BEFORE THE BOARD OF OIL, GAS AND MINING DEPARTMENT OF NATURAL RESOURCES STATE OF UTAH IN THE MATTER OF THE AMENDED REQUEST FOR AGENCY ACTION OF BADLANDS ENERGY - UTAH, LLC FOR AN ORDER EXTENDING THE BOARD'S ORDER ENTERED IN CAUSE NO. 139-84, AND MODIFYING THE BOARD'S ORDERS ENTERED IN CAUSE NOS. T3I-24 AND NOTICE OF HEARING 139-42, TO PROVIDE FOR THE DzuLLING OF ADDITIONAL WELLS TO ACHIEVE Docket No. 2015-024 THE EQUTVALENT OF UP TO A 160-ACRE Cause No. 139-135 WELL DENSITY PATTERN, FOR THE PRODUCTION OF OIL, GAS AND ASSOCIATED HYDROCARBONS FROM THE LOWER GREEN RIVER _ V/ASATCH FORMATIONS IN SECTIONS 1,9, IO, 12, 13, 15-17,19-24 AND 26-35, TOWNSHIP 2 SOUTH, RANGE 1 EAST, USM, UINTAH COUNTY, UTAH THE STATE OF UTAH TO ALL PERSONS INTERESTED IN THE FOLLOWING MATTER. Notice is hereby given that the Board of Oil, Gas and Mining ("Board"), State of Utah, will conduct a hearing on V/EDNESDAY, OCTOBER 28,2015, at 9:00 AM, or as soon thereafter as possible, in the auditorium of the Department of Natural Resources, 1594 West North Temple, Salt Lake City, Utah. The hearing will be conducted as a formal administrative adjudication in accordance with the rules of the Board as set forth in Utah Administrative Code R641 et seq., and as provided for in utah code Ann. $ 40-6-l et seq., and utah code Ann. $ 63c-4-l0l through 601. The purpose of the hearing will be for the Board to receive testimony and evidence regarding a Request for Agency Action that the Board enter an Order: l. Extending the Board's Order entered on December 30, 2008 in Cause No. 139-84 (the *139-84 Order") to allow up to four (4) producing wells upon the following existing drilling units established under the Board's Order entered January 16,1974 in Cause No. 131-24 (the *l3l-24 Order"), and modified by the Board's Order entered April 17, 1985 in Cause No. 139-42 (the"139-42 Order"): T2S. RlE. USM Section 1: Lots 1 -4, S'/'2Ir{y2, S% [All, 652.7 4 acres] Section 9: All Section 10: Lots 1-16, 18-24, NTrNE%, SE74NE%, NW%SW%, and that portion of Duchesne Nos. 1-10, inclusive, (Patented) Mining Claims (Survey No. 5519) contained therein 1A11,642.303 acresl Section 12: Lots I and2,N/2,58y4, N%SW% SE%SV/% [All, 638.82 acres] Section l3: Lots 1-10, EY"l1-ll,64l.98 acresl Section 15: Lots 1-8, Ey2Wy2,E/2, and that portion of Duchesne Nos. l-10, inclusive, (Patented) Mining Claims (Survey No. 5519) contained therein [All, 649.09 acresl Section 16: All Section l7: All y2, Section 19: Lots 1 -4, E%W Ey, l1^ll, 638.46 acresl Section 20: Lots l-8, N% [All, 632.73 acres] Section 2l: Lots l-4, 6-10, N% 1A11,636.76 acresl Section 22: Lots 1 -8, E%WY2, Ey, l1^ll, 649.7 6 acresl Section 23: Lots 1 -9, Ny2, SEy4, E%SW %, NV/ %SW %, E%SW y4SW y4, y4SW y4, E %NW%SW SW%SV/%SV/% [All, 640. 5 0 acres] Section 24 Lots 1-8, E%[All,635.51 acres] Section 26 Lots l-15, NE%, N%SEY¿, STrNW%, N7rNE74NW%, N7rNE74NIW74NW%, N%SW% [All, 640.48 acres] Section 27: Lots 1-14, E%NWvz,NE%, NE%SV/%,N%SE% ÍAll, 644.86 acresl Section 28: All Section 29: All Section 30: Lots 1 -4, E%W%, E% [All, 640.96 acres] 2 Section 31: Lots 1 -4, E%WY2, E% l1^ll, 640.27 acresl Section 32: All Section 33: All Section 34: All Section 35: All (collectively the "Extension Lands"), for the production of oil, gas and associated hydrocarbons from the Lower Green River and Wasatch formations, defined in the I3l-24 Order (by reference to the Board's Order entered on August ll,l97l in Cause No. 13l-14), as follows: that interval below the stratigraphic equivalent of 9,600 feet depth in the "8" Log of the Carter #2 Bluebell well located in the SW74NW%, Section 3, Township 1 South, Range 2 West, USM (which equivalence is the depth 9,530 feet of the SP curye, Dual Induction Log, run March 15, 1968, in the Chevron #l Blanchard well located in the NW%SE% of said Section 3), to the base of the Green River- Wasatch formations (the "Subject Formations"); 2. Providing no productive interval of any well so authorized may be located closer than 660 feet to a drilling unit boundary or 1320 feet to another well producing from the Spaced Formations without an exception location approval obtained in accordance with Utah Admin. Code Rule R649-3-3; and 3. Providing for such other and further relief as may be just and equitable under the circumstances. Objections to the Request for Agency Action must be hled with the Secretary of the Board at the address listed below no later than October 14,2015. A party must file a timely written objection or other response in order to participate as a party at the Board hearing. Failure to participate can result in a default judgment. J Natural persons may appear and represent themselves before the Board. All other representation of parties before the Board will be by attorneys licensed to practice law in the State of Utah, or attorneys licensed to practice law in another jurisdiction which meet the rules of the Utah State Bar for practicing law before the Utah Courts. Persons interested in this matter may participate pursuant to the procedural rules of the Board. The Request for Agency Action, and any subsequent pleadings, may be inspected at the office of the undersigned, and inspected online at the Utah Board of Oil, Gas and Mining's website at Pursuant to the Americans with Disabilities Act, persons requiring auxiliary communicative aids and services to enable them to participate in this hearing should call Julie Ann Carter at (801 ) 538-5277 , at least three working days prior to the hearing date. DATED this 30th day of September,2015. STATE OF UTAH BOARD OF OIL, GAS AND MINING Ruland J. Gill, Jr., Chairman \,.0; , *,,.,^ 2rTr. Board Secretary 1594 West North Temple, Suite 1210 Salt Lake City, Utah 84116 (80r) s38-s277 4 OF PUBLISHED I hereby certify that I caused a true and correct copy of the foregoing NOTICE OF HEARING for Docket No. 2015-024 Cause No. 139-135 to be PUBLISHED in the following newspapers on the following days: October 4,2015: The Salt Lake Tribune and Deseret Morning News, newspapers of general circulation in Salt Lake City and County. October 6,2015: Uintatr Basin Standard, a newspaper of general circulation in Duchesne and Uintatr Counties. October 6,2015: Vernal Express, a newspaper of general circulation in Uintah and Daggett Counties. 5 CERTIFICATE OF SERVICE I hereby certify that on this 1st day of October, 2015,I caused a true and correct copy of the foregoing NOTICE OF HEARING for Docket No. 2015-024 Cause No. 139- 135, to be mailed by Email or via First Class Mail with postage prepaid, to the following: MACDONALD & MILLER John Obourn MTNERAL LEGAL SERVICES, PLLC Badlands Energy - Utah, LLC Relma M. Miller, Esq. 79798. Tufts Ave., Suite ll50 7090 S. Union Park Ave, Ste 400 Denver, CO80237 Midvale, UT 84047 Attorneys for Petitioner Badlands Energy - Utah, LLC Steven F. Alder, Esq. Michael S. Johnson John Robinson Jr., Esq. Assistant Attorney General Assistant Attorneys General 1594 West North Temple #300 1594 West North Temple Ste 300 Salt Lake City, Utah 841l6 Salt Lake City, Utah 841l6 [Via Email] [Via Email] Attorney for Board of Oil, Gas and Mining Attorney for Division of Oil, Gas and Mining A.M. Averett A-8 Investment Company, LLC Route I P.O. Box 17397 Roosevelt, UT 84066 Holladay, UT 841l7 Adlai C. Peth Afton Brighton c/o Anne Zell 3017 RR 3, Unit 3017 5124 N. 3lst Pl., Unit 516 Roosevelt, UT 84068 Phoenix, AZ85016 Afton Robinson Alpine Springs, LLC 423 Majestic Drive 47225. Bountiful Dr. Ivins, UT 84738 Salt Lake Ciry, UT 84010 A-M, Inc. American Gilsonite Company 7350 Island Queen Drive 29950 S. Bonanza Hwy. Sparks, NV 89436 Bonanza, UT 84004 Anderson Resources Company, LLC Ann Cecilia Anderson P.O. Box 17397 P.O. Box 367 Holladay, UT 84117 Neola, UT 84053 6 April Moss Mantle Ardis Bracken Kettle 2301E.23rd St. 1507 West 4890 South Mission, T){78572 Taylorsville, UT 84123 Arlen Jensen Arturo Gutierrez 3688 V/. 4300 S. 1005 Fairview West Haven, UT 84401 Kingsville, TX 78363 Ballard rüater Improvement Dishict Bank of Oklahoma, N.A. 2381E. 1000 s. st. Agent for Darcy Ann Coale Roosevelt, UT 84066 P.O. Box 3499 Tulsa, OK 74101 The Laura O. Bennett Revocable Living Trust Barbara Houshmand, f/k/a Barbara Sather Bank of Oklahoma, N.4., Trustee 856 Gehrke Road P.O. Box 3499 Port Angeles,WA98362 Tulsa, OK 74101 Barbara Jo Rossberg Beatrice Lundberg Yauney I136 W. Autumn Leaf Lane 2095 Eldon Way Salt Lake Cily,UT 84123 Sandy, UT 84093 Becky Sue Hannigan Bemard B. Larsen P.O. Box 206 Route l, Box 144 Redvale, CO 81431 Roosevelt, UT 840ó6 Bemice Lundberg White Bert Allen Bingham 2795 W.2890 S. 7241 Stamps Circle West Valley, UT 84119 Anchorage, AK 99507 The A.C. Wilkerson Trust, Bertha E. Wilkerson, Betty Moss Trustee 230W. Center St.,#22 c/o Rex J. ìWilkerson Bountiful, UT 84010 5770 West 10400 South Payson, UT 84651 Beverly Soli-Maritan Big West Oil LLC P.O.