extract Technologies, LLC, Operator South Half of Section 4-T4N-R30W

Scott County, Arkansas Application for Integration of Unleased Mineral Interest Owners and Leasehold Owners Mineral Owner: Hershey, Lois Jean Hershey, widow of Clarence L Hershey, and the

heirs of Clarence L Hershey, deceased 11/23/2009 Landman mailed lease proposal to Lois Jean Hershey, for 1/8 royalty, $25 per acre

bonus, 5 year term. 1/08/2010 Landman mailed second lease proposal to Lois Jean Hershey, for 1/8 royalty, $50

per acre bonus, 3 year term. 1/18/2010 Landman called Lois Hershey and left a message concerning the mailed lease

proposal. 1/19/2010 Landman called and talked with Lois Jean Hershey concerning the mailed lease

proposal. She said she received the lease proposal, and had talked with an attorney in Kansas and wanted to add a lot of provisions to the lease form. After talking with her about all the additional provisions she wanted in the lease form, she said she said she still didn’t want to lease at this time.

2/08/2010 Landman mailed another lease proposal to Lois Jean Hershey, for 1/8 royalty, $50

per acre bonus, 3 year term. 3/05/2010 Mailed well proposal letter with options to lease, participate, or non-consent said

well proposal, along with Authority for Expenditure for said well. Mineral Owner: Holitik, Dr. George F. Holitik, Jr. and Connie Holitik 11/24/2009 Landman mailed lease proposal to George F. Holitik, Jr. and Connie Holitik for 1/8

royalty, $25 per acre bonus, 5 year term. 1/07/2010 Landman mailed second lease proposal to George F. Holitik, Jr. and Connie Holitik

for 1/8 royalty, $50 per acre bonus, 3 year term. 1/18/2010 Landman called George F. Holitik, Jr.and left a message concerning the mailed

lease proposal. 1//19/2010 Landman called and talked with Dr. George F. Holitik, Jr.. He said he thought the

lands were held by productions by an older lease that was taken years ago. 1/27/2010 Landman called George F. Holitik, Jr., and told George Holitik him that reviewed

the old lease, and that the older lease had a Pugh Clause in the body of the lease, and after the primary term, the acreage expired outside of producing units.

1/28/2010 Landman called and talked with Dr. George F. Holitik, Jr.. He said he said he

would consider leasing for $150 per acre bonus, and a one-fourth royalty. 2//09/2010 Landman mailed another lease proposal to Dr. George F. Holitik, Jr. and Connie

Holitik for 1/8 royalty, $50 per acre bonus, 3 year term.

South Half of Section 4-T4N-R30W 1

3/05/2010 Mailed well proposal letter with options to lease, participate, or non-consent said well proposal, along with Authority for Expenditure for said well.

Mineral Owner: Minerals & Royalty, Inc., c/o: Mark S. Killdorf 11/19/2009 Landman mailed lease proposal to Minerals & Royalty, Inc., for 1/8 royalty, $25

per acre bonus, 5 year term. 12/10/2009 Called Minerals & Royalty, Inc. and left a message concerning the lease proposal

that was previously mailed. 1/11/2010 Landman mailed second lease proposal to Minerals & Royalty, Inc., for 1/8 royalty,

$50 per acre bonus, 3 year term. 2/03/2010 Spoke with mark Keldorf of Minerals & Royalty, Inc. concerning the amount of

acreage we had been crediting him with. Using his materials, calculated and prepared spreadsheet for his review.

2/09/2010 Landman mailed another lease proposal to Minerals & Royalty, Inc., for 1/8

royalty, $50 per acre bonus, 3 year term. 2/16/2010 Called and left message for Mark Kelldorf concerning our offer to lease. Mark

Kelldorf returned call and stated that he would be willing to lease for a 3/16th royalty and $10,000.00 lease bonus. Discussed that it would work out to be a little over $100.00/ac. And that we had thus far only paid $50.00/ac with a 1/8th royalty.

3/3/2010 Emailed Mark Kelldorf and reiterated our lease offer of $50.00/ac with 1/8th

royalty. Asked that he provide lessee information should he be able to lease his interest to another party for the terms he was requesting.

3/05/2010 Mailed well proposal letter with options to lease, participate, or non-consent said

well proposal, along with Authority for Expenditure for said well. Mineral Owner: Smoot, Robert E Smoot and Nancy Smoot 11/19/2009 Landman mailed lease proposal to Robert E Smoot and Nancy Smoot for 1/8

royalty, $25 per acre bonus, 5 year term. 1/08/2010 Landman mailed second lease proposal to Robert E Smoot and Nancy Smoot for

1/8 royalty, $50 per acre bonus, 3 year term. 1/18/2010 Landman searched internet sites and additional phone records for a phone number

for Robert E Smoot. Called different phone listed for Robert Smoot. 1/27/2010 Landman obtained sister’s phone number and spoke with her, concerning lease.

She gave Robert Smoot’s phone number, called and left message with Robert Smoot.

2/03/2010 Landman called for Robert Smoot, they said he was busy, and a message was left

stating that the lease was mailed for his review. 2/04/2010 Landman called for Robert Smoot, they said he was out of town, and a message

was left. 2/08/2010 Landman called and left a message on the phone machine. 2/09/2010 Mailed out a Proof of Death and Heirship on Hazel Smoot, to Robert Smoot. 2/18/2010 Landman called and talked with Robert Smoot, he said he would consider leasing

for $100 per acre bonus. 2/19/2010 Landman called and left a message with Robert Smoot, that his counter-offer was

not approved by our client, a that I would be mailing another lease proposal on terms previously mailed to him.


2/22/2010 Landman mailed another lease proposal to Robert E Smoot and Nancy Smoot, for 1/8 royalty, $50 per acre bonus, 3 year term.


well proposal, along with Authority for Expenditure for said well. Mineral Owner: Wright, Sally Smoot Wright and Dr. A Hugh Wright 11/23/2009 Landman mailed lease proposal to Sally Smoot Wright and Dr. A Hugh Wright for

1/8 royalty, $25 per acre bonus, 5 year term. 1/27/2010 Landman mailed second lease proposal to Sally Smoot Wright and Dr. A Hugh

Wright for 1/8 royalty, $50 per acre bonus, 3 year term. 1/18/2010 Landman called Dr. A Hugh Wright and left a message concerning the mailed lease

proposal. 1//19/2010 Landman called Dr. A Hugh Wright, secretary said he was out of town, and to call

back later. 1//27/2010 Landman called Dr. A Hugh Wright office, secretary said Dr. Wright no longer at

this business, that the current Doctor had the same last name. 1//22/2010 Landman called and talked with Sally Smoot Wright, she said they would consider

leasing, if her brother, Robert Smoot, would lease also. 2/19/2010 Landman mailed another lease proposal to Sally Smoot Wright and husband, A

Hugh Wright, for 1/8 royalty, $50 per acre bonus, 3 year term. 3/05/2010 Mailed well proposal letter with options to lease, participate, or non-consent said

well proposal, along with Authority for Expenditure for said well. Mineral Owner: W.W. Harvey Trust A, JPMorgan Chase Bank, Trustee of W.W. Harvey Trust A 11/23/2009 Landman mailed lease proposal to JPMorgan Chase Bank, Trustee of W.W. Harvey

Trust A, for 1/8 royalty, $25 per acre bonus, 5 year term. 1/26/2010 Landman mailed lease proposal to JPMorgan Chase Bank, Trustee of W.W. Harvey

Trust A, for 1/8 royalty, $50 per acre bonus, 3 year primary term. 1/27/2009 Emailed Jason Beck of JP Morgan Chase as Trustee to touch base concerning the

trusts interests. Email returned with counter offer and alternative lease form. Via email to Jason Beck, informed him that we were not authorized to amend our offer or lease form and that we would forward a well proposal to them for their consideration at some point in the future

2/18/2010 Landman mailed lease proposal to JPMorgan Chase Bank, Trustee of W.W. Harvey

Trust A, for 1/8 royalty, $50 per acre bonus, 3 year primary term. 3/05/2010 Mailed well proposal letter with options to lease, participate, or non-consent said

well proposal, along with Authority for Expenditure for said well. Mineral Owner: W.W. Harvey Trust B, JPMorgan Chase Bank, Trustee of W.W. Harvey Trust B 11/23/2009 Landman mailed lease proposal to JPMorgan Chase Bank, Trustee of W.W. Harvey

Trust B, for 1/8 royalty, $25 per acre bonus, 5 year term. 1/26/2009 Landman mailed lease proposal to JPMorgan Chase Bank, Trustee of W.W. Harvey

Trust B, for 1/8 royalty, $50 per acre bonus, 3 year primary term. 1/27/2009 Emailed Jason Beck of JP Morgan Chase as Trustee to touch base concerning the



2/18/2009 Landman mailed lease proposal to JPMorgan Chase Bank, Trustee of W.W. Harvey

Trust B, for 1/8 royalty, $50 per acre bonus, 3 year primary term. 3/05/2010 Mailed well proposal letter with options to lease, participate, or non-consent said

well proposal, along with Authority for Expenditure for said well. Mineral Owner: Harvey, Barbara Jane Harvey, individually, Barbara Jane Harvey and Sue Harvey

Secker, Successor Co-Trustees of the Barbara Jane Harvey Trust, c/o: JPMorgan Chase Bank, Trust Department

11/23/2009 Landman mailed lease proposal to Barbara Jane Harvey, individually, Barbara Jane

Harvey and Sue Harvey Secker, Successor Co-Trustees of the Barbara Jane Harvey Trust, for 1/8 royalty, $25 per acre bonus, 5 year term.


Harvey and Sue Harvey Secker, Successor Co-Trustees of the Barbara Jane Harvey Trust, for 1/8 royalty, $50 per acre bonus, 3 year primary term.

1/27/2009 Emailed Jason Beck of JP Morgan Chase as Trustee to touch base concerning the



Harvey and Sue Harvey Secker, Successor Co-Trustees of the Barbara Jane Harvey Trust, for 1/8 royalty, $50 per acre bonus, 3 year primary term.


well proposal, along with Authority for Expenditure for said well. Mineral Owner: Secker, Sue Harvey Secker, a single person, individually, and Sue Harvey Secker and

Barbara Jane Harvey, Successor Co-Trustees of the Sue Harvey Secker Testamentary Trust, c/o: JPMorgan Chase Bank, Trust Department

11/23/2009 Landman mailed lease proposal to Sue Harvey Secker, a single person,

individually, and Sue Harvey Secker and Barbara Jane Harvey, Successor Co-Trustees of the Sue Harvey Secker Testamentary Trust, for 1/8 royalty, $50 per acre bonus, 3 year primary term.



1/27/2009 Emailed Jason Beck of JP Morgan Chase as Trustee to touch base concerning the





well proposal, along with Authority for Expenditure for said well. Mineral Owner: K. M. McClain Trust , JPMorgan Chase Bank, Trustee of the K. M. McClain Trust 11/23/2009 Contacted Jason Beck of JP Morgan Chase as Trustee. Requested we send a lease

package for their review. Landman mailed lease proposal to JPMorgan Chase Bank, Trustee of the K. M. McClain Trust, for 1/8 royalty, $25 per acre bonus, 5 year term.


1/26/2009 Landman mailed lease proposal to JPMorgan Chase Bank, Trustee of the K. M.

McClain Trust, for 1/8 royalty, $50 per acre bonus, 3 year primary term. 1/27/2009 Emailed Jason Beck of JP Morgan Chase as Trustee to touch base concerning the


2/18/2009 Landman mailed lease proposal to JPMorgan Chase Bank, Trustee of the K. M.

McClain Trust, for 1/8 royalty, $50 per acre bonus, 3 year primary term. Mineral Owner: Schumacher Partners II, L.P. 11/23/2009 Landman mailed lease proposal to Schumacher Partners II, L.P., for 1/8 royalty,

$25 per acre bonus, 5 year term. 1/11/2010 Received a letter from Schumacher Partners II, L.P., advising they will consider

leasing or will elect to participate. Also, requested that we mail an AFE for Schumacher Partners review.

1/26/2010 Landman mailed lease proposal to Schumacher Partners II, L.P., for 1/8 royalty,

$50 per acre bonus, 3 year primary term. 2/05/2010 Received an email with a proposed lease form from W. Frank Pendleton, Manager

of Land with Schumacher Partners II, L.P. Mr. Pendleton said they will consider leasing for one year term, one-fourth royalty, and on their lease form.

2/06/2010 Emailed Frank Pendleton, with Schumacher Partners II, L.P., told him that we

would review their counter-proposal, and get with our client on their counter leasing terms.

2/18/2010 Landman mailed another lease proposal to Schumacher Partners II, L.P., for 1/8

royalty, $50 per acre bonus, 3 year primary term. Also, informed Frank Pendleton, with Schumacher Partners that this was the terms that our client would lease on, and that their lease form and counter terms were not approved by client.


well proposal, along with Authority for Expenditure for said well. Mineral Owner: Wheelock , John N Wheelock, Jr. Trust, and Marian B. Wheelock,

widow / or the heirs of John N. Wheelock, Jr., deceased 11/23/2009 Landman mailed lease proposal to John N Wheelock, Jr. Trust, and / or the heirs of

John N. Wheelock, Jr., deceased, for 1/8 royalty, $25 per acre bonus, 5 year term. 1/27/2010 Landman mailed second lease proposal to John N Wheelock, Jr. Trust for 1/8

royalty, $50 per acre bonus, 3 year term. 1/27/2010 Landman called for representative of John N Wheelock, Jr. Trust, concerning lease

proposal. 2/03/2010 Landman called for representative of John N Wheelock, Jr. Trust, and left a

message concerning lease proposal recently mailed. 2/05/2010 Landman called for representative of John N Wheelock, Jr. Trust, and left a

message concerning lease proposal recently mailed. 2/08/2010 Landman called and talked with secretary of John N Wheelock, Jr. Trust, she said

she would have John N Wheelock, III, review the lease proposal and get back with me with us on the lease proposal.



2/16/2010 John N Wheelock, III called and said he would lease, if we would give him a back-in 3.25 percent working interest after payout with also a one-eighth royalty on the lease, before and after payout. I informed him that he didn’t own enough minerals in the proposed production unit that would provide him with this high of a back-in.

2/16/2010 Called John N Wheelock, III, concerning leasing, he said he would lease for a one-

fourth royalty. I told him I would get back on his counter-offer. 2/19/2010 Landman mailed third lease proposal to John N Wheelock, Jr. Trust for 1/8 royalty,

$50 per acre bonus, 3 year term. Also, informed Mr. Wheelock, that this is the lease proposal approved by our client, Max Extract Technologies, LLC.

3/02/2010 John N Wheelock, III, called and requested that we make out the lease to John N

Wheelock, Jr. Trust and Marian B. Wheelock. I told him that it was not on record this way; however, I would revise the lease to add her name. He said he would probably participate. Also, informed Mr. Wheelock that our client didn’t approve us to lease for a ¼ royalty.

3/03/2010 Landman mailed another lease proposal to John N Wheelock, Jr. Trust and Marian

B. Wheelock for 1/8 royalty, $50 per acre bonus, 3 year term. 3/05/2010 Mailed well proposal letter with options to lease, participate, or non-consent said

well proposal, along with Authority for Expenditure for said well.

Leasehold Owners Leasehold Owner: Highland Oil and Gas, LLC. 3/05/2010 Mailed well proposal letter with options to lease, participate, or non-consent said

well proposal, along with Authority for Expenditure for said well. Leasehold Owner: K. M. McClain Trust 1/28/2009 Landman mailed a proposal to JPMorgan Chase Bank, Trustee of the K. M.

McClain Trust, offering to acquire their leasehold in the proposed production unit for $50 per acre bonus, or they can participate with their leasehold acreage.


well proposal, along with Authority for Expenditure for said well. Leasehold Owner: B. J. Brown and Melba Brown Revocable Trust, B. J. Brown, Trustee 3/05/2010 Mailed well proposal letter with options to lease, participate, or non-consent said

well proposal, along with Authority for Expenditure for said well. Curative: Unknown Heirs of Otis Gardenhire, deceased Unknown Heirs of Ila Crowley, deceased Unknown Heirs of W. W. Harvey, deceased Unknown Heirs of John N. Wheelock, Jr., deceased

EXHIBIT “C”Applicant’s statement regarding Operating Agreement

The applicant requests incorporation of the Model Form Joint Operating Agreement

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

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

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

insertions, if applicable:

NONE

y:commission 0marchready to distillfor ...aogc2.state.ar.us/hearing applications...

Documents