... . .-F I LED

DEC 2 3 2013 SSCAfTAAY, BOARD OF

OIL, GAS l MINING

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

STATE OF UTAH

IN THE MATTER OF THE REQUEST FOR AGENCY ACTION OF CONOCOPHILLIPS COMPANY FOR AN ORDER ESTABLISHING A 160-ACRE DRILLING AND SPACING UNIT FOR THE PRODUCTION OF GAS (INCLUDING COALBED METHANE) FROM THE FERRON FORMATION IN THE SEV4 OF SECTION 9, TOWNSHIP 15 SOUTH, RANGE 8 EAST, SLM, CARBON COUNTY UTAH

PETITIONER'S EXHIBITS

Docket No. 2014-001

Cause No. 243-12

Pursuant to Utah Admin. Code Rule R641-105-500, Petitioner ConocoPhillips

Company ("COP"), by and through its counsel of record, MacDonald & Miller Mineral

Legal Services, PLLC, hereby respectfully submits the following exhibits intended to be

offered into evidence in support of its Request for Agency Action at the January 22, 2014

hearing on this cause:

EXHIBIT "A" - COP's witnesses' resumes (collectively, 3 pages):

• Jordan M. Zongol- Landman • Thomas W. Zadick - Consulting Reservoir Engineer

EXHIBIT "B" - Lands to be spaced pursuant to this Request (1 page)

EXHIBIT "C" - Leasehold Ownership ( 1 page)

EXHIBIT "D" - Coal Isopach Map (1 page)

EXHIBIT "E" - Stratigraphic Cross-Section A-A' (1 page)

EXHIBIT "F" - Decline Curve Analysis (1 page)

EXHIBIT "G" - Dual Porosity Coal Model ( 1 page)

EXHIBIT "H" - Initial Model Properties (1 page)

EXHIBIT "I" - 40 acre vs. 160 acre Drainage Comparison (collectively, 2 pages)

EXHIBIT "J" - Recovery vs. Spacing Projections (1 page)

EXHIBIT "K" - Conclusions ( 1 page)

Respectfully submitted this )~day of December, 2013.

MACDoNALD & MILLER MINERAL LEGAL

SERVICES, PLLC

./

By..: ~//?7 Relma . Miller 7090 S. Union Park Ave., Suite 400 Salt Lake City, UT 84047 Telephone: (801) 676-0050 Facsimile: (801) 676-0051 E-Mail: relma@macmillerlegal.com Attorneys for Petitioner ConocoPhillips Company

2

EDUCATION

Jordan M. Zongol, RPL 600 N. Dairy Ashford Houston, TX 77079

(832) 486-3027 Jordan.M,Zongol@COP.com

Texas Tech University, Rawls College of Business, Lubbock, TX Bachelor of Business Administration in Energy Commerce Graduation Date: May 2012 Cumulative Texas Tech GPA: 3.39

Energy Commerce Study Abroad in Europe • Took Global Energy Perspectives class in London, UK

May2011

• Visited various the Intel1lational and OPEC

EMPLOYMENT ConocoPhillips Company Associate Landman • Have focused on Utah since November 2012 • Handle all Drunkards Wash land responsibilities

Houston, T)(fMidland, TX June 2012- Present

• Draft and analyze legal documents including: Leases, Operating Agreements, Farmouts, Leasehold Assignments, Communitization Agreements & Confidentiality agreements

• Coordinate with BLM, State of Utah and working interest pm1ners

~h~ ~~~U Petroleum Land Management Intern June 2011- August 201 1 • Evaluated production prospects for ownership rights and possible future production • Participated in meetings with land owners • Independently apprehended lease from uncooperative land owner • Worked with technology including Excalibur and SM Map

CERTIFICATION Registered Professional Landman

ORGANIZATIONS American Association of Professional Landmen

Denver Association of Petroleum Landmen

Permian Basin Landmen's Association

CONTINUING EDUCATION Rocky Mountain Mineral Law Foundation • 59th annual institute in Spokane, Washington EUCI • Oil and Gas Production on Federal Lands Denver Association of Professional Landmen • DAPL Fall Land Institute American Association of Professional Landmen • Advanced JOA Seminar

EXHIBIT A

June 2013- Present

September 201O-Present

2012-2013

2012-2013

July 2013

March 2013

October 2012

August 2012

Thomas William Zadick B.S. and M.S. in Chemical Engineering

Registered Professional Engineer

Address: 4904 Melrose Park Drive Colleyville, Texas 76034 e-mail: twzpe@twzadickpe.com

Phone: (817) 684-11 04 (0) (817) 354-1836 (H) (817) 980-2657(C)

A results-oriented engineer and project manager with over 30 years experience in reservoir engineering, formation evaluations and economic analysis.

EXPERIENCE PROFILE THOMAS W. ZADICK, P.E. April 1, 1999 to present

Consulting reservoir engineering services specializing in fluid flow through porous media, complex-hydrocarbon phase behavior, recovery enhancement, well-test analysis and process optimization. Licensed user of GCOMP, PHSSIM, COMET3 and GASMOD reservoir simulation models and OFM, SAPHIR, TOPAZ AND RTA well test models. Competent user of OGRE, PhdWin, RPI, IMEX, CMGProp, and Office Pro. For more information see http://www.twzadickpe.com/

UNION PACIFIC RESOURCES COMPANY October 1976 to March 31, 1999

Senior Engineering Advisor and Senior Scientist April 1994 to March 31, 1999

Conducted special studies and evaluated reservoir performance for internal clients. These projects include existing EOR projects, new EOR projects, acquisitions and bid analysis, optimal plans of depletion and research into new or improved methods for EOR. Areas of specialized expertise are fluid flow in porous media, enhanced recovery in conventional and dual porosity reservoirs, hydrocarbon fluid behavior and geochemical methods for testing reservoir continuity.

Awarded: W. L. Adams Petrotech Fellow and promoted to Senior Scientist in 1995,

Senior Engineering Advisor February 1989 to April 1994

Supervised the Northern Engineering group (7 engineers and 2 technical aides), Responsible for prospect and project analysis, fOl'mation evaluations, stimulation design and optimization, reservoir analysis, unitization, enhanced recovery and acquisitions. Project manager for three major drilling programs that were completed ahead of schedule and under Budget. Responsible for developing annual Budget, Long Range Plan and Reserves report.

Regional Engineering Manager May 1986 to February 1989

Supervised 6 direct reports including 4 supervisors and 39 professionals in the Denver Region Engineering department. Responsibilities included project analysis, prospect support, drilling, formation evaluations, stimulation, reservoir analysis, process design and plant optimization. Coordinated all hiring, training and professional development for all engineers in the region. Responsible for developing and implementing annual Budget, Long Range Plan and Reserves report.

Regional Production Manager May 1985 to May 1986

Supervised 10 professionals. Monitored all production operations, engineering, acquisitions and drilling for three operating Divisions in the Denver Region. Directed the hiring, training and development of Production Department personnel. Reviewed and modified all Business Cycle reports to insure accuracy, completeness and consistency within the Region.

2

Division Production Manager February 1983 to May 1985

Supervised 3 direct reports. Managed the engineering, drilling and production operations for the Pacific Division with 225 employees and 11,200 BOPD. Implemented a large-scale immiscible CO2 pilot. Designed and implemented a tertiary steam flood pilot using DOE funding. Evaluated and recommended a major steamfloodlcogeneration project to management. WIO representative for a major OCS discovery.

Chief Engineer and Division Engineer January 1980 to February 1983

Supervisor Reservoir Engineering August 1977 to December 1979

Senior Reservoir Engineer October 1976 to July 1977

Managed and supervised operations and conducted reservoir analysis for properties in the Denver Region. Utilized a 3-dimensional compositional simulator to model the performance of a rich retrograde-condensate reservoir where pressure is being maintained by gas injection. Developed an optimal plan of depletion for several major Overthrust discoveries, several of which required full pressure maintenance to optimize hydrocarbon recovery.

SHELL OIL COMPANY March 1971 to October 1976

Senior ReservoirlReservoir Engineer 1971 to 1976

Evaluated secondary and tertiary potential for Michigan oil and gas-condensate reservoirs. Developed an optimal producing strategy for Michigan gas fields. Directed two Micellar-polymer pilot floods in Illinois and evaluated performance of a COz flood in West Texas. As a member of a project team evaluated the feasibility of in fill drilling in a large West Texas Carbonate waterflood. Developed and supervised laboratory testing ofCOz process for large West Texas Carbonate field.

EDUCATION

Montana State University, Bozeman, Montana

Graduated with highest honors; Phi Eta Sigma, Tau Beta Pi and Phi Kappa Phi

B.S. in Chemical Engineering in 1969 (GPA 3.6/4.0) M.S. in Chemical Engineering in 1971 (GPA 4.0/4.0) Thesis: The Catalytic Reduction of Calcium Sulfate

INDUSTRY SCHOOLS

* Phase I, II and III schools in Production, Formations Evaluations, Reservoir Engineering, Economics, Enhanced Recovery and Numerical Simulation at Shell Development

* Industry and in-house schools in economics, simulation, geostatisitics and supervision * Taught Industry Schools in Enhanced Recovery and Well Test Analysis * Executive Mineral Management Program Colorado School of Mines ill 1981 * Penn State Executive Management Pmgram in 1986

PERSONAL DATA

Citizenship: United States of America Health: Excellent Qualified Expert Witness: Texas, New Mexico, Colorado and Utah Marital Status: Single Professional Activities: SPE of AIME, Fort Worth SPE Board of Directors, 2003 Program Chair, 2004 Section Chair, SPE Professional Registration Committee, Chair ofSPE Reservoir Engineering Award Committee, MSU College of Engineering Industry Advisory Panel, Fort Worth Wildcatters. Hobbies: Sports, Jogging, Photography, and Backpacking.

A MORE DETAILED RESUME, REFERENCES AND PUBLICA TIONS AVAILABLE UPON REQUEST

Docket No. 2014-001, Cause No. 243-12 - Exhibit B

6 5 4 ',000 0 ' ,000 eo ..

• =w. 7 6 CJ f"ropo...:l 5po.<>'T>o Unl

t:::I DnJnl:ards Wasil Fed_ UrOt

• 18 17 16

• • c.onocOPt...llips • • ,. 2O 21 " 23 • • • ,-• • •

• • •

Docket No. 2014-001, Cause No. 243-12 - Exhibit C

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Docket No. 2014-001, Cause No. 243-12 - Exhibit D

• • •

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ConocoPhillips Drunkards Wash Area Total Coal Isopach Map

CI = 5 feet

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Docket No. 2014-001, Cause No. 243-12 - Exhibit F

----_ fliiO_ ' 3 --_ ...-.---- ..iJ

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-;:. c' =J-"'. -... , U!'_ .... "- ... ... ... -..- ­-,---..-.---- - ..... --T" _ , _.,..,.., .. ~." .... .. .. ­... .u _

Arp's Decline Curve Analysis

~ __ =-__ .. ____ -, ____ ,",_,_ .. _ , _.u_ .,_,._. _ .. _. __ , ________ ,_, ___ __

a .... ................. .... ... ... ... .... _c-. ...... _ ... .... . ,. ..,. ...........

.. Hyperbolic Analysis suggests 700 MMcf recoverable to Economic Limit

.. Conventional decline analysis cannot accommodate desorption and is considered conservative for CBM

• •

Docket No. 2014-001, Cause No. 243-12 - Exhibit G

Dual Porosity Coal Model

Single Producer

Flow Boundary .,...... "I!"

7 ·:i;iH.=m::.lli!"·

Docket No. 2014-001, Cause No. 243-12 - Exhibit H

Initial Model Properties

- Adsorbed Gas Content - Reservoir Properties

'" '00 ~ 250

-;f 100 • ! 150

; 100 o

" •

Methane Gas Content

i i ,

, , /' , ,

/' , , , , ,

• , I ; , , o 200.00 &00 300 1000 12M 1400 l~OO 1_ 2000

- Depth 4200 TVD

- Net Coal 29'

- Ash + Moisture Content 25 %

- Coal Density 1.45 glee - Initial Pressure 1600 psi

- Adsorbed gas content saturated

- Cleat porosity 4 %

- OGIPj40 acres = 514 MMcf (free plus sorbed gas)

• • •

Docket No. 2014-001, Cause No. 243-12 - Exhibit 1-1

History Match 40 vs. 160 Acre Drainage Area

History Match

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I ::: - I .+ ~ 100

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Docket No. 2014-001, Cause No. 243-12 - Exhibit 1-2

Forecast 40 vs. 160 Acre Drainage Area

Forecast

,OO ~~ __ ~ ~ BUR 946 :MMcf

= 10 • • , -- 160 ... 1010.1

- (""'Mod

,

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., I'r'<IcIu<Iq: limo, yn

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Docket No. 2014-001, Cause No. 243-12 - Exhibit J

Recovery vs. Spacing

,----~-------- .- ~

• EUR _ .....

Arp's EUR

1200

1000

" • ----------- ---• , 40' 200 ,

40 80 160

DTlIIlnq:e Aru

• • ConocoPhilJips

Docket No. 2014-001, Cause No. 243-12 - Exhibit K

Conclusions

- Minimum Spacing for USA 9-670D is 160 acres

- Analysis of performance decline indicates 700 MMscf EUR

- Performance modeling using Dual Porosity C8M model shows: • Recovery of 303 MMscf for 40-acre drainage area

• Recovery of946 MMscffor 160-acre drainage area

- Expected recovery is greater than what can reasonably assumed for 40 or 80-acre spacing units

• •