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PIONEERFebruary 6, 2009 NATURAL RESOURCESUSA, INC.

Bureau of Land ManagementPrice Field Office125 South 600 WestPrice, Utah 84501

RE: Jensen Fed 11C-10-12-10NWNW, Sec. 10, T12S-R10ECarbon County, Utah

Ladies and Gentlemen:

This letter is to inform you that Permitco Inc. is authorized to act as Agent and to sign documentson behalf of Pioneer Natural Resources USA, Inc. when necessary for filing county, state, andfederal permits including Onshore Order No. 1, Right of Way applications, etc., for the abovementioned well.

It should be understood that Permitco is acting as Agent only in those matters stated above and isnot responsible for drilling, completion, production or compliance with regulations.

Pioneer Natural Resources USA, Inc. agrees to accept full responsibility for operationsconducted in order to drill, complete and produce the above-mentioned well.

Sincerely,

g erSenior Engineering Tech.

1401 17TH STREET, SUITE 1200 • DENVER, COLORADO 80202 MAIN: (303) 298-8100 FAX: (303)

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PERMITC0POBox99 • Eastlake,CO80614 • (303)8579999 • FAX(303)450-9200 • E-MAILPermitcol@aolcom

April6, 2009

Divisionof Oil,Gas&Mining1594West NorthTempleSuite1210SaltLakeCity,UT 84114-5801

Attn:DianaMason

Re: Pioneer NaturalResources USAInc.Jensen Fed #11C-10-12-10735'FNLand 484' FWLNWNWSection10,T12S- R10ECarbon County,Utah

DearDiana,

Enclosed pleasefind twocopiesoftheA.P.D.alongwithonecopyofthe OnshoreOrderNo.1 whichhas been forwarded to the BLNI.

Please forwardapprovedcopiesoftheA.P.D.totheaddressshownabove.Tÿou shouldneedadditionalinformation,pleasefeel free tocontactmeat thenumbershownabove.

Sincerely,

Venessa LangmacherRegulatorySupervisor/Agentfor:Pioneer NaturalResources USAInc.

RECEIVEDEnc.

APR09 2009cc: Pioneer NaturalResources USAInc.- Denver,CODIVOF01L,GAS&

0STATE OF UTAH FORM 3

DEPARTMENT OF NATURAL RESOURCESDIVISION OF OIL, GAS AND MINING AMENDED REPORT

(highlight changes)

APPLICATION FOR PERMIT TO DRILLUMINERAL5L9E4ASENO.: 6. SeURFACE:

1A. TYPEOFWORK: DRILLË REENTER DEEPEN7. IFINDIAN,ALLOTTEEORTRIBENAME:

N/AB. TYPE OF WELL: OILO GAS OTHER SINGLEZONEË MULTIPLEZONE

8. UNIT or CA AGREEMENT NAME:

NIA J

2. NAME OF OPERATOR: 9. WELL NAME and NUMBER:

Pioneer NaturalResources USAInc. Jensen Fed #110-10-12-103. ADDRESS OF OPERATOR: PHONE NUMBER: 10. FIELD AND POOL, OR WILDCAT:

1401 -17th Street,Suite1200,Denver,CO80202 | 303/675-2782 Castlegate/ Blackhawk4. LOCATION OF WELL (FOOTAGES) 11. QTRIQTR, SECTION, TOWNSHIP, RANGE

gÇWO y -Ñ703 ¶ -//0. ýý9FR MER\DIAN:

AT SURFACE: 17 59 X 735' FNLand484' FWL Section 10,T12S- RTOEAT PROPOSED PRODUCING ZONE: NWNW

14. DISTANCE IN MILES AND DIRECTION FROM NEAREST TOWN OR POST OFFICE: 12. COUNTY: 13. STATE:

Approximately10.9milesnortheastofHelper,Utah. Carbon UT15. DISTANCE TO NEAREST PROPERTY OR LEASE LINE (FEET) 16. NUMBER OF ACRES IN LEASE: 17. NUMBER OF ACRES ASSIGNED TO THIS WELL:

484' 2,553.31 40 acres18. DISTANCE TO NEAREST WELL (DRILLING, COMPLETED, OR 19. PROPOSED DEPTH: 20. BOND DESCRIPTION:

APPLIED FOR) ON THIS LEASE (FEET):

2,750' 5,500' MTB-00004121. ELEVATIONS (SHOW WHETHER DF, RT, GR, ETC.): 22. APPROXIMATE DATEWORKWILL START: 23. ESTIMATED DURATION:

7199.6' GL UponApproval 10 Days

24. PROPOSEDCASINGANDCEMENTINGPROGRAMSlZE OF HOLE CASING SlZE, GRADE, AND WEIGHT PER FOOT SETTING DEPTH CEMENT TYPE, QUANTITY, YlELD, AND SLURRY WEIGHT

12-1/4" 8-5/8",H40,28# 600' 428sx ClassG,12.5ppg,1.19cft/sx7-7/8" 5-1/2",K55,17# 5,500' 792sx 35:65POZ: Class G,11.5ppg,1.17cft/sk +

283sx 50:50POZ: ClassG,12.5ppg,1.19cft/sk

25 ATTACHMENTSVERIFY THE FOLLOWING ARE ATTACHED IN ACCORDANCE WITHTHE UTAH OIL AND GAS CONSERVATION GENERAL RULES:

WELL PLAT OR MAP PREPARED BY LICENSED SURVEYOR OR ENGINEER COMPLETE DRILLINGPLAN

EVIDENCE OF DI VT[GWHOLE FORM 5, IF OPERATOR IS PERSON OR COMPANY OTHER THAN THE LEASE OWNER

AGENT: PermitCoInc., P.O.Box99, Eastlake,CO80614 AGENT'S PHONE No.: 303/857-9999

NAME (PLEASE P I T) V900Ssa Lan macher TITLERegulatory Supervisor/AgentforPioneer NaturalResources USAInc.

SIGNATURE DATE April6, 2009(This space for State use only) Approvedby theAPINUMBERASSIGNED: g a'°y RECEIVED

APRO9 2005(11/2001) in

FederalApproval of thie DIV.0FOlL,GAS&MININGAction is

PIONEER NATURAL RESOURCES USA, INC.Ti2S, Ri0 E, S. L. B. &M. Well location, JENSEN FEDERAL //11C-10-12-10,

located as shown in the NW 1/4 NW 1/4 of Sectionto'HIgrhP//Cey,30.36' (G.L.O.) 10, T12S, Rí0E, S.L.B.&M. Carbon County, Utah.af Stones N-S

True Pos/tlonrencelin N89°07'J7"W- 2684.05' (Meos.) S8857'147 - 2669.62' (Meas.)

-NB9 776 77 to

1.90 HgrhE-

192J Brass cap, À Fenceline0 High, P//e of

3 Brass Cop,

BASIS OF ELEVATIONBENCHMARK LOCATED IN THE SW 1/4 NE 1/4 OF SECTION10,

484 JENSEN FEDERAl. /11C-10-12-10T12S, R10E, S.L.B.&M. TAKEN FROMTHE MATTS SUMMIT,

Elev. Ungraded Ground = 7200' QUADRANGLE,UTAH, 7.5 MlNUTE QUAD. (TOPOGRAPHIC MAP)PUBLISHED BY THE UNITED STATES DEPARTMENTOF THEINTERIOR,GEOLOGICALSURVEY.SAID ELEVATIONIS MARKED ASBEING 7131 FEET.

192J Brass CaP, N0.8' H/gh, P//eof Stones

10192J Brass Cap,0.8' High, N-S

-

Fenceline, Pile o^o

of Stones o

SCALECERTIFICATE

THIS IS TO CERTlFY THAT THE ABOVE P PARED FROMFIELD NOTES OF ACTUALSURVEYS R MYI SUPERVISIONAND THAT THE SAM T THE

BASIS OF BEARINGS BEST OF MY KNOWLEDGEAND B

BASIS OF BEARINGS IS A G.P.S. OBSERVATION.GIS R UR Y •

GIS A 19192J Brass CaP, F ,0.5' High, N-SFenceline, P//e of"°""" UINTAH ENGINEERING192 rass cap, NBB°30'08"W

- 5280.25' (Meas)o.s y sti" (NAD 83) 85 SOTITH 200 EAST - H 84078LATITUDE =

39°48'13.15" (39.803653) (436) 769-1017LEGEND: LONGITUDE =

110°47'44.92" (110.795811) SCALE DATE SURVEYED: DATE DRAWN:1 = 1000' 08-19-08 08-21-08L_=

so· SYMBOL (NAD 27) PARTY REFERENCES= PROPOSED WELL HEAD. LATlTUDE =

39°48'13.29" (39.803692) N.H. C.H. K.G. G.L.O. PLATA = SECTIONCORNERS LOCATED LONGITUDE =

110°47'42.35" (110.795097) WEATHER FILEWARM PIONEERNATURALRESOURCES USA,

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CERTIFICATION

I hereby certify that I, or someone under my direct supervision, have inspected thedrill site and access route proposed herein; that I am familiar with the conditions whichcurrently exist; that I have full knowledge, of state and federal laws applicable to thisoperation; that the statements made in this APD package are, to the best of myknowledge, true and correct; and that the work associated with the operations proposedherein will be performed in conformity with this APD package and the terms andconditions under which it is approved. I also certify that I, or the company I represent,am responsible for the operations conducted under this application. These statements aresubject to the provisions of 18 U.S.C. 1001 for the filing of false statements.

Executed this ary 2009.

Stephen chreck

Engineering Compliance SupervisorTitle

1401 17thSt - Ste 1200 - Denver, CO 80202Address

303-675-2782Telephone

stephen.schreck@pxd.com

ONSHOREORDERNO.1 NFIDENTIAL- TIGHTHOLEPioneerNaturalResourcesUSAInc.Jensen Fed #11C-10-12-10 Lease No.UTU-65948735' FNLand484' FWLNWNWSection10,T12S- R10E DRILLINGPROGRAMCarbonCounty,Utah Page 1

ONSHOREOIL&GASORDERNO.1ApprovalofOperationson Onshore

Federaland IndianOilandGas Leases

Allleaseand/orunitoperationswillbeconductedinsucha mannerthatfullcomplianceismadewithapplicablelaws,regulations(43CFR3100),OnshoreOilandGasOrderNo.1,andtheapprovedplanofoperations.Theoperatorisfullyresponsiblefortheactionsofhissubcontractors.Acopyoftheseconditionswillbe furnishedthefieldrepresentativetoinsurecompliance.

1. ESTIMATEDTOPSOFALLGEOLOGICGROUPS,FORMATIONS,MEMBERS,ORZONES

Theestimatedtopsofimportantgeologicmarkersareas follows:

Formation Depth Subsea

Colton Surface 7,215'

PriceRiver 2,680' 4,535'

Castlegate 3,325' 3,890'

Blackhawk 4,040' 3,175'

Kenilworth 4,790' 2,425'

Aberdeen 4,930' 2,285'

TD 5,500' 1,715'

2. ESTIMATEDDEPTHANDTHICKNESSOFOIL,GAS,WATER&OTHERMINERALZONES

Theestimateddepthsatwhichthetopandbottomoftheanticipatedwater,oil,gas orothermineralbearingformationsareexpectedtobe encounteredareas follows:

Substance Formation Depth Thickness

Coal Blackhawk 4,040' 750'

ONSHOREORDERNO.1 NFIDENTIAL- TIGHTHOLEPioneerNaturalResourcesUSAInc.Jensen Fed #11C-10-12-10 Lease No.UTU-65948735'FNLand484' FWLNWNWSection10,T12S- R10E DRILLINGPROGRAMCarbonCounty,Utah Page 2

Allfreshwaterandprospectivelyvaluablemineralsencounteredduringdrilling,willbe recordedbydepth and willbe cased andcemented.Whenpossible,water flowrateswillbe measuredandsampleswillbetakenandanalyzedwiththeresultsbeingsubmittedtotheBLM.Alloilandgasshowswillbe testedtodeterminecommercialpotential.

3. SPECIFICATIONSFORBLOWOUTPREVENTIONEQUIPMENTANDDIVERTERSYSTEMS

PioneerNaturalResourcesUSAInc.'sminimumspecificationsforpressurecontrolequipmentareasfollows:

RamType:3,000psiw.p.

BOPsystemswillbeconsistentwithAPIRP53andOnshoreOilandGasOrderNo.2. PressuretestsofthesurfacecasingandallBOPequipmentpotentiallysubjecttopressurewillbe conductedbeforedrillingthesurfacecasingshoe.Blowoutpreventercontrolswillbe installedpriortodrillingthesurfacecasingshoeandwillremaininuse untilthewelliscompletedorabandoned.Rampreventerswillbeinspectedandoperatedeachtrip(nomorethanoncea dayisnecessary),andannularpreventerswillbe inspectedandoperatedweeklytoensuregoodmechanicalworkingorder.Theseinspectionsshallbe recordedinthedrillinglogandinthedai\ydrillingreport.

Ramtypepreventersandassociatedequipmentshallbe testedtoapprovedstackworkingpressureif isolatedby testplugor to 70 percentof internalyieldpressureofcasing. Pressure shallbemaintainedforat least 10minutesoruntilrequirementsoftestare met,whicheveris longer. Ifa testplugis utilized,nobleed-offpressureisacceptable.Fora testnotutilizinga testplug,ifa declineinpressureofmorethan10 percentin30 minutesoccurs,thetestshallbe consideredtohavefailed.Valveoncasinghead belowtestplugshallbe openduringtestofBOPstack.

Annulartypepreventers(ifused)shallbe testedto50 percentofratedworkingpressure. Pressureshallbe maintainedat least 10minutesoruntilprovisionsoftestare met,whicheveris longer.

Valvesshallbe testedfromworkingpressuresideduringBOPEtestswithalldownstreamvalvesopen.

Whentestingthekilllinevalve(s)thecheckvalveshallbe heldopenortheballremoved.

ABOPEpitleveldrillshallbe conductedweeklyforeachdrillingcrew.

ONSHOREORDERNO.1 NFIDENTIAL- TIGHTHOLEPioneerNaturalResourcesUSAInc.Jensen Fed #11C-10-12-10 Lease No.UTU-65948735' FNLand484' FWLNWNWSection10,T12S- R10E DRILLINGPROGRAMCarbonCounty,Utah Page 3

TheBOPandrelatedequipmentshallmeettheminimumrequirementsofOnshoreOilandGasOrderNo.2 forequipmentandtestingrequirements,procedures,etc.,andindividualcomponentsshallbeoperableas designed. Chartrecordersshallbe usedforallpressuretests.

Pressuretestsshallapplytoallrelatedwellcontrolequipment.

Alloftheabovedescribedtestsand/ordrillsshallbe recordedin thedrillinglog. Test charts,withindividualtestresultsidentified,shallbe maintainedon locationwhiledrillingand shallbe madeavailabletoa BLMrepresentativeuponrequest.Pressuretestsshallapplytoallrelatedwellcontrolequipment.

a. ThesizeandratingoftheBOPstackisshownontheattacheddiagram.Althougha righasnotbeenchosentodrillthiswell,mostoftheequipmentforthisdepthofholeintheareausea 11",3,000psiworkingpressureblowoutpreventor.

b. Achokelineanda killlinearetobe properlyinstalled.The killlineis _n_ot tobe usedas afill-upline.

c. Theaccumulatorsystemshallhavea pressurecapacitytoprovideforrepeatedoperationofhydraulicpreventers.

d. Drillstringsafetyvalve(s),tofit_all toolsinthedrillstring,aretobe maintainedontherigfloorwhiledrillingoperationsare inprogress.

4. PROPOSEDCASINGPROGRAM

a. The proposedcasingandcementingprogramshallbe conductedas approvedtoprotectand/orisolateallusablewaterzones,potentiallyproductivezones, lostcirculationzones,abnormallypressuredzones, and anyprospectivelyvaluabledepositsof minerals.Anyisolatingmediumotherthancementshallreceiveapprovalpriortouse. Thecasingsettingdepthshallbe calculatedtopositionthecasingseat oppositea competentformationwhichwillcontainthe maximumpressure to which it willbe exposedduring normaldrillingoperations.Determinationofcasingsettingdepth shallbe based onallrelevantfactors,including;presencelabsenceof hydrocarbons;fracture gradients;usablewaterzones;formationpressures;lostcirculationzones;otherminerals;orotherunusualcharacteristics.A\\indicationsofusablewatershallbe reported.

ONSHOREORDERNO.1 NFIDENTIAL- TlGHTHOLEPioneerNaturalResourcesUSAInc.Jensen Fed #11C-10-12-10 Lease No.UTU-65948735' FNLand484' FWLNWNWSection10,T12S- R10E DRILLINGPROGRAMCarbonCounty,Utah Page 4

b. Casingcollarsshallhavea minimumclearanceof0.422inchesofallsidesinthehole/casingannulus,withrecognitionthatvariancescanbe grantedforjustifiedexceptions.

c. Allwaitingoncementtimesshallbe adequatetoachievea minimumof500psicompressivestrengthat thecasingshoepriortodrillingout.

d. Allcasingexcepttheconductorcasing,shallbe neworreconditionedandtestedusedcasingthatmeetsorexceedsAPIstandardsfornewcasing.

e. Thesurfacecasingshallbe cementedbacktosurfaceeitherduringtheprimarycementjoborby remedialcementing.

f. Allindicationsofusablewatershallbe reportedtotheauthorizedofficerpriortorunningthenextstringofcasingorbeforepluggingordersarerequested,whicheveroccursfirst.

g. Threecentralizerswillbe runonthebottomthreejointsofsurfacecasingwitha minimumofonecentralizerperjointstartingwiththeshoejoint.

h. Topplugsshallbe usedtoreducecontaminationofcementbydisplacementfluid.Abottomplugorotheracceptabletechnique,suchas a suitablepreflushfluid,innerstringcementmethod,etc.shallbe utilizedtohelpisolatethecementfromcontaminationbythemudfluidbeingdisplacedaheadofthecementslurry.

i. Allcasingstringsbelowtheconductorshallbe pressuretestedto0.22psiperfootofcasingstringlengthor1500psi,whicheverisgreater,but nottoexceed70 percentoftheminimuminternalyield.Ifpressuredeclinesmorethan10percentin30minutes,correctiveactionshallbe taken.

j. Onallexploratorywells,andonthatportionofanywellapprovedfora 3MBOPEsystemorgreater,a pressureintegritytestofeachcasingshoeshallbe performed.Formationat theshoeshallbe testedtoa minimumofthemudweightequivalentanticipatedtocontroltheformationpressuretothenextcasingdepthorat totaldepthofthewell. Thistestshallbeperformedbeforedrillingmorethan20feet ofnewhole.

ONSHOREORDERNO.1 NFIDENTIAL- TIGHTHOLEPioneerNaturalResourcesUSAInc.Jensen Fed #110-10-12-10 Lease No.UTU-65948735'FNLand484' FWLNWNWSection10,T12S- R10E DRILLINGPROGRAMCarbonCounty,Utah Page 5

k. Theproposedcasingprogramwillbe as follows:

Purpose Depth HoleSize 0.D. Weight Grade Type New/Used

Surface 0' - 600' 12-1/4" 8-5/8" 28# H40 ST&C New

Production O'- 5,500' 7-7/8" 5-1/2" 17# K55 LT&C New

Purpose Collapse Burst Tensile

Surface 1,640 2,470 317,868

Production 4,910 5,320 272,924

5. PROPOSEDCEMENTINGPROGRAM

a. Thecementprogramwillbe as follows:

Surface TypeandAmount

TOC@Surface 428sxClassG Cement,2%BWOCCalciumChloride,.25% bbis/sackCelloFlake,44.3%FreshWater,12.5ppg, 1.19cft/sk

Production TypeandAmount

TOC@500' Lead: 792sx35:65POZClassG, 12.5ppsP42, 5.9%P154,2.5%S1, 5%P20,0.25%pps P29,0.2%P46,11.5ppg, 1.17cft/skTail:283sx50:50POZClassG,3% P20,5,9%Pi54, 0.7%Pi67, 0.25%P65,0.2%P46,12.5ppg,1.19oft/sk

b. Aftercementingbutbeforecommencinganytest,thecasingstringshallstandcementeduntilthecementhas reacheda compressivestrengthofat least 500psiat theshoe. WOCtimeshallbe recordedinthedriller'slog.

c. Thefollowingreportsshallbe filedwiththeDistrictManagerwithin30 daysaftertheworkiscompleted.

ONSHOREORDERNO.1 NFIDENTIAL- TIGHTHOLEPioneerNaturalResourcesUSAInc.Jensen Fed #11C-10-12-10 Lease No.UTU-65948735' FNLand484' FWLNWNWSection10,T12S- R10E DRILLINGPROGRAMCarbonCounty,Utah Page 6

1. Progress reports,Form3160-5(formerly9-331)"SundryNoticesand ReportsonWells",mustincludecompleteinformationconcerning:

a. Settingofeachstringofcasing,showingthesize,grade,weightofcasingset, holesize,settingdepth,amountsandtypeofcementused, whethercementcirculatedor thetopof thecementbehindthecasing,depth ofcementingtoolsused,casingtestmethodandresults,and thedate workwas done. Showthespuddate onthefirstreportssubmitted.

b. Temperatureorbondlogsmustbe submittedforeachwellwherethecasingcementwasnotcirculatedtothesurface.

d. Auxiliaryequipmenttobe usedis as follows:

1. Kellycock2. Nobitfloatis deemednecessary.3. Asubwitha fullopeningvalve.

6. PROPOSEDCIRCULATINGMEDIUMORMEDIUMS

a. Theproposedcirculatingmediumstobe employedindrillingareas follows:

Interval MudType MudWt. Visc. FIL

O'-600' Air --- --- ---

600' - 5,500' AeratedWater - - - - - - - - -

Sufficientmudmaterialswillbe storedon locationtomaintainwellcontrolandcombatlostcirculationproblemsthatmightreasonablybe expected.

b. Duetopotentialforcontaminationofusablequalitywateraquifers,chromatesare bannedfromFederalleases.

ONSHOREORDERNO.1 NFIDENTIAL- TIGHTHOLEPioneerNaturalResourcesUSAInc.Jensen Fed #11C-10-12-10 Lease No.UTU-65948735' FNLand484' FWLNWNWSection10,T12S- R10E DRILLINGPROGRAMCarbonCounty,Utah Page 7

c. HazardoussubstancesspecificallylistedbytheEPAas a hazardouswasteordemonstratinga characteristicof a hazardous waste willnotbe used in drilling,testingor completionoperations.

7. PROPOSEDTESTING,LOGGING,ANDCORING

The anticipatedtypeandamountoftesting,loggingandcoringareas follows:

a. Nodrillstemtestsareanticipated.However,if DST's are run,thefollowingrequirementswillbe adheredto:

Initialopeningofdrillstemtesttoolsshallbe restrictedtodaylighthours unlessspecificapprovaltostartduringotherhoursisobtainedfromtheauthorizedofficer.However,DST'smaybe allowedtocontinueatnightifthetestwasinitiatedduringdaylighthoursandtherateofflowis stabilizedand ifadequatelightingis available(i.e.lightingwhichis adequateforvisibilityandvapor-proofforsafeoperations).Packerscanbe released,buttrippingshallnotbeginbeforedaylight,unlesspriorapprovalisobtainedfromtheauthorizedofficer.ClosedchamberDSTsmaybe accomplisheddayornight.

A DSTthatflowstothesurfacewithevidenceofhydrocarbonsshallbe eitherreversedoutofthetestingstringundercontrolledsurfaceconditions.Thiswouldinvolveprovidedsomemeansforreversecirculation.

Separationequipmentrequiredfortheanticipatedrecoveryshallbe properlyinstalledbeforea teststarts.

Allengineswithin100feetofthewellborethatarerequiredto"run"duringthetestshallhavesparkarrestersorwatercooledexhausts.

b. The loggingprogramwillconsistofthefollowing:A triplecombowithhighresolutionwillberunfromsurfacetoTD.

c. Nocoresareanticipated.

ONSHOREORDERNO.1 NFIDENTIAL- TIGHTHOLEPioneerNaturalResourcesUSAInc.Jensen Fed #11C-10-12-10 Lease No.UTU-65948735'FNLand484' FWLNWNWSection10,T12S- R10E DRILLINGPROGRAMCarbonCounty,Utah Page 8

d. Whetherthewellis completedas a dry hole or as a producer,"WellCompletionandRecompletionReportandLog"(Form3160-4)willbe submittednotlaterthan30 daysaftercompletionofthewelloraftercompletionofoperationsbeingperformed,inaccordancewith43 CFR 3164. Twocopiesof all logs,coredescriptions,coreanalyses,well-testdata,geologicsummaries,sampledescription,andallothersurveysordataobtainedandcompiledduringthedri\\ing,workover,and/orcompletionoperations,willbe filedwithform3160-4.Samples(cuttings,fluids,and/orgases)willbe submittedwhenrequestedbytheauthorizedofficer(AO).

e. Theanticipatedcompletionprogramwillbe determinedbased ongas shows.

8. EXPECTEDBOTTOMHOLEPRESSURE

a. Theexpectedmaximumbottomholepressureis 2500psi.

b. Nohydrogensulfidegas isanticipated.

c. As per OnshoreOrderNo.6, III,A,2.b.,if hydrogensulfideis presentthe"operatorshallinitiallytesttheH2Sconcentrationofthegas streamforeachwellor productionfacility..."Submitthe resultsof thistestwithin30 days offilingForm3160-4,"WellCompletionorRecompletionReportandLog".

9. OTHERINFORMATIONANDNOTIFICATIONREQUIREMENTS

a. Shouldthewellbe successfullycompletedforproduction,theAOwillbe notifiedwhenthewellisplacedina producingstatus.Suchnotificationwillbesentbytelegramorotherwrittencommunications,notlaterthan5 days followingthedate on whichthewellis placedonproduction.

b. Productiondata shallbe reportedto the MMSpursuant to 30 CFR 216.5 usingformMMS/3160.

c. Thedate onwhichproductioniscommencedorresumedwillbeconstruedforoilwellsas thedate onwhichliquidhydrocarbonsarefirstsoldorshippedfroma temporarystoragefacility,suchas a testtank,andforwhicha runticketis requiredtobe generatedor,thedate on

ONSHOREORDERNO.1 NFIDENTIAL- TlGHTHOLEPioneerNaturalResourcesUSAInc.Jensen Fed #11C-10-12-10 Lease No.UTU-65948735'FNLand484'FWLNWNWSection10,T12S- R10E DRILLINGPROGRAMCarbonCounty,Utah Page 9

whichliquidhydrocarbonsarefirstproducedintoa permanentstoragefacility,whicheverfirstoccurs;and,forgaswellsas thedate onwhichassociatedliquidhydrocarbonsarefirstsoldorshippedfroma temporarystoragefacility,suchas a testtank,andforwhicha runticketis requiredtobe generatedorthedate onwhichgas is firstmeasuredthroughpermanentmeteringfacilities,whicheverfirstoccurs.

d. PursuanttoNTL-4A,lessees oroperatorsareauthorizedtovent/flaregasduringinitialwellevaluationtests,notexceedinga periodof30 days ortheproductionof50 MMCFofgas,whicheveroccursfirst.Anapplicationmustbe filedwiththeDistrictEngineerandapprovalreceived,foranyventing/flaringofgasbeyondtheinitial30 dayorauthorizedtestperiod.

e. Gasproducedfromthiswellmaynotbe ventedorflaredbeyondan initialauthorizedtestperiodof30 days or50 MMCFfollowingitscompletion,whicheveroccursfirst,withoutthepriorwrittenapprovaloftheAuthorizedOfficer. Shouldgas be vented or flaredwithoutapprovalbeyondtheauthorizedtestperiod,theoperatormaybe directedtoshut-inthewelluntilthegas canbe capturedortheoperatorshallbe requiredtocompensatethelessorforthatportionofthegasventedorflaredwithoutapprovalwhichis determinedtohave beenavoidablylost.

f. Aschematicfacilitiesdiagramas requiredby43CFR3162.7-2,3162.7-3and3162.7-4shallbe submittedtotheappropriateDistrictOfficewithin30daysofinstallationorfirstproduction,whicheveroccursfirst. Allsite securityregulationsas specifiedin 43 CFR3162.7andOnshoreOrderNo.3shallbe adheredto.Allproductlinesenteringandleavinghydrocarbonstoragetankswillbe effectivelysealedinaccordancewith43 CFR3162.7-4.

g. Section102(b)(3)of the Federal Oiland Gas RoyaltyManagementAct of 1982, asimplementedbytheapplicableprovisionsoftheoperatingregulationsatTitle43CFR3162.4-1(c),requiresthat"notlaterthanthe5thbusinessday afteranywellbegins productiononwhichroyaltyis due anywhereon a lease siteor allocatedto a lease site,or resumesproductioninthecaseofa wellwhichhas been offproductionformorethan90 days,theoperatorshallnotifytheauthorizedofficerby letterorsundrynotice,Form3160-5,ororallytobe followedbya letterorsundrynotice,ofthedate onwhichsuchproductionhas begunorresumed."

Ifyoufailtocomplywiththisrequirementinthemannerandtimeallowed,youshallbe liablefora civilpenaltyofupto$10,000perviolationforeachday suchviolationcontinues,nottoexceeda maximumof20 days. See Section109(c)(3)oftheFederalOilandGasRoyaltyManagementActof1982andtheimplementingregulationsatTitle43CFR3162.4-1(b)(5)(ii).

O OONSHOREORDERNO.1 CONFIDENTIAL- TIGHTHOLEPioneerNaturalResourcesUSAInc.Jensen Fed #11C-10-12-10 Lease No.UTU-65948735' FNLand484'FWLNWNWSection10,T12S- R10E DRILLINGPROGRAMCarbonCounty,Utah Page 10

h. Drillingoperationsareplannedtocommenceuponapprovalofthisapplication.

i. Itis anticipatedthatthedrillingofthiswellwilltakeapproximately10days.

j. Nolocationwillbe constructedormoved,nowellwillbe plugged,andnodrillingorworkoverequipmentwillbe removedfroma wellto be placedin a suspendedstatuswithoutpriorapprovaloftheAO. Ifoperationsare tobe suspended,priorapprovaloftheAOwillbeobtainedandnotificationgivenbeforeresumptionofoperations.

k. ImmediateReport Spills,blowouts,fires,leaks,accidents,oranyotherunusualoccurrencesshallbe promptlyreportedinaccordancewiththerequirementsofNTL-3Aoritsrevision.

I. Ifa replacementrigiscontemplatedforcompletionoperations,a "SundryNotice"Form3160-5 tothateffectwillbe filed,forpriorapprovaloftheAO,andallconditionsofthisapprovedplanareapplicableduringalloperationsconductedwiththereplacementrig.

m. PursuanttoOnshoreOrderNo.7,withtheapprovaloftheDistrictEngineer,producedwatermaybe temporarilydisposedofintounlinedpitsfora periodofupto90 days. Duringtheperiodso authorized,anapplicationforapprovalofthepermanentdisposalmethod,alongwiththe requiredwateranalysisandotherinformation,mustbe submittedtotheDistrictEngineer.

n. Nowellabandonmentoperationswillbe commencedwithoutthepriorapprovaloftheAO.Inthecase ofnewlydrilleddryholesorfailures,and inemergencysituations,oralapprovalwillbe obtainedfromtheSO.A"SubsequentReportofAbandonment"Form3160-5,willbefiledwiththeAOwithin30daysfollowingcompletionofthewellforabandonment.Thisreportwillindicatewhereplugswere placedandthecurrentstatusofsurfacerestoration.Finalabandonmentwillnot be approveduntilthe surfacereclamationworkrequiredby theapprovedAPDorapprovedabandonmentnoticehas been completedtothesatisfactionoftheAOorhisrepresentative.ortheappropriateSurfaceManagingAgency.

Pioneer Minimum Class 3 AnnularBlow4ut Preventer RequirementsAII 3000 PSI WP Equipment(Except Casinghead & Spools as NotedBelow

Annular iPreventer

rWelihead Equipman :r Me Sow

ProtectïvePro5le: "I

1000'-9500'

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Y Bait y gayVaive yglyg

XMP"i 20Wrag

8 5/8" 24#3-55 ST&C

ONSHOREORDERNO.1 C IDENTIAL- TIGHTHOLEPioneerNaturalResourcesUSA,Inc.Jensen Fed #11C-10-12-10 Lease No.UTU-65948735'FNLand484'FWLNWNWSection10,T12S- R10E SURFACEUSEPLANCarbonCounty,Utah Page 1

ONSHOREOIL&GASORDERNO.1

TheonsiteinspectionforthesubjectwellwasconductedonThursday,December4, 2008at approximately10:00a.m. Weatherconditionswere coolandovercast.Inattendanceat theonsiteinspectionwerethefollowingindividuals:

RandySmith FieldTechnician PermitcoInc.DonStephens NRS BureauofLandManagementBrandonBowthorpe Surveyor UintahEngineering&LandSurveyingKagenDavis SurveyorHand UintahEngineering&LandSurveyingScottSegmiller DirtContractorDallasChristiansen OperationsForeman PioneerNaturalResourcesUSA,Inc.

1. EXISTINGROADS

a. Theproposedwellsiteis locatedapproximately10.85milesnortheastofHelper,UT

b. DirectionstothelocationfromHelper,Utahareas follows:

Proceed northon Highway157 for 2.7 miles. Turn righton Highway33 and proceednortheastfor7.9 milestotheEmmaParkturnoff.Turnleftandproceednorthwest0.3miles.Continuewestontoan existingroadthatneedsupgradingfor0.6 miles.Turnleftontotheproposedaccessandproceedsoutheast120'untilreachingtheproposedlocation.

c. Forlocationofaccessroadswithina 2-Mileradius,see MapsA&B.

d. Improvementtoexistingmainroadswillnotbe required.

e. Allexistingroadswillbe maintainedandkeptingoodrepairduringalldrillingandcompletionoperationsassociatedwiththiswell.

f. ExistingroadsandnewlyconstructedroadsonsurfaceunderthejurisdictionofanySurfaceManagingAgencyshallbe maintainedinaccordancewiththestandardsoftheSMA.

2. NEWORRECONSTRUCTEDACCESSROADS

a. There willbe approximately120 feet ofnewaccess to be constructedand 0.6 milesofexistingaccesstobe upgraded.

b. Themaximumgradeoftheproposedconstructionwillbe approximately8%.

c. Nolowwatercrossingswillbe installed.

d. One18"culvertwillbe installedalongtheproposedaccessas shownonMapB. p¢ Pee

ONSHOREORDERNO.1 CO ENTIAL- TlGHTHOLEPioneerNaturalResourcesUSA,Inc.Jensen Fed #11C-10-12-10 Lease No.UTU-65948735'FNLand484' FWLNWNWSection10,T12S - R10E SURFACEUSEPLANCarbonCounty,Utah Page 2

e. Theuseofsurfacingmaterialisnotanticipated,howeveritmaybe necessarydependingonweatherconditions.

f. Nocattleguardswillbe necessary.

g. Surfacedisturbanceandvehiculartravelwillbelimitedtotheapprovedlocationandapprovedaccessroute.Anyadditionalareaneededwillbe approvedinadvance.

h. Access roadsand surfacedisturbingactivitieswillconformto standardsoutlinedin theBureauofLandManagementpublication:SurfaceOperatingStandardsforOilandGasExplorationandDevelopment,(1989).

i. The roadwillbe constructedlupgradedtomeetthestandardsoftheanticipatedtrafficflowandallweatherroadrequirements.Constructionlupgradingshallincludeditching,draining,graveling,crowingandcappingtheroadbedas necessarytoprovideawellconstructedsaferoad. Priortoupgrading,theroadshallbe clearedofanysnowcoverandallowedtodrycompletely.Travelingoffthe30 foot right-of-waywillnot be allowed.Road drainagecrossingsshallbe of thetypicaldrycreekdrainagecrossingtype. Crossingsshallbedesignedso theywillnotcausesiltationoraccumulationofdebrisinthedrainagecrossingnorshallthedrainagesbe blockedby theroadbed.Erosionofdrainageditchesby runoffwatershallbe preventedbydivertingwateroffat frequentintervalsby meansofcutouts.Upgradingshallnotbe allowedduringmuddyconditions.Shouldmudholesdevelop,theyshallbe filledinanddetoursaroundthemavoided.

j. NochemicalssubjecttoreportingunderSARATitleIllinanamountequaltoorgreaterthan10,000pounds willbe used,produced,stored,transported,or disposed ofannuallyinassociationwiththedrillingofthiswell.Furthermore,noextremelyhazardoussubstances,as definedin40 CFR355, inthresholdplanningquantities,willbe used,produced,stored,transported,ordisposedofinassociationwiththedri\\\ngofthiswe\\.

k. Noroadrightofwayis requiredsinceallroadsare locatedwithinthelease boundaries,orlocatedonprivatesurfaceownedbyJames Jensen.

3. LOCATIONOFEXISTINGWELLSINTHEAREA(SeeMapC)

a. Waterwells- none

b. Injectionwells- none

c. Producingwells- twelve

d. Drillingwells- none

e. Abandonedwells- none

f. Shut inwells- none

ONSHOREORDERNO.1 NFlDENTIAL- TIGHTHOLEPioneerNaturalResourcesUSA,Inc.Jensen Fed #11C-10-12-10 Lease No.UTU-65948735' FNLand484'FWLNWNWSection10,T12S- R10E SURFACEUSEPLANCarbonCounty,Utah Page 3

4. LOCATIONOFEXISTINGANDIORPROPOSEDPRODUCTIONFACILITIES

a. Ifthewellisproductive,a schematicfacilitydesignwillbe submittedtotheBLMforapprovalofanyproductionfacilities,

b. Anyapprovedpermanentstructures(onsiteforsixmonthsorlonger)constructedorinstalled(includingoilwellpumpjacks)willbe painteda neutralcolortoblendwiththesurroundingenvironment.The proposedcolorfor thissite is Beetle unless otherwisestipulatedbytheBLM.FacilitiesrequiredtocomplywiththeOccupationalSafetyandHea\thAct(OSHA)willbe excluded.

c. Ifstoragefacilities/tankbatteriesareconstructedonthislease,thefacilitylbatteryorthewellpadshallbesurroundedbyacontainmentdikeofsufficientcapacitytocontainata minimum,the entirecontentsof the largest tankwithinthefaci\\tylbattery,unlessmorestringentprotectiverequirementsaredeemednecessarybytheauthorizedofficer.

d. Allloadinglineswillbe placedinsidethebermsurroundingthetankbattery.

e. Gasmeterrunsforeachwellwillbe locatedwithin500feetofthewellhead.Thegasflow\\newillbe buriedor anchoreddownfromthewellheadtotheseparator.Meterrunswillbehousedand/orfenced.

f. Theoilandgasmeasurementfacilitieswillbe installedonthewelllocation.Theoilandgasmeterswillbe calibratedinplacepriortoanydeliveries.Tests formeteraccuracywil\beconductedmonthlyforthefirstthreemonthsonnewmeterinstallationsandat leastquarterlythereafter.TheAOwillbe providedwitha date andtimefortheinitialmetercalibrationandallfuturemeterprovingschedules.Acopyofthemetercalibrationreportswillbe submittedtotheMoabFieldOffice.AllmetermeasurementfacilitieswillconformwithOnshoreOilandGas OrderNo.4 for\iquidhydrocarbonsandOnshoreOilandGasOrderNo.5 fornaturalgasmeasurement.

g. Ifatanytimethefacilitieslocatedonpubliclandandauthorizedbythetermsoftheleaseareno longer includedin the lease (due to a contractionin theunitor otherlease or unitboundarychange),BLMwillprocessa changeinauthorizationtotheappropriatestatute.The authorizationwillbe subjectto appropriaterentalor otherfinancialobligationasdeterminedbytheauthorizedofficer.

h. Anynecessarypitswillbe properlyfencedtopreventanywildlifeentry.

i. Allsitesecurityguidelinesidentifiedin43 CFR3162.7regulationswillbe adheredto.

j. Alloff-leasestorage,off-leasemeasurement,orcomminglingon-leaseoroff-leasewillhavepriorwrittenapprovalfromtheDistrictManager.

k. Allaccess roadswillbe maintainedas necessaryto preventerosionand accommodateyear-roundtraffic.

ONSHOREORDERNO.1 FIDENTIAL- TIGHTHOLEPioneerNaturalResourcesUSA,Inc.Jensen Fed #11C-10-12-10 Lease No.UTU-65948735' FNLand484'FWLNWNWSection10,T12S - R10E SURFACEUSEPLANCarbonCounty,Utah Page 4

l. The roadwillbe maintainedina safeuseablecondition.

m. Agasflowlineisproposedadjacenttotheaccessroad.Itwillbe a totallengthof49feetandwilltieintotheproposed#41C-9-12-10flowline. Foradditionalpipelinedata - see pipelinedata sheetattached.

5. LOCATIONANDTYPEOFWATERSUPPLY

a. Allwaterneededfordrillingpurposeswillbe obtainedfromthemunicipalwatersupplyfromHelper,UT.

b. Waterneededforoperationswillbe properlyandlegallyobtainedaccordingtoState waterlaws.

c. Nowaterwellswillbe drilled.

6. CONSTRUCTIONMATERIALS

a. Surfaceandsubsoilmaterialsintheimmediateareaofthewellpadandaccessroadwillbeutilized.

b. Anygravelusedwillbe obtainedfroma privateorcommercialsource.

c. AnyuseofmaterialsunderBLMjurisdictionwillconformwith43CFR3610.2.3.Constructionmaterialwillnotbe locatedon lease.

d. Noconstructionmaterialswillbe removedfromFederalland.

7. METHODSOFHANDLINGWASTEDISPOSAL

a. Thereservepitwillbe constructedsoas nottoleak,break,orallowdischarge.The reservepitwillbe linedwitha minimum10milplasticliner.

b. Thereservepitwillbe constructedofsufficientsizeandcapacityforthenecessaryfluidsfordrillingand to containany runofffromthedrillsite. Pits willnotbe constructedwithinintermittentorperennialstreamchannels.

c. Notrash,scrappipe,etc.,thatcouldpuncturethelinerwillbe disposedofinthepit.

d. Thereservepitwillbeconstructedinundisturbedmaterialandbelowthenaturalgroundlevel.

e. Alldrillingfluidswillbe containedinthereservepit. Allappropriatemeasureswillbe takentoassurethatleakagethroughthereservepitdoes notoccurandthatfluidsarenotallowed

ONSHOREORDERNO.1 FIDENTIAL- TIGHTHOLEPioneerNaturalResourcesUSA,Inc.Jensen Fed #11C-10-12-10 Lease No.UTU-65948735' FNLand484' FWLNWNWSection10,T12S- R10E SURFACEUSEPLANCarbonCounty,Utah Page 5

tooverflow.Aminimum2-footfreeboardwillbe maintainedinthepitatalltimesduringthedrillingoperationandthepitwillbe fencedduringdrillingandcompletionoperations.

f. Burningofgarbageanddebrisisprohibited.Alltrashwillbe containedina trashcageanditscontentsperiodicallydisposedofatanapprovedrefusefacility.

g. Drillcuttingsaretobe containedandburiedinthereservepit.

h Anysaltsand/orchemicalswhicharean integralpartofthedrillingsystemwillbe disposedofinthesamemanneras thedrillingfluid.

i. Sanitaryfacilitiesarerequiredonsiteatalltimesduringoperations.Sewagewillbe placedina portablechemicaltoiletorholdingtankanddisposedofinaccordancewithstateandcountyregulations.Theinstallationoffacilities,otherthanselfcontainedchemicaltoilets,issubjecttoStateandBLMapproval.

j The producedfluids(otherthanwater)willbe producedintoa testtankuntilsuchtimeasconstructionofproductionfacilitiesis completed.Anyspillsofoil,gas saltwaterorotherproducedfluidswillbe cleanedupandremoved.

8. ANCILLARYFACILITIES

Therearenoairstrips,camps,orotherfacilitiesplannedduringthedrillingoftheproposedwell.

9. WELLSITELAYOUT

a. Sectioncorners,surveymarkersandclaimcornersintheprojectareawillbe locatedandflagged. The removalordisturbanceof identifiedmarkerswillbe approvedbytheproperauthority.

b. Noconstructionoperationsmaybeginpriortoapproval.Anymodificationstoapprovedplansarealsosubjecttoreviewandapproval.

c. A pre-constructionmeetingincludingthe responsiblecompanyrepresentative(s)andcontractorsmust be conductedat theprojectsite priorto commencementof surface-disturbingactivities.Thepadandroadworkmustbeconstruction-stakedpriortothismeeting.

d. TheprojectengineerandsurveyorsarecertifiedbytheStateinwhichtheyresideormaintaintheirbusiness.

e. Allsurfacedisturbingactivities,includingreclamation,willbe supervisedby a qualified,responsibleofficialorrepresentativeofPioneerwhoisawareofthetermsandconditionsoftheAPDandspecificationsintheapprovedplans.

ONSHOREORDERNO.1 FIDENTIAL- TIGHTHOLEPioneerNaturalResourcesUSA,Inc.Jensen Fed #11C-10-12-10 Lease No.UTU-65948735' FNLand484' FWLNWNWSection10,T12S- R10E SURFACEUSEPLANCarbonCounty,Utah Page 6

f. Allcutandfillslopeswillbe suchthatstabilitycanbe maintainedforthelifeoftheactivity.Cutandfillslopeswillbe constructedas follows:

HeightofSlope Slope0-5feet 3:16-10feet 2:1over10feet 1-1/2:1

g. Allfillswillbe free fromvegetativematerials.

h. Ifthewellis productive,theworkingsurfaceofthedrillsitewillbe surfacedwithcrushedgraveltoa depthsufficienttosupportanticipatedloadsthroughoutthelifeofthewell.Usuallya depthof6 inchesofgravelis anticipated.

i. Theditchwillbe locatedat thebase ofthecutslopeandaroundthetoeofthefillslopes.Astrawdikewillbe constructedintheditchoutflowtotrapanysedimentproducedfromtherawslopes.

j. Abermwillbe constructedaroundtheperimeterofthesitetocontainallprecipitation,spills,andotherfluidsfromleavingthesite. The bermwillbe a minimumof18 incheshigh,12incheswideat thetop,andhaving1-1/2:1sideslopes.The sitesurfacewillbe graded todraintothereservepit.Thedrainagepatterntobeconstructedwillbe modifiedforeachsite,dependingonthesitespecificconditions.

l. The reservepitwillbe locatedonthesouthsideofthelocation.

m. Thestockpiledtopsoil(first6 inchesormaximumavailable)willbestoredalongthesouthsideofthelocationas shownonthelocationlayout.Alltopsoilmustbe strippedfromareastobedisturbed and stockpiledfor reclamationin such a wayas to preventsoil loss andcontamination.

n. See Figure1 fororientationofrig.Crosssectionsofdrillpad areshownonFigure2. CutsandfillsareshownonFigure1.

o. The locationof mudtanks;reservepit,trashcage; pipe racks;livingfacilitiesand soilstockpileswillbe shownonFigure1.

p. Allpitswillbe fencedandflaggedtopreventwildlifeentry.

q. The reservepitfencing(sheepfence)willbe onthreesidesduringdrillingoperationsandonthefourthsidewhentherigmovesoffthelocation.Pitswillbe fencedandmaintaineduntilcleanup.

ONSHOREORDERNO.1 NFIDENTIAL- TIGHTHOLEPioneerNaturalResourcesUSA,Inc.Jensen Fed #11C-10-12-10 Lease No.UTU-65948735' FNLand484'FWLNWNWSection10,T12S- R10E SURFACEUSEPLANCarbonCounty,Utah Page 7

10. PLANSFORRECLAMATIONOFTHESURFACE

DryHole

a. Rehabilitationoftheentiresitewillbe requiredandwillcommenceas soonas possibleafterthedrillingiscomplete.Thesitewillbe restoredas nearlypracticaltoitsoriginalcondition.Cutandfillslopeswillbe reducedandgradedtoconformtotheadjacentterrain.

b. Drainageswillbe reestablishedandtemporarymeasureswillberequiredtopreventerosiontothesiteuntilvegetationis established.

c. Afterfinalgradingandbeforethereplacementoftopsoil,theentiresurfaceofthesiteshallbe scarifiedtoeliminateslippagesurfacesandtopromoterootpenetration.Topsoilwillthenbe spreadoverthesitetoachieveanapproximateuniform,stablethicknessconsistentwiththeestablishedcontours.

d. Atemporaryfence (letdownfence)willbe constructedaroundthesitetopreventcontinueduseuntiltherequiredreclamationstandardsaresuccessfullyachieved.Thefencewillthenbe removed.

e. Ingeneral,thedisturbedareaswillbe consideredadequatelyrevegetatedwhenat least90percentoftheoriginalgroundoveris re-establishedover90 percentoftheseededarea,withinthreeyears of planting,consistingof seeded and desirablespecies. Maximumallowablenon-noxiousweedsis10percentofthetotalgroundcoveratanytime.Nonoxiousweeds willbe allowedon thesite;theymustbe treatedas theyoccur. The operatorisresponsiblefor maintenanceof reclamationfacilitiessuch as fences, barricades andtemporarydrainagestructuresuntilthedesired reclaimedconditionsare achieved.Ifthedesiredgroundcoverisnotestablishedattheendofeach3 yearperiod,ananalysisofwhytheareashas notrecoveredwillbe performedbytheoperatorandadditionaltreatmentandseedingwillbe requiredbased ontheresultsoftheanalysis.

f. Atsuchtimeas thewellis pluggedandabandoned,theoperatorshallsubmita subsequentreportofabandonment.

InterimReclamation

g. Interimreclamationwillincludethefollowing,at a minimum:

1. Backfillingandre-contouringofreservepit;2. Recontouringofwellpadtoreducesizetothatneededforproductionandworkover

operations;3. Reductionofcutandfillslopeswherepossible;4. Replacementoftopsoilonre-contouredareas5. Re-seedingofreclaimedareasandanytopsoilpilesleftforfinalreclamationofthe

wellpad.

ONSHOREORDERNO.1 FIDENTIAL- TIGHTHOLEPioneerNaturalResourcesUSA,Inc.Jensen Fed #110-10-12-10 Lease No.UTU-65948735'FNLand484'FWLNWNWSection10,T12S- R10E SURFACEUSEPLANCarbonCounty,Utah Page 8

AdditionalReclamationMeasruresforInterimandProductionLocations

h. Sitereclamationforproducingwellswillbeaccomplishedforportionsofthesitewhicharenotrequiredfor thecontinuedoperationof thewell. Alldisturbedsurfacewillbe treatedtopreventerosionandtocomplementtheestheticsofthearea.

i. Immediatelyuponwellcompletion,thelocationandsurroundingareawillbe clearedofallunusedtubing,equipment,debris,materials,trashandjunknotrequiredforproduction,

j. Immediatelyuponwell completion,any hydrocarbonson the pit shall be removedinaccordancewith43 CFR3162.7-1.

k. Theplastic/nylonreinforcedlinershallbetornandperforatedbeforebackfillingofthereservepit.

I. Attheendofdrillingoperations,drillingfluidswillbe hauledtoanapproveddisposalsite.Allpollutingsubstancesorcontaminatedmaterials,suchas oil,oil-saturatedsoils,andgravel,willbe buriedwitha minimumof2 feetofcleansoilas coverorbe removed.

m. The reservepitmustbe drybeforeitisbackfilledandreclaimed.Oncethereservepitisdry,thereservepitandthatportionofthelocationnotneededforproductionfacilitiesloperationswillbe recontouredtotheapproximatenaturalcontours.Methodsfordryingthepit,otherthannaturalevaporation,aresubjectto BLMapproval.

n. Thecutandfillslopesandallotherdisturbedareasnotneededfortheproductionoperationwillbe topsoiledandrevegetated.Thebermwillbe removedandthesitegradedtodrain.

o. Stockpiledtopsoilwillbe redistributedevenlyoverthedisturbedareaupon reclamation.

p. The site willbe seeded and/orplantedas prescribedby the BLM. Nutrientsand soilamendmentswillbe appliedtotheredistributedsurfacesoillateras necessarytomeettherevegetationrequirements.Aseedmixwillbe attachedtotheConditionsofApprovalbytheBLM.

11. SURFACEOWNERSHIP

AccessRoads - The majorityoftheaccessroadsareonprivatesurfaceownedbyJames Jensen.

Wellpad - Thewellpad is locatedon landsmanagedbytheBLM.

ONSHOREORDERNO.1 FIDENTIAL- TIGHTHOLEPioneerNaturalResourcesUSA,Inc.Jensen Fed #11C-10-12-10 Lease No.UTU-65948735'FNLand484' FWLNWNWSection10,T12S- R10E SURFACEUSEPLANCarbonCounty,Utah Page 9

12. OTHERINFORMATION

a. AClassIllarcheologicalsurveywasconductedbySenco-Phenix.Fourisolatedfindingswerelocated,howevernonearerecommendedfornominationtotheNationalHisoricRegisterofHistoricPlaces. Acopyofthisreportisattached.

b. A paleontologicalevaluationwas conductedbyAldenHamblinonOctober22, 2008. Nosignificantresourceswerefound. Acopyofthisreportis attached.

c. Theoperatorisresponsibleforinformingallpersonsintheareaswhoareassociatedwiththisproject that theywillbe subjectto prosecutionfor knowinglydisturbinghistoricorarchaeologicalsites,or forcollectingartifacts.Ifhistoricor archaeologicalmaterialsareuncoveredduringconstruction,theoperatoris to immediatelystopworkthatmightfurtherdisturbsuchmaterials,andcontacttheauthorizedofficer(AO).WithinfiveworkingdaystheAOwillinformtheoperatoras to:-whether thematerialsappeareligiblefortheNationalRegisterofHistoricPlaces;

-the mitigationmeasurestheoperatorwilllikelyhavetoundertakebeforethesitecanbe used(assuminginsitupreservationis notnecessary);and

-a timeframefortheAOtocompleteanexpeditedreviewunder36 CFR800.11toconfirm,throughtheStateHistoricPreservationOfficer,thatthefindingsoftheAOarecorrectandthatmitigationisappropriate.Iftheoperatorwishes,atanytime,torelocateactivitiestoavoidtheexpenseofmitigationand/orthedelaysassociatedwiththisprocess,theAOwillassumeresponsibilityforwhateverrecordationandstabilizationoftheexposedmaterialsmayberequired.Otherwise,theoperatorwillbe responsibleformitigationcosts.TheAOwillprovidetechnicalandproceduralguidelinesfortheconductofmitigation.UponverificationfromtheAOthatrequiredmitigationhas beencompleted,theoperatorwillthenbe allowedtoresumeconstruction.

d. Alllease and/orunitoperationswillbe conductedinsucha mannerthatfullcomplianceismadewithallapplicablelaws,regulations,OnshoreOilandGasOrders,theapprovedplanofoperations,andanyapplicableNoticetoLessees. Theoperatorisfullyresponsiblefortheactionsof his subcontractors.A copyof theseconditionswillbe furnishedthe fieldrepresentativetoinsurecompliance.

e. AcompletecopyoftheapprovedAPDshallbeonlocationduringconstructionofthelocationanddrillingactivities.

f. Therewillbe nodeviationfromtheproposeddrillingand/orworkoverprogramwithoutpriorapprovalfromtheAO. Safedrillingandoperatingpracticesmustbe observed.Allwells,whetherdrilling,producing,suspended,orabandonedwillbe identifiedinaccordancewith43CFR3162.h.

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g. "SundryNoticeandReportonWells"(From3160-5)willbe filedforapprovalforallchangesofplansandotheroperationsinaccordancewith43 CFR3162.3-2.

h. Thispermitwillbe validfora periodoftwoyears fromthedate ofapproval.Anextensionperiodmaybe granted,ifrequested,priortotheexpirationoftheoriginalapprovalperiod.

i. TheoperatororhiscontractorshallcontacttheBLMat least 48 hourspriortoconstructionactivities.

j. Firesuppressionequipmentmustbeavailabletoallpersonnelontheprojectsite.Equipmentwillincludea minimumofonehandtoolpercrewmemberconsistingofshovels,pulaskis,andchainsawsandoneproperlyratedfireextinguisherpervehicleand/orinternalcombustionengine.

k. Pioneerwillbe heldresponsiblefordamageandsuppressioncostsforfiresstartedasa resultofoperations.Firesmustbe reportedtotheBLMas soonas possible.

l. Allaccidentsormishapsresultinginresourcedamageand/orseriouspersonalinjurymustbereportedtotheBLMas soonas possible.

m. Harassmentofwildlifeandlivestockis prohibited.

CONTACTINFORMATION

PermitMatters Drilling&CompletionMattersPERMITC0INC. Pioneer NaturalResources USA,Inc.P.O.Box99 1401- 17thStreet,Suite1200Eastlake,CO80614 Denver,CO80202303/857-9999(0) 303/675-2782(0)303/450-9200(F) 303/294-1275(F)LisaSmith StephenSchreck- RegulatoryComplianceSupervisor

PIONEERNATURALRESOURCES

October 1, 2008

BLM - Price Field Office125 South 600 WestPrice, Utah 84501

Attn: Roger BankertField Manager

RE: Verification of Surface Use AgreementJensen Federal 1lC-10-12-10Tl2S-Rl0E-Sec. 10: NW/4NW/4

Carbon County, Utah

Gentlemen:

Pioneer Natural Resources USA, Inc.'s (Pioneer) predecessor in interest Evergreen Resources, Inc., andJames T. Jensen, Jerry Jensen and Dix Jensen (hereinafter collectively referred to as the "Jensens")entered into a global Access, Surface Damage and Use Agreement on July 12, 2004, covering all landsin Carbon County, Utah, in which the Jensen's owned the surface estate, as further described on Exhibit"A" attached hereto. Prior to the commencement of any field activity related to a well, Pioneer is tosubmit a plat designating the location of the Well and related facilities to the Jensens. Pioneer hasmailed the Jensens surveys showing the proposed location, facilities and the road and pipeline access forthe Jensen Federal 1lC-10-12-10 well. Verbal approval was received from James Jensen on September30, 2008 for the well

I certify that there is a global Access, Surface Damage and Use Agreement in place with the Jensenscovering their surface estate in Carbon County, Utah and verbal approval has been received for theJensen Federal llC-10-12-10 we1L

Please consider this letter as sufficient notification that there is a surface use agreement in place andproceed with the approval of the APD, If you have any questions concerning the above, please contactSharon Logan at 303-675-2691 at your earliest convenience.

Very truly yours,Pioneer Natural Resources USA, Inc.

Betty BrownsonAttorney-in-Fact

Attachment

1401 17 Street. Suite 1200, Denver Colorado 80202 - MAIN

EXHIBIT "A"

Attached to and made a part of that certain Access, SurfaceDamage andEasement Agreement dated July 12, 2004 by and between James T. Jensen,

Jerry Jenson, and Dix Jenson, Owners, and Evergreen Resources, Inc., Operator.

This exhibit is intended to cover all lands in Carbon County,Utah, in which Owrier ownsthe surface estate, includingbut not limited to the following lands:

Township 12 South, Range 9 EastSection 1: W/2SE/4, S/2SW/4Section 2: Lots 1, 2, 3, 4, N/2SWl4, SE/4Township 12 South, Range 10 EastSection 3: SWl4, W/2SE/4Section 4: Lots 1, 2, 3, 4, S/2Section 5: Lots 2, 3, 4, SW/4, NW/4SE/4, S/2SE/4Section 6: Lots I, 2, W/2SW/4, SE/4Section 7: Lot 3, E/2SW/4, SE/4, N/2NE/4Section 8: N/2N/2, S/2Section 9: N/2N/2, SE/4NE/4, S/2Section 10: S/2NW/4, S/2, NE/4, NWl4NW/4Section 15: W/2NE/4, NE/4SW/4, SW/4SW/4Section 17: N/2, N/2S/2, SW/4SW/4, SE/4SE/4Section 18: Lot 1, NE/4NW/4, NE/4, N/2SE/4, SE/4SE/4Section 19: N/2Section 20: N/2

Acknowledged for Identification:

Ta s T. Jensen

J Jensen

Dix Jensen

Pioneer Natural Resources USA, Inc.successor in interest to Evergreen Resources, Inc.

Betty B 'nson,

PIONEER NATURAL RESOURCES USA, INC.JENSEN FEDERAL #11C-10-12-10

LOCATED IN CARBON COUNTY, UTAHSECTION 10, T12S, R10E, S.L.B.&M.

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

PROPOSED ACCESS

PHOTO: VIEW FROM BEGINNING OF PROPOSED ACCESS CAMERA ANGLE: SOUTHEASTERLY

ng LOCATIONPHOTos O8 29 0 8 PHOTO

85 South 200 East Vernal,Utah 84078 morm uAY vna. doce1964. (435) 789-1017 * FAX (435) 789-1813 TAKENBY:N.fL DRAWNBY:Z.L

SEE TOPO "B R R10 11samma

PROPOSED LOCATION:JENSEN FEDERAL #11C-10-12-10

7.9 MI. +/

T13S

LEGEND: PIONEER NATURAL RESOURCES USA, INC.PROPOSED LOCATION N JENSEN FEDERAL #11C-10-12-10

SECTION 10, T12S, R10E, S.L.B.&M.735' FNL 484' FWL

Uintah Engineering & Land Surveying TOPOGR A PH I C 08 29 0885 South 200 East Vernal, Utah 84078 M A P ONT DAY YEAR

(435) 789-1017 * EAX (435) 789-1813

SCALE:1:100,000 DRAWNBY:Z.L. REVISED:

4

PROPOSED LOCATION:L 1 10 -

LEGEND: PIONEER NATURAL RESOURCES USA, INC.EXISTING ROAD N JENSEN FEDERAL #11C-10-12-10

----------- PROPOSED ACCESS ROAD--------- EXISTING OLD ROAD NEEDS UPGRADED SECTION 10, T12S, R10E, S.L.B.&M.

A 18" CMPREQUIRED 735' FNL 484' FWL

- Wineeri and¾ TOP¯Ò¯G

R A PH I C 0 Š 290¯Š

85 South 200 East Vernal, Utah 84078 M A P ONTS DAY YEAR i(435) 789-1017 * FAX (435) 789-1813

SCALE:1" = 2000' DRAWNBY:Z.L. VISED:

1 s ¯¯¯¯crio c-oc

JENS N #2-9

PROPOSED LOCATION:JENSEN FEDERAL #11C-10-12-10

JENS

LEGEND: PIONEER NATURAL RESOURCES USA, INC.pf DISPOSAL WELLS WATER WELLS N JENSEN FEDERAL #11C-10-12-10e PRODUCING WELLS ABANDONED WELLS SECTION 10, T12S, R10E, S.L.B.&M.

SHUT IN WELLS - - TEMPORARILY ABANDONED 735' FNL 484' FWL

- Uintah Engineering & Land Surveying TOPOGR A PH I c 0 8 29 0 8 =85 South 200 East Vernal, Utah 84078 M A P NTH DAY YEAR

(435) 789-1017 * FAX (435) 789-1813SCALE:1"= 2000 DRAWNBY:Z.L. ISED:00-00-00

DUCRESNE CO T11S-

CARBON CO. T12S

4

DETAIL "A" ravEXISTING PIP INE

SEE DETAIL "A") Lit tIeone.e-a o ou Ider

- PROPOSED LOCATION:NSEN FEDERA #110-10-12

APPROXIMATE TOTAL PIPELINE DISTANCE = 49' +/-

LEGEND: PIONEER NATURAL RESOURCES USA, INC.PROPOSED ACCESS ROAD N JENSEN FEDERAL #110-10-12-10

--------- EXISTING PIPELINE----------- ggggg|gigg E SECTION 10, T12S, R10E, S.L.B.&M.

(SERVICINGOTHERWELLS) 735' FNL 484' FWL

E Uintah Engineering & Land Surveying TOPOGR A PH I c 08 29 0885 Sonath 200 East Vernal, I.Jtah 84078 M A P MONTH DAY YEAR

(435) 789-1017 * FAX (435) 789-181 iSCALE:1"= 1000' DRAWNBY:Z.L

LOCATIONLAYOUT FOR ' '

JENSEN FEDERAL #11C-10-12-10SECTION 10, T12S, R10E, S.L.B.&M.

735' FNL 484' FWL/nsta// 18'Culvert

Proposed AccessRoad F- 11.7' oAppro× C-10.1 a. res.s' s

Top of E/. 205.7'

DA 0

Cut

C-ZO' "°"

8. 202.6'

NOJEF/ore Pit is to be /ocated µ¡7a min. of 100' from theWe// Head. Niil

Approx.- Toe of

Fill Slope

PIPE RACKS

- I C-4.0B. 199.6' -6.7'

B. 205. JC-19. 7; C e DOG HOUSE(btm. pH)

30> C. 130' Sta. 1+20

Total P/t Capacity¯

N sz -- W/2' of Freeboard -N- Û-4,9= 8,640 Bb/s. ± -" . RIGTotai Pit Volume £1. 200.

2,440Cu. Y2/s.¯ ¯ en i i -

I PUMPTOILET

MUD SHEDRESERVE

HOPPER/ 191.5'

POWERSTORAGE

H. 198.5' TOOLS TANKC-129FUEL

(htm. pH) , E 4.1' sta. 0+00Eg 191.5'

3 2Reserve Pit Backfi// E/. 188.6Spoils Stockpile':, -

'..

: -, -. E-12 0'

NO TES:Elev. Ungraded Ground At Loc. Stoke = 7199.6'

, UINTAH ENGINEERING & LAND SURVEYINGF/N/SHED GRADE ELEV A T LOC. STAxe = 7195.6 ,, s,. 24, ,,,, . ,,,,,,, y,,, ,,oy, . (4,,,

FIGURE / 2TYPlCALCROSS SECTIONS FOR

X-Section JENSEN FEDERAL #11C-10-12-10scale SECTION 10, T12S, R10E, S.L.B.&M. ""I

SUR735'FNL 484'FWL1" = 50'

DATE: 08-21-08Drawn By K.G.

30 130

CU' Einished Grade

STA. 2+90

10' 80' 30' 130'

Location Stoke

O 80' 30 130'

S/op e = 1 1 2: 1

CUTS TA. 0+ 35

Preconstruction 30' 130Grade

APPROX/MATE ACREAGES STA. 0+00 .. \

WELLS/TE D/S7URBANCE = ±1.849 ACRESACCESS ROAD D/S77RBANCE = ±0.08J ACRES

P/PEL/NE D/STURBANCE = ±0.034 ACRES * NOTE:F/LL QUANT/TY/NCLUDES

TOTAL = ±1.966 ACRES 5% FOR COMPACT/ON

APPROXIMATE YARDAGESEXCESS MATERIAL = 2,620 Cu. Yds.

CUT Topsoil & Pit Backfill = 2,620 Cu. Yds.(6") Topsoil Stripping = 1,400 Cu. Yds (1/2 Pit VoL)Remaining Location = 8,050 Cu. Yds.

EXCESS UNBALANCE = 0 Cu. Yds.TOTALCUT = 9, 450 CU.YDS. (After interim Rehabilitation)

FILL = 6, 830 CU.YDS. UINTAH ENGINEERING & LAND SURV EYING86 So. 200 East * Vernal, Utah 84078 * (436)

O OPIPELINEINFORMATION

Jensen Fed #110-10-12-10

1. The typeofpipelineis a gatheringline.

2. The maximumoutsidediameters(O.D.)ofallpipesize6".

3. The anticipatedproductionthroughthelineis 150MCF/day.

4. The anticipatedmaximumtestpressure is 150psi.

5. The anticipatedoperatingpressureis 30-40psi.

6. The typeofpipeis SDR-11(or7) Poly.

7. The methodofcouplingiswelded(fusion).

8. Waterandgas lineswillbe locatedinthesametrench.

9. Awirelinewillbe installedinthetrenchforfuturelinedetection.

10. The totallengthofpipelineis approximately49feet.

11. The pipelinewillbe buriedtoa minimumdepthof4 feetanda maximumdepthof6 feet.

12. The widthofthetrenchwillbe 4-5feet.

13. The methodofentrenchmentwillbe witha trackhoe.

14. The constructionwidthneededfortotalsurfacedisturbingactivitiesis30 feet.

15. The estimateoftotalacreageinvolvingallsurfacedisturbingactivitiesis 0.03acres.

16. Therewillbe shutin/isolationvalvesoneachendoftheline.

17. Thepipelinewillbe reclaimedutilizingthereclamationproceduresandseedmixturespecifiedbytheBureauofLandManagement.

O O

FEDERALSTIPULATIONS

Anytiminglimitationstipulationswhichapplytothislease willbe attachedbytheBLMas a ConditionofApproval.

O OPALEONTOLOGY EVALUATION SHEET

PROJECT: Pioneer Natural Resources USA, Inc - Well- Jensen Fed #11C-10-12-10

LOCATION: Emma Park area, 10 miles north of Helper, Utah. 735' FNL 484' FWL, Section 10,Tl2S, R10E, S.L.B.&M, Carbon County, Utah.

OWNERSHIP: PRIV[ X ] STATE[ ] BLM[ ] USFS[ ] NPS[ ] IND[ ] MIL[ ] OTHER[ ]

DATE: October 22, 2008

GEOLOGY/TOPOGRAPHY: Map (I-1981) by Weiss and others (1990) shows FlagstaffLimestone (Paleocene) and North Horn Formation (Paleocene and Upper Cretaceous). The well padis on a north sloping hill side, just north of the Emma Park Road. Access is from an old road to thenorth. Ground is covered with rock fragments from grit to 1 foot+ in size with sand. The rockfragments have mollusk shell fragments. The cover appears to be thin, but there not any goodformation exposures.

PALEONTOLOGY SURVEY: YES [ X ] NO Survey [ ] PARTIAL Survey [ ]Rock exposures were examined for fossils on the well pad, road and pipeline.

SURVEY RESULTS: Invertebrate [ X ] Plant [ ] Vertebrate [ ] Trace [ ] No Fossils Found [ ]The larger rocks have fragments of mollusks but they were not in original position.

PALEONTOLOGY SENSITIVITY: HIGH [ ] MEDIUM [ ] LOW [ X ] (PROJECT SPECIFIC)

MITGATION RECOMMENDATIONS: NONE [ X ] OTHER [ ] (SEE BELOW)

No recommendations are being made.

There is some potential for discovery of significant paleontological resources in the FlagstaffLimestone and North Horn Formation. If significant vertebrate fossils (mammals, crocodiles,complete turtle shells, fish, etc.) are encountered during construction, work should stop in that areaand a paleontologist contacted to evaluate the material discovered.

PALEONTOLOGIST: Alden H. HamblinA.H Hamblin Paleontological Consulting, 3793 N. Minersville Highway, Cedar City, Utah 84720 (435) 867-8355Utah State Paleontological Permit # 07-355, BLM paleontological Resources Permit # UTO8-003C,Utah Professional Geologist License -

àUCÑË$ÑE CO. T I Î S-

ARBON CO.¯ -

7367 r T Ï25

xigr!NG PIP IN

L ttle-r me-a-se-se ulde

PROP l ( \TION:IE\MI \ F i R \I li 10-12-1

|

LEGEND: PIONEER NATURAL RESOURCES USA. INC.------ (Si .11 NNI N I FDI RU NII( 10-12-10

¯ ¯ I CTION HI. Tl25. RIGE. N.L.B.&31.¯¯¯ ¯¯¯¯¯ 1-- ) \ 484 g:M L

-835)7#f0.ifil7*i (si.4917NV-1N14 i\CAI.D I"= 10\Id'| DILun BY:LL IRD ISI0;

WORKSHEETAPPLICATION FOR PERMIT TO DRILL

APD RECEIVED: 04/09/2009 API NO. ASSIGNED: 43-007-31499

WELL NAME: JENSEN FED 11C-10-12-10

OPERATOR: PIONEER NATURAL ( N5155 ) PHONE NUMBER: 303-857-9999

CONTACT: VENESSA LANGMACHER

PROPOSED LOCATION: INSPECT LOCATN BY: / /NWNW 10 120S 100E .

Tech Review Initials DateSURFACE: 0735 FNL 0484 FWL

BOTTOM: 0735 FNL 0484 FWL Engineering

COUNTY: CARBON GeologyLATITUDE: 39.803TO LONGITUDE: -110.79498

UTM SURF EASTINGS:517551 NORTHINGS: 4405780 Surface

FIELD NAME: CASTLEGATE ( 13 )

LEASE TYPE: 1 - Federal

LEASE NUMBER: UTU-65948 PROPOSED FORMATION: BLKHK

SURFACE OWNER: 4 - Fee COALBED METHANE WELL? NO

RECEIVED AND/OR REVIEWED: LOCATION AND SITING:

Plat R649-2-3.

/ Bond: Fed[1] Ind[] Sta[] Fee[]Unit:

(No. MTB-00041 )Potash (Y/N) R649-3-2. General

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

Water Permit R649-3-3. Exception

(No.MUNICIPAL ) / Drilling UnitRDCC Review (Y/N)

Board Cause No: £2£ygg(Date: ,-, )Eff Date: (pj -2DO

Fee Surf Agreement N) Siting:

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

COMMENTS:

STIPULATIONS: Í 7 . (

O OI

33 34 35 API Number: 4300731499Well Name: JENSEN FED 11C-10-12-10Township 12.0 S Range 10.0 E Section 10

Meridian: SLBMOperator: PIONEER NATURALRESOURCES USA, INC

4300730733JENSEN 1-4-12-10 4300730732 Map Prepared:

4g HUBER-JENSEN FED 1-3 3 Map Produced by Diana Mason

4300730134Units Wells Query Events

1210-0313 1sTATus

<aii other values>

4300731495ACTIVE

*JENSEN FED 14C-3-12-10 EXPLORATORY GIS STAT TYPE

GAS STORAGE<Null>

NFPPOIL APD

NF SECONDARY DRL

PI OtL Gi

PP GASGS

4300730980PP GEOTHERML

JENSEN 41-9 4300731483 PP OIL LA

4300731499 RICHARDSON ST 21C-10-12-10 SECONDARY NEW

JENSEN FED 11C-10-12-10 TERMINATED OPS

4300731452 FieldS PA

JENSEN 410-9-12-1( sTATus PGWACTIVE

POWCOMBINED

RETSections

4300730663 4300730757 SGW

4300730703 HUBER-STIF 4-11 HUBER-STIF 3-1 sow

4300730137 4300731213 4300731498 HUBER-JENSEN 3-10

CASTLEGATE FED 7-9-12-10]ENSEN 42C-9-12-1( 4300730162 JENSEN FED 22C-10-12-10

JENSEN 5-10-12-10

CASTLEGATE FIELDWS

4300731214 4300730159 i

JENSEN 43C-9-12-1c 10 J NSEN 9-10-12-10

4300730596 4300730166JENSEN 1-10-12-10 SHIMMINTRUST 11-11-12-10

4300731212 4300730167 I Box ElderCacheRict

Location MapJENSEN 33C-9-12-10 SHIMMIN TRUST 10-1 eb r

4300730164JEN4S3EON

2-7152-10

Daa

t LakSumm

JENSEN 11-10-12-10 & Tooele4300730163 Y satcl Duchesne

JENSEN 16-9-12-10 Utah Uintah

4300730981 1;

JENSEN 34-10 Juab Carbon

4300730673JENS4E3N 43C1-

0 12-10 SHIMMIN TRUST 1-11-12-10 4300730123 MillardSanpetc

4300730161 SHIMMINTRUST 4 Emery Grand

JENSEN 16-1 Sevier

Beaver Piute Wayne

Iron GarfieldSan Juan

43007309624300730138 SHIMMIN 11-14-12-10 Washington Kane

4300730133 F NDSEN 4-15 4300730122

ST 16° 4300730947

SHIMMINTRUST5-14-12-1l

HUBER-FRANDSENIFED 4-15

4300730589 16 15 14ASTLEGATE ST 1-1042 10

4300730786JENSON DEEP7-15-12-104300730165 4300730662 1,200 600 0 1,200 Feet

JENSEN 7-15 SHIMMIN TRUST 4-14-12-10

Application for Permit to DrillStatement of Basis

5/19/2009 Utah Division of Oil, Gas and Mining Page i

APD No API WellNo Status Well Type Surf Ownr CBM1419 43-007-31499-00-00 GW P NoOperator PIONEER NATURAL RESOURCES USA, IN Surface Owner-APD

Well Name JENSEN FED 11C-10-12-10 UnitField CASTLEGATE Type of WorkLocation NWNW 10 12S 10E S 735 FNL 484 FWL GPS Coord (UTM) 517551E 4405780N

Geologic Statement of BasisThe mineral rights for the proposed well are owned by the Federal Government. The BLM will be the agencyresponsible for evaluating and approving the drilling, casing and cement programs.

Brad Hill 5/19/2009APD Evaluator Date / Time

Surface Statement of BasisOn-site evaluation conducted April 30, 2009. In attendance: Bart Kettle-DOGM, Jerry Jensen-Surface Owner,Frankie Hathaway-Carbon County, Dallas Christensen-Pioneer Natural Resources, Stephen Schreck-PioneerNatural Resources and Kelly Rasmussen-Uintah Engineering & Land Surveying. Invited and choosing not toattend: Jim Jensen-Surface Owner.

Proposed site appears adequate for the drilling program. Well site falls within core greater sage grouse broodingarea. An active lek is located less then one mile northwest.

- Reserve pit should have a 16 mil liner properly installed prior to commencement of drilling activities. Threesides require fence while drilling, with the forth side fenced immediately following removal of drillingequipment.

Drainage crossing should be rip rapped at the outlet of culvert to prevent accelerated erosion downstream.

Carbon County requires that operator obtain a conditional use permit from the county for wells being proposedon fee lands.

Bart Kettle 4/30/2009Onsite Evaluator Date / Time

Conditions of Approval / Application for Permit to DrillCategory ConditionPits A synthetic liner with a minimum thickness of 16 mils shall be properly installed and

maintained in the reserve pit.Surface The reserve pit shall be fenced upon completion of drilling operations.Surface Drainage crossing should be rip rapped at the outlet of culvert to prevent accelerated

erosion

O SITE PREDRILL EVALUATUtah Division of Oil, Gas and Mining

Operator PIONEER NATURAL RESOURCES USA, INCWell Name JENSEN FED 11C-10-12-10

API Number 43-007-31499-0 APD No 1419 Field/Unit CASTLEGATELocation: 1/4,1/4 NWNW Sec 10 Tw 12S Rng 10E 735 FNL 484 FWLGPS Coord (UTM) Surface Owner

ParticipantsBart Kettle-DOGM, Jerry Jensen-Surface Owner, Frankie Hathaway-Carbon County, Dallas Christensen-Pioneer NaturalResources, Stephen Schreck-Pioneer Natural Resources and Kelly Rasmussen-Uintah Engineering & Land Surveying.

Regional/Local Setting & TopographyProposed project is ~9.5 miles northwest of Helper, located in Carbon County Utah. Project site is located in Emma Park,a rather large valley consisting of sage-step rangelands in a 14-16" precipitation zone. Dimensions of Emma Park areroughly 3 miles wide and nearly 10 miles long. To the north topography rises steeply into Reservation Ridge, whereprevalent Douglas fir and mountain browse communities are found. Topography to the south breaks off quickly into aseries of steep canyons/ledges towards the Price River and Willow Creek . Vegetation consists of Pinion/Juniperwoodlands and Ponderosa pine and Gamble oak communities. Drainages in the project area enter Willow Creek ~2 miles,a perennial stream in which drainages from Emma Park enter. From 2001-2005 a study was conducted in the project areaattempting to measure the impacts of Coalbed Methane Development on Greater Sage Grouse population inhabiting EmmaPark. Regional topography is semi-arid rangelands dominated by Pinion/Juniper woodlands and salt scrub communities.Soils in the region are generally poorly developed, and moderate too highly erosive clay or clay loams.

Surface Use PlanCurrent Surface UseGrazingWildlfe Habitat

New RoadMiles Well Pad Src Const Material Surface Formation

0.01 Width 220 Length 290 FLAG

Ancillary Facilities

Waste Management Plan Adequate?

Environmental ParametersAffected Floodplains and/or Wetland N

Flora / FaunaFlora:Forbs: Spiny Phlox, silver lupine, sulphur cinquefoil, lomation spp., western yarrow, Whipples penstomon.Grass: Elk sedge, Columbia needle and thread, Sandburg'sblue grass.Shrubs: Mountain big sage, gray stem rubber rabbit brush

Fauna: Seasonal use by host of song birds and sage obligate species such as sage thrasher and sage sparrow. Yearlong mule deer habitat, elk winter range. Year long greater sage grouse habitat. Many species of rodents.

Soil Type and CharacteristicsClay loam, organic clay loam with assortment of limestone fragments

5/19/2009 Page

OErosion Issues Y

Soils prone to wind erosion when disturbed. Interim reclamation should be completed as soon as practical tostabilize site.

Sedimentation Issues N

Site Stability Issues N

Drainage Diverson Required N

Berm Required? N

Erosion Sedimentation Control Required? YInterim reclamation to stabilize site.

Paleo Survey Run? N Paleo Potental Observed? Y Cultural Survey Run? Y Cultural Resources? N

Reserve Pit

Site-Specific Factors Site RankingDistance to Groundwater (feet) 75 to 100 10Distance to Surface Water (feet) 300 to 1000 2Dist. Nearest Municipal Well (ft) >5280 0Distance to Other Wells (feet) 300 to 1320 10Native Soil Type Low permeability 0Fluid Type Fresh Water 5Drill Cuttings Normal Rock 0Annual Precipitation (inches) 10 to 20 5Affected Populations <10 0Presence Nearby Utility Conduits Not Present 0

Final Score 32 1 Sensitivity Level

Characteristics / RequirementsCorner of the reserve pit is built in 4' of fill. Small portion of the pit, doesn't appear to threaten the integrity of the pit.

Closed Loop Mud Required? N Liner Required? Y Liner Thickness 16 Pit Underlayment Required? N

Other Observations / CommentsProposed project site is located within the 2001-2005 study area for The Sage-Grouse of Emma Park-Survival, Production,and Habitat use in Relation to Coalbed Methane Development conducted by the Utah Division of Wildlife Resources. Assuch the following Management Recommendations are given for development within the study area:1.) Noise levels at any leks should be less then 40db. Wells should not be located with 1500 meters of active leks. Wherewells already exist inside this buffer, appropriate mufflers or fencing to reduce noise levels should be added.2.) Avoid CBM development in vegetation treatment in the core use areas shown in Figure 10. Furthermore an 8 km bufferaround each lek was necessary to include over 90% of the nest in the area. This buffer would include all of the core useareas mentioned.3.) Restrict traffic near leks from 5 am to 10 am during March 15 through May 10 to reduce disturbance at leks.4.) When wells are to be placed in the sage grouse habitat, select dry ridges or previously treated sagebrush over wetmeadows, ephemeral stream channels, and shallow basins with good sagebrush cover.5.) A 50 meter buffer along all heavy traffic roads should be used to calculate habitat lost due to development particularly inwinter sage grouse habitats.6.) Where possible, new roads and wells should be constructed in adjacent pinyon-juniper habitat that typically has lesswildlife value.

5/19/2009 Page

O g7.) Directional drilling minimizes the number of wells and associated road network in turn minimizes fragmentationof sage grouse habitat.8.) Use the seasonal habitat maps found in Appendix C to asses potential impacts to sage grouse, where necessary thesemaps should be developed for surrounding areas.9.) Nesting/Summer habitat was found to be the most critical time for sage grouse survival and production during thisstudy. Protection of summer/nesting habitats should be prioritized.

Bart Kettle 4/30/2009Evaluator Date / Time

5/19/2009 Page

O OState of UtahDEPARTMENT OF NATURAL RESOURCES

MICHAELR. STYLER

JON M. HUNTSMAN, JR. Executive Director

oovernor Division of Oil, Gas and MiningGARY R. HERBERT JOHN R. BAZALieutenant Governor Division Director

May 19, 2009

Pioneer Natural Resources USA Inc.1401 - 17th St., Ste. 1200Denver, CO 80202

Re: Jensen Fed 11C-10-12-10 Well, 735' FNL, 484' FWL, NW NW, Sec. 10, T. 12 South,R. 10 East, Carbon County, Utah

Gentlemen:

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

This approval shall expire one year from the above date unless substantial and continuousoperation is underway, or a request for extension is made prior to the expiration date. The APIidentification number assigned to this well is 43-007-31499.

Sincerely,

Gil HuntAssociate Director

pabEnclosures

cc: Carbon County AssessorBureau of Land Management, Price Office

UTAH

DNR

1594 West North Temple, Suite 1210, PO Box 145801, Salt Lake City, UT 84114-5801telephone (801) 538-5340 •facsimile (801) 359-3940 • TTY (801) 538-7458 • www.ogm.utah.gov OIL, GAS &

O OOperator: Pioneer Natural Resources USA Inc.Well Name & Number Jensen Fed 11C-10-12-10

API Number: 43-007-31499Lease: UTU-65948

Location: NW NW Sec.1 T. 12 South R. 10 East

Conditions of Approval

1. GeneralCompliance with the requirements of Utah Admin. R. 649-1 et seq., the Oil and GasConservation General Rules, and the applicable terms and provisions of the approvedApplication for permit to drill.

2. Notification RequirementsNotify the division within 24 hours of spudding the well.

• Contact Carol Daniels at (801) 538-5284.

Notify the Division prior to commencing operations to plug and abandon the well.• Contact Dustin Doucet at (801) 538-5281 (801) 733-0983 home

3. Reporting RequirementsAll required reports, forms and submittals will be promptly filed with the Division,including but not limited to the Entity Action Form (Form 6), Report of WaterEncountered During Drilling (Form 7), Weekly Progress Reports for drilling andcompletion operations, and Sundry Notices and Reports on Wells requesting approval ofchange of plans or other operational actions.

4. State approval of this well does not supersede the required federal approval, which must beobtained prior to drilling.

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

Division of Oil, Gas and Mining ROUTINGOPERATOR CHANGE WORKSHEET (for state use only) 1. DJJ

2. CDWX - Change of Operator (Well Sold) Operator Name Change/MergerThe operator of the well(s) listed below has changed, effective: 4/1/2010

FROM: (Old Operator): TO: ( New Operator):N5155-Pioneer Natural Resources USA, Inc. N3680-Blue Tip Castlegate, Inc.

1401 17th St, Suite 1200 15810 Park Ten Place, Suite 160Denver, CO 80202 Houston, TX 77084

Phone: 1 (303) 675-2610 Phone: 1 (303) 979-6023

CA No. Unit:WELL NAME SEC TWN RNG API NO ENTITY LEASE TYPE WELL WELL

NO TYPE STATUSSEE ATTACHED LIST

OPERATOR CHANGES DOCUMENTATIONEnter date after each listed item is completed1. (R649-8-10) Sundry or legal documentation was received from the FORMER operator on: 6/3/20102. (R649-8-10) Sundry or legal documentation was received from the NEW operator on: 6/3/20103. The new company was checked on the Department of Commerce, Division of Corporations Database on: 5/10/20104a. Is the new operator registered in the State of Utah: Business Number: 7624076-01425a. (R649-9-2)Waste Management Plan has been received on: Requested 9/13/20105b. Inspections of LA PA state/fee well sites complete on: n/a5c. Reports current for Production/Disposition & Sundries on: ok6. Federal and Indian Lease Wells: The BLM and or the BIA has approved the merger, name change,

or operator change for all wells listed on Federal or Indian leases on: BLM not yet BIA7. Federal and Indian Units:

The BLM or BIA has approved the successor of unit operator for wells listed on: n/a8. Federal and Indian Communization Agreements ("CA"):

The BLM or BIA has approved the operator for all wells listed within a CA on: n/a9. Underground Injection Control ("UIC") Division has approved UIC Form 5 Transfer of Authority to

Inject, for the enhanced/secondary recovery unit/project for the water disposal well(s) listed on: * Being heldDATA ENTRY:1. Changes entered in the Oil and Gas Database on: 6/30/20102. Changes have been entered on the Monthly Operator Change Spread Sheet on: 6/30/20103. Bond information entered in RBDMS on: 6/30/20104. Fee/State wells attached to bond in RBDMS on: 6/30/20105. Injection Projects to new operator in RBDMS on: *

6. Receipt of Acceptance of Drilling Procedures for APD/New on: 6/30/2010BOND VERIFICATION:1. Federal well(s) covered by Bond Number: BOO56382. Indian well(s) covered by Bond Number: n/a3a. (R649-3-1) The NEW operator of any state/fee well(s) listed covered by Bond Number BOO5639 and B0056503b. The FORMER operator has requested a release of liability from their bond on: n/aLEASE INTEREST OWNER NOTIFICATION:4. (R649-2-10) The NEW operator of the fee wells has been contacted and informed by a letter from the Division

of their responsibility to notify all interest owners of this change on: 6/30/2010COMMENTS:

Blue Tip Castlegats FORM A.xls

STATE OF UTAH FORM 9DEPARTMENTOF NATURALRESOURCES

DIVISIONOF OIL, GAS AND MINING 5. LEASEDESIGNATIONANDSERIALNUMBER:

6. IF INDIAN,ALLOTTEEOR TRIBE NAMESUNDRY NOTICES AND REPORTS ON WELLS7. UNITor CA AGREEMENTNAME:

Do not use this form for proposals to drillnew wells, significantly deepen existing wells below current bottom-hole depth, reenter plugged wells, or todrillhorizontal laterals. Use APPLICATIONFOR PERMITTO DRILLform for such proposals.

1. TYPE OF WELL 8. WELLNAMEand NUMBER:OIL WELL O GAS WELL OTHER See Attached List

2. NAMEOF OPERATOR: 9. API NUMBER:

Blue Tip Castlegate, Inc. ÛfÔ3. ADDRESS OF OPERATOR: PHONE NUMBER: 10. FIELDAND POOL, OR WILDCAT:15810 Park Ten Place - Ste 160

ClTY Houston STATE TX ZIP 77084 (303) 979-60234. LOCATIONOF WELL

FOOTAGES AT SURFACE: COUNTY: Carbon

QTR/QTR, SECTION, TOWNSHIP, RANGE, MERIDIAN: STATE:UTAH

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

ACIDIZE DEEPEN REPERFORATE CURRENT FORMATIONNOTICE OF INTENT

(Submit in Duplicate) ALTERCASING FRACTURETREAT SIDETRACKTO REPAIR WELL

Approximate date work willstart: CASING REPAIR NEW CONSTRUCTION TEMPORARILYABANDON

4/1/2010 CHANGETO PREVIOUS PLANS OPERATOR CHANGE TUBlNG REPAIR

CHANGETUBING PLUG ANDABANDON VENT OR FLARE

SUBSEQUENT REPORT CHANGEWELLNAME PLUG BACK WATER DISPOSAL(Submit Original Form Only)

CHANGEWELLSTATUS PRODUCTION(START/RESUME) WATER SHUT-OFFDate of work completion:

COMMINGLEPRODUCING FORMATIONS RECLAMATIONOF WELLSITE OTHER:

CONVERT WELLTYPE RECOMPLETE - DIFFERENT FORMATION

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

Blue Tip Castlegate, Inc. has acquired all of Pioneer Natural Resources USA, Inc's interest in the Castlegate Field - seeattached well list. The effective date of change of operator is April 1, 2010.

Betty BrowÀon Date ce L. Taylor D teAttorney-In-Fact Manager Bce Pves icPioneer Natural Resources USA, Inc. .Ô/ 5 Blue Tip Castlegate, Inc.1401 17th Street - Suite 1200 15810 Park Ten Place - Suite 160Denver, CO 80202 Houston, TX 77084Phone: 303-675-2610 Telephone: 303-979-6023

State Bond No.: BOOS639BLM Bond No.: BOOS638

NAME(PLEASE PRINT) BrUce L. Taylor TITLE YRS \

SIGNATURE DATE

(This space for State use only)

APPROVED / / RECEIVED

(5/2000) ÛÎVÎSion of Oil,GasandMining (See Instructions on Reverse Side)

EarleneRussell, EngineeringTechnician DIV.0FOlL,GAS&

PIONEERNATURALRESOURCES(N5155) to BLUETIP CASTLEGATE(N3680)

well name see twp rng api entity lease type stat CSHIMMIN TRUST 5-14-12-10 14 120S 100E 4300730122 14175 Fee GW PCASTLEGATE FED 7-9-12-10 09 120S 100E 4300730137 12991 Federal GW PJIB4SE249-10-12-10 10 120S 100E 4300730159 12906 Fee GAV PJIR4SE145-10-12-10 10 120S 100E 4300730162 12905 Fee GON SIENSla4 16-9-12-10 09 120S 100E 4300730163 12904 Fee GAV PJEFESEN 11-10-12-10 10 120S 100E 4300730164 11405 Fee Cin' PSHIMMIN TRUST 11-11-12-10 11 120S 100E 4300730166 11410 Fee GW PCASTLEGATE ST 1-16-12-10 16 120S 100E 4300730589 12610 State GW PJENSŒR41-10-12-10 10 120S 100E 4300730596 12611 Fee GGV PSHIMMIN TRUST 2-11-12-10 11 120S 100E 4300730659 13070 Fee GW PSHIMMIN TRUST 4-14-12-10 14 120S 100E 4300730662 13071 Fee GW PSFEhiküNTTUUST 1-11-12-10 11 120S 100E 4300730673 12901 Fee GGV PIF24SE 42-10-12-10 10 120S 100E 4300730675 14225 Fee GAV CIPSJENSIB41-9-12-10 09 120S 100E 4300730717 12903 Fee GGV PJEftSEN 1-18-12-10 18 120S 100E 4300730718 14226 Fee CiMT PJENSIng 1-4-12-10 04 120S 100E 4300730733 13068 Fee GRV PJF14SE242-8-12-10 08 120S 100E 4300730734 13275 Fee GDW PJENSID42-9-12-10 09 120S 100E 4300730735 13317 Fee GAV PJEli;SEN 1-15-12-10 15 120S 100E 4300730736 13072 Fee (i%7 PJENSENl-8-12-10 08 120S 100E 4300730768 13359 Fee GNV PCASTLEGATE ST 4-16-12-10 16 120S 100E 4300730785 13318 State GW PJENSEN DEEP 7-15-12-10 15 120S 100E 4300730786 13247 Fee GW SCASTLEGATE ST 11-16H-12-10 16 120S 100E 4300730961 14224 State GW SSHIMMIN 11-14-12-10 14 120S 100E 4300730962 14223 Fee GW OPSJTR4SE1423C-9-12-10 09 120S 100E 4300731211 15770 Fee GW PJE24SEN33C-9-12-10 09 120S 100E 4300731212 15769 Fee GB¥ PJ194SE1442C-9-12-10 09 120S 100E 4300731213 15766 Fee GNV PJIR4SEN43C-9-12-10 09 120S 100E 4300731214 15768 Fee GNV P CCASTLEGATE FED 22C-9-12-10 09 120S 100E 4300731225 15767 Federal GW PJENSEN 41C-9-12-10 09 120S 100E 4300731452 17246 Fee GW OPS CJENSE2414C-10-12-10 10 120S 100E 4300731453 17235 Fee GGV PJENSEN FED 14C-3-12-10 03 120S 100E 4300731495 Federal GW APD CJENSEN FED 22C-10-12-10 10 120S 100E 4300731498 Federal GW APD CJENSEN FED 11C-10-12-10 10 120S 100E 4300731499 Federal GW APD CJENSEN 14C-4-12-10 04 120S 100E 4300731500 Fee GW APD CJIR4SEN44C-4-12-10 04 120S 100E 4300731501 Fee G'W Ad?D CBBNSE1444C-5-12-10 05 120S 100E 4300731502 Fee GAV AdB3 CJENSEN 34C-9-12-10 09 120S 100E 4300731503 Fee GW APD CJIR4SE1431C-9-12-10 09 120S 100E 4300731504 Fee GBW APD CJENSEN 14C-9-12-10 09 120S 100E 4300731505 Fee GW APD CJENSEllllC-9-12-10 09 120S 100E 4300731506 Fee GAV AJS3 CJENSEN 24C-9-12-10 09 120S 100E 4300731507 Fee GW APD CJENSEN ST 11C-34-11-9 34 110S 090E 4304930024 17071 State GW S C

STATE OF UTAHDEPARTMENT OF NATURALRESOURCES

DIVISIONOF OIL,GAS AND MINING

Request to Transfer Application or Permit to Drill

(This form should accompany a Sundry Notice, Form 9, requesting APD transfer)

Well name: Jensen Fed 11C-10-12-10

API number: 4300731499

Location: Qtr-Qtr: NWNW Section: 10 Township: 12S Range: 10E

Company that filed original application: Pioneer Natural Resources USA, Inc.

Date original permit was issued: 05/03/2010

Company that permit was issued to: Pioneer Natural Resources USA, Inc.

Check Desired Action:one

Transfer pending (unapproved) Application for Permit to Drill to new operator

The undersigned as owner with legal rights to drillon the property, hereby verifies that the information assubmitted in the pending Application for Permit to Drill, remains valid and does not require revision. The newowner of the application accepts and agrees to the information and procedures as stated in the application.

/ Transfer approved Application for Permit to Drill to new operator

The undersigned as owner with legal rights to drillon the property as permitted, hereby verifies that theinformation as submitted in the previously approved application to drill, remains valid and does not requirerevision.

Following is a checklist of some items related to the application, which should be verified. Yes No

If located on private land, has the ownership changed?

If so, has the surface agreement been updated?

Have any wells been drilled in the vicinity of the proposed well which would affect the spacing or sitingrequirements for this location?Have there been any unit or other agreements put in place that could affect the permitting or operation of thisproposed well?Have there been any changes to the access route including ownership or right-of-way,which could affect theproposed location?

Has the approved source of water for drilling changed?

Have there been any physical changes to the surface location or access route which will require a change inplans from what was discussed at the onsite evaluation?

Is bonding still in place, which covers this proposed well? Bond NO. State BOO5639 - BLM BOO5638

Any desired or necessary changes to either a pending or approved Application for Permit to Drillthat is being transferred,should be filed on a Sundry Notice, Form 9, or amended Application for Permit to Drill,Form 3, as appropriate, withnecessary supporting information as required.

Name (please.pcigt) Bruce L. Taylor ,7 O Title M nager- \( \eg gyp pg ggSignature ii È. Date

Representing (company name) Blue Tip Castleg t Inc.

The person signing thisform must have legal authority to represent the company or individual(s) to be listed as the new operator on the ADDIÍCSÍlOn fOf

Permit to Drill RECEIVED(3/2004) JUNO1 2010

DRREQikGAS&

API Well No: 43007314990000

STATE OF UTAHDEPARTMENT OF NATURAL RESOURCES

DIVISION OF OIL, GAS, AND MINING

FORM 9

5.LEASE DESIGNATION AND SERIAL NUMBER: UTU-65948

SUNDRY NOTICES AND REPORTS ON WELLSDo not use this form for proposals to drill new wells, significantly deepen existing wells below currentbottom-hole depth, reenter plugged wells, or to drill horizontal laterals. Use APPLICATION FOR PERMIT TODRILL form for such proposals.

6. IF INDIAN, ALLOTTEE OR TRIBE NAME:

7.UNIT or CA AGREEMENT NAME:

1. TYPE OF WELL Gas Well

8. WELL NAME and NUMBER: JENSEN FED 11C-10-12-10

2. NAME OF OPERATOR: PIONEER NATURAL RESOURCES USA, INC

9. API NUMBER: 43007314990000

3. ADDRESS OF OPERATOR: 1401 17th Street, Suite 1200 , Denver, CO, 80202

9. FIELD and POOL or WILDCAT: CASTLEGATE

4. LOCATION OF WELL FOOTAGES AT SURFACE: 0735 FNL 0484 FWL QTR/QTR, SECTION, TOWNSHIP, RANGE, MERIDIAN: Qtr/Qtr: NWNW Section: 10 Township: 12.0S Range: 10.0E Meridian: S

COUNTY: CARBON

STATE: UTAH

11.

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

TYPE OF SUBMISSION TYPE OF ACTION

NOTICE OF INTENTApproximate date work will start:

5/19/2010

SUBSEQUENT REPORTDate of Work Completion:

SPUD REPORTDate of Spud:

DRILLING REPORTReport Date:

ACIDIZE ALTER CASING CASING REPAIR

CHANGE TO PREVIOUS PLANS CHANGE TUBING CHANGE WELL NAME

CHANGE WELL STATUS COMMINGLE PRODUCING FORMATIONS CONVERT WELL TYPE

DEEPEN FRACTURE TREAT NEW CONSTRUCTION

OPERATOR CHANGE PLUG AND ABANDON PLUG BACK

PRODUCTION START OR RESUME RECLAMATION OF WELL SITE RECOMPLETE DIFFERENT FORMATION

REPERFORATE CURRENT FORMATION SIDETRACK TO REPAIR WELL TEMPORARY ABANDON

TUBING REPAIR VENT OR FLARE WATER DISPOSAL

WATER SHUTOFF SI TA STATUS EXTENSION APD EXTENSION

WILDCAT WELL DETERMINATION OTHER OTHER:

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

The referenced approved APD expires 5/19/2010. Pioneer Natural Resourcesis requesting a two-year extension while waiting for the BLM to approve theAPD. Attached is the required Application For Permit to Drill - Request For

Permit Extension Validation.

NAME (PLEASE PRINT) Joy A. Ziegler

TITLE Senior Engineering Tech

SIGNATURE N/A

DATE 4/27/2010

PHONE NUMBER:303 298-8100 Ext

PHONE NUMBER303 675-2663

April 27, 2010

May 03, 2010

iPI Well No: 43007314990000

FORM 9STATE OF UTAH

DEPARTMENT OF NATURAL RESOURCESDIVISION OF OIL, GAS, AND MINING 5.LEAS6E 9D4ESIGNATION AND SERIAL NUMBER:

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

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

DRILL form for such proposals.

1. TYPE OF WELL 8. WELL NAME and NUMBER:Gas VVell JENSEN FED 11C-10-12-10

2.NAMEOFOPERATOR: 9.APINUMBER:PIONEER NATURAL RESOURCES USA, INC 43007314990000

3. ADDRESS OF OPERATOR: PHONE NUMBER: 9. FIELD and POOL or WILDCAT:1401 17th Street, Suite 1200 , Denver, CO, 80202 303 298-8100 Ext CASTLEGATE

4.LOCATIONOFWELL COUNTY:FOOTAGESATSURFACE: CARBON

0735 FNL 0484 FWLQTR/QTR, SECTION, TOWNSHIP, RANGE, MERIDIAN: STATE:

Qtr/Qtr: NWNW Section: 10 Township: 12.05 Range: 10.0E Meridian: S UTAH

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

TYPE OF SUBMISSION TYPE OF ACTION

ACIDIZE ALTER CASING CASING REPAIR

/ NOTICE OF INTENTApproximate date work will start: CHANGE TO PREVIOUS PLANS CHANGE TUBING CHANGE WELL NAME

5/19/2010CHANGE WELL STATUS COMMINGLE PRODUCING FORMATIONS CONVERT WELL TYPE

SUBSEQUENT REPORT DEEPEN FRACTURE TREAT NEW CONSTRUCTIONDate of Work Completion:

OPERATOR CHANGE PLUG AND ABANDON PLUG BACK

PRODUCTION START OR RESUME RECLAMATION OF WELL SITE RECOMPLETE DIFFERENT FORMATION

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

TUBING REPAIR VENT OR FLARE WATER DISPOSAL

DRILLING REPORT WATER SHUTOFF SI TA STATUS EXTENSION APD EXTENSIONReport Date:

WILDCAT WELL DETERMINATION OTHER OTHER:

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

The referenced approved APD expires 5/19/2010. Pioneer Natural Resourcesis requesting a two-year extension while waiting for the BLM to approve the Approved by theAPD. Attached is the required Application For Permit to Drill - Request For Utah Division of

Permit Extension Validation. Oil, Gas and Mining

Date 2010

NAME (PLEASE PRINT) PHONE NUMBER TITLEJoy A. Ziegler 303 675-2663 Senior Engineering Tech

SIGNATURE DATEN/A 4/27/2010

RECEIVED April 27,

The Utah Division of Oil, Gas, and Mining

- State of Utah- Department of Natural Resources

Electronic Permitting System - Sundry Notices

Request for Permit Extension Validation Well Number 43007314990000

API: 43007314990000Well Name: JENSEN FED 11C-10-12-10

Location: 0735 FNL 0484 FWL QTR NWNW SEC 10 TWNP 120S RNG 100E MER SCompany Permit Issued to: PIONEER NATURAL RESOURCES USA, INC

Date Original Permit Issued: 5/19/2009

The undersigned as owner with legal rights to drill on the property as permitted above, hereby verifies thatthe information as submitted in the previously approved application to drill, remains valid and does notrequire revision. Following is a checklist of some items related to the application, which should be verified.

If located on private land, has the ownership changed, if so, has the surface agreement beenupdated? Yes No

Have any wells been drilled in the vicinity of the proposed well which would affect the spacing orsiting requirements for this location? Yes No

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

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

Has the approved source of water for drilling changed? Yes No

Have there been any physical changes to the surface location or access route which will require achange in plans from what was discussed at the onsite evaluation? Yes No

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

Signature: Joy A. Ziegler Date: 4/27/2010

Title: Senior Engineering Tech Representing: PIONEER NATURAL RESOURCES USA, INC

April 27, 2010

May 03, 2010

UTAH

[gg The Utah Division of Oil, Gas, and Mining- State of Utah- Department of Natural ResourcesElectronic Permitting System - Sundry Notices

OTI GAS & MINTNG

Request for Permit Extension Validation Well Number 43007314990000

API: 43007314990000Well Name: JENSEN FED 11C-10-12-10

Location: 0735 FNL 0484 FWL QTR NWNW SEC 10 TWNP 120S RNG 100E MER SCompany Permit Issued to: PIONEER NATURAL RESOURCES USA, INC

Date Original Permit Issued: 5/19/2009

The undersigned as owner with legal rights to drill on the property as permitted above, hereby verifies thatthe information as submitted in the previously approved application to drill, remains valid and does notrequire revision. Following is a checklist of some items related to the application, which should be verified.

• If located on private land, has the ownership changed, if so, has the surface agreement beenupdated? I Yes I ) No

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

• Has there been any unit or other agreements put in place that could affect the permitting or operationof this proposed well?

_

I Yes i i No

•Have there been any changes to_the access route including ownership, or rightof- way, which couldaffect the proposed location? I:_ I Yes I:BI No

• Has the approved source of water for drilling changed? I Yes I:¾) No

• Have there been any physical changes to the surface location or access route which will require achange in plans from what was discussed at the onsite evaluation? I i Yes i No

Approved by the•Is bonding still in place, which covers this proposed well? I i Yes .

I No Utah Division ofOil, Gas and Mining

Signature: Joy A. Ziegler Date: 4/27/2010Title: Senior Engineering Tech Representing: PIONEER NATURAL RESOURÑAIMA May03, 2010

By:

RECEIVE D April 27,

The Utah Division of Oil, Gas, and Mining

- State of Utah- Department of Natural Resources

Electronic Permitting System - Sundry Notices

Sundry Conditions of Approval Well Number 43007314990000

DOGM extension of the well permit is for a one year period from the original approvaldate.

May 03, 2010May 03, 2010

UTAH

[gg The Utah Division of Oil, Gas, and Mining- State of Utah- Department of Natural ResourcesElectronic Permitting System - Sundry Notices

OIL GAS & M1NTNG

Sundry Conditions of Approval Well Number 43007314990000

DOGM extension of the well permit is for a one year period from the original approvaldate.

Approved by theUtah Division of

Oil, Gas and Mining

Date

State of UtahDEPARTMENT OF NATURAL RESOURCES

MICHAEL R. STYLER

GARY R. HERBERT Executive Director

covernor Division of Oil, Gas and MiningGREGORY S. BELL JOHN R. BAZALieutenant Governor Division Director

May 26, 2011

Mike CerelliBlue Tip Castlegate, Inc.15810 Park Ten Place-Ste. 160Houston, TX 77084

Re: APD Rescinded - Jensen Fed 11C-10-12-10, Sec. 10, T. 12S, R. 10E,Carbon County, Utah, API No. 43-007-31499

Dear Mr. Cerelli:

The Application for Permit to Drill (APD) for the subject well wasapproved by the Division of Oil, Gas and Mining (Division) on May 19, 2009.On May 3, 2010 the Division granted a one-year APD extension. On May 25,2011, you requested that the APD be rescinded. No drilling activity at thislocation has been reported to the division. Therefore, approval to drill the well ishereby rescinded, effective May 25, 2011.

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

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

Sincerely,

Diana MasonEnvironmental Scientist

ec: Well FileBureau of Land Management, Price

UTAH

DNR

1594 West North Temple, Suite 1210, PO Box 145801, Salt Lake City, UT 84114 -5801

telephone (80 l) 538-5340 • facsimile (801) 359-3940 •TTY (801) 538-7458 • wwwogm.utah.gOV OIL, GAS &