bradley g. hill

0Form3160-3 FORMAPPROVED(April2004) OMBNo.1004-0137

ExpiresMarch31,2007UNITED STATES

DEPARTMENT OF THE INTERIOR 5. LeaseSerialNo.BUREAU OF LAND MANAGEMENT

14-20-H62-5035

APPLICATIONFOR PERMIT TO DRILLOR REENTER6. IfIndian,AlloteeorTribeName

la. Typeof work: DRILL REENTER 2 IfUnitor CAAgreement,NameandNo.

8. LeaseNameand WellNo.lb. Typeof Well: OilWell GasWell Other SingleZone MultipleZone State Tribal 1-18-54

2. Nameof Operator 9. API WellNo.FIML Natural Resources, LLC Og 2 Û

3a. Address 3b. PhoneNO. (include area cok) 10.Fieldand Pool,orExploratory

410 17th Street, Suite 900, Denver, CO 80202 303-893-5073 Brundage Canyon

4. Locationof Well(Report location clearly and in acconiancewith anyMateaqwrements.*) 11.Sec.,T.R.M. or Blk.andSurveyorArea

At surface NENE 849' FNL 474' FELÛÑ Ë

At proposed prod.zone sameas above | Ô. Ñ Sec 18, T5S-R4W, U.S.B.&M.

14. Distanceinmiles anddirectionfromnearest townorpost office* 12. CountyorParish 13. State26.4 miles southwest of Myton, Utah Duchesne Utah

15. Distancefromproposed* 16. No.of acres inlease 17. SpacingUnitdedicatedto thiswelllocationtonearestproperty or leaseline,ft(Alsotonearest drig.unit line,if any) 474' 640 40

18. Distancefromproposedlocation* 19.ProposedDepth 20. BLM/BIABond No.on fileto nearest well, drilling,completed,appliedfor,on this lease,ft

1,963' 6,450' 8191-82-71

21. Elevations(Showwhether DF,KDB,RT, GL,etc.) 21 Approximatedateworkwill start* 23. Estimatedduration

6,453' GL (Ungraded) November 11, 2006 Seven days

24. AttachmentsThefollowing,completedinaccordancewiththerequirements of OnshoreOilandGasOrderNo.I, shallbeattachedtothisform:

1. Wellplatcertified bya registered surveyor. 4. Bondtocover the operationsunlesscovered by an existing bondon file (see2 A DrillingPlan. Item20 above).3. A SurfaceUse Plan(if the locationis on NationalForestSystemLands,the 5. Operatorcertification

SUPO shallbefiledwith theappropriate ForestServiceOffice). 6. Suchother site specific informationand/orplansas may be required bytheauthorized officer.

25. Signature Name(Printed/Typed) DateMark Bingham 04/24/2006

TitleSenior Vice P sident

proved Name(Printed/Typed) Date

BRADLEYG. HILLofficENVIRONMENTALMANAGER

Applicationapprovaldoesnotwarrantor certifythattheapplicantholdslegalorequitabletitletothoserightsinthe subjectieasewhichwouldentitletheapplicanttoconductoperationsthereon.Conditionsof approval,if any,areattached.

Title 18U.S.C.Section1001andTitle43 U.S.C.Section1212,makeit a crime foranypersonknowinglyandwillfully tomake to anydepartmentor agency of the UnitedStatesanyfalse,fictitiousor fraudulentstatements or representations as to anymatterwithin itsjurisdiction.

*(Instructionsonpage 2)

RECEIVEDMAYO2 2006

ry DIV.0FOIL,GAS&

UTE/FNR, LLC.

T5S, R4W, U.S.B.&M. Well location, STATE TRIBAL //1-18-54, locatedas shown in the NE 1/4 NE 1/4 of Section 18,T5S, R4W, U.S.B.&M. Duchesne County, Utah.

SB954'JO"W - 5124.01' (Meas.) set Marked stone BASIS OF ELEVATIONset stone

BENCH MARK (M67) LOCATEDIN THE SW 1/4 OF SECTIONo> 9, T5S, R4W, U.S.8,&M. TAKEN FROM THE DUCHESNE SEo QUADRANGLE,UTAH, DUCHESNE COUNTY, 7.5 MINUTE QUAD.

RR Lot 7 (TOPOGRAPHIC MAP) PUBLISHED BY THE UNITED STATESI 474· DEPARTMENTOF THE INTERIOR, GEOLOGICALSURVEY. SAID5 4 S72 7E 1R/BAL /1-18-54 ELEVATIONIS MARKED ON CAP AS BEING 6097 FEET.

WWElev. Unsraded Ground = 6457 BAsis OF BEARINGS

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

Lot 2N

18o

^o

oo o - o

Lot JSCALE

CERTIFICATETHIS IS TO CERTIFYTHAT THE ABOVE PLAT WAS PREPARED FROMFlELD NOTES OF ACTUALSURVEYS MADE BY YSUPERVISIONAND THAT THE SAME ARE EBEST OF MY KNOWLEDGEAND BEL .

Lot 4REGl!!IEREGI ATI .

STATE AHSet Marked Stone Pile of Stones Set Marked Stone

NB9°58'23"W- 2482.73' (Aleas.) NB9°J8'46"W

- 2642.44' (Meas.) 2' UINTAH ENGINEERING &BS SOUTH 200 EAST - VERNAL, H 84078

LEGEND: (NAD 83) (435) 789-1017LATITUDE =

40°03'05.02" (40.051394) SCALE DATESURVEYED: DATEDRAWN:=90° SYMBOL LONGlTUDE=

110°22'13.74" (110.370483) 1" = 1000' 02-10-06 04-10-06= PROPOSED WELL HEAD. (NAD 27) PARTY REFERENCES

LATITUDE =40°03'05.16" (40.051433) B.H. J.T. C.G. G.L.O. PLATA = SECTION CORNERS LOCATED.

LONGITUDE=110°22'11.19" (110.369775)

WEATHERCOOL

FILE

UTE/FNR,

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SELF CERTIFICATION STATEMENT

The following self-certification statement is provided per federal requirements dated June15, 1988.

Please be advised that FIML Natural Resources, LLC is considered to be the operator ofthe following well.

State Tribal 1-18-54NE/4 NE/4 849' FNL 474' FEL, Section 18 T-5S, R-4 W U.S.B. & M.Lease BIA: 14-20-H62-5035Duchesne County, Utah

FIML Natural Resources, LLC is responsible under the terms of this lease for theoperations conducted upon lease lands.

Rick L. ParksOperations ManagerFIML Natural Resources, LLC410 17th S reeSuite 900Denver, Colorado 80202(303)

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FIML NATURAL RESOURCES, LLC

State Tribal 1-18-54NENE 849' FNL 474' FEL Sec 18, T-5S, R-4W, U.S.B. & M.

Duchesne County, UtahBIA Lease Number 14-20-H62-5035

DRILLING PROGRAM

1. Estimated Tops of Geological Markers:

Formation Depth

Uinta surfaceGreen River 1,398' (top based on FIML Natural Resources, LLC

Green River structure map dated September 26, 2005)Mahogany Bench 2,686' (top based on FIML Natural Resources, LLC

Mahogany Bench structure map dated September 26,2005)

Garden Gulch 3,602' (top based on FIML Natural Resources, LLCGarden Gulch structure map dated September 26, 2005)

Douglas Creek 4,521' (top based on FIML Natural Resources, LLCDouglas Creek structure map dated September 26, 2005)

Castle Peak 5,443' top based on FIML Natural Resources, LLCCastle Peak structure map dated September 26, 2005)

Uteland Butte Ls. 5,867' (top based on FIML Natural Resources, LLCUteland Butte structure map dated September 26, 2005)

Wasatch 6,062' (top based on FIML Natural Resources, LLCWasatch structure map dated September 26, 2005)

Total Depth 6,412'

2. Estimated Depths of Anticipated Water, Oil, Gas, or Other Minerals:

SubstanceFormation Depth

Oil/Gas Douglas Creek 4,521' (top based on FIML Natural Resources, LLCDouglas Creek structure map dated September 26, 2005)

Oil/Gas Castle Peak 5,443'(top based on FIML Natural Resources, LLCCastle Peak structure map dated September 26, 2005)

Oil/Gas Uteland Butte 5,867'(top based on FIML Natural Resources, LLCUteland Butte structure map dated September 26, 2005)

Oil/Gas Wasatch 6,062' (top based on FIML Natural Resources, LLCWasatch structure map dated September 26, 2005)

Other Mineral Zones N/A

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3. Pressure Control Equipment:

Please refer to FIML Natural Resources, LLC Standard Operating Procedure(SOP Version: Revised October 6, 2005).

4. Proposed Casing and Cementing Program:


5. Drilling Fluids Program:


6. Evaluation Program:


7. Abnormal Conditions:


8. Anticipated Starting Dates and Notification of Operations:


9. Other Information:


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2M SYSTEMBLO\NOUT PREVENTER FOR HIGH PRESSURE WELLS

900 SERIES MINIMUM2000# psi W.P.

BOP 6" X 3000 PS1 or 10" X 3000 PSI

DRILIJNG RTPPL£

PE RAMS

8 NOAA

CS¾iUNEKILLUNE

ADJUSTABLECHOKETOPlTAND/OAMUD/ GASSEPARATOA

BLEED UNE TO PIT

2 * 2" NOMINAL

TO PlT

ADJUSTABLECHOKE

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State Tribal 1-18-54NENE 849' FNL 474' FEL, Sec 18, T-5S, R-4W, U.S.B. &M. Duchesne County, Utah

Lease Number 14-20-H62-5035

Onshore Order No. 1

MULTI-POINT SURFACE USE & OPERATIONS PLAN

1. Existing Roads

A. Start in Myton, Utah. Proceed west on US Highway 40, 8.8 miles to theAntelope Creek/Sowers Canyon Road at the Bridgeland turnoff. Turn southand proceed 10.1 miles on the Sowers Canyon Road. Turn southwest on theBrundage Canyon Road and proceed approximately 5.0 miles. Turn north andproceed approximately 0.3 miles to the Berry proposed Ute Tribal 4-19-54location. Continue on the access road for approximately 0.1 miles. The roadthen becomes the access road for the Ute Tribal 11-18-54. Continue forapproximately 0.5 miles and the road becomes the access road for the UteTribal 7-18-54. Continue 0.3 miles to the proposed access road for the UteTribal 1-18-54. Continue 0.5 miles to the Ste Tribal 1-18-54 proposedlocation.

B. The proposed well site is located approximately 26.4 miles southwest ofMyton, Utah - See attached Topographic Map "A".

C. Refer to attached Topographic Map "A".D. Existing roads will be maintained and repaired as necessary. No off lease

Right-of-Way will be required.

2. Planned Access Roads

See Topographic Map "B" for the location of the proposed access road.

3. Location of existing wells within a one mile radius of proposed well location

See Topographic Map "C" for the location of existing wells within a one-mile radius.

4. Location of Existing and lor Proposed Facilities

Please refer to FIML Natural Resources, LLC Standard Operating Procedure (SOPVersion: October 6, 2005).

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5. Location and Type of Water Supply

A. Water supply will be from East Duchesne Water District, Arcadia, Utah.Section 28, T-3S, R-3W, Duchesne County, Utah. The water right number is43-10152.

B. Water will be hauled by Ute Tribal Water Service.C. No water well will be drilled on the lease.

6. Source of Construction Materials


7. Method of Handling Waste Materials


8. Ancillary Facilities


9. Well Site Layout

The attached Location Layout diagram describes drill pad cross-sections, cuts andfills, and locations of the mud tanks, reserve pit, pipe racks, trailer parking, spoil dirtstockpile(s) and top soil stockpile(s).

10. Plans for Restoration of the Surface


11. Surface Ownership

Access Road: Utah Division of Wildlife ResourcesLocation: Utah Division of Wildlife Resources

12. Other Information


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13. Operator's Representative and Certification

Name: Rick L. Parks

Address: 410 17*Street

Suite 900Denver, Colorado 80202

PhoneNo. 303-893-5081Cellular No. 303-229-7689

All lease and/or unit operations will be conducted in such a manner that fullcompliance is made with all applicable laws, regulations and Onshore Oil and GasOrders. FIML Natural Resources, LLC is fully responsible for the actions of itssubcontractors. A copy of these conditions will be furnished to the fieldrepresentative to ensure compliance.

Certification:

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 conditions thatpresently exist; that the statements made in this plan are, to the best of my knowledgeand belief, true and correct; and that the work associated with operations proposedherein will be performed by FIML Natural Resources, LLC and its contractors andsubcontractors in conformity with this plan and the terms and conditions under whichit was approved. This statement is subject to the provisions of 18 U.S. C. 1001 forthe filing of a false statement.

Date Rick L. ParksOperations ManagerFIML Natural Resources, LLC

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EPA's LIST OF NONEXEMPT EXPLORATION AND PRODUCTION WASTES

While the following wastes are nonexempt, they are not necessarily hazardous.

• Unused fracturing fluids or acids

• Gas plant cooling tower cleaning wastes

• Painting wastes

• Oil and gas service company wastes, such as empty drums, drum rinsate, vacuum truckrinsate, sandblast media, painting wastes, spend solvents, spilled chemicals, and wasteacids

• Vacuum truck and drum rinsate from trucks and drums, transporting or containingnonexempt waste

• Refinery wastes

• Liquid and solid wastes generated by crude oil and tank bottom reclaimers

• Used equipment lubrication oils

• Waste compressor oil, filters, and blowdown

• Used hydraulic fluids

• Waste solvents

• Waste in transportation pipeline-related pits

• Caustic or acid cleaners

• Boiler cleaning wastes

• Boiler refractory bricks

• Incinerator ash

• Laboratory wastes

• Sanitary wastes

• Pesticide waste

• Radioactive tracer wastes

• Drums, insulation, and miscellaneous

O OUTE/FNR, LLC.

STATE TRIBAL #1-18-54LOCATED IN DUCHESNE COUNTY, UTAH

SECTION 18, T5S, R4W, U.S.B.&M.

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

I

PHOTO: VIEW FROM BEGINNING OF PROPOSED ACCESS FOR THE #11-18-54 CAMERA ANGLE: SOUTHEASTERLY

I Uintah Engineering & Land Surveying I-OCATIONPHOTos O 07 06 PHOTO85 South 200 East Vernal, Utah 84078 "0" "I TR*

¿4_ 435-789-1017 [email protected] TAKENBY:B.H. DRAWNBY:C.P.

O OUTE/FNR LLC.LOCATION LAYOUT FOR

STATE TRIBAL #1-18-54SECTION 18, T5S, R4W, U.S.8.&M.

849' FNL 474' FELProposed Access ,

C- 10. 4 ' "°°"

8. 60. '

6Sta. J+ JO

"°" C- 12. 1' MSCALE: 1" = 50' Cut Slope S. 625'DATE: 04-10-06DRAWN BY: C.G Round Corners NO

NOmà ¾

os Needed

be /ocated a rnin.of 100' frorn theWell Head. I I I I

lore Pit 'g- g Approx.B. 56.7 , PIPE RACKS Toe of

Fill Slope

(Ðtm.Pit) --- DOG HOUSE125' Sta. 1+60

-- lgdì•9 Existing.

Eksen PUMP Drainage

MUD SHED TOILET

HOPPER

POWER

TOOLS

FUEL

TRASH STORAGETANK

F-6.0'E/. 44.4' Sta. 0+00

A

4.B. 44.5' E/. 46.7(Btm. Pit)

Dev. Ungraded Ground at Location Stoke = 6453. J', UINTAH ENGINEERING & LAND SURVEYING

Bev. Graded Ground at Location Stake = 6450.4 86 So. ß00 East * Vernal, Utah 84078 * (435)

UTE/FNR LLC.tilTYPICALCROSS SECTIONSFOR

o STATE TRIBAL//1-18-54x--section SECTION 18, T5S, R4W, U.S.B.&M. p.

Scale849' FNL 474' FEL

1" = 50'

40' 125'DA E 04 0-0

Preconstruction SM. J+JOGrade

10 70' 40' 125'

LOCAT/0H STAKE S/ope = 1 1/2: 1

- CUT

F SM. 1 60

10' 70' 40' 125'

inished Grade

120' 125'

No SM. 0+00Topsoil should not beStripped Below FinishedGrade on Substructure Areo.

* NOTE:E/LL QUANT/TY/NCLUDESSX FOR COh/PAC710N

APPROXlMATEYARDAGES

CUTEXCESS MATERIAL = 5,1]O Cu. Yds.

(12") Topsoil Stripping =JJJO Cu. Yds. Topsoil & Pit Backfill = 5,1]O Cu. Yds.(1/2 Pit Vol.)

Remaining Location = 10,500 Cu. Yds.EXCESS UNBALANCE = 0 Cu. Yds.

TOTAL CUT = 13,830 CU.YDS. (After Interim Rehabilitation)

FILL = 8, 700 CU.YDS· UINTAH ENGINEERING & LAND SURVEYING86 So. ß00 Easi * Vernal, Utah 84078 * (436)

LEGEND: UTE/FNR, LLC.O PROPOSED LOCATION N STATE TRIBAL #148-54

SECTION 18, TSS, R4W, U.S.B.&M.849' FNL 474' FEL

Uintah Engineering & Land Surveying TOPOGR A PH I e 04 07 0685 South 200 East Vernat, Utah 84078 M A P MONTH DAY YEAR

(435) 789-1917 * FAX (435) 789-1813SCALF;1"= 2000 DRAWNBY:C.P. REVISED

5 4WW

PROPOSED ACCESS FOR# 8-54 +

PROPOSED ACCESS FOR Jr

LEGEND: UTE/FNR, LLC.EXISTING ROAD N STATE TRIBAL #1-18-54

----------- PROPOSED ACCESS ROAo SECTION 18, TSS, R4W, U.S.B.&M.849' FNL 474' FEL-, Uintah Engineering & Land Surveying TOPOGR A BI I c 04 07 06

4ÊÎ s - o ir fig isoi SCALE:1"= 2 00 DRAWNBY:C.R S

N:STATE TRIBAL #1-18-54

LEGEND: UTE/FNR, LLC.y MSPOSAI, WERS g( WATER WELLS N STATE TRIBAL #1-18-54e PRODUCING WELLS ABANDONED WELLS SECTION 18, T5S, R4W, U.S.B.&M.

$HUT IN WELLS & TEMPORARILY ABANDONED 849' FNL 474' FEL

- Uintah Engineering & Land Surveying TOPOGR A PH I c 04 0 085 South 200 East Vernal, Utuh 84078 ÑÎ À Ÿ MONT DAY YEAR

(435) 789-1011 * FAX (435) 789-1813SCALE:1"= 20001 DRAWNRY:C.P. REVISED:

'Ï'5S1

PROPOSED LOCATION:

APPROXIMATE TOTAL PIPELINE DISTANCE = 2,439' +/-

LEGEND: UTE/FNR, LLC.PROPOSED ACCESS ROAD N STATE TRIBAL #1-18-54

¯¯¯¯¯"¯¯¯ ¯¯ SECTION 18, T5S, R4W, U.S.B.&M.

-(SERVICING OTHER WELLS) 849' FNL 474' FEL

Uintah Engineering & Land Surveying TOPOGR A PH I e 04 07 06 |85 South 200 East Vernal, Utah 84078 M A P NTH DAY YEAR(435) 789-1017 * FAX (435) 789-1813

SCALE:1"= 1000' DRAWNBY:CÆ REVISED:

WORKSHEETAPPLICATION FOR PERMIT TO DRILL

APD RECEIVED: 05/02/2006 API NO. ASSIGNED: 43-013-33170

WELL NAME: ST TRIBAL 1-18-54

OPERATOR: FIML NATURAL RESOURCES ( N2530 ) PHONE NUMBER: 303-893-5073

CONTACT: MARK BINGHAM

PROPOSED LOCATION: INSPECT LOCATN BY: / /NENE 18 050S 040W .Tech Review Initials DateSURFACE: 0849 FNL 0474 FEL

BOTTOM: 0849 FNL 0474 FEL Engineering

COUNTY: DUCHESNEGeology

LATITUDE: 40.05143 LONGITUDE: -110.3698

UTM SURF EASTINGS:553752 NORTHINGS:4433445 Surface

FIELD NAME: BRUNDAGE CANYON ( 72 )

LEASE TYPE: 2 - Indian

LEASE NUMBER: 14-20-H62-5035 PROPOSED FORMATION: WSTC

SURFACE OWNER: 3 - State COALBED METHANE WELL? NO

RECEIVED AND/OR REVIEWED: LOCATION AND SITING:

\f' Plat R649-2-3.

y/' Bond:Fedf] Ind[2] Sta[] Fee[]Unit:

(No. 8191-82-71 )

(1 Potash (Y/N) % R649-3-2. General

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

v/' Water Permit R649-3-3. Exception

(No. 43-10152 )Drilling UnitLÁ RDCC Review (Y/N)

Board Cause No:(Date: )Eff Date:

Fee Surf Agreement (Y/N) Siting:

LLW Intent to Commingle (Y/N) ,R649-3-11. Directional Drill

COMMENTS: r

STIPULATIONS: L cg¿n

0TSS R5W T5S R4W

ST TRIBAL3 18 54 @

CGITONWOODRIDGEMB Q5T TRIBAL MS-54

BRUNDAGE CANYON FIELD

si IRititt $18-54 CUETONWOODLETETR AL 5-18-54

RIDGE 618 N

UTE TRIBAL 7-18 54

i lìRUNDAGE CANYON UNIT

UTE TRIBALIMS-54 @ LIII TRilii IN

urnuna12-18-54 @

UTE TR I18 SC O YOOD

I DIL LMIBAL 2 1

OPERATOR: FIML NATURAL RES (N2530)

SEC:18 T.5S R.4W

FIELD: BRUNDAGE CANYON (72)

COUNTY: DUCHESNE

Wells StatusSPACING:R649-3-2/GENERALSITING / GASINJECTION Utah 08 Gas and MMM

g GAS STORAGE× LOCATION ABANDONED

NEW LOCATIONField Status Unit Status PLUGGED &cABANDONEDQ ABANDONED EXPLORATORY PRODUCING GASO AcrIVE GAS STORAGE e PRODUCING OIL

COMBINEDCOOWARY

W EINACTIVE P ING

p( TEMP. ABANDONED

M TED G THERML A N ECTION SPP OIL g WATER SUPPLY PREPAREDBY:DIANA WHITNEYSECONDARY g WATER DISPOSAL DATE: 8-MAY-2006TERMINATED f i

O

DIVISION OF OIL, GAS AND MININGAPPLICATION FOR PERMIT TO DRILL

STATEMENT OF BASIS

OPERATOR: FIML Natural Resources, LLCWELL NAME & NUMBER: Ute Tribal 3-18-54API NUMBER: 43-013-33171LOCATION: 1/4,1/4 NE/NW Sec:XTWP: 05S RNG: 04W 672 FNL 2312 FWL

Geology/Ground Water:

The proposed well is located on mineral leases owned by the Ute Indian tribe. Evaluation and approval of thedrilling and casing program will be done by the BLM.

Reviewer: Brad Hill Date: 06/12/2006

Surface:

The Roosevelt Field Office scheduled and performed a presite meeting of the surface area to discuss issues andtake input from interested parties concerning the drilline of this well. The Utah Division of Wildlife Resourcesowns the surface but the minerals are tribal. Ben Williams with UDWR did attend and address wildlife relatedissues. Mr. Williams claims that UDWR properties were purchased for their values of critical big game habitatwith assistance from federal funds supplied through the U.S. Fish and Wildlife Service. Mr. Williams explainedthey do not have a landowner agreement yet, but hope to work through their permitting process ASAP. TheBrundage Ridge - Cottonwood Ridge area is classified as critical winter range for deer and elk, and waspurchased for that reason. He stated their landowner agreement will require that disturbance to elk and deerduring the winter months be kept to a minimum. This requirement will include no access road construction,location construction, drilling or use of work-over rigs during the period on Nov. 15- March 15 unless writtenpermission is given to vary from any part of this restriction. Opportunities exist to enhance the values for biggame in the area by removing pinion and juniperand reseeding with preferred forage species. UTE/FNR hasexpressed their willineness to participate is wildlife enhancement projects. Approximately ½ mile of new roadwill be constructed to reach the location The new road will duaway along a moderate side-slope to reach thelocation. The well pad is on gentle terrain and is in a good location for construction and location stability.Rudy Myore represented FIML Natural Resources on the site visit and Melissa Hawk represented the BLM.Neither had any comments regarding the proposal.

Reviewer: Floyd Bartlett Date: June 8, 2006

Conditions of Approval/Application for Permit to Drill:

1. Completion of a Surface Use Agreement between UDWR and FIML Natural Resources, LLC.2. A synthetic liner with a minimum thickness of 20 mils with a felt subliner shall be properly installed and

maintained in the reserve

g (Iþ-SITE PREDRILL EVALUATION

Division of Oil, Gas and Mining

OPERATOR: FIML Natural Resources, LLCWELL NAME & NUMBER: Ute Tribal 3-18-54

API NUNBER: 43-013-33171LEASE: State/Tribal(14-20-H62-5035) FIELD/UNIT: Brundage Canyon FieldLOCATION: 1/4,1/4 NE/NW Sec: 18 TWP: 05S RNG: 04W 672 FNL 2312 FWLLEGAL WELL SITING: 460 F SEC. LINE; 460 F 1/4,1/4 LINE; 920 F ANOTHER WELL.GPS COORD (UTM): X =553052 E; Y =4433493 N SURFACE OWNER: Utah Division ofWildlife Resources

PARTICIPANTSFloyd Bartlett (DOGM),Rudy Myore (UTE/FNR),Ben Williams (Utah__Divisionof Wildlife Resources), Melissa Hawk (BLM), Dan Rasmussen and JordonMonsen (UELS).

REGIONAL/LOCAL SETTING & TOPOGRAPHY

Well site is proposed approximately 26.4miles +/- southwest o_f Myton,Utah along Sowers Canyon Road to a Brundage Ridge oil well developmentroad on Tribal lands. Following this road to the existing Ute Tribal11-18-54 well then following a road to be constructed to the 5-18-54well approximately 0.2 miles then along approximately 0.5 miles of roadto be constructed to the proposed location.

The location is on a flat-topped ridge with a slight slope to the northtoward Sowers Canyon. Topography in the area becomes very steep to thenorth as the drainages drop into Sowers Canyon however all the proposedlocation is nearly flat with no intersecting drainages. The areaconsists of a Pinion-Juniper habitat type. Sowers Canyon, approximately½ mile to the north, contains a perennial stream, which ioins AntelopeCreek. Antelope Creek flows northerly into the Duchesne River nearBridgeland, Utah.

SURFACE USE PLAN

CURRENT SURFACE USE: Winter range for elk and mule deer.

PROPOSED SURFACE DISTURBANCE: Proposed construction 0.5 miles of accessroad and a well location 330'x 165' plus a 190' x 70' x10'reserve pitand soil stockpile storage outside the described area.

LOCATION OF EXISTING WELLS WITHIN A 1-MILE RADIUS: See 'TOPO C'

LOCATION OF PRODUCTION FACILITIES AND PIPELINES: Production equipmentshall remain on location unless otherwise authorized by the Division,gas pipelines run along access road to existing tie in points. A lineowned by Berry Petroleum will be used under an agreement.

SOURCE OF CONSTRUCTION MATERIAL: Native cut and fill using borrowedmaterial

ANCILLARY FACILITIES: None

OWILL DRILLING AT THIS LOCATION GENERATE PUBLIC INTEREST OR CONCERNS?(EXPLAIN): Probably not as there are several other wells in the

Brundage, Cottonwood and Tabby Canyon area. However, some sportsmenhave expressed concern with well development on UWR lands diminishingtheir value as big game habitat.

WASTE MANAGEMENT PLAN:

As detailed in UTE/FNR Standard Operating Procedure

ENVIRONMENTAL PARAMETERS

AFFECTED FLOODPLAINS AND/OR WETLANDS: None.

FLORA/FAUNA: Mixed grass lands frequently dominated with dense stands ofpinion-juniper. Site is on a ridge dominated by pinion and iuniper.Other species are infrequent but include black sagebrush and squirreltail, needle and thread grass, Indian ricegrass and shadscale. Area isclassified as critical elk and deer winter range by the UDWR. Otherspecies common include mountain lion, bobcat, rabbit, coyote and smallerbirds and mammals.

SOIL TYPE AND CHARACTERISTICS: Moderately deep medium brown sandy loam.Frequent brown surface rock erosion pavement.

SURFACE FORMATION & CHARACTERISTICS: Broad gentle north sloping ridgewith a few draws or swales. Planned access road and well site are ingood locations relative to the topography.

EROSION/SEDIMENTATION/STABILITY: Current erosion is light. No stabilityproblems are expected with pad construction and access to the location.

PALEONTOLOGICAL POTENTIAL: None observed during onsite

RESERVE PIT

CHARACTERISTICS: Proposed in cut on southwest side of location,measuring 70'x 190'x 10' deep.

LINER REQUIREMENTS (Site Ranking Form attached): 22 points. A liner isrequired for the reserve pit.

SURFACE RESTORATION/RECLAMATION PLAN

According to Landowner Agreement and seed mixture provided by UDWR

SURFACE AGREEMENT: No

CULTURAL RESOURCES/ARCHAEOLOGY: A survey was completed by James A. Truesdaleand submitted to DOGM and UDWR according to requirements. On Tribal Landsnorth of the Ute Tribal 11-18-54 well an old fence and possible corral hasbeen constructed from pinion and juniper. The proposed road in this area wasre-routed at the request of the Ute Indian

OOTHER OBSERVATIONS/COMMENTS

Mr. Ben Williams, representing the UDWR stated their landowner agreementwill require that disturbance to elk and deer during the winter monthsbe kept to a minimum. This requirement will include no access roadconstruction or betterment, location construction, drilling or use ofwork-over_ rigs during the period of Nov. 15- March 15 unless writtenpermission is given to vary from any part of this restriction.Opportunities exist for habitat enhancement for big game in the area byremoving and reseeding some of the dense pinion/iuniper stands. A 150-acre area for pinion/iuniper chaining or removal and seedinq has beenflaqqed in the area by the UDWR. Hal Writer, agent for UTE/FNR, agreedthrough an email to participate in this project.

ATTACHMENTS

Photos of this location were taken and placed on file.

Floyd Bartlett May 23, 2006, 10:45 A.M.DOGM REPRESENTATIVE

g Ouation Ranking Criteria and Ranking Score

For Reserve and Onsite Pit Liner Requirements

Site-Specific Factors Ranking Site Ranking

Distance to Groundwater (feet)>200 0100 to 200 575 to 100 1025 to 75 15<25 or recharge area 20 __0

Distance to Surf. Water (feet)>1000 0300 to 1000 2200 to 300 10100 to 200 15< 100 20 2

Distance to Nearest MunicipalWell (feet)

>5280 01320 to 5280 5500 to 1320 10<500 20 0

Distance to Other Wells (feet)>1320 0300 to 1320 10<300 20 0

Native Soil TypeLow permeability 0Mod. permeability 10High permeability 20

Fluid TypeAir/mist 0Fresh Water 5TDS >5000 and <10000 10TDS >10000 or Oil Base Mud Fluid 15

containing significant levels ofhazardous constituents 20 5

Drill CuttingsNormal Rock OSalt or detrimental 10 0

Annual Precipitation (inches)<10 010 to 20 5>20 10 5

Affected Populations<10 010 to 30 630 to 50 8>50 10 0

Presence of Nearby UtilityConduits

Not Present 0Unknown 10Present 15 0

Final Score 22 (Level II Sensitivity)

SensitivityLevel I = 20 or more: total containment is required, consider criteria for excluding pit use.SensitivityLevel H = 15-19:lining is discretionary.SensitivityLevel HI = below 15: no specific lining is

.y_.

64

? 5.

I

5

©JON M. HUNTSMAN, JR.

Governor

GARY R. HERBERTLieutenant Governor

State of Utah June 12, 2006

Department ofNatural Resources

MICHAEL R. STYLERExecutiveDirector FIML Natural Resources, LLC

410 17th St., Ste. 900Division of Denver, CO 80202

Oil, Gas & Mining

JOHN R BAZADivisionoirec'°' Re: State Tribal 1-18-54 Well, 849' FNL, 474'FEL, NE NE, Sec. 18, T. 5 South,

R. 4 West, Duchesne County, Utah

Gentlemen:

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

This approval shall expire one year from the above date unless substantial andcontinuous operation is underway, or a request for extension is made prior to theexpiration date, The API identification number assigned to this well is 43-013-33170.

Sincerely,

Gil HuntAssociate Director

pabEnclosures

cc: Duchesne County AssessorBureau of Land Management, Vernal District Office

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 •

O

Operator: FIML Natural Resources, LLCWell Name & Number State Tribal 1-18-54

API Number: 43-013-33170Lease: 14-20-H62-5035

Location: NE NE Sec.__1_8_ T. 5 South R. 4 West

Conditions of Approval

1. GeneralCompliance 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 Dan Jarvis at (801) 538-5338

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 Water -

Encountered 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 Board.

6. Compliance with the Conditions of Approval/Application for Permit to Drill outlined in theStatement of Basis. (Copy

Form 3160-5 UNITED STATES(April2004) DEPARTMENTOF THE INTERIOR E ires 007BIJREAU OF LAND MANAGEMENT 5. LeaseSerialNo.

SUNDRY NOTICES AND REPORTS ON WELLS 14-20-H62-5035

Do not use this form for proposals to drill or to re-enteran 6. IfIndian,AllotteeorTribeNameabandoned well. Use Form 3160 - 3 (APD) for such proposals. Ute Tribe

SUBMIT IN TRIPLICATE- Otherinstructions on reverse side. 7. IfUnitorCA/Agreement,Nameand/orNo.

1. Type oilWell GasWeg Other 8. WellNameand No.

State Tribal 1-18-542. NameofOperatorFIML Natural Resources, LLC 9. API WellNo.3a Address 3b. PhoneNo. (include area code) 43-013-33170

410 17th Street, Suite 900 Denver, CO 80202 303-893-5090 10.FieldandPool,or ExploratoryArea4. LocationofWell (Footage,Sec.,T, R.,M, or SurveyDescnption) Brundage Canyon

NENE 849' FNL 474' FEL Sec 18 T-5S, R-4W 11. Countyor Parish, State

Duchesne

12. CHECK APPROPRIATEBOX(ES)TO INDICATE NATURE OF NGIICF, REPORT, OR OTHER DATA

TYPE OF SUBMISSION TYPEOF ACTION

Acidize Deepen Production (Start/Resume) WaterShut-OffNoticeof Intent AlterCasing Fracture Treat Reclamation WellIntegrity

SubsequentReport Casing Repair NewConstruction Recomplete Other Location Change

ChangePlans Plug andAbandon Temporarily AbandonFinal AbandonmentNotice Convertto Injection PlugBack WaterDisposal

13. Describe Proposed or CompletedOperation(clearly stateallpertinentdetails,includingestimated starting dateof any proposedwork and approximate durationthereofIf theproposalisto deependirectionallyor recomplete horizontally,givesubsurface locationsand measured and truevertical depthsof all pertinentmarkers andzones.Attach theBond under which thework will beperformedorprovidetheBond No. on filewith BLM/BIA.Requiredsubsequent reports shall befiledwithin 30daysfollowingcompletion of the involvedoperations. Iftheoperation results ina multiple completion or recompletion ina new interval,a Form 3160-4shallbefiledoncetestinghasbeencompleted.FinalAbandonmentNoticesshall be filedonly after allrequirements, includingreclamation, havebeencompleted, andtheoperator hasdeterminedthatthesite isready forfmalinspection.)

Attached are new survey plats for the State Tribal 1-18-54. It was requested by the DWR that the location be changed after the on-site. TheAPD for this well was approved by the State of Utah on June 12, 2006. The APD has not yet been approved by the BLM.

The new location is 1,068' FNL & 586' FEL.

àh DivisionofBIA Nationwide Oil & Gas Lease Bond No. 8191-82-71. Ôll,OSS andMiningState of Utah , Division of Oil, Gas & Mining Surety Bond No. 8193-15-93

14. I hereby certify that the foregoing is true and correctName (Printed/Typed)

Signature

a Title Operations nt

THIS SPACE FOR FEDERAL OR STATE OFFICE USE

Approvedby Title DateConditionsof approval, if any,are attached. Approvalof thisnotice doesnot warrantorcertify thatthe applicant holdslegalor equitable titleto thoserights in thesubject lease Officewhich would entitlethe applicant to conduct operations thereon.Title 18U.S.C.Section1001and Title43U.S.C.Section1212,make it a crime forany personknowinglyand willfully tomake to anydepartmentor agency of the UnitedStatesany false,fictitiousor fraudulentstatementsomrepresentationsasto anymatterwithin its jurisdiction.(Instructions on page flECEIVED

coPygNITOOPERATORFEB2 02007

e eFIML NATURAL RESOURCES,

February 16, 2007

Utah Division of Oil, Gas and Mining1594 West North Temple, Suite 1210P. O. Box 145801Salt Lake City, UT 84114-5801

Attn.: Ms. Diana Mason

RE: State Tribal 1-18-54NENE Sec 18 T-5S R-4WDuchesne County, Utah

Dear Ms. Mason:

Enclosed is the following information concerning the referenced well.

Sundry Notice - Well Location ChangeLocation Exception Letter

If any questions arise or additional information is required, please contact me at 303-893-5090.

Sincerely,

Cassandra ParksOperations Assistant

/cpEnclosures: RECEIVED

FEB2 8 2007DNOFOIL,GAS&MINING

410 17* Street, Suite 900 * Denver, CO 80202 * (303)893-5073 * Facsimile (303)

FIML ATURAL RESOURC S, LLC

February 16, 2007


Attn.: Ms. Diana Whitney

RE: Exception Letter for the State Tribal 1-18-541,068' FNL & 586' FEL of Section 18 T-5S R-4WDuchesne County, Utah

Dear 19Is.Whitney:

FIMLNatural Resources, LLC has no objection to the proposed State Tribal 1-18-54 wellbeing drilled 1,068' FNL & 586' FEL of Section 18 T-5S R-4W. The original "legal"drillsite location was moved due to wildlife habitats. Moreover, the Division of WildlifeResources would not allow the drillsite to be placed at the legal location due wildlifehabitats.

FlML Natural Resources, LLC is the only owner within a 460 foot radius of the proposedwell location.

The signature below is our written waiver of objection to UT Administrative Code R649-3-3.

Signature:

Name: Rick L. Parks

Title: Senior Vice President

Date: February 16, 2007

FIML Natural Resources, LLC410 17th Street, 96 FloorDenver, CO 80202

RECEIVEDFEB2 02007

DNOFOIL,GAS&MINING410 17* Street, 9° Floor * Denver, CO 80202 * (303)893-5073 * Facsimile (303)

O OUTE/FNR, LLC.

STATE TRIBAL #1-18-54LOCATED IN DUCHESNE COUNTY, UTAH

SECTION 18, T5S, R4W, U.S.B.&M.

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

PHOTO: VIEW FROM BEGINNING OF PROPOSED ACCESSFOR THE #11-18-54 CAMERA ANGLE: SOUTHEASTERLY

Uintah Engineering & Land Surveying i OCATIONPHOTos 04 07 06 PHOTO85 South 200 East Vernal, Utah 84078 UNT1 "AY TE^*

-since1964 _ 435-789-1017 [email protected] TAKENBY:D.R. DRAWNBY:C.P. ISED:

UTE/FNR LLC.LOCATION LAYOUT FOR

STATE TRIBAL #1-18-54SECTION 18, T5S, R4W, U.S.B.&M.

1068' FNL 586' FEL

E-1.8' E--5.8SCALE: 1" =

50, E/. 57. E/. 5J.J'

DATE: 6-8-06DRAWNBY: K.G

Topsoil Stockp//e

NOTE

E 5 8 Rou d Corner

F/are Pit is to Approx.

be located a rnin. IPP Of --

of 100' frorn the Cut SlopeWell Head TEOf

illitt

oIlllll

¿¯ 6 .8

i l I

PIPE RACKS

C- 12. 7' ¯ E- 161.O'(Ðtm.Pit) -- RIG DOG HOUSE

125' Sta. 1+60

C-5.EI. 64.4

Approx.Toe of

PUMP- Fill Slope

MUD SHED TOILET

9 ---- HOPPER

o -- POWER

TOOLs Sta. 0+50

--- FUEL--- STORAGETR SH

o C-6.O' TANK

B. 65.7'

Sta. 0+00

A

C-25.9' C- ZJ s. es 7,

E 75 O - E/. 66. 4'

{Ðtm.Pit) Proposed AccessRoad

Elev. Ungraded Ground at Location Stake = 6460.7's IIINTAH ENCINEERING LAND SURV EYING

Bev. Graded Ground at Location Stoke = 6459.1 86 So. 200 East * Verreal, Utah 84078 * (435)

UTE/FNR LLC.TYPlCALCROSS SECTIONS FOR

No.161 9o STATE TRIBAL#1-18-54. -

×-sectionSECTION 18, T5S, R4W, U.S.B.&M. "a '

Scale se- 1068' FNL 586' FEL

1" = 50' gyDATE: 6-8-06 40' 125'DRAWN BY: K.G.

Finished GradeF/LL CUT

Preconstruction 'E/LGrade -

"SM. J+JO

10' 70' 40' 125'

Slope = 1 1/2: 1l.0CA T/0N STAKE

Il'

10' 70 40' 125°

cur S M. 0+50I

120' 125'

CUT CUT / 's

NOTE: T WAT&TamfamfaTaiTopsoil should not beStripped Below Finished SM. 0+00 * NOTE·Grade on Substructure Area. F/LL QUANT/TY/NCLUDES

SX FOR COMPACT/ONAPPROXIMATE YARDAGES

CUT EXCESS MATERIAL = 7,060 Cu. Yds.

(12") Topsoil Stripping = J,210 Cu. Yds. Topsoil & Pit Backfill = 5,010 Cu. Yds.(1/2 Pit VoL)

Rernaining Location = 10,420 Cu. Yds.EXCESS UNBALANCE = 2,050 Cu. Yds.

TOTAL CUT = 1J, 630 CU.YDS. (After Interirn Rehabilitation)

FlLL = 6, 570 CU.YDS. UINTAH ENGINEERING & LAND SURVEYING86 So. 200 East * Vernal. UtoA 84078 * (436)

UTE/FNR, LLC.T5S, R4W, U.S.B.&M. Well location, STATE TRIBAL //1-18-54, located

as shown in the NE 1/4 NE 1/4 of Sectiort 18,T5S, R4W, U.S.B.&M. Duchesne County, Utah. -

SB9°54'30"W- 5124.01' (Meas.) '''"°'"""°"" BASIS OF ELEVATION

set stoneBENCH MARK (M67) LOCATED IN THE SW 1/4 OF ŠECTION9, T5S, R4W, U.S.B.&M. TAKEN FROM THE DUCHESNE SEQUADRANGLE,UTAH, DUCHESNE COUNTY, 7.5 MINUTE QUAD.R Lot 1 1 o (TOPOGRAPHIC MAP) PUBLISHED BY THE UNITED STATESRDEPARTMENTOF THE INTERIOR, GEOLOGICALSURVEY. SAID5 4 S7A 7E TR/BALý'1-18-54 ELEVATIONIS MARKED ON CAP AS BEING 6097 FEET.WW

Elev. Unyroded Ground = 6461' 586, BASIS OF BEARINGS--- BASIS OF BEARINGS IS A G.P.S. OBSERVATION.

Lot 2N

18

o Lot 3SCALE

CERTlFICATETHIS IS TO CERTIFYTHAT THE A PARED FROMFIELD NOTES OF ACTUAL SUR ER MYSUPERVISIONAND THAT THE TRUE CT TO THEBEST OF MY KNOWLEDGEA

Lot 4

R D SU VERE TRA 0. 13

Revised: 6-6-06 K.G. TAT UTSet Marked Stone Pile of Stones Set Marked Stone n$Û

NB9°58'2J"W- 2482.73' (Meas.) NB9°JS'46"W

- 2642.44' (Meas.)2' UINTAH ENGINEERING & URVEYING

86 SOUTH 200 EAST - VERNAL, UTAH 84078LEGEND (NAD 83)

(435) 789-1017LATITUDE=

40°03'02.85" (40.050792) SCALE DATE SURVEYED: DATE DRAWN:= 90 SYMBOL LONGITUDE=110°22'15.18" (110.370883) 1" = 1000' 02-10--06 o4-1o-o6

= PROPOSEDWELL HEAD. (NAD 27) PARTY REFERENCESLATITUDE = 40°03'03.00" (40.050833) 8.H. J.T. c.G. G.L.O. PLATA = SECTION CORNERS LOCATED.

WEATHER FILELONGITUDE= 110°22'12.63" (110.370175) COOL UTE/FNR,

6

TI

LEGEND: UTE/FNR, LLC.PROPOSED LOCATION N STATE TRIBAL #1-18-54

SECTION 18, TSS, R4W, U.S.B.&M.1068' FNL 586' FEL

Uintah Engineering & Land Surveying T Ö POGË¯Ä

PH I c 04 07 0685 South 200 East Vernal, IJtah 84O78 M A P ONTH DAY YEAR

(435) 789-1017 * FAX (435) 789-1813scAu "-2000' ww¾ _18Ao

PROPOSED LOCATION:

PROPOSED ACCESS FOR

PROPOSED ACCESS FORPR POSED ACCESS FOR THE #11-18-54 0.5 M .

+/- -

LEGEND: UTE/FNR, LLC.EXIS11NG ROAD N STATE TRIBAL #1-18-54

----------- PROPOSED ACCESS ROAD SECTION 18, T5S, R4W, U.S.B.& M.1068' FNL 586' FEL

Uintah Engineering & Land Surveying TOPOGR A PH I c 04 0 06 m85 South 200 East Vernal, LJtah 84078 Î 11 Ÿ MONTI DAY YEAR i $

(435) 789-1017 * FAX (435) 789-1813SCALE:1" =2000' DRAWNBY:C.P. REVISED:06-12-06

PROPOSED LOCATION:

LEGEND: UTE/FNR, LLC.y DISPOSAL WELLS WATER WELLS N STATE TRIBAL #1-18-54e PRODUCING WELLS ABANDONED WELLS SECTION 18, TSS, R4W, U.S.B.&M.g SilUT IN WELLS & TEMPORARILY ABANDONED 1068' FNL 586' FEL

- Uintah Engineering & Land Surveying TOPOGR A PH I c 04 07 0685 South 200 East Vernal, Utah 84078 M A P mosTu »Av vtan(435) 789-1011 * FAX (438) 189-1813

SCALE:1" = 2000· DRAWNBY:C.R

APPROXIMATE TOTAL PIPELINE DISTANCE = 2,135' +/-

LEGEND: UTE/FNR, LLC.PROPOSED ACCESS ROAD N STATE TRIBAL #1-18-54

----------- PROPOSED PIPELINEPROPOSED PIPELINE SECTION 18, T5S, R4W, U.S.B.&M.

------ ---- (SERVICINGOTHERWELLS) 1068' FNL 586' FEL

Uintah Engineering & Land Surveying TOPOGR A PH I e 04 07 0685 South 200 East Vernal, Utah 84078 M A P MONTH DAY YEAR

(435) 789-1017 * FAX (435) 789-1813SCALE:I" = 1080' DRAWNBY:C.P. REVISED:

,

' e eSTATE OF UTAH FORM 9

DEPARTMENT OF NATURALRESOURCESDIVISIONOF OIL, GAS AND MINING LEASEDESIGNATIONANDSERIALNUMBER:

14-20-H62-5035

SUNDRY NOTICES AND REPORTS ON WELLS 6. I NDIAN,ALLOTTEEORTRIBENAME:

7. UNITor CA AGREEMENT NAME:Do not use thisform for proposals todrillnew wells, significantly deepen existing wells below current bottom-hole depth, reenter plugged wells, or to

drill horizontal laterals. Use APPLICATION FOR PERMIT TO DRILLform forsuch proposals.

1. TYPEOFWELLOIL WELL GAS WELL Q OTHER S

aE Ar baanI1 - 4

2. NAMEOF OPERATOR: 9. API NUMBER:

FIMLNatural Resources, LLC 43013331703. ADDRESS OF OPERATOR: PHONE NUMBER: 10. FIELDAND POOL, OR WILDCAT:

410 17th St. Ste 900 Denver STATE CO ZIP 80202 (303) 893-5090 Brundage Canyon4. LOCATION OF WELL

FOOTAGES AT SURFACE: ,Û ... & 586 FEi.. COUNTY: ÛU0ÑOS

QTR/QTR, SECTION, TOWNSHIP, RANGE, MERIDIAN: NENE 18 5S 4W STATE:UTAH

ii. CHECK APPROPRIATE BOXES TO INDICATENATUREOF NOT1CE,REPORT, OR OTHER DATATYPE OF SUBMISSION TYPE OF ACTION

O ACIDIZE DEEPEN REPERFORATE CURRENT FORMATIONNOTICE OF INTENT

(Submit in Duplicato) ALTER CASING FRACTURE TREAT SIDETRACK TO REPAIR WELL

Approximate date work willstart: CASING REPAIR NEW CONSTRUCTION TEMPORARILYABANDON

CHANGE TO PREVIOUS PLANS OPERATOR CHANGE TUBING REPAIR

CHANGE TUBING PLUG AND ABANDON VENT OR FLARE

O SUBSEQUENT REPORT CHANGE WELL NAME PLUG BACK WATER DISPOSAL(Submît Original Form Only)

CHANGE WELL STATUS PRODUCTION (START/RESUME) WATER SHUT-OFFDate of work completion:

COMMINGLEPRODUCING FORMATIONS RECLAMATIONOF WELLSITE OTHER: Request for permit

O CONVERT WELL TYPE RECOMPLETE - DIFFERENT FORMATION OXÍGOSiOn

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

FIML Natural Resources, LLC is requesting the State Tribal 1-18-54 permit be extended, due to the delay in getting theapproval from the BLM. FIMLhas not yet received an approved permit from the BLM.

Approvedby theUtah Divisionof

Oil,Gas and Mining

Date:y es -o.

_ RECEIVED

DIV.0FOIL,GAS&MINING

NAME (PLEASE PRINT) Cassandra Parks TITLE Operations Assistant

SIGNATURE DATE /

(This space for State use only)

(5/2000) (See Instructions on Reverse

Application for Permit to DriHRequest for Permit Extension

Validation(this form should accompany the Sundry Notice requesting permit extension)

API: 4301333170 iWell Name: State Tribal 1-18-54

Location: NENE 1,068' FNL & 586' FEL Sec 18 T-5S R-4W

Company Permit issued to: FIML Natural Resources, LLCDate Original Permit Issued: 6/12/2006

The undersigned as ownerwithlegal rights to drill on the property as permittedabove, hereby verifles that the information as submitted in the previouslyapproved application to drill, remains valid and does not require revision.

Following is a checklist of some items related to the application,which should beverified.

if located on private land, has the ownership changed, if so, has the surfaceagreement been updated? Yes O NoO

Have any wells been drilled in the vicinityof the proposed well which would affectthe spacing or siting requirements for this location? YesO Nom

Has there been any unit or other agreements put in place that could affect thepermitting or operation of thisproposed well? YesEl Nom

Have there been any changes to the access route including ownership, or right-of-way, which could affect the proposed location? YesONo12l

Has the approved source of water for drilling changed? YesO NoO

Have there been any physical changes to the surface location or access routewhîchwillrequire a change in plans from what was discussed at the onsiteevaluation? Yes O NoO

Is bonding still in place, which covers this proposed well?Yesl21NoO

Sigkifûre Date

Title: Cassandra Parks

Representing: FIML Natural Resources,


June 4, 2007



RE: State Tribal 1-18-54NENE Sec 18 T-5S R-4WDuchesne County, Utah

Dear Ms. Mason:

Enclosed is the following information concerning the referenced well.

Sundry Notice - Requesting a Permit Extension (corrected footages)

If any questions arise or additional information is required, please contact me at 303-893-5090.

Sincerely,

Cassandra ParOperations Assistant

/cp RECEIVEDEnclosures:

JUNO52007DIV.0F01L,GAS&MINING

410 17* Street, Suite 900 * Denver, CO 80202 * (303)893-5073 * Facsimile (303)


June 2, 2008



RE: Source of Drilling Water

Dear Ms. Mason:

FIML Natural Resources, LLC water for drilling operations will now be hauled by BettsTrucking. It will come from Duchesne City, Utah. The water right number is 43-3651.

If any questions arise or need additional information is required, please contact the undersigned at303-893-5090.

Cassandra ParksRegulatory Specialist

/cp

RECEIVEDJUNO3 2008

DIV,OFOIL,GAS&MINING

410 17 Street, Suite 900 * Denver, CO 80202 * (303)893-5073 * Facsimile (303)

O OSTATE OF UTAH FORM 9

DEPARTMENTOF NATURALRESOURCES' DIVISlONOF OIL, GAS AND MINING 5. LEASEDESIGNATIONANDSERIALNUMBER:14-20-H62-5035

6. IF INDIAN,ALLOTTEEOR TRIBE NAME:SUNDRY NOTICES AND REPORTS ON WELLS Ute

7. UNITor CA AGREEMENT NAME:Do not use thisform for proposals to drill new wells, significantly deepen existing wells below current bottom-hole depth, reenter plugged wells, or to

drill horizontal laterals. Use APPLICATIONFOR PERMIT TO DRILLform for such proposals.

1. TYPE OF WELL 8. WELL NAMEand NUMBER:OIL WELL GAS WELL OTHER State Tribal 1-18-54

2. NAMEOF OPERATOR 9. API NUMBER:

FIML Natural Resources, LLC 43013331703. ADDRESS OF OPERATOR: PHONE NUMBER: 10. FIELDAND POOL, OR WILDCAT:

410 17th St. Ste 900 y Denver STATE CO zi,80202 (303) 893-5090 Brundage Canyon4. LOCATIONOF WELL

FOOTAGESATSURFACE: 1,068' FNL & 586' FEL coUNTY: ÛUÛÍTOS O

QTR/QTR, SECTION, TOWNSHIP, RANGE, MERIDIAN: NENE 18 5S 4W STATE:UTAH

11. CHECK APPROPRIATE BOXES TO INDICATENATURE OF NOTICE, REPORT, OR OTHER DATATYPE OF SUBMISSION TYPE OF ACTION

ACIDIZE DEEPEN REPERFORATE CURRENT FORMATIONNOTICE OF INTENT

(Submit in Duplicate) ALTER CASING FRACTURE TREAT SIDETRACKTO REPAIR WELL

Approximate date work will start: CASING REPAIR NEW CONSTRUCTION TEMPORARILYABANDON

CHANGE TO PREVIOUS PLANS OPERATOR CHANGE TUBINGREPAIR

CHANGE TUBING PLUG ANDABANDON VENT OR FLARE

O SUBSEQUENT REPORT CHANGE WELL NAME PLUG BACK WATER DISPOSAL(Submit Original Form Only)

CHANGE WELLSTATUS PRODUCTION (START/RESUME) WATER SHUT-OFFDate ofwork completion:

COMMINGLEPRODUCING FORMATIONS RECLAMATIONOF WELL SITE OTHER: Request for permitCONVERT WELLTYPE RECOMPLETE - DIFFERENT FORMATION OXÍODSIOD


FIML Natural Resources, LLC is requesting the State Tribal 1-18-54 permit be extended, due to the delay in getting theapproval from the BLM. FIMLhas not yet received an approved permit from the BLM.


Oil,Gas and Mining

By:

NAME(PLEASE PRINT) Cassandra Parks TITLE Regulatory Specialist

SIGNATURE a DATE 6/2/2008

(This space for State use only) RECEIVEDJUNO3 2008

(5/2000) (See instructions on Reverse

O O

Application for Permit to DrillRequest for Permit Extension

Validation(thisform should accompany the Sundry Notice requesting permit extension)

API: .4301333170

Well Name: State Tribal 1-18-54


Company Permit Issued to: FIML Natural Resources, LLCDate Original Permit Issued: 6/12/2006

The undersigned as owner with legal rights to drillon the property as permittedabove, hereby verifies that the information as submitted in the previouslyapproved application to drill, remains valid and does not require revision.

Following is a checklist of some items related to the application, which should beverified.

If located on private land, has the ownership changed, if so, has the surfaceagreement been updated? YesONolZI


Has there been any unit or other agreements put in place thatcould affect thepermitting or operation of this proposed well? YesONolZl

Have there been any changes to the access route including ownership, or right-of-way, which could affect the proposed location? YesONo12l

Has the approved source of water for drillingchanged? YeslZINoO

Have there been any physical changes to the surface location or access routewhich willrequire a change in plans from what was discussed at the onsiteevaluation? YesO NoO

Is bonding still in place, which covers thisproposed well? YeslZINoO

6/2/2008

Signature Date

Title: Regulatory SpecialistRECENED

Representing: FIML Natural Resources, LLC

STATE OF UTAH FORM 9

O DEPARTMENT OF NATURALRESOURCESDIVISIONOF OIL, GAS AND MININ 5. LEASEDESIGNATIONANDSERIALNUMBER:

14-20-H62-5035

SUNDRY NOTICES AND REPORTS ON WELLS 6 N AdNALLOTTEbEeORTRIBENAME:

7. UNITor CA AGREEMENT NAME:Do not use this form for proposals todrill new wells, significantly deepen existing wells below current bottom-hole depth, reenter plugged wells, or to

drill horizontal laterais. Use APPLICATION FOR PERMIT TO DRILLform forsuch proposals.

1. TYPE OF WELL 8. WELL NAMEand NUMBER:OIL WELL Ü GAS WELL OTHER State Tribal 1-18-54

2.NAMEOFOPERATOR: 9.APINUMBER:

FIML Natural Resources, LLC 43013331703. ADDRESS OF OPERATOR: PHONE NUMBER: 10. FIELDAND POOL, OR WILDCAT:

410 17th St. Ste 900 CITY STATE CO ZIP 80202 (303) 899-5603 Brundage Canyon4. LOCATIONOF WELL

FOOTAGESATSURFACE: 1,068' FNL & 586' FEL COUNTY: Duchesne

QTR/QTR, SECTION, TOWNSHIP, RANGE, MERIDIAN: NENE 18 SS 4W STATE:UTAH

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

O ACIDIZE DEEPEN REPERFORATE CURRENT FORMATIONNOTICE OF INTENT

(Submit in Duplicate) ALTER CASING FRACTURE TREAT SIDETRACKTO REPAIR WELL

Approximate date work willstart: CASING REPAIR NEW CONSTRUCTION TEMPORARILYABANDON

O CHANGE TO PREVlOUS PLANS OPERATOR CHANGE TUBING REPAIR

O CHANGE TUBING PLUG ANDABANDON VENT OR FLARE

SUBSEQUENT REPORT CHANGE WELL NAME PLUG BACK WATER DISPOSAL(Submit Original Form Only}

O CHANGE WELL STATUS PRODUCTION (START/RESUME) WATER SHUT-OFFDate of work completion:

COMMINGLE PRODUCING FORMATIONS RECLAMATIONOF WELL SITE OTHER: Request for permitCONVERT WELL TYPE RECOMPLETE -DIFFERENT FORMATION OXÍ80SiOD

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

FIMLNatural Resources, LLC is requesting the State Tribal 1-18-54 permit be extended, due to the delay in getting theapproval from the BLM. FIMLhas not yet received an approved permit from the BLM. Request for Permit Extension validationis attached.


Oil,Gas and Mining

COPYSENTTOOPERATOR '

NAME(PLEASE PRINT) Elaine Winick TITLE Regulatory Specialist

SIGNATURE DATE 6/1/2009

(This space for State use only)

RECEIVEDJUNO3 2009

(5/2000) (See Instructions on Reverse Side)OlV.0FOlt,GAS&

Application for Permit to DrillRequest for Permit Extension

Validation(thisform should accompany the Sundry Notice requesting permit extension)

API: 4301333170Well Name: State Tribal 1-18-54


Company Permit Issued tO: FIML Natural Resources, LLCDate Original Permit Issued: 6/12/2666

The undersigned as owner with legal rights to drill on the property as permittedabove, hereby verifies that the information as submitted in the previouslyapproved application to drill, remains valid and does not require revision.

Following is a checklist of some items related to the application, which should beverified.

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


Has there been any unit or other agreements put in place that could affect thepermitting or operation of this proposed well? YesO No2

Have there been any changes to the access route including ownership, or right-of-way, which could affect the proposed location? YesO No IZI

Has the approved source of water for drilling changed? YesO NoO

Have there been any physical changes to the surface location or access routewhich willrequire a change in plans from what was discussed at the onsiteevaluation? YesO NoO

Is bonding still in place, which covers this proposed well? YesŒNoO

6/1/2009

Signature Date

Title: Regulatory Specialist

Representing: FIML Natural Resources, LLC

RECEIVEDJUNO3 2009

DIV.0FOlL,GAS&

API Well No: 43013331700000

STATE OF UTAHDEPARTMENT OF NATURAL RESOURCES

DIVISION OF OIL, GAS, AND MINING

FORM 9

5.LEASE DESIGNATION AND SERIAL NUMBER: 14-20-H62-5035

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:

1. TYPE OF WELL Oil Well

8. WELL NAME and NUMBER: ST TRIBAL 1-18-54

2. NAME OF OPERATOR: FIML NATURAL RESOURCES, LLC (FNR)

9. API NUMBER: 43013331700000

3. ADDRESS OF OPERATOR: PHONE NUMBER: 410 17th Street Ste 900 , Denver, CO, 80202 303 893-5077 Ext

9. FIELD and POOL or WILDCAT: BRUNDAGE CANYON

4. LOCATION OF WELL FOOTAGES AT SURFACE: 1068 FNL 0586 FEL QTR/QTR, SECTION, TOWNSHIP, RANGE, MERIDIAN: Qtr/Qtr: NENE Section: 18 Township: 05.0S Range: 04.0W Meridian: U

COUNTY: DUCHESNE

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:

12/31/2010

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:


FIML Natural Resources, LLC is requesting the State Tribal 1-18-54 permit beextended, due to the delay in getting the approval from the BLM. FIML has not

yet received an approved permit from the BLM.

NAME (PLEASE PRINT) PHONE NUMBER Karin Kuhn 303 899-5603

TITLE Sr. Drilling Technician

SIGNATURE N/A

DATE 7/30/2010

August 09, 2010

iPI Well No: 43013331700000

FORM 9


DIVISION OF OIL, GAS, AND MINING 4E DE2sI50NA5TION 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 e×isting 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.

1. TYPE OF WELL 8. WELL NAME and NUMBER:Oil Well ST TRIBAL 1-18-54

2. NAME OF OPERATOR: 9. API NUMBER:FIML NATURAL RESOURCES, LLC (FNR) 43013331700000

3. ADDRESS OF OPERATOR: PHONE NUMBER: 9. FIELD and POOL or WILDCAT:410 17th Street Ste 900 , Denver, CO, 80202 303 893-5077 Ext BRUNDAGE CANYON

4.LOCATIONOFWELL COUNTY:FOOTAGES AT SURFACE: DUCHESNE

1068 FNL 0586 FELQTR/QTR, SECTION, TOWNSHIP, RANGE, MERIDIAN: STATE:

Qtr/Qtr: NENE Section: 18 Township: 05.05 Range: 04.0W Meridian: U 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

12/31/2010CHANGE 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.

FIML Natural Resources, LLC is requesting the State Tribal 1-18-54 permit beextended, due to the delay in getting the approval from the BLM. FIML has not Approved by the

yet received an approved permit from the BLM. Utah Division ofOil, Gas and Mining

Date: Au st 09, 2010

By:

NAME (PLEASE PRINT) PHONE NUMBER TITLEKarin Kuhn 303 899-5603 Sr. Drilling Technician

SIGNATURE DATEN/A

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 43013331700000

API: 43013331700000Well Name: ST TRIBAL 1-18-54

Location: 1068 FNL 0586 FEL QTR NENE SEC 18 TWNP 050S RNG 040W MER UCompany Permit Issued to: FIML NATURAL RESOURCES, LLC (FNR)

Date Original Permit Issued: 6/12/2006

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: Karin Kuhn Date: 7/30/2010

Title: Sr. Drilling Technician Representing: FIML NATURAL RESOURCES, LLC (FNR)

July 30, 2010July 30, 2010

August 09, 2010

UTAH

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

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

OTI BAS Br MlNTNG



Location: 1068 FNL 0586 FEL QTR NENE SEC 18 TWNP 0505 RNG 040W MER UCompany Permit Issued to: FIML NATURAL RESOURCES, LLC (FNR)



•If located on private_land, has the ownership changed, if so, has the surface agreement beenupdated? I___|I Yes I_Ð_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:___) Yes _®_) No

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

• Has the approved source of water for drilling changed? I __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 I®I No

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

Oil, Gas and MiningSignature: Karin Kuhn Date: 7/30/2010

Title: Sr. Drilling Technician Representing: FIML NATURAL RESOURCES, LLÑ¾¾R) August 09, 2010

By:

RECEIVED July 30,



FORM 9


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.






9. API NUMBER: 43013331700000




COUNTY: DUCHESNE

STATE: UTAH

11.




12/31/2011















FIML Natural Resources, LLC is requesting the State Tribal 1-18-54 permit beextended, due to the delay in getting the approval from the BLM. FIML has notyet received an approved permit from the BLM. Request for Permit Extension

validation is attached.

NAME (PLEASE PRINT) PHONE NUMBER Karin Kuhn 303 899-5603

TITLE Sr. Drilling Technician

SIGNATURE N/A

DATE 6/15/2011

06/20/2011

Jun. 15, 2011

Sundry Number: 15956 API Well Number: 43013331700000Sundry Number: 15956 API Well Number: 43013331700000

FORM 9STATE OF UTAH

DEPARTMENT OF NATURAL RESOURCESDIVISION OF OIL, GAS, AND MINING 4

HD6E2-50NA5TIONAND SERIAL NUMBER:


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.


2. NAME OF OPERATOR: 9. API NUMBER:FIML NATURAL RESOURCES, LLC (FNR) 43013331700000

3. ADDRESS OF OPERATOR: PHONE NUMBER: 9. FIELD and POOL or WILDCAT:410 17th Street Ste 900 , Denver, CO, 80202 303 893-5077 E×t BRUNDAGE CANYON

4.LOCATIONOFVVELL COUNTY:FOOTAGES AT SURFACE: DUCHESNE

1068 FNL 0586 FELQTR/QTR, SECTION, TOWNSHIP, RANGE, MERIDIAN: STATE:

Qtr/Qtr: NENE Section: 18 Township: 05.05 Range: 04.0W Meridian: U 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





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




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

FIML Natural Resources, LLC is requesting the State Tribal 1-18-54 permit beextended, due to the delay in getting the approval from the BLM. FIML has notyet received an approved permit from the BLM. Request for Permit Extension Approved by the

validation is attached. Utah Division ofOil, Gas and Mining

Date: 06/20/2011

By:

NAME (PLEASE PRINT) PHONE NUMBER TITLEKarin Kuhn 303 899-5603 Sr. Drilling Technician

SIGNATURE DATEN/A 6/15/2011

RECEIVED Jun. 15,









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


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


Signature: Karin Kuhn Date: 6/15/2011

Title: Sr. Drilling Technician Representing: FIML NATURAL RESOURCES, LLC (FNR)

Jun. 15, 2011


UTAH



OTI GAS Rr MlNTNG



Location: 1068 FNL 0586 FEL QTR NENE SEC 18 TWNP 0505 RNG 040W MER UCompany Permit Issued to: FIML NATURAL RESOURCES, LLC (FNR)



•If located o_nprivate_land, has the ownership changed, if so, has the surface agreement beenupdated? I

_

i Yes igi No

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

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

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

• Has the approved source of water for drilling changed? I_

I Yes IÎiÏI 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 Yes ig:I No

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

Signature: Karin Kuhn Date: 6/15/2011Title: Sr. Drilling Technician Representing: FIML NATURAL RESOURCES, LLC (FNR)

RECEIVED Jun. 15,

RECEIVED: Apr. 17, 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: 43013331700000




COUNTY: DUCHESNE

STATE: UTAH

11.




12/31 /2012















FIML Natural Resources, LLC is requesting the State Tribal 1-18-54permit be extended due to the delay in getting the approval from the

BLM. FIML has not yet received an approved permit from the BLM.Request for Permit Extension validation is attached.

NAME (PLEASE PRINT) PHONE NUMBER Kristi Stover 303 893-5084

TITLE Sr Drilling Technicain

SIGNATURE N/A

DATE 4 /17 /2012

April 18, 2012


FORM 9STATE OF UTAH

DEPARTMENTOF NATURALRESOURCES5.LEASE DESIGNATION AND SERIAL NUMBER:DIVISION OF OIL, GAS, AND MINING 14-20-H62-5035


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.


2. NAME OF OPERATOR: 9. API NUMBER:FIMLNATURALRESOURCES, LLC(FNR) 43013331700000

3. ADDRESS OF OPERATOR: PHONE NUMBER: 9. FIELD and POOL or WILDCAT:410 17th Street Ste 900 , Denver, CO, 80202 303 893-5077 Ext BRUNDAGE CANYON

4. LOCATION OF WELL COUNTY:FOOTAGES AT SURFACE: DUCHESNE

1068 FNL 0586 FELQTRIQTR, SECTION, TOWNSHIP, RANGE, MERIDIAN: STATE:

QtrlQtr: NENE Section: 18 Township: 05.0S Range: 04.0W Meridian: U 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:


FIML Natural Resources, LLC is requesting the State Tribal 1-18-54 Approved by thepermit be extended due to the delay in getting the approval from the utah Division of

BLM. FIML has not yet received an approved permit from the BLM. Oil, Gas and Mining

Request for Permit Extension validation is attached. Date: April 18, 2012

By:

NAME (PLEASE PRINT) PHONE NUMBER TITLEKristi Stover 303 893-5084 Sr Drilling Technicain

SIGNATURE DATEN/A 4/17/2012

RECEIVED: Apr. 17,

RECEIVED: Apr. 17, 2012







Date Original Permit Issued: 6 /12 /2006

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: Kristi Stover Date: 4 /17 /2012

Title: Sr Drilling Technicain Representing: FIML NATURAL RESOURCES, LLC (FNR)


UTAH



OTI. EMI Pr N1NTrie



Location: 1068 FNL 0586 FEL QTR NENE SEC 18 TWNP 050S RNG 040W MER UCompany Permit Issued to: FIMLNATURALRESOURCES, LLC(FNR)


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? 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: Kristi Stover Date: 4/17/2012Title: Sr Drilling Technicain Representing: FIMLNATURALRESOURCES, LLC(FNR)

RECEIVED: Apr. 17,

State of UtahDEPARTMENT OF NATURAL RESOURCES

MICHAEL R. STYLER

GAR . BERT ExecutiveDirector

Governor Division of Oil, Gas and MiningGREG BELL JOHN R. BAZA

Lieutenant Governor Division Director

December 7, 2012

Kristi StoverFIML Natural Resources, LLC410 17TH Street, Suite 900Denver, CO 80202

Re: APDs Rescinded for FIML Natural Resources, LLCDuchesne County

Dear Ms. Stover:

Enclosed find the list of APDs that you requested to be rescinded. No drillingactivity at these locations has been reported to the division. Therefore,approval to drill these wells is hereby rescinded, effective November 29, 2012.

A new APD must be filed with this office for approval prior to thecommencement of any future work on the subject location.

If any previously unreported operations have been performed on this welllocation, it is imperative that you notify the Division immediately.

Sincerely,

Diana MasonEnvironmental Scientist

cc: Well FileBureau of Land Management, VernalSITLA, Ed Bonner

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 • www.ogm.utah gov

43-013-33949 UTE TRIBAL 15-11-5443-013-33169 UTE TRIBAL 3-13-5443-013-33170 ST TRIBAL 1-18-54 SITLA43-013-33171 ST TRIBAL 3-18-54 SITLA43-013-34256 UTE TRIBAL 11-18-5443-013-33317 UTE TRIBAL

United States Department of the InteriorBUREAU OF LAND MANAGEMENT

Green River DistrictVernal Field Office

H a 170 South 500 EastVernal, UT 84078

http://www.blm.gov/ut/st/en/fo/vernal.html

April 1, 2013

IN REPLY REFER TO:3160 (UTGO11)

Krista MechamBerry Petroleum Company4000 South 4028 WestRoosevelt, UT 84066

Re: Request to Return APDWell No. State Tribal 1-18-54NENE, Sec. 18, T5S, R4WDuchesne County, UtahLease No. 14-20-H62-5035

Dear Ms. Mecham:

The Application for Permit to Drill (APD) for the above referenced well received in this office onAugust 6, 2006 is being returned unapproved per your request to this office in an emailmessage to Land Law Examiner Robin R. Hansen received on March 6, 2013. This was a FIMLAPD that was acquired by Berry. Ifyou intend to drill at this location at a future date, a new APDmust be submitted.

Ifyou have any questions regarding APD processing, please contact Robin R. Hansen at (435)781-3428.

Sincerely,

Is/ Jerry Kenczka

Jerry KenczkaAssistant Field ManagerLands & Mineral Resources

Enclosures

cc: UDOGMBIA

bcc: Well File APR16 2013

bradley g. hill

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