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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. † !"L. MATTHEW DAVIS, P.A. †COLBY T. ROE
† Also Licensed in Oklahoma! Also Licensed in Wyoming & North Dakota" Certified Mediator
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
______________
JAMES E. WESTDALE CARLTON
PHILLIP E. NORVELL †
OF COUNSEL_______
HARRY P. DAILY (1886-1965)JOHN P. WOODS (1886-1976)JOHN S. DAILY (1912-1987)
BEN CORE (1924-2007)
November 15, 2011
Arkansas Oil and Gas Commission301 Natural Resources Drive, Suite 102Little Rock, Arkansas 72205
Re: ORDER REFERENCE NO. 336-2011-12
Application of Weiser-Brown Oil Company for the formation of an exploratorydrilling unit composed of the Southeast Quarter of the Northeast Quarter ofSection 23, Township 18 South, Range 17 West, Union County, Arkansas andfor the integration of uncommitted leasehold working interest owners in suchexploratory drilling unit.
Commissioners:
Weiser-Brown Oil Company, P.O. Box 3050, Magnolia, Arkansas 71753, hereby appliesto the Arkansas Oil and Gas Commission as follows:
1, The applicant’s proposed drilling unit, described above is not subject to the fieldrules of the any field. The applicant and its participating partners control at least 50% ofthe right to drill and produce oil and gas from such proposed unit. The applicant thusrequests that the above described drilling unit be designated as an exploratory drillingunit.
2. Applicant’s proposed well will be drilled to an approximate depth of 3,300 feet totest the Hill Sand Formation as well as any other intervening formations.
3. 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.
4. 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.
5. Applicant states that it is in the best interest of conservation and the protection of
correlative 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 expenses of drilling, completing and equipping thewell, which would have been borne by the interest of said parties had they participated.
8. 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.
9. Applicant also requests that said order be made applicable to any unknownspouse, heir, devisee, personal representative, successor or assign of said parties.
10. The names and addresses of parties interested in this proceeding are set forth inExhibit "A" attached hereto and made a part hereof.
11. 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-1"Integrated Parties
JANE HARVEY BURGLANDC/O MCCASLIN & CO.500 WEST 7TH, SUTIE 900FORT WORTH, TX 76102
HENDRIX COLLEGEC/O BANK OF OKLAHOMAP.O. BOX 3499TULSA, OK 74101
CAROL MCCALL HERMSENP.O. BOX 47MT. HOLLY, AR 71758
OUACHITA BAPTIST UNIVERSITYBUINESS OFFICEOBU BOX 3756ARKADELPHIA, AR 71923
SALEM COLLEGE3RD SCHOLARSHIP FUNDP.O. BOX 10548WINSTON-SALEM, NC 27108
ANN BOWDEN OAKES315 BERKSHIRE PLACE
SHREVEPORT, LA 71134
MARY AGNES OAKES KENDRICKJACK KENDRICK
1600 TEXAS STREET, APT. 2906FT. WORTH, TX 76102
NANCY OAKES LOVINGJAMES LOVING, JR.
1120 WILLOWBROOK TRAILMAITLAND, FL 32751
SGM FAMILY, LLLPATTN: MARY K. GLOVER
10909 JONES ROAD, PMB 300HOUSTON, TX 77065
CHARLES V. BEASLEY, JR.EDWINA D. BEASLEY
202 NORTH WASHINGTON, SUITE 206EL DORADO, AR 71731
TOM WESTBROOK, IVTONI WESTBROOK
10191 COUNTRY ROAD 417TYLER, TX 75704
CAROL K. WESTBROOK10 PECAN DRIVE
PENSACOLA, FL 32514
DAVID E. WESTBROOKPAMELA WESTBROOK
379 COUNTRY ROAD 2091CARTHAGE, TX 75633
CHRISTIE A. HECKLERLAWRENCE HECKLER
6118 KELLY ELLIOT ROADARLINGTON, TX 76001-5041
MATT T. WESTBROOK &ELIZABETH WESTBROOK
4601 EAST JIM MITCHEL TRAILCOLLEYVILLE, TX 76034
SUSAN WINDSOR16734 WEST 156TH TERRACE
OLATHE, KS 66062
THE RUTH G. PICKENS GRANDCHILDREN’S JOINTVENTURE
811 PRESTON ROAD, SUITE 800DALLAS, TX 75225-6370
BUFORD I. KING, TRUSTEEP.O. BOX 270
FORT WORTH, TX 76121-119
WILSON PROPERTIES728 NORTH MADISON
EL DORADO, AR 71730
DOUGLAS S. BOONE, TRUSTEE OF THE REVOCABLEINTER VIVOS TRUST DATED JULY 3, 1992
PO.O. BOX 106LAUREL, MS 39441
JAMES O. COTTRELLEULA F. COTTRELL
5678 CALION HIGHWAYEL DORADO, AR 71730
R.T. ELLZEY, JR.1925 CALION ROAD
EL DORADO, AR 71730
BRUCE E. MCKINNON509 WEST MYRTLE STREET
WARRN, AR 71671
DANIEL L. MCKINNON4925 BEECHWOOD HILLS DRIVE
SHREVEPORT, LA 71107
MORRIS M. MCKINNON6604 WESSON ROAD
JUNCTION CITY, AR 71747
JERRY W. MCKINNON819 REGMAR DRIVE
SHREVEPORT, LA 71107
JESSIE F. MCKINNON101 SOUTHPARK DRIVEEL DORADO, AR 71730
THOMAS R. MCKINNON1860 BRENT LANE
FAYETTEVILLE, AR 72701
BILLYE ANN HOWELL OWENSROBERT OWENS4544 BELFORT
DALLAS, TX 75205
JAMES MICHAEL SINNOTTPAM SINNOTT
3202 CLAIBORNE CIRCLEMONROE, LA 71201
GALE SINNOT HOUKALLEN HOUK
12103 MAPLE ROCK DRIVEHOUSTON, TX 7707
MURPH LIMITED PARTNERSHIPP.O. BOX 769
MAGNOLIA, AR 71754
REBECCA HANER1327 MT. HOLLY ROADEL DORADO, AR 71730
BOBBYE J. HOLLYFIELD13 SOUTH BELLEVILLEFREEBURG, IL 62243
KATHLEEN WOODSJOHN A. WOODS, SR.
1103 SMEDE HIGHWAYBROUSSARD, LA 70518
HENRY A. MOORE, JR.999 MT. UNION ROAD
EL DORADO, AR 71730
RIBBLE INVESTMENT COMPANYP.O. BOX 9
MAGNOLIA, AR 71754
HENRY A. MURPHY, II213 CHUBASCO LANE
SLIDELL, LA 70458
ELIZABETH ETHERTON GOLL253 VIA MARIEL EAST DRIVE
DAVENPORT, FL 33896
EVELYN DUNCAN39 WISTERIA DRIVE
THIBADOUX, LA 70301
JAMES W. DUNCAN1257 MASSMAN DRIVENASHVILLE, TN 37076
W.L. DUNCAN, JR.114 POST OAK CIRCLELAFAYETTE, LA 70506
DAVID DUNCAN112 HERMITAGE PARK DRIVE
HERMITAGE, TN 37076
LEQUEITA G. ENDEL311 EAST PARKER
HAMBURG, AR 71642
JAMIE BADERTSCHER3597 FOUNDERS CLUB DRIVE
SARASOTA, FL 34240
GORDIE LOU H. BRITTP.O. BOX 3408
LITTLE ROCK, AR 72177
GARY DON TAYLOR5911 HAYNESVILLE HIGHWAY
EL DORADO, AR 71730
LARRY W. TAYLORBARBARA TAYLOR
3536 HAYNESVILLE HIGHWAYEL DORADO, AR 71730
CHERYL TAYLOR SHOUPMICHAEL SHOUP
2619 HAYNESVILLE HIGHWAYEL DORADO, AR 71730
LOUISE BAILEY TAYLOR REVOCABLE TRUST6239 LOCKLEVIN COVE
MEMPHIS, TN 38119
ALENE BROWNING YEAGERDON YEAGER
111 JAPONICA LANESHREVEPORT, LA 71118
EDWARD J. BROWNING1008 PUDUE
ARLINGTON, TX 76012
GWILI BROWNING KING1210 GLADNEY STREET
MINDEN, LA 71055
LAWANA BROWNING HUTSON328 GARY K. STREET
PINEVILLE, LA 71360-5504
L.D. MCMULLEN101 WEST 5TH STREETEL DORADO, AR 71730
MARGARET M. HURTWAYNE HURT
413 FAIRVIEW AVENUECROWNPOINT, IN 46307
SIMON S. STEINBERG TRUSTBANCORP SOUTH, TRUSTEE
P.O. BOX 751EL DORADO, AR 71730
THE MCGHEE FOUNDATION36276 MOUNTVILLE ROADMIDDLEBURG, VA 20117
JOSEPH G. MEINERT, LLC10133 TIFFANY DRIVE
RIVERRIDGE, LA 70123
RICHARD L. MEINERT, LLC10121 HYDE PLACE
RIVERRIDGE, LA 70123
MICHAEL S. MEINERTBETTE MEINERT
2321 CALION ROADEL DORADO, AR 71730
SHANNON M. GILESMICHAEL W. GILES
7188 SOUTH SORRENTO WAYWEST JORDAN, UT 84084
MELINDA M. BUTTERFIELDBRUCE BUTTERFIELD176 WILLETT ROAD
EL DORADO, AR 71730
TBM PROPERTIES2828 HOOD STREET #1403
DALLAS, TX 75219
NJB, INC.451 NORTH WASHINGTON
EL DORADO, AR 71730
SHIRL, LLC601 EAST 15TH STREETEL DORADO, AR 71730
JAMES W. GARRISONPATTY LOU MARTIN DILLAHA
601 EAST 15TH STREETEL DORADO, AR 71730
GWENDOLYN MARTINT.M. MARTIN, JR.
P.O. BOX 261CRESTLINE, CA 92325
CUB PROPERTIES, LLC98 SAN JACINTO BLVD.
AUSTIN, TX 78701
JAMES FRANKLIN REED, JR.AUDREY REED
5419 PINE ARBORHOUSTON, TX 77066
ROBERT FRANKLIN REEDDEBORAH L. REED
P.O. BOX 9EUCHA, OK 74342
PATRICIA FOGARTY DREWBARRY PAUL DREW
P.O. BOX 67EUCHA, OK 74342
SHARON FOGARTY LONGC.F. LONG
3266 GREEN ACRES DRIVEBETHLEHEM, PA 18015-5723
EDWARD B. SUMMERHILL3401 VILLANOVA DRIVE
DALLAS, TX 75225
MACIE C. HOLLINGER1205 C VALLEY VIEW DRIVE
PEARISBURG, VA 24134
SHERYL SHACKLEFORD WRAYLOUIS C. WRAY, JR.
4400 MATILDA PLACEKINGSPORT, TN 37604
CECILE SHACKLEFORD TAYLOR2500 FORREST LAWN DRIVE
EL DORADO, AR 71730
B.J. ALDERSON TRUST5110 NORTHWEST AVENUE
EL DORADO, AR 71730
WALTER ALDERSONFRANCES ALDERSON
2619 TAMALPAIS DRIVEPINOLE, CA 94564
C. ELIZABETH COTTRELL5570 HAYNESVILLE HIGHWAY
EL DORADO, AR 71730
SKLARCO, LLC401 EDWARDS STREET, SUITE 1601
SHREVEPORT, LA 71101
JOSEPH H. JOINER63 WEST WIEUCA ROAD, UNIT 3
ATLANTA, GA 30342
ANDREW CHARLES HALL429 MIMOSA DRIVE
DECATUR, GA 30030
JENNIFER HALL JOHNSON146 SOUTH PRAIRIE
KALAMAZOO, MI 49006
EDWARD KYLE HALL3835 RUTHIN ROAD
KALAMAZOO, MI 49008
WILLIAM J. BOND AND JEAN PEIRCE BOND MGMT.TRUST
P.O. BOX 846MARSHALL, TX 75671
MARY ROWLAND SOWELL SHELMIRE833 COLONIAL DRIVE
TYLER, TX 75701
J.C. FLAVEY ESTATEC/O FROST NATIONAL BANK
P.O. BOX 1600SAN ANTONIO, TX 78296
A.G. GRIFFIN ESTATEADDRESS UNKNOWN
RESUME OF EFFORTSSE NE Sec. 23-T18S-R17WUnion County, Arkansas
Jane Harvey Burgland 3.125%
09/29/11 Mailed out letter with an offer to farmin acreage or participate withtheir acreage.
11/07/11 Mailed out AFE with letter stating we would accept farmout or askingthem to participate.
RESUME OF EFFORTSSE NE Sec. 23-T18S-R17WUnion County, Arkansas
Hendrix College 1.5625%
09/29/11 Mailed out letter with an offer to farmin acreage or participate withtheir acreage.
11/07/11 Mailed out AFE with letter stating we would accept farmout or askingthem to participate.
RESUME OF EFFORTSSE NE Sec. 23-T18S-R17WUnion County, Arkansas
Carol McCall Hermsen 1.5625%
09/29/11 Mailed out letter with an offer to farmin acreage or participate withtheir acreage.
11/07/11 Mailed out AFE with letter stating we would accept farmout or askingthem to participate.
RESUME OF EFFORTSSE NE Sec. 23-T18S-R17WUnion County, Arkansas
Ouachita Baptist University .78125%
09/29/11 Mailed out letter with an offer to farmin acreage or participate withtheir acreage.
11/07/11 Mailed out AFE with letter stating we would accept farmout or askingthem to participate.
RESUME OF EFFORTSSE NE Sec. 23-T18S-R17WUnion County, Arkansas
Salem College .78125%
09/29/11 Mailed out letter with an offer to farmin acreage or participate withtheir acreage.
11/07/11 Mailed out AFE with letter stating we would accept farmout or askingthem to participate.
EXHIBIT “C”Applicant’s statement regarding Operating Agreement
The applicant requests incorporation of the Model Form Joint Operating Agreement for
LiquidHydrocarbonWells approvedby theArkansasOil andGasCommission onFebruary
22, 2010, with Paragraph III.1.A.(1) of the COPAS providing for a drilling well rate of
$6,500.00 and a producing well rate of $650.00 , and with the following proposed
revisions, deletions and/or insertions, if applicable:
NONE
AFFIDAVIT AND TESTIMONY OF RODNEY MAY, A PETROLEUM LANDMAN
STATE OF ARKANSAS
COUNTY OF UNION
Rodney May, having been first duly sworn, makes the following affidavit:
My name is Rodney May I am a petroleum landman employed by Atlanta Exploration Co.,an independent petroleum land service provider retained by Weiser Brown Oil Co. to assistin securing oil and gas leases and/or commitments to participate in certain wells includingthe applicant's planned well, which is the subject of this application (the "subject proposedwell".)
I understand that I am submitting this Affidavit, under oath, as testimony in this docketedmatter. This Affidavit is submitted in lieu of live testimony in this matter and is materiallythe same as the testimony, which I would present herein as a live witness.
I am familiar with the information contained within the Summary of Efforts To SecureLeases and/or Participation, which has been pre-filed as an exhibit in connection with thisApplication. The summary of efforts to secure such leases and/or participation documentedwithin that exhibit is true and correct, to the best of my knowledge, as of immediatelybefore the filing of the Application. If there are material additional efforts made to securesuch leases and/or participation up to, and including, the hearing date, they will bedocumented on a supplemental or replaced exhibit, which, I pledge, will likewise be trueand correct, to the best of my knowledge.
I know of my own personal knowledge that the applicant and its participating partners havesecured oil and gas leases covering approximately 92.1875 % of the net mineralacres contained within the unit containing the proposed subject well, as of the date of thefiling of the Application. I also know of my own personal knowledge that personsconsenting to the drilling of the subject proposed well controlled at least 50% of the right todrill within the unit as of the date of the filing of the Application.
I also know of my own personal knowledge that either the applicant or another workingowner has secured one or more oil and gas leases covering the proposed drill site of thesubject proposed well or, if not, that a written surface use agreement, permitting the use ofthe proposed drill site, has been executed by the owner thereof.