ARKANSAS OIL AND GAS COMMISSION PUBLIC HEARING MINUTES December 06, :00 a.m. Little Rock, Arkansas

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ARKANSAS OIL AND GAS COMMISSION PUBLIC HEARING MINUTES December 06, 2016 10:00 a.m. Little Rock, Arkansas On or before December 06, 2016 the Arkansas Oil and Gas Commission ordered the Director of the Commission to place the subjects designated Regular Docket Numbers: 107-2016-12, 108-2016-12, 109-2016-12, 110-2016-12, 111-2016-12, 012-2016-12, 113-2016- 12, 114-2016-12, 115-2016-12, 016-2016-12, 117-2016-12,118-2016-12, 119-2016-12, 120-2016-12, 121-2016-12, 122-2016-12, 123-2016-12, 124-2016-12, 125-2016-12, 126-2016-12, 087-2016-11, 088-2016-11, 102-2016-11, 103-2016-11, 127A-2016-12, 128A-2016-12 and 129A-2016-12. The hearing was called to order at 10:00 am on December 06, 2016, with the following Commissioners in attendance: Chairman Chad White, Vice Chairman Frank Morledge and Commissioners Mike Davis, Jim Phillips, George Carder, Chris Weiser, Jerry Langley, Lee Dawkins and Tim Smith. The Chairman welcomed all parties who were present.

Docket #: 107-2016-12 Applicant: Stephens Production Company Subject: Unleased Mineral Interest Integration; Non-Consenting Working Interest Integration Location: Sec. 14-T6N-R25W Field: General Rule B-44 Well Spacing Area County: Logan Applicant requests the integration of the unleased mineral interest and non-consenting leasehold working interest owners. Applicant is proposing an election to lease at $650.00 per net mineral acre and a 1/6 th royalty. Absent an election, applicant requests the integration of the mineral interests at $650.00 per net mineral acre with a 1/6 th royalty. Applicant requests the Commission assess a 400% risk factor for all wells. As Applied For White 2 nd x Vote Count Morledge x Carder x 8/0/1 Phillips Motion x Weiser x Smith x

Docket #: 108-2016-12, Location: Sec. 22-T8N-R32W Field: Massard Applicant requests an extension of Temporary Abandonment status for its Acme Brick 5 well located in Sec. 22-T8N-R32W, Sebastian County, Arkansas, for a period of three years. Morledge x Carder 2 nd x 7/0/2

Docket #: 109-2016-12 Location: Sec. 19-T6N-R29W Field: General Rule B-44 Well Spacing Area Applicant requests an extension of Temporary Abandonment status for its BJ Lowe 4-19 well located in Sec. 19-T6N-R29W, Sebastian County, Arkansas, for a period of three years. Morledge x Carder 2 nd x 7/0/2

Docket #: 110-2016-12 Location: Sec. 19-T6N-R29W Field: General Rule B-44 Well Spacing Area Applicant requests an extension of Temporary Abandonment status for its BJ Lowe 6-19 well located in Sec. 19-T6N-R29W, Sebastian County, Arkansas, for a period of three years. Morledge x Carder 2 nd x 7/0/2

Docket #: 111-2016-12 Location: Sec. 24-T6N-R30W Field: General Rule B-44 Well Spacing Area Applicant requests an extension of Temporary Abandonment status for its Ben 1 well located in Sec. 24-T6N-R30W, Sebastian County, Arkansas, for a period of three years. Morledge x Carder 2 nd x 7/0/2

Docket #: 112-2016-12 Location: Sec. 19-T6N-R29W Field: General Rule B-44 Well Spacing Area Applicant requests an extension of Temporary Abandonment status for its Connors 3-19 well located in Sec. 19-T6N-R29W, Sebastian County, Arkansas, for a period of three years. Morledge x Carder 2 nd x 7/0/2

Docket #: 113-2016-12 Location: Sec. 19-T6N-R29W Field: General Rule B-44 Well Spacing Area Applicant requests an extension of Temporary Abandonment status for its Dale Cochran 2 well located in Sec. 19-T6N-R29W, Sebastian County, Arkansas, for a period three years. Morledge x Carder 2 nd x 7/0/2

Docket #: 114-2016-12 Location: Sec. 24-T6N-R30W Field: General Rule B-44 Well Spacing Area Applicant requests an extension of Temporary Abandonment status for its Dawson 6-24 well located in Sec. 24-T6N-R30W, Sebastian County, Arkansas, for a period of three years. Morledge x Carder 2 nd x 7/0/2

Docket #: 115-2016-12 Location: Sec. 19-T9N-R30W Field: Alma County: Crawford Applicant requests an extension of Temporary Abandonment status for its Earl Ross 3-19 well located in Sec. 19-T9N-R30W, Crawford County, Arkansas, for a period of three years. Morledge 2 nd x Carder x 8/0/1 Smith x

Docket #: 116-2016-12 Location: Sec. 6-T6N-R26W Field: General Rule B-44 Well Spacing Area County: Logan Applicant requests an extension of Temporary Abandonment status for its Gulley 2-6 well located in Sec. 6-T6N-R26W, Logan County, Arkansas, for a period of three years. Morledge 2 nd x Carder x 8/0/1 Dawkins x

Docket #: 117-2016-12 Location: Sec. 28-T8N-R27W Field: Aetna County: Franklin Applicant requests an extension of Temporary Abandonment status for its Hudson 1 well located in Sec. 28-T8N-R27W, Franklin County, Arkansas, for a period of three years. Morledge 2 nd x Carder x 9/0/0 Dawkins x Smith x

Docket #: 118-2016-12 Location: Sec. 28-T8N-R27W Field: Aetna County: Franklin Applicant requests an extension of Temporary Abandonment status for its Hudson 2 well located in Sec. 28-T8N-R27W, Franklin County, Arkansas, for a period of three years. Morledge 2 nd x Carder x 9/0/0 Dawkins x Smith x

Docket #: 119-2016-12 Location: Sec. 27-T8N-R32W Field: Massard Continued

Docket #: 120-2016-12 Location: Sec. 21-T8N-R32W Field: Massard Applicant requests an extension of Temporary Abandonment status for its Larco 1 well located in Sec. 21-T8N-R32W, Sebastian County, Arkansas, for a period of three years. Morledge 2 nd x Carder x 7/0/2

Docket #: 121-2016-12 Location: Sec. 20-T8N-R32W Field: Massard Applicant requests an extension of Temporary Abandonment status for its Port Authority 3-20 well located in Sec. 20-T8N-R32W, Sebastian County, Arkansas, for a period of three years. Morledge 2 nd x Carder x Davis x 6/0/3

Docket #: 122-2016-12 Location: Sec. 20-T8N-R32W Field: Massard Applicant requests an extension of Temporary Abandonment status for its Port Authority 4-20 well located in Sec. 20-T8N-R32W, Sebastian County, Arkansas, for a period of three years. Morledge x Carder x Davis x 7/0/2 Dawkins x Phillips 2 nd x

Docket #: 123-2016-12 Location: Sec. 28-T8N-R32W Field: Massard Applicant requests an extension of Temporary Abandonment status for its Porter D 4-28 well located in Sec. 28-T8N-R32W, Sebastian County, Arkansas, for a period of three years three years. Morledge x Carder x Davis x 7/0/2 Dawkins x Phillips 2 nd x

Docket #: 124-2016-12 Location: Sec. 29-T8N-R27W Field: Aetna County: Franklin Applicant requests an extension of Temporary Abandonment status for its Ruloph 1 well located in Sec. 29-T8N-R27W, Franklin County, Arkansas, for a period of three years. Morledge 2 nd x Carder x 7/0/2

Docket #: 125-2016-12 Location: Sec. 3-T6N-R31W Field: General Rule B-44 Well Spacing Area Applicant requests an extension of Temporary Abandonment status for its Ruth Walker 6-3 well located in Sec. 3-T6N-R31W, Sebastian County, Arkansas, for a period of three years. Morledge 2 nd x Carder x 7/0/2

Docket #: 126-2016-12 Location: Sec. 3-T6N-R31W Field: General Rule B-44 Well Spacing Area Applicant requests an extension of Temporary Abandonment status for its Ruth Walker 7 well located in Sec. 3-T6N-R31W, Sebastian County, Arkansas, for a period of three years. Morledge 2 nd x Carder x 8/0/1 Smith x

Docket #: 087-2016-11 Attorney: Tom Daily Applicant: SWN Production (Arkansas), LLC Subject: Authority to Drill and Produce Unleased Mineral Interest Integration Location: Sec. 11-T9N-R9W Sec. 2-T9N-R9W Field: General Rule B-43 Well Spacing Area County: Cleburne Dismissed Docket #: 088-2016-11 Attorney: Tom Daily Applicant: SWN Production (Arkansas), LLC Subject: Unleased Mineral Interest Integration Location: Sec. 12-T9N-R9W Field: General Rule B-43 Well Spacing Area County: Cleburne Dismissed

Docket #: 102-2016-11 Attorney: Tom Daily Applicant: SWN Production (Arkansas), LLC Subject: Authority to Drill and Produce Location: Sec. 2-T9N-R9W Sec. 1-T9N-R9W Sec. 12-T9N-R9W Sec. 11-T9N-R9W Field: General Rule B-43 Well Spacing Area County: Cleburne Dismissed Docket #: 103-2016-11 Attorney: Tom Daily Applicant: SWN Production (Arkansas), LLC Subject: Authority to Drill and Produce Location: Sec. 2-T9N-R9W Sec. 1-T9N-R9W Sec. 12-T9N-R9W Sec. 11-T9N-R9W Field: General Rule B-43 Well Spacing Area County: Cleburne Dismissed

Docket #: Attorney: Applicant: Subject: Location: Field: County: 127A-2016-12 STAFF Live Oak Energy, Inc Well Abandonment Sec. 18-T18S-R21W Sec. 7-T15S-R24W Dorcheat Macedonia / Midway West Columbia / Lafayette The Commission Staff requests an Order declaring all wells formerly operated by Live Oak Energy, Inc. ( Operator ) abandoned under the authority in Ark. Code Ann. 15-71-110, 15-71-115, and 15-72-217 As Applied For Morledge x Carder x Davis Motion x 9/0/0 Dawkins x Langley 2 nd x Weiser x Smith x

Docket #: Attorney: Applicant: Subject: Location: Field: County: 128A-2016-12 STAFF Allen, Bobby D. dba Wildcat Operating Comp Order to Compel Continued Docket #: Attorney: Applicant: Subject: Location: Field: County: 129A-2016-12 STAFF Beren Corporation Well Abandonment Sec. 23-T17S-R16W Sec. 13-T18S-R17W Shuler, Lisbon East Union Continued

2. OPEN DOCKET / PUBLIC COMMENTS No public comments. 3. DIRECTORS REPORT A) The Commission reviewed and approved the November 2016 Minutes. B) The Director reviewed the November 2016 Budget Report. C) Director reviewed Governor s Office of Transformation initiatives. D) Director reviewed status of ongoing discussions with ADEQ concerning MOU s dealing with dual jurisdictions on SWD wells and spills. The Hearing adjourned at 12:30 p.m. on December 06, 2016.