110-2010-02 - aogc2.state.ar.us applications archive...resume of efforts to lease casas minerals,...

JERRY L . CANFIELD, P .A .

THOMAS A. DAILY, P .A .

WYMAN R. WADE, JR . , P .A .

DOUGLAS M. CARSON, P .A .

ROBERT R . BRIGGS, P.A. † *

C . MICHAEL DAILY †

COBY W. LOGAN

L. MA TTH EW D AVI S, P.A . †

COLBY ROE

* Fayetteville Office

† Al so L icensed in Oklahoma

DAILY & WOODSA PROFESSIONAL LIMITED LIABILITY COMPANY

ATTORNEYS AT LAW

KMW BUILDING58 SOUTH SIXTH STREET

P.O. BOX 1446FORT SM ITH, AR 72902

TELEPHON E (479) 782-0361FAX (479) 782-6160

______________

COMMERCE PARK I I BUILDING2049 EAST JOYC E BOULEV ARD, STE. 301

FAYETTEV ILLE, AR 72703TELEPHON E (479) 582-0361

FAX (479) 251-8111

JAMES E. WEST

PHILLIP E. NORVELL *

DALE CARLTON *

OF COUNSEL

_______

HARRY P . DAILY (1886-1965)

JOHN P. WO ODS (1886-1976)

JOHN S. DAILY (1912-1987)

February 2, 2010

Arkansas Oil and Gas Commission301 Natural Resources Drive, Suite 102Little Rock, Arkansas 72205

Re: ORDER REFERENCE NO. 110-2010-02

Application of SEECO, Inc. for Integration of All Unleased Mineral Interests andNon-consenting Working Interests in a unit described as Section 18, Township 9North, Range 18 West, Pope County, Arkansas

Commissioners:

SEECO, Inc., 2350 N. Sam Houston Parkway E, Houston, TX 77032, hereby applies tothe Arkansas Oil and Gas Commission for the integration of all unleased mineralinterests and non-consenting working interests in its proposed drilling unit which isdescribed above.

1. The proposed drilling unit is an established unit as defined in paragraph (f) ofArkansas Oil and Gas Commission General Rule B-43. Applicant proposes to drill ahorizontal well from a non-exceptional surface location in the Northwest Quarter downto a non-exceptional bottom hole location in the Southwest Quarter of the above-described unit. The proposed well will be drilled to a total vertical depth of 3,341 feet totest the Fayetteville Shale Formation. Applicant has obtained one or more oil and gasleases covering its proposed drill site.

2. Applicant owns oil and gas leases covering a substantial part of the proposedunit. Applicant should be named as operator of the well. The person or persons to beintegrated are shown in Exhibit "A" attached hereto and made a part hereof.

3. Applicant has made diligent efforts to negotiate with the non-participatingleasehold working interest owners, each of said parties owning an oil and gas leaseholdinterest in the proposed unit, but applicant has been unable to secure an assignment ofthe leasehold interest on an equitable basis or to secure participation by said parties inthe drilling of the proposed well.

4. Applicant states that it has made repeated efforts to negotiate with the owners ofthe unleased mineral interests in order to agree on a plan of development of said drillingunit; that those owners have been offered an opportunity to participate in the proposedwell; that they have been offered a fair and reasonable bonus consideration for theexecution of an oil and gas lease covering their interests; that they have been furnishedwith a proposed oil and gas lease and a copy of the AAPL operating agreement formwhich applicant proposes to use in connection with the drilling of said well; but that all ofthe efforts of the applicant have produced no agreement by said parties.

5. Applicant states that it is in the best interest of conservation and the protection ofcorrelative rights of all interested parties that the proposed unit be developed for oil andgas production without undue delay.

6. In order that applicant may proceed with the orderly development of said unit,applicant hereby requests that the Arkansas Oil and Gas Commission issue its order, inthe alternative, that:

(a) The owners of non-consenting oil and gas leasehold workinginterests indicated above shall participate in the cost of drilling,testing and completion of the test well to be drilled by applicant onthe captioned unit, subject to the terms of an Operating Agreementwhich substantially employs the terms of the AAPL Operatingagreement, with a COPAS attached.

(b) All of the non-consenting oil and gas leasehold working interestswithin the proposed unit shall be force pooled and integrated intosaid unit, and a reasonable risk factor shall be established andassessed as a penalty against said integrated interest.

7. Applicant further states that due to the risks and costs inherent in the drilling ofthe proposed well, the Commission should fix a reasonable risk factor to be assessedas a penalty against the integrated interests within the unit. The risk factor should beapplied to the proportionate cost and expense of drilling, completing and equipping thewell, which would have been borne by the interest of said parties had they participated. Applicant requests that if the integrated parties do not elect within 15 days afterissuance of the Commission's order as between alternatives (a) and (b), it shall beassumed that the integrated parties elected alternative (b) in lieu of the right toparticipate in the working interest in said unit.

8. Applicant requests that the Arkansas Oil and Gas Commission set this matter forpublic hearing, and after same, issue its order, in the alternative, that:

(a) Each of the owners of the unleased mineral interests indicatedabove execute and deliver to applicant a one year oil and gaslease, on an AAPL lease form, for a bonus consideration of

$1000.00 per net mineral acre to be paid as fair and reasonablecompensation in lieu of the right to participate in the workinginterest in said unit, and that said oil and gas lease provide for a 1/6royalty on oil and gas.

(b) Each of the owners of unleased mineral interests indicated abovebe force pooled and integrated into the captioned unit withassessment of a reasonable risk factor penalty against theirinterest.

(c) The owners of unleased mineral interests shall participate in thecost of drilling, testing and completion of the test well to be drilledby applicant on the captioned unit, subject to the terms of anoperating agreement which substantially employs the terms of theAAPL Operating Agreement.

Applicant further requests that said mineral owners be required to elect within fifteen(15) days after issuance of the Commission's order which method will be pursued in thedevelopment of the above described unit, and, in the event no election is made, that itshall be assumed that the owner of said unleased mineral interest has elected to accepta bonus of $1,000.00 per net mineral acre as compensation in lieu of the right toparticipate in the working interest in said unit, and with the royalty to be 1/6.

9. Applicant further states that due to the risks and costs inherent in the drilling ofthe proposed well, the Commission should fix a reasonable risk factor to be assessedas a penalty against the integrated interests within the unit. The risk factor should beapplied to the proportionate cost and expenses of drilling, completing and equipping thewell, which would have been borne by the interest of said parties had they participated.

10. Applicant further requests that this Commission's order specifically provide thatany party electing either to participate or be force pooled subject to recoupment of a riskfactor penalty be bound by the terms of the attached AAPL Operating Agreement for thelife of commercial production within the unit so that all future unit operations might beproposed pursuant to the provisions of such agreement without the necessity of futureaction by this Commission.

11. Applicant also requests that said order be made applicable to any unknownspouse, heir, devisee, personal representative, successor or assign of said parties.

12. The names and addresses of parties interested in this proceeding are set forth inExhibit "A" attached hereto and made a part hereof.

13. Please note the appearance of Thomas A. Daily of Daily & Woods, P.L.L.C., P.O.

Box 1446, Fort Smith, Arkansas, 72902, on behalf of applicant.

Very truly yours,

Thomas A. Dailyjmt

Langford 09-18 #1-18H Section 18 – T9N – R18W Pope County, Arkansas

EXHIBIT A

INTERESTED PARTIES MINERAL OWNERS

Bewley, Emma Lee, Heirs See Page 1 of Exhibit B

Cary, Catherine See Page 2 of Exhibit B

Cary, James See Page 2 of Exhibit B

Cary, John C. See Page 2 of Exhibit B Cary, Loren See Page 2 of Exhibit B

Casas Minerals, LLC an Arkansas Limited Liability Company See Page 3 of Exhibit B

Chambers, John Ed, III See Page 4 of Exhibit B

Cloar, Mary Kathy See of Exhibit B

Cogswell, Margaret Faye aka Margaret Whitten Hamm See Page 6 of Exhibit B

Counce, Kathryn Sloan See Page 7 of Exhibit B

DMS Reserves, LLC See Page 8 of Exhibit B

Fields, Joey Beth See Page 9 of Exhibit B Garrigus, Joseph A. See Page 10 of Exhibit B

Hamm, Arthur, Heirs See Page 11 of Exhibit B

Hamm, W. R. aka William Ralph Hamm, Heirs See Page 12 of Exhibit B

Page 1 of 3


EXHIBIT A

INTERESTED PARTIES

Hickman, C. S. aka Charles S. Hickman, Heirs See Page 13 of Exhibit B

Hurley, Leonard, Heirs See Page 14 of Exhibit B

Hurley, W. S., Heirs See Page 15 of Exhibit B

Jones, Eugenia Chambers See Page 16 of Exhibit B

Laymon, Chad See Page 17 of Exhibit B

Meeks, Patricia Chambers See Page 18 of Exhibit B

Meiers, Trilby aka Trilby Jewel Meier See Page 19 of Exhibit B

Papadopoulos, Dona Clay See Page 20 of Exhibit B

Sloan, Barbara Ann See Page 21 of Exhibit B

Sloan, Clay aka Clay A. Sloan, Heirs See Page 22 of Exhibit B Sloan, John T. See Page 23 of Exhibit B

Talkington, Sylvia, Heirs See Page 24 of Exhibit B

Workman, Phyllis See Page 25 of Exhibit B WORKING INTEREST OWNERS:

BP America Production Company See Page 26 of Exhibit B

Page 2 of 3


EXHIBIT A

INTERESTED PARTIES

Page 3 of 3

Chesapeake Exploration, LLC See Page 27 of Exhibit B KCS Resources, Inc. See Page 29 of Exhibit

Sedna Energy, Inc. See Page 30 of Exhibit B


EXHIBIT B

RESUME OF EFFORTS TO LEASE Emma Lee Bewley, Heirs The known heirs of Emma Lee Bewley have leased their interest to SEECO, Inc. (See Below) Heirship of Emma Lee Bewley has been established by heirship affidavit and not by judicial probate order. Therefore, this interest is being named for protection purposes. Clifton D. Lee aka C. Dwight Lee February 2, 2010 Well proposal letter and AFE mailed.

Page 1 of 30


EXHIBIT B

RESUME OF EFFORTS TO LEASE Catherine Cary James Cary John C. Cary Loren Cary The above named parties are remaindermen to the life estate of Sherman B. Chickering who has leased his interest to Chesapeake Exploration, LLC (See Page 29 of Exhibit B). No ratifications were found of record of the lease executed by Sherman B. Chickering. Therefore, this interest is being named for protection purposes pending curative from Chesapeake Exploration, LLC. February 2, 2010 Well proposal letter and AFE mailed.

Page 2 of 30


EXHIBIT B

RESUME OF EFFORTS TO LEASE Casas Minerals, LLC an Arkansas Limited Liability Company November 16, 2009 Searched office records for contact information. Nothing found. Conducted internet

search. Located a possible telephone number. Called, and learned this number is for Perry Mikles. Left a message for him to call.

November 23, 2009 Called, no answer. Left a message. December 4, 2009 Received a telephone call from Perry Mikles. He said that he handles the leasing for the

Chamber’s Heirs. Discussed offer to lease. He said that he will talk it over with the others and for me to call back in a few days.

December 21, 2009 Called and spoke with Perry Mikles, the spokesperson. He informed me that all the

Sloan and Chambers heirs would lease if a Favored Nations Clause was included on the lease.

December 22, 2009 Called Perry Mikles to request a copy of the clause that he wanted added to leases. December 23, 2009 Called and spoke with Perry Mikles again. He said that it would be after the holidays

before he could send me the Favored Nations Clause. December 28, 2009 Called Perry Mikles and left a message requesting Favored Nations Clause. December 30, 2009 Called Perry Mikles requesting clause again. He said he was going out of town and it

would be a few days before he could send me the Favored Nations Clause. December 31, 2009 Requested a courthouse copy of the Dissolution of the Trust for James E. Sloan Trust

dated July 25, 1975. Dissoulution of Trust not found at the courthouse. Called and left a message for John T. Sloan for additional information to locate said Dissoulution. Received requested Favored Nations Clause from Perry Mikles.

January 5, 2010 Received a copy of Will and Final Distribution for the James E. Sloan Trust. January 7, 2010 Received a decision from SEECO, Inc. about the Favored Nations Clause that Perry

Mikles had requested be included on the leases. SEECO, Inc. has declined the offer for the Favored Nations Clause. Forwarded the email to Perry Mikles and asked him if he would still consider leasing without the clause.

January 15, 2010 Received a call from Andre Sloan. He informed me that six people have formed a LLC.

He said he will email the filing information. He said he will speak with Perry Mikles and let me know if they are going to lease or be integrated.

January 19, 2010 Andre Sloan emailed copies of Quit Claim Deed’s of the Sloan family conveying their

minerals to Casas Minerals, LLC an Arkansas Limited Liability Company. January 25, 2010 Received an email from Andre Sloan. He stated that all owner’s affiliated with Casas

Minerals, Inc. have agreed to lease. Lease and related documents being prepared. February 2, 2010 Well proposal letter and AFE mailed.

Page 3 of 30


EXHIBIT B

RESUME OF EFFORTS TO LEASE John Ed Chambers, III November 16, 2009 Searched office records for contact information. Nothing found. Conducted internet



Chamber Heirs. Discussed offer to lease. He said that he will talk it over with the other heirs and for me to call back in a few days.


Chambers heirs would lease if a Favored Nations Clause was included on the lease. December 22, 2009 Called Perry Mikles to request a copy of the clause that he wanted added to leases. December 23, 2009 Called and spoke with Perry Mikles again. He said that it would be after the holidays




January 7, 2010 Received a decision from SEECO, Inc. about the Favored Nations Clause that Perry


January 22, 2010 Sent an email requesting a decision on leasing. Email sent to Perry Mikles. January 25, 2010 No response from email sent to Perry Mikles to date. February 2, 2010 Well proposal letter and AFE mailed.

Page 4 of 30


EXHIBIT B

RESUME OF EFFORTS TO LEASE Mary Kathy Cloar November 15, 2009 Searched office records for contact information. Nothing found. Searched

digital abstract and found a probate for R. D. Hamm that was filed in 1938. The probate listed the names of beneficiaries and heirs. Owner is listed as an heir.

November 23, 2009 Conducted internet search for possible contact information. Located a

possible telephone number. Called, no answer. Left a message. December 2, 2009 Called, no answer. Left a message. December 9, 2009 Received a telephone call from husband of owner. Discussed offer to

lease. Owner stated they had just signed a lease with SEECO, Inc. in another section. He said they would like to receive the same bonus and royalty in this section.

December 21, 2009 Sent lease proposal letter to include new lease terms. January 4, 2010 Called, no answer. Left a message. January 18, 2010 No response to lease proposal letter. Called, no answer. Left a message. January 26, 2010 Called and spoke with owner. She said they are still considering offer. January 27, 2010 Received a call from owner. She stated lease terms they are willing to

accept. Told her I would have to get approval. February 2, 2010 Well proposal letter and AFE mailed.

Page 5 of 30


EXHIBIT B

RESUME OF EFFORTS TO LEASE Margaret Faye Cogswell aka Margaret Whitten Hamm November 15, 2009 Searched office records for contact information. Nothing found. Searched



possible telephone number for owner’s sister who also has an interest in this section. Called, no answer. Left a message.

December 2, 2009 Called, no answer. Left a message. December 9, 2009 Received a telephone call from owner’s brother-in-law. He said he would

get contact information for me on owner and let me know. December 28, 2009 Called, no answer. January 11, 2010 No return call. Called, no answer. January 26, 2010 Called and spoke with Mary Kathy Cloar. Asked if she knew how to

contact owner. She did not have any contact information. Still unable to speak with owner to date. Located a number for owner’s son. Called and he provided a number for his mother, Margaret. Called Margaret and her daughter answered the phone. Discussed lease offer. She said she will talk to her mother about it and get back to me.

February 2, 2010 Well proposal letter and AFE mailed.

Page 6 of 30


EXHIBIT B

RESUME OF EFFORTS TO LEASE Kathryn Sloan Counce November 16, 2009 Searched office records for contact information. Nothing found. Conducted internet



Sloan and Chamber Heirs. Discussed offer to lease. He said that he will talk it over with the others and for me to call back in a few days.





would be a few days before he could send me the Favored Nations Clause. December 31, 2009 Received requested Favored Nations Clause from Perry Mikles. January 7, 2010 Received a decision from SEECO, Inc. about the Favored Nations Clause that Perry



Page 7 of 30


EXHIBIT B

RESUME OF EFFORTS TO LEASE DMS Reserves, LLC November 15, 2009 Searched office records for contact information. Located a possible

address. Conducted internet search. Located a different address. No telephone number listed.

November 23, 2009 Expanded internet search for telephone number. Still nothing found. December 3, 2009 Checked digital abstract. Located a mineral deed with a different address. December 7, 2009 Conducted another internet search to match the new address found.

Located a telephone number for David M. Sansome at this address. December 9, 2009 Called, no answer. Left a message for Mr. Sansome to call. December 27, 2009 No return call. Called again and left a message for Mr.Sansome to call. January 11, 2010 Mailed lease proposal offer. January 15, 2010 Received a call from Mr. Sansome. Discussed offer to lease. Lease terms

unacceptable. February 2, 2010 Well proposal letter and AFE mailed.

Page 8 of 30


EXHIBIT B

RESUME OF EFFORTS TO LEASE Joey Beth Fields November 15, 2009 Searched office records for contact information. Located a possible

address and telephone number. Called, no answer. Left a message. November 27, 2009 Called and spoke with owner. Discussed lease offer. Owner said they

would like to think about it and call back. December 11, 2009 Called, no answer. Left a message. December 27, 2009 Called and spoke with owner. Owner has agreed to lease. Lease and

related documents being prepared. January 4, 2010 Lease and related documents mailed. January 18, 2010 No executed documents received to date. January 21, 2010 Called, no answer. Left a message. January 25, 2010 Still no executed documents received to date. February 2, 2010 Well proposal letter and AFE mailed.

Page 9 of 30


EXHIBIT B

RESUME OF EFFORTS TO LEASE Joseph A. Garrigus November 16, 2009 Searched office records for contact information. Nothing found.

Conducted internet search and found a possible telephone number. Called, no answer. Left a message.

November 24, 2009 Called, no answer. Left a message. December 4, 2009 Received a telephone call from owner. Discussed offer to lease. He said

he will talk it over with his family and let me know. December 31, 2009 Called and spoke with owner. Offered new lease terms. He said that he

might wait for integration, but has not decided yet. He said he will call when he makes a decision.

January 7, 2010 Spoke with owner again. He informed me that he owns an additional

remainder interest to Patricia Garrigus. He said he has not decided if he is going to lease or wait for integration.

January 14, 2010 Called and spoke with owner. Owner has agreed to lease. Lease and

related documents being prepared. January 20, 2010 Lease and related documents mailed. January 25, 2010 No executed documents received to date. February 2, 2010 Well proposal letter and AFE mailed.

Page 10 of 30


EXHIBIT B

RESUME OF EFFORTS TO LEASE Arthur Hamm, Heirs November 15, 2009 Searched office records for contact information. Nothing found. Searched



possible telephone number for owner’s neice, who also has an interest in this section. Called, no answer. Left a message.

December 2, 2009 Called, no answer. Left a message. December 9, 2009 Received a telephone call from owner’s niece’s husband. He said he knew

some of the heirs are now deceased but he would get any information for me on owner and let me know.

December 21, 2009 Expanded internet search. Nothing found. January 6, 2010 Checked with local abstractor and county officials for any information on

owner. No one contacted had any information on owner. January 26, 2010 Spoke with owner’s niece. She said that Arthur was deceased and had two

daughters who were also deceased. She will try to find more information and call back.

Page 11 of 30


EXHIBIT B

RESUME OF EFFORTS TO LEASE W. R. Hamm aka William Ralph Hamm, Heirs Mary Kathy Cloar See Page 5 of Exhibit B Margaret Faye Cogswell See Page 6 of Exhibit B

Page 12 of 30


EXHIBIT B

RESUME OF EFFORTS TO LEASE C. S. Hickman aka Charles S. Hickman, Heirs The known heirs of Charles S. Hickman, Heirs have leased their interest to a third party. (See Page 32 of Exhibit B) The heirship of Charles S. Hickman has not been determined. Therefore, this interest is being named for protection purposes. February 2, 2010 Well proposal letter and AFE mailed.

Page 13 of 30


EXHIBIT B

RESUME OF EFFORTS TO LEASE Leonard Hurley, Heirs Leonard Hurley is deceased, having died in August of 1968. We know that he was survived by a spouse, Mildred, who applied and received letters of administration in Leonard Hurley’s probate case (Pope County case number 5398). The affidavit of death and heirship states that he died without issue or children. The known heir, Mildred Hurley has leased her interest to SEECO, Inc. Therefore, this interest is being named for protection purposes. February 2, 2010 Well proposal letter and AFE mailed in care of Mildred Hurley.

Page 14 of 30


EXHIBIT B

RESUME OF EFFORTS TO LEASE W. S. Hurley, Heirs Joey Beth Fields See Page 9 of Exhibit B Chad Laymon See Page 17 of Exhibit B

Page 15 of 30


EXHIBIT B

RESUME OF EFFORTS TO LEASE Eugenia Chambers Jones November 16, 2009 Searched office records for contact information. Nothing found. Conducted internet











Page 16 of 30


EXHIBIT B

RESUME OF EFFORTS TO LEASE Chad Laymon November 15, 2009 Searched office records for contact information. Located a possible

address and telephone number. Called, no answer. Left a message. November 27, 2009 Called and spoke with owner. Discussed lease offer. Owner said they

would like to think about it and call back. December 11, 2009 Called, no answer. Left a message. December 27, 2009 Called and spoke with owner. Owner has agreed to lease. Lease and

related documents being prepared. January 4, 2010 Lease and related documents mailed. January 18, 2010 No executed documents received to date. January 21, 2010 Called, no answer. Left a message. January 25, 2010 Still no executed documents received to date. February 2, 2010 Well proposal letter and AFE mailed.

Page 17 of 30


EXHIBIT B

RESUME OF EFFORTS TO LEASE Patricia Chambers Meeks November 16, 2009 Searched office records for contact information. Nothing found. Conducted internet











Page 18 of 30


EXHIBIT B

RESUME OF EFFORTS TO LEASE Trilby Meiers aka Trilby Jewel Meier November 15, 2009 Searched office records for contact information. Nothing found. Searched



possible telephone number for owner’s neice, who also has an interest in this section. Called, no answer. Left a message.

December 2, 2009 Called, no answer. Left a message. December 9, 2009 Received a telephone call from owner’s niece’s husband. He said he knew

some of the heirs are now deceased but he would get any information for me on owner and let me know.

December 21, 2009 Expanded internet search. Located an address for a possible heir of

owner. Mailed lease proposal letter. January 6, 2010 Letter was returned as “Unable to Deliver”. All efforts to locate owner

thus far have had no positive results. January 15, 2010 Further researched office files. Located an address for a Mark Meier.

Mailed a letter. January 22, 2010 No response to letter mailed to Mark Meier. January 26, 2010 Spoke with owner’s niece. She informed me that her aunt Trilby is now

deceased and didn’t have any children. January 29, 2010 Unable to determine heirship.

Page 19 of 30


EXHIBIT B

RESUME OF EFFORTS TO LEASE Dona Clay Papadopoulos November 15, 2009 Checked office records. Located a possible address. Conducted internet search. Located a

possible address with no telephone listing. November 23, 2009 Mailed lease proposal letter. December 11, 2009 Mr. John T. Sloan called. Learned that he is a relative of owner. And that I needed to contact Perry

Mikles, for he is the spokesperson for the family. He was able to provide me with a telephone number. He asked that I send an e-mail with all the offer information and the other owner’s names and he will get the contact information that I need. E-mail sent.

December 21, 2009 Called and spoke with Perry Mikles, the spokesperson. He informed me that all the Sloan and

Chambers heirs would lease if a Favored Nations Clause was included on the lease. December 22, 2009 Called Perry Mikles to request a copy of the clause that he wanted added to leases. December 23, 2009 Called and spoke with Perry Mikles again. He said that it would be after the holidays before he

could send me the Favored Nations Clause. December 28, 2009 Called Perry Mikles and left a message requesting Favored Nations Clause. December 30, 2009 Called Perry Mikles requesting clause again. He said he was going out of town and it would be a

few days before he could send me the Favored Nations Clause. December 31, 2009 Received requested Favored Nations Clause from Perry Mikles. January 7, 2010 Received a decision from SEECO, Inc. about the Favored Nations Clause that Perry Mikles had

requested be included on the leases. SEECO, Inc. has declined the offer for the Favored Nations Clause. Forwarded the email to Perry Mikles and asked him if he would still consider leasing without the clause.

January 19, 2010 Received filed copies of Quit Claim Deeds to Casas Minerals, LLC with several of the Sloan

family members involved. Dona Clay Papadopoulos did not convey her minerals into said company.

January 22, 2010 Sent an email requesting a decision on leasing. Email sent to Perry Mikles. January 25, 2010 Received an email from Dona. She informed me that she is not a part of the family LLC (Casas

Minerals, LLC) and that Barbara Sloan her sister is also not a part of the family LLC, (Casas Minerals, LLC). She informed me that she speaks for herself. Sent an email to Dona with new lease terms. Waiting on response.


Page 20 of 30


EXHIBIT B

RESUME OF EFFORTS TO LEASE Barbara Ann Sloan November 15, 2009 Checked office records and located a probate for James E. Sloan. Located an address off of title

memo for owner. Address wasn’t current. November 23, 2009 Conducted internet search for possible contact information. Located a possible address. No

telephone number available. December 3, 2009 Located a telephone number for a John T. Sloan. Called, no answer. Left a message. December 11, 2009 Mr. John T. Sloan called. Learned that he is a relative of owner. And that I needed to contact Perry

Mikles, for he is the spokesperson for the family. He was able to provide me with a telephone number. He asked that I send an e-mail with all the offer information and the other owner’s names and he will get the contact information that I need. E-mail sent.

December 21, 2009 Called and spoke with Perry Mikles, the spokesperson. He informed me that all the Sloan and

Chambers heirs would lease if a Favored Nations Clause was included on the lease. December 22, 2009 Called Perry Mikles to request a copy of the clause that he wanted added to leases. December 23, 2009 Called and spoke with Perry Mikles again. He said that it would be after the holidays before he

could send me the Favored Nations Clause. December 28, 2009 Called Perry Mikles and left a message requesting Favored Nations Clause. December 30, 2009 Called Perry Mikles requesting clause again. He said he was going out of town and it would be a

few days before he could send me the Favored Nations Clause. December 31, 2009 Received requested Favored Nations Clause from Perry Mikles. January 7, 2010 Received a decision from SEECO, Inc. about the Favored Nations Clause that Perry Mikles had

requested be included on the leases. SEECO, Inc. has declined the offer for the Favored Nations Clause. Forwarded the email to Perry Mikles and asked him if he would still consider leasing without the clause.

January 19, 2010 Received filed copies of Quit Claim Deeds to Casas Minerals, LLC with several of the Sloan

family members involved. Barbara Sloan did not convey her minerals into said company. January 22, 2010 Sent an email requesting a decision on leasing. Email sent to Barbara Sloan. January 23, 2010 Received an email from Barbara. She said she would make a decision after she receives an

integration letter. February 2, 2010 Well proposal letter and AFE mailed.

Page 21 of 30


EXHIBIT B

RESUME OF EFFORTS TO LEASE Clay Sloan aka Clay A. Sloan, Heirs Donna Clay Papadopoulos See Page 20 of Exhibit B Barbara Ann Sloan See Page 21 of Exhibit B

Page 22 of 30


EXHIBIT B

RESUME OF EFFORTS TO LEASE John T. Sloan November 15, 2009 Checked office records and located a probate for James E. Sloan. Located an address off

of title memo for owner. Address wasn’t current. November 23, 2009 Conducted internet search for possible contact information. Located a possible address.

No telephone number available. December 3, 2009 Located a telephone number for a John T. Sloan. Called, no answer. Left a message. December 11, 2009 Mr. John T. Sloan called. Learned that he is a relative of owner. And that I needed to

contact Perry Mikles, for he is the spokesperson for the family. He was able to provide me with a telephone number. He stated that the trust has been dissolved in Pope County. He said they did this because they have leased other minerals. He asked that I send an e-mail with all the offer information and the other owner’s names and he will get the contact information that I need. E-mail sent.







January 5, 2010 Received a copy of Will and Final Distribution for the James E. Sloan Trust. January 7, 2010 Received a decision from SEECO, Inc. about the Favored Nations Clause that Perry



Page 23 of 30


EXHIBIT B

RESUME OF EFFORTS TO LEASE Sylvia Talkington, Heirs All the known heirs of Sylvia Talkingto have leased their interest to SEECO, Inc. (See Below) Heirship was determined by judicial proceeding. Pope County, Arkansas P96-145. First National Bank of Russellville, Trustee of the Trusts created under the Last Will and Testament of Randy Talkington aka Randy Talkington, deceased February 2, 2010 Well proposal letter and AFE mailed to Sylvia Talkington, Heirs in care of

First National Bank of Russellville, Turstee of the Trusts created under the Last Will and Testament of Randy Talkington aka Randy Talkington, deceased.

Page 24 of 30


EXHIBIT B

RESUME OF EFFORTS TO LEASE Phyllis Workman November 15, 2009 Checked office records. Located a possible address from title memo. No

telephone number. November 23, 2009 Conducted internet search for telephone number. The address we show

comes up as Workman Farm and a different address is shown for Phyllis Workman. No telephone number available.

December 9, 2009 Mailed lease proposal letter to both addresses. December 18, 2009 Located a possible email address for Robert Workman, the husband of

owner. Sent a message for owner to call. December 21, 2009 Expanded internet search. Located a possible telephone number. Called

and number had been disconnected. December 23, 2009 No response to email. Sent lease proposal letter. December 30, 2009 Searched Pope County Assessors records. Located a possible billing

address in care of Mikel M. Standridge. Mailed lease proposal offer letter to new address.

January 15, 2010 No response to lease proposal letters. Resent an email to Robert

Workman requesting them to call. January 22, 2010 No response to emails or lease proposal letters. January 25, 2010 All efforts to make contact with owner’s have had no positive results. February 2, 2010 Well proposal letter and AFE mailed to last known address.

Page 25 of 30


EXHIBIT B

RESUME OF EFFORTS TO LEASE BP America Production Company BP America Production Company owns a working interest in the following Oil & Gas leases recorded in Pope County, Arkansas:

1) American Heart Association to Stephens Production Company, Riverfront Exploration, LLC and Blue Teton, LLC dated October 26, 2005 and recorded in Oil & Gas book 05-77 at page 284.

2) Sherman Chickering to Stephens Production Company, Riverfront Exploration, LLC and Blue Teton, LLC dated October 26, 2005 and recorded in Oil & Gas book 05-77 at page 298.

3) American Cancer Society to Stephens Production Company, Riverfront Exploration, LLC and

Blue Teton, LLC dated October 26, 2005 and recorded in Oil & Gas book 05-77 at page 310.

4) Bruce Carlson and Marjorie Carlson to Stephens Production Company, Riverfront Exploration, LLC and Blue Teton, LLC dated October 26, 2005 and recorded in Oil & Gas book 05-77 at page 323.

5) Caroline Damsky to Stephens Production Company, Riverfront Exploration, LLC and Blue

Teton, LLC dated October 26, 2005 and recorded in Oil & Gas book 05-77 at page 335.

6) Ottillie “Gypsy” Graves to Stephens Production Company, Riverfront Exploration, LLC and Blue Teton, LLC dated October 26, 2005 and recorded in Oil & Gas book 05-77 at page 349.

7) James Hebard Berman and Joan Berman to Stephens Production Company, Riverfront

Exploration, LLC and Blue Teton, LLC dated October 26, 2005 and recorded in Oil & Gas book 05-77 at page 361.

8) Edward C. Rzesutek and Molly P. Rzesutek to Stephens Production Company, Riverfront Exploration, LLC and Blue Teton, LLC dated October 26, 2005 and recorded in Oil & Gas book 05-77 at page 375.

9) Cook Children’s Hospital to Sylvia Resources, Inc. dated July 11, 2005 and recorded in Oil &

Gas book 05-79 at page 292. Chesapeake Exploration L. L. C. assigned partial interest to BP America Production Company. Said assignment is effective July 1, 2008 and recorded in Oil & Gas book 171 at page 610. February 2, 2010 Well proposal letter and AFE mailed.

Page 26 of 30


EXHIBIT B

RESUME OF EFFORTS TO LEASE Chesapeake Exploration, LLC Chesapeake Exploration, LLC owns a working interest in the following Oil & Gas leases recorded in Pope County, Arkansas:

1) American Heart Association to Stephens Production Company, Riverfront Exploration, LLC and Blue Teton, LLC dated October 26, 2005 and recorded in Oil & Gas book 05-77 at page 284.

2) Sherman Chickering to Stephens Production Company, Riverfront Exploration, LLC and Blue Teton, LLC dated October 26, 2005 and recorded in Oil & Gas book 05-77 at page 298.

3) American Cancer Society to Stephens Production Company, Riverfront Exploration, LLC

and Blue Teton, LLC dated October 26, 2005 and recorded in Oil & Gas book 05-77 at page 310.

4) Bruce Carlson and Marjorie Carlson to Stephens Production Company, Riverfront


5) Caroline Damsky to Stephens Production Company, Riverfront Exploration, LLC and Blue Teton, LLC dated October 26, 2005 and recorded in Oil & Gas book 05-77 at page 335.

6) Ottillie “Gypsy” Graves to Stephens Production Company, Riverfront Exploration, LLC

and Blue Teton, LLC dated October 26, 2005 and recorded in Oil & Gas book 05-77 at page 349.

7) James Hebard Berman and Joan Berman to Stephens Production Company, Riverfront


8) Edward C. Rzesutek and Molly P. Rzesutek to Stephens Production Company, Riverfront


9) Ross Peter Anderson II and Jan Anderson to Stephens Production Company, Riverfront


Page 27 of 30


EXHIBIT B

RESUME OF EFFORTS TO LEASE Chesapeake Exploration, LLC continued from page 27 of Exhibit B

10) Cook Children’s Hospital to Sylvia Resources, Inc. dated July 11, 2005 and recorded in

Oil & Gas book 05-79 at page 292.

11) The Salvation Army to Chesapeake Exploration, LLC dated April 1, 2008 and recorded in Oil & Gas book 08-21 at page 573.

Chesapeake Exploration Limited Partnership, by Affidavit of Identity and Corporate Successorship, is now Chesapeake Exploration, L. L. C. effective August 6, 2007 and recorded in Oil & Gas book 151 at page 239. Chesapeake Exploration L. L. C. assigned partial interest to BP America Production Company (See Page 26 of Exhibit B). Said assignment is effective July 1, 2008 and recorded in Oil & Gas book 171 at page 610.


Page 28 of 30


EXHIBIT B

RESUME OF EFFORTS TO LEASE KCS Resources, Inc. KCS Resources, Inc. owns a working interest in the following Oil & Gas leases recorded in Pope County, Arkansas:

1) Boland Cattle Company, Inc. to KCS Resources, Inc. dated March 22, 2006 and recorded in Oil & Gas book 06-18 at page 667.

2) Jerald Taylor and Rena Taylor to KCS Resources, Inc. dated March 22, 2006 and recorded in Oil & Gas book 06-27 at page 405.


Page 29 of 30


EXHIBIT B

RESUME OF EFFORTS TO LEASE

Page 30 of 30

Sedna Energy, Inc. Sedna Energy, Inc. owns a working interest in the following Oil & Gas leases recorded in Pope County, Arkansas:

1) Floy H. Barton and Ellis Barton to Sedna Energy, Inc. dated February 8, 2006 and recorded in Oil & Gas book 06-25 at page 761.

2) Ruby Hickman Henderson to Sedna Energy, Inc. dated February 8, 2006 and recorded in

Oil & Gas book 06-28 at page 74.

3) Glenn Hickman aka William G. Hickman and Louise Hickman to Sedna Energy, Inc. dated February 21, 2006 and recorded in Oil & Gas book 06-30 at page 107.

4) Harley Henderson to Sedna Energy, Inc. dated February 8, 2006 and recorded in Oil & Gas book 06-36 at page 181.

5) Patsy Reeves and Joseph M. Reeves to Sedna Energy, Inc. dated February 21, 2006 and recorded in Oil & Gas book 06-36 at page 175.

6) Sherri D. Selman, individually and as Attorney in Fact for Brad A. Selman to Sedna Energy, Inc. dated February 8, 2006 and recorded in Oil & Gas book 06-44 at page 475.

7) Larry Hickman to Sedna Energy, Inc. dated February 21, 2006 and recorded in Oil & Gas book 06-55 at page 672.


EXHIBIT “C”Applicant’s statement regarding Operating Agreement

The applicant requests incorporation of the Model Form Joint Operating Agreement

approved by the Arkansas Oil and Gas Commission on October 24, 2006, with Paragraph

III.1.A.(1) of the COPAS providing for a drilling well rate of $7,500.00 and a producing

well rate of $750.00 , and with the following proposed revisions, deletions and/or

insertions, if applicable:

NONE

Well Name: LANGFORD 09-18 #1-18H (208417001A)AFE Date : 1/20/2010

AFE Number : 108467Operator: SEECO

AUTHORIZATION FOR EXPENDITURE

SEECO

2350 N. Sam Houston Pkwy. EHouston, TX 77032281-618-4775

County, State : POPE, ARProspect : NEMO

Depth : 7857

AFE Group : DNW2010CAP_DRL AFE Type : Development D

Prep. By : JT/WT/CN

Job Start Date :

Location : / / - 18 / 9N / 18W

Well Type : GAS

Field : B-43Q/Q/Q-S/T/R:

Working Interest : Before Casing : After Casing :

1654904.424 Yloc : 12864161.23Xloc :Long : -92.95135000 Lat : 35.434254000Surface

Located :

1654912.306 Yloc : 12859689.09Xloc :Long : -92.95134899 Lat : 35.420802999Bott. Hole

Located :

345 ft. from N line 1791 ft. from W line


Lease Name (ID): LANGFORD 09-18 #1-18H19 (208417001A)Current BOPD: 0

Expected BOPD: 0Current MCFPD: 0

Expected MCFPD: 0Current BWPD: 0

Expected BWPD: 0

NRI :

Remarks : Total D&E = 9.0 days; Reentry RR = 13.0 days (2.0 MOB + 9.0 D&E + 2.0 C&S). 3341’ TVD / 4162’ LAT; Cased cemented completion w/ multi-stage frac (11.1 Stages). Mud type = WBM. 1st well on a 3 well pad.

TotalDrilling CompletionIntangible Dry HoleNotes12100070 $11,100 $0 $11,100AIR/GAS DRILLING&RELATED CO $11,10012100100 $186,100 $0 $186,100DAYWORK $186,10012100120 $104,200 $0 $104,200RIG MOBILIZATION / DEMOBILIZ $104,20012100130 $7,100 $0 $7,100CONDUCTOR HOLE $7,10012100150 $75,000 $0 $75,000LOCATION $75,00012100200 $29,300 $0 $29,300FUEL AND WATER $29,30012100250 $155,300 $0 $155,300MUD, COMPLETION FLUID & CHE $155,30012100300 $50,400 $0 $50,400DRILL BITS $50,40012100320 $125,500 $0 $125,500DIRECTIONAL DRILLING $125,50012100350 $12,500 $0 $12,500FORMATION EVALUATION $12,50012100550 $7,000 $0 $7,000CEMENT AND CEMENTING SERVI $7,00012100610 $45,500 $0 $45,500SURFACE RENTALS $45,50012100650 $4,800 $0 $4,800SUBSURFACE / RELATED RENTA $4,80012100700 $3,000 $0 $3,000SPECIALIZED SERVICES $3,00012100750 $8,500 $0 $8,500TRANSPORTATION $8,50012100800 $53,200 $0 $53,200SUPERVISION $53,20012100850 $2,500 $0 $2,500CONTRACT LABOR $2,50012100900 $4,500 $0 $4,500INSPECT CSG.,TBG.,DRILL PIPE $4,50012100950 $20,000 $0 $20,000DRILL SITE:PERMIT,CURATIVE,TI $20,00012100960 $10,000 $0 $10,000DRILL SITE SURVEY $10,00012100980 $10,000 $0 $10,000INTEGRATION & POOLING COSTS $10,00012101050 $63,000 $0 $63,000ENVIRONMENTAL & POLLUTION $63,00012101070 $25,000 $0 $25,000DAMAGES $25,00012101100 $21,000 $0 $21,000PITS / PIT LINERS $21,00012109250 $4,600 $0 $4,600OVERHEAD / INSURANCE $4,60012109500 $15,100 $0 $15,100MISC. EXPENSES/CONTINGENCY $15,10012200100 $0 $42,900 $42,900DAYWORK $012200130 $0 $18,000 $18,000COMPLETION & SWAB RIG $012200140 $0 $64,900 $64,900COILED TUBING UNIT $012200150 $0 $7,000 $7,000LOCATION $012200160 $0 $6,500 $6,500SNUBBING UNIT $012200170 $0 $3,500 $3,500TRAILER/FACILITIES RENTAL $012200200 $0 $4,000 $4,000FUEL AND WATER $012200250 $0 $59,600 $59,600MUD, COMPLETION FLUID & CHE $012200350 $0 $9,000 $9,000FORMATION EVALUATION $0

1/21/2010 02:01 PMPowered by Production Access

Exhibit "D"




SEECO



Depth : 7857


Prep. By : JT/WT/CN

Job Start Date :

Location : / / - 18 / 9N / 18W

Well Type : GAS




Located :


Located :






Expected BWPD: 0

NRI :

TotalDrilling CompletionIntangible Dry HoleNotes12200370 $0 $123,600 $123,600CASED HOLE WIRELINE LOGGIN $012200550 $0 $30,700 $30,700CEMENT AND CEMENT SERVICE $012200600 $0 $652,000 $652,000STIMULATION:ACIDIZE - FRAC - S $012200610 $0 $70,800 $70,800SURFACE RENTALS $012200630 $0 $85,200 $85,200TANK TRUCKS/MISC. PUMPING S $012200650 $0 $53,800 $53,800SUBSURFACE / RELATED RENTA $012200670 $0 $31,100 $31,100WATER HAULING $012200700 $0 $37,800 $37,800SPECIALIZED SERVICES $012200750 $0 $2,100 $2,100TRANSPORTATION $012200800 $0 $31,500 $31,500SUPERVISION $012200850 $0 $4,000 $4,000CONTRACT LABOR $012201030 $0 $12,400 $12,400FLOW TESTING/WELL TESTS $012201130 $0 $149,800 $149,800DISPOSAL SERVICES $012209250 $0 $9,500 $9,500OVERHEAD / INSURANCE $012209500 $0 $29,400 $29,400MISC. EXPENSES / CONTINGENC $012209700 $0 $55,500 $55,500AREA WATER FACILITY $0

$1,054,200 $1,594,600 $2,648,800$1,054,200 Total Intangible Cost : TotalDrilling CompletionTangible Dry HoleNotes

12400100 $1,000 $0 $1,000CONDUCTOR PIPE $1,00016" @ 40'12400150 $11,800 $0 $11,800SURFACE CASING $11,8009 5/8" 36# J-55 @ 560'12400450 $2,000 $0 $2,000SUBSURFACE EQUIPMENT $2,00012400550 $2,400 $0 $2,400WELLHEAD EQUIPMENT $2,40012500250 $0 $136,800 $136,800PRODUCTION CASING $05 1/2" 17.0# P110 CDC @ 7857'12500350 $0 $9,900 $9,900TUBING $02 3/8" 4.7 ppf J-55 @ 3668'12500450 $0 $17,300 $17,300SUBSURFACE EQUIPMENT $012500470 $0 $10,600 $10,600TANK BATTERY & ASSOCIATED $012500550 $0 $20,900 $20,900WELLHEAD EQUIPMENT $012500580 $0 $24,000 $24,000SEPARATORS $012500600 $0 $22,900 $22,900SURFACE PRODUCTION EQUIPM $012509500 $0 $4,800 $4,800MISC. EXPENSES / CONTINGENC $0

$17,200 $247,200 $264,400$17,200 Total Tangible Cost : Total AFE Costs : $1,071,400 $1,841,800 $2,913,200$1,071,400





SEECO



Depth : 7857


Prep. By : JT/WT/CN

Job Start Date :

Location : / / - 18 / 9N / 18W

Well Type : GAS




Located :


Located :






Expected BWPD: 0

NRI :

THE UNDERSIGNED RECOGNIZES THAT, IN ADDITION TO OTHER THIRD PARTY DRILLING COMPANIES, OPERATOR FROM TIME TO TIME EMPLOYS ITS AFFILIATE, DESOTO DRILLING, INC., (“DDI”), TO DRILL WELLS OPERATED BY OPERATOR. IN THE EVENT OPERATOR UTILIZES DDI TO PERFORM ANY OF THE OPERATIONS DESCRIBED HEREIN, YOUR EXECUTION OF THIS AFE SHALL CONSTITUTE YOUR AGREEMENT TO THE RATE OF CHARGES ESTIMATED HEREIN FOR ALL SUCH SERVICES PROVIDED BY DDI, AS SUCH RATES MAY BE MODIFIED FROM TIME TO TIME TO REFLECT THE PREVAILING RATES IN THE AREA FOR COMPARABLE SERVICES.

THE UNDERSIGNED RECOGNIZES THAT OPERATOR MAY FROM TIME TO TIME EMPLOY ITS OWN TOOLS AND EQUIPMENT IN CONDUCTING THE OPERATIONS DESCRIBED HEREIN, SO LONG AS OPERATOR’S CHARGES THEREFOR DO NOT EXCEED THE PREVAILING RATES IN THE AREA. IN THE EVENT OPERATOR SO UTILIZES ITS OWN TOOLS AND EQUIPMENT TO PERFORM ANY OF THE OPERATIONS DESCRIBED HEREIN, YOUR EXECUTION OF THIS AFE SHALL CONSTITUTE YOUR AGREEMENT TO THE RATE OF CHARGES ESTIMATED HEREIN FOR THE USE OF ALL SUCH TOOLS AND EQUIPMENT, AS SUCH RATES MAY BE MODIFIED FROM TIME TO TIME TO REFLECT THE PREVAILING RATES IN THE AREA FOR THE USE OF COMPARABLE TOOLS AND EQUIPMENT.

Approved by:Southwestern Energy Approval: Date:

Partner Approval: Date:


1718

19 20

7 812

13

24

9

0062-

- 2500

0052-

0072- 0082-

0083-0093-

007

THOMPSON1-24

BEN GRAY1

HURLEY1-18

BEWLEY1-19

COLE1-20

THOMPSON1-24

SLOAN1-19

COLE1A-20

JACKSON1-24

ESSINGER-SMITH 09-181-20H

ESSINGER-SMITH 09-182-20H19

LANGFORD 09-181-18H

FEET

0 3,000

PETRA 1/28/2010 4:09:18 PM

EXHIBIT “G”Integration Application

Section 18 Township 09 North, Range 18 WestNon-Exception Location in the NW/4

Pope County, Arkansas

Lower Fayetteville StructureGeologist: Pedro Sanchez

SEECO, Inc.’s ProposedLangford 09-18 #1-18H

Drawn by: Kelvin Latson

Houston, Texas

-2500

~1000’ Flt

-2700

041-

041-

051-

051-

061-

061-

071-081-

091-

- 130

- 1

30

- 120

1718

19 20

7 812

13

24 9

THOMPSON1-24

RINGER 09-181-17H

BOLAND 09-181-08H

CIRCLE V RANCH 09-181-05PH

ROWLANDS 09-181-6H

ROWLANDS 09-182-6H

BEN GRAY1

R HOGAN1

W A SHACKLEFORD1

HURLEY1-18

MARABLE FARMS1-7

BEWLEY1-19

COLE1-20

THOMPSON1-24

SLOAN1-19

COLE1A-20

JACKSON1-24

COLE `F`1

BOLAND2-8H

BOLAND3-8H



LANGFORD 09-181-18H

340330320310300290280270260250240230220210200190180170160150140130120

FEET

0 3,000

PETRA 1/27/2010 2:39:47 PM

Fayetteville Gross ThicknessGeologist: Pedro Sanchez

EXHIBIT “H”Integration Application





Houston, Texas

1718

19 20

7 812

13

249

THOMPSON1-24

RINGER 09-181-17H

BOLAND 09-181-08H

ROWLANDS 09-181-6H

ROWLANDS 09-182-6H

BEN GRAY1

R HOGAN1

W A SHACKLEFORD1

HURLEY1-18

MARABLE FARMS1-7

BEWLEY1-19

COLE1-20

THOMPSON1-24

SLOAN1-19

COLE1A-20

JACKSON1-24



LANGFORD 09-181-18H

FEET

0 3,000

PETRA 1/27/2010 9:52:56 AM

Topographic StructureGeologist: Pedro Sanchez

EXHIBIT “I”Integration Application





Houston, Texas

110-2010-02 - aogc2.state.ar.us applications archive...resume of efforts to lease casas minerals,...

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