State Oil and Gas Board

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1 State Oil and Gas Board Board Members JOHN R. PARKER, Laurel Chairman JAMES HEIDELBERG, Pascagoula Vice-Chairman DAVID A. SCOTT, Jackson CARROLL V. HOOD, Hazlehurst JERRY WILBURN, Mantachie State Of Mississippi 500 Greymont Ave, Suite E Jackson, MS Telephone (601) LISA IVSHIN Executive Director HOWARD LEACH Board Attorney Monday, January 23, 2012 The regular monthly meeting of the State Oil and Gas Board will be held in Suite E, 500 Greymont Avenue, Jackson, Mississippi, on the 18 of January, 2012 commencing at 9:00 am with an administrative meeting to consider such business as may come before the Board and at 10:00 am 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 D CONTINUED DOCKET ADAMS COUNTY. Petition of Wallace, et al., requesting the Board to reform the presently-existing acre oil unit for the Wallace et al. No. 1 Well, to a new 40-acre oil unit, situated in Sections 5 and 6, Township 6 North, Range 3 West, for production from the Wilcox Formation. ORDER NO DECISION Continued D CROOKED CREEK FIELD- Wilkinson County. Amended Petition of Alpine Well Service, Inc., requesting authority to reenter and drill the U.S.A No. 2 Well, located on a 40-acre oil unit, situated in the NW/4 of the NE/4 of Section 33, Township 4 North, Range 1 West, at a resulting exception location for geological reasons less than 330' from the North unit boundary, to a depth of 7,100' to test the Wilcox Formation and all other formations and pools that may be encountered, with a full allowable. ORDER NO DECISION Continued D PEARL RIVER COUNTY. Petition of Doerr Operating, LLC, requesting the Board to integrate, with alternate risk charges, all interests in a 320-acre gas unit, situated in the N/2 of Section 20, Township 2 South, Range 16 West, to drill the Doerr Operating 20-7 No. 1 Well at an exception location due to geological reasons 1,975' FNL and 2,493' FEL of Section 20, to a depth of 6,800' to test the Selma Chalk Formation and all other formations and pools that may be encountered. Alternatively, Petitioner requests the Board to integrate all interests in said unit without alternate risk charges. ORDER NO DECISION Continued D GWINVILLE FIELD - Jefferson Davis and Simpson Counties. Petition of Will-Drill Production Company, Inc., requesting the Board to reform the presently-existing 320-acre gas unit for the G.G.U No. 3 Well, to a 40-acre oil unit, situated in Section 26, Township 9 North, Range 19 West, for production from the Eutaw Formation at a regular location and to integrate all interests in said unit. ORDER NO DECISION Approved Affidavit D PICKENS FIELD - Yazoo and Madison Counties. On the Board's own motion, Show Cause Order D was issued to Kouga Energy Group, LLC, as to why it should not be penalized for violation of Statewide Rules 16, Fire Hazard; Rule 24, Well Logs; and Rule 45, Waste by Pollution, for the Board of Education No. 6 Well, located in Section 16, Township 12 North, Range 2 East. ORDER NO DECISION Continued

2 D D BRYAN FIELD - Jones and Jasper Counties. Amended petition of Eagle Oil & Gas Co., requesting authority to conduct a pilot waterflood program for the non-unitized Cotton Valley "A" and "B" Oil Pools. ORDER NO DECISION Approved Affidavit BENTONIA FIELD - Yazoo and Madison Counties. Amended Petition of Bulldog Operating Company, LLC, requesting the Board to approve an extension of inactive well status under Statewide Rule 28 for certain wells in the field. ORDER NO DECISION Approved Affidavit D WEST BEAVER CREEK FIELD - Wilkinson County. Petition of Griffin & Griffin Exploration, LLC, requesting the Board to approve an extension of inactive well status under Statewide Rule 28 for the CMR-USA Well. ORDER NO DECISION Continued D TOMMIE JO FIELD - Wilkinson County. Petition of Griffin & Griffin Exploration, LLC, requesting the Board to approve an extension of inactive well status under Statewide Rule 28 for the BR F-2-1 and the BR F-1-1 Wells. ORDER NO DECISION Continued D D D D D D D RALEIGH FIELD - Smith County. Petition of Tellus Operating Group, LLC, requesting authority to convert the Raleigh Field Unit No. 1, located in Section 28, Township 2 North, Range 7 East, to an Enhanced Oil Recovery Well with an injection interval from 12,100' - 13,500' in the Lower Cretaceous Pool. ORDER NO DECISION Continued NORTH CYPRESS CREEK FIELD - Wayne County. Petition of Oglesby Oil Company requesting the Board to approve an extension of inactive well status under Statewide Rule 28 for certain wells in the field. ORDER NO DECISION Approved Affidavit EAST HEIDELBERG FIELD - Jasper County. Petition of Crown Exploration and Production Company requesting the Board to approve an extension of inactive well status under Statewide Rule 28 for the Rowell B A No. 4, the Culpepper 13-9 and the Culpepper Wells. ORDER NO DECISION Approved Affidavit FAYETTE FIELD - Jefferson County. Petition of McGowan Working Partners, Inc., requesting the Board to designate the Mrs. A. M. Stewart C-1 Well, located in Section 27, Township 9 North, Range 1 West, as a plugged and abandoned well. ORDER NO DECISION Approved Affidavit NORTH LAKE LUCILLE FIELD - Adams County. Petition of McGowan Working Partners, Inc., requesting the Board designate the N. H. Breaux H 3 Well, located in Section 10, Township 4 North, Range 3 West, as a Plugged and Abandoned Well. ORDER NO DECISION Continued SHIELDSBORO FIELD - Adams County. Petition of McGowan Working Partners, Inc., requesting the Board designate the N. H. Breaux H 19 Well, located in Section 9, Township 4 North, Range 3 West, and the N. H. Breaux H 21 Well, located in Section 9, Township 4 North, Range 3 West, as Plugged and Abandoned Wells. ORDER NO DECISION Continued DEXTER FIELD - Walthall AND MARION Counties. On the Board's own motion, Show Cause Order was issued to E. B. Germany & Sons, LLC, as to why it should not be penalized for violation of Rule 16, Fire Hazard, for the Joe N. Pittman A-1 Well, located in Section 2, Township 1 North, Range 12 East. ORDER NO DECISION Continued

3 D D D D D D MCCOMB FIELD - Pike County. On the Board's own motion, Show Cause Order was issued to E. B. Germany & Sons, LLC, as to why it should not be penalized for violation of Rule 28, Plug and Abandonment, for the Watkins No. 1 Well, located in Section 2, Township 4 North, Range 7 East. ORDER NO DECISION Continued WEST HEIDELBERG FIELD - Jasper County. Petition of Denbury Onshore, LLC, requesting authority to directionally drill the WHFU 39-9 No. 7 Well, located in Section 34, Township 1 North, Range 12 East, as an Enhanced Oil Recovery Well, with an injection interval of 4,950 5,300 in the West Heidelberg Unit Oil Pool. ORDER NO DECISION Approved Affidavit GLUCKSTADT FIELD - Madison County. Petition of Denbury Onshore, LLC, requesting the Board to integrate, with alternate risk charges, all interests in the existing exceptional sized 1, acre gas unit, situated in Sections 25 and 36, Township 8 North, Range 2 East, Sections 30 and 31, Township 8 North, Range 3 East, Section 6, Township 7 North, Range 3 East and Section 1, Township 7 North, Range 2 East, to drill the Anderson Estate No. 1 Well from an exceptional off unit surface location due to topographical reasons 1,900' FNL and 1,020' FWL of Section 25, to a depth of 17,550' to test the Northlet Formation and all ofther formations and pools that may be encountered at a regular bottomhole location. Alternatively, Petitioner requests the Board to integrate all interests in said unit without alternate risk charges. ORDER NO DECISION Approved Affidavit CENTER POINT FIELD - Lincoln County. Petition of KFG Petroleum Corporation requesting the Board to integrate all interests in the previously-permitted 80-acre oil unit, situated in the S/2 of the NE/4 of Section 33, Township 6 North, Range 6 East, to drill the L. H. Quin No. 2 Well to a depth of 10,900' to test the Lower Tuscaloosa Oil Pool and all other formations and pools that may be encountered at a regular location. ORDER NO DECISION Approved Affidavit GLASSCOCK ISLAND FIELD - Adams County. Petition of Belle Oil, Inc., requesting authority to reenter and drill the USA No. 1 Well, located in Section 14, Township 5 North, Range 4 West, as a Saltwater Disposal Well with an injection interval of 4,105 4,120 in the Sparta Formation. ORDER NO DECISION Approved Affidavit MCCOMB FIELD - Pike County. Petition of E. B. Germany and Sons, LLC, requesting the Board to approve an extension of inactive well status under Statewide Rule 28 for the Watkins No. 1 Well. ORDER NO DECISION Continued D WEST MALLALIEU FIELD - Lincoln County. Petition of Denbury Onshore, LLC, requesting authority to increase the disposal zone in the West Mallalieu Unit 8-15 No. 1 Saltwater Disposal Well, located in Section 8, Township 6 North, Range 8 East, from 6,650' - 7,020' to 4,694' - 7,020' in the Wilcox Formation. ORDER NO DECISION Dismissed without Prejudice DOCKET NUMBER D NEW DOCKET GILLIAM CHUTE FIELD - Jefferson County. Petition of Anderson Operating, LLC, requesting the Board to approve an extension of inactive well status under Statewide Rule 28 for the Burkley Phillips No. 1 Well. ORDER NO DECISION Approved Affidavit

4 D D D D AMITE COUNTY. Petition of EnCana Oil and Gas (USA), Inc., requesting the Board to integrate, with alternate risk charges, all interests in an exceptional sized acre oil unit, situated in Sections 25, 36 and 37, Township 1 North, Range 5 East, to horizontally drill the Lawson 25H-1 Well, from an exception surface location due to topographical reasons 150 FNL and 1,300 FEL of Section 25, to a depth of 11,800 to test the Tuscaloosa Marine Shale Formation and all other formations and pools that may be encountered at an exception bottomhole location 330 FSL and 660 FEL of Section 36, with the right to horizontally drill up to three additional increased density wells with an unrestricted eighteen month test period for each well to establish a maximum efficiency rate (MER). Alternatively, Petitioner requests the Board to integrate all interests in said unit without alternate risk charges. ORDER NO DECISION Approved Affidavit OLDENBURG FIELD - Franklin County. Petition of Miss-Lou Operating, LLC, requesting the Board to reform the presentlyexisting 360-acre gas unit for the T. J. Landers Estate No. 1 Well, to a new 40-acre oil unit, situated in Sections 25 and 34, Township 7 North, Range 2 East, for production from the Lower Tuscaloosa Formation at a regular location, and to integrate, with alternate risk charges, all interests in said new unit. Alternatively, Petitioner requests the Board to integrate all interests in said unit without alternate risk charges. ORDER NO DECISION Approved Affidavit CROOKED CREEK FIELD - Wilkinson County. Petition of Alpine Well Service, Inc., requesting authority to reenter and drill the Crosby- Young No. 1 Well, located in Section 26, Township 4 North, Range 1 West, as a Saltwater Disposal Well with an injection interval of 3, in the Sparta Formation. ORDER NO DECISION Approved Affidavit WEST ENTERPRISE FIELD - Amite County. Petition of EnCana Oil and Gas (USA), Inc., requesting the Board to reform the presentlyexisting 640-acre oil unit for the Joe Jackson 4-13H Well, to a new exceptional sized 1, acre oil unit, situated in Sections 4 and 9, Township 2 North, Range 3 East, for production from the Tuscaloosa Marine Shale Formation and to integrate, with alternate risk charges, all interests in said new unit. Petitioner is also requesting authority to horizontally drill the Joe Jackson 4H-2 Well as an increased density well, from an exception surface location due to topographical reasons 846 FNL and 1,522 FEL of Section 4, to a depth of 11,600 to test the Tuscaloosa Marine Shale Formation and all other formations and pools that may be encountered at an exception bottomhole location 330 FSL and 660 FEL of Section 9, with the right to horizontally drill up to two additional increased density wells on the unit, with an unrestricted eighteen month test period for each well to establish a maximum efficiency rate (MER). Alternatively, Petitioner requests the Board to integrate all interests in said new unit without alternate risk charges. ORDER NO DECISION Approved Affidavit D D D D LEAF RIVER FIELD - Covington County. inactive well status under Statewide Rule 28 for the S. R. A Speed No. 1 and the W. W. Speed No. 1 Wells. ORDER NO DECISION Approved Affidavit FREE STATE FIELD - Jones County. inactive well status under Statewide Rule 28 for the Frankie Smith No.3 and the Frankie Smith No. 5 Wells. ORDER NO DECISION Approved Affidavit VINTAGE FIELD - Jefferson Davis County. inactive well status under Statewide Rule 28 for the Bordeaux No. 1 Well. ORDER NO DECISION Approved Affidavit BAXTERVILLE FIELD - Lamar and Marion Counties. inactive well status under Statewide Rule 28 for the certain wells in the field. ORDER NO DECISION Approved Affidavit

5 D D JOHNS FIELD - Rankin County. Petition of Pan Southern Petroleum Corp., requesting the Board to approve an extension of inactive well status under Statewide Rule 28 for the Cox A L 33-5 No. 1 and the E. N. Ross Jr. No. 3 Wells. ORDER NO DECISION Approved Affidavit AMITE COUNTY. Petition of EnCana Oil and Gas (USA), Inc., requesting the Board to integrate, with alternate risk charges, all interests in an exceptional sized 1,951-acre oil unit, situated in Sections 28, 31 and 40, Township 1 North, Range 2 East, to horizontally drill the Ash 31H- 1 Well, from an exception surface location due to topographical reasons 7, FNL and 1,886 FEL of Section 31, to a depth of 12,500 to test the Tuscaloosa Marine Shale Formation at an exception bottomhole location 660 FNL and 1,893 FWL of Section 28. Petitioner also requests authority to drill the Ash 31H-2 Well as an increased density well from an exception surface location 8,018 FSL and 1,887 FWL of Section 31, to a depth of 12,500 to test the Tuscaloosa Marine Shale Formation at an exception bottomhole location 660 FNL and 1,953 FWL of Section 40, with the right to horizontally drill up to six additional wells on the unit, with an unrestricted eighteen month test period for each well to establish a maximum efficiency rate (MER). Alternatively, Petitioner requests the Board to integrate all interest in said unit without alternate risk charges. ORDER NO DECISION Approved Affidavit D D D SOUTH SUMMERLAND FIELD - Covington, Jones and Smith Counties. Petition of J. R. Pounds, Inc., requesting the Board to extend the test period for the M. C. Easterling 9-1 No. 1 Well, situated in Section 9, Township 9 North, Range 14 West, to April 18, 2012 in the Cotton Valley Formation. ORDER NO DECISION Approved Affidavit POPLARVILLE FIELD - Pearl River County. Petition of Carl E. Gungoll Exploration, LLC, requesting authority to plug the Batson- McGehee Unit 1 No. 1 Well, situated in Section 8, Township 3 South, Range 16 West as an exception to Statewide Rule 28. ORDER NO DECISION Approved Affidavit GITANO FIELD - Jones County. Petition of Tiger Production Company, LLC, requesting the Board to approve an extension of inactive well status under Statewide Rule 28 for the Hinton 10-6 No. 2 Well. ORDER NO DECISION Approved Affidavit D D D D D PETAL SALT DOME - Forrest County. Petition of Enterprise Products Operating, LLC, requesting the Board to approve the configuration of the existing Underground Storage Well No. 11, situated in Section 25, Township 5 North, Range 13 West, as an exception to Statewide Rule 64. ORDER NO DECISION Approved Affidavit WAVELAND FIELD - Hancock County. Petition of Hillcorp Energy Company, requesting the Board to approve an extension of inactive well status under Statewide Rule 28 for certain wells in the field. ORDER NO DECISION Approved Affidavit PRAIRIE BRANCH FIELD - Clarke County. Petition of Osyka Permian, LLC, requesting the Board to approve an extension of inactive well status under Statewide Rule 28 for the Masonite No. 2 Well. ORDER NO DECISION Continued NORTH SAND HILL FIELD - Greene County. Petition of Osyka Permian, LLC, requesting the Board to approve an extension of inactive well status under Statewide Rule 28 for the F. J. Hubbard 3-12 No. 4, the Kirby 4-9 No. 2 and the Franklin 4-10 No. 2 Wells. ORDER NO DECISION Continued EMINENCE SALT DOME FIELD - Covington County. Petition of Transcontinental Gas Pipeline Company requesting authority to move the previously permitted surface location of the Cavern 3 Relief Well, situated in Section 5, Township 7 North, Range 14 West, to a new surface location FEL and FSL of Section 5. ORDER NO DECISION Approved Affidavit

6 D D D D D D D BUTTAHATCHIE RIVER GAS STORAGE FIELD - Monroe and Lowndes Counties. Petition of Metano Energy III, LP, requesting the Board to amend the Special Field Rules so as to redefine the geographic limits of the field. ORDER NO DECISION Approved Affidavit Emergency KNOXO FIELD - Marion and Walthall Counties. inactive well status under Statewide Rule 28 for the McCain No. 1 Well. ORDER NO DECISION Approved Affidavit SANDY HOOK FIELD - Pearl River and Marion Counties. inactive well status under Statewide Rule 28 for the Eva M. Hurst No. 2Well. ORDER NO DECISION Approved Affidavit HUB FIELD - Marion County. inactive well status under Statewide Rule 28 for certain wells in the field. ORDER NO DECISION Approved Affidavit TYLERTOWN FIELD - Walthall County. inactive well status under Statewide Rule 28 for the Tylertown No. 1 Well. ORDER NO DECISION Approved Affidavit FLORA FIELD - Madison County. On the Board s own motion, Show Cause Order was issued to BPS Operating Services, as to why it should not be penalized for violation of Statewide Rule 63, Underground Injection Control, for the FFU Well, located in Section 35, Township 9 North, Range 1 West. ORDER NO DECISION Continued PISTOL RIDGE FIELD - Forrest and Pearl River Counties. On the Board s own motion, Show Cause Order was issued to Doerr Operating, LLC, as to why it should not be penalized for violation of Statewide Rule 45, Waste by Pollution, for the Delphi Oil 7-2 No. 2 Well, located in Section 7, Township 1 South, Range 13 West. ORDER NO DECISION Continued 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. Lisa A. Ivshin OIL & GAS BOARD SUPERVISOR This docket can be viewed on our Internet Home Page at

7 Emergency Docket Docket Number D D NORTH WOODVILLE - Wilkinson County. Petition Longbranch Energy, LP, requesting authority to drill the Longbranch No. 1 SWD Well, located Section 2, Township 2 North, Range 2 West, as a saltwater disposal well, with an injection interval of 4,815' to 5,350' in the Sparta Formation. ORDER DECISION Approved Affidavit Emergency TCHULA LAKE FIELD - Holmes and Humphries Counties. Petition of Moon-Hines-Tigrett Operating Co., Inc., requesting authority to continue to flare gas from the Shadrack Davis Jr., et al No. 2 Well, located on a acre oil unit, situated in Section 8, Township 15 North, Range 1 West, and the Sarah Davis No. 1 Well, located on the acre oil unit, situated in Section 8, Township 15 North, Range 1 West, without any time restriction to determine if it is economical to construct pipeline facilities and if the level of inert gas in said wells is accurate. ORDER DECISION Approved Affidavit Emergency D D BAXTERVILLE FIELD - Lamar and Marion Counties. Petition of Tellus Operating Group, LLC, requesting the Board to reform the presentlyexisting 40-acre oil unit for the J. M. Andrew No. 55 Well, to a new 320-acre gas unit, situated in Sections 4 and 5, Township 1 North, Range 16 West, for production from the Selma Chalk Gas Pool. ORDER DECISION Approved Affidavit Emergency BAXTERVILLE FIELD - Lamar and Marion Counties. Petition of Tellus Operating Group, LLC, requesting authority to drill the I. H. Bass No. 159 Well, located on a 40-acre oil unit, situated in the NW/4 of the SE/4 of Section 8, Township 1 North, Range 16 West, as an increased density well at an exception location for geological reasons 2,583' FEL and 2,001' FSL of Section 8, to a depth of 9,000' to test the Lower Tuscaloosa Oil Pool and all other formations and pools that may be encountered. ORDER DECISION Approved Affidavit Emergency D NORTH CORBIN BRANCH FIELD -Franklin County, Petition of Wilcox Energy Company requesting authority to reenter and complete the Harrison Et Al No. 2 Well, located in Section 28, Township 7 North, Range 3 East, as a saltwater disposal well with an injection interval from 2, in the Sparta Formation. ORDER DECISION Approved Affidavit Emergency D D D D RALEIGH FIELD - Smith County. Petition of Tellus Operating Group, LLC, requesting authority to convert the Raleigh Field Unit No. 1, located in Section 27, Township 2 North, Range 7 East, to an Enhanced Oil Recovery Well with an injection interval from 12,100' - 13,500' in the Lower Cretaceous Pool. ORDER DECISION Approved Affidavit Emergency UNION CHURCH FIELD - Jefferson,Copiah,Lincoln Counties. Petition of Ventex Operating Corp., requesting the Board to approve the already drilled Bertha Varnado 12-4 No. 1 Well, located on a 640-acre gas unit, situated in Sections 1, 2, 11 and 12, Township 8 North, Range 4 East, as a tubingless completion for production from the Rodessa Gas Pool, as an exception to Statewide Rule 18. ORDER DECISION Approved Affidavit Emergency NORTH WAUSAU - Wayne County. Petition of Venture Oil and Gas, Inc., requesting authority to flare gas from the Morrison No. 1 Well, located on a 640-acre gas unit, situated in Section 17, Township 8 North, Range 9 West. ORDER DECISION Approved Affidavit Emergency JASPER COUNTY. Petition of Renaissance Petroleum Company, LLC, requesting the Board to extend the test period for the Kiewit 18-9 No. 1 Well, located in Section 18, Township 2 North, Range 12 East, for an additional 60 days in the Smackover Formation. ORDER DECISION Approved Affidavit Emergency

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