ADMINISTRATIVE APPLICATION...

j»)ATEIN 1 \-6-n

SUSPENSE ENGINEER /

\2^C

LOGGED IN ' 'APP NO.

ABOVE THIS LINE FOR DIVISION USE ONLY

NEW M E X I C O O I L CONSERVATION DIVISION - Engineering Bureau -

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

•• O • I J - s j H ADMINISTRATIVE APPLICATION CHECKLIST

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

Appl icat ion A c r o n y m s : [NSL-Non-Standard 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-Water f lood 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 nc rease ]

[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 I

[1] 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 M CTB • PLC • PC • OLS • O

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

[D] Other: Specify

[2] NOTIFICATION REQUIRED TO: - Check Those Which Apply, or Does Not Apply [A]

[B]

[C]

[D]

[E]

[F]

LX] Working, Royalty or Overriding Royalty Interest Owners

I I Offset Operators, Leaseholders or Surface Owner

I I Application is One Which Requires Published Legal Notice

Notification and/or Concurrent Approval by BLM or(|SLy) U.S. Bureau of Land Management - Commissioner of Public Lands, State Land Office

For all of the above, Proof of Notification or Publication is Attached, and/or,

Waivers are Attached

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

[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.

Miriam Morales

Print or Type Name Prod'-lCti0" Analyst

Title Date

[email protected] e-mail Address

District I 1625 N. French Drive, Hobbs, NM 88240 District II 1301 W. Grand Ave, Artesia, NM 88210 District III 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, New Mexico 87505

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.

A P P L I C A T I O N F O R S U R F A C E C O M M I N G L I N G I ( D I V E R S E O W N E R S H D ? ) Yates Petroleum Corporation

105 South Fourth St. Artesia, NM

OPERATOR NAME: OPERATOR ADDRESS: APPLICATION TYPE:

O Pool Commingling ^ Lease Commingling •Pool and Lease Commingling

LEASE TYPE: • Fee M State • Federal

•Off-Lease Storage and Measurement (Only if not Surface Commingled)

Is this an Amendment to existing Order? OYes ^ N o If "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 E3Yes DNo

(A) POOL COMMINGLING 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? dYes QNo (3) Has all interest owners been notified by certified mail of the proposed commingling? dYes ONO. (4) Measurement type: OMetering Q Other (Specify) (5) Will commingling decrease the value of production? OYes CUNo If "yes", describe why commingling should be approved

(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. Parkway; Bone Spring 49622 (2) Is all production from same source of supply? ^Yes QNo (3) Has all interest owners been notified by certified mail of the proposed commingling? (4) Measurement type: ^Metering • Other (Specify)

f^Yes DNo

(C) POOL and L E A S E COMMINGLING 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 MEASUREMENT Please attached sheets with the following information

(1) Is all production from same source of supply? • Yes L~]No (2) Include proof of notice to all interest owners.

(E) ADDITIONAL INFORMATION (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 the infonnation abov&is true and complete to the best of my knowledge and belief.

S I G N A T U R E ^ ^ Z ^ . ^ s£~^&>i^M<7 TITLE:_Production Analyst

TYPE OR PRINT NAME Miriam Morales TELEPHONE NO.:_(575) 748-1471

E-MAIL ADDRESS: mmorales(a), vatespetrolem.com

Submit 1 Copy To Appropriate District S ta te o f N e w M e x i c o Office Disf.-ict I - (575) 393-6161 Energy, Minerals and Natural Resources 1625 N. French Dr., Hobbs, NM 88240

mTLxs 'Xt i lNM 882.0 OIL CONSERVATION DIVISION District in-(505) 334-6178 1220 South St. Francis Dr. 1000 Rio Brazos Rd., Aztec, NM 87410 „ „

District iv - (505) 476-3460 Santa Fe, NM 87505 1220 S. St. Francis Dr., Santa Fe, NM 87505

Form C-103 Revised August 1, 2011




WELL API NO. 30-015-38576




5. Indicate Type of Lease STATE Kl FEE •




6. State Oil & Gas Lease No.

SUNDRY NOTICES AND REPORTS ON WELLS (DO NOT USE THIS FORM FOR PROPOSALS TO DRILL OR TO DEEPEN OR PLUG BACK TO A DIFFERENT RESERVOIR. USE "APPLICATION FOR PERMIT" (FORM C-101) FOR SUCH PROPOSALS.)

1. TypeofWell: Oil Well [gl Gas Well • Other

7. Lease Name or Unit Agreement Name

Anthill AAK State Com

SUNDRY NOTICES AND REPORTS ON WELLS (DO NOT USE THIS FORM FOR PROPOSALS TO DRILL OR TO DEEPEN OR PLUG BACK TO A DIFFERENT RESERVOIR. USE "APPLICATION FOR PERMIT" (FORM C-101) FOR SUCH PROPOSALS.)

1. TypeofWell: Oil Well [gl Gas Well • Other 8. Well Number 3H

2. Name of Operator Yates Petroleum Corporation

9. OGRID Number 025575

3. Address of Operator 105 S. Fourth Street Artesia, NM 88210

10. Pool name or Wildcat Parkway; Bone Spring

4. Well Location

Unit Letter P : 560 feet from the S line and 330 feet from the E line

Section 2 Township 20S Range 29E NMPM Eddy County

• . \\.Elevation(ShowwhetherDR,RKB,RT,GR,etc.) * •" ' • f . f y f * r ' 3 3297'GR

12. Check Appropriate Box to Indicate Nature of Notice, Report or Other Data

NOTICE OF INTENTION TO: SUBSEQUENT.REPORT OF: PERFORM REMEDIAL WORK • PLUG AND ABANDON • REMEDIALWORK • ALTERING CASING • TEMPORARILY ABANDON • CHANGE PLANS • COMMENCE DRILLING OPNS.D PANDA • PULL OR ALTER CASING • MULTIPLE COMPL • CASING/CEMENT JOB • DOWNHOLE COMMINGLE •

OTHER: Surface/ Lease Commingle oil only OTHER: • 13. Describe proposed or completed operations. (Clearly state all pertinent details, and give pertinent dates, including estimated date

of starting any proposed work). SEERULE 19.15.7.14 NMAC. For Multiple Completions: Attach wellbore diagram of proposed completion or recompletion.

Yates Petroleum respectfully requests administrative approval to Surface/Lease Commingle oil only the following wells:

Anthill AAK State Com #2H Parkway; Bone Spring Sec. 2-T20S-R29E St. Lease #LG-2041 API #30-015-38575 Eddy County, NM

Anthill AAK State Com #3H Parkway; "Bone Spring Sec. 2-T20S-R29E St. Lease #LG-4525 API #30-015-38576 Eddy County, NM


The battery is located at the Anthill State Com #2H. Please see attached plats and site security diagram. ine owners'nTpJs diversified^All owner's notifications and waivers are attached.

Oil Measurement Each of the wells will be equipped with continuously metering separators for oil production prior to oil being commingled for sales at the Anthill #2H. Total sales/production will be allocated back to each individual well using the metered(daily well tests)volumes. Metered volumes will be compared to total battery volumes daily and monthly for accuracy. Any vapor recovery gas shall be included in this application.

Estimated daily oil production for Anthill #2 is 300 bbls and for the Anthill #3H and 4H is 460 bbls. The gravity for all three wells is 42.0.

The purpose of the Surface Lease Commingle is in the interest of conservation, economic feasibility, the reduction of environmental impact area, and overall emissions. It will not result in reduced royalty or improper measurement of production. Without approval for utilizing the same battery, it will become necessary to build separate facilities for each well. This will greatly increase costs and shorten the economic life of all the wells.

1 hereby certify that the infonnation above is true arid complete to the best of my knowledge and belief.

SIGNATURE J ' / f Z l ^ S C j ^ / ^ TITLE_Production Analyst DATE 7 ^ ^ j 7

Type or print name Miriam Morales For State Use Only

APPROVED BY: Conditions of Approval (if any):

E-mail address: mmorales(a).vatespetroleuiTi.com PHONE: 575-748-4200

TITLE DATE

Diwnctl 1625 N French Dr, Hoobj. NM 88240 Phone (575) 393-6161 Fax (575)393-0720 Dislncl 11 811 S First St, Ajlesa. NM 88210 Phone (575) 748-1283 Fax (575)748.9720 Diana 111 1000 Rio Bnua Rood. A a « . NM 87410 Phone (505) 334-6178 Fax (SOS) 334-6170 DtsmctlV 1220 S Si Fmncn Dr. Sana Fe, NM 87505 Phone (505)476-3460 Fax (505)476-3462

Su

State of New Mexico Energy, Minerals & Natural Resourc :s De e trn iit 2012

• OIL CONSERVATION DM! ilfljj ARJESIAJ

1220 South St. Francis Dr 1

Santa Fe,NM 87505

RECEDED Form C-102 Revised August 1,2011

imit one copy to appropriate District Office

jS AMENDED REPORT

WE LL LOCATION AND ACREAGE DEDICATION PLAT 1 API Number

30-015-38575

1 Pool Code 3 Pool Nome

49622 Parkway; Bone Spring 4 Property Code

38544

5 Property Name f WeU Number",

'OGRID No.

025575 Yates Petroleum Corporation ' Elevation

3303'GR

"> Surface Location UL or lot DO.

I Section Township

f^20Svff Range

29E Lot Idn

! Feet from the

1980 North/South line

South Feet from the

330 East/West line

East County

Eddy

" Bottom Ho e Location H "Different From Surface UL or lot no.

L Section

2 Township

20S Range

29E LotIdn Feet from the


South Feet from the

361 East/West line

West County

Eddy 1 1 Dedicated Acres

160 " Joint or Infill 1 4 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.

Sur-fate

" OPERATOR CERTIFICATION / hertby certify that the information uxttamed hertm a true catdcomplete

to the best of my knowledge CBXJ belief, aid lhat this organization either

cw« a working interest or wdccaeJ mineral interest in the land mchtdtttg

the proposed bottom hok hcalto/i or has a right lo dnll this well at this

location pttrsuem to a contractmih an owner cfsuch a mineral or working

interest, orfoa vohmlarypool ig agrecmaA.or a comptiLcry poolnrg order

Tuly 19,20.2

Signature ^ 0ate

Tina Huerta Printed Name

tmahfavatcso«roteum com E-mail Address

"SURVEYOR CERTIFICATION / hereby certify thai the well location shown on this plat

was plottedfrom field notes ofactual surveys made by

me or under my supervision, and lhat the same is true

and correct to the best of my belief

Date of Survey

Signature and Seal of Professional Surveyor

Certificate Number

PfcM»:<5©5) F»:(505) 74W720 Disgjct in

!CO0 Rio 3rs»s RS., Asse, NM 17410 Ftor.;:<;o;) 334-417S F«x:<5C5) 334-S170

District IV

1220 S. St Fnsscis Dr.. Sam F*. NM S7505 Phos«:0OS) 475-3470 Fsx:(30i) 47*>3462

1220 S. St Francis Dr.

Santa Fe. NM 87505

WILL LOCATION AND ACREAGE DEDICATION PLAT l . APINwsSMr 2. Poo! Cose 3. PeeiNass

30-015-3S576 49622 PARKWAYiBONE SPRING

4. Pvopeny Code 5. Ffc >»rty Nasi* i . W«U No.

38544 ANTMLL AAK STATE COM 003K

7. OGRID No. S. Operator Nur.e 9. Elevation

25575 YATES PETROLEUM CORPORATION 3297

10. Surface Location UL - Let

? Ssctior.

2 20S FcKE*

29E Lot Ids Fsss Frorr.

560 N/S Lis*

S F«t From

330 Lifts

E Coisay

EDDY

11. Bottom Hole Location If Dil Terent From Surface UL-Lot

M Seettea

T

Towcsfeip

20S 29E Lot Lis

M Feet Fiws

760

N'S Lias

S Fsst Froffi

330 EAV Lte

W Coasry

EDDY

12. imkma Acta

mm 13. Joist« teal! 14. Cer.w>Iidi:ior« Cods 15. QfStf Ko.

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

OPERATOR CERTIFICATION I hereby certify that the information contained herein Is true and complete io the best of my knowledge and belief, and thai tht organization either owns a working interesi or unleased mineral interest in the land including ike proposed bottom hole locstionfs) or has a right io drill this well as this location pursuant to a contrast with an owner of such a mineral or working interest, or io a voluntary pooling agreement or a compulsory pooling order heretofore entered by the dh'ision

E-Stgned By: Monti Sanders

Tide:

Date: 3/22/2011

SURVEYOR CERTIFICATION / hereby certify that the well location shown on this plat was plotted from field notes of actual surveys made by me or under my- supervision, and thai ike same is true and correct io the best of my belief-Surveyed By: Gary Jones Date of Survey: 1/24/2011 Certificate Number 7977

DISTRICT I 1625 N. French Dr.. Hobbs. KM BB240 Phone (675) 393-6161 Paa: (676) 393-0720

DISTRICT I I 1301 V. Grand Avenue, Arteela. Nal BB2.10 Phone (070) 740-1283 Pel: (675) 740-0720

DISTRICT III 1000 Rio Brazos Rd., Aztec, NM 67410 Phone (605) 334-6178 Pax: (605) 334-6170

DISTRICT IV 1220 S. St Freneia Dr., Santa Fe, NU 67505 Phone (B05) 476-3460 Pal: (505) 470-3462

State o f New Mexico Energy , M i n e r a l s a n d N a t u r a l Resources D e p a r t m e n t

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 August 1, 2011

Submi t one copy to appropr ia te Di s t r i c t Off ice

• AMENDED REPORT

API Number

30-013- 40731 Pool Code Pa.rK^0<XM Pool Name

-mA4e4t /2nd Bone Spring Sand Property Code Property Name

ANTHILL "AAK" STATE COM Well Number

4H OGRID No.

025575 Operator Name

YATES PETROLEUM CORP. Elevation

3296

Surface Location

U l or lot No.

P Section

2 Township

20 S Range

29 E Lot Idn Feet f rom the


SOUTH Feet f rom the

330 East/West line

EAST County

EDDY

Bottom Hole Location If Different From Surface U l or lot No.

M Section

2 Township

20 S Range

29 E Lot Idn Feet f rom the


SOUTH Feet f rom the

330 East/West line

WEST County

EDDY Dedicated Acres

160

Joint or I n f i l l 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

I I + I

P r o j e c l f A r e a

T

I I I I

T I I

I P r o d u c t i o n Zone

T

T

PROPOSED BOTTOM HOLE LOCATION

330'

I I I I I I

. + Penetration| Point 435' FSL & 821' FEL

I I I

- W 104*03'11.44" I kiuc.tjv.r_ N 5B0850.53 i NMSrJCt. - 6 2 7 6 , 5 0 9 |

(NAD-83) |

r

SURFACE LOCATION Lat - N 32 ,35"47.06"

Long n W 1Qjaa.'A7.35' N 58082 9.36 E 63224 2.31

NMSPCE-

UNAD-83)

-4628.32

OPERATOR CERTIFICATION / hereby ce r t i fy that the in format ion

contained herein is true and complete to the best of my knowledge and belief, and that this organization either owns a working interest or unleased mineral interest i n the land including the proposed bottom hole location or has a right to d r i l l this well at this location pursuant to a contract w i t h an owner of such a mineral or working interest, or to a voluntary pooling agreement or a compulsory pooling order heretofore entered by the division.

9 / 1 4 / 1 2 S i g n a t u r e

T r a v i s Hahn Sate

Printed Name [email protected] E m a i l AddreBS

SURVEYOR CERTIFICATION

/ hereby certify that the well locotion shown

on this plot was plotted from field notes of

actual surveys made by me or under my

supervisor and that the same is true and

correct to the best of my belief

Certificate N3*» Con "CT Jones 7977

BASIN SURVEYS 27197

I

M A R T I N Y A T E S , I I I 1 9 1 2 - 1 9 B 5

F R A N K W. Y A T E S 1 9 3 6 - 1 9 8 6

S . P Y A T E S 1 9 1 4 - 2 D O a

T E 5 PETROLEUM EDRPDRHTIDN

1 0 5 S O U T H F O U R T H S T R E E T

A R T E S I A , N E W M E X I C O B B 2 1 0 - 2 1 I B

• T E L E P H O N E ( 5 7 5 ) 7 4 B - 1 4 7 1

J • H N A . Y A T E S C H A I R M A N O F T H E B O A R D

J D H N A , Y A T E S J R . P R E S I D E N T

J A M E S S . B R O W N C H I E F O P E R A T I N G O F F I C E R

J D H N D . P E R I N I C H I E F F I N A N C I A L O F F I C E R

J O R G E S . M E N D O Z A C H I E F A D M I N I S T R A T I V E O F F I C E R

December 14, 2012

RE: Surface Lease Commingle oil only Anthill AAK State Com #2H, 3H, & 4H Eddy County, New Mexico

Dear interest owner,

Yates Petroleum is notifying you of an application to Surface Lease Commingle the following wells:


Anthill AAK State Com #3H Parkway; Bone Spring Sec. 2-T20S-R29E St.. Lease #LG-4525 • API #30-015-38576 Eddy County, NM


The battery is located at the Anthill State Com #2H. The ownership is diversified.

Oil Measurement Each of the wells will be equipped with continuously metering separators for oil production prior to oil being commingled for sales at the Anthill #2H. Total sales/production will be allocated back to each individual well using the metered (daily well tests) volumes. Metered volumes will be compared to total battery volumes daily and monthly for accuracy. Any vapor recovery gas shall be included in this application.


The purpose of the Surface Lease Commingle is in the interest of conservation, economic feasibility, the reduction of environmental impact area, and overall emissions. It will not result in reduced royalty or improper measurement of production. Without approval for utilizing the same battery, it will become necessary to build separate facilities for each well. This will greatly increase and shorten the economic life of all the wells.

If you have any questions, please contact me at (575) 748-4200 (direct line).

Sincerely,

Miriam Morales Production Analyst

I hereby approve this application

K A T H Y H . P O R T E R D E N N I S G . K I N S EY S E C R E T A R Y T R E A S U R E R

Tuesday, January 29, 2013 Well Selection Criteria Quick Print opno = 25575 and WH_SEC = 2 and WH_TWPN = 20 and WH_TWPD Like 'S' and WH_RNGN = 29 and WH_RNGD Like 'E'

Page 1

API Well # Well Name and No. Operator Name Typ Stat County Surf UL Sec Twp Rng Ft N/S Ft E/W UlCPrmt Lst Insp Dt

30-015-38575-00-00 ANTHILL AAK STATE COM 002H

^Onm1? F-r-h'i ifi iff 'M'ltr+H-1- WS-™1"1- mr-

YATES PETROLEUM CORPORAT

YATE3 PETHULEUM UUHPOt-

30-015-40731 -00-00 ANTHILL AAK STATE COM 004H

30-015-38576-00-00 ANTHILL AAK STATE COM 003H



O

O

O

A

A.

Eddy

N Eddy

N Eddy

S

- 9 -

I

-e-20 s

-_f>6-

29 E 1980S

00 E -C00 C .

330 E

3150 6 -

12/27/2012

S

S

20 S

20 S

29 E 435 S

29 E 560 S

330 E

330 E

30-015-38575-00-00

Production Summary

YATES PETROLEUM CORPORATION ANTHILL AAK STATE COM No 002H

Eddy

(16 Month Default) 5 Year Data

Specify Beginning Date for Summary... (9/29/2011 1/29/2008

Months Since Production > Zero:

Date of Last Production Report: 2

Production Pool(s) j Oil Prod ' Gas Prod j Wtr Prod I Days Prod . Rpt Date ' I 771/20121 3ARKWAY;B0NE SPRING i 135831 157071 14390! 21 . Rpt Date ' I 771/20121

3ARKWAY;B0NE SPRING \ 18082! 254631 14534s 31 ! 8/1/2012! 3ARKWAY;B0NE SPRING 13800, " 27433\ 14058 s 30 ! 9/1/20121

3ARKWAY;B0NE SPRING 11792' 27725\ 12312! 31 _ ! 10/1/2012' 3ARKWAY,B0NE SPRING" 8734 23203 "10634 30" " 11/1/2012 J

Injection Pool(s) - ' ... w t r lnJ • C02 Inj j Gas Inj Other In) Days Inj Prod Date > Rpt Inj psi 3ARKWAY;B0NE SPRING 0 0 0 0 21; 7/1/2012! °i DARKWAY;BONE SPRING " 0 0 0! 0 31! 8/1/2012, 0 ; ' 3ARKWAY;B0NE SPRING 0 0 0 30 9/1/2012! 0 3ARKWAY;B0NE SPRING \. 9! 0 0 0 31 i 10/1/2012 S 0 3ARKWAY:BONE SPRING " V oi Oi Oi 0 30! 11/1/2012! 0

Total Volumes for Above Filtered Recordset... ' Oil Total' f £5.991

Water Inj Total: m m m m m r C02 Inj Total-

Gas Total: | 119.531 Water Total:) R5.928

Gas Inj Total- Other Inj Total:

•-Double-Glick.on i'5 YearjData'sLabel-Abovejto.Automaticallyft Double-Click on '(16 Month Default)' Label to Re-Filter to 16 Months!

w. 'ETROLEUM CORPORATION

105 South 4 t h Street * Artesia, NM 88210 (575)-748-1471

-Keith Hutchens July,2012

Anthill AAK ST Com # 2H 1980' FSL & 330' FEL * Sec 2 - T20S R29E * Unit L

Eddy County, NM API -3001538575

N

V1= Valve Closed V2= Valve Opened

WT WT

Ovi

This diagram is subject to the Yates Petroleum Corporation August 1983 Security Plan which is on file at 105 South 4th Street, Artesia, NM

M A R T I N Y A T E S , 111 1 9 1 2 - 1 9 B 5

F R A N K W. Y A T E S 1 9 3 6 - 1 9 B 6

S . P Y A T E S 1 9 1 4 . - 2 D D B

T E 5 PETROLEUM CDRPDRRTIDN

1 D 5 S O U T H FOURTH STREET

A R T E S I A , N E W M E X I C O B S 2 1 0 - 2 1 1 8

T E L E P H O N E ( 5 7 5 ) 7 4 B - 1 4 7 1

J O H N A . Y A T E S C H A I R M A N O F T H E B O A R D

J O H N A . Y A T E S J R . P R E S I D E N T


J O H N D. P E R I N I C H I E F F I N A N C I A L O F F I C E R


December 14, 2012








Oil Measurement Each of the wells will be equipped with continuously metering separators for oil production prior to oil being commingled for sales at the Anthill #2H. Total sales/production will be allocated back to each individual well using the metered (daily well tests) volumes. Metered volumes will be compared to total battery volumes daily and monthly for accuracy. Any vapor recovery gas shall be included in this application.





D E N N I S Q . K I N S EY T R E A S U R E R


K A T H Y H'. P O R T E R S E C R E T A R Y '

M A R T I N Y A T E S , 111 1 9 1 2 - 1 9 8 5

F R A N K W. Y A T E S 1 9 3 6 - 1 9 B 6

S . P Y A T E S 1 9 1 4 . - 2 D D B

T E S PETROLEUM CDRPDRRTIDN

I D S S O U T H FOURTH STREET

A R T E S I A , N E W M E X I C O B 8 2 1 0 - Z 1 I B

T E L E P H O N E ( 5 7 5 ) 7 4 B - 1 4 7 1

J D H N A . Y A T E S C H A I R M A N O F T H E B O A R D

J D H N A . Y A T E S J R . P R E S I D E N T


J O H N D . P E R I N I H I E F F I N A N C I A L O F F I C E R


December 14, 2012








Oil Measurement Each ofthe wells will be equipped with continuously metering separators for oil production prior to oil being commingled for sales at the Anthill #2H. Total sales/production will be allocated back to each individual well using the metered (daily well tests) volumes. Metered volumes will be compared to total battery volumes daily and monthly for accuracy. Any vapor recovery gas shall be included in this application.




Sincerely,



D E N N I S G . K I N S E Y

Yates Petroleum Corporation 105 South 4th Street Artesia, NM 88210

7Q11 5DQ0 DQ02 h ^ h l h & l l

7D11 EQDD ODDS bHbl ^57^

New Mexico State Land Office Commissioner of Public Lands 310 Old Santa Fe Trail P.O. Box 1148 Santa Fe, New Mexico 87504-1148

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T E 5 PETROLEUM CORPORRTION

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J O H N O . P E R I N I H I E F F I N A N C I A L O F F I C E R

J O R G E S . M E N D Q Z A C H I E F A D M I N I S T R A T I V E O F F I C E R

December 14, 2012



Yates Petroleum is requesting approval from the Oil Conservation Division and State Land Office to Surface Lease Commingle the following wells:


Anthill AAK State Com #3H Parkway; Bone Spring Sec. 2-T20S-R29E St. Lease #LG-4525 . API #30-015-38576 Eddy County, NM



OU Measurement Each of the wells will be equipped with continuously metering separators for oil production prior to oil being commingled for sales at the Anthill #2H. Total sales/production will be allocated back to each individual well using the metered (daily well tests) volumes. Metered volumes will be compared to total battery volumes daily and monthly for accuracy. Any vapor recovery gas shall be included in this application.



Any objections must be filed in writing with the Oil Conservation Division in Santa Fe within 20 days from the date the division receives the application. Application will be sent in conjunction with this letter.


Sincerely,


K A T H Y H . P O R T E R S E C R E T A R Y

D E N N I S G . K I N S E Y T R E A S U R E R

,." CERTIFIED MAIL:

PETROLEUM JON

YATES BUILDING -105 SOUTH FOURTH STREET ARTESIA, NEW MEXICO 88210

ADDRESS SERVICE REQUESTED

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KAROLYN M ROGERS C/O TAMMY ROGERS PO BOX 3040 MIDLAND, TX 79702

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"SENDER" COMPLETE THIS SECTION I COMPLETE THIS SECTION ON DFLIVERY

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

1. Article Addressed to:

i

| KAROLYN M ROGERS C/O TAMMY ROGERS

! PO BOX 3040 ! MIDLAND, TX 79702

A. Signature

X • Agent • Addressee

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

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

3. Service Type $ Certified Mall • Registered • Insured Mail

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

4. Restricted Delivery? (Extra Fee) • Yes

2. Article Number; (Transfer from s 7011 E17D DDDE Ofllfi 1731

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



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

n 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.


TO UN H & CAROL W HENDRIX TRUSTEES OF THE JOHN H HENDRIX REVOCABLE TRUST

p O BOX 3040 MIDLAND, TX 79702

A. Signature

X • Agent • Addre .3

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

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

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2. Article Number r (Transfer from si 7D11 2^7D DDDE Dfl^fi =1724

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PETROLEUM JON



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CHALLENGER CRUDE LTD 3300 N"A"STREET 8-110 MIDLAND, TX 79705

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1, Article Addressed to:

CHALLENGER CRUDE LTD ' 3300 N"A" STREET 8-110 i MIDLAND, TX 79705

OMPLETE THIS SECTION ON'DB

A. Signature


B. Received by (PrintedName) C. Date of Delivery

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

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


2. Article Number} (Transfer from s 7 0 1 1 2=170 00D2 O f i i a 1717

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

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i VIRGINIA P MONAGHAN I TRUSTEE OF MONAGHAN LVG TRUST

J 500 W TEXAS STE 1200 .! MIDLAND, TX 79701-4281

A Signature

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CERTIFIED MAIL

PETROLEUM BEBXION


\DDRESS SERVICE REQUESTED

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TOCOR INVESTMENTS INC

PO BOX 293.

MIDLAND, TX 79702

COMPLETE THIS SECTION ON DEUVEI

A. Signature


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

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

3. ServiceType Certified Mail

• Registered • Insured Mail

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


2. Article Number i (Transfer from si 7011 2170 0DD2 OBIS 1b14

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A. Signature | • Agent j

** • Addressee i

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

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

• ' 1. Article Addressed to:

! .' CAL-MON OIL COMPANY I ' 500 W TEXAS STE 1200

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> £ r Certified Mail • Express Mall • Registered • Return Receipt for Merchandise • Insured Mall • C.O.D.


2. Article Number p (Transfer from si 7D11 217D DDD2 Ofilfl 1bB7

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1

CERTIFIED MAIL

PETROLEUM JON

fATES BUILDING -105 SOUTH FOURTH STREET

ARTESIA, NEW MEXICO 88210

LDDRESS SERVICE REQUESTED

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^TDETfTYll f i^ ! DEPARTMENT 420 I DENVER, CO 80256

• Agent • Addressee

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

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

3. ServiceType ^ C e r t i f i e d Mall


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2. Article Number f (Transfer from si 7011 2170 0002 Ofllfi 1L70

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

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CERTIFIED MAIL

T E 5 PETROLEUM

IDN TES BUILDING -105 SOUTH FOURTH STREET

ARTESIA, NEW MEXICO 88210

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DEVON ENERGY PRODUCTION CO LP P O BOX 842485 DALLAS, TX 75284-2485

A Signature




! 3. ServiceType J H Certified Mall • Express Mall • Registered • Return Receipt for Merchandise • Insured Mall • C.O.D.

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

2. Article Number IJransferfromsl - 7011 2170 0002 Oaifl 1bb3

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

PETROLEUM CORPDRRTIDN


UJDRESS SERVICE REQUESTED

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SENDER: COMPLETE THIS SECTION /

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1. Article Addressed t a

i RICHARD YATES 428 SANDOVAL SANTA FE, NM 87501

f COMPLETE THIS SECTION ON DEL '' < " ' ')» % K i t '

VERY

A. Signature

y • Agent A O Addressee



3. ServiceType ^ C e r t i f i e d Mall • Express Mall

• Registered • Return Receipt for Merchandise • Insured Mail • C.O.D.


2. Article Number j (Transfer from s< 7011 217D 0002 0316 IhSb

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

* CERTIFIED MAIL

PETROLEUM ION



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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.


: PEYTON YATES 105 S FOURTH STREET ARTESIA, NM 88210

COMPLETE THIS SECTION ON DELIVERY * 'i \ t 1 { i < 1 • M t « *• S

A. Signature

V • Agent A • Addressee


• D. Is delivery address different from item 17 • Yes

If YES, enter delivery address below: • , No ,

3. Service Type M Certified Mall • Registered • Insured Mail


4. Restricted Delivery? (Extra fee) • Yes

2. Article Number i (Transfer from se 7D11 2170 DOOE Ofllfi 1b41

PS Form 3811 .^February 2004 Domestic Return Receipt 102595-02-M-1540 •

CERTIFIED M I L " 7

PETROLEUM UEEQBBUDN



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MULBERRY PARTNERS II LLP P0 BOX 1290 ARTESIA, NM 88211-1290

COMPLETE THIS SECTION ON DELIVERY; ? i it * ' i

A Signature

X

B. Received by (Printed Name)

• Agent • Addressee

C. Date of Delivery

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

3. ServiceType • Certified Mall • Registered • Insured Mall



j 2. Article Number r~ i (Transfer from si 7011 E170 DDDE Dfilfi 1L3E

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

CERTIFIED

YATES INDUSTRIES LLC

P O BOX 1091

ARTESIA, NM 88211-1091

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• YATES INDUSTRIES LLC ; P 0 BOX 1091

| ARTESIA, NM 88211-1091

COMPLETE THIS SECTION ON DELIVERY

A Signature




3. Service Type ^Cer t i f i ed Mall




2. Article Numberj"" (Transfer from s 7Q11 2170 0002 QBIfi 1b2S

PS Form 3811,,February 2004 Domestic Return Receipt 102595-02-M-1540 •

PETROLEUM CORPORATION

\TES BUILDING -105 SOUTH FOURTH STREET ARTESIA, NEW MEXICO 88210

DDRESS SERVICE REQUESTED

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Complete items 1,2, and 3. Also complete item 4 if Restricted Delivery is desired. Print your name arid 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.


SHARBRO ENERGY LLC

P 0 BOX 840

• .COMPLETE THISSECTIONiON DELI VERY

A. Signature

v • Agent A • Addressee



ARTESIA, NM 88211-0840 3; SejviceType

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4. Restricted Delivery? (Extra Fee; • Yes

2. Article Number . (Transfer from s\ 7011 2170 0002 Ofilfl I b l f l

PS Form 3 8 1 1 , February 2004 Domestic Return Receipt 1O2595-02-M-1540. li

CERTIFIED MAIL """"

T E 5 PETROLEUM CORPORATION

YATES BUILDING - 105 SOUTH FOURTH STREET ARTESIA, NEW MEXICO 88210


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: ARTESIA, NM 88211-1020

A. Signature • Agent

X • Addressee


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

3. ServiceType / lp Certified Mall

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2. Article Number (Transfer from s 7011 2170 D002 Ofllfl IbOl

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4DDRESS SERVICE REQUESTED

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MARIGOLD LLLP P 0 BOX 1290 ARTESIA, NM 88211-1290

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SENDER: COMPLETE THIS SECT

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.


' MARIGOLD LLLP P 0 BOX 1290 ARTESIA, NM 88211-1290

A. Signature

X •.Agent • Addressee



3. ServiceType h Certified Mall • Express Mail • Registered • Return Receipt for Merchandise • Insured Mail • C.O.D.


2. Article Number [ (Transfer from si 7011 2170 0D02 Ofllfi ISIS

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PETROLEUM IRPDRHTIDN

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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.


SANTO LEGADO LLLP P O BOX 1020 ARTESIA, NM 88211-1020

A Signature

y • Agent • Addressee



3. Service Type JjEl Certified Mail




2. Article Number (-CTransferfromsi 7011 E000 000E b 4 b l 7043

PS Form 3811 ...February 2004 Domestic Return Receipt 102595-02-M-1540 '!

mvERrmmMAiL: •

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• Print your name arid 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.


OXY Y-1 COMPANY P.O. BOX 841803 DALLAS, TX 75284-1803

COMPLETE THIS SECTION ON DFLIVERY

A. Signature

Y ' • Agent

A • Addressee



3. ServiceType ^Cer t i f ied Mall

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2. Article Number ~ (Transfer from sel 7011 E170 0D0E OfilS isaa

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

tTES PETROLEUM

TES BUILDING -105 SOUTH FOURTH STREET ARTESIA, NEW MEXICO 88210

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' MIDLAND, TX 79710-0880

A. Signature




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2. Article Number :" (Transfer from si 7D11 2170 D002 Ofllfi 1571

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CORPORATION

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

A Signature I • Agent i • Addressee 1

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

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

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I 1. Article Addressed to:

I TAYLOR L BARR ' PO BOX 78694

I CHARLOTTE, NC 28271

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

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I CHARLOTTE, NC 28271 3. ServiceType ^Certified Mall • Express Mall | • Registered • Return Receipt for. Merchandise • Insured Mail • C.O.D.



I CHARLOTTE, NC 28271


, 2. Article Number' „ _ , ,, j (Transfer from* 7 0 1 1 E 1 7 D OODE D f i l f l 1 5 L M

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

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ZACHARIAH J REID C/O CHRISTINE MOTYCKA P O BOX 505 MIDLAND, TX 79702

Complete items 1,2, and 3. Also complete item 4 if Restricted Delivery is desired. Print your name and address oh 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.


ZACHARIAH J REID C/O CHRISTINE MOTYCKA P O BOX 505 MIDLAND, TX 79702

A Signature



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

Service Type ^Certified Mall • Registered • Insured Mall



2. Article Number p (Transfer from s£ 7D11 E170 ODDS Ofllfi 1557

PS Form 3 8 1 1 , February 2.004 Domestic Return Receipt 102595-02-M-1540 •:

PETROLEUM CORPORATION

YATES BUILDING -105 SOUTH FOURTH STREET ARTESIA, NEW MEXICO B8210

UJDRESS SERVICE REQUESTED

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I ; CRAIG W BARR I | 1031 NW 4 3 R D AVENUE ! j CAMAS, WA 98607 i ; i .-

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3. ServiceType GkCertified Mall • Express Mail • Registered • Return Receipt for Merchandise • Insured Mail • C.O.D.


2. Article Number (Transfer from st 7011 E170 DDDE 0316 1540

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7D11 £ 70.11' E

STEVE C BARNES P 0 BOX 505 MIDLAND, TX 79702

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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.


STEVE C BARNES P O BOX 505 MIDLAND, TX 79702

A Signature

X •.Agent • 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. ServiceType MCertified Mail • Registered • Insured Mail



2. Article Numberr (Transfer from a 7011 E17D 0D0E Dfllfi 1333

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

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LAURIE B BARR FAMILY TRl C/O WELLS FARGO BANK ACCT #72385400 P 0 BOX 40909 AUSTIN, TX 78704

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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.


LAURIE B BARR FAMILY TRUST C/O WELLS FARGO BANK ACCT #72385400 P O BOX 40909 AUSTIN, TX 78704

COMPLETE THIS SECTION ON DELI VERY '

A . Signature

' . ' .. • • Agent . A • Addressee

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


3. ServiceType

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2. Article Number r (Transfer from se 7D11 E17D DDDE DATA ISSb

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

cERTinEMmiiSmm

CHRISTINE MOTYCKA P 0 BOX 505 MIDLAND, TX 79702

^SEHDER: COMPLETE THIS SECTION . ' COMPLETE THIS SECTION ON DELIVERY

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


CHRISTINE MOTYCKA P 0 BOX 505 MIDLAND, TX 79702

A; Signature

V • Agent A • Addressee


_ ..' .... D. Is delivery address different from item 1 ? • Yes ' If YES, enter delivery address'below: DNo

3. ServiceType ^Cert i f ied Mail

• Registered • • Insured Mail

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

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

2. Article Number j * (Transfer from sj 7D11 E170 DDDE DAIS 1511

PS Form 3 8 1 1 , February 2004 Domestic Return Receipt 102595O2-M-1540

CERTIFIED MAIL

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V ELAINE BARNES P 0 BOX 505 MIDLAND, TX 79702

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SEtiDER: COMPLETE THIS SECTiON ' :

Complete Items 1,2, and 3. Also complete item 4 if Restricted Delivery Is desired. Print your name arid 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.. ..

1; Article Addressed to:

{ V ELAINE BARNES j P 0 BOX 505 1 MIDLAND, TX 79702

.COMPLETE THIS SECTION ON DELIVERY

A Signature

•' •' '' V • • Agent A •. • Addressee B. Received by (Printed Name)

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C. Date of Delivery

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

3. ServiceType BA Certified Mail • Registered

• • Insured Mail


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

2. Article Number |~ (Transferfrom st 7011 S17D DDDE Dfi l f i ^50.2

PS Form 3811„ February 2004 Domestic Return Receipt 102595-02-M-1540

PETROLEUM



7 D i l E l 7 D DDDE Of i i a 1 4 I t .

7 0 1 1 E170 DODE Of l l f i 141b

THE BARNES FAMILY PARTNE P 0 BOX 505 MIDLAND, TX 79702

|. SENDER: COMPLETE THIS SECTION >k ^i:^ J 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 jf space permits.


j THE BARNES FAMILY PARTNERSHIP

i P O BOX 505 [ MIDLAND, TX 79702

A. Signature



I D. Is delivery address different from item 1 ? • Yes

If YES, enter delivery address below: • No

3. Service Type I

A] Certified Mail • Express Mail -•„. ' • Registered • Return Receipt for Merchandise '

- • insured Mail. . • C.O.D.. . . j 4. Restricted Delivery? (Extra Fee) • Yes

2. Article Number r

(Transfer from se 7D11 E17D DDDE Dfilfl 141b ; PS Form 3 8 1 1 , February 2004 Domestic Return Receipt 10259IVO2-M-1540 :

CERTIFIED MAIL

T E 3 PETROLEUM CORPDRHTinw



7 0 1 1 . 2170 D0D2 DAI f l 14A1

7 0 1 1 2170 00D2 Of l l f l 14A1

JULIE ELLEN BARNES P 0 BOX 505 MIDLAND, TX 79702

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 to you. Attach this card to the back ofthe mailpiece, or,qn the front if space permits.


JULIE ELLEN BARNES i P O BOX 505

A. Signature I i

v • • Agent ' A • • Addressee '

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

• • • • ' 'I D. Is delivery address different from item 1 ? • Yes..

If YES, enter delivery address below: Q No


2. Article Numberf (Transfer from s 7011 217D 0002 Ofllfl 14A1

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

MIDLAND, TX 79702 3. ServiceType .- ' • ; ; - " r ^ : : : r r " 7 " j f t Certified Mail • Express Mail '

_ • Registered • Return Receipt for Merchandise l ;

• Insured Mail • C.O.D. . I

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PETROLEUM JON


A D D R E S S S E R V I C E R E Q U E S T E D

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GERALDINE LZOLLER P 0 BOX 1446 MARBLE FALLS, TX 78654

.! SENDER: COMPLETE THIS SECTION I : v ''.;*'> COMPLETE THIS SECTION ON DELIVERY ~ :

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

A.'.Signature ' ; •yV--'" • Agent

• Addressee

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


J 1. Article Addressed to:

1 • ' • • '- .

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

1 - GERALDINE LZOLLER i '' j P 0 BOX 1446

J MARBLE FALLS, TX 78654

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

!i • i 1 !

3. Service Type . ^Cert i f ied Mail • Express Mail -

• Registered • Return Receipt for Merchandise • insured Mail • C.O.D. 1 •-

1 ' . -I '-• ' : . • -•

3. Service Type . ^Cert i f ied Mail • Express Mail -

• Registered • Return Receipt for Merchandise • insured Mail • C.O.D. 1 •-

1 ' . -I '-• ' : . • -•


! 2. Article Number f- * "":

I (Transfer from s . 7 0 1 1 2 1 7 0 0 0 0 2 O f l l f l 1 4 7 2

PS Form 3811, February 2004 Domestic Return Receipt 102595-02-M-1540

t l

Jones, Wil l iam V., EMNRD

From: Hanson Yates <[email protected]> Sent: Monday, January 28, 2013 4:01 PM To: Jones, William V., EMNRD Cc: Mike Hill ([email protected]); Tobin Rhodes; Peyton Yates; Karen Leishman;

Mark Ashley Subject: RE: Protest of Application for Surface Lease Commingling of Oil Production

Dear Mr. Jones,

Santo Legado LLLP hereby withdraws its protest of application for surface lease commingling of oil production as set forth below. We have met with Yates Petroleum and are comfortable with their plans to meter and allocate production. They have also granted us the right to witness the production metering going forward.

Thank you.

Best regards,

Hanson Yates

Vice President, Land & Business Development Santo Petroleum LLC Two Allen Center 1200 Smith Street, Suite 690 Houston, TX 77002

Main: 713-600-7500 Direct: 713-652-0088 Mobile: 713-412-2097

From: Jones, William V., EMNRD rmailto:[email protected] Sent: Friday, January 04, 2013 5:25 PM To: Hanson Yates Subject: RE: Protest of Application for Surface Lease Commingling of Oil Production

Got it....

From: Hanson Yates [mailto:[email protected] Sent: Friday, January 04, 2013 3:31 PM To: Jones, William V., EMNRD Cc: Tobin Rhodes; Karen Leishman; Mark Ashley Subject: Protest of Application for Surface Lease Commingling of Oil Production

Re: Yates Petroleum Corporation's application for Surface Lease Commingling of oil production from

Anthill AAK State Com #2H Parkway; Bone Spring Sec. 2-T20S-R29E St. Lease #LG-2041V

API #30-015-38575

Anthill AAK State Com#3H Parkway; Bone Spring Sec. 2-T20S-R29E St. Lease #LG-4525 API #30-015-38576

Anthill AAK State Com #4H Parkway; Bone Spring Sec. 2-T20S-R29E St. Lease #LG-4525 API #30-015-40731

l

Eddy County, NM Eddy County, NM Eddy County, NM

Dear Mr. Jones,

Thank you for returning my voicemail yesterday. Per your suggestion, I am sending this email to notify the NM OCD that Santo Legado LLLP protests the application by Yates Petroleum Corporation ("YPC") for surface lease commingling of production from the above captioned wells, which are all operated by YPC.

Since there is non-uniform ownership in the three wells, Santo Legado is concerned the risks and costs of potential errors in allocation of production among the three wells outweigh the benefits of surface commingling production as planned. With the oil production volumes YPC has suggested, a small error could result in significant harm to any under allocated party.

We have notified YPC of our protest and will work with them to resolve this matter quickly. We will notify you as soon as we reached any conclusions with YPC.

Have a nice weekend.

Best regards,

Hanson Yates



2

Jones, Will iam V., EMNRD

From: Jones, William V., EMNRD Sent: Monday, January 07, 2013 11:54 AM To: 'Mike Hill' Subject: RE: Anthill AAK State Com # 3, Surface comingle application.

Mike I have seen no other protests as of this moment.

Will

From: Mike Hill rmailto.-MikeHdayatespetroleum.com] Sent: Monday, January 07, 2013 11:34 AM To: Jones, William V., EMNRD Subject: Anthill AAK State Com # 3, Surface comingle application.

William Jones Oil Conservation Division 1220 South St. Francis Dr. Santa Fe, NM 87505

Will,

I was wondering if you could tell me if anyone has protested this application for surface comingling on the Anthill AAK St Com #3. Santo Petroleum another Yates company has told me that they are going to send a letter of protest; I have scheduled a meeting

with them to see if we can resolve our differences, but I was wondering if anyone else had protested?

Thank You,

Mike Hill

Yates Petroleum Corp Office: 575-748-4219 Cell : 575-365-8706

This message may contain confidential information and is intended for the named recipient only. If you are not the intended recipient you are notified that disclosing, copying, distributing or taking any action in reliance on the contents of this information is strictly prohibited. E-mail transmission cannot be guaranteed to be secure or error-free as information could be intercepted, corrupted, lost, destroyed, arrive late or incomplete, or contain viruses. The sender therefore does not accept liability for any errors or omissions in the contents of this message, which arise as a result of e-mail transmission. If verification is required please request a hard-copy version.

l

Jones, Wil l iam V., EMNRD

From: Sent: To: Cc: Subject:

Hanson Yates <[email protected]> Friday, January 04, 2013 3:31 PM Jones, William V., EMNRD Tobin Rhodes; Karen Leishman; Mark Ashley Protest of Application for Surface Lease Commingling of Oil Production

Re: Yates Petroleum Corporation's application for Surface Lease Commingling of oil production from

Anthill AAK State Com #2H Parkway; Bone Spring



Sec. 2-T20S-R29E St. Lease #LG-2041 API #30-015-38575 Eddy County, NM

Sec. 2-T20S-R29E St. Lease #LG-4525 API #30-015-38576 Eddy County, NM

Sec.2-T20S-R29E St. Lease #LG-4525 API #30-015-40731 Eddy County, NM

Dear Mr. Jones,

Thank you for returning my voicemail yesterday. Per your suggestion, I am sending this email to notify the NM OCD that Santo Legado LLLP protests the application by Yates Petroleum Corporation ("YPC") for surface lease commingling of production from the above captioned wells, which are all operated by YPC.

Since there is non-uniform ownership in the three wells, Santo Legado is concerned the risks and costs of potential errors in allocation of production among the three wells outweigh the benefits of surface commingling production as planned. With the oil production volumes YPC has suggested, a small error could result in significant harm to any under allocated party.

We have notified YPC of our protest and will work with them to resolve this matter quickly. We will notify you as soon as we reached any conclusions with YPC.

Have a nice weekend.

Best regards,

Hanson Yates



1

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