MAR Ob ) ) ) ) ) ) ) ) ) ) ) ) ) BEFORE THE OIL AND GAS CONSERVATION COMMISSIO OF THE STATE OF COLORADO \ IN THE MATTER OF THE APPLICATION OF

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1 BEFORE THE OIL AND GAS CONSERVATION COMMISSIO OF THE STATE OF COLORADO \ MAR Ob IN THE MATTER OF THE APPLICATION OF EDGE ENERGY II, LLC FOR AN ORDER VACATING ORDER NO AND ESTABLISHING FOUR APPROXIMATE 1,280- ACRE DRILLING AND SPACING UNITS AND ESTABLISHING WELL LOCATION RULES APPLICABLE TO THE DRILLING AND PRODUCING OF WELLS FROM THE NIOBRARA, FORT HAYS, CODELL AND CARLILE FORMATIONS FOR CERTAIN LANDS IN TOWNSHIP 8 NORTH, RANGES 64 THROUGH 67 WEST, 6TH P.M., UNNAMED FIELD, WELD COUNTY, COLORADO. CAUSE NO. 535 DOCKET NO TYPE: SPACING APPLICATION Edge Energy II, LLC, Operator No ("Applicant" or "Edge", by and through its attorneys, Welborn Sullivan Meek & Tooley, P.C., respectfully submits this Application to the Oil and Gas Conservation Commission of the State of Colorado ("Commission" for an order vacating Order No , only as it pertains to the Application Lands, and establishing four approximate 1,280-acre drilling and spacing units and establishing well location rules applicable to the drilling of wells and producing of oil, gas, and associated hydrocarbons from the Niobrara, Fort Hays, Codell and Carlile Formations covering certain lands in Township 8 North, Ranges 64 through 67 West, 6th P.M., Weld County, Colorado. In support of its Application, Applicant states as follows: 1. Applicant is a limited liability company duly authorized to conduct business in the State of Colorado and is a registered operator in good standing with the Commission. 2. Applicant owns leasehold interests in the following lands ("Application Lands" and is therefore an owner as defined by Commission Rules and the Conservation Act with standing to bring this Application: Drilling and Spacing Unit ("DSU" No. 1 Township 8 North. Range 64 West, 6th P.M. Section 27: All Section 28: All

2 DSU No. 2 Township 8 North, Range 64 West, 6th P.M. Section 33: All Section 34: All DSU No. 3 Township 8 North. Range 65 West, 6th P.M. Section 19: All Township 8 North, Range 66 West, 6th P.M. Section 24: All DSU No. 4 Township 8 North. Range 67 West, 6th P.M. Section 15: All Section 16: All A reference map of the Application Lands is attached hereto. 3. Rule a. provides that a well drilled in excess of 2,500 feet in depth shall be located not less than 600 feet from any lease line, and shall be located not less than 1,200 feet from any other producible or drilling oil or gas well when drilling to the same source of supply, unless authorized by order of the Commission upon hearing. All of the Application Lands are subject to this Rule for the Fort Hays, Codell, and Carlile Formations. Sections 27, 33, and 34, Township 8 North, Range 64 West, 6th P.M., Section 19, Township 8 North, Range 65 West, 6th P.M., Section 24, Township 8 North, Range 66 West, 6th P.M., and Section 15, Township 8 North, Range 67 West, 6th P.M., are subject to this Rule for the Niobrara Formation. 4. On March 8, 2012, the Commission issued Order No which established eight approximate 640-acre drilling and spacing units for certain lands located Townships 8 and 9 North, Ranges 59 through 64 West, 6th P.M., and allow one horizontal well in each of the units, for the production of gas and associated hydrocarbons from the Niobrara Formation. Section 28, Township 8 North, Range 64 West, 6th P.M., and Section 16, Township 8 North, Range 67 West, 6th P.M. of the Application Lands are subject to this Order for the Niobrara Formation. 5. There is one existing horizontal well within DSU No. 4 of the Application Lands. The Black Hollow #3H (API No is a horizontal well oriented north-south within Section 16, Township 8 North, Range 67 West, 6th P.M. producing from the Niobrara Formation. Applicant is the operator of this well and requests that this well continue to be governed by existing Order No

3 6. To promote efficient drainage within the Niobrara, Fort Hays, Codell and Carlile Formations of the Application Lands, to protect correlative rights and to avoid waste, the Commission should vacate Order No , only as it pertains to the Application Lands, and establish four approximate 1,280-acre drilling and spacing units for the Application Lands and approve a total of up to twelve (12 horizontal wells within each unit. 7. Applicant requests that the productive interval of the permitted horizontal wells within the units be located no closer than 150 from the productive interval of any other horizontal wellbore within the same unit producing oil, gas, and associated hydrocarbons from the Niobrara, Fort Hays, Codell and Carlile Formations and be located no closer than 600 feet from the unit boundaries, without exception being granted by the Director. 8. Applicant requests the establishment of the above-proposed drilling and spacing units and authority to drill only those wells necessary to determine the well density that will allow for efficient drainage of the Niobrara, Fort Hays, Codell and Carlile Formations, will prevent waste, will not adversely affect correlative rights and will assure the greatest ultimate recovery of oil, gas and associated hydrocarbon substances from the Niobrara, Fort Hays, Codell and Carlile Formations. Applicant maintains that the proposed drilling and spacing units are not smaller than the maximum area that can be economically and efficiently drained by the proposed wells in such drilling and spacing units. Applicant further maintains that wells drilled in the above-proposed drilling and spacing units will have no adverse effect on correlative rights of adjacent owners. 9. The Applicant states the proposed horizontal wells will be drilled from no more than four locations within each unit or at a legal location(s on adjacent lands, without exception being granted by the Director. 10. The names and addresses of the interested parties according to the information and belief of the Applicant are set forth in Exhibit A attached hereto and made a part hereof, and the undersigned certifies that copies of this Application shall be served on each interested party within the next seven days as required by Rule 503. e and 507.b.(1. [Remainder of page intentionally left blank] 3

4 WHEREFORE, Applicant respectfully requests that this matter be set for hearing, that notice be given as required by law and that upon such hearing this Commission enter its order consistent with Applicant's proposals as set forth above. Dated this 1st day of March, Respectfully submitted, WELBORN SULLIVAN MECK & TO OLEY, P.O. By: Joseph C'.'Pierzchala Geoffrey W. Storm Welborn Sullivan Meek & Tooley, P.O. Attorneys for Applicant th Street, Suite Applicant's Address: th St., Ste Denver, CO Attn: Erik Larsen; Ben Turner Phone: {

5 VERIFICATION STATE OF COLORADO ss. CITY & COUNTY OF DENVER Erik Larsen with Edge Energy II, LLC, upon oath deposes and says that he has read the foregoing Application and that the statements contained therein are true to the best of his knowledge, information and belief. EDGE ENERGY II, LLC Erik Larsen Subscribed and sworn to before me this / Larsen for Edge Energy II, LLC. day of March, 201 8, by Erik Witness my hand and official seal. MELISSA A. MORMAN NOTARY PUBLIC STATE OF COLORADO NOTARY ID MY COMMISSION EXPIRES AUGUST 29, 2021 \ Notary Public My Commission Expires: toc&i { } 5

6 EXHIBIT A INTERESTED PARTIES Weld County Department of Planning Services Troy Swain 1555 North 17th Avenue Greeley CO Colorado Department of Public Health and Environment Kent Kuster 4300 Cherry Creek Drive South Denver, CO Colorado Parks and Wildlife Brandon Marette Northeast Region Office 6060 Broadway Denver, CO DSU No. 1 - Sees. 27 and 28. T8N. R64W Kerr McGee Oil and Gas Onshore th Street, Suite 1800 Stanley Groves 207 E. 2nd St. Moulton, IA Julianne Groves Fritz Pikes Peak Drive Greeley, CO Kathleen Groves 2943 Glendale Ave. #2 Evans, CO Jane Groves 8836 Julia Dent Drive St. Louis, MO Judith Lyn Hagert 18 Aspin Court Eagle Point, OR Gretchen Lynne Webb P. O. Box 1089 Frederick, CO Peter W. Gray 2710 West 6th St. Washaugal, WA Dillard Family LLC County Road 74 Eaton CO Robert Bruce Waldo SW 86th Ave. Tualatin, OR James T. Holt 7804 Lewis Ave. Billings, MT Susan Gray-Hawkins 949 Springs Way Ashland, OR

7 Robert M. Waldo th Avenue Greeley, CO Steven A. Gray 408 Friendship St. Ashland, OR Lillis Raboin, fka Lillis Waldo 2411 Knuell Street Manitowoc, Wl Teva Scheer 627 Downey Rd. North Saanich, BC V8L5M6 John W. Kinkade, individually and as Suzanne Dee Lundahl Trustee of the Dorothy Waldo Kinkade 584 A Stable Road Revocable Trust Piaia, HI Glendeve Drive Loveland, CO John R. Gray Revocable Living Trust 408 Friendship St. Stokes Family Trust Ashland, OR Hershim Ct. Roseville, CA Christine Ruth 3220 Trinidad Mary E. Meleny Evan, CO South Costilla Court Littleton, CO Sherry Lee DeGennaro Everett R. Kirkelie and Dorothy M. Kirkelie Declaration of Trust 6059 La Goleta Rd. Goleta, CA Janet Jungk Rangeline Rd. Brighton, IL Calvin Ehmke P. O. Box 354 Dighton, KS McClellan 1994 Revocable Trust 2348 Nicklaus Dr. Oceanside, CA Calobria Court #202 Naples, FL Bruce H. Waldo th Ave. Greeley, CO John Waldo Kinkade 3208 Glendevey Dr. Loveland, CO Grant M. Waldo 4710 West 10th Street Road Greeley, CO Marybeth Elizabeth Groves 703 Moon Mullen Lane Fairbanks, AK DSU No. 2 - Sees. 33 and 34, T8N, R64W Kerr-McGee Oil & Gas Onshore, LP th Street, Suite 1800 Susan L. Gray-Hawkins 949 Spring Way Ashland, OR

8 Mary E. Mleny Bruce H. Waldo th Ave South Costilla Ct. Littleton, CO Greeley, CO Geraldine May Gray John Waldo Kinkade 3208 Glendevey Dr. 949 Springs Way Ashland, OR Loveland, CO Erna Kohloff Family Trust and Henry F. Grant M. Waldo West 1 0th Street Road Greeley, CO Teva Scheer 627 Downey Road North Kohloff, individually WCR 78 Eaton, CO United States of America Bureau of Land Management Saanich, B.C. V8L5M Youngfield St. Susan J. Danielson 2612 W. Buenta Vista Dr. Greeley, CO Lakewood, CO Hugh E. Perry 7911 Quitman Westminster, CO DSU No. 3 - Sec. 19, T8N, R65W and Sec. 24, T8N, R66W Enerplus Resources (USA Corporation th Street, Suite 2200 City of Thornton 9500 Civic Center Drive Thornton, CO Kerr McGee Oil and Gas Onshore LP th Street, Suite 1800 DSU No. 4 - Sees. 15 and 16. T8N, R67W Kerr McGee Oil and Gas Onshore LP th Street, Suite

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10 BEFORE THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO IN THE MATTER OF THE APPLICATION OF EDGE ENERGY II, LLC FOR AN ORDER VACATING ORDER NO AND ESTABLISHING FOUR APPROXIMATE 1,280- ACRE DRILLING AND SPACING UNITS AND ESTABLISHING WELL LOCATION RULES APPLICABLE TO THE DRILLING AND PRODUCING OF WELLS FROM THE NIOBRARA, FORT HAYS, CODELL AND CARLILE FORMATIONS FOR CERTAIN LANDS IN TOWNSHIP 8 NORTH, RANGES 64 THROUGH 67 WEST, 6TH P.M., UNNAMED FIELD, WELD COUNTY, COLORADO. CAUSE NO. 535 DOCKET NO TYPE: SPACING AFFIDAVIT OF MAILING STATE OF COLORADO CITY AND COUNTY OF DENVER I, Joseph C. Pierzchala, of lawful age, and being first duly sworn upon my oath state and declare: That I am the attorney for Edge Energy II, LLC and that on or before March 8, 2018, I caused a copy of the attached Application to be deposited in the United States mail, postage prepaid, addressed to the parties on the Exhibit A to the Appliication. Jose ph C. Pie rzchala Subscribed and sworn to before me PO dyyh 7, Witness my hand and official seal. MELISSA A, MORMAN NOTARY PUBLIC STATE OF COLORADO NOTARY ID MY COMMISSION EXPIRES AUGUST 29, 2021 /7Z Notary Public ( My commission expires: I 9