Y:COMMISSION 1SEPTEMBERFINAL APPLICATIONSNevada - … Applications Archive/2011... · 2013-05-21 · RESUME OF EFFORTS TO SAID LEASE SECTION 4: THE SOUTH HALF OF THE NORTH HALF OF

JERRY L. CANFIELD, P.A.THOMAS A. DAILY, P.A.WYMAN R. WADE, JR., P.A.DOUGLAS M. CARSON, P.A.ROBERT R. BRIGGS, P.A. †C. MICHAEL DAILY, P.A. † !"L. MATTHEW DAVIS, P.A. †COLBY T. ROE

† Also Licensed in Oklahoma! Also Licensed in Wyoming & North Dakota" Certified Mediator

DAILY & WOODSA PROFESSIONAL LIMITED LIABILITY COMPANY

ATTORNEYS AT LAW

KMW BUILDING58 SOUTH SIXTH STREET

P.O. BOX 1446FORT SMITH, AR 72902

TELEPHONE (479) 782-0361FAX (479) 782-6160

______________

JAMES E. WESTDALE CARLTON

PHILLIP E. NORVELL †

OF COUNSEL_______

HARRY P. DAILY (1886-1965)JOHN P. WOODS (1886-1976)JOHN S. DAILY (1912-1987)

BEN CORE (1924-2007)

September 6, 2011

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

Re: ORDER REFERENCE NO. 257-2011-09

Application of Weiser-Brown Oil Company for the formation of an exploratorydrilling unit composed of the South Half of the Northwest Quarter of theNortheast Quarter and the North Half of the Southwest Quarter of the NortheastQuarter of Section 4, Township 14 South, Range 21 West, Nevada County,Arkansas and for the integration of all unleased mineral owners, in suchexploratory drilling unit.

Commissioners:

Weiser-Brown Oil Company, P.O. Box 3050, Magnolia, Arkansas 71753, hereby appliesto the Arkansas Oil and Gas Commission as follows:

1, The applicant’s proposed drilling unit, described above is not subject to the fieldrules of the any field. The applicant and its participating partners control at least 50% ofthe right to drill and produce oil and gas from such proposed unit. The applicant thusrequests that the above described drilling unit, containing, in the aggregate, 40 acres,more or less, unit be designated as an exploratory drilling unit.

2. Applicant’s proposed well will be drilled to an approximate depth of 3,700 feet totest the Paluxy Formation as well as any other intervening formations.

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

4. Applicant states that it has made repeated efforts to negotiate with the owners ofthe unleased mineral interests in order to agree on a plan of development of saiddrilling unit; that those owners have been offered an opportunity to participate in theproposed well; that they have been offered a fair and reasonable bonus consideration

for the execution of an oil and gas lease covering their interests; that they have beenfurnished with a proposed oil and gas lease and a copy of the AAPL operatingagreement form which applicant proposes to use in connection with the drilling of saidwell; but that all of the efforts of the applicant have produced no agreement by saidparties.

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

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

(a) Each of the owners of the unleased mineral interests indicatedabove execute and deliver to applicant a one year oil and gaslease, on an AAPL lease form, for a bonus consideration of$150.00 per net mineral acre to be paid as fair and reasonablecompensation in lieu of the right to participate in the workinginterest in said unit, and that said oil and gas lease provide for a3/16 royalty on oil and gas.

(b) Each of the owners of the unleased mineral interests indicatedabove execute and deliver to applicant a one year oil and gaslease, on an AAPL lease form, for no bonus consideration, and thatsaid oil and gas lease provide for a 1/4 royalty on oil and gas.

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

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

Applicant further requests that said mineral owners be required to elect within fifteen(15) days after issuance of the Commission's order which method will be pursued in thedevelopment of the above described unit, and, in the event no election is made, that itshall be assumed that the owner of said unleased mineral interest has elected to accepta bonus of $150.00 per net mineral acre as compensation in lieu of the right toparticipate in the working interest in said unit, and with the royalty to be 3/16.

7. Applicant further states that due to the risks and costs inherent in the drilling ofthe proposed well, the Commission should fix a reasonable risk factor to be assessed

as a penalty against the integrated interests within the unit. The risk factor should beapplied to the proportionate cost and expenses of drilling, completing and equipping thewell, which would have been borne by the interest of said parties had they participated.

8. Applicant further requests that this Commission's order specifically provide thatany party electing either to participate or be force pooled subject to recoupment of arisk factor penalty be bound by the terms of the attached AAPL Operating Agreementfor the life of commercial production within the unit so that all future unit operationsmight be proposed pursuant to the provisions of such agreement without the necessityof future action by this Commission.

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

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

11. Please note the appearance of Thomas A. Daily of Daily & Woods, P.L.L.C.,P.O. Box 1446, Fort Smith, Arkansas, 72902, on behalf of applicant.

Very truly yours,

Thomas A. Dailyjmt

Interested Parties List EXHIBIT A

M.T. Davis

Address unknown

Leone Revillon Nikanov

Address unknown

Estate of Ruth Rummel

Address unknown

Ruth Womack Savage

c/o Gaynell Savage Hill

1509 Lee St.

Charleston, WV 25301

Mary E. Whitaker Estate

c/o Carolyn W. Koch

3235 Howard St. NE

Hartville, OH 44632


c/o Rosemary Whitaker Mullingan

839 Chicken Bridge Rd.

Pittsboro, NC 27312


c/o Wendy Joyce

address unknown

Interested Parties List EXHIBIT A-1

M.T. DAVIS

ADDRESS UNKNOWN

LEONE REVILLON NIKANOV

ADDRESS UNKNOWN

ESTATE OF RUTH RUMMEL

ADDRESS UNKNOWN

RUTH WOMACK SAVAGE

C/O GAYNELL SAVAGE HILL

1509 LEE ST.

CHARLESTON, WV 25301

MARY E. WHITAKER ESTATE

C/O CAROLYN W. KOCH

3235 HOWARD ST. NE

HARTVILLE, OH 44632


C/O ROSEMARY WHITAKERMULLINGAN

839 CHICKEN BRIDGE RD.

PITTSBORO, NC 27312


C/O WENDY JOYCE

ADDRESS UNKNOWN

REX & BETTY DODSON

405 EAST 1ST

CROSSETT, AR 71635

CAMERON DODSON

1132 HAZEL CIRCLE

MAGNOLIA, AR 71753

JOE AND DEANE WOODWARD

943 HIGHLAND CIRCLE

MAGNOLIA, AR 71753

DOUGLAS K. WATERS

2309 EAST 23RD ST.

HOPE, AR 71801-8964

JAMES B. WATERS

119 HEMPSTEAD 57

HOPE, AR 71801

JENNY L. WALLER

803 EAST 28TH ST

HOPE, AR 71801-1109

MARTHA WARD

18 COMMENTRY DR.

LITTE ROCK, AR 72223-4595

NANCY BAILEY

5815 LEXINGTON CIRCLE

LUMBERTON, TX 77657

CAROLYN BILLINGS

152 MIMOSA DR., UNIT C6

HOT SPRINGS, AR 71913

ALAN W. HOLLAND

12503 SAINT CHARLES BLVD.

LITTLE ROCK, AR 72211

ANN HOLLAND CROW LYP

2 POYDRAS DR.

LITTLE ROCK, AR 72211

WALLACE WARMACK

814 YORKSHIRE DR.

GRAND PRAIRIE, TX 75050

LEWIS LIVING TRUST

C/O ANN J. LEWIS, TRUSTEE

681 SHADY GROVE RD, APT 5

HOT SPRINGS, AR 71901-7690

WEISER BROWN OPERATINGCOMPANY

P.O. BOX 500

MAGNOLIA, AR 71754

ADAMS RESOURCES EXPLORATION

4400 POST OAK PARKWAY

SUITE 2700

HOUSTON, TX 77027

KSA OIL & GAS PROPERTIES

P.O. BOX 844

HOUSTON, TX 77001

JAMES AND PATRICIA ALLEN

FAMILY PARTNERSHIP, LP

4019 COLERIDGE

HOUSTON, TX 77005

ALTO ENERGY PARTNER, LTD

74, CLEVELAND GARDENS

LONDON NW2 IDU UK

ARKEL OIL AND GAS, LLC

1048 FLORIDA

BATON ROUGE, LA 70802

ATLANTA EXPORATION CO.

P.O. BOX 9

MAGNOLIA, AR 71754

ORLOFSKY MINERAL HOLDDINGS

6038 CHERRYRIDGE DRIVE

BATON ROUGE, LA 70809

DIVERSE 2007 EXPLORATION, LP

1001 MCKINNEY ST., STE 520

HOUSTON, TX 77002

ERRYOT PARTNERS, LTD

1403 DRAGON ST.

DALLAS, TX 75207

GINGER OIL COMPANY

1400 WOODLOCH FOREST DR.

STE 425

THE WOODLANDS, TX 77380

HEATHARY RESOURCES, INC

6318 CHERRY HILLS ROAD

HOUSTON, TX 77069

JOYCE OIL AND GAS, INC

6318 SAGE, STE 170

HOUSTON, TX 77056

KOSSAK OIL AND GAS, LP

730 5TH AVE, STE 1901

NEW YORK, NY 10019

LANOCO, LLC

P.O. BOX 6566

TYLER, TX 75711

NEW LIFE VENTURES 1, LLC

255 HEDWIG

HOUSTON, TX 77024

MIKER ROGERS OIL AND GAS, INC

P.O. BOX 126

MAGNOLIA, AR 71754

HAROLD ROSBOTTOM, JR

2460 YOUREE DR.

P.O. BOX 4387

SHREVEPORT, LA 71134

TRENT INVESTMENTS, LLC

P.O. BOX 3690

YOUNTVILLE, CA 94599

R.L. ZINN, ETAL, LTD

3400 BISSONNET, STE 250

HOUSTON, TX 77005-2153

NANZIN FAMILY LTD PTSHP

C/O R.L. ZINN, ETAL, LTD

3400 BISSONNET, STE 250

HOUSTON, TX 77005

WEISER BROWN OIL CO.

P.O. BOX 500

MAGNOLIA, AR 71754

TOWNSHIP 14 SOUTH, RANGE 21 WEST

Gross Acres: 40.000000Net Acres: 1.250000

M.T. Davisaddress unknown

May 5, 2011

May 10, 2011

May 19, 2011

July 6, 2011

July 7, 2011

July 27, 2011

RESUME OF EFFORTS TO SAID LEASE

SECTION 4: THE SOUTH HALF OF THE NORTH HALF OF THE NORTHEAST QUARTER.

Called James Roy Brown, former Nevada County Judge. He had not every heard of this name.

Checked Nevada County Courthouse. M.T. Davis has never executed lease on the land and I did not see probate on him. Checked Tax roles-no success.

checked whitepages. Com, anywho.com, peoplefinders.com. Checked Columbia County probate.

Called Donna Srebalus,Land broker for Mike Davis, to see if this was any relative on Mike Davis. She was not familiar with this name. She advised me to call Mike's mother.

I called Mike's mother and she said she does not recall this name-M.T. Davis.

M.T. Davis aquired this interest thru A.G. Womack, which is dec'd. However, I rec'd a lease from Peggy Womack Foose, sole heir. I asked her, but she did not know of him.



Leone Revillon Nikanovbelieve to be one of possible devisees of Gordon Oil Co.address unknown

May 5, 2011

May 10, 2011

May 19, 2011

July 11, 2011

July 29, 2011

August 8, 2011



Called James Roy Brown, former Nevada County Judge. He had not ever leased this family/devisee.

Checked Nevada County Courthouse. Checked Tax roles-no success. Last lease was from 1972. No deed showing actual resolution of Company. Found breakout % of Co. on last leases.


Mailed lease package to last address noted on last lease. 55 East 86 St., New York, NY 10028

Lease was undeliverable and returned.

I received a lease from Peggy Womack Foose, heir of A.G. Womack, so I called her and she did not know any information.



Estate of Ruth M. Rummelbelieve to be one of possible devisees of Gordon Oil Co.address unknown

May 5, 2011

May 10, 2011

May 19, 2011

July 11, 2011

July 25, 2011

August 8, 2011






Mailed lease package to last address noted on last lease. P.O. Box 3164, Kanawha Vally Bank Bldg, Charleston, WV 25300

Lease was undeliverable and returned.

I received a lease from Peggy Womack Foose, heir of A.G. Womack, so I called her and she did not know any information.



Ruth Womack Savagebelieve to be one of possible devisees of Gordon Oil Co.address unknown

May 5, 2011

May 10, 2011

May 19, 2011

July 11, 2011

July 29, 2011





checked whitepages. Com, anywho.com, peoplefinders.com. Checked Columbia County probate. Possible sole heir is Gaynell Savage Hill in Charleston, WV.

Mailed lease package to last address noted on last lease. 1509 Lee St., Charleston, WV 25301

Lease was not returned. Mailed another letter with proposal.


Gross Acres: 40.000000

Net Acres: 0.200000

Mary E. Whitaker

believe to be one of possible devisees of Gordon Oil Co.

address unknown

May 5, 2011

May 10, 2011

May 19, 2011

July 11, 2011

July 29, 2011

Mailed lease package to last address noted on last lease. Carolyn Koch- 3235Howard St. NE, Hartville, OH 44632. Rosemary Whitaker Mullingan, 839Chicken Brigde Rd., Pittsboro, NC 27312. no address for Wendy Joyce.

Lease was not returned. Mailed another letter with proposal. No phone # to befound.



Called James Roy Brown, former Nevada County Judge. He had not ever leasedthis family/devisee.

Checked Nevada County Courthouse. Checked Tax roles-no success. Lastlease was from 1972. No deed showing actual resolution of Company. Foundbreakout % of Co. on last leases.

checked whitepages. Com, anywho.com, peoplefinders.com. Checked ColumbiaCounty probate. Possible heirs is Carolyn W. Koch, Rosemary WhitakerMullingan, and Wendy Joyce.

EXHIBIT “C”Applicant’s statement regarding Operating Agreement

The applicant requests incorporation of the Model Form Joint Operating Agreement for

Liquid Hydrocarbon Wells approved by the Arkansas Oil and Gas Commission on February

22, 2010, with Paragraph III.1.A.(1) of the COPAS providing for a drilling well rate of

$7,500.00 and a producing well rate of $750.00 , and with the following proposed

revisions, deletions and/or insertions, if applicable:

NONE

AFFIDAVIT AND TESTIMONY OF RODNEY MAY, A PETROLEUM LANDMAN

STATE OF ARKANSAS

COUNTY OF NEVADA

Rodney May, having been first duly sworn, makes the following affidavit:

My name is Rodney May I am a petroleum landman employed by Atlanta ExplorationCo., an independent petroleum land service provider retained by Weiser Brown Oil Co. toassist in securing oil and gas leases and/or commitments to participate in certain wellsincluding the applicant's planned well, which is the subject of this application (the "subjectproposed well".)

I understand that I am submitting this Affidavit, under oath, as testimony in this docketedmatter. This Affidavit is submitted in lieu of live testimony in this matter and is materiallythe same as the testimony which I would present herein as a live witness.

I am familiar with the information contained within the Summary of Efforts To SecureLeases and/or Participation which has been pre-filed as an exhibit in connection with thisApplication. The summary of efforts to secure such leases and/or participation documentedwithin that exhibit is true and correct, to the best of my knowledge, as of immediatelybefore the filing of the Application. If there are material additional efforts made to securesuch leases and/or participation up to, and including, the hearing date, they will bedocumented on a supplemental or replaced exhibit, which, I pledge, will likewise be trueand correct, to the best of my knowledge.

To the best of my knowledge, as of the date of the filing of the Application the best terms(bonus and royalty) paid in the unit containing the subject proposed well are $150/ac,3/16th royalty (preferred for default) and $0/ac, l/4tb royalty.

In the event that the applicant secures an oil and gas lease upon any better terms than thoseset out above, within such unit, I pledge that I will prepare and file a supplemental affidavitsetting out such better lease terms or the applicant will present live testimony explainingsuch better terms.

I know of my own personal knowledge that the applicant and its participating partners havesecured oil and gas leases covering approximately 96.875 % of the net mineral acrescontained within the unit containing the proposed subject well, as of the date of the filing ofthe Application. I also know of my own personal knowledge that persons consenting to thedrilling of the subject proposed well controlled at least 50% of the right to drill within theunit as of the date of the filing of the Application.

Documents

Y:COMMISSION 1SEPTEMBERFINAL APPLICATIONSNevada - … Applications Archive/2011... · 2013-05-21 · RESUME OF EFFORTS TO SAID LEASE SECTION 4: THE SOUTH HALF OF THE NORTH HALF OF