SUSPEN!^~ ^ l J? B E N G I N E E R / ^ « — '

LOGGED l t _ > ^

ABOVE THIS LINE FOR DIVISION USE ONLY

NEW M E X I C O O I L CONSERVATION DIVISION - Engineering Bureau -

1220 South St. Francis Drive, Santa Fe, NM 87505

ADMINISTRATIVE APPLICATION CHECKLIST ; a j ^ / c - W / /

ffi THIS CHECKLIST IS MANDATORY FOR ALL ADMINISTRATIVE APPLICATIONS FOR EXCEPTIONS TO DIVISION RULES AND REGULATIOI WHICH REQUIRE PROCESSING AT THE DIVISION LEVEL IN SANTA FE Appl icat ion A c r o n y m s : [NSL-Non-Standard Locat ion] [NSP-Non-Standard Proration Unit] [SD-Simultaneous Dedication]

[DHC-Downhole Commingling] [ C T B - L e a s e Commingling] [PLC-Poo l /Lease Commingling] [PC-Pool Commingling] [OLS - Of f -Lease Storage] [OLM-Off-Lease Measurement]

[WFX-Waterflood Expans ion] [PMX-Pressure Maintenance Expans ion] [SWD-Salt Water Disposal ] [ IPI-lnjection P r e s s u r e I n c r e a s e ]

[EOR-Qualif ied E n h a n c e d Oil Recovery Cert i f ication] [PPR-Posi t ive Production R e s p o n s e ]

[1]

[2]

[3]

TYPE OF APPLICATION - Check Those Which Apply for [A] [A] Location - Spacing Unit - Simultaneous Dedication

___ NSL • NSP • SD

Check One Only for [B] or [C] [B] Commingling - Storage - Measurement

• DHC • CTB • PLC • PC • OLS

[C] Injection - Disposal - Pressure Increase - Enhanced Oil Recovery • WFX • PMX • SWD • IPI • EOR • PPR

[D] Other: Specify

• j

NOTIFICATION REQUIRED TO: - Check Those Which Apply, or • Does Not Apply Working, Royalty or Overriding Royalty Interest Owners [A] 13

[B] •

[C] •

[D] •

[E] •

[F]

U.S. Bureau of Land Management - Commissioner of Public Lands, State Land Office

Waivers are Attached

SUBMIT ACCURATE AND COMPLETE INFORMATION REQUIRED TO PROCESS THE TYPE OF APPLICATION INDICATED ABOVE.

[4] CERTIFICATION: I hereby certify that the information submitted with this application for administrative approval is accurate and complete to the best of my knowledge. I also understand that no action will be taken on this application until the required information and notifications are submitted to the Division.

Jennifer Duarte Print or Type Name

Regulatory Analyst 5-17-2012

Jennifer duarte(3),oxy.com e-mail Address

5 Greenway Plaza, Suite 110, Houston, Texas 77046 P.O. Box 4294, Houston, Texas 77210-4294 Direct 713.513.6640 Fax: 713.985.8849 Jennifer_duarte@oxy.com

May 17, 2012

Re: Application for Administrative Approval for Non-Standard Location Piglet 21 State #4 30-015-39499 SL: 873'FSL & 1164'FWL. M, Sec 21, T17S, R28E Eddy County, New Mexico

Dear Mr. David Brooks:

OXY USA WTP Limited Partnership ("OXY") respectfully request approval under rule 104 (F) of this application for the subject non-standard well location on the Piglet 21 State #4. This well encroaches other wells that have the same working interest partners. In the attached documentation, you will find our notifications and the waivers that we have received back. It has been over 21 days since notifications were sent out and we ask that you proceed with approval of the Non-Standard location.

Please review the attached application and its supporting documentation for determination of approval. If you have any questions or should you need any further information, please do not hesitate to contact me.

Thank you in advance for your time.

Very Truly Yours,

OXY USA WTP Limited Partnership

Regulatory Analyst

OXY USA WTP Limited Partnership O X Y

j A subsidiary of Occidental Petroleum Corporation

State of New Mexico

Energy, Minerals and Natural Resources

Oil Conservation Division

1220 S. St Francis Dr.

Santa Fe. NM 87505

FMT. C-101 Alillili 1. 2011

District I IMS X. Frer.:h Dr.. Hot*!. 3CM ES240 Phor.e:(S75) 3i3-il«! F«x:(-

" f * ' „ , State of New Mexico r0rm c-102 1625 t i . french Dr., Hobbs, NW 88240 _ . . . ^ r. . . D „ V „ J n i n n c

iv_,w« Energy, Minerals & Natural Resources Deportment R e v , s e d o d o f a * ' BTIJ.IM M.. MK. HU e7*io 1220 South St. Francis Dr.

K s " i c l " Sonta Fe NW 87505 1220 S. Sl. franca Dr.. Sonlo fe. NU 87505 ° U I U 0 ^ N M ° / 3 U J

Stole leose- 4 Copies

Fee Leose- 3 Copies

• AMENDED REPORT

WELL LOCATION AND ACREAGE DEDICATION PLAT API number Pool Code Pool Nome

ARJZSM; 6j.#z,erA - VBSS> /a ) Property Code Property Nome " "

PIGLET "21" STATE net Number

4

OCfflO Ho. Operotor Nome

OXY USA INC. Devotion

3606. 4 '

Surfoce Locotion Ul or tot no.

u Section

21

Townsdio

17 SOUTH

Range

28 EAST. N.M.RU.

lot ton reel horn the

873'

North/South Cr*

SOUTH

reel Irom tr*

116 f

Cost/West fa*

iwssr County

EDDY

Bottom Hole Locotion If Different From Surface. UL or kit no. Section Township Range . Lol ldn Feet Irom ihe North/South bie feet from the Eost/West Sr* County

Oedicoted Acres

HO Joint or h i* Coreobrjotion Code Order No.

No allowable wilf be assigned to this completion until all interests hove been consolidated or o non-standard unit hos been approved by the

division.

SURFACE LOCATION NEW UEXfCO CAST

NAO 1927 T-6G0I43& X-5455880

LAT.: N 32.8147349* UWC.; W 504 18494ST

11 6

Permit Comments Operator: OXY USA IXC , 16696 WeU: PIGLET 21 STATE #004 API: 30-015-39499

Created By Comment Comment Date CSHAPARD 10/U/2011

Permit Conditions of Approval Operator: OXY USA INC , 16696 WeU: PIGLET 21 STATE #004 API: 30-015-39499

OCD Reviewer

Condition

CSHAPARD Will require administrative order for non-sta nefe rd location

CSHAPARD Or.ce the well is spud, to prevent ground water contsminstien through whole or partial conduits from the surface, the operator shall dril l without interruption through the fresh water rone CT zones and shall immediate ly^?! in cement the water protection string

Barnett, Colin D

From: Sent: To: Subject:

Barnett, Colin D Friday, April 13, 2012 3:50 PM Larry Wyont; Ricky Haikin; bobmunn@xcane.corh; davidjandrews@sbcglobal.net Piglet 21 State #4 & #6 NSL Waiver

Scanned from a Xerox multifunc...

Gentlemen,

Good afternoon. We've recently learned that a few of our Piglet wells require NSL approval. In order to speed up this approval process would you please execute the attached at your earliest convenience and return! to my attention?

Thank you.

Colin D. Barnett, RPL Landman Occidental Permian Ltd. Direct: 713.350.4933 Mobile: 713.501.7982 Fax: 713.985.8849 Colin Barnett(5)Oxy.com

l

OXY USA WTP Limited Partnership OJ1Y ^ » , A subsidiary of Occidental Petroleum Corporation

5'Greenway Plaza, Suite 110, Houston, Texas 77046 P.O. Box 4294, Houston, Texas 77210-4294 Direct: 713.350.4933 Fax: 713.985.8849 Colin_barnett@oxy.com

April 13,2012

NSL Waiver Piglet 21 State #6 SL: 1635' FSL & 334' FWL BHL: 1635'FSL & 334'FWL Section 21: NWSW Township 17 South, Range 28 East Eddy County, New Mexico

Dear Partners:

It has come to the attention of OXY USA WTP Limited Partnership ("OXY") that the referenced wells are at non-standard locations, encroaching upon the SESW (Piglet 21 State #4) and the SWSW (Piglet 21 State #6) of Section 21, Township 17 South, Range 28 East. OXY will be filing applications with the New Mexico Oil Conservation Division for approval of the non-standard locations ;and therefore, OXY hereby respectfully requests that any objection to the NSL for the well be waived.

Please evidence your waiver by executing below returning one (1) copy of this letter to me at your earliest convenience.

Your favorable consideration and prompt reply will be appreciated.

Very Truly Yours,

OXY USA WTP Limited Partnership

Re: NSL Waiver Piglet 21 State #4 SL: 873' FSL & 1164' FWL BHL: 873' FSL & 1164' FWL Section 21: SWSW Township 17 South, Range 28 East Eddy County, New Mexico

Colin D. Barnett Landman

hereby waives any protest or objection I to the non-standard location ofthe Piglet 21 State #4. ' ! '

, hereby waives any protest or objection;to the non-standard location ofthe Piglet 21 State #6. ' .

B y : _ Name: Its:

Date:

April 13,2012 Piglet 21 State #4 & #6 NSL Waiver Page 2 of 2

WORKING INTEREST PARTNERS

McCombs Energy LLC 5599 San Felipe, Ste. 1200 Houston, Texas 77056

Voyager Gas Corporation C/o CCEC Operating Co Agent 6630 Cypresswood Dr: #200 Spring, Texas 77379

Andrews Oil LP C/o DJA LLC General Partner Suite 300-A 1015 Bee Cave Woods Drive Austin, Texas 78746

OXY USA WTP Limited Partnership S Oreenway Plaza, Suite (10, Houston, Texas 77046 P.O. Box 4284, Houston, Taxas 77210-4294 CHrecl: 713.350.4933 Far 713.945.8649 Ctfa_banwtt6oxy.com

April 13,2012

Re: NSL Waiver Plelet 21 State #4 SL: 873'FSL & 1164* FWL BHL: 873' FSL & 1164'FWL Section 21: SWSW Township 17 South, Range 28 East Eddy County, New Mexico

Dear Partners:

NSL Waiver Piglet 21 State #6 SL:1635' FSL & 334* FWL BHL: 1635' FSL & 334' FWL Section 21: NWSW | Township 17 South, Range 28 East Eddy County, New Mexico

It has come to the attention of OXY USA WTP Limited Partnership ("OXY") that the referenced wells are at non-standard locations, encroaching upon the SESW (Piglet 21 State #4) and the; SWSW (Piglet 21 State #6) of Section 21, Township 17 South, Range 28 East. OXY will be filing applications with the New Mexico Oil Conservation Division for approval of the non-standard locations and therefore, OXY hereby respectfully requests that any objection to the NSL for the well be waived.

Please evidence your waiver by executing below returning one (1) copy of this letter to me at your earliest convenience.

Your favorable consideration and prompt reply will be appreciated.

Very Truly Yours,

OXY USA WTP Limited Partnership

Colin D. Barnett Landman

MCCOMBS ENERGY L A R R Y WYONT Vice P R E S I D E N T

location of the Piglet 21 State #4.

MCCOMBS ENERGY location of^»PHer^Y^HtE#6.

VICE PRESIDENT

_, hereby waives any protest or objection to the non-standard

, hereby waives any protest or objection to the non-standard

Date:

MCCOMBS E N E R G Y LARRY WYONT

V I C E P R E S I D E N T

5 Greenway Plaza, Suite 110, Houston, Texas 77046 P.O. Box 4294, Houston, Texas 77210-1294 Direct: 713.3S0.4933 Fax:.713.985.8849 Colin.bametl8oxy.com

NSL Waiver Piglet 21 State #6 ' SL: 1635* FSL & 334'FWL BHL: 1635' FSL & 334' FWL Section 21: NWSW Township 17 South, Range 28 East Eddy County, New Mexico

Dear Partners:

It has come to the attention of OXY USA WTP Limited Partnership ("OXY") that the referenced wells are at non-standard locations, encroaching upon the SESW (Piglet 2jl State #4) and the SWSW (Piglet 21 State #6) of Section 21, Township 17 South, Range 28 East. OXY will be filing applications with the New Mexico Oil Conservation Division for approval of the non-standard locations and therefore, OXY hereby respectfully requests that any objection to the NSL for the well be waived. j

Please evidence your waiver by executing below returning one (l)icopy of this letter to me at your earliest convenience. !

Your favorable consideration and prompt reply will be appreciated. f

Very Truly Yours,

OXY USA WTP Limited Partnership

C K ? - •. : Colin D. Barnett Landman

OXY USA WTP Limited Partnership O X Y

A w b s*fe'y °* OcrdintaJ Potafeum Cofponton

April 13, 2012

Re: NSL Waiver Piglet 21 State #4 SL: 873' FSL & 1164' FWL BHL: 873' FSL & 1164* FWL Section 21: SWSW Township 17 South, Range 28 East Eddy County, New Mexico

(T$& (̂ AJhtlArXU}>̂ \ hereby waives any protest or objection to the non-standard location of the Piglet 21 State #4.

, hereby waives any protest or objection to the non-standard location ofy«n> Piglet 21 State #6.

Date: AflAiL- /L>> 2612- I

Brooks, David K., EMNRD

From: Sent: To: Subject: Attachments:

Brooks, David K., EMNRD Wednesday, May 30, 2012 5:27 PM Jennifer_duarte@oxy.com Piglet 21 State #4; NSL Application ROO 22 State #8 - NSL application

Dear Ms. Duarte

Please see my email from earlier today regarding your NSL application for the ROO 22 State #8.

This application is subject to two of the issues discussed in the prior email. Once again, you have not furnished a signed waiver from one of the parties, and the notices you have attached do not contain the required admonition. Accordingly, it will be necessary for you to send a new notice to Andrews with the required admonition, and inform us of your doing so. Unless you obtain a waiver from Andrews, we will have to defer processing this application till 20 days after you send the new notice to Andrews.

This application, unlike the Roo 22 State #8 and the Piglet 21 State #6, does not involve a diagonal encroachment.

Sincerely

David K. Brooks Legal Examiner

l

Brooks, David K., EMNRD

From: Sent: To: Subject: Attachments:

Mr. Brooks,

We have redone the notices on the Piglet #1, #4 & Roo #8 and a copy of the notices are attached along with proof of mailing. We are having to do some research on the Piglet #6 and will send you that information as soon as we can. In the mean time, can we proceed with the 3 that are attached? Please let me know if there is anything else that is needed for you to proceed with the approval process. Thank you very much!

Thank you, Jennifer Duarte Regulatory Analyst Occidental Permian Ltd. I Oxy USA WTP LP I Oxy USA Inc. Phone: 713/513-6640, Fax: 713/985-8781

From: Brooks, David K., EMNRD rmailto:david.brooks@state.nm.us1 Sent: Thursday, May 31, 2012 10:06 AM To: Duarte, Jennifer A

Subject: Piglet 21 State # 1 ; NSL Application

Dear Ms. Duarte

This is a CORRECTION to my email regarding this well sent late yesterday.

Apparently it was too late in the afternoon for me. In addition to misspelling "Piglet", I erroneously stated that the proposed location encroaches diagonally toward Unit P of Section 22. Of course, it actually encroaches toward Unit M of Section 22.

Sincerely

David K. Brooks

l

OXY USA WTP Limited Partnership i l " A sutisi&aiy of Oca'dental Petroleum Corpotat'on

5 Greenway Plaza, Suite 110, Houston, Texas 77046 P.O. Box 4294, Houston, Texas 77210-4294 Direct: 713.513.6680 Fax: 713.985.4927 Tiffany_Pdllock@oxy.com

May 3.1,2012

Re: Non-Standard Location Waiver Piglet 21 State U SL: 873'FSL & 1164'FWL Section 21: SWSW Township 17 South, Range 28 East Eddy County,: New Mexico

Dear Partners:

The referenced well is at a non-standard location, encroaching upon the SESW of Section 21, Township 17 South, Range 28 East. OXY will be filing applications with the New Mexico Oil Conservation Division for approval of the non-standard location ("NSL") and therefore, OXY hereby respectfully requests that any objection to the NSL for the well be waived.

Please evidence your waiver by executing below returning one (1) copy of this letter to me at your earliest convenience. Objections should be filed, in writing, with the Oil Conservation Division within 20 days from the date the division receives the application.

Your favorable consideration and prompt reply will be appreciated.

Very Truly Yours,

OXY USA WTP Limited Partnership

Tiffany C. Pollock, CPL Landman

location ofthe Piglet 21 State #4. hereby waives any protest or objection to the non-standard

By:__ Name: Its:

Date:

May 31,2012 Piglet 21 State #4 NSL Waiver Page 2 of2

WORKING INTEREST PARTNERS

Andrews Oil LP C/o DJA LLC General Partner Suite 3 00-A 1015 Bee Cave Woods Drive Austin, Texas 78746

McCombs Energy LLC 5599 San Felipe, Ste.: 1200 Houston, Texas 77056

Voyager Gas Corporation C/o CCEC Operating Co Agent 6630 Cypresswood Dr. #200 Spring, Texas 77379

PS Form 3Sr.O, June ?00? S i r Hr«rso (or Instruct fern