application for permit to drill or reenter · /3/2008) diana mason-8 point pl, loelyn fed.1-27.doc...

Fonn3l60-3 FORM APPROVED(August2007) OMBNo. 1004-0137

ExpiresJuly31,2010UNITED STATES

DEPARTMENTOF THE INTERIOR 5. LeaseSerialNo.BUREAU OF LAND MANAGEMENT

UTU-80566

APPLICATION FOR PERMIT TO DRILL OR REENTER6. IfIndian,Allotee orTribeName

la. Typeof work: DRILL REENTER 7 If Unitor CAAgreement,Nameand No.

8. Lease NameandWellNo.Ib. Typeof Well: OilWell Gas Well Other SingleZone MultipleZone JOELYN FEDERAL 1-27

2. Nameof Operator 9. API WellNo.QUINEX ENERGY CORPORATION 43-013- 071

3a. Address 465 SOUTH 200 WEST 3b. PhoneNo.(include area code) 10.FieldandPool,or ExploratoryBOUNTIFUL, UTAH 84010 1-801-292-3800

4. Locationof Well (Report locationclearly and in accordmce with any State requirements*) 11.Sec.,T. R. M. or Blk.andSurveyor Area

At surface 660 FNL 1980 FWL, SEC. 27, TWP 9 SOUTH, RNG 17 EAST SEC. 27, T9S, R17E

At proposedprod.zone SAME AS ABOVE UTM E 585831.69, N 4428865.83 NAD 27

14. Distancein miles and directionfromnearest townor post office* 12. Countyor Parish 13. State15.5 MILES SOUTH, SOUTHEAST OF MYTON UTAH DUCHESNE UT

15. Distancefromproposed*660' TO THE SECTION LINE 16. No.of acresin lease 17. SpacingUnitdedicatedto thiswell

propertyor leaseline,ft. 660' FROM LONE TREE UNIT 1800 40(Alsotonearest drig.unit line,if any)

18. Distancefrompronposedlocation*1293' S OF LONE TREE 19.ProposedDepth 20. BLM/BIABondNo. on file

appnld fo o

thislllinas,completed, 14-22-9-17 7,000' KEMPER BOND #3SE 589025-00

21. Elevations(Showwhether DF, KDB, RT, GL, etc.) 21 Approximatedatework will start* 23. Estimatedduration5303 GL 10/01/2008 20 DAYS DRILL 20 DAYS COMP

24. AttachmentsThefollowing,completedinaccordancewith therequirementsof OnshoreOiland GasOrderNo.1,mustbe attachedto this form:

1. Wellplatcertified bya registered surveyor. 4. Bondtocoverthe operations unless covered by an existing bondon file (see2. A DrillingPlan. Item20 above).3. A SurfaceUse Plan (if the locationis on National Forest SystemLands, the 5. Operatorcertification

SUPO must be filedwith the appropriate ForestServiceOffice). 6. Suchother site specificinformationand/or plansas may be required by theBLM.

25. Sig . Name(Printed/Typed) DateDeForrest Smouse 04/04/2007

TitlePRESIDENT --

ved b at c 14amef rinted/Typed) Date

«' BRADLEYG. HILL 04-09 DÑ

Title OffiBNVIRONMENTALMANAGER

Applicationapproval doesnot warrantor certify that theapplicantholds legalorequitabletitleto thoserights inthe subjectleasewhich would entitletheapplicanttoconductoperationsthereon.Conditionsof approval,if any,are attached.

Title 18U.S.C.Section1001andTitle43 U.S.C.Section1212,make it a crime foranypersonknowinglyand willfully to make to any departmentor agency ofthe UnitedStatesany false,fictitiousor fraudulent statementsor representations as toany matter withinitsjurisdiction.

(Continued on page 2) *(Instructions on page 2)

i

Fonn3160-3 FORM APPROVED(August2007) OMBNo.1004-0137

ExpiresJuly31,2010UNITED STATES

DEPARTMENT OF THE INTERIOR 5. LeaseSerialNo.

BUREAU OF LAND MANAGEMENTUTU-80566

APPLICATION FOR PERMIT TO DRILL OR REENTER6. IfIndian,Allotee orTribeName

la. Typeofwork: DRILL REENTER2 IfUnitor CAAgreement,NameandNo.

8. Lease NameandWellNo.Ib. Typeof Well: Oil Well GasWell Other SingleZone MultipleZone JOELYN FEDERAL 1-27

2. Nameof0perator 9. API We11No.QUINEX ENERGY CORPORATION 43-013- 3 0 ') Ž.

3a. Address 465 SOUTH 200 WEST 3b. PhoneNo.(include area cok) 10.FieldandPool,or ExploratoryBOUNTIFUL, UTAH 84010 1-801-292-3800 WILDCAT

4. Locationof Well (Report location clearly and in acconiancewith any State requirements.*) 11.Sec.,T. R.M. or Blk.andSurveyorArea

At surface 660 FNL 1980 FWL, SEC. 27, TWP 9 SOUTH, RNG 17 EAST SEC. g, T9S, RK17E

Atproposed prod.zone §§/§ ?§'1 )E I </2 ggly5 yÛ.00 79| - gg,g14. Distanceinmilesanddirectionfromnearesttownor gy 12.Countyor Parish 13. State

15.5 MILES SOUTH, SOUTHEAST OF MYTON UTAH DUCHESNE UT

15. Disatanenebfromproposed*660' TO THE SECTION LINE 16. No.of acresin lease 17. SpacingUnitdedicatedto thiswell

propertyor leaseline, ft 660' FROM LONE TREE UNIT 1800 40(Alsotonearest drig.unit line,if any)

18. Distancefrompro sedlocation*1293' S OF LONE TREE 19.ProposedDepth 20. BLM/BIABondNo. on file

appnlor o

thislmMompleted'14-22-9-17 7,000' KEMPER BOND #3SE 589025-00

21. Elevations(Showwhether DF,KDB,RT,GL,etc.) 22 Approximatedatework will start* 23. Estimatedduration10/01/2008 20 DAYS DRILL 20 DAYS COMP

24. Attachments

Thefollowing,completedinaccordancewiththerequirementsof OnshoreOilandGasOrderNo.1,mustbe attachedto thisform:

1. Wellplatcertifiedby a registered surveyor. 4. Bondto coverthe operationsunless covered byan existing bond on file (see2. A DrillingPlan. Item20 above).3. A SurfaceUsePlan (if the location is on National Forest SystemLands, the 5. Operatorcertification

SUPO must be filedwith the appropriateForestServiceOffice). 6. Suchother site specificinformationand/or plansas may be requiredby theBLM.

25. Signature Name (Printed/Typed) DateDeForrest Smouse 04/04/2007

TitlePRESIDENT

Approvedby (Signature) Name (Printed/Typed) Date

Title Office

Applicationapprovaldoesnot warrantor certifythattheapplicantholdslegalorequitabletitletothoserights inthesubjectleasewhichwouldentitletheapplicanttoconductoperationsthereon.Conditionsof approval,ifany,are attached.

Title 18U.S.C.Section1001andTitle43 U.S.C.Section1212,make it a crime for any personknowinglyand willfully tomake to any departmentor agencyof the UnitedStatesany false,fictitiousor fraudulent statementsor representations as to any matter withinitsjurisdiction.

(Continued on page 2) *(Instructions on page

QUINEXENERGY CORP.T9S, Ri7E, S.L.B.&M• Well location, JOELYN FEDERAL#1-27, located asroto ens. cm.shown in the NE 1/4 NW 1/4 of Section 27, T9S,1.4'H/fs

SS949'417 - 2650.31' (Meas.) SB9'59'J77 - 2643.90' (Meas.) R17E, S.L.B.&M., Duchesne County, Utah.1910 Brass Ûqu, 1910 Ðrass Cop,o a7' Hi¢, Steel 1 S' H/gh. Steel

BASIS OF ELEVATIONSPOT ELEVATION LOCATEDAT THENORTHWESTCORNEROF1980' JOELW EEL)ERAL/1-27 SECTION23, T9S, R17E, S.L.B.&M. TAKENFROM THE PARIETTEDRAWSW, QUADRANGLE,UTAH, 7.5 MINUTEQUAD (TOPOGRAPHICBev. Ungraded Ground = 5JOJ MAP) PUBLISHEDBY THEUNITEDSTATES DEPARTMENTOF THEINTERIOR,GEOLOGICALSURVEY.SAID ELEVATIONIS MARKEDASBEING5198 FEET.

N

oo SCALEo o

----- o CERTIFICATETHIS [S TO CERT1FYTHATTHE ABOVEP AREDFROMFIELDNOTESOF ACTUALSURVEYS ER MYSUPERVISIONAND THATTHE SA T TO THEBEST OF MYKNOWLEDGEANDoo

otooz

EGIGI AT10N NO. 16

Revised: 08-15--08 K.G. U AHWEST -

5286.60° (G.L.O.)

BASISOF BEARINGs UmrAu ENGINEERING & G86 SOUTH 200 EAST - VERNAI. UTAH 84078BASIS OF BEARINGSIS A G.P.S. OBSERVATION.

(435) 789-1017LEGEND: (AUTONOMOUSNAD 83)SCALE DATESURVEYED: DATEDRAWN:LATlTUDE= 40 00'26.60" (40.007389) 1" = 1000' 11-28-06 11-30-06= 90' SYMBOL LONGITUDE= 109°59'42.47" (109.995131)PARTY REFERENCESA = PROPOSED WELLHEAD. (AUTONDOMU

00Ao26277)3"

40.007425 G.O. 8.8. C.H- G.L.O. PLATWEATNER FILEA = SECTIONCORNERSLOCATED. LONGITUDE= 109°59 39.93" (109.994425)

COLD QUINEXENERGY

(9/3/2008) Diana Mason - 8 POINT PL loelyn Fed.1-27.doc Page 1

EIGHT POINT PLAN

QUINEX ENERGY CORPORATIONJOELYN FEDERAL 1-27

NE ¾, NW ¾, SECTION 27 T 9 S, R 17 EDUCHESNE COUNTY, UTAH

1 & 2 ESTIMETED TOPS ANTICIPATED OIL, GAS AND WATER ZONES

FORMATION DEPTH ZONE TYPE MAX. PRESSUREUinta Formation Surface Fresh WaterGreen River Formation 1,080' Oil & Gas 1100 psiCastle Peak Member 4200' Oil & Gas 1600 psi

Douglas Creek Member 4790' Oil & Gas 1800 psiBlack Shale Member 4880' Oil & Gas 1800 psiWasatch Formation 5900' Oil & Gas 2000 psi

TD -7,000'

3. PRESSURER CONTROL EQUIPMENTBOP Schematic Diagram attached and will be modified for the rig priorto drilling, by Sundry Notice

4. CASING PROGRAM:HOLE SIZE INTERVAL LENGTH WEIGHT GRADE THREAD COLLAPSE BURST CEMENT

12 ¼" 0-800' 350' 8 5/8" 24# J 55 LT&C 1370 # 2950 # 300 sksclass G to Surface

7 5/8" 0-7000' 7000' 5 ½" 15.5# J 55 LT&C 4040# 4810# 600 skslite & 500 sks Class G

5. MUD PROGRAM:

INTERVAL MUD TYPE WEIGHT0-7,000' Watergel 8.5#

Lost circulation zones are not anticipated.Sufficient mud inventory will be maintained on location during drillingoperations to handle any adverse conditions that may arise.

6. VARIANCE REQUESTS:

The Joelyn Federal 1-27 well is designated as a Green River & WasatchFormations tests. No variances are requested

7. EVALUATION PROGRAM

LOGS: SCHLUMBERGER WIRELINEDIL-SFL Surface casing to 7,000'CNL-FDC Surface casing to 7,000'

/3/2008) Diana Mason - 8 POINT PL, loelyn Fed.1-27.doc Page 2

Additional logs as needed to evaluate formation from 3,800' -- TDCores NoneDST's None

i ABNORMAL CONDITIONS

None anticipated

9. STANDARD REQUIRED EQUIPMENT

a. Choke Manifold: Diagram will be supplied by Sundry Notice for therig contracted to drill the hole.

No chemicals subject to reporting under SARA III in an amount to or greater than 10,000pounds will be used, produced, stored, transported, or disposed of annually with the drillingof this well, Furthermore, no extremely hazardous substances, as defined in 40 CFR 355, inthreshold quantities, will be used, produced, stored, transported or disposed of in associationwith the drilling of this well.

(Attachment: BOP Diagram) BOP will be rated to 3000 psi. BOP will betested daily.

DeForrest Smouse PhDPresident - QuinexEnergy

08) Diana Mason - 08 Talon Res :es (MOAC 08-224) 2 Wells Helen Fed 1 nd Joelyn Fed 1-27 (T9S, R17EPSgâ6 a

CUL TURAL RE SOURCE INVENTORYOF TALON RE SOURCE S' PROPOS ED W ELL L OCAT lONS

HELEN FED ERAL#1 -26AN D JOELYN FED ERAL#1 -27

(T9S, R17E, SE CTI ONS 26 AND 27)DUC HESNE CO UNTY, UTA

(9/3/2008) Diana Mason - 08 Talon Res tes (MOAC 08-2Ñ)2 Wells Helen Fed 1- ind Joelyn Fed 1-27 (T9S, R17EPSg

CULTURAL RESOURCE INVENTORYOF TALON R ESOURCES' PROPOSED WELL LOCATIONS

HELEN FE DER AL #1- 26 AN D JO ELY N FE D ERAL#1- 27(T9S, R17E, SECTIONS26 AND27)

DUCHESNE COUNT Y, UTA H

By:

Patricia Stavish

Prepared For:Bur eau of Land Managem ent

Vernal FieldOffice

Pr epar ed Under Cont ract W ith:Ta Ion R esou rces, Inc.

P. O. Box 12 30Huntington, Utah8452 8

Prepared By:

Mont gom er y Ar chae ologi cal Consu Itants, Inc.P. O. Box 21 9

Moab, Utah 8453 2

MOAC Repor t No. 08-224

August 28, 2008

Un ited States Department of Interior (FL PMA)Per mit No. 08- UT-60122

State of Utah Antiquities Project (Survey)Per mit No. U-0&

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INTR ODUCTION

A cultural resource inven tory was conducted by Montgomery ArchaeologicalConsultants, Inc. (MOAC) in August 200 8 for Talon Resources' proposed Helen Federal#1-26 and Joelyn Federal #1-27 well location s. The project area is bcated west of SnyderReservoir, west of Pariette Bench, Duchesne County, Utah. Th e inven tory wasimplemented atthe requestofMr.AllenChilds,TalonResources,Huntington, Utah. Atotalof20 acres was inventoried on public lands administered by the Bureau ofLandManagement, Vernal Field Oflice.

The objective ofthe inventory was to locate, document and eval uate any culturalresources within the project area. This project was carried ou t in compliance with Federaland State legislation including the Antiquities Actof 1906, the Na tional Historic PreservationAct(NHPA)of 1966 (as amended), the National Environmental and Historic PreservationActof1969 ,the Archaeological and HistoricConservation Actof1972, the ArchaeologicalResources Protection Act of1 979, and the American Indian Religious Freedom Actof1978.

The fieldwork was condu cted on A ugust 21, 2008 by Chris Roberts (FieldSupervisor), undertheauspicesofU.S.D.I.(FLPMA)PermitNo.08-UT-60122 and StateofUtah Antiquities Project(Survey) U-08-MQ-0745b issued to MOAC, Moab, Utah.

A file search for previous cultural resource inventories and archaeological sites wasconducted by Keith Montgomery at the BLM, Vernal Field Office, on July 24 , 2008. Thisconsultation indicated that several cultural resource inventories have been conducted inthe vicinity; however, no previous archaeologi cal sites are located in the current projectarea. In 1998, Archeological-Environmen tal Research Corporation (AERC) condu cted asurvey of3,919 acres in Uintah and Duchesne Counties for Inland Resources'proposedwell pads, access roads and pipeline corridors. T his investigation resulted in thedocumentation of2 8 new prehistoric sites (Hauck1 998). I n 2001, MontgomeryArchaeolog ical Consultants (MOAC)surveyed 400 acresin the WellsDrawand ParietteBench localities for Inland Resources. This inventory resulted in the documentation ofonelithicscatter(42Dc1356) (Montgomery2001). In2003, MOACconducted another Inlandsurvey that resulted in the documentation of22 new historicand prehistoric sites,a re-visittothree previouslyrecordedsites,and anadd endumto one previouslyrecordedsite(Simon and Montgomery 2003). The nextyear MOAC conducted two more surveys forInland Resources. The firstinventory resulted in thedocu mentation of eight new prehistoricand historic sites, and the location of four previously recorded sites (Elkins andMontgomery 2004). The second inventory resulted in the finding of no cultural resources(Wakefield and Montgomery 2004). In 2005, MOAC conducted an inven toryof a blockparcelof2087 acresjustnorth ofthe currentinventoryarea (Simon 2005). This inventoryresulted in the location of fourteen historic and prehistoric sites. In summary, althoughnumerous sites have been documented in the proximity, none occur within the currentproject area.

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DESCRIPTION OFPROJECTAREA

The project area is loca ted west of Snyder Reservoir, west of P ariette Bench,Duchesne County, Utah. The legal description is Townsh ip 9 South,R ange 17 East,Sections26 and 27 (Figure 1 and Table 1).

Table 1. Talon Reso urces' Propose d Well Locations.Cultural

Well Designat ion Legal Location Acces s/Pipeline Resources

T9S, R17E Within10 AcreHel en Feder al #1- 26 ' None

SW INW of Sec. 26

T9S, R17E Within 10 AcreJoel yn Feder al #1-27 ' None

N E/NW of Sec. 27

Environmental Overview

The project area lies within the Uinta Basin physiographic unit, a distinctly bowl-shaped geologic structure (Stokes 1986:231). The Uinta Basin ecosystem is within theGreen River drainage, considered to be the northernmost extension of the ColoradoPlateau. The area is characterized by steep-sided narrow ridges and ben ches dissectedby intermittent drainage s. Outcrops ofthe Uinta formation are characterized by a densedendriticdrainage pattern and topographic relief. ThisEocene -age formation occurs asfluvial deposited interbedded sandstone and mudstone and is well-known for its fossilvertebrate turtles, crocodilians, fish, and mammals. Named water sources nearby includeSnyder Spring and Snyder Reservoir to the southwest. Elevation ofthe projectareaaverages 5300 fla.s.l. The project area lies withinthe Upper Sonoran lifezone, dominatedbya shadscale community along with rabbitbrush, horsebrush, and prickly pear cactus.Modern disturban ces1D the landscape include well locations, access roads, pipel ines, stockgrazing, and vandalism

SU RVEY METHODOLOGY

An intensive pedestrian survey was performed for this project which is conside red100% coverage. At the proposed well locations, a 10 acre square was defined, centeredon the well pad center stake. The well locations were examined for cultural resources bythe archaeologists walking parallel transectsspacedno more than 10 m(33 ft)apart.Ground visibilitywas considered good. Atotal of20 acres was inventoried on publiciandadministered by the Bureau of Land Management, Vernal Field Office.

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RESUL TS AND RECOMMENDATIONS

The inventory of Talo n Resou rces' proposed Helen Federal #1 -26 and JoelynFederal #1-27 well locations resulted in the location of no cultural resources. Based on thisfinding, a recommendation of"no adverse impact" isproposed forthe undertaking pursuantto Section 106, CFR 800.

REFER ENCES CITED

Elkins, M.and K.Montgomery2004 Cultural Resource Inventoryofinland Resources' Six Block Parcels (T8S,

R17E,Sec.20, 33, 34; T9S,R16E,S.15;T9S,R17E,S.17,20; and T9S,Ri8E, S .7 ) Duchesne and Uintah C ounties, Utah. MontgomeryArchaeologi cal Consultants, Moab, Utah. Report No. U-04-MQ-0436b,p.

Hauck, F.R1998 Cultural Resource Evaluation of Various Large Tracts in the Wells Draw to

Pariette B ench Locality i n Duchesne a nd U intah Counties, U tah.Archeological-Environmental Resea rch Corporation, Bountiful, Utah. ReportNo. U-98-AF-0164 b,s, available atthe BLM Vernal Field Office, Vernal Utah.

Montgomery, K.R.2001 Cultural Resource Inventoriesof400 Acresin the Wells Draw and Pariette

Bench Localities for Inland Production Company Duche sne Cou nty, Utah.Montgomery Archaeological Consultants, Moab, Utah. Report No. U-01-MQ-0010b,s.

Simon, K.200 5 Cultural Resource Inventory of Newfield Exploration's Block Parcel in T9S,

R17E,S ec.1 9,20 ,2 1 & 22 Duchesne County, U tah. MontgomeryArchaeological Consultants, Moab, Utah. Report No. U-05-MQ-0516b.

Simon, K.and K. Montgomery200 3 Cultural Resource Inventory of Inland Productions' Parcel in T 9 S, R17 E,

Sec.13,14,15,23 &24 andT 9S,R 18 E,Sec.18 &19,Duchesne andUintah Countie s, Utah, Montgomery Archaeologica I Con sultants, Moab,Utah. Report No. U-03-MQ-0750b.

Stokes, W. L.1986 Geology ofUtah. Utah Museum ofNatural History, University ofUtah, Salt

Lake City.

Wakefield A.and K. Montgomery2004 Cultural Resource Inventory oflnland Resources' Four40 Acre ParcelsNear

Pariette Bench (T 9S, R 17E, Sec. 20; T 9S, R 16E, Sec. 13; T BS, R 17E,Sec. 23 a nd 2 5), Uintah a nd Duchesne Counties, Utah. MontgomeryArchaeological Consultants, Moab, Utah. Report No. U-04-MQ-0782b.

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THIRTEEN POINT PLANJOELYN FEDERAL 1-27

660' FNL, 1980' FWL, Section 27, T 9 S, R 17 ENENW, Section 27, T 9 S, R 17 E

Duchesne County, Utah

GENERAL Requirements for working on BLM lands.

A. Cultural resources are not expected to be disrupted, see attached reportB. The area is grassland with minor sagebrush and other desert vegetation.

1. EXISTING ROADS - See Location Map.

A. Wellsite access road is 15 feet long off of a oil field access road built byNewfield at 1980' FWL, 660' FNL, NE ¼, NW ¼ Section 27, T9S, R17E.

B. Travel 1 ½ mile west of Myton, Utah then south (left) on Pleasant Valleypaved and graded road 11.2 miles to the old Castle Peak mine-site thensouthwest (right) on graded road; then 3.7 miles to abandoned SnyderSprings Ranch site. Turn left on graded road 1.5 miles and then South 15feet from the graded access road to wellsite.

C. Roads: The route is over paved US 40 to turnout about 1.5 miles west ofMyton. The road to Castle Peak is paved. All other roads are graded,many with fair gravel toping.

D. Other existing roads as marked on Topo Map.E. Existing roads will be maintained by the county. The new road to the

Joelyn Fed 1-27 wellsite will be built to meet BLM specifications, and bemaintained as required, for all weather use, by the operator. (SeeEngineer Survey Plat).

2. Planned Access Roads:

A. Less than 50 feet of new access road need to be built from the existing oilfieldroad to location. The existing oilfield road was constructed by Newfield.

B. The subject road will be improved or built to BLM specifications (from 6,p.26) Surface Operating Standards for Oil and Gas Development" as follows:

1. Width: 17' at crown and total disturbed width 27'.2. Maximum grades: 1.5% maximum.3. Turnouts: none.4. Drainage: Ditch and crown as needed to maintain road.5. Culverts: none6. Surface Material: The roads will be covered with 6 inches of

Road-base and 2 inches of 1 ½ gravel topping as required fortraction and erosion control.

7. Gates/ Cattle Guards: None

3. Location of Existing Wells: See the attached map showing wells, units, and

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ownership.

1. Wells within one mile radius: 22 POW, 3 APD'S, 4 LA's See Map2. Water wells: None3. Abandoned Oil Wells: None4. Temporarily Abandoned wells: None5. Disposal Wells: None6. Drilling Wells: None7. Producing Wells: 22 See Map8. Shut in wells: Nonei Monitoring Wells: None

4. Location of Existing, and/or Proposed Facilities: - See wellsite Plat.

1. Tank Batteries: Owned by Quinex2. Production Facilities: Owned by Quinex.3. Oil Gathering Lines: None.4. Gas Gathering Lines: Newfield Oil and Gas.5. Injection Lines: None6. Disposal Lines: None

New Facilities Contemplated:

1. Oil Well Pad: 355' X 245'. Figure #1. A gas line tie-in to Newfield Oil &Gas Gathering line.

2. Construction Methods: Tanks are to be welded. Battery grade will be lessthan 3' above well pad grade. All equipment will be painted mediumsand brown. Proper oil and gas handling equipment will be installed toproduce the well.

3. Protective Measures: There will be no open permanent vessels. Thebattery will be bermed with sufficient berm to contain the total contentsof the largest tank.

4. No storage of fluids in open pits

5. Location and Type of Water Storage.

1. Approximately 1 acre-foot of water will be required to drill andcomplete the well. Water is to hauled from Babcock Draw by Tu andFrum Trucking. Inc. - Dave Murray. Proper water rights: Seeattached Temporary Application - Water Right # 43-1721, will beobtained from a State Engineer prior to spudding.

2. Transportation: Water will be trucked by Tu and Frum Inc. Oil will betrucked to refineries by MC Oil, West Bountiful Utah.

3. Water Well: None proposed.

6. Source of Construction Materials:

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1. Source: Materials from cuts will be stockpiled at the site. No additionalrequirements are anticipated.

2. Ownership: The access road and location are on BLM land.3. Outside Materials: Road base and pad material will be obtained from

commercial gravel pits in the Roosevelt, Utah area.4. Access: Only the road to the location from the existing graded road will

be required, (See plat above).

7. Methods of Handling Waste Disposal

Disposal will be handled as follows:1. Cuttings: Drill cuttings are to be buried in the reserve pit, and the liner will

be folded in and buried 3 feet deep.2. Drilling Fluids: Drilling fluids are to be evaporated or removed to a

commercial disposal pit.3. Produced fluids: Produced oil will be sold to an authorized oil buyer.4. Gas produced during completion and testing will be vented.5. Produced water will be hauled to an authorized disposal site.6. Sewage: Chemical toilets will be maintained onsite until the well is

completed.7. Trash and garbage: Trash will be accumulated in a wire mesh receptacle

and hauled to a sanitary road fill as needed.8. Chemical: All chemicals brought onto the wellsite will RCRA exempt and

will have Material Safety Data Sheets or proper handling instructions.9. Post Drilling Cleanup: After drilling operations cease, the access road

and location will be cleaned and graded. The reserve pit will be covered andreseeded to BLM specifications within 1 year of completion.

8. Ancillary Facilities

No ancillary facilities are planned or required.

9: Wellsite Lavout:

1. Wellsite Plat See figure #1.2. Cross Sections See figure #23. Equipment Layout: See figure #1.4. Rig Orientation: See figure #1.i Pits: See figure #1.É Cut and Fill: See figure #2.1 Spoil and Topsoil: See figure #1.& Production Equipment: See figure #3

10: Plans for restoration of Surface.

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Upon completion of drilling operations, the location is to be restored asfollows:

1. Initial Cleanup: Location and surrounding area are to be cleaned of alldebris resulting from the drilling operations.

2. All trash is to be hauled to a local sanitary landfill.3. Vernal BLM will be notified 48 hours prior to any surface restoration

requiring earth moving equipment.4. Within 1 year of completion (weather permitting) the well, the reserve pit is

to be dried, filled and re-contoured to original grade. All drill cuttings will beburied to a minimum of three (3) feet depth.

5. Stockpiled topsoil will be evenly distributed back over reclaimed areas.6. Re-vegetation: Reclaimed areas will be scarified and seeded by

broadcasting or drilling, per BLM recommendations.7. Unused areas will be blocked from vehicular access.8. Any oil on pits will be removed to a commercial disposal when rig is

released.9. Reserve pit will be reclaimed within 1 year of the completion date, and the

location will be re-contoured to original shape.

11. Surface Ownership:

1. Ownership and Right-of-ways is: BLMBoth the surface and minerals are owned by the Federal Government.Rights-of-way for road, location, gas gathering lines, and power lines aresurveyed in and applied for as part of this filing.

12. General Information

1. General Description of Area.a. Topography: Low angle slopes, semi-arid with sagebrush and desert

vegetation. No irrigation.b. Surface Use Activity: The area is used for cattle grazing.c. Water, Dwellings, Archeology: Water will be trucked to location on

existing roads. There are no dwellings within ½ mile.d. No archeological sited on wellsite or access road. An archeological

survey is completed and submitted with APD.

2. Production Operations:Notification: A first production report will be sent to the BLM within 5 daysof first production to establish site security and APD compliance.

a. Site Security: Site security plan will be submitted within thirty (30)days of completion.

b. Water Production: It is anticipated that the water produced will behauled to a pit located in LaPoint, Utah, Section 8, T 1 S, R 1 E

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c. Weed Control: The road and location will be professionally sprayedannually using EPA approved chemicals, to control noxious weeds.

d. The tank battery is to be built along the east side of the location. Allpermanent structures will be painted with an approved earth-tone

color within six months of installation. OSHA required markings areexpected.

13. Lessee's or Operator's RepresentativeQuinexEnergy CorporationDeForrest Smouse465 South 200 WestBountiful, Utah 84010Phone: (801) 292-3800 or 292-2554

CertificationI hereby certify that I, or persons under my direct supervision, haveInspected the proposed drill site and access route: that I am familiar with theconditions which presently exist: that the statements made in this plan are, tothe best of my knowledge, true and correct: and the work associated will beperformed by QuinexEnergy Corporation and its contractors in conformitywith this plan and terms and conditions under which it is approved.

Date:DeForrest SmouseQuinexEnergy Corporation

SELF- CERTIFICATION STATEMENTPlease be advised that QUINEX ENERGY CORPORATION is considered to be the operator of

the JOELYN FED 1-27 well located in the NE ¼, NW 1/4, Section 27, Township 9 South, Range17 East, lease UTU-80566 Uintah County, Utah; and is responsible for the operations conductedupon the leased lands. Bond coverage is by Diversified Insurance Brokers #3SE 589025-00EFFECTIVE 6-2-2008.

(9/3/2008) Diana Mason - Joelyn_Fed_" '.doc Page 1

PALEONTOLOGY EVALUATION SHEET

PROJECT: QuinexEnergy - Well - Joelyn Fed. 1-27

LOCATION: Approximately 20 miles south of Roosevelt, Utah, 660' FNL 1980' FWL Section 27,T 9 S, R 17 E, Duchesne County, Utah.

OWNERSHIP: PRIV[ ] STATE[ ] BLM[ X ] USFS[ ] NPS[ ] IND[ ] MIL[ ] OTHER[ ]

DATE: August 21, 2008

GEOLOGY/TOPOGRAPHY: Area is on Eight Miles Flat and it is a flat area. There were noexposures of the Uinta Formation. The ground cover is silty sand with some small rock fragments.

PALEONTOLOGY SURVEY: YES [ ] NO Survey [ ] PARTIAL Survey [ X ]Well is next to an existing road. Walked around and through the location to confirm no rockexposures were present.

SURVEY RESULTS: Invertebrate [ ] Plant [ ] Vertebrate [ ] Trace [ ] No Fossils Found [ X ]

PALEONTOLOGY SENSITIVITY: HIGH [ ] MEDIUM [ ] LOW [ X ] (PROJECT SPECIFIC)

MITGATION RECOMMENDATIONS: NONE [ X ] OTHER [ ] (SEE BELOW)

No recommendations are being made.

Not sure the depth of the Uinta Formation, but if it is reached, there is a chance of encounteringvertebrate fossils when working in the Uinta Formation. If significant vertebrate fossils (mammals,reptiles, well preserved fish, etc.) are encountered during construction, work should stop in that areaand a paleontologist contacted to evaluate the material discovered.

EVALUATION BY PALEONTOLOGIST: Alden H. HamblinA.H. Hamblin Paleontological Consulting, 3793 N. Minersville Highway, Cedar City, Utah 84720 (435) 867-8355Utah State Paleontological Permit # 07-355, BLM paleontological Resources Permit # UT-S-05-02.Utah Professional Geologist License -

Co

682000 E *S3000mE. 584000mE 95ooomE. 586eoomE. 87 E 88 E.

I 22say.ger

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Snyder de..68µrim;

. I

87 a

sepuAoé 683obomE. *B4o¿amg. seso$o E 686 omE 687oAomE. t 27 2one 125 589 F

TN MN r , r -

IT Leme a-MapeientedwithTOPOle 02003 NaikmaiGeogepine(wirw natinaalpagaplar

QUINEX ENERGY CORP FÏGURE #ËTYPICAL CROSS SECTIONS FOR

X-section JOELYN FEDERAL#1-27scale SECTION 27, T9S, R17E, S.L.B.&M. 04 Tr

1" = 100' 660' FNL 1980' FWLDATE: 08-15-08

Drawn By K.G.

es' 13&S/fope- / 1/2.1

F7nished Grade 7--- --

........CUT RLL /

STA. J+35

90 135'

STA. 1+80

tÓ 80 35° ‡35'

STA. 0+95

35 135' Pracmstructhm

APPROX/MATEACREAGES STA. 0+00WELL S/TE D/S7URBANCE = ±2.190 ACRES NOTE:

Topsoil should not beACCESS ROAD DIS7URBANCE = ±0.024 ACRES Stripped Below FinishedGrade on Substructure Area.P/PEL/NE D/STURBANCE = ±3.106 ACRES

TOTAL = ±5. J20 ACRES * NO7E.APPROXIMATEYARDAGES "x"r c cN ŒS

CUT EXCESS MATERIAL = 2,530 Cu. Yds.(6") Topsoil Stripping = 1,490 Cu. Yds. Topsoll & Pit Backfill = 2,5JO Cu. Yds.Remaining Location = J,090 Cu. Yds. (1/2 Pit Vol.)

EXCESS UNBALANCE = 0 Cu. Yds.TOTALCUT = 4,580 CU.YDS. (After Rehabilitation)

FILL = 2,050 CU.YDS. UINTAII ENGINEERTNG di- LAND SURVEYINGBB So. ß00 Best • Vemoi, inaA 84078 • (438)

T9Sl' 16 5 15 fl 4

MYTON 15.3 MI. +l

21 22 22 23

r Rex er r -

e ter

PROPOSED I,OCATIONIOE N FEDERAL #1-

26

e e i

DETAIL "A"

17E

LEGEND: QUINEX ENERGY CORP.EXISTING ROAD N JOELYN FEDERAL #1-27

----------- ruorosto u < i w no u> SECTION 27, TYS, R17E, S.L.B.&M.660' FNL 1980' FWL

- Uintah Engineering & I,and Surveyin TOPOGR A PH I C 11 30 0685 South 200 East Vernal, Utah 84078 \Î A Ÿ 410%Ti De VEAR

(435) 789-IO17 * EFAX (435) 789-8813SCALE:1" = 2000 DRAWNBY:L.K. VISED:

Snyder' Reservoirtyder Res

--

5275

FIT TT•TITTXTillyFED -#2-26

TsfrF / Il/ II

--"5295

PROPOSED LOCATION:JOELYN FEDERAL #1-27

5350~ 27 Ililll

17 2E o

APPROXIMATE TOTAL PIPELINE DISTANCE = 4,510 +/-

LEGEND: QUINEX ENERGY CORP.ruorosvox< cEss so,n N ,iOELY N FEDERAL #1-27

---------- EXISTlNG PIPELINE----------- PuorosEn Pirvi isE SE( TION 27, T9S, Rl7E, S.I .B.&M.

ruoroseo virvi im \si in I< iv.uinEn nyti 660' FNL 1980' FWL

- Lintah Engineering & I and Surveying TOPOGR A PH I Cll 30 0685 Soutia 2OO E'ast Vernal, Utata 84078 9 A Ÿ NHAII DAY VEAll

(435) 789-1017 * FAX (435) 789-1813SCALI.:1"= 1000' D1tWNBY:LK. REVISED:08-25-08

WORKSHEETAPPLICATION FOR PERMIT TO DRILL

APD RECEIVED: 09/03/2008 API NO. ASSIGNED: 43-013-34072

WELL NAME: JOELYN FED 1-27

OPERATOR: QUINEX ENERGY CORP ( N9995 ) PHONE NUMBER: 801-292-3800

CONTACT: DEFORREST SMOUSE

PROPOSED LOCATION: INSPECT LOCATN BY: / / ·

NENW 27 090S 170E . .

Tech Review Initials DateSURFACE: 0660 FNL 1980 FWL

BOTTOM: 0660 FNL 1980 FWL Engineering

COUNTY: DUCHESNE GeologyLATITUDE: 40.00751 LONGITUDE: -109.9943

UTM SURF EASTINGS:585837 NORTHINGS: 4428865 Surface

FIELD NAME: UNDESIGNATED ( 2 )

LEASE TYPE: 1 - Federal

LEASE NUMBER: UTU-80566 PROPOSED FORMATION: WSTC

SURFACE OWNER: 1 - Federal COALBED METHANE WELL? NO

RECEIVED AND/OR REVIEWED: LOCATION AND SITING:

Plat R649-2-3.

Bond: Fed[1] Ind[] Sta[] Fee[]Unit:

(No. 3SE 589025-00 )Potash (Y/N)

9/* R649-3-2. General

Oil Shale 190-5 (B) or 190-3 or 190-13 Siting: 460 From Qtr/Qtr & 920' Between Wells

Water Permit R649-3-3. Exception

(No. 43-1721 )Drilling Unit

RDCC Review (Y/N)Board Cause No:

(Date: ) Eff Date:600 Fee Surf Agreement (Y/N) Siting:

AFP Intent to Commingle (Y/N) .R649-3-11. Directional Drill

COMMENTS:

O OLONET

E0E E3D2n-21-9-17430133 286

API Number: 4301334072LONETREEFED9-21-9-1 Well Name: JOELYN FED 1-27

Township 09.0 S Range 17.0 E Section 27

21 MONUMENT BUTTE F I ELD 4301333310 22 4301332789 23 Meridian: SLBMONE TREE FED 13-22-9-17 4301333311 4301333313 JDC FED 4-23 Operator: QUINEX ENERGY CORP

O LONE TREE FED 14-22-9-17 LONE TREE FED 16-22-9-11LONE TREE ( GR ) U N'l T • LONE

T43E0E1FE3D3-22-9-17

Map Prepared:Map Produced by Diana Mason

Units Wells Query EventsSTATUS

-- ACTIVE<all other values>

EXPLORATORY GIS_STAT_TYPE

GAS STORAGE<Null>

FED4E3 139-1) 4301334072 4301333618 4301333617 NFPPOIL APO

JOELYN FED 1-27 JW FED 2-27 JSW FED 2-26 NF SECONDARY DRL

+ + e4301333776

PI OLL GI

4301333687 FEDERAL 2-28-9-17 PP GASGS

FEDERAL 3-28-9-17 ‡ PP GEOTHERML

PP OIL LA

SECONDARY NEW

TERMINATED OPS

Fields PA

4301333647 sTATusPGW

4301332772 4301333689 FEDERAL 8-28-9-1) HE4L3E F3E4 13-26 ACTIVEPOW

FEDERAL 6-28-9-17 FEDERAL 7-28-9-17 COMBINEDRET

TownshipSGW

SOW

TA

OTw

28 27 26 wo

WS

4301333648 Bottom Hole Location

4301333650 4301333649 FEDERAL 9-28-9-17FEDERAL 11-28-9-17FEDERAL 10-28-9-17 X

\ CacheBox Elder Rici. Location Map

eb r

4301333655

Davisor

Summ 9

4301333653 FEDROA1L5362584-9-1EDERAL 16-28-9-17

Tooelealt Lak

FEDERAL 14-28-9-17 X satci DuchesneUtah Uintah

Juab Carbon

MillardSanpetE

Emery GrandSevier

IBeaver Piute Wayne

Iron GarfieldSan Juan

Washington Kane

33 34 35

1,300 650 0 1,300 Feet

State of UtahDEPARTMENT OF NATURAL RESOURCES

MICHAEL R. STYLER...,,,,,x•• ExecutiveDirector

JON M. HUNTSMAN, JR.ÛÎVISion of Oil, Gas and Mining

Governor JOHN R. BAZADivision Director

GARY R. HERBERTLieutenant Governor

September 9, 2008

QuinexEnergy Corporation465 S 200 WBountiful, UT 84010

Re: Joelyn Federal 1-27 Well, 660' FNL, 1980' FWL, NE NW, Sec. 27, T. 9 South,R. 17 East, Duchesne County, Utah

Gentlemen:

Pursuant to the provisions and requirements of Utah Code Ann.§ 40-6-1 et seq., UtahAdministrative Code R649-3-1 et seq., and the attached Conditions of Approval, approval to drillthe referenced well is granted.

This approval shall expire one year from the above date unless substantial and continuousoperation is underway, or a request for extension is made prior to the expiration date. The APIidentification number assigned to this well is 43-013-34072.

Sincerely,

Gil HuntAssociate Director

pabEnclosures

cc: Duchesne County AssessorBureau of Land Management, Vernal Office

UTAH

DNR

1594 West North Temple, Suite 1210, PO Box 145801, Salt Lake City, UT 84114-5801telephone (801) 538-5340 • facsimile (801) 359-3940 •TTY (801) 538-7458 • www.ogm.utah.gov OIL, GAS &

Operator: QuinexEnergy CorporationWell Name & Number Joelyn Federal 1-27

API Number: 43-013-34072Lease: UTU-80566

Location: NE NW Sec. 27 T. 9 South R. 17 East

Conditions of Approval

1. GeneralCompliance with the requirements of Utah Admin. R. 649-1 et seq., the Oil and GasConservation General Rules, and the applicable terms and provisions of the approvedApplication for permit to drill.

2. Notification RequirementsNotify the Division within 24 hours of spudding the well.

• Contact Carol Daniels at (801) 538-5284.

Notify the Division prior to commencing operations to plug and abandon the well.• Contact Dustin Doucet at (801) 538-5281 office (801) 733-0983 home

3. Reporting RequirementsAll required reports, forms and submittals will be promptly filed with the Division,including but not limited to the Entity Action Form (Form 6), Report of WaterEncountered During Drilling (Form 7), Weekly Progress Reports for drilling andcompletion operations, and Sundry Notices and Reports on Wells requesting approval ofchange of plans or other operational actions.

4. State approval of this well does not supersede the required federal approval, which must beobtained prior to drilling.

5. This proposed well is located in an area for which drilling units (well spacing patterns) havenot been established through an order of the Board of Oil, Gas and Mining (the "Board").In order to avoid the possibility of waste or injury to correlative rights, the operator isrequested, once the well has been drilled, completed, and has produced, to analyzegeological and engineering data generated therefrom, as well as any similar data fromsurrounding areas if available. As soon as is practicable after completion of its analysis,and if the analysis suggests an area larger than the quarter-quarter section upon which thewell is located is being drained, the operator is requested to seek an appropriate orderfrom the Board establishing drilling and spacing units in conformance with such analysisby filing a Request for Agency Action with the

Forn3160-3 FORM APPROVED(August2007) RECEIVED OMBNo.10000m

UNITEDSTATEWERNALFlELD ExpiresJuly31,2010

DEPARTMENTOF THE INTERIOR 5. LeaseSe0ral No. .

BUREAUOFLAND¼ggigNT .

/ ' 6. IfIndian,Alloteeor TribeNameAPPLICATION FOR PERMIT T0 DAILLOR RE ÑTIËR

n t- ià le i ri 7 IfUnitor CAAgreement,NameandNo.la. Typeofwork: DRILL REEN REAUOFLANDMGMT8. Lease NameandWellNo.

lb. Typeof Well: On RH GasWell Oder Sin¢e Zone O ÁltipleZone JOELYN FEDERAL 1-27

2. NameofOperator 9. API WellNo.QUINEX ENERGYCORPORATION 43-013- gg ()

3a. Address 465 SOUTH 200 WEST 3b. PhoneNo.(inchide area code) 10.Fieldand Pool,or ExploratoryBOUNTIFUL, UTAH 84010

.

1-801-292-3800 WILDCAT4. Locationof Well (Report locationclearly and in accorance with any Staterequirements.*) l1. Sec.,T. R. M.or Blk.andSurveyorArea

At surface 660 FNL 1980 FWL, SEC. 27, TWP 9 SOUTH, RNG 17 EAST NSNW SEC. 27, T9S, R17E

At proposedprod.zone SAME AS ABOVE UTM E 585831.69, N 4428865.83 NAD27

14. Distanceinmilesanddirectionfromnearesttownorpostoffice* 12.CountyorParish 13. State15.5 MILES SOUTH, SOUTHEAST OF MYTON UTAH DUCHESNE UT

15. DicSatancefronenprSoposed*660' TOTHE SECTION LINE 16. No.of acresin lease 17. SpacingUnitdedicatedto thiswell

propertyor leaseline,ft. 660' FROM LONE TREE UNIT 1800 40(Alsotonearestdrig.unitline,if any)

18.Distancefromproposedlocation*1293' S OF LONE TREE 19.ProposedDepth 20. BLM/BIABondNo.onfile gtagnarestwell, 111ing,completed,14-22-9-17 7,000' KEMPE E 589025-00

UTBooolo121. Elevations(ShowwhetherDF,KDB,RT,GL,etc.) 22 Approximatedatework will start* 23. Estimatedduration

5303 GL 10/01/2008 20 DAYS DRILL 20 DAYS COMP

24. AttachmentsThefollowing,completedinaccordancewiththerequirements of OnshoreOiland GasOrderNo.1,must beattachedtothisform:

1. Wellplatcertifiedbya registeredsurveyor. 4. Bond tocoverthe operationsunlesscoveredbyan existingbondon file(see1 A DrillingPlan. Item20above).

3. A SurfaceUse Plan (if the locationis on NationalForest SystemLands, the 5. OperatorcertificationSUPOmustbe filedwiththeappropriateForestServiceOffice). 6. Suchothersitespecificinformationand/orplansas mayberequired bythe

BLM.

25. Sign e Name (Printed/Typed) DateDeForrestSmouse 04/04/2007

TitlePRESIDENT

Approved atu Name ype D

Title Office

VERNALRELDOFRCEApplicationapprovaldoesnotwarranocr t a theapplicantholdslegalorequitabletitletothoserights inthesubjectleasewhichwouldentitletheapplicanttocConnditonps

fpnpro

a, f ny,areattached.CONDITIONSOF APPROVALATTACHEDTitle 18U.S.C.Section1001andTitle43 U.S.C.Section1212,makeit a crime foranypersonknowinly and willfullytomaketo any departmentor agencyofthe UnitedStatesany false,fictitiousor fraudulentstatementsor representations as toanymatterwithinitsjuris iction.

(Continued on page 2)RECEIVEDDECO1 2003 N011CEOFAPPROVAL

DIV.0FOIL,GAS&MINW

ÑoMOS 01 PP 2.0'n

of 8Well: Joelyn Federal 1-27

11/19/2008

SURFACE USE PROGRAMCONDITIONS OF APPROVAL (COAs)

• Ifthere is an active Gilsonite miningoperation within 2 miles of the well location, operator shallnotify the Gilsonite operator at least 48 hours prior to any blasting during construction.

• If paleontological materials are uncovered during construction, the operator is to immediatelystop work and contact the Authorized Officer (AO). A determination will be made by the AO asto what mitigationmay be necessary for the discovered paleontologic material beforeconstruction can continue.

Conditions of Approval: Some of these Conditions may also be found in the APD or SOP.

1. Surface Disturbing Activities Notification: Notify the Authorized Officer (AO) 48 hours prior tosurface disturbing activities.

2. Time Limitations: (Only during construction & drilling)Lands in this lease have been identified as habitat for Sage Grouse, Ferruginous Hawk,Mountain Plover, Northern Harrier, and Burrowing Owl. Therefore, modifications to the SurfaceUse Plan of Operations will be required in order to protect thiswildlife habitat from surfacedisturbing activities (see table below)

TIME RESTRICTION REASON

March 1- Aug. 15........................Burrowing Owl habitat

During this period, there will be no construction, drilling, fracing or completion operations within0.25 mile of occupied burrowing owl habitat.

3. Special Status Plants: If Uinta Basin hookless cactus or other special status plants are found,construction willcease and the AO will be notified to determine the appropriate mitigation.

4. Paleontology: If paleontological materials are uncovered during construction, the operator isto immediately stop work and contact the Authorized Officer (AO). A determination will be madeby the AO as to what mitigationmay be necessary for the discovered paleontologic materialbefore construction can continue.

5. Access Road:

• Access roads shall meet BLMstandard, and if possible, limit construction to gentleslopes in order to avoid need for special construction designs.

• The maximumdisturbed width for access roads is 30 feet, and the roads shallbecrowned, ditched, and constructed with a running surface of 18 feet.

• Access roads shall be winding, and kept offthe ridge. Install culverts, Iow watercrossings, water bars, turnouts, etc. as necessary, in order to provide good drainage,control soil erosion, and also for safety reasons.

6. Surface Pipelines: Restrictions for placement of surface pipelines:-a): Surface pipelines will be placed 5-10 feet outside of the borrow area.b): Surface pipelines will be placed in such a way that theywill not wander into the borrow area.c): Pipelines willbe buried at all major road and drainage


11/19/2008

7. Wet Soi! - Caution: No vehicle travel,construction or routine maintenance activities shall beperformed during periods when the soil is too wet to adequately support vehicles and/orconstruction equipment. Ifsuch equipment creates ruts in excess of three inches deep i_n_astraiqht line travelpath, the soil shall be deemed too wet to adequately support constructionequipment.

8. Topsoil: Four to six inches of topsoilshall be stripped from the location and stored for later useduring reclamation.

9. Soil Erosion - Caution: Lands where the proposed oil wells are located have been identifiedas vulnerable to moderate erosion. Ifadditional erosion occurs during the life of this project,more culverts, diversion channels, berms, wing ditches, Iow water crossings, etc. will need to beinstalled/constructed in order to control erosion.

10. Specific Conditions Pertaining to Location Construction:

• Move corner #8 westward approximately 8-15 feet, in order to stay clear away from theadjoining main access road that runs throughthe area.

11. Reserve Pit: The reserve pit will be constructed in such a way that it will not leak, break or allowdischarge of fluids in it. Line the pit with a 14 mlor greater liner and felt. When the drillingoperations have been completed, the oily,dark colored surface layer mainlycomposed ofhydrocarbons shall be removed (43 CFR 3162.7-1). And weather permitting; the reserve pit shallbe backfilled, and reclaimed within 90 days.

12. Fencing: Any pits, and open tanks shall be fenced in order to exclude livestock and otherwildlife from the area, obviouslypreventing injury and drinking fluids which could be toxic. Thereserve pit will initially be fenced on 3 sides during drilling operations, but once drilling hasceased, and the rig has been removed, the fourth side will also be fenced. The fences will bemaintained until the pit has been reclaimed.

13. Drainages:

• Keep drainages clear.• Ditches, culverts and all installments will be properly constructed in order to avoid

sedimentation of drainage ways and other water resources.• Prevent filland stock piles from entering drainages.

14. Paint Color: Allwell facilities not regulated by OSHA will be painted Covert Green.

15. General Maintenance:

• The operator will be responsible for treatment and control of invasive and noxiousweeds.Prior to any treatment on BLMadministered lands, a Pesticide Use Proposal will besubmitted to the Vernal Field Office for approval.

• All boulders found on the surface will be stockpiled for use during final reclamation.• The operator shall keep the site well maintained and


11/19/2008

16. Interim Reclamation:

• Maximize interim reclamation. Within the pad, reseed all areas not needed forproduction; only leave room for vehicle access.

• During interim reclamation of the surface, the following seed mixture will be used (PLSformula).Indian Ricegrass (Oryzopsis hymenoides) 6 IbslacreGalleta Grass (Hilaria jamesii) 6 lbs/acre

• Rates are set for drill seeding; double the rate if broadcasting.• Reseeding may be required if initial seeding is not successful.• If no germination, contact BLM authorized officer.

17. Final Reclamation:

• See APD• Once the location is plugged and abandoned, it shall be re-contoured to natural

topography,topsoilshall be re-spread, and the entire location shall be seeded with aseed mixture recommended by the A.O. Seed application will follow all guidelinesrecommended for seedbed preparation, planting, watering, and seedling care aftergermination.

• Any off road trackswithin 100 feet of an existing road or trailwill be


11/19/2008

DOWNHOLE PROGRAMCONDITIONS OF APPROVAL (COAs)

SITE SPECIFIC DOWNHOLE COAs:

• A casing shoe integrity test shall be performed on the surface casing shoe.

• A minimumof 3M BOPE shall be installed and tested in accordance with Onshore Order #2.

• The production cement top shall be at a minimumof 200' above the surface casing shoe.

• The Gamma ray log shall be run from TD to surface.

AII provisions outlined in Onshore Oil & Gas Order #2 Drilling Operations shall be strictlyadhered to. The following items are emphasized:

DRILLINGICOMPLETIONIPRODUCING OPERATING STANDARDS

• The spud date and timeshall be reported orallyto Vernal Field Office within 24 hours ofspudding.

• Notify Vernal Field Office Supervisory Petroleum Enqineerinq Technician at least 24 hours inadvance of casinq cementinq operations and BOPE & casinq pressure tests.

• AIIrequirements listed in Onshore Order #2 Ill. E. Special Drilling Operations are applicable forair drilling of surface hole.

• Blowout prevention equipment (BOPE) shall remain in use until the well is completed orabandoned. Closing unit controls shall remain unobstructed and readily accessible at all times.Choke manifolds shall be located outside of the rig substructure.

• All BOPE components shall be inspected daily and those inspections shall be recorded in thedaily drilling report. Components shall be operated and tested as required by Onshore Oil &Gas Order No. 2 to insure good mechanical workingorder. AIIBOPE pressure tests shall beperformed by a test pump with a chart recorder and N_OT_by the rig pumps. Test shall bereported in the driller's log.

• BOP drills shall be initially conducted by each drilling crew within 24 hours of drilling out fromunder the surface casing and weekly thereafter as specified in Onshore Oil & Gas Order No. 2.

• Casing pressure tests are required before drilling out from under all casing strings set andcemented in place.

• No aggressivelfresh hard-banded drill pipe shall be used within casing.

• Cement baskets shall not be run on surface casing.

• The operator must report all shows of water or water-bearing sands to the BLM. Ifflowing wateris encountered it must be sampled, analyzed, and a copy of the analyses submitted to the BLMVernal Field


11/19/2008

• The operator must report encounters of all non oil& gas mineral resources (such as Gilsonite,tar sands, oilshale, trona,etc.) to the Vernal Field Office, in writing,within5 workingdays ofeach encounter. Each report shall include the well namelnumber, well location, date and depth(from KB or GL) of encounter, vertical footage of the encounter and, the name of the personmaking the report (along with a telephonenumber) should the BLM need to obtain additionalinformation.

• A complete set of angular deviation and directional surveys of a directional well will besubmitted to the Vernal BLMoffice engineer within 30 days of the completion of the well.

• While actively drilling, chronologic drilling progress reports shall be filed directly with the BLM,Vernal Field Office on a weekly basis in sundry, letter format or e-mail to the PetroleumEngineers until the well is completed.

• A cement bond log (CBL) will be run from the production casing shoe to the top of cement andshall be utilizedto determine the bond quality for the production casing. Submit a field copy ofthe CBL to this office.

• Please submit an electronic copy of all other logs run on this well in LAS format [email protected]. This submission will supersede the requirement forsubmittal of paper logs to the BLM.

• There shall be no deviation from the proposed drilling, completion, and/or workover program asapproved. Safe drilling and operating practices must be observed. Any changes in operationmust have prior approval from the BLMVernal Field


11/19/2008

OPERATING REQUIREMENT REMINDERS:

• AIIwells, whether drilling, producing, suspended, or abandoned, shall be identified inaccordance with 43 CFR 3162.6. There shall be a sign or marker with the name of the operator,lease serial number, well number, and surveyed description of the well.

• In accordance with 43 CFR 3162.4-3, thiswell shall be reported on the "Monthly Report ofOperations" (Oil and Gas Operations Report ((OGOR)) starting with the month in whichoperations commence and continue each month until the well is physically plugged andabandoned. This report shall be filed in duplicate, directly with the Minerals ManagementService, P.O. Box 17110, Denver, Colorado 80217-0110, or call 1-800-525-7922 (303) 231-3650 for reporting information.

• Should the well be successfully completed for production, the BLMVernal Field office must benotifiedwhen it is placed in a producing status. Such notificationwillbe by writtencommunication and must be received in this officeby not later than the fifth business dayfollowing the date on which the well is placed on production. The notificationshall provide, as aminimum,the following informational items:

o Operator name, address, and telephonenumber.

o Well name and number.

o Well location (¼¼,Sec., Twn, Rng, and P.M.).

o Date wellwas placed in a producing status (date of first production for which royaltywillbe paid).

o The nature of the well's production, (i.e., crude oil, or crude oil and casing head gas, ornatural gas and entrained liquid hydrocarbons).

o The Federal or Indian lease prefix and number on which the well is located; otherwisethe non-Federal or non-Indian land category, i.e., State or private.

o Unit agreement and/or participating area name and number, if applicable.

o Communitization agreement number, if applicable.

• Any venting or flaring of gas shall be done in accordance with Notice to Lessees (NTL) 4A andneeds prior approval from the BLMVernal Field Office.

• AIIundesirable events (fires, accidents, blowouts, spills, discharges) as specified in NTL 3A willbe reported to the BLM,Vernal Field Office. Major events, as defined in NTL3A, shall bereported verbally within 24 hours, followed by a written report within 15 days. "Other than MajorEvents" will be reported in writing within 15 days. "Minor Events" will be reported on theMonthly Report of Operations and Production.

• Whether the well is completed as a dry hole or as a producer, "Well Completion andRecompletion Report and Log" (BLM Form 3160-4) shall be submitted not later than 30 daysafter completion of the well or after completion of operations being performed, in accordancewith 43 CFR 3162.4-1. Two copies of all logs run, core descriptions, and all other surveys


11/19/2008

data obtained and compiled during the drilling, workover, and/or completion operations, shall befiled on BLM Form 3160-4. Submit with the well completion report a geologic report including,at a minimum, formation tops, and a summary and conclusions. Also include deviation surveys,sample descriptions, strip logs, core data, drill stem test data, and results of production tests ifperformed. Samples (cuttings, fluid, and/or gas) shall be submitted only when requested by theBLM,Vernal Field Office.

• AIIoff-lease storage, off-lease measurement, or commingling on-lease or off-lease, shall haveprior written approval from the BLMVernal Field Office.

• Oil and gas meters shall be calibrated in place prior to any deliveries. The BLMVernal FieldOffice Petroleum Engineers will be provided witha date and timefor the initial meter calibrationand all future meter proving schedules. A copy of the meter calibration reports shall besubmitted to the BLMVernal Field Office. AIImeasurement facilities will conform to the APIstandards for liquid hydrocarbons and the AGA standards for natural gas measurement. Allmeasurement points shall be identified as the point of sale or allocation for royalty purposes.

• A schematic facilities diagram as required by Onshore Oil& Gas Order No. 3 shall be submittedto the BLMVernal Field Office within 30 days of installation or first production, whichever occursfirst. AIIsite security regulations as specified in Onshore Oil & Gas Order No. 3 shall beadhered to. AIIproduct lines entering and leaving hydrocarbon storage tanks will be effectivelysealed in accordance with Onshore Oil & Gas Order No. 3.

• Any additional construction, reconstruction, or alterations of facilities, including roads, gatheringlines, batteries, etc., which will result in the disturbance of new ground, shall require the filing ofa suitable plan and need prior approval of the BLMVernal Field Office. Emergency approvalmay be obtained orally,but such approval does not waive the written report requirement.

• No location shall be constructed or moved, no well shall be plugged, and no drilling or workoverequipment shall be removed from a well to be placed in a suspended status without priorapproval of the BLMVernal Field Office. Ifoperations are to be suspended for more than 30days, prior approval of the BLMVernal Field Office shall be obtained and notification givenbefore resumption of operations.

• Pursuant to Onshore Oil & Gas Order No. 7, this is authorization for pit disposal of waterproduced from thiswell for a period of 90 days from the date of initial production. A permanentdisposal method must be approved by this office and in operation prior to the end of this 90-dayperiod. In order to meet this deadline, an application for the proposed permanent disposalmethod shall be submitted along with any necessary water analyses, as soon as possible, butno later than 45 days after the date of first production. Any method of disposal which has notbeen approved prior to the end of the authorized 90-day period will be considered as an Incidentof Noncompliance and will be grounds for issuing a shut-in order until an acceptable manner fordisposing of said water is provided and approved by this office.

• Unless the plugging is to take place immediately upon receipt of oral approval, the Field OfficePetroleum Engineers must be notified at least 24 hours in advance of the plugging of the well, inorder that a representative may witness plugging operations. If a well is suspended orabandoned, all pits must be fenced immediately until they are backfilled. The "SubsequentReport of Abandonment" (Form BLM3160-5) must be submitted within 30 days after the actualplugging of the well bore, showing location of plugs, amount of cement in each, and amount ofcasing left in hole, and the current status of the surface

API Well No: 43013340720000

STATE OF UTAHDEPARTMENT OF NATURAL RESOURCES

DIVISION OF OIL, GAS, AND MINING

FORM 9

5.LEASE DESIGNATION AND SERIAL NUMBER: UTU-80566

SUNDRY NOTICES AND REPORTS ON WELLSDo not use this form for proposals to drill new wells, significantly deepen existing wells below currentbottom-hole depth, reenter plugged wells, or to drill horizontal laterals. Use APPLICATION FOR PERMIT TODRILL form for such proposals.

6. IF INDIAN, ALLOTTEE OR TRIBE NAME:

7.UNIT or CA AGREEMENT NAME:

1. TYPE OF WELL Gas Well

8. WELL NAME and NUMBER: JOELYN FED 1-27

2. NAME OF OPERATOR: QUINEX ENERGY CORP

9. API NUMBER: 43013340720000

3. ADDRESS OF OPERATOR: 465 South 200 West , Bountiful, UT, 84010

9. FIELD and POOL or WILDCAT: UNDESIGNATED

4. LOCATION OF WELL FOOTAGES AT SURFACE: 0660 FNL 1980 FWL QTR/QTR, SECTION, TOWNSHIP, RANGE, MERIDIAN: Qtr/Qtr: NENW Section: 27 Township: 09.0S Range: 17.0E Meridian: S

COUNTY: DUCHESNE

STATE: UTAH

11.

CHECK APPROPRIATE BOXES TO INDICATE NATURE OF NOTICE, REPORT, OR OTHER DATA

TYPE OF SUBMISSION TYPE OF ACTION

NOTICE OF INTENTApproximate date work will start:

6/1/2010

SUBSEQUENT REPORTDate of Work Completion:

SPUD REPORTDate of Spud:

DRILLING REPORTReport Date:

ACIDIZE ALTER CASING CASING REPAIR

CHANGE TO PREVIOUS PLANS CHANGE TUBING CHANGE WELL NAME

CHANGE WELL STATUS COMMINGLE PRODUCING FORMATIONS CONVERT WELL TYPE

DEEPEN FRACTURE TREAT NEW CONSTRUCTION

OPERATOR CHANGE PLUG AND ABANDON PLUG BACK

PRODUCTION START OR RESUME RECLAMATION OF WELL SITE RECOMPLETE DIFFERENT FORMATION

REPERFORATE CURRENT FORMATION SIDETRACK TO REPAIR WELL TEMPORARY ABANDON

TUBING REPAIR VENT OR FLARE WATER DISPOSAL

WATER SHUTOFF SI TA STATUS EXTENSION APD EXTENSION

WILDCAT WELL DETERMINATION OTHER OTHER:

12. DESCRIBE PROPOSED OR COMPLETED OPERATIONS. Clearly show all pertinent details including dates, depths, volumes, etc.

Pending inclusion in the Greater Monument Butte Unit this well will be drilledsometime in the spring of 2010.

NAME (PLEASE PRINT) K. Michael Hebertson

TITLE Geologist

SIGNATURE N/A

DATE 9/10/2009

PHONE NUMBER:801 292-3800 Ext

PHONE NUMBER801 292-3800

September 10, 2009

September 14, 2009

iPI Well No: 43013340720000

FORM 9


DIVISION OF OIL, GAS, AND MINING 5.LEASEOD6E6SIGNATION AND SERIAL NUMBER:

SUNDRY NOTICES AND REPORTS ON WELLS 6. IF INDIAN, ALLOTTEE OR TRIBE NAME:

Do not use this form for proposals to drill new wells, significantly deepen existing wells below currentbottom-hole depth, reenter plugged wells, or to drill horizontal laterals. Use APPLICATION FOR PERMIT TO 7.UNIT or CA AGREEMENT NAME:

DRILL form for such proposals.

1. TYPE OF WELL 8. WELL NAME and NUMBER:Gas Well JOELYN FED 1-27

2. NAME OF OPERATOR: 9. API NUMBER:QUINEX ENERGYCORP 43013340720000

3. ADDRESS OF OPERATOR: PHONE NUMBER: 9. FIELD and POOL or WILDCAT:465 South 200 West , Bountiful, UT, 84010 801 292-3800 Ext UNDESIGNATED

4.LOCATIONOFWELL COUNTY:FOOTAGES AT SURFACE: DUCHESNE

0660 FNL 1980 FWLQTR/QTR, SECTION, TOWNSHIP, RANGE, MERIDIAN: STATE:

Qtr/Qtr: NENW Section: 27 Township: 09.05 Range: 17.0E Meridian: S UTAH

11.CHECK APPROPRIATE BOXES TO INDICATE NATURE OF NOTICE, REPORT, OR OTHER DATA



/ NOTICE OF INTENTApproximate date work will start: CHANGE TO PREVIOUS PLANS CHANGE TUBING CHANGE WELL NAME

6/1/2010CHANGE WELL STATUS COMMINGLE PRODUCING FORMATIONS CONVERT WELL TYPE

SUBSEQUENT REPORT DEEPEN FRACTURE TREAT NEW CONSTRUCTIONDate of Work Completion:



SPUD REPORTDate of Spud: REPERFORATE CURRENT FORMATION SIDETRACK TO REPAIR WELL TEMPORARY ABANDON


DRILLING REPORT WATER SHUTOFF SI TA STATUS EXTENSION APD EXTENSIONReport Date:


12. DESCRIBE PROPOSED OR CC MPLETED OPERATIONS. Clearly show all pertinent details including dates, depths, volumes, etc.

Pending inclusion in the Greater Monument Butte Unit this well will be drilledsometime in the spring of 2010. Approved by the

Utah Division ofOil, Gas and Mining

Date: September 14, 2009

By:

NAME (PLEASE PRINT) PHONE NUMBER TITLEK. Michael Hebertson 801 292-3800 Geologist

SIGNATURE DATEN/A 9/10/2009

RECEIVED September 10,

The Utah Division of Oil, Gas, and Mining

- State of Utah- Department of Natural Resources

Electronic Permitting System - Sundry Notices

Request for Permit Extension Validation Well Number 43013340720000

API: 43013340720000Well Name: JOELYN FED 1-27

Location: 0660 FNL 1980 FWL QTR NENW SEC 27 TWNP 090S RNG 170E MER SCompany Permit Issued to: QUINEX ENERGY CORP

Date Original Permit Issued: 9/9/2008

The undersigned as owner with legal rights to drill on the property as permitted above, hereby verifies thatthe information as submitted in the previously approved application to drill, remains valid and does notrequire revision. Following is a checklist of some items related to the application, which should be verified.

If located on private land, has the ownership changed, if so, has the surface agreement beenupdated? Yes No

Have any wells been drilled in the vicinity of the proposed well which would affect the spacing orsiting requirements for this location? Yes No

Has there been any unit or other agreements put in place that could affect the permitting or operationof this proposed well? Yes No

Have there been any changes to the access route including ownership, or rightof- way, which couldaffect the proposed location? Yes No

Has the approved source of water for drilling changed? Yes No

Have there been any physical changes to the surface location or access route which will require achange in plans from what was discussed at the onsite evaluation? Yes No

Is bonding still in place, which covers this proposed well? Yes No

Signature: K. Michael Hebertson Date: 9/10/2009

Title: Geologist Representing: QUINEX ENERGY CORP

September 10, 2009

September 14, 2009

UTAH

DNR The Utah Division of Oil, Gas, and Mining'

- State of Utah- Department of Natural ResourcesElectronic Permitting System - Sundry Notices

OTI BAS Br MlNTNG



Location: 0660 FNL 1980 FWL QTR NENW SEC 27 TWNP 090S RNG 170E MER SCompany Permit Issued to: QUINEX ENERGY CORP



•If located on private_land, has the ownership changed, if so, has the surface agreement beenupdated? I___|I Yes I_Ð_I No

• Have any wells been drilled in the vicinity of the_proposed well which would affect the spacing orsiting requirements for this location? I:___) Yes _®_) No

• Has there been any unit or other agreements put in place that could affect the permitting or operationof this proposed well? I Yes i i No

• Have there been any changes to the access route including ownership, or rightof- way, which couldaffect the proposed location? I___I Yes I _I No

• Has the approved source of water for drilling changed? I __I Yes i No

• Have there been any physical changes to the surface location or access route which will require achange in plans from what was discussed at the onsite evaluation? I___I Yes I®I No

Approved by the•Is bonding still in place, which covers this proposed well? iþ Yes i i No Utah Division of

Oil, Gas and MiningSignature: K. Michael Hebertson Date: 9/10/2009

Title: Geologist Representing: QUINEX ENERGY CORP Date: September 14, 2009

By:

RECEIVED September 10,

API Well No: 43013340720000


DIVISION OF OIL, GAS, AND MINING

FORM 9

5.LEASE DESIGNATION AND SERIAL NUMBER: UTU-80566

SUNDRY NOTICES AND REPORTS ON WELLSDo not use this form for proposals to drill new wells, significantly deepen existing wells below currentbottom-hole depth, reenter plugged wells, or to drill horizontal laterals. Use APPLICATION FOR PERMIT TODRILL form for such proposals.

6. IF INDIAN, ALLOTTEE OR TRIBE NAME:

7.UNIT or CA AGREEMENT NAME:

1. TYPE OF WELL Gas Well

8. WELL NAME and NUMBER: JOELYN FED 1-27

2. NAME OF OPERATOR: NEWFIELD PRODUCTION COMPANY

9. API NUMBER: 43013340720000

3. ADDRESS OF OPERATOR: PHONE NUMBER: Rt 3 Box 3630 , Myton, UT, 84052 435 646-4825 Ext

9. FIELD and POOL or WILDCAT: MONUMENT BUTTE

4. LOCATION OF WELL FOOTAGES AT SURFACE: 0660 FNL 1980 FWL QTR/QTR, SECTION, TOWNSHIP, RANGE, MERIDIAN: Qtr/Qtr: NENW Section: 27 Township: 09.0S Range: 17.0E Meridian: S

COUNTY: DUCHESNE

STATE: UTAH

11.

CHECK APPROPRIATE BOXES TO INDICATE NATURE OF NOTICE, REPORT, OR OTHER DATA


NOTICE OF INTENTApproximate date work will start:

9/9/2011

SUBSEQUENT REPORTDate of Work Completion:

SPUD REPORTDate of Spud:

DRILLING REPORTReport Date:


CHANGE TO PREVIOUS PLANS CHANGE TUBING CHANGE WELL NAME

CHANGE WELL STATUS COMMINGLE PRODUCING FORMATIONS CONVERT WELL TYPE

DEEPEN FRACTURE TREAT NEW CONSTRUCTION



REPERFORATE CURRENT FORMATION SIDETRACK TO REPAIR WELL TEMPORARY ABANDON


WATER SHUTOFF SI TA STATUS EXTENSION APD EXTENSION


12. DESCRIBE PROPOSED OR COMPLETED OPERATIONS. Clearly show all pertinent details including dates, depths, volumes, etc.

Newfield proposes to extend the Application for Permit to Drill this well for oneyear.

NAME (PLEASE PRINT) PHONE NUMBER Mandie Crozier 435 646-4825

TITLE Regulatory Tech

SIGNATURE N/A

DATE 10/8/2010

October 08, 2010

October 11, 2010

iPI Well No: 43013340720000

FORM 9


DIVISION OF OIL, GAS, AND MINING 5.LEASE D6E6SIGNATION AND SERIAL NUMBER:

SUNDRY NOTICES AND REPORTS ON WELLS 6. IF INDIAN, ALLOTTEE OR TRIBE NAME:

Do not use this form for proposals to drill new wells, significantly deepen e×isting wells below currentbottom-hole depth, reenter plugged wells, or to drill horizontal laterals. Use APPLICATION FOR PERMIT TO 7.UNIT or CA AGREEMENT NAME:

DRILL form for such proposals.

1. TYPE OF WELL 8. WELL NAME and NUMBER:Gas Well JOELYN FED 1-27

2. NAME OF OPERATOR: 9. API NUMBER:NEWFIELD PRODUCTION COMPANY 43013340720000

3. ADDRESS OF OPERATOR: PHONE NUMBER: 9. FIELD and POOL or WILDCAT:Rt 3 Box 3630 , Myton, UT, 84052 435 646-4825 Ext MONUMENT BUTTE

4.LOCATIONOFWELL COUNTY:FOOTAGES AT SURFACE: DUCHESNE

0660 FNL 1980 FWLQTR/QTR, SECTION, TOWNSHIP, RANGE, MERIDIAN: STATE:

Qtr/Qtr: NENW Section: 27 Township: 09.05 Range: 17.0E Meridian: S UTAH

11.CHECK APPROPRIATE BOXES TO INDICATE NATURE OF NOTICE, REPORT, OR OTHER DATA



NOTICE OF INTENTApproximate date work will start: CHANGE TO PREVIOUS PLANS CHANGE TUBING CHANGE WELL NAME

9/9/2011CHANGE WELL STATUS COMMINGLE PRODUCING FORMATIONS CONVERT WELL TYPE

SUBSEQUENT REPORT DEEPEN FRACTURE TREAT NEW CONSTRUCTIONDate of Work Completion:



O SPUD REPORTDate of Spud: REPERFORATE CURRENT FORMATION SIDETRACK TO REPAIR WELL TEMPORARY ABANDON


DRILLING REPORT WATER SHUTOFF SI TA STATUS EXTENSION APD EXTENSIONReport Date:


12. DESCRIBE PROPOSED OR CC MPLETED OPERATIONS. Clearly show all pertinent details including dates, depths, volumes, etc.

Newfield proposes to extend the Application for Permit to Drill this well for oneyear. Approved by the

Utah Division ofOil, Gas and Mining

Dat·e 11, 2010

NAME (PLEASE PRINT) PHONE NUMBER TITLEMandie Crozier 435 646-4825 Regulatory Tech

SIGNATURE DATEN/A 10/8/2010

RECEIVED October 08,

The Utah Division of Oil, Gas, and Mining

- State of Utah- Department of Natural Resources

Electronic Permitting System - Sundry Notices



Location: 0660 FNL 1980 FWL QTR NENW SEC 27 TWNP 090S RNG 170E MER SCompany Permit Issued to: NEWFIELD PRODUCTION COMPANY



If located on private land, has the ownership changed, if so, has the surface agreement beenupdated? Yes No

Have any wells been drilled in the vicinity of the proposed well which would affect the spacing orsiting requirements for this location? Yes No

Has there been any unit or other agreements put in place that could affect the permitting or operationof this proposed well? Yes No

Have there been any changes to the access route including ownership, or rightof- way, which couldaffect the proposed location? Yes No

Has the approved source of water for drilling changed? Yes No

Have there been any physical changes to the surface location or access route which will require achange in plans from what was discussed at the onsite evaluation? Yes No

Is bonding still in place, which covers this proposed well? Yes No

Signature: Mandie Crozier Date: 10/8/2010

Title: Regulatory Tech Representing: NEWFIELD PRODUCTION COMPANY

October 08, 2010October 08, 2010

October 11, 2010

UTAH

DNR The Utah Division of Oil, Gas, and Mining'

- State of Utah- Department of Natural ResourcesElectronic Permitting System - Sundry Notices

OTI GAS MlNTNG



Location: 0660 FNL 1980 FWL QTR NENW SEC 27 TWNP 0905 RNG 170E MER SCompany Permit Issued to: NEWFIELD PRODUCTION COMPANY



•If located o_nprivate_land, has the ownership changed, if so, has the surface agreement beenupdated? I

_

i Yes igi No

• Have any wells been drilled in the vicinity of the_proposed well which would affect the spacing orsiting requirements for this location? :__I Yes g:I No

• Has there been any unit or other agreements put in place that could affect the permitting or operationof this proposed well? I:_:I Yes IÏiÏ:I No

• Have there been any changes to the access route including ownership, or rightof- way, which couldaffect the proposed location? I___I Yes igi No

• Has the approved source of water for drilling changed? I_

I Yes IÎiÏI No

• Have there been any physical changes to the surface location or access route which will require achange in plans from what was discussed at the onsite evaluation? __:I Yes ig:I No

Approved by the•Is bonding still in place, which covers this proposed well? liiil Yes i i No Utah Division of

Oil, Gas and MiningSignature: Mandie Crozier Date: 10/8/2010

Title: Regulatory Tech Representing: NEWFIELD PRODUCTION COMPANY Date: October 11, 2010

By:

RECEIVED October 08,

United States Department of the Interior

BUREAU OF LAND MANAGEMENTGreen River District-Vernal Field Office

170 South 500 East TAKE PRIDE°en a Vernal, UT 84078 INAMERICA

(435) 781-4400 Fax: (435) 781-4410http://www.blm.gov/ut/st/en/fo/vernal.html

SEP12 2011IN REPLY REFER TO:3160 (UTGO11)

Mandie CrozierNewfield Production CompanyRoute 3, Box 3630Myton, UT 84052

43 Dis Sto'ItRe: Notice of Expiration

Well No. Joelyn Federal 1-27NENW, Sec. 27, T9S, R17EDuchesne County, UtahLease No. UTU-80566Greater Monument Butte (GR) Unit

Dear Ms. Crozier:

The Application for Permit to Drill (APD) for the above-referencedwellwas approved onNovember 20, 2008. No extension of the originalAPD was requested. According to ourrecords, no known activity has transpiredat the approved location. In view of the foregoing, thisoffice is notifyingyou that the approval of the referenced application has expired. Ifyou intendto drill at this location in the future, a new Application for Permit to Drillmust be submitted.

This office requires a letter confirming that no surface disturbance has been made for this drillsite. Any surface disturbance associated with the approved location of thiswell is to berehabilitated. A schedule for th1srehabilitation must be submitted to this office. Yourcooperation in this matter is appreciated.

Ifyou have any questions regarding APD processing, please contact Cindy Severson at (435)781-4455.

Sincerely,RECEIVEDOCTO7 2011

e Kenczka DIV.0FOIL,GAS&MININGAssistant Field ManagerLands &Mineral Resources

cc:

O OState of UtahDEPARTMENT OF NATURAL RESOURCES

-N- MICHAEL R. STYLER

GAR R BERT Executive Director

Governor Division of Oil, Gas and MiningGREG BELL JOHN R. BAZA September 15, 2011

Lieutenant Governor Division Director

Mandie CrozierNewfield Production CoRoute 3 Box 3630 49 ('lf gMyton, UT 84052

Re: APDs Rescinded for Newfield Production CompanyUintah County & Duchesne County

Dear Ms. Crozier:

Enclosed find the list of APDs that you requested to be rescinded. No drillingactivity at these locations has been reported to the division. Therefore,approval to drill these wells is hereby rescinded, effective September 23, 2011.

A new APD must be filed with this office for approval prior to thecommencement of any future work on the subject location.

If any previously unreported operations have been performed on this welllocation, it is imperative that you notify the Division immediately.

Sincerely,

Diana MasonEnvironmental Scientist

cc: Well FileBureau of Land Management, VernalBureau of Land Management, Price

UTAH

DNR

1594 WestNorth Temple, Suite 1210, PO Box 145801,Salt Lake City, UT 84114-5801telephone(801) 538-5340 •facsimile (801) 359-3940 • TTY (801) 538-7458 . www.ogm.utah.gov OK, 6^s a

O O

43-013-34072 JOELYN FED 1-2743-013-34073 HELEN FED 1-2643-007-31327 DUGOUT CREEK FED 41-3043-007-31057 DUGOUT CREEK FED 31-443-007-31058 DUGOUT CREEK FED 43-3343-007-31059 DUGOUT CREEK FED 41-3343-007-31060 DUGOUT CREEK FED

application for permit to drill or reenter · /3/2008) diana mason-8 point pl, loelyn fed.1-27.doc...

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