filed - fs.ogm.utah.gov...feb 26, 2020 · certificate of service docket no. 2020-001 cause no....

FILEDJAN 0I 2020

SECRFTARY BOARD OFon.' GAs.& M|NTNG

BEFORE THE BOARD OF OIL, GAS AND MININGDEPARTMENT OF NATURAL RESOURCES

STATE OF UTAH

IN THE MATTER OF THE REQUEST FOR

AGENCY ACTION OF FINLEY RESOURCES

INC. FOR AN ORDER MODIFYING THE

BOARD'S ORDER ENTERED IN CAUSE NO.

270-IO TO REDUCE THE HEELiTOESETBACKS FOR HORIZONTAL WELLS FROM

THE NORTFVSOUTH BOUNDAzuES OF THEESTABLISHED DRILLING LINITS FOR THEPRODUCTION OF OIL, GAS ANDASSOCIATED ITYDROCARBONS FROM THE

EOCENE MIDDLE AND LOWER GREEN

RIVER FORMATIONS AND PORTIONS OF

THE PALEOCENE WASATCH TRANSITIONALFORMATIONS, COMPRISED OF SECTIONS 20,

21,28 AND 29, TOWNSHIP 7 SOUTH, RANGE

20 EAST, SLM, UINTAH COUNTY, UTAH

REQUEST FOR AGENCY ACTION

Docket No. 2020-001

Cause No. 470-01

COME,S NOW, Finley Resources Inc. ("Finley"), acting by and through its

attorneys, MacDonald & Miller Mineral Legal Services, PLLC, and pursuant to Utah Code

Ann. $$ 40-6-5(3Xb) and 40-6-6, and hereby respectfully requests the Board of Oil, Gas

and Mining (the 'oBoard") to enter an order modiffing the Board's Order entered in Cause

No.270-10 on September 27,2018 (the *270-10 Order") to reduce the heel/toe setbacks

for horizontal wells from the North and South boundaries of the drilling units established

thereunder from 330 feet to 100 feet.

In support of this Request, Finley respectfully states and represents:

1. Finley is a Texas corporation with its principal place of business in Fort

Worth, Texas. Finley is duly qualified to conduct business in the State of Utah and bonded

with all relevant State and Federal agencies.

2. The oil, gas and hydrocarbons underlying the lands relevant to this Request

are owned by the United States of America and administered by the Burau of Land

Management ("BLM"), and are subject to the following oil and gas leases:

Lease

UTU-7s093 Sec. 20: NZzNE%, SEYAIE%, NW%Sec. 21: NZzNEY4,NWY4Sec. 28: SE%SW%Sec. 29: W%SW%, SEY4SW%, SW%SE%

UTU-89145 Sec.20: S%, SWT+NE%Sec. 2l : SW%, W%SEY4, SEY4SE%Sec. 28: NTrN%Sec. 29: Lands within Right-of-Way UTSL-047698

UTU-74417 Sec.21: SZzNE%, NE%SE%Sec.28: SY2NY2, N%SW%, SW%SW%

UTU-80689 Sec. 28: N%SE%, SW%SE%

UTU-85591 Sec.28: SE%SE%

UTU-80580 Sec. 29: N% less lands within Rightof-Way UTSL-047698

UTU-74837 Sec. 29: NE%SW%,NyzSEV4,SE%SEV4

The operating rights relevant to this Request in these leases are cunently owned by Finley

Production Co., L.P. and CH4 Energy - Finley Utah, LLC ("CH4-F"), both on behalf of

Lands

2

which Finley serves as their designated operator, Big West Exploration and Production

LLC, and Robert L. Bayless, Producer,LLC.

3. The following lands and leases are committed to the contracted Aurora

(Deep) Federal Unit (the "Unit") (UTU-82456X), which covers all depths below the Uinta

formation including the formations relevant to this Request:

Lease Lands

UTU-75093 Sec.20: NW%Sec.21: NW%

UTU-80689 Sec.28: N%SE%, SW%SE%

uru-8ss91 Sec.28: SEY4SE%,

and are included within the following Unit participating areas:

allT7S-M0E Total AcreagePA

Initial Green River-Wasatch PA D(uru-82456F)

2nd Revised Initial Green River-WasatchPA E (UTU-824s6c)

Initial Wasatch-Mesaverde PA K(IJTU-824s6K)

Sec.28: SE%

Sec. 17: SW%Sec. 19: NE%Sec.20: NW%

Sec. 16: W%,SE%Sec.21: NW%

160

480

640

Production from any portion of the respective participating arca is allocated on a pro-rata

acreage basis to the entire participating area. Finley serves as current Unit Operator.

J

4. Under the 270-10 Order, the Board established, on a pilot basis, overlapping

4}-acre (for vertical/directionally drilled wells, 640-acre (for short lateral (less than one

mile in length) horizontal wells), and 1 ,280-acre stand-up (vertical) (for long lateral (more

than one mile in length) horizontal wells) drilling units for the production of oil, gas and

hydrocarbons from the Eocene Middle and Lower Green River and the upper 1,000 feet of

the Paleocene Wasatch transitional formations, defined as follows:

The stratigraphic equivalent of the interval between the DualLaterolog depths of 5,018' MD for the top of the MahoganyBench and 8,638' MD for the base of the Paleocene Wasatchproductive zone in the BBC Aurora Federal 4-2lD-7-20 (APINo. 43-047-52633), located in the NW%NWY+, Section 21,Township 7 South, Range 20East, U.S.M.,

(the "Subject Formations"), for the following Uintah County, Utah lands to which Finley

refers to as its "Pelican Lake" prospect

Township 7 South. Range 20 East. SLM

Section 20:Section 21:Section 28:Section 29:

all of which are regular 640-acre sections (the "Subject Lands"), with numerous caveats.

5. Among the caveats imposed by the Board in the 270-10 Order is the

No producing interval of an authorized horizontal well may belocated closer than 330 feet laterally from the north and southboundaries of the applicable drilling unit so established, no

AllAllAllAll

4

following:

closer than 460 feet to the east and west boundaries of theapplicable drilling unit so established, and no closer than 330feet laterally from another horizontal well within the sameapplicable drilling unit so established, absent an exceptionlocation approval pursuant to Utah Admin. Code Rule R649-3-3.

6. Finley had originally requested the 330-ft. North/South setback as a

conservative protection against potential drainage of adjacent off-drilling unit lands

However, as reflected in Exhibit "O" admitted into evidence in hearing upon which the

270-10 Order was issued, the fracture orientation of the Subject Formation in the Pelican

Lake area, in conjunction with the anticipated frac half-length, reflects only 91 feet of

potential drainage from both the heel and toe of a horizontal well, leaving approximately

478 feet [(330-91 : 239) x 2] of potential unrecoverable hydrocarbon resource in the

respective drilling unit.

7. Although Finley has yet to drill a horizontal well on the Subject Lands due

to budget reallocation and completion of CH4-F's acquisition of Crescent Point Energy

lJ.S. Corp's Uinta Basin assetsl, it nevertheless has, during this period of time, gathered

and analyzed data from the Pelican Lake area and other horizontal well development in

which Finley has participated, including micro-seismic data from a nearby horizontal well,

I Since no drilling activity occurred during the first year of the 270-10 Order, no annual status report was submittedto the Board and the Utah Division of Oil, Gas and Mining.

5

yielding in increased confidence in the fracture orientation and frac half-length depicted on

Exhibit "o."

8. As a consequence, Finley believes and therefore alleges reducing the heelitoe

setbacks for horizontal wells from the North/South boundaries of the drilling units

established under the 27 0-10 Order to I 00 feet will result in a greater recovery of resources

and prevent waste caused by leaving resources in place, all while still protecting correlative

rights, and is just and reasonable under the circumstances

9. Finley will comply with all other requirements established under the 270-10

Order in its development of the Subject Lands.

10. Finley will, in accordance with Board rules, timely submit exhibits and

present testimony in support of these allegations

11. Finley will separately file a certificate of mailing listing all parties known to

it, based on a search of the BLM, Uintah County realty and the Utah Division of Oil, Gas

and Mining's records, whose "legally protected interests" will be affected by this Request.

There are no respondents or adverse parties known at this time to Finley.

WHEREFORE, Finley respectfully requests

l. - That this matter be set for hearing on February 26,2020 in Salt Lake City,

2. That notice of such hearing be given as provided by law; and

6

Utah;

3. That, upon sufficient evidence produced and testimony given at the hearing,

the Board issue an order:

a) modifuing the 270-10 Order to reduce the heel/toe setbacks for horizontalwells from the North and South boundaries of the drilling units establishedthereunder from 330 feetto 100 feet;

b) Making suoh findings and orders in connection with this Request as it deems

necessary; and

c) Providing for such other and further relief as may be just and equitable underthe circumstances.

Respectfully submitted this 9th day of January,2020.

MaCDONALD & MILLERLEGAL SERVICES, PLLC

M.

7090 S. Union Park Avenue, Suite 400Midvale, UT 84047Telephone: (801) 67 6-0050Facsimile: (801) 676-0051E-Mail : fred(@macmillerlegal.corn

Attorneys for Petitioner Finley Resources Inc,Petitioner's Address:

Finley Resources Inc.Attention: Scott Pitzer, LandmanP.O. Box 2200Fort Worth,TX 76113Telephone: (8 17) 231-8732E-Mail: SPitzer@fi nleyresources.corh

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FILEDJAN I 0 2020

SECRETARY, BOARD OFOIL, GAS & MINING


STATE OF'UTAH

IN THE MATTER OF THE REQUEST FOR AGENCY

ACTION OF FTNLEY RESOURCES INC. FOR ANORDER MODIFYING THE BOARD'S ORDER

ENTERED IN CAUSE NO. 270.10 TO REDUCE THE

HEEL/TOE SETBACKS FOR HORIZONTAL WELLS

FROM THE NORTH/SOUTH BOI.INDARIES OF

THE ESTABLISHED DRILLING UNITS FOR THE

PRODUCTION OF OIL, GAS AND ASSOCIATED

HYDROCARBONS FROM THE EOCENE MIDDLEAND LOWER GREEN RIVER FORMATIONS AND

PORTIONS OF THE PALEOCENE WASATCH

TRANSITIONAL FORMATIONS, COMPRISED OF

SECTIONS 20, 21, 28 AND 29, TOWNSHIP 7

SOUTH, RANGE 20 EAST, SLM, UINTAHCOUNTY, UTAH

CERTIFICATE OF SERVICE

Docket No. 2020-001

Cause No. 470-01

Finley Resources Inc. ("Finley"), acting by and through its attorneys, MacDonald

& Miller Mineral Legal Services, PLLC, hereby certifies that the following constitutes, to

the best of Finley's knowledge, a list of all parties whose "legally protected interests" will

or may be affected by Finley's Request for Agency Action dated January 9,2020 and on

file in the captioned cause (the "Request"):

Finley Production Co., L.P.Attn: Scott Pitzer1308 Lake StreetFort Worth, TX 76102

CH4 Energy-Finley Utah, LLCAttn: Rodney Black5128 Apache Plume Rd.Fort Worth, TX 76101

Big West Exploration and ProductionLLC185 S. State Street, Suite 1300

Salt Lake City, UT 84111

Robert L. Bayless, Producer LLCAttn: Cranford Newell, Jr.621 l7th Street, Suite 2300Denver, CO 80292

Bainbridge Uinta, LLC8150 N. Central Expressway, Suite 650Dallas, T){75206

United States Department of InteriorBureau of Land Management - Vernal FieldOfficeAttn: Jerry Kenczka, Asst. Field Manager -Lands and Minerals170 S. 500 EastVernal, UT 84078-2727

United States Department of InteriorBureau of Land Management - Utah StateOfficeAttn: Matt Janowiak, Minerals SupportManager440W.200 South, Suite 500Salt Lake City, UT 84101-1345

The undersigned further certifies that he caused true and correct copies of said

Request, to be mailed, properly addressed, postage pre-paid, and certified with return

receipt requested, to the above-named parties this 1Oth day of Janv&ry,2020.

MIcDONALD & MILLERMINERAL LEGAL SERVICES, PLLC

M.

Attorneys for Petitioner Finley Resources Inc

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FILEDJAN 2 I 2020

SEoRETARY BOARD OFOIL. GAS & MINING


STATE OF UTAH



INC. FOR AN ORDER MODIFYING THEBOARD'S ORDER ENTERED IN CAUSE NO.

270-10 TO REDUCE THE HEEL/TOE SETBACKS

FOR HORIZONTAL WELLS FROM THENORTFVSOUTH BOLTNDARIES OF THEESTABLISHED DRILLING TINITS FOR THEPRODUCTION OF OIL, GAS AND ASSOCIATEDHYDROCARBONS FROM THE EOCENE

MIDDLE AND LOWER GREEN RIVERFORMATIONS AND PORTIONS OF THEPALEOCENE WASATCH TRANSITIONALFORMATIONS, COMPRISED OF SECTIONS 20,

21,28 AND 29, TOWNSHIP 7 SOUTH, RANGE 20

EAST, SLM, UINTAH COI.INTY, UTAH

SUPPLEMENTALCERTIFICATE OF SERVICE

Docket No. 2020-001

Cause No. 470-01

COMES NOW, Finley Resources Inc. ("Finley"), acting by and through its

attorneys, MacDonald & Miller Mineral Legal Services, PLLC, and hereby certifies that

the following is an additional party whose "legally protected interest" will or may be

affected by Finley's Request for Agency Action dated January 9,2020 and on file in the

captioned cause (the "Request")

WEM Uintah, LLCAttn: Daniel R. Gunnell3319 N. University Ave., Suite 200Provo, UT 84604

The undersigned further certifies that he caused a true and correct copy of the

Request, to be mailed, propedy addressed, postage pre-paid, and certified with return

receipt requested, to said party at said address this 22nd day of January,2020

MIcDONALD & MILLERMINERAL AL SERVICES, PLLC

M

Attorneys for Petitioner Finley Resources Inc.

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107s.22

FILEDJAN 0 e 2020

sEcRFranY BoARDOFoil-, GAS.&MlNlNG

BEFORD THE BOARD OF OTL, cAS AND MININGDEPARTMENT OF' NATURAL RESOURCES

STATE OF UTAH

THE MATTER THE REQUEST FOR




270-IO TO RBDUCE THE HEEL/TOE

SETBACKS FORHORIZONTAL WELLS FROM

THE NORTFVSOUTH BOUNDARIES OF THE

ESTABLISHED DRILLING UNITS FOR THE

PRODUCTION OF OIL, GAS ANDASSOCIATED TryDROCARBONS FROM THE

EOCENE MIDDLE AND LOWER CREEN



21,28 AND 29, TOWNSHIP 7 SOUTH, MNGE20 EAST, SLM, UINTAH COUNTY, UTAH

REQUEST FOR AGENCY ACTION

Docket No. 2020-001

Cause No.470-01

COMES NOW, Finley Resouroes Inc. ("Finley"), acting by and through its

attorneys, MacDonald & Miller Mineral Legal Services, PLLC, and pursuant to Utah Code

Ann. $$ 40-6-5(3Xb) and 40-6-6, and hereby respectfully requests the Board of Oil, Gas

and Mining (the "Board") to enter an order modiffing the Board's Order entered in Cause

No. 270-10 on September 27,2018 (the "270-lA Order") to reduce the heel/toe setbacks

for horizontal wells from the North and South boundaries of the drilling units established

thereunder from 330 feet to 100 feet.

In support of this Request, Finley respectfully states and represents:

1. Finley is a Texas corporation with its principal place of business in Fort

Worth, Texas. Finley is duly qualified to conduct business in the State of Utah and bonded

with all relevant State and Federal agencies.

Z. The oil, gas and hydrocarbons underlying the ]ands

relevant to this Request

are owned by the United States of America atd administered by the Burau of Land

Management ("BLM"), and are subject to the following oil and gas leases:

Lease Lands

uru-7s093 Sec. 20: N'/zNE%, SEZaNE%, NW%Sec. 21: N%NE%, NW%Sec.28: SEY4SWY4

Sec.29 WY2SWY4, SE%SW% , SWV4SEY4

uru-89145 Sec. 20: S%, SWTaNE%

Sec. 21 : SW%, WYISEYq SEV4SEI/a

Sec.28: Nt/N%Sec. 29: Lands within Right-of-Way UTSL-047698

UTU-74417 Sec. 21: SZzNE%, NE%SE%

Sec. 28: S'/il\Y2,N%SW%, SW%SW%

UTU-80689 Sec. 28: N%SE%, SW%SE%

UTU-S5591 Sec.28: SEY4SEY4

UTU-80580 Sec. 29: N% less lands within Rightof-Way UTSL-047698

UTU-74837 Sec. 29: NE%SW% ,N%SEYA, SEy4SEy4

The operating rights relevant to this Request in these leases are curently owned by Finley

Production Co., L.P. and CH4 Energy - Finley Utah, LLC ("CH4-F"), both on behalf of

2

which Finley seryes as their designated operator, Big West Exploration and Profirction

LLC, and Robert L. Bayless, Producer, LLC.

3. The following lands and leases aro committed to the contracted Aurora

(Deep) Federal Unit (the'oUnit") (UTU-82456X), which covers all depths below the Uinta

formation including the formations relevant to this Request:

Lease Lands

uru-7s093 Sec.20: NW%Sec.21: NW%

uru-80689 Sec.28: N%SE%, SW%SE%

UTU-85591 Sec.28: SEY4SEYA,

and are included within the following Unit participating areas:

Lands (all T7S-R208) Total AcreagePA

Initial Green River-Wasatch PA D(uru-824s6F)

2nd Revised Initial Green River-WasatchPA E (UTU-82456G)

Sec.28: SE%

Sec. 17: SW%Sec. 19: NE%Sec.20: NW%

160

480

Initial'Wasatch-Mesaverde PA K Sec. 16: W%,SE% 640

(UTU-82456K) Sec,21: NW%

Production from any portion of the respective pafiictpating area is allocated on a pro-rata

acreage basis to the entire participating area. Finley serves as curent Unit Operator.

J

4 . Under the 27 }-lQ Order, the B oard established, on a pilot basis, overlapping

40^aqe (for vertical/directionally drilled wells, 64A-aqe (for short lateral (less than one

mile in length) horizontal wells), and 1,28A-acre stand-up (vertical) (for long lateral (more

than one rnile in length) horizontal wells) drilling units for the production of oil, gas and

hydrocarbons fi'om the Eocene Middle and Lower Green River and the upper 1,000 feet of

the Paleocene Wasatch transitional formations, defined as follows:

The stratigraphic equivalent of the interval between the DualLaterolog depths of 5,018' MD for the top of the MahoganyBench and 8,638'MD for the base of the Paleocenp Wasatchproductive'zone in the BBC Aurora Federal 4-2lD-7-20 (APINo. 43-047-52633), located in the N\V74NW/+, Section 21,Township 7 South, Range 20 East, U.S.M.,

(the "subject Formations"), for the following Uintah County, Utah lands to which Finley

refers to as its "Pelican Lake" prospect:

Townshio 7 South. ange 20 trast.SLM

Section 20:Section 21:

Section 28:

Section 29:

all of which are regular 640'aqe sections (the "Subject Lands"), with numerous caveats.

5. Among the caveats imposed by the Board in the 270-10 Order is the

No producing interval of an authorized horizo4tal well may be

located closer than 330 feet laterally frorn the north and southboundaries of the applicable drilling unit so established, no

A11

AllAllAll

4

following:

closer than 460 {eet to the east and west boundaries of the

applicable drilling.unit so established, and no closer than 330

feet laterally frorn another horizontal well within the same

applicable drilling unit so established, absent an exception

location approval pursuant to Utah Admin. Code Rule R649-3-3.

6. Finley had originally requested the 330-ft. Nortllsouth setback as a

conservative protection against potential drainage of adjacent off-drilling unit lands.

However, as reflected in Exhibil ccgri admitted into evidence in hearing upon which the

270-10 Order was issued, the fracture orientation of the Subject Formation in the Pelican

Lake area, in conjunction with the anticipated frac half-length, reflects only 91 feet of

potential drainage from both the heel and toe of ahofizontal well, leaving approximately

478 feet K330-91 : 239) x 2l of potential unrecoverable hydrocarbon resource in the

respective drilling unit.

7. Although Finley has yet to drill ahorizontal well on the Subject Lands due

to budget reallocation and completion of CH4-F's acquisition of Crescent Point Energy

U.S. Corp's Uinta Basin assetsl, it nevertheless has, during this period of time, gathered

and analyzed data frorn the Pelican Lake area and other horizontal well development in

whigh Finley has participated, including micro-seismic data from a nearby horizontal well,

1 Since no drilling activity occured during the first year of the 270-10 Order, no annual status report was submitted

to th'e Board and the Utah Division of Oil, Gas and Mining.

5

yielding in increased confidence in the fracture orientation and frac half-length depicted on

Exhibit "O."

8. As a consequence, Finley believes and therefore alleges reducing the heel/toe

setbacks for horizontal wells from the Nortlr/South boundaries of the drilling units

establishedunder the270-10 Orderto 100 feetwillresult inagreater recovery ofresources

and prevent waste caused by leaving resources in place, all while still protecting conelative

rights, and is just and reasonable under the circumstances

9. Finley will comply with all other requirements established under the270-10

Order in its development of the Subject Lands.

10. Finley will, in accordance with Board rules, timely submit exhibits and

present testimony in support of these allegations

11. Finley will separately file a certificate of mailing listing all parties known to

it, based on a search of the BLM, Uintah County realty and the Utah Division of Oil, Gas

and Mining's records, whose "legally protected interests?'will be affected by this Request.

There are no respondents or adverse parties known at this time to Finley.

WHEREF ORE, Finley respectfully requests:

1. That this matter be set for hearing on Februar y 26, 2020 in Salt Lake City,

Utah;

2. That notice of such hearing be given as provided by law; and

6

3. That, upon sufficient evidence produced and testimony given at the hearing,

the Board issue an order:

a) modiffing the 270-10 Order to reduce the heel/toe setbacks for horizontalwells ftom the North and South boundaries of the drilling units established

thereunderfrom 330 feetto 100 feet;

b) Making such findings and orders in connection withthis Request as it deems

necessary; and

c) Providing for such other and further relief as may be just and equitable underthe circumstances.

Respectfully submittedthis 9th day of January,2020,

MEcDONALD & MILLERLEGAL SERVICES, PLLC

\

M.

7090 S. Union Park Avenue, Suite 400

Midvale, UT 84047Telephone: (80 1) 676-0050Facsimile: (801) 676-0051E-Mail: [email protected]


Esq

Petitioner's Address:

Finley Resources Inc.Attention: Scott Pitzer, LandmanP.O. Box 2200Fort Worth,TX 76113Telephone: (S 17) 231-8732E-Mail: [email protected]

1075.22

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BEF'ORE THE BOARD OF'OIL, GAS AND MININGDEPARTMENT OF NATURAL RESOURCES

STATE OF'UTAII

IN TIIE MATTER OF TIIE REQUEST FOR AGENCY

ACTION OF FINLEY RESOTJRCES iNC. FOR AN

ORDER MODIFYING TTM BOARD'S ORDER

ENTERED IN CAUSENO.2TO^IO TO REDUCE TIIE

IIEEL/TOE SETBACKS FOR HORIZONTAL WELLS

FROM T}IE NORTTVSOUTH BOUNDARIES OF

TI{E ESTABLISIIBD DRILLING LINITS FOR TIIE


IITDROCARBONS FROM TF{E EOCENE MIDDLE

AND LOWER GREEN RTVER FORMATIONS AND

PORTIONS OF TIIE PAIEOCENE WASATCH

TRANSITIONAL FORMATIONS, COMPRISED .OF

SECTIONS 2A, 2T, 28 AND 29, TOWNSHIP 7

SOUTH, RANGE 20 EAST, SLM, TIINTAH

COTJNTY, UTAH

CERTIF'ICATE OF SERVICE

Docket No. 2020-001

Cause No. 470-01

Finley Resources Inc. ("Finley"), acting by and through its attorneys, MacDonald

& Miller Mineral Legal Services, PLLC, hereby certifies that the following constitutes, to

the best of Finley's knowledge, a list of all parties whose "legally protected interests" will

or may be affected by Finley's Request for Agency Action dated January 9,2A20 and on

file in the captioned cause (the "Request"):

Finley Production Co., L.PAttn: ScottPitzer1308 Lake Street

Fort Worth,TX76l02

CH4 Energy-Finley Utah, LLCAttn: Rodney Black5128 Apache Plume Rd.Fort Worih,TX76107

Big West Exploration and ProductionLLC185 S. State Street, Suite 1300

Salt Lake City, UT 84111

Robert L. Bayless, Producer LLCAttn: Cranford Newell, Jr.

621lTth Street, Suite 2300

Denver, CO 80292

United States Deparlment of InteriorBureau of Land Management - Vernal Field

OfficeAttn: Jerry Kenczka,Asst. Field Manager -Lands and Minerals170 S. 500 EastVernal, UT 84078-2727

United States Department of InteriorBureau of Land Management - Utah State

OfficeAttn: Matt Janowiak, Minerals Support

Manager440 W.200 South, Suite 500

Salt Lake City, UT 84101-1345

The undersigned further certifies that he caused true and conect copies of said

Request, to be mailed, properly addressed, postage pre-paid, and certified with retum

receipt requested, to the above-named parties this 1Oft day of January,2020.

MACDONALD & MILLERMINERAL LEGAL SERVICES, PLLC

Bainbridge Uinta, LLCS150 N. Central Expressway, Suite 650

Dallas, TX75206

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STATE OF UTAH


ACTION OF FINLEY RESOURCES INC.FOR AN ORDER MODIFYING THE BOARD'SORDER ENTERED IN CAUSE NO. 270-IO TOREDUCE THE HEEL/TOE SETBACKS FOR

HORIZONTAL WELLS FROM THE NORTH/SOUTHBOUNDAzuES OF THE ESTABLISHED DzuLLINGLINITS FOR THE PRODUCTION OF OIL, GAS ANDASSOCIATED HYDROCARBONS FROM THEEOCENE MIDDLE AND LOWER GREEN RIVERFORMATIONS AND PORTIONS OF THEPALEOCENE WASATCH TRANSITIONALFORMATIONS, COMPRISED OF SECTIONS 20,21,28 AND 29, TOWNSHIP 7 SOUTH, RANGE 20 EAST,

SLM, UINTAH COUNTY, UTAH

NOTICE OF HEARING

Docket No. 2020-001

Cause No. 470-01

THE STATE OF UTAH TO ALL PERSONS INTERESTED IN THE

FOLLOWING MATTER.

Notice is hereby given that the Board of Oil, Gas and Mining (the "Board"), State of Utah,

will conduct a hearing on WEDNESDAY, FEBRUARY 26,2020, at 10:00 AM, or as soon

thereafter as possible, in the auditorium of the Department of Natural Resources, 1594 West North

Temple, Salt Lake City, Utah. The hearing will be streamed live on the Department of Natural

Resource s YouTube channel at https : //yo utu.be I zn2KTi q pNOA.

The hearing will be conducted as a formal administrative adjudication in accordance with

the rules of the Board as set forth in Utah Administrative Code R641 et seq. and as provided for

in Utah Code Ann. $ 40-6-1 et seq. and Utah Code Ann. $ 63G-4-101 through 601.

The purpose of the hearing will be for the Board to receive testimony and evidence

regarding a Request for Agency Action (the "RAA") filed by Finley Resources Inc. that the Board

enter an order:

1. Modifying the Board's Order entered in Cause No. 270-10 on September 27,2018

to reduce the heel/toe setbacks for horizontal wells from the North and South boundaries of the

drilling units established thereunder from 330 feet to 100 feet;

2. Making such f,rndings and orders in connection with the RAA as it deems necessary;

and

3. Providing for such other and further relief as may be just and equitable under the

circumstances.

Objections to the RAA must be filed with the Secretary of the Board at the address listed

below no later than the 1Oth day of February,2020. A party must hle a timely written objection

or other response in order to participate as a party at the Board hearing. Failure to participate can

result in a default judgment.

Natural persons may appear and represent themselves before the Board. All other

representation of parties before the Board will be by attorneys licensed to practice law in the State

of Utah, or attorneys licensed to practice law in another jurisdiction which meet the rules of the

Utah State Bar for practicing law before the Utah Courts.

Persons interested in this matter may participate pursuant to the procedural rules of the

Board. The RAA, and any subsequent pleadings, may be inspected at the office of the undersigned,

2

and inspected online at the Utah Board of Oil, Gas and Mining's website at

http ://o gm.utah. gov/amrlboardtemp/redesi gn/books.html.

Pursuant to the Americans with Disabilities Act, persons requiring auxiliary

communicative aids and services to enable them to participate in this hearing should call Julie Ann

Carter at (801) 538-5277, at least three working days prior to the hearing date.

DATED this 24th day of January,2020.

STATE OF UTAHBOARD OF OIL, GAS AND MININGRuland J. Gill, Jr., Chairman

CarterBoard Secretary1594 West North Temple, Suite 1210Salt Lake City, Utah 84116(801) s38-s277

J

CERTIFICATE OF PUBLISHED NOTICE

I hereby certify that I caused a true and correct copy of the foregoing NOTICE OF

HEARING for Docket No. 2020-001 Cause No. 470-01 to be PUBLISHED in the following

newspapers on the following days:

February 2,2020:The Salt Lake Tribune and DeseretNews, newspapers of general circulationin Salt Lake City and County.

February 4,2020:Uintah Basin Standard, a newspaper of general circulation in Duchesne andUintah Counties.

February 4,2020:Vernal Express, a newspaper of general circulation in Daggett and UintahCounties.

4


I hereby certify that on this 24th day of January,2020,I caused a true and correct copy of

the foregoing NOTICE OF HEARING for Docket No. 2020-001, Cause No. 470-01, to be mailed

via E-mail, or First Class Mail with postage prepaid, to the following:

MacDonald & MillerMineral Legal Services, PLLCFrederick M. MacDonald, Esq.7090 S. Union Park Avenue, Suite 400Salt Lake City, UT 84047Email : fred@macmillerle gal.comAttorneys for Petitioner Finley Resources Inc.

Petitioner's Address:Finley Resources Inc.Attention: Scott Pitzer, LandmanP.O. Box 2200Fort Worth,TX76113Email: [email protected]

Gordon RoweThomas KessingerUtah Attorney General's OfficeNatural Resources Division1594 W. North Temple, Suite 300Salt Lake City, UT 84116Email: growe@agutah. gov

tkessinger@agutah. govAssistant Attorneys General representingthe Utah Division of Oil, Gas and Mining

Finley Production Co., L.P.Attn: Scott Pitzer1308 Lake StreetFort Worth,TX76I02

CH4 Energy-Finley Utah, LLCAttn: Rodney Black5128 Apache Plume Rd.Fort Worth,TX76l07

Mike BegleyUtah Attorney General's OfficeNatural Resources Division1594 W. North Temple, Suite 300Salt Lake City, UT 84116Email: [email protected] Attorney General's Officerepresenting the Utah Board of Oil, Gasand Mining

Big West Exploration and Production LLC185 S. State Street, Suite 1300Salt Lake City, UT 84111


621 lTth Street, Suite 2300Denver, CO 80292

5

Bainbridge Uinta, LLC8150 N. Central Expressway, Suite 650Dallas, TX75206

United States Department of InteriorBureau of Land ManagementUtah State OfhceAttn: Matt Janowiak, Minerals Support Mgr440 W. 200 South, Suite 500Salt Lake city, uT 84101-1345

United States Department of InteriorBureau of Land ManagementVernal Field OfficeAttn: Jerry Kenczka, Asst. Field Manager -Lands and Minerals170 S. 500 EastVernal, UT 84078-2127

WEM Uintah, LLCAttn: Daniel; R. Gunnell3319 N. University Ave., Suite 200Provo, UT 84604

V-l;.ffiJ,/ L-

6

FILEDJAN 2 7 202s

SEGRETARY BOARD OFOIL, GAS & MINING

BEF'ORE THE BOARD OF OIL, GAS AND MININGDEPARTMENT OF NATURAL RESOURCES

STATE OF UTAH


ACTION OF FINLEY RESOURCES INC. FOR AN

ORDER MODIFYING THE BOARD'S ORDER

ENTERED IN CAUSENO.2TO-IO TO REDUCE THE

HEEL/TOE SETBACKS FOR HORZONTAL WELLS

FROM THE NORTH/SOUTH BOI.INDARIES OF

THE ESTABLISHED DRILLING I-INITS FOR THE


}ryDROCARBONS FROM TIIE EOCENE MIDDLE

AND LOWER GREEN RIVER FORMATIONS AND

PORTIONS OF THE PALEOCENE WASATCH

TRANSITIONAL FORMATIONS, COMPRISED OF

SECTIONS 20, 21, 28 AND 29, TOWNSHIP 7

SOUTH, RANGE 20 EAST, SLM, UINTAH

COTINTY, UTAH

PETITIONER'S EXHIBITS

Docket No. 2020-001

Cause No. 470-01

Pursuant to lJtah Admin. Code Rule R641-105-500, Petitioner Finley Resources

Inc. ("Finley'o), acting by and through its attorneys, MacDonald & Miller Mineral Legal

Selices, PLLC, hereby respectfully submits the following exhibits intended to be offered

into evidence in support of its Request for Agency Action ("RA,A") at the February 26,

2020hearing on this cause:

EXHIBIT ,"A,, - Finley's potential witnesses' resumes (collectively 4 pages):

r Scott Pitzer - Land and Business DevelopmentManager

e Shea Atkins - Geology Managerr Patrick Porter - Exploitation Manager (Reservoir

Engineering)

EXHIBIT ('8" - True and correct copy of the Board's Order entered in CauseNo. 270-10 on September 27,2018 (17 pages).

EXHIBIT '(C" - Reference locator plats reflecting the location of the PelicanLake area (collectively 2 pages).

EXHIBIT '(D" - Plat of area requested to be spaced and well status therein (1

page).

EXHIBIT ,I8" - Plat reflecting lands in which notice was provided to"owners" and operators (l page).

EXHIBIT 66F" - Stress orientation / Rose diagrarn (fonner Exhibit "L") fromCause No. 270-10 (1 page).

EXHIBIT "GOO Setback illustration (former Exhibit "O") from Cause No270-10 (1 page).

EXHIBIT "H)' - Subsequent micro-seismic data (1 page).

EXHIBIT t(I" - Revised setback illustration based on micro-seismic data (1page).

EXHIBIT $J" - Project Economics (based on reduced setbacks) (1 page)

EXH.IBIT ('2" True and correct copies of return receipts indicating receiptby, or of the mailings returned as undeliverable to, or ofUSPS inquiries as to the status of mailings to, partiesidentified in the Certificate and Supplemental Certificate ofService on file in this Cause of the RAA, as of January 25,2020 (to be supplemented prior to hearing) (collectively 3

pages).

21075.22

Respectfully submitted this 27th day of January,2A20.

MIcDONALD & MILLERLEGAL SERVICES, PLLC


3

1075.22

SUMMARY

EXPERIENCE

November 2019 - Present

January 2017 - November 2019

September 2011 - January 2017

Augrrst 2007 - August 2011

EDUCATION

SCOTT PITZERO CPL4132 Clayton Rd. West

Forl Worth, Texas 761168t7-718-4210

spitzet @finleyresource s. com

Entrepreneurial oil and gas landman with diverse industry background and network

Finley Resources, Inc. * Fort Worth, Texaso Manager, Land and Business Development overseeing all land activities in the state of

Utaho Responsible for the negotiation of all forms of oil and gas related contracts. Actively seeking out new acquisitions including working interests, royalty interests, and

mineralso Ensuring drilling prospects are drill-ready. Business development

Finley Resources, Inc. - Fort Worth, Texaso Senior landman overseeing all land activities in the state of Utah. Responsible for the negotiation of all forms of oil and gas related contractsr Actively seeking out new acquisitions including working interests, royalfy interests, and

mineralsr Ensuring drilling prospects are drill-readyo Business development

Petroleun Exploration Company, dba PETEX- Fort Worth, Texas. Senior landman for active private operator with over 400 producing wellsr Leased 20,000+ acres in various counties in all parts ofTexaso Negotiated all forms of written agreements and manage all communication with mineral,

land, and working interest owners. Managed exploration prospects from inception to completion

Ilaggoner Osborne Land Senlices - Fort lilorth, Texas

Landman active in various counties in Texas including: Cooke, Cottle, Dallas, Denton,Eastland, Ellis, Foard, Hardeman, Johnson, Madison, Montague, Panola, Parker, Shelby,Stephens, Tarrant, Wilbarger along with Harper County, Kansas

Became proficient in all land related industry skills: title, leasing, contract due diligence,mapping, production research, etc.

a

INDUSTRY CERTI FICAT'IONS

Certified Professional Landmnn | 2019-Present

Petroleum Lantl Practiccs Ccrtificatc I Texas Christian University I Fort

Worth, Texas I June 2008

THB UNryBRSITY OF TULSA COLLINS COLLEGD OF BUSINISS - Tulsa, OklahomaMaster of Energy Business (MEB), December 2016

THE UNMRSITY Of'TtrXAS - Austin, TexasBachelor of Arts,May 2007Major: GovemmentMinor: Business

TEXAS CHRISTIAN UNIVERSITY - Fort Worlh, TexasPetroleum Land Practices Certificate, June 2008

EXHIBIT A

Docket No. 2020-001Cause No. 470-01

INDUSTRY INVOLVIMENT

American Association of Professional Lnndmen I Mentber | 2008-Present

Fort Worth Association of I'rofessional LRndmen I Member 2008-Present

SHBe ArrnrsS atkins@fi nleyresources. com 0 Phone : 61 5 - 497 - 19 40

Professional ExperienceGeology Manager May 2018 - presentFinley Resources Ine, Fort Worth, Texas

o Geologl manager for all company assets with focus on Uinta Basin and Powder River Basin

Geologist JulY 2017 - APril 2018

MorningStar Parlners, Fort Worth, Texaso Planned and geo-steered horizontal wells in the Green River Basin and San Juan Basin. Mapped and evaluated all targets for development across 200,000+ leasehold position in Green River Basino Evaluated operated wells for recompletion candidatesr Coordinated wireline logging program, picked whole core and sidewall core points and analyzed data to

improve petrophysical analysis across field area for improved well targetingRocky Mountsin Geological Monager January 2017 - June 2017

Finley Resources Inc, Fort Worth, Texasr Responsible for all assets in the Rocky Mountain region with a focus on the Powder River Basin and Uinta

Basino Manager for all geological technicians

Geologist (primaryfocus Uinta Basin) September 2013 - January 2017

Finley Resources Ine, Fort Worth, Texaso Produced geologic structure maps, isopach maps, fluvial/deltaic and carbonate depositional environment

mapping, well log comelations, geologic cross sections and petrophysical analysis using Petra geologic

mapping softwaree Performed petrophysical log analysis to identify hydrocarbon pay zones and to calculate Original Oil In

Place (OOP) using Hydrocarbon Data Systems (HDS) petrophysics software. Planned and drilled 100+ economically successful oil wells in the Uinta Basinr Permitted oil, gas and salt water disposal wells on fee, state, federal and tribal landso Evaluated industry deals and made recommendation for acquisitiono Evaluated behind pipe potential for recompletion opportunity

Geology Intern November 2012 - September 2013

Finley Resources Inc., Fotl Worth, Texas. Produced geologic structure maps, isopach maps, and cross sections in the Uinta Basino Produced sand pay maps in the Delaware Mountain Group, Delaware Basino Backup geologist for drilling program in the Uinta Basin

o Made geologic prognosis, coordinated with wireline loggers and mud loggers, calculated net pay,

picked perfs, evaluated completions techniques by offset operators

Environmental Technician November 2004 - August 2012

l{.2,. Baamgorlner and Associoles, Franklin, Tennesseeo Conducted field sampling of groundwater, storm-water, soil, and solid waste residueo Oversaw drilling and installation of groundwater monitoring wells

Conducted environmental lab processing

EducationTexas Christian University,Fort Worth, TXMaster of Science in Geology, May 2015

Middle Tennessee State Universifl, Murfreesboro, TNBachelor of Science in Geology, May 2012

Publicatio4sFluvial-Deltaic Deposition in High Accommodation Floodplain Lakes. Pennsylvanian Appalachian Basin. Eastern

Kentucky

Patrick L. Porter (405) 47148as (cell)[email protected]

Summary of QualificationsReservoir-engineer/manager with 30+ years of oilfield experience. Extensive experience with evaluation and

development of conventional and unconventional resource plays in various basins in the US. Skilled in

reserve preparation & reporting, data analysis, preparation and presentation of projects for seniormanagement and investment community. Testifying in many protested and unprotested hearings at state

regulatory agencies.

States Qualified as Expert Witness:. Oklahoma. Utah

Professional Experience2017 - Present Finley Resources

Exploitation Manager Fort Worth, TXResponsible for reservoir engineering analysis company wide. Manage geology and reservoir groups to

maximize value of company assets. Accomplished thru drilling projects, acquisitions, recompletions,

workovers and production surveillance. Rockies Team lead. Manage active drilling projects in the Uinta and

Powder River Basin. Assess and evaluate acreage for potential development.

2016-2017 Torero Oil & Gas LLGVice President Reservoir Engineering Oklahoma City, Oklahoma

ldentify, evaluate and recommend drilling projects suitable for a private equity venture. Build the reservejustification and economic cashflow sensitivities and modeling for presentation to potential investors.

Primary focus in Mid-Continent Region.

2015-2016 Bright Horizon Resources, LLCSr. Reservoir / Acquisition Engineer Tulsa, Oklahoma

Extensive evaluation of STACK, SCOOP, Cana/Woodford, Cleveland, Marmaton and Granite Wash

reservoirs and generating acquisition targets for well and leasehold acquisition. Areas i Acquisitionsevaluated in Mid-Continent, Ark-La-Tex and Permian Regions.

- ldentified key extension acreage in the STACK play in central Oklahoma. This was in theoverpressured area west of the area Newfield was drilling. Within 6 months, companies were

aggressively drilling wells with exceptional results,

2007-2015 Range Resources - Midcontinent, LLGDist Res Eng )VP Reservoir Engineering-Midcontinent Oklahoma City, Oklahoma

Managed reservoir engineering foiall of Range Midcontinent Division's reservoir activities. Develop and

managed department of 3 engineers and 3 technicians. Main responsibilities included reserves booking and

presentation, budget preparation and presentation, division strategic planning, monthly production planning

and guidance, identification of Division resource potential. Major operating areas include NorthernOklahoma Mississippian, Texas Panhandle St Louis, Woodford Shale (Ardmore Basin, Cana, Northern

Oklahoma), and Texas Panhandle Granite Wash plays. Responsible for identification, evaluation and

application of neMevolving technology in unconventional resource plays. Started as District Reservoir

Engineer responsible for Shale Plays and Unconventional Plays for the Midcontinent Division.

Engineer responsible for evaluation and recommendation of testing the Mississippian formationhorlzontally on the Nemaha Ridge. Based on analysis and well performance, Range acquired

150,000+ acres and had as many as 4 drilling rigs running in the play

- Acquired 25,000 acres in the Ardmore Basin before Woodford was identified as productive in the

Basin. Drilled 20+ wells for the Woodford shale. Average well 7 BCF + 80 MBO

- Managed 80,000 net acres in the Cana Woodford and measured well performance and economic

expectations of the play. Determined if well performance merited reallocation of capital resourcesfrom other plays in Division.

Gontinued...Patrick Porter... Page 2

2001-2007 Newfield Exploration Mid-Continent, lnc.Sr. Reservoir Engineer Tulsa, Oklahoma

Conventional and non-conventional resource assessment, pre-drill/post-drill economic evaluation, loganalysis, completion recommendation and evaluation, drill site determination and prioritization, tactical andstrategic planning, OCC testimony, and reserve reporting. Other activities include budgetary planning,recompletion/workover identification and evaluation, production enhancement identification, lead role innumerous acquisition evaluation efforts in the Permian and Mid-Continent. Areas of responsibility atNewfield have included Arkoma Basin (Engineer responsible for identification of Arkoma Woodford Play),Western Oklahoma, Texas Panhandle (early identification of resource potential in the Granite Wash as part

of acquisition efforts), and Permian Basin.- Led testing, assessment and development of the Woodford Shale in the Arkoma Basin (identified the

formation was a reservoir as much or more than a hydrocarbon source rock) Newfield acquired150,000 net acres in the play and ran a multi rig program for several years. Peak production realizedof over 200MMCFD

- ldentified infill and deeper potential in the Granite Wash. Newfield acquire approximately 10,000acres in a developed Granite was field that I was able to convince management of the infill anddeeper potential. Exploitation began as a verticaltesting program but migrated to a multi righorizontal program with severalwells lP'ing over 10 MMCFD. Peak production over 100 MMCFD

1997-2001 Questar Exploration and Production Company / HS Resources(1998-2001) Staff Petroleum Engineer Tulsa, Oklahoma Reservoir Group Supervisor

Reservoir and Production engineering responsibility covering the entire division (Eastern Oklahoma,Arkansas, Louisiana, Mississippi, and Texas. Duties include coordinating, preparing, and submission ofquarterly reserve reports, division planning and budgeting, acquisition analysis, drilling/ recompletion/workover evaluations, maintaining and increasing production of properties through workovers and enhancedrecovery methods (i.e. plunger lift, compression, beam pump...).

HS Resources, lnc. (district office and propefties sold to Questar)(1997-1998) Reservoir Engineer Tulsa, Oklahoma

Major responsibility includes generating engineering prospects in the Arkoma and Anadarko Basins(workovers, recompletions, and drilling prospects), and identification of acquisition targets.1993-1997 Southwestern Energy Production Gompany

Reservoir Engineer Oklahoma City, OklahomaResponsible for all aspects of Reservoir Engineering. Areas actively working include Mid-Continent, GulfCoast, and Permian Basins. Minor emphasis Williston Basin.1990-1992 Union Oil Company of Galifornia dba UNOCAL

Petroleum Engineer Oklahoma City, OklahomaDevelopment Team Leader with oversight responsibility for all activity in the SE Oklahoma and Arkansasarea.1987-1990 Merrico Resources, lnc.

Acquisition Engineer Ardmore, OklahomaResponsibilities involved all aspect of property acquisition. Responsible for evaluations in all areas withprimary emphasis in Mid-Continent, Gulfcoast, Permian, Rockies and Williston Basins.

1987 Samedan Oil GorporationTemporary Position Ardmore, Oklahoma

ldentified additional perforating potential and pattern changes to improve recovery in 4 waterfloods.

EducationBS Petroleum Engineering, December 1986 - University of Tulsa, Tulsa, Oklahoma

FILEDsEP 2 7 20fr

SE0RETAFY eoARo orOIL, GAS & MINING

sEnoRE rdn'nonRD Or oltr GAq aNo nnrr\[iNG,nsp.An,fMnNt oF trArunal nnsouncEs

IN QF THE

AcENcy Ac-TrgN oF FINi/EY mSogncnsrNC. FOR AN 9RDER pqrAgrrqArNc, ON A

FINDIN,q.p OF,FACT,CONCLUSIONS OF LAW AND

ORDER

Dockef No. iOtS-OtS

. GpqgeNo.270-10

This Cause'oamo on for hb4ring Uefoie tfre Utah Board ofoil, Gas and Mining (the

liBqind") .on Wednesday,,August 22, ,2018; 'at 9;30 a.m, tn ihp Auditorium of the Utah

Departmeqrt of Natupl Regourcbs tsqitding in Salt Lake- City, Utah, T[re folloviing,Board

members wefpprglent and pprti.clpatedal t!.i1e hoaringl Chairmaqfluiariit J. Gjll, Jr., Carl

F: Kendell, Goqdolr L, Mggr-r, Clrris D. H4nsenn Mlchagi R, Brown, Susan S, Davis and

Riphgd K. Bgrden, The Board :was teple$epte0 by Mighpel Bqglqy, E$q., Assistant

Attomey Generat.

Testiffing on behaif of Petitioher Finley Resources Ino. (qFinley') wgrq $pott Pitzer

- Landqran, Shea Atkinr - Geolggy Manager; and Pat?qrter: Exploitation Managel, Tho

EXHIBIT B


Boardlecognized h/ft. Atldn! aq an expert in geology and;Mr. Fortertas 4f.r,e4pgrt in

reservoir er.rginqefi4g for,pulposes of this Ca.usg.. Frederick M. M4cDgrret.d, E$q.r of ar-rd

.for MacDonald & Miller Mineral Legal Services, PLLC, appeared as atlornby foiIinlEy,

The Divisiop of Oil, G4s and Mining (the o,Division,,; :aid ,not fiie a staff

memqr.andum in this Cause butparticipated in thp hgaring. Thq bifrision n.itherprwided

$woryl tgslimolry nor subrriitted any.gxhibits. John Rogers, Associato Dirgctgr -,Oil & Gas,

Dayne Do1;cet, Permitting Manager- and,Dustin Doucet, Petrotegg Enginoer, with the

Board's psrmission,.wpre allowed to ask qriestiong or r4ake staterygnts on behdtf ofihg

Division. Eihma Whitaker, Esq., Assistant Attorney General, qppgared as aitorney fof the

Divisiorr. In its s-ummary a( the conclusion of the heari.ng, the Division ei(pressed its

support for thp granting of Finley's Request for Agency AcJion dated July 5,:zota lthe

iiRAA'1), subject to clarifications as to the number of aulhorized horizo..ptal wiilis and the

latgal setbaoks between puch wellp qutfiqed below-.

The'Board received two letters in sqpport of glanting the R-r{A': the,Sfs! filpd qU

Augugt 'l5,20l8,.from'croscent Point Energy u,s. colp; ("cpE'), and the sec'bhd, filed

on August 20,20t9, from Robert L, Bayiesq, producer LLC ( Bayless). Both entities are

working interest owners ,within the lands at issue.l' However, neilher p-aqty formalfy

appeared at norp4rtlojp4ied in the hearing.

I An additional Lefter dated August 73,zoil,buf not reieived by the Board unril Aueust zz,,iott. trofBis westExploration and Production, LLC, another working interest owner within thb lands ai isqug,..gxprgisdd ropp'"ort'roi

2

N,g gther p4rty Slgd a-response to the 844 and no other pzrty appeare{ at or

participated in thp heari.ng,

The B oard, having consi dered the testim ony,presented and the oxhib its receiveil into

.evidence at the hqaring, being fulty advised, hereby makes the following findings of fact;

conclusions df law and order in this Cause,

FINDINGS OF F'ACT

-

1, Finley ip p.Tex4s qolpgration with its principal. plpce of busine,ss in Fort

Worth, Texas. Finlpy is duly qualifipd to conduct business in the State of U- tgh, and ls fullf

and appropriately.6onded with all releVant Federal and State ofUtah agencies.

2, The following Uintah County lands, which are the qubject of ihe ff.AA and

to which Finley references as the "Pelican Lake Area," have noi yet been the subject of a

Board otdEr creaJing dlilliqg u-4its, Consqqqently, they have remained subject only to the

general well siting rule (Ulah Admin,:Code Rule R649;3.2)i

Township 7 S0.uth. Range 20 East-Sllv[

Seotion 20: AllSe0tion 2l: AllSection 28: AllSection 29: All,

all'of which are regular 640-acpe sections (the 'iSubjqct Lands").

granting the RAA. However, given its receipt post-hEaring,'it was npt considqred by the Board !p rgtrdering itsdecision.

3

3. The oil, gas and. hydloq4rbons irnderlying the Suljec1 L4dE are owned by

thqUnited State$ of AmErica and subJect {o the following oil p-nd gas.leases:

teaSq

UTU-75093

UTU-8914s

UTU::I4417

UTU-80689

UTU=85591

,uTU=80580

Lahds

Sec. 20: NTzNE%? .$

EYNE'/a,NW%Sec. 2l: NZiNE%, NWTrSeo.28: SE%SV/%Sec. 29 : W %SWt/4, SE'/4,5W t/4,

S W7+SE%

Sec, 2Q: g/3; SW-/1lt[E%S9o. 2 I : SW%, WYISEIz, SEY4SEY4

seC.2tr tiYN%Seo: 29: Lands within Right-of-Way LITSL- 047 698

Seq. 2 i : STrNelo, NElzoSETlgec. 28 : SYzNt/iN%SW%, SWI+SW7+

Sec; 28: N72SE1/a, SW%SE%

Sec.28: SEW:SEY4

Sec. 29: N% less lands wilhin \ig1rt.9f-W4y UTSL-047698

UTU-74837 Sec.29: NEV+SW\,N%SEI/4tSE%SF.7a

The opeiating rights'in said leases.to the Eocene Middle and Lower Greeh River,and the

upaer 1,000 feet oflhe. Paleogeng Wap,4foh f?nsitionpl formations, defined 'for pgrposgs of

this Cause as follows:

The stratigl4phio equivaltmt of the,lnferval between t[rp DualLaterolog depfts o_f 5,018'VlO for,the top of thg MahogaqyBencl anA S;6f -8,'trlO for the base of tnp Paleocene Wisatciipro{uctive zone in the BBC Aurora Federal 4-2lD-7.20 (APl

4

No. 43.047-5263|)r locpted in the,NIW%NWYr, Section 21,Townslrip 7 Sou{h, Range 20 Eas!,:U;S;M.,

(the 'qSubjeot Formalions'l), are owned by tonesome Oil & Gas, LLC (;'Lonesome") on

behalf of which Finlgy $e{veg as .its deqigna{ed operator, Big West Explor4tion and

,Productiqn LLC ("Big'West'), CPE and Bayless.

4, The following landg and leases are c-ommitted to thp contracted Aurora

(Depp) Federal Unit(the irUnit'?) (UTU.82456X), which covers ali depihp below the Uinta

formation includi4g lhe Subject Formations :

Lease Lapds

UTU-75093 Sec.20: NW'/+Sec,21; NWZ+

UTU-80689 Sec;,28: NTzSE%, SWTTSE'/r

IJTU-85591 $pc.28: SEY4SEY4,

and are included within the:following Unit participating:areas ("PA's");

h Lends (all T7S-R20E) Total Acrbhgo

Initial GreenRivqr-Wasatch PAD Sec. 28: ,SEi/r 160(UTU::82456F)

2i4 Revised Initial Green River-WasatchPA E_('UTU-82456G)

Sec. 17;Sec. 19:

Sec.20:

:Sw%NE%NWTa

480

Inrliel Gresn River-Wasatch PA K(uTU-82456K)

Sec. 16; WYz,SEY+Sec.2l: NW%

5

64:A

Production from.,any pgrtion of the respective participating aroa is allqcated og a pro,rata

acleage basis to the entire participatingaraa. Finley.sorvos as cuitent Unit Operaton Big

West, Bayless and CPE have alsb agreed that Finley may serve as operator of the Subjeci

I-4ndp.

5. !n 4ccordance,not only with UlahAdmin. Code Rule R$42:3=2and the other

general State operational rules, but also with the govgrning Unit Agreemen! aqd pursuant

to applipations for permit to drill ("AFD's') appfoved both by the Division aqd the Bureau

of Land Management ("BLIW), Biil Banett Corporation, Fintey'q predecesso.r as Unit

Operator, and/or Finley drilled, and Finley cunently operates, the following

verticp-l/directionally drilled ("VDD'sr1 oil wells which have productive intervals within

the Subject Formations :

WgT(aPIhIo.I SHL Es! D.9IP.

Aurora Federal3.,70D.7-20 sqg,20: NE7+NW/1 Seg,, ?Q; NF/Nw.yJ .tls.lLz(43-047-52Q0' (213,FNL/2370'FWL) (654'FNL/22Q3' FWL)

Auroral.ederal4^2i1.D,7:20 Sec,2!: NWZ411WZ Ses.21: NW'/-NW'/. 8ll2lI314,s-o+,r.saett1 e67i FNLnir;Fwry (686' FNL/681:'r'wq

AuroraFederal l5i2g,D.7-20 S.ec.28: SW%SE% S..9q,28; SW/ISE,% 4116112

(43-047-s7066) (98'FsL/2286' FEr) (620' FsL/1960i FEL)

AuroraFe{eyal6;28D-7-20 gec;28: sEfrNw% S9g,28; sEyfNwT4 ll5l18(43-047:s;4s11) (1e31'FNL/2zst' FWt) (r9S0l nNr-l1l8g'FWl,1

AriioraFedegl l3-28D-7-20 Sec.28: SWZaSWtla dec;28: SW.ZSWI. 10118/15(+z-o+7.545r2) (1300'FsL/2531 Fwi) (642'ESLITZA;,rwl,1

6

AuroraFed..eral'7,.29D-7t20 Sec,'291 NE/1SE% Sec.29: SW7+NEZ.+ I0ll0l1,5(43.04V=s48sl) (25;37'nsrtSsli FEL) (2016iFNL D040'FEI)

AuroraFede\?ll4-ZgD-'7-20 Sec.29: ,I{E%SW/+ Sep.29.l SE%SWZJ lllltl(43-0 ai-s+t++1 :(1,616'FSLlts32'FwL) (qqoi rsUlggo'rWl,l

(collectively the i?Existing Wells;).

6. A large portion of lhe $ubject Lands is covpred by Pelican-I-ake, severely

restricting possibly surface locations and which in rngst instances will require direotional

or horizontal drilling to recover the rcmai4ing regourc.es.

7, f'inleyhas not yet drilled a horizontal well ofi or in the Vicinity ofthe Subject

Lands. ,Howeyer, based on CPEis drilling of horizgntal wells, as authorized by the Board

in its Orders in Cause Nos. 13l-l4g and ,tgl-tiO, on landp dirpctly west of the Subject

Lands,'Finley is proposing a pilot prggram'to test the viabili!-y of,horizontal drilling in

cgqiunotion with.VbD's on its prospocts,

8. The Subject F0rm[tions conqist 6f lacustr!4e fluvial-deltaic deposits in the

Green River and alluvial/fluvial fan deltas in the Wasatch. Average p'orosities in the GSeen

River argTo/oto lilVowith average permeabifity of * .05 te,1 mD, wttih averageporosity

in the lfasatch is approxim ately }o/ewith average permeability of legs than ,05 mD. The

upper .1,000 feet of the Wasatch formation shopld ,be included becduse CPE has

demonstrated that interval is prospective foq hotizontal drilling i4 wells to the west of the

.subject'Lands. Finley believes there are up to Six attractive targe!$ within lho Supjec!

7

Formations including the Mahogany BBnoh membgl, as the Subject Formations constitute

one continuous column of,hydrocarbotr source,

g. From the wells:Finley hds drilled, and,,from,pubiic data relating to wells

drilled by othgr operators on lands nearby ,the Subject I-ands, F.'iniey has derived the

preiiminary conclusions :

(u) Thp drilling 4dproduction of VDD's qnd horizontal wells Slould rgsulf inproducfion and productivity increasos and cost effectiveness, over the

irilling and produclign of conventionat VbDiq algne, and *i11 allow agbegs

tq additional resorirces in the Subject Formations that wouldflol 6lherwiq.e

bo reoovered;

(b)

(c) It is diffioult, if not impossible, to establish unifurm produclng inlervalsetbacks betWeen VDD?$ and horiz.ontal wells but the same may bei reguiredto maximize resource recovery from ttrE Suirjpct Foimations,'ahd thoseparatign of igdividu4i prqttucticiq intervalq within the pool 0f,the'SilbjeptFormalions djscirs.pe{ b-elow would require sdparrite metgring and create

additional administrative burdens to' eithlr prdVgnt, or efflec!, ,the

conimingling ;f production'from tho Sqbj eot F'prmatio,4g; an{

I

(d)

10. The ecolomics.of Finley?s pr,oposed program are at this time speculative aRd

proprietary but, b4sed on public testlmgny given by CPE and other'horizontal,gperatqrs,

Finley believes hOrizontal wells drilled inthe Subject Formations on the Subject Lands will

be economio and provide an acceptable r4te ofreturn.

11. In Finley's elperience, given the federal ownership, the fact that lease iines

will be crossed, and the :ove.rlap with federal exploratory unit participating a1eas,

cgnfonnin€ communiti zalign agrqemonls will be required for proper allocatiqn of

produotionin accordance with the termsof the Unit Agreemgnt and, whethef by regulation

and guideline or Federal agencJ practice, will require a Boafd order establishing the

requested drilling units in order to be approved.

L2. Acopy oftheRAAw-aq mailed,poslaggple-paid, pqrtifledwithreturnreceipt

requested, and pro.pqlly addressed, tq all production interest opr:e{s vyfthin the Subjeit

Landp and in,the participating areas.of the .Unit as described in Findings ofFact No. 4o to

the Working interest owners (including unleased owners) in the qu4rter-quarter sectiong,

9

In order to maximiTe the recoveiry of resoutces frorn the Subject Formationq:(i) one VDD'iir each 4O:acre uhit on the Subject L4nds (inclusive of the

illiiii"g'WiffSj; tiil up to 2A short lateral horiiontal wetts,'heing tqsq::1haii

one mile in ldngth T"SLHZ?s'?) in each 640.acre unit; and'(iiil up to 24longlatelal,hofizontal wells, being'more than one,mile in length'CtltHZ?s') in

each 1,280-acre st,ind-up u4it willrbe nqcessary to allow flexibility in t19

drilling of wells and to allow tlre maximum recovery of resources from'allzones and intervals found'within the Subject Formations. Howevef, this iS

.no11o'be copstrqqd as authorizing qp to 48 horizontal wells. Rather, irp to

24 horizontal wElls per govgmmental sectioq are authorized via any

combination of SLHZ's and LLHZ's'

,adjacgntlo the Sutject Lagdq, andlo thq BLM, both State and Vernal Field Officgs; being

the,supgrvising goye-r,pme4{al agencieg having jurisdiction over the Federal minei'trls. The

mailingsrwere sent to said Bartfeg at theif lasJ 4ddrepses disclosed by:the relevant BLM and

Uintah County realtyrecords andlorFinley:5 internal land records.

13, Notice qf the fiiing ofthe RAA and of the hearingthereon was dulypublished

in the Salt I-ake Tribune and Deseret Morning NeWs on August 5, 2018'and in the Uintah

Basin Slartdqrd and the Vemal Express on Auglst 7,2018'

14, The vote of the Board Members presont and participating in the hearing on

this,Cause waS unanirnous (7-0) in favor ofrgranting the RAA with the claiifications

requested by the Division.

CONCLUSIONS OF LAW

l. Due an{ regular notice of thg time, place and pulpose of the heariqg Was

ploperly givep t9 all parties- whogg legally protected lnterests pre affected by ttrg RAA in

Ihe fonu and qrahner ali rqquired by lpw a.4d tlle ru!9s and regulatiops pf the Board and

.*i ;.. .

Lllvlsl0n.

2, The Board has juristliction over all matters covered by the RAA and all

interested parties therein, and has power and. authofity tq rende.r the order herein set forth

pursuant'to Utah Gode Attn. $$ 40-6j5(3xb) and 40-6''6.

3, The Subject Formatio-ns as underlying tho Subject Lands constitute a

"com14on source of supply" as that phrape is deftted iq Utah Copg Ann. $ .40'6.2(:19).

10

4, Up to e1e,11)'VDD ppr 40-acre drilling rinit, up to 24 SLflZ2sper'640.;hcre

drilling unit(inclusive o-f: (1) any existing or future ST,HZ's and (2) any,existlng gr futuqe

LLHZ;.s)and up to 24 LLHZ?s per 1280-:acre drilling dnit (inclusive of: (1) any existing or

future SLHZTs and (2) any existing or future LLHZ;s)may be,r6quired to pfficiently tind

eoollomically daain the Subject Landq and,to prevent wastg (by leaving issources in the

ground).

,5.. Crqatign of overlapping 40-acrg.drilling units for'VDDis, 640-acro drilling

units for SLHZ!s aad l;2h},-aore stand-up driliing units foi LLW'I for'the,subject

Formbtions.with the provisos outlined'below is fair, reasonablg and justified undei the

circumstanc.es,

,6, [he plief granted heroby will result in consistent and order[y development

and tlre gqealest recgvery of oil, gas and aqspgiated hydrocarbons frorn the Sutject

Formations ond'undg1lying the Subject Landg, prevent waste and .adequately prqtect the

coinelative- rightS 0f all aftectedparties.

i. Finley has sustained its burden ;of progf; dbrnonsta.ted good cau$e, and

satisfied all legal iequirements for the grbnting of the \AA;

ORDER

Basgd upon the RAA, tqstimolry and ovidenos spbrpitted; a4d tho findingS of fact

and coriclusions of larry. $latad abovg,' the Board hergby orders:'

1. The RAA in this Cause is grantedwith the clarifis'ationp butlined helqy.

i1

2. The following overlapping drilling units for the production of gil; gas and

hydrocarbons'from the Eocqne Middle and l-ower Gregn River and portiogs pf the

Paleocbne Wasatch transitional formation5 (as defined abovE) from the gudgct Lan{g (as

defined above) are established:

(i) 4}-,asreunits for vertipal or dirbctionally driiled wells;

(ii) 640-acrgunits for short lateral horizontal wells; and

(iii) 1r280-acrs stand-up (vsrt!ca!) drilling units for long lateral horizontalwglls, r'.e., Seqtiqqs 20 and 29 and Sections 21 and 28,1e-spbctively.

3, One (l) vertical ot directionally drilled well may be drilled dnd produoe on

each 40:acre drilling unit so established. The penetration point into the Subject Formation

and bottom hole location of the authorized well must be within 4 400,-ft.2 window around

the center of each such drilling unit, buing no oloser th an460 feet to a drilling unit boundary

and no qlpfef than 920 feet to any other vertical or {irectl,onally drilled well producing in

'the Subject Formritions without an exception lopation -dLpprorral

pqrquan! to Utah Admin.

Codp Rule,R649-3=3.

4. Up to 24 short lateral hori zontaLwells may be drilted and produce o8 qach

640"acre driliing rinit so established (inclusive of: (1) any exiqting ol future short,lateral

horizontal wells and (2) any existigg or future long:lateral horizontal wetls); and up to 24

long lateral ho{izontal wells may be drilled and produoe on each 1;280-acre stand-up

dritling unit so established (inclusive of: (1) 4ny existing or future $hort lateral horizontal

t2

wells and Q) any existing or future 19ng lateral hodfontal wells); provided, howevgr thege

authorizations are not to be construed as authorizing'a total of 48 horizontal Wells. Rather,

,up to 2Ahorizontal wells per goVernmenlal section are authori zelvia'any corirbination of

short and long latqJa! horizontal wells.

5. Noproducing interval of an autho riiaedhoqizontal wpllmay bo.located cJoqer

than 330 feet latdrally t6 any verticaf or direcfionally drilled w-ell absEnt an gxcoption

lpcation approval:in accordance with lJtah Admin. Code Rule R649-3:3.

6. No producing interval;of an authorized,horizohtal well may be locaJed closef

than 330 feet laterally from the north and south boundaries of the applicable drilling unit

so established, nq closer than 460 feet to the east and rvest boundaries of the applicable

drilling unit so established and no closer than 330 feet laterally from another hofizontal

well within'the same applicable drilling unit so bst lished, absgn! 4n.excepllop loqation

approval pursuant to Utah Adrnin. Code Rule R649-3-3.

'/., Stacked horizonta! wells shall have no inter-well setback distance latoutty

botween such wblls Within the same applioable drilling unit qo establi$e4, but no

producing interval of such a well shali bo located closer than 1Q0 f,eet vertically'iiom

another suoh stackgd yelt'within the same applicable driiling unit so eqlallished,.abpent an

exception'lbcation appioVal pursuant to Lllah Ad.ryiin. Cqde Rule R649"3 -j.

8. Surface locations may be pff-drilliqg uirit so established plepumlng prop-e{

surface and sub-surface writtpn,authorization fol puch a location has bqen obtained from

13

the ownels and any well will be oasg.d and cemented to the setb4gks sel,forth above, both

,to bs evidenced and satisfied by a self-certif,rcation to such effect exgqpted by the'operator

of said drilling unit and filed with the Division, and tho other setbacks set forth above are

rnaintained.

g. The Existing Wells (as identified in Findings of Fact No. 5 above) are

,decl?rgd to be at legal locations notwithstanding the foregoing.

10, Except as'addressed in (11) below, the allocation of ploreeds frgm the

production ofoil, ghs and associated hydrocarbons onthe Subject Lands qhall be effected

in a manner that'is tied to drilling unit establishment for specific well types,'i. e. , production

from vertical or directionally driiled wells shall be allocated to each such We]l's specific

40.acre drilling unit so established;production from short lateral horizontal wells shall be

ailocated to gach quch well's specifio 640:acre driiling unit so estabfiphqd; and prodgcfion

from long lateral horizontal wells gha[f b9 allocated to qagh suphwellls spgcific !,2$0-acre

stand-up drilling unit so estabfished.

1 1. A, to any tract in a drilling unit which is also committed to the Aurora @eep)

Federat ,Uh-it, production alldcation to said tract Shail instead be allocated to the Unit

.!.-:. .i .participating area inc[usive of alry portion of the SubjecJ Formations and of said fiact in

accordance with the terms. ofthe goyeniing Unit Agreement,

,!2, Not more lhan one year afte1 .the anniversary of the qntry of the Board's

Order, and upon each of the fouf rinniversafies of the sarne thereafter, the opor4tor shall

,14

report back to the Board on the,availAb-lg rgsults of its.pperatiens on the Subject Lands

ptirsuant to this Ordef. This reporting requirement may be met by filing a writtpn report

with the Division'and Board, and may require an oral teport at one or moreBorird hearings

at the discretion of the Board

13. This Order Shall expire for all putposes five years from the date of :its

issuance, unless otherwise extend.ed, amended and/or modified by the Board.

t4

Reqqest B0ar4 Reconbideration: As required by U{ah Qoile Ann, $ 6:3G-4-2A8(1Xe) - (e),

tbeSo-ard herebl notifies all parties in,interest that they have the rigfuf to seek judioial

review of this final Board brder in this formal adjudioation by filing a,timely 4ppeal with

the Utah Supreme Court within 30 days aftei the date that this Order issued. Utah Code

Ann. $$ 63c.4.40lr(3Xa) and 403. As an alternative to seeking lmmediafe judicial review,

an-d not 4s a pqereQuis$e tq seeking judicial revierv; tfre Bqard alsq helqby notifies p4rtles

that theymay elqct torequegtthatthe Board reconsiderthis Order; which oonslifules a firial

agency aqtion of the.Board. Utah Code Ann, $ 63G-4-302, entitled, 'Agenpy Review =

Recontiderationr" states:

(tXa) Within 20 dlys after the dale that an ordef ip issued forw-high igView by ihe ?gency or by a superior agenpy uhdgrSgctton 63Q-4-3ql lq unavailalqle, and'!f the ordef wqr4ldotherwise constitutp final agency action, a1y party may file a

wrifign lequeqt for rec.gqside,ration with the agency, stating thespeoific lrouhds upon whioh.ietief iq igquested.

15

(b) Urtless ,othenlrips provided by statu{e, the filing of the

requgst is not aprerequisite for seekingjudipial revlew pftheo.1der,

(2) The'iequest for reconsi,{e1{ion shal! be filpd with theagency and onp copy shall be sent by mail to each party by theperson making the,request,

(3)(a) ihe agency hebdl or a per$on designateil for thatpu[pqSe, shall,issug a wiitten older gqanting the request ordenying the request

(b) If the agelryy lread or the person designated fot thatpu{pose,doos ng! issuo an.order wilhin 20 days after the filingof the request; t[e lre,quest for reconsideration shall be

'::.'

considered to be denied.

Id. The Board aiso helety notifies the partieS that Utah Admin. CodeRuteR64l-110-100,

Which is part,of a group of Board rules enfitled, *Rehearing and Modification of Existing

Orders," st4te$:

A4y pegsqn affected by a final Qlder or d.gcision of the Boardmay filg q pglilion for rehearing. Unlesq othgrwiseprgyi{q{, ?.

pgtitionforrehearipg:guqt be filed no laterthgn the 10ft day ofttre mq4lh fo{owirig tlig qate of plgning of th,g finai ordel grdeqision frii which the rehearing is sought. A copy of suchpbtifion will be sbrved og each other partyto the:pfoceeding no' later'than the f 5ft day ofthp month.

Id, Sqg Utah Admin. Code Rule R641:110-200 fof the required cgntgnts ofra petition for

fehearing. If the-re is any gonflict befiveen the deadling fu Utah CodE Ann. $ 63G-4-302

and the deadfine in Utah Admin. Code Rule R641-110-100 for moving to rehear thjs

malter, the Boald hgqeby rulgs tha! ths later ofthe two deadlines shall be available to any

t6

party moving to rehear this matter. Ifthe Board later denies a timely petition for rohearing,

the party may still seek judicial review of the order by perfecting a timely appealwith the

Utah Supreme Courtwithin 30 dayq thereaft.er.

15' The Board retains oontinuing jurisdiction over all the partigs and over the

subject matter'of this cause, except to the extent said jurisdiction may be divested by the

filing of a timely appealto seek judicial review of this order bythe utah Supreme court.

16' For allpurposes, the chairman's signature on an elgctronic versiqn or a faxed

gopy of this ordershau be deemed the equivarent of a signed pdgina!.

DATED this27thday of Sepernbei 20t8.

STATE OF'UTATIOIL, GAS AND MINING

By:J, Gill, J IffJAN

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aIt

:I FINLEYresourcesAQQUIBF " OE\I€LOF " SUCCEES

Pelican Lake Location Map

Pelican Lake

Uintah

Carbon

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EXHIBIT OCO

Docket No. 2020-01Cause No.470-01

FINLEY Pelican Lake Location MapresourcesACQUIqE, O{IELQF I SUCCEf,D

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trLEGEND

APPLICATION LANDS

To effectively produce theavailable oil in place inthe Pelican Lake area,horizontal drilling with100 foot setbacks at theheel and toe sections ofthe well are requested

EXHIBIT'D'Docket No. 2020-01Cause No.470-01

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FINLEY PRODUCTION

BAINBRIDGE UINTA

CH4 - FRI, BIG WEST, FINLEYPRODUCTION & BAYLESS

EXHIBIT,IE"Docket No. 2020-01Cause No.470-01

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Previously Presented Stress Orientation

Previously presented rock stress orientationfrom image logs immediately surroundingPelican Lake show a consistent fractureorientation that is confirmed with actual downhole fracture data.

LEGENDI nnnucATroN LANDS

- MA)fl MUM STRESS ORIENTATION

(From lmage Logs)

Aurora State 5-32-7-20

Maximum Horizontal ln-Situ Stress: N70W€70F {110"-290'}Minimurn Horizontal ln-Sifu Stress: N30E€30w {030'-21 0')

EXHIBIT,F,Docket No. 2020-0LCause No.470-01

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Lake show a consistent fractureorientation that suggestshydrocarbons will be left unrecoveredat a 330' setback.

EXHIBIT,,G,,Docket No. 2020-01

Cause No.470-01

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APPLICATION LANDS

MICRO-SEISMIC WELL

Finley has obtained actual down holefracture data (micro-seismic) from 3close proximity horizontal wells thatfurther support the previouslypresented stress and fracture data inthe Pelican Lake area. These datapoints show an average fracture halflength of 239 feet in the N75Worientation.

EXHIBIT "H''Docket No. 2020-01Cause No.470-01

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average fracture half length of 239feet at the azimuth of N75W willreduce the amount of unrecoverablehydrocarbons while also protectingcorrelative rights in the adjacentlands.

EXHIBff NT'

Docket No.2020-01Cause No.470-01

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FINLEY Project Economicsresources

. Long Lateral Hz well = additional 460 feet of completed reservoir

. CH4-Finley estimates 36,800 additional Barrels of oil per well

. 36,800 x $SS per barrel = $2,024,000 additional revenue iper well

. This yields a project ROI of approximately 6.5:1

. Additional severance tax at45% = $91,080

EXHIBIT,t,Docket No.2020-0LCause No.470-01

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SENDER: Cotu1 PLETE'rH B SEcTroN

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ENERGY UTAH, LLC\TTN: RODNEV-BLACK5128 APACHE PLUME RD.rORT WORTH, TX 76107

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to:UNITED DEP,qii.T. Oi: INTERIOR D, ls

lfSUREAU OF LAND MANAGEMENT -VERNAL FIELD OFFICEATTN: JERRY KENCZKA, ASST, FIELDIIANAGER - TANDS AND MINERALS170 s.500 EASTVERNAL, UT A4078.2727

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AS NIWSPAPER ACENCY COMI'}ANY, LLC dba UTArI MEDIA GROL]P LEGAL BOOKER, I CERTIFY THAT THE ATTACI{F,DADVI]R'IISEMENT OF NOTICE OF HEARINC BEFORE THN BOARD OF OIL. GAS AND MININC DIiPARTMENT Otr'NATURALRESOURCES STATE OF UTAH THE STATE OF UTAH TO ALL PERSONS INTERESTED IN THE FOLLO FOR DIV OF OIL.GAS &II{INING. WAS PUBLISHED BY THR NEWSPAPER AGENCY COMPANY, [,LC dba UTA}I MEDIA GROUP, AGENT FOR DESERTiT NEWSAND THE SAL'T LAKE T'RIBINE, DAILY NEWSPAPERS PRINTED IN THE ENCLISFI LANGUAGE WITH GENERAI, C]RCT]I.ATION INUTAH, AND PUBLISHED IN SALT LAKE CITY, SALT LAKE COTJNTY IN THE STATE OF UTA}I. NOTICE IS ALSO POSTED ONLJTNHLEGALS.COM ON THE SAME DAY AS THE FIRST NEWSPAPER PUBLICATION DATE AND REMAINS ON UTAHLEGALS.COMINDEFINITDLY. COMPLIES WITII U'IAll DIGITAL SIGNATURE ACT U'[AH CODE 46-2-l0l;46-3-104.

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The Salt Lake Tribune

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NOTICE OF HEARING BEFORE THE BOARD OF OIL, GAS AND MINING DEPARTMENT OF NATURAL RESOURCES STATE OF UTAH THE STATE OFUTAH TO ALL PERSONS INTERESTED IN THE FOLLOWING MATTERS (Docket Nos. 2020-001, and 2020-002): Notice is hereby given that theBoard of Oil, Gas and Mining (the "Board"), State of Utah, will conduct a hearing on WEDNESDAY, FEBRUARY 26, 2020, at 10:00 AM, or assoon thereafter as possible, in the auditorium of the Department of Natural Resources, 1594 West North Temple, Salt Lake City, Utah. Thehearing will be streamed live on the Department of Natural Resources YouTube channel at https://youtu.be/zn2KTjqpNOA. THE HEARINGWILL BE CONDUCTED as a formal administrative adjudication in accordance with the rules of the Board as set forth in Utah AdministrativeCode R641 et seq., and as provided for in Utah Code Ann. § 40-6-1 et seq., Utah Code Ann. § 40-8-1 et seq., and Utah Code Ann. § 63G-4-101 through 601. DOCKET NO. 2020-001 CAUSE NO. 470-01: In the matter of the Request for Agency Action of FINLEY RESOURCES INC. foran order modifying the Board's order entered in Cause No. 270-10 to reduce the heel/toe setbacks for horizontal wells from the north/southboundaries of the established drilling units for the production of oil, gas and associated hydrocarbons from the Eocene Middle and LowerGreen River Formations and portions of the Paleocene Wasatch Transitional Formations, comprised of Sections 20, 21, 28 and 29, Township 7South, Range 20 East, SLM, Uintah County, Utah. THE PURPOSE OF THE PROCEEDING will be for the Board to receive testimony andevidence regarding a Request for Agency Action (the "RAA") filed by Finley Resources Inc. that the Board enter an order: 1. Modifying theBoard's Order entered in Cause No. 270-10 on September 27, 2018 to reduce the heel/toe setbacks for horizontal wells from the North andSouth boundaries of the drilling units established thereunder from 330 feet to 100 feet; 2. Making such findings and orders in connectionwith the RAA as it deems necessary; and 3. Providing for such other and further relief as may be just and equitable under the circumstances.DOCKET NO. 2020-002 CAUSE NO. 600-01: In the matter of the Request for Agency Action of CH4 ENERGY-FINLEY, LLC for an order: (I)Amending the Board's order in Docket No. 2015-020, Cause No. 139-134 and (II) Amending the Board's order in Docket No. 2018-020,Cause No. 139-158 with respect to: (1) Vertical/directional well density and (2) North-south drilling unit boundary producing intervalsetbacks, for the production of oil, gas and associated hydrocarbons from the Lower Green River and Green River-Wasatch Formations inportions of Sections 13-16, 21-27 and 34-36, Township 3 South, Range 1 West, U.S.M., in Duchesne and Uintah Counties, Utah. THEPURPOSE OF THE PROCEEDING will be for the Board to receive testimony and evidence regarding a Request for Agency Action ("RAA") filedby CH4 Energy-Finley Utah, LLC ("CH4/Finley"), that the Board enter an order: I. Amending the Findings of Fact, Conclusions or Law andOrder in Docket No. 2015-020, Cause 139-134 dated July 21, 2015 ("Order 139-134") with respect to: (i) the authorized density of verticaland/or directional wells and (ii) the 330' north-south drilling unit boundary producing interval setbacks in currently in place for short-lateral

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horizontal and long-lateral horizontal wells, for the production of oil, gas and other hydrocarbons from the Lower Green River and GreenRiver-Wasatch Formations, defined for purposes of this Cause as follows (collectively, "Subject Formations"): The interval from the top of theLower Green River Formation (TGR3) to the base of the Green River-Wasatch Formation (top of Cretaceous), which base is defined as thestratigraphic equivalent of the Dual Induction Log depths lying between 16,720 feet and 16,970 feet in the Shell-Ute 1-18B5 Well, located inthe S/2NE/4, Section 18, Township 2 South, Range 5 West, U.S.M., from the following described lands (collectively, "Subject Lands"):Township 3 South, Range 1 West, U.S.M., Sections 13-16: All, Sections 21-27: All, and Sections 34-36: All. II. Amending the Findings of Fact,Conclusions or Law and Order in Docket No. 2018-020, Cause 139-158 dated February 26, 2019 ("Order 139-158") with respect to the 330'north-south drilling unit boundary producing interval setbacks currently in place for long-lateral horizontal wells, for the production of oil, gasand other hydrocarbons from the Subject Formations on the Subject Lands. III. Upon production of sufficient evidence and presentation ofcompetent testimony at the Hearing, the Board issue an order: A. Confirming the continued validity and effectiveness of Order 139-134 andOrder 139-158, except to the extent of the amendment of the same as requested herein; B. Declaring the Subject Formations a "commonsource of supply," as contemplated by Utah Code Ann. § 40-6-2(19); C. Amending Order 139-134 to increase the number of vertical and/ordirectional wells authorized to be drilled, completed and produced in each of the 1,280-acre drilling units established thereby to a total of 32vertical and/or directional wells, with all production from the same allocated to the existing, respective 1,280-acre drilling units pursuant toOrder 139-134, effective the date of issuance of any order of the Board issued pursuant to this RAA; D. Amending Order 139-134 and Order139-158 to decrease the north-south drilling unit boundary producing interval setbacks for short-lateral horizontal and long-lateral horizontalwells drilled, completed and produced in any 1,280-acre drilling unit (established under Order 139-134) or any 2,560-acre drilling unit(established under Order 139-158) to 100', absent an exception location approval by the Board pursuant to Utah Admin. Code Rule R649-3-3, effective the date of issuance of any order of the Board issued pursuant to this RAA; E. Requiring CH4/Finley to report the results of itsoperations on the Subject Lands to the Board in writing annually for a period of 5 years from the date of any order of the Board issuedpursuant to this RAA; F. Providing that any order of the Board issued pursuant to this RAA should expire within 5 years of the date of suchissuance (as to further development), unless otherwise extended, amended, modified and/or otherwise made permanent by the Board; G.Making such findings and orders in connection with this RAA as it deems otherwise necessary; and H. Providing for such other and furtherrelief as may be just and equitable under the circumstances. Objections to the RAA(s) must be filed with the Secretary of the Board at theaddress listed below no later than the 10th day of February, 2020. A party must file a timely written objection or other response in order toparticipate as a party at the Board hearing. Failure to participate can result in a default judgment. Natural persons may appear and representthemselves before the Board. All other representation of parties before the Board will be by attorneys licensed to practice law in the State ofUtah, or attorneys licensed to practice law in another jurisdiction which meet the rules of the Utah State Bar for practicing law before theUtah Courts. Persons interested in this matter may participate pursuant to the procedural rules of the Board. The RAA(s), and anysubsequent pleadings, may be inspected at the office of the undersigned, and inspected online at the Utah Board of Oil, Gas and Mining'swebsite at http://ogm.utah.gov/amr/boardtemp/redesign/books.html. Pursuant to the Americans with Disabilities Act, persons requiringauxiliary communicative aids and services to enable them to participate in this hearing should call Julie Ann Carter at (801) 538-5277, atleast three working days prior to the hearing date. DATED this 24th day of January, 2020. STATE OF UTAH BOARD OF OIL, GAS AND MININGRuland J. Gill, Jr., Chairman /s/ Julie Ann Carter Board Secretary 1594 West North Temple, Suite 1210 Salt Lake City, Utah 84116 (801) 538-5277 1280919 UPAXLP

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Deseret News

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Publication City and State:Salt Lake City, UT

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Notice Publish Date:Sunday, February 02, 2020

Notice Content

NOTICE OF HEARING BEFORE THE BOARD OF OIL, GAS AND MINING DEPARTMENT OF NATURAL RESOURCES STATE OF UTAH THE STATE OFUTAH TO ALL PERSONS INTERESTED IN THE FOLLOWING MATTERS (Docket Nos. 2020-001, and 2020-002): Notice is hereby given that theBoard of Oil, Gas and Mining (the "Board"), State of Utah, will conduct a hearing on WEDNESDAY, FEBRUARY 26, 2020, at 10:00 AM, or assoon thereafter as possible, in the auditorium of the Department of Natural Resources, 1594 West North Temple, Salt Lake City, Utah. Thehearing will be streamed live on the Department of Natural Resources YouTube channel at https://youtu.be/zn2KTjqpNOA. THE HEARINGWILL BE CONDUCTED as a formal administrative adjudication in accordance with the rules of the Board as set forth in Utah AdministrativeCode R641 et seq., and as provided for in Utah Code Ann. § 40-6-1 et seq., Utah Code Ann. § 40-8-1 et seq., and Utah Code Ann. § 63G-4-101 through 601. DOCKET NO. 2020-001 CAUSE NO. 470-01: In the matter of the Request for Agency Action of FINLEY RESOURCES INC. foran order modifying the Board's order entered in Cause No. 270-10 to reduce the heel/toe setbacks for horizontal wells from the north/southboundaries of the established drilling units for the production of oil, gas and associated hydrocarbons from the Eocene Middle and LowerGreen River Formations and portions of the Paleocene Wasatch Transitional Formations, comprised of Sections 20, 21, 28 and 29, Township 7South, Range 20 East, SLM, Uintah County, Utah. THE PURPOSE OF THE PROCEEDING will be for the Board to receive testimony andevidence regarding a Request for Agency Action (the "RAA") filed by Finley Resources Inc. that the Board enter an order: 1. Modifying theBoard's Order entered in Cause No. 270-10 on September 27, 2018 to reduce the heel/toe setbacks for horizontal wells from the North andSouth boundaries of the drilling units established thereunder from 330 feet to 100 feet; 2. Making such findings and orders in connectionwith the RAA as it deems necessary; and 3. Providing for such other and further relief as may be just and equitable under the circumstances.DOCKET NO. 2020-002 CAUSE NO. 600-01: In the matter of the Request for Agency Action of CH4 ENERGY-FINLEY, LLC for an order: (I)Amending the Board's order in Docket No. 2015-020, Cause No. 139-134 and (II) Amending the Board's order in Docket No. 2018-020,Cause No. 139-158 with respect to: (1) Vertical/directional well density and (2) North-south drilling unit boundary producing intervalsetbacks, for the production of oil, gas and associated hydrocarbons from the Lower Green River and Green River-Wasatch Formations inportions of Sections 13-16, 21-27 and 34-36, Township 3 South, Range 1 West, U.S.M., in Duchesne and Uintah Counties, Utah. THEPURPOSE OF THE PROCEEDING will be for the Board to receive testimony and evidence regarding a Request for Agency Action ("RAA") filedby CH4 Energy-Finley Utah, LLC ("CH4/Finley"), that the Board enter an order: I. Amending the Findings of Fact, Conclusions or Law andOrder in Docket No. 2015-020, Cause 139-134 dated July 21, 2015 ("Order 139-134") with respect to: (i) the authorized density of verticaland/or directional wells and (ii) the 330' north-south drilling unit boundary producing interval setbacks in currently in place for short-lateralhorizontal and long-lateral horizontal wells, for the production of oil, gas and other hydrocarbons from the Lower Green River and GreenRiver-Wasatch Formations, defined for purposes of this Cause as follows (collectively, "Subject Formations"): The interval from the top of theLower Green River Formation (TGR3) to the base of the Green River-Wasatch Formation (top of Cretaceous), which base is defined as thestratigraphic equivalent of the Dual Induction Log depths lying between 16,720 feet and 16,970 feet in the Shell-Ute 1-18B5 Well, located inthe S/2NE/4, Section 18, Township 2 South, Range 5 West, U.S.M., from the following described lands (collectively, "Subject Lands"):




Township 3 South, Range 1 West, U.S.M., Sections 13-16: All, Sections 21-27: All, and Sections 34-36: All. II. Amending the Findings of Fact,Conclusions or Law and Order in Docket No. 2018-020, Cause 139-158 dated February 26, 2019 ("Order 139-158") with respect to the 330'north-south drilling unit boundary producing interval setbacks currently in place for long-lateral horizontal wells, for the production of oil, gasand other hydrocarbons from the Subject Formations on the Subject Lands. III. Upon production of sufficient evidence and presentation ofcompetent testimony at the Hearing, the Board issue an order: A. Confirming the continued validity and effectiveness of Order 139-134 andOrder 139-158, except to the extent of the amendment of the same as requested herein; B. Declaring the Subject Formations a "commonsource of supply," as contemplated by Utah Code Ann. § 40-6-2(19); C. Amending Order 139-134 to increase the number of vertical and/ordirectional wells authorized to be drilled, completed and produced in each of the 1,280-acre drilling units established thereby to a total of 32vertical and/or directional wells, with all production from the same allocated to the existing, respective 1,280-acre drilling units pursuant toOrder 139-134, effective the date of issuance of any order of the Board issued pursuant to this RAA; D. Amending Order 139-134 and Order139-158 to decrease the north-south drilling unit boundary producing interval setbacks for short-lateral horizontal and long-lateral horizontalwells drilled, completed and produced in any 1,280-acre drilling unit (established under Order 139-134) or any 2,560-acre drilling unit(established under Order 139-158) to 100', absent an exception location approval by the Board pursuant to Utah Admin. Code Rule R649-3-3, effective the date of issuance of any order of the Board issued pursuant to this RAA; E. Requiring CH4/Finley to report the results of itsoperations on the Subject Lands to the Board in writing annually for a period of 5 years from the date of any order of the Board issuedpursuant to this RAA; F. Providing that any order of the Board issued pursuant to this RAA should expire within 5 years of the date of suchissuance (as to further development), unless otherwise extended, amended, modified and/or otherwise made permanent by the Board; G.Making such findings and orders in connection with this RAA as it deems otherwise necessary; and H. Providing for such other and furtherrelief as may be just and equitable under the circumstances. Objections to the RAA(s) must be filed with the Secretary of the Board at theaddress listed below no later than the 10th day of February, 2020. A party must file a timely written objection or other response in order toparticipate as a party at the Board hearing. Failure to participate can result in a default judgment. Natural persons may appear and representthemselves before the Board. All other representation of parties before the Board will be by attorneys licensed to practice law in the State ofUtah, or attorneys licensed to practice law in another jurisdiction which meet the rules of the Utah State Bar for practicing law before theUtah Courts. Persons interested in this matter may participate pursuant to the procedural rules of the Board. The RAA(s), and anysubsequent pleadings, may be inspected at the office of the undersigned, and inspected online at the Utah Board of Oil, Gas and Mining'swebsite at http://ogm.utah.gov/amr/boardtemp/redesign/books.html. Pursuant to the Americans with Disabilities Act, persons requiringauxiliary communicative aids and services to enable them to participate in this hearing should call Julie Ann Carter at (801) 538-5277, atleast three working days prior to the hearing date. DATED this 24th day of January, 2020. STATE OF UTAH BOARD OF OIL, GAS AND MININGRuland J. Gill, Jr., Chairman /s/ Julie Ann Carter Board Secretary 1594 West North Temple, Suite 1210 Salt Lake City, Utah 84116 (801) 538-5277 1280919 UPAXLP

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AFFIDAVIT OF PUBLICATION

County of Duchesne,STATE OF UTAH

I, KATHRYN P. CRAPO, on oath, say that I amthe LEGALS MANAGER of the Uintah Basin Standard,

a weekly newspaper of general circulation, published at

Roosevelt, State and County aforesaid, and that a certainnotice, a true copy of which is hereto was publishedin the full issue of such newspaper for VE

and that the was on the day

of that the last puof the issue of such newspaper dated the

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ALS MANAGER

Subscribed and sworn to before me on this

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by Kathryn P. Crapo.

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'

,dTICE OFHEARING

BEFORE THEBOARD OIToIL, GAS

AND MININGDEPART:MANT OFNATURAL

RESOURCESSTATE OF

UTAH

"l"H[ slAIU ()r?

tJ'tAl1l'1o ALL PHII-SONS INTERESTEDIN THI] FOI,,LOW-ING MATTERS(Docket Nos. 2020-00t. and 2020-002):

Notice is herebygiven that the Boardof CXl, Gas and Min-ing (tlre "Board")"State of Utah. willconduct a hearing onWEDNHSDAT F'HB.RUARY 26,2Q20,atl0:00 AM, 0r as soonthtreafler as possible"in ihe auditoriurn ol-the Department ofNatural Resources,!594 West North'Iemple, Salt LakeCity, Utah. The hear-ing rvill be streamedlive on the Depart-ment of NaturalResources YouTubechanrrel at https:1/yQutu.be/znzK"ljqp-NOA,

.THE HEARING

WILL t}H CON-DU{:I'EI} as a lirrmaladministrative a{iudi-cation in accordancewith tho rules of tluBoard as set tirrth inUtah AdninistrativeCode R64l et seq.,and as provided forin Utah Code Anr:. g

40-6-l et seq., UtahCode Ann. $ 40-8- I$t seq., and [JtahCodeAnn. $ 63C-4-l0l through 601.

DOCKETNO.2020-00t, cAuseN0.470-ill: ln themattsr 0l'th€ R$questfarAgency Action olFINLHY RESOI-JRC-ES INC. for anorder rnodilying theBoard's order sntercdin Cause No.270-10to rsduce the heel/toesetbscks for horizern.tal wells from the

northlsouth troundar-ies o1'fhe establisheddlitling unils fbr theproducliort of oi1,gar and associaledhycl'c:carbon s li'onrthe Hocene Middleand Lower GreenRiver Forruationsand portiorrs ofthePaleocene Wasatch'liansitional fiotma-tions. conrPrised ofSections 20, ?1, ?8

and 29.'lbwnship 7Souih, Range 20 Hast,SL,M. uintah County,Utah.

THTJ PURPOSHOT T}II1 PROCEED.ING rvill be ftrr theBoard tei receive tes-timony and evidencere'garding a Requestfor Agency Action(the "RAA") {iled byFinley Resources Inc.thal the Board enierau order: l. Modify-ing the Board's Orderentered in Cause No.270-10 on Septernber27 , 2Al8 to reducethe heel/foe setbacksfor horiz.ontal rvellsl'rnrn the North andSeruth boundariesofthc dritling unitsestablished thereun-der tionr 330 feet to100 feet;2. Makingsuch findings andortlerc in cnnnectionwith the RAAas itdeems necesrary;and 3.' Providing fbrsuch other and fur-therrelief ns may be justand equitable underthe cirpumstanccs,

I]OCKL;TNO.202A-0$2 CAUSTiNO. 600-01: In the

'rnatter ofthe Requesttbr Agency ActionofCH4 ENERG%FlNl-EY LLC for anonler: (l) Amendingthe []oard's otder inDocket No. 2015-020, CauseNo. 139-134 and (II) Amend-ing the Board'sorder in Docket No.2018-0?0, Cause N0.139-158 wifh respectto: { I ) Verlical/direc-tional well densityand (?) Ncrrth-southdrilling unit boundaryproducing iutervalsetbacks, for theprodustion ofoil,gas and nssociatedlrydrocar$ons liomthe l-ower (ireen

River and Green[{iver-Wasatch For-nrations in portions nfSections l3-16,21-27and 34-16, Town-

\

ship 3 South. Range \

I lVesl, U.S.M., inDuchesne and UintahCounties, IJtah.

1'IIH tltrRPostiOF THP PROCEED-ING will be fbr theBoard tn reccivetestimony andevidence regarding aRequest lbr AgencyAction ("RAA") filedby Cl14 F)nergy-Finley lJtah, LLC("CH4/Finley"),lhat the Board cnteran order: I. Amend-iug the lrindings ol'I;act, Conclusionsor Law and Order inDocket No. 201 5-020, Cause 139-134datcd July 2l- 2015

{"0rder 139-134")with fespact to: {i) theeuthoriz,ed density ofverlical and/or direc-tional wells and (ii)the 330'north-southdrilling unif boundaryproducing intervalsetback$ in cun"entlyiu placc fbr short-Iaterul horizrutal andlong-lateral hori-zontal wells, fbr theproduction ofoil, gasand other hydrocar-bons florn thc LoivsrCreen River andGreen Rivsr-Wasatch '

F'ormatitrrrs, delinedfor purposes ofthisCause as follows(co llectivel y, "Sutrj ectFonnations"): Theinterval from the topcll'the Lower GreenRiver Fornration(lGR3) to the baseof the fireen River-Wasatch Formation(top ofCretaceous),which base is definedas the stratigraphicequivalent ofiheDual Induction Logdeptlrs lying between16.720 feet and16,970 leet in theShell-Llte l-1885\\'ell, loca{ed in theS/2NE/4, Scction18, 'Ibwnship 2South, Range 5 West,tJ,S.M,, f'rom tlefollowing describedlands (collectively,"Subjcct Lands"):Township 3 South.Range I West,l.i.S,M., Sections

I3-16: All" Sec-tions 2l-27: All, andfiections 34-36: All.II. Arucuding thef?indings ofFact,Clonclusions or l.awaud Ordel in DocketNo. ?0lli-020,Cause 139-158 datedIelrruary 26,2U19("0rder 139-158')r.vith respect to the330' north-sr:uth drilFing unit boirndaryproducing intervalselbacks cunently inplace frrr long-latelalhorizontal wells, forthe production ofoil,gas and other hy-drocarbons fiotti theSubject Fumationson the Subject Lands.lll. tJpon produciionof sufficient evidenceand presentation ofcompetellt testinonyat the Hearing, theIloard issue an order:A. Conlirming thecontinued valid-ity and effectivenessofOrder i39-134and Order 139-i58,cxcept t(} tlre extcntof lhe arnendment ofthe same a$ rcque$tedherein; B. Declaringthe Subject Forma-tions a "commonsorrce of supply," ss

conternplated by UtahCodeAnn. $ 40-6-2tl9):C. Amending0rder 139-134 ttlincrease the numberof vertical andlordirectional wells au-thorized lo he drilled,completed andproduced in cach ol'the 1,280-acre drill-ing units establinhedthereby to a totalof32 vertical and/0r directional wslls,with all prodsctionfronr the same allo-catcd to the existing,respective 1,280-acredrilling uniis pursuanllo Order I 39-l 34,ellbctive 1lre date olissuance ofany orderofthe Board issuedpursuant to this RAA:D. Amending Order139-134 and Order139-l 58 to decreasethe north-south drill-ing unit boundaryproducing intervalsefbachs for short-lateral horizontal andlong-lateral hori-zontal wells drilled,comrrleted and

ploduced in any1,28O-acre drillingunit (cstablishedunder Order 139-134)or any ?,560-acredrilliug unit (estnb-lishecl under Orderl3q-158) to 100',absent an exceplioulocation approval bY

the lloard pursu-ant to Utah Admin.Code Rule R649-3'3,e{Ieclivg tlre date ofissuance o1'any otderoflthe lloard issuedpursuant to this RAA;E. Requiring ClI4lL'inley to report thsfesults ofits Qpara-tions on the SubjectLands tg the Board inwriting anirually lirra period oli 5 yearslrom the date olanYorder ofthe Board is-

sued pursuaflt to thisRAA;F. Pltlvidingthat any order ofiheBoald issued Pursuantto this RAA shouldexpire rvithin 5 Yearsof the elate of suchissu.lnce (as to furtherdevelopment), unlessothefwi$e extended,arnended, modifiedandior othert'isernade pemranent bY

the tloard; G. Makingsuch findings andorders in connectionwith this RAA as

it dcetns athert'isinecessary; and H.Providing for such

other and furtherrelief as may be justand etluitable underthe circumstances.

Objections to lheRAA(s) mustbe filedwifh the SecretatYof the Board at theaddress listed belowno later than the I Oth

day ot FebruarY,2020. A partY mustlile a tirnelY writtenobjection or othcrresponse in ordcrto participate as a

paily at the lloatdhearing. ilailure ttlpanicipate can resultin a dcthr"rlt judgment.Natural pcrsons mayappear and representthernselves bef'orethe lloard. All otherrepfesentation ofpar-ties betbre the Boardwitl be by a:tornsy$liccnsed to practicelaw in the State ofUtah, or attorneys li*csnsed t0 practice lawin another jurisdictionwhiqh meet the rulesofthe Utah State Barfor prac.licing law be-forc the Utah Courts.Persons interestedin this matter rnayparticipate pursuartto the proceduralrules of the lloard.The RAA(s), and anysubsequent pleadings.rnay bc inspectedat the oifrce of theundersigned, and in-spected online at lhetjtah Board of Oil,Gas and Mining'swebsite at http://ogm.utah.gov/amrlboad-ternplrede sign/book.htnrl. Pursuant to theAurericans with Dis-abilities Acf, personsrequiring auxiliarycQmmunicative aidsand services to enablethern to participate inthis hearing shouldcall Julie Ann Carterat(801) 538-5277,atleast three workingdays prior to the hsar-ing date.

DATED this 24tltday ol'January, 2020.

STATE OF UTAHI}OARDOIT OlL,

GASAND MININCRuland J. Gill, Jr..

Chairmanlsl Julie Ann CarterBoard Secretary1594 West North

Temple, Suite 1210Salt l,ake CitY,

Utah 84116(801) s38-s277l'ublished iu

the tjintah BasinStandard February 4'2420.



Uintah Basin Standard

Publication Name:Uintah Basin Standard

Publication URL:

Publication City and State:Roosevelt, UT

Publication County:Duchesne




Notice URL:

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Notice Publish Date:Tuesday, February 04, 2020

Notice Content

NOTICE OF HEARINGBEFORE THE BOARD OF OIL, GAS AND MININGDEPARTMENT OF NATURAL RESOURCESSTATE OF UTAH

THE STATE OF UTAH TO ALL PERSONS INTERESTED IN THE FOLLOWING MATTERS (Docket Nos. 2020-001, and 2020-002):Notice is hereby given that the Board of Oil, Gas and Mining (the “Board”), State of Utah, will conduct a hearing on WEDNESDAY, FEBRUARY26, 2020, at 10:00 AM, or as soon thereafter as possible, in the auditorium of the Department of Natural Resources, 1594 West NorthTemple, Salt Lake City, Utah. The hearing will be streamed live on the Department of Natural Resources YouTube channel athttps://youtu.be/zn2KTjqpNOA.THE HEARING WILL BE CONDUCTED as a formal administrative adjudication in accordance with the rules of the Board as set forth in UtahAdministrative Code R641 et seq., and as provided for in Utah Code Ann. § 40-6-1 et seq., Utah Code Ann. § 40-8-1 et seq., and Utah CodeAnn. § 63G-4-101 through 601.DOCKET NO. 2020-001 CAUSE NO. 470-01: In the matter of the Request for Agency Action of FINLEY RESOURCES INC. for an ordermodifying the Board's order entered in Cause No. 270-10 to reduce the heel/toe setbacks for horizontal wells from the north/southboundaries of the established drilling units for the production of oil, gas and associated hydrocarbons from the Eocene Middle and LowerGreen River Formations and portions of the Paleocene Wasatch Transitional Formations, comprised of Sections 20, 21, 28 and 29, Township 7South, Range 20 East, SLM, Uintah County, Utah.THE PURPOSE OF THE PROCEEDING will be for the Board to receive testimony and evidence regarding a Request for Agency Action (the“RAA”) filed by Finley Resources Inc. that the Board enter an order: 1. Modifying the Board's Order entered in Cause No. 270-10 onSeptember 27, 2018 to reduce the heel/toe setbacks for horizontal wells from the North and South boundaries of the drilling unitsestablished thereunder from 330 feet to 100 feet; 2. Making such findings and orders in connection with the RAA as it deems necessary; and3. Providing for such other and further relief as may be just and equitable under the circumstances.DOCKET NO. 2020-002 CAUSE NO. 600-01: In the matter of the Request for Agency Action of CH4 ENERGY-FINLEY, LLC for an order: (I)Amending the Board's order in Docket No. 2015-020, Cause No. 139-134 and (II) Amending the Board's order in Docket No. 2018-020,Cause No. 139-158 with respect to: (1) Vertical/directional well density and (2) North-south drilling unit boundary producing intervalsetbacks, for the production of oil, gas and associated hydrocarbons from the Lower Green River and Green River-Wasatch Formations inportions of Sections 13-16, 21-27 and 34-36, Township 3 South, Range 1 West, U.S.M., in Duchesne and Uintah Counties, Utah.THE PURPOSE OF THE PROCEEDING will be for the Board to receive testimony and evidence regarding a Request for Agency Action (“RAA”)




filed by CH4 Energy-Finley Utah, LLC (“CH4/Finley”), that the Board enter an order: I. Amending the Findings of Fact, Conclusions or Law andOrder in Docket No. 2015-020, Cause 139-134 dated July 21, 2015 (“Order 139-134”) with respect to: (i) the authorized density of verticaland/or directional wells and (ii) the 330' north-south drilling unit boundary producing interval setbacks in currently in place for short-lateralhorizontal and long-lateral horizontal wells, for the production of oil, gas and other hydrocarbons from the Lower Green River and GreenRiver-Wasatch Formations, defined for purposes of this Cause as follows (collectively, “Subject Formations”): The interval from the top of theLower Green River Formation (TGR3) to the base of the Green River-Wasatch Formation (top of Cretaceous), which base is defined as thestratigraphic equivalent of the Dual Induction Log depths lying between 16,720 feet and 16,970 feet in the Shell-Ute 1-18B5 Well, located inthe S/2NE/4, Section 18, Township 2 South, Range 5 West, U.S.M., from the following described lands (collectively, “Subject Lands”):Township 3 South, Range 1 West, U.S.M., Sections 13-16: All, Sections 21-27: All, and Sections 34-36: All. II. Amending the Findings of Fact,Conclusions or Law and Order in Docket No. 2018-020, Cause 139-158 dated February 26, 2019 (“Order 139-158”) with respect to the 330'north-south drilling unit boundary producing interval setbacks currently in place for long-lateral horizontal wells, for the production of oil, gasand other hydrocarbons from the Subject Formations on the Subject Lands. III. Upon production of sufficient evidence and presentation ofcompetent testimony at the Hearing, the Board issue an order: A. Confirming the continued validity and effectiveness of Order 139-134 andOrder 139-158, except to the extent of the amendment of the same as requested herein; B. Declaring the Subject Formations a “commonsource of supply,” as contemplated by Utah Code Ann. § 40-6-2(19); C. Amending Order 139-134 to increase the number of vertical and/ordirectional wells authorized to be drilled, completed and produced in each of the 1,280-acre drilling units established thereby to a total of 32vertical and/or directional wells, with all production from the same allocated to the existing, respective 1,280-acre drilling units pursuant toOrder 139-134, effective the date of issuance of any order of the Board issued pursuant to this RAA; D. Amending Order 139-134 and Order139-158 to decrease the north-south drilling unit boundary producing interval setbacks for short-lateral horizontal and long-lateral horizontalwells drilled, completed and produced in any 1,280-acre drilling unit (established under Order 139-134) or any 2,560-acre drilling unit(established under Order 139-158) to 100', absent an exception location approval by the Board pursuant to Utah Admin. Code Rule R649-3-3, effective the date of issuance of any order of the Board issued pursuant to this RAA; E. Requiring CH4/Finley to report the results of itsoperations on the Subject Lands to the Board in writing annually for a period of 5 years from the date of any order of the Board issuedpursuant to this RAA; F. Providing that any order of the Board issued pursuant to this RAA should expire within 5 years of the date of suchissuance (as to further development), unless otherwise extended, amended, modified and/or otherwise made permanent by the Board; G.Making such findings and orders in connection with this RAA as it deems otherwise necessary; and H. Providing for such other and furtherrelief as may be just and equitable under the circumstances.Objections to the RAA(s) must be filed with the Secretary of the Board at the address listed below no later than the 10th day of February,2020. A party must file a timely written objection or other response in order to participate as a party at the Board hearing. Failure toparticipate can result in a default judgment. Natural persons may appear and represent themselves before the Board. All otherrepresentation of parties before the Board will be by attorneys licensed to practice law in the State of Utah, or attorneys licensed to practicelaw in another jurisdiction which meet the rules of the Utah State Bar for practicing law before the Utah Courts. Persons interested in thismatter may participate pursuant to the procedural rules of the Board. The RAA(s), and any subsequent pleadings, may be inspected at theoffice of the undersigned, and inspected online at the Utah Board of Oil, Gas and Mining's website athttp://ogm.utah.gov/amr/boardtemp/redesign/books.html. Pursuant to the Americans with Disabilities Act, persons requiring auxiliarycommunicative aids and services to enable them to participate in this hearing should call Julie Ann Carter at (801) 538-5277, at least threeworking days prior to the hearing date.DATED this 24th day of January, 2020.STATE OF UTAHBOARD OF OIL, GAS AND MININGRuland J. Gill, Jr., Chairman/s/ Julie Ann CarterBoard Secretary1594 West North Temple, Suite 1210Salt Lake City, Utah 84116(801) 538-5277Published in the Uintah Basin Standard February 4, 2020.

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NOTICE OFHEARING

BEFORE THEBOARD OFoIL, GAS

AND MININGDEPARI:.MENT OFNATURAL

RESOURCESSTATE OF

UTAH

THE STATE O,FUTAH TOALLPER-SONS INTERESTEDINTIIEFOLLOWINGMATTERS (DocketNos. 2020-001, and2020-002):

Notice is herebygiven that the BoardofOil, Gas and Mining(the "Board'i), State ofUtah, will conduct ahearing on WEDNES-DAY,FEBRUARY26,2020,at 10:00AM, oras soon.thereafter aspossible, inthe audito-riumoftheDepartmentofNatural Resources,1594 WestNorthTem-ple, Salt Lake City,Utah. The hearing wiltbe streamed live on theDepartment ofNaturalResources YouTubechannel at https://you-tu.bplzn2KTjqpNOA,

THE HEARINGWILL BE CON-DUCTED as a formaladministrative adjud!cation in accordancewith the rules of theBoard as set forth inUtah AdministrativeCode R64l et seq.,and as provided for inUtah,Code Ann;'$ 40-6-l et seq:, Utah CodeAnn. $ 40-8-1 et seq.,and Utah Code Ann.

$ 63G-4-101 through601.

DOCKET NO.2020-001CAUSENO.470-01: InthematteroftheRequestforAgencyActionofFINLEYRE-SOURCESINC. foranorder modifying theBoard's order enteredin Cause No. 270-10to reduce the heel/toesetbacks forhoizontalwells from the north/south boundaries ofthe established drillingunits for the productionofoil, gasandassociat-ed hydrocarbons from

the Eocene Middle andLower Green RiverFormations and por-tions of the PaleoceneWasatch TransitionalFormations,comprisedofSections 20,21,28and 29, Township 7South, Range 20 East,SLM, Uintah County,Utah.

THEPURPOSEOFTHE PROCEEEINGwill be for the Boardto receive testimonyandevidenceregardinga Request for AgencyAction (the "RAA")filed by Finley Re-sources Inc. that theBoardenteranorder: l.ModiftingtheBoard'sOrder entered in CauseNo.270-l0onSeptem-ber27,2078 toreduce'the heel/toe setbacksfor horizontal wellsfrom the North andSouth boundaries ofthe drilling units estab-lishedthereunderfrom330 feet to 100 feet;2.Making such findingsand.orders in connec-tion with the RAA as

it deems necessary;and 3. Providing forsuch other and furtherrelief as may be justandequitableunderthecircirmstances.

DOCKET NO.2020-002CAUSENO.600-01:InthematteroftheRequestforAgencYActionofCH4 ENER-GY-FINLEY, LLC foranorder: (I)Amendingthe Board's order inDocket No. 2015-020,Cause No. 139'134and (II) Amendingthe Board's. order inDocketNo. 2018-020,Cause No. 139-158with respect to: (1)Vertical/directionalwell density and (2)North-south drillir.rgunit boundary produc-ing interval seibacks,for the production ofoil, gas and associatedhydrocarbons fromtheLowerGreenRiverandGreen River-WasatchFormations inportionsofSections 13-16,21-27 and 34-36, Town-ship 3 South, RangeI West, U.S.M., inDuchesne and UintahCounties, Utah.THE PURPOSE OFTHE PROCEEDING

Subscribed

AFFIDAVIT OF PUBLICATION

STATE OFUTAH,}S.S.

County of Uintah

I, KAYLENE ELLIS, on oath, say that I am the Legals Manager ofthe Vernal Express, a weekly newspaper of general circulation,published at Vernal, State and County aforesaid, and that a certainnotice, a true copy of which is hereto attached, was published inthe full issue of such newspaper lbr I consecutive issues, and that

the first publication was on February 4,2020, and that the lastpublication of such notice was in the issue of such newspaper

dated February 4,2020, and that said notice was published on

Utahlegals.com on the same day as the first newspaper publicationand the notice remained on Utahlegals.com until the end of the

scheduled run.

This page is not a billing statement or invoice, but a proof ofpublication. Please make payment from billing invoice.

Legals Manager

sworn to before me this 5 day of

z&v Kaylene Ellis.

N lic

NOTARY PUBLICCARLENE MICHELE SLAUGH

695584COMMISSION EXPIRES

JUNE 14,2021STATE OF UMFI

("A.r-n)

will be for the Boardto receive testimonyandevidenceregardinga Request for AgencyAction ("RAA') filedbyCH4Energy-FinleyUtah, LLC ("CH4lFinley"), that theBoard enter an order:I. Amending the Find-ings of Fact, Conclu-sions or Law and Orderin Docket No. 2015-020, Cause 139-134dated July 21, 2015("Order 139-134")with respect to: (i) theauthorized density ofvertical and/or direc-tional wells and (ii)the 330'north-southdrilling unit bound-ary producing intervalsetbacks in currentlyin place for short-lateral horizontal andlong-lateral horizontalwells, for the produc-tion of oil, gas andother hydrocarbonsfrom the Lower GreenRiverandGreenfuver-Wasatch Formations,defined for purposesofthis Cause as follows(collectively, "SubjectFormations"): The in-terval from the top ofthe LowerGreenRiverFomation'(TGR3) tothe base of the GreenRiver-Wasatch For.mation (top of Creta-ceous), which base isdefined as the strati-graphic equivalent ofthe DuallnductionLosdepths lying betweei16,720feetand16,970feet in the Shell-Utel-18B5 Well, locatedin the S/2NE/4, Sec-tion 18, Township 2South, Range 5 West,U.S.M., from the fol-lowing described lands(collectively, "subjectLands"): Township 3South, Range I West,U.S.M., Sections 13-16: Al1, Sections 2l-27: All, and Sections34-36: All.II. Amend-ing the Findings ofFact, Conclusions orLaw and Order inDocket No. 20 I 8-020,Cause 139-158 datedFebruary 26, 2019("Order 139-158")withrespecttothe 330,north-south drillingunit boundary produc-ing interval setbackscurrently in place forlong-lateral ho r rzontal

wells, for the produc-tion ofoil, gas and otherhydrocarbons fromtheSubject Formationson the Subject Lands.IIL Upon productionof sufficient evidenceand presentation ofcompetenttestimony atthe Hearing, the Boardissue an order:A. Con-firming the continuedvalidity and effective-ness ofOrder 139-134and Order 139-158,except to the extentof the bmendment ofthe same as requestedherein; B. Declaringthe Subj ect Formationsa "common source ofsupply," as contem-plated by Utah CodeAnn. $ 40-6-2(t9);C. Amending Order139-134 to increasethe number of verti-cal and/or directionalwells authorized tobe drilled, completedand produced in eachof the 1,280-acre drill-ing units establishedthereby to a lotal of32 vertical and/or di-rectional wells, withall production fromthe same allocated tothe existing, respec-tive 1,280-acredrillingunitspursuantto Order139-134, effective thedate ofissuance ofanyorder ofthe Board is-sued pursuant to thisRAA; D. AmendingOrder 139-134 andOrder 139-158 to de-crease the north-southdrilling unit bound-ary producing intervalsetbacks for short-lateral horizontal andlong-lateral horizontalwells drilled, com-pleted and produced inany I ,280-acre drillingunit (established underOrder 139-134) or any2,560-acre drilling unit(established under Or-der 139-158) to 100',absent an exceptionlocation approval bythe Board pursuantto Utah Admin. CodeRule R649-3-3, effec-tive the date ofissuanceof any order of theBoard issued pursu-ant to this RAA; E.Requiring CH4/Finleyto report the results ofits operations on theSubject Lands to theBoard in writing an-

nually for a Period of5 vears from the date

of uny order of theBoard issued Pursuantto this RAA; F. Pro-viding that anY orderof the Board issuedDursuant to this RAAihould expire within5 years of the date ofsuch issuance (as tofurther develoPment),unless,otherwise ex-tended, amended, mod-ified and/or otherwisemadepermanentbYtheBoard; G. Makingsuchfindings and ordersin connection withthis RAA as it deemsotherwise necessary;and H. Providing forsuch other and furtherrelief as may be justand equitable under the

circumstances.Objections to the

nAA(s) must be filedwith the Secretary ofthe Board at the ad-

dress listed below no

laterthanthe lOthdaYof FebruarY, 2020.A partY must file a

timely written objec-tion or other responsein order to ParticiPateas a partY at the Boardhearing. Failure toparticiPate can resultin a default judgment.

Natural Persons mayappear and rePresentthemselves before the

Board. All other repre-

sentation of Parties be-

fore the Board will be

by attomeYs licensedtopractice law inthe State

of Utah, or attomeyslicensedto Practice lawin another jurisdictionwhich meet the rules

of the Utah State Barfor practicing law be-

fore the Utah Courts.Persons interested inthis matter may Par-ticipate Pursuant to theprocedural rules oftheBoard. The RAA(s)'and anY subsequentpleadings, maY be in-ioected at the offrceof the undersigned,and insPected onlineat the Utah Board ofOil, Gas and Mining'swebsite at lrttP://ogm.utah.gov/amr/board-temp/redesign/books'html. Pursuant to the

Americans with Dis-abilities Act, Personsrequiring auxiliarYcommunicative aids

and services to enablethem to participate inthis hearing shouldcall Julie Ann Carterat (801) 538-5277, atleast three workingdays prior to the hear-ing date.

DATED this 24thday of January,2020.

STATE OF UTAHBOARDOFOIL,GASANDMINING

Ruland J. Gill, Jr.,Chairman

/s/ Julie Ann Carter,Board Secretary

1594 West NorthTemple, Suite 1210

Salt Lake City, Utah841 t6

(801) 538-s277Published in the Ver-

nalExpressFebruary4,2020.



Vernal Express

Publication Name:Vernal Express

Publication URL:ubmedia.biz

Publication City and State:Vernal, UT

Publication County:Uintah




Notice URL:

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Notice Publish Date:Tuesday, February 04, 2020

Notice Content

NOTICE OF HEARING BEFORE THE BOARD OF OIL, GAS AND MINING DEPARTMENT OF NATURAL RESOURCES STATE OF UTAH

THE STATE OF UTAH TO ALL PERSONS INTERESTED IN THE FOLLOWING MATTERS (Docket Nos. 2020-001, and 2020-002): Notice is hereby given that the Board of Oil, Gas and Mining (the “Board”), State of Utah, will conduct a hearing on WEDNESDAY, FEBRUARY26, 2020, at 10:00 AM, or as soon thereafter as possible, in the auditorium of the Department of Natural Resources, 1594 West NorthTemple, Salt Lake City, Utah. The hearing will be streamed live on the Department of Natural Resources YouTube channel athttps://youtu.be/zn2KTjqpNOA. THE HEARING WILL BE CONDUCTED as a formal administrative adjudication in accordance with the rules of the Board as set forth in UtahAdministrative Code R641 et seq., and as provided for in Utah Code Ann. § 40-6-1 et seq., Utah Code Ann. § 40-8-1 et seq., and Utah CodeAnn. § 63G-4-101 through 601. DOCKET NO. 2020-001 CAUSE NO. 470-01: In the matter of the Request for Agency Action of FINLEY RESOURCES INC. for an ordermodifying the Board's order entered in Cause No. 270-10 to reduce the heel/toe setbacks for horizontal wells from the north/southboundaries of the established drilling units for the production of oil, gas and associated hydrocarbons from the Eocene Middle and LowerGreen River Formations and portions of the Paleocene Wasatch Transitional Formations, comprised of Sections 20, 21, 28 and 29, Township 7South, Range 20 East, SLM, Uintah County, Utah. THE PURPOSE OF THE PROCEEDING will be for the Board to receive testimony and evidence regarding a Request for Agency Action (the“RAA”) filed by Finley Resources Inc. that the Board enter an order: 1. Modifying the Board's Order entered in Cause No. 270-10 onSeptember 27, 2018 to reduce the heel/toe setbacks for horizontal wells from the North and South boundaries of the drilling unitsestablished thereunder from 330 feet to 100 feet; 2. Making such findings and orders in connection with the RAA as it deems necessary; and3. Providing for such other and further relief as may be just and equitable under the circumstances. DOCKET NO. 2020-002 CAUSE NO. 600-01: In the matter of the Request for Agency Action of CH4 ENERGY-FINLEY, LLC for an order: (I)Amending the Board's order in Docket No. 2015-020, Cause No. 139-134 and (II) Amending the Board's order in Docket No. 2018-020,Cause No. 139-158 with respect to: (1) Vertical/directional well density and (2) North-south drilling unit boundary producing intervalsetbacks, for the production of oil, gas and associated hydrocarbons from the Lower Green River and Green River-Wasatch Formations inportions of Sections 13-16, 21-27 and 34-36, Township 3 South, Range 1 West, U.S.M., in Duchesne and Uintah Counties, Utah. THE PURPOSE OF THE PROCEEDING will be for the Board to receive testimony and evidence regarding a Request for Agency Action (“RAA”)filed by CH4 Energy-Finley Utah, LLC (“CH4/Finley”), that the Board enter an order: I. Amending the Findings of Fact, Conclusions or Law andOrder in Docket No. 2015-020, Cause 139-134 dated July 21, 2015 (“Order 139-134”) with respect to: (i) the authorized density of vertical

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and/or directional wells and (ii) the 330' north-south drilling unit boundary producing interval setbacks in currently in place for short-lateralhorizontal and long-lateral horizontal wells, for the production of oil, gas and other hydrocarbons from the Lower Green River and GreenRiver-Wasatch Formations, defined for purposes of this Cause as follows (collectively, “Subject Formations”): The interval from the top of theLower Green River Formation (TGR3) to the base of the Green River-Wasatch Formation (top of Cretaceous), which base is defined as thestratigraphic equivalent of the Dual Induction Log depths lying between 16,720 feet and 16,970 feet in the Shell-Ute 1-18B5 Well, located inthe S/2NE/4, Section 18, Township 2 South, Range 5 West, U.S.M., from the following described lands (collectively, “Subject Lands”):Township 3 South, Range 1 West, U.S.M., Sections 13-16: All, Sections 21-27: All, and Sections 34-36: All. II. Amending the Findings of Fact,Conclusions or Law and Order in Docket No. 2018-020, Cause 139-158 dated February 26, 2019 (“Order 139-158”) with respect to the 330'north-south drilling unit boundary producing interval setbacks currently in place for long-lateral horizontal wells, for the production of oil, gasand other hydrocarbons from the Subject Formations on the Subject Lands. III. Upon production of sufficient evidence and presentation ofcompetent testimony at the Hearing, the Board issue an order: A. Confirming the continued validity and effectiveness of Order 139-134 andOrder 139-158, except to the extent of the amendment of the same as requested herein; B. Declaring the Subject Formations a “commonsource of supply,” as contemplated by Utah Code Ann. § 40-6-2(19); C. Amending Order 139-134 to increase the number of vertical and/ordirectional wells authorized to be drilled, completed and produced in each of the 1,280-acre drilling units established thereby to a total of 32vertical and/or directional wells, with all production from the same allocated to the existing, respective 1,280-acre drilling units pursuant toOrder 139-134, effective the date of issuance of any order of the Board issued pursuant to this RAA; D. Amending Order 139-134 and Order139-158 to decrease the north-south drilling unit boundary producing interval setbacks for short-lateral horizontal and long-lateral horizontalwells drilled, completed and produced in any 1,280-acre drilling unit (established under Order 139-134) or any 2,560-acre drilling unit(established under Order 139-158) to 100', absent an exception location approval by the Board pursuant to Utah Admin. Code Rule R649-3-3, effective the date of issuance of any order of the Board issued pursuant to this RAA; E. Requiring CH4/Finley to report the results of itsoperations on the Subject Lands to the Board in writing annually for a period of 5 years from the date of any order of the Board issuedpursuant to this RAA; F. Providing that any order of the Board issued pursuant to this RAA should expire within 5 years of the date of suchissuance (as to further development), unless otherwise extended, amended, modified and/or otherwise made permanent by the Board; G.Making such findings and orders in connection with this RAA as it deems otherwise necessary; and H. Providing for such other and furtherrelief as may be just and equitable under the circumstances. Objections to the RAA(s) must be filed with the Secretary of the Board at the address listed below no later than the 10th day of February,2020. A party must file a timely written objection or other response in order to participate as a party at the Board hearing. Failure toparticipate can result in a default judgment. Natural persons may appear and represent themselves before the Board. All otherrepresentation of parties before the Board will be by attorneys licensed to practice law in the State of Utah, or attorneys licensed to practicelaw in another jurisdiction which meet the rules of the Utah State Bar for practicing law before the Utah Courts. Persons interested in thismatter may participate pursuant to the procedural rules of the Board. The RAA(s), and any subsequent pleadings, may be inspected at theoffice of the undersigned, and inspected online at the Utah Board of Oil, Gas and Mining's website athttp://ogm.utah.gov/amr/boardtemp/redesign/books.html. Pursuant to the Americans with Disabilities Act, persons requiring auxiliarycommunicative aids and services to enable them to participate in this hearing should call Julie Ann Carter at (801) 538-5277, at least threeworking days prior to the hearing date.DATED this 24th day of January, 2020.STATE OF UTAH BOARD OF OIL, GAS AND MININGRuland J. Gill, Jr., Chairman/s/ Julie Ann Carter, Board Secretary1594 West North Temple, Suite 1210Salt Lake City, Utah 84116(801) 538-5277Published in the Vernal Express February 4, 2020.

Back


FILEDFEB I 0 2020

SEoRETARV BOARD OFOIL, GAS & MINING


STATE OF UTAH

IN THE MATTER OF THE REQUESTF'OR AGENCY ACTION OF FINLEYRESOURCES INC. FOR AN ORDERMODIFYING THE BOARD'S ORDERENTERED IN CAUSE NO. 270-rc TAREDUCE THE HEEL/TOE SETBACKSFOR HORIZONTAL WELLS FROMTHE NORTH/SOUTH BOUNDARIESOF THE ESTABLISHED DRILLINGUNITS FOR THE PRODUCTION OT'OIL, GAS AND ASSOCIATEDHYDROCARBONS FROM THEEOCENE MIDDLE AND LOWERGREEN RIVER FORMATIONS ANDPORTIONS OF THE PALEOCENEWASATCH TRANSITIONALFORMATIONS, COMPRISED OFSECTIONS 2A, 21, 29, AND 2go

TOWNSHIP 7 SOUTH, RANGE 2AEAST, SLM, UINTAH COUNTY, UTAH

PETITION FOR LEAVE TOINTERVENE

Docket No.2020-001

Cause No. 470-Al

Bainbridge Uinta, LLC ("Bainbridge"), acting by and through its attomeys, Lear &Lear,

PLLC, and pursuant to Utah Admin. Code Rule R64l-103-100, hereby respectfully petitions the

Utah Board of Oil, Gas and Mining ("Board") for an order granting leave for Bainbridge to

intervene in Petitioner Finley Resources Inc.'s ("Finley") Request for Agency Action filed on

January 9,202A in this Cause (the "RAA").

1. Bainbridge is a Texas corporation with its principal place of business for Utah

operations in Dallas, Texas.

2. Bainbridge is duly qualified to conduct business in the State of Utah and is fully

and appropriately bonded with all relevant Federal, Indian and State of Utah agencies.

3. Finley owns a significant leasehold interest in the following Uintah County, Utah

lands:

Townshio 7 South- 20 East. SLM

Section 20: AllSection 21: AllSection 28: AllSection 29: All

(collectively, the "Finley Lands").

4. The Finley Lands are spaced under the Board's Order entered in Cause No. 270-

l0 (the *270'10 Order") and long-lateral horizontal wells authorized under that Order are

subject to heel/toe setbacks of 330 feet from the North and South boundaries of the Finley Lands.

5. In the RAA, Finley seeks to reduce the above-described heel/toe setbacks from

330 feet to 100 feet from the North and South boundaries of the Finley Lands.

6. The Board has set the RAA for a formal adjudicative proceeding to be held on

Wednesday, February 26, 2020.

7. Bainbridge owns a 100% leasehold interest in the following lands, which abut and

are directly South and Southeast of the Finley Lands:

Township 7 South. Range 20 East" SLM

Section 32: S/2 NE/4, SEl4,Elz SW4, SWi4 SW/4Section 33: N/2 NW4, NE/4, SW4, El2SEl4, SW/4 SE/4, SW/4 NW/4Section 34: All

(collectively, the "Bainbridge Lands")

8. Finley sent notice of the RAA to Bainbridge, identifring Bainbridge as a party

o.whose 'legally protected interest' will or may be affected by" the RAA. See Certificate of

Service on file in this Cause.

9. Based on the technical data presented by Finley in support of the RAA,

Bainbridge believes and therefore alleges that the reduction in heel/toe setbacks requested by

Finley would result in drainage from the Bainbridge Lands without just compensation and would

violate the Board's mandate to protect correlative rights, prevent waste, and ensure maximum

resource recovery.

10. Bainbridge wishes to participate in the formal adjudicative proceedings being held

on the RAA.

11. Utah Administrative Code Rule R641-103-100 allows for intervention where "the

petitioner's legal rights or interests are substantially affected by the formal adjudicative

proceedings." Utah Admin. Code Rule R64l-103-100-110.

12. As an Owner-as that term is defined in Utah Code Ann. $40-6-2(17)--in

directly offsetting drilling and spacing units that may be subjected to drainage as a result of the

requested modifications presented in the RAA, Bainbridge believes its rights will "be

substantially affected by the formal adjudicative proceeding" on Finley's RAA. 1d.

13. Similarly, intervention is appropriate where "[t]he interests of justice and the

orderly and prompt conduct of the adjudicative proceedings will not be materially impaired by

allowing the intervention." Utah Admin. Code Rule R64l-103-100-132.

14. Here, Bainbridge's participation in the hearing on Finley's RAA "will not

materially impair[] ... the interests ofjustice" but will protect and promote the interests ofjustice

by protecting Bainbridge's (and the mineral owners under Bainbridge's lease(s)) correlative

rights, preventing waste, and promoting the greatest recovery of resources from both the Finley

and the Bainbridge Lands.

15. Furthermore, if this Petition is granted, Bainbridge will follow the rules of

practice before the Board and offer evidence and testimony at the hearing that will assist the

Board in making a formal adjudication on Finley's requests in the RAA. A proposed Order

granting the Petition is attached hereto as Exhibit l.

WHEREFORE, based on the foregoing, Bainbridge respectfully requests the Board

enter an Order:

A. Granting Bainbridge's Petition for Leave to Intervene and allowing

Bainbridge to intervene in the formal adjudicative proceedings to be held on February 26,2020

on Finley's Request for Agency Action;

B. Allowing Bainbridge to file in this Cause a Response to Request for

Agency Action, in the form attached as Exhibit2 to this Petition for Leave to lntervene;

C. Allowing Bainbridge to file in this Cause Bainbridge's Exhibits, in the

form attached as Exhibit 3 to this Petition for Leave to Intervene; and

D. Make such findings and orders in connection with this Petition for Leave

to Intervene as it deems otherwise necessary to allow Bainbridge to appear and participate while

maintaining the orderly and prompt conduct of the adjudicative proceedings.

Respectfully submitted this l0th day of February,2A2}

LSA,R & Le.c.n p.L.L.c.

ByMitchell S.

Brett BAttorneys for Bainbridge Uinta, LLC808 E. South Temple St.Salt Lake city, UT 84102Telephone: 801.538.5000mitch. maio@learlaw. combrett. wiersum@learlaw. com

Bainbridge's Address:

Bainbridge Uinta, LLC8150 N. Central Expressway, Suite 650Dallas, Texas 75206

Attention: Brian Ching

EXHIBIT 1

(Proposed Order Granting Petition to Intervene)


STATE OF UTAH

IPROPOSEDI ORDER GRANTTNGPETITION FOR LEAVE TO

INTERVENE

Docket No.2020-001

Cause No. 470-01

The Board of Oil, Gas and Mining (the "Board"), having fully considered Bainbridge

Uinta, LLC's ("Bainbridge") Petition for Leave to Intervene ("Petition") filed on February 10,

2020, and for good cause showing, orders as follows:

1. The Petition is GRANTED.

2. Objections or responses to Bainbridge's Response to Request for Agency Action

("Response") attached to the Petition as Exhibit'01", must be presented or filed at or before the

Board's regularly scheduled hearing on February 26,2020.

IN THE MATTER OF THE REQUESTFOR AGENCY ACTION OF F'INLEYRESOURCES INC. FOR AN ORDERMODIFYING THE BOARDOS ORDERENTERED IN CAUSE NO. 27O.IO TOREDUCE THE HEEL/TOE SETBACKSFOR HORIZONTAL WELLS FROMTHE NORTTVSOUTH BOUNDARIESOF THE ESTABLISHED DRILLINGUNITS FOR THE PRODUCTION OFOIL, GAS AND ASSOCIATEDHYDROCARBONS FROM THEEOCENE MIDDLE AND LOWERGREEN RIVER FORMATIONS ANDPORTIONS OF THE PALEOCENEWASATCH TRANSITIONALFORMATIONS, COMPRISED OFSECTIONS 20, 21, 29, AND 29,TOWNSHIP 7 SOUTH, RANGE 20EAST, SLM, UINTAH COUNTY, UTAH

3. The Chairman's signature on a facsimile copy of this Order shall be deemed the

equivalent of a signed original for all pu{poses.

ENTERED this _ day of 2024.

STATE OF UTAHBOARD OF OIL, GAS AND MINING

Ruland J. Gill Jr., Chairman

EXHIBIT 2(Response to Request for Agency Action)

BEFORE THE BOARD OF OTL, GAS AND MININGDEPARTMENT OF NATURAL RESOURCES

STATE OF UTAH

IN THE MATTER OF THE REQUESTFOR AGENCY ACTION OF FINLEYRESOURCES INC. FOR AN ORDERMODIFYING THE BOARD'S ORDERENTERED IN CAUSE NO. 27O.TO TOREDUCE THE HEEL/TOE SETBACKSFOR HORIZONTAL WELLS FROMTHE NORTII/SOUTH BOUNDARIESOF THE ESTABLISHED DRILLINGUNITS FOR THE PRODUCTION OFOIL, GAS AND ASSOCIATEDHYDROCARBONS FROM THEEOCENE MIDDLE AND LOWERGREEN RIVER FORMATIONS ANDPORTIONS OF THE PALEOCENEWASATCH TRANSITIONALFORMATIONS, COMPRTSED OFSECTIONS 20, 21, 29, AND 29,TOWNSHIP 7 SOUTH, RANGE 20EAST, SLM, UINTAH COUNTY, UTAH

BAINBRIDGE UINTA, LLC'SRESPONSE TO REQUEST FOR

AGENCY ACTION

Docket No.2020-001

Cause No. 470-01

Respondent Bainbridge Uinta, LLC ("Bainbridge"), acting by and through its attomeys,

Lear & Lear, PLLC, and pursuant to Utah Admin. Code Rule R64l-105-200, hereby respectfully

responds and objects to the Request for Agency Action filed by Petitioner Finley Resources Inc.

("Finley") on January 9,202A in this Cause (the "RAA") and asks the Utah Board of Oil, Gas

and Mining ("Board") to deny the request in order to protect correlative rights, prevent waste,

and promote the maximum recovery and oil and gas.

In support of this Response to Request for Agency Action (o'Response"), Bainbridge

respectfully states and represents:

1. Bainbridge is a Texas corporation with its principal place of business for Utah

operations in Dallas, Texas.

2. Bainbridge is duly qualified to conduct business in the State of Utah and is fully

and appropriately bonded with all relevant Federal, Indian and State of Utah agencies.

3. Finley owns a significant leasehold interest in the following Uintah County, Utah

lands:

Township 7 South. Ranee 20 East. SLM

Section 20: AllSection 2l: AllSection 28: AllSection 29: All

(collectively, the'6Finley Lands").

4. Pertinent to this Response, Bainbridge owns a rcX% leasehold interest in the

following Uintah County, Utah lands:

Township 7 South. Range 20 East. SLM

Section 32: S/2 NE/4, SEl4,El2 SW4, SW/4 SW/4Section 33: N/2 NW4, NE/4, SW4, Elz SEI , SWl4 SE/4, SW/4 NW/4Section 34: All

(collectively, the "Bainbridge Lands").

5. The Bainbridge Lands abut and are directly South and Southeast of the Finley

Lands. ,See Locator Map attached hereto as Exhibit 1.

6. In September 2018, the Board entered an Order in Cause No. 270-10 (the "270-10

Order"), at Finley's request, which establishes drilling units of various sizes for the production

ofoil, gas and associated hydrocarbons from the Finley Lands.

7. The 270-10 Order was entered under the "pilot program" for horizontal drilling

such that the 270-10 Order expires in or about September, 2023, absent additional action by the

Board. With pilot program spacing orders, the Board has sought to allow operators to test

different well densities and setback distances so long as operators report back to the Board with

the results from those drilling operations so that the Board can both (1) allow for horizontal

drilling, and (2) gather data from which to guide efficient spacing and promote the orderly

development of resources in the Basin. Because of the temporary and experimental nature of

pilot program spacing orders, the Board has consistently chosen to employ the most conservative

setback requirements justified by the available scientific data.

8. In the 270-lA Order, the Board determined that the orientation of the fractures in

the geologic formations underlying the Finley Lands runs in a northwest-southeast direction

(N73"W average orientation). Accordingly, the 270-n Order employs conservative, industry-

and Basin-standard heel/toe setbacks of 330' from the North and South boundaries of the Finley

Lands. The purpose of these 330' heel/toe setbacks is to offer a o'conservative protection against

potential drainage of adjacent off-drilling unit lands." RAA, J[ 6, on file in this Cause.

9. Finley has yet to drill a horizontal well on the Finley Lands under the 270-fi

Order. ,See RAA,']f 7, on file in this Cause.

10. In late 2019, Finley "gathered and analyzed data from" 3 horizontal wells

approximately 3-5 miles West-Southwest of the Finley Lands. See RAA, 'rtf 7, on file in this

Cause; Petitioner's Exhibits, Ex. H, on file in this Cause. Finley alleges that this data

demonstrates that the average fracture orientation underlying the Finley Lands is N76oW, and the

average fracture half-length is239 feet. See Petitioner's Exhibits, Ex. H, on file in this Cause.

11. Based on this data alone, Finley now seeks to amend the270-10 Order,oto reduce

the heel/toe setbacks for horizontal wells from the North and South boundaries of the drilling

units established thereunder from 330 feet to 100 feet." See RAA, pg. l, on file in this Cause.

12. Because the Bainbridge Lands abut and are directly South of the Finley Lands,

Finley correctly identified Bainbridge as a party "whose 'legally protected interests' will or may

be affected by" the RAA and, accordingly, mailed a copy of the RAA to Bainbridge on or about

January 10,2020. see certificate of service on file in this cause.

13. Bainbridge has reviewed the RAA and analyzed, the technical information Finley

submitted in support thereof.

14. Based on its review of the technical data, Bainbridge believes and therefore

alleges that the fracture orientation underlying the Finley Lands is anywhere from N50oW to

N9OoW-a significant range of orientations with significantly varying drainage patterns.

15. Bainbridge further believes and therefore alleges that an average fracture half-

length is impacted by several factors, including but not limited to the presence of sands in the

targeted formations, the porosity of the formations being targeted, the size of the frac job

completed, and the specific geology and oil and gas production history of the lands at issue. As a

result, Bainbridge believes and therefore alleges that the average fracture half-length could be

significantly longer than the 239' alleged by Finley in the RAA.

16. Bainbridge believes and therefore alleges that the technical information submitted

in support of the RAA demonstrates that amending the heel/toe setbacks as significantly as

Finely has requested-from 330 feet to 100 feet from the North and South boundaries of the

Finley Lands-would result in significant drainage from the Bainbridge Lands and from the

lands directly North of the Finley Lands.

17 ' Bainbridge believes and therefore alleges that the technical information submitted

in support of the RAA demonstrates that amending the heel/toe setbacks as requested by Finley

would also result in significant waste on the Bainbridge Lands, as it will be uneconomic to drill

any offset wells to protect against the drainage that will occur.

18. Accordingly, Bainbridge believes and therefore alleges that maintaining the 330-

foot heel/toe setbacks is the only way to prevent waste, protect correlative rights, and ensure

maximum recovery of the relevant oil and gas resources.

19. Bainbridge believes and therefore alleges that the technical data submitted by

Finley fails to justi& the amendment of the heel/toe setbacks as requested in the RAA.

20. Bainbridge believes and therefore alleges that the 270-rc Order provides an

adequate pilot spacing and development program for Finley to be able to drill and test for the

appropriate setbacks to be utilized for future development on the Finley Lands.

WHEREFORE, Bainbridge respectfully requests:

E. That the RAA be denied in its entirety and that the 270-10 Order be

maintained.

F. That the Board make such findings and orders in connection with this

Response to Request for Agency Action as it deems otherwise necessary; and

G. Providing for such other and further relief as the Board deems just and

equitable under the circumstances.

Respectfi.rlly submitted this 10th day of February,2020.

Lear & Lear, pLLc

Brett B. WiersumAttorneys for Bainbridge Uinta, LLC808 E. South Temple St.salt Lake city, uT 94102Telephone: 801.538,5000mitch.maio@learlaw. combrett. wiersum@learlaw. com

Bainbridge's Address:

Bainbridge Uinta, LLC8150 N. Central Expressway, Suite 650Dallas, Texas 75206

Attention: Brian Ching

EXHIBIT A

ERI}IBRIIIGE liltrlit

Dockel 2020-001Cause: 47041Exhibit #1

Three Rivers Location Map

EXHIBIT 3(Exhibits to Response for Request for Agency Action)

BHTNBRTTTGEDocker:2020-001Cause: 47A-O1

Table of ContentsExhibit

Exhibit

Exhibit

Exhibit

Exhibit

Exhibit

Exhibit

Exhibit

Exhibit

Exhibit

Exhibit

#1

#2

#3

#4

#5

#6

#7

#8

#9

#10

#11


Prior Operator Setback Examples

Examples of Statistical Distributions

Frac Half-Length Log Normal Distribution

Fracture Azimuth Variability

lmpact of Variability on Setback Requirements

Core Data Porosity & Permeability

40-Acre Versus Horizontal Development Other

Factors

Drainage Area Calculations

Resume of Russell Griffin

BHINERTIIGE tr i ntzrDocket: 2020-001Cause:470-A1Exhibit: #1


Bainbridge Uinra LLCThree Rivers Field

FinleySubjectLands

BHINBRTTIGEDocket:2020-001Cause: 470-01Exhibit: #2

Prior Finley Testi mony Makes a Case for a 330 ftSetback from Their Own Uncompleted Vertical WellsDrainage setback at the lease boundary should be consistent with internal setbacks

I nZ Spacing DSU 640 Acres

ff XZ Spacing IISU 128{t Acres460'Setback (E/Yrl

-' 33n'Selbac* {N/r$}

- HZ WellboresStimulation Stage

O Existing Weil

R-3

Douglas Creek

Shale Marker

8638 ft md

'dfuAurora Federal 4-21D.7-20

18

hoga Bench

t!

o

o-

Aurora 4-21D

( or

I

t o,t

(

I

Exhibit "N-2" fromDocket No. 2018-015Cause No.210-10

Uteland B

Exhibit "G" fromDocket No. 2018-015Cause No.210-10

Perforated lnterval indicated in RH0

BHINB]lITIGE Lr l r-r tzrDocket:2020-001Cause: 470-01Exhibit: #3

Examples of statistical DistributionsAll four examples have the same average, but the systems being described are significantly different

La Standard Deviation Small Standard DeviationaLo

cL

.aoGELoz

I

(g'6aoo

oL

.of0LUI

i56Eozo,o

0 50 100 050Small Standard DeviationLa Standard Deviation

100

50o 50 100 0

R.A.Olea, 2008, Basic statistical concepts and methods for earth scientists, USGS, Open-File Report 200g-1017https://pubs.usgs.gov/of/200811 01 7/ofr200B-1 01 7 rev.pdf

100

BHINERIDtlE interLI

Docker: 2020-001Cause: 470-01Exhibit: #4

Use of "Average" VaGeologic Systems T

lues Does Not Accurately Portrayhat Have a Log Normal Distribution

(J

o(:rotJ-

Frac Half-Length

BlIINBRIDGE LrrnterDocket: 2020-001Cause: 470-01Exhibit: #5

Fracture Azimuth Variabili ty in the Eastern Uinta BasinAurora State 6-32-7-20

?'Rrxr*cvdt

{F nrl Du

{

I

rhexnS l1

t',

I

ibjectsu

-NgOW

I

lands

,

*I

\(

1l1"ton *

&)" Ournr'

muirnrm llorirofill rD\Srt Srrrs: i't I t.r!-s 7 0 F i 1 1 {i-,.igt. - l

lfi nirnum Horizontl ln-Situ srnr3s: I; 3 l} f - 9 S ;!1 ; 0 t, t. - 7 I n' :

Primary Road

Gilsonite vein (fromVerbeek and Grout, 1993)

+---*--ri--Syncline, showing direction of plunge

----------'3000Oil shale depth contours (infeet, from Crawford andPruitt, 1963)

I Gitsonite processing plant site

EXPLANATION

Town

Crescent Point Microseismic

I*

I

I

i

I

!I

*-*: ' -:r

I

!*

I\ \* s,"I

Modified from Tripp, Utah Geologic Survey, Girsonite - An Unusual utah Resource

B]ITNBRINGE Lr r nterDocker: 2020-001Cause: 470-A1Exhibit: #6

lmpact of Statistical VariabiliAzimuth on Drainage Area aGiven:

oMeasured Fracture Azimuth Rangeo Frac Half-Length Distributions Tend

* frac stages with an effective half-len

ty of Half-Length andnd Setback Requirements

-44 Deg Wide (from N50W ro N90W)Toward Log Normal with a Long Tailgth that are 2x and 3x greater than the

averaqe would be expected

Wellbore

FshEnC.f t[nfrm

Wellbore

4€0' ,i

Setback requirementsare proportional to thestatistical distribution of frachalf-length measurements,which are unavailable forevaluation

i00'

Drainage area withexpected geologicvariability

t+

I@stN

Avg FractureOrientation

N76W

Exhibit "l" fromDocket No. 2O20-01Cause No. 470-01

I 148',

lease line-

B[IINBRIOGE LrlnterDocket:2020-001Cause: 470-01Exhibit: #7

Core Data I ndicates that the U nconventional LowerGreen River Formation includes Conventional Beds

Draining Significantry Larger AreasPERMEABILITY AIID FLUID SATURATIONS VERSUS POROSITY

vacuum oven Dried at 190'F Net confining stress: As Noted

Capable ofrrthancnml

Bill Barrett CorporationAurora State 3-32D-7-20 WellAurora Field

Uintah County, UtahFile No.- CO-75S43

Date:6i19i2015

6co{-,cocooc:)

= 0.0151eP

o

oo

o

Ot

oO

ooo

o(

10

0.1

0.01

6cococo(J

(/)

s€

=

F

0 2 4Porosity at NCS. percent

6 I0.001

10

BHINBRIIrGE Lr i rt tzrDocket: 2020-001Cause: 470-01Exhibit: #8

Language of the Request Does Not Prohibit 100 ft Setback in High perm Rock.

+ 40acrespacing .q

Full 4}-Acre Vertical DevelI Douglas Creek Not Possi

opment of the Garden Gulchble Due to Pelican Lake

Map showing 4O-acre vertical well locations withinthe boundaries of Pelican Lake. The Garden Gulchand Douglas Creek intervals will require horizontalwell development to access these reserves.

BETrcH

GARD€I'OOIJGiIIS CR€EI

ETAQ(sfiAIT

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The figure above illustrates the drilling pattem needed to effectively drain thecombination of continuous" yet tight reservoirs as well as the discontinuoussand bodies deposited in the Pelican Lake area.

XXx.,,x

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xx

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Aurora 4-21D

6

Exhibit "K" fromDocket No. 2018-015Cause No.210-10

BSIINBRIIlGE Lr l r.l tzrDocket:2020-001Cause: 470-A1Exhibit: #9

orher Factors That lnfluence Frac Half-Length & Azimuth"Fracture half lengths and heights vary depending on frac job size andtarget formation" Exhibit E-2, Docket # ZOIB-OZO, Cause # 1 39-159

Frac Length:o Job design, including lbs # of sand, volume of fluid, viscosity & pump rateo variability in rock mechanics related to lithologyo Fracs move toward path of least resistance, wtricn can be related to:

- PorosilY' higher perm, existing fractures, lower pressure areas, etc.oVariability in rock mechanics related to depth & confining pressure

Frac Azimuth:o Depletion in offset wells resulting in pressure sinks & stress realignmento Conjugate fracture sets in naturil faults and fractures

BHINBRItrGE Lr I t-rtaDocket: 2020-001Cause: 470-01Exhibit: #10

Drainage Area Calculationslf the Stimulated Rock Volume (SRV) Half-Length of Z3g ft is correct, thecalculated drainage area of each frac stage is less than 'l -acre

Area of an Ellipse:

0.86 acres = (3.14 * 239 ft . 50 ft) I 43,s60 Ftz

A=IGqb

460'DahFtillS

lrtrn

Given: With the exception of some frictionlosses at the toe of the well, there are nosignificant, intrinsic differences between afrac stage in a horizontal well and a fracstage in a vertical well

lf drainage for each Stage / SRV Ellipse isless than 1 acre in a horizontal well, theequivalent spacing calculation for a verticalwell density is 640+ wells per section

AW FrastureOrientatisr

N76W

Exhibit "l" fromDocket No. 2020-01Cause No. 470-01

t(Usseil \rftliln435-823-4965

Box 103 Roosevelt, UtahDocket:2020-001Cause: 470-01Exhibit: #11

Education / CertificationsCertified Utah professional Geologist, # 555659$2250p-.S, HVdro/Engineering Geology, USU, Logan, Utah 1990MBA. University of phoenix, ltrtay ZOOOOther Courses:- Fundamenot:,gl

9]t-:nO Gas property Acquisition and Finance (peice)- Project Risk' uncertainty and Decision anjrvsis ior d-""nlioi'"i'"nd unconventionalResources (Rose and Associates)- Principles of Se-quence Shatigraphy (O. Catuneaunu)- Apptied Subsurface Geologicat Mapping Methods (#A)- Basic petroleum Economics (petrodtitti)- Basic Reservoir Engineering (OGCI)- Basic Geophysics (pehoSkills)- Basic Well Log lnterpretation (OGCI)- Sequence Stratigraphy (OGCI)- Cased Hole and production Log Evaluation (SpE)- Visual Basic for Excel programming.

Experiencecongultino petroreum Georoqist. XRG consulting, september 201g to present- Conducted Detailed Mapping of the uinta Balin dreen River Formation with a focus on theinteraction betrryeen conrreniion a I a nd U nconventiona I reservo ir beds- Calculated oil-in-Place and drainage radius impacts for various fields in the Uinta Basin- Managed Geofgslc.Ssnects of drilling program with a focus on efficiency & hazard mitigation- Directed interdisciplinary.data.integration!ro1s, utitizing d;io!i;, Reservoir, Dri1ing,"Completions and Production data io optimize nero oeueftfm"nt-"no operations- Developed Spotfire.based screening tools to enable rapid assei anatysis for oil & Gas fieldsacross the State of Utah

Geolooic OoerationsAdvisor. eEp, April 2016 to September 2018- coordinated, compiled and edited annual co.rporate 3P Reportdirecting and integrating workfrom a murridisciprinary Gam, incruding; l-ano,'Geoiosi, ;iRi.;r"ir Engineering- Directed efforts to share best-practicei across the virious Divisions within eEpDeveloped Spotfire tools to facilitate data mining of WelMew for rse in drilling hazardidentification and forecasting of Drilling and Coripletioni int"r""tion" in the permian Basin- Trained new hire geologists in field ops and geologic software- Areas worked: Ark-La-Tex, Greater Green River, iinedare, permian, uinta, wilriston

Manaqer Geoscienqg-uinla Fasin Division. oER Aprir 201 2 t o April 201 6- Managed up to 8 geologists for the Uinta Basin team, also ;;rkJ as intern Manager ofGeoscience for the Pinedale / Greater Green River Basin team during restructuring- Coordinated develoPment and driling activities with Engineering ano Reguratory nianagers- utilized cost tracking to identify and implement continuius imprivement processes- Mentored new georogists, herping them identify and mitigate sritt Jerciencies- Led geology field trips for management and other ofii"";;;;;i- Areas worked: Greater Green River, pinedare, paradox, piceance, uinta

Manaqer Geoscience. Wexpro, April 2010 to April 20,12- Managed 10 employees during company restructuring- Facilitated transition of software systemi and other drp"ny assets during restructuring- supervised fierd studies to optimize welr spacing in mature properties- lmplemented Six Sigma process / tools to measure and improve well cost and wellperformance

Ilussell r\trllnn (Pg Z,

435-823-4965Docket:2020-001Cause: 470-A1Exhibit: #11

Mentored new geologists and engineersContinued support of $100 million drilling programAreas worked: Greater Green River, pinedale, Uinta

Pslroleum Geoloqist. Uinta Basin / Greater Red wash Area, utah, April 1994 to 2010(chevron 199+1999, shenandoah Energy 20002001, euestar zaol-2010)- Developed detailed stratigraphic and structural model of the Northeastern portion of Eocene

Lake Uinta and managed subsequent recompletion program and vertical/ horizontaldrilling.- Executed development program of Wasatch & Mesaverde fUvial system, including 2o-acredownspacing feasibility.

- Managed daily operations on a S to 7 rig drilling program.- Worked with shalegas team to test and develop Mancos Shale play- Conductedgeologicinvestigations, including:

- Welllog analysis- Reservoir mapping

Develop volumetrii modelsDevelop and drill prospectsCollect and evaluate geochemical dataldentify leases for acquisitionMaintenance of geologic database

- Selected and trained summer geology interns / mentor for new hire geologists- Areas worked: Rangely, Uinta Basin

Qraduale Teqching Assistant Utah State University, Logan, Utah, January 1994 to March 1994.- lnstructed Geology 111 and Geology 101 Labs

Hydrgqegloqist. BIOMEST, lnc., Logan, Utah, June 1990 to May 1993- Conducled Phase I and Phase ll realestate audits- lreryred Geology Technical Reports for Environmental lmpact statements- Conducted Ge-ologic lnvestigations and Prepared Documentation Relative to LeakingUnderground Storage Tanks (LUST's)

Ph. Q Resea.rQh Field Assistant for Suzanne Janacke, University of Utah, June - August 1 9g9- Assisted in the Mapping of Geologic Units and Faults in the Lost River Range, iOano

GeoTech, North American Exploration, Kaysville, Utah, September 19g9- staked claims and collected soil samples for mining companies in Nevada

sum$eJ Field GeoTech. Placer Dome / McDermitt Mine, McDermitt, Nevada, 19gg- Staked Claims, Collected Soil Samples, Conducted Geophysical Surveys, Logged WellCuttings

Box 103 Rooseveh, Utah

Skills & Abilities- Software proficiencies: GeoGraphix/ PRIZM, Petra, Spotfire, WellView, Microsoft Office, Access,

VBA, QGIS, Canvas GIS- Work well in diverse team environments- Spanish language proficiency

FILEDFEB I 0 202A

Bainbridge Uinta LLC'T,lT13"e',ffffiuo'8150 N central Expres$way, suite 6s0

Dallas, Texas 25206

Bainbridge Response to Reguest for Agency ActionDocket No zoz0-001, cause No . 4lo-b1

$tate of UtahDivision of Oil, Gas and Mining

Board Hearing - February 26, ZOZO


Docket: 2020-001Cause: 470-01BHINBRItrtrE lrrntet

Table of Contents

Exhibit #1

Exhibit #2

Exhibit #3

Exhibit #4

Exhibit #5

Exhiblt #6

Exhibit #7

Exhibit #B

Exhibit #9

Exhiblt #10


Prior Operator Setback Examples

Examples of Statistical Distributions

Frac Half-Length Log Normal Distribution

Fracture Azimuth Variability

lmpact of Variability on Setback Requirements

Core Data Porosity & Permeability

40-Acre Vertical Versus Horlzontal Development

Other Factors

Drainage Area Calculations

BHIHBRIOlIE Lrll"rttrDocket: 2020-001Cause: 470-01Exhibit: #1


RiversThreei

I

tI

Bbinbridge Uinta

\

\

!

BHT HBRIIIGE r-rtaLtl

Docket: 2020-001Cause: 470-01Exhibit: #2

Prior Finley Testimony Makes a Case for a 330 ftSetback from Their Own Uncompleted Vertical WellsDrainage setback at the lease boundary should be consistent with internal setbacks

S fn Spacing D€U S4O Acres

fl FSf Specing O€U 1A{ Acr€git60'Sadbrc* (Enffl

- S30'$ftbeck (t{6}* HZ lYellboraE

Sllnrult$ofl Stagoi Existing Wall

4F- r*

Auror.a Federal 4-21D7.ttl

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Douglas Creek

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3

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Aurora 4-21D

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Exhibit'N-?" fronrDocket No. 201&0'15Cause No. 210-10

Exhibit "G" fromDocket No.2018-015Cause No- 210-10

Ferforated lnterva! indicated in RED

EHINERIITGE Ltrr"rttr


Examples of $tatistical DistributionsAll four examples have the same aveftlge, but the systems being described are significantly different

Standard Deviation Small Standard Deviation.ncoJTIL

wiIEELozt

"qaltv,=(Ilo

4nc.gfo{,i5([EoztJ,oJ

0 50 100 0 50

Small $tandard DeviationStandard Deviation

50 100 0 50

R.A.Olea, 2008, Basic statistical concepts and methods for earth scientists, USGS, Open-File Report 200S-1017https:l/pubs. usgs.oov/of/2008i1 01 7/ofr2008-1 01 7_rev.pdf

100

0 100

BHINBRTIltrE Ll l ntltDocket 2020-001Cause: 470-01Exhibit: #4

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Use of "Average" Values Does Not Accurately PortrayGeologic Systems That Have a Log Normal Distribution

rac Half-Length

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BHIHERITIGE Lr r r'l tra


Fracture Azimuth Variability in the Eastern Uinta BasinAurora State 6-3?-7-lO

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subjectlands

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llinirnum Horirotrlll,n $ril $rru:r: ii :Jc F'$ rl f |-;' : ;r -1,ir' "l' l'l

EXPISNATION

Prinary Road

Gileonite vein (fromVe6eek and Grut, 199,j)

.+*-*-i" -.-$yncline, shodng direction of plunge

--------.*-3d00Oil ehale depth conlours (infeet, from Crarvfqd andPruitt, 1963)

I Gitsonite proceceing phnt eiie

I rown

* Crescent Poinl Microseismic

l[*ton

\ \ Ournl'

\\r ls4Modified from Tripp, Utah Geologic Survey, Gilsonite - An Unusual Utah Resource

BHT NBRITIGE LrlntaDocket: 2A2O-A01Cause: 470-01Exhibit: #6

Setback requirementsare proportional to thestatistical distribution of frachalf-len gth measurements,which are unavailable forevaluation

lmpact of $tatistical Variability of Half-Length andAzimuth on Drainage Area and Setback RequirementsGiven:

oMeasured Fracture Azimuth Range -40 Deg Wide (from N50W to N90W)o Frac Half-Length Distributions Tend Toward Log Normal with a Long Tail

- frac stages with an effective half-length that are 2x and 3x greater than theaverage would be expected

Wellbore

"{

_-__--*lfte fircnC slt{I

ftdhora +@- *Ety --r,l

Drainage area \ryithexpected geologicvariability

{$s

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It

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il?6W

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Exhibit "1" fromDocket No. 202&01Cause No.470-01

148',

lease line-

BHI HE1lTTIGE Lr 1r"I l- a:l


Core Data lndicates that the Unconventional LowerGreen River Formation includes Conventional BedsCapable of Draining Significantly Larger Areasirk**nBrll Barrefi CorporahonAurora $late 3,32 D-7-20 trVefl

Aurora Field

PERMEABILITY AND FLI,JID SATURATIOI{S VERSUS POROSITYVacuunr Oven Dried at 180'F Net Conlining Stress. As l.Ioted

Uintah Countv" UtahFile I'lo, C0-75543

Dale, S/19/2015

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BHINBRTNGE Lr r r-r tra


Full 40-Acre Vertical Development of the Garden GulchI Douglas Creek Not Possible Due to Pelican Lake

Language of the Request Does Not Prohibit 100 ft $etback in High Perm Rock.

o€t{cHMTIIOGA}IY

# 4oacrsspacing -.."@

The figure above illustrates the drilling pattern needed to effectively drain thecombination of csntinuous, yet tight reservoirs as well as the discontinuoussand bodles deposited in the Pelican Lake area-

Map showing 40-acre verticalwell locations wilhinthe boundaries of Pelican l-ake. The Garden Gulchand Douglas Creek intervals will require horlzontalwell development to access these reserves.

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Exhibit "K" fromD0cket No.201&015Cause No. 210-10

BfIIHBRIDGE Lrlr-rtar


Other Factors That lnfluence Frac Half-Length & Azimuth"Fracture half lengths and heights vary depending on frac job size andtarget formation" Exhibit E-2, Docket # 2018-020, cause # 139-158

Frac Length:oJob design, including lbs# of sand, volume of fluid, viscosity & pump rateoVariability in rock mechanics related to lithologyo Fracs move toward path of least resistance, which can be related to:

- Porosity, higher perm, existing fractures, lower pressure areas, etc.oVariability in rock mechanics related to depth & confining pressure

Frac Azimuth:

" Depletion in offset wells resulting in pressure sinks & stress realignmentoConjugate fracture sets in natural faults and fractures

BIIIHBRIItGE Lr r r-r taDocket: 2020-001Cause: 470-01Exhibit: #1O

Drainage Area Calculationslf the Stimulated Rock Volume (SRV) Half-Length of 239 ft is correct, thecalculated drainage area of each frac stage is less than 1-acre

Area of an Ellipse:

0.86 acres = (3"14 * 239 ft * 50 ft) / 43,560 ftz

fi= nab

or*'"*lBrffirdatHf

tt$onr

Given: With the exception of some frictionlosses at the toe of the well, there are nosignificant, intrinsic differences between afrac stage in a horizontal well and a fracstage in a vertical well

lf drainage for each Stage / SRV Ellipse isless than 1 acre in a horizontal well, theequivalent spacing calculation for a verticalwell density is 640+ wells per section

41ry FreclurcOrtcntstfuon

r{76W

sml3*+

I

,100'

Exhibit'l'fomDocket No. 202G01Cause No.470{1

Russell Griffin

43$S23-4S65 Box 103 Rooser,'€lt, Utsh

Education / CeriificationsCertified Utah Professional Geologist, # 555659$22$08.$. Hydro/Engineering Geology, USU, Logan, tfiah i990MBA. University of Phoenix, May 2006Olher Courses:- Fundamentals sf Oil and Gas Property Acquisition and Finance (Peice)- Proiect Ris*, Uncenainty and Decision Analysis for Csnventional and Unconv{entional

Resources {Rose and Associates}. Principle$ of Sequence Stratigraphy {O. Catuneaunu}- Applied Subsurlace Geobgical Mapping Methods {SCAi- Basic Petrsleurn Economics (FelroSkills)" Basic Re$ervoir Engineering {OGCI)- Basic Geophysics {PelroSkills}- Ba$rcWell Log lnterprelatnn (OGCI)- $equence Straligraphy (OGCI)- Cased Hole and Produclion Log Evaluation (SPE)- Msual $asic for Excel Frogramming.

ExperienceCqnsultinq Fetroleum Geoloqigt, XRG Consulling, $eptember 2018 to Preeent- Conducted Det€iled Mapping of lhe Uinta Basin Green River Formation tviih a f6cus on the

interaclion between Conwntional and Unconventional reservoir bed$- Calc{lated Oil-in-Phce and drainage radius imFacts for various lields in the Uinta Sasin- Managed Geologic aspects sf drilling program with a focus on efficbncy & hazard miligation- Djrected interdisciplinary data integration efforts. ulilizing Geologic, Reserwir, Drilling.

Compbtions and Productbn d6ta io op{imize field darelopment and operalions- Developed $potfire based screening tool$ to enable rapid asset analysis for Oil & Gas lelds

across tte State of Utah

Geoloqic Ooerations Advisor, OEP, April 2016 to $eptember 101$- Coordinated, compiled and ediled annual Corporate 3P Report directing and integrating vrod{

from a multidisciplinary leam, including; Land, Geobgy, and Reservoir Enginerring- Directed efiort$ to snare b€$t-praclices across the various D*visions within QEP- Deiaeloped $potfire tools to facililate data mining of WelMeui for rse in drilling harard

illenlification and forecasting of Drilling and Cornpletions interactions in tha Permian Fasin- Trained ne'rv hire geologbts in field ops and geohgic software- Areas wsrked: Ark-La-Tex, Greater Green River Pinedale, Permian, Uinta" Williston

Manaqer Geos{ienc$Uinld Basin Division. OEP April 2012 to April 2016- Managed up to 8 geologisF for the Uinta Basin t€am, al$o wo{ked as intern Manager of

Geosclence for lhe Pinedale / Greater Green River Basin team during restnrcturing- Caordinated development and driling adivities with Engineering and Regulatory {nanagers- Utilized cost tracking to identifo and implemenl continuous irnprovrsment prace+ses- lflenlored ner+ geologis,ts, helping thern identify and mitigate shill deficienciee- Led geology field trips for management and other ofiim pensonnel- Areas Worked: Greater Green River, Pinedale, paradox, Fipeance, t.tinta

Manaq€r Geas4ience, Wexpro, April 2010 to April 2012- Managed 10 employees during company rEstructunng- Facilitated transition of soflware systems and olher company assets during reslrucludng* Supervised field studies to optimiee *ell spacing in mature properties- lrnpteffented Six Sigma process / tools to measure and improve well cost and wEll

p€rformanoe


Russell Griffin (pg 2)

43$823496S Box 103 Roosev€tt, UtahMentored new geologists and engineersContinued support af $100 million drilling programAreas worked: Greater Green Ri\rer, Pinedab, Uinta

Petroleum Geologist, Uinta Basin / Greater Red Wash Are4 Utah, April 1994 to 2010(Chewon 19$4-199$, Shenandoah Energy 200S2001, Questar 2001-2010)- Developed detailed straligraphic and $tructural model of the Northeastem porlion of Eocene

Lake Uinte and managed subsequent reoompletion program and vertical / horizontal drilling"- Ex€cuted developm€nt program of Wasatch & Mesaverde luviat s],Etem, including Z$acre

downspacing feasibility.- Managed daily operations on a 5 to 7 rig drilling program.- Worked with shalsgas team to test and develop Mancos Shale play- Conducted geologicinvestigations, including:

- Well log analysis- Reserwir mapping

Develop volumetric modelsDevelop and drill prosp€ctsCollect and evaluate geochemical dataldentify leases for acquisitionMaint6nanoe of geologic database

- Sel€cted and trained summer geology interns / mentor for new hire geologists- Areas worked: Rangely, Uinta Basin

Graduate Teachinq As.sistar-1-1, Utah State Uiliversity, Logan, Utah, January '1994 to March 1994.- lnstructed Geology 111 and Geology 101 Labs

Hvdrogeologist. BIOfWEST. lnc.. Logan, Utah, June 1990 to May 1993- Conducted Phase I and Phase ll real estate audils- Prepared Geology Technical Reports fgr Environmenl,al lmpact Statemenls- Conducted Geologic hvestigations and Prepared Documentation Relative to Leaking

Underground Storage Tanks (LUST'S)

Ph.D Research Fbld Assistant for Suzanne Janacke, University of Utah, June - August lggg- Assisted in the Mapping of Geologic Units and Faults in the Lost River Range, ldaho

GeoTech, l,lorth American Exploration, Kaysville, Utah, September 1989- Staked Claims and Collected Soil Samples for mining companies in Nevada

Summer Field GeoTech, Placer Dome / McDernitt Mine" McDennitt. Nevada, 1988- Staked Claims, Collected Soil Sarnples. Conducted Geophysical Surveys, Logged Well

Cuttings

Skills & Abilities- Software proficiencies: GeoGraphixl PRIZM, Petra, Spotfire, WellView, Microsoft Office, Access,

VBA, QGIS, Canvas Gl$- Work well in diverse team environment$- Spanish language proficiency



STATE OF UTAH

FILEDFEB I 0 2020

SEoRETARY BOARD OFOIL, GAS & MINING

ACKNOWLEDGMENT OFSERVICE AND WAIVER

IN THE MATTER OF THE REQUEST FOR AGENCYACTION OF FINLEY RESOURCES INC. FOR ANORDER MODTFYING THE BOARD'S ORDER

ENTERED IN CAUSE NO. 270-IO TO REDUCE THE

HEEL/TOE SETBACKS FOR HORIZONTAL WELLS

FROM THE NORTFVSOUTH BOTINDARIES OF

THE ESTABLISHED DRILLING LINITS FOR THE


HYDROCARBONS FROM THE EOCENE MIDDLEAND LOWER GREEN RIVER FORMATIONS ANDPORTIONS OF THE PALEOCENE WASATCHTRANSITIONAL FORMATIONS, COMPRISED OF

SECTIONS 20, 21, 28 AND 29, TOWNSFIIP 7

SOUTH, RANGE 20 EAST, SLM, UINTAHCOLTNTY, UTAH

Docket No. 2020-001

Cause No. 470-01

WEM Uintah, LLC,3319 N. University Ave., Suite 200, Provo, Utah 84604, as

assignee of Robert L. Bayless, Producer LLC of long lateral horizontal wellbore rights in

the lands at issue in this Cause, hereby: (l) acknowledges receipt of a copy of the Request

for Agency Action dated and filed in this Cause on January 9,2020, from Finley Resources

Inc.; and (2) waives any challenge to the timeliness of such service upon it.

Dated this l S-day of January,2020.

R. ll as Manager of WasatchEnergy Management, LLC; Wasatch EnergyManagement, LLC as Manager of WEM Uintah,LLC

1075.22

By

FILEDFEB 20 2020

SEoRETARY BOARD OFOIL, GAS & MINING


STATE OF UTAH





270-IO TO REDUCE TTIE HEEL/TOE

SETBACKS FOR HORIZONTAL WELLS FROM

TTM NORTFVSOUTH BOI.INDARIES OF T'FTE

ESTABLISIIED DNLLTNG UNITS FOR THE

PRODUCTION OF OIL, GAS ANDASSOCIATED FIYDROCARBONS FROM TTIE


RTVER FORMATIONS AND PORTTONS OF

T}M PALEOCENE WASATCH TRANSITIONAL

FORMATIONS, COMPRISED OF SECTIONS 20,


20 EAST, SLM, UINTAH COIJNTY, UTAH

MOTION F'OR CONTINUANCE

Docket No. 2020-001

Cause No. 470-01

Pursuant to Utah Admin. Code Rule R641-105-300, Finley Resources Inc.

("Finley"), acting by and through its attorneys, MacDonald & Miller Mineral Legal

Services, PLLC, hereby respectfully requests the Board of Oil, Gas and Mining ("the

Board") to continue the hearing on this Cause from February 26,2020 to March 25,2020

On February 10,2020, Bainbridge Uinta, LLC ("Bainbridge") filed a Response to

Finley's Request for Agency Action in this Cause objecting to the requested reduced

heel/toe setbacks. In addition, on February 14,2020,the Division of Oil, Gas and Mining

(the "Division"), though its counsel, informally expressed concerns to Finley as well.

Discussions between the parties to resolve the concerns have been on-going and the

requested continuance will allow additional time for the negotiations to continue. Mitchell

S. Maio, Esq., counsel of record for Bainbridge, and Thomas Kessinger, Esq., counsel for

the Division, have been advised of Finley's intent to file this Motion and both have

authorized the undersigned to represent to the Board that neither of their clients objects to

a continuance. Presuming the Board grants this Motion, a form of proposed order is

submitted herewith.

Respectfully submitted this 20th day of February,Z0Z0.

MacDONALD & MILLERLEGAL SERVICESO PLLC

rederick Esq. '


1075.22

2


STATE OF UTAH

IN THE MATTER OF TTIE REQUEST FOR




270.10 TO REDUCE THE IMEL/TOESETBACKS FOR HORIZONTAL WELLS FROM

TIIE NORTFI/SOUTH BOLINDARIES OF TI{EESTABLISI{ED DRILLING UNITS FOR THE

PRODUCTION OF OIL, GAS ANDASSOCIATED HYDROCARBONS FROM TFTE


RTVER FORMATIONS AND PORTIONS OF

TFIE PALEOCENE WASATCH TRANSITIONAL



20 EAST, SLM, UINTAH COI,INTY, UTAH

ORDER GRANTINGCONTINUANCE

Docket No. 2020-001

Cause No. 470-01

The Board of Oil, Gas and Mining, having fully considered Finley Resources Inc.'s Motion

for Continuance filed on February 20,2020, and finding good cause therefor, hereby grants said

Motion and continues the hearing on this Cause from February 26,2020 to March 25,2020.

For all pu{poses, the Chairman's signature on an electronic version or a faxed copy of this

Order shall be deemed the equivalent of a signed original.

DATED this _ day of February,202}

STATE OF UTAHBOARD OF',' OIL, GAS AND MINING

By:Ruland J. Gill, Jr., Chairman


The undersigned certifies that he caused a true and correct copies of the foregoingMotion for Continuance and Proposed Order Granting Continuance to be tnailed, properlyaddressed and postage pre-paid, and emailed where email aclclresses have been provided,to each of the following parties this 20th day of February, 2020:

Mitchell S. Maio, Esq.

Brett B. Wiersum, Esq.L,ear & Lear, PLLCAttorneys for Bainbridge LJinta, LL,C808 E. South Temple St.

Salt Lake City, UT 84102Ernail : rn [email protected]

ancl

brett.wiers um@Jggrlaw. cplU

Finley Production Co., [,.PAttn: Scott Pitzer1308 Lake Street

5128 AFort W

tlnitedBureau ofOfficeAttn: MattManager440 W. 200 South, Suite 500Salt Lake City, UT 84101-1345Ernail : mjanowiak@bhn. gov

WEM Uintah, LLCAttn: Daniel R. Gunnell,)

3319 N. Urriversity Ave., Suite 200Provo, UT 84604

tJnited States I)epartment of InteriorBureau of Land Management - VernalField OfficeAttn: Jerry Kenczka, Asst. Field Manager

- Lands and Minerals170 S. 500 EastVernal, UT 84078-2727

blm.

LLC

J

Ernail

M. MacDonald, Esq

FILEDFEB 2 { 202$

SEcRFTARY BOARD OFOIL, GAS & MINING

BEFORE THE BOARD OF OIL, GAS AND MININGDEPARTMENT OF' NATURAL RESOURCES

STATE OF UTAH



INC. FOR AN ORDER MODIFYTNG THEBOARD'S ORDER ENTERED IN CAUSE NO.

270-IO TO REDUCE THE HEEL/TOESETBACKS FOR HORIZONTAL WELLS FROM

THE NORTH/SOUTH BOUNDAzuES OF THEESTABLISHED DRILLING UNITS FOR THEPRODUCTION OF OIL, GAS ANDASSOCIATED HYDROCARBONS FROM THEEOCENE MIDDLE AND LOWER GREEN



21,28 AND 29, TOWNSHIP 7 SOUTH, RANGE20 EAST, SLM, UINTAH COUNTY, UTAH

ORDER GRANTINGCONTINUANCE

Docket No. 2020-001

Cause No. 470-01


for Continuance filed on February 20,2020, and finding good cause therefor, hereby grants said

Motion and continues the hearing on this Cause from February 26,2020 to March 25,2020.

For all pu{poses, the Chairman's signature on an electronic version or a faxed copy of this


DATED this 24th day of February,2l2}

STATE OF UTAHBOARD OIL, GAS AND MINING

(

By:J. GiIl, J


I hereby certify that on this 25th day of February,2l2},I caused a true and correct copy of

the foregoing ORDER GRANTING CONTINUANCE for Docket No. 2020-001, Cause No.

470-0I, to be mailed via E-mail, or First Class Mail with postage prepaid, to the following:

MacDonald & MillerMineral Legal Services, PLLCFrederick M. MacDonald, Esq.7090 S. Union Park Avenue, Suite 400Salt Lake City, UT 84047Email : [email protected] for Petitioner Finley Resources Inc.

Petitioner's Address:Finley Resources Inc.Attention: Scott Pitzer, LandmanP.O. Box 2200Fort Worth,TX76lT3Email : SPitzer@fi nleyresources. com

Gordon RoweThomas KessingerUtah Attomey General's OfficeNatural Resources Division1594 W. North Temple, Suite 300Salt Lake City, UT 84116Email: growe@agutah. gov

tkessinger@ agutah. govAssistant Attorneys General repres entingthe Utah Division of Oil, Gas and Mining

Finley Production Co., L.PAttn: Scott Pitzer1308 Lake StreetFort Worth,TX76102

CH4 Energy-Finley Utah, LLCAttn: Rodney Black5128 Apache Plume Rd.Fort Worth,TX76I07

Mike BegleyUtah Attomey General's OfficeNatural Resources Division1594 W. North Temple, Suite 300Salt Lake City, UT 84116Email: mbegley@agutah. govAssistant Attorney General's Officerepresenting the Utah Board of Oil, Gasand Mining


Robert L. Bayless, Producer LLCAttn: Cranford Newell, Jr.621 lTth Street, Suite 2300Denver, CO 80292

2

Bainbridge Uinta, LLC8150 N. Central Expressway, Suite 650Dallas, TX75206

United States Department of InteriorBureau of Land ManagementUtah State OfficeAttn: Matt Janowiak, Minerals Support Mgr440 W. 200 South, Suite 500Salt Lake City, UT 84101-1345

United States Department of InteriorBureau of Land ManagementVernal Field OfficeAttn: Jeny Kenczka, Asst. Field Manager -Lands and Minerals170 S. 500 EastVernal, UT 84078-2727

WEM Uintah, LLCAttn: Daniel; R. Gunnell3319 N. University Ave., Suite 200Provo, UT 84604

J

BEFORE THE BOARD OX'OIL, GAS AND MININGDEPARTMENT OF NATURAL RESOURCES

STATE OF UTAI{

FILEDMAR 0 5 2020

SEGRFTARY BOARD OFOIL, GAS & MINING

NOTICE OF CHANGE OF COUNSALCONTACT INFORMATION


AGENCY ACTION OF FINLEY RESOIIRCES



270-10 TO REDUCE TFIE HEEL/TOE

SETBACKS FORHORZONTAL WELLS FROM

TIIE NORTH/SOUTH BOUNDARIES OF THE

ESTABLISI{ED DRILLING UNITS FOR THE

PRODUCTION OF OIL, GAS ANDASSOCIATED HYDROCARBONS FROM THE



TT{E PALEOCENE WASATCH TRANSITIONALFORMATIONS, COMPRISED OF SECTIONS 20,

2I,28 AND 29, TOWNSHIP 7 SOUTH, RANGE

20 EAST, SLM, UINTAHCOTINTY, UTAH

Docket No. 2020-001

Cause No. 470-01

Frederick M. MacDonald, counsel of record for Petitioner Finley Resources Inc.

(o'Finley"), hereby respectfully provides notice of his change of law firm, the substitution

and entry of said new law firm as counsel for Finley in this Cause, and his new contact

information as follows :

Frederick M. MacDonald, Esq.

MacDonald Oil & Gas Law, PLLC1339 E. Canterwood Circle

Sandy, UT 84093Phone: (801) 573-0450

E-Mail : macdo glr. @,outlook. coln

All future filings made in, and correspondence relating to, this Cause should be directed to

the undersigned's attention at the address and/or e-mail address indicated immediately

above.

Respectfully submitted this 5th day of March,2020.

MIcDONALD OIL & GAS LAW, PLLC

M. MacDonald, Esq.

Attomeys for Petitioner Finely Resources Inc.

qERTIFICATE OF SERVICE

The undersigned certifies that he caused a true and correct copies of the foregoingNotice of Change of Counsel Contact Information to be mailed, properly addressed andpostage pre-paid, and emailed where email addresses have been provided, to each of thefollowing parties this 5h day ofMareh,2020:

Mitchell S. Maio, Esq.Brett B. Wiersum, Esq.Lear & Lear, PLLCAttomeys for Bainbridge Uinta, LLC808 E. South Temple St.Salt Lake City, UT 84102Email : [email protected]

[email protected]

Finley Production Co., L.P.Attn: Scott Pitzer1308 Lake StreetFort Worth"TX76102Email : [email protected]

Haley Sousa, Esq.Assistant Attorney GeneralAttorney for the Division of Oil, Gas andMining1594 West North Temple, Suite 300P.O. Box 145801Salt Lake City, UT 84114-5801Email: [email protected]

Big West Exploration and Production LLC185 S. State Street, Suite 1300salt Lake city, uT 84111

2

CH4 Energy-Finley Utah, LLCAttn: Rodney Black5128 Apache Plume Rd.Fort Worth,TX76107Email : [email protected]

United States Department of InteriorBureau of Land Management - Utah StateOfficeAttn: Matt Janowiak, Minerals SupportManager440 W.200 South, Suite 500Salt Lake City, UT 84101-1345Email : mj anowiak@,blm. gov

WEM Uintah, LLCAttn: Daniel R. Gunnell3319 N. University Ave.o Suite 200Provo, UT 84604

United States Department oflnteriorBureau of Land Management- VernalField OfficeAttn: Jerry Kenczka, Asst. Field Manager- Lands and Minerals170 S. 500 EastVernal, UT 84078-2727Email: jkenczka@,blm. eov

M. MacDonald, Esq

3

FILEDMAR 0 5 2CI23

SEGRETARY BOARD OrolL, GAS & MtNttis

BEFORE THE BOARD OF OILO GAS AND MININGDEPARTMENT OF NATURAL RESOURCES

STATE OF UTAH

IN THE MATTER OF TI{E REQUEST FOR


INC. FOR AN ORDER MODIFYTNG THE


270.10 TO REDUCE T}IE IIEEL/TOE


THE NORTH/SOUTH BOUNDARIES OF THE

ESTABLISFIED DRILLTNG UNITS FOR TFIE

PRODUCTION OF OIL, GAS ANDASSOCIATED ITYDROCARBONS FROM THE



TFIE PALEOCENE WASATCH TRANSITIONAL



20 EAST, SLM, UINTAHCOUNTY, UTAH

MOTION F'OR SECONDCONTINUAIICE

Docket No. 2020-001

Cause No. 470-01

Pursuant to Utah Admin. Code Rule R641-105-300, Finley Resources Inc.

("Finley"), acting by and through its attorneys, MacDonald Oil & Gas Law, PLLC, hereby

respectfully requests the Board of Oil, Gas and Mining ("the Board") to continue the

hearing on this Cause from March 25,202A to ApriI22,2020.

Finley has informed its counsel that Shea Atkins, Finley's Senior Geologist, has a

conflicting prior engagement on March 25,2020 which cannot be changed. His testimony

is critical to Finley meeting its burden of proof in this Cause. Mitchell S. Maio, Esq.,

counsel of record for Bainbridge, and Haley Sousa, Esq.o counsel for the Division, have

been advised ofFinley's intent to file this Motion and both have authorized the undersigned

to represent to the Board that neither of their clients objects to a further continuance.

Presuming the Board grants this Motion, a form ofproposed order is submitted herewith.

Respectfully submitted this 5th day of March,2020.

ALD OrL & GAS LAW PLLC

M. MacDonald, Esq.

Attomeys for Petitioner Finley Resources Inc.

2


STATE OF UTAH

IN THE MATTER OF THE REQUEST FORAGENCY ACTION OF FINLEY RESOURCES

INC. FOR AN ORDER MODIFYING T}IEBOARD'S ORDER ENTERED IN CAUSE NO.270.10 TO REDUCE THE TIEEL/TOE

SETBACKS FORHORIZONTAL WELLS FROM

TFIE NORTH/SOUTH BOUNDARIES OF THEESTABLISFM,D DRILLING UMTS FOR't'HEPRODUCTION OF OIL, GAS ANDASSOCIATED H\TDROCARBONS FROM THEEOCENE MIDDLE AND LOWER GREENRIVER FORMATIONS AND PORTIONS OF


21,28 AND 29, TOWNSHIP 7 SOUTH, RANGE20 EAST, SI,M, UINTAH COUNTY, UTAH

ORDER GRANTINGSECOND CONTINUANCE

Docket No. 2020-001

Cause No. 470-01

The Bozud of Oil, Gas and Mining, having fully considered Finley Resources Inc.'s Motion

for Continuance filed on March 5, 2020, and finding good cause therefor, hereby grants said

Motion and continues the hearing on this Cause from March 25,2020 to April 22,2020.

For all pulposes, the Chairman's signature on an electronic version or a faxed copy of this


DATED this _ day of March,2020

STATE OF'UTAHBOARD OF OIL, GAS AND MINING


C.ERTIF'ICATE OF SERWCE

Ihe undersigned certifies that he caused a true and correct copies of the foregoingMotion for Second Continuance and Proposed order Granting Second Continuance to bemailed, properly addressed and postage pre-paid, and emailed where email addresses havebeen provided, to each of the following parties this 5h day of March,2020:

Mitchell S. Maio, Esq.Brett B. Wiersum, Esq.L,ear & Lear. PLLCAttorneys for Bainbridge Uinta, LLC808 E. South Temple St.Salt Lake City, UT 84102Email : [email protected]

[email protected]

Finley Production Co., L.p.Attn: Scott Pitzer1308 Lake StreetFort Worth,TX76102Email : spitzer@fi nleyresources.com

CH4 Energy-Finley Utah, LLCAttn: Rodney Black5128 Apache Plurne Rd.Fort Worth,'1)(76107Email: [email protected]

United States Department of InteriorBureau of Land Management - Utah StateOfficeAttn: Matt Janowiak, Minerals SupportManager440 W.200 South, Suite 500Salt Lake City, UT 84101-1345Email : mj anowiak@blm. gov

Haley Sousa, Esq.Assistant Attomey GeneralAttorney for the Division of Oil, Gas andMining1594 West North Temple, Suite 300P.O. Box 145801Salt Lake City, UT 841t4-5801Email: hsousa@agutah. gov

Big West Exploration and production LLC185 S. State Street, Suite 1300Salt Lake ciry, uT 94111

WEM Uintah, LLCAttn: Daniel R. Gunnell3319 N. University Ave., Suite 200Provo, UT 84604

United States Department of InteriorBureau of Land Management - VernalField OfficeAttn: Jerry Kenczka, Asst. Field Manager* Lands and Minerals170 S. 500 EastVemal, UT 84078-2727

aJ

Email:

. MacDonald, Esq.

FILEDMAR 0 6 2020

SEcRETARY BOARD OFolt.' GAs & MtNlNc


STATE OF UTAH





270-IO TO REDUCE THE HEEL/TOE


THE NORTFVSOUTH BOI-INDARIES OF THE

ESTABLISHED DRILLING LINITS FOR THE

PRODUCTION OF OIL, GAS ANDASSOCIATED HYDROCARBONS FROM THE





20 EAST, SLM, UINTAH COUNTY, UTAH

ORDER GRANTINGSECOND CONTINUANCE

Docket No. 2020-001

Cause No. 470-01


for Continuance filed on March 5,2020, and finding good cause therefor, hereby grants said

Motion and continues the hearing on this Cause from March25,2020 to April 22,2020.

For all purposes, the Chairman's signature on an electronic version or a faxed copy of this


DATED this 6th day of March,2020.

STATE OF UTAHBOARD OIL, GAS AND MINING

By:J. Gill,


I hereby certify that on this 9th day of March,2020,I caused a true and correct copy of the

foregoing ORDER GRANTING SECOND CONTINUANCE for Docket No. 2020-001, Cause

No. 470-01, to be mailed via E-mail, or First Class Mail with postage prepaid, to the following:

MacDonald Oil & Gas Law, PLLCFrederick M. MacDonald, Esq.1339 E. Canterwood CircleSandy, UT 84093Email: macdogl @outlook.comAttorneys for Petitioner Finley Resources Inc.

Mitchell S. Maio, Esq.Brett B. Wiersum, Esq.Lear & Lear, PLLC808 E. South Temple St.Salt Lake City, UT 84102Email : [email protected]

brett.wiersum@ learlaw.comAttorneys for Respondent, Bainbridge Uinta, LLC

Haley Sousa, Esq.Gordon Rowe, Esq.Utah Attorney General's OfficeNatural Resources Division1594 W. North Temple, Suite 300Salt Lake City, UT 84116Email: [email protected]

[email protected] Attorneys General representing

the Utqh Division of Oil, Gas and Mining

Petitioner's Address:Finley Resources Inc.Attention: Scott Pitzer, LandmanP.O. Box 2200Fort Worth,TX76ll3Email: [email protected]

Respondent's Address:Bainbridge Uinta, LLCAttention: Brian Ching8150 N. Central Expressway, Suite 650Dallas, TX75206

Mike Begley, Esq.

Utah Attorney General's OfficeNatural Resources Division1594 W. North Temple, Suite 300Salt Lake City, UT 84116Email: [email protected] Attorney General's Officerepresenting the Utah Board of Oil, Gasand Mining

Finley Production Co., L.P.Attn: Scott Pitzer1308 Lake StreetFort Worth,TX76l02


2

CH4 Energy-Finley Utah, LLCAttn: Rodney Black5128 Apache Plume Rd.Fort Worth,TX76l07Email : rodney.black@ch4energy. com

United States Department of InteriorBureau of Land ManagementUtah State OfficeAttn: Matt Janowiak, Minerals Support Mgr440 W. 200 South, Suite 500Salt Lake City, UT 84101-1345Email : mj anowiak@blm. gov

United States Department of InteriorBureau of Land ManagementVernal Field OfficeAttn: Jerry Kenczka, Asst. Field Manager - Landsand Minerals170 S. 500 EastVernal, UT 84078-2727Email: jkenczka@blm. gov



WEM Uintah, LLCAttn: Daniel; R. Gunnell3319 N. University Ave., Suite 200Provo, UT 84604Email : dgunnell@wemenergy. com

J


INC. FOR AN ORDER MODIFYING THEBOARD'S ORDER ENTERED IN CAUSE NO.270-IO TO REDUCE THE HEEL/TOESETBACKS FOR HORIZONTAL WELLS FROMTHE NORTFVSOUTH BOUNDARIES OF TF{E

ESTABLISI{ED DRILLING UNITS FOR THEPRODUCTION OF OIL, GAS ANDASSOCIATED }ryDROCARBONS FROM THEEOCENE MIDDLE AND LOWER GREENRIVER FORMATIONS AND PORTIONS OF

THE PALEOCENE WASATCH TRANS ITIONALFORMATIONS. COMPRISED OF SECTIONS 20,

21,28 AND 29, TOWNSHIP 7 SOUTH, RANGE20 EAST, SLM, UINTAH COUNTY, UTAH

FILEDMAR 2 6 2020

SECRETARY BOARD OFOIL, GAS & MINING

MOTIONTO WITHDRAW REQUEST FORAGENCY ACTION AND FOR. AN

ORDER DISMISSING CAUSEWITHOUT PREJUDICE


STATE OF UTAH

Docket No. 2020-001

Cause No. 470-01

Pursuant to Utah Admin. Code Rule R641-105-300, Finley Resources Inc. ("Finley"),

acting by and through its attorneys, MacDonald Oil & Gas Law, PLLC, hereby respectfully

requests the Board of Oil, Gas and Mining ("the Board") to enter an order allowing Finley to

withdraw its Request for Agency Action ("RAA") filed in this Cause and dismissing this Cause

without prejudice. Finley and Respondent Bainbridge Uinta,LLC ("Bainbridge") have not been

able to resolve Bainbridge's objections to the RAA, and especially given the current COVID-19

pandemic and industry economic downturn, Finley desires to withdraw its RAA rather than

proceed to a hearing at this time. Presumably, neither Bainbridge nor the Division of Oil, Gas and

Mining should have any objection to a withdrawal of the RAA as neither will be unduly prejudiced

thereby.

Presuming this Motion is granted, a proposed form of Order Dismissing Cause Without

Prejudice is attached hereto.

Respectfully submitted this 26th day of March, 202A.

M.q.cDO oIL & GAS LAW, PLLC

M. MacD Esq.for Petitioner Finley Inc.

2


STATE OF UTAH


INC. FOR AN ORDER MODIFYING THEBOARD'S ORDER ENTERED IN CAUSE NO.27O.IO TO REDUCE THE HEEL/TOESETBACKS FOR HORIZONTAL WELLS FROMTHE NORTWSOUTH BOUNDARIES OF THEESTABLISHED DRILLING UNITS FOR THEPRODUCTION OF OIL, GAS ANDASSOCIATED HYDROCARBONS FROM THEEOCENE MIDDLE AND LOWER GREENRIVER FORMATIONS AND PORTIONS OFTHE PALEOCENE WASATCH TRANSITIONALFORMATIONS, COMPRISED OF SECTIONS 20,

21,28 AND 29, TOWNSHIP 7 SOUTH, RANCE20 EAST, SLM, UINTAH COUNTY, UTAH

ORDER GRANTING MOTIONTO WITHDRAW REQUEST FOR

AGENCY ACTION AND DISMISSINGCAUSE WITHOUT PREJUDICE

Docket No. 2020-001

Cause No. 470-01


to Withdraw Request for Agency Action and Dismissing Cause Without Prejudice filed on March

26,2020, and finding good cause therefor, hereby grants said Motion and dismisses this Cause

without prejudice.

For all purposes, the Chairman's signature on an electronic version or a faxed copy of this


2020

STATE OF UTAHBOARD OF OIL, GAS AND MINING

DATED this _ day of


CATE OF'S CE

The undersigned certifies that he caused a true and coffect copies of the foregoing Motionto Withdraw Request for Agency Action and for Order Dismissing Cuur. Without Freiudice andProposed Order Dismissing Cause Without Prejudice to be mailed, properly addressed and postagepre-paid, and emailed where email addresses have been provided, io each of the following pufti;tthis 26th day of March,2020:

Mitchell S. Maio, Esq.Brett B. Wiersum, Esq.Lear & Lear, PLLCAttorneys for Bainbridge Uinta, LLC808 E. South Temple St.Salt Lake City, UT 84102Email : mitch.maio@learlaw. com

brett.wiersum@learlaw. com

Finley Production Co., L.P.Attn: Scott Pitzer1308 Lake StreetFort Worth,TX76102Email : spitzer@fi nleyresources. com

CH4 Energy-Finley Utah, LLCAttn: Rodney Black5128 Apache Plume Rd.Fort Worth,TX76107Email : rodney.black@ch4energy. com

United States Department of InteriorBureau of Land Management - Utah StateOfficeAttn: Matt Janowiak, Minerals SupportManager440W.200 South, Suite 500salt Lake city, uT 94101-1345Email : mjanowiak@bl m. gov

Haley Sousa, Esq.Assistant Attorney GeneralAttorney for the Division of Oil, Gas andMining1594 West North Temple, Suite 300P.O. Box 145801Salt Lake city, uT 94114-5901Email : hsousa@agutah. gov

Big West Exploration and Production LLC185 S. State Street, Suite 1300Salt Lake city, UT 94111

WEM Uintah, LLCAttn: Daniel R. Gunnell3319 N. University Ave., Suite 200Provo, UT 84604Email : d gunnell@wemenerg)r. com

United States Depafiment of InteriorBureau of Land Management - Vernal FieldOfficeAttn: Jerry Kenczka, Asst. Field Manager -Lands and Minerals170 S. 500 EastVernal, UT 84078-2727Email : jkenczka@blm. gov

q

-1

M



INC. FOR AN ORDER MODIFYING THEBOARD'S ORDER ENTERED IN CAUSE NO.270-IO TO REDUCE THE HEEL/TOESETBACKS FOR HORIZONTAL WELLS FROMTHE NORTFVSOUTH BOUNDARIES OF THEESTABLISHED DRILLING UNITS FOR THEPRODUCTION OF OIL, GAS ANDASSOCIATED HYDROCARBONS FROM THEEOCENE MIDDLE AND LOWER GREEN



21,28 AND 29, TOWNSHIP 7 SOUTH, RANGE20 EAST, SLM, UINTAH COTINTY, UTAH

FILEDMAR 3 0 2020

SECRFTARY BOARD OFOIL, GAS & MINING

ORDER GRANTING MOTIONTO WITHDRAW REQUEST FOR

AGENCY ACTION AND DISMISSINGCAUSE WITHOUT PREJUDICE


STATE OF UTAH

Docket No. 2020-001

Cause No. 470-01


to Withdraw Request for Agency Action and Dismissing Cause Without Prejudice filed on March

26,2020, and finding good cause therefor, hereby grants said Motion and dismisses this Cause

without prejudice.

For all pulposes, the Chairman's signature on an electronic version or a faxed copy of this


DATED this 30th day of March,2020

STATE OF UTAHOIL, GAS AND MINING

By:

BOARD

. Gill, Jr.


I hereby certify that on this 30th day of March, 2020,I caused a true and correct copy of

the foregoing ORDER GRANTING MOTION TO WITHDRAW REQUEST FOR AGENCY

ACTION AND DISMISSING CAUSE WITHOUT PREJUDICE for Docket No. 2020-001,

Cause No. 470-01, to be mailed via E-mail, or First Class Mail with postage prepaid, to

the following:

MacDonald Oil & Gas Law, PLLCFrederick M. MacDonald, Esq.1339 E. Canterwood CircleSandy, UT 84093Email: macdogl @outlook.comAttorneys for Petitioner Finley Resources Inc.

Mitchell S. Maio, Esq.Brett B. Wiersum, Esq.Lear &Lear,PLLC808 E. South Temple St.Salt Lake City, UT 84102Email : mitch.maio@learlaw. corn

brett. wiersum@learlaw. comAttorneys for Respondent, Boinbridge Uinta, LLC

Haley Sousa, Esq.Gordon Rowe, Esq.Utah Attomey General's OfficeNatural Resources Division1594 W. North Temple, Suite 300Salt Lake City, UT 84116Email: hsousa@agutah. gov

[email protected] Attorneys General representing

the Utah Division of Oil, Gas and Mining

Petitioner's Address:Finley Resources Inc.Attention: Scott Pitzer, LandmanP.O. Box 2200Fort Worth,T){76113Email : SPitzer@fi nleyresources. com

Respondent's Address:Bainbridge Uinta, LLCAttention: Brian Ching8150 N. Central Expressway, Suite 650Dallas, TX75206

Mike Begley, Esq.Utah Attorney General's OfficeNatural Resources Division1594 W. North Temple, Suite 300Salt Lake City, UT 84116Email: [email protected] s istant Attorney General's Offi cerepresenting the Utoh Board of Oil, Gasand Mining

2

Finley Production Co., L.P.Attn: Scott Pitzer1308 Lake StreetFort Worth,TX76102

CH4 Energy-Finley Utah, LLCAttn: Rodney Black5128 Apache Plume Rd.Fort Worth,TX76l07Email : rodney.black@ch4energy. com

United States Department of InteriorBureau of Land ManagementUtah State OfficeAttn: Matt Janowiak, Minerals Support Mgr440 W.200 South, Suite 500Salt Lake City, UT 84101-1345Email : mj anowiak@blm. gov

United States Department of InteriorBureau of Land ManagementVemal Field OfficeAttn: Jerry Kenczka, Asst. Field Manager - Landsand Minerals170 S. 500 EastVemal, UT 84078-2727Email: jkenczka@blm. gov




WEM Uintah, LLCAttn: Daniel; R. Gunnell3319 N. University Ave., Suite 200Provo, UT 84604Email : [email protected]

aJ

L

filed - fs.ogm.utah.gov...feb 26, 2020 · certificate of service docket no. 2020-001 cause no....

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