August 6, 1985 TONEY ANAYA POST OFFICE BOX 2088 …...TONEY ANAYA GOVERNOR 1935 - 1985 POST OFFICE BOX 2088 STATE LAND OFFICE BUILDING SANTA FE. NEW MEXICO 87501 (SOS) 827-5800 Kemper

50 YEARS

S T A T E O F N E W M E X I C O

E N E R G Y ANO M I N E R A L S 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

A u g u s t 6 , 1985 TONEY ANAYA

G O V E R N O R

1935 - 1985

P O S T OFFICE B O X 2088 STATE L A N D OFFICE B U I L D I N G S A N T A FE. N E W M E X I C O 87501

(SOS) 827-5800

Kemper Group P. O. Box 925 La Puente, Ca. 91747

Re: $5,000 One-Well Plugging Bond Charles W. Harle, Principal American Manufacturers Mutual

Insurance Co., Surety 660' FNL and 1980' FWL of Sec. 35, T-10-S, R-25-E, Chaves County Bond No. 9SE-064-534

Gentlemen:

I am in receipt of your request for cancellation of the above-referenced plugging bond. I have checked with our Artesia d i s t r i c t office and they have advised me that the well covered by this bond i s plugged but there are several small items (incorrect P & A marker) that need to be changed.

I am notifying Mr. Harle, by copy of th i s l e t t e r , and he can contact Mr. Mike Williams in our Artesia office regarding this well.

Sincerely, / j

DIANE RICHARDSON Administrator Property Management Bureau

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STATE OF NEW MEXICO

ENERGY AND MINERALS DEPARTMENT OIL CONSERVATION DIVISION

BRUCE KING GOVERNOR

LARRY KEHOE SECRETARY

January 10, 1980

American Manufacturers Mutual Insurance Co.

Chicago, I l l i n o i s

V V

A

POST OFFICE BOX 208B STATE LAND OFFICE BUILDING SANTA FE. NEW MEXICO 87501

1505) 827-2434

Re: $5,00 0 One-Well Plugging Bond Charles W. Harle, P r i n c i p a l American Manufacturers Mutual sJ ^ Insurance Co., Surety ^

660* FNL and 19 80' FWL of Sec. 35, T-10-S, R-25-E, Chaves County, Depth: 5,000 f t . Bond No. 9SE-064-534

Gentlemen:

The O i l Conservation D i v i s i o n hereby approves the above-captioned one-well plugging bond.

Sin c e r e l y ,

JOE D. RAMEY, Di r e c t o r

JDR/ELP/dr

cc: O i l Conservation D i v i s i o n A r t e s i a , New Mexico

Mr. Charles W. Harle

> / s

6 \

Lumbermerts Mutual Casualty Company • American Motorists Insurance Company American Manufacturers Mutual Insurance Company • American Protection- Insurance Company

17800 Castleton St. . City of Industry, CA . 91748 I " V £ l Mailing Address: P.O. Box 925 . La Puente, CA . 91747 . 818|369-7700 I f f

July 22, 1985

State of New Mexico Energy & Minerals Dept. P.O. Box 2088 Santa Fe, New Mexico 87501

Bond No. Type of Bond P r i n c i p a l Address

9SE 064 534 ONE WELL PLUGGING BOND CHARLES W. HARLE P.O. Box 42 13 Brownwood, Texas 76801

Gentlemen:

The undersigned company which became surety upon t h i s bond e f f e c t i v e 12/26/79 i n your favor hereby n o t i f i e s you that i t desires to cancel and terminate i t s l i a b i l i t y ,

Such cancellation w i l l be e f f e c t i v e 30 days a f t e r the rec e i p t of t h i s notice which i s given to you i n accordance with the c a n c e l l a t i o n provision i n said bond.

Thank vou

Kathleen Anello, A t t t ^ w t ^ ^ ^ ^ a c t T ^ AMERICAN MANUFACTURERS MUTUAL INSURANCE COMPANY

**IN ORDER TO PROPERLY PROCESS CANCELLATION, PLEASE ACKNOWLEDGE RECEIPT OF THIS CANCELLATION ON ATTACHED COPY AND RETURN IN THE ENCLOSED SELF-ADDRESSED ENVELOPE.

THANK YOU

DATE RECEIVED;

State of New Mexico (Obligee)

By:

cc: P r i n c i p a l KA: mm LA 883 F&S

J u l y 22, 1985

State of New Mexico Energy & Minerals Dept. P.O. Box 2086 Santa Fe, New Mexico 87501

Bond No. Type of Bond P r i n c i p a l Address

9SE 064 534 ONE WELL PLUGGING BOND CHARLES W. HARLE P.O. Box 42 13 Brownwood, Texas 76801

Gentlemen:

The undersigned company which becawe surety upon t h i s bond e f f e c t i v e 12/26/79 i n your favor hereby n o t i f i e s you that i t desires to cancel and terminate i t s l i a b i l i t y .

Such cancellation w i l l be e f f e c t i v e 30 days a f t e r the rece i p t of t h i s notice which i s given to you i n accordance with the c a n c e l l a t i o n provision i n said bond.

Thank, you,

Katnleen Anello, Attorney-in-Fact AMERICAN MANUFACTURERS MUTUAL IiiSURAhCE COMPANY

**IN ORDER TO PROPERLY PROCESS CANCELLATION, PLEASE ACKNOWLEDGE RECEIPT OF THIS CANCELLATION ON ATTACHED COPY AND RETURN IN THE ENCLOSED SELF-ADDRESSED ENVELOPE.

THANK YOU

DATE RECEIVED:

State of New Mexico (Obligee)

By:

ENERGY AND MINERALS DEPARTMENT OIL CONSERVATION DIVISION

STATE OF NEW MEXICO

TONEY ANAYA GOVERNOR

March 23, 1983

POST OFFICE BOX SOBS STATE LAND OFFICE BUILDING SANTA FE. NEW MEXICO B7501

15051B27-5B00

Kemper Group 10950 Grandview Overland Park, Kansas 66210

A t t e n t i o n : Mary F. Reeves

Re: One-Well Plugging Bonds f o r Charles W. Harle Bond Nos. 9SE 064 533, 9SE-064-534, and OSE 585-657

Gentlemen:

I am i n r e c e i p t of your l e t t e r of March 16, 1983, i n which you request the status of the above-referenced bonds.

Our A r t e s i a o f f i c e has advised me t h a t these wells s t i l l have not been plugged; t h e r e f o r e , I am unable t o cancel the bonds a t t h i s time. As soon as Mr. Harle complies w i t h the i n s t r u c t i o n s on these w e l l s , I w i l l proceed w i t h the c a n c e l l a t i o n .

Sincerely,

Florene Davidson S t a f f S p e c i a l i s t

f d /

STATE OF NEW MEXICO

ENERGY AND MINERALS DEPARTMENT' OIL CONSERVATION DIVISION

BRUCE KING GOVERNOR

LARRY KEHOE SECRETARY

December 15, 1982 POST OFFICE BOX SOBS STATE LAND OFFICE BUILDING SANTA FE. NEW MEXICO 87501

I505) 827-2434

Kemper Group Insurance 10950 Grandview Overland Park, Kansas 66210

A t t e n t i o n : Mary F. Reeves

Re: One-Well Plugging Bonds f o r Charles W. Harle

Dear Ms. Reeves:

I am i n r e c e i p t of your l e t t e r of December 7, 1982, requesting c a n c e l l a t i o n of four bonds f o r Charles W. Harle. Enclosed please f i n d our l e t t e r c a n c e l l i n g Bond No. 9SE 064 531, the only bond which can be cancelled a t t h i s time.

Our A r t e s i a d i s t r i c t o f f i c e has advised me t h a t they w i l l contact Mr. Harle regarding the remaining bonds. Just as soon as he complies w i t h t h e i r i n s t r u c t i o n s on the remaining wells covered by these bonds, I w i l l proceed w i t h the c a n c e l l a t i o n .

Sincerely,

DIANE RICHARDSON Admi n i s t r a t i v e Secretary 505 827-5806

dr/

lumbermens Mutual Casualty Company • American Motorists Insur^c^^^rripaw/ON American Manufacturers Mutual Insurance Company • American Protection Insurance Company

10950 Grandview, Overland Park, Kansas 66210. 913|341-9880

CERTIFIED MAIL #3510606 RETURN RECEIPT REQUESTED

CANCELATION NOTICE ^

r n INSURED State of New Mexico OATS 11-18-80

Energy and Minerals Department ADDRESS Oil Conservation Division

P.O. Box 2088 OTY ANO STATE Santa Fe, New Mexico 87501

The undersigned Company upon Bond No. 9SE 064 534 effective the 26th day of _ m

December ,1979 on behalf of CHARLES W. HARLE a

in your favor hereby notifies you that it desires to cancel and does hereby cancel said Bond as

an entirety. (31 such cancelation to become effective thirty days after the receipt of this notice.

(4)

This notice is given to you in accordance with the cancelation provision in said Bond CC: RBS Insurance

P.O. Box 280 Roswell, NM 88201

CD

AMERICAN MANUFACTURER MUTUAL INSURANCE COMPANY

CC: Charles W. Harle 500 W Crockett, Box 1101 Sonora, Texas 76950

FJC2S6 9-79 7M

By -9 / Mary F. Reeves ATTORN6TMN-fACr

PRINTED IN U i A .

ENERGY AND MINERALS DEPARTMENT OIL CONSERVATION DIVISION

STATE OF NEW MEXICO

BRUCE KING December 1, 1980 POST OFFICE BOX SOBS STATE LAND OFFICE BUILDING SANTA FE. NEW MEXICO 87501

(505)827-2434

GOVERNOR

LARRY KEHOE SECRETARY

American Manufacturers Mutual Insurance Company

10950 Grandview Overland Park, Kansas 66210

A t t e n t i o n : Mary F. Reeves

Gentlemen:

We are i n r e c e i p t of your c a n c e l l a t i o n n o t i c e s f o r three w e l l s operated by Charles W. H a r l e . We cannot cancel these bonds at t h i s time f o r the f o l l o w i n g reasons:

Bond No. 9SE 064 533. Mr. Harle needs t o submit a plugging r e p o r t - Form C-103. When the C-103 has been re c e i v e d , and approved, i n the A r t e s i a d i s t r i c t o f f i c e , we w i l l cancel t h i s bond.

Bond No. 9SE 064 534. Just as soon as our A r t e s i a d i s t r i c t o f f i c e approves the p l u g g i n g , we w i l l proceed w i t h c a n c e l l a t i o n of t h i s bond.

Bond No. 0SE 585 657. Our A r t e s i a o f f i c e has informed us t h a t d r i l l i n g has been commenced on t h i s l o c a t i o n and we cannot, t h e r e f o r e , r e l e a s e t h i s bond.

I f you have any qu e s t i o n s , please do not h e s i t a t e to contact me.

Re: C a n c e l l a t i o n N o t i c e s , Three $5,000 One-Well Plugging Bonds f o r Charles W. H a r l e , P r i n c i p a l

S i n c e r e l y ,

(Ms.) DIANE RICHARDSON A d m i n i s t r a t i v e Secretary Legal Department

dr/

cc: A r t e s i a d i s t r i c t o f f i c e

S T A T E OH NCW M E X I C O

O N E - W E L L P L U G G I N G BOND Q r / ' C . ^ * v v £

FOR CHAVES, EDDY, LEA, HcKIHLCY, RIO ARRIBA, ROOSEVtt^-^- 7//0) SANDOVAL, AND SAfJ JUAN COUNTIES OHLY 3^r^''°^^-M/j

BOND NO. .3S£rQ64r534 f l- 'or Use o f j i t i r e i y t ' i »n /n» i ) - /

AMOUNT OF B0NDA5zM-JX>

COUNTY CJiay.es

NOTE: Foe wells lean than 5,000 feet deep, the minimum bond i s $5,000.00* For wells 5,000 feet to 10,000 feet deep, the minimum bond i s $7,500.00* For wells more than 10,000 feet deep, tho minimum bond i s $10,000.00

•tinder cer tain condit ions, a wel l being d r i l l e d under a $5,000.00 or $7,500.00 bond ray be permitted to ba d r i l l e d at much as SOO feet deuccr than tho norn.il DSxinu-n depth, i . e . , o we l l belna d r i l l e d under a $S,000.00 bold fciy be ponaittod to c,o to 5.499 loe t , and a w e l l bolng d r i l l e d under a $7,SOO.00 bond may be r e m i t t e d to ijo to 10,500 £•<«..

Kilo wilh Oil Conservation Commission, P. O. liox 20SS, Santa l-'c S7501

KNOW Al l . M1IN HY TlllfSU PRllSHNTS:

Tl , , , CHARLES W. HARLE (An individual) ja paiinership)

(a corpoialion oiganizcU in the Stale nf TEXAS with iis piincip.il o i l ice in the city of SONORA . Stale of TFXAS : and authorized lo do business

in the Stale of New Mexico,, as PRINCIPAL, m.l AMERICAN MANUFACTURERS MDT1IAI TNSIIRANCF COMPANY, .. a

corpoialiou unutilized ami existing under the laws of the State of I L L I N O I S • • and authorized to do business in the Mate of New Mexico, as SURUTY. aie held firmly bound uiilo the Stale of New Mexico, for the use and benefit of the Oil Conservation Commission of New Mexico pursuant lo Section 6S-.V1I. New Mexico Stalnus Annotated, l'>5* Compilation, as amended, in the Mini of FIVE THOUSAND Dollais l.iv.'lul money of the United Si.ucs, for Ihe pawnenl of which, well and truly to be made, said PRINCIPAL and SURUIY lieit'oy bind ;heiiise!ves. ihei: iuccc^^rs and a:>sie,us, joinily and vewialh . fi imly by these piesents.

The conditions of this obligation are such that:

WIIITRIiAS, The above principal has hcietofore or may hereafter enter into oil and gas leases, or carbon dioxide (CO2) gas leases, or helium ga.-, leases with the Stale of New Mexico; and

tt'llhIil:AS, The above principal has heielofore or may hereafter enter into oil and gas leases, or caihou dioxide (CO>) yjs leases, or helium gas leases on lands patented by ihe lituled Stales of America to piivale individuals, and on lands otherwise owned by piivale individuals; and

WIIIIRKAS, The above principal, individually, or in association with one or more othei parlies, has commenced or may commence the diillnu: of one w-clf not to exceed a depth of 5 , 0 0 0 r.yi n> pn^pect for and pioduce oil or gas. 01 c.ubon diuxtde (CO>) ;:as or helium gas. or does own or may acmiue. own or operate such well, or such well stalled by otheis on l.md embraced in said Stale oil and jtas leases, oi c.ubon dioxide (COi) leases, or helium gas leases, and on laud patented by the Ihiiled Stales of America to piivale individuals, and on land oiheiwise owned bv piivale individuals, the id. nlil..lion and location of said well being 660' F.N.U. & 1980' F.W.L. Of NE h

(Hi l<- xl.lli- t'V.ul I il suhilli IMivn l»y -lU ;u |V- li.it I o | lot |

Of N.W. h Section 35 T.iwusliip 10 XXXXXl (South). Ran,'.- 25 ( ( - . , M | ( U X * * N M.P..U. Chaves County, New M

| NOW. 1 111 Kl I OUT. If ilu- ,ilni\v hotiiuhn p i i i i ' i ju l aiul :i:u"l\ i»r ,ilhoi lot" tfh'lli ot tln'il Micci'ssoi* OI *»r

any i>l IIUT.I. shall pliiv' viiil \\v[| when u i \ m wln'ii .th.iikhti.ct. in • ilaii*.'*.- »wth ihe ui loi. rc^ut.itu>iis. :iml imlon ol \ \W O i l l i t ! l - " - ' ! \ . i l : '»lt < " u l l . l l l l ' * M u l l i l l \ « . \Y M l ' M O l i l l M u l l W.|V j \ U> CiH i l l l lO l U c l O i l , £dS, M H . W a l t T 111 l l u * \ I t . i l L l i l l \\ l l i c l l

l iny UUIIKI, aiul (•> ;>ic\vui ihem hum craping into othci Mutla,

T i l . N. ' n i r U r i O K I ! . This ohliiMliiHi shall lnr null :uul VOKI; otherwise ami in default of complete lonipluna: wi l l , any aiul .ill o| s.ml ohh^.itionv the: vitiii ' "-hall icntam in Itill (OUT ami I'lK'ct.

P R I N C I P A L ^

Addic

Signature

Title

(Note: I'lincipal, if corporation, affix corporate teal here.)

fl^pirflN MANIIFACTIIRFRS MUTUAL INS. CO. SURETY

CHTGAIiO. IILINQIS Ad ill ess

By. Attorney-it! l-.ic(

(Note: Corporate s in / / / 'At seal here.)

ACKNOWLEDGMENT FORM FOR NATURAL PERSONS

STATE OF / j £ ^ J ) COUNTY OF jFft&A- "•') ( J

- day of : y ^ S t ^ - ^ t ^ i ^ .19 < ^ .before me personally appeared \ / / l /h£ . fe S 4 * • ^ T ^ t ^ ^ . tn me known to be the peisoti (persons)

dcsciibed in and who executed ihe foregoing instrument and acknowledged that lie (they) executed Ihe same as his (their) free act and deed. >

IN WITNESS WHEREOF, 1 have hereunto set my hand and seal on (he day atj^eaiJri Ih^eiurX^toLi^ovc written. *~ r

r- 3/- si \ Notary Public My Commission expires

ACKNOWLEDGMENT FORM FOR CORPORATION

STATE OF ) COUNTY OF ) S S"

v On ibis *• day of —• - . 19 before mc personally appeared . to me personally known who, being by me

duly sworn, did say that he is of and that the foregoing insirument was signed and sealed on

behalf of said corporation by authority of its board of directors, and acknowledged said instrument to be the free act and deed of said corporation.

IN WITNESS WHEREOF, I have hereunto set my hand and seal on the day and year in this certificate first above written.

My Commission expires Notary Public

ACKNOWLEDGMENT FORM FOR CORPORATE SURETY

STATE OF NEW MEXICO ) coiJNiYor CHAVES ) ss-

On Ibis 26th day of Qpr-pmhpr . I<>79 . before me appeared. IRIS D. SCHUBERT , lo rue personally known, who. being by me duly sworn, did say lhal he is ATTORNEY-IN-FACT , of American Manufacturers Mutual I n s . CO. and that the foregoing utMiumcnl was signed and sealed on

behall ol said coipoiation by aulhonly ot lis bo.ud ot diiectois. and acknowledged :.aid instiiimev! lo be the free act and deed of said corporation.

IN WITNESS WHEREOF. 1 have hereu no set my hand and seal on trie day and year in this certificate first above written.

January 7, 1983 J^,.,;-. My Commission expiies (Note: Coipoiale study attach powei of attorney.)

AITirtOV|'l> HY: OIL\I'ON};I:UV'AI ION COM; csl OF NEW Ml XICO

ylCAN MANUFACTURERS MUTUAL INSURANCE COMPANY .ne Office: Long Grove, IL 60049 KempeR

POWER OF ATTORNEY Know All Men By These Presents: That the American Manufacturers Mutual Insurance Company, a corporation organized and existing under the laws of the State of Illinois, and having its principal office in Long Grove, Illinois, does hereby appoint* * » • • • • * Harry E. Curtis and Iris D. Schubert of Roswell, New Mexico (EACH)*

its true and lawful agent(s) and atlorney(s)-in-fact, to make, execute, seul, and deliver during the period begin­ning with the date of issuance of this power and ending December 21,1980, unless sooner revoked for and on its behalf as surety, and as its act and deed: A n y a n d a l l b o n d s a n d u n d e r t a k i n g s p r o v i d e d

t h e a m o u n t o f no o n e b o n d o r u n d e r t a k i n g e x c e e d s ONE HUNDRED THOUSAND DOLLARS ( $ 1 0 0 , 0 0 0 . 0 0 ) * * * * ^ 4 H t * # # # ^ * * # 4 H r # # * # * < I H r * # # # * # ^

EXCEPTION: NO AUTHORITY is granted to make, execute, seal and deliver any bond or undertaking which guarantees the payment or collection of any promissory note, check, draft or letter of credit. This authority does not permit the same obligation to be split into two or more bonds in order to bring each such bond within the dollar limit of authority as set1 forth herein. This appointment may be revoked at any time by the American Manufacturers Mutual Insurance Company. The execution of such bonds and undertakings in pursuance of these presents shall be as binding upon the said American Manufacturers Mutual Insurance Company as fully and amply to all intents and purposes, as if the same had been duly executed and acknowledged by its regularly elected officers at its principal office in Long Grove, Illinois. THIS APPOINTMENT SHALL CEASE AND TERMINATE WITHOUT NOTICE Ail OF DECEMBER 31, 1980 This Power of Attorney is executed by authority of a resolution adopted by the Board of Directors of said Ameri­can Manufacturers Mutual Insurance Company on March 29,1962 at Nisw York, New York, a true and accurate copy of which is hereinafter set forth and is hereby certified to by the undersigned Secretary or Assistant Secre­tary as being in full force and effect: "VOTED, Thai the President or any Vice President or Secretary or any Assistant Secretary shall have power and authority to appoint attorneys in fact, and to authorize them to execute on behalf of the company, and attach the seal of the company thereto, bonds and undertakings, recognizances, contracts of indemnity and other writings obligatory in the nature thereof, and to accept service of process." This Power of Attorney is signed, sealed and certified by facsimile under and by authority of the following reso­lution adopted by the Board of Directors of the company at a meeting duly called and held on the 7th day of June, 1962: "VOTED, That Ihe signature of the President, any Vice President, Secretary or Assistant Secretary, and the Seal of the Com­pany, and the certification by any Secretary or Assistant Secretary, may be affixed by facsimile on any power of attorney executed pursuant to resolution adopted by the Board of Directors on Marci 29, 1962, and any such power so executed, sealed and certified with respect lo any bond or undertaking to which it is attached, shall continue to be valid and binding upon Ihe Company." In Testimony Whereof, the American Manufacturers Mutual Insurance; Company has caused this instrument to

be signed and its corporate seal to be affixed by its authorized officers, this 2 2 t h day of November IQ 78

Attested and Certified: AMERICAN MANUFACTURERS MUTUAL INSURANCE COMPANY

By C C. Swan, Secretary H - L- Kennicoif. Jr.. Vice President STATE OF ILLINOIS l COUNTY OF McHENRY / * * I, lo Anne Krein, a Notary Public, do hereby certify that H. L. Kennicott.ilr. and C. G. Swan personally known to to me to be the same persons whose names are respectively as Vice President and Secretary of the American Manufacturers Mutual Insurance Company, a Corporation of the Stale of Illinois, subscribed to the foregoing instrument, appeared before me this day in person and severally acknowledged that they being thereunto duly authorized signed, sealed with the corporate seal and delivered the *aid instrument as Ihe free and voluntary act of said corporation and as their own free and voluntary act for the uses and purposes therein set forth.

lo Anne Krein, Notary Public My commission expires: March 21,1982 CERTIFICATION I, Sven L. Johanson, Secretary of the American Manufacturers Mutual Insurance Company, do hereby certify that

that attached Power of Attorney dated November 27..197B rffi^Ell'f J?f» < ffggFif* f t * tyVihti and I r i s D. Schubert of Roswell, New Mexico (EASH)S a t r u e a n f j correct copy and that the same has been in full force and effect since the date thereof and is full force and effect on the date of this certificate; and I do further certify that the said H. L. Kennicott, Jr. arvi C. G. Swan who executed the Power of Attorney as Vice President and Secretary respectively were on the date of the execution of the attached Power of Attorney the duly elected Vice President and Secretary of the American Manufacturers Mulual Insurance Company. i IN TESTIMONY WHEREOF, I have hereunto subscribed my name and affixed the corporate seal of the American Manufacturers Mulual Insurance Company on this ajr*y Oiay of K/f<<'fr?*'ras<*S , 19.22:

Sven L lohanson. Secretary This Power of Attorney limits the acts of those named therein to the bonds and undertakings specifically named therein, and they have no authority to bind the Company except in the manner and to the extent herein stated. FN 836 6-78 I M POwru Of ATTORNEY—TERV

MNNTtD IN U.S.A.

STATE OF NEW MEXICO ENERGY, MINERALS AND NATURAL RESOURCES DEPARTMENT

OIL CONSERVATION DIVISION

MAR * i 1995 0"ConWonDivision

APPLICATION OF THE NEW MEXICO OIL CONSERVATION DIVISION THROUGH THE SUPERVISOR OF DISTRICT I I FOR AN ORDER REQUIRING THE CHRISTOPHER #1 WELL LOCATED IN UNIT B OF SEC. 32, T-06-S, R-26-E; THE ZIMMERMAN WELL NO. 2 LOCATED IN UNIT F AND AND THE ZIMMERMAN WELL NO. 3 LOCATED IN UNIT C, BOTH IN SECTION 35, T-10-S, R-25-E, CHAVES COUNTY, NEW MEXICO, TO BE PROPERLY PLUGGED,AUTHORIZING THE DIVISION TO PLUG SAID WELLS

AND ORDERING A FORFEITURE OF THE PLUGGING BOND, IF ANY.

CASE NO.

APPLICATION FOR PLUGGING AND FORFEITURE OF BOND

1. Charles W. Harle, (hereinafter called "Operator") is the operator of the Christopher

Well No. 1 located in Unit B of Sec. 32, T-6-S, R-26-E, the Zimmerman Wells Nos. 2 and 3

in Units F and C, of Section 35, T-10-S, R-25-E, Chaves County, New Mexico.

2. Charles W. Harle, as Operator, has posted surety bonds in the amount of $5,000 for

each of said wells in compliance with Section 70-2-14 N.M.S. A. 1978 and Rule 101 of the Rules

and Regulations of the Oil Conservation Division, which bonds are conditioned upon compliance

with the statutes of the State of New Mexico and the Rules and Regulations of the Division with

respect to the proper plugging and abandonment of the wells operated by Operator.

3. American Employers' Insurance Company is surety on the bond, Bond No. AE

71344-11, for the Christopher #1 well, and American Manufacturers Mutual Insurance Co. is

surety on the bond, Bond No. 9SE-064-534, for the Zimmerman #2 well and the bond, Bond

No. 9SE-064-533, for the Zimmerman #3 well.

4. The subject wells have not produced hydrocarbon substance or have otherwise been

inactive for more than one year or are no longer usable for beneficial purposes and no permit

for temporary abandonment has been requested by the Operator and approved by the Division.

5. By virtue of the failure to use the wells for beneficial purposes or to have an

approved current temporary abandonment permit, the subject wells are presumed to have been

abandoned and are required to be plugged.

6. By authority of Section 70-2-12 N.M.S.A. 1978, the Rules and Regulations of the

Division require wells which are inactive for more than one year or are no longer usable for

beneficial purposes to be properly plugged.

7. Demand has been made upon the Operator to either place the subject wells to

beneficial use, obtain approval for temporary abandonment or properly plug and abandon the

same and the Operator has failed to do so.

WHEREFORE, the Supervisor of District I I of the Oil Conservation Division applies to

the Director to enter an order:

1. Determining whether or not Christoper No. 1, Zimmerman No. 2 and 3 wells should

be plugged in accordance with a Division-approved plugging program.

2. Upon determination that said wells should be plugged directing Charles W. Harle.

as Operator to plug said wells.

3. Further ordering that if operator fails to plug and abandon said wells as ordered by

the Director, that the Division be authorized:

a. to plug said wells;

b. to declare forfeit on said bonds and to take such action to foreclose on said

bonds; and

c. to recover from the Operator any costs of plugging in excess

of the amount of the bond, if any.

4. For such other and further relief as the Division seems just and proper.

Legal Counsel New Mexico Oil Conservation Division 2040 South Pacheco Santa Fe, New Mexico 87505 (505)827-8156