filed - utah · company, l.p.'s ("epe's") motion for leave to substitute and...

FILEDFEB 2 t 2017

SECRETARY BOARD OFoil- GAS & M|NING

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

STATE OF'UTAH

IN THE MATTER OF TTIE REQUEST FORAGENCY ACTION OF EP ENERGY E&PCOMPANY, L.P. FOR AN ORDER POOLING ALLINTERES'I'S, INCLUDING TTIE COMPULSORY

POOLING OF TIIE INTERESTS OF CERTAINNON-CONSENTING OR UNLOCATABLEOWNERS, IN THE DRILLING LTNIT

ESTABLISHED FOR TFIE PRODUCTION OF OIL,GAS AND ASSOCTATED HYDROCARBONS

FROM THE LOV/ER GREEN RTVER-WASATCH

FORMATIONS COMPRISED OF ALL OFSECTION 25, TOWNSHIP 3 SOUTH, RANGE 4

WEST, U.S.M., DUCIIESNE COLINTY, UTAH

MOTION F'OR LDAVE TOSUBSTITUTE AND REPLACE

EXI{¡3114¡4tr

Docker No. 2017-005

Cause No. 139-142

COMES NOW, EP Energy E&P Company, L.P. ("EPE"), acting by and through its

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

Admin. Code Rule R641-105-300, and hereby requests the Board of Oil, Gas and Mining

(the "Board") for leave to substitute and replace Exhibit "M" filed as part of EPE's Exhibits

in this Cause on January 23,2017, with the Replacernent Exhibit "M" attached hereto and

by this reference incorporated herein. Exhibit "M" reflects the calculation of the average

weighted fee landowner's royalty in the drilling unit at issue. Since original Exhibit "M"

was filed, and only yesterday, Kaiser-Francis Oil Company, for which compulsory pooling

was sought, leased to EPE and its lease provides for a20% royalty. As a consequence, the

need to compulsory pool Kaiser-Francis Oil Company's interest is now moot, but there is

also a slight upward adjustment of the average weighted fee landowner's royalty in the

Drilling Unit, which is reflected in the attached Replacement Exhibit "M."

Exhibits filed later than 30 days before the scheduled hearing date may be allowed

by the Board upon good cause shown (see Utah Admin. Code Rule R641-105-500). The

hearing on this matter is scheduled for tomorrow, February 22, 2017. At this time, there

have been no timely responses filed and no other parties that have made a formal

appearance in this matter. As a consequence, and for the reasons outlined above, EPE

respectfully requests this Motion for Leave be granted and the attached Replacement

Exhibit "M" be substituted for and replace the original of said Exhibit cmrently on file in

this Cause. A proposed Order Granting Leave is submitted herewith.

1100.21

Respectfully submitted this 2151 day of February, 2017.

MACDONALD & MILLER MINERAL LEGAL SERVICES, PLLC

Attorneys for Petitioner EP Energy E&P Company, L.P.

2

AVERAGE WEIGHTED FEE ROYAL TY CALCULATION

Retzke 1-25C4

IUUVIV l-'art1c1pat1on i-actor vve1gntea Koya1ty Lease Unit Tract Lease Net Lease Net Acres/Total Leased Lease Lease Royalty x No. Lessor # Acres Fee Net Acres (517.988891 J Rovaltv Participation Factor

Ardell Gillespie, dealing in her sole and separate I 46.625004 0.0900115901 20.000000% 0.0180023180

1 property

Donna Thompson and Stephen W. Thompson , as I 46.625004 0.0900115901 20.000000% 0.0180023180

2 Joint Tenants

Maxine Jensen, dealing in her sole and separate I 46.624998 0.0900115793 20.000000% 0.0180023159

3 property

Amanda S. Prows and Arvin Ronald Prows, wife I 46.624998 0.0900115793 20.000000% 0.0180023159

4 and husband, as Joint Tenants

George Swasey, dealing in his sole and separate I 46.624998 0.0900115793 20.000000% 0.0180023159

5 property

John Albert Swasey, dealing in his sole and I 46.624998 0.0900115793 20.000000% 0.0180023159

6 separate property

10 Hydrocarbon Minerals II, LLC I 12.972651 0.0250442648 20.000000% 0.0050088530

14 TST Partnership I 4.540426 0.0087654900 18.750000% 0.0016435294

Club Oil and Gas Ltd., LLC, by Club Oil and Gas, I 4.102629 0.0079203028 20.000000% 0.0015840606

15 Inc., Manager, Vincent J. Duncan, Jr., President

Raymond T. Duncan Oil Properties, Ltd., by John V. Cestia, Vice President, Duncan Oil, Inc., as I 4.102623 0.0079202920 20.000000% 0.0015840584

16 Attorney-in-Fact

James G. Slemaker, Successor Trustee of the Richard W. Slemaker, Jr. and Margaret A.

I 4.102567 0.0079201840 20.000000% 0. 0015840368 Slemaker Revocable Living Trust dated October

17 10, 2003, amended August 27, 2007

Margaret W. Gilbert and Ruth W. Landsaw, Co-Successor Trustees of the Margaret S. Wirick

I 4.102567 0. 0079201840 20.000000% 0.0015840368 Trust under Trust Agreement dated August 25, 18 1997

Milam Sons' Minerals, LLC, John B. Milam, I 3.076970 0.0059402244 20.000000% 0.0011880449

19 Manager

20 Calvin P. Gaddis I 2.594530 0.0050088530 16.666667% 0.0008348088

22 Michael P. McDermott, Jr. I 2.594530 0.0050088530 16.666667% 0.0008348088

23 Herald 0. Johnson I 1.297268 0.0025044319 16.666667% 0.0004174053

Judith Burton Moyle, a married woman dealing in I 1.297262 0.0025044211 16.666667% 0.0004174035

24 her sole and separate property

25 George G. Vaught Jr. I 0.778360 0.0015026570 16.666667% 0.0002504428

Reese S. Howell and Geraldine F. Howell, ihusband and wife, individually and as Trustees of I 0.648634 0.0012522159 18.750000% 0.0002347905

26 the Reese and Geraldine F. Howell Family Trust

Robert S. Howell, Trustee of the Robert S. Howell and Margeo S. Howell Family Trust dated April 15, I 0.648634 0.0012522159 18.750000% 0.0002347905

27 2011

28 Mary H. Moss, a single woman I 0.648634 0.0012522159 18.750000% 0.0002347905

Daniel S. Sam and Penny B. Sam, a Joint I 0.583771 0.0011269954 18.750000% 0.0002113116

36 Tenancy

29 Paul McCulliss I 0.194589 0.0003756615 20.000000% 0.0000751323

Carrie Markham, individually and as heir to the I 0.162160 0.0003130567 18.750000% 0.0000586981

30 Estate of H. Bruce Markham Jr., deceased

Merilee Markham, individuallly and as an heir to the Estates of William Lee Markham and Ruth I 0.162160 0.0003130567 18.750000% 0.0000586981

31 McCormick Markham, both deceased

Anna Lee Markham, individuallly and as an heir to the Estates of William Lee Markham and Ruth I 0.162160 0.0003130567 18.750000% 0.0000586981


Tracy Lee Sherrill, individuallly and as an heir to the Estates of William Lee Markham and Ruth I 0.162160 0.0003130567 18.750000% 0.0000586981


Lori Lee Swenson, individuallly and as an heir to the Estates of William Lee Markham and Ruth I 0.162154 0.0003130459 18.750000% 0.0000586961


New36 Walter Duncan Oil, LLC I 1.025653 0.0019800676 20.000000% 0.0003960135

New37 Red River Royalties, Inc. I 17.738086 0.0342441434 18.750000% 0.0064207769

Alan and Kay Blood Limited Liability Company, I 1.297262 0.0025044211 18.750000% 0.0004695790

New38 LLC

New39 PEC Minerals LP I 36.923447 0.0712823148 18.750000% 0.0133654340

Croff Oil Company, Inc. (MR Contractual Roy I 27.112844 0.0523425204 16.666667% 0.0087237536

UNL under JOA)

QEP Energy Company (Contractual Royalty under I 36.923442 0.0712823040 18.750000% O.Q133654320

UNL JOA)

New40 Covey Minerals, Inc. I 3.113433 0.0060106171 18.750000% 0.0011269907

New41 Adrienne Larson I 1.945896 0.0037566370 18.750000% 0.0007043694

New42 The University of Utah I 1.945896 0.0037566370 18.750000% 0.0007043694

EP Energy E&P Company, L.P. (Contractual Roy I 27.975000 0.0540069498 18.750000% 0.0101263031

UNL under JOA)

Black Stone Minerals Company, L.P., a Delaware I 12.307875 0.0237608868 18.750000% 0.0044551663

New43 limited partnership

New44 Duchesne County II 0.500000 0.0009652717 18.750000% 0.0001809884

New45 Kaiser-Francis Oil Company I 2.594530 0.0050088530 20.000000% 0.0010017706

New46 Cat Springs Properties LLC I 17.738086 0.0342441437 25.000000% 0.0085610359

I TOTALS: 517.988891 0.1958316755

R.EPlAq;~-rEXHIBIT M

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

STATE OF UTAH

IN THE MA TIER OF THE REQUEST FOR I AGENCY ACTION OF EP ENERGY E&P

COMPANY, L.P. FORAN ORDER POOLING ALL

INTERESTS, INCLUDING THE COMPULSORY

POOLING OF THE INTERESTS OF CERTAIN

NON-CONSENTING OR UNLOCATABLE

OWNERS, IN THE DRILLING UNIT

ESTABLISHED FOR THE PRODUCTION OF OIL,

GAS AND ASSOCIATED HYDROCARBONS

FROM THE LOWER GREEN RIVER-WASATCH

FORMATIONS COMPRISED OF ALL OF

SECTION 25, TOWNSHIP 3 SOUTH, RANGE 4

WEST, U.S.M., DUCHESNE COUNTY, UTAH

ORDER GRANTING LEA VE TO SUBSTITUTE AND REPLACE

EXHIBIT "M"

Docket No. 2017-005

Cause No. 139-142

The Board of Oil, Gas and Mining, having fully considered EP Energy E&P

Company, L.P.'s ("EPE's") Motion for Leave to Substitute and Replace Exhibit "M" filed

on February 21, 2017, and finding good cause therefor, hereby grants said Motion and

authorizes the substitution and replacement of the Replacement Exhibit "M" attached to

the Motion for the original of said Exhibit currently on file in this Cause.

juliecarter

Typewritten Text

[PROPOSED]

For all purposes, the Chairman's signature on an electronic version or a faxed copy

of this Order shall be deemed the equivalent of a signed original.

1100.21

DATED this __ day of February, 2017.

By:

STATE OF UTAH BOARD OF OIL, GAS AND MINING

Ruland J. Gill, Jr., Chairman

2

CERTIFICATE OF SERVICE

I hereby certify that on this 2151 day of February, 2017, I caused a true and correct copy of the foregoing Motion for Leave to Substitute and Replace Exhibit "M," with proposed Order granting same, to be sent electronically to the following:

Stephen F. Alder, Esq. Assistant Attorney General Attorney for the Division of Oil, Gas and Mining 1594 West North Temple, Suite 300 P.O. Box 145801 Salt Lake City, UT 84114-5801 E-mail: [email protected]

Michael S. Johnson, Esq. Assistant Attorney General Attorney for the Board of Oil, Gas and Mining 1594 West North Temple, Suite 300 P.O. Box 145801 Salt Lake City, UT 84114-5801 E-mail: [email protected]

3

filed - utah · company, l.p.'s ("epe's") motion for leave to substitute and...

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