State Oil and Gas Board

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State Oil and Gas Board Board Members JAMES W. SANDIFER, Isola Chairman CARROLL V. HOOD, Hazlehurst Vice-Chairman JAMES S. MEEK, Batesville EILEEN N. SHAFFER, Ridgeland JOSEPH S.

1 State Oil and Gas Board Board Members JAMES W. SANDIFER, Isola Chairman CARROLL V. HOOD, Hazlehurst Vice-Chairman JAMES S. MEEK, Batesville EILEEN N. SHAFFER, Ridgeland JOSEPH S. ZUCCARO, Natchez State of Mississippi 500 Greymont Avenue, Suite E Jackson, MS Telephone (601) December 31, 2003 WALTER L. BOONE, JR. STATE OIL & GAS SUPERVISOR The regular monthly meeting of the State Oil and Gas Board will be held in Suite E, 500 Greymont Avenue, Jackson, Mississippi, on the 21st day of January, 2004 commencing at 9:00 a.m., with an administrative meeting to consider such business as may come before the Board and at 9:30 a.m. to consider the dockets hereinafter set out. Applications are on file in the office of the State Oil and Gas Board, Suite E, 500 Greymont Avenue, Jackson, Mississippi, for your examination. All exhibits and data to be used in a hearing in support of a petition will be filed with the Supervisor at least nine (9) days prior to the hearing. DOCKET NUMBER CONTINUED DOCKET TINSLEY FIELD Yazoo County. Petition of Merit Energy Company requesting the Board to reform the presentlyexisting 40-acre oil unit for the Powell No. 10 Well to a 320-acre gas unit, situated in the S/2 of Section 36, Township 11 North, Range 3 West, with the resulting exception location 920 from the North line of the proposed unit for production from the Hosston Formation and to integrate all interests in said new unit. ORDER NO DECISION CONTINUED, Extend Test Period Approved JUNCTION CITY FIELD - Clarke County. Petition of Pinebelt Operating Company and Richard Rossie requesting the Board to approve an extension of inactive well status under Rule 28 for certain wells in the field. ORDER NO DECISION - APPROVED AFFIDAVIT GOSHEN SPRINGS FIELD Rankin County. Amended Petition of Denbury Resources, Inc., requesting authority to drill the Barksdale 6-3 No. 1 Well on a 640-acre gas unit, situated in Section 6, Township 7 North, Range 4 East, at an exceptional location for geological reasons 436 from the North line and 1,900 from the West line of the proposed unit to a depth of 16,500 to test the Norphlet Formation and all other formations and pools which may be encountered. ORDER NO DECISION - APPROVED AFFIDAVIT SULLIVAN S HOLLOW FIELD Smith County. Amended Petition of Spooner Petroleum Company, requesting the Board to integrate, with alternate risk charges, all interests in a 320-acre gas unit, situated in Section 29, Township 10 North, Range 15 West, for the drilling of the Johnson 29-1 No. 1 Well at an exceptional location for geological reasons 500 from the East unit line and 1,150 from the North line of Section 29 to a depth of 7,600 to test the Stanley and Christmas Sands of the Eutaw Formations and all other formations and pools which may be encountered. Alternatively, Petitioner requests the Board to integrate all interests in said unit without alternate risk charges. ORDER NO DECISION - APPROVED AFFIDAVIT OAKVALE FIELD Jefferson Davis County. Petition of Senax, Inc., requesting the Board to approve an extension of inactive well status under Rule 28 for certain wells in the field. ORDER NO DECISION - APPROVED ON TESTIMONY 1

2 GITANO FIELD Jones County. Petition of Gulf South Resources, Inc., requesting the Board to allow for fired treating vessels to be placed no closer than 20 from vessels handling and storing crude oil as an exception to Rule 16. ORDER NO DECISION - APPROVED AFFIDAVIT WEST YELLOW CREEK FIELD Wayne County. Petition of Denbury Resources, Inc., requesting the Board to integrate all interests in an exception 40-acre oil unit, situated in the NW/4 of the SW/4 and the NE/4 of the SW/4 of Section 18, Township 9 North, Range 7 West, for the sidetracking of the J. West No. 1 Well from an exceptional off unit surface location to an exceptional bottom hole location for geological reasons not less than 200 from the West unit line to a depth of 10,800 to test the Lower Cretaceous Oil Pool with a full allowable and to rename said well the J. West ST No. 1 Well. ORDER NO DECISION - APPROVED AFFIDAVIT CHAPARRAL FIELD Wayne County. On the Board s own motion, Show Cause Order No was issued to Combine Oil Company as to why it should not be penalized for violation of Rule 45 of the Statewide Rules for failure to clean up an oil spill inside the firewall at the Pete Duvall Fee No. 1 Well, located in Section 18, Township 10 North, Range 6 West. ORDER NO DECISION - DISMISSED WITHOUT PREJUDICE DOCKET NUMBER NEW DOCKET BOLTON FIELD Hinds County. ORDER NO DECISION - CONTINUED DEXTER FIELD Walthall County. inactive well status under Rule 28 for the Morris 35-9 No. 1 Well. ORDER NO DECISION - APPROVED AFFIDAVIT HUB FIELD Marion County. ORDER NO DECISION - APPROVED AFFIDAVIT JUNCTION CITY FIELD Clarke County. inactive well status under Rule 28 for the Land Bros. No. 1 Well. ORDER NO DECISION - APPROVED AFFIDAVIT KNOXO FIELD Marion County. inactive well status under Rule 28 for the Knoxo Gas Unit 8 No. 1 Well and the M. L. Bennet, Jr. No. 1 Well. ORDER NO DECISION - APPROVED AFFIDAVIT KOKOMO FIELD Walthall County. inactive well status under Rule 28 for the Walker 1-3 Well. ORDER NO DECISION - APPROVED AFFIDAVIT WEST LANGSDALE FIELD Clarke County. inactive well status under Rule 28 for the Jarrett-Player No. 1 Well. ORDER NO DECISION - CONTINUED NANCY FIELD Clarke County. ORDER NO DECISION - APPROVED AFFIDAVIT 2

3 NETTLETON FIELD Monroe County. inactive well status under Rule 28 for the Schlicht 4-8 No. 1 Well and the Stovall 5-1 No. 1 Well. ORDER NO DECISION - APPROVED AFFIDAVIT WEST OAKVALE FIELD - Lawrence County. inactive well status under Rule 28 for the Robert H. Myers No. 1 Well. ORDER NO DECISION - APPROVED AFFIDAVIT WEST PAULDING FIELD Jasper County. inactive well status under Rule 28 for the Ike Myers Est No. 1 Well. ORDER NO DECISION - CONTINUED POOL CREEK FIELD Jones County. ORDER NO DECISION - APPROVED AFFIDAVIT SOUTH SUMMERLAND FIELD Covington and Jones Counties. inactive well status under Rule 28 for the Central Oil Co No. 2 Well and the Eastling M C 9-1 No. 1 Well. ORDER NO DECISION - APPROVED AFFIDAVIT WAVELAND FIELD Hancock County. inactive well status under Rule 28 for the Waveland Gas Unit 2 No. 1 Well. ORDER NO DECISION - CONTINUED JUNCTION CITY FIELD Clarke County. Petition of Junction City Oil Company requesting the Board to approve an extension of ORDER NO DECISION - APPROVED AFFIDAVIT EAST MAGEE FIELD Smith and Simpson Counties. Petition of Midroc Operating Company requesting the Board to approve an extension of inactive well status under Rule 28 for the Yelverton No. 1 Well. ORDER NO DECISION - APPROVED AFFIDAVIT PUCKETT FIELD Smith and Rankin Counties. Petition of Hawkeye Drilling Company requesting the Board to approve an extension of ORDER NO DECISION - APPROVED AFFIDAVIT JUNCTION CITY FIELD Clarke County. Petition of Fleming Management, Inc. requesting authority to permanently convert the Robert W. Fleming No. 1H Salt Water Disposal Well, located in Section 33, Township 2 North, Range 17 East, to a conventional Class II saltwater disposal well with an injection interval of 2,704 to 2,962.5' in the Selma Chalk Oil Pool. ORDER NO DECISION - APPROVED AFFIDAVIT SMITH CREEK FIELD Lee County. Amended Petition of Continental Resources, Inc., requesting the Board to integrate, with alternate risk charges, all interests in a 320-acre gas unit, situated in the SW/4 of Section 21 less and except the W/2 of the W/2 of the W/2 of the SE/4, also the SW/4 and the W/2 of the W/2 of the W/2 of the SE/4 of Section 22, Township 11 South, Range 6 East, for the drilling of the Ruff No. 1 Well to a depth of 2,500 to test all productive intervals down through the Evans/Lewis Formations at a regular location. Alternatively, Petitioner requests the Board to integrate all interests in said unit without alternate risk charges. ORDER NO DECISION - CONTINUED 3

4 WEBSTER COUNTY. Petition of Clayton Williams Energy, Inc., requesting the Board to integrate, with alternate risk charges, all interests in a 640-acre gas unit, situated in the SE/4 of Section 11, the SW/4 of Section 12, the NW/4 of Section 13 and the NE/4 of Section 14, Township 21 North, Range 10 East, for the drilling of the Weyerhaeuser No. 1 Well to a depth of 15,000 or a depth sufficient to test the Stone River Formation and all other formations and pools which may be encountered at a regular location. Alternatively, Petitioner requests the Board to integrate all interests in said unit without alternate risk charges. ORDER NO DECISION - APPROVED AFFIDAVIT WAUSAU FIELD Wayne County. Petition of Primal Energy Corporation requesting the Board to integrate, with alternate risk charges, all interests in a 40-acre oil unit, situated in the E/2 of the NW/4 of the NW/4 and the W/2 of the NE/4 of the NW/4 of Section 28, Township 8 North, Range 9 West, for the drilling of the Wausau Prospect 28-4 No. 1 Well, to a depth of 11,400 to test all productive zones down through the Paluxy/Mooringsport Formation at a regular location. Alternatively, Petitioner requests the Board to integrate all interests in said unit without alternate risk charges. ORDER NO DECISION - APPROVED AFFIDAVIT GWINVILLE FIELD Jefferson Davis and Simpson Counties. Petition of Laurel Fuel Company requesting the Board to integrate, with alternate risk charges, all interests in a acre gas unit, situated in Sections 23 and 24, Township 9 North, Range 19 West, for the drilling of the Gwinville No. 2 Well at an exception location for geological reasons 320 from the South line and 1,000 from the West line of Section 24 and an exception distance from the B. D. Walker No. 1 Well to a depth sufficient to test all productive intervals from the top of the Selma Chalk Gas Pool down through the Eutaw-Upper Tuscaloosa Formation. Alternatively, Petitioner requests the Board to integrate all interests in said unit without alternate risk charges. ORDER NO DECISION - APPROVED AFFIDAVIT GWINVILLE FIELD Jefferson Davis and Simpson Counties. Petition of Laurel Fuel Company requesting the Board to approve an extension of ORDER NO DECISION - APPROVED AFFIDAVIT HUB FIELD Marion County. Petition of Skrivanos Engineering, Inc., requesting the Board to integrate, with alternate risk charges, all interests in a 320-acre gas unit, situated in Section 26, Township 2 North, Range 18 West, for the drilling of the Lester No. 1 Well to a depth of 9, 250 to test the Lower Tuscaloosa Formation and all other formations and pools which may be encountered at a regular location. Alternatively, Petitioner requests the Board to integrate all interests in said unit without alternate risk charges. ORDER NO DECISION - APPROVED AFFIDAVIT HUB FIELD Marion County. Petition of Skrivanos Engineering, Inc., requesting the Board to integrate, with alternate risk charges, all interests in an exceptionally configured 320-acre gas unit, situated in Sections 20, 21, 28 and 29, Township 2 North, Range 14 East, and Section 22, Township 2 North, Range 18 West, for the drilling of the Hub Gas Unit 20 No. 1 Well to a depth of 9,250 to test the Lower Tuscaloosa Formation and all other formations and pools which may be encountered at a regular location. Alternatively, Petitioner requests the Board to integrate all interests in said unit without alternate risk charges. ORDER NO DECISION - APPROVED AFFIDAVIT CARSON FIELD Jefferson Davis County. Petition of Moon-Hines-Tigrett Operating Company, Inc., requesting the Board to integrate all interests in a 640-acre gas unit, situated in Section 11, Township 7 North, Range 18 West, for the drilling of the Bullock No. 1 Well at an exception location for geological reasons 330 from the South line and 1,650 from the West line of Section 11 to a depth of 16,100 to test and produce the Hosston Formation and all other formations and pools which may be encountered. ORDER NO DECISION - DISMISSED WITHOUT PREJUDICE 4

5 HEIDELBERG FIELD Jasper County. Petition of Denbury Resources, Inc., requesting the Board to integrate all interests in a 320-acre gas unit, situated in the W/2 of Section 32, Township 1 North, Range 13 East, for the drilling of the J. E. King Gas Unit No. 16 Well as an exceptional sixteenth increased density well to a depth of 4,500 to test the Selma Chalk Formation and all other formations and pools which may be encountered at a regular location. ORDER NO DECISION - APPROVED AFFIDAVIT MONROE COUNTY. Petition of Armadillo Services, Inc., of Alabama requesting the Board to integrate, with alternate risk charges, all interests in a 320-acre gas unit, situated in the N/2 of Section 31, Township 11 South, Range 6 East, for the drilling of the Taylor-Trophy 31-5 No. 1 Well at an exception location for geological and topographical reasons 800 from the West line and 660 from the South line of the proposed unit to a depth of 2,500 to test all productive zones down through the Lewis Sand. Alternatively, Petitioner requests the Board to integrate all interests in said unit without alternate risk charges. ORDER NO DECISION - CONTINUED WILKINSON COUNTY. Petition of Threshold Development Company requesting authority to drill the USA F-9 No. 1 Well, located on a 160-acre gas unit, situated in the S/2 of the NE/4 and the N/2 of the SE/4 of Section 37, Township 4 North, Range 1 East, at an exception location for geological and topographical reasons 200 from the West line of the proposed unit to a depth of 4,000 to test the Frio or Oligoncene Formation. ORDER NO DECISION - APPROVED AFFIDAVIT KINGSTON FIELD Adams County. On the Board s own motion, Show Cause Order No was issued to Clyde W. Alexander as to why he should not be penalized for violation of Statewide Rules 27 and 28 for failure to plug and abandon after production operations ceased in the W. C. Walker No. 6-W Well, located in Section 11, Township 5 North, Range 2 West. ORDER NO DECISION - APPROVED AFFIDAVIT GREENE COUNTY. On the Board s own motion, Show Cause Order No was issued to Atlas Oil & Refining and Roser & Pendleton, Inc., as to why it should not be penalized for violation of Statewide Rules 27 and 28 for failure to plug and abandon after drilling operations ceased in the Lamar Hennington No. 1 Well, located in Section 33, Township 4 North, Range 5 West. ORDER NO DECISION - APPROVED AFFIDAVIT JACKSON GAS FIELD Rankin County. On the Board s own motion, Show Cause Order No was issued to Strahan Oil & Gas, Inc., as to why it should not be penalized for violation of Statewide Rules 27 and 28 for failure to plug and abandon after drilling operations ceased in the Love Petroleum Corp No. 3 Well, located in Section 1, Township 5 North, Range 1 East. ORDER NO DECISION - APPROVED AFFIDAVIT AMITE COUNTY. On the Board s own motion, Show Cause Order No was issued to Magnolia State Oil & Gas Company as to why it should not be penalized for violation of Statewide Rules 27 and 28 for failure to plug and abandon after drilling operations ceased in the C. Anderson No. 1 Well, located in Section 14, Township 3 North, Range 3 East. ORDER NO DECISION - APPROVED AFFIDAVIT BAXTERVILLE FIELD Lamar and Marion Counties. On the Board s own motion, Show Cause Order No was issued to Crown Royalties of Louisiana Inc., as to why it should not be penalized for violation of Statewide Rule 63 for failure to perform a mechanical integrity test on the T. W. Davis No. 1 Well, located in Section 31, Township 2 North, Range 16 West within the prescribed period of time. ORDER NO DECISION - CONTINUED 5

6 ANSLEY FIELD Hancock County. On the Board's own motion, Show Cause Order No was issued to Boca Production Company as to why it should not be penalized for violation of Statewide Rule 28 for failing to petition the Board for an extension of inactive well status and Rule 69 for failing to file Form 21, NORM Survey, for the International Paper Co. No. 1 Well, located in Section 19, Township 9 South, Range 15 West. ORDER NO DECISION - CONTINUED MCKINLEY CREEK FIELD Monroe County. Petition of Kerr-McGee Chemical LLC., requesting authority to conduct temporary injectivity and other similar tests at the HP No. 1 Stratigraphic Test Well, located in Section 30, Township 15 South, Range 18 West, for a period of 180 days as an exception to Statewide Rule 63 with an injection interval of approximately 6,650 to 14,500' in the Middle Stones River Group, Knox Group, Copper Ridge Dolomite, Conasauga Formation, Rome Formation and Weisner Quartzite. ORDER NO DECISION - APPROVED AFFIDAVIT KOLA DOME FIELD Covington County. Petition of Key Production Company, Inc., requesting the Board to correct Order No naming Key Production Company, Inc., as operator of the Thoth No. 1 Well. ORDER NO DECISION - APPROVED AFFIDAVIT Applications on all the above dockets may be examined in the office of the State Oil and Gas Board. Any person may appear before the Board and be heard. Walter Boone STATE OIL AND GAS SUPERVISOR This docket can be viewed on our Internet Home Page at As proclaimed by the Governor of the State of Mississippi, the offices of the State Oil and Gas Board will be closed on the following dates: Thursday and Friday, January 1 & 2, 2004, in observance of New Year s Day and Monday, January 19, 2004 in observance of Robert E. Lee and Martin Luther King, Jr. s Birthdays 6

7 PROPOSED EMERGENCY DOCKET PISTOL RIDGE FIELD Forrest and Pearl River Counties. Petition of Delphi Oil, Inc., requesting authority to integrate all interests in an existing 320-acre gas unit, situated in the W/2 of Section 12, Township 1 South, Range 14 West, for the recompletion of the P. E. Norris No. 2 Well in the Lower Tuscaloosa Formation and any other formations or pools which may be encountered at an existing exception location and to designate Delphi Oil, Inc., as the operator of said well. ORDER NO DECISION - APPROVED AFFIDAVIT EMERGENCY WEST CHICORA FIELD Wayne County. Petition of Rebel Drilling Company, LP, requesting the Board to integrate all interests in a 640-acre gas unit, situated in Sections 19 and 30, Township 7 North, Range 6 West and Sections 24 and 25, Township 7 North, Range 7 West, for the drilling of the West No. 1 Well to a depth of 18,000 to test the Smackover or Norphlet Formations and all other formations and pools which may be encountered at an exception location for geological reasons 839 from the North line of the proposed unit. ORDER NO DECISION - APPROVED AFFIDAVIT EMERGENCY 7

State Oil and Gas Board

State Oil and Gas Board Board Members DAVID A. SCOTT, Jackson Chairman JOHN R. PARKER, Laurel Vice-Chairman JAMES S. MEEK, Batesville JAMES H. HEIDELBERG, Pascagoula CARROLL V. HOOD, Hazlehurst State Of