DAILY & WOODS
JERRY L. CANFIELD, P.A.
THOMAS A. DAILY, P.A.
WYMAN R. WADE, JR., P.A.
DOUGLAS M. CARSON, P.A.
ROBERT R. BRIGGS, P.A. †
C. MICHAEL DAILY, P.A. † !"
L. MATTHEW DAVIS, P.A. †
COLBY T. ROE
A PROFESSIONAL LIMITED LIABILITY COMPANY
ATTORNEYS AT LAW
KMW BUILDING
58 SOUTH SIXTH STREET
P.O. BOX 1446
FORT SMITH, AR 72902
TELEPHONE (479) 782-0361
FAX (479) 782-6160
______________
† Also Licensed in Oklahoma
! Also Licensed in Wyoming & North Dakota
" Certified Mediator
JAMES E. WEST
DALE CARLTON
PHILLIP E. NORVELL †
OF COUNSEL
_______
HARRY P. DAILY (1886-1965)
JOHN P. WOODS (1886-1976)
JOHN S. DAILY (1912-1987)
BEN CORE (1924-2007)
November 15, 2011
Arkansas Oil and Gas Commission
301 Natural Resources Drive, Suite 102
Little Rock, Arkansas 72205
Re:
ORDER REFERENCE NO.
336-2011-12
Application of Weiser-Brown Oil Company for the formation of an exploratory
drilling unit composed of the Southeast Quarter of the Northeast Quarter of
Section 23, Township 18 South, Range 17 West, Union County, Arkansas and
for the integration of uncommitted leasehold working interest owners in such
exploratory drilling unit.
Commissioners:
Weiser-Brown Oil Company, P.O. Box 3050, Magnolia, Arkansas 71753, hereby applies
to the Arkansas Oil and Gas Commission as follows:
1,
The applicant’s proposed drilling unit, described above is not subject to the field
rules of the any field. The applicant and its participating partners control at least 50% of
the right to drill and produce oil and gas from such proposed unit. The applicant thus
requests that the above described drilling unit be designated as an exploratory drilling
unit.
2.
Applicant’s proposed well will be drilled to an approximate depth of 3,300 feet to
test the Hill Sand Formation as well as any other intervening formations.
3.
Applicant owns oil and gas leases covering a substantial part of the proposed
unit. Applicant should be named as operator of the well. The person or persons to be
integrated are shown in Exhibit "A" attached hereto and made a part hereof.
4.
Applicant has made diligent efforts to negotiate with the non-participating
leasehold working interest owners, each of said parties owning an oil and gas leasehold
interest in the proposed unit, but applicant has been unable to secure an assignment of
the leasehold interest on an equitable basis or to secure participation by said parties in
the drilling of the proposed well.
5.
Applicant states that it is in the best interest of conservation and the protection of
correlative rights of all interested parties that the proposed unit be developed for oil and
gas production without undue delay.
6.
In order that applicant may proceed with the orderly development of said unit,
applicant hereby requests that the Arkansas Oil and Gas Commission issue its order, in
the alternative, that:
(a)
The owners of non-consenting oil and gas leasehold working
interests indicated above shall participate in the cost of drilling,
testing and completion of the test well to be drilled by applicant on
the captioned unit, subject to the terms of an Operating Agreement
which substantially employs the terms of the AAPL Operating
agreement, with a COPAS attached.
(b)
All of the non-consenting oil and gas leasehold working interests
within the proposed unit shall be force pooled and integrated into
said unit, and a reasonable risk factor shall be established and
assessed as a penalty against said integrated interest.
7.
Applicant further states that due to the risks and costs inherent in the drilling of
the proposed well, the Commission should fix a reasonable risk factor to be assessed
as a penalty against the integrated interests within the unit. The risk factor should be
applied to the proportionate cost and expenses of drilling, completing and equipping the
well, which would have been borne by the interest of said parties had they participated.
8.
Applicant further requests that this Commission's order specifically provide that
any party electing either to participate or be force pooled subject to recoupment of a
risk factor penalty be bound by the terms of the attached AAPL Operating Agreement
for the life of commercial production within the unit so that all future unit operations
might be proposed pursuant to the provisions of such agreement without the necessity
of future action by this Commission.
9.
Applicant also requests that said order be made applicable to any unknown
spouse, heir, devisee, personal representative, successor or assign of said parties.
10.
The names and addresses of parties interested in this proceeding are set forth in
Exhibit "A" attached hereto and made a part hereof.
11.
Please note the appearance of Thomas A. Daily of Daily & Woods, P.L.L.C.,
P.O. Box 1446, Fort Smith, Arkansas, 72902, on behalf of applicant.
Very truly yours,
Thomas A. Daily
jmt
EXHIBIT “A-1"
Integrated Parties
JANE HARVEY BURGLAND
C/O MCCASLIN & CO.
500 WEST 7TH, SUTIE 900
FORT WORTH, TX 76102
HENDRIX COLLEGE
C/O BANK OF OKLAHOMA
P.O. BOX 3499
TULSA, OK 74101
CAROL MCCALL HERMSEN
P.O. BOX 47
MT. HOLLY, AR 71758
OUACHITA BAPTIST UNIVERSITY
BUINESS OFFICE
OBU BOX 3756
ARKADELPHIA, AR 71923
SALEM COLLEGE
3RD SCHOLARSHIP FUND
P.O. BOX 10548
WINSTON-SALEM, NC 27108
Exhibit "A-2"
MARY AGNES OAKES KENDRICK
JACK KENDRICK
1600 TEXAS STREET, APT. 2906
FT. WORTH, TX 76102
NANCY OAKES LOVING
JAMES LOVING, JR.
1120 WILLOWBROOK TRAIL
MAITLAND, FL 32751
CHARLES V. BEASLEY, JR.
EDWINA D. BEASLEY
202 NORTH WASHINGTON, SUITE 206
EL DORADO, AR 71731
TOM WESTBROOK, IV
TONI WESTBROOK
10191 COUNTRY ROAD 417
TYLER, TX 75704
CAROL K. WESTBROOK
10 PECAN DRIVE
PENSACOLA, FL 32514
DAVID E. WESTBROOK
PAMELA WESTBROOK
379 COUNTRY ROAD 2091
CARTHAGE, TX 75633
CHRISTIE A. HECKLER
LAWRENCE HECKLER
6118 KELLY ELLIOT ROAD
ARLINGTON, TX 76001-5041
MATT T. WESTBROOK &
ELIZABETH WESTBROOK
4601 EAST JIM MITCHEL TRAIL
COLLEYVILLE, TX 76034
SUSAN WINDSOR
16734 WEST 156TH TERRACE
OLATHE, KS 66062
THE RUTH G. PICKENS GRANDCHILDREN’S JOINT
VENTURE
811 PRESTON ROAD, SUITE 800
DALLAS, TX 75225-6370
BUFORD I. KING, TRUSTEE
P.O. BOX 270
FORT WORTH, TX 76121-119
WILSON PROPERTIES
728 NORTH MADISON
EL DORADO, AR 71730
DOUGLAS S. BOONE, TRUSTEE OF THE REVOCABLE
INTER VIVOS TRUST DATED JULY 3, 1992
PO.O. BOX 106
LAUREL, MS 39441
JAMES O. COTTRELL
EULA F. COTTRELL
5678 CALION HIGHWAY
EL DORADO, AR 71730
R.T. ELLZEY, JR.
1925 CALION ROAD
EL DORADO, AR 71730
BRUCE E. MCKINNON
509 WEST MYRTLE STREET
WARRN, AR 71671
DANIEL L. MCKINNON
4925 BEECHWOOD HILLS DRIVE
SHREVEPORT, LA 71107
MORRIS M. MCKINNON
6604 WESSON ROAD
JUNCTION CITY, AR 71747
JERRY W. MCKINNON
819 REGMAR DRIVE
SHREVEPORT, LA 71107
JESSIE F. MCKINNON
101 SOUTHPARK DRIVE
EL DORADO, AR 71730
THOMAS R. MCKINNON
1860 BRENT LANE
FAYETTEVILLE, AR 72701
BILLYE ANN HOWELL OWENS
ROBERT OWENS
4544 BELFORT
DALLAS, TX 75205
JAMES MICHAEL SINNOTT
PAM SINNOTT
3202 CLAIBORNE CIRCLE
MONROE, LA 71201
GALE SINNOT HOUK
ALLEN HOUK
12103 MAPLE ROCK DRIVE
HOUSTON, TX 7707
MURPH LIMITED PARTNERSHIP
P.O. BOX 769
MAGNOLIA, AR 71754
ANN BOWDEN OAKES
315 BERKSHIRE PLACE
SHREVEPORT, LA 71134
SGM FAMILY, LLLP
ATTN: MARY K. GLOVER
10909 JONES ROAD, PMB 300
HOUSTON, TX 77065
REBECCA HANER
1327 MT. HOLLY ROAD
EL DORADO, AR 71730
BOBBYE J. HOLLYFIELD
13 SOUTH BELLEVILLE
FREEBURG, IL 62243
KATHLEEN WOODS
JOHN A. WOODS, SR.
1103 SMEDE HIGHWAY
BROUSSARD, LA 70518
HENRY A. MOORE, JR.
999 MT. UNION ROAD
EL DORADO, AR 71730
RIBBLE INVESTMENT COMPANY
P.O. BOX 9
MAGNOLIA, AR 71754
HENRY A. MURPHY, II
213 CHUBASCO LANE
SLIDELL, LA 70458
ELIZABETH ETHERTON GOLL
253 VIA MARIEL EAST DRIVE
DAVENPORT, FL 33896
EVELYN DUNCAN
39 WISTERIA DRIVE
THIBADOUX, LA 70301
JAMES W. DUNCAN
1257 MASSMAN DRIVE
NASHVILLE, TN 37076
W.L. DUNCAN, JR.
114 POST OAK CIRCLE
LAFAYETTE, LA 70506
DAVID DUNCAN
112 HERMITAGE PARK DRIVE
HERMITAGE, TN 37076
LEQUEITA G. ENDEL
311 EAST PARKER
HAMBURG, AR 71642
JAMIE BADERTSCHER
3597 FOUNDERS CLUB DRIVE
SARASOTA, FL 34240
GORDIE LOU H. BRITT
P.O. BOX 3408
LITTLE ROCK, AR 72177
GARY DON TAYLOR
5911 HAYNESVILLE HIGHWAY
EL DORADO, AR 71730
LARRY W. TAYLOR
BARBARA TAYLOR
3536 HAYNESVILLE HIGHWAY
EL DORADO, AR 71730
CHERYL TAYLOR SHOUP
MICHAEL SHOUP
2619 HAYNESVILLE HIGHWAY
EL DORADO, AR 71730
LOUISE BAILEY TAYLOR REVOCABLE TRUST
6239 LOCKLEVIN COVE
MEMPHIS, TN 38119
ALENE BROWNING YEAGER
DON YEAGER
111 JAPONICA LANE
SHREVEPORT, LA 71118
EDWARD J. BROWNING
1008 PUDUE
ARLINGTON, TX 76012
GWILI BROWNING KING
1210 GLADNEY STREET
MINDEN, LA 71055
LAWANA BROWNING HUTSON
328 GARY K. STREET
PINEVILLE, LA 71360-5504
L.D. MCMULLEN
101 WEST 5TH STREET
EL DORADO, AR 71730
MARGARET M. HURT
WAYNE HURT
413 FAIRVIEW AVENUE
CROWNPOINT, IN 46307
SIMON S. STEINBERG TRUST
BANCORP SOUTH, TRUSTEE
P.O. BOX 751
EL DORADO, AR 71730
THE MCGHEE FOUNDATION
36276 MOUNTVILLE ROAD
MIDDLEBURG, VA 20117
JOSEPH G. MEINERT, LLC
10133 TIFFANY DRIVE
RIVERRIDGE, LA 70123
RICHARD L. MEINERT, LLC
10121 HYDE PLACE
RIVERRIDGE, LA 70123
MICHAEL S. MEINERT
BETTE MEINERT
2321 CALION ROAD
EL DORADO, AR 71730
SHANNON M. GILES
MICHAEL W. GILES
7188 SOUTH SORRENTO WAY
WEST JORDAN, UT 84084
MELINDA M. BUTTERFIELD
BRUCE BUTTERFIELD
176 WILLETT ROAD
EL DORADO, AR 71730
TBM PROPERTIES
2828 HOOD STREET #1403
DALLAS, TX 75219
NJB, INC.
451 NORTH WASHINGTON
EL DORADO, AR 71730
SHIRL, LLC
601 EAST 15TH STREET
EL DORADO, AR 71730
JAMES W. GARRISON
PATTY LOU MARTIN DILLAHA
601 EAST 15TH STREET
EL DORADO, AR 71730
GWENDOLYN MARTIN
T.M. MARTIN, JR.
P.O. BOX 261
CRESTLINE, CA 92325
CUB PROPERTIES, LLC
98 SAN JACINTO BLVD.
AUSTIN, TX 78701
JAMES FRANKLIN REED, JR.
AUDREY REED
5419 PINE ARBOR
HOUSTON, TX 77066
ROBERT FRANKLIN REED
DEBORAH L. REED
P.O. BOX 9
EUCHA, OK 74342
PATRICIA FOGARTY DREW
BARRY PAUL DREW
P.O. BOX 67
EUCHA, OK 74342
SHARON FOGARTY LONG
C.F. LONG
3266 GREEN ACRES DRIVE
BETHLEHEM, PA 18015-5723
EDWARD B. SUMMERHILL
3401 VILLANOVA DRIVE
DALLAS, TX 75225
MACIE C. HOLLINGER
1205 C VALLEY VIEW DRIVE
PEARISBURG, VA 24134
SHERYL SHACKLEFORD WRAY
LOUIS C. WRAY, JR.
4400 MATILDA PLACE
KINGSPORT, TN 37604
CECILE SHACKLEFORD TAYLOR
2500 FORREST LAWN DRIVE
EL DORADO, AR 71730
B.J. ALDERSON TRUST
5110 NORTHWEST AVENUE
EL DORADO, AR 71730
WALTER ALDERSON
FRANCES ALDERSON
2619 TAMALPAIS DRIVE
PINOLE, CA 94564
C. ELIZABETH COTTRELL
5570 HAYNESVILLE HIGHWAY
EL DORADO, AR 71730
SKLARCO, LLC
401 EDWARDS STREET, SUITE 1601
SHREVEPORT, LA 71101
JOSEPH H. JOINER
63 WEST WIEUCA ROAD, UNIT 3
ATLANTA, GA 30342
ANDREW CHARLES HALL
429 MIMOSA DRIVE
DECATUR, GA 30030
JENNIFER HALL JOHNSON
146 SOUTH PRAIRIE
KALAMAZOO, MI 49006
EDWARD KYLE HALL
3835 RUTHIN ROAD
KALAMAZOO, MI 49008
WILLIAM J. BOND AND JEAN PEIRCE BOND MGMT.
TRUST
P.O. BOX 846
MARSHALL, TX 75671
MARY ROWLAND SOWELL SHELMIRE
833 COLONIAL DRIVE
TYLER, TX 75701
J.C. FLAVEY ESTATE
C/O FROST NATIONAL BANK
P.O. BOX 1600
SAN ANTONIO, TX 78296
A.G. GRIFFIN ESTATE
ADDRESS UNKNOWN
RESUME OF EFFORTS
SE NE Sec. 23-T18S-R17W
Union County, Arkansas
Jane Harvey Burgland
3.125%
09/29/11
Mailed out letter with an offer to farmin acreage or participate with
their acreage.
11/07/11
Mailed out AFE with letter stating we would accept farmout or asking
them to participate.
RESUME OF EFFORTS
SE NE Sec. 23-T18S-R17W
Union County, Arkansas
Hendrix College
1.5625%
09/29/11
Mailed out letter with an offer to farmin acreage or participate with
their acreage.
11/07/11
Mailed out AFE with letter stating we would accept farmout or asking
them to participate.
RESUME OF EFFORTS
SE NE Sec. 23-T18S-R17W
Union County, Arkansas
Carol McCall Hermsen
1.5625%
09/29/11
Mailed out letter with an offer to farmin acreage or participate with
their acreage.
11/07/11
Mailed out AFE with letter stating we would accept farmout or asking
them to participate.
RESUME OF EFFORTS
SE NE Sec. 23-T18S-R17W
Union County, Arkansas
Ouachita Baptist University
.78125%
09/29/11
Mailed out letter with an offer to farmin acreage or participate with
their acreage.
11/07/11
Mailed out AFE with letter stating we would accept farmout or asking
them to participate.
RESUME OF EFFORTS
SE NE Sec. 23-T18S-R17W
Union County, Arkansas
Salem College
.78125%
09/29/11
Mailed out letter with an offer to farmin acreage or participate with
their acreage.
11/07/11
Mailed out AFE with letter stating we would accept farmout or asking
them to participate.
EXHIBIT “C”
Applicant’s statement regarding Operating Agreement
The applicant requests incorporation of the Model Form Joint Operating Agreement for
Liquid Hydrocarbon Wells approved by the Arkansas Oil and Gas Commission on February
22, 2010, with Paragraph III.1.A.(1) of the COPAS providing for a drilling well rate of
$6,500.00
and a producing well rate of $650.00
revisions, deletions and/or insertions, if applicable:
NONE
, and with the following proposed
AFFIDAVIT AND TESTIMONY OF RODNEY MAY, A PETROLEUM LANDMAN
STATE OF ARKANSAS
COUNTY OF UNION
Rodney May, having been first duly sworn, makes the following affidavit:
My name is Rodney May I am a petroleum landman employed by Atlanta Exploration Co.,
an independent petroleum land service provider retained by Weiser Brown Oil Co. to assist
in securing oil and gas leases and/or commitments to participate in certain wells including
the applicant's planned well, which is the subject of this application (the "subject proposed
well".)
I understand that I am submitting this Affidavit, under oath, as testimony in this docketed
matter. This Affidavit is submitted in lieu of live testimony in this matter and is materially
the same as the testimony, which I would present herein as a live witness.
I am familiar with the information contained within the Summary of Efforts To Secure
Leases and/or Participation, which has been pre-filed as an exhibit in connection with this
Application. The summary of efforts to secure such leases and/or participation documented
within that exhibit is true and correct, to the best of my knowledge, as of immediately
before the filing of the Application. If there are material additional efforts made to secure
such leases and/or participation up to, and including, the hearing date, they will be
documented on a supplemental or replaced exhibit, which, I pledge, will likewise be true
and correct, to the best of my knowledge.
I know of my own personal knowledge that the applicant and its participating partners have
secured oil and gas leases covering approximately 92.1875 % of the net mineral
acres contained within the unit containing the proposed subject well, as of the date of the
filing of the Application. I also know of my own personal knowledge that persons
consenting to the drilling of the subject proposed well controlled at least 50% of the right to
drill within the unit as of the date of the filing of the Application.
I also know of my own personal knowledge that either the applicant or another working
owner has secured one or more oil and gas leases covering the proposed drill site of the
subject proposed well or, if not, that a written surface use agreement, permitting the use of
the proposed drill site, has been executed by the owner thereof.