846-2009-12 Applications Archive/2009/December… · JAMES E. WEST PHILLIP E. NORVELL * DALE...

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. MI CHA EL D AILY , P.A. †

COBY W. LOGAN

L. MATTHEW DAVIS †

COLBY ROE

* Fayetteville Office

† Al so L icensed in Oklahoma

DAILY & WOODSA PROFESSIONAL LIMITED LIABILITY COMPANY

ATTORNEYS AT LAW

KMW BUILDING58 SOUTH SIXTH STREET

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

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

______________

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

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

FAX (479) 251-8111

JAMES E. WEST

PHILLIP E. NORVELL *

DALE CARLTON *

OF COUNSEL

_______

HARRY P . DAILY (1886-1965)

JOHN P. WO ODS (1886-1976)

JOHN S. DAILY (1912-1987)

November 17, 2009

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

Re: ORDER REFERENCE NO. 846-2009-12

Application of SEECO, Inc. for Integration of All Unleased Mineral Interests andNon-consenting Working Interests in a unit described as Section 7, Township 7North, Range 15 West, Conway County, Arkansas

Commissioners:

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

1. The proposed drilling unit is an exploratory unit as defined in paragraph (f) ofArkansas Oil and Gas Commission General Rule B-43. Persons who own at least anundivided 50% interest in the right to drill and produce oil and/or gas from the totalproposed unit area have agreed to participate in Applicant’s proposed well. Applicantproposes to drill a horizontal well from a non-exceptional surface location in theNorthwest Quarter down to a non-exceptional bottom hole location in the SouthwestQuarter of the above-described unit. The proposed well will be drilled to a total verticaldepth of 5,858 feet to test the Fayetteville Shale Formation. Applicant has obtained oneor more oil and gas leases covering its proposed drill site.

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

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

the drilling of the proposed well.

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

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

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

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

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

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

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

(a) Each of the owners of the unleased mineral interests indicatedabove execute and deliver to applicant a one year oil and gas

lease, on an AAPL lease form, for a bonus consideration of$500.00 per net mineral acre to be paid as fair and reasonablecompensation in lieu of the right to participate in the workinginterest in said unit, and that said oil and gas lease provide for a 1/8royalty on oil and gas.

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

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

Applicant further requests that said mineral owners be required to elect within fifteen(15) days after issuance of the Commission's order which method will be pursued in thedevelopment of the above described unit, and, in the event no election is made, that itshall be assumed that the owner of said unleased mineral interest has elected to accepta bonus of $500.00 per net mineral acre as compensation in lieu of the right toparticipate in the working interest in said unit, and with the royalty to be 1/8.

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

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

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

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

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

Very truly yours,

Thomas A. Dailyjmt

Foshee 07-15 #1-07H Section 7- T7N - R15W Conway County, Arkansas

EXHIBIT A

INTERESTED PARTIES MINERAL OWNERS

Boyd, Karen Braud See Page 2 of Exhibit B

Bradley, Warren, Heirs See Page 1 of Exhibit B

Braud, Alton See Page 2 of Exhibit B

Braud, Gilbert Gay, Sr., Heirs See Page 2 of Exhibit B

Braud, Gilbert Gay, Jr. See Page 2 of Exhibit B

Braud, Rachel See Page 2 of Exhibit B

Braud, Steve See Page 2 of Exhibit B

Braud, Terri See Page 2 of Exhibit B

Cago, Inc. See Page 3 of Exhibit B

Cambiano, Mark See Page 4 of Exhibit B

Church of the Incarnation See of Exhibit B

Dvergsten, Jessica Gibson See Page 6 of Exhibit B

Evans, Katherine Rice McRae Lattimer, now See Page 7 of Exhibit B

Givens, Jeff W. and Deborah Givens See Page 8 of Exhibit B

Page 1 of 3


EXHIBIT A

INTERESTED PARTIES Gray, M. G. and Lucille Gray, Heirs See Page 9 of Exhibit B

Gray, Malvern G. See Page 9 of Exhibit B

Gray, Morris W. See Page 9 of Exhibit B

Gray, Thomas A. See Page 9 of Exhibit B

Lentz, Robert G. See Page 10 of Exhibit B

Lyons, Peggy McClure See Page 11 of Exhibit B

Malone, Mary Inez Gibson See Page 12 of Exhibit B

McClure, James Curtis, Jr. See Page 13 of Exhibit B

McRoberts, Lucinda P. See Page 14 of Exhibit B

Moore, John Bonar, Heirs See Page 15of Exhibit B

Mt. Pisgah Baptist Church See Page 16 of Exhibit B

Porter, Fred T., III See Page 17 of Exhibit B

Presley, Annie Ray, Heirs See Page 18 of Exhibit B

Scottish Rite Hospital for Crippled Children See Page 19 of Exhibit B

Shaw, Jon and Dee Shaw See Page 20 of Exhibit B

Page 2 of 3


EXHIBIT A

INTERESTED PARTIES

Page 3 of 3

Simons, Leslie Gordon See Page 21 of Exhibit B

Simpson, Stacy Susan See Page 22 of Exhibit B

Simpson, Steve Scott See Page 23 of Exhibit B

Stobaugh, Mary L. See Page 9 of Exhibit B

Trafford, Kenneth J., Jr. See Page 24 of Exhibit B

Uhlman, Joy See Page 9 of Exhibit B

Williams, Melinda See Page 25 of Exhibit B

WORKING INTEREST OWNERS

BP America Production Company See Page 26 of Exhibit B

Ceres Resource Partners, LP See Page 28 of Exhibit B

Chesapeake Exploration, LLC See Page 29 of Exhibit B

Petrohawk Properties, LP See Page 32 of Exhibit B

Foshee 07-15 #1-07H Section 7 – T7N - R15W Conway County, Arkansas

EXHIBIT B

RESUME OF EFFORTS TO LEASE

Page 1 of 32

Warren Bradley, Heirs The known heir of Warren Bradley has leased her interest to SEECO, Inc. The heirship of Warren Bradley has been established by probate filed in Conway County, Arkansas, Case No. PR 95-107. November 17, 2009 Well proposal letter and AFE mailed to Warren Bradley, Heirs, in care of

Barbara Bradley.


EXHIBIT B


Page 2 of 32

Gilbert Gay Braud, Sr., Heirs Karen Braud Boyd Alton Braud Gilbert Gay Braud, Jr. Rachel Braud Steve Braud Terri Braud September 13, 2009 Searched office records. Located phone number for two heirs. Called Gilbert

Gay Braud, Jr. No answer. Left message. Called Rachel Braud, widow of owner. Left message after multiple attempts.

September 21, 2009 Sent offer letter to Gilbert Gay Braud, Jr. September 22, 2009 Called Gilbert Braud, Jr. No answer. Left message. September 29, 2009 Spoke with Gilbert Braud, Jr. Discussed lease offer. He said he would agree to

lease terms as would the other heirs. He said he would send heirship information.

October 2, 2009 Received heirship information. October 6, 2009 Received a call from Gilbert Braud. He said he and his stepmother, Rachel

Braud were working with an attorney to get all the lands and mineral interests of Gilbert Gay Braud, Sr. conveyed into the Braud Trust. He said they would not sign leases at this time.

October 12, 2009 Received a copy of the will of Gilbert Gay Braud, Sr. In the will he left all his

land and minerals to his three grandchildren. The will has not been probated. October 20, 2009 Called Gilbert Braud, Jr. No answer. Left message. November 4, 2009 Spoke with Gilbert Braud, Jr. who said the family is talking to an attorney to

convey the minerals of Gilbert Gay Braud, Sr. to his three grandchildren in order to comply with the terms of his will. He said they would not lease until the minerals were conveyed to the grandchildren.

November 12, 2009 Family is still working with the attorney to convey the minerals to the

grandchildren. November 17, 2009 Well proposal letter and AFE mailed.


EXHIBIT B


Page 3 of 32

Cago, Inc. September 17, 2009 Searched office records. Located an address for Cago, Inc. but no phone

number. September 19, 2009 Searched area phone directories and internet. Unable to locate phone

listing for Cago, Inc. September 25, 2009 Expanded internet search. Located possible listing. Called. No answer.

Left message. October 6, 2009 Called. Still no answer. Left message after multiple attempts. October 15, 2009 Spoke with Cago, Inc. president, Robert Bourk. Discussed lease offer. He

said he had a better offer from a third party. He said he would wait to see the well information to decide if he would lease or participate. He said not to contact him again unless we had a better offer.

October 23, 2009 Called Robert Bourk. No answer. Left message. November 2, 2009 Called for Robert Bourk. No answer. Left message explaining new terms

being offered. November 10, 2009 Called Robert Bourk. No answer. Left message. November 13, 2009 Unable to lease at this time. November 17, 2009 Well proposal letter and AFE mailed.


EXHIBIT B


Page 4 of 32

Mark Cambiano September 15, 2009 Searched office records and located contact information for owner. Called. No answer. Left message asking for return call. September 17, 2009 Called owner. No answer. Left message after multiple attempts. September 24, 2009 Received call from owner. Discussed lease offer. Terms were not

acceptable. October 12, 2009 No change in status. Owner does not want to discuss a lease unless we

have better terms. October 23, 2009 Called owner. He was out of the office. Left message asking that he

return the call. October 26, 2009 Called owner. Was told he was not available. Left message. November 2, 2009 Called and spoke with owner’s assistant who said he was out of the

country until November 20. She provided an email address where he can be reached. Sent email outlining new lease terms.

November 10, 2009 Received an email from owner. He said he would be out of the country

until the end of the month and did not want to deal with this matter until he returns.

November 17, 2009 Well proposal letter and AFE mailed.


EXHIBIT B


Page 5 of 32

Church of Incarnation This owner came into title as one of the devisees of Muriel Ray Freeman, an heir of Annie Presley (see page 18 of Exhibit B) August 7, 2009 Unable to locate phone numbers. In search of courthouse records located several old leases

covering this interest. Mailed lease proposal letters to addresses on old leases. August 26, 2009 Sent second set of letters by certified mail. September 7, 2009 Received a call from James McClure, another possible heir of Annie Presley (see Page 13 of

Exhibit B). He said he would provide information on the McClure and Porter families. He does not know about the other possible heirs.

September 14, 2009 Received a call from Carol Simpson, who said Muriel Freeman Ray, another lessor from the 50’s,

was her aunt, who is now deceased. She said she would send a copy of her aunt’s will and probate of her estate from Dallas County, Texas. She said Muriel Freeman Ray was not married and had no children. She said she thought Annie Ray Presley and Muriel Freeman Ray were cousins. She had no information on the other heirs.

September 28, 2009 Located a Texas probate of the will of Muriel Freeman Ray. No ancillary probate has been filed in

Arkansas. The Church of the Incarnation was named as a devisee of Muriel Freeman Ray. October 5, 2009 Located a phone number for The Church of the Incarnation. Called and was directed to the

foundation manager, Rachel Fitzgerald. She was out. Left message. October 16, 2009 Spoke with Rachel Fitzgerald. Explained purpose of call. She took down the information and said

she would have to talk to other officials of the church. October 17, 2009 Spoke with Rachel Fitzgerald who referred me to Jack Oslin, a church member and spokesman for

the church. October 19, 2009 Called Jack Oslin. He was unavailable. Left message. October 23, 2009 Spoke with Jack Oslin. Discussed lease offer and that because Muriel Ray’s will had not been

probated in Arkansas to date, there would have to be a letter agreement with the lease. He indicated that the terms were unacceptable but said he would discuss the matter with other church members.

October 28, 2009 Called Jack Oslin. He was not in. Left message outlining new lease terms. November 3, 2009 Sent email to Jack Oslin with new lease terms. November 10, 2009 Called Jack Oslin. He was unavailable. Left message. November 13, 2009 Unable to lease at this time. November 17, 2009 Well proposal letter and AFE mailed.


EXHIBIT B


Page 6 of 32

Jessica Gibson Dvergsten September 14, 2009 Called Mary Malone (see Page 12 of Exhibit B) who is mother of owner

and handles her mineral interests. No answer. Left message. September 18, 2009 Talked to Mary Malone. Discussed lease offer. She said she would talk to

Jessica and let us know what they decide. October 7, 2009 Talked to Mary Malone. She said she and her daughters have gotten a

better offer from a third party and that she would let us know what she decides.

October 12, 2009 Talked to Mary Malone. She said she would lease if we could match the

third party offer. October 22, 2009 Talked to Mary Malone. She said she and her daughters were going to

wait until section is integrated to make a decision. November 5, 2009 Called Mary Malone. No answer. Left message. November 13, 2009 Status unchanged. Unable to lease at this time. November 17, 2009 Well proposal letter and AFE mailed.


EXHIBIT B


Page 7 of 32

Katherine Rice McRae Lattimer, now Evans September 15, 2009 Searched office records. Located address and phone number. Called. No

answer. Left message. September 21, 2009 Called owner again. Still no answer. Left another message. September 23, 2009 Mailed lease proposal letter. October 6, 2009 Called owner and left message after multiple attempts. Expanded internet

search for alternate contact information. No new information found. October 15, 2009 Called another mineral owner in section who might be a relative of this

owner. No answer. Left message. October 29, 2009 Spoke with the mother of owner, Mary Malone (see Page 12 of Exhibit B).

She said she would call her daughter and ask her to get in touch. She provided an email address. Sent lease proposal offer via email. Owner called and said she had a better offer from a third party.

November 3, 2009 Emailed owner with new lease offer. November 4, 2009 Spoke with owner who agreed to new lease terms. November 6, 2009 Lease and related documents being prepared. November 10, 2009 Lease and related documents mailed. November 13, 2009 Called owner. No answer. Left message. November 17, 2009 Well proposal letter and AFE mailed.


EXHIBIT B


Page 8 of 32

Jeff W. Givens, and Deborah Givens August 5, 2009 Searched office records. Unable to locate any information on owners.

Conducted internet search and located address and phone number for owners. Called number. It was no longer in service.

August 7, 2009 Sent lease proposal letter to owners. August 20, 2009 No response to lease proposal letter. Sent second letter. Also, asked owners to

call if they are leased to a third party. September 2, 2009 Checked county records for further information on owners. Nothing found. September 15, 2009 Talked to local abstractor and circuit clerk. Neither had any information on

owners. September 21, 2009 Expanded internet search. No further information obtained. September 29, 2009 Contacted neighbors at last known address of owner. Owner no longer living at

address. Asked neighbor to relay a message to have owner call if he heard from him.

October 5, 2009 Expanded internet search. Located a phone number for stepson of owner.

Called. No answer. Left message explaining purpose of call. October 8, 2009 Received a call from son of owner, Jeff W. Givens, Jr. who said his father is

deceased but Deborah Givens is alive. He said she did not want to be contacted and that she felt harassed by our efforts to locate her. He said he would represent her. Discussed lease offer. He said they were not interested in leasing at this time. They are going to talk to other parties and see if they can get a better offer.

October 22, 2009 Called Jeff Givens, Jr. No answer. Left message outlining new lease terms. November 2, 2009 Called Jeff Givens, Jr. again. Still no answer. Left message. November 11, 2009 Called Jeff Givens, Jr. No answer. Left message after multiple attempts. November 17, 2009 Well proposal letter and AFE mailed.


EXHIBIT B


Page 9 of 32

M. G. Gray and Lucille Gray, Heirs Malvern G. Gray Morris W. Gray Thomas A. Gray Mary L. Stobaugh Joy Uhlman The above named parties are believed to be the heirs of M. G. Gray and Lucille Gray. However, heirship has not been established. Therefore this interest is being named for protection purposes. September 15, 2009 Searched office records. Unable to locate any information on owners. September 17, 2009 Conducted internet search for information on owners or possible heirs. Nothing found. September 23, 2009 Checked documents of record. Nothing found on owners. October 5, 2009 Talked to circuit clerk and local abstractor. They did not have any information regarding

owner or possible heirs. October 13, 2009 Talked to local residents. None knew anything about owners. October 23, 2009 Expanded search of county records. Found some possible heirs from recorded document. October 30, 2009 Expanded internet search and located an address for Thomas Gray, a possible heir to M.

G. and Lucille Gray. November 2, 2009 Called and spoke with Thomas Gray who said the owners are his parents and that he has

two brothers and two sisters. Discussed lease proposal. He said he would speak to his brothers and sisters and call back.

November 9, 2009 Spoke with Thomas Gray. He said he discussed this with the other family members.

They all agree that the family no longer owns this interest. He said it was supposed to have been conveyed in the 1980’s. He said they would not lease the interest and if necessary would convey the interest as intended in the 80’s.

November 13, 2009 Checked documents of record. Unable to locate a conveyance of this interest. November 17, 2009 Well proposal letter and AFE mailed.


EXHIBIT B


Page 10 of 32

Robert G. Lentz August 5, 2009 Checked office records for information on owner. Nothing found.

Checked area phone directories. Unable to locate a listing for Robert Lentz or Melinda Williams, who own this interest as Joint Tenants With Right of Survivorship. Located listings for another Lentz in the area.

Called. No answer. Left message. August 7, 2009 Called and spoke with a cousin of Robert Lentz, who was able to provide

a phone number for Robert Lentz. Called and spoke with Robert Lentz who said he and Melinda Williams, to whom he is now married, leased this interest to a third party 1-1½ years ago.

August 12, 2009 Checked county records. No lease filed to date. August 20, 2009 Still no lease of record found. September 7, 2009 Called Robert Lentz. No answer. Left message after multiple attempts. September 15, 2009 Still no lease of record found to date. Called Robert Lentz again. Still no

answer. Left message. September 29, 2009 Called owner and set a time to meet in person. October 5, 2009 Met with owner who said he had leased this interest to a third party in

2008 and that the bonus had been paid. No lease of record found to date. October 16, 2009 Still no lease of record found. October 29, 2009 Spoke with owner who continues to maintain he is leased to a third party. November 6, 2009 Still no lease of record found to date. November 13, 2009 No lease of record found. November 17, 2009 Well proposal letter and AFE mailed.


EXHIBIT B


Page 11 of 32

Peggy McClure Lyons The above named party is a possible heir of Annie Ray Presley, (see page 18 of Exhibit B). Efforts to establish the heirship of Annie Ray Presley are ongoing. Therefore, this interest is being named for protection purposes. August 7, 2009 Unable to locate phone numbers. Mailed lease proposal letters to address on old lease. August 26, 2009 Sent second letter by certified mail. September 7, 2009 Received a call from relative of owner. He said he would provide information on the

McClure and Porter families. He does not know about the other possible heirs. September 17, 2009 Received email from relative of owner. He said his mother, who is deceased, was a sister

of Annie Ray Presley. He said he would send information regarding heirship. October 5, 2009 Received family information from relative of owner. Annie Ray Presley died a widow

and had no children. She did have siblings. Still trying to determine heirship. October 15, 2009 New information has been found regarding will and probate. Receive contact

information for Peggy McClure Lyons from another family member. Called. No answer. Left message.

October 20, 2009 Spoke with Peggy Lyons. Discussed lease offer. She said to talk to her brother, James

Curtis McClure. She said he is the spokesman for the family. October 26, 2009 Called James McClure who was unavailable. Left message. October 29, 2009 Spoke with James McClure. He said he still had not had a chance to discuss lease offer

with family but would try to do so in the next few days. He said he would act as spokesman for the family.

October 31, 2009 Received reply from James McClure. He requested different terms. November 4, 2009 Sent email message to James McClure outlining new lease terms. November 5, 2009 Called James McClure. He was unavailable. Left message. November 8, 2009 Exchanged emails with James McClure discussing lease terms. November 13, 2009 Spoke with James McClure. He agreed to lease terms on behalf of himself and other

family members. November 16, 2009 LPR, letter agreement and other related documents being prepared. November 17, 2009 Well proposal letter and AFE mailed.


EXHIBIT B


Page 12 of 32

Mary Inez Gibson Malone September 14, 2009 Checked office records and located contact information for owner. Called.

No answer. Left message. September 18, 2009 Spoke with owner. Discussed lease offer. She said she would discuss it

with her daughters (see Pages 6, 7 & 21 of Exhibit B) and would let us know.

October 7, 2009 Talked to Mary Malone. She said she and her daughters have gotten a


October 12, 2009 Talked to Mary Malone. She said she would lease if we could match the

third party offer. October 22, 2009 Talked to Mary Malone. She said she and her daughters were going to

wait until section is integrated to make a decision. November 2, 2009 Spoke with owner. Explained new terms being offered. She agreed to

lease. November 6, 2009 Lease and related documents being prepared. November 10, 2009 Lease and related documents mailed. November 14, 2009 Called owner. No answer. Left message. November 17, 2009 Well proposal letter and AFE mailed.


EXHIBIT B


Page 13 of 32

James Curtis McClure, Jr. The above named party is a possible heir of Annie Ray Presley, (see page 18 of Exhibit B). Efforts to establish the heirship of Annie Ray Presley are ongoing. Therefore, this interest is being named for protection purposes. August 7, 2009 Unable to locate phone numbers. Mailed lease proposal letters to address on old lease. August 26, 2009 Sent second letter by certified mail. September 7, 2009 Received a call from owner. He said he would provide information on the McClure and Porter

families. He does not know about the other possible heirs. September 17, 2009 Received email from owner. He said his mother, who is deceased, was a sister of Annie Ray

Presley. He said he would send information regarding heirship. October 5, 2009 Received family information from owner. Annie Ray Presley died a widow and had no children.

She did have siblings. Still trying to determine heirship. October 15, 2009 New information has been found regarding will and probate of Annie Ray Presley in Texas.

Documents have been requested. October 16, 2009 Called owner. No answer. Left message. October 19, 2009 Called and spoke to owner. He was in a meeting and could not talk. Asked that information and

lease proposal be sent to him via email. Sent email. October 21, 2009 Spoke to owner. He had not spoken to other family members and said he needed more time. He

said they had received offers from third parties but would not disclose the terms offered. October 26, 2009 Called owner who was unavailable. Left message. October 29, 2009 Spoke with owner. He said he still had not had a chance to discuss lease offer with family but

would try to do so in the next few days. He said he would act as spokesman for the family. October 31, 2009 Received reply from owner. He requested different terms. November 4, 2009 Sent email message to owner outlining new lease terms. November 5, 2009 Called owner. He was unavailable. Left message. November 8, 2009 Exchanged emails with owner discussing lease terms. November 13, 2009 Spoke with James McClure. He agreed to lease terms on behalf of himself and other family

members. November 16, 2009 LPR, letter agreement and other related documents being prepared. November 17, 2009 Well proposal letter and AFE mailed.


EXHIBIT B


Page 14 of 32

Lucinda P. McRoberts The above named party is a possible heir of Annie Ray Presley, (see page 18 of Exhibit B). Efforts to establish the heirship of Annie Ray Presley are ongoing. Therefore, this interest is being named for protection purposes. August 7, 2009 Unable to locate phone numbers. Mailed lease proposal letters to addresse on old lease. August 26, 2009 Sent second letter by certified mail. September 7, 2009 Spoke with the son of another possible heirs of Annie Presley. While he had some information on

other heirs, he knew nothing about Lucinda McRoberts. September 14, 2009 Spoke with another possible heir of Annie Presley. She had no information on Lucinda McRoberts. September 27, 2009 Spoke to another possible heir of Annie Presley who was able to provide contact information for

owner. Called. No answer. Left message. October 5, 2009 Called owner. Still no answer. Left message after multiple attempts. October 15, 2009 New information has been found regarding will and probate of Annie Ray Presley in Texas.

Documents have been requested. October 22, 2009 Spoke to another family member who said that Lucinda McRoberts is in bad health and unable to

take phone calls. Was told that James McClure (see page 13 of Exhibit B) would be making decisions for the family.

October 26, 2009 Called James McClure who was unavailable. Left message. October 29, 2009 Spoke with James McClure. He said he still had not had a chance to discuss lease offer with family

but would try to do so in the next few days. He said he would act as spokesman for the family. October 31, 2009 Received reply from James McClure. He requested different terms. November 4, 2009 Sent email message to James McClure outlining new lease terms. November 5, 2009 Called James McClure. He was unavailable. Left message. November 8, 2009 Exchanged emails with James McClure discussing lease terms. November 13, 2009 Spoke with James McClure. He agreed to lease terms on behalf of himself and other family

members. November 16, 2009 LPR, letter agreement and other related documents being prepared. November 17, 2009 Well proposal letter and AFE mailed.


EXHIBIT B


Page 15 of 32

John Bonar Moore, Heirs September 15, 2009 Checked office records. Located contact information. Called and spoke

with owner’s nephew who said that John Bonar Moore is deceased and they would be filing ancillary probate in Arkansas.

October 4, 2009 Spoke with attorney for estate of owner. He is preparing to file probate. October 22, 2009 Spoke with attorney who said they have started the paperwork for filing a

probate. October 29, 2009 Spoke with owner’s nephew who said they had a better offer from a third

party but would not make a decision at this time. November 6, 2009 Spoke with owner’s nephew who said they were still preparing to file

probate in Arkansas and would not lease at this time. November 13, 2009 No probated filed of record to date. Unable to lease at this time. November 17, 2009 Well proposal letter and AFE amiled.


EXHIBIT B


Page 16 of 32

Mt. Pisgah Baptist Church September 15, 2009 Searched office records. Unable to locate information on church.

Searched area directories. Nothing found. September 24, 2009 Talked to a colleague who is trying to lease this interest in another section.

He believes this interest is the church’s cemetery. He provided contact information for the church’s pastor. Called. No answer. Left message explaining purpose of the call and asked for a return call.

October 2, 2009 Spoke with church representative. Discussed lease. She agreed to terms. October 5, 2009 Lease and related documents being prepared. Scheduled to meet with

church representative to sign lease. October 6, 2009 Church is now reconsidering offer and has refused to sign lease without

further discussions with members. October 8, 2009 Lease delivered to church deacons for their consideration. October 15, 2009 Spoke with church minister. They have decided to lease with a third

party. October 30, 2009 No third party lease of record found to date. November 9, 2009 Still no third party lease found of record. November 17, 2009 Well proposal letter and AFE mailed.


EXHIBIT B


Page 17 of 32

Fred T. Porter, III The above named party is a possible heir of Annie Ray Presley, (see page 18 of Exhibit B). Efforts to establish the heirship of Annie Ray Presley are ongoing. Therefore, this interest is being named for protection purposes. August 7, 2009 Unable to locate phone numbers. Mailed lease proposal letters to address on old lease. August 26, 2009 Sent second letter by certified mail. September 1, 2009 Letter returned as undeliverable. September 14, 2009 Spoke with another possible heir of Annie Presley who was able to provide contact

information on owner. Called. No answer. Left message. September 20, 2009 Called. Still no answer. Left message after multiple attempts. October 15, 2009 New information has been found regarding will and probate of Annie Ray Presley in

Texas. Documents have been requested. October 19, 2009 Called and spoke with wife of owner. Discussed lease offer. She said her husband was

out of town. She said she would have him call. She was able to provide contact information for other family members.

October 23, 2009 Called and spoke with wife of owner who said her husband was working out of town and

to call back next week and talk to her husband. October 28, 2009 Talked to owner who said he would do whatever James Curtis McClure decides. October 31, 2009 Received email from James McClure. He requested different terms than had been

discussed earlier. November 4, 2009 Sent email to James McClure outlining new lease terms. November 5, 2009 Called James McClure. He was unavailable. Left message. November 8, 2009 Exchanged emails with James McClure discussing lease terms. November 13, 2009 Spoke with James McClure. He agreed to lease terms on behalf of himself and other

family members. November 16, 2009 LPR, letter agreement and other related documents being prepared. November 17, 2009 Well proposal letter and AFE mailed.


EXHIBIT B


Page 18 of 32

Annie Ray Presley, Heirs Church of the Incarnation Scottish Rite Hospital for Crippled Children Peggy McClure Lyons Stacy Susan Simpson James Curtis McClure, Jr. Steven Scott Simpson Lucinda P. McRoberts Fred T. Porter, III The above named parties are possible heirs of Annie Ray Presley. Contact has been made with all of the parties and efforts to establish the heirship of Annie Ray Presley are ongoing. Therefore, this interest is being named for protection purposes. November 17, 2009 Well proposal letter and AFE mailed to Annie Ray Presley, Heirs, in care

of James Curtis McClure, Jr.


EXHIBIT B


Page 19 of 32

Scottish Rite Hospital for Crippled Children This interest is one of the devisees of Muriel Ray Freeman, a possible heir of Annie Presley (see page 18 of Exhibit B) August 7, 2009 Unable to locate phone numbers. In search of courthouse records located several old leases

covering this interest. Mailed lease proposal letters to addresses on old leases. August 26, 2009 Sent second set of letters by certified mail. September 7, 2009 Received a call from James McClure, whose father had leased this interest in the 50’s. He said his

mother was a sister of Annie Ray Presley. September 14, 2009 Received a call from Carol Simpson, who said Muriel Freeman Ray, another lessor from the 50’s,

was her aunt, who is now deceased. She said she would send a copy of her aunt’s will and probate of her estate from Dallas County, Texas. She said Muriel Freeman Ray was not married and had no children. She said she thought Annie Ray Presley and Muriel Freeman Ray were cousins. She had no information on the other heirs.

September 28, 2009 Located a Texas probate of the will of Muriel Freeman Ray. No ancillary probate has been filed in

Arkansas. The Texas Scottish Rite Hospital for Children was named as a devisee of Muriel Freeman Ray.

October 4, 30092 Located a phone number for owner. Called and spoke with the Assistant Director who said the

Estate and Foundation department would be responsible for any mineral interest the hospital had. October 6, 2009 Called and spoke to Judi Chapman in the Estate and Foundation Department. She checked and said

she could not find a record that Muriel Freeman Ray had been a donor and would need to do further research.

October 20, 2009 Spoke with Judi Chapman who said they had still been unable to locate information indicating

Muriel Ray had been a donor and that they would have to search their off-site records. She also said she would need to discuss the lease offer with the legal department.

October 29, 2009 Called for Judi Chapman. She was not available. Left message. November 3, 2009 Talked to Judi Chapman. She said they had located information that Muriel Ray had been a donor.

Discussed offer. Explained that there would have to be a letter agreement since Muriel Ray’s will had not been probated in Arkansas. She said she was not sure the hospital would agree to those terms and might want to wait until the will of Muriel Ray was probated in Arkansas.

November 10, 2009 Called Judi Chapman. No answer. Left message. November 17, 2009 Well proposal letter and AFE mailed.


EXHIBIT B


Page 20 of 32

Jon Shaw and Dee Shaw September 14, 2009 Checked office records. Located an address and phone number. Called.

No answer. Left message. September 17, 2009 Received a call from Jon Shaw. Discussed lease offer. He said he had

another offer from a third party but that he was not interested in leasing at this time.

September 29, 2009 Called owner and left message after multiple attempts. October 12, 2009 Called owner’s work number and was told he was off for a few days. October 22, 2009 Called Dee Shaw at work. She was not in. Left message asking her to

return the call. October 26, 2009 Called owner’s home number. Spoke with their daughter who said she

would give her parents a message to call. November 5, 2009 Spoke to Dee Shaw. Made new lease offer. She said she would have her

husband call. November 12, 2009 Called owner. No answer. Left message. Unable to lease at this time. November 17, 2009 Well proposal letter and AFE mailed.


EXHIBIT B


Page 21 of 32

Leslie Gordon Simons September 14, 2009 Called Mary Malone (see Page 12 of Exhibit B) who is mother of owner

and handles her mineral interests. No answer. Left message. September 18, 2009 Talked to Mary Malone. Discussed lease offer. She said she would talk to

Leslie and let us know what they decide. October 7, 2009 Talked to Mary Malone. She said she and her daughters have gotten a


October 12, 2009 Talked to owner. She said she would lease if we could match the third

party offer. October 22, 2009 Talked to owner who said she was still talking to a third party but had not

agreed to lease yet. October 30, 2009 Called owner. No answer. Left message. November 5, 2009 Talked to owner. Offered new terms. Owner agreed to lease. November 7, 2009 Lease and related documents being prepared. November 11, 2009 Lease and related documents mailed. November 17, 2009 Well proposal letter and AFE mailed.


EXHIBIT B


Page 22 of 32

Stacy Susan Simpson This interest is one of the devisees of Muriel Ray Freeman, a possible heir of Annie Presley (see page 18 of Exhibit B) August 7, 2009 Unable to locate phone numbers. In search of courthouse records located several old

leases covering this interest. Mailed lease proposal letters to addresses on old leases. August 26, 2009 Sent second set of letters by certified mail. September 7, 2009 Received a call for James McClure, see page 13 of Exhibit B, whose father had leased

this interest in the 50’s. He said he would provide information on the McClure and Porter families. He does not know about the other possible heirs.

September 14, 2009 Received a call from Carol Simpson, owner’s mother. She said Muriel Freeman Ray,

another lessor from the 50’s, was her aunt and a niece of Annie Ray Presley. She said she would send a copy of her aunt’s will and probate of her estate from Dallas County, Texas. She said Muriel Freeman Ray was not married and had no children. She had no information on the other heirs.

September 28, 2009 Received a copy of the Texas probate of the will of Muriel Freeman Ray. No ancillary

probate has been filed in Arkansas. Stacy Susan Simpson is named as an heir to Muriel Freeman Ray.

September 30, 2009 Called and spoke with Stacy Simpson. Discussed lease offer. She said she would discuss

it with other family member and get back in touch. October 8, 2009 Called. No answer. Left message. October 15, 2009 Spoke with owner who agreed to lease terms. October 19, 2009 Lease and related documents being prepared. October 21, 2009 Lease and related documents mailed. October 26, 2009 Spoke with owner who said she had received the documents and would sign and return

them shortly. November 2, 2009 Spoke with Carol Simpson, owner’s mother. She confirmed that daughter had received

the documents and said she would remind Stacy to sign and return them. November 10, 2009 Called Stacy Simpson. No answer. Left message. November 13, 2009 Status unchanged. Waiting for return of executed documents. November 17, 2009 Well proposal letter and AFE mailed.


EXHIBIT B


Page 23 of 32

Steven Scott Simpson This interest is one of the devisees of Muriel Ray Freeman, a possible heir of Annie Presley (see page 18 of Exhibit B) August 7, 2009 Unable to locate phone numbers. In search of courthouse records located several old

leases covering this interest. Mailed lease proposal letters to addresses on old leases. August 26, 2009 Sent second set of letters by certified mail. September 7, 2009 Received a call for James McClure, see page of Exhibit B, whose father had leased this

interest in the 50’s. He said he would provide information on the McClure and Porter families. He does not know about the other possible heirs.

September 14, 2009 Received a call from Carol Simpson, owner’s mother. She said Muriel Freeman Ray,

another lessor from the 50’s, was her aunt and a niece of Annie Ray Presley. She said she would send a copy of her aunt’s will and probate of her estate from Dallas County, Texas. She said Muriel Freeman Ray was not married and had no children. She had no information on the other heirs.

September 28, 2009 Received a copy of the Texas probate of the will of Muriel Freeman Ray. No ancillary

probate has been filed in Arkansas. Steven Scott Simpson is named as an heir to Muriel Freeman Ray.

September 30, 2009 Called and spoke with Steven Simpson. Discussed lease offer. He said he would discuss

it with other family member and get back in touch. October 10, 2009 Called. No answer. Left message. October 13, 2009 Spoke with owner who agreed to lease terms. October 16, 2009 Lease and related documents being prepared. October 21, 2009 Lease and related documents mailed. October 25, 2009 Spoke with owner who said he had received the documents and would sign and return

them shortly. November 2, 2009 Spoke with Carol Simpson, owner’s mother. She confirmed that Steven had received the

documents and said she would remind him to sign and return them. November 10, 2009 Called Steven Simpson. No answer. Left message. November 13, 2009 Status unchanged. Waiting for return of executed documents. November 17, 2009 Well proposal letter and AFE mailed.


EXHIBIT B


Page 24 of 32

Kenneth J. Trafford, Jr. August 5, 2009 Searched office records. Located contact information for owner. Called.

No answer. Left message. August 20, 2009 Called owner. No answer. Left message. Asked that owner call even if

he is leased to a third party. September 2, 2009 Mailed lease proposal letter to address in files. September 15, 2009 Searched internet for any additional contact information. Nothing found. September 21, 2009 Called. No answer. Left message after multiple attempts. September 30, 2009 Mailed second lease proposal letter. October 10, 2009 Drove to last known address. No one was there. Property appears to be

vacant. Left message taped to front door asking resident to call. Spoke to a neighbor. He did not know owner of property but thought he might be deceased.

October 15, 2009 Located the niece of owner through an internet search. She said her uncle,

Kenneth Trafford is not deceased. She was unable to provide contact information for him but did provide a phone number for Kenneth Trafford’s father. Called Joe Trafford. No answer. Left message.

October 21, 2009 Spoke with owner’s father. He said Kenneth had told him that he was not

interested in leasing at this time but he would ask Kenneth to call to discuss lease proposal.

November 5, 2009 Called owner’s father. No answer. Left message. November 12, 2009 Status unchanged. Unable to lease at this time. November 17, 2009 Well proposal letter and AFE mailed.


EXHIBIT B


Page 25 of 32

Melinda Williams August 5, 2009 Checked office records for information on owner. Nothing found.

Checked area phone directories. Unable to locate a listing for Robert Lentz or Melinda Williams, who own this interest as Joint Tenants With Right of Survivorship. Located listings for another Lentz in the area.

Called. No answer. Left message. August 7, 2009 Called and spoke with a cousin of Robert Lentz, who was able to provide

a phone number for Robert Lentz. Called and spoke with Robert Lentz who said he and Melinda Williams, to whom he is now married, leased this interest to a third party 1-1½ years ago.

August 12, 2009 Checked county records. No lease filed to date. August 20, 2009 Still no lease of record found. September 7, 2009 Called Robert Lentz. No answer. Left message after multiple attempts. September 15, 2009 Still no lease of record found to date. Called Robert Lentz again. Still no

answer. Left message. September 29, 2009 Called Robert Lentz and set a time to meet in person. October 5, 2009 Met with Robert Lentz who said he and Melinda Williams had leased this

interest to a third party in 2008 and that the bonus had been paid. No lease of record found to date.

October 16, 2009 Still no lease of record found. October 28, 2009 Status unchanged. No lease of record found to date. November 9, 2009 Called owner. No answer. Left message. November 17, 2009 Well proposal letter and AFE mailed.


EXHIBIT B


Page 26 of 32

BP America Production Company BP America Production Company owns a working interest in the following Oil and Gas leases recorded in Conway County, Arkansas:

1) Edward F. Underwood, a/k/a Edward Underwood to Strata Minerals, Inc., dated April 28, 2006 and recorded in Oil and Gas book 123 at page 369.

2) Eddie F. Underwood, a/k/a Edward F. Underwood, a/k/a Edward Underwood and Shirley

Underwood, a/k/a Shirley L. Underwood to Strata Minerals, Inc., dated April 28, 2006 and recorded in Oil and Gas book 123 at page 373.

3) Allan Gray and Karri Gray to Chesapeake Exploration Limited Partnership dated March

2, 2006 and recorded in Oil and Gas book 118 at page 720.

4) William Clay Brazil and Suzanne Brazil to Chesapeake Exploration Limited Partnership dated February 1, 2006 and recorded in Oil and Gas book 121 at page 174.

5) James Edward Brazil and Margaret M. Brazil to Chesapeake Exploration Limited

Partnership dated February 1, 2006 and recorded in Oil and Gas book 121 at page 180.

6) Deloris Jean Stracener to Chesapeake Exploration Limited Partnership dated September 28, 2006 and recorded in Oil and Gas book 133 at page 707.

7) Ida Mae Foshee to David H. Arrington Oil & Gas, Inc., dated September 28, 2006 and

recorded in Oil and Gas book 135 at page 59.

8) Teresa L. Vincent and Kirk D. Vincent to David H. Arrington Oil & Gas, Inc., dated September 20, 2006 and recorded in Oil and Gas book 135 at page 310.

9) Paschall Properties, Inc. to David H. Arrington, dated January 9, 2007 and recorded in

Oil and Gas book 141 at page 349.

10) Todd D. Limke to David H. Arrington, dated January 9, 2007 and recorded in Oil and Gas book 141 at page 355.

11) Rod D. Limke to David H. Arrington, dated January 9, 2007 and recorded in Oil and

Gas book 141 at page 391.


EXHIBIT B


Page 27 of 32

BP America Production Company (Continued from Page 26)

12) The Scott D. Limke 2005 Revocable Trust, dated April 1, 2005, Scott D. Limke, Trustee, to David H. Arrington, dated January 9, 2007 and recorded in Oil and Gas book 141 at page 427.

13) Norbert A. Gunderman, Sr. and Carlene Gunderman to Strata Minerals, Inc. dated

February 21, 2006 and recorded in Oil and Gas book 121 at page 670.

14) Susan P. Paschall, Trustee of the Susan P. Paschall Revocable Intervivos Trust No. 1, dated December 23, 1993, Amended April 15, 2005 to Stonehenge, L. L. C., dated January 9, 2007 and recorded in Oil and Gas book 141 at page 283.

15) Larry J. Smith and Shirley A. Smith to David H. Arrington Oil & Gas, Inc., dated

January 27, 2007 and recorded in Oil and Gas book 142 at page 254.

16) Guy G. Luneau and Joan J. Luneau to Strata Minerals, Inc. dated December 2, 2005 and recorded in Oil and Gas Book 117 at page 332.

17) Scout Royalty Corp. to Chesapeake Exploration Limited Partnership dated January 6,

2006 and recorded in Oil and Gas Book 115 at page 440.

Chesapeake Exploration, L. L. C. assigned an undivided interest to BP America Company. Said assignment is effective July 1, 2008, and recorded in Oil and Gas book 171 at page 610. November 17, 2009 Well proposal letter and AFE mailed.


EXHIBIT B


Page 28 of 32

Ceres Resource Partners, LP Ceres Resource Partners, LP owns a working interest in the following Oil and Gas leases recorded in Conway County, AR:

1) Darla A. Hodge, as Attorney-in-Fact for John B. Moore, a/k/a John Bonar Moore to Triple A, L. L. C., dated August 8, 2008 and recorded in Oil and Gas book 169 at page 1.

2) Mary Moore Cook to Triple A, L. L. C., dated August 8, 2008 and recorded in Oil and

Gas book 169 at page 138. Through various assignments, Ceres Resource Partners, LP owns an undivided working interest in the above lease. November 17, 2009 Well proposal letter and AFE mailed.


EXHIBIT B


Page 29 of 32

Chesapeake Exploration, L. L. C. Chesapeake Exploration, L. L. C. owns a working interest in the following Oil and Gas leases recorded in Conway County, Arkansas:

1) Edward F. Underwood, a/k/a Edward Underwood to Strata Minerals, Inc., dated April 28, 2006 and recorded in Oil and Gas book 123 at page 369.

2) Eddie F. Underwood, a/k/a Edward F. Underwood, a/k/a Edward Underwood and Shirley

Underwood, a/k/a Shirley L. Underwood to Strata Minerals, Inc., dated April 28, 2006 and recorded in Oil and Gas book 123 at page 373.

3) Allan Gray and Karri Gray to Chesapeake Exploration Limited Partnership dated March 2, 2006 and recorded in Oil and Gas book 118 at page 720.

4) William Clay Brazil and Suzanne Brazil to Chesapeake Exploration Limited Partnership dated February 1, 2006 and recorded in Oil and Gas book 121 at page 174.

5) James Edward Brazil and Margaret M. Brazil to Chesapeake Exploration Limited Partnership dated February 1, 2006 and recorded in Oil and Gas book 121 at page 180.

6) Deloris Jean Stracener to Chesapeake Exploration Limited Partnership dated September 28, 2006 and recorded in Oil and Gas book 133 at page 707.

7) Ida Mae Foshee to David H. Arrington Oil & Gas, Inc., dated September 28, 2006 and recorded in Oil and Gas book 135 at page 59.

8) Teresa L. Vincent and Kirk D. Vincent to David H. Arrington Oil & Gas, Inc., dated

September 20, 2006 and recorded in Oil and Gas book 135 at page 310.

9) Paschall Properties, Inc. to David H. Arrington, dated January 9, 2007 and recorded in Oil and Gas book 141 at page 349.

10) Todd D. Limke to David H. Arrington, dated January 9, 2007 and recorded in Oil and

Gas book 141 at page 355.

11) Rod D. Limke to David H. Arrington, dated January 9, 2007 and recorded in Oil and Gas book 141 at page 391.


EXHIBIT B


Page 30 of 32

Chesapeake Exploration, L. L.C. (Continued from Page 29)

12) The Scott D. Limke 2005 Revocable Trust, dated April 1, 2005, Scott D. Limke, Trustee, to David H. Arrington, dated January 9, 2007 and recorded in Oil and Gas book 141 at page 427.

13) Norbert A. Gunderman, Sr. and Carlene Gunderman to Strata Minerals, Inc. dated

February 21, 2006 and recorded in Oil and Gas book 121 at page 670.

14) Susan P. Paschall, Trustee of the Susan P. Paschall Revocable Intervivos Trust No. 1, dated December 23, 1993, Amended April 15, 2005 to Stonehenge, L. L. C., dated January 9, 2007 and recorded in Oil and Gas book 141 at page 283.

15) Larry J. Smith and Shirley A. Smith to David H. Arrington Oil & Gas, Inc., dated January 27, 2007 and recorded in Oil and Gas book 142 at page 254.

16) W. J. Switzer, a/k/a W. P. Switzer, individually and as sole heir of Mahallie Switzer, a/k/a Mahallie Payne Bennett-Switzer to Chesapeake Exploration, L. L. C., dated October 24, 2008 and recorded in Oil and Gas book 175 at page 284.

17) John D. Morrow and Margaret A. Morrow to Chesapeake Exploration, L. L. C. , dated October 28, 2008 and recorded in Oil and Gas book 175 at page 297.

18) Linda Kay Hubbard, formerly Linda Kay Ashlock, to Chesapeake Exploration, L. L. C., dated December 10, 2008 and recorded in Oil and Gas book 177 at page 532.

19) Dokes Revocable Trust, John H. Dokes, Trustee, and Sylvia M. Dokes, Trustee, to Chesapeake Exploration, L. L. C., dated August 28, 2008 and recorded in Oil and Gas book 177 at page 595.

20) Loyd G. Martin to Chesapeake Exploration Limited Partnership, dated December 14, 2005 and recorded in Oil and Gas book 114 at page 181.

21) Charles E. McGhee and Evelyn McGhee to Chesapeake Exploration Limited Partnership, dated January 24, 2006 and recorded in Oil and Gas book 115 at page 601.

22) Remora Oil Company to Chesapeake Exploration, LLC dated August 6, 2009 and recorded in Oil and Gas Book 188 at page 73.


EXHIBIT B


Page 31 of 32

Chesapeake Exploration, L. L.C. (Continued from Page 30)

23) Vivian Rose Lane Counts to Chesapeake Exploration, LLC dated October 9, 2008 and recorded in Oil and Gas Book 187 at page 82.

24) Robert Paul McRae to Chesapeake Exploration, LLC dated October 9, 2008 and recorded

in Oil and Gas Book 187 at page 77.

25) Guy G. Luneau and Joan J. Luneau to Strata Minerals, Inc. dated December 2, 2005 and recorded in Oil and Gas Book 117 at page 332.

26) James M. Maxwell and Mary Jean Maxwell to Chesapeake Exploration, LLC dated September 29, 2008 and recorded in Oil and Gas Book 173 at page 429.

27) James Luther Williams and Diane Williams to Chesapeake Exploration, LLC dated July 10, 2008 and recorded in Oil and Gas Book 173 at page 542.

28) Scout Royalty Corp. to Chesapeake Exploration Limited Partnership dated January 6, 2006 and recorded in Oil and Gas Book 115 at page 440.

Leases #1, 2, 7, 8, 9, 10 11, 12, 14, 15, & 25: Through various assignments, Chesapeake Exploration, L. L.C. now owns an undivided working interest in these leases.

Chesapeake Exploration Limited Partnership, by affidavit of Identity and Corporate Successorship, is now Chesapeake Exploration, L. L. C. effective August 6, 2007 and recorded in Oil and Gas book 151, page 239. November 17, 2009 Well proposal letter and AFE mailed.


EXHIBIT B


Page 32 of 32

Petrohawk Properties, L. P. Petrohawk Properties, L. P. owns a working interest in the following Oil and Gas leases recorded in Conway County, AR:

1) Thomas Gray and Geneva Gray to Griffith Land Services, Inc., dated March 17, 2005 and recorded in Oil and Gas book 101 at page 602.

2) Kenneth Miller and Anna Miller to Griffith Land Services, Inc., dated October 12, 2005

and recorded in Oil and Gas book 109 at page 260.

Leases #1 & 2: Through various assignments, Petrohawk Properties, L. P. now owns an undivided working interest in these leases. November 17, 2009 Well proposal letter and AFE mailed.

EXHIBIT “C”Applicant’s statement regarding Operating Agreement

The applicant requests incorporation of the Model Form Joint Operating Agreement

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

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

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

insertions, if applicable:

NONE

846-2009-12 Applications Archive/2009/December… · JAMES E. WEST PHILLIP E. NORVELL * DALE...

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Transcript of 846-2009-12 Applications Archive/2009/December… · JAMES E. WEST PHILLIP E. NORVELL * DALE...