tig24 jÔÑ - UtahThe 5 ½" production casing will be set and cemented using a two stage cementing process. This entails setting casing to total TD and running a DV tool to approximately

g 6Fena3160-3 FORMAPPROVED(September2001) OMBNo.1004-0136

ExpiresJanuary31,2004UNITED STATESDEPARTMENT OF THE INTERIOR 5. LeaseSerialNo.U-61154BUREAU OF LAND MANAGEMENT

APPLICATION FOR PERMIT TO DRILLOR REENTER 6. IfIndian,AlloteeorTribeNameN/A

O 7 IfUnitor CAAgreement,NameandNo.la. Typeofwork: DRILL REENTERDrunkards Wash UTU-67921X

8. LeaseNameandWellNo.Ib. Typeof Well: OilWell GasWell Other SingleZone MultipleZone USA 24-10052. NameofOperator 9. API WellNo.

ConocoPhiHips Company

3a. Address P.O. Box 851 3b. PhoneNo.(include area code) 10.FieldandPool,orExploratory435-613-9777 Drunkards Wash

4. Locationof Well(Report locadon clearly andin accordancewith anyStatemquimmena.*) 11.Sec.,T.R.M. or Blk.andSurveyorAreaAt surface 332' FSL, 333' FWL 5 tig24 y a , 52 7 CR& SWISW, Sec. 24, T.14S, R.8EAt proposed prod.zone jgQ 1 fjÔÑŸ

14. Distanceinmilesanddirectionfromnearest townorpostoffice* 12.Countyor Parish 13.State11.5 Miles west of Price, Utah Carbon UT

15. Distancefromproposed* 332' 16. No.of acres inlease 17.SpacingUnitdedicatedto thiswelllocationtonearestpropertyor leaseline,ft(Alsotonearestdrig.unit line,if any) 3863.87 acres NA

18. Distancefromproposedlocation* 19. ProposedDepth 20. BLM/BIABondNo.onfile¯ ¯¯

tonearestwell, drilling,completed,appliedfor,onthis lease,ft. 1250' 3940' TD 8015-16-69

21. Elevations(Showwhether DF,KDB,RT,GL,etc.) 22 Approximatedatework willstart* 23. Estimatedduration¯

6966' GR 04/15/2006

24. AttachmentsThefollowing,completedinaccordancewith therequirements of OnshoreOilandGasOrderNo.1, shall beattachedin thisfonn:

1. Wellplatcertifiedbya registeredsurveyor. 4. Bondtocoverthe operationsunless coveredby an existingbondon file (see2. A DrillingPlan. Item20 above).3. A SurfaceUse Plan(if the locationis on NationalForestSystemLands,the 5. Operatorcertification

SUPO shallbe filedwith theappropriateForestServiceOffice). 6. Suchother sitespecificinformationand/orplansas maybe required bytheauthorizedofficer.25. Signature . Name (PrintedTybped) Date

12/27/2005Title

Construction/Apet rity Supervisor

App edby N RABYÆVG. HILL DateENVIRONMENTALMANAGFR

Title Office

Applicationapprovaldoesno t or certifythattheapplicantholdslegalorequitabletitletothoserightsinthesubjectleasewhich wouldentitletheapplicant toconductoperationsthereon.Conditionsof approval,ifany,areattached.Title18U.S.C.Section1001andTide43 U.S.C.Section1212,make it a crimeforany personknowinglyandwillfully tomake to any departmentor agency ofthe UnitedStatesanyfalse,fictitiousor fraudulentstatementsor representationsas to anymatterwithinitsjurisdiction.*(Instructionsonpage 2)

RECEIVED

DIV,0FOIL,GAS&

Ran e 8 East 4°-'•¾°aotionwas determined using a Trimble 5700GPS survey grade unit.Basis of Bearing:

(WEST - 5278.68') The Basis of Beoring is GPs Measured.

I I | GLO Bearing:The Beorings indicated are per the recorded plat obtainedfrom the U.S. Land Office.Basis of Elevation:Basis of Elevation of 6968 being at the Southeast SectionCorner of Section 26, Township 14 South, Range 8 EastSolt Lake Bose and Meridian, os shown on the Pinnacle PeakQuadrangle 7.5 minute series map.Description of Location:Proposed Drill Hole located in the SW/4 SW/4 of Section 24.T14S RSE S.LB.&M. being 332.00' North and 333.26' Eastfrom the ŠouthwestŠectionCorner of Section 24, T14S, RSE,Salt Lake Base & Meridian.

Surveyor's Certi ficate:I, Albert J. Spensko, a Registered ProfessionalLand Surveyor, holding Certificate 146652State of Utah, do hereby certify that thetaformation on this drawing is a true andaccurate survey based on data of record andwas conducted under my personal directionand supervision as shown hereon.

USA#24-1005 TALON RESOURCES, INC.ELEV. 6966.4' r, e, u¢ INNummWatF.O.Enim

IN 4381725 IE 501528|S89*58'39"E

- 5246.73| Conoco illips Company

Leaend (WEST - 5278.68') WELL USA #24-1005Drill Hole Location NOTES: section24, T14s, RsE,

s.L.B.&M.

Metal Cap (Found) 1. UTMand Latitude / Longitude Coordinates Carbon County, Utahare derived usina o GPS Pathfinder and areBrass Cap (Searched for, but not found)

shown in NAD 27 Datum' N.BUmTK

ICH L A .S.

Calculated Corner LAT / LONGGRAPHIC SC fos

( ) GLo39°35'I3.659"NIl0*58'55.943"W ( m FEff )

, GPS Measured--------- 1 inch - 1000 it thest i •e 4

O OUT-060-3160-1

December, 1992

Bureau of Land ManagementMoab District

Application for Permit to DrillOn-Site Inspection Checklist

Company ConocoPhillips Company Well No. USA 24-1005Location: Sec. 24. T 14 S, R 08 E, Lease No. U-61154On-Site Inspection Date: 10/26/2005

AII operations will be conducted in such a manner that full compliance is made with applicablelaws, regulations (43 CFR 3100), Onshore Oil and Gas Orders, the approved plan of operationsand the conditions of approval. The operator is fully responsible for the actions of hissubcontractors. A copy of these conditions will be furnished to the field representative to ensurecompliance.

A. DRILLING PROGRAM

1. Surface Formation and Estimated Formation Tops:Surface formation: Upper Mancos ShaleEstimated topof Ferron Formation: 3362' TD = 3940'

2. Estimated Depth at Which Oil, Gas, Water or Other Mineral Bearinq Zones areExpected to be Encountered

Formation Depth

Expected Oil Zones: noneExpected Gas Zones: Ferron Coal Interval: 3370'-3554'Expected Water Zones: 3370'-3554'Expected Mineral Zones: none

AII fresh water and prospectively valuable minerals encountered during drilling willbe recorded by depth and willbe cased and cemented. When possible, water flowrates will be measured and samples will be taken and analyzed. All oil and gasshows willbe tested to determine commercialpotential.

3. Pressure Control Equipment- include schematics of the BOP and choke manifold,and describe testingprocedures: Quick Test is contracted to test the manifold,blindrams, and B.O.P to 2000 psi. Surface casing is tested to 1 psilft.See attachment.

BOP systems will be consistent with API RP 53 and Onshore Oil and Gas OrderNo. 2. Pressure tests of the surface casing and all BOP equipment potentiallysubject to pressure will be conducted before drilling the surface casing shoe.Blowout preventer controls willbe installed prior to drilling the surface casing shoeand will remain in use until the well is completed or abandoned. Ram preventersshall be inspected and operated each trip(no more than once a day is necessary),and annular preventers shall be inspected and operated weekly to ensure goodmechanical working order. These inspections shall be recorded in the drilling logand in the daily drilling report.

04. Casinq Program and Auxiliary Equipment - include casing size, weight, grade,

thread and coupling, setting depth and condition(new or acceptably reconditioned):Approximately 30$0)of 5-1/2",N-80 17#lft productioncasing willbe installed, 400' ofthe above setting depth will be 8-5/8", 24#lft. J-55 surface casing.

5. Cement-include the cement type, density, yield, additives and amount used insetting each casing string. Also include the anticipated cement fill-up. If stagecementing, describe techniques:See cementing information below.

Proposed Casinq and Cementing ProgramsUSA 244004

Hole Size Casing Size Wt/Ft Grade Joint Depth set14 ¾" 12 ¾" 40.5 H-40 ST&C 0-50'

11" 8 5/8" 24.0 J-55 ST&C 0-400'

7 7/8" 5 ½" 17.0 N-80 LT&C 0-3930'

Cementing Program

The 8 5/8" surface casing willbe set withapproximately 170 sacks Class G or Type V cement with2% CaCl2 mixed at 15.6 ppg (yield =1.18 ft /sx). The cement willbe circulated back to surfacewith 100% excess.

The 5 ½" production casing will be set and cemented using a twostage cementing process. Thisentails setting casing to total TD and running a DV tool to approximately 300' of the top of theFerron.

The 1" Stage of cement willthen be pumped to approximately50' from the DV tool. After cementis pumped, the cement cap willbe removed and a wiper plug installed. The cement cap willthenbe screwed back on and a wiper plug willbe displaced to TD. The cement cap willbe removedand the DV toolbomb will be dropped followed by the 2ndStage wiper plug. (This is done to openthe DV tooland establish circulation.) Once circulation is established, circulationwillcontinue atapproximately 1 bpm for 4 hours while waiting on cement (WOC). WOC at a minimum of 4 hoursbefore beginning 2nd Stage cement job. After the 2nd Stage has been pumped, a top wiper plugwill be dropped and displaced withwater (or water spacer and mud). Shut in welland WOC.

The 5 ½" production casing will be set with approximately& sx of Standard Cement, 10% CalSeal 60 (accelerator), 1% Calcium Chloride (accelerator), ¼ Ibm/sk Flocele (lost circulationadditive)with a yieldof 1.61 ft'Isx at 14.2 ppg; calculated withan excess of 35% for the 1" Stage.For the 2nd SÍSge, OppfOximately M sx of 50/50 POZ Premium cement, 8% Bentonite (lightweight additive), 10% Cal Seal 60 (accelerator), ¼ lbm/sk Flocele (lost circulationadditive) with ayieldof 1.98 ft Isx at 12.5 ppg; calculated with an excess of 30% for the 2nd

The above cement volumes are approximate and are calculated under the assumption that agauge hole willbe achieved. If the cement does not return to surface, a cement bond log willberun to determine the top of cement. In the case where the cement is below the surface casingshoe, the casing willbe perforated and squeeze cemented to the surface. If the cement is abovethe surface casing shoe, cement willbe one-inched to the surface.

O O

6. Mud Program and Circulating Medium- include mud components and weights.When air drilling, also include: length and location of blooie line; description of theauto ignitor; description of the deduster equipment; and amounts, types andcharacteristics of stand-by mud: Hole will be drilled with air with the blooie lineextending to the large pit.

7. Coring, Loqqinq and Testing Program: Gamma, Neutron Density, and CementBond Log. Initialopening of drill stem test toolswillbe restricted to daylight hours.

8. Abnormal Conditions, Bottom Hole Pressures and Potential Hazards- includeanticipated bottom hole pressure and/or pressure gradient: No abnormal conditionsare anticipated, formation is slightly over-pressured. Using a 0.433 pressuregradient bottom hole pressure expected is about 1083 psi max., however due tooffset production pressures may be much lower.

9. Any Other Aspects of this Proposal that should be Addressed:

B, THIRTEEN POINT SURFACE USE PLANThe dirt contractor willbe provided withan approved copy of the surface use plan ofoperations before initiating construction.

1. Existinq Roads:

a. Proposed route to location (Refer to Drawing L-1).

b. Location of proposed well in relation to townor other reference point: 119niÏÏeswest of Price. Utah.

c. Contact the Carbon County Road Department for use of county roads. The useof Carbon County roads will require an encroachment permit from the CarbonCounty Road Department.

d. Plans for improvement and/or maintenance of existing roads: Upgrade andmaintain existing state or county roads.

e. Other:

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2. Planned Access Roads:

a. Location (centerline): Refer to Drawing L-1

b. Length of new access to be constructed: 1300'

c. Length of existing roads to be upgraded &d. Maximum totaldisturbed width:2T

e. Maximum travelsurfacewidth: 2<

f. Maximum grades: 7°k

g. Turnouts: none

h. Surface materials: In-place residual of Mancos Shale

i. Drainage (crowning, ditching, culverts, etc): Roads will be crowned with waterditches on both sides. Water willbe diverted around pad as necessary and 4culverts may be needed and placed along new roadway.

j. Cattleguards: none

k. Length of new and/or existing roads which lie outside the lease boundary forwhich a BLM right-of-way is required: NA

I. Other:

Surface disturbance and vehicular travel will be limited to the approved locationaccess road. Any additional area needed must be approved by the Area Manager inadvance.

If a right-of-way is necessary, no surface disturbing activities shall take place on thesubject right-of-wayuntil the associated APD is approved. The holder willadhere toconditions of approval in the Surface Use Program of the approved APD, relevant toany right-of-wayfacilities.

If a right-of-way is secured, boundary adjustments in the lease or unit shallautomatically amend this right-of-way to include that portion of the facility no longercontained within the lease or unit. In the event of an automatic amendment to thisright-of-way grant, the prior on-leaselunit conditions of approval of this facility willnotbe affected even thoughtheywould now apply to facilities outside of the leaselunit asa result of a boundary adjustment. Rental fees, if appropriate shall be recalculatedbased on the conditions of this grant and the regulations in effect at the time of anautomatic amendment.

If the well is productive, the access road willbe rehabilitated or brought to Resource(Class III) Road Standards within 60 days of dismantling the rig. If upgraded, theaccess road must be maintained at these standards until the well is properlyabandoned. If this time frame cannot be met, the Area Manager willbe notified sothat temporarydrainage control can be installed along the access road.

O O3. Location of Existing Wells-on a map, show the location of all water, injection,

disposal, producing and drilling wells withina one mile radius of the proposed well,and describe the status of each: See Drawing "L-1".

4. Location of Production Facilities:

a. On-site facilities: See Exhibit "E"

b. Ofl-site facilities: none

c. The pipelines and powerlines will follow the proposed access route with thepowerline located on the northleast side of the road and the pipelines on thewest/south. The pipelines will be approximately 4" for the gas and 4" for thewater. Refer to map Exhibit "B" page 1 for the location of the proposed pipeline.The length of the pipeline will be approximately 1300' long. The pipelines willbebrought to the USA 24-1005 from the existing USA 23-423.

AII permanent (in place for six months or longer) structures constructed or installed(including oil well pump jacks) will be painted a flat, non-reflectivecolor to match thestandard environmental colors, as determined by the Rocky Mountain Five-StateInteragency Committee. AIIfacilities willbe painted withinsix months of installation.Facilities that are required to comply with the Occupational Safety and Health Act(OSHA) may be excluded. Colors willbe as follows: OliveBlack

If a gas meter run is constructed, it will be located on lease within 500 feet of thewellhead. The gas flowline willbe buried from the wellhead to the meter and willbeburied downstream of the meter until it leaves the pad. Meter runs willbe housedand/or fenced. The gas meter shall be calibrated prior to first sales and shall becalibrated quarterly thereafter. AIIgas production and measurement shall complywiththe provisions of 43 CFR § 3162. 7-3, Onshore Oil and Gas Order No. 5, andAmerican Gas Association (AGA) Report No. 3.

If a tank battery is constructed on this lease, it will be surrounded by a dike ofsufficient capacity to contain 1 ½ times the storage capacity of the largest tank. AIIloading lines and valves willbe placed inside the berm surrounding the tank battery.AII oil production and measurement shall conform to the provisions of 43 CFR §3162.7-3 and Onshore Oil and Gas Order No. 4

Production facilities on location may include a lined or unlined produced water pit asspecified in NTL-2B. Ifwater is produced from the well, an NTL-2B application mustbe submitted.

5. Location and Type of Water Supply:

AIIwater needed for drilling purposes willbe obtained from (describe location and/orshow on a map): PRWID

If necessary, a temporarywater use permit for thisoperation willbe obtained from theUtah State Engineer in Price, Utah at (435) 637-1303.

Water obtained on private land, or land administered byanother agency, willrequireapproval from the owner or agency for use of the land.

O O

6. Source of Construction Material:

Pad construction material willbe obtained from (if the source is Federally owned,show location on a map): Private OwnerThe use of materials under BLMjurisdictionwillconform to 43 CFR 3610.2-3.

7. Methods of Handlinq Waste Disposal:

Describe the methods and locations proposed for safe containment and disposal ofwaste material, e.g. cuttings, produced water, garbage, sewage, chemicals, etc.

The reserve pitwill be lined with (native material, bentonite, synthetic material):Pit willbe lined with native material unless otherwise designated by BLMofficers prior toconstruction.

The reserve pit willbe located at the: south side of the location, and the pit walls willbe sloped at no greater than 2 to 1.

The reserve pit shall be located in cut material, with at least 50% of the pit volumebeing below originalground level. Three sides of the reserve pit willbe fenced beforedrilling starts. The fourth side willbe fenced as soon as drilling is completed, andshall remain until the pit is dry. As soon as the reserve pit has dried, all areas notneeded for production will be rehabilitated.

Trash must be contained in a trash cage and hauled away to an approved disposalsite as necessary but no later than at the completion of drilling operations.8. Ancillary Facilities: Garbage containers and portable toilets.

9. Well Site Layout - depict the pit, rig, cut and fill,topsoil,etc. on a plat witha scale ofat least 1" = 50'.

AII well, whether drilling, producing, suspended, or abandoned, will be identified inaccordance with43 CFR 3162.6.

Access to the well pad will be from: west of location.

The blooie line will be located in the: south, at least 100 feet from thewellhead.To minimize the amount of fugitive dust and spray escaping from the blooie pit, thefollowing blooie line deflection method willbe employed: Water injection.

10. Plans for Restoration of the Surface:

The top 6 inches of topsoilmaterial willbe removed from the location and stockpiledseparately on: adjacent land.

Topsoil along the access road willbe reserved in place adjacent to the road.

Immediately upon completion of drilling, all equipment that is not necessary forproduction shall be removed.

The reserve pit and that portion of the location not needed for production will bereclaimed.

O O

Before any dirt work to restore the location takes place, the reserve pit must becompletely dry.

Reclaimed roads willhave the berms and cuts reduced and willbe closed to vehicleuse.

Alldisturbed areas willbe recontoured to replicate the natural slope.

The stockpiled topsoilwillbe evenly distributed over the disturbed area.

Prior to reseeding, all disturbed areas, including the access roads, willbe scarifiedand left witha rough surface.

Seed will be broadcast or drilled between Sept and Nov., or at a timespecified by theBLM. If broadcast, a harrow or some other implement will be dragged over theseeded area to cover the seed.

The following seed mixturewillbe used:

BLM recommended mixture: Piriyon Juniper

The abandonment marker willbe one of the following, as specified by BLM:1) At least four feet above ground level,2) At restored ground level, or3) Below ground level.

In any case the marker shall be inscribed with the following: operator name, leasenumber, well name and surveyed description (township,range, section and eitherquarter-quarter or footages).

Additional requirements:

11. Surface and Mineral Ownership: BLMsurface/BLMsubsurface

12. Other Information:

a. Archeological Concerns: none

The operator is responsible for informing all persons in the area who areassociated with thisproject that theywill be subject to prosecution forknowingly disturbing historic or archaeological sites, or for collecting artifacts.If historic or archaeological materials are uncovered during construction, theoperator is to immediately stop work that might further disturb such materials,and contact the authorized officer (AO). Within five (5) working days, the AOwillinform the operator as to:

• Whether the materials appear eligible for the National Register ofHistoric Places;

• The mitigation measures the operator will likely have to undertakebefore the site can be used (assuming in situ preservation is notnecessary); and

• A time frame for the AO to complete an expedited review under 36CFR 800.11 to confirm, throughthe State HistoricPreservation Officer, thatthe findings of theAO are correct and that mitigationis appropriate.

O O

If the operator wishes, at any time,to relocate activities to avoid the expense ofmitigation and/or the delays associated with this process, the AO will assumeresponsibility for whatever recordation and stabilization of the exposed materialsmay be required. Otherwise, the operator will be responsible for mitigationcosts.The AO will provide technical and procedural guidelines for the conduct ofmitigation. Upon verification from the AO that the required mitigationhas beencompleted, the operator willthen be allowed to resume construction.

b. Threatened and Endangered Species Concerns: No

c. Wildlife Seasonal Restrictions (yes/no): See EIS

d. Off Location Geophysical Testing: N/A

e. Drainage crossings that require additionalState or Federal approval: N/A

f. Other: N/A

13. Lessee's or Operator's Representative and Certification

Representative:

Name: Jean Semborski

Title: Construction/Asset Integrity Supervisor

Address: 6825 S. 5300 W. P.O. Box 851Price, Utah 84501

Phone No: (435) 613-9777 Fax (435) 613-9782

Certification:

I hereby certify that I, or persons under my direct supervision, have inspected theproposed drill site and access route; that I am familiar with the conditions whichcurrentlyexists; that the statements made in thisAPD package are, to the best of myknowledge, true and correct; and that the work associated with the operationsproposed herein will be performed by ConocoPhillips and its contractors andsubcontractors in conformity with this APD package and the terms and conditionsunder which it is approved. I also certify responsibility for the operations conductedon that portion of the leased lands associated with this application, with bondcoverage being provided under BLMNation Wide Oil and Gas 8015-16-69. Thisstatement is subject to the provisions of 18 U.S.C. 1001 for the filing of a falsestatement.

Signature

Construction/Asset Integrity Supervisor 12/27/05Title Date

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C. REQUIRED APPROVALS,REPORTS AND NOTIFICATIONS

Required verbal notificationsare summarized in Table 1, attached.

Buildinq Location- Contact the Resource Area, Natural Resource Protection Specialist atleast 24 hours prior to commencing construction of location.Soud- The spud date will be reported to the Resource Area Office 24 hours prior tospudding. Written notification in the form of a Sundry Notice (Form 3160-5) will besubmitted the District Office within24 hours after spudding, regardless of whether spudwas made with a dry hole digger or big rig.

Daily DrillinqReports- Daily drilling reports shall detail the progress and status of the welland shall be submitted to the District Officeon a weekly basis.

Monthly Reports of Operations- In accordance with Onshore Oiland Gas Order No. 1, thiswell shall be reported on Minerals Management Service (MMS) Form 3160, "MonthlyReport of Operations," starting the month in which operations commence and continuingeach month until the well is physicallyplugged and abandoned. This report willbe. fileddirectly with MMS.

Sundry Notices- There will be no deviation from the proposed drilling and/or workoverprogram without prior approval from the Assistant District Manager. "Sundry Notices andReports on Wells: (Form 3160-5) willbe filed for approval for all changes of plans andother operations in accordance with 43 CFR 3162.3-2. Safe drilling and operatingpractices must be observed.

Drillinq Suspensions- Operations authorized by this permit shall not be suspended formore than 30 days without prior approval of the Authorized Officer. AIIconditions of thisapproval shall be applicable during any operations conducted witha replacement rig.

Undesirable Events- Spills, blowouts, fires, leaks, accidents, or any other unusualoccurrences shall be immediately reported to the Resource Area in accordance withrequirements of NTL-3A.

Cultural Resources- If cultural resources are discovered during construction, work thatmight disturb the resources is to stop, and the Area Manager is to be notified.

First Production- Should the well be successfully completed for production, the AssistantDistrict Manager, Minerals Division willbe notified when the well is placed in producingstatus. Such notification may be made by phone, but must be followed by a sundry noticeor letter not later than five (5) business days following the date on which the well is placedinto production.

A first production conference willbe scheduled as soon as the productivity of the well isapparent. This conference should be coordinated throughthe Resource Area Office.The Resource Area Office shall be notifiedprior to the first sale.

Well Completion Report- Whether the well is completed as a dry hole or as a producer,"Well Completion and Re-completion Report and Log" (Form 3160-4) willbe submitted tothe District Office not later than thirty(30) days after completion of the well or aftercompletion of operations being performed, in accordance with 43 CFR 3162.4-1. Twocopies of all logs, core descriptions, core analysis, well test data, geologic summaries,sample description, and all other surveys or data obtained and compiled during thedrilling, work-over, and/or completion operations, will be filedwith Form 3160-4. Samples

O O(cuttings and/or samples) will be submitted when requested by the Assistant DistrictManager.

Venting/Flarinq of Gas-NTL-4A allows venting/flaring of gas during the initial wellevaluation period not to exceed 30 days or 50 MMcf. Venting/flaring beyond the initial testperiod thresholdmust be approved by the District Office.Off-Lease Measurement, Storage, Comminglinq- Prior approval must be obtained fromthe Assistant District Manager for off-lease measurement, off-lease storage and/orcommingling(either down-hole or at the surface).

Pluqqinq and Abandonment- If the well is completed as a dry hole, plugging instructionsmust be obtained from the BLM, Moab District Office prior to initiating pluggingoperations. Table 1 of this document provides the after-hours phone numbers ofpersonnel who are authorized to give plugging instructions.A "Subsequent Report of Abandonment" (Form 3160-5) will be filed with the AssistantDistrict Manager, Minerals Divisions within thirty(30) days followingcompletion of the wellfor abandonment. This report will indicate where plugs were placed and the currentstatus of surface restoration. Upon completion of approved plugging, a regulation markerwill be erected in accordance with 43 CFR 3162.6. Final abandonment will not beapproved until the surface reclamation work required by the approved APD or approvedabandonment notice has been completed to the satisfaction of the Area Manager or hisrepresentative, or the appropriate surface managing agency.

TABLE 1NOTIFICATIONS

Notify Don Stephens of the Price Resource Area, at (435)636-3608 for the following:2 days prior to commencement of dirt work, construction or reclamation;1 day prior to spudding;

50 feet prior to reaching surface and intermediate casing depths;3 hours prior to testingBOP;

12 hours prior to reaching kickoff point depth (if applicable).If the person at the above number cannot be reached, notifythe Moab District Office at(435) 259-6111. If unsuccessful, notifyone of the people listed below.Well abandonment operations require 24 hour advance notice and prior approval. In thecase of newly drilled dry holes, verbal approval can be obtained by calling the MoabDistrict Office, Branch of Fluid Minerals at (435) 259-6111. If approval is needed afterwork hours, you may contact the following:

Eric Jones, Petroleum Engineer Office: (435) 259-6111Home: (435) 259-2214

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LEGEND ConocoPhillips Company6825 South 5300 WestP·°· 8°= 661 ConocOPhillipsProposed Well Location: Price, Utah 84501Other Proposed Well Locations: g Phone: (435) 613-9m COmpanyProposed Powerline: ,,,,,, Fax: (435) 613-9782

Proposed Pipeline: ......Proposed Roads:Lease Boundary: .... WELL USA #24-1005Existing Wells: Section 24, T14S, RBE, S.L.B.&M.Scale: 1 = 2000' November 18, 2005 Drawing L-1 4 of

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OANCHOR(TYP. 4 PL.)

145' 90'75'

WELLHEAD PUMPING

UNIT100' --- ' MOTOR

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SEPARATOR--"^ -'

TRANSFORMER

3-PHASE

TYPICALROADCROSS-SECTION

CONOCOPHILLIPSCOMPANY

4" THICKLAYERSAND L

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GAS& WATER i' 27' ' 3-PHASE

PIPELINES POWERLINES

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DIVERTERHEADCONOCOPHILLIPSCOMPANY

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DOUBLE

HYDRAULIC3000#

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8-5/8" 24#SURFACECASING

EXHIBIT

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CONOCOPHILLIPSCOMPANY

(1) 2" 5M Fl.ANGEDCHOKE(2) 2" 5M GATEVALVE(FLANGED)(3) 2" 5M STUDDEDCROSS(4) 2" 5M GATEVALVE(Fl.ANGED)(5) 2" 5M FLANGEDCHOKE(6) 2" 5M GATEVALVE(FLANGED)(7) 2" LINE(8) 2" 5M GATEVALVE(FLANGED)(9) 3000# GAUGE

NOTE:NUMBER8 GATEVALVESITSON TOP OF MANIFOLDBETWEENSTUDDEDCROSSAND3000# GAUCE.

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2" LINE

2" LINE 2" LINE

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2" LINE

TO BOPANDA NEW2" BALLVALVE

FULLOPEN 5000 PSI

MANIFOLDEXHIBIT

e SÙRETY RIDER

To be attached tö and form a part of

Bond No. 8015-16-69

Type ofBond: NATION-WIDE OIL AND GAS BOND

datedeffective 10/19/1963

(MONTH-DAY-YEAR)

executed by CONOCO INC. AND CONOCO GAS HOLDINGS L.L.C.,

,as Principal,(PRINCIPAL) •

and by FEDERAL INSURANCE COMPANY ,as Surety,

in favor of UNITED STATES OF AMERICA(OBLIGEE)

Ínconsideration of the mutual agreements herein contained the Principal and the Surety hereby consent to changing

PRINCIPAL NAME IS HEREBY AMENDED FROM CONOCO INC. AND CONOCO GAS HOLDINGS L.L.C. TOCONOCOPHILLIPS COMPANY.

Nothing herein contained shall vary, alter or extend any provision or condition of this bond except as herein expressly stated.

This rideris effective 01/01/2003

(MONTH-DAY-YEAR)

.Signed and Sealed 12/18/2002(MONTH-DAY-YEAR)

CONOCOPHILLIPS CO

By: //IN L)

PRINCIPAL)

FEDERAL INSURANCE COMPANY

By:(ATTORNEY-IN-FACT) TINA MARIE FOSTER

-0443/GEEF

WORKSHEETAPPLICATION FOR PERMIT TO DRILL

APD RECEIVED: 01/05/2006 API NO. ASSIGNED: 43-007-31088

WELL NAME: USA 24-1005

OPERATOR: CONOCOPHILLIPS COMPANY ( N2335 )

CONTACT: JEAN SEMBORSKI PHONE NUMBER: 435-613-9777

PROPOSED LOCATION:

SWSW 24 140S 080E INSPECT LOCATN BY: / /SURFACE: 0332 FSL 0333 FWL Tech Review Initials DateBOTTOM: 0332 FSL 0333 FWL

CARBON Engineering

DRUNKARDS WASH ( 48 )

LAT: 39.58709 LONG: -110.9822 Surface

LEASE TYPE: 1 - Federal

LEASE NUMBER: U-61154 PROPOSED FORMATION: FRSD

SURFACE OWNER: 1 - Federal COALBED METHANE WELL? YES

RECEIVED AND/OR REVIEWED: LOCATION AND SITING:

v" Plat R649-2-3.

s?"Bond: Fed[1] Ind[] Sta[] Fee[]Unit DRUNKARDS WASH

(No. 8015-16-69 )Potash (Y/N) R649-3-2. General

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

pr' Water Permit R649-3-3. Exception(No.PRWID )

A Drilling UnitA RDCC Review (Y/N)Board Cause No: (1 L(Date: )Eff Date: p ()MA Fee Surf Agreement (Y/N) Siting: Lär y ,wd

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

COMMENTS:

O O s04ttl7172

IT14S RSE " DRUNKARDS T14S R9E o,

' ' WASH FIELDUSiti-ISI

(gg gg.4gg US \ I I 17 i US \ 18 i L5

I NN U 1 i

H a I in yU%\illI7

EX EU4t il 177 13RUNK ARDS

WASH UNIT

I :

CAUSE 243-2 I 7-13-1999

24 59 I I I NN IŒ

RIMIDW U iU

JON M. HUNTSMAN, JR.Governor

GARY R. HERBERTas• Lieutenant Governor

State of Utah March 2, 2006Department of

Natural ResourcesMICHAEL R. STYLER

ExecutiveDirectorConocoPhillips Company

Division of PO Box 851Oil, Gas & Mining Price, UT 84501

JOHN R. BAZADivision Director

Re: USA 24-1005 Well, 332' FSL, 333' FWL, SW SW, Sec. 24, T. 14 South,R. 8 East, Carbon County, Utah

Gentlemen:

Pursuant to theprovisions and requirements of Utah Code Ann.§ 40-6-1 etseq., Utah Administrative Code R649-3-1 et seq., and the attached Conditions ofApproval, approval to drill the referenced well is granted.

This approval shall expire one year from the above date unless substantial andcontinuous operation is underway, or a request for extension is made prior to theexpiration date. The API identification number assigned to this well is 43-007-31088.

Sincerely,

Gil HuntAssociate Director

pabEnclosures

cc: Carbon County AssessorBureau of Land Management, Moab District Office

1594 West North Temple, Suite 1210, PO Box 145801, Salt LakeCity, UT 84114-5801telephone (801)538-5340•facsimile (801)359-3940•TTY (801) 538-7458

OOperator: ConocoPhillips CompanyWell Name & Number USA 24-1005API Number: 43-007-31088Lease: U-61154

Location: SW SW Sec.1 T. 14 South R. 8 East

Conditions of Approval

1. 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 Dan Jarvis at (801) 538-5338

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

STATE OF UTAH FORM 9DEPARTMENT OF NATURALRESOURCES

DIVISIONOF OIL, GAS AND MINING 5. LEASEDESIGNATIONANDSERIALNUMBER:U-61154

SUNDRY NOTICES AND REPORTS ON WELLS6. I/FINDIAN,ALLOTTEEORTRIBENAME:

7. UNITor CA AGREEMENT NAME:Do notuse thisform for proposals to drill new wells, significantly deepen existingwellsbelow current bottom-hole depth, reenter plugged wells, or to Drunkards Wash UTU-67921X

drill horizontal laterals. Use APPLICATION FOR PERMIT TO DRILLform for such proposals.

1. TYPEOF WELL 8. WELL NAMEand NUMBER:OILWELL GAS WELL OTHER USA 24-1005

2. NAMEOF OPERATOR: 9. API NUMBER:

ConocoPhillips Company 43007310883. ADDRESS OF OPERATOR: PHONE NUMBER: 10. FIELD AND POOL, OR WILDCAT:

P.O. Box 51810 Midland STATE TX ZIP 79710-1810 (432) 688-6943 Drunkards Wash4. LOCATIONOF WELL

FOOTAGESATSURFACE: 332' FSL & 333' FWL COUNTY: Carbon

QTR/QTR, SECTION, TOWNSHIP, RANGE, MERIDIAN: SWSW 24 14S 8E STATE:UTAH

u CHECK APPROPRIATE BOXES TO INDICATE NATURE OF NOTICE, REPORT, OR OTHER DATA

TYPE OF SUBMISSION TYPE OF ACTION

ACIDIZE DEEPEN REPERFORATE CURRENT FORMATIONNOTICE OF INTENT

(Submit in Duplicate) ALTER CASING FRACTURE TREAT SIDETRACK TO REPAIR WELL

Approximate date worit willstart: CASING REPAIR NEW CONSTRUCTION TEMPORARILYABANDON

3/2/2007 CHANGE TO PREVIOUS PLANS OPERATOR CHANGE TUBING REPAIR

O CHANGE TUBING PLUG ANDABANDON VENT OR FLARESUBSEQUENT REPORT CHANGE WELL NAME PLUG BACK WATER DISPOSAL

(Submit Original Form Only)

O CHANGE WELL STATUS PRODUCTION (START/RESUME) WATER SHUT-OFFDate of work completion:COMMINGLEPRODUCING FORMATIONS RECLAMATIONOF WELL SITE OTHER: Permit RenewalCONVERT WELL TYPE RECOMPLETE - DIFFERENT FORMATION

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

ConocoPhillips Company respectfully requests that the approval of the Application for Permit to Drill for the referenced well beextended. The current approval willexpire on March 2, 2007.

Approved by theUtah Divisionof

Oil, Gas and Mining

D e: -1

By.

NAME(PLEASE PR NT) D nna Willi ms TITLE Sr. Regulatory Analyst

SIGNATURE DATE

(Titis space for State use only)

RECEIVEDFEBi 52007 RECEIVED

(5/2000) (See Instructions on Reverse Side) OlV.OF01L,GAS&MININGFEB0 / 2007DIVOFOILGAS&

Application for Permit to DrillRequest for Permit Extension

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

AP1: 143-007-31088|Well Name: USA 24-1eosLocation: SWSW Section 24, T14S, RSECompany Permit issued to: ConocoPhillips CompanyDate Original Permit Issued: 3/2/2006

The undersigned as ownerwith legal rights to drillon the property as permittedabove, hereby verifies thatthe 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 ownership changed, if so, has the surfaceagreement been updated? YesONom

Have any wells been drilled in the vicinityof the proposed wellwhich would affectthe spacing or siting requirements for thislocation? YesO Nom

Has there been any unitor other agreements put in place that could affect thepermitting or operationof thisproposed well7 YesO NoO

Have there been any changes to the access route including ownership, or right-of-way, which could affectthe proposed location? YesO NoIZI

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 onsiteevaluatio . esONoO

Is bon ng still n place, which covers thisproposed well? YesŒNoO

2/12/2007

Signaturk Date

Title: Sr. Regulatory Analyst

Representing: conocoPhillips Company

RECEIVEDFEB1.52001

DIVOFol!··GAS&

STATE OF UTAH FORM 9DEPARTMENT OF NATURALRESOURCES

DIVISION OF OIL, GAS AND MINING 5. LEASEDESIGNATIONANDSERlALNUMBER:U-61154

SUNDRY NOTICES AND REPORTS ON WELLS6. IFINDIAN,ALLOTTEEORTRIBENAME:

7. UNITor CA AGREEMENT NAME:Do not use thisform for proposals to drillnewwells, significantly deepen existing wells below current bottom-hole depth, reenter plugged wells, or to Drunkards Wash UTU-67921X

drill horizontal laterals. Use APPLICATION FOR PERMIT TO DRILLform for such proposals.

1. TYPE OF WELL 8. WELL NAME and NUMBER:OIL WELL GAS WELL OTHER USA 24-1005

2.NAMEOFOPERATOR: 9.APINUMBER:

ConocoPhillips Company 43007310883. ADDRESS OF OPERATOR: PHONE NUMBER: 10. FlELD AND POOL, OR WILDCAT:

P. O. Box 51810 cin Midland STATE TX zie 79710-1810 (432)688-6943 Drunkards Wash

4 LOCATION OF WELL

FOOTAGESATSURFACE: COUNTY: Carbon

QTR/QTR, SECTION, TOWNSHIP, RANGE, MERIDIAN: SWSW 145 85 STATE:UTAH

CHECK APPROPRIATE BOXES TO INDICATE NATURE OF NOTICE, REPORT, OR OTHER DATATYPE OF SUBMISSION TYPE OF ACTION

ACIDIZE DEEPEN REPERFORATE CURRENT FORMATIQNNOTICE OF INTENT

(Submit in Duplicate) ALTER CASING FRACTURE TREAT SlDETRACK TO REPA1RWELL

Approximate date workwillstart: CASING REPAIR NEW CONSTRUCTION TEMPORARILYABANDON.

2/21/2008 CHANGE TO PREVIOUS PLANS OPERATOR CHANGE TUBING REPAIRCHANGE TUBING PLUG AND ABANDON VENT OR FLARE

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

CHANGE WELL STATUS PRODUCTION (STARTIRESUME) WATER SHUT-OFF

Date of work completion:COMMINGLEPRODUCING FORMATIONS RECLAMATIONOF WELL S1TE OTHER: Permit RenewalCONVERT WELLTYPE RECOMPLETE - DIFFERENT FORMATION

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

ConocoPhillips Company respectfully requests that the approval of the Application for Permit to Drill for the referenced well beextended. The current approval willexpire on February 21, 2008.

Approvedby theUtah Divisionof

Oil,Gas and Mining

Date: ( 2-3

By: coPYSENTTooPERATOA

NAME(PLEASE PRIN ) Do na Wi Iiams TITLE Sr. Regulatory Specialist

1/17/2008SIGNATURE / -- DATE

(This space for State use only)

RECElVED

(5/2000) (See Instructions on Reverse Side) JAN2 3 2008DIV.0F0lL,GAS&



API: 43-007-31088Well Name: USA 24-1005Location: SWSW Sec 24, T14S, R8E, Carbon Co.Company Permit Issued to: ConocoPhillips CompanyDate Original Permit Issued: 3/2/2006

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

Followinq is a checklist of some items related to the application, which should beverified.

If located on private land, has the ownership changed, if so, has the surfaceagreement been updated? YesONom

Have any wells been drilled in the vicinityof the proposed well which would affectthe spacing or siting requirements for this location? YesO No2

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

Have there been any changes to the access route including ownership, or right-of-way, which could affect the proposed location? YesO No 21

Has the approved source of water for drillingchanged? YesO No2

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

Is bond gs illin place, which covers thisproposed well? YesŒNoO

1/17/2008

Signat e Date

Title: Sr. Regulatory Specialist

Representing: ConocoPhillips Company

RECEiVEDJAN2 3 2008

DIVOFOIL,GAS&

STATE OF UTAH FORM 9

O DEPARTMENTOF NATURALRESOURCESDIVISIONOF OIL, GAS AND MINING 5. LEASEDESIGNATIONANDSERlALNUMBER:U 61154

6. IF INDIAN,ALLOTTEEOR TRIBE NAME:SUNDRY NOTICES AND REPORTS ON WELLS N/A

7. UNIT or CA AGREEMENT NAME:Do not use thisform for proposals to drill new wells, significantly deepen existing wells below current bottom-hole depth, reenterplugged wells, or to Drunkards Wash UTU67921X

drill horizontal laterals. Use APPLICATIONFOR PERMlT TO DRILLform for such proposals.

1. TYPE OF WELLOIL WELL GAS WELL OTHER

8 WELL A4M-Ea0nd0NUMBER:


ConocoPhillips Company 43007310883. ADDRESS OF OPERATOR: PHONE NUMBER: 10. FIELD AND POOL, OR WILDCAT:

P.O. Box 51810 CITY Midland STATE TX ziP79710 (432)688-6943 Drunkards Wash

4. LOCATIONOF WELL

FOOTAGESATSURFACE: 332 FSL & 333 FWL COUNTY: Carbon

QTRIQTR, SECTION, TOWNSHIP, RANGE, MERIDIAN SWSW 24 14S 8E STATE:UTAH

. CHECK APPROPRIATE BOXES TO INDICATE NATURE OF NOTICE, REPORT, OR OTHER DATATYPE OF SUBMISSION TYPE OF ACTION

AC1DIZE DEEPEN REPERFORATE CURRENT FORMATIONNOTICE OF INTENT

(Submit in Duplicate) ALTER CASING FRACTURE TREAT SIDETRACKTO REPAIR WELL

Approximatedateworkwillstart: CASINGREPAIR NEWCONSTRUCTION TEMPORARILYABANDON

2/13/2009 CHANGE TO PREVIOUS PLANS OPERATOR CHANGE TUBING REPAIR

CHANGE TUBING PLUG ANDABANDON VENT OR FLARE


O CHANGE WELLSTATUS PRODUCTION (START/RESUME) WATER SHUT-OFFDate ofworkcompletion:COMMINGLEPRODUCING FORMATIONS RECLAMATIONOF WELL SITE OTHER: Permit RenewalCONVERT WELLTYPE RECOMPLETE - DIFFERENT FORMATION

12- DESCRIBE PROPOSED OR COMPLETED OPERATIONS. Clearly show all pertinent details including dates, depths, volumes, etc.

ConocoPhillips Company respectfully requests that the approval of the Application for Permit to Drill for the referenced well beextended. The current approval willexpire on .

Approvedby theUtahDMeionof

Oil,Gas and Mining

COPYSENTTOOPERATOR

NAME (PLEASE PRIN Do na Willi S TITLE Sr. Regulatory Specialist

SIGNATURE DATE2/13/2009

(This space for State use



API: 4300731088Well Name: USA 24-1005Location: SWSW of 24-14S-8ECompany Permit Issued to: ConocoPhillips CompanyDate Original Permit issued: adota


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

If located on private land, has the ownership changed, if so, has the surfaceagreement been updated? Yes O No O

Have any wells been drilled in the vicinityof the proposed well which would affectthe spacing or siting requirements for this location? YesO NoO

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

Have there been any changes to the access route including ownership, or right-of-way, which could affect the proposed location? YesO No I2l

Has the approved source of water for drillingchanged? YesO NolZI

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

Is bondin still n place, which covers thisproposed well? YesŒNoO

Signature Date



RECEIVEDFEBI 7 2009

DIVOFOIL,GAS&

STATEOFUTAH FORM9DEPARTMENT OF NATURAL RESOURCES

DIVISION OF OIL, GAS AND MINING 5. LEASEDESIGNATIONANDSERIALNUMBER:U 61154

SUNDRY NOTICES AND REPORTS ON WELLS 6. F/lNDIAN,ALLOTTEEORTRIBENAME:

7. UNITor CA AGREEMENT NAME:Do not use thisform for proposals to drill new wells, significantly deepen existing wells below current bottom-hole depth, reenter plugged wells, or to Drunkards Wash UTU67921Xdrill horizontal laterals. Use APPLICATION FOR PERMIT TO DRILLform for such proposals.

1. TYPE OF WELL 8. WELL NAMEand NUMBER:OIL WELL GAS WELL OTHER USA 24-1005


ConocoPhillips Company 43007310883. ADDRESS OF OPERATOR: PHONE NUMBER: 10. FIELDAND POOL, OR WILDCAT:P.O. Box 51810 Midland STATE TX 79710 (432) 688-6943 Drunkards Wash

4. LOCATIONOF WELL

FOOTAGESATSURFACE: 332 FSL & 333 FWL COUNTY: Carbon

QTR/QTR, SECTION, TOWNSHIP, RANGE, MERIDIAN: SWSW 24 14S 8E STATE:UTAH

it CHECK APPROPRIATE BOXES TO INDICATE NATURE OF NOTICE, REPORT, OR OTHER DATATYPE OF SUBMISSION TYPE OF ACTION

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

Approximate date work will start: CASING REPAIR NEW CONSTRUCTION TEMPORARILYABANDON

3/17/2010 CHANGE TO PRE\nOUS PLANS OPERATOR CHANGE TUBING REPAIRCHANGE TUBlNG PLUG AND ABANDON VENT OR FLARE


CHANGE WELL STATUS PRODUCTION (START/RESUME) WATER SHUT-OFFDate of work completion:

COMM1NGLEPRODUCING FORMATIONS RECLAMATIONOF WELL S1TE OTHER: Permit RenewalCONVERT WELLTYPE RECOMPLETE -D1FFERENTFORMATION

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

ConocoPhillips Company respectfully request that the approval of the APD for the referenced well be extended for an additionalyear.

Approvedby theUtah Divisionof

Oil, Gas and Mining

Date: DCOPYSENTTOOPERATORBŸ¾

Initials:

NAME(PLEASEPRI T) D nna Will ams T1TLE Sr. Regulatory Specialist

SIGNATURE Â A Â DATE 3/17/2010

(This space for State use only)

RECEIVED

(5/2000) (See Instructions on Reverse Side)

DN.0FOIL,GAS&



API. l. 8300231088___¡

Well Name: USA 24-1005Location: SWSW of 24-14S-8ECompany Permit Issued to: ConocoPhillips CompanyDate Original Permit Issued: 3/2/2006


Followinq is a checklist of some items related to the application, which should beverified.

If located on private land, has the ownership changed, if so, has the surfaceagreement been updated? YesONolZI

Have any wells been drilled in the vicinityof the proposed well which would affectthe spacing or siting requirements for this location? YesO NolZ]

Has there been any unit or other agreements put in place thatcould affect thepermitting or operation of thisproposed well? YesO NolZI

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

Has the approved source of water for drillingchanged? YesO NolZI

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

Is bon tillin place, which covers this proposed well? YeslZINoO

3/17/2010

Signa e Date



RECEIVED

DIV.0FOIL,GAS&

API Well No: 43007310880000

STATE OF UTAHDEPARTMENT OF NATURAL RESOURCES

DIVISION OF OIL, GAS, AND MINING

FORM 9

5.LEASE DESIGNATION AND SERIAL NUMBER: U-61154

SUNDRY NOTICES AND REPORTS ON WELLSDo not use this form for proposals to drill new wells, significantly deepen existing wells below currentbottom-hole depth, reenter plugged wells, or to drill horizontal laterals. Use APPLICATION FOR PERMIT TODRILL form for such proposals.

6. IF INDIAN, ALLOTTEE OR TRIBE NAME:

7.UNIT or CA AGREEMENT NAME: DRUNKARDS WASH

1. TYPE OF WELL Gas Well

8. WELL NAME and NUMBER: USA 24-1005

2. NAME OF OPERATOR: CONOCOPHILLIPS COMPANY

9. API NUMBER: 43007310880000

3. ADDRESS OF OPERATOR: PHONE NUMBER: P.O. Box 51810 , Midland, TX, 79710 1810 432 688-6943 Ext

9. FIELD and POOL or WILDCAT: DRUNKARDS WASH

4. LOCATION OF WELL FOOTAGES AT SURFACE: 0332 FSL 0333 FWL QTR/QTR, SECTION, TOWNSHIP, RANGE, MERIDIAN: Qtr/Qtr: SWSW Section: 24 Township: 14.0S Range: 08.0E Meridian: S

COUNTY: CARBON

STATE: UTAH

11.

CHECK APPROPRIATE BOXES TO INDICATE NATURE OF NOTICE, REPORT, OR OTHER DATA


NOTICE OF INTENTApproximate date work will start:

2/17/2011

SUBSEQUENT REPORTDate of Work Completion:

SPUD REPORTDate of Spud:

DRILLING REPORTReport Date:

ACIDIZE ALTER CASING CASING REPAIR

CHANGE TO PREVIOUS PLANS CHANGE TUBING CHANGE WELL NAME

CHANGE WELL STATUS COMMINGLE PRODUCING FORMATIONS CONVERT WELL TYPE

DEEPEN FRACTURE TREAT NEW CONSTRUCTION

OPERATOR CHANGE PLUG AND ABANDON PLUG BACK

PRODUCTION START OR RESUME RECLAMATION OF WELL SITE RECOMPLETE DIFFERENT FORMATION

REPERFORATE CURRENT FORMATION SIDETRACK TO REPAIR WELL TEMPORARY ABANDON

TUBING REPAIR VENT OR FLARE WATER DISPOSAL

WATER SHUTOFF SI TA STATUS EXTENSION APD EXTENSION

WILDCAT WELL DETERMINATION OTHER OTHER:


ConocoPhillips Company respectfully request to renew the drilling permit foran additional year. The current permit expires on 3/2/2011.

NAME (PLEASE PRINT) PHONE NUMBER Donna Williams 432 688-6943

TITLE Sr. Regulatory Specialist

SIGNATURE N/A

DATE 2/17/2011

02/23/2011

iPI Well No: 43007310880000

FORM 9


DIVISION OF OIL, GAS, AND MINING E6AS1E54DESIGNATION AND SERIAL NUMBER:

SUNDRY NOTICES AND REPORTS ON WELLS 6. IF INDIAN, ALLOTTEE OR TRIBE NAME:

Do not use this form for proposals to drill new wells, significantly deepen e×isting wells below currentbottom-hole depth, reenter plugged wells, or to drill horizontal laterals. Use APPLICATION FOR PERMIT TO 7.UNIT or CA AGREEMENT NAME:DRILL form for such proposals. DRUNKARDS WASH

1. TYPE OF WELL 8. WELL NAME and NUMBER:Gas Well USA 24-1005

2. NAME OF OPERATOR: 9. API NUMBER:CONOCOPHILLIPS COMPANY 43007310880000

3. ADDRESS OF OPERATOR: PHONE NUMBER: 9. FIELD and POOL or WILDCAT:P.O. Box 51810 , Midland, TX, 79710 1810 432 688-6943 Ext DRUNKARDS WASH

4.LOCATIONOFWELL COUNTY:FOOTAGES AT SURFACE: CARBON

0332 FSL 0333 FWLQTR/QTR, SECTION, TOWNSHIP, RANGE, MERIDIAN: STATE:

Qtr/Qtr: SWSW Section: 24 Township: 14.05 Range: 08.0E Meridian: S UTAH

11.CHECK APPROPRIATE BOXES TO INDICATE NATURE OF NOTICE, REPORT, OR OTHER DATA



NOTICE OF INTENTApproximate date work will start: CHANGE TO PREVIOUS PLANS CHANGE TUBING CHANGE WELL NAME

2/17/2011CHANGE WELL STATUS COMMINGLE PRODUCING FORMATIONS CONVERT WELL TYPE

SUBSEQUENT REPORT DEEPEN FRACTURE TREAT NEW CONSTRUCTIONDate of Work Completion:



O SPUD REPORTDate of Spud: REPERFORATE CURRENT FORMATION SIDETRACK TO REPAIR WELL TEMPORARY ABANDON


DRILLING REPORT WATER SHUTOFF SI TA STATUS EXTENSION APD EXTENSIONReport Date:


12. DESCRIBE PROPOSED OR CC MPLETED OPERATIONS. Clearly show all pertinent details including dates, depths, volumes, etc.

ConocoPhillips Company respectfully request to renew the drilling permit foran additional year. The current permit expires on 3/2/2011. Approved by the

Utah Division ofOil, Gas and Mining

Date: 02/23/2011

By:

NAME (PLEASE PRINT) PHONE NUMBER TITLEDonna Williams 432 688-6943 Sr. Regulatory Specialist

SIGNATURE DATEN/A

The Utah Division of Oil, Gas, and Mining

- State of Utah- Department of Natural Resources

Electronic Permitting System - Sundry Notices

Request for Permit Extension Validation Well Number 43007310880000

API: 43007310880000Well Name: USA 24-1005

Location: 0332 FSL 0333 FWL QTR SWSW SEC 24 TWNP 140S RNG 080E MER SCompany Permit Issued to: CONOCOPHILLIPS COMPANY

Date Original Permit Issued: 3/2/2006

The undersigned as owner with legal rights to drill on the property as permitted above, hereby verifies thatthe information as submitted in the previously approved application to drill, remains valid and does notrequire revision. Following is a checklist of some items related to the application, which should be verified.

If located on private land, has the ownership changed, if so, has the surface agreement beenupdated? Yes No

Have any wells been drilled in the vicinity of the proposed well which would affect the spacing orsiting requirements for this location? Yes No

Has there been any unit or other agreements put in place that could affect the permitting or operationof this proposed well? Yes No

Have there been any changes to the access route including ownership, or rightof- way, which couldaffect the proposed location? Yes No

Has the approved source of water for drilling changed? Yes No

Have there been any physical changes to the surface location or access route which will require achange in plans from what was discussed at the onsite evaluation? Yes No

Is bonding still in place, which covers this proposed well? Yes No

Signature: Donna Williams Date: 2/23/2011

Title: Sr. Regulatory Specialist Representing: CONOCOPHILLIPS COMPANY

UTAH

DNR The Utah Division of Oil, Gas, and Mining- State of Utah- Department of Natural ResourcesElectronic Permitting System - Sundry Notices

TI, BAS Pr N1NTMG


API: 43007310880000Well Name: USA 24-1005




•If located on private_land, has the ownership changed, if so, has the surface agreement beenupdated? O Yes No

• Have any wells been drilled in the vicinity of the roposed well which would affect the spacing orsiting requirements for this location? O Yes No

• Has there been any unit or other agreements put in place that could affect the permitting or operationof this proposed well? O Yes @ No

• Have there been any changes to the access route including ownership, or rightof- way, which couldaffect the proposed location? O Yes @ No

• Has the approved source of water for drilling changed? O Yes @ No

• Have there been any physical changes to the surface location or access route which will require achange in plans from what was discussed at the onsite evaluation? O Yes @ No

• Is bonding still in place, which covers this proposed well? @ Yes O No

Signature: Donna Williams Date: 2/23/2011Title: Sr. Regulatory Specialist Representing: CONOCOPHILLIPS

API Well No: 43007310880000


DIVISION OF OIL, GAS, AND MINING

FORM 9

5.LEASE DESIGNATION AND SERIAL NUMBER: U-61154

SUNDRY NOTICES AND REPORTS ON WELLSDo not use this form for proposals to drill new wells, significantly deepen existing wells below currentbottom-hole depth, reenter plugged wells, or to drill horizontal laterals. Use APPLICATION FOR PERMIT TODRILL form for such proposals.

6. IF INDIAN, ALLOTTEE OR TRIBE NAME:

7.UNIT or CA AGREEMENT NAME: DRUNKARDS WASH

1. TYPE OF WELL Gas Well

8. WELL NAME and NUMBER: USA 24-1005

2. NAME OF OPERATOR: CONOCOPHILLIPS COMPANY

9. API NUMBER: 43007310880000

3. ADDRESS OF OPERATOR: PHONE NUMBER: P.O. Box 51810 , Midland, TX, 79710 1810 432 688-6943 Ext

9. FIELD and POOL or WILDCAT: DRUNKARDS WASH

4. LOCATION OF WELL FOOTAGES AT SURFACE: 0332 FSL 0333 FWL QTR/QTR, SECTION, TOWNSHIP, RANGE, MERIDIAN: Qtr/Qtr: SWSW Section: 24 Township: 14.0S Range: 08.0E Meridian: S

COUNTY: CARBON

STATE: UTAH

11.

CHECK APPROPRIATE BOXES TO INDICATE NATURE OF NOTICE, REPORT, OR OTHER DATA


NOTICE OF INTENTApproximate date work will start:

2/17/2011

SUBSEQUENT REPORTDate of Work Completion:

SPUD REPORTDate of Spud:

DRILLING REPORTReport Date:


CHANGE TO PREVIOUS PLANS CHANGE TUBING CHANGE WELL NAME

CHANGE WELL STATUS COMMINGLE PRODUCING FORMATIONS CONVERT WELL TYPE

DEEPEN FRACTURE TREAT NEW CONSTRUCTION



REPERFORATE CURRENT FORMATION SIDETRACK TO REPAIR WELL TEMPORARY ABANDON


WATER SHUTOFF SI TA STATUS EXTENSION APD EXTENSION



ConocoPhillips Company respectfully request to renew the drilling permit foran additional year. The current permit expires on 3/2/2011.

NAME (PLEASE PRINT) PHONE NUMBER Donna Williams 432 688-6943

TITLE Sr. Regulatory Specialist

SIGNATURE N/A

DATE 2/17/2011

02/23/2011

iPI Well No: 43007310880000

FORM 9


DIVISION OF OIL, GAS, AND MINING E6AS1E54DESIGNATION AND SERIAL NUMBER:

SUNDRY NOTICES AND REPORTS ON WELLS 6. IF INDIAN, ALLOTTEE OR TRIBE NAME:

Do not use this form for proposals to drill new wells, significantly deepen e×isting wells below currentbottom-hole depth, reenter plugged wells, or to drill horizontal laterals. Use APPLICATION FOR PERMIT TO 7.UNIT or CA AGREEMENT NAME:DRILL form for such proposals. DRUNKARDS WASH

1. TYPE OF WELL 8. WELL NAME and NUMBER:Gas Well USA 24-1005

2. NAME OF OPERATOR: 9. API NUMBER:CONOCOPHILLIPS COMPANY 43007310880000

3. ADDRESS OF OPERATOR: PHONE NUMBER: 9. FIELD and POOL or WILDCAT:P.O. Box 51810 , Midland, TX, 79710 1810 432 688-6943 Ext DRUNKARDS WASH

4.LOCATIONOFWELL COUNTY:FOOTAGES AT SURFACE: CARBON

0332 FSL 0333 FWLQTR/QTR, SECTION, TOWNSHIP, RANGE, MERIDIAN: STATE:

Qtr/Qtr: SWSW Section: 24 Township: 14.05 Range: 08.0E Meridian: S UTAH

11.CHECK APPROPRIATE BOXES TO INDICATE NATURE OF NOTICE, REPORT, OR OTHER DATA



NOTICE OF INTENTApproximate date work will start: CHANGE TO PREVIOUS PLANS CHANGE TUBING CHANGE WELL NAME

2/17/2011CHANGE WELL STATUS COMMINGLE PRODUCING FORMATIONS CONVERT WELL TYPE

SUBSEQUENT REPORT DEEPEN FRACTURE TREAT NEW CONSTRUCTIONDate of Work Completion:



O SPUD REPORTDate of Spud: REPERFORATE CURRENT FORMATION SIDETRACK TO REPAIR WELL TEMPORARY ABANDON


DRILLING REPORT WATER SHUTOFF SI TA STATUS EXTENSION APD EXTENSIONReport Date:


12. DESCRIBE PROPOSED OR CC MPLETED OPERATIONS. Clearly show all pertinent details including dates, depths, volumes, etc.

ConocoPhillips Company respectfully request to renew the drilling permit foran additional year. The current permit expires on 3/2/2011. Approved by the

Utah Division ofOil, Gas and Mining

Date: 02/23/2011

By:

NAME (PLEASE PRINT) PHONE NUMBER TITLEDonna Williams 432 688-6943 Sr. Regulatory Specialist

SIGNATURE DATEN/A

The Utah Division of Oil, Gas, and Mining

- State of Utah- Department of Natural Resources

Electronic Permitting System - Sundry Notices


API: 43007310880000Well Name: USA 24-1005




If located on private land, has the ownership changed, if so, has the surface agreement beenupdated? Yes No

Have any wells been drilled in the vicinity of the proposed well which would affect the spacing orsiting requirements for this location? Yes No

Has there been any unit or other agreements put in place that could affect the permitting or operationof this proposed well? Yes No

Have there been any changes to the access route including ownership, or rightof- way, which couldaffect the proposed location? Yes No

Has the approved source of water for drilling changed? Yes No

Have there been any physical changes to the surface location or access route which will require achange in plans from what was discussed at the onsite evaluation? Yes No

Is bonding still in place, which covers this proposed well? Yes No

Signature: Donna Williams Date: 2/17/2011

Title: Sr. Regulatory Specialist Representing: CONOCOPHILLIPS COMPANY

Feb. 17, 2011

UTAH

DNR The Utah Division of Oil, Gas, and Mining- State of Utah- Department of Natural ResourcesElectronic Permitting System - Sundry Notices

TI, BAS Pr N1NTMG


API: 43007310880000Well Name: USA 24-1005




•If located on private_land, has the ownership changed, if so, has the surface agreement beenupdated? O Yes No

• Have any wells been drilled in the vicinity of the roposed well which would affect the spacing orsiting requirements for this location? O Yes No

• Has there been any unit or other agreements put in place that could affect the permitting or operationof this proposed well? O Yes @ No

• Have there been any changes to the access route including ownership, or rightof- way, which couldaffect the proposed location? O Yes @ No

• Has the approved source of water for drilling changed? O Yes @ No

• Have there been any physical changes to the surface location or access route which will require achange in plans from what was discussed at the onsite evaluation? O Yes @ No

• Is bonding still in place, which covers this proposed well? @ Yes O No

Signature: Donna Williams Date: 2/17/2011Title: Sr. Regulatory Specialist Representing: CONOCOPHILLIPS

O OState of Utah

.DEPARTMENT OF NATURAL RESOURCES

- MICHAEL R. STYLER

GAR BERTExecutiveDirector

Governor Division of Oil, Gas and MiningGREG BELL JOHN R. BAZA

Lieutenant Governor Division Director

June 14, 2012

ConocoPhillips CompanyP.O. Box 51810Midland, TX 79710-1810

Re: APD Rescinded - USA 24-1005, Sec. 24, T.14S, R.8E,Carbon County, Utah API No. 43-007-31088

Ladies and Gentlemen:

The Application for Permit to Drill (APD) for the subject well wasapproved by the Division of Oil, Gas and Mining (Division) on March 2, 2006.On February 21, 2007, January 23, 2008, February 23, 2009, March 22, 2010 andFebruary 23, 2011 the Division granted a one-year APD extension. No drillingactivity at this location has been reported to the division. Therefore, approval todrill the well is hereby rescinded, effective June 14, 2012.

A new APD must be filed with this office for approval prior to thecommencement of any future work on the subject location.

If any previously unreported operations have been performed on this welllocation, it is imperative that you notify the Division immediately.

Sincerely,

ana asonEn JronmentalScientist

cc: Well FileBureau of Land Management, Price

UTAH

DNR

1594 West North Temple, Suite 1210, PO Box 145801, Salt Lake City, UT84114-5801

telephone(801) 538-5340 • facsimile(801) 359-3940 • TTY (801) 538-7458• www.ogm.utah.gov°1', GAS &

APD-DRILLAPD-WORKSHEETAPD-APPROVALAPD-RESCIND

tig24 jÔÑ - UtahThe 5 ½" production casing will be set and cemented using a two stage cementing process. This entails setting casing to total TD and running a DV tool to approximately

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