GASCOEnergy

September 1, 2006

Bureau of Land ManagernentVernal Field Office170 S. 500 E.Vernal, UT 84078

Attn: Minerals Department

Re: All WellsUintah and Duchesne Counties, Utah

Ladies and Gentlemen:

This letter is to inform you that Permitco, Inc. and Shon McKinnon are authorized to actas Agent and to sign or retrieve documents on behalf of Gasco Production Company, awholly owned subsidiary of Gasco Energy, Inc. when necessary for filing county, stateand federal permits including Onshore Order No. 1, Right of Way applicatíons, etc., forthe above mentioned wells.

11should be understood that Permitco, Inc. and Shon McKinnon are acting as Agent onlyin those matter stated above and are not responsible for drilling, completion, productionor compliance with regulations.

Gasco Production Cornpany agrees to accept full responsibility for operations conductedin order to drill, complete and produce the above mentioned wells.

Mark A. EricksonPresident and CEO

GASCOEnergy, Inc.8 Inverness Drive East, Suite 100 Tel: (303) 483-0044 Email: invest@gascoenergy.com

Englewood, CO 80112-5625 Fax: (303) 483-0011 Website: www.gascoenergy.com AMEX:

PERMITC0

14421 County Rd. 10 • Ft. Lupton, Colorado 80621 • (303) 857-9999 • FAX (303) 857-0577 • E-MAIL Permitco 1@aol com

January 10,2008

DivisionofOil,Gas &Mining1594West NorthTemple,Suite 1210Box145801Salt LakeCity,UT 84114-5801Attn: DianaMason

Re: GascoProduction CompanyWilkinRidgeFederal #43-21-10-172163'FSLand567' FELNESE Section21,T10S- R17EDuchesne County,Utah

DearDiana,

EnclosedpleasefindonecopyoftheApplicationforPermitto Drill,alongwithonecopyoftheOnshoreOrderNo.1 whichwasfiledwiththe BIMin Vernal,Utah.

Ifyou shouldneed additional information,please don't hesitate tocontactme. Approvedcopies oftheA.P.D.should be sent to Permitco Inc.at the addressshownabove.

Sincerely,

PERMITCOINC.

Venessa LangmacherConsultant forGasco Production Company

RECEIVEDEnc. AN i 4 2008cc: GascoProduction Company - Englewood,CO DIVOFOlL,GAS&MININGShawn Elworthy- Myton,UT

ShonMcKinnon- Altamont,

STATE OF UTAH FORM 3DEPARTMENT OF NATURAL RESOURCES

DIVISION OF OIL, GAS AND MINING AMENDED REPORT(highlight changes)

APPLICATION FOR PERMIT TO DRILLMINERAL5L0EASENO.: 6 SURMFACE:

T IF INDIAN,ALLOTTEE OR TRIBE NAME:1A. TYPEOFWORK: DRILLË REENTER DEEPEN

N/AB. TYPE OF WELL: OILE] GASË OTHER SINGLEZONE MULTIPLEZONE 8. UNIT or CA AGREEMENT NAME:

WilkinRidge2. NAME OF OPERATOR: 9. WELL NAME and NUMBER:

Gasco Production Company WilkinRidgeFederal#43-21-10-173. ADDRESSnOFSOPERATOE

st, Suite100,Englewood,CO80112PHONE BE-

04410 D PO O AT

4. LOCATION OF WELL (F TAGES) 11 QTRIQTR, SECTION, TOWN P, RANGEMERIDIAN:

ATSURFACE: 2163'FSLand 567' FEL Section21,T10S- R17EAT PROPOSED PRODUCING ZONE: NESE // Û-

14 DISTANCE IN MILES AND DIRECTION FROM NEAREST TOWN OR POST OFFICE: 12. COUNTY: 13. STATE:

Approximately22.65miles southeastofMyton UT Duchesne j Utah15 DISTANCE TO NEAREST PROPERTY OR LEASE LINE (FEET) 16 NUMBER OF ACRES IN LEASE: 17. NUMBER OF ACRES ASSIGNED TO THIS WELL:

567' 1917.68 40 Acres; NESE18 DISTANCE TO NEAREST WELL (DRILLING, COMPLETED, OR 19 PROPOSED DEPTH: 20. BOND DESCRIPTION:

APPLIED FOR) ON THIS LEASE (FEET):

None 13,065' Bond#UT-123321 ELEVATIONS (SHOW WHETHER DF, RT, GR, ETC.): 22 APPROXIMATE DATE WORK WILL START: 23. ESTIMATED DURATION:

5899' GL ASAP 24 Days

24 PROPOSEDCASINGANDCEMENTINGPROGRAMSIZE OF HOLE CASING SIZE, GRADE, AND WEIGHT PER FOOT SETTING DEPTH CEMENT TYPE, QUANTITY, YIELD, AND SLURRY WEIGHT

17-1/2" 13-3/8",H-40,48# 40' 50 sx PremiumType 5, 15.6ppg,1.18yield12-1/4" 8-5/8",J-55, 32# 3,605' 607sx Hi-Lift,11ppg,3.91yield&185sx 10-2RFC,14.2ppg,1.63yield7-7/8" 4-1/2",P-110,13.5# 13,065' 523sx Hi-Lift,11.5ppg, 3.05yield &1348sx 50-50Poz, 14.1ppg,1.28yield

25 ATTACHMENTSVERIFY THE FOLLOWING ARE ATTACHED IN ACCORDANCE WITH THE UTAH OIL AND GAS CONSERVATION GENERAL RULES:

WELL PLAT OR MAP PREPARED BY LICENSED SURVEYOR OR ENGINEER COMPLETE DRILLING PLAN

EVIDENCE OF DIVISION OF WATER RIGHTS APPROVAL FOR USE OF WATER FORM S, IF OPERATOR IS PERSON OR COMPANY OTHER THAN THE LEASE OWNER

AGENT: PermitÛO Inc., 14421County Road 10,Fort Lupton,CO80621 AGENT'S PHONE No.: 303/857-9999

Venessa Langmacher Agent for GascoProduction CompanyNAME (PLEASE

D

TLEE

January10,2008(ThisspaceforStateuseonly) Approvedby the

Utah DivisionofAPI NUMBER ASSIGNED CIS $$¾ 0 Oil, Gaggyining

(11/2001)

AC On ÍS DM O , A &

GASCO PRODUCTION COMPANYT10S, Ri7E, S. L.B. &M· 'u:˯Âe" Well location, WILKINRIDGEFEDERAL

°"'°"'' #43-21-10-17, located as shown in the NE 1/4SB959'40"E - 2621.03' (Meas.)

SB9°50'43"E- 2638.94' (Meas.) SE 1/4 of Section 21, T10S, R17E, S.L.B.&M.,

Brass Cap 01 Brass 'e°* Duchesne County, Utah.of Stones

BASIS OF ELEVATIONSPOT ELEVATIONLOCATED IN THE SW 1/4 OF SECTION 20,T10S, R17E, S.L.B.&M. TAKEN FROM THE WILKINR\DGE,QUADRANGLE,UTAH, DUCHESNE COUNTY, 7.5 MINUTE QUAD.(TOPOGRAPHIC MAP) PUBLISHEDBY THE UNITED STATES

--- DEPARTMENTOF THE INTER\0R, GEOLOGlCALSURVEY. SAIDELEVATIONIS MARKEDAS BEING 6275 FEET.

1910 Brass Cap1910 Brass Cap 1.0' High, Pile1.0' High, Pile of Stones Nof Stones

WILK/NR/DGE FEDERAL -gý'4J-21-10--17 e 2 -o eE/ev. Ungraded Ground = 5899' - -- - mm-------

SCALE

THIS IS TO CERTIFYTHAT THE AB ED FROMFIELDNOTES OF ACTUALSURVE MYSUPERVISIONAND THAT THE TR AND TO THEBEST OF MY KNOWLEDGEAN

1910 Brass Cap 1910 Frass Cap R IS ND VE1.0' High, Pile 2.5' High, Pile 1910 Brass Cap R TRA NO. 13of Stones of Stones 1.5' High, Pile UT

A L H 1 1 of StonesSB9°54'JO"W- 2633.43' (Meas.) NB9°59'O7"E - 2631.17' (Meas.) 1, I \f

BASIS OF BEARINGS UINTAH ENGINEERING & i SURVEYINGBASIS OF BEARINGS IS A G.P.Š. OBSERVATION. 85 SOUTH 200 EAST

- VERNAL, UTAH 84078(435) 789-1017

LEGEND: (AUTONOMOUSNAD83) SCALE DATE SURVEYED: DATE DRAWN:LATITUDE = 39°55'41.33" (39.928147) 1" = 1000' 06-28-06 06-30-06=

90° SYMBOL LONGITUDE= 110°00'14.85" (110.004125) PARTY REFERENCES= PROPOSED WELL HEAD. (AUTONOMOUSNAD27) J.W T.B S.L G.L.O. PLATLATITUDE = 39°55°41.46" (39.928183)A = SECTION CORNERS LOCATED LONGITUDE= 110°00'12.31" (110.003419) WEATHER FILE

HOT GASCO PRODUCTION

CONFIDENTIAL- TIGHTHOLE

ONSHOREOIL&GASORDERNO.1

Approvalof Operations on OnshoreFederaland IndianOil&Gas Leases

WilkinRidgeFederal#43-21-10-172163'FSLand56T FEL

NESE Section21,T10S - R17EDuchesne County,Utah

Prepared For:

Gasco Production Company

By:

PERMITCOINC.14421CountyRoad 10

Ft. Lupton,Colorado 80621303/857-9999

Copies Sent To:

3 - Bureau ofLand Management- Vernal,UT1 - UtahDivisionofOil,Gas&Mining- SLC,UT1 - Gasco Production Company - Englewood,CO1 - Shawn Elworthy- Roosevelt,UT1 - Shon McKinnon- Altamont,UT

GascoProductionCompanyWilkinRidgeFederal#43-21-10-17

2163' FSLand567'FELNESE Section21, T10S- R17E

DuchesneCounty,Utah

CERTIFICATION

IherebycertifythatI,or someoneundermydirectsupervision,have inspectedthedrillsiteandaccess routeproposedherein;thatIamfamiliarwiththeconditionswhichcurrentlyexist;thatIhavefullknowledge,ofstateandFederallawsapplicabletothisoperation;thatthestatementsmadeinthisAPDpackageare,tothebest ofmyknowledge,trueandcorrect;andthattheworkassociatedwiththeoperationsproposedhereinwillbe performedin conformitywiththisAPDpackageandthetermsand

.

conditionsunderwhichitis approved. IalsocertifythatI,or thecompanyIrepresent,am responsiblefortheoperationsconductedunderthisapplication.These statementsare subjecttotheprovisionsof 18U.S.C.1001forthefilingoffalsestatements.Executedthis19thdayofOctober,2007.

Venessa Langmacher

AgentforGascoProductionCompanyTitle

14421 CountyRoad10, FortLupton,CO80621Address

303/857-9999Telephone

VLLPermitco@aol.com

ONSHOREORDERNO.i ~~ CONFlDENTIAL- TlGHTHOLEGascoProductionCompanyWilkinRidge Federal #43-21-10-17 Lease No.UTU-750832163' FSLand 567' FELNESE Section21, T10S - R17E DRILLINGPROGRAMDuchesneCounty,Utah Page 1

ONSHOREOIL&GASORDERNO.1ApprovalofOperationson Onshore

FederalandIndianOiland GasLeases

Allleaseand/orunitoperationswillbeconductedinsucha mannerthatfullcomplianceismadewithapplicablelaws,regulations(43CFR3100),OnshoreOilandGasOrderNo.1,andtheapprovedplanofoperations.Theoperatorisfullyresponsiblefortheactionsofhissubcontractors.Acopyoftheseconditionswillbe furnishedthefieldrepresentativeto insure compliance.

1. ESTIMATEDTOPSOFALLGEOLOGICGROUPS,FORMATIONS,MEMBERSORZONES

Formation Depth Subsea

Wasatch 5,055' +860'

Mesaverde 9,155' -3,240'

Castlegate 11,765' -5,850'

Blackhawk 12,025' -6,110'

Aberdeen 12,765' -6,850'

TD 13,065' -7,150'

2. ESTIMATEDDEPTHANDTHICKNESSOFWATER,OIL,GASANDOTHERMINERALZONES

Substance Formation Depth Thickness

Gas Wasatch 5,200'-9,155' 3,955'

Gas Mesaverde 9,155'-11,765' 2,610'

Gas Blackhawk 12,025'-12,965' 940'

a. The lesseeloperatormustreportallshowsofwaterorwater-bearingsandstotheBLM.Ifflowingwaterisencountereditmustbe sampledandanalyzed(acopyoftheanalysestobesubmittedtotheBLMFieldOfficein Vernal,Utah).

ONSHOREORDERNO.1 CONFIDENTIAL- TIGHTHOLEGasco ProductionCompanyWilkinRidgeFederal#43-21-10-17 Lease No.UTU-750832163' FSLand567' FELNESE Section21,T10S - Ri7E DRILLINGPROGRAMDuchesneCounty,Utah Page 2

b. Alloilandgas showsshallbe adequatelytestedforcommercialpossibilities,reported,andprotected.

c. The lessee-operatormustreportencountersofallnonoilandgas mineralresources(suchas Gilsonite,tarsands, oilshale,etc.)toPeterSokoloskyoranothergeologistoftheVernalFieldOffice,inwriting,within5 workingdaysofeach encounter.Each reportshallincludethewellnamelnumber,welllocation,date and depth (fromKBor GL)ofencounter,verticalfootage of the encounterand, the name of theperson makingthe report(alongwithatelephonenumber)shouldtheBLMneed toobtainadditionalinformation.

d. Allshowsoffreshwaterand mineralsshallbe reportedandprotected. Asampleshallbetakenofanywaterflowsanda wateranalysisfurnishedtheBLM,VernalFieldOffice.Alloiland gas showsshall be adequatelytested for commercialpossibilities,reported,andprotected.

3. PRESSURECONTROLEQUIPMENT

GascoProductionCompany'sminimumspecificationsforpressurecontrolequipmentare as follows:

RamType: 11" Hydraulicdoublewithannular,5000 psiw.p.

Ramtypepreventersand associatedequipmentshallbe testedtoapprovedstackworkingpressureif isolatedby testplugor to 70 percent of internalyieldpressure of casing. Pressure shallbemaintainedforat least 10minutesor untilrequirementsoftestaremet,whicheveris longer. Ifa testplugis utilized,nobleed-offpressureisacceptable.Fora testnotutilizinga testplug,ifa declineinpressureofmorethan10percentin30 minutesoccurs,thetestshallbe consideredtohavefailed.Valveoncasinghead belowtestplugshallbe openduringtestofBOPstack.

Annulartypepreventers(ifused)shallbe testedto50 percentofratedworkingpressure. Pressureshallbe maintainedat least 10minutesor untilprovisionsoftestaremet,whicheveris longer.

Asa minimum,theabovetestshallbe performed:

a. wheninitiallyinstalled;b. wheneveranysealsubjecttotestpressureis brokenc. followingrelatedrepairs;andd. at30-dayintervals

ONSHOREORDERNO.t CONFlDENTIAL- TIGHTHOLEGasco ProductionCompanyWilkinRidgeFederal#43-21-10-17 Lease No.UTU-750832163'FSLand567'FELNESE Section21,T10S- Ri7E DRILLINGPROGRAMDuchesneCounty,Utah Page 3

Blowoutpreventionequipment(BOPE)shallremaininuse untilthewelliscompletedorabandoned.Closingunitcontrolsshallremainunobstructedandreadilyaccessibleatalltimes.Chokemanifoldsshallbe located outsideofthe rigsubstructure.

Valvesshallbe testedfromworkingpressureside duringBOPEtestswithalldownstreamvalvesopen.

Whentestingthekilllinevalve(s)thecheckvalveshallbe heldopenortheballremoved.

Annularpreventersshallbe functionallyoperatedat leastweekly.

Pipeandblindramsshallbe activatedeach trip,however,thisfunctionneed notbe performedmorethanoncea day.

Pressuretestsshallapplytoallrelatedwellcontrolequipment.

AllBOPEcomponentsshallbe inspecteddailyandthoseinspectionsshallbe recordedinthedailydrillingreport.Componentsshallbeoperatedandtestedas requiredbyOnshoreOil&GasOrderNo.2 to insure goodmechanicalworkingorder. AllBOPE pressure tests shallbe performedby a testpumpwitha chartrecorderand NOTbytherigpumps. Test shallbe reportedinthedriller'slog.

BOPdrillsshallbe initiallyconductedbyeach drillingcrewwithin24 hoursofdrillingoutfromunderthesurfacecasingandweeklythereafteras specifiedinOnshoreOil&GasOrderNo.2.

Casingpressuretestsarerequiredbeforedrillingoutfromunderallcasingstringssetandcementedinplace.

Noaggressivelfreshhard-bandeddrillpipeshallbe usedwithincasing.

Cement baskets shallnot be run on surfacecasing.

BOPsystemsshallbe consistentwithAPIRP53. Pressuretestswillbe conductedbeforedrillingoutfromundercasingstringswhichhave been setandcementedinplace.Blowoutpreventercontrolswillbe installedpriortodrillingthesurfacecasingplugandwillremaininuse untilthewelliscompletedorabandoned.Preventerswillbe inspectedandoperatedat leastdailytoensuregoodmechanicalworkingorder,andthisinspectionwillbe recordedon thedailydrillingreport.Preventerswillbepressuretestedbeforedrillingcasingcementplugs.

ONSHOREORDERNO.1 'CONFIDENTIAL- TIGHTHOLEGascoProductionCompanyWilkinRidgeFederal#43-21-10-17 Lease No.UTU-750832163'FSLand567'FELNESE Section21, T10S - R17E DRILLINGPROGRAMDuchesneCounty,Utah Page 4

TheDistrictOfficeshouldbe notified,withsufficientleadtime,inordertohavetheBLMrepresentativeon locationduringpressuretesting.

a. ThesizeandratingoftheBOPstackisshownontheattacheddiagram.Althougha righasnotbeenchosentodrillthiswell,mostoftheequipmentforthisdepthofholeintheareausea 11",5000 psiworkingpressureblowoutpreventor.

b. Achokelineand a killlineare to be properlyinstalled.The killlineis nottobe used as afill-upline.

c. Theaccumulatorsystemshallhavea pressurecapacitytoprovideforrepeatedoperationofhydraulicpreventers.

d. Drillstringsafetyvalve(s),tofitalltoolsinthedrillstring,are tobe maintainedontherigfloorwhiledrillingoperationsare inprogress.

4. PROPOSEDCASINGPROGRAM

a. NotifyVernalFieldOfficeSupervisory Petroleum EngineeringTechnicianat least 24hours in advanceof casinq and cementing operations and BOPE&casinq pressuretests,

b. The proposedcasingand cementingprogramshallbe conductedas approvedtoprotectand/orisolateallusablewaterzones, potentiallyproductivezones,lostcirculationzones,abnormallypressured zones, and anyprospectivelyvaluabledeposits of minerals.Anyisolatingmediumotherthancementshallreceiveapprovalpriortouse. Thecasingsettingdepthshallbe calculatedtopositionthecasingseatoppositea competentformationwhichwillcontain the maximumpressure to which it willbe exposedduringnormaldrillingoperations.Determinationofcasingsettingdepth shallbe based on allrelevantfactors,including;presencelabsence of hydrocarbons;fracture gradients; usable water zones;formationpressures;lostcirculationzones;otherminerals;orotherunusualcharacteristics.Allindicationsofusablewatershallbe reported.

c. Casingdesign shallassumeformationpressuregradientsof0.44 to 0.50 psi perfootforexploratorywells(lackingbetterdata).

ONSHOREORDERNO.1 t'ONFIDENTIAL- TIGHTHOLEGascoProductionCompanyWilkinRidgeFederal#43-21-10-17 Lease No.UTU-750832163'FSLand567 FELNESE Section21, T10S - R17E DRILLINGPROGRAMDuchesneCounty,Utah Page 5

d. Casingdesignshallassumefracturegradientsfrom0.70to1.00psiperfootforexploratorywells(lackingbetterdata)

e. Casingcollarsshallhavea minimumclearanceof0.422inchesofallsidesinthehole/casingannulus,withrecognitionthatvariancescanbe grantedforjustifiedexceptions.

f. Allwaitingoncementtimesshallbe adequatetoachievea minimumof500 psicompressivestrengthat thecasingshoe priortodrillingout.

g. Allcasingexcepttheconductorcasing,shallbe neworreconditionedandtestedusedcasingthatmeets or exceedsAPIstandardsfornewcasing.

h. Thesurfacecasingshallbe cementedbacktosurfaceeitherduringtheprimarycementjobor byremedialcementing.

i. Allindicationsofusablewatershallbe reportedtotheauthorizedofficerpriortorunningthenextstringofcasingor beforepluggingordersare requested,whicheveroccursfirst.

j. Threecentralizerswillbe runon thebottomthreejointsofsurfacecasingwitha minimumofone centralizerperjointstartingwiththeshoejoint.

k. Topplugsshallbe used toreducecontaminationofcementbydisplacementfluid.Abottomplugorotheracceptabletechnique,suchas a suitablepreflushfluid,innerstringcementmethod,etc. shallbe utilizedtohelpisolatethecementfromcontaminationbythemudfluidbeingdisplacedaheadofthecementslurry.

I. Allcasingstringsbelowtheconductorshallbe pressuretestedto0.22psiperfootofcasingstringlengthor1500psi,whicheverisgreater,but nottoexceed70 percentoftheminimuminternalyield.Ifpressuredeclinesmorethan10 percentin30minutes,correctiveactionshallbe taken.

m. Onallexploratorywells,andonthatportionofanywellapprovedfora 5MBOPEsystemorgreater,a pressureintegritytestofeachcasingshoeshallbe performed.Formationat theshoeshallbe testedtoa minimumofthemudweightequivalentanticipatedtocontroltheformationpressuretothenextcasingdepthorat totaldepthofthewell. Thistestshallbeperformedbeforedrillingmorethan20feetofnewhole.

ONSHOREORDERNO.1 dONFIDENTIAL- TIGHTHOLEGascoProductionCompanyWilkin Ridge Federal #43-21-10-17 Lease No. UTU-750832163' FSLand 567' FELNESE Section21,T10S- R17E SURFACEUSEPLANDuchesneCounty,Utah Page 6

l. Oiland gas metersshallbe calibratedinplacepriortoanydeliveries.The FieldOfficePetroleumEngineerswillbe providedwitha date andtimefortheinitialmetercalibrationandallfuturemeterprovingschedules.AcopyofthemetercalibrationreportsshallbesubmittedtotheBLM,VernalFieldOffice.AllmeasurementfacilitieswillconformtotheAPIstandardsforliquidhydrocarbonsandtheAGAstandardsfornaturalgasmeasurement.

m. Allaccessroadswillbe maintainedas necessarytopreventerosionandaccommodateyear-roundtraffic,

n. The roadwillbe maintainedin a safe useablecondition.

o. Producedwaterwillbe storedina 300bblheated, insulatedtank,thenhauledtoacommercialdisposalsitesuch as DisposalInc.,or BrennanBottom.

p. PipelineswillfollowtherouteshownonMapD. See Pipelinedetailattached.Pipelinerightofwayis neededfortheportionsofpipelinelocatedoutsidethe lease boundaryinSections28 and29. WearerequestingthatthisAPDbe used as ourapplicationforpipelinerightofway. Please notifyus oncea categorydeterminationhas been madesothatwe maysendthenecessaryfees.

5. LOCATIONANDTYPEOFWATERSUPPLY

a. Theproposedwatersourcewillbe theNebeckerWaterServiceat theNebeckerWaterStationinMyton,permit#43-1721.

b. Waterwillbe hauledbyNebeckerWaterServicetothelocationovertheaccessroadsshownonMapsAandB.

c. Nowaterwellwillbe drilledon thislease.

6. CONSTRUCTIONMATERIALS

a. Surfaceandsubsoilmaterialsintheimmediateareawillbe utilized.

b. Anygravelused willbe obtainedfroma commercialsource.

ONSHOREORDERNO. CONFIDENTIAL- TIGHTHOLEGascoProductionCompanyWilkin Ridge Federal#43-21-10-17 Lease No.UTU-750832163' FSL and 567' FELNESE Section21,T10S- Ri7E DRILLINGPROGRAMDuchesneCounty,Utah Page 6

n. Theproposedcasingprogramwillbe as follows:

Purpose Depth HoleSize 0.0. Weight Grade Type New/Used

Conductor 0-40' 17-1/2" 13-3/8" 48# H-40 --- New

Surface 0-3,605' 12-1/4" 8-5/8" 32# J-55 ST&C New

Production 0-13,065' 7-7/8" 4-1/2" 13.5# P-110 LT&C New

o. Casingdesignsubjecttorevisionbased ongeologicconditionsencountered.

5. PROPOSEDCEMENTINGPROGRAM

Conductor TypeandAmount

TOC@Surface 200sx PremiumType5 @15.6 ppg, 1.18 cuft/sk.

Surface Type andAmount

TOC@Surface Lead:607sx Hi-Lift@11.0ppg,3.91cuft/sk.Tail:185 sx10-2 RFC@14.2 ppg,1.63 cuft/sk.

Production TypeandAmount

TOC@2,500' Lead:523sx Hi-Lift@11.5ppg,3.05cuft/sk.Tail:1348sx50/50POZ@14.1ppg,1.28 cuft/sk.

a. Anticipatedcementtopswillbe reportedas to depth;nottheexpectednumberofsacksofcementtobe used. The DistrictOfficeshouldbe notified,withsufficientleadtime,in ordertohavea BLMrepresentativeon locationwhilerunningallcasingstringsandcementing.

b. Aftercementingbutbeforecommencinganytest,thecasingstringshallstandcementeduntilthecementhas reacheda compressivestrengthofat least500psiattheshoe. WOCtimeshallbe recordedinthedriller'slog.

c. Productioncasingcementshallbe broughtup and intothesurfacecasing. The minimumcementtopis 200' abovethesurfacecasingshoe.

ONSHOREORDERNO. CONFIDENTIAL- TIGHTHOLEGascoProductionCompanyWilkinRidgeFederal#43-21-10-17 Lease No.UTU-750832163'FSLand567'FELNESE Section21,T10S - R17E DRILLINGPROGRAMDuchesneCounty,Utah Page 7

d. ACementBondLog(CBL)shallbe runfromtheproductioncasingshoetothesurfacecasingshoe. AfieldcopyoftheCBLshallbe submittedtotheBLMVernalFieldOffice.

e. Thefollowingreportsshallbe filedwiththeDistrictManagerwithin30 daysaftertheworkiscompleted.

1. Progress reports,Form3160-5 (formerly9-331) "SundryNoticesand ReportsonWells",mustincludecompleteinformationconcerning:

a. Settingofeachstringofcasing,showingthesize,grade, weightofcasingset, holesize,settingdepth,amountsandtypeofcementused,whethercement circulatedor thetopof the cement behindthe casing,depth ofcementingtoolsused, casingtestmethodand results,and the date workwas done. Showthespuddate onthefirstreportssubmitted.

b. Temperatureorbondlogsmustbe submittedforeachwellwherethecasingcementwas notcirculatedtothesurface.

f. Auxiliaryequipmenttobe used is as follows:

1. Kellycock

2. Nobitfloatis deemednecessary.

3. Asubwitha fullopeningvalve.

6. PROPOSEDCIRCULATINGMEDIUMORMEDIUMS

Interval MudType MudWt. Visc. F/L pH

O'- 40' FreshWater 8.33 1 N/C 7

40' - 3,605' FreshWater 8.33 1 N/C 7-8

3,605' - TD FreshWater&DAP 9.0 - 11.5 30 - 40 12 - 20 8

Therewillbe sufficientmudon locationtocontrola blowoutshouldoneoccur.

ONSHOREORDERNO.i CONFIDENTIAL- TIGHTHOLEGasco ProductionCompanyWilkinRidgeFederal#43-21-10-17 Lease No.UTU-750832163' FSLand567'FELNESE Section21, T10S - R17E DRILLINGPROGRAMDuchesneCounty,Utah Page 8

Amudtestshallbe performedevery24hoursaftermuddinguptodetermine,as applicable:density,viscosity,gelstrength,staticfiltrationloss,and Ph.

a. Mudmonitoringequipmenttobe used is as follows:

1. Periodiccheckswillbe madeeachtourofthemudsystem. The mud levelwillbecheckedvisually.

b. Nochromateadditiveswillbe used inthemudsystemonFederaland/orIndianlandswithoutpriorBLMapprovaltoensure adequateprotectionoffreshwateraquifers.

c. NochemicalssubjecttoreportingunderSARATitleIllinan amountequaltoorgreaterthan10,000pounds willbe used, produced,stored,transported,or disposed of annuallyinassociationwiththedrillingofthiswell. Furthermore,no extremelyhazardoussubstances,as definedin40 CFR355, in thresholdplanningquantities,willbe used, produced,stored,transported,ordisposedofinassociationwiththedrillingofthiswell.

d. The use ofmaterialsunderBLMjurisdictionwillconformto43 CFR 3610.2-3.

7. PROPOSEDTESTING,LOGGINGANDCORING

The anticipatedtypeand amountoftesting,loggingandcoringareas follows:

a. Nodrillstemtestsareanticipated,however,ifDST'sarerun,thefollowingrequirementswillbe adheredto:

Initialopeningof drillstem test toolsshall be restrictedto daylighthours unless specificapprovaltostartduringotherhoursisobtainedfromtheauthorizedofficer.However,DST'smaybe allowedtocontinueatnightifthetestwasinitiatedduringdaylighthoursandtherateofflowis stabilizedand ifadequate lightingis available(i.e.lightingwhichis adequateforvisibilityandvapor-proofforsafeoperations).Packerscanbe released,buttrippingshallnotbeginbeforedaylight,unlesspriorapprovalisobtainedfromtheauthorizedofficer.ClosedchamberDSTsmaybe accomplisheddayornight.

ADSTthatflowstothesurfacewithevidenceofhydrocarbonsshallbe eitherreversedoutofthetestingstringundercontrolledsurfaceconditions.Thiswouldinvolveprovidedsomemeansforreversecirculation.

ONSHOREORDERNO.1 CONFIDENTIAL- TIGHTHOLEGasco ProductionCompanyWilkinRidgeFederal#43-21-10-17 Lease No.UTU-750832163' FSLand 567' FELNESE Section21, T10S - R17E DRILLINGPROGRAMDuchesneCounty,Utah Page 9

Separationequipmentrequiredfortheanticipatedrecoveryshallbe properlyinstalledbeforea teststarts.

Allengineswithin100 feetofthewellborethatare requiredto"run"duringthetestshallhavesparkarrestersorwatercooledexhausts.

b. The loggingprogramwillconsistofan InductionorLaterologas appropriate,GammaRay,andDensityNeutrontobe runfromTD- base ofsurfacecasing.

c. ACementBondLogwillbe runfromtheproductioncasingshoe tothesurfacecasingshoeand shallbe utilizedtodeterminethebondqualityfortheproductioncasing. Submita fieldcopyoftheCBLtotheVernalFieldOffice.

d. Please submit an electronic copy of all other logs run on this well in LASformat toUT VN Welllogs@bim.gov. This submissionwillsupersede the requirement forsubmittal of paper logs to the BLM.

e. Alloff-leasestorage,off-leasemeasurement,orcomminglingon-leaseoroff-leaseshallhavepriorwrittenapprovalfromtheBLM,VernalFieldOffice.

f. Allmeasurementpoints shallbe identifiedas point of sales or allocationfor royaltydeterminationpriortothe installationoffacilities.

g. Nocoresare anticipated.

h. Whetherthewell is completedas a dry hole or as a producer,"WellCompletionandRecompletionReportandLog"(Form3160-4)willbe submittednot later than30 days aftercompletionofthewelloraftercompletionofoperationsbeingperformed,inaccordancewith43 CFR3162.4-1. Twocopiesofalllogs,coredescriptions,coreanalyses,well-testdata,geologicsummaries,sampledescription,andallothersurveysordataobtainedandcompiledduringthe drilling,workover,and/orcompletionoperations,willbe filedwithform3160-4.Samples (cutting,fluids,and/orgases willbe submittedwhenrequestedbytheauthorizedofficer(AO).

i. The anticipatedcompletionprogramwillbe as follows:PerformmultistageFracs andcompleteallproductiveBlackhawk,Mesaverdeand Wasatchzones present in wellbore.Produceallzones commingled.

ONSHOREORDERNO.1 CONFIDENTIAL- TIGHTHOLEGasco ProductionCompanyWilkinRidge Federal#43-21-10-17 Lease No.UTU-750832163'FSLand567'FELNESE Section21,T10S - Ri7E DRILLINGPROGRAMDuchesneCounty,Utah Page 10

j. Dailydrillingand completionprogressreportsshallbe submittedtotheBLMinVernalonaweeklybasis.

8. EXPECTEDBOTTOMHOLEPRESSURE

a. The expectedbottomhole pressure is 7316 psi.The maximumbottomhole temperatureanticipatedis222 degrees F.

b. Nohydrogensulfidegas isanticipated.Abnormalpressureswillbecontrolledwithmudweightand 5000# BOPandrotatinghead.

9. OTHERINFORMATIONANDNOTIFICATIONREQUIREMENTS

a. Drillingwillcommenceimmediatelyuponapprovalofthisapplication.

b. Itisanticipatedthatthedrillingofthiswellwilltakeapproximately24 days.

c. The BLMin Vernal,Utahshallbe notifiedoftheanticipateddate of locationconstructioncommencementand ofanticipatedspuddate.

d. Nolocationwillbe constructedormoved,nowellwillbe plugged,andnodrillingorworkoverequipmentwillbe removedfroma welltobe placed in a suspendedstatuswithoutpriorapprovaloftheAO. Ifoperationsaretobe suspendedformorethan30days,priorapprovaloftheBLM,VernalFieldOfficeshallbe obtainedandnotificationgivenbeforeresumptionofoperations.

e. Thespuddate willbe reportedorallytotheVernalFieldOfficewithin24 hoursofspudding.Theoralreportwillbe followedupwitha SundryNotice.

f. Chronologicdrillingprogressreportsshallbe fileddirectlywiththeBLM,VernalFieldOfficeona weeklybasis insundry,letterformatore-mailtothePetroleumEngineersuntilthewelliscompleted.

g. Anychangein theprogramshallbe approvedby theBLM,VernalFieldOffice. "SundryNoticesandReportsonWells"(FormBLM3160-5)shallbefiledforallchangesofplansandotheroperationsinaccordancewith43 CFR3162.3-2.

ONSHOREORDERNO.1 CONFIDENTIAL- TIGHTHOLEGascoProductionCompanyWilkinRidgeFederal#43-21-10-17 Lease No.UTU-750832163'FSLand567'FELNESE Section21,T10S - Ri7E DRILLINGPROGRAMDuchesne County,Utah Page 11

h. Emergencyapprovalmaybe obtainedorally,butsuchapprovaldoes notwaivethewrittenreportrequirement.Anyadditionalconstruction,reconstruction,oralterationsoffacilities,includingroads, gatheringlines,batteries,etc.,whichwillresultin thedisturbanceofnewground,shallrequirethefilingofa suitableplanpursuanttoOnshoreOil&Gas OrderNo.1of43 CFR3164.1and priorapprovalbytheBLM,VernalFieldOffice.

i. Inaccordancewith43 CFR3162.4-3,thiswellshallbe reportedonthe"MonthlyReportofOperations"(Oiland Gas OperationsReport((0GOR))startingwiththe monthin whichoperationscommenceand continueeachmonthuntilthe wellis physicallypluggedandabandoned.Thisreportshallbe filedinduplicate,directlywiththeMineralsManagementService,P.O. Box17110,Denver,CO80217-0110,orcall1-800-525-7922 (303)231-3650forreportinginformation.

j. ImmediateReport:Spills,blowouts,fires,leaks,accidents,oranyotherunusualoccurrencesshallbe promptlyreportedin accordancewiththerequirementsofNTL-3Aor its revision.

k. Ifa replacementrigiscontemplatedforcompletionoperations,a "SundryNotice"Form3160-5 tothateffectwillbe filed,forpriorapprovaloftheAO,andallconditionsofthisapprovedplanareapplicableduringalloperationsconductedwiththe replacementrig.

l. Shouldthewellbe successfullycompletedforproduction,theAOwillbe notifiedwhenthewellisplacedina producingstatus.Suchnotificationwillbe sentbytelegramorotherwrittencommunications,not later than5 days followingthedate onwhichthewellis placed onproduction.

m. Pursuantto OnshoreOil&Gas OrderNo.7, thisis authorizationforpitdisposalofwaterproducedfromthiswellfor a periodof 90 days fromthedate of initialproduction. Apermanentdisposalmethodmustbe approvedbythisofficeandinoperationpriortotheendof this90-day period. In orderto meetthisdeadline, an applicationfor the proposedpermanentdisposalmethodshallbesubmittedalongwithanynecessarywateranalyses,assoonas possible,butnolaterthan45daysafterthedate offirstproduction.Anymethodofdisposalwhichhas notbeen approvedpriortotheendoftheauthorized90 day periodwillbeconsideredasanIncidentofNoncomplianceandwillbegroundsforissuinga shut-inorderuntilanacceptablemannerfordisposingofsaidwaterisprovidedandapprovedbytheVernalFieldOffice.

ONSHOREORDERNO.Y 'CONFIDENTIAL- TIGHTHOLEGascoProductionCompanyWilkinRidge Federal#43-21-10-17 Lease No.UTU-750832163'FSLand567'FELNESE Section21,T10S - R17E DRILLINGPROGRAMDuchesneCounty,Utah Page 12

n. Pursuantto NTL-4A,lessees oroperatorsareauthorizedtovent/flaregas duringinitialwellevaluationtests,notexceedinga periodof30 days ortheproductionof50 MMCFofgas,whicheveroccursfirst. Anapplicationmustbe filedwiththeDistrictEngineerand approvalreceived,foranyventing/flaringofgas beyondthe initial30 day orauthorizedtest period.Anyventingorflaringofgas shallbe done inaccordancewithNoticetoLessees (NTL)4Aand needs priorapprovalfromFieldOfficePetroleumEngineers.

o. A schematicfacilitiesdiagramas requiredby Onshore Oil& Gas Order No. 3 shall besubmittedtotheBLM,VernalFieldOfficewithin30 days of installationorfirstproduction,whicheveroccursfirst. Allsitesecurityregulationsas specifiedinOnshoreOil&Gas OrderNo.3 shallbe adheredto.Allproductlinesenteringandleavinghydrocarbonstoragetankswillbe effectivelysealedinaccordancewithOnshoreOil&GasOrderNo.3.

p. A first productionconferencewillbe scheduledwithin15 days afterreceiptof the firstproductionnotice.

q. Unlessthepluggingistotakeplaceimmediatelyuponreceiptoforalapproval,theFieldOfficePetroleumEngineersmustbe notifiedat least24 hoursinadvanceofthepluggingofthewell,in orderthata representativemaywitnesspluggingoperations. Ifa wellis suspended orabandoned,allpitsmustbe fencedimmediatelyuntiltheyarebackfilled.The"SubsequentReportofAbandonment:(FormBLM3160-5)mustbe submittedwithin30 days after theactualpluggingofthewellbore,showinglocationofplugs,amountofcementineach, andamountofcasingleftinhole,and thecurrentstatus ofthesurfacerestoration.

r. PursuanttoOnshoreOilandGasOrderNo.1, lessees andoperatorshavetheresponsibilityto see that theirexploration,development,production,and construotionoperationsareconductedina mannerwhichconformswithapplicableFederallawsandregulationsandwithState and local laws and regulationsto theextentthatsuch Stateand local laws areapplicabletooperationsonFederalor Indianlands.

s. Thereshallbe nodeviationfromtheproposeddrilling,completion,and/orworkoverprogramas approved.Safedrillingandoperatingpracticesmustbe observed.Allwells,whetherdrilling,production,suspended,orabandoned,shallbe identifiedinaccordancewith43CFR3162.6. Thereshallbe a signormarkerwiththenameoftheoperator,lease serialnumber,wellnumber,andsurveyeddescriptionofthewell.AnychangesinoperationmusthavepriorapprovalfromtheBLM,VernalFieldOfficePetroleumEngineers.

ONSHOREORDERNO.1 ' CONFIDENTIAL- TIGHTHOLEGasco ProductionCompanyWilkinRidge Federal #43-21-10-17 Lease No.UTU-750832163' FSLand567 FELNESE Section21, T10S - R17E DRILLINGPROGRAMDuchesneCounty,Utah Page 13

t. ThisAPDis subjecttotherequirementthat,shouldthewellbe successfullycompletedforproduction,theBLM,VernalFieldOfficemustbe notifiedwhenit is placedina producingstatus.Suchnotificationwillbe bywrittencommunicationandmustbe receivedintheVernalFieldOfficeno laterthanthefifthbusinessdayfollowingthedate onwhichthewellisplacedonproduction.Thenotificationshallprovide,asa minimum,thefollowinginformationalitems:

1. Operatorname,address,and telephonenumber.2. Wellnameand number.3. Welllocation(1/4 1/4, Sec., Twn, Rng,and P.M.).4. Datewellwasplacedina producingstatus (dateoffirstproductionforwhich

royaltywillbe paid).5. Thenatureofthewell'sproduction,(i.e.,crudeoil,orcrudeoilandcasing

head gas, ornaturalgas andentrainedliquidhydrocarbons).6. The Federalor Indianlease prefixand numberonwhichthewellis located;

otherwisethenon-Federalornon-Indianlandcategory,i.e.,Stateorprivate.7. Unitagreementand/orparticipatingareanameandnumber,ifapplicable.8. Communitizationagreementnumber,ifapplicable.

u. Allundesirableevents(fires,accidents,blowouts,spills,discharges)as specifiedin NTL3Awillbe reportedtotheBLM,VernalFieldOffice.Majoreventsas definedinNTL3A,shallbereportedverballywithin24 hours,followedbya writtenreportwithin15 days. "OtherthanMajorEvents"willbe reportedinwritingwithin15days. "MinorEvents"willbe reportedontheMonthlyReportofOperationsandProduction.

BOP SCHEMATlC .5000 PSI WORKING PRESSUllE PLAN VIEW Cl IUlΠMANIFULD

PIIS FLARE GAS BUSTER(IF AVAILAULE)

FLOWLibDRILLING 2"-2000 PSI WPN1PPLE BALL VALVEFILL-UP LINE 2"-2000

PSI Wf DEALL OLLE_EDE/PAlllC

ANNULAR2

2-3"-5000(5000 PSI WP) PSI WP PLUG11" X 5000 PSI --- VALVES

SHAFFER FLANGE3" 000 PSI WP PLUG

-- ---- --- VALVE W/CAUGEoo o oo

E SHAFFER 2-3"-SUUU PS 'ADJUSTABLE MANUALBLIND RAMS 2--3' -5000 PSI WP PLUG VALVES POSITIVE CHOKE(DOUBLE RAM WP PLUG VALVESHYDRAULIC BOP POSillVE CHOKE WHil FROM CllOKE

5000 PSI WP) I-lYORAULIC REMO1E LlHEPIPE RAMS COWIROL (HCR)

5000 PSI PRESSURE GAUGE2"--5000 PSI WP

CHECK VALVE 3"-5000 PSI WP VALVE (HCIO,,DpS.5

00

3"-5UU0 PSI WP VALVE

2"-5000 PSI WP AUlOMAllC CHOKEVALVES (2) CH0KE LINE (i.D.)

KILL LINE

BULL PLUG E CASING HEAD 2"-5000 PSI WP VALVE lHE HYDRAULIC CLO5]NG UNIT WILL BE LOCAlED MORE lilAN30' FROM lHE WELLHEAD. CHOKE AND BLEED/PANIC LINESWILL GO 10 TilE PIT AND FLARE. ALL CONNECilONS IN

SURFACE CilOKE UNES AND MANIFOLD WILL BE FLANGED OR WELDED.CASING ALL FLANGES SHOULD BE RING JOIN f GASKET TYPE. ALL

lURNS IN UNES SHALL GE CONSlRUC1ED USING TARGEllNG90° lEES OR ELLS. ALL LINES SilALL BE

ONSHOREORDERNO.1 CONFIDENTIAL- TIGHTHOLEGascoProductionCompanyWilkinRidgeFederal#43-21-10-17 Lease No.UTU-750832163' FSLand 567 FELNESE Section21, T10S - R17E SURFACEUSEPLANDuchesneCounty,Utah Page 1

ONSHOREOIL&GASORDERNO.1NOTIFICATIONREQUIREMENTS

Title Name OfficePhone Ce/IPhone

PetroleumEngineer MattBaker 435-781-4490 435-828-4470

PetroleumEngineer MichaelLee 435-781-4432 435-828-7875

PetroleumEngineer James Ashley 435-781-4470 435-828-7874

PetroleumEngineer ° RyanAngus 435-781-4430 435-828-7368

SupervisoryPetroleumTechnician JamieSparger 435-781-4502 435-828-3913

NRS/EnviroScientist PaulBuhler 435-781-4475 435-828-4029

NRS/EnviroScientist KarlWright 435-781-4484

NRS/EnviroScientist HollyVilla 435-781-4404

NRS/EnviroScientist ChuckMacDonald 435-781-4441

NRS/EnviroScientist JanniceCutler 435-781-3400

NRS/EnviroScientist MichaelCutler 435-781-3401

NRS/EnviroScientist AnnaFigueroa 435-781-3407

NRS/EnviroScientist VerlynPindell 435-781-3402

NRS/EnviroScientist DarrenWilliams 435-781-4447

NRS/EnviroScientist NathanPacker 435-781-3405

AfterHours Contact Number: 435-781-4513 435-781-4410 Fax

ONSHOREORDERNO.1 CONFIDENTIAL- TIGHTHOLEGasco ProductionCompanyWilkinRidge Federal#43-21-10-17 Lease No.UTU-750832163'FSLand567 FELNESE Section21,T10S- R17E SURFACEUSEPLANDuchesneCounty,Utah Page 2

NOTIFICATIONREQUIREMENTS

LocationConstruction - Forty-Eight(48) hourspriortoconstructionof(NotifyNRS/EnviroScientist) locationandaccessroads.

LocationCompletion - Priortomovingon thedrillingrig.(NotifyNRS/EnviroScientist)

SpudNotice - Twenty-Four(24) hourspriortospuddingthewell.(NotifyPetroleumEngineer)

CasingString&Cementing - Twenty-Four(24)hourspriortorunningcasingand(NotifySupervisoryPetroleumTechnician) cementingallcasingstrings.

BOP &RelatedEquipmentTests - Twenty-Four(24) hourspriorto initiatingpressure(NotifySupervisoryPetroleumTechnician) tests.

FirstProductionNotice - WithinFive(5)businessdaysafternewwellbegins(NotifyPetroleumEngineer) orproductionresumesafterwellhas been off

productionformorethanninety(90)days.

The onsiteinspection forthesubjectwellsitewasconductedonWednesday,September19, 2007 atapproximately9:30a.m. Weatherconditionswereclear,coolandbreezy. Inattendanceat theonsiteinspectionwerethefollowingindividuals:

DarrenWilliams NaturalResourceSpecialist BureauofLandManagementBrandonMcDonald WildlifeBiologist Bureau ofLandManagementRandySmith FieldOperations PermitcoInc.ShonMcKinnon Consultant GascoProductionCompanyJake Huffman DirtContractorJesse Walton Surveyor UintahEngineeringandLandSurveyingBrianO'Hearn Ecologist SWCALindaSperry EnvironmentalSpecialist SWCA

1. EXISTINGROADS

a. Theproposedwellsiteis locatedapproximately22.65 milessoutheastofMyton,Utah.

ONSHOREORDERNO.1 CONFIDENTIAL- TIGHTHOLEGascoProductionCompanyWilkinRidge Federal#43-21-10-17 Lease No.UTU-750832163'FSLand 567' FELNESE Section21, T10S - R17E SURFACEUSEPLANDuchesneCounty,Utah Page 3

b. DirectionstothelocationfromMyton,Utahare as follows:

Proceedina southeasterlydirectionfromMyton,Utahforapproximately12.7 milestotheCastlePeak Mine.Turnrightandcontinuesoutherlyfor6.6milesuntilreachinga forkintheroad. Turnrightandproceedsoutherly2.7 miles. Turnleftontotheproposedroadre-routeat theproposed41-21welland proceedsouthwesterly0.15miles.Continuesouthwesterlyontheexistingroad0.2miles.Turnleftontotheproposedaccessandproceedsoutheasterly0.3 milesuntilreachingtheproposedlocation.

c. Forlocationofaccessroadswithina 2-Mileradius,see MapsA&B.

d. Improvementtoexistingmainroadswillnotbe required.

e. Allexistingroadswillbe maintainedandkeptingoodrepairduringalldrillingandcompletionoperationsassociatedwiththiswell.

f. ExistingroadsandnewlyconstructedroadsonsurfaceunderthejurisdictionofanySurfaceManagingAgencyshallbe maintainedinaccordancewiththestandardsoftheSMA.

2. NEWORRECONSTRUCTEDACCESSROADS

a. Approximately0.45 milesofnewconstructionwillbe necessary.

b. Themaximumgradeofthenewconstructionwillnotexceed8%.

c. Noculvertsor lowwatercrossingswillbe necessary.

d. The0.45milesofnewaccessroadwas centerlineflaggedat thetimeofstaking.

e. The use ofsurfacingmaterialis notanticipated,howeveritmaybe necessarydependingonweatherconditions.

f. Nocattleguardswillbe necessary,

g. Surfacedisturbanceandvehiculartravelwillbe limitedtotheapprovedlocationandapprovedaccessroute.Anyadditionalareaneededwillbe approvedinadvance.

ONSHOREORDERNO.1 CONFIDENTIAL- TIGHTHOLEGasco ProductionCompanyWilkinRidgeFederal#43-21-10-17 Lease No.UTU-750832163' FSLand 567 FELNESE Section21,T10S - R17E SURFACEUSEPLANDuchesneCounty,Utah Page 4

h. Allaccessroadswillbe constructedinaccordancewithGoldBookStandards.

i. Theroadwillbe constructed/upgradedtomeet thestandardsoftheanticipatedtrafficflowand allweatherroadrequirements.Construction/upgradingshallincludeditching,draining,graveling,crowingandcappingtheroadbedas necessarytoprovidea wellconstructedsaferoad. Priortoupgrading,theroadshallbe clearedofanysnowcoverand allowedtodrycompletely.Travelingoffthe30footright-of-waywillnotbe allowed.Roaddrainagecrossingsshallbe ofthetypicaldrycreekdrainagecrossingtype.Crossingsshallbe designedso theywillnotcausesiltationoraccumulationofdebrisinthedrainagecrossingnorshallthedrainagesbe blockedbytheroadbed.Erosionofdrainageditchesby runoffwatershallbe preventedbydivertingwateroffat frequentintervalsbymeansofcutduts.Upgradingshallnotbe allowedduringmuddyconditions.Shouldmudholesdevelop,theyshallbe filledinand detoursaroundthemavoided.

j. Nochemicalssubjectto reportingunderSARATitleIllinan amountequaltoor greaterthan10,000 poundswillbe used, produced,stored,transported,ordisposedofannuallyinassociationwiththedrillingofthiswell. Furthermore,noextremelyhazardoussubstances,as definedin40 CFR355,inthresholdplanningquantities,willbe used,produced,stored,transported,ordisposedofin associationwiththedrillingofthiswell.

k. NoBLMroadrightofwayswillbe necessary.

3. LOCATIONOFEXISTINGWELLSWITHINA1-MILERADIUSOFTHEPROPOSEDLOCATION(SeeMap"C")

a. Waterwells- none

b. Producingwells- one

c. Shut-inwells- none

d. Temporarilyabandonedwells- none

e. Disposalwells- none

f. Abandonedwells- one

g. DryHoles- none

ONSHOREORDERNO.1 CONFIDENTIAL- TIGHTHOLEGasco ProductionCompanyWilkinRidgeFederal#43-21-10-17 Lease No.UTU-750832163'FSLand567'FELNESE Section21,T10S - R17E SURFACEUSEPLANDuchesneCounty,Utah Page 5

4. LOCATIONOFEXISTINGAND/ORPROPOSEDPRODUCTIONFACILITIES

a. Allpermanentstructures(onsiteforsixmonthsorlonger)constructedorinstalled(includingoilwellpumpjacks)willbe paintedCovertGreen. Allfacilitieswillbe paintedwithinsixmonthsofinstallation.FacilitiesrequiredtocomplywiththeOccupationalSafetyandHealthAct(OSHA)willbe excluded.

b. Ifstoragefacilities/tankbatteriesareconstructedonthislease, thefacility/batteryor thewellpad shallsurroundedbya containmentdikeofsufficientcapacitytocontainat aminimum,theentirecontentsofthe largesttankwithinthefacility/battery,unlessmorestringentprotectiverequirementsaredeemednecessarybytheauthorizedofficer.

c. Ifthewellis productive,a productionfacilitylayoutwillbe submittedviasundry.

d. AIIloadinglineswillbe placedinsidethebermsurroundingthetankbattery.

e. Gasmeterrunsforeachwellwillbe locatedwithin500feet ofthewellhead.Thegasflowlinewillbe buriedoranchoreddownfromthewellheadtotheseparator.Meterrunswillbe housed and/orfenced.

f. Ifatanytimethefacilitieslocatedonpubliclandandauthorizedbythetermsofthe leaseare no longer included in the lease (duetoa contractionin theunitor otherlease or unitboundarychange),BLMwillprocessa changeinauthorizationtotheappropriatestatute.Theauthorizationwillbe subjecttoappropriaterentalorotherfinancialobligationasdeterminedbytheauthorizedofficer.

g. Anynecessarypitswillbe properlyfenced topreventanywildlifeentry.

h. Allsitesecurityguidelinesidentifiedin43 CFR3162.7regulationswillbe adheredto.

i. Alloff-leasestorage,off-leasemeasurement,orcomminglingon-leaseoroff-leasewillhavepriorwrittenapprovalfromtheDistrictManager.

j. Alloff-leasestorage,off-leasemeasurement,orcomminglingon-leaseoroff-leaseshallhavepriorwrittenapprovalfromtheBLM,VernalFieldOffice.

k. Allmeasurementpointsshallbe identifiedas pointofsales or allocationforroyaltydeterminationpriortothe installationoffacilities.

ONSHOREORDERNO.1 CONFIDENTIAL- TIGHTHOLEGascoProductionCompanyWilkinRidge Federal#43-21-10-17 Lease No.UTU-750832163' FSLand567 FELNESE Section21,T10S- R17E SURFACEUSEPLANDuchesneCounty,Utah Page 7

c. The use ofmaterialsunderBLMjurisdictionwillconformwith43 CFR3610.2.3.Constructionmaterialwillnotbe locatedon lease.

d. Noconstructionmaterialswillbe removedfromFederalland.

e. OperatorshallnotifyanyactiveGilsoniteminingoperatingwithin2 milesofthe location48hourspriortoany blastingduringconstructionforthiswell.

7. METHODSOFHANDLINGWASTEDISPOSAL

a. The reservepitwillbe constructedsoas nottoleak,break,orallowdischarge.

b. AttherequestoftheBLM,thereservepitwillbe linedwitha 12milliner. Iffracturedrockisencountered,thepitwillbe firstlinedwithsufficientbedding(eitherstrawor dirt)tocoveranyrocks.The linerwilloverlapthepitwallsandbe coveredwithdirtand/orrockstoholdit in place. Notrash,scrap pipe,etc., thatcouldpuncturethe linerwillbe disposedof in thepit. Morestringentprotectiverequirementsmaybe deemed necessarybytheA.O.

c. Burningwillnotbe allowed.Alltrashwillbe containedina trashcageanditscontentsremovedat theendofdrillingoperationsand hauledtoan approveddisposalsight.

d. Afterfirstproduction,producedwastewaterwillbe confinedtoa unlinedpitor storagetankfora periodnottoexceedninety(90)days. Duringthe90-dayperiod,inaccordancewithOnshoreOrderNo.7, anapplicationforapprovalofa permanentdisposalmethodand location,alongwiththerequiredwateranalysis,willbe submittedfortheAO'sapproval.Failuretofileanapplicationwithinthetimeallowedwillbe consideredanincidentofnoncompliance.

e. Drillcuttingsaretobe containedandburiedinthereservepit.

f. Anysaltsand/orchemicalswhicharean integralpartofthedrillingsystemwillbedisposedofinthesamemanneras thedrillingfluid.

g. Achemicalporta-toiletwillbe furnishedwiththedrillingrig.

ONSHOREORDERNO.1 ONFIDENTIAL- TIGHTHOLEGascoProductionCompanyWilkinRidgeFederal#43-21-10-17 Lease No.UTU-750832163' FSLand567'FELNESE Section21,T10S - R17E SURFACEUSEPLANDuchesneCounty,Utah Page 8

h. Theproducedfluidswillbe producedintoa testtankuntilsuchtimeas constructionofproductionfacilitiesiscompleted.Anyspillsofoil,gas saltwaterorotherproducedfluidswillbe cleanedupandremoved.

8. ANClLLARYFACILITIES

Thereare noairstrips,camps,or otherfacilitiesplannedduringthedrillingoftheproposedwell.

9. WELLSITELAYOUT

a. Theoperatoror his/hercontractorshallcontacttheBLMOfficeat 435/781-4400 forty-eight(48)hourspriortoconstructionactivities.

b. The reservepitwillbe locatedonthewestsideofthelocation.

c. Theflarepitwillbe locatedonthenorthsideofthereservepit, a minimumof100feetfromthewellhead and 20feet fromthereservepitfence,

d. Thestockpiledtopsoil(firstsixinches)willbe storedon thenortheastsideofthelocation,aroundcorner9 nearthewellpad.Topsoilalongtheaccessroutewillbe windrowedontheuphillside.

e. Accesstothewellpadwillbe fromthenorthas shownonthePit&Pad Layout.

f. See LocationLayoutfororientationofrig,crosssectionofdrillpadandcutsandfills.

g. The locationof mudtanks;reservepit,trashcage; piperacks;livingfacilitiesand soilstockpileswillbe shownontheLocationLayout.

h. Allpitswillbe fencedaccordingtothefollowingminimumstandards:

1. 39 inchnetwireshallbe usedwithtwostrandsofbarbedwireontopofthenetwire(barbedwireis notnecessaryifpipeorsome typeofreinforcementrodisattachedtothetopoftheentirefence).

ONSHOREORDERNO.1 ONFIDENTIAL- TIGHTHOLEGascoProductionCompanyWilkinRidgeFederal #43-21-10-17 Lease No.UTU-750832163' FSLand 567'FELNESE Section21, T10S - R17E SURFACEUSEPLANDuchesne County,Utah Page 9

2. Thenet wireshallbe nomorethan2-inches abovetheground. Thebarbedwireshallbe 3-inchesabovethenetwire. Totalheightofthefenceshallbe at least42-inches.

3. Cornerpostsshallbe cementedand/orbracedinsucha mannertokeep thefencetightat alltimes.

4. Standardsteel,wood,orpipepostsshallbe used betweenthecornerbraces.Maximumdistancebetweenanytwopostsshallbe nogreaterthan16 feet.

5. Allwireshallbe stretched,byusinga stretchingdevice,beforeitis attachedto° thecornerposts.

i. The reservepitfencingwillbe on threesidesduringdrillingoperationsand on thefourthside when therigmovesoffthe location.Pits willbe fencedand maintaineduntilcleanup.

10. PLANSFORSURFACERECLAMATION

ProducingLocation

a. Immediatelyuponwellcompletion,thelocationandsurroundingareawillbe clearedofallunusedtubing,equipment,debris,materials,trashand junknot requiredforproduction.

b. Immediatelyuponwellcompletion,anyhydrocarbonsonthepitshallbe removedinaccordancewith43 CFR3162.7-1.

c. Ifa plasticnylonreinforcedliner is used itshallbe tornandperforatedbeforebackfillingofthereservepit.

d. The reservepitandthatportionofthelocationnotneededforproductionfacilitiesoroperationswillbe recontouredtotheapproximatenaturalcontours.The reservepitwillbereclaimedwithin120daysfromthedate ofwellcompletion.Beforeanydirtworktakesplace,thereservepitmusthaveallfluidsand hydrocarbonsremovedand allcans,barrels,pipe,etc.,willbe removed.

ONSHOREORDERNO.1 CONFIDENTIAL- TIGHTHOLEGasco ProductionCompanyWilkinRidge Federal#43-21-10-17 Lease No.UTU-750832163'FSLand567'FELNESE Section21, T10S - Ri7E SURFACEUSEPLANDuchesneCounty,Utah Page 10

e. Reclamationofunuseddisturbedareasonthewellpad/accessroadnolongerneededforoperations,suchas cutslopes,andfillareaswillbe accomplishedbygrading,levelingand seedingas recommendedbytheAuthorizedOfficer.Aseedmixturewillbe specifiedbytheBureauofLandManagementintheirConditionsofApprovalforthesubjectwell.

Seedingwillbe performedimmediatelyafterthe locationhas been reclaimedandthepithas been backfilled,regardlessofthetimeofyear. Seed willbe broadcastandwalkedinwitha dozer.

f. Thetopsoilstockpilewillbe seededas soon as thelocationhas been constructedwiththesamerecommendedseedmix.Theseedwillbe walkedinwitha cat.

g. Theseed mixturewillbe recommendedbytheBLM.

PluggedandAbandoned

a. Atsuchtimeas thewellis pluggedandabandoned,theoperatorshallsubmitasubsequentreportofabandonmentandBLMwillattachtheappropriatesurfacerehabilitationconditionsofapproval.

b. Followingwellpluggingand abandonment,the location,theaccess roads,pipelines,andotherfacilitiesshallbe reclaimed.Alldisturbedsurfacesshallbe reshapedtoapproximatetheoriginalcontour;thetopsoilrespreadoverthesurface;and, thesurfacerevegetatedper BLMrequirements.

c. Otherreclamationmethodsincludingbutnot limitedtomulchingorsoiltreatmentsmayberequiredona site-specificbasis.

InterimSurfaceReclamationwillbe as follows:

a. Immediatelyafterfinalwellcompletion,thelocationandsurroundingareawillbe clearedofallunusedtubing,materials,trash,anddebrisnotrequiredforproductionoperations.

b. Beforeanydirt workassociatedwithlocationrestorationtakesplace,thereservepitshallbe as dryas possible.Alldebrisinthereservepitwillbe removed.Otherwaste andspoilmaterialswillbe disposedof immediately,weatherpermitting,uponfinalwellcompletion.

ONSHOREORDERNO.1 TONFIDENTIAL- TlGHTHOLEGascoProductionCompanyWilkinRidgeFederal#43-21-10-17 Lease No.UTU-750832163' FSLand 567 FELNESE Section21,T10S- R17E SURFACEUSEPLANDuchesne County,Utah Page 11

c. Ifa synthetic,nylonre-enforced,lineris used, theexcess linerwillbe cutoffand removedandtheremaininglinerwillbe tornandperforatedwhilebackfillingthereservepit.Alternatively,thepitwillbe pumpeddry,thelinerfoldedintothepit,andthepitbackfilled.The linerwillbe buriedtoa minimumoffour(4) feetdeep.

d. The reservepitwillbe reclaimedwithin180daysfromthedate offinalwellcompletion,weatherpermitting.

e. The reservepitandthatportionofthelocationnotneededforproductionandstoragefacilities,andeverydayproductionoperations,willbe reshapedtotheapproximateoriginalcontourstotheextentpossible. Thiswillbe completedbybackfillingandcrowningthepittopreventwaterfromstanding. Topsoilwillbe re-spreadup totheriganchorpoints,excludingtheareaneeded forproductionand storagefacilitiesandeverydayproductionoperations.Re-seeding,usingappropriatereclamationmethods,willoccurimmediatelyfollowingthere-spreadingoftopsoil,weatherpermitting.TheAuthorizedOfficerwillprovidea seed mixturetore-vegetatethe reservepitand otherunuseddisturbedareas atthetimeoftheonsite.

11. SURFACEOWNERSHIP

AccessRoads - ThemajorityoftheaccessroadsaremaintainedbytheCountyRoadDepartmentortheBureauofLandManagement.AportionofthenewconstructioncrossesSITLAlands. Allnecessaryeasementswillbe obtainedfromSITLA.

Wellpad - Thewellpad is locatedonlandsmanagedbytheBLM.

12. OTHERINFORMATION

a. AClass IIIarcheologicalsurveyhas been conductedbyGrandRiverInstituteand willbesubmittedunderseparate cover.

b. APaleontologicalEvaluationwas done byAldenHamblinandis attached.

c. ASpecialStatusPlantandWildlifeSpeciesreportwas done bySWCAandwillbesubmitteddirectlybySWCA.

ONSHOREORDERNO.1 CONFIDENTIAL- TIGHTHOLEGascoProductionCompanyWilkinRidge Federal#43-21-10-17 Lease No.UTU-750832163' FSLand567 FELNESE Section21, T10S - R17E SURFACEUSEPLANDuchesneCounty,Utah Page 12

d. Theoperatoris responsibleforinformingallpersonsintheareaswhoareassociatedwiththisprojectthattheywillbe subjecttoprosecutionforknowinglydisturbinghistoricorarchaeologicalsites, or forcollectingartifacts.Ifhistoricorarchaeologicalmaterialsareuncoveredduringconstruction,theoperatoris toimmediatelystopworkthatmightfurtherdisturbsuch materials,andcontacttheauthorizedofficer(AO).WithinfiveworkingdaystheAOwillinformtheoperatoras to:

-whether thematerialsappear eligiblefortheNationalRegisterofHistoricPlaces;

-the mitigationmeasurestheoperatorwilllikelyhave toundertakebeforethesitecanbeused (assuminginsitupreservationisnotnecessary);and

-a timeframefortheAOtocompleteand expeditedreviewunder36 CFR800.11toconfirm,throughtheStateHistoricPreservationOfficer,thatthefindingsoftheAOarecorrectand thatmitigationis appropriate.Iftheoperatorwishes,at anytime,to relocateactivitiestoavoidtheexpenseofmitigationand/orthedelaysassociatedwiththisprocess,theAOwillassumeresponsibilityforwhateverrecordationandstabilizationoftheexposedmaterialsmaybe required.Otherwise,theoperatorwillbe responsibleformitigationcosts. The AOwillprovidetechnicalandproceduralguidelinesfor theconductofmitigation.UponverificationfromtheAOthatrequiredmitigationhas been completed,theoperatorwillthenbe allowedtoresumeconstruction.

e. The operatorwillcontrolnoxiousweeds alongrights-of-wayforroads,pipelines,wellsites,orotherapplicablefacilities.Alistofnoxiousweeds maybe obtainedfromtheBLM,ortheappropriateCountyExtensionOffice.OnBLMadministeredlandit is requiredthataPesticideUseProposalshallbe submitted,andgivenapproval,priortotheapplicationofherbicidesorotherpesticidesorpossiblehazardouschemicals.

f. Drillingrigsand/orequipmentusedduringdrillingoperationson thiswellsitewillnotbestackedorstoredonFederalLandsaftertheconclusionofdrillingoperationsorat anyothertimewithoutBLMauthorization.However,ifBLMauthorizationis obtained,it is onlya temporarymeasure.

g. Alllease and/orunitoperationswillbe conductedinsucha mannerthatfullcomplianceismadewithallapplicablelaws,regulations,OnshoreOiland Gas Orders,theapprovedplanofoperations,and anyapplicableNoticetoLessees. Theoperatoris fullyresponsiblefortheactionsofhissubcontractors.Acopyoftheseconditionswillbefurnishedthefieldrepresentativeto insurecompliance.

ONSHOREORDERNO.1 ONFIDENTIAL- TIGHTHOLEGascoProductionCompanyWilkinRidgeFederal#43-21-10-17 Lease No.UTU-750832163'FSLand567'FELNESE Section21, T10S - R17E SURFACEUSEPLANDuchesneCounty,Utah Page 13

h. AcompletecopyoftheapprovedAPDshallbe onlocationduringconstructionofthelocationanddrillingactivities.

i. There willbe nodeviationfromtheproposeddrillingand/orworkoverprogramwithoutpriorapprovalfromtheAO.Safe drillingandoperatingpracticesmustbe observed.Allwells,whetherdrilling,producing,suspendedorabandonedwillbe identifiedinaccordancewith43 CFR3162.

j. "SundryNoticeand ReportonWells"(Form3160-5)willbe filedforapprovalforallchanges ofplansandotheroperationsinaccordancewith43 CFR3162.3-2.

k. Thispermitwillbe validfora periodoftwoyearsfromthedate ofapproval.Anextensionperiodmaybe granted,ifrequested,priortotheexpirationoftheoriginalapprovalperiod.Afterpermittermination,a newapplicationwillbe filedforapprovalforanyfutureoperations.

l. Theoperatoror hiscontractorshallcontacttheBLMOfficesat 435/781-4400 48 hourspriortoconstructionactivities.

m. The BLMOfficeshallbe notifieduponsitecompletionpriortomovingon thedrillingrig.

AGENTANDOPERATOR'SCONTACTINFORMATION

PermitMatters Drilling&CompletionMatters

PERMITCOINC. GascoProduction Company14421 CountyRoad 10 8 InvernessDriveEast, Suite100Ft.Lupton,CO80621 Englewood,CO80112303/857-9999(0) John Longwell303/857-0577(F) 303/483-0044(0)LisaSmith 303/483-0011(F)

ShawnElworthy- FieldSuperintendentRoosevelt,UT435-823-4272 (cell)

PIPELINElNFORMATIONWilkinRidge Federal#43-21-10-17

1. The typeofpipelineis a singlewellflowline.

2. Theoutsidediameter(O.D.)ofallwillbe 8 inchesmaximum.

3. Theanticipatedproductionthroughthe lineisapproximately2000 MCFperday.

4. Theanticipatedmaximumtestpressureis 1000 psi.

5. Theanticipatedoperatingpressureis 100-200 psi.

6. The typeofpipeis steel.

7. The methodofcouplingiswelded.

8. Thereare nootherpipelinestobe associatedinsame rightofway.

9. Therewillbe otherobjectstobe associatedin the same rightofway.(Risers,Pig LaunchersPigTraps,metersandotherappurtenancesas required.)

10. The totallengthofpipelineisapproximately13,100 feet - see MapD.

11. The linewillbe laidonsurfacebecause oftherockysurfaceas shownonMap D. Wherepossible,thepipelinewillfollowexistingor proposedroads.

12. Theconstructionwidthfortotalsurfacedisturbingactivitiesis30 feet.

13. Theestimatedtotalacreageinvolvingallsurfacedisturbingactivitiesis 5.7 acres.

14. Anysurfacedisturbancecreatedas a resultofthepipelineconstructionwillbe reclaimedutilizingthereclamationproceduresand seed mixturespecifiedbytheBureauofLandManagement.

15. The linewillbe testedwithgas pressureto 1000psi.

GASCO PRODUCTION COMPANYWILKIN RIDGE FEDERAL #43-21-10-17

LOCATED IN DUCHESNE COUNTY, UTAHSECTION 21, T108, R17E, S.L.B.&M.

PHOTO: VIEW FROM CORNER #5 TO LOCATION STAKE CAMERA ANGLE: EASTERLY

PROPOSED ACCESS

PHOTO: VIEW FROM BEGINNING OF PROPOSED ACCESS CAMERA ANGLE: EASTERLY

Uintah Engineering & Land Surveying 1,OCATION PHOTos 07 03 06 moro85 South 200 East Vemal, Utah 84078 ONTH DAY YEAR

Since 1964 - 435-789-1017 uels@uelsinc.com TAKENBY:J.W. DRAWNBY:LK. REVISED:00-0

YTON 2.

6 6 MI. +/

PROPOSED LOCATION: 2.7 MI. +/WILKIN RIDGE FEDERAL#43-21-10-17

SEE TO B

LEGEND: GASCO PRODUCTION COMPANYPROPOSED LOCATION N WILKIN RIDGE FEDERAL #43-21-10-17

SECTION 21, T10S, R17E, S.L.B.&M.2163' FSL 567'

T10SI

RIDFE

ENRL

I

LEGEND: GASCO PRODUCTION COMPANYEXISTING ROAD N WILKIN RIDGE FEDERAL #43-21-10-17

----------- PROPOSED ACCESS ROAD SECTION 21, T10S, R17E, S.L.B.&M.

-2163' FSL 567' FEL

Uintah Engineering & Land Surveying TOPOGR A PH I c 07 03 0685 South 200 East Vernal, IJtah 84078 M A P 10NTI DAY YEAR

(435) 789-1017 * FAX (435) 789-1813 CALE:1" = 2000' DRAWNBY:L.K. ISED:

•#34-16

PROPOSlD LOCATION: /-WILKIN RIDGE FEDERAL , lo /B#43-21-10-17 / /

LEGEND: GASCO PRODUCTION COMPANYpf DISPOSAL WELLS WATER WELLS N WILKIN RIDGE FEDERAL #43-21-10-17O PRODUCING WELLS ABANDONED WELLs SECTION 21, T10S, R17E, S.L.B.&M.-gSHUT IN WELLS * TEMPORARILY ABANDONED 2163' FSL 567' FEL

Uintah Engineering & Land Surveying TOPOGR A PH I C 07 03 0685 South 200 East Vernal, Utah 84078 M A P ONTil DAY YEAR

(435) 789-1017 * FAX (435) 789-1813SCALE:I" = 2000' DRAWNBY:L.K. REVISED:

1

PROPOSED LOCATION:G

23

R

APPROXIMATE TOTAL PIPELINE DISTANCE = 13,100' +/-LEGEND: GASCO PRODUCTION COMPANY

PROPOSED ACCESS ROAD N WILKIN RIDGE FEDERAL #43-21-10-17---------- EXISTING PIPELINE----------- PROPOSED PIPELINE SECTION 21, T10S, R17E, S.L.B.&M.-----------

sROR0 G

TENWELLS) 2163' FSL 567' FEL

- Uintah Engineering & Land Surveying TOPOGR A PH I C 07 03 06 i85 South 200 East Vernal, Utah 84078 M A P 310FrH DAY VEAR |(435) 789-1Oi7 * KTAX (435) 789-1813 SCALE:1" = 2000' DRAWNBY:LK. REVISED:

GASCO PRODUCTION COMMNYLOCATION LAYOUT FOR

Approx.

WILKINRIDGE FEDERAL #43-21-10-17 Toe ofPrevoi;¡n*

Winds SECTION 21, T10S, R17E, S.L.B.&M.Fill slope

2163' FSL 567' FEL E-18.6Propdosed AccSta

J+80

B. 876'.7

r esC-1.4'8. 896. 7'

SCALE: 1" = 50' . I iffitDATE: 06-30-06 o iA $ *

Drawn By S.L.

Approx. :: 0•Top ofCut Slope

PitTopsoi/

I I I I I

ELARE P/T , PIPE RACKS

C-y. iE/. 904

C - 7.J C- J. 620 WIDE BENCH 969'

20 C

E/. 9125' 75'D HOUSE

150' Sta. 1+80C-2Z2

-13.1

(btm. pit) ggg g'C- 4E/. 902.7

Tota/ Pit Capacity - - Q I PUMPW/2' of Freeboard z= 1J,400 Ob/s. ±Total Pit Volume MUD SHED

J. 710 Cu. Yds.J - --- TOILET

TR SH

HOPPER

(10' Deep) - I y I

R£SER E P/TSFUEL _Sta. 0+1 STORAGE

TANK

Round Corners

. 2 20' WIDE BENCH g 7 E ting - 5'

Elev. Ungraded Ground at Location Stake = 5898.9, UINTAH ENGINEERING & LAND SURVEYINGE/ev. Graded Ground at Location Stoke = 5895. J 85 So. 200 East * Vernal. Utah 84078 * (801)

GASCO PRODUCTION COMN

FEDERALSTIPULATIONSANDTIMINGRESTRICTIONS

Therewillbe no drillingfromMay1" - June 30thfortheprotectionofSage GrouseandnodrillingfromMay16'-July15thÍOr theprotectionof FerruginousHawk.

ARCHEOLOGY

AClass lilArcheologicalSurveywasconductedbyGrandRiverInstitute.The reportwillbe submittedunderseparatecoverdirectlybyGrandRiverinstitute.

PALEONTOLOGY EVALUATION SHEET

PROJECT: GASCO ENERGY WELL - Wilkin Ridge Federal #43-21-10-17

LOCATION: Twenty four miles south of Roosevelt, Utah in 2163' FSL 567' FEL of section 21,T10S, Rl7E, Duchesne County, Utah.

OWNERSHIP: PRIV[ ] STATE[ ] BLM[ X ] USFS[ ] NPS[ ] IND[ ] MIL[ ] OTHER[ ]

DATE: September 27, 2007

GEOLOGY/TOPOGRAPHY: Rock exposures in the area are of the lower part of the lowermember of the Uinta Formation, Upper Eocene age. The general area has rounded hills and valleybottoms on an old erosional surface with a lot of slope wash alluvium and occasional outcrops ofsandstone, tan and green. The well pad is in a small draw south, over the rim from Petes Wash. Theaccess road comes in from the northwest over an older rehabbed road, then goes south over a smallrise to the well pad. The well pad sits on an east - southeast slope with the pit into the hill on thewest.

PALEONTOLOGY SURVEY: YES [ X ] NO Survey [ ] PARTIAL Survey [ ]The well pad , road and pipeline routes were surveyed.

SURVEY RESULTS: Invertebrate [ ] Plant [ ] Vertebrate [ ] Trace [ ] No Fossils Found [ X ]

PALEONTOLOGY SENSITIVITY: HIGH [ ] MEDIUM [ ] LOW [ X ] (PROJECT SPECIFIC)

MITGATION RECOMMENDATIONS: NONE [ X ] OTHER [ ] (SEE BELOW)

There is always some potential for discovery of significant paleontological resources in the UintaFormation. If significant vertebrate fossils (mammals, crocodiles, complete turtle shells, etc.) areencountered during construction, work should stop in that area and a paleontologist contacted toevaluate the material discovered.

PALEONTOLOGIST: Alden H. HamblinA.H Hamblin Paleontological Consulting, 3793 N. Minersville Highway, Cedar City, Utah 84720 (435) 867-8355Utah State Paleontological Permit # 04-339, BLM paleontological Resources Permit # UT-S-05-02.Utah Professional Geologist License -

PROPOSED OCATION:WILKIN RIDGE FEDERAL#43-21-10-17

329

LEGEND GASCO PRODUCTIO!\ COMPANYruorosvova suo o N svitKIN Ricar FEoKRAL#43-21-in-17-----

- rytynscewet rnome vor SECTION 2L TIUS., RI7F S.LB.&R

..... 2163' FSL ¾T FEL

Diutah ÈngineerÍ rv Ín 4 (NS Notati: 200 3,ast ks:rrasti. EN: to M·¾i7H ItWil IN 31.AR(4..45) 7W)-164 7 ^ fok % (434) VWA IN i 3

DRAu3 BY:L.K. (REVISED:

PK)RKSHEET

APPLICATION FOR PERMIT TO DRILL

APD RECEIVED: 01/14/2008 API NO. ASSIGNED: 43-013-33870

WELL NAME: WILKIN RIDGE FED 43-21-10-17

OPERATOR: GASCO PRODUCTION ( N2575 ) PHONE NUMBER:303-857-9999

CONTACT: VENESSA LANGMACHER

PROPOSED LOCATION: INSPECT LOCATN BY: / /

NESE 21 100S 170E Tech Review Initials DateSURFACE: 2163 FSL 0567 FEL

BOTTOM: 2163 FSL 0567 FEL Engineering

COUNTY: DUCHESNE GeologyLATITUDE: 39.92816 LONGITUDE: -110.0034

UTM SURF EASTINGS:585159 NORTHINGS: 4420050 Surface

FIELD NAME: UNDESIGNATED ( 2 )

LEASE TYPE: 1 - Federal

LEASE NUMBER: UTU-75083 PROPOSED FORMATION: BLKHK

SURFACE OWNER: 1 - Federal COALBED METHANE WELL? NO

RECEIVED AND/OR REVIEWED: LOCATION AND SITING:

V Plat R649-2-3.

Bond: Fed[1] Ind[] Sta[] Fee[]Unit: WILKIN RIDGE DEEP

(No- UT-1233 )Potash (Y/N) 1,7' R649-3-2. General

Oil Shale 190-5 (B) or 190-3 or 190-13 Siting: 460 From Qtr/Qtr & 920' Between Wells

Water Permit R649-3-3. Exception

(No. 43-1721 )RDCC Review (Y/N)

Drilling Unit

Board Cause No:(Date: )Eff Date:

Fee Surf Agreement (Y/N) Siting:

Alk Intent to Commingle (Y/N) R649-3-11. Directional Drill

COMMENTS:

STIPULATIONS:

lWILKIN RIDGEFED14-15-10-0

WILKIN RIDGE SIwasT RIVER 34-16-10-¤¾

^ BEND 16-17-t0-0e

T10S R17E

WILKI E E

MILE FLAT FIELD

IWILKIN RIDGEFED43-21-10-9

PEID 7w!LKIN RIDGE WILKIN RIDGE WAM EFED 43- -10-17 FED23-21-10-17

II

WILKIN RIDGE (DEEP) UNIT i

WILKIN RIDGE WILKIN RIDGEJUNWER

FED 21- 10-9 FED+1-28-10-¤

• FEDERAL Ii

II1

OPERATOR: GASCO PROD CO (N2575)UTAH

SEC:21 T.10S R.17E DNRFIELD: UNDESIGNATED (002)

COUNTY: DUCHESNEWells Status

SPACING: R649-3-2 / GENERAL SITING µ GAS INJECTIONO GAS STORAGE OIL, GAS & MINING× LOCATION ABANDONED

NEW LOCATIONField Status Unit Status PLUGGED & ABANDONED

ABANDONED EXPLORATORY PRODUCING GASACTIVE S LRAGE OD IN OILCOMBI NED NF SECONDARY SHUT-IN OIL W EINA CTIVE LING TEMP. ABANDONEDPROPOSED

PP GAS O TEST WELL

TED PP GEOTHERML A WATER INJECTION SPP OIL g WATER SUPPLY PREPARED BY DIANA MASONSECONDARY WATER DISPOSAL DATE: 16-JANUARY-2008TERMINATED

i (1/17/2008) Diana Mason - Willkin Ri doc Page i

United States Department of the InteriorBUREAU OF LAND MANAGEMENT

Utah State OfficeP.O. Box 45155

Salt Lake City, Utah 84145-0155

IN REPLY REFER TO:3160(UT-922)

Memorandum

January 16, 2008

To: Assistant District Manager Minerals, Vernal District

From: Michael Coulthard, Petroleum Engineer

Subject: 2008 Plan of Development Wilkin Ridge Unit, Duchesne andUintah County, Utah.

Pursuant to email between Diana Whitney, Division of Oil, Gas and Mining, and MickeyCoulthard, Utah State Office, Bureau of Land Management, the following well isplanned for calendar year 2008 within the Wilkin Ridge Unit, Duchesne County, Utah.

API# WELLNAME LOCATION

(Proposed PZ Blackhawk)

43-013-33870 Wilkin Ridge Fed 43-21-10-17 Sec 21 T10S R17E 2163 FSL 0567 FEL

This office has no objection to permitting the well at this time.

Is/ Michael L. Coulthard

bcc: File - Wilkin Ridge UnitDivision of Oil Gas and MiningCentral FilesAgr. Sec. ChronFluid Chron

State a UtahDEPARTMENT OF NATURAL RESOURCES

MICHAEL R. STYLERExecutive Director

JON M. HUNTSMAN, JR.Division of Oil Gas and Mining

Governor JOHN R. BAZADivision Director

GARY R. HERBERTLieutenant Governor

January 17, 2008

Gasco Production Company8 lnverness Dr. East, Ste. 100Englewood, CO 80112

Re: Wilkin Ridge Federal 43-21-10-17 Well, 2163' FSL, 567' FEL NE SE, Sec. 21,T. 10 South, R. 17 East, Duchesne County, Utah

Gentlemen:

Pursuant to the provisions and requirements of Utah Code Ann.§ 40-6-1 et seq., UtahAdministrative Code R649-3-1 et seq., and the attached Conditions of Approval, approval to drillthe referenced well is granted.

This approval shall expire one year from the above date unless substantial and continuousoperation is underway, or a request for extension is made prior to the expiration date. The APIidentification number assigned to this well is 43-013-33870.

Sincerely,

Gil HuntAssociate Director

pabEnclosures

cc: Duchesne County AssessorBureau of Land Manageinent, Vernal Office

UTAH

DNR

1594 West North Temple, Suite 1210, PO Box 145801, Salt Lake City, UT 84114-5801telephone (801) 538-5340 • facsimile (801) 359-3940 •TTY (801) 538-7458 • wwwogm.utakgov OIL, GAS &

Operator: Gasco Production Company

Well Name & Number Wilkin Ridge Federal 43-21-10-17

API Number: 43-013-33870Lease: UTU-75083

Location: NE SE Sec.__21_ T. 10 South R. 17 East

Conditions of Approval

l. GeneralCompliance with the requirements of Utah Admin. R. 649-1 et seq., the Oil and GasConservation General Rules, and the applicable terms and provisions of the approvedApplication for permit to drill.

2. Notification RequirementsNotify the Division within 24 hours of spudding the well.

• Contact Carol Daniels at (801) 538-5284.

Notify the Division prior to commencing operations to plug and abandon the well.• Contact Dustin Doucet at (801) 538-5281 office (801) 733-0983 home

3. Reporting RequirementsAll required reports, forms and submittals will be promptly filed with the Division,including but not limited to the Entity Action Form (Form 6), Report of WaterEncountered During Drilling (Form 7), Weekly Progress Reports for drilling andcompletion operations, and Sundry Notices and Reports on Wells requesting approval ofchange of plans or other operational actions.

4. State approval of this well does not supersede the required federal approval, which must beobtained prior to drilling.

5. This proposed well is located in an area for which drilling units (well spacing patterns) havenot been established through an order of the Board of Oil, Gas and Mining (the "Board").In order to avoid the possibility of waste or injury to correlative rights, the operator isrequested, once the well has been drilled, completed, and has produced, to analyzegeological and engineering data generated therefrom, as well as any similar data fromsurrounding areas if available. As soon as is practicable after completion of its analysis,and if the analysis suggests an area larger than the quarter-quarter section upon which thewell is located is being drained, the operator is requested to seek an appropriate orderfrom the Board establishing drilling and spacing units in conformance with such analysisby filing a Request for Agency Action with the

STATE OF UTAH FORM 9O ousAROTMNELOOLNAGAANEDSoMIRNICONFllENTIAL=;:::NATIONANDSERIALNUMBER:SUNDRY NOTICES AND REPORTS ON WELLS 6 NDIAN,ALLOTTEEORTRIBENAME:

7. UNITor CA AGREEMENT NAME:Do not use this form for proposals to drillnew wells, significantly deepen existing wellsbelow cunentbottom-hole depth, reenterplugged wells, or t° NAdrill horizontal laterals. Use APPLICATIONFOR PERMIT TO DRILLform for such proposals.

1. TYPE OF WELL 8. WELL NAMEand NUMBER:OIL WELL GAS WELL OTHER WilkinRidge Federal 43-21-10-17

2. NAMEOF OPERATOR: 9. API NUMBER:

Gasco Production Company 43013338703. ADDRESS OF OPERATOR: PHONE NUMBER: 10. FIELDAND POOL, OR WILDCAT:

8 Invemess Dr E, Ste 100 Englewood STATE Co y, 80112 (303) 483-0044 Wildcat4. LOCATIONOF WELL

FOOTAGESATSURFACE: 2163' FSL & 567' FEL COUNTY: DUChesne

QTR/QTR, SECTION, TOWNSHIP, RANGE, MERIDIAN: NESE 21 10S 17E STATE:UTAH

n. CHECK APPROPRIATE BOXES TO INDICATENATURE OF NOTICE, REPORT, OR OTHER DATATYPE OF SUBMISSION TYPE OF ACTION

O ACIDIZE DEEPEN O REPERFORATE CURRENT FORMATIONNOTICE OF INTENT(Submit in Duplicate) ALTER CASING FRACTURE TREAT O SIDETRACKTO REPAIR WELL

Approximate date work wlli start: CASING REPAIR NEW CONSTRUCTION O TEMPORARILYABANDONO CHANGETO PREVIOUS PLANS OPERATOR CHANGE TUBING REPAIRO CHANGETUBING O PLUG ANDABANDON VENT OR FLARE

O SUBSEQUENT REPORT CHANGE WELL NAME PLUG BACK O WATER DISPOSAL(Submit Original Form Only)

O CHANGE WELL STATUS PRODUCTION (STARTIRESUME> O WATER SHUT-OFFDate ofwork completion:O COMMINGLEPRODUCING FORMATIONS RECLAMATIONOF WELL SITE OTHER: Extend PermitO CONVERT WELL TYPE O RECOMPLETE - DIFFERENT FORMATION

12. DESCRIBE PROPOSED OR COMPLETED OPERATIONS. Clearly show all pertinent detalls Including dates, depths, volumes, etc.

Gasco Production Company would like to request a one year extension on this APD from the date it is due to expire(1/17/2009)

Approvedby theUtah Divisionof

Oil,Gas and Mining

COPYSENTTOOPERATOR

NAME (PULEEASEP TTE PfOd2uction Clerk

(This space for State vse on ) RECEIVEDJAN1 2 2009

(5/2000) (See Instructions on Reverse Side) DIV.0FOIL,GAS&

Application for Permit to DrillRequest for Permit Extension

Validation(thisform should accompany the Sundry Notice requesting permit extension)

AP I: ääoiäääsiäWell Name: WHkin Ridge Federal 43-21-10-17Location: NE SE Section 21-T10S-R17ECompany Permit Issued to: GascoProduction CompanyDate Original Permit issued: 1/17/2008

The undersigned as owner withlegal rights to drillon the property as permittedabove, hereby verifies that the information as submitted in the previouslyapproved application to drill, remains valid and does not require revision.

Following is a checklistof some items related to the application,which should beverified.

If located on private land, has the ownershipchanged, if so, has the surfaceagreement been updated7 YesONom

Have any wells been drilled in the vicinityof the proposed well which would affectthe spacing or siting requirements for thislocation7 YesO Nom

Has there been any unit or other agreements put in place that could affect thepermitting or operation of thisproposed well? YesO NoO

Have there been any changes to the access route including ownership, or right-of-way, which could affect the proposed location? YesO No IZI

Has the approved source of water for drillingchanged? YesO NoO

Have there been any physical changes to the surface location or access routewhich willrequire a change in plans from what was discussed at the onsiteevaluation? YesO NoO

Is bonding still in place, which covers thisproposed well? Yes NoO

Sig at re Date

Title: roduction Clerk

Representing: Gasco Production Company

f RECEIVEDJAN1 2 2009

DIV.0FOIL,GAS&

Form 3160-3 FORM APPROVED(Au'gust2007) RECEIVED OMB No. 1004-Ol37

UNITED STATES Expires July 31, 2010DEPARTMENT OF THE INTERIOR 5. Lease Serial No.

BUREAU OF LAND MANAGEMENT UTU-750836. If Indian, Allottee or Tribe NameAPPLICATIONFORPERMITTODRILLORREERM N/A

la. Type of Work: DRILL REENTER 7. If Unit or CA Agreement, Name and No.

WilkinRidge8. Lease Name and Well No.

lb. Type of Well: On Wel Gas Wel Other Single Zone Multiple Zone WilkinRidge Federal #43-21-10-172. Name of Operator 303-483-0044 8 Inverness Dr.East,Suite 100 9. API Well No.

Gasco ProductionCompany . Englewood,CO80112 //3- 03- 331 7 Q3. Name of Agent 303/857-9999 . 14421CountyRoad 10 10. Field and Pool, or Exploratory

PermitCoInc. - Agent Fort Lupton,CO80621 WilkinRidge4. Location of Well (Report location clearly and in accordance with any State requirements.*) I l. Sec., T., R., M., or Blk, and Survey or Area

At surface 2163' I¯SLand 56T FEL Section 21,T10S- Ri7EAt proposed prod. zone NESE14. Distance in miles and direction from nearest town or post office* 12. County or Parish 13. State

Approximately22.65miles southeastofMyton,UT Duchesne Utahli Distance from proposed* 16. No. of Acres in lease 17. Spacing Unit< edicated to this welllocation to nearest

property or lease line, ft..- - 567(Also to nearest drig. umt Ime, ifany) 1917.68 40 Acres; NESE

18. Distance from proposed location* 19. Proposed Depth 20. BLM/BIA Bond No. on fileto nearest well, dnllmg, completed,applied for, on this lease, ft None 13,065' Bond#UT-1233

2L Elevations (Show whether DF, KDB, RT, GL, etc.) 22. Approximate date work will start* 23. Estimated duration

5899' GL ASAP 24 Days24. Attachments

The following,completed in accordance with the requirements of Onshore Oil and Gas Order No. 1, shall be attached to this form:

L Well plat certified by a registered surveyor. 4. Bond to cover the operations unless covered by an existing bond on file (see

2. A Drilling Plan. Item20 above).3. A Surface Use Plan (if the location is on National Forest System Lands, the 5. Operator certification.SUPO must be filed with the appropriate Forest Service Office). 6. Such other site specific information and/or plans as may be required by the

00MDENilAL-TIGHTHOLE BLM.25. S ature Name (Printed/Typed) ' Date

TitleVenOSSa Langmacher 10/19/2007

AuthorizedAgentfor Gasco ProductionCompanyApproved by (Signature) Name (Printed/Typed) D

Title AS% 95· ½ lofficewe ramesowees : VERNALRELDOFFICE.

Application approval does not warrant or certify ta applicant holds legal or equitable title to those rights in the subject lease which would entitle the applicant toconductoperationsthereon. "ONDITIONS OF APPROVALATTACHEDConditions of approval, if any, are attachTitle.18 U.S.C. Section 1001and Title 43 U.S.C. Section 1212, make it a crinte for any person knowingly and willfully to make to any departm ey.of tbtUnited States any false, fictitious or fraudulent statements or representations as to any matter within itsjurisdiction. iVáD*(Instructions on reverse) NOTICEOFAPPROVAL

w:NAR3O2009

¡VOS:Mjo DT

UNITED STATES DEPARTMENT OF THE INTERIORBUREAU OF LAND MANAGEMENT

VERNAL FIELD OFFICE170 South 500 East VERNAL, UT 84078 (435) 781-4401

CONDITIONS OF APPROVAL FOR APPLICATION FOR PERMIT TO DRILL

Company: Gasco Production Company Location: NESE, Sec. 21, T10S, R17EWell No: Wilkin Ridge Federal 43-21-10-17 Lease No: UTU-75083API No: 43-013-33870 Agreement: Wilkin Ridge Unit

Title Name Office Phone Number Cell Phone NumberPetroleum Engineer Matt Baker (435) 781-4490 (435) 828-4470Petroleum Engineer Michael Lee (435) 781-4432 (435) 828-7875Petroleum Engineer Ryan Angus (435) 781-4430 (435) 828-7368Supervisory Petroleum Technician: Jamie Sparger (435) 781-4502 (435) 828-3913Supervisory NRS Karl Wright (435) 781-4484NRS/Enviro Scientist Christine Cimiluca (435) 781-4475NRS/Enviro Scientist Dan Emmett (435) 781-3414 (435) 828-4029NRS/Enviro Scientist Anna Figueroa (435) 781-3407 (435) 828-3548NRS/Enviro Scientist Lori Ford (435) 781-4406NRS/Enviro Scientist David Gordon (435) 781-4424NRS/Enviro Scientist James Hereford (435) 781-3412 (435) 828-3546NRS/Enviro Scientist Chuck Macdonald 435) 781-4441 (435) 828-7481NRS/Enviro Scientist Nathan Packer (435) 781-3405 (435) 828-3545NRS/Enviro Scientist Paul Percival (435) 781-4493 (435) 828-7381NRS/Enviro Scientist Verlyn Pindell (435) 781-3402 (435) 828-3547NRS/Enviro Scientist Holly Villa (435) 781-4404 (435) 828-3544

Fax: (435) 781-3420

A COPY OF THESE CONDITIONS SHALL BE FURNISHED TO YOURFIELD REPRESENTATIVE TO INSURE COMPLIANCE

All lease and/or unit operations are to be conducted in such a manner that full compliance is made with the applicablelaws, regulations (43 CFR Part 3160), and this approved Application for Permit to Drill including Surface andDownhole Conditions of Approval. The operator is considered fully responsible for the actions of his subcontractors.A copy of the approved APD must be on location during construction, drilling, and completion operations. Thispermit is approved for a two (2) year period, or until lease expiration, whichever occurs first. An additionalextension, up to two (2) years, may be applied for by sundry notice prior to expiration.

NOTIFICATION REQUIREME_N_TiLocation Construction - Forty-Eight (48) hours prior to construction of location and(Notify Environmental Scientist) access roads.Location Completion - Prior to moving on the drilling rig.(Notify Environmental Scientist)Spud Notice - Twenty-Four (24) hours prior to spudding the well.(Notify Petroleum Engineer)Casing String & Cementing - Twenty-Four (24) hours prior to running casing and cementing(Notify Supv. Petroleum Tech.) all casing strings.BOP & Related Equipment Tests - Twenty-Four (24) hours prior to initiating pressure tests.(Notify Supv. Petroleum Tech.)First Production Notice - Within Five (5) business days after new well begins or(Notify Petroleum Engineer) production resumes after well has been off production for more

than ninety (90)

Page 2 of 8Well:WR Fed 43-21-10-17

3/12/2009

SURFACE USE PROGRAMCONDITIONS OF APPROVAL (COAs)

• All new and replacement internal combustion gas field engines of less than or equal to 300 design-rated horsepower must not emit more than 2 gms of NOx per horsepower-hour. This requirementdoes not apply to gas field engines of less than or equal to 40 design-rated horsepower.

• All and replacement internal combustion gas field engines of greater than 300 design ratedhorsepower must not emit more than 1.0 gms of NOxper horsepower-hour.

• If there is an active Gilsonite mining operation within 2 miles of the well location, operator shallnotify the Gilsonite operator at least 48 hours prior to any blasting during construction.

• If paleontological materials are uncovered during construction, the operator is to immediately stopwork and contact the Authorized Officer (AO). A determination will be made by the AO as to whatmitigation may be necessary for the discovered paleontologic material before construction cancontinue.

APD CONDITIONS OF APPROVAL (COAs)

Surface Conditions of Approval or monitoring are listed in the Surface Use Plan of the APDs.

The operator will control noxious weeds along access road use authorizations, pipeline route authorizations,well sites, or other applicable facilities by spraying or mechanical removal. On BLM administered land, itis required that a Pesticide Use Proposal be submitted, approved and a permit issued prior to the applicationof herbicides, pesticides or possibly hazardous chemicals.

Timing restriction during construction and drilling activities to minimize disturbance during sage grousenesting periods from March 1- June 30.

The operator shall construct a low water crossing along the proposed access road in order to maintainexisting drainage.

Within 90 calendar days of the approval date for this Application for Permit to Drill (APD), theoperator/lessee shall submit to the Authorized Officer (AO), on Sundry Notice Form 3160-5, an InterimSurface Reclamation Plan for surface disturbance on well pads, access roads, and pipelines. At a minimum,this will include the reshaping of the pad to the original contour to the extent possible; the re-spreading ofthe top soil up to the rig anchor points; and, the area reseeded using appropriate reclamation methods. TheAO will provide written approval or concurrence within 30 calendar days of receipt. The following seedmix shall be

Page 3 of 8Well: WR Fed 43-21-10-17

3/12/2009

Type lbs.lacreWestern Wheatgrass Agropyron smithii 4Needle and Threadgrass Stipa comata 4Hy-crest Crested Agropyron cristatum 4wheatgrass** Seed shall be drilled; but if broadcasted double the pounds per acreused and work the solids mechanically to cover the seed.

Following well plugging and abandonment, the location, access roads, pipelines, and other facilities shall bereclaimed. All disturbed surfaces shall be reshaped to approximate the original contour; the top soil re-spread over the surface; and, the surface re-vegetated. The following seed mix shall be used, unless BLMpersonnel determine that conditions have changed and another mix will be more suitable:

Type lbs.lacreShadscale Atriplex confertifolia 3Winterfat Eurotia lanata 3Galleta grass Hilaria jamesil 3Indian Rice Grass Oryzopsis hymenoides 3** Seed shall be drilled; but if broadcasted double the pounds per acreused and work the solids mechanically to cover the

Page 4 of 8Well: WR Fed 43-21-10-17

3/12/2009

DOWNHOLE PROGRAMCONDITIONS OF APPROVAL (COAs)

SITE SPECIFIC DOWNHOLE COAs:

• A surface casing shoe integrity test shall be performed.

• Production casing cement top shall be at a minimum of 200' above the surface casing shoe.

• A Cement Bond Log (CBL) shall be run from TD to the base of the surface casing.

All provisions outlined in Onshore Oil & Gas Order #2 Drilling Operations shall be strictly adheredto. The following items are emphasized:

DRILLING/COMPLETION/PRODUCING OPERATING STANDARDS

• The spud date and time shall be reported orally to Vernal Field Office within 24 hours of spudding.

• Notify Vernal Field Office Supervisory Petroleum Engineering Technician at least 24 hours inadvance of casing cementing operations and BOPE & casing pressure tests.

• All requirements listed in Onshore Order #2 III. E. Special Drilling Operations are applicable for airdrilling of surface hole.

• Blowout prevention equipment (BOPE) shall remain in use until the well is completed or abandoned.Closing unit controls shall remain unobstructed and readily accessible at all times. Choke manifoldsshall be located outside of the rig substructure.

• All BOPE components shall be inspected daily and those inspections shall be recorded in the dailydrilling report. Components shall be operated and tested as required by Onshore Oil & Gas OrderNo. 2 to insure good mechanical working order. All BOPE pressure tests shall be performed by atest pump with a chart recorder and NOT by the rig pumps. Test shall be reported in the driller'slog.

• BOP drills shall be initially conducted by each drilling crew within 24 hours of drilling out fromunder the surface casing and weekly thereafter as specified in Onshore Oil & Gas Order No. 2.

• Casing pressure tests are required before drilling out from under all casing strings set and cementedin place.

• No aggressive/fresh hard-banded drill pipe shall be used within casing.

• Cement baskets shall not be run on surface

Page 5 of 8Well: WR Fed 43-21-10-17

3/12/2009

• The operator must report all shows of water or water-bearing sands to the BLM. If flowing water isencountered it must be sampled, analyzed, and a copy of the analyses submitted to the BLM VernalField Office.

• The operator must report encounters of all non oil & gas mineral resources (such as Gilsonite, tarsands, oil shale, trona, etc.) to the Vernal Field Office, in writing, within 5 working days of eachencounter. Each report shall include the well name/number, well location, date and depth (from KBor GL) of encounter, vertical footage of the encounter and, the name of the person making the report(along with a telephone number) should the BLM need to obtain additional information.

• A complete set of angular deviation and directional surveys of a directional well will be submitted tothe Vernal BLM office engineer within 30 days of the completion of the well.

• While actively drilling, chronologic drilling progress reports shall be filed d