FIL APR 2 5 2016

ECRETARY, BOARD OF OIL, GAS a MIMNO

BEFORE THE BOARD OF OIL, GAS AND MINING DEPARTMENT OF NATURAL RESOURCES

STATE OF UTAH

IN THE MATTER OF THE REQUEST FOR AGENCY

ACTION OF CRESCENT POINT ENERGY U.S.

CORP FOR AN ORDER AUTHORIZING THE

FLARING OF GAS IN EXCESS OF THE AMOUNTS

ALLOWED UNDER UTAH ADMIN. CODE RULE

R649-3-20(I.l) FROM THE GARDNER STATE 1-26-

3-2E WELL LOCATED IN THE NE~NE~ OF

SECTION 26 IN TOWNSHIP 3 SOUTH, RANGE 2

EAST, USM, UINTAH COUNTY, UTAH

PETITIONER'S EXHIBITS

Docket No. 2016-012

Cause No. 131-145

Pursuant to Utah Admin. Code Rule R641-1 05-500, Petitioner Crescent Point

Energy _u.s. Corp ("CPE"), by and through its counsel of record, Beatty & Wozniak, P.C.,

hereby respectfully submits the following exhibits intended to be offered into evidence in

support of its Request for Agency Action ("RAA") at the May 25, 2016 hearing on this

cause:

EXHIBIT "A"- CPE's witnesses' resumes (collectively 2 pages):

• Derek Pimm -Landman • Katherine Matthews - Sr. Development Engineer

EXHIBIT "B" - General reference location plat ( 1 page).

EXHIBIT "C" - Plat reflecting location of well in subject Section 26 and mineral and leasehold ownership (1 page).

EXHIBIT "D" - Plat reflecting planned pipeline from existing pipeline to the 1-26 Well (1 page).

EXHIBIT "E" - Approval by Division for continued testing with total amounts flared not to exceed SOMMCF (3 pages).

2193.32

EXHIBIT "F" - True and correct copies of return receipts indicating, as of April 25, 2016, receipt of a copy of the RAA by all parties identified in the Certificate of Service dated April 12, 2016, on file in this cause (to be supplemented prior to hearing) (1 page).

EXHIBIT "G" - Actual Production ofthe 1-26 Well (1 page).

EXHIBIT "H" - Gas Analysis of the 1-26 Well (also previously submitted as Exhibit "2" to the RAA) (1 page).

EXHIBIT "I" - Projected Production of the 1-26 Well (1 page).

EXHIBIT "J"- Economic Evaluation including a description of the amount of gas used in lease operation (1 page).

EXHIBIT "K" - Flaring Justification (1 page).

Respectfully submitted this 251h day of April, 2016.

By:

BEATTY & WOZNIAK, P.C.

;:.; David P. Bolda 5406 W. 11000 N., Suite 103-221 Highland, UT 84003 Telephone: (801) 676-2311 Facsimile: (800) 886-6566 E-Mail: DBolda@bwenergylaw.com Attorneys for Petitioner Crescent Point Energy U.S. Corp

2

Education

Derek 0. Pimm 555 171

h Street, Suite 1800, Denver, CO 80202 (303) 308-6275

dpimm@crescentpointenergy.com

Denver University - Completed - Spring 2012 -Certificate in Petroleum Land Management

University of Oklahoma- May 2009 graduation -Bachelor of Arts & Sciences in Economics -Minor in Political Science & History

Work History Crescent Point Energy U.S. Corp- Denver, CO (September 2014- Present)

Senior Sw·face Landman Responsible for acquiring Surface Use and Right-of-Way Agreements necessary for Oil and Gas operations in company's assets. Manage Surface Land team as well as brokers for company's assets in Utah, North Dakota and Colorado. Ensure community relations among Land Owners are kept in good standing as well as understanding the company's goals.

Noble Energy Inc.- Greeley, CO (January 2012 - September 2014) Lead Operations Landman - Subsequent Operations

Help coordinate and schedule recompletion and integrity operations that include setting retrievable bridge plugs, increasing cement coverage in the annulus to completely cover water aquifers, casing repairs, pumping unit installation, as well as plug & abandonment of the well for Noble Energy wells in the Wattenberg Field of the Denver­Julesberg basin. Negotiate with Land Owners of Weld County, Colorado in reference to surface issues that include Surface Use Agreements and Right Of Ways, well site location, property damage, as well as ingress and egress. Communicate to multiple departments within Noble Energy, ensuring that each work over rig is moving efficiently, Land Owners were properly notified according to requirements of the State of Colorado, and handling special projects in a timely manner.

Paschal .Energy Services- Douglas, WY (November 2010- January 2012) Field Landman

Successfully chained title while assisting with cmative and leasing efforts. rn a short time was able to gain respect from colleagues and earn a position on a review committee that was responsible for quality work turned into our client. Became a liaison to the Bureau of Land Management for the Brokerage and gained organizational skills that were needed to maintain a good relationship. Was quickly rewarded with leadership roles that helped the Brokerage achieve a common goal of great quality work after just a few months.

Colorado State Capitol - Denver, CO (20 10 Legislative Session)

Organizations

Legislative Aide Successfully managed the office of a Colorado State Representative by handling communications while interacting with walk-in constituents as well as other Representatives and political supporters. Skills gained included experience in an office environment, maintaining schedules, and professional interaction with many people.

American Association of Petroleum Landmen- AAPL (member since December 2010) Denver Association of Petroleum Landmen- DAPL (member since August 201 1)

EXIDBIT A- Docket No. 2016-012 Cause No. 131-145

WORK HISTORY 20 13-present

2009-2013

2008

2007

2006

EDUCATION 2005-2009

2001 -2005

OTHER

Katherine Matthews 555 17 Street, Suite 1800 • Denver, CO 80202 USA

CRESCENT POINT ENERGY U.S. CORP. Denver, USA Senior Development Engineer • Lead engineer for CPG's Utah properties- championed and executed a $175MM budget in 2015 • Accountable for meeting production, capital, and operating expense targets - lead a multi-disciplinary

team to meet these goals • Perform A&D evaluations for assets and competitors in the Uintah Basin, completed a $90MM deal

and have valued properties ranging from $1MM-$750MM • Provide engineering expert testimony at Utah Board of Oil and Gas hearings for initiatives such as

waterfloods and horizontal well development - have met with several Congressmen and Senators regarding Utah's oil and gas development

• Spearhead Utah's year end reserves process, provide semi-annual updates to the Board of Directors • Represent CPG at career fairs, screen resumes, interview candidates, and mentor engineering interns • Organize Denver Mission and Habitat for Humanity volunteering for the Engineering team

TALISMAN ENERGY INC. Reservoir Engineer • Optimized Chauvin 's legacy Mannville waterflood • Coordinated and evaluated year end reserves • Assessed land sale opportunities with volumetrics and numerical simulation • Mentored reservoir engineering students and represented Talisman at career fairs

Calgary, Canada

• Lead the Christmas Hamper program for two years for the North America Conventional group

TALISMAN ENERGY INC. Geology Summer Student

NEXEN INC. Summer Student

SHININGBANK ENERGY INCOME FUND LTD. Summer Student

Calgary, Canada

Calgary, Canada

Calgary, Canada

QUEEN'S UNIVERSITY Kingston, Canada Bachelor of Applied Science, Geological Engineering, First Class Honours • Dean's Scholar & Dean's Award (2006, 2007, 2008, & 2009) • Teacher's Assistant for APSC 151 , Earth Systems & Engineering (2007 & 2008) • iCon, Engineering Building Student Constable (2007-2009) • Corporate Sponsorship Manager for the Science Formal (2008) • ThankQ Student Alumni Representative, Grad Gift Coordinator (2008-2009)

HA VERGAL COLLEGE Toronto, Canada • First Soprano in the Havergal Choir (2001-2005) • Student Council and Community Council Member (2003-2005)

• Born in Canada - American and Canadian dual citizen • Successfully wrote and passed the CFA Level I examination in June 2012 • Over six years of international upstream oil and gas experience, Professional Engineer registered with

the Association of Professional Engineers and Geoscientists of Alberta

• Have testified at six Utah Oil, Gas, & Mining hearings to date - the last being December 9, 2015 (Docket No. 2015-026, Cause No. 131-141 )

~rdn~r Stet~ 12·25-3-2E Locatio1 Map UntuhCourq.~

MapC.Aied..lanu:~ry20.201S

~ Gardnef State 12-:z5.3-2E Pad * Cities and Towns

- MajorRoads

0 1.25 2.5 Miles

Minerals: State of Utah -100%

Unit WI (40 acres): Crescent Point Energy- 35% Bill Barrett Corp. - 65%

Ce Crescent Point

u !: m

~

Cp Crescent Point

Q

• i

Sundry Number : 70942 API Well Number: 43047551080000

FORM 9

STATE OF UTAH DEPARTMENT OF NATURAL RESOURCES -- -. --

DIVISION OF OIL, GAS, AND MINING 5.LEASE DESIGNATION AND SERIAL NUMBER: ML 49888

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

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

FOR PERMIT TO DRILL form for such proposals. -· - -

1. TYPE OF WELL 8. WELL NAME and NUMBER: Oil Well Gardner State 1-26-3-2E

-- - - . -2. NAME OF OPERATOR: 9. API NUMBER: CRESCENT POINT ENERGY U.S. CORP 43047551080000

3. ADDRESS OF OPERATOR: PHONE NUMBER: 9. FIELD and POOL or WILDCAT: 555 17th Street, Suite 750 , Denver, CO, 80202 720 880-3621 Ext UN DESIGNATED

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

0840 FNL 0657 FEL --- --- ------ ··-----QTRIQTR, SECTION, TOWNSHIP, RANGE, MERIDIAN: STATE:

Qtr/Qtr: NENE Section: 26 Township: 03 .0S Range: 02.0E Meridian: U UTAH

- -. -11.

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

TYPE OF SUBMISSION TYPE OF ACTION

D ACIDIZE D ALTERCASING 0 CASING REPAIR

../ NOTICE OF INTENT

0 CHANGE T O PREVIOUS PLANS D CHANGE TUBING Approximate date work will s tart : D CHANGE WELL NAME

7/29/2015 D CHANGE WELL STATUS 0 COMMINGLE PRODUCING FORMATIONS D CONVERT WELL TYPE

0 SUBSEQUENT REPORT 0 DEEPEN 0 FRACTURE TREAT D NEW CONSTRUCTION Date of Work Completion:

0 O PERATOR CHANGE 0 PLUG AND ABANDON D PLUGBACK

0 SPUD REPORT

D PRODUCTION START OR RESUME 0 RECLAMATION OF WELL SITE D RECOMPLETE DIFFERENT FORMATION

Date of Spud: 0 REPERFORATE CURRENT FORMATION D SIDETRACK TO REPAIR WELL D TEMPORARY ABANDON

0 TUBING REPAIR ,f VENT OR FLARE D WATER DISPOSAL

D DRILLING REPORT 0 WATER SHUTOFF 0 SJ TA STATUS EXTENSION D APO EXTENSION Report Date:

D WILDCAT WEll DETERMINATION D OTHER OTHER: I. I --

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

The Gardner State 1-26-3-2E reported first production on Approved by the August 1, 2015. At that time, and through the present date, Utah Division of

the Gardner State 1-26-3-2E was not connected into pipeline Oil, Gas and Mining

infrastructure and as a result, produced associated gas has Date: April 18, 2016

been flared but gas production was under the 1800 MCF a \)Y\. v:_ Oevt month limit. Crescent Point Energy ("CPE") plans to build a By:

pipeline to the well , and other wells in the surrounding area, but the Gardner State 1-26-3-2E is still flaring due to lack of

federal permit approvals for the connecting pipelines. continued on attachment Please Rrl·itw Attached Conditions of Appronl

- - -. -NAME (PLEASE PRINT) PHONE NUMBER TITLE Valari Crary 303 880-3637 Drilling And Completion Tech

-·-SIGNATURE DATE N/ A 4/5 /2016

-- ---

EXHIBIT E - Docket No. 2016-012 Cause No. 131-145

RECEIVED: Apr. 05, 2016

Sundry Number : 70942 API We ll Number: 43047551 080000

Oil, G"S & MINING

The Utah Division of Oil , Gas, and Mining

- State of Utah - Department of Natural Resources

Electronic Permitting System - Sundry Not ices

Sundry Conditions of Approval Well Number 43047551080000

Operator should take all steps available to conserve or market gas that will not cause waste or create adverse impact to the well or producing reservoi r. Total flared amount should not exceed

50 MMCF (R649-3-20-3 .2).

RECEIVED : Apr. 18, 2 016

Sundry Number : 70942 API Well Number: 43047551080000

The Gardner State 1-26-3-2E reported first production on August 1, 2015. At that time, and through the

present date, the Gardner State 1-26-3-2E was not connected into pipeline infrastructure and as a

result, produced associated gas has been flared but gas production was under the 1800 MCF a month

limit. Crescent Point Energy ("CPE") plans to build a pipeline to the well, and other wells in the

surrounding area, but the Gardner State 1-26-3-2E is still flaring due to lack of federal permit approvals

for the connecting pipelines. The Gardner State 1-26-3-2E was recently re-completed and subsequent

thereto, produced gas volumes increased significantly so that it is now above the 1800 MCF per month

limit. The produced gas volumes for March 2016 was approximately 9,824.6 MCF. The expected gas

volumes for April and May, when a formal Board Request for Agency Action can be heard, are not

expected to exceed 11,000 MCF per month. CPE does not want to choke this well back as it is an

exploratory well and is meant to test and understand the productive capabilities of the area.

Additionally, as CPE recently re-completed the well, it wants to understand the contribution of the

uphole formations that were re-completed. CPE will file a Request for Agency Action by April11, 2016,

to seek approval from the Board to flare, which will be heard on May 25, 2016. However, CPE is

concerned that shutting-in the well until the date of the hearing risks a reduction of long term ultimate

recovery and possible formation damage. CPE respectfully requests approval from the Division to

temporarily flare from the Gardner State 1-26-3-2E above the 1800 MCF per month limit until the May

25, 2016 hearing date.

RECEIVED: Apr. 05, 2016

SENDER: COMPLETE THIS SECTION

• Complete items 1 , 2, and 3. Also complete item 4 if Restricted Delivery is desired.

111111111111 Ill I llllllllllll\11111111111111111

1. Article Addressed to:

¥ The State of Utah School and ~ Institutional Trust Lands Administcation

~

Attn: LaVonne J. Garrison -675 East 500 South, Suite 500 Salt Lake City, UT 84102

7015 173D DODO 4672 3316

COMPLETE THIS SECTION ON DELIVERY

A. Signature~ ~- . • ~ be-Agent

X /--..•D,.I-• ~ DAddressee

B. Receivef&-;-.! ~~ I C~i7 ~ t;r; D. Is delivery address different from item 1? 0 Yes

If YES, enter delivery address below: D No

3. Service Type 0 Certified Mail 0 Express Mall 0 Registered 0 Return Receipt for Merchandise

0 Insured Mail 0 C.O.D.

4. Restricted Delivery? (Extra Fee) 0 Yes

PS Form 3811, February 2004 Domestic Return Receipt 102595-02·M·1540 I

EXHIBIT F- Docket No. 2016-012 Cause No. 131-145

Cp Crescent Point

Gardner State 1-26-3-2E Production Chart 600.00

550.00

500.00

450.00

400.00

>: 350.00 Cll ;g

..c e 3oo.oo ,_

~ 250.00

200.00

150.00

100.00

50.00 I 1

---- --~r

l_

Randlett Operated Wells 01-26-03-02E GARDNER ST

0 .00 07/01/2015 07/29/2015 08/26/2015 09/22/2015 10/20/2015 11/17/2015 12/14/2015 01/11/2016 02/08/2016 03/06/2016

- Oil Production Gross (bbl/d)

- Oil Cut (%)

Date

- Water Production (bbl/d)

GOR (mscf/bbl)

Apr 09, 2016, 2:37PM VISAGET"

- Gas Production Gross (mcf/d)

20.00

Ci) 0 ;u

10.00 3 Ill 0 ~

~

5.00

0.00

" t: m

~

Gas Analysis GARDNER 1-26-3-2E 11-09-2015.txt Print Date Time: 11/09/2015 08:22

Analyzed By: Range Hunt Meter ID: GARDNER 1-26-3-2E

GARDNER 1-26-3-2E 11-09-2015 11-09-2015

Analysis Time: 11/09/2015 08:07 Flowing Temp.: 43 Deg. F calibration Elevation: 5060 ft

Camp

Propane Hydrogen sulfide IsoButane Butane NeoPentane IsoPentane Pentane Hexane+ Nitrogen Methane carbon Dioxide Ethane Hexane Heptane+ Heptane octane Nonane+ Nonane De cane undecane Dodecane Ethane­Propane + oxygen water Helium Hydrogen

UnNorm %

7.81573 0 . 00000 1. 20581 2.84151 0.00534 0.75967 0.89772 0.38020 0.39517

74.47227 0.66597

10.76837 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0 . 00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000

Normal %

7.79952 0.00000 1. 20331 2.83562 0.00533 0.75809 0.89586 0.37941 0 . 39435

74.31789 0.66459

10.74605 0.37941 0.00000 0.00000 0 . 00000 0 . 00000 0.00000 0.00000 0.00000 0 . 00000 0.00000 0 . 00000 0.00000 1. 74067 0.00000 0.00000

sample Type: Spot Flowing Pressure: 42 psig Location Elevation: 4783 ft

Liquids (USgal/MCF)

2.15755 0.00000 0.39538 0.89762 0.00196 0 .27838 0.32607 0.00000 0.04356

12.65068 0.11388 2.88565 0.15666 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0 . 00000 0.00000 0.00000 0.00000

Ideal Rel. Density (Btu/SCF)

196.24384 0.00000

39.13042 92.50630 0. 21316

30.33051 35.91225 0.00000 0.00000

750.61060 0.00000

190.17276 18 . 04428

0.00000 0.00000 0.00000 0.00000 0.00000 0 . 00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000

0 . 11875 0.00000 0.02415 0.05691 0 . 00013 0.01888 0 . 02232 0.00000 0.00381 0.41165 0 . 01010 0.11157 0.01129 0.00000 0.00000 0 . 00000 0.00000 0 . 00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000

Total 100 . 20776 100.00000 19 . 90741 1353.16406 0.79270 Elevation (+277ft) -0.42393

Inferior Wobbe 1506.1644 (Btu/SCF) (Btu/SCF)

compressibility 0.9957 (lbm/ft3)

Real Rel. Density 0.7927 (Btu/SCF)

Wet CV 1338.5457 (Btu/SCF) (Btu/SCF)

contract Temp. 60.0000 (deg F)

Number of Cycles 3 Atmospheric Pressure 12

Page 1

EXHIBITH

superior Wobbe 1529 . 9750

Density 0.0607

Ideal cv 1353.1641

Dry cv 1362 .1906

Contract Press. 14 . 7300 (psi a)

Connected Stream 1

Cp Crescent Point

Gardner State 1-26-3-2E Ultimate Recovery

~ 6' \2.

* 0::

a

€!XX)

5CXXl

1<XXl -1

-1 -

!'£Xl -

1 100

eo """'

i

10 -

8

GARDNER_STATE_1-26-3-2E

/ \ I

~ .

'

.. .. .. ..

Wor1<ing Forecast Parameters Phase : Oil Case Name : Case1 b : 1.2 Di : 0 .659856 A. e. qi : 107.093 bbl/d ti : 02/01/2016 te : 07/31/2060 Final Rate : 1.99862 bbl/d Cum. Prod. : 19.398 Mbbl

I Cum. Date : 02/01/2016 Resel'\eS : 107.899 Mbbl Resel'\eS Date : 07/31/2060 EUR : 127.297 Mbbl Forecast Ended By : Rate

I DB Forecast Date : 04/01/2016 Reser..e Type : None J

... .. .. . .. .. .. .. .. ~OODNER STAlE 1-26-:>21:

- roi( dltd )

CV.CDLIQ( bWd ) OICU(%)

r----r- ""T'-- -- 16

2015 Date ~' --- 17

H !:: fD

~

Gas Disposition Options

Gas Pipeline Alternatives: • Gas re-injection (storage) • Gas re-injection {EOR) • Electrical generation

~ All require extremely high capital investment ~ All would have 2-3+ years of permitting

• Lease use ~ Well produces more than the equipment requirE ~ Current production "'300 mcf/d, expected usage

mcf/d

Gas Pipeline (preferred option) : • CPG constructed riverbore in Ql 2015 • Now waiting on NEPA and various permit approvals • Six to eight week construction once approved

b

!: £D

~

Cp Crescent Point

Flaring Justification Operationa I:

• There is always a risk that when a well is shut-in it may not come back- especially with the nature of the waxy crude in the Uintah Basin.

• Additionally, shutting in wells costs capital to both shut them in (filling the annulus with scale inhibitor, etc.) and to start them back up (rig work/hot oil jobs).

Exploration: • In 2015, CPG drilled five wells east of its core property in

Randlett- the 1-26-3-2E produces from State minerals. • Since recompleting the 1-26, it is now one of the most

successful wells drilled in East Randlett- in order to understand the future potential of this acreage and the productivity of the recompleted zones, the well needs to remain on production.

• Once the pipeline is approved, CPG will tie this well in.

~

1-iii :E rl1