34
y^CT~ LOGGED ^ ^ 1/ ABOVE THIS LINE FOR DIVISION USE ONLY NEW MEXICO OIL CONSERVATION DIVISION ff - Engineering Bureau - 1220 South St. Francis Drive, Santa Fe, NM 87505 Cay ADMINISTRATIVE APPLICATION CHECKLIST - -tfj^/ THIS CHECKLIST IS MANDATORY FOR ALL ADMINISTRATIVE APPLICATIONS FOR EXCEPTIONS TO DIVISION RULES AND REGULATIONS WHICH REQUIRE PROCESSING AT THE DIVISION LEVEL IN SANTA FE Application Acronyms: [NSL-Non-Standard Location] [NSP-Non-Standard Proration Unit] [SD-Simultaneous Dedication] [DHC-Downhole Commingling] [CTB-Lease Commingling] [PLC-Pool/Lease Commingling] [PC-Pool Commingling] [OLS - Off-Lease Storage] [OLM-Off-Lease Measurement] [WFX-Waterflood Expansion] [PMX-Pressure Maintenance Expansion] [SWD-Salt Water Disposal] [IPI-lnjection Pressure Increase] [EOR-Qualified Enhanced Oil Recovery Certification] [PPR-Positive Production Response] [1] [2] TYPE OF APPLICATION - Check Those Which Apply for [A] [A] Location - Spacing Unit - Simultaneous Dedication NSL NSP SD Check One Only for [B] or [C] [B] Commingling - Storage - Measurement DHC CTB PLC PC OLS Raptor 12 State Com IH API# 30-015-38971 OLM [C] Injection - Disposal - Pressure Increase - Enhanced Oil Recovery WFX • PMX SWD IPI • EOR PPR [D] Other: Specify NOTIFICATION^REQUIRED TO: - Check Those Which Apply, or • Does Not Apply Working, Royalty or Overriding Royalty Interest Owners [A] [B] [C] [D] [E] [F] U.S. Bureau of Land Management - Commissioner of Public Lands, State Land Office [3] SUBMIT ACCURATE AND COMPLETE INFORMATION REQUIRED TO PROCESS THE TYPE OF APPLICATION INDICATED ABOVE. c 1 [4] CERTIFICATION: I hereby certify that the information submitted with this application for administrative approval is accurate and complete to the best of my knowledge. I also understand that no action will be taken on this application until the required information and notifications are submitted to the Division. Note: Statement must be completed by an individual with managerial and/or supervisory capacity. Netha Aaron Print or Type Name Signature Regulatory Analyst Title Date [email protected] e-mail Address

ABOVE THIS LINE FOR DIVISION USE ONLY NEW MEXICO OIL …ocdimage.emnrd.state.nm.us/imaging/filestore/SantaFe... · 2013. 3. 6. · y^ct~ logged 1/ ^^ above this line for division

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Page 1: ABOVE THIS LINE FOR DIVISION USE ONLY NEW MEXICO OIL …ocdimage.emnrd.state.nm.us/imaging/filestore/SantaFe... · 2013. 3. 6. · y^ct~ logged 1/ ^^ above this line for division

y^CT~ LOGGED ^ ^ 1/

ABOVE THIS LINE FOR DIVISION USE ONLY

NEW MEXICO O I L CONSERVATION DIVISION f f - Engineering Bureau -

1220 South St. Francis Drive, Santa Fe, NM 87505

Cay

ADMINISTRATIVE APPLICATION CHECKLIST - - t f j ^ / THIS CHECKLIST IS MANDATORY FOR ALL ADMINISTRATIVE APPLICATIONS FOR EXCEPTIONS TO DIVISION RULES AND REGULATIONS

WHICH REQUIRE PROCESSING AT THE DIVISION LEVEL IN SANTA FE A p p l i c a t i o n A c r o n y m s :

[NSL-Non-S tandard L o c a t i o n ] [NSP-Non-Standard P ro ra t i on U n i t ] [SD-S imu l taneous D e d i c a t i o n ] [DHC-Downho le C o m m i n g l i n g ] [CTB-Lease C o m m i n g l i n g ] [PLC-Pool /Lease C o m m i n g l i n g ]

[PC-Pool C o m m i n g l i n g ] [OLS - Of f -Lease S t o r a g e ] [OLM-Of f -Lease M e a s u r e m e n t ] [WFX-Wate r f l ood E x p a n s i o n ] [PMX-Pressure M a i n t e n a n c e E x p a n s i o n ]

[SWD-Sal t W a t e r D isposa l ] [ IP I - l n j ec t i on P ressu re I n c r e a s e ] [EOR-Qual i f ied E n h a n c e d Oi l Recove ry C e r t i f i c a t i o n ] [PPR-Pos i t i ve P r o d u c t i o n Response ]

[1]

[2]

TYPE OF APPLICATION - Check Those Which Apply for [A] [A] Location - Spacing Unit - Simultaneous Dedication

• NSL • NSP • SD Check One Only for [B] or [C] [B] Commingling - Storage - Measurement

• DHC • CTB • PLC • PC • OLS

Raptor 12 State Com IH API# 30-015-38971

OLM

[C] Injection - Disposal - Pressure Increase - Enhanced Oil Recovery • WFX • PMX • SWD • IPI • EOR • PPR

[D] Other: Specify

NOTIFICATION^REQUIRED TO: - Check Those Which Apply, or • Does Not Apply Working, Royalty or Overriding Royalty Interest Owners [A]

[B] •

[C] •

[D] •

[E] •

[F] •

U.S. Bureau of Land Management - Commissioner of Public Lands, State Land Office

[3] SUBMIT ACCURATE AND COMPLETE INFORMATION REQUIRED TO PROCESS THE TYPE OF APPLICATION INDICATED ABOVE. c 1

[4] CERTIFICATION: I hereby certify that the information submitted with this application for administrative approval is accurate and complete to the best of my knowledge. I also understand that no action will be taken on this application until the required information and notifications are submitted to the Division.

Note: Statement must be completed by an individual with managerial and/or supervisory capacity.

Netha Aaron Print or Type Name Signature

Regulatory Analyst Title Date

[email protected] e-mail Address

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I

^concHO

November 14, 2011

COG Operating, LLC Netha Aaron 550 W. Texas Ave., Suite 100 Midland, TX 79701

New Mexico Oil Conservation Division Richard Ezeanyim 1220 S St. Francis Drive Santa Fe, New Mexico 87505

Dear Mr. Ezeanyim,

COG Operating LLC respectfully requests approval for Off-Lease Measurement for the gas, on the following well:

This well will be producing from the Ishee Lake, Abo (Oil - 97627) Pool. The Off-Lease Measurement facility is located at our Black Hawk 11 Fed Com 1H battery, located at Sec 11,>J T16S, R28E, 430' FSL and 330' FWL. The dcp Midstream gas sales meter is located at this battery, meter #727906-00.

The Raptor 12 State Com 1H has a Communitization Agreement submitted for approval, but it has not been approved yet. If this agreement is approved it will comprise 160.00-acre well spacing unit. It involves 80 acres of State land in oil and gas lease VO-8390 and 80.00 acres of State land lease VO-8391.

I have attached proof of notice to all of our working interest owners, a diagram of our battery facilities, and a map with lease boundaries showing the well and facility locations.

Please contact me at 432-818-2319 should you have any questions.

Raptor 12 State Com 1H Eddy County, NM

API # 30-015-38971 Surface: 400 FSL & 330 FWL Sec 12, T16S, R28E, Unit M

(ML

Sincerely

COG Operating, LLC Netha Aaron Regulatory Analyst o

Fasken Center, Tower II 550 West Texas Avenue, Suite 100 Midland, Texas 79701 PHONE 432.683.7443 FAX 432.683.7441

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10" GAS PIPELINE FROM BLACKHAWK "11" §1 BATTERY TO RAPTOR "12" #1 WELL

COG OPERATING LLC CENTERLINE SURVEY OF A PIPELINE CROSSING

SECTION 11, TOWNSHIP 16 SOUTH, RANGE 28 EAST, N.M.P.M. EDDY COUNTY, STATE OF NEW MEXICO

AUGUST 17, 2011

2 1 COMPUTED

HC J

VI \ 12

DESCRIPTION A STRIP OF LAND 30 FEET WIDE CROSSING STATE OF NEW MEXICO LAND AND BUREAU OF LAND MANAGEMENT LAND IN SECTION 1 1 . TOWNSHIP 16 SOUTH. RANGE 28 EAST, N.M.P.M.. EDDY COUNTY. STATE OF NEW MEXICO AND BEING 15 FEET EACH SIDE OF THE FOLLOWING DESCRIBED CENTERLINE SURVEY:

BEGINNING AT A POINT WITHIN THE SW/4 SW/4 OF SAID SECTION 11, TOWNSHIP 16 SOUIH, RANGE 28 EAST, N.M.P.M.. WHENCE THE SOUTHWEST CORNER OF SAID SECTION 11 . TOWNSHIP 16 SOUTH, RANGE 28 EAST, N.M.P.M. BEARS S10'02'36"W, A DISTANCE OF 534.84 FEET; THENCE N1T20 '42"E A DISTANCE OF 130.81 FEET TO AN ANGLE POINT OF THE LINE HERON DESCRIBED; THENCE N65"23'15'E A DISTANCE- OF 2843.56 FEET TO AN ANGLE POINT OF THE LINE HEREIN DESCRIBED; THENCE S33-31'01"E A DISTANCE OF 753.18 FEET TO AN ANCLE POINT OF THE LINE HEREIN DESCRIBED: THENCE S64'47 , 49"E A DISTANCE OF 2311.19 FEET THE TERMINUS OF THIS CENTERLINE SURVEY, WHENCE THE SOUTHEAST CORNER OF SAID SECTION- 11 , TOWNSHIP 16 SOUTH, RANGE 28 EAST, N.M.P.M. BEARS S00'26'26"W. A DISTANCE OF 225.42 FEET;

SAID STRIP OF LAND BEING 6038.74 FEET OR 365.98 RODS IN LENGTH. CONTAINING 4.159 ACRES MORE OR LESS AND BEINC ALLOCATED BY FORTIES AS FOLLOWS:

SW/4 SW/4 1441.83 LF . SW/4 SW/4 325.59 L.F. NE/4 SW/4 1112.60 L.F. NW/4 SE/4 . 696.28 L.F. SW/4 S E / 4 1028.41 L.F. SE /4 SE/4 1434.03 L.F.

87.38 RODS 19.73 RODS

67.43 RODS 42-20 RODS 62.33 RODS 86.91. RODS

0.993 ACRES STATE 0.224 ACRES BLM 0.766 ACRES 0.480 ACRES 0.708 ACRES 0.9BB ACRES

BLM STATE STATE STATE

CENERAL NOTES 1. ) THE INTENT OF THIS ROUTE SURVEY IS TO ACQUIRE AN EASEMENT.

2. ) BASIS OF BEARING IS NMSP EAST MODIFIED TO SURFACE COORDINATES.

.SURVEY NO. 542 1-4

MADRON SURVEYING,

SURVEYOR CERTIFICATE

I, F1UM0N F.,JARAMILLO, A NEW MEXICO PROFESSIONAL SURVEYOR NO. 12797, HEREBY CERTJfV-THAT i'l jiAV&XONDUCTED AND AM RESPONSIBLE FOR THIS SURVEY. THAT THIS^.iURVEYl'lS ^ W A b ' / f ORRECT TO THE BEST OF MY KNOWLEDGE AND 8ELIEF. ANplJHAT ThiS SONVET>V<D PLAT MEET THE MINIMUM STANDARDS FOR LAND suRvrr|NG>ii<-'t^E;;st(5iE^F ' N D J - M E X I C O .

•:il5^'TNESS'WHri5<>Fi !-?HI5?C'ESrinCATE IS EXECUTED AT CARLSBAD,

NEW ^MEXICO, TH)3 § 3 S a Z / D A Y - 4 f AOGUST 2011

" 'MADRON SURVEYING. INC. r 301 SOUTH CANAL '$:.\RI.SB/J>, NEW MEXICO 66220

F'hone (57{.) 7CIF.-97&?

INC. I s BAD, NEW MEXICO

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Page 6: ABOVE THIS LINE FOR DIVISION USE ONLY NEW MEXICO OIL …ocdimage.emnrd.state.nm.us/imaging/filestore/SantaFe... · 2013. 3. 6. · y^ct~ logged 1/ ^^ above this line for division

DISTRICT I 1625 N.FRENCH DR., HOBBS, NM 88240

DISTRICT I I 1301 W. GRAND AVENUE. ARTESIA. NM 18210

DISTRICT HI

1000 Rio Brazos Rd, Aztec, NM 87410

DISTRICT IV IMP S. ST. FRANCIS tm,SANTA FE.NM 87105

State of New Mexico Energy, Minerals and Natural Resources Department

O I L C O N S E R V A T I O N D I V I S I O N 1220 SOUTH ST. FRANCIS DR. Santa Fe, New Mexico 87505

WELL LOCATION AND ACREAGE DEDICATION PLAT

Form C-102 Revised October 12,2005

Scbmillo Appropriate L>is*ru* Office Sale Leaae • 4 Copies Fee Lew 3 Copies

• AMENDED REPORT

30 API Number

0 1 5 - 3 8 2 5 0 Pool Code

9 7 1 0 2 Pool Kmc

CROW FLATS; WOLFCAMP Property Ofe

37327 BLACKHAWK 11 FEDERAL COM WeU Number

1H OOTID No.

2 2 9 1 3 7

Opefftor Nunc

COG OPERATING, LLC BfevUKK

3572' Surface Location

ULorlot No.

M SectJoo

11

Towoship

16-S 28-E Lot Eds Foct fioib the

430 F*jroVSoodi line

SOUTH Feet fioflt Ac

330 EastfWett lew

WEST Count/

EDDY

Bottom Hole Location If Different From Surface

ULorlot No.

P Section

11 Township

16-S Rttge

28-E Lat Idn Foct fiom &fi

4 2 8

NoA/SoaHiltne

SOUTH Foetfiocn die

6 8 6

Ent/Weslme

EAST County

EDDY Dodkattod Acres

160 ,

JotatorlofiD CooioliitfnnCodc | Oder No.

NO ALLOWABLE WILL BE ASSIGNED TO THIS COMPLETION UNTIL ALL INTERESTS HAVE BEEN CONSOLIDATED OR A NON-STANDARD UNIT HAS BEEN APPROVED BY THE DIVISION

BEI&iL 3574 +' 3573.5'

GEODETIC COORDINATES NAD 27 NME

Y= 702805 5 N X-555 If 5./ E

LAT. • 32.931959' N LONG.--W4.153699' W

BOTTOM HOLE LOCATION Y= 702 706 9 N X=559663.\ E

3573.1' 3568.0' • •«• • • • • • '•~i~a • • • • • a - n r i • n

OPERATOR CERTIFICATION I hereby certify (rial lbe miotasliioo bereia is

froe tod complete to Ste best of my knowledge md belief mritto Ihis orgymizstianehber owns & worktog interest or unfessccf nuoerau* iobstcst in tbe land includmg thc propoxd bottom bale location or bts c right to drill this veil U this location pursuant to * contract with an owner of such mineral or working interest, orto » voluntary poolrnfi tgxtztaw or ieompulsciry pMhiig order hcicti>fae catered by the division.

_ J & / 2 . 1 / . 1 1 Dale

Chasity Jackson Printed Name

H0R1. DIST.- 4550.3'

SURVEYOR CERTIFICATION I hereby notify mat tbe well location shown on

dm plat tns plotted from field Botes of actual anveysta^bytixorimderniystnpcrvisian, and that ie same is true tad comet to tbe best of toy betiel

Sigrraturt&Sjeakg^o ) ; cci lWasgoaal Surveyor / / £ |

Certificate No. GARYG EIDSON i2«i RONALD J. EIDSON 3239

/

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DISTRICT I

1625 N. FRENCH DR., HOBBS, NM 88240

DISTRICT I I

1301 W GRAND AVENUE, ARTESIA, NM 88210

DISTRICT I I I

1000 RIO BRAZOS RD., AZTEC, NM 87410

DISTRICT TV 11885 S. ST. FRANCIS DR., SANTA FE, NM 87505

State of New Mexico Energy, Minerals & Natural Resources Department

OIL CONSERVATION DIVISION 1220 South St. Francis Dr.

Santa Fe, New Mexico 87505

Form C-102 Revised July 16,2010-Submit to Appropriate

. District Office

• AMENDED REPORT

WELL LOCATION AND ACREAGE DEDICATION PLAT API Number Pool Code

30-015-38971 97627 Pool Name

ISHEE LAKE; ABO Property Code

309513 Property Name

RAPTOR 12 STATE COM Well Number

IH OGRID No.

229137 Operator Name

COG OPERATING, L L C Elevation

3533' Surface Location

UL or lot No.

M Section

12 Township

16-S Range

28-E LotIdn Feet from the

400 North/South line

SOUTH Feet from the

200 EastAVest Ime

WEST County

EDDY

Bottom Hole Location I f Different From Surface

UL or lot No.

P Section

12 Township

16-S . Range

28-E Lot Idn Feet from the

400 North/South Ime

SOUTH Feet from the

330 EastAVest line

EAST County

EDDY Dedicated Acres

160 Joint or Infill Consolidation Code Order No.

NO ALLOWABLE WILL BE ASSIGNED TO THIS COMPLETION UNTIL ALL INTERESTS HAVE BEEN CONSOLIDATED OR A NON-STANDARD UNIT HAS BEEN APPROVED BY THE DIVISION

Lir7 <P~-

RECEIVED

NMOCDARJES1A]

GEODETIC COORDINATES NAD 27 NME

SURFACE LOCATION

Y=702772.6 N

X= 560193.5 E

LAT.=32.931843' N . LONG. = 104.137147' W _

BOTTOM HOLE LOCATION Y= 702670.9 N X=564890.8 E

PENETRATION POINT ' Y=702762.7 N

X=560653 4 E

r v

_GR±D_ AZ=9J2 ±27"_ -HOBi^-QISl* -•'1100 6^

-w

B.H -< •

330'

OPERATOR CERTIFICATION 1 iereby certify that the infonnation herein is true and complete to tbe best of my knowledge and belief, and thai this organization either owns a working interest or unleased mweral interest in the land including tbe proposed bottom bole location or bas a right to drill this well at this location pursuant to a contract, with an owner ofsuch mineral or working interest, or toalvoluntary pooling agreement or a compulsory pooling order heretofore entered by the division.

j ^ ^ O b ^ Z/6/2011 Kcfbyri Odom

Date

Printed Name

[email protected] E-mail Address

S U R V E Y O R C E R T I F I C A T I O N

J hereby certify that tbe well location showa oa this plat was plotted mom Geld notes of actual surveys made by me or under my supervision, and that the same is true and correct to the best of my belief.

F E B R U A R Y 20 201,1

Date of Survey ^ ^ P ^ - ^ ^-Signature

- • - * . ^ v y \ & SeS^ftofessJoqaf Suweyors %

HI M ° ) s m. CJ f f i

JWSC WO.: 11 11.1475

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NM State Land Office Oil, Gas, & Minerals Division

STATE/STATE OR STATE/FEE

Revised March 2007

COMMUNITIZATION AGREEMENT ONLINE Version

KNOW ALL MEN BY THESE PRESENTS:

STATE OF NEW MEXICO ) COUNTY OF LEA )

SS)

THAT THIS AGREEMENT [which is NOT to be used for carbon dioxide or helium] is entered into as of July 28, 2011, by and between the parties subscribing, ratifying or consenting hereto, such parties hereinafter being referred to as "Parties hereto";

WHEREAS, the Commissioner of Public Lands of the State of New Mexico is authorized by the Legislature, as set forth in Sec. 19-10-53, New Mexico Statutes, Annotated, 1978, in the interest of conservation of oil & gas and the prevention of waste to consent to and approve the development or operation of State lands under agreements made by lessees of oil & gas leases thereon, jointly or severally with other oil & gas lessees of State Lands, or oil and gas lessees or mineral owners of privately owned or fee lands, for the purpose of pooling or communitizing such lands to form a proration unit or portion thereof, or well-spacing unit, pursuant to any order, rule or regulation ofthe New Mexico Oil Conservation Division of the New Mexico Energy, Minerals and Natural Resources Department where such agreement provides for the allocation of the production of oil or gas from such pools or communitized area on an acreage or other basis found by the Commissioner to be fair and equitable.

WHEREAS, the parties hereto, own working, royalty, or other leasehold interests or operating rights under the oil and gas leases and lands subject to this agreement, which ieases are more particularly described in the schedule attached hereto, marked Exhibit "A" and made a part hereof, for all purposes; and

WHEREAS, said leases, insofar as they cover the L. Abo/Wolfcamp formation (hereinafter referred to as "said formation") in and under the land hereinafter described cannot be independently developed and operated in conformity with the well spacing program established for such formation in and under said lands; and

WHEREAS, the parties hereto desire to communitize and pool their respective interests in said leases subject to this agreement for the purpose of developing, operating and producing hydrocarbons in the said formation in and under the land hereinafter described subject to the terms hereof.

NOW THEREFORE, in consideration of the premises and the mutual advantages to the parties hereto, it is mutually covenanted and agreed by and between the undersigned as follows:

ONLINE version December 2007

State/state State/Pee 1

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1. The lands covered by this agreement (hereinafter referred to as the "communitized area") are described as follows:

Township 16 South. Range 28 East. NMPM Section 12: S2S2 Eddy County, New Mexico

Containing 160.00 acres, more or less. It is the judgment of the parties hereto that the communitization, poo ling and consolidation of the aforesaid land into a single unit for the development and production of hydrocarbons from the said formation in and under said land is necessary and advisable in order to properly develop and produce the hydrocarbons in the said formation beneath the said land in accordance with the well spacing rules of the Oil Conservation Division of the New Mexico Energy, Minerals and Natural Resources Department, and in order to promote the conservation of the hydrocarbons in and that may be produced from said formation in and under said lands, and would be in the public interest;

AND, for the purposes aforesaid, the parties hereto do hereby communitize for proration or spacing purposes only the leases described in Exhibit "A" hereto insofar as they cover hydrocarbons within and that may be produced from the said formation (hereinafter referred to as "Communitized Substances") beneath the above-described land, into a single communitization, for the development, production, operation and conservation of the hydrocarbons in said formation beneath said lands.

Attached hereto and made a part of this agreement for all purposes, is Exhibit A showing the acreage, and ownership (Lessees of Record) of all leases within the communitized area.

2. The communitized area shall be developed and operated as an entirety with the understanding and agreement between the parties hereto that all communitized substances produced therefrom shall be allocated among the leases described in Exhibit "A" hereto in the proportion that the number of surface acres covered by each of such leases and included within the communitized area bears to the total number of acres contained in the communitized area.

3. Subject to Paragraph 4, the royalties payable on communitized substances allocated to the individual leases and the rentals provided for in said leases shall be deterrnined and paid in the manner and on the basis prescribed in each of said leases. Except as provided for under the terms and provisions of the leases described in Exhibit "A" hereto or as herein provided to the contrary, the payment of rentals under the terms of said leases shall not be affected by this agreement; and except as herein modified and changed or heretofore amended, the oil and gas leases subject to this agreement shall remain in full force and effect as originally issued and amended.

4. The State of New Mexico hereafter is entitled to the right to take in kind its share for the communitized substances allocated to such tract, and Operator shall make deliveries of such royalty share taken in kind in conformity with applicable contracts, laws, and regulations.

ONLINE version December 2007

State/State State/Fee 2

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5. There shall be no obligation upon the parties hereto to offset any well or wells situated on the tracts of land comprising the communitized area, nor shall the Operator be required to measure separately the communitized substances by reason of the diverse ownership of the separate tracts of land comprising the said communitized area; provided, however, that the parties hereto shall not be released from their obligation to protect the communitized area from drainage of communitized substances by wells which may be drilled within offset distance (as that term is defined) of the communitized area.

6. The commencement, completion, and continued operation or production ofa well or wells for communitized substances on the communitized area shall be considered as the commencement, completion, continued operation or production as to each of the leases described in Exhibit "A" hereto.

7. The production of communitized substances and disposal thereof shall be in conformity with the allocations, allotments, and quotas made or fixed by any duly authorized person or regulatory body under applicable Federal or State laws. This agreement shall be subject to all applicable Federal and State laws, executive orders, rules and regulations affecting the performance of the provisions hereof, and no party hereto shall suffer a forfeiture or be liable in damages for failure to comply with any ofthe provisions of this agreement if compliance is prevented by or if such failure results from compliance with any such laws, orders, rules and regulations.

8. COG Operating LLC shall be the Operator of said communitized area and all matters of operation shall be deterrnined and performed by COG Operating LLC.

9. This agreement shall be effective as of the date hereinabove written upon execution by the necessary parties, notwithstanding the date of execution, and upon approval by the Commissioner of Public Lands, shall remain in full force and effect for a period of one year from the date hereof and as long thereafter as communitized substances are produced from the communitized area in paying quantities; provided, that this agreement shall not expire if there is a well capable of producing gas in paying quantities located upon some part of the communitized area, if such a well is shut-in due to the inability of the operator to obtain a pipeline connection or to market the gas therefrom, and if either: (a) a shut-in royalty has been timely and properly paid pursuant to the provisions of one of the State of New Mexico oil and gas leases covering lands subject to this agreement so as to prevent the expiration ofsuch lease; or (b) each ofthe State of New Mexico oil and gas leases covering lands subject to this agreement is in its primary term (if a five-year lease), or in its primary or secondary term (if a ten-year lease), or is held by production from another well. Provided further, however, that prior to production in paying quantities from the communitized area, and upon fulfillment of all requirements of the Commissioner of Public Lands with respect to any dry hole or abandoned well drilled upon the communitized area, this Agreement may be terminated at any time by mutual agreement of the parties hereto. This agreement shall not terminate upon cessation of production of communitized substances if, within sixty (60) days thereafter, reworking or drilling operations on the communitized area are commenced and are thereafter conducted with reasonable diligence. As to lands owned by the State of New Mexico, written notice of intention to commence such operations shall be filed with the Commissioner within thirty (30) days after the cessation of such production, and a report of the status

ONLINE version December 2007

State/State State/Fee 3

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of such operations shall be made by the Operator to the Corrarrissioner every thirty (30) days, and the cessation of such operations for more than twenty (20) consecutive days shall be considered as an abandonment of such operations as to any lease from the State of New Mexico included in this agreement.

10. Operator will furnish the Oil Conservation Division of the New Mexico Energy, Minerals and Natural Resources Department, and the Commissioner of Public Lands of the State of New Mexico, with any and all reports, statements, notices and well logs and records which may be required under the laws and regulations of the State of New Mexico.

11. It is agreed between the parties hereto that the Commissioner of Public Lands, or his duly authorized representatives, shall have the right of supervision over all operations under the communitized area to the same extent and degree as provided in the oil and gas leases described in Exhibit "A" hereto and in the applicable oil and gas regulations of the State of New Mexico.

12. If any order of the Oil Conservation Division of the New Mexico Energy Minerals and Natural Resources Department, upon which this agreement is predicated or based is in anyway changed or modified, then in such event said agreement is likewise modified to conform thereto.

13. This agreement may be executed in any number of counterparts, no one of which needs to be executed by all parties, or may be ratified or consented to by separate instruments, in writing, specifically referring hereto, and shall be binding upon all parties who have executed such a counterpart, ratification or consent hereto with the same force and effect as if all parties had signed the same document.

14. This agreement shall be binding upon the parties hereto and shall extend to and be binding upon their respective heirs, executors, administrators, successors and assigns.

IN WITNESS WHEREOF, the parties hereto have executed this agreement as of the day and year first above written.

OPERATOR & LESSEE OF RECORD:

COG OPERATING LLC Successor in Interest to COG OU & Gas, L.P.

ONLINE version December 2 007

State/State SCate/Fee 4

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LESSEE OF RECORD:

CROWN OIL PARTNERS ffl, LP

Name: Title:

WORKING INTEREST OWNERS:

MANZANO ENERGY PARTNERS, LP

By:. Kenneth Barbe, Jr. Manager

HANLEY PETROLEUM INC.

By:_ Brett K. Bracken Vice President/General Manager

JARVIS J. SLADE

TBO OIL & GAS, LLC

By:_ Brett K. Bracken President / Treasurer

ONLINE version December 2007

state/SCate State/Fee

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H 6 HOLDINGS

By:____ Janet Hanson Manager

LHAH PROPERTIES, LLC

By: W. L. Hanley, Jr. Manager

BLACK CROWN ENERGY PARTNERS LP

By: Michael E. Black President

CRUMP ENERGY PARTNERS LP

By:_ William Crump Vice President

ONLINE version December 2007

state/state State/Fee

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ACKNOWLEDGEMENTS

STATE OF TEXAS

COUNTY OF MIDLAND

This instrument was acknowledged before me on ^J^jh^jt. -.,1s r*\ „*i A ;~ r:™* t~>r~\n r \ «.: T M - I

1 _ , 2011, by Gregory K. Daggett, Attorney-in-Fact, of COG Operating, LLC, a Delaware limited liability company, on behalf of said company.

TRACI CONNER 0MMISSH3N EXP August 29.2014

i T w ? | MY COMMISSION EXPIRES Auaust29 2014

Notary Public in and for the State of Texas

STATE OF TEXAS

COUNTY OF MIDLAND

This instrument was acknowledged before me on , as

_, 2011, by of Crown Oil Partners II I ,

LP, a limited partnership, on behalf of same.

Notary Public in and for the State of Texas

STATE OF NEW MEXICO

COUNTY OF CHAVES

This instrument was acknowledged before me on , 2011, by Kenneth Barbe, Jr., as Manager of Manzano Energy Partners, LP, a Delaware limited liability company, on behalf of same.

Notary Public in and for the State of Texas

ONLINE version December 2007

State/State State/Fee 7

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STATE OF TEXAS

COUNTY OF MIDLAND

This instrument was acknowledged before me on • , 2011, by Brett K. Bracken, as Vice President/General Manager of Hanley Petroleum Inc., a Texas corporation, on behalf of same.

Notary Public in and for the State of Texas

STATE OF NEW YORK

COUNTY OF NEW YORK

This instrument was acknowledged before me on ' • , 2011, by Jarvis J. Slade.

Notary Public in and for the State of Texas

STATE OF TEXAS

COUNTY OF MIDLAND

This instrument was acknowledged before me on • , 2011, by Brett K. Bracken, as President/Treasurer of TBO Oil & Gas LLC, a Texas limited liability company, on behalf of same.

Notary Public in and for the State of Texas

ONLINE version December 2007

State/State State/Fee 8

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STATE OF TEXAS

COUNTY OF MIDLAND

This instrument was acknowledged before me on ' , 2011, by Janet Hanson, as Manager of H6 Holdings, LLC, a limited liability company, on behalf of same.

Notary Public in and for the State of Texas

STATE OF TEXAS

COUNTY OF MIDLAND

This instrument was acknowledged before me on , 2011, by W. L. Hanley, Jr. as Manager of LHAH Properties LLC, a Delaware limited liability company, on behalf of same.

Notary Public in and for the State of Texas

STATE OF TEXAS

COUNTY OF MIDLAND

This instrument was acknowledged before me on , 2011, by Michael E. Black, as President of Black Crown Energy Partners LP, a " limited partnership, on behalf of same.

Notary Public in and for the State of Texas

ONLINE version December 2007

state/Stace State/Fee 9

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STATE OF TEXAS

COUNTY OF MIDLAND

This instrument was acknowledged before me on , 2011, by William Crump, as Vice President of Crump Energy Partners LLC, a limited liability company, on behalf of same.

Notary Public in and for the State of Texas

ONLINE version December 2007

State/State State/Fee

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State/State or State/Fee Cornmunitization

EXHIBIT A

Attached to and made a part of that Communitization Agreement dated July 28,2011, covering S2S2

of Section 12, Township 16 South, Range 28 East, NMPM, Eddy County, New Mexico

OPERATOR of Communitized Area: COG Operating LLC

DESCRIPTION OF LEASES COMMITTED:

TRACT NO. 1

Serial No. of Lease: V0-8390 Date of Lease: December 1, 2008 Lessor: State of New Mexico acting by and through its Commissioner of Public

Lands Lessee of Record: COG Operating LLC Description of Lands Committed:

Insofar and only insofar as lease covers Township 16 South. Range 28 East. NMPM Section 12: S2SE Eddy County, New Mexico

No. of Acres: 80.00 Royalty Rate: 1 /6th Name and Percent of ORRI Owners: None

Name and Percent of WI Owners: COG Oil & Gas LLC . 100.00000000%

TOTAL 100.00000000%

ONLINE version December 2007

State/State State/Fee 11

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TRACT NQ. 2 Serial No. of Lease: V0-8391 Date of Lease: December 1,2008 Lessor: State of New Mexico acting by and through its Commissioner of Public

Lands Lessee of Record: Crown Oil Partners III, LP Description of Lands Committed :

Insofar and only insofar as lease covers Township 16 South. Ranee 28 East. NMPM Section 12: S2SE Eddy County, New Mexico

No. of Acres: 80.00 Royalty Rate: l/6th Name and Percent of WI Owners:

Hanley Petroleum Inc. 18.75%* Jarvis J. Slade 1.25%* TBO Oil & Gas, LLC 1.25 %* H 6 Holdings 1.25 %* LHAH Properties, LLC 2.50 %* Manzano Energy Partners, LLC 50.00%** Black Crown Energy Partners, LP 12.50% Crump Energy Partners, LLC 12.50%

100.00%

Name and Percent of ORRI Owners: *The Hanley Petroleum Inc., et all working interest above bears a .00625 (.25 x.025) ORRI; and a .0625 (.25 x .25) reversionary interest in the operating rights at "payout". Each such interests owned equally by the following parties:

Black Crown Energy Partners, LP Crump Energy Partners, LLC

**The Manzano Energy Partners, LLC working interest above bears a .02916667 (.50 x.05833333) ORRI; and a .075 (.50 x .15) reversionary interest in the operating rights at "payout". Each such interests owned equally by the following parties:

Black Crown Energy Partners, LP Crump Energy Partners, LLC

ONLINE version December 2007

State/state State/Fee

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RECAPITULATION

Tract number Number of Acres Committed

No. 1 80.00

No.2 80.00

160.00

Percentage of Interest In Communitized Area

50.0000%

50.0000%

100.0000%

ONLINE version December 2007

State/State State/Fee

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October 26, 2011

Manzano, LLC P.O. Box 2107 Roswell, NM 88202-2107

Certified Mail Article Number: 91 7199 9991 7030 4014 5136

Re: Amended Request for Off Lease Measurement and Surface Commingle ofthe gas

Dear Sir or Madam,

This letter is an amendment to the previous letter you received dated August 12, 2011. The request for Surface Commingling of the gas from the Raptor 12 State Com 1H and the Blackhawk 11 Fed Com #1 has been cancelled. We will be requesting Off Lease Measurement for only the gas from the Raptor 12 State Com 1H.

This letter will serve as notice under Rule 104.F (3) that COG Operating LLC has requested administrative approval from the Oil Conservation Division in Santa Fe, NM for Off Lease Measurement for the gas only for the following well:

Raptor 12 State Com 1H Eddy County, NM

API#: 30-015-38971 Communitization Agreement #: Pending

Surface: 400 FSL & 200 FWL Sec 12, T16S, R28E, Unit Wl

The gas sales meter will be located on COG Operating, LLC property, Blackhawk 11 Federal Com #1, Sec 11, T16S, R28E,.Unit M. DCP Midstream meter #727906-00. This well will have its own gas sales meter.

Should your company have any objection, it must be filed in writing within.twenty(20) days from the date of this notice. The Division Director may approve the Off Lease Measurement and Surface Commingle of the gas if no objection has been made within the 20 days after the application has been received.

COG Operating LLC Netha Aaron Regulatory Analyst

Enclosures: Letter dated August 12, 2011

Fasken Center, Tower II 550 West Texas Avenue, Suite 100 Midland, Texas 79701 PHONE 432.683.7443 FAX 432.683.7441

Sincerely,

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August 12, 2011

Manzano, LLC P.O. Box 2107 Roswell, NM 88202-2107

Certified Mail Article Number: 91 7199 9991 7030 4014 5051

Re: Request for Off Lease Measurement and Surface Commingle of only the gas

Dear Sir or Madam,

This letter will serve as notice under Rule 104.F (3) that COG Operating LLC has requested administrative approval from the Oil Conservation Division in Santa Fe, NM for Off Lease Measurement and Surface Commingle for the gas only for the following wells:

Surface: 430 FSL & 330 FWL Sec 11, T16S, R28E, Unit M

The gas sales meter will be located on COG Operating, LLC property, Blackhawk 11 Federal Com #1, Sec 11, T16S, R28E, Unit M.

It is uneconomical for us to lay a 10,200' gas sales line to the main dcp gathering line at this time. We will allocate the gas using a check meter that will be set on the Raptor 12 State Com 1H gas line before it enters the Blackhawk 11 Federal Com #1 dcp sales meter. Then we will commingle the gas into the one dcp sales meter.

Should your company have any objection, it must be filed in writing within twenty(20) days from the date of this notice. The Division Director may approve the Off Lease Measurement and Surface Commingle of the gas if no objection has been made within the 20 days after the application has been received.

Raptor 12 State Com 1H Eddy County, NM

API#: 30-015-38971 Communitization Agreement #: Pending

Surface: 400 FSL & 200 FWL Sec 12, T16S, R28E, Unit M

Blackhawk 11 Federal Com #1 Eddy County, NM

API#: 30-015-38250 Communitization Agreement #: NM-126268

Sincerely,

COG Operating LLC Netha Aaron Regulatory Analyst

Fasken Center, Tower II 550 West Texas Avenue, Suite 100 Midland, Texas 79701 PHONE 432.683.7443 FAX 432.683.7441

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SENDER: COMPLETE THIS SECTION COMPLETE THIS SECTION ON DELIVERY

Complete items 1, 2, and 3. Also complete item 4 if Restricted Delivery is desired. Print your name and address on the reverse so that we can return the card tp you. Attach this card to the back of the mailpiece, or on the front if space permits.

1. Article Addressed to:

Manzano, LLC P.O. Box 2107 Roswell, NM 88202-2107

A. Signature

X • Agent I • Addressee I

B. Received by (Printed Name) C. Date of Delivery

D. Is delivery address different from item 1 ? • Yes If YES, enter delivery address below: • No

3. Service Type ^licertified Mail O Registered • Insured Mail

P Express Mail • Return Receipt for Merchandise • C.O.D.

4. Restricted Delivery? (Extra Fee) • Yes

! 2. Article Number (Transfer from service label) 7 m 1^1 7D3D 4014 513b

PS Form 3 8 1 1 , February 2004 Domestic Return Receipt 102595-02-M-1540;

SENDER: COMPLETE THIS SECTION

• Complete items 1,2, arid 3. Also complete item 4 if.Restricted Delivery is desired

• Print your name and address on the reverse I so that we can return the card to you j • Attach this card to the back of the mailpiece j or on the front if space permits.

j 1. Article Addressed to:

: Manzano, LLC i P.O. Box 2107 Roswell, NM]88202-2107

COMPLETE THIS SECTION ON DELIVERY

3. Service Type '^Certified Mail • Express Mail " • Registered • Return Receipt for. Merchandise • Insured Mail • C.O.D.

4. Restricted Delivery? (Extra Fee) • Yes

Package ID:9171999991703040145136 Electronic Certified Destination ZIP Code: 88202 First Class Letter

Confirmation Customer Reference:

Services Recipient: PBP Account #: 41592288 Address: Serial #: 1364097

OCT 26 2011 1:02 PM

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^concHO October 26, 2011

Black Crown Energy Partners, LP 303 Veterans Airpark Lane, Suite 6101 Midland, TX 79705

Certified Mail Article Number: 91 7199 9991 7030 4014 5129

Re: Amended Request for Off Lease Measurement and Surface Commingle of the gas

Dear Sir or Madam,

This letter is an amendment to the previous letter you received dated August 12, 2011. The request for Surface Commingling of the gas from the Raptor 12 State Com 1H and the Blackhawk 11 Fed Com #1 has been cancelled. We will be requesting Off Lease Measurement for only the gas from the Raptor 12 State Com 1H.

This letter will serve as notice under Rule 104.F (3) that COG Operating LLC has requested administrative approval from the Oil Conservation Division in Santa Fe, NM for Off Lease Measurement for the gas only for the following well:

Raptor 12 State Com 1H Eddy County, NM

API#: 30-015-38971 Communitization Agreement #: Pending

Surface: 400 FSL & 200 FWL Sec 12, T16S, R28E, Unit M

The gas sales meter will be located on COG Operating, LLC property, Blackhawk 11 Federal Com #1, Sec 11, T16S, R28E, Unit M. DCP Midstream meter #727906-00. This well will have its own gas sales meter.

Should your company have any objection, it must be filed in writing within twenty(20) days from the date of this notice. The Division Director may approve the Off Lease Measurement and Surface Commingle of the gas if no objection has been made within the 20 days after the application has been received.

COG Operating LLC Netha Aaron Regulatory Analyst

Enclosures: Letter dated August 12, 2011

Fasken Center, Tower II 550 West Texas Avenue, Suite 100 Midland, Texas 79701 PHONE 432.683.7443 FAX 432.683.7441

Sincerely,

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August 12, 2011

Black Crown Energy Partners, LP 303 Veterans Airpark Lane, Suite 6101 Midland, TX 79705

Certified Mail Article Number: 91 7199 9991 7030 4014 5068

Re: Request for Off Lease Measurement and Surface Commingle of only the gas

Dear Sir or Madam,

This letter will serve as notice under Rule 104.F (3) that COG Operating LLC has requested administrative approval from the Oil Conservation Division in Santa Fe, NM for Off Lease Measurement and Surface Commingle for the gas only for the following wells:

Surface: 430 FSL & 330 FWL Sec 11, T16S, R28E, Unit Wl

The gas sales meter will be located on COG Operating, LLC property, Blackhawk 11 Federal Com #1, Sec 11, T16S, R28E, Unit M.

It is uneconomical for us to lay a 10,200' gas sales line to the main dcp gathering line at this time. We will allocate the gas using a check meter that will be set on the Raptor 12 State Com 1H gas line before it enters the Blackhawk 11 Federal Com #1 dcp sales meter. Then we will commingle the gas into the one dcp sales meter.

Should your company have any objection, it must be filed in writing within twenty(20) days from the date of this notice. The Division Director may approve the Off Lease Measurement and Surface Commingle ofthe gas if no objection has been made within the 20 days after the application has been received.

Raptor 12 State Com 1H Eddy County, NM

API#: 30-015-38971 Communitization Agreement*: Pending

Surface: 400 FSL & 200 FWL Sec 12, T16S, R28E, Unit M

Blackhawk 11 Federal Com #1 Eddy County, NM

API#: 30-015-38250 Communitization Agreement*: NM-126268

Sincerely,

COG Operating LLC Netha Aaron Regulatory Analyst

Fasken Center, Tower II 550 West Texas Avenue, Suite 100 Midland, Texas 79701 PHONE 432.683.7443 FAX 432.683.7441

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SENDER: COMPLETE THIS SECTION COMPLETE THIS SECTION ON DELIVERY

• Complete items 1,2, and 3. Also complete item 4 if Restricted Delivery is desired.

H Print your name and address on the reverse so that w e can return the card to you.

• Attach this card to the back of the mailpiece, or on the front if space permits.

A. Signature • Agent j

A • Addressee

• Complete items 1,2, and 3. Also complete item 4 if Restricted Delivery is desired.

H Print your name and address on the reverse so that w e can return the card to you.

• Attach this card to the back of the mailpiece, or on the front if space permits.

B. Received by (Printed Name) i

C. Date of Delivery <

! . ___

1. Article Addressed to:

Black Crown Energy Partners, LP 303 Veterans Airpark Lane, Suite 6101 M i r i l a n H TY 7 0 7 0 ^

D. Is delivery address different from item 1? LJ Yes i If YES, enter delivery address below: P No i

I I

i

IVI lQIdnU, I A / J / U J L 3. Sen/ice. Type ' ^B^Gertified Mail • Express Mail ;

• Registered • Return Receipt for Merchandise \

• Insured Mail • C.O.D. ;

IVI lQIdnU, I A / J / U J L

4. Restricted Delivery? (Extra Fee) p Yes

(Transfer from service label) Tl i m m i 703D 4014 512T PS Form 3 8 1 1 , February 2004 Domestic Return Receipt 102S95-02-M-1540i

S E N D E R : COMPLETE THIS SECTION I COMPLETE THIS SECTION ON DELIVERY' •• |

• Complete items 1 , 2, and 3. Also complete item 4 if Restricted Delivery is desired.

• Print your name and address on the reverse so that we can return the card to you.

• Attach this card to the back of the mailpiece, or on the front if space permits.

A. Signature r S

xVJL ]̂Mjrxfc^£ \ SSL. • Complete items 1 , 2, and 3. Also complete

item 4 if Restricted Delivery is desired. • Print your name and address on the reverse

so that we can return the card to you. • Attach this card to the back of the mailpiece,

or on the front if space permits.

B.\ Received by (Printed Name) ^ CT Date of DeUvei

. V ' V ^ W ^ John/V

• Complete items 1 , 2, and 3. Also complete item 4 if Restricted Delivery is desired.

• Print your name and address on the reverse so that we can return the card to you.

• Attach this card to the back of the mailpiece, or on the front if space permits.

D. Is delivery address different fromltem' 1 ? O Yes If YES, enter delivery address below: P No 1. Article Addressed to:

Black Crown Energy Partners, LP | 303 Veterans Airpark Lane, Suite 6101 ^ Midland, TX 79705 *

D. Is delivery address different fromltem' 1 ? O Yes If YES, enter delivery address below: P No 1. Article Addressed to:

Black Crown Energy Partners, LP | 303 Veterans Airpark Lane, Suite 6101 ^ Midland, TX 79705 *

3. Service Type _pBCCertified Mail P Express Mail

P Registered P Return Receipt for Merchandi; P Insured Mail P C.O.D.,

1. Article Addressed to:

Black Crown Energy Partners, LP | 303 Veterans Airpark Lane, Suite 6101 ^ Midland, TX 79705 *

4. Restricted Delivery? (Extra Fee; P Yes

2. Article Number , 7 i n j c j e j e ^ ' l 7 Q 3 D 4 0 1 4 S l s l l (Transfer from service label) !. . . .

PS F o r m a l 1 , February 2004 - , Domestic Return Receipt 102595-02-M-i!

Confirmation

Services

Package ID:9171999991703040145129 Destination ZIP Code: 79705 Customer Reference: Recipient: Address:

Electronic Certified First Ciass Letter

PBP Account #: 41592288 Serial #: 1364097

OCT 26 2011 1.03 PM

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October 26, 2011

Hanley Petroleum 415 W. Wall, Suite 1500

Midland, TX 79701

Certified Mail Article Number: 91 7199 9991 7030 4014 5112

Re: Amended Request for Off Lease Measurement and Surface Commingle ofthe gas

Dear Sir or Madam,

This letter is an amendment to the previous letter you received dated August 12, 2011. The request for Surface Commingling of the gas from the Raptor 12 State Com 1H and the Blackhawk 11 Fed Com #1 has been cancelled. We will be requesting Off Lease Measurement for only the gas from the Raptor 12 State Com 1H.

This letter will serve as notice under Rule 104.F (3) that COG Operating LLC has requested administrative approval from the Oil Conservation Division in Santa Fe, NM for Off Lease Measurement'for the gas only for the following well:

Raptor 12 State Com 1H Eddy County, NM

API#: 30-015-38971 Communitization Agreement*: Pending

Surface: 400 FSL & 200 FWL Sec 12, T16S, R28E, Unit M

The gas sales meter will be located on COG Operating, LLC property, Blackhawk 11 Federal Com #1, Sec 11, |T16S, R28E, Unit M. DCP Midstream meter #727906-00. This well will have its own gas sales meter.

Should your company havejany objection, it must be filed in writing within twenty(20) days from the date of this notice. The Division Director may approve the Off Lease Measurement and Surface Commingle of the gas if no objection has been made within the 20 days after the application has been received.

COG Operating LLC Netha Aaron Regulatory Analyst

Enclosures: Letter dated August 12, 2011

Fasken Center, Tower II 550 West Texas Avenue, Suite 100 Midland, Texas 79701 PHONE 432.683.7443 FAX 432.683.7441

Sincerely,

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August 12, 2011

Hanley Petroleum 415 W. Wall, Suite 1500

Midland, TX 79701

Certified Mail Article Number: 91 7199 9991 7030 4014 5075

Re: Request for Off Lease Measurement and Surface Commingle of only the gas Dear Sir or Madam,

This letter will serve as notice under Rule 104.F (3) that COG Operating LLC has requested administrative approval from the Oil Conservation Division in Santa Fe, NM for Off Lease Measurement and Surface Commingle for the gas only for the following wells:

Raptor 12 State Com 1H Eddy County, NWI

API#: 30-015-38971 Communitization Agreement*: Pending

Surface: 400 FSL & 200 FWL Sec 12, T16S, R28E, Unit M

Blackhawk 11 Federal Com #1 Eddy County, NM

API#: 30-015-38250 Communitization Agreement*: NM-126268

Surface: 430 FSL & 330 FWL Sec 11, T16S, R28E, Unit M

The gas sales meter will be, located on COG Operating, LLC property, Blackhawk 11 Federal Com #1, Sec 11, T16S, R28E, Unit M.

It is uneconomical for us to lay a 10,200' gas sales line to the main dcp gathering line at this time. We will allocate the gas using a check meter that will be set on the Raptor 12 State Com 1H gas line before it enters the Blackhawk 11 Federal Com #1 dcp sales meter. Then we will commingle the gas into the one dcp sales meter.

Should your company have any objection, it must be filed in writing within twenty(20) days from the date of this notice. The Division Director may approve the Off Lease Measurement and Surface Commingle ofthe gas if no objection has been made within the 20 days after the application has been received.

Sincerely,

COG Operating LLC Netha Aaron Reguiatory Analyst

Fasken Centsr, Tower II 550 West Texas Avenue, Suite 100 Midland, Texas 79701 PHONE 432.683.7443 FAX 432.683.7441

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SENDER: COMPLETE THIS SECTION COMPLETE THIS SECTION ON DELIVERY

Complete items 1, 2, arid 3. Also complete item 4 if Restricted Delivery is desired. Print your name arid address on the reverse sO that we pari return the card to you. Attach this carcj to the back of the mailpiece, or on the frorit if space permits.

1. Article Addressed to:

Hanley Petroleum 415 W. Wall, Suite 1500 Midland, TX 79701

A. Signature

X • Agent j • Addressee :

B. Received by (Printed Name) C. Date of Delivery

D. Is delivery address different from item 1 ? • Yes If YES, enter delivery address below: • No

3. Service Type J2c6ertified Mail • Registered • Insured Mail

• Express Mail • Return Receipt for Merchandise • C.O.D.

4. Restricted Delivery? (Extra Fee) • Yes

! 2. Article Number i (Transfer from service label) Tl 71TT TTT1 7D3D 4014 S11S

i PS Form 3 8 1 1 , February 2004 Domestic Return Receipt 102595-02-M-1540,'

SENDER: COMPLETE THIS SECTION I COMPLETE THIS SECTION ON DELIVERY

• Complete items i , 2, and 3. Also complete item 4 if Restricted Delivery is desired.

• Print your name and address on the reverse so that we can return the card to you.

• Attach this card to the back of the mailpiece, or on the front if space permits.

A. Sigr&urs. ^ ^

m / / X 7 ? y # • Addresse • Complete items i , 2, and 3. Also complete

item 4 if Restricted Delivery is desired. • Print your name and address on the reverse

so that we can return the card to you. • Attach this card to the back of the mailpiece,

or on the front if space permits.

B. Received by (Printed Name) O Date of Deliver

• Complete items i , 2, and 3. Also complete item 4 if Restricted Delivery is desired.

• Print your name and address on the reverse so that we can return the card to you.

• Attach this card to the back of the mailpiece, or on the front if space permits. O. is delivery address different from item 1 ? U Ye/

If YES enter delivery address below: • No

1 1. Article Addressed to:

i , | Hanley Petroleum | 415 W. Wall, Suite 1500 j Midland, TX 79701

\ 1

i 1 i - • — •

O. is delivery address different from item 1 ? U Ye/ If YES enter delivery address below: • No

1 1. Article Addressed to:

i , | Hanley Petroleum | 415 W. Wall, Suite 1500 j Midland, TX 79701

\ 1

i 1 i - • — •

3. Service Type tg^ertified Mail • Express Mail • Registered • Return Receipt for Merchandis • Insured Mail • C.O.D.

1. Article Addressed to:

i , | Hanley Petroleum | 415 W. Wall, Suite 1500 j Midland, TX 79701

\ 1

i 1 i - • — •

4. Restricted Delivery? (Extra Fee) DYes

i 2. "ArticleNumber c j ^ 7 m T T T 1 7 0 3 0 4 0 1 4 5 1 1 5 j '(Transfer from service label) [_,._ . ^ . .... - -' - ;—:—'— —

), PS Form 3 8 1 1 , February 2004 Domestic Return Receipt 1

Package ID:9171999991703040145112 Electronic Certified Destination ZIP Code: 79701 First Class Letter

Confirmation Customer Reference:

Services Recipient: P8P Accounts: 41592288 Address: Serial #: 1364097

OCT 26 2011 1:05 PM

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October 26, 2011

Crump Energy Partners, LLC 303 Veterans Airpark Lane,) Suite 6101 Midland, TX 79705

Certified Mail Article Number: 91 7199 9991 7030 4014 5105

Re: Amended Request for Off Lease Measurement and Surface Commingle of the gas

Dear Sir or Madam,

This letter is an amendment to the previous letter you received dated August 12, 2011. The request for Surface Commingling ofthe gas from the Raptor 12 State Com 1H and the Blackhawk 11 Fed Com #1 has been cancelled. We will be requesting Off Lease Measurement for only the gas from the Raptor 12 State Com 1H.

This letter will serve as notice under Rule 104.F (3) that COG Operating LLC has requested administrative approval from the Oil Conservation Division in Santa Fe, NM for Off Lease Measurement for the gas only for the following well:

Raptor 12 State Com 1-H Eddy County, NM

API#: 30-015-38971 Communitization Agreement*: Pending

Surface: 400 FSL & 200 FWL Sec 12, T16S, R28E, Unit M

The gas sales meter will be located on COG Operating, LLC property, Blackhawk 11 Federal Com #1, Sec 11, T16S, R28E, Unit M. DCP Midstream meter #727906-00. This well will have its own gas sales meter.

Should your company have any objection, it must be filed in writing within twenty(20) days from the date of this notice. The Division Director may approve the Off Lease Measurement and Surface Commingle of the gas if no objection has been made within the 20 days after the application has been received.

COG Operating LLC Netha Aaron Regulatory Analyst

Enclosures: Letter dated August 12, 2011

Fasken Center, Tower II 550 West Texas Avenue, Suite 100 Midland, Texas 79701 PHONE 432.683.7443 FAX 432.683.7441

Sincerely,

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August 12, 2011

Crump Energy Partners, LLC 303 Veterans Airpark Lane, Suite 6101 Midland, TX 79705

Certified Mail Article Number: 91 7199 9991 7030 4014 5082

Re: Request for Off Lease Measurement and Surface Commingle of only the gas

Dear Sir or Madam,

This letter will serve as notice under Rule 104.F (3) that COG Operating LLC has requested administrative approval from the Oil Conservation Division in Santa Fe, NM for Off Lease Measurement and Surface Commingle for the gas only for the following wells:

Surface: 430 FSL & 330 FWL Sec 11, T16S, R28E, Unit M

The gas sales meter will be located on COG Operating, LLC property, Blackhawk 11 Federal Com#1, Sec 11.T16S; R28E, UnitM.

It is uneconomical for us to lay a 10,200' gas sales line to the main dcp gathering line at this time. We will allocate the gas using a check meter that will be set on the Raptor 12 State Com 1H gas line before it enters the Blackhawk 11 Federal Com #1 dcp sales meter. Then we will commingle the gas into the one dcp sales meter.

Should your company have any objection, it must be filed in writing within twenty(20) days from the date of this notice. The Division Director may approve the Off Lease Measurement and Surface Commingle of the gas if no objection has been made within the 20 days after the application has been received.

Raptor 12 State Com 1H Eddy County, NM

API#: 30-015-38971 Communitization Agreement*: Pending

Surface: 400 FSL & 200 FWL Sec 12, T16S, R28E, Unit M

Blackhawk 11 Federal Com #1 Eddy County, NM

API#: 30-015-38250 Communitization Agreement*: NM-126268

Sincerely,

COG Operating LLC Netha Aaron Regulatory Analyst

Fasken Center, Tower II 550 West Texas Avenue, Suite 100 Midland, lexas 79701 PHONE 432.683.7443 FAX 432.683.7441

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|; SENDER: COMPLETE THIS SECTION COMPLETE THIS SECTION ON DELIVERY

• • Complete items 1,2, and 3. Also complete I item 4 if Restricted Delivery is desired. i • Print your name and address on the reverse j so that we can return the card to you. i B Attach this card to the back of the mailpiece, \ or pn the front jif space permits.

A. Signature. "

X • Agent >

' • Addressee I

• • Complete items 1,2, and 3. Also complete I item 4 if Restricted Delivery is desired. i • Print your name and address on the reverse j so that we can return the card to you. i B Attach this card to the back of the mailpiece, \ or pn the front jif space permits.

B. Received by (Printed Name) C. Date of Delivery ]

i

• • Complete items 1,2, and 3. Also complete I item 4 if Restricted Delivery is desired. i • Print your name and address on the reverse j so that we can return the card to you. i B Attach this card to the back of the mailpiece, \ or pn the front jif space permits.

D. |s delivery address different from item 1? DYes j If YES, enter delivery address below: • No \ j 1. Article Addressed to:

D. |s delivery address different from item 1? DYes j If YES, enter delivery address below: • No \

i

i Crump Energy;Partners, LLC { 303 Veterans Airpark Lane, Suite 6101 : Midland, TX 79705

i

i

i

1 3. Service Type I W Certified Mail • Express Mail LJ Registered • Return Receipt for Merchandise I • Insured Mail • C.O.D. !

i 1

4. Restricted Delivery? (Extra Fee) • Yes !

2. Article Number i (Transfer from service label) Tl 71TT TTT1 7D3D 4Q1H 5105

: PS Form 3 8 1 1 , February 2004 Domestic Return Receipt 102595-02-M-1540,

f SENDER: COMPLETE THIS SECTION

, Complete items 1,2, and 3. ^ c o m p l e t e item 4 if Restricted Delivery is desired.

B S your name and ^ r e s s on the reverse so that we can return the card to you.

. Attach this card to the back of the ma.lp.ece, of on the front if space permits. »l,.. . •

1. Article Addressed to:

i ; C r u m p Energy Par tners , LLC

"j 303 Ve te rans A i rpa rk Lane, Suite 6 1 0 1

' M i d l a n d , TX 79705

COMPLETE THIS SECTION ON DELIVERY

• Agent ) ^..•'Addressee

I S U c l l v c i y -

If YES, enter delivery address below: • No

3. Service Type ^'Certified Mail

Registered • Insured Mail

• Express Mail • Return Receipt for Merchandis

• C.O.D. •

4. Restricted Delivery? (Extra Fee) • Yes

2. Article Number < _ : fTransfei-from service label)

PS Form 3811 i February 2004

Tl"71TT"TTT1 7D3D 4Q1H 5105

Domestic Return Receipt 102595-02-M-1!

Confirmation

Services

•p^ i^TD T 9^719999 i t7W040145105

Destination ZIP Code: 79705 Customer Reference: Recipient: . Address: ;

Electronic Certified First Class Letter

PBP Accounts: 41592288 Serial #: 1364097

OCT 26 2011 1:06 PM

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District I 1625 N. French Drive, Hobbs, NM 88240 District II 1301 W. Grand Ave, Artesia, NM 88210 District I I I 1000 Rio Brazos Road, Aztec, NM 87410 District IV 1220 S. St Francis Dr, Santa Fe, NM 87505

State of New Mexico

Energy, Minerals and Natural Resources Department

O I L C O N S E R V A T I O N D I V I S I O N

1220 S. St Francis Drive _

Santa Fe, N e v p g g j o i j ' f g G J Q C P

Form C-107-B Revised June 10, 2003

Submit the original application to the Santa Fe office with one copy to the appropriate District Office.

COG Operating LLC

550 West Texas Suite 100, Midland, Texas 79701

APPLICATION FOR SURFACE COpM|PjGLIN(RD|VESSE OWNERSHIP) OPERATOR NAME:

OPERATOR ADDRESS:

APPLICATION TYPE:

ITJ Pool Commingling fjLease Commingling OPool and Lease Commingling ^Off-Lease Storage and Measurement (Only if not Surface Commingled)

LEASE TYPE: • Fee M State • Federal . Is this an Amendment to existing Order? l~]Yes ^ N o I f "Yes", please include the appropriate Order No. Have the Bureau of Land Management (BLM) and State Land office (SLO) been notified in writing of the proposed commingling •Yes DNo

i (A) P O O L C O M M I N G L I N G Please attach sheets with the following information

(1) Pool Names and Codes Gravities / BTU of Non-Commingled Production

Calculated Gravities / BTU of Commingled Production

Calculated Value of Commingled Production

Volumes

(2) Are any wells producing at top allowables? OYes fTNo (3) Has all interest owners been notified by certified mail of the proposed commingling? OYes fTNo. (4) Measurement type: • Metering • Other (Specify) „ • • - ' T- " (5) Will commingling decrease the value of production? ITjYes (~jNo If "yes", describe why commingling should be approved

r . . ^

(B) L E A S E C O M M I N G L I N G Please attach sheets with the following information

(1) Pool Name and Code. (2) Is all production from same source of supply? OYes QNo (3) Has all interest owners been notified by certified mail of the proposed commingling? (4) Measurement type: •Metering • Other (Specify)

•Yes DNo

( C ) P O O L and L E A S E C O M M I N G L I N G Please attach sheets with the following information

(1) Complete Sections A and E.

(D) O F F - L E A S E S T O R A G E and M E A S U R E M E N T Please,attached sheets with the following information

(1) Is all production from same source of supply? ^Yes QNo (2) Include proof of notice to all interest owners. ,

( E ) A D D I T I O N A L I N F O R M A T I O N (for all application types) Please attach sheets with the following information

(1) A schematic diagram of facility, including legal location. (2) A plat with lease boundaries showing all well and facility locations. Include lease numbers if Federal or State lands are involved. (3) Lease Names, Lease and Well Numbers, and API Numbers.

I hereby certify that tjje^ information above is true and complete to the best of my knowledge and belief.

SIGNATURE: " | | * ( A i J ^ ^ - A j Y V TITLE: Regulatory Analvst DATE: 12/1/11

TYPE OR PRINT NAME Netha Aaron TELEPHONE NO.': 432-818-2319

E-MAIL ADDRESS: oaaron(5),concho com

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